Introduction to Human Resource Management

Human Resource Management is a function of management, concerned with hiring,

motivating and maintaining people in an organization.
HRM is the function performed in organizations that facilitates the most effective use of
people to achieve organizational and individual goals.

Scope of Human Resource Management

1. Procurement - The scope of Human Resource Management (HRM) as procurement
refers to the process of acquiring, hiring, and selecting human resources for an
organization's workforce. It involves identifying the organization's human resource
needs, attracting suitable candidates, and ensuring the right people are hired for the
right positions. This aspect of HRM is often referred to as "Human Resource
Procurement" or "Talent Acquisition."
2. Remuneration - The scope of Human Resource Management (HRM) as remuneration
pertains to the management of employee compensation, rewards, and benefits
within an organization. It involves designing, implementing, and administering a fair
and competitive compensation structure that aligns with the organization's goals,
market trends, and employee expectations. This aspect of HRM is commonly referred
to as "Compensation and Benefits Management."
3. Motivation - Motivation is a critical aspect within the scope of Human Resource
Management (HRM). It involves understanding and influencing employees'
behaviours, attitudes, and efforts to achieve the organization's goals. HR
professionals play a significant role in creating an environment that fosters
motivation and engagement among employees. The scope of HRM with regard to
motivation includes various strategies and activities aimed at enhancing employee
satisfaction, commitment, and overall performance.
4. Maintenance - Maintenance is an important aspect within the scope of Human
Resource Management (HRM). It refers to the activities and strategies aimed at
maintaining a productive, healthy, and harmonious work environment for employees.
The maintenance function of HRM ensures that employees' needs are met,
workplace issues are addressed, and the organization remains compliant with
relevant laws and regulations.
5. Industrial relations - Industrial relations is a significant aspect within the scope of
Human Resource Management (HRM) that involves managing relationships between
employers, employees, and labor unions (if applicable). It encompasses a wide range
of activities and strategies aimed at fostering positive interactions, resolving conflicts,
and maintaining a harmonious and productive work environment.
6. Prospects - The prospects within the scope of Human Resource Management (HRM)
refer to the various opportunities, potential growth areas, and evolving trends that
HR professionals need to consider and adapt to in order to effectively manage an
organization's human resources. These prospects are crucial for HR professionals to
stay relevant, strategic, and responsive in a rapidly changing business environment.
Difference between Human Resource Management and Personnel
Management
1. Focus:
HRM (Human Resource Management): HRM is a broader concept that encompasses all
aspects of managing the organization's human resources, from recruitment and selection
to training, compensation, benefits, employee relations, and more. It is concerned with
creating and maintaining a productive and motivated workforce.
PM (Performance Management): PM specifically centers on managing and improving
employee performance. It involves setting performance goals, providing feedback,
measuring achievements, and enhancing individual and team performance to align with
organizational objectives.
2. Scope:
HRM: HRM covers the entire employee lifecycle, including attracting, developing, and
retaining employees. It involves various functions such as recruitment, training,
compensation, benefits, employee relations, and compliance with labour laws.
PM: PM is a subset of HRM that focuses on evaluating and enhancing employee
performance. It involves activities like setting performance expectations, monitoring
progress, conducting performance appraisals, and implementing strategies for
improvement.
3. Objective:
HRM: The main objective of HRM is to create a motivated and capable workforce that
contributes to the organization's overall success. It focuses on aligning human resources
with the organization's strategic goals.
PM: The primary objective of PM is to improve and optimize employee performance. It
aims to enhance individual and collective productivity by providing feedback, addressing
performance gaps, and fostering a culture of continuous improvement.
4. Timeframe:
HRM: HRM encompasses both short-term and long-term strategies for managing human
resources. It involves activities that have an impact on the organization's workforce over
an extended period.
PM: PM is often more immediate and focuses on setting and achieving performance
goals within a specific time frame, such as quarterly or annually.
5. Activities:
HRM: Activities under HRM include workforce planning, recruitment, onboarding,
training and development, compensation and benefits administration, employee
relations, and legal compliance.
PM: Activities under PM include goal-setting, regular performance feedback,
performance appraisals, identifying strengths and areas for improvement, coaching, and
performance improvement plans.
6. Outcome:
HRM: The outcome of effective HRM is a well-structured and engaged workforce that
supports the organization's goals and mission.
PM: The outcome of effective PM is improved employee performance, increased
productivity, alignment of individual efforts with organizational objectives, and overall
organizational success.

Managerial Functions of Human Resource Management

1. Planning: HR planning involves forecasting the organization's future workforce
needs and determining the number, skills, and types of employees required to
achieve its goals. This function ensures that the right talent is available at the
right time and in the right positions.
2. Organizing: Organizing in HRM involves designing the structure of the HR
department and allocating responsibilities among HR professionals. It also
includes creating job descriptions, defining roles and responsibilities, and
establishing reporting relationships.
3. Staffing: Staffing focuses on recruiting, selecting, and hiring employees who fit
the organization's requirements and culture. It involves attracting suitable
candidates, conducting interviews, and making hiring decisions.
4. Directing (Leading): Leading in HRM involves motivating, guiding, and managing
employees to achieve their full potential. HR managers provide leadership,
communicate expectations, and support employees in their roles.
5. Controlling: Controlling in HRM encompasses monitoring employee performance,
ensuring compliance with policies and procedures, and taking corrective actions
when necessary. This function helps maintain consistency and effectiveness
within the workforce
Operational Functions of Human Resource Management

