By transformation of economic environment, the information expansion, advances in technology and the intensely competitive global and domestic markets have created enormous pressure on organization to change. Against this challenging scenario, a new era of human resource management practices and philosophy is emerging and assuming significance in modern organizations.
HARVARD MODEL OF HUMAN RESOURCE MANAGEMENT
Harvard model of Human Resource Management (HRM) is a process of bringing people and organizations together so that the goals of each are met. It is that part of the management process which is concerned with the management of human resources in an organization. It tries to secure the best from people by winning their wholehearted cooperation. It is the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.
If HR is to remain configured as it is today, in many companies the competitive forces that managers face today and will continue to confront in the future demand organizational excellence. The efforts to achieve such excellence — through a focus on learning, quality, and teamwork — are driven by the way organizations get things done and how they treat their people. HR is not defined by what it does but by what it delivers — results that enrich the organization’s value to customers, investors, and employees.
HR helps to deliver organizational excellence in the following ways:
• HR becomes partner with senior and line managers in strategy execution, helping to move planning from the conference room to the workplace.
• It becomes an expert in the way work is organized and executed, delivering administrative efficiency to ensure that costs are reduced while quality is maintained.
• It becomes a champion for employees, vigorously representing their concerns to senior management and at the same time working to increase employee contribution; that is employees’ commitment to the organization and their ability to deliver results.
• Finally, HR should become an agent of continuous transformation, shaping processes and a culture that together improve an organization’s capacity for change.
Analysis of Situational Interests Shaping Development of Resourcing Strategy
The most valuable asset of any large-scale organization is the high-caliber employees. Finding right people and putting them at right job is the most important challenge for any organization. Keeping in mind the challenge, the function of attracting the best available talent is carried out by an organization.
Resourcing strategy is the process of identifying the prospective employees, stimulating and encouraging them to apply for a particular job in an organization. It is a positive action as it involves inviting people to apply. The purpose is to have an inventory of eligible persons from amongst whom proper selection of the most suitable person can be made.
All methods of resourcing can be put into three categories: (a) Direct Methods, (b) Indirect Methods, and (c) Third-Party Methods.
a) Direct Methods include sending recruiters to educational and professional institutions, employee contacts with public, manned exhibits. For small level jobs and apprenticeship help, high schools can be extensively used. For technical, managerial and professional jobs, colleges, university departments and specialized institutes are used. These institutions usually have a placement officer a teacher-in-charge of placement, who normally provides help in attracting employers arranging interviews, furnishing space and other facilities and providing student resumes. The companies maintain a list of such institutions, keep in touch with them.
Employees’ Contact with the Public: The employees of the organization are told about the existence of particular vacancies and they bring this to the notice of their relatives, friends and acquaintances.
Manned Exhibits: The organizations send recruiters to conventions and seminars, setting up exhibition at fairs, and using mobile offices to go to the desired centres.
b) Indirect Methods cover advertising in newspapers, on the radio, in. trade and professional journals, technical journals and brochures.
When qualified and experienced persons are not available through other sources, advertising in newspapers and professional and technical journals is made. Whereas all types of advertisements can be made in newspapers and magazines, only particular types of posts should be advertised in the professional and technical journals; for example, only engineering jobs should be inserted in journals of engineering. A well thought-out and planned advertisement for an appointment reduces the possibility of unqualified people applying.
c) Third-Party Methods: Various agencies are used for recruitment under these methods. These include commercial and private employment agencies, state agencies, and placement offices of schools, colleges and professional associations, recruiting firms, management consulting firms, indoctrination seminars for college professors, friends and relatives.
Private Employment Agencies specialize in specific occupation like general office help, salesmen, technical workers, accountants, engineers and executives, etc. These agencies bring together the employers and suitable persons available for a job. Because of their specialization, they can interpret the needs of their clients and seek out particular types of persons.
Executive Search Agencies maintain complete information records about employed executives and recommend persons of high caliber for managerial, marketing and production engineers’ posts.
