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HRM in Competitive Business Environment
© Ramakrishna Kongalla, Assistant Professor
Indian Institute of Tourism & Travel Management(An Organization of Ministry of Tourism, Govt. of India)
HR Roles in building a competitive organization
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• Management of strategic human resource
• Management of transformation and change
• Management of firm infrastructure • Management of
employee contribution
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HRM Professional Skills…
change agent
NegotiationsCommunicationsOvercoming resistanceto change
Data-baseDecision- making
Strategic partner
Legal complianceContractAdmin. HRM & HR info. systems
Administrativeexpert
CounselingDeveloping Teams
Employee advocate
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Competitive challenges…
Increased Value Placed on Knowledge
Skill Requirement
Changes in the Employment Relationship– The psychological contract changed: From
relational to transactional
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The global challenge
• 1. Development of Global Markets:– people were the greatest asset and are the key to success
• 2.Competitiveness in Global markets through HRM practices:– must understand the culture differences and invest in human
resources
• 3. Preparing Employees for International Assignments:– eg - Boeing
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Dimensions of HRM…
competitiveness
ManagingHRenvironment
Acquiring& PreparingHR
Assessment& developmentOf HR
CompensatingHR
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Roles…Strategic partner:– Aligning HRM strategies to business strategies is
important to help the company execute its business strategy.
Administrative expert:– Designing and delivering efficient and effective HRM
systems, processes, and practices. Such as systems for selections, training, developing, appraising and rewarding employees.
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Employee Advocate:– Entails managing the commitment and contributions of
employees. No matter how skilled an employee is, if he is angry or alineated,he will not contribute his efforts to the firms’success,nor will he stay with the firm for long.
Change agents:– HRM must help in transforming organizations to meet
the new competitive conditions. You need to change and develop a capacity for change
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Competitive challenges…Increased Value Placed on Knowledge:
– 75% of the value in any company is, intangible (intellectual capital) which refers to creativity, productivity, and service provided by employees.
– Effective management of people is key to boosting the value of intellectual capital.
Skill Requirement:– The emphasize is on knowledge workers and service work, skills requirements
have changed. – The demand for cognitive skills, mathematical and verbal reasoning ability-
and interpersonal skills related to being able to work in teams or to interact with customers in a service economy.
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Changes in the Employment Relationship:– The psychological contract changed: From relational to transactional
• Meaning : employees aren't expecting job security, they want employability-that is, they want their company to provide training and job experiences to help ensure that employees can find other employment opportunities.
• (The challenge for HR is how to build a committed, productive workforce in turbulent economic conditions)
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• Managing the HR environment
– Create a positive environment for employees by:• Linking practices to company objectives.• Ensuring that HR practices comply with state and local
laws.• Designing work that motivates and satisfies the
employees as well as maximizes customer services and productivity.
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• Acquiring & preparing HR
– Customer needs determine the number and type of employees needed, Manager must be able to determine that as well as identifying current or potential employees who can successfully deliver products and services.
– Identifying HR requirements-planning-recruiting and selecting
– Training employees to have the skills needed to perform their jobs.
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• Assessment & development of HR
– Create a work environment that supports employees’ work and non work activities.
– Measuring employees’ performance.– Prepare employees for future work roles and
identifying employees’ work interests, goals, values and other career issues.
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• Compensating HR– Creating a pay system– Rewarding employee contributions– Providing employees with benefits.
` The positive influence of new work designs, new technology can be damaged if employees are not satisfied with the level of pay and benefits or believe that benefits are unfairly distributed.
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