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Human Resource Management

HUMAN RESOURCE MANAGEMENT DEFINED

As stated in “Strategic Human resource management, a guide to Action” by Michael Armstrong “Human resource management is defined as a strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives”.

John Storey (1989) believes that HRM can be regarded as a ‘set of interrelated policies with an ideological and philosophical underpinning’. He suggests four aspects that constitute the meaningful version of HRM:

1 a particular constellation of beliefs and assumptions;

2 a strategic thrust informing decisions about people management;

3 the central involvement of line managers;

4 reliance upon a set of ‘levers’ to shape the employment relationship.

(Michael Armstrong, page 3, 4, Strategic Human resource Management, A guide to action, 3^rd Edition)

1.       STRATEGIC HRM DEFINED as per Michael Armstrong

Strategic HRM defines the organization’s intentions and plans on how its business goals should be achieved through people. It is based on three propositions: first, that human capital is a major source of competitive advantage; second, that it is people who implement the strategic plan; and, third, that a systematic approach should be adapted to defining where the

Organization wants to go and how it should get there.

(Ref – Strategic Human resource management A guide to Action Page 30)

1.1   Importance of strategic human resource management in an organization: - Each organization has the specific goals for which SHRM do focus on long term strategies and make the resourceful plans to achieve the business goals for the organization.

Below are the main strategies of the HRM to support the business.

Employee resourcing

Employee development

Employee relations

Employee reward

1.2   Importance of strategic human resource management in CTL software:-

Here HR department have been given the responsibility to recruit and select the 20 technical engineers on the base of the advertisement in the newspaper by the help of line managers. However through this part CTL is also planning to achieve the 10% revenue generation in coming year so for the same SHRM department needs to focus on short term and long term prospective and work accordingly.

Below mentioned is the combination of long term and short term prospective goals.

Recruitment: It is very important for HR department to look after for demand of the technical engineers.

Job analysis and Job description: HR department has to make the job descriptions and job analysis for the recruitment and selection process. This predefined process would help in choosing right candidate at right place. HRM department needs to change the 5 years older process for the job analysis as they have to continuously update the new changes according to modernization and innovation.

Retention: HR department has to see the over all retentions ratio in past six months. HRM department has to create the strategy and evaluate the issues of candidates who are leaving in to six months and has to find out the root cause for the same.

HRM rules and policies: HR department need to focus on human capital as well to measure the overall performance and disciplinary process.

Cost Control: It is also the important duty of HRM to control the over all cost for the recruitment process as per the current condition of CTL software.

Employee relations and rewards: HRM department has to focus on one on one session and exist interviews before any employee leave the CTL organization.Moreover HRM department has to find out the motivation activities through which they can hold the right candidate on place.

By implement these long term & short term prospective SHRM can sense its importance in CTL software.

2.       Purpose of SHRM activities in an organization: - The overall purpose of human resource management is to ensure that the organization is able to achieve success through people. As Ulrich and Lake (1990) remark: ‘HRM systems can be the source of organizational capabilities that allow firms to learn and capitalize on new opportunities. Specifically, HRM is concerned with achieving objectives in the areas summarized below.

-          Organizational effectiveness: HRM strategies aim to support programmes for improving organizational effectiveness by developing policies in such areas as knowledge management, talent management and generally creating ‘a great place to work’. This is the ‘big idea’ as described by Purcell et al (2003), which consists of a ‘clear vision and a set of integrated values’. More specifically, HR strategies can be concerned with the development of continuous improvement and customer relations policies.

-          Human Capital: Human capital has been defined by Bontis et al (1999) as follows: ‘Human capital represents the human factor in the organization; the combined intelligence, skills and expertise that gives the organization its distinctive character. Human capital can be regarded as the prime asset of an organization, and businesses need to invest in that asset to ensure their survival and growth. HRM aims to ensure that the organization obtains and retains the skilled, committed and well-motivated workforce it needs.

-          Knowledge Management: Knowledge management is ‘any process or practice of creating, acquiring, capturing, sharing and using knowledge, wherever it resides, to enhance learning and performance in organizations’ (Scarborough et al 1999)

-          Reward Management: HRM aims to enhance motivation, job engagement and commitment by introducing policies and processes that ensure that people are valued and rewarded for what they do and achieve, and for the levels of skill and

competence they reach.

