CU-MBA-SEM-III-Strategic HRM-Review Report Book-converted

MASTER OF BUSINESS ADMINISTRATION SEMESTER III STRATEGIC HUMAN RESOURCE MANAGEMENT MBA523

CHANDIGARH UNIVERSITY Institute of Distance and Online Learning Course Development Committee Prof. (Dr.) R.S.Bawa Pro Chancellor, Chandigarh University, Gharuan, Punjab Advisors Prof. (Dr.) Bharat Bhushan, Director – IGNOU Prof. (Dr.) Majulika Srivastava, Director – CIQA, IGNOU Programme Coordinators & Editing Team Master of Business Administration (MBA) Bachelor of Business Administration (BBA) Coordinator – Dr. Rupali Arora Coordinator – Dr. Simran Jewandah Master of Computer Applications (MCA) Bachelor of Computer Applications (BCA) Coordinator – Dr. Raju Kumar Coordinator – Dr. Manisha Malhotra Master of Commerce (M.Com.) Bachelor of Commerce (B.Com.) Coordinator – Dr. Aman Jindal Coordinator – Dr. Minakshi Garg Master of Arts (Psychology) Bachelor of Science (Travel &Tourism Management) Coordinator – Dr. Samerjeet Kaur Coordinator – Dr. Shikha Sharma Master of Arts (English) Bachelor of Arts (General) Coordinator – Dr. Ashita Chadha Coordinator – Ms. Neeraj Gohlan Academic and Administrative Management Prof. (Dr.) R. M. Bhagat Prof. (Dr.) S.S. Sehgal Executive Director – Sciences Registrar Prof. (Dr.) Manaswini Acharya Prof. (Dr.) Gurpreet Singh Executive Director – Liberal Arts Director – IDOL © No part of this publication should be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the authors and the publisher. SLM SPECIALLY PREPARED FOR CU IDOL STUDENTS Printed and Published by: TeamLease Edtech Limited www.teamleaseedtech.com CONTACT NO:- 01133002345 For: CHANDIGARH UNIVERSITY 2 Institute of Distance and Online Learning CU IDOL SELF LEARNING MATERIAL (SLM)

First Published in 2021 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event the Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. Contents 3 CU IDOL SELF LEARNING MATERIAL (SLM)

Unit - 1: Human Resource Management ................................................................. 5 Unit - 2: Human Resource Management ............................................................... 24 Unit - 3: Models Of Strategic Hrm ...................................................................... 39 Unit - 4: Models Of Strategic Hrm ...................................................................... 51 Unit - 5: Human Resource Environment ............................................................... 63 Unit - 6: Human Resource Environment ............................................................... 80 Unit - 7: Human Resource Environment ..............................................................102 Unit - 8: Strategic Approach To Industrial Relations ...........................................160 Unit - 9: Global Human Resource Management ...................................................183 Unit-10: Global Human Resource Management ...................................................196 Unit - 11: Global Human Resource Management .................................................222 Unit - 12: Strategic Hr Issues In Global Assignments ..........................................237 Unit - 13: Strategic Hr Issues In Global Assignments ..........................................245 Unit - 14: Strategic Hrm Concerns .....................................................................256 4 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 1: HUMAN RESOURCE MANAGEMENT Structure 1.0 Learning Objectives 1.1 Introduction 1.2 A Strategic Perspective Historical Development of HRM and Strategic HRM 1.3 Summary 1.4 Keywords 1.5 Learning Activity 1.6 Unit End Questions 1.7 References 1.0 LEARNING OBJECTIVES After studying this unit, you will be able to: • Describe nature of HRM • Identify scope of Strategic HRM • Difference between HRM and Strategic HRM • Historical Development of HRM 1.1 INTRODUCTION Humanity is a highly relational species that almost never exists or works alone. Both consciously and unconsciously, we always plan, create, and sustain our relationships. Our relations are the product of our actions, and our ability to regulate our own actions has a huge effect on them. Since childhood, everybody has acquired expertise and experience in knowing others and behaving in a variety of situations. We will continue to strengthen our knowledge and understanding of how to perform and manage relations at work. The entire field of human resource management revolves around the management of Labour relations. Human Resources Management (HRM) has gained popularity in both academic and commercial circles since the mid-1980s. Human resource management (HRM) is a multidisciplinary organizational function that incorporates theories and ideas from a variety of fields, including management, psychology, sociology, and economics. People are complicated beings with complex needs, but there is no easy way to handle them, 5 CU IDOL SELF LEARNING MATERIAL (SLM)

and no boss has found out how to handle them effectively. The triggers and conditions that the organizational climate can provide are crucial to effective HRM. Individuals, Purpose, and Structure are the three essential components of any organization. The leader in the field of human resources (HR) made the following statement in 1994: yesterday, the organization with the most access to capital or the latest technologies has the best competitive advantage; today, the organization with the most access to capital or the latest technologies has the best competitive advantage; yesterday, the organization with the most access to capital or the latest technologies has the best competitive advantage; yesterday, the organization with the most Nowadays, companies that produce high-quality products have an advantage over their competitors; however, the only thing that will ensure the company's benefit tomorrow is the quality of its employees. Today's reality is the predicted future. Many administrators of both public and private sector companies of all sizes would agree that their most important asset is their employees. Having trained payroll staff does not guarantee that an organization's human resources can have a competitive advantage. However, in order for the organization to remain successful, expand, and diversify, it must ensure that its employees are qualified, placed in appropriate positions, properly trained, effectively managed, and committed to the company's success. HRM's mission is to maximize employee contributions in order to maximize efficiency and success while also achieving individual goals (such as challenging work and recognition) and societal goals (such as legal compliance and demonstrating social responsibility). What is Human Resource Management? The analysis of activities associated with people that work within an organization is known as human resource management. The goal of management is to strike the best possible balance between a company's needs and its employees' strengths and abilities. Definitions of HRM Human resources management (HRM) is a management feature dealing with employee screening, personnel growth, and employee retention. It mainly represents people in organizations. Human resource management is the method of creating and implementing organizational structures for optimizing the effective and productive use of human capital. HR management is the personnel role that is associated with all aspects of personnel recruitment, growth, compensation, integration, and maintenance, all in order to help the company achieve its goals. Workforce personnel management is therefore the planning, coordinating, directing, and controlling of the workforce's efficiency (Edward B. Philipo). Human resource management (HRM) is concerned with having the best out of people to meet organizational and individual goals. Staff are handled in a certain way, so that they put forth their best effort for the business. 6 CU IDOL SELF LEARNING MATERIAL (SLM)

According to Dessler (2008) the policies and procedures involved in the implementation of \"people\" or human resource aspects of a management role, including recruitment, screening, training, rewarding and assessment of HRM. Generally speaking, HRM is concerned with the administration of people in enterprises. It is made up of the organization's various operations, policies, and practices involved in the acquisition, growth, use, assessment, maintenance, and retention of the required number and skill mix of employees to meet the organization's objectives. Maximizing workers' efforts while simultaneously attaining individual and societal goals (such as legal compliance and demonstrating social responsibility). Human Resource Management, in brief, is the art of procuring, creating, and retaining skilled staff to better achieve the goals of a company. Nature of HRM HRM is a management feature that assists managers in hiring, selecting, training, and growing members of a company. HRM is concerned with the human aspect of companies. The following constitute the core of HRM 1. HRM entails putting management functions and principles into practice. The company's procurement, development, maintenance, and remuneration roles and principles must all be relevant. 2. Employee-related decisions must be integrated. Decisions on different aspects of employment must be consistent with other human resource decisions (HR). 3. Organizational effectiveness is influenced by decisions made. The improvement of consumer services in the form of high-quality products delivered at a fair cost would be the product of a company's success. Human Resource Management (HRM) isn't just for businesses. It does, however, apply to non- profit organizations such as education, health care, and recreation. HRM refers to a collection of programs, roles and activities planned and implemented to optimize both employee and organizational effectiveness. Scope of HRM The HRM has a wide range of applications. HRM is in charge of overseeing all significant activities in a worker's working life, from the time he or she joins the company until he or she leaves it. HR scheduling, task analysis, role design, employee hiring, employee and executive compensation, employee engagement, employee maintenance, industrial relations, and HRM prospects are all important HRM activities. The scope of human resource management is expanded to: • All strategies, causes, principles, operations, procedures, roles, tasks, and methods related to 7 CU IDOL SELF LEARNING MATERIAL (SLM)

the management of people as employees in any type of organization. • Human beings are present in all dimensions. Figure 1.1: Scope of HRM The HRM is truly vast in scope. HRM has an effect on all significant events and facets of a worker's working life, from the moment he or she joins an organization until he or she leaves it. The American Society for Training and Development (ASTD) conducted a comprehensive study in this field, identifying nine major areas of HRM service. These are given below: • Human Resource Planning • Organization and Job Design • Staffing and Selection • Education and Training • Growth of the company • Benefits and Compensation • Assistance to Employees • Labour-Management Relations • Personnel Research and Information System (Personnel Research and Information System) 8 CU IDOL SELF LEARNING MATERIAL (SLM)

