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CHANGING ENVIRONMENT AND

ROLE OF HUMAN RESOURCE


MANAGEMENT
IMPORTANT CONCEPTS
 ENVIRONMENT
 ROLE
 CONCEPT
 Do you remember the concept of
“System”?
CHANIGING ENVIRONMENT OF
HRM
1.Globalization trends-Competition and
outsourcing
ASPECT MANIFESTATION
Ownership Dell –Production in
China
Sales expansion Walmart in South America
New foreign products and cut Aravind mills
labor costs
Forming partnerships IBM PC division to Lenovo
2.TECHNOLOGICAL TRENDS
2.Technological Trends

◦ PDAs
◦ Indian Railways
◦ Airdeccan
3.TRENDS IN NATURE OF WORK
 High tech jobs- Knowledge intensive high
tech manufacturing jobs replace factory
jobs
 Service jobs-Producing and delivering
servcies-Just in time manufacturing-
Leivstrauss-Customized orders-Dell
 Knowledge work and Human -Capital
Jobs require more education and more
skills-Reading, Mathematics and
Communication skills
Trends in nature of work
 Scenario- Computerization of customer
relationship in a bank-Associated change
in the job-new training-sales training-
more authority to make decisions- wage
hike-Result- more profit
4.WORK FORCE DEMOGRAPHIC
TRENDS

 Challenges of diverse workforces


 Age-Gender-Culture-Language
CHANGING ROLE OF HRM

 Evolution of Personnel-HR-HRD-Strategic
HR
Strategic Human Resource
Management
 Strategic HRM is a part of Strategic
Planning

 What is strategic plan?


Strategic HRM
 “Formulating and executing human
resource policies and practices that
produce the employee competencies and
behaviors the company needs to achieve
its strategic aims”
 Partnering with top managers in both
designing and executing company’s
strategies
 HR managers- departmental plans and
accomplishments in measurable terms
Creating High Performance Work
Systems
 Strategic HRM- Productivity and
Performance
 Globalization-Increased competition-
Performance at low costs-Three ways:
◦ Technology
◦ Effective HR practices (Testing and Training)
◦ Instituting high performance work systems
Managing with Technology
 Application of Technology to improve HR’s
performance-4 ways:
 Self-Service-Intranet-Dell-ESS
 Call Centers-Centralized-Answer queries
 Productivity improvement-Internet and computer
based systems-HRIS
 Outsourcing-Access to employer’s hr
information database to specialist service
providers-Payroll, benefits, applicant testing and
screening, reference checks, exit interviews,
wellness programs, and employee training
 Kelly Services, Mafoi, Husys
Effective HR Practices

 Screening applicants through personality


tests- better performance
 Well trained perform better than
untrained
 Safe workplaces-low accident costs
High Performance Work Systems
 “An integrated set of human resource management policies
and practices-Produce superior employee performance”
 Features:
◦ Employment security
◦ Selective hiring
◦ Extensive training
◦ Self managed teams and decentralized decision making
◦ Reduced status distinctions between managers and workers
◦ Information sharing
◦ Pay for performance rewards
◦ Transformational leadership
◦ Measurement of management practices
◦ Emphasis on high quality work
Result
 More qualified applicants per position
 More employees hired based on
validation selection tests
 More hours of training for new
employees
 High% of employees receiving regular
performance appraisals