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Strategic

Human Resource Management


1

Dr. Rajib Dhar


Evolution of Human Resource

Ancient
times
Linking Organisational Goals with Individual Goals
Linking Organisational Goals with Individual Goals
Organization Vision and Mission

Business Strategy

Unit Strategy

Departmental / Functional KPA

Team KPA

Individual KPA

Objectives / Goals Performance


Measures

Action Plans
Dr. Rajib Dhar
MODEL OF STRATEGIC HRM
EXTERNAL ENVIRONMENT

Competition
Government regulation
Technology Employee Law
Market Trends Separation Regulating
Economy Employee
Staffing

HR STRATEGY Training

CORPORATE BUSINESS HR Planning Performance


STRATEGY STRATEGY Job Design Management
Work Systems
Workers Need
Job Interface
INTERNAL ENVIRONMENT
HRIS Compensation

Culture
Structure Labour
Politics

Relations
Employment skills
Past strategy
Strategic Management Process The design School

External Appraisal Internal Appraisal

Threats and opportunities Strength and weakness of


in environment organisation

Key success Distinctive


factors competencies

Creation of
Strategy

Social Responsibility Managerial Value


Evaluation and
choice of
strategy

Implementation Dr. Rajib Dhar


of strategy
Models of SHRM

1) Porters competitive advantage


2) Devannas SHRM Matching Model
Competitive advantage
The low-cost
Low cost Uniqueness leadership
strategy
Broad Target attempts to
Low cost increase the
Differentiation organization
Leadership
Strategy s market
Competitive Scope

e.g. Walmart share by


e.g. Tommy hilfigers
apparel
having
lowest unit
cost and
Focused price
Focused low-cost compared
Leadership Differentiation with those of
e.g. Mountain equipment
competitors .
e.g. Rent-a-wreck cars
co-operative
Narrow Target
Differentiation strategy assumes that managers distinguish their services
and products from those of their competitors in the same industry by
providing distinctive levels of service, or product quality such that
customer is ready to pay a premium price.
Devannas SHRM Matching Model
Political
Forces

Mission
Economic Cultural
&
forces Strategy forces

FIRM
Org.
HRM
Structure

Dr. Rajib Dhar


Job Analysis
Staffing
Manpower planning

Job analysis

Job description

Job specification

Job evaluation
A model for the design of work systems

What workers do What workers need

Work systems

How jobs interface


with other jobs

Dr. Rajib Dhar


Methods of collecting job analysis data

Interviews

Questionnaire Employee report

Methods

Document research Observation


The job characteristics Model (JCM)
Job Psychological Personal and
characteristics states work outcomes

Skill variety
Experienced
Higher internal
Task identity meaningfulness of
work motivation
work
Task significance Higher general job
Experienced satisfaction
Autonomy meaningfulness for Higher growth
work outcomes satisfaction
Feedback Knowledge of results Higher work
effectiveness

Moderators:
Growth need strength
Pay satisfaction
Security satisfaction
Co-worker satisfaction
Supervisor satisfaction
Knowledge and skill Dr. Rajib Dhar
Sample for Task analysis
JOB: Electrical Maintenance worker

Task Task Frequency of Importance Difficulty


description performance

199-264 Replace a light bulb 012345 012345 012345


199-265 Replace electrical point 012345 012345 012345
199-266 Repair a fan circuit
012345 012345 012345
199-267 Install a switch
012345 012345 012345
199-268 Replace faulty wire
012345 012345 012345

Frequency of Importance Difficulty


performance
1 = Negligible 1 = Easiest
0 = Never
5 = Very high 5 = most
5 = Often difficult
Type of information obtained through Job analysis

Content of the job


a) Duties and responsibilities
b) Job demands
c) Machines and tools
d) Performance stds.

