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, 3rd
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.
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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