Assignment on

Human Resource
Management
Submitted to- Submitted by-
Prof. SILKY SHARMA NITIN CHALANA
Human Resource Management
Amity Business School M.B.A. (2nd Sem)
 Changing Environment of Human Resource
Management (HRM)
The five factors involved in the changing environment of HRM are as follows:
1. Work force Diversity : Diversity has been defined as any attribute that humans
are likely to use to tell themselves, that person is different from me and, thus,
includes such factors as race, sex, age, values, and cultural norms’. The Indian
work force is characterized by such diversity that is deepening and spreading
day by day.
2. Economic and Technological Change : Along with time, several economic and
technological changes have occurred that have altered employment and
occupational pattern. In India too, there is a perceptible shift in occupational
structure from agriculture to industry to services.
3. Globalization : The New Economic Policy, 1991 has, among other things,
globalised the Indian economy. There has been a growing tendency among
business firms to extend their sales or manufacturing to new markets aboard.
The rate of globalization in the past few years in India has been nothing short of
phenomenal.
4. Organizational Restructuring Organizational restructuring is used to make the
organization competitive. From this point of view, mergers and acquisitions of
firms have become common forms of restructuring to ensure organizational
competitiveness. The mega-mergers in the banking, telecommunications and
petroleum companies have been very visible in our country. Downsizing is yet
another form of organizational restructuring.
5. Changing Nature of Work : Along with changes in technology and globalization,
the nature of jobs and work has also changed. For example, technological
changes like introduction of fax machines, information technology, and personal
computers have allowed companies to relocate operations to locations with lower
wages. There is also a trend toward increased use of temporary or part-time
workers in organizations.
As Fortune magazine has rightly said:
“Brain power ….has never before been so important for business. Every company
depends increasingly on knowledge-patents, processes, management skills,
technologies, information about customers and suppliers, and old-fashioned
experience. Added together, this knowledge is intellectual capital”.
 Strategic Human Resource Management
Strategic human resource management is the connection between a company’s
human resources and its strategies, objectives, and goals. The aim of strategic human
resource management is to:
 Advance flexibility, innovation, and competitive advantage.
 Develop a fit for purpose organizational culture.
 Improve business performance.
In order for strategic human resource management to be effective, human resources
(HR) must play a vital role as a strategic partner when company policies are created
and implemented. Strategic HR can be demonstrated throughout different activities,
such as hiring, training, and rewarding employees.
Strategic HR involves looking at ways that human resources can make a direct impact
on a company’s growth. HR personnel need to adopt a strategic approach to
developing and retaining employees to meet the needs of the company’s long-term
plans.
Importance of strategic human resource management
Companies are more likely to be successful when all teams are working towards the
same objectives. Strategic HR carries out analysis of employees and determines the
actions required to increase their value to the company. Strategic human resource
management also uses the results of this analysis to develop HR techniques to
address employee weaknesses.

The following are benefits of strategic human resource management:

 Increased job satisfaction.

 Better work culture.
 Improved rates of customer satisfaction.
 Efficient resource management.
 A proactive approach to managing employees.
 Boost productivity.
 steps in strategic human resource
management
1. Develop a thorough understanding of your company’s objectives
Since the success of strategic HR is dependent on how well it links to your company’s
goals, you need to have a thorough understanding of your aims, objectives, and mission.
You’ll need to be able to articulate both your short and long-term plans for growth to
the relevant HR personnel. Ensuring clear communication of your company’s goals will
make it easier for HR personnel to formulate an effective resource management
strategy.
2. Evaluate your HR capability
Evaluating your current HR capabilities will enable you to understand the employees
you have and how they contribute to fulfilling your goals and objectives. Additionally,
you should also undertake a skills inventory for every employee. Skills inventories help
you to discover which employees are experts in particular areas. It also helps you to
identify the employees who have an interest in being trained in a particular aspect of
your company. A great time to asses skills is during a performance review. However, the
traditional performance review is dying. Check out our guide on how to conduct an
efficient and results driven performance review while obtaining the skills inventory you
need from your employees!
3. Analyze your current HR capacity in light of your goals
An assessment of your HR capacity will help you to recognize barriers and implement a
plan of action to capitalize on opportunities and effectively deal with threats. Strategic
HR personnel will analyze the number of employees as well as their skills and will work
with senior leadership to identify ways to better equip employees to serve the needs of
your company.
4. Estimate your company’s future HR requirements
After an analysis of your company’s employees and skills has been done in relation to your
objectives, it’s time to forecast your HR needs. The forecast should be done in relation to:
 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.
Forecasting your company’s future HR requirements also determines the following:
 New jobs and roles required to secure the future of the company.
 Skills required by current employees to undertake the responsibilities of new jobs and
roles.
 Whether your employees’ expertise are being sufficiently utilized.
 Whether current HR personnel and practices can accommodate the company’s growth.
5. Determine the tools required for employees to complete the job
HR personnel need to liaise with the appropriate departments to find out how the
tools used by employees impact on their ability to perform their roles. For example,
an audit of hardware and software can be undertaken jointly with the I.T department
to identify gaps in tools that will facilitate a more organized workforce. For example,
where a company employs hourly staff, it’s crucial to utilize workforce management
software. This software manages important HR functions such as scheduling, holiday
entitlement, and sick leave.
6. Implement the human resource management strategy
After the analysis and forecast of your company’s HR requirements have been
completed, it’s time to start the process of expanding your workforce and developing
current workers to equip your company for future growth.
7. Evaluation and corrective action
HR personnel should decide on a timeline to carry out a strategic HR management
review. This review will track the progress made and also identify areas for
improvement. The review should be measured against whether changes are helping
your company to achieve their goals. Corrective action must be taken if strategic
human resource management is failing to meet its objectives.
 Human Resource Development
Human resources development refers to an organization’s focus on improving the
knowledge, ability, skills, and other talents of their employees. It is the integrated use
of training, organization, and career development efforts to improve individual, group,
and organizational effectiveness.
All activities of human resource management are
aimed towards development of human resources.
There are many ways of human resource development
which include training and development of employees
And executives, career planning and development and
conducting workshops for that, development of
technology, job enrichment, various job experiences,
team building, leadership development, building up
of better subordinate- supervisor relationship.
Evolution of Human Resource Management
In early stages, employees working in factories were treated harsh condition with
minimum wages or without wages in poor working condition. The government
interferes on basic protection for labors/employees in factories by introducing
statutory regulations.