Context of the job


a) Physical working condition
Job analysis b) Work schedule
c) People with whom employees
interact

Human requirements
Job related knowledge and skills
and required personal attributes

Dr. Rajib Dhar


Recruitment & Selection
Traditional model

Two main phases: the attraction phase and the


selection phase

(Schneider 1995, pp. 24-25)


Traditional model

Two main phases: the attraction phase and the


selection phase
Attraction Phase Selection Phase

Definition of overall strategy based on overall personnel planning


Planning
activities Determination of target groups Determination of selection
criteria and methods
Design of measures to
attract/approach candidates
from target groups

Execution Employer Branding Pre-screening


activities Attraction of Direct applicants Final selection

Applicant management

(Schneider 1995, pp. 24-25)


Breaugh, J. and Starke, M, (2000)
Dr. Rajib Dhar
A logical structure of Typology
of Firms

Labor Market Power


(environment)
Characteristics
recruitment of the
strategy
firms workforce
Organizational
Intelligence
(internal Sources)

(Manwaring 1984)
The stages of recruitment and selection
Internal factors External factors

Job analysis HR Planning


Staffing needs
Options: internal / external

Recruitment

Pool of applicants

Selection

Job performance
Dr. Rajib Dhar
Recruiting Pyramid

Job offers 2:1

t
ou
ed
Invited for en 3:2
interviews
re
sc
ts
an

Job
lic
pp

applicants 2:1
A
The e-recruitment landscape
Line Manager

Candidate

System Interface Phone/email


Candidate records
& Tracking

HR
Agency
Phone/email
Process of Recruitment

Sourcing Recruitment Staffing

Dr. Rajib Dhar


Methods of Sourcing
Headhunting

Networking / References

Portal Search /
Advertisements

Database Management
Methods of Sourcing
Headhunting:
the process by which employees from the competitive
organizations are identified, targeted and approached, by
the sourcing firms in order to place them in their clients
organization.

Company Mapping
Making the cold call
Tree Building
Identifying the relevant candidate
Making the offer
(a) Marketing: Companies making similar products or giving similar services,
(b) Finance: Company having similar financial turnover,
(c) Human Resource: Companies having similar employee strength and
(d) Systems: Companies working on similar systems and processes.
Dr. Rajib Dhar
Methods of Sourcing
Headhunting:
the process by which employees from the competitive
organizations are identified, targeted and approached, by
the sourcing firms in order to place them in their clients
organization.

Making the cold call


Methods of Sourcing
Headhunting:

Making the cold call

Identifying the relevant candidate


Tree Building

Making the offer


Methods of Sourcing

Networking / References
Promotion of a present employee
Recommendation or reference given by
another employee
Rejoin of former employee

Dr. Rajib Dhar


Methods of Sourcing

Portal Search / Boolean Search


Naukri.com Monster.com
Boolean logic consists of three logical operators:

OR

AND

NOT
Methods of Sourcing

Portal Search / Boolean Search

The logic behind OR

College OR university
Methods of Sourcing

Portal Search / Boolean Search


The logic behind AND

Poverty AND crime

Dr. Rajib Dhar


Methods of Sourcing

Portal Search / Boolean Search


The logic behind NOT

Cats NOT dogs


Methods of Sourcing

Database Management
Maintaining Data of Past employees (who
have left)

Waiting list method

Use of SOFTWARES like SAP / People Soft

Dr. Rajib Dhar


The selection process
1. Interviews:
a) Unstructured and structured interview
b) Behavioral description interviews
c) Situational interview

2. Psychological Tests:
a) Cognitive ability tests
b) Polygraph and honesty tests etc.

3. Person Environment Fit

Dr. Rajib Dhar


Person Environment Fit (P-E Fit)
1. Person Vocation fit (Holland, 1997 ) PE fit is broadly defined as the compatibility
2. Person Organisation Fit (Chatman, 1989) between an individual and a work environment
3. Person Job fit (Kristof, 1996) that occurs when their characteristics are well
4. Person Group fit (Werbel & Johonson, 2001) matched.
5. Person Person fit (Vianen, 2000) (Kristof et al., 2005)
Supplementary Fit

P-E Fit Need-supplies Fit

Complementary
Fit
Demand-abilities
Fit
Perceived Fit Actual Fit
Supplementary fit occurs when a person supplements,
Demands-abilities fit is achieved embellishes, or possesses characteristics which are similar to
when the individuals contribution other individuals in an environment.
supply meets environmental Complementary fit occurs when a persons characteristics
demands. make whole the environment or add to it what is missing.

