Module 1

Introduction and meaning of HRM

Human resource management is concerned with all aspect of managing the human resource of an
organization . more specifically HRM involves determining the organization needs of human resources
recurting and selecting the best available employees developing counselling employees acting as a
liaison with the unions and government organization. Handing others matters relating to the well being
of employees.

An organization is made up of 4 resources namely men material money and machinery. It involve
living and non living components .the human resources is different from the non human resources in
other respective also ..Human resources are heterogeneous in the sense that they different and
personality perception emotion values attitudes motives and modes of thoughts ..Their behaviour to
stimuli i is often inconsistent & unpredictability while other sources depreciate. human resource
appreciate with the passage of time .better education more skilled better aware of the off their inte and
the rights are some distinguishing features of modern human resources .this make it difficult for
managing managers to use Human Services in effective and efficient manner.

Concept of Human Resource Management

Many countries which led to the use of the term human resource management in place of traditional
term personal management. These change includes technological changes importance of trade unions
shifts from industrial employment to service sector employment, growing competition, deregulation and
globalisation of economics etc.. As a result 3 important roles of human resource have emerged as stated
below.

• Human Resources f policies can be integrated with strategic business planning and used to force
, appropriate ( or change an inappropriate) culture .
• Human resources are valuable and a source of competitive advantage
• Human resource can be tapped most effectively by mutually consisting polices.

According to Dessler Human resource management is the process of acquiring training

appraising and compensating employees and attending to their labour relations health, safety
and fairness concern.
According to Michael J Jucius has defined human resource as a whole consisting of Inter
related ,inter dependent and interacting psychological physiological sociological and ethical
components.
Human resource management is basically concerned with creating good relation in the
organization and development People for contributing to the organisational objectives . HRM is
that part of management process which develop and manages the human element of the
enterprises considering their resourcesfullness in term of total knowledge ,skills creative ability
talents attitudes and potentiality for effectively contributing to the organisational objectives.
 Objective of human resource management

The primary objective of HRM is to ensure the availability of right people for right jobs so as the
organisational goals are achieved effectively .The primary objective can further divided into the following
sub objectives .

• To help the organisation to attain its goals effectively and efficiently by providing components
and motivated employees.
• To utilise the available human resources effectively.
• To increase to the employees job satisfaction and self actualisation.
• To develop and maintain the quality of work life, which make employment in the organisation,a
desirable personal and social situation.
• To help maintain Ethical policies and behaviour inside and outside the organisation.
• To establish and maintain cordial relations between employees and management.
• To reconcile individual, group goals with organisational goals .

Human Resource Manager

planning, organising, directing ,and controlling in relation to its dept . Human resource manager
is some one who oversee the administrative and organizational functions of a company or
business manager usually heads the HR department and they play an important role as a bridge
between management and employees.
The role of a human resource manager will largely depends on the size of the company.
In some smaller companies may serve as an HR generalist, overseeing the entire scope of human
resource. In other companies they may be more tha one HR manager in the human resource
department each with their own speciality.

Objective of HR manager/ Management

• To ensure effective utilisation of human resource.

• To procure right type of personal for right job at the right time.
• To ensure a stable working environment, with organized data management and efficient
operation.
• To provide guidance on all aspects of human resource management including recruitment,
performance management, training& development, compensation & benefits etc..
• To ensure development of human resource by offering opportunity for leading and
advancement.
• To provide right kind of training personal to increase their product.
• To achive and maintain high morial among employee in the organisation,by securing better
human relation.
• To ensure respect for human beings by providing various services and welfare respectively.
 Scope of HRM

In order to achieve the above objectives personal/human resource management undertakes

the following activities.
• Human resource or manpower planning is determining the number and kinds of personal
required to fill various positions in the organisation.
• Recruitment selection and placement pf personal that is employment function.
• Training and development of employer for their efficient performance and growth.
• Apprisal of performance of employer and training corrective steps such as Transfer from one job
to another.
• Motivation of workforce by providing financial incentives and avanues of promotion .
• Remuneration of employees – the employees must be given sufficient wages and fringe benefits
to achieve higher standard of living and to motivate to show higher productivity.

