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HR Strategies
By Manish Bhalla

Recruitment and Retention Human Resource Acquisition

Todays 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.

Organizational goals and objectives HR planning Alternatives to Recruitment Contingent Workforce Recruitment

Internal Sources Internal methods of recruitment

External Sources Employee Requisitions External methods or recruitment

Application pool Initial screening

Selection methods

Rejected candidates

Selected candidates Job offer

Influences 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 Recruitment

-Organizational databases

Internal sources


-Job posting and bidding -Inside moonlighting - Informal methods


-Direct applications

-Employee referrals & recommendations

-Professional association

External sources


-Employment agencies
-Executive search firms -Advertisements - Campus recruitment

Employer Branding

E-recruitment (Job portals & Career websites)

New Approaches To Recruitment

Special Events Recruiting

Contest Recruitment

Need 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.

Performance improvement
Opportunities for personal growth Skill updating

Purposes of Training & Development

Preparation for promotion

Solving organizational problems New employee orientation

Advances in technology
Work redesign

Employee mobility

Reasons T&D significance

Workforce diversity Mergers and acquisitions Re-structuring

HRM Approaches and Training and Development in Organizations

HRM Approaches Human Capital Approach T & D in Organizations Training is an investment in human resources that gives returns in the form of increased productivity Training results in the development of those skills and competencies in employees that are unique and superior to competitors, leading to competitive advantage Dependency relationship between training and business strategy of the firm

Strategic Framework

Contingent Approach

Performance review

(Future focused)

OBJECTIVE (Emphasis on integrating organizational, team, and individual objectives Performance measures (Competency requirements as well as quantified measures

Corporate alignment (Integrated business-driven system aimed at organizational and people development)

Features of PM

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

Ownership (Owned by management) line Reward Linkage (Do not have direct link to reward)

Rating system

(Joint or participative process, ratings less common)

Human resource planning Internal employee relations

Recruitment and selection

Compensation and reward

Objectives of PM

Personnel decisions

Training and development Feedback, motivation, and development

Career planning and development

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

Competitive Status of the firm (Competitive Advantage)

Organizational Strategies

Needed Employee Characteristics

HR Strategy

Aligning Performance Management

Inception (Start-up)


Value creation

- Innovative - Risk-taking - Long-term orientation - Flexibility - Co-operative

Focus on exploratory knowledge of employees Focus on exploitative knowledge Harvest strategy to maintain competitive status

Qualitative methods



Value accumulation

Quantitative methods



Value maintenance

- Efficiency -Results with low level of risk

Qualitative methods

Strategic Performance Management System

Step 1 Step 2 Step 3

Identify Competitive Status of the Firm

Internal analysis of strengths and weaknesses of the organization

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

Align the Performance Management System

- Define performance criteria - Select the type of appraisal method

Fair pay in line with KSA Provide employee social status

Attract and retain highperforming employees

Enhance cooperation and collaboration among team members

Objectives of CRM

Motivate employees towards higher performance

Align employee efforts with achievement of organizational objectives

Reinforce desirable employee behavior Communicate to the employee his worth to the organization

Classification of Rewards
Financial Direct (Wages, salaries, incentives, bonus, etc.) Indirect (Benefits) Total Compensation Satisfaction derived from job

Praise and recognition

Base Pay

-Wage - Salary
Direct Variable Pay - Individual incentives - Group/team incentives - Organization-wide incentives Mandatory Benefits - Provident fund - Gratuity - Maternity leave - Health plans - Medical leave Voluntary Benefits - Paid holidays - Family-friendly benefits - Retirement benefits, etc.

Components of Financial Compensation



Individual based compensation Time orientation

Aggregate incentives

High-tech firms compensation strategies

Risk sharing

Market driven pay Higher discretion

Non-Traditional Investment Approaches

Investment in Disabled Employees
Insurance Policies Ergonomically designed job facilities Rehabilitation Programs (Exercise, Nutrition and Relaxation)

Investment in Employee Health

Increasing the quality of nutrition (Free meals) Providing basic medical care Medical clinics at the plants Reduction of smoking through prohibition at workplace and smoking cessation programs Experimental designs and control groups Fitness centers and physical condition programs On-site health clinics During economic downturns Stockpiling a limited number of high quality key personnel for future use Results in regular age distribution to overcome disproportionate numbers of older workforces

Countercyclical Hiring

Knowledge 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 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 Leader

Leadership can be a crucial issue in negotiating the teams 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 Life experiences


Geographic location Ethnicity Race

Sexual orientation Marital status Gender

Mental/ physical qualities Behavioral style


Parental status Income Work style


Work experience

The responsibility of all in the organization and not just of the personnel function

Internally driven, externally imposed


Process of Managing Diversity

Focused on total culture of the organization rather than just on the systems used

Focused on individuals rather than groups

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