SHRM
means formulating and executing human resource policies and practices that
produce the employee competencies and behaviors the company needs to achieve
its strategic aims. Human resource management today is characterized by the
emphasis on the integration of the traditional activities as well as human resource
management’s involvement in overall and organizational planning and change.
(a) It
focuses on individual employees rather than on collective management- trade
union relations.
(b)
It
involves all managerial personnel's.
(c) It
aims at developing such human resource management system in which activities
such as recruitment, selection, training and development, performance
evaluation and compensation work together synergistically with a strategy to
focus.
A
very common term in business is strategic planning. The strategic plan serves
as a guide for businesses to achieve their mission. The standard strategic plan
presents an organization's strengths and weaknesses, the environment in which
the organization operates, and the goals the organization desires to achieve
within a specific time frame. In order to achieve the desired goals that are
presented in a strategic plan, it is important that the organization take a
strategic approach to human resource management.
GENESIS AND GROWTH OF HUMAN RESOURCE MANAGEMENT IN INDIA
STAGE ONE: Can be traced way back
during the first world-war and initiated by Tata Iron And Steel Company appointing
the first labor officer in 1937.
After
the royal commission on labour, it recommended the appointment of labor
officers in order to protect the workers interest. Such labor officers were mainly concerned
with the recruitment and welfare of the workers for the promotion of amicable
settlement between the management and workers.
STAGE TWO: Different statues during the
independence; such as factories act 1948 made it mandatory for the factory’s
employing more than 500 workers to appoint a qualified welfare officer. Similarly plantation labour act 1931 and the
mines act 1952 made the appointment of labor officers mandatory.
STAGE THREE: Establishment of Indian
institute of personnel management in Calcutta and national institute of labour
management Bombay paved a way for a new era in the field of human resource
management in India.
STAGE FOUR: Developments during 1960s;
three major areas of practice i.e labour welfare, industrial relations and
human resource administration emerged as a complimentary part of human resource
management. Hence, professionalism in
human resource management developed in 1970s witnessing a marked shift from a
welfare management to higher efficiency management.
STAGE FIVE: Growing awareness about
the significance of the human side of administration has led to the development
of human resource management as a distinct discipline and a profession in
1990s.
FORECASTING LABOR DEMAND
Forecasting
labor demand is
a process of estimating the future human resource requirement of the right
quality and the right number of employees. So, with that example, if you were
the human resource director of an automobile company, and that company wanted
to increase production of its top-selling hybrid car, it would be your
department's job to ensure that you hired the right number of people in order
to meet that production demand. In addition, due to the fact that the car is a
hybrid and requires specialty engineers, it would be important that the
individuals you hire to meet that production demand also meet the skill
requirement to complete that task.
Analyzing
the Present Labour Supply
Labor
supply is
the availability of suitable human resources in a particular labor market.
Labor supplies are constantly changing. In the twenty-first century, it changes
more so than ever due to the fact that people are now more mobile and will move
from city to city. In addition, it is more likely in this current labor era to
change careers multiple times in a professional lifetime. With that being said,
human resource directors must constantly analyze the labor supply trends in
their particular industry, location, and economic environment.
Balancing
Labour Demand and Supply
In
the same grain as forecasting labor demand, it is important that the human
resource director properly balance labor demand with labor supply. Let's go
back to the example that was provided regarding the increased production of
hybrid cars at your factory. As the human resource director, you would be
required to make sure that you have a proper number of employees who are
qualified to build a quality hybrid car. Now, if your factory was located in an
area that had a high population of qualified car manufacturers with hybrid
manufacturing experience, then your job would be relatively easy to achieve.
However, what would happen if that population was not as easily available?
Industrial
Revolution
The
Industrial Revolution led to the decline of the craft system. Master artisans
and their apprentices and journeymen were replaced with large factories that
fundamentally changed the nature of work. Instead of highly skilled masters
teaching apprentices a trade, most production shifted into large factories
where the manufacture of a product was divided up between relatively unskilled
workers.
Unlike
the craft system, work was very specialized, where a complex task was broken
down into a series of simpler ones. For example, one group of workers may cut
boards for a piece of furniture, different sets of employees may put different
parts of furniture together, a different group may paint or stain the wood and
a final group may do any upholstering.
What
did this mean for human resource management? A new class of employee appears in
the workplace - the manager. Unlike under the craft system, managers were often
not owners of the company. Some managers had responsibility for supervising
employees in their work task. Unlike under the craft system, however, it was
not necessarily the case that managers actually knew how to do the work they
were supervising. Their role was to ensure employees did their work.
Other
managers were responsible for administrative support functions, including what
we know as HR functions. For example, workers needed to be selected for
employment. Also, since workers in the factories were provided a wage in
exchange for their labor, development of payroll systems and practices was
required.
Scientific
Management
In
the late 19th and early 20th century, scientific management theory offered a
systematic approach to employee management and development. Scientific
management tried to improve a company's productivity by improving the
efficiency of how work tasks were completed using scientific, engineering and
mathematical principles.
For
example, a study may have been undertaken to determine the most efficient
manner for a worker to shovel coal into a furnace. The task would be broken down
into distinct motions and the optimal number of motions would be determined.
Employees would then be trained to shovel coal in the optimal manner.
Human
Relations Movement
The
next development in human relations started in the 1920s and sought to put the
'human' in human resources. The human relations school took a
behavioral psychology perspective to managing people and was focused on finding
ways to increase worker motivation and satisfaction to increase productivity.
It was less
STEPS IN STRATEGIC
HRP
Step1 -
define the current Business vis-à-vis HR Competencies.
Choose the terrain on
which it will compete – what product it will sell, where it will sell them, how
to differentiate products from its competitors.
Human Resource
requirement for the Company.
Step 2 –
Perform external and internal audits
•
Analyzing
external and internal situations.
•
SWOTs
•
SWOT
analysis
HR Audit is a comprehensive
method to review current human resources policies, procedures, documentation
and systems to identify needs for improvement and enhancement of the HR
function as well as to assess compliance with ever-changing rules and
regulations.
Step 3 :
Formulate new Business and mission statements as per quality policy
•
Based
on situation analysis
•
What
should our business be
•
What
products
•
Where
it will sell
•
How to
differentiate from competitors
•
New
vision and mission
Step 4 :
Translate the mission into strategic goals
•
Operationalizing
the mission for managers – strategic goals
•
For
each department
• Step 5 : Formulate strategies to achieve the strategic goals
• Strategies, Course of action – how to move
from the current business to what it
wants to
Step 6 :
Implement the strategies
•
Translating
strategies into action
•
Hiring,
firing people, building plants, adding products, product lines
•
This
include managerial functions like Planning, organizing, staffing, leading, and
controlling
Step 7 :
Evaluate performance
•
Management
Monitors the extend to which the firm meeting its strategic goals
•
Strategic
Control – keep strategy up to date according to the environmental changes
