HRM

According to Decenzo and Robbins “HRM is concerned with the people

dimension in management. Since every organization is made up of people,
acquiring their services, developing their skills, motivating them to higher levels of
performance and ensuring that they continue to maintain their commitment to the
organization are essential to achieving organisational objectives.
HRM is an art of managing people at work in such a manner that they give their
best to the organization for achieving its set goals.

HRM can be defined as a process of procuring, developing and maintaining

competent human resources in the organization
• Nature of Human Resource Management
• 1.Comprehensive Function
• It covers all types of people at all levels in the organization. It applies to workers,
supervisors, officers, manager and other types of personnel.

2. Development Oriented

HRM intends to develop the full potential of employees. For eg.reward structure ,
Training , career plng. and development.

• A part of Management Discipline

• HRM, being a part of management process, draws heavily from management concepts,
principles and techniques and apply these in the management of human resources.
4. Universal Existence

5. Concerned with People

6. Action oriented

• HRM focuses attention on action, rather than on record keeping, written

procedures or rules. The problems of employees are solved through rational
policies.

7. Integrating Mechanism

• HRM tries to build and maintain cordial relation between people working at
different levels in the organization. It tries to integrate human assets in the best
possible manner for achieving organisational goals.
• SCOPE of HRM

• the scope of HRM consists of acquisition, development, maintenance/retention,

and control of human resources in the organization
• SCOPE
• the scope of HRM consists of acquisition, development, maintenance/retention,
and control of human resources in the organization
• The National Institute of personnel Management, Calcutta has specified the scope
of HRM as follows:

• The Labour or Personnel Aspect

• manpower planning, recruitment, selection, placement, transfer, promotion,

training and development, lay-off and retrenchment, remuneration, incentives,
productivity, etc.

2. Welfare Aspect
• deals with working conditions, and amenities such as canteen, creches, rest and
lunch rooms, housing, transport, medical assistance, education, health and safety,
recreation facilities, etc.

3. Industrial Relations Aspects

• This covers union-management relations, joint consultation, collective bargaining,

grievance and disciplinary actions, settlement of disputes, etc.
• Functions and Importance of HRM
• 1) Managerial functions, and
• (2) Operative functions
• (1) MANAGERIAL FUNCTIONS
• a) Planning
• It is a process of determining the organizational goals and formulation of policies
and programmed for achieving them. Thus planning is future oriented
• (b) Organizing
• organizing involves giving each subordinate a specific task establishing
departments, delegating authority to subordinates, establishing channels of
authority and communication
• (c) Staffing
• is a process by which managers select, train, promote and retire their subordinates
This involves deciding what type of people should be hired
• (d) Directing/Leading
• It includes activities like getting subordinates to get the job done, maintaining
morale motivating subordinates etc. for achieving the goals of the organization.
• (e) Controlling
• It is the process of setting standards for performance, checking to see how actual
performance compares with these set standards, and taking corrective actions as
needed.
• (2) Operative Functions
• These functions include procurement, development, compensation, and
maintenance functions of HRM.
• a) Procurement
• It consists of activities such as manpower planning, recruitment, selection
placement and induction or orientation of new employees.
• (b) Development
• These functions may comprise training to employees, executive training to
develop managers, organization development
• c) Compensation
• this function ensures equitable and fair remuneration for employees in the
organization. It consists of activities such as job evaluation, wage and salary
administration, bonus, incentives, etc.
• Importance of Human Resource Management
• To face the new challenges on the fronts of knowledge, technology and changing
trends in global economy needs effective human resource management.
Significance of HRM can be seen in three contexts: organisational, social and
professional.
• (i) Organization Significance
• i) Good human resource practice can help in attracting and retaining the best
people in the organization.
• (ii) Developing the necessary skills and right attitudes among the employees
through training, development, performance appraisal, etc.
• (iii) Securing willing cooperation of employees through motivation, participation,
grievance handling, etc.
• (iv) Effective utilization of available human resources.
• ii) Social Significance
• Society, as a whole, is the major beneficiary of good human resource practice.
• Companies that pay and treat people well always race ahead of others and deliver
excellent results
• Employment opportunities multiplyconservation of physical and mental health.
• (iii) Professional Significance
• (i) Developing people on continuous basis to meet challenge of their job.
• (ii) Promoting team-work and team-spirit among employees.
• (iii) Offering excellent growth opportunities to people who have the potential to
rise.
• (iv) Providing environment and incentives for developing and utilizing creativity

• SHRM: Introduction, Characteristics and Scope of SHRM

• strategic HRM, strategy is associated with the long-term
decisions taken at the top of the enterprise.
• According to Jauch and Glueck
• Strategy is a unified, comprehensive and integrated plan to ensure that the basic
objectives of the enterprise are achieved through proper execution by the organization”.