Human Resource Planning: HR Planning's mission is to make sure the organisation has the right people in the right places at the right times. It compiles a human capital inventory in order to determine current and future needs, as well as availability and possible inhuman resource shortages. After that, HR Planning predicts demand and supplies, as well as the sources of selection. HR Planning generates long- and short-term strategies to satisfy labour demand. • Organizational and Job Design: This function involves establishing the organizational structure, authority, relationships, and responsibilities. This will also entail specifying the job material for each position within the company. This is achieved by the \"job description.\" Another crucial move is \"work definition.\" The job definition specifies the characteristics of the individuals that would be best suited for each job description. The process of worker recruitment and selection is known as selection and recruitment. This entails matching people's interests with the available job descriptions and career options within the business. • Training and Development: This necessitates a concerted effort to define individual training needs in order to meet the knowledge and skills needed not only to fulfil the current job but also to meet the company's future needs. • Organizational Development: This is a vital factor in achieving the \"Synergetic Effect\" in an organization, which is characterized as a healthy interpersonal and inter-group relationship. • Compensation and Benefits: This is the area of wage and salary administration, where salaries and benefits are statistically determined to meet fairness and equality requirements. Additional benefits and services are provided by labor protection measures. • Employee Assistance: Each employee has a distinct personality, appearance, goals, and disposition. Each of them is confronted with problems on a daily basis. Some are informal, while others are official. He or she is already interested in their case. Such problems must be overcome in order for him or her to be more efficient and satisfied. • Union-Labor Relations: Strong labor and industrial relations are vital to the organization's peace and productivity. It's a part of the HRM scheme. Personnel Study and Information System: Behavioural science and industrial psychology expertise provides a deeper understanding of workers' preferences, goals, and attitudes. The advancement of product technology and production methods has resulted in a very different working environment than in the past. Competition has risen many times as a result of the globalisation of the economy. The science of ergonomics gives us a better understanding of how to make a worker's job easier. As a consequence, continuing education in the field of human resources is unavoidable. 9 CU IDOL SELF LEARNING MATERIAL (SLM)

On a continuous basis, special attention must be paid to improving the exchange of information through effective communication systems, especially on moral and motivational grounds. 1.2 A STRATEGIC PERSPECTIVE HISTORICAL DEVELOPMENT OF HRM AND STRATEGIC HRM All you need to know about the evolution of human resource management (HRM) over time is essential for understanding the philosophy, functions, and procedures of HRM that are used in different situations, as well as how applicable HRM practices are evolving in the current situation. Since the problems of both fields are intertwined, HRM, as part of the management discipline, has followed the trend of management development. Human Resources Management (HRM) is a relatively new concept for managing human resources in an organization. HRM is evolving into a mash-up of organizational action, employee management, industrial relations, and labor law. Historical view of Human Resource Management The concept \"human resource management\" is relatively new. It has mostly been used with its present connotation since the 1980s. The manufacture of goods was primarily carried out by skilled people and craftsmen in ancient times and for a long time in the mediaeval era. They owned and operated the equipment and instruments, as well as produced and sold the goods. As a result, there was no relationship in their cases. They were taken care of themselves with the help of family members. However, many well-off craftsmen used apprentices and some types of hired workers. The master craftsmen and apprentices had a very close relationship, and they took care of the problems that the apprentices and their families faced. Their partnership has been influenced by a human approach. Many apprentices began their own businesses after a long period of education, while others remained with their master on lucrative terms. Skilled craftsmen formed guilds primarily to safeguard the interests of their trades during the mediaeval period. These guilds also set the price of their wares, as well as the wages of travelers and hired labourers, as well as the terms and conditions of their employment. Several other distinct forms of staff were also present in the ancient and early mediaeval periods. Serfs, servants, and indentured labourers were among them. For a thorough understanding of human resource management in a historical context, a brief overview of how they were handled and managed would be sufficient. Managing Slaves: In almost all ancient cultures, the Slavs were a major source of manpower. They could be 10 CU IDOL SELF LEARNING MATERIAL (SLM)

purchased and sold as a product. Rich kings, landowners, tribal chiefs, and effluent businessmen were their main customers. Slave buyers wielded total control over their slaves. Slave masters assigned them to a number of duties, including carrying heavy loads, rowing ships and boats, building and fortifications, digging canals, cattle-raising, and land tilling. Food, lodging, and clothing were the main forms of remuneration or reward for their contributions. Iron hands had been used to negotiate with the slaves. They were under strict surveillance, and disobedience to their masters' or subordinates' orders was generally met with physical torture, mutilation of their bodies, and sometimes the death penalty for serious offences. Managing Serfs: In feudal cultures of the pre- and early mediaeval periods, serfdom was popular. Landlords used serfs mainly for agricultural work and other associated activities. The landlords would usually provide them with a piece of land for their own environment, as well as some land for agriculture. In some cases, they were given a pittance of money in exchange for remaining loyal to their masters. Serfs and their families were required to serve their masters instead of performing these services. Soil tillage, cattle rearing, domestic work, and other related tasks were often allocated to the serfs. Many landlords will pay them a small stipend, either in cash or in kind. Serfs are usually free of habitat, a piece of land, and progress with interest after returning to their owners. They may also be paid off and moved to another landlord. Under serfdom, there was a personal relationship between the landlords and the serfs. Many landlords have always attempted to resolve their genuine grievances and have offered assistance to those in need. In return for increased production and good behaviour, feudal lords sometimes offered their serfs financial incentives in the form of additional food grains and money. While serfs were managed according to authoritarian principles, human treatment was also a part of their relationship. Serfdom came to an end with the abolition of the feudal system. Some traces of the past, especially in rural areas, can still be found today. In India, the bonded labor system is similar to the serfdom system that prevailed in Europe during the Middle Ages. Managing Indentured Labor: First and foremost, indentured labor emerged with the rise of mercantilism and the beginning of the industrial revolution. The discovery of new lands through sea and land routes has resulted in a significant increase in demand for European goods abroad, as well as the development of new industries on the continent. As a result, trade flourished, and merchants tried to amass as much wealth as possible by taking advantage of the expanding markets. Merchants can offer lucrative rewards to craftsmen and professional craftsmen in order to speed up the output of products on demand in their quest to 11 CU IDOL SELF LEARNING MATERIAL (SLM)

maximize wealth. In order to meet the demand for the pieces, the craftsmen and craftsmen responded by recruiting an increasing number of apprentices and hired workers. Emergence of New Industrial Labor and Improvement of Status: There were various classes of workers who enjoyed a certain amount of freedom in their relations with their employers even though slavery and serfdom were prevalent. They were mostly accomplished apprentices and professional craftsmen and craftsmen. With the spread of industrialization and the establishment of factories and other types of industrial and commercial institutions, however, the composition of free workers has materially changed. Industrialization resulted in the concentration of a large number of workers in a single location run by a single employer or company. Employers were mostly concerned with increasing their profits, and they cruelly ignored the human aspects of running their businesses. Because of the pervasiveness of the individualism and laissez-faire ideologies, the state remained a passive spectator of the misery and suffering of the labouring masses of workers. These situations have worsened the worsening of the working conditions of factory workers, who have had to deal with a number of issues at work. Low salaries, overtime work, unsafe and strenuous physical working conditions, job insecurity, and unequal treatment by supervisors and managers were among the concerns raised. Factory workers eventually realized that while they could be dispensed to the employer on an individual basis, they were invaluable collectively because the company's management was in the best interests of all. This realization prompted them to organize and put pressure on employers and the government to improve their working conditions. However, the courts struck down these early combinations, either under common law or under special laws such as England's Mixture Acts of 1799 and 1800. However, as time has passed, the situation has changed. The spread of democratic ideals and principles, the growth of socialist theories, the emergence of a welfare state ideology, the strengthening of labor unions, the efforts of social reformers, and changes in the size and composition of the workforce were all significant developments in human resource management. These developments have resulted in dramatic shifts in employers' attitudes toward workers and the government's role in labor matters. The state has begun to pass labor laws in order to improve physical working conditions at work, to create minimum standards in specific areas of job terms and conditions, to provide certain health benefits to workers, and to enforce social security protections against certain contingencies such as disability and death resulting from work-related accidents, illness, and mat. 12 CU IDOL SELF LEARNING MATERIAL (SLM)

Employers have gradually recognized that their rights of \"hiring and firing\" employees at their own will and arbitrarily setting down terms and conditions of employment have been enormously affected by union demands and state interference, and that it would be impossible for them to operate their businesses if they did not pay due attention to human factors in dealing with their jobs. These conditions still occur today, albeit in a drastically different way. Some of the more important changes in the field of human resources from a contemporary perspective include: I am significant shift in the composition of the workforce with the entry of a large number of qualified and highly skilled staff with specialization; (ii) a significant increase in the status of all groups of employees; (iii) comprehensive state involvement in the field of human resources; (iv) growth of human resources; Evolution of Human Resource Management – From 19th Century till Recent Times: Human Resource Management in Different Periods Understanding the philosophy, functions, and behaviours of HRM that are practiced in different circumstances such that particular HRM practices are developed in the current situation requires identifying the evolution of HRM over time. Since the problems of both fields are intertwined, HRM, as part of the management discipline, has followed the trend of management development. While HRM as a field of study is relatively new, the history of people management in organizations, especially in government, is much older. However, since the recent creation of HRM literature and practices was primarily concerned with state government, these ancient advances may not have had a significant impact. Following the 19th-century industrial revolution, the effective use of labor-power in industrial organizations was given serious consideration. Since then, organized human resources activities have begun to take place, first among the work force and then among management personnel, and literature documenting these processes has begun to appear. The various periods in the history of human resource management practices can be classified as follows, from the industrial revolution time to the present era: 1. The 19th century was the period of the Industrial Revolution. 2. Near-nineteenth-century age of the trade union movement 3. The beginning of the twentieth century was the age of social responsibility. 4. The Scientific Management Period, which spanned the years 1900 to 1920. 5. The Human Relations Period, from the 1930s to the 1950s The 1950s and 1960s were the age of behavioural research. From 1960 onwards, the age of systems and contingency planning 13 CU IDOL SELF LEARNING MATERIAL (SLM)