Challenges faced by Human Resource Management

Human Resource Management (HRM) faces a variety of challenges in today's complex
and rapidly changing business environment. These challenges impact how HR
professionals attract, develop, motivate, and retain employees, as well as how they
contribute to the organization's overall success. Some of the key challenges of HRM
include:
1. Talent Acquisition and Recruitment:
a. Finding and attracting skilled and qualified candidates in a competitive job
market.
b. Identifying candidates who are a cultural fit for the organization.
c. Addressing shortages of candidates with specialized skills.
2. Workforce Diversity and Inclusion:
a. Creating and maintaining an inclusive workplace that values diversity and
ensures equal opportunities for all employees.
b. Managing potential biases and ensuring fair treatment and representation of
diverse groups.
3. Employee Engagement and Retention:
a. Keeping employees motivated and engaged to prevent turnover.
b. Balancing the expectations and needs of different generations in the
workforce.
c. Identifying and addressing factors that contribute to employee
disengagement.
4. Skill Development and Training:
a. Designing effective training and development programs to keep employees'
skills relevant and up-to-date.
b. Addressing the rapid pace of technological change and its impact on required
skills.
5. Performance Management:
a. Creating fair and effective performance evaluation systems that accurately
assess employee contributions.
b. Providing constructive feedback and managing performance gaps.
6. Adapting to Technological Changes:

a. Leveraging technology for HR processes while ensuring data privacy and

security.
b. Integrating new HR technologies into existing systems.
c. Remote and Flexible Work:

d. Managing remote and hybrid work arrangements while maintaining team

cohesion and productivity.
e. Monitoring and evaluating remote employee performance.
7. Work-Life Balance and Well-Being:
a. Promoting employee well-being and mental health.
b. Addressing burnout and stress in the workplace.
8. Labor Laws and Compliance:
a. Staying up-to-date with changing labor laws and regulations.
b. Ensuring compliance with employment standards, anti-discrimination laws,
and other legal requirements.
9. Leadership Development and Succession Planning:
a. Identifying and developing future leaders to ensure a smooth leadership
transition.
b. Nurturing a pipeline of skilled individuals to fill critical roles.
10. Change Management:
a. Managing organizational changes effectively to minimize resistance and
disruption.
b. Communicating changes and their impact to employees.
11. Globalization and Cross-Cultural Management:
a. Managing a diverse workforce across different cultures and countries.
b. Adapting HR practices to comply with international labor laws and cultural
norms.
12. Data Privacy and Ethics:
a. Protecting employee data and ensuring compliance with data privacy
regulations.
b. Balancing the use of employee data for analytics with ethical considerations.
 13. Workforce Planning and Flexibility:
a. Anticipating and planning for shifts in workforce needs due to market
changes, economic conditions, and technological advancements.
14. Recruitment and Retention Costs:
a. Managing recruitment costs and developing cost-effective strategies to retain
employees.
b. Balancing compensation and benefits with budget constraints.
c. Effectively addressing these challenges requires HR professionals to be
strategic, adaptable, and responsive to the evolving needs of the organization
and its workforce.

Role of Human Resource Executives

1. Service Provider – As service providers, HR executives ensure that the
organization's human capital needs are met, employee experiences are positive,
and HR processes are efficient and effective. (Employee support, recruitment
and on boarding)
2. Executives – Making human resource policy and strategic planning.
3. Facilitator – Work between middle level and top level like communication.
4. Consultant – An HR consultant is a professional who provides specialized
expertise and advisory services to organizations in various aspects of Human
Resource Management (HRM). HR consultants are typically external experts or
firms hired by organizations to address specific HR-related challenges, provide
strategic guidance, and offer solutions to improve HR processes and practices.
5. Auditor – Human Resource (HR) auditing is a systematic process of reviewing an
organization's HR policies, practices, procedures, and systems to ensure legal
compliance, identify areas for improvement, and assess the effectiveness of HR
programs. The role of HR as an auditor involves evaluating HR functions to
ensure that they align with regulations, industry standards, and best practices.

Organisational Structure
Organisational structure means the framework that defines how tasks, role and
responsibilities are distributed, coordinated and managed within an organisation. It
establishes a hierarchy of authority, communication channels, and reporting
relationships that determine how work is organized and executed. Organizational
structure plays a fundamental role in shaping how an organization operates, makes
decisions, and achieves its goals.
Tall Organisational structure
In a tall organizational structure, there are multiple levels of hierarchy, with several layers of
management between the top executives and front-line employees. This structure is often
seen in larger organizations with complex operations,
 Many hierarchical level
 Narrow span control
 More formalisation
 Clear lines of authority
 Slower decision making (demerit)
Flat Organisational Structure
In a flat organizational structure, there are fewer hierarchical levels and a broader span of
control for each manager. This structure is often associated with smaller organizations or
those that prioritize flexibility and employee empowerment.
 Fewer hierarchical levels
 Wider span of control (Managers have more direct reports, allowing for quicker
communication and more autonomy for employees.)
 Faster decision making

Responsibility, authority & Accountability

1. Responsibility: Responsibility refers to the duties, tasks, and activities that
individuals or roles within an organization are expected to perform. It implies an
obligation to complete assigned tasks and achieve specific goals. Responsibilities are
defined by job descriptions, role expectations, and the overall functions of a position.
When someone is assigned a responsibility, they are expected to fulfill it to the best
of their ability.
2. Authority: Authority refers to the power or right granted to an individual, position, or
role to make decisions, issue commands, and take actions within a specific scope. It is
the legitimate ability to exert influence and control over others. Authority comes
from the organization's structure and delegation of power. With authority, individuals
can make decisions that impact their area of responsibility and the organization as a
whole.
3. Accountability: Accountability is the obligation of individuals or roles to accept and
take ownership of the outcomes of their actions, decisions, and performance. It
involves being answerable for the results, whether they are positive or negative.
Accountability helps ensure that individuals are held responsible for meeting their
obligations and achieving their assigned goals.
Example;
Imagine a manager in a manufacturing company responsible for ensuring that production
targets are met. In this scenario:
  Responsibility: The manager is responsible for overseeing the production process,
coordinating resources, and ensuring that production targets are achieved.