Deputation: Persons possessing certain abilities useful to another organization are sometimes deputed to it for a specified duration.
Analysis of Stakeholder Interests Shaping Development of Resourcing Strategy
Selection is the process of securing relevant information about an applicant to evaluate his qualifications, experience and other qualities with a view to matching these with the requirements of a job. It is essentially a process of picking out the man or men best suited for the organization’s requirements.
The Stakeholder Process:
Stakeholder Process involves rejection of unsuitable or less suitable applicants. This may be done at any of the successive hurdles which an applicant must cross. These hurdles act as screens designed to eliminate an unqualified applicant at any point in the process.
Those who qualify a hurdle go to the next one; those who do not qualify are dropped out. The complexity of the process usually increases with the level and responsibility of the position to be filled.
Initial Screening or Preliminary Interview:
This is a sorting process in which prospective applicants are given the necessary information about the nature of the job and also, necessary information is elicited from the candidates about their education, experience, skill, salary expected, etc. If the candidate is found to be suitable, he is selected for further process and, if not, he is eliminated. This is a crude screening and can be done across the counter in the orga1ization’s employment offices. Due care should be taken so that suitable candidates are not turned down in a hurry. Since this provides personal contact for an individual with the company, the interviewer should be courteous, kind, receptive and informal.
Different types of application forms may be used by the same organization for different types of employees, e.g., one for managers, the other for supervisors and a third for other employees. Some forms are simple, general and easily answerable, while others may require elaborate, complex and detailed information. An application form should be designed to serve as a highly effective preliminary screening device, particularly, when applications arc received in direct response to an advertisement and without any preliminary interview.
The application can be used in two ways: (i) to find out on the basis of information contained therein as to the chances of success of the candidate in the job for which he is applying, and (ii) to provide a starting point for the interview.
It is often possible to reject candidates on the basis of scrutiny of the applications as they are found to be lacking in educational standards, experience or some other relevant eligibility and traits.
These tests measure the latent ability of a candidate to learn a new job or skill. Through these tests detect peculiarity or defects in a person’s sensory or intellectual capacity. These focus attention on particular types of talent such as learning, reasoning and mechanical aptitude. Instruments used are variously described as tests of intelligence, mental ability, or simply as personnel tests. These are of three types:
i) Mental Tests: These measure the overall intellectual ability or the intelligence quotient of a person and enable to know whether he has the mental capacity to deal with new problems. These determine an employee’s fluency in memory, interaction, reasoning, speed of perception, and spatial visualization.
ii) Mechanical Aptitude Tests: These measure the capacity of a person to learn a particular type of mechanical work. These are useful when apprentices, machinists, mechanics, maintenance workers, and mechanical technicians are to be selected.
iii) Psychomotor Tests: These measure a person’s ability to do a specific job. These are administered to determine mental dexterity and similar attributes involving muscular movement, control and coordination. These are primarily used in the selection of workers who have to perform semi-skilled and repetitive jobs, like assembly work, packing, testing, and inspection and so on.
Analysis of Impact of Strategic Choices on Human Resource Planning
Recruiting the best talented personnel is a subject that has dominated HR thinking for years, variously described as manpower—planning modeling, succession planning or high-flyer identification. Talent management is a core element of human capital management. People generate capital for an organization through their competence, their behaviors and their intellectual energy. In a commercial world dominated by knowledge-intensive organizations, talented staff is an ever-more important requirement for competitive success. Intellectual energy is about innovation and change, about new thinking and about opportunities developed from problems.
Talent management is primarily about identifying, developing and using those people who can provide those critical intellectual-energy ingredients. In general, from a successful talent-management system we expect: sustainable commercial competitiveness: higher levels of focused innovation; improved staff engagement and commitment, low turnover rates of knowledge and experience, lower external resourcing costs.