From 1980 onwards, the epoch of human resource management The beginning of that era can be seen in the classification of different stages of human resource management in terms of time. In each age, a specific approach to managing people at work has been emphasized. A new age does not necessarily indicate the end of the previous one, although there has been some overlap. Main features of these eras and the type of practices related to managing human resources are as follows: Industrial Revolution Age: The industrial revolution, which began in Western Europe and the United States in the 1850s, ushered in the organized development of HRM. The invention of machinery, the use of mechanical energy in production processes, and, eventually, the concept of a factory with a large number of employees working together originated from the industrial revolution. The factory system replaced the old cottage system. The Industrial Revolution ushered in a slew of changes, including hierarchical workplaces with a large number of employees working together, a mechanized production process, worker displacement from their homes, and indirect contact between factory owners and staff. Three HRM systems have been developed to handle people in the industrial revolution manufacturing environment: staff recruitment, worker preparation, and worker management. The basic principle of staff management, on the other hand, was based on a master-servant relationship. Trade Union Movement Age: Workers started to organize themselves, based on their common interests, to form workers' associations, later known as labor unions, shortly after the factory system was established. The primary objectives of these societies were to safeguard the interests of their members and to solve their issues, which were mostly caused by the employment of girls, long hours of work, and poor working conditions. Other aspects of work, such as economic problems and wages, employee benefits and services, and so on, were later expanded. Strikes, slowdowns, walkouts, boycotts, and other tactics have been used by these labor unions to get their demands recognized. Owners and managers have been forced to implement employee grievance management schemes, arbitration as a means of resolving conflicts between owners/managers and employees, disciplinary procedures, expansion of employee compensation benefits, holiday and leisure time, consistent concept of job responsibilities, seniority-based employment rights, and the creation of a fair and defensible work environment as a result of these trade union practices. Social Responsibility Age: 14 CU IDOL SELF LEARNING MATERIAL (SLM)

Some factory owners started to adopt a more humanistic and paternalistic approach toward their employees in the first decade of the twentieth century. The paternalistic approach to job management is based on the belief that work is similar to a child, and that the owner is similar to a parent, and that the owner should care for his work in the same way that a father cares for his children. Paternalistic industrialists have offered a number of concessions and services to workers, such as shorter working hours, improved workplace amenities, model villages for workers, and so on. Both of these practices have led to the expansion of labor management's social welfare aspect. Many critics of the paternalistic approach claimed it was adopted to resolve concerns posed by the labor movement, as a number of trade unions erupted, undermining job production. Employers have recognized that jobs have strayed beyond their control and have responded by instituting welfare services to address the problem. As a consequence, rather than a hypothesis, this was a compulsion. Scientific Management Age: Taylor started using time and motion experiments to find the \"only best way to do things\" at the turn of the century. He was able to significantly increase staff productivity as a result of his results, and he published a number of papers and a book on scientific management based on his findings. The fundamental principles of scientific management are as follows: I replacing the rule of thumb with science; (ii) promoting harmony rather than conflict; (iii) encouraging cooperation rather than individualism; and (iv) promoting the development of each and every person. Practical foremanship, standardization and simplification of jobs, and differential pay systems are scientific management techniques that can be used to control employees. Human Relations Age: Management theorists in the 1920s studied the human factor at work as well as the variables. This had an impact on people's conduct. Hugo Munsterberg previously published a book titled 'Psychology and Industrial Success,' which called for the use of psychology in fields such as staff testing, interviewing, attitude evaluation, and learning. The 'Industrial Psychology Era' was a brief period in history. A group of Harvard Business School professors began studying the human dimensions of jobs and working conditions at Hawthorne's Western Electric Company in Chicago in 1924. They studied workers' productivity from 1924 to 1932 and found that it was influenced by I social factors at work, (ii) group composition and influence, (iii) the importance of leadership and supervision, and (iv) communication. 15 CU IDOL SELF LEARNING MATERIAL (SLM)

They came to the conclusion that, in order to maximize productivity, management should concentrate on human relations as well as physical conditions at work. As a result, concepts such as social order, informal affiliation, group influence, and irrational behaviour have found their way into personnel management. Behavioral Science Age: Behavioral sciences have been goal and productivity focused, and consider knowledge of human behaviour to be the major means to that end, in comparison to human relations, which assumes that satisfied workers are efficient workers. They have used a number of advanced research techniques to better understand the nature of work and the workplace. Behavioral sciences contribute to organizational methods mostly through the advancement of new concepts rather than new techniques. It has developed or expanded a useful way of thinking about the manager's position, the existence of organizations, and the behaviour of individuals within them. They presented a description of a human resource model in contrast to the human relations model. Major conclusions of the contributions made by behavioralists are as follows: • People don't like jobs. If they have been helped to set goals, they may want to reach them. Job itself is, in reality, a source of inspiration and satisfaction for employees. • Most people can exercise a great deal of self-management and self-control and produce more imagination than is needed in their current job. Therefore, their untapped potential remains untapped. • The basic role of managers is to use untapped human resources within the enterprise. • Managers should create a safe atmosphere in which all individuals will participate to the best of their abilities. The atmosphere should ensure a good, clean, pleasant and convenient place to work. • Managers should provide the ability for their subordinates to self-direct themselves and allow them to engage fully in all important matters. • Operational performance can be increased by expanding subordinate power, self-management and self-control. • Job satisfaction will increase as a 'by-product' of subordinates making full use of their potential. Two-way communication, employee participation in decision-making, mutual goal-setting, group dynamics, management growth, and change management have all benefited from behavioural science. These contributions from the Behavioral Science Era form the foundation of the current Behavioral Approach to Human Resources Management. Systems and Contingency Approach Age: 16 CU IDOL SELF LEARNING MATERIAL (SLM)

In the current century, management theorists have focused their attention on systems and contingency approaches. It is an applied approach focused on scientific research that considers human resource management as a whole. This approach's basic concept is that every entity's research must be based on a system of analysis that requires simultaneous combinations of mutually dependent variables. When the structure strategy is used to manage human resources, this happens. Human Resources Management Age: When the factory method of production was adopted, a significant number of workers started to collaborate. It was felt that someone should be in charge of these workers' training, growth, and welfare. As a result, most large companies that were mainly concerned with workers created a Department of Industrial Relations. However, as the challenge of managing human resources in large corporations has grown, the industrial relations department's scope has been expanded to include supervisory personnel and, as a result, administrative personnel. The Department of Personnel replaced the Department of Industrial Relations. People were no longer treated merely as physiological but socio-psychological entities as a primary source of organizational success, and large organizations changed the nomenclature of their workers to human capital, as competition for market share, resources, including human talent, and expanded knowledge in the field of human resource management developed. In 1990, the largest technical body in the field of human resource management, the American Society for Personnel Administration, changed its name to the Society for Human Resources Management. At the university level, similar trends have been observed, and the title of the Human Resources Management Course has been changed. Since then, the word has gradually supplanted the cliched phrase \"personal management.\" Human Resources Administration Early Philosophy (prior to 1900): Robert Owen's efforts laid the groundwork for modern human resource management. Owen is regarded as a forerunner in the field of human resources management. In 1813, he published A New View of Society, a book. It indicated that stronger labor relations and better service conditions were needed. His treatment of the staff was friendly, liberal, and paternalistic. For his workers, he had nice houses built next to his plant. He eliminated child labor and ensured that workers were in a secure working environment. Oh, J.S. Mill, Andrew Yule, and Charles Bewarage, Robert Owen's contemporaries, founded human resource management as a science and advocated wage incentives, profit sharing, and labor welfare, among other ideas. Movement of Efficiency and Competitiveness (1900-1920): 17 CU IDOL SELF LEARNING MATERIAL (SLM)

In the final year of the nineteenth century, the time of quality and productivity revolution arrived. The scientific management movement took place between 1900 and 1920, spanning two decades. Taylor's Scientific Management Thinking was common at the time. Taylor was an outspoken opponent of trade unionism and worker organization. The concept of a mental revolution, as well as the integration of quantitative theory into effect, job analysis, costing criteria, scientific personnel selection and training, and the concept of a mental revolution, have all made important contributions over the last two decades. Welfarism and Consumer Psychology (1920-1930): Until 1925, the Human Resources Administration did not have a defined structure. The foundation of human resource management has always been staff line organization. Workers' hostility to the empirical management movement has necessitated the use of industrial psychology. Industrial psychologists have created a variety of new techniques, including psychological analysis, interviewing, staff preparation, and non-monetary incentives. They aided in the professionalization of Human Resources Management. Human resource management is being recognized as a discipline and a specialized field. Human Relations Time (1930-1950): It was the beginning of understanding that human capital has a greater effect on growth than other psychic tools as Prof. Elton Mayo and his colleagues conducted Hawthorn studies. A worker must be viewed as if he or she were a human being. Management should have a thorough understanding of its social, psychological, and moral impulses. The product theory of labor was also transformed into a social construct as a result of these studies. The years 1940-1950 were pivotal in the history of human resource management. Several new strategies for employee selection, preparation, and induction were developed during that decade. Human resource theory has mostly been based on individuals. Trade unions grew in strength, and workers' marginal benefits became increasingly common. Modern Times (Following 1950): From 1950 to the present, the development of human resource management is an era of modern change. It is the age of the concept of work citizenship, in which workers have the full right to be consulted on the laws and regulations that regulate their work. The concept of industrial democracy has given rise to a slew of new positions for industrial homes' human resource managers. In today's world, human resource management is commonly viewed as a distinct discipline. During this time, two major advancements have been made. Human resource management began to be recognized as a behavioural science after 1960, focusing primarily on human elements and with the study of organizational behaviour as its central focus. 18 CU IDOL SELF LEARNING MATERIAL (SLM)