• Characteristics of Strategic Human Resource Management(SHRM)

• Recognition of the outside Environment: Outside environment presents some

opportunities and threats to the organization in the form of-

 Laws

 Economic conditions

 Social and demographic change

 Domestic and international political forces

 Technology and so on.

• The impact of Competition
2. Forces play out in local, regional and national labor markets. Labor market
dynamics of wage rates, unemployment rates, working conditions, benefits levels
minimum wages legislation and competition reputation all have an impact on and
are affected by strategic human resource decisions.
• Long-Range Focus:
2. A strategic human resource management should be long-range focus cause this is
not easy to change the strategic human resource policy.
• Strategy concentrates on the question, “what should the organization do and
why?”
• Consideration of all Personnel: A strategic approach to human resources is
concerned with all of the firm’s employees
• overall strategic mgt is to coordinate all of the company’s resources, including human
resources; in such a way that everything a company does contribute to carrying out its
strategy
• The key features of SHRM are

 Attempts to link Human Resource activities with competency based performance

measures

 Attempts to link Human Resource activities with business surpluses or profit

• SHRM vs. Conventional HRM

• Strategic HRM uses more systematic tools.

• Strategic HRM has long-term goals.

•
 
• Strategy Formulation: Corporate, Business, Functional
strategy
• Strategy can be formulated at three levels, namely, the corporate level, the
business level, and the functional level.
• At the corporate level, strategy is formulated for your organization as a whole.
Corporate strategy deals with decisions related to various business areas in which
the firm operates and competes.
• At the business unit level, strategy is formulated to convert the corporate vision
into reality.
• At the functional level, strategy is formulated to realize the business unit level
goals and objectives using the strengths and capabilities of your organization.
• In a single business scenario, the corporate and business level responsibilities are
clubbed together and undertaken by a single group, that is, the top management,
whereas in a multi business scenario, there are three fully operative levels.
• Levels of Strategy
• Corporate Level
• The top management team is responsible for formulating the corporate strategy.
The corporate strategy reflects the path toward attaining the vision of your
organization. For example, your firm may have four distinct lines of business
operations, namely, automobiles, steel, tea, and telecom. The corporate level
strategy will outline whether the organization should compete in or withdraw from
each of these lines of businesses, and in which business unit, investments should
be increased, in line with the vision of your firm.
2. Business Level
• The business level strategy formulation is based upon the generic strategies of
overall cost leadership, differentiation, and focus. For example, your firm may
choose overall cost leadership as a strategy
• to be pursued in its steel business, differentiation in its tea business, and focus in its
automobile business. The business level strategies are decided upon by the heads of
strategic business units and their teams in light of the specific nature of the industry
in which they operate.
3. Functional Level
• Functional level strategies relate to the different functional areas which a strategic
business unit has, such as marketing, production and operations, finance, and
human resources. These strategies are formulated by the functional heads along
with their teams and are aligned with the business level strategies.
• Role of HR in strategic management
• Strategic management process involves four important stages: environmental
scanning, strategy formulation, strategy implementation and evaluation and control.
• Environmental Scanning HR professionals play key roles in scanning the
environment.
• Formulation Phase: Vision, Mission, Environmental Scanning, Objective and S
trategy
• Strategy Formulation is an analytical process of selection of the best suitable
course of action to meet the organizational objectives and vision.
• Next slide is STRATEGY ANALYSIS DIAGRAM
• The diagram in the next slide says
• External envn
• Current strategy
• Internal envn
• And lastly it is recommendations
• Rest all you can see in the diagram
• Strategic analysis refers to the process of conducting research on a company and
its operating environment to formulate a strategy.
• Steps of strategy analysis are
• Perform an environment analysis of current strategies
• Determine effectiveness of existing strategies
• Formulate plans
• Implement the suitable strategy
Approaches to Strategy Formulation
Business strategy is essential to the success of organizations
The success of organizations is often attributed to effective
business strategy.
• With regard to the strategic approaches, there seems to be agreement among
practitioners, consultants and scholars that there is neither one simple and single
best approach to formulate strategy. Many also believed that there is no one size
fixed all way of developing and adopting business strategy in organizations. This
is because among the practitioners, consultants and scholars, each tends to have
different ideas about what business strategy is really about. Their views on what
the emphasis, focus and scope of business strategy are diverse. For instance, some
perceive the development of business strategy as a wide and very complex
process. At the same time, there are others who consider the process narrow and
having limited focus and scope [1–12].
• Approaches to Business Strategy
• the approaches suggests that developing business strategy in organizations
have evolved from a simple to much more complex process
• Process vs. Content Approaches

