SHRM Introduction

Strategic Human
Resource Management
Dr. Saket Jeswani
SOM MBA, Sem - 3 OPJU, Raigarh

[DR. SAKET JESWANI]
Introduction
to Unit - I
SHRM
MBA Sem - 3 [2017]
Dr.Saket
Dr. Saket Jeswani,
Jeswani,Associate Professor,
Associate SOM, OPJUSOM, OPJU, Raigarh
Professor, Page 1
Unit - 1
HRM in Changing Environment
Dr. Saket Jeswani

Associate Professor,
SOM, OPJU
Introduction
1. Changes are occurring today that requires human

resource managers to play an increasingly central role in
managing companies.
2. HR managers are facing many challenges in present

business scenario like Globalization, workforce diversity,
technological advances, changes in political and legal
environment and change in information technology.
3. All these challenges increase the pressure on HR

managers to attract, retain and nurture talented employee.
Dr. Saket Jeswani, Associate Prof, SOM, OPJU 3
Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 2

Introduction
4. HR professional can’t ignore these challenges rather they ought

to be inline to design and execute innovative mechanisms of
developing skills and competencies of human resources to
prepare them to accept the emerging challenges.
5. In modern time, HRM is moving away from traditional

personnel, administration, and transactional roles, which are
increasingly outsourced.
6. HRM is now expected to add value to the strategic utilization of

employees and that employee programmes impact the
business in measurable ways, hence, the new role of HRM
involves strategic direction and HRM metrics and
measurements to demonstrate value.
HRM Challenges - Types

1. Organizations are open systems and are, therefore,
influenced by the environment (internal as well as external )
in which they operate.
2. HRM has to deal with all the challenges that organization

faces and these are at the following levels:
Environmental Organizational Individual

Challenges Challenges Challenges

Individual Challenges
• 1. Controlling Costs • 1. Productivity
Environmental Challenges
• 1. Work Force
Organizational Challenges
Diversity • 2. Improving • 2.Empowerment
• 2. Globalization Quality • 3. Ethics and
• 3. Legislation • 3. Creating Social
• 4. Technology Distinctive Responsibility
• 5. Evolving Work Capabilities • 4. Job Insecurity
and Family Roles • 4. Restructuring • 5. Matching
• 6. Skill Shortages People and
Organization

1. Globalization of Business
1) Outsourcing and increased competition
2) The threat of terrorism
2. Economic and Technological Changes

1) Occupational shifts from manufacturing and agriculture
to service industries and telecommunications.
2) Pressures of global competition causing firms to adapt
by lowering costs and increasing productivity.
3. Technological Shifts and the Internet

1) Growth of information technology.

4. Workforce Availability and Quality Concerns
1) Inadequate supply of workers with needed skills for
“knowledge jobs”
2) Education of workers in basic skills
5. Growth in Contingent Workforce

1) Increases in temporary workers, independent
contractors, leased employees, and part-timers
caused by:
a. Need for flexibility in staffing levels
b. Increased difficulty in firing regular employees.
c. Reduced legal liability from contract employees

6. Workforce Demographics and Diversity
1) Increasing Racial Diversity
2) More Women in the Workforce
1) Single-parent households
2) Dual-career couples
3) Domestic partners
4) Working mothers and family/childcare
3) Significantly Aging Workforce
1) Age discrimination

7. Organizational Cost Pressures and Restructuring
1) Mergers and Acquisitions
2) “Right-sizing”—eliminating of layers of
management, closing facilities, merging with other
organizations, and outplacing workers
a. Intended results are flatter organizations,
increases in productivity, quality, service and
lower costs.
b. Costs are “survivor mentality”, loss of employee
loyalty, and turnover of valuable employees.
3) HR managers must work toward ensuring cultural
compatibility in mergers.
HRM Transformation
1. Traditional role of the HR dept - personnel and

administration functions i.e. Transactional role
2. Modern HR role is transformational.
3. Successful organizations are becoming more adaptive,

resilient, quick to change direction and customer-centered.

HRM Transformation
Transformation of HR

HRM Transformation
Focus on
Building
Human
Capital
HRM
Transforma
tion
Development
Use of
of Global HR
Information
Strategies
Technology
(IHRM)
Changing Role of HRM

HR Managers should do the following things to ensure success:
• Use workforce skills and abilities in order to exploit

environmental opportunities and neutralize threats.
• Employ innovative reward plans.
• Indulge in continuous quality improvement.
• Utilize people with distinctive capabilities.
• Decentralize operations and rely on self-managed teams.
• Lay off workers in a smooth way.