Following the 1970s, corporate companies started to adopt the idea of an \"open social and industrial structure.\" Human resource management is now widely recognized as a specialty in human resource management. Human resource management has become more accessible as a result of these advancements. Evolution of Human Resources Management – 3 Steps for Development of Human Resources Management The beginning of the HRM can be traced back to the writings of Robert Owen, Charles Babbage, and Henry Towde. The HRM's expansion was particularly noticeable during the interwar period. It has developed into the fields of applied psychology and sociology in particular. In essence, the latter grew out of the concept of the \"welfare state.\" The former, on the other hand, has remained a behavioural science theme. Human Resources Management (HRM) is a relatively new concept for managing human resources in an organization. HRM is developing into a convergence of organizational actions, employee management, industrial relations, and labor law. The following steps clarify the mechanism involved for reaching the current HRM stage: 1. Labor Welfare Stage: HRM may have had its formal beginnings as a result of labor struggles and conflicts. The investigation into the causes of workplace conflicts and disputes shed light on a number of topics related to workers' living and working conditions across industries. This study revealed the vulnerabilities of businesses that used human resources as a machine to maximize productivity and income at a lower cost. Long hours and difficult working conditions contributed to the formation of trade unions. These labor unions were committed to protecting and promoting workers' rights, but they ran into resistance from corporate management, resulting in labor struggles and conflicts. 2. Staff Management Stage: Companies began to focus on employee behaviour at all levels on a staff, group, and overall organizational basis after legal guarantees were given to labor welfare issues. Human resource planning, hiring and selection, training and growth, performance and future assessment, promotion, transfer, quality of working life, benefits, and compliance with labor laws and regulations have all been assigned to the 'Personnel' department. Stage of HRM: Human Resources Management (HRM) is a mix of labor relations and personnel management. HRM aims to improve job productivity in accordance with the company's objectives. Growing organizational size, evolving social and cultural norms, easy access to information (via technology), and globalization have all influenced HRM. As a result, it aims to promote a more humane relationship between employers and employees through motivation, preparation, and 19 CU IDOL SELF LEARNING MATERIAL (SLM)

development, employee engagement, and worker protection, among other things. HR managers must also gain and incorporate knowledge of future changes that could have an effect on the whole enterprise as part of HRM. HR administrators are now attempting to introduce relevant strategies to ensure that improvements are incorporated seamlessly without affecting inter-relationships or triggering internal disputes. Human Resource Management Evolution – Since the 18th century to the present, human resources have been critical to an organization's effective management and sustainability in today's global and competitive environment. The term \"human resource management\" has evolved from \"staff management.\" In 1945, after World War II, the word personnel management was coined. Staff managers were segregated from other management roles at this time, and personnel functions were declared separate management functions. The scope of the personnel position was criticized at the time for the organizations’ \"hire and shoot\" policy. The concept of human resource management has changed over time, including the Industrial Revolution, trade unions, scientific management, behavioural science, and human relations. The term personnel management has increasingly been replaced by HRM as a concept. HRM is the best name for dealing with human resources because it emphasizes the importance of the people who work in an organization. 1.3 SUMMARY • Strategic human resource management is the process of recruiting, creating, rewarding, and maintaining workers for the mutual benefit of the employees and the company. HR teams that practice strategic human resource management do not operate in a vacuum; they collaborate with other departments within an organization to understand their priorities and then develop plans that are aligned with those goals as well as the organization's. As a consequence, a human resource department’s priority represents and endorse the organization's overall goals. • Strategic HRM is seen as a partner in corporate performance rather than a legal or compensation requirement. • Strategic HRM makes use of the human resources department's talent and opportunity to make other departments stronger and more successful. 1.4 KEY WORDS • SHRM – Strategic Human Resource Management • HRM- Human Resource Management • HRM - Human resources management (HRM) is a management feature dealing with employee screening, personnel growth, and employee retention. 20 CU IDOL SELF LEARNING MATERIAL (SLM)

• Human Resource Planning: The goal of HR Planning is to ensure that the company has the right types of people in the right place at the right time. • Training and Development: This requires a coordinated effort to recognize the training needs of individuals in order to fulfill the expertise and skills 1.5 LEARNING ACITIVITY 1. Visit the IT/ITES company and take the data collection on Integrating Organization planning with Human Resource Requirement. ____________________________________________________________________________ __________________________________________________________________________ 2. Visit the Manufacturing organization and create the date on Training and Development activities are undertaken. ____________________________________________________________________________ __________________________________________________________________________ 1.6 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is Human resource management. 2. Define strategic Human resource management. 3. Difference between HRM and Strategic HRM 4. Explain briefly about Historical development of HRM 5. Advantages of strategic HRM Long Questions 1. Discuss about HRM? 2. Explain the concept SHRM? 3. Explain different Historical era of HRM? 4. Nature affecting strategic HRM? 5. Advantages and disadvantages for Strategic HRM over HRM? B. Multiple choice Question 21 1. SHRM helps businesses shape their human capital in order to achieve them CU IDOL SELF LEARNING MATERIAL (SLM)

a. Profit b. Organizational goal c. Individual goal d. Market Share 2. Human assets are seen as a higher-risk investment, which creates a barrier to. a. HRM b. SHRM c. HRP d. Economy 3. SHRM was produced for the first time in the year. a. 1964 b. 1974 c. 1984 d. 1994 4. In SHRM, the primary source of competitive advantage is a. people b. pattern c. technology d. Process 5. The list of benefits of outsourcing does not include__________ a. Avert over staffing b. Avert difference in HRM c. Lower cost d. None Answers 22 CU IDOL SELF LEARNING MATERIAL (SLM)

1 – b, 2 –b, 3 – d, 4 – a, 5 – d 1.7 REFERENCES Text Books – • Armstrong, Michael & Baron Angela. (2005). Handbook of Strategic HRM (1st ed.). New Delhi: Jaico Publishing House. • Mello, Jeffrey A. (2007). Strategic Human Resource Management (2nd ed.). India: Thomson South Western. Reference Books – • Regis, Richard. (2008). Strategic Human Resource Management & Development (1st ed.). New Delhi: Excel Books. • Agarwal., T. (2007). Strategic Human Resource Management. New Delhi: Oxford University Press. • Dhar, Rajib Lochan. (2008). Strategic Human Resource Management (1st ed.). New Delhi: Excel Books. 23 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 2: HUMAN RESOURCE MANAGEMENT Structure 2.0 Learning Objectives 2.1 Introduction 2.2 Need for a strategic approach to managing human resources 2.3 SHRM case study in Walmart 2.4 Summary 2.5 Keywords 2.6 Learning Activity 2.7 Unit End Questions 2.8 References 2.0 LEARNING OBJECTIVES After studying this unit, you will be able to: • Describe nature of HRM • Identify scope of Strategic approach for HRM • Evaluating your HR Function • Key elements of strategic human resource management • Identify main theme of strategic human resource management 2.1 INTRODUCTION The connection between a company's human resources and its policies, priorities, and goals is known as strategic human resource management. Strategic human resource management's goal is to: • Improve your ability to adapt, innovate, and achieve a competitive advantage. • Create a community that is appropriate for the organization's goals. • Improve company productivity. Human resources (HR) must play a critical role as a strategic partner in the creation and implementation of organization policies in order for strategic human resource management to 24 CU IDOL SELF LEARNING MATERIAL (SLM)

be successful. Strategic HR can be illustrated in a variety of ways, including recruiting, training, and rewarding workers. Human resources may have a significant effect on a company's development if it is used strategically. To meet the needs of the company's long-term goals, HR staff must take a proactive approach to developing and retaining employees. HR challenges can be a daunting obstacle for many businesses to overcome; there are various components that can confuse business owners and lead to ineffective decisions that slow down operations for both their employees and their company. Click the download button below to get your one-page guide on the 7 steps to strategic human resource management so you never have to think about getting stuck on HR issues again. When all teams are working for the same goals, companies are more likely to succeed. Strategic HR analyses workers and decides the steps that must be taken to maximize their contribution to the organization. The findings of this study are also used by strategic human resource managers to create HR approaches to overcome employee vulnerabilities. The following are benefits of strategic human resource management: • A higher level of work satisfaction. • A more optimistic work climate. • Increased customer satisfaction levels. • Resource management that is efficient. • A constructive approach to workforce management. • Improve productivity. 2.2 NEED FOR A STRATEGIC APPROACH TO MANAGING HUMAN RESOURCES 1. For the retention and growth of quality employees, strategic human resource management is critical. Employees are more likely to be respected and want to stay with an organization that prioritizes employee retention and engagement. Establish a strategic HR planning framework using the steps below before introducing strategic human resource management: 2. Learn what there is to know about the company's goals. 3. Assess your HR capabilities 4. Analyze your existing HR skills in light of your objectives. 5. Determine the company's potential human resource needs. 6. Identify the resources that workers may need to complete the job. 25 CU IDOL SELF LEARNING MATERIAL (SLM)

7. Put the human resource management approach into action. 8. Evaluation and corrective action 1. Develop a thorough understanding of your company’s objectives Since strategic HR's effectiveness is measured by how well it aligns with your company's priorities, you must have a clear understanding of your goals, objectives, and task. To the appropriate HR staff, you'll need to be able to express both your short and long-term development plans. It would be simpler for HR employees to devise an effective resource management plan if the company's priorities are clearly expressed. 2. Evaluate your HR capability Through assessing your current HR skills, you will be able to better appreciate your current workforce and how they contribute to the achievement of your goals and objectives. Furthermore, you can conduct a skills inventory for each employee. Skills inventories assist you in evaluating which workers are specialists in specific fields. It also assists you in identifying employees who are interested in receiving training in a specific area of your company. A performance evaluation is an excellent time to assess skills. The conventional performance analysis, on the other hand, is on its way out. Check out our guide to conducting an effective and results-driven performance assessment when collecting the skills inventory, you need from your employees! 3. Analyze your current HR capacity in light of your goals An examination of your HR ability will assist you in finding roadblocks and creating a strategy for capitalizing on opportunities and effectively coping with threats. Strategic HR personnel will assess the number of employees as well as their skills, collaborating with senior management to find ways to better train employees to meet your company's needs. 4. Estimate your company’s future HR requirements It's time to predict your HR needs after you've done an overview of your company's staff and expertise in relation to your goals. The prediction should be made in light of the following: • Demand – In order to meet your company's potential needs, you'll need to make a prediction about how many workers with the necessary skills will be required. • Supply – Examines the employees and expertise currently available to assist the organization in achieving its strategic objectives. Forecasting your company’s future HR requirements also determines the following: • New positions and tasks are needed to ensure the company's long-term sustainability. • Existing workers' abilities to take on the demands of new positions and assignments. 26 CU IDOL SELF LEARNING MATERIAL (SLM)