Function of HRM

Human resource or personal dept is established in most of the organisation, under the
change of an executive know as human resource/personal Manager .This dept plays an
important role in the efficient management of human resource. The personal dept give
assistance & provides services to all other dept ,on personal matters , through personal or
human resource manager is a staff officer in relation to other department of the enterprise he is
a line authority to get orders executed within his department.

1. Managerial Function

The human resources manager is a part of the organisational management.So he must perform the basic
managerial Function of Their functions are discussed below.

*Planning

To get things done through the subordinates a manager must plan ahead . planning is necessary to
determine the goals of the organisation and lag down policies and procedures to reach the goals.For a
human resource manager, planning means the determination of personal programs, that will contribute
to the goals of the enterprise. That is anticipating vacancies, planning job requirements, job description,
and determination of the source of the requirement.

*Organising

Once the human resource manager has established objectives and develop organisational structure to
carry out the various Operations .The organisational structure basically includes the following.

• Grouping of personnel activity logically into functions or positions .

• Assignment of department function to department individuals .
• Delegation of authority according to the task assigned and responsibilities involved.
• Co-ordination of activities of department.
 *Directing

The pans are to be put into effect by people but how smoothly the plans implemented depends
on the motivation of peoples. It is the process of activating group efforts to achieve the desired
goals .It includes activities like getting subordinates to get the job done maintaining morale
motivating subordinates etc… for achieving the goals of the organisation.

*Controlling

Controlling is concerned with the regulation of activities in accordance with the plans which in
turn have been formulated on the basic of the objective of the organisation. Thus controlling
complete the cycle and leads back to planning. It involves the observation and comparison of
results with the standards and correction.

2. Operative Function

To operative Function are those tasks or duties which are specifically entrusted to the human resource or
personal dept. These are concerned with employment , development, compensation, integration and
maintance of personal of the organisation.

*Employment

The first operative Function of the human resource or personal

The first operative Function of the human resource or personal dept is the employment of proper kind
and number of persons necessary to achieve the objectives of the organisation. This involves
recruitment, selection, placement etc.. of the personnel . Induction and placement of personnel for their
better performance also come under the employment or procurement function.

*Development

Training and development of personal is a follow up of the employment function. It is a duty of a mgf to
train each employee property to develop him technical skills for the job for which he has been employed
and also to develop him for the higher job in the organisation. proper development of personnel is
necessary to increase their skill in doing their jobs in satisfying their growth need.

*Compensation

This function is concerned with determination of adequate and equitable remuneration of the
employees in the organisation. For their contribution to the organisational goals .The personnel can be
compensated both in term of monetary as well as non monitory rewards . Factors which must born in
mind while fixing the remuneration of personnel are their basic needs requirements of job legal
provisions regarding minimum wages, capacity of the organisation to pay wages level afforded by
competitors etc… are fixing wages level .
*Maintenance

Merely appointed and training of people is not sufficient, they like their work and work place and
maintain their efficiency. It is concerned with protecting and promoting employees while at work.

3.Advisory Function

Human resource manager has specialised education and training in managing human resource. He is an
expert in his area and so can give advice on matters relating to human resource of the organisation.

*Top management

Personnel manager advises to management in formulation and evaluation of personal programmes

policies and procedures. He also give advise for achieving and maintaining good human relations and
high employee Morales.

*Departmental Heads

Personnel manager offers advise to the heads of various depts on matters such as manpower
planning, job analysis and design recruitment and selection, placement training, performance appraisal
etc…

Qualities of personnel /Human Resource Manager

Fayol put the qualities required by managers into the following categories.

1.physical -Health, vigour, address;

2.Mental ability to understand and learn judgement, mental, vigour and adaptability.

3.Moral energy -Firmness willingness to accept responsibility, initiative, loyalty tact dignity.

4.Educationa- General acquaintance with matters not belonging exclusively to the function preformed.

5.Technical -peculiar to the function

6.Experience arising from the work

The personal manager should possess all the qualities required of a manager for his effective
functioning. However the personnel manager should possess human relations skills in greater degree as
he is to deal more with the human relations matters. The qualities required of an effective personnel or
human resource manager are listed below.

1.Personnel or hum resource manager should have human approach to human problems. His attitudes
towards the operative workforce should be sympathetic in dealing with their problems.

