What is HRM?

 Thefunction performed in
organizations that facilitates the
most effective use of people
(employees) to achieve
organizational and individual goals.
 Importance of HRM(CONTD)
 At the enterprise level – Good HR practices
can help in attracting and retaining the best
talent .
 It helps training people for challenging roles
and developing right attitude.

 At the individual level- it promotes team work

an team spirit
 It offers excellent growth opportunities to
people who have potential.
 It allows people to work with commitment.
 Importance of HRM(CONTD)
At the society level-
Employment opportunities multiply
Scarce talents are put to best use.
Companies that pay and treat people
well always race ahead of others and
deliver excellent results.
At the national level-effective use of
human resource helps the nation to get
ahead of others and deliver excellent
results.
 Future of HRM
 Size of workforce-corporates have
grown in size putting additional demand
for better pay, benefits and working
condition from various sections of the
workforce community.
 Employee expectations- instead of
attempting to force employees to
confirm to a “corporate mould future
managers may well have to make more
allowances for individual differences in
people”.
 Future of HRM (contd)
 Changes in technology- increased automation,
modernisation, computerisation.

 Life style changes- ready to change jobs,

shift to new location, take up jobs in start up
companies.
 Environmental challenges- increased
momentum for privatisation, increased
competition, rising wage bills, ineffecient
operations. Employment of reserved category
 Future of HRM
 Minorities are going to loose their
importance in their future.
 Personnel function in future-
 Job redesign- flexi time, job sharing,
and alternative work arrangements.
 Career opportunities- apart from
compensation, personal growth and self
development may become primary
motives for working.
 Future of HRM
 Productivity- new mantra

 Rewards- individually –designed

packages recognising talent may out
number group compensation plans.
 Safety and welfare-increased
investment for better work
environment.
 Future of HRM
 Changes in 21st century impacting HRM-
 HR as a spacing board or success-
executives with people management
skills would be able to steal the show,
since they help integrate corporate
goals with employee expectations in a
sucessful way.
 Talent hunting, developing and retaining:
clear focus areas: Employees with cross
functional expertise, strong academic
background and team management skills
 Future of HRM
 Lean and mean organisation- forced to
eliminate low end jobs ,say bye to
employees with limited skill sets ,
increased outsource and remain highly
competitive .
 Labour relation- trade unions will slowly
loose their count .
 Health care benefits- wellness
programmes.
 INTERNATIONAL HRM
HCN- employees from the local population.
A worker from Bihar employed by an
American firm operating in India
PCN- also called expatriates . An
American manager on assignment in
India
TCN- American firm employs a manager
from great Britain at facilities in India
 IHRM is the interplay between three
dimensions -human resource activities
,types of employees and countries of
operation

 Recruitment

 Ethnocentrism- Ethnocentric (all

expatriates- sending home country
executives abroad
 Use of Expatriates
Use of expatriates increases when:
 Poor or insufficient local talent
 There is a need to ensure a strong
corporate-wide vision (and culture).
 When domestic and foreign operations
are highly interdependent.
 The political situation in the foreign
country is unstable
 There are significant culture
differences.
 Bottom line: When the home country does
not TRUST the abilities and/or
intentions of local labour force.
Polycentrism- conscious beleif that only
host country managers can ever really
understand the culture and behaviour of
the host country market.e.g global sales
of Bausch and Lomb
Geocentrism-management candidate must
be searched on a global basis without
favoring anyone . Colgate Palmolive-
household name of more than 175
countries, 60%of the company’s
expatriates from countries other than
united states
 Use of Expatriates
Why do International Assignments Fail?
 Career blockage (“the home office has
forgotten about me”)
 Culture Shock, resulting in frustration
and poor cooperation abroad.
 Family problems, due to poor
adjustment and/or lack of contact if
family is left behind
 Use of Expatriates
Difficulties upon Return Home
20-40% of repatriates quit after
returning home. Why?
 Lack of respect for acquired
skills/knowledge
 Loss of status
 Poor planning for return position
 Reverse culture shock
 Use of Expatriates
The Role of HRM
Selection
 Provide realistic country preview.
 Measure ability to be sensitive to
different cultures and/or comfort with
specific foreign country’s culture.
 Have successful expatriates make the
selection decisions.
 Require previous international experience
(pay attention to specific country worked
in).
 Assess family’s willingness to live or work
abroad.
 Use of Expatriates
The Role of HRM
Training
Cross-cultural training, which can
address:
 Major cultural differences
 Foreign expectations regarding polite
behaviour
 Foreign expectations regarding business
behaviour
 How to avoid feeling insulted when no
insult is made
 Video and role-play approaches to
training delivery are critical for cross-
cultural training.

Career Development
Ensure expatriates know that an
international assignment helps in terms
of advancement within the firm
 International compensation
 There is difference in tax and cost of
living
 The expatriate’s income should be at
least be equivalent to what he or she is
getting at home
 Additional incentives must be offered
for accepting the international
assignments (bonus, pay increase).
 It is better to avoid having expatriates
fill the same jobs held by locals
 Functions of HR

MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
Planning Staffing
Development
Organising
Compensation
Directing
Motivation
Controlling Maintenance
Integration
Emerging Issues
 Operative functions of HR

STAFFING Job analysis, HRP, Recruitment,

Selection, Placement, Induction,
Internal Mobility

Competency profiling, Training and

DEVELOPMENT development, Performance &
potential management, Career
management, 360 degree feedback

Job design, Work scheduling, Job

COMPENSATION evaluation, Compensation
& MOTIVATION administration, Incentives and
benefits
 Operative functions of HR (contd.)

Health, Safety, Welfare,

MAINTENANCE Social security

Employment relations, Grievance,

INTEGRATION Discipline, Trade unions,
Participation, Collective
bargaining

EMERGING HRIS, HR audit, HR scorecard,

International HRM, Workforce
ISSUES
Diversity