 Authority: The manager has the authority to make decisions related to production
scheduling, resource allocation, and process improvements. They can assign tasks to
team members and make operational decisions within their area of responsibility.
 Accountability: The manager is accountable for the overall production output and
meeting targets. If the production goals are not met, the manager is answerable for
the outcomes and may need to explain the reasons and take corrective actions.

Line Functions:
Line functions refer to activities and roles that are directly involved in accomplishing the
organization's primary objectives. They are essential for the core operations of the
organization and contribute directly to its revenue generation and production. Line functions
typically have decision-making authority and are responsible for the organization's main
products, services, and customer interactions. Key characteristics of line functions include:
1. Direct Responsibility: Line managers have direct responsibility for achieving specific
organizational goals and objectives. They make decisions that directly impact the
organization's performance.
2. Authority: Line managers have the authority to give orders, make operational
decisions, and allocate resources to fulfil their responsibilities.
3. Accountability: Line managers are accountable for the outcomes of their decisions
and the results achieved in their functional areas.
Examples: Production, sales, marketing, customer service, distribution, and other functions
directly related to the organization's core products or services.

Staff Functions:
Staff functions refer to activities and roles that support and assist the line functions in
achieving their goals. Staff functions provide expertise, advice, and specialized services to
help line managers make informed decisions and optimize their operations. Staff functions
do not have direct operational responsibility but play a crucial advisory and supportive role.
Key characteristics of staff functions include:
Advisory Role: Staff members provide expertise, recommendations, and guidance to line
managers based on their specialized knowledge.
Support: Staff functions offer support services such as human resources, legal, finance,
information technology, and research and development.
No Direct Authority: Staff members do not have the same level of decision-making authority
as line managers. They provide input and recommendations but do not make final
operational decisions.
Examples: Human resources, legal, finance, IT, research and development, quality assurance,
and other functions that provide specialized support.

The Role of Human Resource Department

1. As a specialist –
1) Recruitment and Selection: HR specialists in recruitment focus on identifying and
attracting qualified candidates for open positions. They use specialized
techniques to source, screen, interview, and select the best candidates that fit
the organization's needs and culture.
2) Training and Development: HR specialists in training and development design and
deliver training programs to enhance employee skills and knowledge. They assess
training needs, create learning materials, and facilitate workshops or online
courses.
3) Compensation and Benefits: Specialists in compensation and benefits design
competitive salary structures, incentive programs, and benefits packages. They
analyze market trends to ensure the organization offers attractive compensation
to attract and retain top talent.
4) Employee Relations: HR specialists in employee relations handle workplace
conflicts, grievances, and disciplinary matters. They ensure fair treatment,
mediate disputes, and maintain positive employee relations.
5) Labor Relations: HR specialists in labor relations focus on managing interactions
with labor unions, negotiating collective bargaining agreements, and ensuring
compliance with labor laws.
6) Performance Management: Specialists in performance management design
performance evaluation systems, establish performance metrics, and provide
guidance on setting goals and providing feedback.
7) Diversity and Inclusion: HR specialists in diversity and inclusion promote a diverse
and inclusive workplace. They develop initiatives to ensure equitable treatment
and representation of all employees.
8) HR Analytics: Specialists in HR analytics analyze workforce data to provide
insights into trends, patterns, and opportunities. They use data-driven
approaches to inform HR strategies and decision-making.
9) Employee Engagement: HR specialists in employee engagement design initiatives
to enhance employee morale, satisfaction, and overall workplace well-being.
10) Talent Management: Specialists in talent management focus on identifying high-
potential employees, creating leadership development programs, and succession
planning.
2. As a facilitator - The Human Resource (HR) department often plays the role of a
facilitator within an organization. As facilitators, HR professionals focus on enabling
and supporting various processes, interactions, and initiatives to ensure effective
communication, collaboration, and overall organizational success.
1) Communication and Collaboration: HR facilitates open and transparent
communication across all levels of the organization. They establish channels
for information flow and encourage collaboration among different
departments and teams.
2) Conflict Resolution: HR facilitates the resolution of conflicts and disputes
among employees or between employees and managers. They mediate
discussions, help parties understand each other's perspectives, and guide
them toward mutually acceptable solutions.

