HR Matrix, Stakeholders, Line vs

Staff, Changing Environment &

Role of HRM and Competitive
Challenges
Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA,
PhD(Mgt)
Professor
Al-Qurmoshi Institute of Business
Management, Hyderabad - 500005

Four Core Concepts of HR Matrix

(i) There should be a fit between stage of organization &

stage of development of HR resources function that

supports it
At its most sophisticated, an organization measures the
costs and efficacy of its HR programs and chooses
whether to outsource them or to perform them in house
(ii)Every time a human resources function is in transition
between one stage & another, a particular problem to be
solved
Between Stages I and II, the problem is "growth."
Between Stages IV and V, the problem is "cross-functional
integration."
If we can identify what stage HR organization is in, we can
predict what problem it will face next.

Four Core Concepts of HR Matrix (Contd.)

(iii)The six strategic components of human resources

management are:
Manager awareness,
How the HR function is managed,
What the portfolio of programs is,
How information technology is used,
The skills of the HR professionals, and
Awareness of the business environment.
If we assess HR function along these six dimensions, we
can identify both strengths and weaknesses.
(iv) Balance is a concept that applies to human resources
functions as well as people.
All six strategic components should be roughly at the
same level.

Line Vs Staff Management

Line and staff management has two separate hierarchies:
(i) The line hierarchy in which the departments are

revenue generators (manufacturing, selling), and their

managers are responsible for achieving organisations
main objectives by executing the key functions (such as
policy making, target setting, decision making).
(ii) The staff hierarchy, in which the departments are
revenue consumers and their managers are responsible
for activities that support line functions (such as,
accounting, maintenance, HRM, Production Planning,
Purchasing, Finance, etc.,).
A line manager may have direct control over staff
employees but a staff manager may have no such power
over the line employees

Changing Environment & Role of HRM

Environment' here refers to the "totality of all

factors which influence both the organization and

personnel sub-system
External Factors influencing the HRM
Function
Technological Factors

Economic Challenges
Political Factors
Social Factors
Local and Governmental Issues
Trade Unions
Employers Demands
Workforce Diversity

Changing Environment & Role of HRM

(Contd.)
Internal Factors influencing the HRM Function
Mission
Policies
Organizational Culture
Organization Structure
HR System
Each of the above factors separately or in

combination can influence the HR function of any

organization.
The job of a HR manager is to balance the demands
and expectations of the external groups with the
internal requirements and achieve the assigned goals
in an efficient and effective manner.

Competitive Challenges Influencing Human Resource

Management

Three competitive challenges that companies

now face will increase the importance of

human resource management practices:
the challenge of sustainability,
the global challenge,
the technology challenge.

Sustainability Challenge

Traditionally, sustainability has been viewed as one aspect of

corporate social responsibility related to the impact of the

business on the environment.
Sustainability is the ability of a company to survive in a
dynamic competitive environment.
It also refers to a companys ability to make a profit without
sacrificing the resources of its employees, the community, or
the environment.
Company success is based on how well the company meets
the needs of its stakeholders.
Stakeholders
The various interest groups who have relationships with, and
consequently, whose interests are tied to the organizations
success (e.g., employees, suppliers, customers, shareholders,
community and Government and Government Agencies).

The Global
Challenge
Companies are finding that to survive they must

compete in international markets as well as fend off

foreign corporations attempts to gain ground in
ones country.
To meet these challenges, the businesses must
develop global markets, use their practices to
improve global competitiveness, and better prepare
employees for global assignments.
Every business must be prepared to deal with the
global economy.
Global business expansion has been made easier by
technology.
The Internet allows data and information to be
instantly accessible and sent around the world.

The Technology Challenge

Technology has reshaped the way we play,

communicate, plan our lives and where we work.

The Internet has created a new business model
e-commerce, in which business transactions and
relationships can be conducted electronically.
customers can now read many local newspapers online.
They can send online greeting cards.
Through the Web we can purchase clothes, flowers, and
airline tickets and even have someone pick up groceries
for us.
Companies can connect with job candidates across the
world on job portal, and employees can connect with
friends, family, and co-workers using social networking
site.

Challenges to HRM Practices

and Philosophy
Developing human resources
Responding to the Market
Containing Costs
Increasing Productivity
Managing Changes

Role of HR management is:

a) Boosting productivity,
b) To be more responsive and innovative and
c) To be more integrated.