-          Employee Relations: The aim is to create a climate in which productive and  harmonious relationships can be maintained through partnerships between management and employees and their trade unions.

-          Meet diverse needs: HRM aims to develop and implement policies that balance and adapt to the needs of its stakeholders and provide for the management of a diverse

workforce, taking into account individual and group differences in employment, personal needs, work style and aspirations, and the provision of equal opportunities for all.

-          Rhetoric and reality: Managements may start with good intentions to do some or all of these things, but the realization of them – ‘theory in use’ – is often verydifficult.

3.       The SHRM practices that contribute on performance of organization

SHRM practice area	How it impacts/contributes
Attracting, developing and retaining high-quality people	Matches people to the strategic and operational needs of the organization. Provides for the acquisition, development and retention of talented employees who can deliver superior performance, productivity, flexibility, innovation and high levels of personal customer service and who ‘fit’ the culture and the strategic requirements of the organization.
Talent management	Wins ‘war for talent’ by ensuring that the talented and well-motivated people required by the organization to meet present and future needs are available.
Working environment – core values, leadership, work–life balance, managing diversity, secure employment	Develops ‘the big idea’ (Purcell et al, 2003), ie a clear vision and a set of integrated values. Makes the organization ‘a great place to work’.
Job and work design	Provides individuals with stimulating and interesting work and gives them the autonomy and flexibility to perform their jobs well. Enhances job satisfaction and flexibility, which encourages high performance and productivity.
Learning and development	Enlarges the skill base and develops the levels of competence required in the workforce. Encourages discretionary learning, which happens when individuals actively seek to acquire the knowledge and skills that promote the organization’s objectives. Develops a climate of learning – a growth medium in which self-managed learning as well as coaching, mentoring and training flourish.
Managing knowledge and intellectual capital	Focuses on both organizational and individual learning and on providing learning opportunities and opportunities to share knowledge in a systematic way. Ensures that vital stocks of knowledge are retained and deals with improving the flow of knowledge, information and learning within the organization.
Increasing motivation, commitment and role engagement	Encourages people to identify themselves with and act upon the core values of the organization and willingly to contribute to the achievement of organizational goals. Develops a climate of cooperation and trust, clarifying the psychological contract.
High-performance management	Develops a performance culture that encourages high performance in such areas as productivity, quality, levels of customer service, growth, profits and, ultimately, the delivery of increased shareholder value. Empowers employees to exhibit the discretionary behaviours most closely associated with higher business performance such as risk taking, innovation, knowledge sharing and establishing trust between managers and subordinates.
Reward management	Develops motivation, commitment, job engagement and discretionary behaviour by valuing and rewarding people in accordance with their contribution.

4.       Evaluating contribution of SHRM to the achievement of CTL software’s objectives: - SHRM can contribute through implementing abovementioned practices in CTL in accordance to below mentioned points.

a.       Firstly SHRM need to change the 5 years older system of job analysis and introduce the new strategy as per the current scenario in the market.

b.      After the new strategy they have to create job description for the technical engineers by the coordination of line managers.

c.       Once job description gets done then they have to utilize one person who can focus on job analysis and by coordinating with line managers and marketing department make the plan for attracting the candidates.

d.      Simultaneously they have to also take the follow up with the shortlisted candidate and make the strategy for those candidates who have left the job in six months to evaluate the correct reason.

5.       Conclusion

SHRM shows its importance, purpose and contribution in achieving the organizations objectives. The human resource planning leads the organization to achieve the vision and mission. The policies and procedures implemented through human resource management create a culture within an organization. The organizations achievement justifies the effectiveness of the SHRM as well as helps in improving the same. Through the case study of CTL software we conclude with a review of reservations about HRM and the relationship between HRM and personnel management.

                                                                                                                                                                                                                                                                                                                                                                                                                               

6.       References

Strategic human resource management: a guide to action / MichaelArmstrong.-- 3rd ed. (2006)

Strategic Human resource Management, Second edition, 2007, Blackwell Publishing, (Randall S. Schuler and Susan E. Jackson)

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What are your views?