2.He should be alert mentally and at no time he should be caught unaware.

3.He should be competent to take quick decisions.

4.He should be honest in dealing with the employees so as to leave no scope of any doubt in the minds
of the employees about his integrity.
5.He should have patience and should not lose temper easily .

6.He should not depend upon his formal authority too much.

7.He should be good leader so as to guide the subordinates towards organisational goals.

8.He should have a sense of social responsibility so as to help his employees to discharge their social
obligations to the various segments of society.

9.He should be a good communicator and should be courteous in dealing with workers,trade unions
leaders and members of the press.

System approach to human resource /

System approach to human resource management

System is consist of lot of elements and they are interrelated and interdependent for each other .
According to Cleland &king A system may be defined as an assemblage or combination of things or parts
forming a complex or unitary whole. It may be viewed as a assemblage or self of correlated members , or
a coordinated body or complex of methods ,plans and procedures. The parts , elements, components,
things , members, plan and procedures are know as sub system. The systems view of organisations gives
a complete picture of the organisation as it considers the organisation in its totality.

Features

• The system is goal oriented

• The whole is more than sim of all parts in system
• A system is engaged in processing or transforming of inputs into outputs.
• Various components of a system are interrelated and interdependent, they interact with each
other.
• A system acts upon its environmental and also acted upon by its environment.

Strategic Role of Human Resource Management

Strategic means technique to tackle or to overcome or adjust a particular situation weather it’s
tempeory or permanent.
Strategic HRM or people strategy is about creating a coherent framework for employees to
be hired managed and developed to support an organisation long term goals. If helps to ensure
that the various aspects of people management work together to drive the behaviour and
climate to meet performance targets. Strengthening the employer employees relationship is the
strategic role of a human resource manager. However there’s more to be job ,than many people
realize . Human resource manager formulate workforce strategy and determine the functional
processing necessary to meet organisational goals .Their job requires expertise as an HR
generalist,which means they must be familiar with every human resources discipline.
 Features

• Strategices related to several areas of operation of the business organisation so strategic

decision making by the top level management.
• Strategic decision are excepted have an impact of organisational growth .It have a longterm
commitment.
• Strategic decision are based on the excepted behaviour of the external environment. That is
suppliers creditors govt etc..
• Strategic decision are based on the future scenario that is forecasted by management.
• Strategy is required commitment to the firm.

Strategy formulation/The process of developing a strategic plan

Strategy means future oriented plan for interacting with the environment to achieve
organisational objective. The board steps in strategic management are described below.
1. Determination of mission or purpose
The strategic planning process begins with spelling out the business mission or tentative
purpose that might be purchased in future. An organisations mission is its reason for
existence. It represents a long term vision of what the organisation seeks to do and the
reasons why it exists. A clear statement of organisations mission would help to identify the
functions it performs for the society and also it’s basic character and philosophy .To achieve
the mission, of the organisation, the top management determines the major objectives and
goals for whose service the organisational resource will be utilised.

2. Environmental Scanning
Analysis of environment provides inputs for decision making in business . Environment
comprises both internal as well as external forces. Internal environment includes business
processes, SWOT analysis of the firm, organisational culture, organisational structure,
employee morale, industrial relations etc.. external environment of a firm consist of
economical ,social , technological market and other forces with affect its functioning .The
firm’s external environment is dynamic and uncertain .The management must systematically
monitors it to determine threats& opportunities for the firm in future. Through
environment analysis the management can develop an environmental threat and
opportunity profile (ETOP) which will assess the impact of various environmental forces on
the firm .

3. Organisational analysis
In order to analyse organisational strengths and weaknesses .It is essential to know the
current domain of the firm .It includes ;
• The range of products or services provided by the firm.
• Geographic coverage of the firm -local , national or international
• Firm’s differential advantage that is the special competitive strength the firm stresses such as
fuel efficiency of its car over the cars of the the competitors.
 Organisational analysis involves a review of financial position productive quality,
marketing effectiveness ,the extent of research and development, the utilisation of human resources
.

4.Developing strategic alternative

After the identification of the environmental opportunities and threats and the organisational
strength and weakness the next task is the strategic management process are the consideration of
the strategic alternatives and the choice of the most appropriate strategy/strategies.