• If the workers' talents are being put to good use. • If existing HR staff and procedures are capable of facilitating the company's expansion. 5. Determine the tools required for employees to complete the job HR staff may consult with the relevant departments to learn how employees' tools influence their ability to perform their work. For example, a hardware and software audit may be carried out in collaboration with the IT department to identify weaknesses in tools that will help to coordinate the workforce. When an organization hires hourly workers, for example, workforce management software is critical. Significant HR functions such as scheduling, holiday entitlement, and sick leave management are all managed by this programme. Deputy gives you the power to easily control your workers' hours and time. This frees up your employees' time to concentrate on the tasks listed in the strategic HR plan that directly impact your company's growth. Sign up for a free trial to see how Deputy can help you handle your strategic human capital. 6. Implement the human resource management strategy After your company's HR requirements have been analyzed and forecasted, it's time to begin the process of expanding your workforce and improving current employees in order to prepare your company for potential growth. You should put your human resource management plan into action by doing the following: • Continue with the recruiting stage – HR professionals will begin looking for applicants who possess the skills found during the HR strategic planning phase. • Create a screening process – This is when interviews and other selection criteria take place. Interview questions like \"what are your compensation requirements?\" and related assessments will be used to decide if the applicant is eligible for the job. • Start interviewing candidates – After doing the necessary background checks, the company will give the candidate a work offer. • Employee onboarding and training design Onboarding is a critical factor in deciding whether or not an employee can stay with an organization. To maximize employee satisfaction, a robust onboarding and training programme must be implemented. Once you've properly onboarded your staff, keeping them motivated is a crucial step in maintaining them. It's easier said than done, but our employee engagement guide should help! You can get it by clicking the following link: 7. Evaluation and corrective action 27 CU IDOL SELF LEARNING MATERIAL (SLM)

Setting a deadline for completing a strategic HR management review is a good idea for HR practitioners. This assessment will monitor progress and define areas for improvement. The assessment should be focused on whether the changes are assisting the organization in achieving its goals. Corrective action must be taken when strategic human resource management fails to meet its objectives. Articles on strategic human resource management A variety of articles on strategic human resource management have been released to help companies develop this method. Here are some of our personal favorites: • An article published in Emerald Insight explored whether proactive human resource management techniques had an impact on outcomes. • Another Sage Journals article on strategic human resource management investigates whether there is a connection between strategic human resource management and organizational engagement. It is based on research that shows that strategic human resource management practices such as training, development, and compensation have the greatest impact on employee performance. Examples of human resource practices: With over two million employees, Walmart is the world's largest employer. This retail behemoth values HR's role in driving and developing the business. When Sam Walton, Walmart's founder, referred to the HR department as the \"people division,\" it was clear that the company appreciated its staff. HR Magazine cites Walmart as an example of how effective human resource management can aid a company's success. Walmart's seven overarching strategies (price, logistics, environment, key item/products, expenditures, talent, and operation, for example) are all in line with human resource strategic management: • Walmart achieves organizational excellence by investing in its employees' ongoing training and education. Walmart also wants to empower its employees to take charge of their careers so that they can collaborate more effectively. • Staff at Walmart receive cultural training at the Walton Institute, which focuses on corporate culture. The Walmart culture is characterized by managers with an entrepreneurial mindset who promote a problem-solving approach. For tips on how to create an amazing society, 28 CU IDOL SELF LEARNING MATERIAL (SLM)

download our guide to creating a healthy multi-generational workforce: • Everyone at Walmart, regardless of their role, must focus on enhancing the customer experience by linking consumers to items. Walmart's human resources strategy involves preparing store managers to make decisions about customers as quickly as possible. In addition to Walmart, Human Resources MBA compiled a list of 30 of the world's most innovative HR divisions. Businesses that have strategically used human resources to broaden and strengthen their market position are included on this list. These companies include: • FedEx's 'People-Service-Profit' philosophy reflects the company's assumption that if employees are treated well, customers will be treated well as well. In order to live up to this slogan, FedEx operates a yearly survey and feedback programme in which employees provide feedback on different aspects of the company. The results are checked, and where possible, steps are taken to improve employee conditions. • Nissan adheres to the kaizen philosophy, which encourages employees to strive for continuous improvement in their careers. This technique starts with new hires being encouraged to keep learning in order to stand out throughout the recruiting process. Leaders at Nissan have the right to hire and build their own staff, as well as engage in other strategic human resource management activities. • Alliance Boots GmbH was established on the premise that all Boots employees are related to one another. By promoting a stress-free work environment, Boots encourages managers to be respectful of their workers. Boots recognizes the significance of professional training and was one of the first organizations to give formal qualifications to its employees. HR programmes that are strategic Any business should have a strategic human resource management plan. The organization does not need to have a certain number of workers before you start thinking about integrating strategic human resource management principles. Indeed, if you want to grow your business, you should think about tying it to strategic human resource management. Some companies outsource this aspect of their activities because they don't have an in-house HR department. Strategic human resource programmes include full-service HR activities, such as executing a human resource management strategy. Financial and strategic management 29 CU IDOL SELF LEARNING MATERIAL (SLM)

pressures are relieved by strategic HR services, enabling the business to grow more rapidly. To help your company thrive in the future, you can use time-saving software and applications. To see if we can help you with the time-consuming job of employee scheduling so you can concentrate on the strategic aspects of your company, sign up for a free Deputy trial. 2.3 SHRM CASE STUDY IN WALMART Introduction Part 1: The analysis of corporate strategy and HR strategy at Wal-Mart. Part 2: The analysis of HR policies at Walmart and its integration with Corporate Strategy. Part 3: the role of the HR manager in this company? Part 4: some advices to improve the employment practices at Walmart. Conclusion Introduction: In his popular book, Michael E. Porter (1980), he stated that a company's three basic strategic strategies are overall cost leadership, differentiation, and focus strategy. These competitive tactics are used by businesses to gain a competitive edge. In this scenario, Walmart is specifically following a cost leadership policy, in which it aspires to become the retail industry's low-cost leader. Walmart retains its competitive edge by using a satellite-based logistics system and minimizing store location costs by locating stores on low-cost land outside of small to medium-sized cities, whether in the United States or abroad. Part 1: the analysis of corporate strategy and HR strategy at Wal-Mart. We can also see from this case material that Walmart bought large amounts of products from its vendors in order to achieve economies of scale, and that its robust stock management system helped to keep its operating costs lower than those of its rivals. It also imported a lot of products from China, which is known as the \"world factory\" because of its low prices. In a nutshell, Walmart's corporate strategy is low-cost, low-cost, low-cost, low-cost, low-cost, low- cost, low-cost, low-cost, low-cost, low-cost, low- The corporate-level strategy, the business-level strategy, and the function-level strategy are the three stages of strategic planning that managers participate in (Gary Dessler, 2005). So that the corporate strategy can be executed more easily and efficiently, the functional strategy should serve the overall company strategy. Walmart's corporate-level and business-level strategies, as we discussed above, are based on low-cost leadership. After that, we'll concentrate on its functional strategy, especially its HR strategy. Aside from the aforementioned factors, Walmart's low-cost leadership is focused on jobs policies that allow it to achieve exceptionally 30 CU IDOL SELF LEARNING MATERIAL (SLM)

low labor costs. Walmart sought to retain its dominant competitive edge by participating in low-cost HR practices. Part 2: The analysis of HR policies at Walmart and its integration with Corporate Strategy. SHRM is based on the assumption that organizations pursuing a specific strategy need HR activities that are distinct from those needed by organizations pursuing alternative strategies (Jackson & Schuler, 1995). In the study of this discipline, there are three SHRM theoretical models: universalistic best practices, contingency perspective of \"best match,\" and resource- based configuration perspective. I would prefer the contingency viewpoint of \"best fit\" rather than deliberating on all three models to analyze Walmart's HR practices. Individual HR activities will be chosen based on the contingency of the particular background of an organization in this view. Walmart, for example, has a different corporate strategy than other retailers that have a differentiation strategy, which is what the SHRM literature calls the primary contingency factor. Furthermore, employee HR practices may interfere with firm policy to result in organizational efficiency, and the “universal best practices” do not work as well in a particular company due to these interaction effects. We spent a lot of time in the previous section defining and evaluating the primary contingency factor in Walmart's corporate strategy, so in the next section, we'll look at the \"fitness\" of Walmart's HR practices using this theoretical model, which is, to some degree, the integration process of HR practices with the contingency variables. Since the HR structure is made up of HR policies and activities (such as how the organization hires, chooses, trains, and rewards employees), the sequence of HR activities may be used to explain the integration. Given the large number of workers, Walmart has attempted to minimize costs from the beginning of the recruiting process. The New York Times, for example, reported in January 2004 on an internal Walmart audit that found \"extensive violations of child labor laws and state legislation requiring time for breaks and meals.\" The low cost of child labor and minors allows it to gain a cost competitive advantage over other businesses. Walmart has also been hit with a slew of litigation claiming that it discriminates against employees with disabilities, since hiring them necessitates more services and, to some degree, a loss of performance. Walmart refers to its workers as \"associates\" in terms of preparation, and encourages managers to think of themselves as \"servant leaders,\" empowering them to support others while remaining focused on producing outcomes that are compatible with the company's ideals and honesty. Since HR practices can reward and monitor employee actions, an organization's strategy necessitates behavioural requirements for performance. As a result, the organization should enforce HR practices that promote employee activities that are compatible with the organization's strategy (Delery, John E; Doty, D Harold, 1996). Walmart sought to adapt employee attitudes and competencies to the company's strategy, which is to reduce costs 31 CU IDOL SELF LEARNING MATERIAL (SLM)

