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STRATEGICHUMAN RESOURCEDEVELOPMENTConcepts and Practices

Kesho Prasad

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STRATEGIC HUMANRESOURCE DEVELOPMENT

Concepts and Practices

KESHO PRASADManagement Consultant

New Delhi-1100012012

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STRATEGIC HUMAN RESOURCE DEVELOPMENT: Concepts and PracticesKesho Prasad

© 2012 by PHI Learning Private Limited, New Delhi. All rights reserved. No part of this book maybe reproduced in any form, by mimeograph or any other means, without permission in writing fromthe publisher.

ISBN-978-81-203-4430-3

The export rights of this book are vested solely with the publisher.

Published by Asoke K. Ghosh, PHI Learning Private Limited, M-97, Connaught Circus,New Delhi-110001 and Printed by Baba Barkha Nath Printers, Bahadurgarh, Haryana-124507.

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Preface xv

PART A: STRATEGIC HRM AND HRD

1. Strategy, Strategic HRD and Strategic HRM 3–38

Concepts 3Definition of Strategy 5

Rise of the Concept of Strategy 6

CASE ILLUSTRATION (TATA MOTORS) 8

Strategic Fit 8Strategic Intent 8

Transition from Control to Commitment 9HRM System 13

Craft System 13Market System 14Technical System 15The Career System 16Commitment System 17The Control Model 21The HRM Concept 23HRM Practices in Indian Organizations 23

SHRM (Strategic Human Resource Management) 26

Emergence of SHRM 26Aims of SHRM 28Focus of SHRM 28Special Features of SHRM 29Models and Framework of SHRM 30Contingency Model/Approach 31The 5-P Model 31

Business Strategy Development Not Solution to All Organizational Problems 34

Summary 36Conclusion 36

Review Questions 36References 37

Contents

iii

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iv Contents

2. Organizational Development 39–50

OD Definition 39

OD as Action Research Oriented Interventions 41OD Intervention Following a Total System Approach 42OD as a Normative Approach 42

The Technology of Organization Development 43

Individual Interventions 43Group-based Interventions 43Macro OD Interventions 46

Summary 49Conclusion 50

Review Questions 50References 50

3. Human Resource Planning, Strategy and Training 51–67

The Concept 51Corporate Plan and HR/Manpower Planning 51

Manpower Planning in Practice 52Macro Planning 53Micro Planning 53

HR/Manpower Planning Practices in Corporate Bodies 53

CASE STUDY Metro Manufacturing Unit Limited, Allahabad 54

Manpower Planning and Training 55

Manpower Models 56Technological Changes and Manpower Planning 57Use of Computer in Manpower Planning 57

ILLUSTRATIVE CASES ON USE OF TECHNOLOGY IN MANPOWER PLANNING 57

Human Resource Inventory System (HRIS) 59

Forecasting Manpower Supply 59

Overview of Planning Tools and Techniques 61Human Resource Strategy 64

Summary 66Conclusion 67

Review Questions 67References 67

4. Strategic Selection, Utilization and Retention of Human Resources 68–97

Environmental Context of Strategic Selection and Its Impact 68

Strategic Selection 69

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Contents v

CASE STUDY AGGAI 69

The Context of the Environment 70

External Factors 70Internal Factors 73Use of Tools and Techniques in Strategic Selection 74Dealing with Employee Surplus 77

CASE STUDY BHEL 77

Re-deployment and Re-training 78

Early Retirement—Golden Handshake 79

CASE STUDY HLL 79CASE STUDY AGIEL 80

Downsizing 80

Strategy for Retention 81Organizational Culture and Retention 83

CASE STUDY Hexatel 84

Designing Career Paths 85

CASE STUDY ISPL 86

Succession Plan 87Performance Potential Appraisal 87

CASE STUDY 88

How Appraisal System Works 88Selection Methods 90

The Objective Tools in Selection 90

Termination Strategy 90

CASE STUDY AVP Group of Industries 91

Timing of Termination is also Important 92Exit Interviews 93Domestic Enquiry 93

Implementation Challenges 94

Career Paths for Professionals and Dual-Career Couples 94Career paths for Technical Staff 94Dual-career Couples 94

Summary 95Conclusion 96

Review Questions 96References 96

5. Competency Mapping 98–125

Introduction to Competency Mapping 98Origin of the Concept 99

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vi Contents

Competency Model 99

CASE STUDY A Mortgage Banking Company 99

Why Competency Model? 101Identification of Innate Capabilities 102

Identification of Competencies 103

Assessment Centre 104Development Centre 105Processes to be Firmed up in Identification of Competencies 105

Developing Competence Model 105

Decide on the Methodology for Collection of Data 105Conducting Interviews 108Direct Observation on Job 112Developing Interim Competency Model 113

CASE STUDIES 114

Case A 114Case B 115

Validating Competency Model 116

Data Collection 116Main Findings 121

Finalizing Competency Model 122Implementation of Competency Model in HRM Systems 123