5.Evoluation of strategic alternative

Each strategic alternatives has its own merits and demerits which need to be analysed carefully.The
management should examine various alternative in the lite of forecasting opportunities and also it’s
strengths and weaknesses. For the choice of best alternative the Management can also use quantitative
tools of analysis such as PEST,CPM ration analysis, linear programming etc. A strategy that does not
exploit a particular advantage of the organisation over its rivals should be rejected.

6.Choice of strategy

The Choice of stage in strategic planning is to choice of an appropriate strategy for the attainment
of specified objectives. The management should select that strategic alternative which is best suited to
the organisations capabilities. In other words it must utilise the existing strengths of the organisations to
the maximum extent. New capabilities can also be acquired .But a strategic plan fully relying on the
resource or skills yet to be acquired may fail in actual practice .Treats & opportunities in the environment
degree of risk acceptable to the Management, timing of decisions etc.. are some factors which influence
the choice of a strategic alternative.

7. Execution of strategic plan

After the strategic has been finalised it must be incorporated into the operations of the
organisation. It must be translated into appropriate operational and tactical plans , programmes ,
budgets etc…so that it could be implemented. After the strategic has been put into partice ,it’s
effectiveness should be reviewed to know if it has been able to achieve the intended results.

Strategic Human Resource Management

SHRM refer to the process of developing partices , programmes and policies that help
achieve organisational objectives. What is essential is that these programmes, policies and partices need
to be aligned with organisational strategies. Strategy is a unified, environment. It is designed to ensure
that the basic objectives of the enterprise are achieved through proper execution by the organisation.

Strategic management is the process of formulating implementing and evaluating business

strategies to achieve organisational objectives. Cunningham has defined strategic management as a
manner by which organisations plan to deal with the various aspects management like perception,
divergent, thinking ,substantial resource decision making innovations taking risks and facing uncertainty.
 Strategic human resource management is to ensure that human resource management is fully
integrated into strategic planning. That HRM policies cohere both across policy areas and across
hierarchies and that HRM policies are accepted and used by line manager, as part of their every day work
.

According to Donald F Harvey strategic management is that set of managerial decisions and actions
that determine the long term performance of a corporation . It includes environmental Scanning,
strategy formulation, strategy implementation and evaluation and control.

The study of strategic management there for emphasize monitoring and evaluating environmental
opportunities and threats in the light of a corporations strengths and weaknesses.

The success of an organisation depends on the people there in . This means how they
are acquired, developed , motivated, and retained in the organisation play an important role in the
organisational success. Then this presupposes an integral approach towards human resource functions
and overall business functions of an organisation. This strategic HRM means , a strategic look at HR
functions in line with business functions of an organisation. Strategic HRM concerned with the following.

• Analysis the opportunities and threats existing in the external environment.

• Formulate strategies that will match the organisations strengthens and weaknesses with
environmental threats and opportunities. In other words make a SWOT analysis of organisations.
• Implement the strategies so formulated.
• Evaluate and control activities to ensure that organisations objective are duly achieved.

Strategic role of Human Resource Manager

Human Resource management plays significant role at all steps of strategic

management process. Strategy formulation, strategy implementation, and strategy control. The
prominent areas where the human resource manager strengthening the employer employees
relationship is the strategic role of Human Resource Manager. Human Resource Manager formulate
workforce strategy and determine the functional processing necessary to meet the organisational goals.

The strategic role of Human Resource Manager is discussed below.

