Goal of the PGDM

Program

What do managers do?

Technical job
Data and
research
People link
Miscellaneous

What is the goal of the PGDM Program?

To get a good job.
To get ahead of others in life through leadership

roles in Business, entrepreneurship etc.

How do you do that?
You need to create competitive edge for
yourself.
By OUTDECIDING ..through OUTTHINKING
You outthink by developing:
Analytical thinking
Critical thinking
Innovative thinking

So what?
So the course is designed very differently and

focused on developing your ability to outthink.

In this, cognitive process that creates

competitive advantage, you are the centre as

you alone can do that outthinking.
I am only a coach.
You have to run.
my role is asking you to run.
faster, better .every time.

The design of the course

It is intended for those who want to lead organizations and NOT

an HR specialist course.
It talks of creating competitive advantage and shows the way to

do it through HR.
It is self driven and team driven.
It makes you handle several real life situations not only through

cases but also through your own work- team work, mutual
evaluation, research, writing skills and so on.
It is NOT memory based course. It is a thinking based course.
It is based on your contribution in the class.
It is continuously evaluated using your assistance.
It is benchmarked to Jerry Peferrs HR course in Stanford.
& so, you are doing the best HR course in India.

Todays session:
Introduction to HR

Objectives
1. How has HR has become the most critical

factor of production.
2. How to apply the concepts of OB for HRM.
3. What is the impact of externalities on HRM - of

globalization, technology, human expectations

(as customer, employee and a social entity)
and organizational expectations on HRM.

What are the eras through

which man has progressed?
Agrarian 11,000 yrs.
Industrial 250 years or so.
Information 20 years or so.
Note the time compression in shifting of era.
Note the transition we are undergoing.

Implications of the
eras
1. Some still in pure agrarian Adivasis, remote
2.
3.
4.
5.

6.

area of Asia and Africa.

Predominantly agrarian era with a tinge of
industrial era.
Some in predominantly agrarian era with a tinge
of industrial era and information era, e.g., Amul.
Some in industrial era with some elements of
information era. E.g., auto companies.
Some live predominantly in information era with
vestiges of industrial era., e.g., Flipkart or other
aggregators.
Some are in pure info age. E.g, Google.

Who are U?

You are like Goddess Janus Looking forward and looking

back

Implications of the eras contd

Preferences differ.
Demands differ.
Hence managing style and methods differ.

Why is HR important?

How does it differ from other factors of

production namely land and capital?

Why is HR different from

other factors of production?
It can Innovate; other factors of

production cannot.
It can produce as well as become
destructive.
It can reenergize and renew itself; as it
gains experience its value appreciates and
NOT depreciate.
Can change itself and other factors of
production.
Can refuse to change and thus nullify other
factors of production.

How is knowledge of OB related to our

managing people?
Can you create a map to understand this

relation?
How can we use this map?

Purpose of OB

Turn Over

Org
Effectivene
ss
Productivit
y

Job
Satisfactio
n

Groups and Teams

Organization factors

Absenteeis
m

Individua OB
l
Values
Attitudes
Personalit
y
Perceptio
n
Learning
Emotions
& moods
Motivatio
n

deals with
Group &
Team

Groups
Teams
Communication

Leadership
Power &

politics
Conflict &
negotiation

Organizati
on
Structure
Design
Culture
Policies
&
practice.
Change &
stress

DIMESIONS

Individua
l
Values
Attitudes
Personality
Perception
Learning
Emotions & moods

Motivatio
n

THEORIES

Maslow
Two factor
X, Y
Goal theory
Valence
Equity theory
Nach, Npow,
Naff
MLT
New
framework

FACTORS

Physical,

Psychological,
Social, Esteem, SA

Direction giving,

Meaning making,
empathetic

Acquire,

comprehend,
bond, defend

Mo
ti
v
a
ti
o
n

Physical

Food, Water, Shelter, Air

Psychological

Safety, Security,

Social

Esteem

Self
Actualization

Groups, teams, team cohesion

Equity, promotions,
Appreciations

Org Vision, Values

Physical

Mo
ti
v
a
ti
o
n

Safety
Psychological

Social

Esteem

Self
Actualization

Security

Home drop, escort,

Hotels for stay,
nominated car rentals,
Job assurance, notice,
training for improvement,
assistance for
placement , insurance