3) Training and Development: HR facilitates learning and development

opportunities for employees. They organize training sessions, workshops, and
skill-building activities to enhance employee knowledge and skills.
4) Team Building: HR facilitates team-building activities and events to foster
stronger relationships and enhance teamwork among employees. These
activities promote a positive work culture and improve group dynamics.
3. As a change agent – The Human Resource (HR) department often acts as a change
agent within an organization, playing a critical role in facilitating and managing
organizational change initiatives. As change agents, HR professionals drive and
support the process of change to ensure its successful implementation and
alignment with the organization's strategic goals.
1. Change Strategy Development: HR professionals collaborate with senior
leadership to develop a comprehensive change strategy that outlines the
goals, scope, timeline, and expected outcomes of the change initiative.
2. Change Communication: HR facilitates effective communication of the change
to employees at all levels. They create communication plans, messages, and
channels to keep employees informed and engaged throughout the change
process.
3. Stakeholder Engagement: HR identifies key stakeholders who are affected by
the change and ensures their active involvement and support. They address
concerns, gather feedback, and involve stakeholders in decision-making.
4. Change Readiness Assessment: HR conducts assessments to gauge the
organization's readiness for change. They identify potential barriers,
challenges, and opportunities for successful implementation.
5. Training and Development: HR designs and delivers training programs to
equip employees with the skills and knowledge needed to adapt to the
change. They provide resources and learning opportunities to support
employees through the transition.
 4. As a controller – The Human Resource (HR) department can play a role similar to that
of a "controller" within an organization, especially in terms of managing and
overseeing various aspects related to compliance, policies, and processes.
1) Legal Compliance: The HR department ensures that the organization adheres to
relevant labour laws, employment regulations, and industry-specific
requirements. They stay updated on changes in laws and regulations and make
sure the organization's practices are in line with legal requirements.
2) Policy Development and Enforcement: HR develops and implements HR policies,
procedures, and guidelines that govern employee behaviour, workplace conduct,
and various HR practices. They ensure that these policies are consistently applied
and enforced across the organization.
3) Record Keeping and Documentation: The HR department maintains accurate and
comprehensive records of employee information, contracts, performance
evaluations, training records, and other relevant documents. Proper record
keeping is crucial for compliance, audits, and legal protection.
4) Employee Data Privacy and Security: HR ensures that employee data is handled in
compliance with data protection laws and that appropriate measures are in place
to safeguard sensitive information.
5) Ethics and Code of Conduct: HR communicates and reinforces the organization's
ethical standards and code of conduct. They provide guidance on ethical
dilemmas, manage ethics-related concerns, and promote a culture of integrity.

Strategic Human Resource Management

Strategic management is the process of formulating, implementing, and evaluating the long-
term goals and objectives of an organization. It involves making decisions and taking actions
that align the organization's resources, capabilities, and activities with its mission and vision
to achieve sustainable competitive advantage and success in a dynamic and evolving
business environment. Strategic management is a top-level managerial activity that guides
the overall direction of an organization and ensures its long-term viability.
Strategy means a chosen course of action for a specific situation.
Strategic planning in an organisation – How an organization intends to balance its internal
strengths and weaknesses with its external opportunities and threats to maintain a
competitive advantage over the long-term.

Business vision and mission

 1. Vision – A vision statement is a concise and inspirational declaration of what an
organization aspires to become in the future. It outlines the organization's long-term
goals, aspirations, and the desired impact it aims to achieve.
a. Future oriented
b. Inspirational
2. Mission – A mission statement is a concise statement that outlines the fundamental
purpose and core activities of an organization. It defines why the organization exists,
what it does, and who it serves.
a. Operational focus
b. Customer & stakeholder focus

Types of Strategies (At corporate level)

1. Geographic Expansion: This involves increasing the organization's operations, market
presence, or product offerings. Expansion strategies can include geographic
expansion, entering new markets, or introducing new products or services.
Organizations expand their operations to international markets, targeting new
customer bases and taking advantage of global opportunities.
2. Diversification: Organizations diversify by entering new markets or industries that are
unrelated to their current business. This can involve either related diversification
(entering industries with some strategic fit) or unrelated diversification (entering
entirely different industries). Also know as Conglomerated
3. Vertical Integration: Organizations pursue vertical integration strategies by either
moving upstream (toward suppliers) or downstream (toward customers) in their
industry's value chain.
4. Consolidation Strategy – This is a corporate-level strategy that involves combining
various business units, operations, or activities within an organization to achieve
synergies, streamline operations, and improve efficiency. Consolidation strategies are
often pursued to create a stronger and more cohesive organization by eliminating
redundancies, reducing costs, and optimizing resources. (Infosys)

Types of Strategies (Business level)

1. Cost Leadership (Big Bazaar & D-Mart) - Cost leadership is a business-level
strategy that focuses on becoming the low-cost producer in an industry or market
segment while maintaining acceptable levels of quality. Organizations that adopt
a cost leadership strategy aim to offer products or services at a lower price than
their competitors, allowing them to attract price-sensitive customers and achieve
a competitive advantage based on cost efficiency.
2. Differentiation (Apple) - Differentiation is a business-level strategy that focuses on
creating unique and distinctive products or services that stand out in the market.
Organizations that adopt a differentiation strategy aim to provide customers with
 something different and valuable, which allows them to command premium
prices and build strong brand loyalty.
3. Focus & Niche (Tesla) (EVs car) – Focus and niche business-level strategies involve
targeting a specific segment of the market with unique products or services to
meet the specialized needs of that segment. These strategies allow organizations
to concentrate their efforts and resources on serving a narrower customer base
more effectively than their broader competitors.