1. Providing purposeful direction

The human resource manager must be able to lead people and the organisation towards, the
desired direction, involving people right from the beginning. One of the most important tasks of
a professional manager is to ensure that the mission of an organisation has been internalised by
each individual, working in the organisation. Mission of the organisation states the very purpose
and justification of its existence.
2. Building care competency
The human resources manager has a great role to play in developing core competency by
the firms . Core competence is a unique strength of an organisation which may not be shared by
others .This may be in the firm of human resource, marketing capability or technological
capability. If the business is organised on the basis of core competency it is likely to generate
competitive advantages.
3. Creating competitive advantage
In today’s globalised market place maintaining a competitive advantages is the foremost
goal of any business organisation. Thera are two important ways a business can achieve a
competitive advantages. The first is cost leadership which means the firm aims to become low
cost leader in the industry. The second competitive strategy is differentiation under which the
firm seek to be unique in the industry in term of dimensions that are widely valued by the
customers.
4. Salary &wages & benefits
The reputation and status of an organisation largely depends on the salary and wages
structure formed for the employee. In addition, the decision of the HR manager regarding the
pay scale and benefits, to the employees, affects the job satisfaction, of the worker , and the
hiring of meritorious, workers by the shortage of manpower and budget constraints should be
considered before formulating a strategic plan to provide salaries and wages and benefits to the
workers.
5. Facilitation to changes
The HR manager will be required to act as change agents , through greater involvement
in environmental Scanning and development planning. The HR functions will become more
creative and less mechanistic. It will be more concerned with substance rather than firm ,
accomplishments, rather than activities, and Patrice rather than theory. The personnel function
will be responsible for furthering the organisation not just maintaining it . HR managers will have
to devote more time to promote changes than to maintain the status quo.
6. Development of work ethics and culture
The future personnel or HR manager will have to mobilise a new work ethic so as to
assist the line managers in setting up and enforcing good quality standards. Changing work
ethics requires increasing emphasis on individuals , job will have to be redesigned to provide
challenge. Flexible starting and quitting times for employees (flexible time) may be necessary.
Focus will shift from extrinsic to intrinsic motivation change will be initiated and managed to
improve organisational effectiveness. A vibrant work culture will have to be developed in the
organisation to create an atmosphere of trust among people and to encourage creative ideas by
the people.
7. Total Quality Management
TQM is a dynamic process involving all levels in an organisation to promote never ending
improvement in the efficiency and effectiveness of all elements of a business. Total emphasizes
that department in addition to production ( for example sales and marketing, accounting, and
finance ) are obligated to improve their operations . Management emphasizes that executive are
obligated to actively manage quality through funding , training, staffing and global setting. While
there is no widely agreed upon approach . TQM efforts typically draw heaving on the previously
developed tools and techniques of quality control. Quality was a responsibility of the
Management, and an instruction to be followed by the workers . TQM is a philosophy of the
entire organisation. The development of a company wide culture for quality.
 Benefits of strategic HRM

Strategic human resource management is a process that organisations use to

manage their employees. It is a way to ensure that the organisations human resource are used in
a way that supports the organisation goals . The benefits of strategic HRM are discussed below.
• Strategic HRM can help the organisation achieve higher performance innovation and coustomer
satisfaction by aligning the HR functions with the business strategy.
• The organisation can ensure that it has right people skills and culture to execute its vision and
mission.
• Strategic HRM can also enhance the employee engagement, motivation and retention by
providing them the clear roles , expectations and rewards.
• Strategic HRM can foster a learning and development culture that enables the organisation to
adapt to changing market conditions and customer needs.
• SHRM ensures that HR partices and policies are in line with the overall strategic objective of the
organisation, enhancing efficiency and effectiveness.
• Better change management
SHRM can facilitate organisational change by preparing employees and helping them adopt
to new strategic and structures.
• Cost efficiency
Effective HR management can reduce unnecessary costs through better resource allocation
and strategic work force planning.
• Risk mitigation
SHRM can help organisations stay compliant with labour laws& regulations reducing legal
and financial risks.
• Adaptability
SHRM allows organisations to be more adaptable and responsive to change in the business
environment.
• Improved Recuritment and retention
SHRM helps attract and retain top talent by creating a more engaging work environment
and offering competitive compensation and benefits.
• Employee satisfaction
It leads to a more satisfied and engaged workforce which in turn positively impact customer
satisfaction and business outcomes.

Characteristics of Strategic HRM

Strategic Human Resource Management is an approach that align an

organisations human resource partices with its overall strategic goals and objectives. Key
characteristic of SHRM include.
• Alignment with business goals
SHRM focuses on integrating HR strategies with the organisations Strategic plan to ensure
HR partices support the achievement of business objectives.
 • Long term perspective
It takes a long term view of HR planning recognising that people are valuable assets that
require investment and development over time .
• Proactive approach
SHRM is proactive rather than reactive anticipating future HR needs and challenges and
planning accordingly.
• Customisation
It involves tailoring HR partices to fit the specific needs and goals of the organisation, rather
than adopting a one size fits all approach.
• Employee development
SHRM emphasizes the development and training of employees to enhance their skills and
capabilities which can contribute to the organisations success.
• Change management
SHRM recognises the importance of managing change effectively especially in dynamic and
competitive business environment.

