HRM in Competitive Business Environment

Ramakrishna Kongalla,
Assistant Professor
Indian Institute of Tourism & Travel Management
(An Organization of Ministry of Tourism, Govt. of India)
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HR Roles in building a competitive organization
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Management of
strategic human
resource

Management of
transformation and
change
Management of firm
infrastructure

Management of
employee contribution
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HRM Professional Skills

change agent
Negotiations
Communications
Overcoming resistance
to change
Data-base
Decision- making
Strategic partner
Legal compliance
Contract
Admin. HRM &
HR info. systems
Administrative
expert
Counseling
Developing Teams
Employee
advocate
Competitive challenges
Increased Value Placed on Knowledge

Skill Requirement

Changes in the Employment Relationship
The psychological contract changed: From
relational to transactional

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The global challenge
1. Development of Global Markets:
people were the greatest asset and are the key to success

2.Competitiveness in Global markets through HRM
practices:
must understand the culture differences and invest in human
resources

3. Preparing Employees for International Assignments:
eg - Boeing
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Dimensions of HRM
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competitiveness
Managing
HR
environment
Acquiring
& Preparing
HR
Assessment
& development
Of HR
Compensating
HR
Roles
Strategic partner:
Aligning HRM strategies to business strategies is
important to help the company execute its business
strategy.

Administrative expert:
Designing and delivering efficient and effective HRM
systems, processes, and practices. Such as systems
for selections, training, developing, appraising and
rewarding employees.

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Employee Advocate:
Entails managing the commitment and contributions
of employees. No matter how skilled an employee is,
if he is angry or alineated,he will not contribute his
efforts to the firmssuccess,nor will he stay with the
firm for long.


Change agents:
HRM must help in transforming organizations to
meet the new competitive conditions. You need to
change and develop a capacity for change

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Competitive challenges
Increased Value Placed on Knowledge:
75% of the value in any company is, intangible (intellectual capital)
which refers to creativity, productivity, and service provided by
employees.
Effective management of people is key to boosting the value of
intellectual capital.

Skill Requirement:
The emphasize is on knowledge workers and service work, skills
requirements have changed.
The demand for cognitive skills, mathematical and verbal reasoning
ability- and interpersonal skills related to being able to work in
teams or to interact with customers in a service economy.

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Changes in the Employment Relationship:
The psychological contract changed: From relational to
transactional

Meaning : employees aren't expecting job security, they
want employability-that is, they want their company to
provide training and job experiences to help ensure that
employees can find other employment opportunities.

(The challenge for HR is how to build a committed,
productive workforce in turbulent economic conditions)

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Managing the HR environment


Create a positive environment for employees by:
Linking practices to company objectives.
Ensuring that HR practices comply with state and local
laws.
Designing work that motivates and satisfies the
employees as well as maximizes customer services and
productivity.

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Acquiring & preparing HR

Customer needs determine the number and type of
employees needed, Manager must be able to
determine that as well as identifying current or
potential employees who can successfully deliver
products and services.
Identifying HR requirements-planning-recruiting and
selecting
Training employees to have the skills needed to
perform their jobs.

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Assessment & development of HR

Create a work environment that supports employees
work and non work activities.
Measuring employees performance.
Prepare employees for future work roles and
identifying employees work interests, goals, values
and other career issues.


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Compensating HR
Creating a pay system
Rewarding employee contributions
Providing employees with benefits.

` The positive influence of new work designs, new
technology can be damaged if employees are
not satisfied with the level of pay and benefits
or believe that benefits are unfairly distributed.

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Thank You!!!
Ramakrishna Kongalla
e-mail: artist.ramakrishna@gmail.com
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