Achieving Strategic Fit

1. The “Fit” Point of view (Porter)
Strategic fit refers to the alignment and coherence between different elements of
an organization's strategy. It involves ensuring that various aspects of the
business, such as its goals, resources, capabilities, and competitive advantage, are
all synchronized to work together effectively in pursuit of a common objective.
Important factors to be consider while achieving strategic fit –
a) Clear vision and mission
b) Clear objective and goals
c) SWOT Analysis
d) Resource allocation (in a proper manner)
e) Organisational structure and culture
2. Leveraging (Hamel & Prahalad)
It means supplementing what you have and doing more with you have. It can be
more important than just fitting the strategic plan to current resources.
Important points how we can leverage the ideas in strategic management –
a) Focus on core business areas
b) Innovation and disruption
c) Identify core competencies
d) Employee development
e) Long term perspectives

What do you mean by Strategic Human Resource Management?

Strategic human resource management is a approach to manage an organisation human
resource in a way that algins with supports its overall strategic objectives and goals.
Strategic Human Resource Management involves integrating HR practices with strategic
planning to ensure that the organization's workforce contributes to achieving its goals and
maintaining a competitive advantage. It includes -
1. Alignment with Business Strategy (strategy, goals and objectives)
2. Training and development
3. Performance management
4. Employee engagement and motivation
Strategic Human Resource Challenges
1. Corporate productivity and performance improvement efforts involve strategies and
initiatives aimed at enhancing the efficiency, effectiveness, and overall performance
of an organization. These efforts are designed to optimize various aspects of the
business to achieve better outcomes, increased profitability, and a competitive
advantage.
2. The expanded role of employees in an organization's performance efforts refers to
involving employees at various levels in driving and contributing to the organization's
overall performance improvement initiatives. This approach recognizes that
employees are valuable assets with unique insights, skills, and perspectives that can
significantly impact the organization's success. Empowering employees to play an
active role in performance improvement efforts can lead to increased engagement,
innovation, and alignment with the organization's goals.
3. Increasing HR team involvement in the design of strategic plans is a proactive
approach that recognizes the integral role of human resources in shaping an
organization's direction, goals, and success. Involving HR professionals in the
strategic planning process ensures that people-related considerations are fully
integrated into the organization's strategy, ultimately enhancing the plan's
effectiveness and alignment with the workforce.

Human Resource Management Strategic Roles

1. The role of strategy execution involves translating strategic plans into actionable
steps and ensuring that these actions are carried out effectively throughout the
organization. Strategy execution is a dynamic process that involves aligning
people, resources, processes, and systems to achieve the goals and objectives set
forth in the strategic plan.
1. Leadership and Direction: Provide clear leadership and direction to guide
the implementation of the strategic plan. Set the tone for commitment,
alignment, and accountability.
2. Action Planning: Break down the strategic objectives into specific,
measurable actions. Define tasks, timelines, responsible individuals or
teams, and required resources for each action.
3. Resource Allocation: Allocate the necessary resources, including financial,
human, technological, and physical resources, to support the execution of
the strategic plan.
4. Communication: Ensure effective communication of the strategic goals,
priorities, and action plans to all levels of the organization. Employees
need to understand how their roles contribute to the overall strategy.
5. Alignment: Ensure that all departments, teams, and individuals are
aligned with the strategic goals. Each unit's activities should be
harmonized to avoid conflicting priorities.
 6. Performance Measurement: Establish key performance indicators (KPIs)
and metrics to measure progress and success. Regularly track and analyze
performance against these indicators.
7. Accountability: Hold individuals and teams accountable for their roles in
executing the strategy. Create a culture of ownership and responsibility.
8. Problem Solving: Address challenges and obstacles that may arise during
execution. Adapt and find solutions to keep the plan on track.
9. Adaptation and Flexibility: Remain flexible and open to adjusting the
strategy and action plans in response to changing market conditions, new
information, or unexpected challenges.
10. Feedback Loop: Establish mechanisms for gathering feedback from
employees, customers, and stakeholders. Use this feedback to refine
execution and make informed decisions.
2. The role of strategy formulation involves developing a clear and comprehensive
strategic plan that guides an organization's actions and decisions to achieve its
long-term goals and objectives. This role is critical in setting the direction for the
organization, defining its competitive advantage, and identifying the path to
success.
1. Vision and Mission: Define the organization's vision (its aspirational future
state) and mission (its purpose and reason for existence). These
statements provide the foundation for strategic planning.
2. Environmental Analysis: Conduct a thorough analysis of the external
environment, including economic, industry-specific, technological,
regulatory, and competitive factors. Understand the opportunities and
threats that may impact the organization.
3. Internal Assessment: Evaluate the organization's strengths, weaknesses,
resources, capabilities, and core competencies. Identify what the
organization does well and areas that need improvement.
4. Setting Objectives: Establish clear and measurable objectives that the
organization aims to achieve within a specific timeframe. Objectives
should be with the organization's mission and vision.
5. Resource Allocation: Allocate resources, including budget, personnel, and
other assets, to support the implementation of the chosen strategy.
6. Communication: Communicate the formulated strategy clearly and
effectively to all stakeholders, including employees, investors, customers,
and partners.
7. Ethical and Social Responsibility: Ensure that the formulated strategy
aligns with ethical considerations and social responsibility goals.
Creating the Strategic Human Resource Management System
Creating a Strategic Human Resource Management (SHRM) system involves designing and
implementing a comprehensive framework that aligns HR practices with the organization's
strategic goals and objectives. A well-designed SHRM system ensures that the organization's
human capital contributes effectively to achieving its long-term success.
Components of Strategic HRM System
1. Strategic Planning Integration: Integrate HR practices with the organization's overall
strategic planning process to ensure alignment between HR goals and the broader
organizational goals.
2. Talent Acquisition and Recruitment: Develop strategies for attracting and hiring talent
that aligns with the organization's strategic objectives and core competencies.
3. Workforce Planning: Analyze current and future workforce needs to ensure that the
right talent is available at the right time to support the organization's strategic
initiatives.
4. Performance Management: Design performance management systems that link
individual and team goals to the strategic objectives of the organization. Use
performance metrics to measure progress toward strategic goals.
5. Training and Development: Develop training and development programs that equip
employees with the skills and knowledge required to execute the organization's
strategic plan.
6. Succession Planning: Identify and develop potential leaders and successors for critical
roles within the organization, ensuring a smooth transition during leadership
changes.
7. Compensation and Rewards: Design compensation structures and reward systems
that motivate and incentivize employees to contribute to achieving strategic goals.
8. Employee Engagement: Implement initiatives to engage employees and align their
interests with the organization's mission and vision.
9. Feedback Mechanisms: Create mechanisms for employees to provide feedback on HR
practices and initiatives, ensuring that they remain aligned with employee needs and
expectations.
10. Measurement and Evaluation: Regularly assess the effectiveness of the SHRM system
in contributing to the organization's strategic goals. Use evaluation results to refine
and enhance the system.
Strategic Human Resource Models
Strategic Human Resource Management (SHRM) models are frameworks that provide
guidance and structure for organizations to align their human resource practices with their
overall strategic goals and objectives. These models help organizations conceptualize how
HR can contribute to business success by integrating HR practices with strategic planning.
The Life Cycle Model is a strategic human resource management (SHRM) framework that
focuses on adapting HR practices and strategies to different stages of an organization's life
cycle. It recognizes that organizations go through various phases, each with unique
challenges and opportunities, and proposes that HR practices should be tailored to support
the organization's needs at each stage.