Talent management has now become a more challenging job for an organization. This is also very clear that managing employees in any organization is a job of Human Resource Department. But as time passes and with a stable environment, there are more opportunities for talented people in today’s world. These days it is very difficult to manage with traditional human resource practices, hence we have to do more than that otherwise we will not attain the target, and in this competitive and fast changing environment we will not survive at all. All these forces are new challenges before the Human Resource Management.
One of HR’s most challenging jobs now involves managing talent. Time has changed in recent years to make this an increasingly critical area for HR. Among the issues that have made the talent management job more difficult are: frequent restructuring, a growing reliance on outside hiring, flatter organizations with fewer growth options. a tighter job market.
In order to retain its most valuable stakeholders, an organization must find innovative ways to continually recruit talented employees. Retaining top quality talent is an enormous challenge facing corporations today and it is the duty of HR to cope with it. In order to build effective retention and deployment strategies, companies must maintain visibility into and communication with their employees.
An organization’s capacity to hire, develop and retain talent is the most crucial business process as there is a definite correlation between intangible assets and market capitalization. .
This sets a challenge for HR professionals. Effective talent management is an achievement for any HR manager and identifying, grooming and retaining talent is a difficult task. Human Resources Department has an important part to play in providing the backbone for talent management. Managing the talent means find, develop and keep the people who are in real the backbone of any organization.
Diversity in the field of HRM is the situation that arises when employees differ from each other in terms of age, gender, ethnicity, education, etc. Workforce diversity means that organizations are becoming more heterogeneous in terms of age, gender, race, ethnicity.
The composition of the workforce is changing everywhere due to vast opening in many sectors. Young, skilled and knowledgeable employees are occupying positions of importance. At the same time, due to the opening up of varied opportunities, employees are no more fascinated by secure, less-paying, routine and standardized jobs. Bigger industries have been exploiting their talents to conceive, operate and develop new ventures in emerging areas.
Organizations now cannot discriminate on the basis of age. They must listen to their experienced employees, to draw from their expertise and initiate programmes that meet these needs. At the same time companies have to understand and appreciate the changing values of the young workers who join the company with lot of expectations. To attract and retain young brains, organizations have to institute appropriate HR policies, supported by attractive compensation offers.
Organizational workforce thus consists of people from different regions, mostly due to increased mobile character of people. Further technological revolution has brought about occupational mobility. These changes in workforce have naturally complicated the task of HRM as the HR manager has to grapple with employees with vastly different backgrounds. Analysis of Impact of Strategic Choices on Flexibility
In an organization, there are different categories of people work. Even within each category there are enormous individual differences. Some will be intelligent, some are committed to jobs, others are not, some will be reserved and so on. These differences demand attention so that each person can maximize his or her potential, so that organizations can maximize their effectiveness and the society as a whole can make the wisest use of its human resources. The challenge of HR managers today is to recognize talent and nurture the same carefully and achieve significant productivity gains over a period of time. The enterprise is nothing but people. Technological advances globalize competition, demographic changes, the information revolution and trends toward a service society have changed the rules of the game significantly. In such a scenario, organizations with similar set of resources gain competitive advantage only through effective and efficient management of human resources.
The role of a HR manager is shifting from a protector and screener to the planner and change agent. In present day competitive world, highly trained and committed employees are often a firm’s best bet. HR professionals play a key role in planning and implementing downsizing, restructuring and other cost-cutting activities. They enable a firm to be more responsive to product innovations and technological changes. Team based work assignments and productivity linked rewards are able to replace manufacturing systems. Discourteous employee responses may ruin the relationships with customers. Employees who lack the temperament, maturity, social skills and tolerance for frequent contact should not be selected at all for service-oriented activities. HR professionals can help an organization select and train employees for such emerging roles. Employees are the primary pillars of corporate success. Through open communications, proper feedback and fair treatment of all employees’ grievances and discipline matters, HR professionals promote employee commitment at various levels. In such a case employees perform the assigned tasks willingly and enthusiastically and thus offer a competitive advantage to the organization. In a growing number of organizations human resources are now viewed as a source of competitive advantage.
