STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT

·         STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT

·         MEANING OF STRATEGY

·         THE WORD ‘STRATEGY IS DERIVED FROM THE GREEK WORD ‘ STRATEGOS’ MEANING A GENERALSHIP

·         STRATEGY IS THE DIRECTION AND SCOPE OF THE ORGANIZATION OVER LONG RUN.

·         WILLIAM F. GLUECK ,” STRATEGY IS A UNIFIED ,COMPREHENSIVE  PLANNING AND  INTEGRATED PLAN RELATING THE STRATEGIC  ADVANTAGES OF THE FIRM TO CHALLENGES OF THE ENVIRONMENT. IT IS DESIGNED TO ENSURE THE BASIC OBJECTIVES OF THE ENTERPRISE ARE ACHIEVED.

·         FEATURES OF STRATEGY

1.       STRATEGY RELATES TO DIFFERENT AREAS OF OPERATIONS AND STRATEGIC DECISIONS ARE TAKEN BY THE TOP MANAGEMENT

2.       IT IS CONCERNED WITH LONG RUN

3.       STRATEGIC DECISIONS ARE BASED ON THE ANALYSIS OF EXTERNAL ENVIRONMENT

4.       BASED ON THE FUTURE SCENARIO

5.       LONG TERM COMMITMENT OF RESOURCES

·         MEANING OF STRATEGIC MGMT

·         STRATEGIC MGMT IS DEFINED AS THE DYNAMIC PROCESS OF FORMULATION,IMPLEMENTATION,EVALUATION AND CONTROL OF STRATEGIES TO REALIZE THE ORGANIZATION'S STRATEGIC INTENT.

·          AS PER CHANON,” STRATEGIC MANAGEMENT IS DEFINED AS THAT SET OF DECISIONS AND ACTIONS THAT RESULT IN FORMULATING OF STRATEGY AN ITS IMPLEMENTATION TO ACHIEVE THE OBJECTIVES OF THE CORPORATION.

·         STRATEGIES AT DIFFERENT LEVEL

1.       CORPORATE LEVEL:-AT THE CORPORATE LEVEL STRATEGIC DECISION RELATE TO ORGANIZATION WIDE POLICIES AS IN THE CASE OF MULTI DIVISIONAL COMPANIES.

2.       BUSINESS LEVEL STRATEGIES:-IT IS THE STRATEGY TO ACHIEVE THE SPECIFIC OBJECTIVE OF THE STRATEGIC BUSINESS UNIT SO AS TO HELP ACHIEVING THE ORGANIZATIONAL OBJECTIVES.STRATEGIC BUSINESS UNIT IS AN OPERATING DIVISION OF A FIRM WHICH SERVES A DIFFERENT PRODUCT/MARKET SEGMENT OR A WELL DEFINED SET OF CUSTOMERS OR A GEOGRAPHIC AREA.

3.       FUNCTIONAL LEVEL STRATEGY:-DEALS WITH THE FUNCTIONAL AREAS OF PRODUCTION,MARKETING,FINANCE,RESEARCH AND DEVELOPMENT

·         CORPORATE STRATEGY AND HUMAN RESOURCE MANAGEMENT

·         STRATEGIC MANAGEMENT OF HUMAN RESOURCES CAN HELP IN CREATION OF COMPETITIVE ADVANTAGE FOR THE ORGANIZATION OVER ITS RIVALS BY BUILDING EMPLOYEE COMPETENCE.

·         STRATEGIC HRM IS THE LINKING OF HRM WITH STRATEGIC GOALS AND OBJECTIVES IN ORDER TO IMPROVE BUSINESS PERFORMANCE AND DEVELOP ORGANIZATIONAL CULTURE THAT FOSTERS INNOVATION AND FLEXIBILITY.

1.       RECRUITMENT AND SELECTION:IDENTIFICATION,SELECTION OF MOST COMPETENT PERSON

2.       TRAINING: RIGHT TRAINING TO EMPLOYEES

3.       PERFORMANCE APPRAISAL:-STRENGTH AND WEAK AREAS ARE IDENTIFIED .WEAK AREAS ARE RECTIFIED THROUGH PROPER REMEDIAL ACTION.

4.       COMPENSATION:-BY GIVING ATTRACTIVE COMPENSATION PACKAGE,COMPETENCE CAN BE ENHANCED.

·         HUMAN RESOURCE BASED COMPETITIVE ADVANTAGE

·         HUMAN RESOURCE BASED COMPETITIVE ADVANTAGE MAY BE DEFINED BROADLY AS THE UTILIZATION OF EMPLOYEE CAPABILITIES TO CREATE VALUE FOR CUSTOMERS IN A WAY THAT RIVAL FIRMS CAN NOT.