• the process approach, business strategy can be formulated through a series

of activities.
• the strategy process approach was conceived as a rational and
comprehensive decision making activity that is able to describe how
strategy can be formulated based on information gathered from analyzing
the strengths, weaknesses, opportunities, and threats facing the organization.
• unlike the process approach, the strategy content approach has a
narrower focus. This approach primarily emphasized only on
identifying the specific strategy (the specific type of business strategy
such as low cost, differentiation or niche) to be adopted by the
organizations.
• The content approach is not concern with the specific method or
activities involved in developing a strategy. Its only focus is on
selecting the best business strategy to be implemented by the
organization. Put it another way, the strategy content approach
underscores the specific actions taken by organizations to develop their
own specific strategy.
• Economic vs. organizational approaches
• , the strategic focus and scope of business strategy should include:

 The whole organization;

 The industry in which it operates;

 The competitive environment in which it competes;

 Long term direction;

 Organizational resources;

 The distinctive capabilities of the organization; and

 The prospect for success.

• The economic approach primarily emphasizes on the need for organizations to develop
their business strategy based on economic conditions and opportunities.
• this approach advocates that the focus and scope of business strategy should include the
best way to position a firm in each structure of competition and economic system.
• According to Rumelt et al
• this approach has also been driven by at least five economic forces that have in turn shaped
the connection between economic forces and business strategy. The five economic forces
include:
• a) The need to interpret economic performance data;

• b) The experience curve;

• c) The problem of persistent profit;

• d) The changing nature of economics; and

• e) The emphasis on economics in business schools.
• the organizational approach emphasizes on the need for organizations to first
identify and improve the internal components before developing their strategy.
Based on this approach, the focus and scope of developing business strategy are
based on the improved internal components.
• the organizational approach among organizations can be found in the studies
conducted by Burn et al. [33–36]. In addition, findings of these studies indicated
positive relationships between corporate strategy, organizational structure and
economic performance.

• External vs. internal approaches
• the external approach has a wider focus and scope. The external approach
emphasizes that firms should develop their organizational strategies based on the
analysis of their external business environment that consists of various
environmental factors
• such as political, economic, social, cultural, technology, ecology, government,
legal, etc.). However, the internal approach suggests that firms should formulate
their strategy based on the analysis of their internal environment (such as
resources, structure and culture).

• Prescriptive vs. Descriptive approachesthe prescriptive (normative) and

descriptive approaches represent two other different perspectives for formulating
strategy. The prescriptive approach emphasizes on explicit, planned, and logical
thought processes.

• the prescriptive approach proposes the one “best” way to develop and implement
organizational strategies for all types of organizations.
• according to the process of the prescriptive approach involves eight related components.

• The eight components include:

• Establishing the mission of an organization

• Setting the objectives of the organization

• Conducting the environmental scanning

• Identifying the organization’s internal strengths and weaknesses

• Formulating alternative strategies

• Choosing a strategy

• Implementing the strategy

• Evaluating and controlling the strategy.

• different organizations in different business environments require different and not
prescribed business strategies. so the prescriptive approach is rejected.
• the descriptive strategists emphasize the need for organizations to examine and
learn how strategy is actually being practiced in real companies as well as in the
real world of business.
• Dissatisfied with the limitations found in the prescriptive approach, the descriptive
approach was proposed.
• The descriptive approach is very much concerned with reality and focus on how
organizational strategies in real-life organizations are actually being formulated
and implemented
• Competitive Advantage approach This approach views organizational resources
as both tangible and intangible that include;
• ; physical assets, technology, information, human resources, financial resources,
knowledge, skills, competencies, creativity, innovativeness, processes, functions,
systems and intellectual properties. According to the competitive advantage
approach, organizations should develop the competitive advantage they need to
develop effective strategies by using any of these resources.
• Through this approach, business strategy is developed based on the fit between the
external relationships of the organization and its own competitive advantage.
• The 3Cs Approach

• The 3Cs approach represents another distinct approach to developing business

strategy in organizations. This approach basically emphasizes on the 3Cs (costs,
customers and competition). According to this approach, organizations should
emphasize and develop their business strategy based on their abilities to figure out
ways to lower operational costs, attract customers and overcome competition.