Developing corporate culture

Table of Contents

                                                                                                                Page No.

1.       Culture                                                                                                                                 1

2.       Organization culture

3.       Types of Organization Culture

4.       Objectives of Nokia                                                                                                        2

5.       The Paradigm                   

6.       The Organizational culture and national culture                                                               3

7.       Difference between Organizational and national culture

8.       Corporate Culture profile of Nokia                                                                          4

9.       Characteristic of Nokia                                                                                                  5

10.   Conclusion                                                                                                                         6

11.   Reference                                                                                                                           7
                               

1.       Culture

According to the Webster's dictionary, culture is the ideas, customs, skills, arts, etc. of a given people in a given period.

“Culture is a term that is used regularly in workplace discussions. It is taken for granted that we understand what it means. In their noted publication In Search of Excellence, Peters and

Waterman (1982) drew a lot of attention to the importance of culture to achieving high levels of

organisational effectiveness. This spawned many subsequent publications on how to manage

organisational culture.” (eg. Deal & Kennedy 1982; Ott 1989; Bate 1994)

(Ref:http://www.usq.edu.au/extrafiles/business/journals/HRMJournal/AJMOBarticles/Org%20culture%20paper%20LB1.pdf)

2.       Organization Culture

“Organizational culture has been characterized by many authors as something to do with people and the unique quality and style of the organization (Kilman et al; 1985), and the way things are done in the organizations (Deal & Kennedy, 1982). Sometimes, organization culture is also known as “corporate culture”. “Corporate Culture” is used to denote the more “commercialized” meaning of organizational culture (Deal & Kennedy, 1982). This study adopts the definition of Hofstede (1980). According to Hofstede (1980), organizational culture refers to the collective programming of the mind that distinguishes the members of one organization from another.This includes shared beliefs, values and practice that distinguish one organization from another.The beginning of formal writing in an organizational culture started with Petigrew (1979).He introduced the anthropologist concepts like “symbolism, myths,” and “rituals” that could be used in organizational analysis.”

(Ref: http://www.ijbssnet.com/journals/Vol._1_No._3_December_2010/4.pdf)

3.       Models of organization culture

In the year 1982 Deal and Kennedy introduced the types of the cultures which are mentioned below. All these culture types are seen by feedback and risk frequencies.

a.       TOUGH GUY MACHO CULTURE: - Where big risks are involved and individual performance are more focused over the team work like sports and advertising.

b.      WORK HARD PLAY HARD CULTURE:- Least risk involved and quick feedback where people can focus on quantity of work like sales and restaurants.

c.       BET YOUR COMPANY CULTURE

d.      PROCESS STRUCTURE

Similarly Robert Quinn and Kim Cameron gave the below types of cultures

a.       Clan culture

b.      Adhocracy culture

c.       Market culture

d.      Hierarchy culture

If we focused on case study, NOKIA was following the Process culture and Hierarchy culture or Bureaucratic culture.

4.       Objectives of NOKIA

Nokia’s main headquarter was situated in Finland and they were mainly focused to introduce the new technology like touch screen handsets with a large display which could lead them to get the advantages form growing market of Smartphone. Although Nokia wanted to take the more advantages from phone market where they can introduce the touch screens, software applications and 3-D interfaces. So Nokia was more seeing for its objectives to serve the customer demands with the use of new technology.

As per the case study Nokia could achieve the objectives by adopting the proper organizational model.

5.       THE PARADIGM

The PARADIGM is the day to day actions in an organization and the routinethings which are being around the organization

This model consists of 6 elements which are given below.

a.       Symbols – Nokia was already power full in other products where it was using its image and reputation to attract the customers, however the logo of the company was so well known through which Nokia was gaining the trust from the market for it’s every products. Moreover Nokia could use the specific jargons for its new technology towards touch screen phones, 3- d interfaces or to software applications.

b.      Power structure–In this specific element Nokia could evaluate the strengths of their employees and power of the team work which could give lot of new ideas to the success of the new products.

c.       Organization structure- Organization structure can be defined in three ways which are Formal, Informal and Levels of Hierarchy. Here where the Nokia was following a typical structure with hierarchy, it was strongly needed to change the structure so that new innovation could be happened in successful way.

d.      Control systems- Nokia was intended to introduce the new smart phone where it was very necessary to focus on the objectives, measure it and if they get some more new responses the same could be warded to give the motivation to the employees, also to give more focus on its goal.

e.      Rituals and Routines- This element giving more focusing to the organization as it Is very important to see the relation of each employees, coordination with each departments and make a such rutin to enjoy the ambience of the company.

f.        Stories- The best ways to boost up the employees of Nokia to tell the success stories and give the importance to the important event and individual’s characteristics by celebrating the event of the organization.