Prepare Formatting of Skills 123

Summary 123Conclusion 124

Review Questions 124References 125

6. Strategy Oriented Performance Measurement Systems 126–134

Measuring Performance 127

Management By Objectives (MBO) 127Graphic Rating Scale 129Behaviourally Anchored Rating Scale (BARS) 130360 Degree Feedback System 131

Summary 133Conclusion 133

Review Questions 133References 134

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Contents vii

PART B: TRAINING AND DEVELOPMENT

7. Strategic Training and Development 137–187

Introduction to Training 137

CASE STUDY BSP 138

Training Need Analysis (TNA) 138Designing Programmes 139Course Duration 140

Training and Development of Managers 141

Conducting Training Programmes 142Role of a Training Specialist 143Training Budget 143

Integration of TNA with Organizational Goals 144

Training Indicators 144Evaluation 145Need for Evaluation 146

CASE STUDY BSP 147

Prioritizing Training 147Skill Development Mission 148Objectives of the Skill Development Training Programmes 148Extension Centres 149The Challenges of Skill Development 149

Developmental Needs of Managers 150

Assessment of Training and Development Needs of Managers 151

Appraisal for Management Development 151

The Process of Development of Managers 152

Methods of Developing Managers 153

Job Rotation 153Understudy 154On-job Coaching 154Growth Laboratories/Sensitivity Training 154Transactional Analysis 154Off-job Training 159Job Enlargement 159Job Enrichment 160

Training Methodologies 162

Non-experiential Training 162Experiential Learning 166Discovery Method 166Types of Experiential Learning 167

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viii Contents

Techniques Used in Executive Development Course 169

Brainstorming 169Syndicate Working 169

Preparation of Physical Facilities for Learning/Training Programme 170Arrangements for Making Use of E-Learning Technologies 170Training Budget 171

Functions of the Training Office/Administration 171

Concept of Human Capital Learning 173

Concept of Human Capital 173

The Principles of Learning 174

Evaluation of Learning 176

Creating a Learning Organization 177

The Genesis 177Organization Development 178The Learning Organization 179The Basis of the Learning Organization 180Aims of a Learning Organization 180Creating a Learning Culture 181Importance of Creating a Learning Organization 182

Summary 184Conclusion 185

Review Questions 185References 186

8. Technology Enabled Learning and Training Systems 188–217

Introduction 188Technological Explosion 189

Technology Transfers, Workplace and Learning 190

Influence of Technology on New Organizations 190

Convergence of Knowledge Content, Communication and Computing 190Globalization 190Knowledge-based Economy and Knowledge-based Organization 191Virtual Organizations and Economy 191Mass Production to Molecular Structure and Economy 191Internet-based Economy 191Digitalized Services, Organization and Communication 191Presumption 191Real-time Adjustment of the New Enterprise to the Changing Scenario 192Divergence/Discordance 192Peer-to-Peer Network Computing 192Innovation 192

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Contents ix

Diversity in Usage of Technology 192

Rise in Use of Learning Related Technology 193

Typology of Learning Technologies 194

Electronic Performance Support System 194

CASE STUDY Andersen Consulting, USA 199

Software Applications 199

Learning Management System (LMS) 200Learning Content Management System (LCMS) 201Comparing LMS and LCMS 201

Interactive Multimedia (IMM)/Computer-based Training (CBT) 202

Multimedia is Interactive 203Technology of Multimedia 203Benefits of Interactive Multimedia 204Computer Networks 204

Use of Web in Internet Application 205

Web-based Workplace Training 205

CASE STUDY Digital Corporation, USA 206

The Most Popular Uses of Web 206

Use of Television and Video in Learning 207

Television Usage in Educational Sector 207Coverage of TV Programmes for Training Purposes 207Videotapes 208Digital Videoconferencing 208Desktop Video 209Audiography 209Desktop Publishing 209Electronic Presentation 210Paperless Workplace 210

Use of Software in Human resources/Information Management Systems 211Distance Learning 212

Features of Distance Learning 212

Open Learning 213Just-in-Time Learning (JITL) 213

Summary 214Conclusion 216

Review Questions 216References 217

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x Contents

PART C: ORGANIZATIONAL BEHAVIOUR

9. The Individual and the Organization 221–235

The Concept of Self 221

Self-esteem 221Perception 224Projection 225

Values and Attitude 227

Values 227Beliefs 227Personality 228The Logic and Concept of Learning 230Communication 231Interpersonal Dynamics 231Role of Electronic Media (Communication Networks) in Interpersonal

Dynamics 233

Summary 233Conclusion 234

Review Questions 234References 235

10. The Individual and the Group 236–251

Group Dynamics 236

Small Group 236The Inner Circle 237

What is a Group 237

Group Membership 237Group Formation 238Group Development 238Functions of a Group 238Group Behaviour 239