• This approach suggests that a company’s competitiveness and growth normally

resulted from the price/performance attributes of its current products.

• Strategic Thinking Approach This approach helps managers to make more

effective decisions by keeping and making them more alert of threats and
opportunities.
• Understanding the organization’s present situation and desired future: The
starting point for strategic thinking involves understanding the firm’s present
situation. This is important because thinking strategically involves not only in
making sense of the trends, events, and problems faced by the firm.

• Diagnosing the business domain: The second component of the approach

involves diagnosing the business domain of the organization. The diagnosis helps
the organization to focus on its internal components as well as external
environment.

• For example, an organization that views itself as part of a larger business system and
belonging to more than one value chains has a broader business outlook than a firm
that sees itself as only a firm in an industry. Having wider business perspective is
essential to organizations competing in uncertain and dynamic business environment.
• Obtaining insight: Besides allowing a firm to better understands itself as well as
providing it with a broader business outlook, the strategic thinking approach also
emphasizes on the need to obtain insight into the threats and opportunities hidden
from the firm.
• Developing foresight: The fourth important component involves developing
foresight. Foresight permits the firm to anticipate not only the patterns and trends
that are taking place in and around the organization, but also to predict what the
future of the firm and business would be like.
• Mapping the future direction: Mapping of the firm’s future direction is the fifth
component of the strategic thinking approach. Organizations need to consider their
present as well as future success. The future success of a firm, however, depends
on well it is able to survive and grow in the long run
Maintaining focus: The sixth component involves maintaining focus on the
organization’s chosen direction.
• Strategic Leadership Approach
• All types of organizations need effective leaders. The strategic leadership approach emphasizes
on the important role of leaders in developing business strategy in organizations
• Strategic leadership involves:

• Providing the management leadership and direction

• Maintaining effective relationships within the organization.

• Introducing action plans to put the programs in place (actions to be taken, by who, during what
timeframe, and with what expected results).

• Gaining the commitment and cooperation of his team

• Getting the group into action to achieve the agreed objectives.

• Make the best use of the skills, energies and talents of the team.

• Build up morale of the employees.

• In this approach, the chief executive officer (CEO) specifically leads and manages
the organization by becoming and serving as the chief strategist. As the chief
strategist, the CEO begins by having a clear framework of what he or she wants
his or her organization to do and where she/he wants it to be in the future.
• Table 1 summarizes the other more recent approaches as identified and promoted
in the literature. Most of the strategic approaches presented in Table 1 were
introduced in the early 2000s and 2010s.
Strategic approaches

Learning focused approach

Competitive focused approach

Positioning focused approach

Customer focused approach

Trial and error approach

Value-added approach
• Organizations that adopt effective business strategy will not only be
able to improve their organizational performance but also sustain their
success.
• Strategy Formulation: Concept, Process & Affecting
Factors
• Strategy formulation is the process of offering proper direction to a
firm. It seeks to set long-term goals that help a firm exploit its strengths
fully and encash the opportunities that are present in the environment.
• strategies consume time, energy and resources, they must be formulated
carefully. Strategies, once formulated, must ensure a best fit between
goals, resources and effort put in by people. The ultimate goal of every
strategy being formulated should be to always deliver outstanding value
to customers.
• Henry Mintzberg
• strategy formulation is typically not a regular, continuous
process. “It is small often an irregular, discontinuous process,
proceeding in fits and starts. There are periods of stability in
strategy development, but also there are periods of flux
• Performance results are generally periodic measurements of
developments that occur during a given time period like return
on investment, profits after taxes, earnings per share and market
share
• Henry Mintzberg has pointed out that a corporation’s objectives
and strategies are strongly affected by top management’s view
of the world. This view determines the mode to be used in
strategy formulation.
• These modes include:
• Entrepreneurial Mode:
• strategy is formulated by one powerful individual. The focus is on opportunities
rather than on problems.
2. Adaptive Mode:
• This strategy formulation mode is characterised by reactive solutions to existing
problems rather than a proactive search for new opportunities.
3. Planning Mode:
• Analysts assume main responsibility for strategy formulation. Strategic planning
includes both the proactive search for new opportunities and the reactive solution
of existing problems.
• Strategic planning differs from project planning tactical, planning and
operational planning. Strategic planning is more comprehensive, for
strategy is dealt with at corporate level and is concerned mainly with
the long-term aspects of business. It deals with what business the
company wants to be in.
• Project planning involves looking for new markets for existing
products, developing new products, creating demand for the same, and
utilising the existing facilities if they have the capacity to meet the
marketing and selling requirements of the new product
• Tactical planning is done at the functional level. It is concerned more
with the present than the future. It implies an ad hoc approach based on
expediency with a time schedule.
• Operational planning, on the other hand, is essentially concerned with
the existing product-market operations – the ‘bread and butter lines’ of
the business. The scope of operational planning is restricted to the
operations in the market with which the company has built up a rapport
with the existing range of products
• Process
• The strategy formulation involves the following steps:
• Step # 1. Developing Strategic Vision:
• Vision specifies what direction or path to follow.