·         BARNEY MADE THE CASE THAT THE FIRM’S RESOURCES LEAD TO SUSTAINED COMPETITIVE ADVANTAGE WHEN THEY ARE:-

1.       VALUABLE

2.       RARE

3.       INIMITABLE

4.       NON SUSTAINABLE

5.       NON SUBSTITUABLE

·         PORTER’S BUSINESS UNIT STRATEGIC AND HRM

·         MICHEAL E PORTER HAS IDENTIFIED THREE TYPES OF BUSINESS UNIT STRATEGIES:-

1.       COST LEADERSHIP STRATEGY

2.       DIFFERENTIATION STRATEGY

3.       FOCUS STRATEGY

·         AIM OF STRATEGIC MANAGEMENT

1.       TO ACHIEVE INTEGRATION THE VERTICAL INTEGRATION OF HR STRATEGIES WITH THE BUSINESS STRATEGIES AND HORIZONTAL INTEGRATION OF STRATEGIES

2.       TO PROVIDE A SENSE OF DIRECTION

3.       TO CONTRIBUTE IN FORMULATION AND IMPLEMENTATION OF STRATEGY

·         STRATEGIC ROLE OF HUMAN RESOURCE MANAGER

1.       MODERN ORGANIZATION ARE FACING THESE CHALLENGES:-

2.       IMPACT OF TECHNOLOGICAL CHANGE ON THE PRESENT SKILL AND TECHNIQUES

3.       DUE TO CHANGE IN INDUSTRIAL POLICY AND ECONOMIC POLICY INTENSE COMPETITION

4.       CHANGING INTERNATIONAL SCENARIO

5.       CHANGING PROFILE OF WORKERS

6.       CHANGING NEEDS AND EXPERIENCES OF CUSTOMERS

7.       PROVIDING PURPOSEFUL DIRECTION:-THE HUMAN RESOURCE MANGER WILL HAVE TO ENSURE THAT THE MISSION OF THE ORGANIZATION BECOMES THE MISSION OF EACH PERSON WORKING IN THE ORGANIZATION AND THE OBJECTIVES ARE SET TO FULFILL THE SAME

8.       BUILDING CORE COMPETENCY:HE HELPS THE BUSINESS IS ORGANIZED ON THE BASIS OF CORE COMPETENCY.

9.       CREATING COMPETITIVE ADVANTAGE:EITHER THROUGH COST/DIFFERENTIATION

10.   FACILITATION OF CHANGE BY AS CHANGE AGENT

11.   MANAGING WORK FORCE DIVERSITY:-IN MODERN ORGANIZATION ,MANAGEMENT OF DIVERSE WORK FORCE IS GREAT CHALLENGE. WORKFORCE DIVERSITY CAN BE OBSERVED IN TERMS OF GENDER,YOUNG/OLD,EDUCATED/UNEDUCATED,SKILLED/SEMISKILLED,PROFESSIONAL AND MAY BE COMING FROM DIFFERENT COUNTRIES ETC

12.   MOTIVATION TO WORKFORCE:-BY INCREASING ASPIRATIONS OF THE EMPLOYEES AND INCREASING MOBILITY OF PERSONNEL

13.   DEVELOPMENT OF WORK ETHICS AND CULTURE

14.   EMPOWERMENT OF HUMAN RESOURCES:-EMPOWERMENT MEANS AUTHORIZING EVERY MEMBER OF A SOCIETY OR ORGANIZATION TO TAKE CONTROL OF HIS OR HER DESTINY AND REALIZING HIS POTENTIAL TO FULL. THE GOAL OF EMPOWERMENT IS TO UNDERSTAND AND FEEL GOOD ABOUT THEMSELVES,VOLUNTARY OBEYING OF THE RULES AND UTILIZATION OF THE RESOURCES IN EFFICIENT MANNER.

·         BARRIERS

1.       LACK OF UNDERSTANDING OF STRATEGIC NEEDS

2.       SHORT TERM MENTALITY OF STAKEHOLDERS

3.       LACK OF STRATEGIC THINKING

4.       HIGH EMPLOYEE ATTRITION

5.       RESISTANCE TO CHANGE

6.       CONFLICT BETWEEN STRATEGIC HR AND ROUTINE HR FUNCTIONS

·         HOW TO OVERCOME THE BARRIERS

1.       SWOT ANALYSIS

2.       FORMULATION OF STRATEGY

3.       GAIN SUPPORT

4.       ASSESSMENT OF OBSTACLES

5.       PROPER ACTION PLAN

6.       PROPER IMPLEMENTATION

7.       FOLLOWUP AND EVALUATE