Stages of the Life Cycle Model:

 1) Start-Up Phase: In this early stage, the organization is focused on establishing its
presence, defining its mission, and building its core team. HR practices emphasize
recruitment, selection, and building a strong company culture. HR also plays a role in
attracting individuals who are aligned with the organization's vision and values.
2) Growth Phase: During this stage, the organization experiences rapid expansion and
development. HR practices focus on talent acquisition to support growth, as well as
training and development to enhance employees' skills. Performance management
systems may be introduced to align employee goals with organizational objectives.
3) Maturity Phase: In this phase, the organization has achieved stability and is well-
established in the market. HR practices concentrate on retaining and developing
existing talent. Compensation and benefits packages are designed to reward long-
term commitment, and succession planning becomes important to ensure a strong
leadership pipeline.
4) Renewal or Decline Phase: Organizations may face challenges or changes that
require adaptation. HR practices might include restructuring, reskilling employees,
and redefining the organization's identity. HR plays a role in managing change and
aligning employees with the new direction.
Key Principles of the Life Cycle Model:
1. Adaptation: HR practices should adapt to the organization's changing needs
at each life cycle stage. One size does not fit all, so customization is crucial.
2. Strategic Alignment: HR strategies should align with the organization's overall
strategic goals. HR practices should directly contribute to the organization's
success and growth.
3. Anticipating Challenges: HR professionals should anticipate challenges and
changes that come with each life cycle stage. They need to proactively
address issues to ensure the organization's continued success.
4. Flexibility: The model emphasizes the importance of flexibility in HR
practices. As the organization evolves, HR needs to be agile and ready to
adjust strategies accordingly.
5. Long-Term Perspective: HR practices should consider the long-term impact on
the organization. Decisions made in one stage can have implications for future
stages.
6. Employee Development: Developing employees' skills and competencies is a
recurring theme throughout the life cycle. This enables the organization to
grow and thrive in each phase.
7. Cultural Fit: HR practices should foster a company culture that aligns with the
organization's values and mission. This culture becomes a foundation for
success in all stages.
Competitive Advantage Model also known as the Resource-Based View (RBV) of HRM, is a
strategic human resource management (SHRM) framework that emphasizes the role of
human resources as a source of sustained competitive advantage for organizations. This
model suggests that the unique skills, knowledge, and capabilities of an organization's
workforce can contribute significantly to its success and long-term profitability.
Principles of the Competitive Advantage Model:
1) Human Capital as a Strategic Asset: The model views human capital (employees'
skills, abilities, and knowledge) as a valuable and rare resource that can differentiate
an organization from its competitors.
2) Resource Heterogeneity: Each organization's human resources are unique in terms of
skills, experience, and capabilities. This heterogeneity can lead to competitive
advantages when properly utilized.
3) Resource Immutability: Human capital and other resources may be difficult for
competitors to imitate or replicate. This uniqueness contributes to the sustainability
of competitive advantage.
4) Resource Valuation: HR practices should be evaluated based on their potential to
contribute to the organization's competitive advantage. The focus is on how these
practices enhance organizational performance.
5) Strategic Fit: HR practices should align with the organization's overall strategic goals
and objectives. Human resources should be leveraged to support the achievement of
these goals.
6) Internal Focus: The model encourages organizations to look internally at their unique
strengths and capabilities. This approach can lead to strategies that utilize existing
resources more effectively.

Application of the Competitive Advantage Model:

1. Identifying Core Competencies: Organizations should identify their core
competencies, which are unique capabilities that create value for customers and
provide a competitive edge. HR practices should support the development and
utilization of these competencies.
2. Leveraging Human Capital: Organizations should invest in training, development, and
talent management to enhance the skills and knowledge of their workforce. This
investment leads to a skilled and capable workforce that contributes to competitive
advantage.
3. Aligning HR with Strategy: HR practices should be aligned with the organization's
strategic direction. For example, if an organization's strategy is based on innovation,
HR can focus on recruiting and developing employees with creative and problem-
solving skills.