• Specify what products, markets, technologies and customer policies to

follows
• Vision specify management aspiration for the business in long-term.

• Step # 2. Setting Objectives:

• Corporate objectives are outcome of “Mission and Vision” of
organization. Objectives define specific performance targets, results and
growth that organization wants to achieve.
• To determine the objectives an approach known as Balance
Score Card is used.
• Balance Score Card Approach
• Overall a company should set both strategic and financial
objectives. However, organization can use Balance Score Card
approach for setting objectives.
• This approach states that “Organization should focus more on achieving
strategic objectives – like “performance”, “customer satisfaction”,
“innovation” and “profitability” – than financial objectives (i.e., profit
and profit growth) only.
• Balance Score Card also provides a basis to measure company
performance against set objectives.
• Company strategic and financial objectives should be set as
short-term and long-term objectives.
• Long-Term Objectives:
• Profitability.

• Productivity.

• Competitive Position.
1.Employee Development.
2.Employee Relations.
3.Technological Leadership.
4.Public Responsibility.
•Long-term objectives represent the results expected from pursuing certain strategies, usually from
two to five years.
•Qualities of Long-Term Objectives:
• Acceptable
• Flexible
• Measurable
• Motivating
• Suitable
• Understandable
• Achievable.
• Short-range objectives can be identical to long-range objectives
for example, if a company has long- term objective of 15
percent profit growth every year, then the company’s short-term
objective would also be 15% profit growth for current year.
• Concept of Strategic Intent:
• Here intent refers to intension
• A company’s strategic intent can helps in many ways to the
company
• In becoming the dominant company in the industry;
• Unseating the existing industry leader;
• Delivering the best customer service in the industry
• The Need for Objectives at all Organizational Levels:
• that objectives should be given to each and every business units and those should be
combined with overall company objectives.
• Step # 3. Crafting a Strategy to Achieve the Objectives and Vision:
• A company’s strategic plan lays out its future direction, performance targets, and strategy.
• Vision, Objectives and crafting a strategy set the both short-term and long-term
performance targets for organization. Together, they constitute a strategic plan to deal
with industry and competitive conditions.
• For crafting or developing a strategy many assessments are performed
• three assessments are very important:
• The first determine organizational strengths and weaknesses.

• The second evaluates competitor strengths, weaknesses, and strategies, because an

organization’s strength is of less value if it is neutralized by a competitor’s strength or
strategy.
• The third assesses the competitive environment, the customers and their needs, the market,
and the market environment.
• 4. Implementing & Executing the Strategy
• Strategy implementation and execution is an operations-oriented activity. This stage is the
most demanding and time-consuming part of the strategy-management process.
• This stage is like management process and includes followings:
• Staffing the organization with the needed skills and expertise.

• Developing budgets and organizing resources to carry out those activities which are critical
to strategic success.

• Tying rewards and incentives directly to the achievement of performance objectives and
good strategy execution.

• Creating a company good culture and work climate for successful strategy implementation
and execution.
• Good Strategy Execution Involves Creating Strong “Fits”:
• Between strategy and organizational capabilities.

