MBA_StrategicHRM_Unit7

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2 Strategic HRM www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

3 Unit 7 – Human Resource Environment • Human resource environment- Concept • Reward and compensation strategies www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

4 Human Resource Environment - Concept Human Resource Environment is a part of social environment which includes the concept, viewpoints, work culture, attitudes, efficiency, skills, productivity, nature and behaviour of HR, employees’ demand and supply, motivational aspects, compensation methods and industrial relation concerning of HR practices. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Need to study Human Resource 5 Environment 1. In order to create and develop intellectual capabilities among employees, there is need to develop the learning and knowledge attitudes among employees; 2. In order to determine and prepare social values, ethical norms and several code of conducts within the purview of employees; 3. In order to analyse and implement effectively and perceptively the business and labour laws and provisions; 4. For strengthen and develop the work plan for productive and constructive activities by the employees; www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Contd… 6 5. In order to make congenial and harmonious work-culture at work places, there is need to analyse all the relevant aspects as arising out of environmental studies; 6. In order to solve and overcome different societal issues, evils and conflicts, there is need to analyse the social environment; 7. For managing and organizing the mechanical and technological advancement as well as new and innovative methods at the work place; 8. In order to take sound, rational and comprehensive decision making invariably relating to HR practices; www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Contd… 7 9. In order to determine long term strategies for different internal and external aspects of HRM as well as to develop HR efficacies; and 10. In order to study, analyze and develop the personal skills and efficiency, there is a need to study HR environment. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

What is compensation strategy? 8 The compensation strategy defines the basic compensation components used in the organization and the standard rules applied to each compensation component. The compensation strategy has to be in line with the business and HR Strategies as the compensation of employees is aligned with the expectation of the top management from them www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

HR Strategy and Compensation 9 Strategy The HR Strategy always defines the basic principles for the compensation scheme in the organization and the compensation strategy defines the details for the components and when and how they will be introduced or redesigned. The compensation strategy should be updated, when Human Resources makes significant changes to the HR Strategy or the organization changes its business strategy. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Compensation strategies can be 10 used to: •hire and retain top performer employees. •increase the satisfaction level of employees. •reward and recognition programs to inspire peak performance. •achieve internal as well as external equity. •lessen turnover and boost company loyalty. •adapt practice of transparent payment policies. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Need to have Compensation 11 Strategy o Helps to increase the motivation of employees o Keep a competitive edge for recruitment o Legal Compliance o Employee Loyalty o Increased Productivity www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Examples 12 www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

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14 Reward Strategy Reward strategy involves designing and implementing reward policies and practices support your organization's objectives, delivering a motivated and effective workforce. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

What Should a Reward Strategy Consider? 15 A good reward strategy will consider more than just pay, so it is important to do more than scour the local press to find out what the market is paying. Organisations can get just as much, if not more, out of non-financial rewards as from financial ones. A total reward approach looks at what your organisation is trying to achieve, what your people want, what is affordable, and the structures needed in place to achieve this. We base our approach on the four pillars of workplace fulfilment, www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

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17 THANK YOU www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

18 Explanation for Slide 16 www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

1.Pay 19 Every organization must pay its employees for the services that they provide (time, effort and skills). This includes both fixed (salary and allowances) and variable (bonus and incentives) pay. The cash compensation provided to employees increases over time and can be linked to a number of different factors, such as performance or career development. 2.Benefits Organisations use benefits to supplement the cash compensation they provide to employees. These vary depending on the size of the organisation and affordability but can provide security and comfort to the employees and their families. The benefits include holidays, medical cover, income protection and pension schemes. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

20 3.Personal Growth Providing personal and professional growth opportunities to employees is an essential part of any reward strategy. These can be skills acquired on the job as well as formal training programmes valued by the employees that also serve the organisation’s strategic needs. Alongside this development, however, is the need to manage expectations, assessing performance and constantly striving to improve. 4.Positive Workplace A positive work environment can often be the defining factor in retaining key talent in an increasingly competitive market. Ultimately, we all want to work in an environment where there is genuine feeling of team spirit and togetherness, with a leader that inspires and supports us to achieve success both at work and at home. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL