HUMAN RESOURCE MANAGEMENT

AN
ASSIGNMENT

ON

PERSPECTIVES OF HRM

SUBMITTED TO: SUBMITTED BY:

MR.FREDY ZAVERI BHESANIA SHAISHAV

ROLL NO-06

SEC-A

DBIM, SURAT

DEPARTMENT OF BUISNESS AND INDUSTRIAL MANAGEMENT

VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT

YEAR 2010-2011
HRM PERSPECTIVES:

ABROAD

(A) The Harvard Framework/perspective:

It was developed by Beer et al in 1984. It is based on the belief that the

problems of historical personal management can only be solved, when
general managers develop a view point of how they wish to see employees
involved in and developed by the enterprise and what HRM policies and
practices may achieve those goals. Without either a central philosophy or a
strategic vision-which can be provided by the general managers-HRM is
likely to remain a set of independent activities, each guided by its own
practices and traditions.

(a) Line managers accept more responsibility for ensuring the alignment of
competitive strategy and personnel policies;
(b) The personnel function has the mission of setting policies that govern
how personnel activities are developed and implemented in ways that
make them more mutually re-enforcing.
Following figure explains that the HRM policy should evolve taking into
consideration stakeholder interest and situational factors, which will lead to
HRM outcomes like commitment, congruence and cost effectiveness and
societal well-being which in turn will impact the stakeholder interest and
situational factors.

STAKEHOLDER
INTERESTS HRM policies HRM Long-term
outcomes
SHAREHOLDER Choices Consequence
Commitment
MANAGEMENT HR flow Individual well-
Competence
EMPLOYEE GROUPS Work system Being
Congruence
COMMUNITY Reward Societal well

-being

Situational factors

Workforce characteristic

Management
philosophy

Unions
(B) WALTON’S PERSPECTIVE:

He stated that the new HRM model, which is composed of policies that
promote mutuality – mutual goals, mutual influence, mutual respects,
mutual rewards, and mutual responsibility. The theory propounds that
policies of mutuality will elicit commitment which in turn will yield both
economic performance and greater human development.

(C) DAVID GUEST’S PERSPECTIVE:

He developed Harvard model further by defining four policy goals

1. Strategic integration- the ability of the organization to integrate
HRM issues into its strategic plans

2. High commitment – behavioral commitment to pursue the agreed

goals arid attitudinal commitment reflected in a strong identification with the
enterprise.

3. high quality- refers to all aspects of managerial behavior that

bear directly on the quality of goods and services

4. Flexibility-functional flexibility and the existence of an adaptable

organization structure with the capacity to manage innovation.

(D) KAREN LEGGE’S PERSPECTIVE:

Karen legge had defined the HRM theme that human resources
policies should be integrated with strategic business planning and used to
reinforce an appropriate organizational culture, that human resources are
valuable and a source of competitive advantage that they may be tabbed
most effectively by mutually consistent policies that promote commitment
and which, as a consequence, foster a willingness in employees to act
flexibly in the interest of the organization in its pursuit for excellence.

He specifies three elements of HRM:

a. HR policies should be integrated with integrated with strategic
business planning and should be used to reinforce an appropriate
b. HR is valuable and a source of competitive advantage.
c. HR can be tapped most effectively, by mutually consistent
policies which promote commitment and foster a willingness in employees
to act flexibly in the interests of the adaptive organization’s pursuit
excellence.

(E) JHON STOREY’S PERSPECTIVE:

 He specifies four elements of HRM.
a. A set of beliefs and assumptions
b. A strategic thrust embodying decisions about people
management
c. The central involvement of line managers , and
d. Dependence upon a set of levers to determine the employment
relationships.
He differentiated between ‘hard’ and ‘soft’ versions of HRM. The
version has its root in the human relations school. It has focus on
communication, motivation and leadership. On the other hand, the
hard version stresses the quantitative, calculative and business-
strategic dimensions of managing the head count resource
rationally.

(F) KEITH SISSON’S PERSPECTIVE

He suggested that there are four main features associated with HRM
a. Stress on the integration of personnel policies both with one
another and with business specialists.
b. The focus of responsibility for personnel management no
longer resides with HR specialist.
c. Focus shifts from manager, trade union relations to
management, employee relations and from collectivism to individualism.
d. stress on commitment and the exercise of initiative, with
managers now donning the role enabler, empower and facilitator.

(G) SCHULER’S PERSPECTIVE—THE ‘5P’ MODEL OF STRATEGIC

HRM:

Strategic HRM means “getting everybody from the top of the bottom
doing things to implement the strategy of the business effectively”. The
strategic business needs reveal the overall plan of the company for
survival, growth, adaptability and profitability. Attempts can be made to
translate business needs into statements of strategic business
objectives such as focus on growth.

The first ‘P’-HR philosophy: This philosophy specifies as to how the

people of the company are to be treated and managed.

The second ‘P-HR Policies’: HR policies stem from the HR philosophy.

They are the guidelines for action relating to people vis-à-vis different
business issues. Thus, to improve organizational performances, HR
policies are expressed as shared values.

The third ‘P’-HR programmes: HR programmes are evolved to initiate

and sustain efforts directed towards change in congruence with
 strategic needs of the business. They are aimed at varied issues such
as projected skill shortages or surplus.

The fourth ‘P’- HR Practices: these are evolved to nurture leadership,

managerial or operational roles. The roles and responsibilities of first-
line supervisors may be analyzed under these practices which include:
induction training, discipline, keeping production record and team
briefing. HR practices motivate desired role behaviors in the company.

The fifth ‘P’- HR Processes: these are needed for the formulation and
implementation of the other HR activities. They define how these
activities are carried out.

HRM PERSPECTIVES IN INDIA:

(A) BHATNAGAR AND SHARMA’S MODEL:

Jyotsana Bhatnagar and Anuradha Sharma proposed a model of

strategic HRM for Indian organizations based on a survey of literature.
The model is depicted in the following figure

(1) pillars of the model:

(a) Organizational commitment: it is influenced by HR policies and

affects work outcomes such as financial turnover and job
performance.

(b) Organizational learning capability: it is positively related to

HRM.It makes employees committed to the organization.

(C)Strategic HR roles: HR policies are related to employees

commitment. They can be designed to maximize organizational
integration and quality of work.

(D) Psychological empowerment: It is panacea for improving

employee commitment and innovation.

(B)PAUL AND ANANTHARAMAN’S MODEL:

They have proposed HR- linkage model based on a survey of

literature. As, shown in the following figure, the model involves three
variables: causal variables, intervening variables, and outcome
variables.
 Variables in proposed model:
HRM practices are causal variables that have direct linkages with
business strategy and direct as well as indirect linkages with immediate
and final outcome variables; there exists direct linkage between causal
variables and intervening variables. The intervening variables include:
employee competence, teamwork, organizational commitment and
customer satisfaction. The immediate outcomes include: employee
retention employee productivity, product quality speed of delivery,
operating cost and customer satisfaction. The final outcomes are: net
profits, return and market value interaction.

EMPLOYEE
BUSINESS EMPLOYEE
COMPETENCE
RETENTION
STRATEG
Y
TEAMWORK SALES
EMPLOYEE
HRM
PRODUCTIVITY
PRACTICES
ORGANIZATIONAL NET
PROFITS
COMMITMENT PRODUCT
QUALITY

RETURN ON
CUSTOMER INVESTMEN
SPEED OF T
ORIENTATION DELIVERY

MARKET
OPERATING VALUE
COST

CUSTOMER
SATISFACTION

Impact of Intervening variables on outcomes

 The interactive relationship of the intervening variables, viz., competence,
teamwork, organizational commitment and customer orientations, influence
employee retention, employee productivity, product quality, speed of delivery and
operating cost, which in turn will lead to financial performance in terms of sales,
net profits, return on investment and market value. Hence the immediate results
of HRM practices would be to develop and maintain employees with
competence, teamwork, organizational commitment and customer orientation.