It results in evolution of Human Resource department where factory owners agreed and
the concern person looks into employee welfare and [Link] Resource
Management, in other words organization’s manpower or workforce management or
personnel management. Before industrial revolution, the entire population was
influenced on agriculture economy with minimum production level. Since production
level is less compared to post revolution, manpower was minimum and communication
among them also inadequate.
During industrial revolution, there was a change in economy, people acquires
awareness on modernization. It determines a new way for industrial setup, where it
concentrates on employee wages and welfare.

In this period, companies adopted new concept known as "merger and acquisition" for
maximizing workforce and uses automated web-based HR systems.
As soon as the industry grows, an important incident occurred in industrial
revolution i.e development in Labor Union. In order to manage labors and their
issues in workplace and wages related, organization forms a separate function
named Personnel Management department.

During 1980's, new theories and strategies are implemented for change
management, motivation and team building. Personnel Management department
major responsibility is to resolve politics and diplomacy. So, this is the place where
an industrial relation department raised.

Job enrichment concepts would be implemented in organization which is abundant

skilled labor forces. Frederick W. Taylor formulated principles of scientific
management which leads to evolution of scientific human resource management. It
explains about,

 Training for workers

 Maintaining wage uniformity
 Focus on better productivity
Hawthorne studies states about Hawthrone experiment, results on increase in
worker's productivity leads to worker's efficiency through greater work satisfaction.
Based on organization scope, Human resource role has been changed periodically as
mentioned below,

 Welfare officer - 1890 to 1913

 Labor Manager - 1914 to 1939
 Personnel Management - 1945 to 1979
 Human Resource Management - 1980 to 1990's
 HR business partner and Human capital - Till now

In present situation, HR department focus on operation of personnel administration

and concentrates on hiring right employees, training and developing workforce and
performance management.
 Integrating HR Strategy with Business
Strategy
Today, human resource departments have a more precise, strategic role in
companies, and an HR strategy affects the bottom line. Let us look into HR as part of
a complete business strategy.
HR Strategy as Business Strategy
In real world, no margin in the sand is drawn between human resources strategy and
business strategy. A successful business owner understands the strong connection
between the two. Progressing human capital is essential to the longevity and success
of a business.
Human resources strategy today includes executive leadership teams conferring with
human resources experts to improvise complementary goals for human resources and
the complete business.
HR Strategy and Business Productivity
The recruitment and selection process in human resources department is paramount
to creating a productive workforce. Maintaining a workforce where employees enjoy
high levels of job satisfaction and job security converts into a workforce that assists
in achieving business goals.
 HRD Strategies
HRD Strategies are a plan that defines how the human resources would be utilized
through the use of an integrated array of training, organizational development and
career development efforts to achieve individual, organizational objectives.
Major HRD Strategies
 Communications Strategy: In today’s changing scenario, it is essential to educate
and train employees about the change
 Accountability And Ownership Strategy: Employee’s accountability and ownership
leads to higher productivity and customer acceleration.
 Quality Strategy: Quality needs to be fostered in the employees throughtraining
and development.
 Cost Reduction Strategy: Every employee’s contribution in savings is crucial as
small contributions from each employee can be pooled by organizations to save
substantial savings at the end of a given period and enhance its competitive
strategy.
 Intrapreneurship Strategy: Every employee needs to be an independent
entrepreneur, who can generate ideas and bring them to reality by using the
existing resourcesand support of the org to create innovative and creative
products andservices.
 Culture Building strategy: Org’s valuing its employees have a sustainable
competitive edge over competitors because employees are highly charged,
motivated and commitment to the org.
 Systematic Training Strategy: The planning and organization of formal on-job
training and off-job training leads to improving vital employee characteristics,
build and sustain appropriate work culture and brings in more professionalism in
action.
 Learning Strategy: Continuous development and learning environments promote
self development of employees, of self and by self.
Performance Management

Performance Management is Futuristic activity where future performance is

planned and actions are devised to achieve it. For example, the organizational,
divisional, team level and individual performance objectives should be made
crystal clear so that employees can clearly visualize what they have to achieve.
Performance Appraisal is Historic activity where what ever happened in the past
is evaluated, rated and remarked. But you cannot change the performance once
it is already happened.
Hence focus on Performance Management rather than Appraisals and try your
best to extract performance objectives of the organization. This should be
primary goal of HR and if you do it, it’s a great achievement.