It is being recognized that competitive advantage can be obtained with a high quality workforce that enables organizations to compete on the lines of market responsiveness, product and service quality, differentiated products and technological innovation.
In the new economy, winning will achieve organizational capabilities such as speed, responsiveness, agility, learning capacity and employee competence. Successful organizations will be those that are able to quickly turn strategy into action; to manage processes intelligently and efficiently; to maximize employee contribution and commitment; and to create the conditions of seamless change. The need to develop those capabilities brings to the mandate for HR approach .A closer look at each HR imperative in turn is:
Becoming a Partner in Strategy Execution: Strategy is the responsibility of the company’s executive team—of which HR is a member. To be full-fledged strategic partners with senior management, HR executives should guide serious discussion of how the company should be organized to carry out its strategy. HR should be held responsible for defining an organizational architecture. It should identify the underlying model of the company’s way of doing business. Several well-established frameworks can be used in this process. It’s relatively unimportant which framework the HR staff uses to define the company’s architecture, as along as it’s robust. Without such clarity managers can become myopic about how the company runs — and thus about what drives strategy implementation.
Analysis of Impact of Strategic Choices on Recruitment and Selection
As the central sub-system, HRM interacts closely and continuously with all other sub-systems of an organization. The quality of people in all sub-systems depends largely upon the policies, programmes and practices of the HRM sub-system. The quality of human resources determines in turn the success of an organization.
The importance of HRM are placed at four levels — corporate, professional, social and national
1) Significance for an Enterprise: Human resource management can help an enterprise in achieving its goals more efficiently and effectively in the following ways:
a) Attracting and retaining the required talent through effective human resource planning, recruitment, selection, placement, orientation, compensation and promotion policies.
b) Developing the necessary skills and right attitudes among the employees through training, development, performance appraisal, etc.
c) Securing willing co-operation of employees through motivation, participation, grievance handling, etc.
d) Utilizing effectively the available human resources.
e) Ensuring that the enterprise will have in future a team of competent and dedicated employees.
2) Professional Significance: Effective management of human resources helps to improve the quality of work life, it permits team work among employees by providing a healthy, working environment. It contributes to professional growth in the following ways:
a) Providing maximum opportunities for personal development of each employee.
b) Maintaining healthy relationships between individuals and different work groups.
c) Allocating work properly.
3) Social Significance: Sound human resource management has a great significance for the society. It helps to enhance the dignity of labor in the following ways:
a) Providing suitable employment that provides social and psychological satisfaction to people.
b) Maintaining a balance between the jobs available and the jobseekers in terms of numbers, qualifications, needs and aptitudes.
c) Eliminating waste of human resources through conservation of physical and mental health.
4) National Significance: Human resources and their management play a vital role in the development of a nation. The effective exploitation and utilization of a nation’s natural, physical and financial resources require an efficient and committed manpower. There are wide differences in development between countries with similar resources due to differences in the quality of their people. The merit of human resource management is very wide. It consists of the following:
i) Setting general and specific management policy for organizational relationships, and establishing and maintaining a suitable organization for leadership and co-operation.
ii) Collective bargaining, contract negotiation, contract administration and grievance handling.
iii) Staffing the organization. finding, getting and holding prescribed types and number of workers
iv) Aiding in the self-development of employees at all levels providing opportunities for personal development and growth as well as for acquiring requisite skill and experience.
v) Developing and maintaining motivation among for workers by providing incentives.
vi) Reviewing and auditing manpower management in the organization.
vii) Industrial relations research—-carrying out studies designed to explain employee behavior and thereby effecting improvement in manpower management.
The level of development in a country depends primarily on the skills, attitudes and values of its human resources. Effective management of human resources helps to speed up the process of economic growth which in turn leads to higher standards of living and fuller employment.
1. Purcell J.,Boxall P Strategy and Human Resource Management, Palgrave,Macmillan, New York,2003