Changing role of HRM
HR Managers today are focusing attention on the following
• a) Policies- HR policies based on trust, openness, equity and

consensus.
• b) Motivation- Create conditions in which people are willing to work with
zeal, initiative and enthusiasm; make people feel like winners.
• c) Relations- Fair treatment of people and prompt redress of grievances
would pave the way for healthy work-place relations.
• d) Change agent- Prepare workers to accept technological changes by
clarifying doubts.
• e) Quality Consciousness- Commitment to quality in all aspects of
personnel administration will ensure success.
Dave Ulrich Model of HR Roles
Strategic Change
Partner Champion
Employee Administrative
Advocate Expert

STRATEGIC FOCUS
OPERATIONAL FOCUS

STRATEGIC FOCUS
OPERATIONAL FOCUS

STRATEGIC FOCUS
OPERATIONAL FOCUS

STRATEGIC FOCUS
OPERATIONAL FOCUS

Changing Roles of HR Management
Note: Example percentages are based on various surveys.
Emerging HR Systems and Practices

1. Competency based HR Practices (CBHRP)
2. HR Shared Services (HRSS)
3. High Performance Work Systems (HPWS)
4. Learning Organization (LO)
5. Performance driven work culture
6. Virtual Team Building and Team Work
7. HR empowering systems and processes
8. People Capability Maturity Model (PCMM)
9. e-HR/HRIS
10. HR Score Card

Emerging HR Systems and Practices
11. Knowledge Management

12. Career Anchors and Career Development
13. Competency mapping
14. Assessment/Development Center
15. 360-degree feedback and appraisal
16. Appreciative Enquiry
17. HR Accounting
18. HRD Audit
“The future of HR – creating

value from the outside in”
HR outside in means HR must turn outside business trends and

stakeholders expectations into internal actions.
HR Running to Future Dr. Saket Jeswani, Associate Prof, SOM, OPJU 30

Faces of Human Resources
1. HR professionals try to be an analyst, business partner,
consultant, coach, leader, innovator, strategist, technologist,
and more, and all at once.
2. Sound HR leaders get involved in strategy, advise line

managers, and develop integrated practices that engage the
workforce and make the organization an attractive place to
work. For all that, they mostly focus inward.
3. This HR transformational change needs to leverage the

power of information flow, technology and external
stakeholders.
4. That means widening the perspective about identifying the

stakeholders so they encompass all pivotal external
participants – including customers, partners, investors,
suppliers and community members. These groups can be
the gateway to sustainable organizational success.
Faces of Human Resources

5. Strategies to accomplish this outreach include:
1) Invite partners into your training sessions;
2) co-create employee performance measures with clients and suppliers;
3) build your reputation as an employer and external leader;
4) manage the community’s overall perception of your firm;
5) involve customers in selecting new hires and rewarding current staff;
and
6) work with investors and shareholders on strategy development.
5. HR professionals should join leaders in operations, finance,

IT and other disciplines in learning the “outside” perspective.
HR managers must look beyond their organizations and
learn to understand the business, social, political, economic
and cultural developments that might affect their firm or
shape its opportunities.

Six Competencies for the Future of HR

1. Credible Activist: Follow your commitments; earn a
reputation for reliability and results. Become an
authority in your field and proactively contribute
evidence-based recommendations to solve problems
that affect the organization.
2. Operational Executor: Act as function integrator, so that each

element leverages and strengthens the others. For example, when
the need for new skills becomes apparent in the performance
management process, share that information with those
responsible for recruiting, learning and retention. Align HR’s efforts
with the business by interpreting corporate strategy and high
priorities through HR’s perspective.

3. Business Ally: Of the six competencies, HR
professionals rank worst in their technology
knowledge and skills, yet this competency affects
the business more than any other. Expand your
knowledge of IT beyond standard HR recruiting,
learning and performance-management Tools.
4. Organization Designer: Study your firm’s history and

foundational documents; talk with executives, employees,
customers, investors and other stakeholders to develop a clear
knowledge of your organization’s image and how it stands out
in its field.

5. Change Steward: Help your organization
tackle change rather than resist it.
6. Strategy Architect: In its new outside-in

leadership role, HR will shift and rebalance its
existing competencies and develop at least one
new capability: the Strategy Architect. This
means studying the external influences on your
field and your organization.


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Strategic Human

SOM MBA, Sem - 3 OPJU, Raigarh

MBA Sem - 3 [2017]

HRM in Changing Environment

Dr. Saket Jeswani

1. Changes are occurring today that requires human

2. HR managers are facing many challenges in present

3. All these challenges increase the pressure on HR

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 3

Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 2

4. HR professional can’t ignore these challenges rather they ought

5. In modern time, HRM is moving away from traditional

6. HRM is now expected to add value to the strategic utilization of

HRM Challenges - Types

2. HRM has to deal with all the challenges that organization

Environmental Organizational Individual

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 6

Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 3

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 7

HRM Challenges - Types

2. Economic and Technological Changes

3. Technological Shifts and the Internet

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 8

Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 4

5. Growth in Contingent Workforce

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 9

HRM Challenges - Types

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 10

Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 5

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 11

1. Traditional role of the HR dept - personnel and

2. Modern HR role is transformational.

3. Successful organizations are becoming more adaptive,

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 13

Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 6

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 14

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 15

Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 7

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 16

Changing Role of HRM

• Use workforce skills and abilities in order to exploit

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 18

Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 8

HR Managers today are focusing attention on the following

• a) Policies- HR policies based on trust, openness, equity and

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 19

Dave Ulrich Model of HR Roles

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 20

Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 9

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 21

Dave Ulrich Model of HR Roles

Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 10

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 23

Dave Ulrich Model of HR Roles

Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 11

Note: Example percentages are based on various surveys.

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 25

Emerging HR Systems and Practices

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 27

Dr. Saket Jeswani, Associate Professor, SOM, OPJU Page 12

11. Knowledge Management

Dr. Saket Jeswani, Associate Prof, SOM, OPJU 28

“The future of HR – creating

HR outside in means HR must turn outside business trends and