An environment supplies financial, physical, and psychological


resources as well as task related, interpersonal, and growth
opportunities that are demanded by individuals. When such
resources from the environment meet an individuals needs,
needs-supplies fit is achieved.
Staffing

1) Reference checks and verifications


2) Medical Check-ups
3) Fulfillment of employment formalities
4) Allotment of stationeries and resources
5) Induction training
Assessment Centers

An Assessment Center consists of a standardized evaluation of


behavior based on multiple evaluations including: job-related
simulations, interviews, and/or psychological tests. Job
Simulations are used to evaluate candidates on behaviors
relevant to the most critical aspects (or competencies) of the job.

Dr. Rajib Dhar


Assessment Centers
A BRIEF HISTORY

After their defeat in World War I, German psychologists were involved in the
selection process of the young German officer corps. By the 1930's, they had
worked on a series of multiple-assessment techniques for developing a
selection process for a number of civil-service type jobs.

In U.K, we can trace the existence of assessment centers back to 1942 when
they were used by War Office Selection Boards.
The assessment center approach adopted was an attempt to accurately elicit
the types of behaviour that an officer was required to display in order to be
successful in their job.
In the United States assessment centers were initially used by the Office
of Strategic Studies to select spies during the Second World War.
Subsequently the use of assessment centers was taken up by the private sector
especially the giant American Telephone and Telegraph Company (AT&T) which
began using assessment centers for management selection in 1956 as well as Standard
Oil Ohio, IBM, Sears and General Electric.
Assessment Centers
The International Congress on the Assessment Center Method has established
certain standards for assessment centers. These include:

1) Multiple Assessors
2) Judgments resulting in an outcome based on pooling information from the
assessors.
3) The evaluation of the behavior observed must be made separately from
the actual exercises.
4) Use of simulated exercises that are protested, job related and elicit
reliable, objective and relevant behavioral information.
5) The dimensions, knowledge, skills and abilities are determined by
relevant job behaviors.
6) The evaluating techniques used are designed to collect data used to
evaluate those dimensions, knowledge, skills and abilities.

Dr. Rajib Dhar


Assessment Centers

1) In-Basket Exercises
2) Role-Plays
3) Analysis Exercises
4) Group Discussions
Employee Retention

1) Offer fair and competitive salaries


2) Clearly define roles and responsibilities
3) Provide adequate advancement opportunities
4) Conduct employee satisfaction surveys
5) Foster an environment of teamwork
6) Communicate openly
7) Give people the best equipment and supplies
possible
8) Show your employees that you value them
9) Make it a friendly place
10) Be flexible

Dr. Rajib Dhar


Training and Development
What is training ?
Process

End result
Difference between training and learning

Training

Learning
Levels of Training
1) Knowledge Level
2) Skill Level
3) Attitude level

Dr. Rajib Dhar


Objectives of Training

1) Induction Training
2) Refresher training
3) Remedial Training
4) Aiding displaced employees
5) Advancement
Importance of Training

1) Optimum Utilisation of Human Resources


2) Development of Human Resources
3) Productivity
4) Team spirit
5) Organisation Culture
6) Healthy work environment
7) Health and Safety
8) Profitability

Dr. Rajib Dhar


Reasons for the Failure of training
programme
1) Lack of Incentives laid management
2) Insufficient budgets
3) Incompetent trainers
4) Lack of trainees interest
5) Defective design of the programme
6) Minimum use of communication aids
7) Lack of feedback
Steps of training process

1) Identify training needs


2) Organize training programme
3) Conduct training programme
4) Presentation and orientation of knowledge
5) Evaluation and feedback

Dr. Rajib Dhar


Types of Training
On the job
Off the job
Causes and outcomes of Need assessment
Reasons or pressure What is the context Outcomes
points

Lack of basic skills What trainees need to


Poor performance learn
Organizational
Task analysis Who receives training
New Technology analysis
Type of training
Customer requests
Person Frequency of training
New products
analysis
Buy vs. build training
High performance stds.
decision
New jobs
How training should be
evaluated

Dr. Rajib Dhar