Strategy & HR Linkage

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    Why study HRM?

    Practicing managers : Familiar with HRprocesses, but get an explanation

    Why? A re we having this process.What? Is it intended to achieve.

    How? Does it contribute to the achievement of organization goals.

    Ex: medical test prior to joining.

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    T opics to be covered

    Behavioral Sciences Linkage with HRM

    Organization- Certain percepts / lowest common denominator

    Strategy Difference between strategy and tactics Different levels of strategy Strategy in fast changing world: mechanistic vs complex paradigm

    HRM Definition Its relevance Its interface with strategy Major areas

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    B ehavioral Sciences: Involves systematic analysis

    and investigation of human behavior studiedthrough experimental and observational methods.Organiz ational B ehavior:

    Ex: Understanding human beings.

    your project team member, and what makes him tick the set of relationships surrounding you and your team

    member, including authority relationship small-group dynamics, working together to accomplish

    well defined tasks Organization as a whole: its culture, processes and

    ways of doing things that affect you, your member, therelationship and the small project team of which both of you are a part.

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    M otivation

    T he basic motivation process:

    NEEDS DRIVES INCEN T IVES

    Needs: get created when there is a physiological or psychological imbalance.Drives: Or motives are set up to alleviate needs. A ctionoriented.Incentives: A nything that will alleviate a need and reduce

    a drive.

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    M otivation theories

    Content theories: ways to analyse individualsby identifying needs that motivate their behavior. Maslows (physical and conceptual needs) and ERG (existential, relatedness and growth)

    P rocess theories: seeks to understand thethought processes that take place in the mindsof people that act to motivate their behaviour.Equity theory

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    M otivation

    M otivation : describes the forces within an individualthat account for the

    level (amount of effort),

    direction ( what he chooses to do when presented with a no. of options), andpersistence (how long will he stick to exert effort)

    of effort expended at work.

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    M otivation

    J ob Performance?

    individuals attributes: capacity to perform organizational support: opportunity to perform work effort: willingness to perform

    Linkage with HRM:

    Recruitment and SelectionJ ob design, Right person in Right role, T raining,employee/labour relations, safety and health Right Incentives : Performance appraisals,Compensation and benefits, Developmental inputs

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    Ex: I T ES sector: attritionWhat motivates people to stick around in company X?

    Organization Development (OD): a planned effort, organization-wide managed from top to increase organization effectiveness and health through interventions in the organizations processes,

    using behavioral science principles and practices.

    It is a complex strategy intended to change the beliefs,attitudes, values and structure of organizations so thatthey can better adapt to new technologies, markets andchallenges

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    T opics to be coveredB ehavioral Sciences Linkage with HRM

    O rganization- Certain percepts / lowest common denominator

    Strategy Difference between strategy and tactics Different levels of strategy Strategy in fast changing world: mechanistic vs complex paradigm

    HRM Definition Its relevance Its interface with strategy Major areas

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    What is an Organisation:

    Collective Purpose

    B rings together an array of resources and applies their specialisations to a common end-product.

    - Open system : they take input from the environment,transform them and discharge outputs in the form of products and services.

    Organisation and its ecosystem Ex: watch & mobile Second law of thermodynamics, entropy

    - What distinguishes business organisation? Ramdev vs B rinda Karat

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    I.Business organisation:

    M oney in ~ M oney out

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    II. Purpose of a businessI s it solely for profit?

    B usiness organisation has to run for profit.B ut, running business only for profit tends to be

    corrosive.Profit with values is the right approach.

    Refer book Built to Last.

    Ex: Managing the expectations of variety of stakeholders of the business : shareholders, employees, community,society at large, environment, government.Microsoft: computing power at every desktopPfizer: medicine for river blindness

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    II. Purpose of a business

    To create a customer.Ex: tractors (horse that eats less and is always willing towork), tape recorder (Sony).

    A customer buys a utility, ie, what a product does for him.

    To add value to the customer.Ex: Intel and its faster chips. Good enough computingCan you make an Eskimo your customer?

    what our business is, and what it should be?Customer: Who is he? Where is he? What does he buy? What

    would he like to buy?

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    Employment is a contract. Entails expectations from each party .

    Exercise: Tell me something about your relationship with your employer.

    III. EMPL OYM ENT ?

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    EmploymentEmployment: nature of relationship between individual

    and firm has components that makes it different fromother contractual relationship

    Economic : pay-effort bargain.

    L egal : network of common law and statutory rights and obligationsgoverning both the parties to the contract. Various employment A cts and Rules of India.

    Social relationship : members of social groups. Responding tosocial norms that influence their actions in place of work. Mentorship

    P sychological relationship : dynamic two-way exchange of perceived promises and obligations between employees and firm. Model Code of Conduct

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    P sychological relationship: dynamic two-wayexchange of perceived promises and obligations

    between employees and firm. T hese are shaped by the social and economiccontext, leadership, communication and HR practices.

    Challenges for managers: disbalance Communication through different voices ~ different

    beliefs about reciprocal promises and obligations. Ensure that anticipated exchange of value is

    confirmed.B oss promises, but cannot deliver.

    T raining facilities Cutting edge work

    Example: effective communication reduces breach of psychological contract.

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    IV. Input ~ Output ~ Outcome

    Ex: from corporate social responsibility sector

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    Effective M anager?

    performance efficiency: measures how wellresources are being used. focus on efficiency and costcontainment. Means ends relationship is certain. So,managers monitor & control performance.

    Input ~ output.

    performance effectiveness : measures whether important task goals are being attained. Focus on actual

    result. Means-ends relationship is uncertain. So,managers need to engage workers intellectual capital,commitment and cooperation.G oal attainment. Outcome

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    M iddle managers:

    accountable to higher level for work unit results,and dependent on the efforts of subordinates and

    other team members to make this happen.

    link between brains and its hands.

    depends on them for organizational performanceI ncreasingly, they are taking up leadership roles.Ex: ABB, Microsoft

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    High performance=effectiveness+efficiency

    Eff ective, but noteff icient:

    someresources wasted

    Eff ective and e ff icient:goals achieved

    and resources wellused: area o f high

    productivity

    Neither e ff ective nor

    eff icient:goals not achieved;resources wasted in the

    process

    Eff icient but not

    eff ective:No wasted

    resources, but goals notachieved

    P erformance

    EffectivenessH ow well areG oals being attained?

    Performance efficiencyH ow well are resources being used?

    P oor

    Good

    Good

    Area of truemanagerialsuccess

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    V . WHAT IS MANAGEMENT ? Role of a manager (resource based view)

    F inance

    InfrastructureMachines

    Manpower

    Vendors

    Clients

    Permits..

    Manager

    Plan

    Acquire

    Deploy

    Monitor

    Assess

    Develop

    Exit

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    M anagement as science, politics, controland practice