further, through this training and motivation. This logic is also reflected in the company's decision to \"lock in\" its night shift in different stores. Walmart attempted to discourage “shrinkage” activity among its workers by enforcing this programme, which included illegal cigarette breaks and fast trips home. Walmart set very high-performance management expectations and created very demanding work designs. According to the New York Times, Walmart had several violations of state laws requiring breaks and meals. And there are many examples of minors working too late, after school hours, or for too many hours in a day simply because performance appraisals need it. Walmart also goes to great lengths to cut expenses in the field of job management; there have been several cases in which women have sued Walmart for discriminating against women by actively refusing them promotions and paying them less than men. Women are forced into \"female\" departments and demoted if they complain about unfair treatment, all in the name of saving money over competitors. Walmart has also shown very aggressive HR practices and activities to suit the \"low-cost\" approach in terms of salary management. Walmart imported $15 billion in goods from China, not only as a strategic consideration for the supply chain economy, but also because Walmart has factories in China that produce Walmart-branded goods. Walmart pays far less to Chinese labourers in this \"world-factory\" and receives some benefits as a result of this process, showing how Walmart's corporate strategy is closely related to its HR policy. Walmart's operating costs were just 16.6% of net revenue in 2002, compared to a 20.7 average for the retail industry as a whole, indicating that the overall plan was successful. Walmart employees in California make 31% less than their peers in the rest of the retail industry. Store managers must turn to salaries to maximize income because other operating and product costs are set by higher level management, and Walmart expects labor costs to be reduced by two-tenths of a percentage point next year. As a result, these aggressive HR policies are just for the \"fittest.\" Walmart's HR practices are also well matched with the corporate-level approach in terms of employee benefits and protection. Jobs at Walmart who are eligible for benefits including health care must pay a premium for them. Employees were responsible for 36% of the expenses in 1999. The employee burden increased to 42 percent in 2001. In the United States, large-firm employers pay an average of 16 percent of the health-insurance premium. Supermarket employees who are members of a union normally do not receive any compensation. Walmart has been accused of not supplying workers with quality health insurance, but the company's top executives and HR managers know that their primary goal was to execute the \"low-cost\" approach to the best of their abilities. Finally, in terms of labor relations, Walmart could not have done a better job of explaining how the contingency model of \"best health\" works. To execute its low-cost strategy, Sam Walton 32 CU IDOL SELF LEARNING MATERIAL (SLM)

tried to provide great value to consumers through aggressive discounting. Walmart has a strict anti-union stance and unionized retail employees usually earn little. Employees who are sympathetic to labor unions have been accused of being fired, and all new employees are given a propaganda video tape in which they are told that joining a union would have negative consequences for them and that they should never sign a union card. According to the Guardian in the United Kingdom, Walmart is facing a bruising legal fight with the GMB labor union for collective bargaining rights, with the union refusing to consider Walmart's bid. Walmart withdrew a 10% pay offer to over 700 employees after they refused a proposed set of terms and conditions that included giving up collective bargaining rights. There may be some skepticism as to why Walmart has recently allowed unionization in its stores in China, where it is needed. But, if this mandatory law was enforced well before Walmart entered China, why did Walmart drop its insistence on not having any unions? Its previous excuse to the Chinese government was that it did not have any unions in its global workforce. So, if Walmart's agreement is a \"compromise,\" how do we interpret it? It has been suggested that doing business in China is especially difficult because personal relationships (guanxi) are valued more highly than contract specification and compliance in the West (Davies et al, 1995). Walmart China has made every effort to build positive relationships with the Chinese government and other influential parties. So, Walmart made this exception for unionizations because it is in line with its corporate and HR strategies. If it disobeys the Chinese government's firm law, the cost of not forming trade unions in its labor relations management will far outweigh the savings. Also, it does not forget its simple corporate and HR strategy, since in China, Walmart gives employees little power and unions are dominated by the government. As a result, we were able to obtain a clearer understanding of how Walmart can change its HR policies and activities to meet its corporate strategy contingency. Part 3: the role of the HR manager in this company? So far, we've looked at how Walmart's different human resource policies and processes \"suits\" the company's strategic corporate strategy. What, then, is the role of HR managers in this organization, who are HR professionals with the strategic and other skills needed to build a strategy-oriented HR system? They tried their hardest as managers in one of Walmart's functional divisions to \"suit\" the corporate plan to reduce costs. They made certain laws and regulations, for example, they enforce anti-union policies in their stores to minimize additional expenses from union workers; they help implement “lock-in” policies; they tried to resist disability people for the productivity loss; they discriminate women by paying them less and giving them fewer opportunities to advance; they discriminate men by paying them less and giving them fewer opportunities to advance; they discriminate women by paying them less and giving them fewer opportunities to advance; they discriminate women by paying them less and giving them fewer opportunities Walmart HR managers have worked to match employee attitudes and competencies with the company's strategy through the firm's strategy-supporting 33 CU IDOL SELF LEARNING MATERIAL (SLM)

HR system's actions and policies, some of which we have mentioned. So, in the preceding paragraph, we looked at the role of Walmart HR managers using the \"best match\" model; in the following paragraphs, we'll look at their role using two other models. Huselid's (1995) work is representative of what has come to be known as the \"universalistic\" or \"best practice\" approach to SHRM, which assumes that such \"best\" HRM practices can lead to improved financial success regardless of the firm's strategic objectives. Walmart HR managers, for example, refer to their workers as \"associates\" and allow managers to think of themselves as \"servant leaders,\" encouraging them to support others while remaining focused on producing outcomes that are consistent with the company's ideals and ethics. All of these HR policies are essentially common best practices practiced by HR departments in all good businesses. Regardless of whether Walmart implemented a low-cost strategy or a differentiation strategy, these policies and practices would have no added cost, but would encourage workers to contribute more to the business, as well as help to form a stronger corporate culture, eliminate more litigation, and establish better relationships with the community and government. There's also a call for a configurational approach to SHRM, which contends that there are unique \"ideal forms\" of HRM systems that provide both horizontal and vertical alignment of HRM activities with organizational structure and strategic objectives. More specifically, there are certain, specific HRM systems that produce the highest levels of internal consistency and complementarity (horizontal fit), as well as alignment with organizational goals (vertical fit). We saw how Walmart HR managers organized a systematic form of HRM policies to complement each other and be congruent with corporate objectives in part 2 of this series (Gerald R. Ferris, 1999). Part 4: some advices to improve the employment practices at Walmart. Currently, based on the above study of HR managers' functions and various theoretical SHRM models, there are still many areas in which HR managers can develop. The resource-based approach focuses on firm assets that can be used to gain a competitive edge in the industry. There are three specific types of tools that can help you gain a competitive edge (Barney, 1991). The skills, judgement, and intellect of the firm's workers are examples of human capital resources. So, based on the case content, we just have the most basic knowledge about how Walmart abused its employees by various HR policies in order to minimize costs to the bare minimum, which will undoubtedly reduce the loyalty and commitment of the company's human resources. And, aside from referring to workers as \"associates\" and encouraging managers to think of themselves as \"servant masters,\" there seems to be little training and other actions taken to improve the company's important human resources, despite the fact that human capital and learning may be a key source of long-term competitive advantage (Nile & Jeffrey, 2004). The basic training and development methods and forms will be decided by the required 34 CU IDOL SELF LEARNING MATERIAL (SLM)

time, place, and shop. However, when calculating the long-term benefits of such HR activities, HR managers should pay more dynamic and long-term attention. Even with the \"contingency model of best fit,\" there might still be room for change in current employment practices. It's difficult to say whether Walmart's ambitious cost-cutting steps can help the company meet its long-term goals. Staff are angry about Walmart's discrimination and low pay practices, and they have filed several lawsuits against the company around the world. The government and other societies are becoming increasingly vulnerable to Walmart's aggressive behaviour; all of this causes significant harm, or even greater cost, to Walmart's image, and can jeopardize its long-term profitability. It imports a lot of commodities from China, and it also operates sweatshops in less developed countries to manufacture Walmart- branded products, which causes a lot of issues, such as business ethics, followed by customer resistance, which is the final source of profit. As a result, it seems that Walmart HR professionals will reap more benefits if they could see the long-term potential expense and use more sophisticated management resources. Conclusion: As a result of all of the preceding material, we can deduce that human resource management is of strategic importance to Walmart, as described by SHRM. So, in addition to the HR executive, top managers should pay more attention to day-to-day employment management, as these are the problems that they must deal with on a regular basis. As a result, they could take a more proactive position in preparing and using their human capital, as well as possibly fostering a more cost-effective organizational culture, both of which might help realize Sam Walton's basic concept of \"bringing more value to consumers.\" 2.4 SUMMARY • Strategic HRM refers to HR that is coordinated and consistent with the overall business objectives in order to improve business performance. • According to Purcell (1999), The focus SHRM is on actions that differentiate the business from its competitors. • Strategic HRM emphasizes the importance of HR – and the people in the business – for the success of an organization. • Businesses with an emphasis on strategic HRM may have an HR representative in the boardroom or advising/feeding back to senior executives, and may also make use of HR business partners. • Critics often comment that SHRM is a good idea in theory but often hard to implement at the organizational level. 35 CU IDOL SELF LEARNING MATERIAL (SLM)

• Translating the organization’s objectives and values into tangible initiatives that can be driven by the HR department is a complex problem underlying strategic HRM. 2.5 KEYWORDS • Demand – A prediction needs to be made in relation to the number of employees with the associated skills that will be required in order for your company’s future needs to be met. • Supply – Looks at the employees and skills that are currently available to help your company achieve its strategic goals. • SHRM – Strategic Human Resource Management • HRM – Human Resource Management 2.6 LEARNING ACITIVITY 1. Columbus Custom Carpentry: A Compensation Case Study ____________________________________________________________________________ __________________________________________________________________________ 2. Designing a Pay Structure: A Case Study and Integrated Exercises ___________________________________________________________________________ ___________________________________________________________________________ 2.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Briefly discuss the strategic HRM strategy. 2. Define human resource management. 3. Develop a strategic HRM plan. 4. Strategic HRM Applications 5. Natural factors influencing strategic HRM Long Questions 1. Provide a brief overview of HRM. 2. Explain briefly the HRM mechanism and the steps involved. 3. What is SHRM in a nutshell? 36 CU IDOL SELF LEARNING MATERIAL (SLM)