HR FUNCTIONS

OB VARIABLES

Recruitment
and

Individual

Selection
Induction
Compensation
Reward and
Welfare
Performance
evaluation
Counseling &
Training &
Devp
Exit

Values
Attitudes
Personality
Perception
Learning
Emotions &
moods
Motivation

HR FUNCTIONS

OB VARIABLES

Recruitment

Individual

Selection
Induction
Compensation
Reward and
Welfare
Performance
evaluation
Counseling &
Training &
Devp
Exit

Values
Attitudes
Personality
Perception
Learning
Emotions &
moods
Motivation

HR FUNCTIONS

OB VARIABLES

Recruitment

Individual

Selection
Induction
Compensation
Reward and
Welfare
Performance
evaluation
Counseling &
Training &
Devp
Exit

Values
Attitudes
Personality
Perception
Learning
Emotions &
moods
Motivation

HR FUNCTIONS

OB VARIABLES

Recruitment

Individual

Selection
Induction
Compensation
Reward and
Welfare
Performance
evaluation
Counseling &
Training &
Devp
Exit

Values
Attitudes
Personality
Perception
Learning
Emotions &
moods
Motivation

HR FUNCTIONS

OB VARIABLES

Recruitment

Individual

Selection
Induction
Compensation
Reward and
Welfare
Performance
evaluation
Counseling &
Training &
Devp
Exit

Values
Attitudes
Personality
Perception
Learning
Emotions &
moods
Motivation

HR FUNCTIONS

OB VARIABLES

Recruitment

Individual

Selection
Induction
Compensation
Reward and
Welfare
Performance
evaluation
Counseling &
Training &
Devp
Exit

Values
Attitudes
Personality
Perception
Learning
Emotions &
moods
Motivation

Role of globalization on
HR
Globalization has resulted in redrawing the

rules on deployment of factors of

production, which move towards the areas
of efficacy and effectiveness in a flat world
relatively free of boundary. Tariff barriers
are broken, impact of using natural
resources beyond a limit is discussed and
rules framed, ethical standards are enforced
on a global level and so on.
How has these impacted HRM?

EXTRACTED FROM READING #3

The resource-based theory of the firm blends concepts

from organizational economics and strategic management

(Barney, 1991).
This theory holds that a firms resources are key
determinants of its competitive advantage.
Firms can develop this competitive advantage only by
creating value in a way that is difficult for competitors to
imitate.
Traditional sources of competitive advantage such as
financial and natural resources, technology and economies
of scale can be used to create value.
However, the resource-based argument is that these
sources are increasingly accessible and easy to imitate.
Thus they are less significant for competitive advantage
especially in comparison to a complex social structure
such as an employment system.

What are the three types of resources?

Three types of resources associated with organizations

are
(a) physical (plant; technology and equipment; geographic
location),
(b) human (employees' experience and knowledge), and
(c) organizational (structure, systems for planning,
monitoring, and controlling activities; social relations
within the organization and between the organization and
external constituencies).
HR practices greatly influence an organization's
human and organizational resources and so can be
used to gain competitive advantages (Schuler & MacMillan,
1984)

Key elements of resource based view of the

firm
If that is so, human resource policies and

practices may be an especially important source of

sustained competitive advantage (Jackson & Schuler,
1995; Pfeffer, 1994). Specifically, four empirical
indicators of the potential of firm resources to
generate competitive advantage are:
value,
rareness,
inimitability and
substitutability (Barney (1991).
In other words, to gain competitive advantage, the
resources available to competing firms must be
variable among competitors and these resources
must be rare (not easily obtained).

Intervening Var

Independent
Var
Managerial
Competencies
HR
competency
Business
Competency

Technical
HR Practices
Dependent Var
Organizational
performance

Strategic HR
Practices

Theoretical
framework of
HR

Moderating
Var
Organizational
Context Variables
Firm size
Level of
technology
Union cover

The new technologies are creating newer

ways of doing things.

How can we get the people to embrace

technology?