Intergroup Dynamics 241

Interdependencies between Groups 241Intergroup Relations 242

Management of Conflicts and Intergroup Relations 243

Management of Conflicts 244Levels and Sources of Conflicts 245Management of Conflicts 248

Summary 249Conclusion 250

Review Questions 251References 251

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Contents xi

11. Power and Influence 252–255

Meaning of Power 252Sources of Power 253

Interpersonal Sources of Power 253

Summary 254Conclusion 254

Review Questions 254References 255

12. Organizational Climate and Human Resource Environment 256–295

Introduction 256Environmental Scanning 257

Trends in Utilization of HR 257Technological Innovations 258

CASE STUDY 259CASE STUDY 260

Management Trends 261

CASE STUDY 262

Total Quality Management 262

CASE STUDY Xerox 263CASE STUDY Ford Motors, North American Automobile Group 273CASE STUDY 274CASE STUDY BHEL Bhopal Plant 276CASE STUDY 280CASE STUDY BHEL, Bhopal Plant 283

Demographic Changes 285

CASE STUDY Tata Motors 286

Organizational Structure 287International Developments 288Organizational Culture 291

Summary 292Conclusion 294

Review Questions 294References 295

13. Organization Structure and Design 296–324

Introduction 296

Types of Organization Structure Design 297

CASE STUDY IT Companies 300

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xii Contents

CASE STUDY AHEIL, Jhansi 301CASE STUDY Global Matrix Organization at Ford, USA 301CASE STUDY 303CASE STUDY TESCO 308CASE STUDY Pricewaterhouse Consultancy 309CASE STUDY Yorkshire Water, UK 311

Models of Organization Structure 316Designing Organizational Structure 318

CASE STUDY TELCO 321CASE STUDY 321

Summary 322Conclusion 323

Review Questions 323References 323

14. Organizational Culture and Leadership 325–342

Introduction 325Culture 325

Corporate Culture 326Significance of Corporate Culture 327Culture and Strategic HRM 328Culture as a Subject of Study in HRM 329

The Concept of Organizational Effectiveness 330

Meaning of Effectiveness 330Organizational Effectiveness 330Factors Effecting Organizational Effectiveness 331

CASE STUDY 332

Inter-se Relation of Effectiveness to Enterprise 333Nature of Leadership Role in Strategic Management Process 334Leadership Role in the Process of Strategic Management 335

Summary 339Conclusion 340

Review Questions 341References 341

15. Strategic Motivation 343–360

Historical Perspective 343

Reward Strategy 343The Origin of Reward Strategy 347

Theories of Motivation 349

Classical Approach 349

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Contents xiii

Emergence of New Concepts/Thinkers 349Frederick Herzberg’s Motivation-hygiene Theory 350McClelland’s Trichotomy of Needs 351Douglas McGregor’s Theory X and Y 353V. Room’s Expectancy Theory of Motivation 354Relevance of Expectancy Theory 355

Summary 357Conclusion 358

Review Questions 359References 359

16. Compensation Management 361–378

Compensation System 361

Performance Related Pay 361Performance Linked Pay (PLP) 362Competence Linked Pay (CLP) 363Contribution Linked Pay (CLP) 363Skill-based Pay 363Opportunities for Advancement 364Team-based Pay Plan 364

CASE STUDY Star Engineering Corporation, Mumbai 365

Variable Compensation 366

CASE STUDY Jigs and Tools Manufacturing Company, Jamshedpur 366

Broad Banding 367Inadequacies of the Traditional Compensation approaches 368Job Design 371

Socio-technical System 372

CASE STUDY Volvo Kalmar Car Plant 372CASE STUDY Terrytown, New York Project of General Motors Car Assembly 373

Summary 375Conclusion 376

Review Questions 377References 377

PART D: GLOBAL HRM

17. Global HRM and Challenges 381–402

Globalization 381

CASE STUDY OTIS Elevator Company 381

HRM as Part of Global Strategy 382Challenges to HRM from Global Organization Strategy 383

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xiv Contents

Human Resource Management in Operation 383

CASE STUDY Swiss based MNC, Helvetica Chemical Company 384

Global Human Resource Management 386

Expatriate Staff 387Global Organization’s Policies for Expatriates 389Search for Talents 389

Retention and Career Management in Global Employers 391

Performance Evaluation 391Receiving vs Giving Feedback 392

CASE STUDY ABB Operations in China during late 1990s 392

Skills Development of and Roles Played by Global Managers 393Global Manager’s Roles 394

International Organizations Strategy—Implications for HRM Policy 396Typology of Firms 397

Ethnocentric Firms 397Polycentric Firms 397Geocentric Firms 397

Phases of Internationalization of Human Resource Management 397

Summary 400Conclusion 401

Review Questions 401References 401

Glossary 403–404

Name Index 405–406

Subject Index 407–408

Strategic Human ResourceDevelopment: Concepts And Practices

Publisher : PHI Learning ISBN : 9788120344303 Author : Kesho Prasad

Type the URL : http://www.kopykitab.com/product/11822

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