4. Performance-Based Rewards: Compensation and rewards systems should be

designed to motivate and retain high-performing employees. Linking rewards to
performance encourages employees to contribute to the organization's competitive
advantage.
 5. Building Intellectual Capital: Intellectual capital, including knowledge, expertise, and
innovative thinking, is a key driver of competitive advantage. HR practices should
facilitate knowledge sharing, collaboration, and continuous learning.
6. Strategic Workforce Planning: HR should engage in strategic workforce planning to
ensure that the right talent is available at the right time to support the organization's
strategic initiatives.

Two Basic Forms of Strategic Alignment

1. Vertical alignment involves aligning different levels within an organization, from the
top leadership down to individual employees, to ensure that everyone is working
cohesively toward the same strategic objectives. This alignment ensures that the
organization's strategy is communicated consistently across all levels and that each
level's goals contribute to the broader strategic direction.
i. Performance Management: Individual performance goals and evaluations are
linked to the organization's strategic objectives. This helps employees see
how their work contributes to the bigger picture.
ii. Accountability: Each level is held accountable for achieving their respective
goals, which collectively contribute to the successful execution of the
strategic plan.
iii. Clear Communication: Leadership communicates the strategic vision and
objectives to managers and employees, ensuring that everyone understands
their role in achieving the organization's goals.
2. Horizontal alignment focuses on coordinating different functional areas or
departments within the organization to work collaboratively and synergistically. This
alignment ensures that various departments are not working in isolation but are
instead coordinating their efforts to achieve common goals.
I. Cross-Functional Collaboration: Departments that traditionally operate
independently collaborate to achieve shared goals. This collaboration breaks
down silos and enhances communication.
II. Avoiding Conflict: Departments align their activities to minimize conflicts and
ensure that their efforts complement rather than compete with each other.
III. Shared Resources: Resources such as information, expertise, and technology
are shared across departments to optimize efficiency and effectiveness.
Type of Human resource Strategy
In a "Bargain Laborer" approach or a cost-focused strategy, organizations aim to
reduce HR-related expenses, including labor costs, while maintaining adequate levels
of productivity and efficiency. Here's how this concept can be understood:

Bargain Laborer Strategy (Cost Leadership Strategy):

1. Objective: The primary objective is to keep labor costs as low as possible

without compromising the organization's ability to deliver products or
services.
2. Focus on Efficiency: HR practices are designed to maximize the efficiency of
the workforce, often by streamlining processes, minimizing redundancy, and
optimizing work schedules.
3. Compensation and Benefits: The organization may offer compensation and
benefits that are competitive within the industry but not necessarily leading
the market. The focus is on controlling costs while still attracting and retaining
employees.
4. Lean Staffing: The organization might adopt lean staffing practices, ensuring
that only the essential workforce is in place to meet operational needs.
 5. Performance Management: Performance evaluation and reward systems may
be aligned with cost control. Employees are recognized for productivity and
efficiency rather than elaborate compensation packages.
6. Training and Development: Investments in employee training and
development may be tailored to improve specific skills that directly impact
productivity and cost efficiency.
The "Free Agent Workforce" or "Free Agent HR Strategy," refers to an approach in which
organizations leverage a flexible workforce composed of temporary, contract, freelance, or
project-based workers. This strategy emphasizes agility, scalability, and access to specialized
skills as organizations tap into external talent to meet their business needs.
Flexible Workforce: Organizations hire a significant portion of their workforce as
independent contractors, freelancers, or temporary workers. These workers are not bound
by traditional employment relationships but are engaged for specific projects or time
periods.