• Environmental Scanning
Regularly monitoring external factors like industry trends , legal changes and workforce
demographics to adopt HR strategies accordingly.

Strategic HRM VS Conventional HRM

In traditional approach to HRM the responsibility of people management

programme resets with staff specialist in an organisation. But in SHRM the task of managing people is
vested on the managers who interact with line managers. The difference between Strategic HRM and
Conventional HRM as follows.

Conventional HRM. Strategic HRM

Traditional

• Responsibility for HRM Staff specialist. Line managers

• Focus Employee relations. Partnership with internal

& external customs

• Role of HR Transactional change Transformational change

Follower leader & initiator.

• Initiative. Slow reactive fragmented Fast proactive, integrated

• Time horizon. Short term. Short , medium, long

• Control. Bureaucratic rules policy & Organic flexible what ever

Procedures. Is necessary to succeed.

• Job design Tight division of labour, independence. Board flexible, cross ,

trained
Specialisation. Teams .

• Key investments. Capital products. People knowledge

• Accountability. Cost centre. Investment centre

• Customization. Follow standardized or one size Tailors HR partices to fit the

Fits all HR processes. Specific needs & goals of the
Organization

• Performance. May focus on operational metrics. Uses matrics and key

And basic HR task. Performance indicators to
Assess the impact of HR
Initiatives on the organisation
Strategic out comes.

Contemporary issues or barrier to the implementation of strategic HRM

The implementation of strategic Human Resource Management ca face several

contemporary issues or barriers this includes;

1. Resistance to change
Employees and even some Managers may resist change in HR partices especially if they
have been accustomed to traditional HR approaches.
2. Lack of top management support
Without buy in form top leadership it can be challenging to implement and sustain
SHRM initiative.
3. Resource constraints
Adequate resource both financial and human are required to implement and sustain
SHRM effectively.
4. Inadequate HR skills
HR professionals may lack the necessary skills and knowledge to effectively execute
SHRM strategies.
5. Technological challenges
Implementing HR technology and data analytics can be complex and costly posing a
barrier for some organizations
6. Legal and regular compliance
Adhering to changing labour laws and regulations can be challenge particularly when
trying to align HR partices with a long term strategy.

7. Resistance from unions

In organizations with labour unions SHRM initiatives ac face resistance or require
negotiations’ with union representative.
8. Globalisation
Expanding or operating in different countries may require HR strategies to adopt to
different cultural legal and labour market contexts.
9. Cultural misalignment
Misalignment between the organisational culture and the desired culture, envisioned
through SHRM can hinder implementation

10. Economic and market conditions

Economic downturn or shifts in the job market can affect the availability of skilled
labour and the ability of implement certain HR Strategies.

11. Work force Diversity

Managing a diverse workforce and ensuring inclusion can be a challenge but is

increasingly important for SHRM

12. Environmental and social responsibility

Organizations are increasingly expected to align HR Strategies with sustainability and
social responsibility goals which can pose challenges.

13. Data privacy and security

The collection and use of employee data for Strategic purposes must comply with
privacy regulations and protect sensitive information.

Types of HR Strategies

Human Resources (HR) strategies can be broadly categorized into two types:
general HR strategies and specific HR strategies.
1. General HR Strategies:

* Talent Acquisition:
These strategies focus on how the organization attracts, recruits, and onboards employees.
It includes methods for sourcing, selecting, and hiring talent.
-* Employee Development:
These strategies are concerned with the training, development, and career progression of
employees to enhance their skills and knowledge.

*Compensation and Benefits:

General strategies in this area determine how the organization structures pay, benefits, and
rewards to attract and retain employees.
*Employee Engagement:
Strategies to improve employee morale, satisfaction, and overall engagement in their work.
* Diversity and Inclusion:
Strategies aimed at creating a diverse and inclusive workplace culture.