Why embrace technology?

We can connect better with people.
Our comfort has increased.
We are more efficient.
We are more productive.

Customers expectations-modern customer

1.
2.
3.
4.
5.
6.

Solid Information.
Options.
Single Source Service.
Communication.
Consulting.
Seamless Relationship.

Note: All these 6 expectations can be met

with only employees and hence HR.

As employees we not only want salary but

also a say in the organization and want to be

partners.
We want that the organizations use our
talent fully and make job meaningful besides
well compensated.
These talents cry out for deployment. Often
we are not able to do it in our organizations
because the organization is not ready for it
and so the talent migrates much like a
migratory bird looking for more conducive
areas.
Later, organizations find ourselves looking for
the same talents that migrated from us. How
do we manage talent?

Concept of rights
Dedicated employees have a moral
right to.
(1) be treated as every other financial

investor;
(2) share in the firms profits;
(3) timely, accurate, and sufficient disclosure
of significant information;
(4) protection from senior managers abusive
self-dealing; and
(5) mechanisms to protect their financial
investment including fair severance
payments and effective pension protection.

Training, equity and power

In transition from industrial to Info age- workers must be

sophisticated, technologically capable and empowered.

Train to face dislocation and create mechanisms to

absorb people in labor force.

Enlightened managers can communicate and enable

drawing satisfaction from the daily experience of doing a

good job, helping customers, and learning something
new.
From controlling to empowering, meaningful, productive

and rewarding work.

What will be the future of cost savings?

HR Future Savings
The leading goal (59.4%) - more from HR

technology without spending additional dollars.

Expanding HR training efforts or programs

(51.5%) came in second.

HR technology applications (41.8%);
Purchasing new HR technology, HRIS, or Web-

based HR
applications (37.7%);
Modifying compensation and rewards (36.4%);

To sum up.
We are in transition -Industrial to Info age.
A new connotation as a resource.
Globalization and resource based theory.
Embracing technology means better connection,

comfort, efficiency and productivity.

Customer has some expectations we meet it and

have our own in turn.

HR must be made a partner.
Cost savings will be a major criteria.
Together they create competitive advantage

Rules of the game

My goal is to give you competitive advantage.
Analytical thinking
Critical thinking
Innovative thinking.
Hence case method.
Honor code is important.
Code for submissions and preparations are sacrosanct.
If you miss a class, assignment or case analysis, you

loose. You can cannot seek concession since it will

affect the competitive advantage of others.
This is a daily assessed course. Focus on it.
Know the rules of preparation for the class.
Know the right way to do case analysis.

Each Theme gives you competitive advantage

Theme 1: Creating Competitive Advantage (3 sessions and 2 cases)
a. Creating sustainable competitive advantage through HR strategy.
b. Strategy implementation, internal alignment and external alignment.
II. Theme 2: Creating a High Performance Work Environment (8 sessions and 5

cases)
a. Selection
b. Structuring for high performance
c. Performance and Reward
d. Training and Development
III. Theme 3: HR in a Global Changing Work Context (4 sessions and 2 cases)
a. Diversity in workforce
b. Alternative work place
c. Global HR mobility
IV. Theme 4: Emerging Themes (3 sessions and 2 cases )
a. Ethics, Governance and HR
b. Social responsibility, environmental sensitivity and HR
c. Workplace relationship of Knowledge Workers and traditional workers
V. Theme 5: Integration of Learning (4 sessions, no cases, 10 presentations)
a. Profit through people
b. Group Project Presentations

Course design for competitive advantage.

How is it designed and integrated?
Core aspects
Recruitment
Selection

Global Aspects Diversity,

alternate work place,
global mobility.

Induction
Compensation
Reward and Welfare
Performance evaluation
Counseling

Emerging Ethics,

Training & Devp

governance , social

IR

responsibility,

Exit

workplace relations.

Work for the day and prior to next session

Submit written case analysis as per the

guideline given by e-mail to

hrmtjames@tapmi.edu.in by 05 Jan 8:00
p.m.
Be prepared to discuss in the next

session
Three students will be nominated at

random to evaluate class participation

enable me to vet.

Thank you