1. Scalability: The strategy allows organizations to quickly scale up or down their

workforce based on business demands. This flexibility is especially valuable during
peak seasons or when dealing with variable workloads.
2. Specialized Skills: Organizations can tap into specialized skills and expertise that
might not be available within their full-time workforce. Free agents often bring
unique knowledge and experience to the table.
3. Cost Savings: By hiring free agents, organizations can potentially reduce labor costs
associated with benefits, insurance, and other overhead expenses typically incurred
with traditional employees.
4. Project-Based Approach: Work is often organized into projects or tasks, and free
agents are engaged for their specific expertise to contribute to those projects.
5. Technology Enablement: Advances in technology and remote work capabilities have
facilitated the rise of the free agent workforce. Many free agents work remotely and
collaborate using digital platforms.
The "Loyal Soldier" strategy is a term used to describe an approach to Human Resource
Management (HRM) that emphasizes long-term commitment and loyalty from employees.
This strategy is often associated with traditional employment relationships where employees
are expected to stay with the organization for a significant portion of their careers. The
concept of the "Loyal Soldier" reflects an organizational culture that values stability, tenure,
and a sense of belonging among its workforce.
1. Long-Term Employment: The strategy promotes the idea of employees joining the
organization and staying with it for a substantial part of their working lives. Tenure
and loyalty are highly valued.
2. Career Development: Organizations using this strategy often offer clear career paths
and development opportunities for employees. Employees are encouraged to grow
and advance within the organization.
 3. Organizational Commitment: Employees are expected to align closely with the
organization's values, mission, and goals. Their commitment to the organization's
success is a key aspect of the strategy.
4. Job Security: Organizations using the "Loyal Soldier" strategy provide job security to
employees, fostering a sense of stability and trust in the employment relationship.
5. Training and Development: Significant investment is made in training and developing
employees to enhance their skills and contribute effectively to the organization's
growth.
6. Rewards and Recognition: Employees are rewarded for their loyalty and
contributions over the long term. Compensation and benefits packages are designed
to acknowledge tenure and commitment.
The "Committed Expert" strategy is an approach to Human Resource Management (HRM)
that focuses on nurturing a workforce composed of highly skilled and specialized individuals
who are deeply committed to their work and the organization. This strategy emphasizes
both expertise and employee commitment, aiming to create a high-performing and engaged
workforce.
1. Skill and Expertise Development: The strategy places a strong emphasis on
developing and honing specialized skills, knowledge, and expertise within the
workforce. Employees are encouraged to become experts in their respective fields.
2. Selective Hiring: Organizations using this strategy carefully select employees who
possess the necessary skills and qualifications. Hiring decisions are based on the
alignment of an employee's expertise with the organization's needs.
3. Continuous Learning: The "Committed Expert" strategy supports ongoing learning
and development to ensure that employees stay current with industry trends and
maintain their expertise.
4. Organizational Commitment: Employees are expected to have a strong sense of
commitment to the organization's goals and mission. They align their expertise with
the overall strategic direction of the organization.
5. Career Growth: The strategy offers opportunities for career growth and advancement
based on an employee's ability to consistently demonstrate expertise and contribute
to the organization's success.
6. Recognition and Autonomy: Employees are recognized and rewarded for their
expertise and contributions. They are often given a degree of autonomy in their roles
to leverage their skills effectively.
7. Innovation and Problem-Solving: Experts are encouraged to apply their skills to
innovate, solve complex problems, and drive organizational improvements.

What are Issues of Human Resource: -

1. Turnaround Strategy –
a. Companies using this strategy lay off employees and new approaches to
production are implemented.
b. This strategy is compatible with an external labor orientation.
 c. Low performers are dismissed, and new employees are hired for their ability
to change the way work is accomplished.
d. A Free Agent HR strategy is adopted that emphasizes the need to turn around
low organizational performance quickly.
2. Global Expansion Strategy –
a. Focuses specifically on growing an organization’s presence in foreign
countries.
b. This strategy requires organizations to attract and select workers who are
quite different from those already employed.
c. The human resource approach most closely aligned with the global expansion
competitive strategy is the Free Agent HR strategy.
3. Growth Strategy –
a. Is adopted by companies seeks to expand into new markets.
b. Growth may occur through acquisitions and mergers.
c. human resource management focus will be on reducing barriers to effective
integration of organizational cultures.

Job Analysis
Job analysis is the procedure through which the company determine the duties in an
company positions and the kind of person who should be hired for it.
Job analysis is a systematic process used by organizations to gather information about a
particular job's requirements, responsibilities, tasks, and characteristics. It involves collecting
detailed data about various aspects of a job in order to better understand what the job
entails and to make informed decisions related to human resource management, such as
recruitment, selection, training, performance evaluation, and compensation.
Methods of Data Collection for Job Analysis
1. Questionnaire Methods
i. This method is usually used to obtain information about jobs through
a mail survey.
ii. The job incumbents who can easily express themselves in writing are
asked to provide data about their jobs in their own words.
iii. a very time consuming and laborious process to analyse the data
obtained in this manner.
2. Checklist Methods
i. This method requires the worker to check the task he performs from a
long list of possible task statements.
ii. checklists are easy for the incumbent to respond to; they do not
provide an integrated picture of the job in question.
iii. easily administered to large groups and are easy to tabulate.
3. Interview Methods
i. In this method a group of representative job incumbents are selected
for extensive interview - usually outside of the actual job situation.
ii. The interview may be carried out either individually or in a group to
save time.
iii. very costly and time consuming.
4. Observation Methods
i. This method can be followed right on the job.
ii. The analyst observes the incumbent as he performs his work and
questions him to get the required data.
iii. slow and costly.
iv. it generally produces a good and complete job description.
v. This method is particularly desirable where manual operations are
prominent and where the work cycle is short.
5. Participation Methods
i. In this method the job analyst actually performs the job himself.
ii. In this way he is able to obtain first-hand information about what
characteristics comprise the job under investigation.
iii. This method is fairly good for simple jobs but in case of complex jobs
advance training of the analyst becomes necessary.
iv. The method is also time-consuming and expensive.
6. Technical Conference
i. In this method information about the characteristics of the job is
collected from the expert.
ii. drawback of this method is that the experts may at times show poor
knowledge about the job which they are not actually performing
themselves and may give answers based upon their past experience.
7. Self – recording of diary
 i. In this method the job incumbent is asked to record his daily activities
each day using some type of logbook or diary.
ii. it systematically collection of information about the nature and the
time spent on various activities during the day by each incumbent.
iii. Time-consuming
iv. This method is particularly useful for high-level managerial jobs.
8. Critical Incident
i. In this method the supervisor is asked to provide instances of on-the -
job behaviours of people.
ii. instances can provide information about critical aspects of the job, but
the method does not provide an integrated picture of the entire task.
Job Description
A list of a job’s duties, responsibilities, reporting relationships, working conditions, and
supervisor responsibilities—one product of a job analysis.
Job Specification
A list of a job’s “human requirements,” that is, the requisite education, skills, personality, and
so on—another product of a job analysis.