2. Specific HR Strategies:

*Succession Planning:
A strategy for identifying and developing internal talent to fill key positions in the future.
*Performance Management:
Strategies that define how employee performance is assessed, reviewed, and improved.
*Workforce Planning:
A strategy for forecasting and aligning the workforce with the organization's goals and
needs.
*Employee Retention:
Strategies to retain top talent by addressing factors that might lead to turnover.
*Leadership Development:
Focused on nurturing leadership skills within the organization.

Specific HR strategies are often tailored to address particular challenges or goals within an
organization, while general HR strategies set the overall framework for HR management.

Knowledge Management

Before discussing knowledge management we understand the term

knowledge , knowledge worker and knowledge management.

Knowledge refers to understanding of a specific subject or things in general. If

refers to data , information, and wisdom. Knowledge may be explicit, implicit or tacit . Tacit
 knowledge is characterized by the fact that it is personal, context , specific and obviously
difficult to formalise and communication. Explicit knowledge is transmittable through any
systematic language. It is codified written down & is made available through printed media .
Implicit knowledge should be converted into explicit knowledge.

Knowledge worker is an individual who has data and information any apply them to
solve organizations problems.

Knowledge management in simple term is managing knowledge in organizations.

This way of understanding knowledge management leads a reader nowhere. Appropriately
KM may be understood as any process of practice of creating, acquiring, capturing sharing &
using knowledge in organizations. KM compromises 3 essentials.

1. Culture – Establishment of knowledge focused organizational culture.

2. Structure – The business processes and organizational structure that facilitate generation
and sharing of knowledge.
3. Technology – The enabler of KM .

Benefit of KM

KM attained wide acceptance and publicity . In fact KM has become big business for major
international consulting firms such as Ernst& Young , Arthur , Anderson & Booz – Allen & Hamilton . The
biggest benefit of KM is that it makes people in an organisation think out of the box and discover
alternatives solutions to fix a problem. Specifically KM often the following benefits to an organisation.

1. Competitive advantages
2. Attraction and retention of talent
3. Innovation through free flow of ideas .
4. Enhance customer satisfaction through streamlined response time .
5. Reduced cost improved performance, improve productivity and increase revenues.
Role of HRM
.
Knowledge is a human attitude and HR professionals are the right people who can
manage knowledge better. Role of HR in creating sorting and sharing knowledge shall be
following.
1. Attracting developing rewarding and retaining human capital
2. Recognising the importance of social capital
3. Building a knowledge focused culture.
4. Promoting a climate of commitment and trust
5. Streamlining hiring process and advising hiring specialists to employ people who can
contribute to knowledge creation and sharing.
6. Encouraging and rewarding those who contribute and share knowledge.
7. Knowledge sharing to become one of the components in appraisal
8. Converting the organisation into a learning one
9. Creating appropriate forums such as workshop seminar & conferences where employees
can share their knowledge with peers.

Knowledge Resources

“Knowledge resources” typically refer to various types of information, data,

tools, or references that individuals or organizations can use to acquire, share, or leverage
knowledge. These resources can include books, articles, databases, experts, software, online
platforms, and more, which help in learning, problem-solving, decision-making, and
innovation.

Knowledge resources importance

1. Learning and Growth:

They enable individuals and organizations to acquire new information, skills, and
insights, fostering personal and professional development.

2. Innovation:
Access to knowledge resources can stimulate creativity and innovation by providing
inspiration and solutions from various sources.

3. Problem Solving:

Knowledge resources offer valuable information and guidance for addressing

challenges, making informed decisions, and finding solutions.

4. Decision-Making:
Informed decisions rely on accurate and up-to-date knowledge, which can be
obtained through resources like research, reports, and expert opinions.

5 Competitive Advantage:
Organizations that effectively manage and utilize knowledge resources gain a competitive
edge, as they can adapt to changing environments and innovate faster.

6. Efficiency:

Efficient access to knowledge resources streamlines work processes and reduces the time
needed to perform tasks or research.