4. The SHRM policies and services provide various measures. Comment? 5. List the merits and demerits of retention plans? B. Multiple choice Questions 1. Management of Human resource emphasis on. a. people development b. people punishment c. people adoption d. None of these 2 Human resource management is combination of a. Job analysis, recruitment and selection b. Social behaviour and business ethics c. Organizational behaviour, personal management and industrial relation d. Employer and employees 3 Planning, organizing and controlling of procurement, development, compensation, integration of human resources to the end that objectives of individual, organization and society are achieved given by a. Storey b. Flippo c. Vetter d. F.W. Taylor 4 Functions of HRM includes which are operational in nature a. Procurement, development, compensation & motivation b. Maintenance c. Integration and emerging trends d. All of these 5 The fundamental managerial functions of HRM are 37 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Planning, organizing, staffing b. Planning, organizing and coordinating c. Planning, organizing, directing and controlling d. None of these Answers 1 – a, 2 – c, 3 – b, 4 – d, 5 – c 2.8 REFERENCES Text Books – • Armstrong, Michael & Baron Angela. (2005). Handbook of Strategic HRM (1st ed.). New Delhi: Jaico Publishing House. • Mello, Jeffrey A. (2007). Strategic Human Resource Management (2nd ed.). India: Thomson South Western. Reference Books- • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17,99–120. • Davies, H., Leung, T.K.P., Luk, S.T.K. and Wong, Y.H. (1995), \"The benefits of \"guanxi\", The value of relationships in developing the Chinese market\". Industrial Marketing Management, Vol. 24, pp. 207-14. • Delery, John E; Doty, D Harold (1996), Modes of theorizing in SHRM: tests of universalistic, contingency, and configurational performance predictions, Academy of Management Journal; Aug 1996; 39, 4; p 802-835. • Gary Dessler (2005), Human resource management, tenth edition, Pearson Prentice Hall, p 76-78. Gerald R. Ferris, Wayne A. Hochwarter (1999), Human Resource Management: some new directions, journal of management, 1999, Vol,25, No.3, 385- 415. 38 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 3: MODELS OF STRATEGIC HRM Structure 3.0 Learning Objectives 3.1 Introduction 3.2 Development & delivery of HR Strategies Integration of HR strategies with business 3.3 Summary 3.4 Keywords 3.5 Learning Activity 3.6 Unit end Questions 3.7 References 3.0 LEARNING OBJECTIVES After studying this unit, you will be able to: • Understand nature of HRM • Identify scope of HR Strategies • Evaluating your HR Function • Elements of strategic human resource management 3.1 INTRODUCTION From its traditional position as a passive transaction processor, the Human Resource feature has grown into a strategic business partner. The strategic HR function's main aim is to \"transform the company's workforce's output to achieve overall corporate objectives.\" The strategic goal for HR should be to raise sales and efficiency while maintaining relative labour costs, because as revenue increases in a competitive market, goods and services grow as well, creating long-term competitive advantages. (2005, Sullivan) HRM aims to strategically exploit people skills to ensure the firm's competitive edge. Successful HR activities have been shown in research to have a positive effect on the bottom line, and workers may have a direct impact on customer satisfaction. Compliance with laws and regulations, community relations, and social responsibility are all aided by effective HRM activities. HR will build synergies from the diverse concerns of different stakelders across all of these steps, enabling the organization to retain its competitive edge. Organization and Environment 39 CU IDOL SELF LEARNING MATERIAL (SLM)

The organisational structure is heavily influenced by the organization's environment. The organisational structure, according to Mintzberg, is determined by environmental conditions and the speed of the organisation. The world has influenced the organization's structure. Mintzberg et al., 2001). The four organisational types identified by Mintzberg are based on the organization's various operational mechanisms. The organisational subunits play a crucial role in the execution of a project mechanism. The following is Mintzberg's description of organisational types: The Simple Structure • Machine Bureaucracy • Defictionalized Form • Professional Bureaucracy • Adhocracy The formal relationships in the organization are defined by the organizational structure. The organization's framework is tailored to the community. The organizational framework establishes the laws, policies, and management hierarchies. The organization's structure must adapt to the environment; if it does not, problems will arise. Core components of organizational structure: • Operating centre - people that provide or manufacture the products or services that the company provides to consumers or employees, such as professors and teaching and learning. • Strategic pinnacle - primarily concerned with the external climate, develops the mission, and provides strategic guidance, e.g., Trustees, Chancellor, and President. • Middle line - managers who oversee, control, and provide support for the operational centre, such as assistant directors and level coordinators. • Technostructure - consists mostly of analysts whose task it is to inspect outputs and procedures in order to standardize the work of others, such as curriculum coordinators, counsellors, and special appointments. • Support staff - which perform duties that indirectly assist the operating core's work, such as office and maintenance personnel, teaching assistants, etc. (Mintzberg, 1973) The Entrepreneurial Start-up (the simple structure) Entrepreneurial or organizations are authoritarian structures that are regulated, guided, and represent the principles and concerns of a single individual, typically the founder/owner or chief executive officer. The basis of this form of organization's authoritarian nature could be due to the autocratic nature of its leader, who accumulates and collects power; or it could be due to the charismatic or revolutionary nature of its leader, in which case the members of the 40 CU IDOL SELF LEARNING MATERIAL (SLM)

organization voluntarily give up power. This is a very simple organizational structure, and the corporation is usually small. Since the company is essentially a single person, there are no conflicts or political issues (Mintzberg, 1987). The Machine Bureaucracy The machine, also known as machine bureaucratic, is a highly formalized entity with simple divisions of labour, typically along functional lines. Both facets of organizational function have a high degree of formalization. There are entities that have a \"power obsession.\" They are also susceptible to internal disputes, according to Mintzberg (Mintzberg, 1989). Machine bureaucracy is popular in mature organizations that are big enough to have streamlined operations. The Professional Bureaucracy The work done by its employees, the practitioners, in this type of organization is nuanced and highly qualified, but also relatively structured. Mintzberg uses universities and hospitals as archetypal examples. However, even though the function in such organizations is reasonably structured, the same degree of formalization and regulation that is typical of computer bureaucracy in general cannot be applied due to its complexity. Professionals maintain their autonomy, as well as the control that comes with it. The current formalization and regulation are a result of the profession's inspired principles and aspirations as a whole, rather than the specific organization in which the individuals function. Collegiality is prevalent in decision- making and coordination activities, while differences of opinion, conflict, and associated internal political activity may occur. A similar mix of collegiality and autonomy can be found in the professional organization. The Adhocracy (the innovative organization) This style of organization is distinguished by its fluidity and versatility, as well as a lack of structured organization and structures, as the name implies. Work is usually done by ad hoc or project-by-project teams of different types of experts. Because of its fluidity, it's likely that players, in the context of the knowledge ward model, don't get a chance to shape in this type of organization. Within it, various teams or groups use whatever processes and data are required for their purposes at the time. Not only do the procedures and data that are used change on a daily basis, but so does the membership of the teams or organizations that deal with them. Any team or party, as well as the organizational tools they depend on, may not be able to establish a distinct identity and corresponding sense of business position ownership under such rapidly changing circumstances. 41 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 3.1: Environmental Determinants of Organizational Structure The business environment can be divided into four types: Simply put, businesses will face less uncertainties and demands to adapt. Complex – there are more variables to consider, resulting in more uncertainty. This could stem from some of the markets in which the company operates, either as a result of its diversification policy or the number of foreign markets it prefers to operate in. Stable – When a market is under little pressure to adjust, the company can forecast market situations with some confidence, making preparation and strategic consideration simpler. In these four cases, the need to build a system that can handle these problems should be considered. Unpredictable – Are defined by the frequency of change, which contributes to change. Complex and unpredictable conditions would be of concern to those who work in the international marketplace. Many organizations are attempting to create systems that encourage horizontal rather than top-down communication in order to address the demands of the uncertain environment; similarly, work definitions will appear to be less formalized and promote a more flexible organization. Machine bureaucracy – is based on the value of technological structure or the need to control operations, resulting in a focus on bureaucratic procedures that are suitable in simple or static 42 CU IDOL SELF LEARNING MATERIAL (SLM)

environments. Professional bureaucracy – The value of the operating core has risen, and it can be seen in areas where entering the core requires a high level of professionalism. The role of middle managers and the power and control that this category has is reflected in the divisionalized type. This has been interpreted as a threat to businesses. 3.2 DEVELOPMENT & DELIVERY OF HR STRATEGIES INTEGRATION OF HR STRATEGIES WITH BUSINESS Traditional support services – HR, Finance, IT, Administration, Legal, and so on – are under - pressure on a daily basis to have a more direct effect on business performance. The business case for this strain is straightforward. Customers, boards of directors, experts, and investors are pressuring organisations, both public and private, to do more with the resources they have or, in many cases, do more with less. More resources should be provided. Deliver them in more places, quicker and with more importance. Make the experience your own. To improve controls and cross-selling, gather, evaluate, and incorporate data in a variety of ways. Enable access at all times of the day and night. Allow for a range of working hours. Provide opportunities for lifelong learning and a healthy work-life balance. All should be moved online – and made available from anywhere, with complete privacy and protection. You see what I mean. And we're guessing that if you're reading this, you're living that picture in many ways. We need to be important to our audience in order to be taken seriously as HR professionals. To be important to the corporate leaders and C-Suite executives we represent, we must first recognise and embrace the organization's values and priorities, and then make them our own. This necessitates a clear connection between our HR strategies and the strategies – and, eventually, the performance – of the organisation we represent. A strategy is a well-articulated plan that enables a company to make the best use of its people, capital, and investments to meet its goals and objectives. In this post, we'll give you a taste of what it means for HR professionals to match their HR tactics with those of the market leaders they work with. Linking HR Strategy with Business Strategy, a hands-on, immersive curriculum provided by Queen's IRC, discusses and builds on these concepts, mindsets, and skills. Where do you begin if you're an HR professional who wants to build a meaningful relationship with your company's or organization's leaders? We suggest that you take the following steps to begin developing those relationships and embarking on your journey. 1. Become familiar with the company's priorities and objectives and make them your own. 43 CU IDOL SELF LEARNING MATERIAL (SLM)

