UNIT - IIUNIT - II

HR Strategies HR Strategies

ByByManish BhallaManish Bhalla

Recruitment and RetentionRecruitment and RetentionHuman Resource AcquisitionHuman Resource Acquisition

• Today’s business environment is drastically different from that a few years ago.

• The dominant factor for business is no longer economics or technology; it is ‘demographics’.

• Firms and HR managers are faced with the prospect of a shortfall of qualified managerial talent because there are not likely to be enough people available to replace retiring managers.

• There are not only fewer people, but also fewer people with the skills in demand.

• Hiring has become tougher with a large number of firms trying to tap into an increasingly limited talent pool.

• Acquisition of human resources is the process by which a firm hires employees to ensure that the required number and types of employees are available to perform organizational activities and accomplish organizational objectives successfully.

Internal Sources External Sources

Application pool

External methods or recruitment

Internal methods of recruitment

Recruitment

Employee Requisitions

Initial screening

Selection methods

Selected candidatesRejected candidates

Job offer

Alternatives to RecruitmentContingent Workforce

HR planning

Organizational goals and objectives

Influences on StaffingInfluences on Staffing

Environmental Factors

Environment External to the Firm

-Labour market conditions

- Government regulations and legal considerations

Environment internal to the Firm

-Organizational policies and practices

- Organizational image

- Job attractiveness

Sources and Methods of RecruitmentSources and Methods of Recruitment

Recruitment

External sources

Internal sources

-Direct applications

-Employee referrals & recommendations

-Professional association

-Employment agencies

-Executive search firms

-Advertisements

- Campus recruitment

-Organizational databases

-Job posting and bidding

-Inside moonlighting

- Informal methods

SO

UR

CE

SSO

UR

CES

Methods

Methods

Need and Purpose of Training and DevelopmentNeed and Purpose of Training and Development• To successfully manage the environmental changes organizations must make the right choice while

making decisions.

• Organizations must keep themselves informed and updated in their field.

• Managers also have responsibility of managing an ever-changing workforce operating in a dynamic environment.

• In order to achieve goals, organizations require employees who have the relevant KSA.

• Firms seek to ensure that they have the resources with required skills & competencies.

• Even if organization finds the right skills, there is no guarantee that these skills will continue to be relevant and important for organizational goals.

• The coming years are likely to herald new jobs that will require new set of skills.

• With the resurgence of the manufacturing sector, the country is faced with a shortage of vocationally trained workforce.

• All of these changes and their consequences have made it imperative for firms to make considerable investments in HR training and development.

Preparation for promotion Solving

organizational problems

Skill updating

Workforce diversity Mergers and

acquisitions

Work redesign

HRM Approaches and Training and Development in HRM Approaches and Training and Development in OrganizationsOrganizations

HRM Approaches

Human Capital Approach

Strategic Framework

Contingent ApproachDependency relationship between training and business strategy of the firm

Training results in the development of those skills and competencies in employees that are unique and superior to competitors, leading to competitive advantage

Training is an investment in human resources that gives returns in the form of increased productivity

T & D in Organizations

Ownership

(Owned by line management)

Frequency(Continuous review with one or more formal reviews in a year

Performance measures(Competency requirements

as well as quantified measures

Rating system(Joint or participative process, ratings less

common)

Performance review(Future focused)

Training and development

Personnel decisions

Recruitment and selection

Career planning and development

Internal employee relations

Classification of Performance Management Objectives

Evaluative objectives

- Validating selections- Bonuses and incentives- Promotions- Salary increases

Manager is a judge and makes reward decisions

Development objectives

- Feedback- Motivation- Training & Development- Career planning- HR planning

Manager is a coach who helps in performance improvement

Strategic Linkage to Performance Management Systems

Organizational Life Cycle

Inception(Start-up)

Growth

Maturity

Aligning Performance Management

Qualitative methods

Quantitative methods

Qualitative methods

Competitive Status of the

firm(Competitive Advantage)

Weak

Strong

Stable

Organizational Strategies

Value creation

Value accumulation

Value maintenance

Needed Employee

Characteristics

- Innovative- Risk-taking- Long-term orientation

- Flexibility- Co-operative

- Efficiency-Results with low level of risk

HR Strategy

Focus on exploratory

knowledge of employees

Focus on exploitative knowledge

Harvest strategy to maintain

competitive status

Strategic Performance Management SystemStrategic Performance Management System

Identify Competitive Status of the Firm

Internal analysis of strengths and weaknesses of the organization

-Setting corporate strategy- Setting HR strategy- Determine needed employee behaviors

Determine Strategies

- Define performance criteria- Select the type of appraisal method

Align the Performance Management System

Step 1 Step 2 Step 3

Align employee efforts with achievement of

organizational objectives

Motivate employees towards higher performance

Attract and retain high-performing employees

Reinforce desirable employee behavior

Provide employee social status

Classification of RewardsClassification of Rewards

Total Compensation

Non-financial

Financial

Praise and recognition

Direct(Wages, salaries,

incentives, bonus, etc.)

Indirect(Benefits)

Satisfaction derived from job

Components of Financial

Compensation

Indirect

Direct

Voluntary Benefits- Paid holidays- Family-friendly benefits- Retirement benefits, etc.

Base Pay-Wage- Salary

Variable Pay- Individual incentives- Group/team incentives- Organization-wide incentives

Mandatory Benefits- Provident fund- Gratuity- Maternity leave- Health plans- Medical leave Benefits

Aggregate incentives

Risk sharing

Market driven pay

Non-Traditional Investment ApproachesNon-Traditional Investment Approaches

Knowledge ManagementKnowledge Management• Hr managers have to be creative in seeking ways to generate, capture, validate,

transfer, apply and integrate knowledge throughout the network to leverage available intellectual corporate.

• Talent generates intellectual capital, the most potent business resource today.

• This knowledge can be thought of as codified in written documents or graphical presentations, or ‘tacit’ in informal routines and implicit know-how.

• Knowledge may refer to what we know (facts), how and why we know it (research and analytical methods, mental models and paradigms), and whom we know (relationship networks).

• The challenge for the globally competitive organization is to minimize barriers to knowledge transfer like ambiguity, lack of motivation, lack of persistence, etc.

• The transfer of critical capabilities cannot happen without a high level of collaboration across the enterprise.

Talent ManagementTalent Management• The main success factors of talent management skills are accelerating the development of

global mindsets and skills throughout the organization.

• Their commitment should be – to hire– to develop– to motivate and– retain talented people

who have the capacity to operate and lead in a complex and demanding global business environment

• The HR managers should ask these questions:– What people capabilities are needed in the organization if global strategy is to be

realized, and when?– Where these capabilities are located?– They should know where the required global talent is.– How mobile is it?– What skill gaps need to be filled, and where?– What moves can be made to partner with functional line managers to recruit, select,

assign, develop and retain local and global talent?– How much technology can be leveraged to track, train and network to generate

collaborative advantages?

Role of Strategic HR LeaderRole of Strategic HR Leader• Leadership can be a crucial issue in negotiating the team’s relationship with the

organization and beyond the organizational boundaries.

• Expectations about the role of the team leader are likely to differ in international teams from sensitivity to flexibility to leadership development.

• Universally desirable characteristics appear to be where the leader is:

– Visionary, a team-builder– Rational, analytical, intelligent– Team-oriented and collaborative– Has integrity– Is decisive

• In UK teams expect casual leadership, French teams expect directive & autocratic leadership, Swedish teams expect their leaders to be the first among the equals, Germans may expect a formal hierarchy with consensus.

• Asian teams expect a leader to offer consensus whereas Latin and Arab cultures may expect a more familial approach from their leader.

The Primary and Secondary Dimensions of Diversity

First language

Sexual orientation

Work experienceWork style

Occupation

Parental status

Marital status

Religion

Ethnicity Race

Behavioral style

Life experiences

Education

Geographic location

Income

Gender Age

Mental/physical qualities

Focused on individuals rather than groups

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