Nokia was following the bureaucratic culture in the organization through which the above points were needed to be implemented.

6.       The Organizational culture and National culture

This is the assumption that organizational culture is the subset of national culture. The organizational culture usually considered as micro context and national culture considered as the macro context. The only difference between both the culture is national culture consists different backgrounds of people where their values are deeply rooted; however organizational culture consists of the culture of that particular organization which is well practiced amongst all the employees.

(Ref:http://www.businessmate.org)

7.       Difference between Organizational and National culture on case study

As per the case study we know that most of the products for smartphones were getting failed from Nokia compare to I phone and the main reason the Nokia’s bureaucratic culture style but still in 2002 Nokia sold 70 million smartphones all over the world where apple sold only 33 million smartphones. Nokia has established its pride internationally as the most other products took business in India and china and in other nations.

In those culture is very different then one and other, Nokia wanted to make changes in its system so also found that in 1865 they  did business of 1.6 percent of domestic products with total work people of 129,000 and almost 10 percent were exported in other countries. Nokia wanted to change the its picture infront of market so in last 5 years Nokia recruited international staff to merge the value on national culture in its main head office but included Finnish board member to remain it organizational culture.

This was the biggest change in Nokia’s value where many people got employed international and national level and merge in to organization and worked together to maintain the organizational culture. Also they took benefit of those changes where they could use the ideas of each employees to make the successful products then they made ever.

8.       Corporate culture profile of Nokia

Nokia was following the bureaucratic culture where there were several internal grudges happening within the managers.  Also the feedback of the product result was not that accurate and sure so occurred main reason of technology failures.

9.       Impact of Nokia’s organization culture to achieve the objectives

a.       Advantages

                                                               i.      Mission and vision statement

                                                             ii.      Flat reporting structure (Flat network organization)

                                                            iii.      Openness towards people

b.      Disadvantages

                                                               i.      Weak penetration in US market The US market made up only 4.2% of Nokia’s2009 revenues equaling $2.4 billion compared to its main US competitor Motorola whichgarnered $11.8 billion and RIM bringing in $8.6 billion (Datamonitor: Nokia, 2010).

                                                             ii.      Age old Operating system when put up against Andriod, Blackberry and I Phone

                                                            iii.      Bureaucratic organization

                                                           iv.      Only concentrating on Mobiles

-          To compete with I phone Nokia introduced a model which was being trashed as management was worried about that it would not be accepted by the customers. This proves that management was not ready to take the chances.

-          Due to certain bureaucratic decisions Nokia is not able to gain dominance in smart phones segment

-          Also Nokia had been a world leader in Mobile phones due to which it became complacent and did not paid attention to consumer desires. The management did not concentrate on changing the designs for touch screens, software applications and 3-D interfaces

-          Company rejected early design of Nokia online application store, which was being adapted three years later which depicts the poor decision making

-          Most the products could not sold and did less profit due to improper technology which was not suitable to the customer’s demands. Moreover they also could not stand up infront of I-phone and apple as the advanced technology took place before Nokia’s implementation.

-          Nokia had been overcautious in changing or upgrading the Symbian technology due to the age old philosophy on which they got success

10.   Conclusion

Nokia has been an industry leader for many years however the market hasbecome dynamic and organization of Nokia has to make changes accordingly. To do so Nokia is partnering with Microsoft and bring revolution in the operating system.

11.   Reference

http://www.usq.edu.au/extrafiles/business/journals/HRMJournal/AJMOBarticles/Org%20culture%20paper%20LB1.pdf

                http://www.businessmate.org

                http://www.ijbssnet.com/journals/Vol._1_No._3_December_2010/4.pdf