To be important, we need to know what our business partners are trying to accomplish and what tactics they are using to get there. Read their written plans, make notes on them, ask clarifying and difficult questions, and have a discussion with your HR team about the goals and strategies. The majority of business leaders enjoy talking about their companies. Set up a monthly meeting to discuss the business unit's plan and requirements, if necessary. If you're embedded in the unit, look at their plans and progress, attend all meetings, and invite team members out for coffee or lunch so you can learn more about what they're trying to achieve and how you can improve. One barrier you can face is the lack of a written plan in your organisation. If that's the case, use the business ideas below to piece together some strategic focus areas that will assist you in developing and delivering a relevant HR plan. Whether they admit it or not, every organisation has a plan. Our work as HR professionals often necessitates figuring out what the technique is before we can serve it. 2. Examine your HR activities from a company perspective. The first lens focuses on the most critical market generators. Note that business targets are typically related to one of three key objectives: sales development, cost reduction, or risk management, as you work to grasp and digest the company's goals and strategies. You can then track back the HR activity you're recommending across the value chain and demonstrate how it specifically affects your primary objectives by beginning with these primary objectives. Let's consider recruiting and how it could affect a could sales force. The primary goal of a skilled sales force is to increase revenue. Our experience shows that a standardised hiring process, which incorporates the candidate's previous sales performance with scenario testing and experience-based interviewing and is carried out in coordination between HR and the sales leader, greatly increases new recruit sales success and helps to drive faster revenue growth. Work to link your storey or advice to one – or more – of the three primary objectives – sales, expense, or risk – while addressing HR practises. The second lens through which HR practitioners can look is how the business's value proposition impacts a customer's needs and decision-making. Effective companies develop a value proposition designed to please their targeted consumers, offer superior value, build loyalty, and distinguish the company from its rivals in order to attract and retain customers. As an HR professional, it is your responsibility to strengthen the value proposition through appropriate and centred HR activities. Compensation plans and training and development programmes, for example, in a sales or service company, must be designed to explicitly build the motivation, expertise, knowledge, and morale of the front sales and service workers. In this way, HR activities will aid those employees in delivering the value proposition in a way that provides a unique and meaningful customer experience. According to leading HR expert Dave Ulrich, this is one of the fundamental mindsets that drives the impact of HR practises in specific organisations; that HR professionals must learn to look at the business from \"the outside in\"; that if we want to have a meaningful 44 CU IDOL SELF LEARNING MATERIAL (SLM)

dialogue with our customers, we must start with their customers' customers and how they make decisions. 3. Make the connection: Establish a link between HR strategy and business outcomes. You will work to explicitly relate everything you do to the business's progress once you understand the priorities, objectives, and plan. You develop your plan and enforce your procedures to help the organization's overall objectives. This is true of businesses, labour unions, and government agencies. The world's best companies use a suite of innovative HR practises, such as performance management systems, learning plans, organisational design, change management programmes, and employee input and engagement initiatives, for sound strategic reasons. These services improve the overall value proposition of the company and include a main piston in the engine that drives performance when they are well planned and professionally implemented. 4. Speak their language: Company is a language of numbers. One of the most common criticisms we hear from business leaders about their HR support teams is that HR policies and procedures are not addressed in the same financial or numerical terms as other business decisions. If you want to be understood by corporate leaders and C- suite executives, you must communicate in their language, which is numbers: numbers are the language of business. When it comes to business decisions, there are two types of numbers. The first and most noticeable is the financial effect, or dollars and cents. The financial effect that an investment or programme may have on a company is used to calculate value and drive decisions. We understand that estimating a particular dollar gain for many HR activities is difficult, but we must at least show estimates and potential effects. Most executives are not adamant about all HR programmes involving a business case. They agree that cultivating a healthy, knowledgeable, and informed workforce is a vital strategic need for success. However, our ability to at least quantify or wrestle with a program's financial effect shows them that we recognise the difficulties they face when making investment decisions; it puts us on their side of the table when deciding the best use of the organization's limited financial capital. Activity and satisfaction polls, as well as organisational and shift metrics, are other numbers you should be familiar with. If the company uses a balanced scorecard to monitor customer satisfaction, financial results, operational processes, and change or learning initiatives, investigate how these numbers (or scores) are calculated, how they relate to the value proposition, and how business unit executives are shaping their strategies to achieve top scores and thereby strengthen the metric. The bulk of the scores that make up a healthy scorecard can be influenced directly by HR activities. However, in order to have a \"educated\" conversation about how the business units would better benefit from such activities, you must first understand the statistics and how they are affected. 45 CU IDOL SELF LEARNING MATERIAL (SLM)

5. Which character do you adopt? Finally, in meetings with my organization's representatives, ask yourself, \"Who do I turn up as?\" Do you present yourself as a well-informed business expert who is thoroughly familiar with your company's strategy and value proposition? Do you present yourself as someone who knows how your customers make decisions and is able to address the metrics that determine their success? Do you show up as a professional who can help them implement change in a way that maximizes effectiveness and minimizes risk? Strategic HR Planning Acquisition and Development 1. Assess current HR capacity 2. Forecast HR requirements 3. Develop talent strategies 4. Review and evaluate When 71% of CEOs believe their employees are the most important factor in their company's financial performance, it's easy to see why the human resource management planning mechanism—the process by which companies decide how to adequately staff to satisfy business needs and consumer demands—is so important. Despite the apparent need, many companies lack a strategic human resource planning mechanism, with nearly a third of HR professionals believing that their departments need to strengthen strategic alignment. You've come to the right place if you've considered creating an HR preparation process. This article will clarify how to document the strategic plan and what this phase entails. In no time, you'll be filling positions and expanding your company. 46 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 3.2: Steps to Strategic HR Planning. 3.3 SUMMARY • Strategic Human Resource Management was first proposed in 1984 and has since grown in popularity. • People in strategic planning are increasingly focusing on employee-related problems and how they impact a company's long-term performance. They're recognising that integrating corporate and human resource strategies strategically is key to achieving an organization's objectives. HR managers and executives want to know how to make the most of their most valuable asset: their employees. • As part of a group dedicated to fostering a positive corporate culture, I decided to look at some examples of strategic HR. 47 CU IDOL SELF LEARNING MATERIAL (SLM)

• I looked at some of the top corporations and outlined how strategic human resource management has shaped their corporate strategies and, in some cases, has been their key competitive advantage over rivals. 3.4 KEYWORDS • Operating core - those that provide or produce what the organization offerscustomers or clients, • Strategic apex - relate mainly to the external environment, create the mission and provide strategic direction • Middle line - those managers who supervise, control, and provide resourcesfor the operating core • Techno structure - consists mainly of analysts whose role is to standardize the work of others by inspecting outputs and processes • Support staff - which perform tasks that indirectly facilitate the work of the operating core 3.5LEARNING ACITIVITY 1. Visit the IT/BPO industry and collect the data on Recruitment strategies they follow. ____________________________________________________________________________ __________________________________________________________________________ 2. Visit the Manufacturing industry and collect the data on HR Strategies they used for business. ____________________________________________________________________________ ____________________________________________________________________________ 3.6 UNIT END QUESTIONS A. Descriptive Questions Short Questions: 1. What is SHRM. Differentiate SHRM and HRM. 2. Discuss the various approaches and challenges of SHRM. 3. Describe the scenario of SHRM in Indian context. Also compare it with western context. 4. Explain the need of SHRM and its impact in modern business scenario. 5. Define HR strategies. Also discuss its types. Long Questions 48 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Discuss the challenges of SHRM 2. What are the features of SHRM? 3. Advantages and Disadvantages of SHRM 4. Discuss briefly and explain the different types of HR Strategies used? 5. Difference Between SHRM and HRM B. Multiple choice Questions 1. To be ethical and social towards needs of society is ______________ objective of HRM a. societal b. operational c. functional d. None of these 2. The fundamental objective of every organisation is a. survival b. achieving targets c. profit d. compete in competition 3. The characteristics of human resources are ________ in nature a. homogeneous b. heterogeneous c. ductility d. None of these 4. The scope of human resource management includes a. procurement b. development c. compensation d. All of these 5. Human resource management helps improve 49 a. production b. productivity c. profit d. power Answers 1 – a, 2 – b, 3 – b, 4 – d, 5 - B 3.7 REFERENCES CU IDOL SELF LEARNING MATERIAL (SLM)

Text Books – • Armstrong, Michael & Baron Angela. (2005). Handbook of Strategic HRM (1st ed.). New Delhi: Jaico Publishing House. • Mello, Jeffrey A. (2007). Strategic Human Resource Management (2nd ed.). India: Thomson South Western. Reference Books – • Regis, Richard. (2008). Strategic Human Resource Management & Development (1st ed.). New Delhi: Excel Books. • Agarwal., T. (2007). Strategic Human Resource Management. New Delhi: Oxford University Press. • Dhar, Rajib Lochan. (2008). Strategic Human Resource Management (1st ed.). New Delhi: Excel Books. 50 CU IDOL SELF LEARNING MATERIAL (SLM)