In essence, knowledge resources are essential for personal and organizational success, as
they facilitate learning, problem-solving, innovation, and informed decision-making.
 Process of Knowledge Management

Knowledge management is a systematic process that involves capturing,

organizing, storing, and distributing an organization’s knowledge to enhance its
effectiveness and competitiveness. Here are the key steps in the process of knowledge
management:

1. Identification:
Identify the knowledge that is valuable to your organization. This includes both explicit
knowledge (e.g., documents, databases) and tacit knowledge (e.g., expertise and
experience of employees).

2. Capture:
Collect and document knowledge from various sources, including employees,
documents, databases, and external resources. This can involve interviews, surveys,
documentation, and data extraction.

3. Storage:
Establish a secure and accessible repository for storing knowledge. This can include
databases, intranet platforms, document management systems, and more. It should be
organized for easy retrieval.

4. Organization:
Categorize and structure knowledge to make it easily searchable and usable. This can
involve tagging, metadata, taxonomies, and creating a logical hierarchy.

5. Retrieval:
Implement efficient search and retrieval mechanisms, enabling employees to easily find
the information and knowledge they need.

6. Sharing:
Encourage a culture of knowledge sharing within the organization. This can involve
creating forums, wikis, and other collaborative platforms for employees to share their
insights and experiences.
 7. Validation:
Ensure that the knowledge is accurate and up-to-date. Regularly review and update
content to maintain its relevance and reliability.

8. Distribution:
Make knowledge readily available to those who need it. This might involve training,
newsletters, or integrating knowledge resources into the daily workflow.

9. Utilization:
Encourage employees to apply the knowledge in their work. This might involve creating
guidelines, best practices, or providing tools that facilitate knowledge application.

10. Feedback:
Establish a feedback loop to capture insights and experiences gained from applying
knowledge. This can help improve the knowledge management process.

11. Continuous Improvement:

Regularly review and enhance your knowledge management strategy based on
feedback and changing organizational needs.

12. Measurement:
Implement metrics to assess the effectiveness of knowledge management, such as
improved decision-making, reduced duplication of efforts, or increased innovation.

Knowledge management is an ongoing process that requires commitment, cultural support,

and the right tools to be successful. It helps organizations leverage their intellectual assets
to make more informed decisions, improve efficiency, and foster innovation.

Talent Management

Talent management is a strategic approach to attracting, developing, retaining, and

deploying the skills and competencies of an organization’s workforce. It encompasses a range of
activities and practices designed to maximize the potential of employees and achieve the organization’s
objectives. Here are the key components of talent management:
1. Recruitment and Acquisition:
Identifying and attracting top talent through effective recruitment strategies. This involves
sourcing, interviewing, and hiring individuals with the right skills and cultural fit for the
organization.

2. Onboarding:
Providing a comprehensive orientation and integration process for new employees to ensure a
smooth transition into the organization and alignment with its culture and goals.

3. Performance Management:
Establishing clear performance expectations, regular feedback, and evaluations to help
employees excel in their roles. This often includes setting goals, performance appraisals, and
development plans.

4. Learning and Development:

Offering training, learning opportunities, and development programs to enhance the skills and
capabilities of employees. This can include workshops, courses, mentoring, and coaching.

5. Succession Planning:
Identifying and grooming future leaders within the organization. This ensures that there is a
pipeline of talent ready to fill key positions as they become available.

6. Career Development:
Providing opportunities for employees to advance in their careers within the organization. This
includes pathways for advancement, promotions, and lateral moves.

7. Employee Engagement:

Fostering a work environment that motivates employees, recognizes their contributions, and
encourages their loyalty and commitment to the organization.
 8. Retention Strategies:
Implementing initiatives to keep high-potential and high-performing employees within the
organization. This can include competitive compensation, benefits, work-life balance, and a
positive work culture.

9. Talent Analytics:
Using data and analytics to make informed decisions about talent management. This can help in
identifying trends, gaps, and areas for improvement.

10. Diversity and Inclusion:

Promoting diversity and inclusion within the workforce to ensure a broad range of perspectives
and talents are leveraged for the benefit of the organization.

Talent management is essential for organizations looking to remain competitive and adapt to changing
business environments. It involves not only attracting and retaining the right people but also developing
their skills and providing opportunities for growth, ultimately contributing to the organization’s long-
term success.