• Between strategy and the reward structure

• Between strategy and internal organization working systems, and

• Between strategy and the organization’s work climate and culture
• Step # 5. Monitoring Implemented Strategy and Making Corrective Adjustments:
• managing strategy is an ongoing process.
• There is one more stage in the corporate strategy management and that stage is—
monitoring and evaluating the company’s progress. As long as the company’s strategy is
going well, executives may remain stick to implemented strategy except more changes are
required with time.
• But whenever a company encounters disruptive changes or downturn in its market
positions then company managers are required to search out whether the reasons of
downturn are due to poor strategy, poor execution, or both to take timely corrective action.
• The following points try to capture strategy formulation challenges in the context of
effective operation of a business:
• . Achieving Shared Vision
• This is one of the major issues in strategy formulation. There are instances
where after choosing an appropriate strategy, the top management, among
themselves and across organizations, fails to achieve synchronization of
the vision, strategic intent and hence the strategy for way forward.
• One of the authors was involved in the selection of technology and boilers
for a small power plant for co-generation of power and steam for
processing. The delay in decision making made the company lose one
operating season as it was a highly seasonal industry. The delay was
mainly because the vision for co-generation of power was fully
understood but the streamlining with operations was not clear. It required
a combination of vision and operations expertise to consummate the idea,
causing the delay.
• . Inability of Partners to Map a Vision:
• The inability of partners to map a vision and agree on strategy formulation could be
another issue, especially in case of alliances and joint ventures, venture capitalists, and
group companies.
• the problems among partners can be addressed by promoting healthy understanding
and transparency. Key partners such as a venture capitalist can be given board
responsibilities and may be involved in decision making. It may be a good idea to have
an open and clear communication rather than taking problems to a breaking point and
then trying to resolve them.
• Managers Over-Emphasizing Tools and Techniques
• Many times, investment bankers get enthusiastic and highly impressed with
an idea, which may result in a slip at the input stage of strategy formulation.
There are a number of examples especially in major strategic decisions such
as sell-offs, mergers, diversification, and funding, which state that such
problems of investment bankers’ overdrive have resulted in big mistakes.
• Short term mentality
• Every manager act, long-term focus, because the organization has been
established with long-terms objectives/focus.
• Strategic inability
• Very often SHRM does not think strategically and he cannot think it to due in
capability. This type of inability may arise for many reasons as lack of technical
knowledge, insufficient training and the like.
• Lack of appreciation
• Sometimes top managers do not recognize the activities of strategic human
resource management
• Failure understands role: General managerial roles may not be fully understood by
be managers. This failure is due to lack of knowledge about the specialty of a degree
of responsibility
• Difficulty in quantifying outcomes
• Participation, work etc. type function cannot be quantified because of their
intangibility.
• Resistance:
• The change implemented demand some incentives for efforts to execute the
changed program. If these incentives are not given reasonable, they may create
barriers SHRM.
• Linking HR strategy with Business Strategy
• Aligning HR with business strategies makes sense and helps
ensure the company can realize goals.
• HR can inventory the current workforce to see who can be promoted to new
positions, who should be trained and how and what recruitment and outsourcing
strategies might be necessary to fulfill the plan.
• The HR staff should train the company workforce to figure out how to capitalize
on a changing business environment and train company leaders to embrace the
opportunities change can bring.
• If employees are connected to company strategy and goals and are acknowledged
for high performance, the goals are more easily met.
• HR has a delicate balancing act to develop compensation strategies that balance
company finances with employee expectations. If compensation is too low,
employees leave for greener pastures. If it is too high, the company income
statement can be adversely affected.
• Reasons for Mergers & Acquisition: Every merger and acquisition has its own
unique reasons based on the organization goals. Here is a few of them:
 Synergy

 Acquisition of technology, assets or talent

 Increasing capabilities & sharing expertise

 Increased market share

 Diversification of products and services

• HR plays a vital role in
 Employees coping up with change and culture

 Organizational hierarchy structure,

 Maintaining the productivity by placing of right people at right place

 Alignment of compensation, benefits and welfare schemes

 Job security

 Relocation

 Compliance of local labour laws

 Employee communication

 Taking care of personal/personnel records

• Best practices to be followed by HR during and after merger & acquisition:
 Identify leaders from both the companies for effective implementation, transition and
communication of the same to employees.

 Train managers on the nature of change

 Explain new roles to the people

 Orientation programs on policies and procedures

 Orientation programs on performance management, compensation, benefits and

welfare schemes

 Identify the skills of people and mapping them appropriately

• Types of Mergers
• Horizontal mergers: It refers to two firms operating in same
industry or producing ideal products combining together. For
e.g., in the banking industry in India, acquisition of Times
Bank by HDFC Bank, Bank of Madura by ICICI Bank,
Nedungadi Bank by Punjab National Bank
• Vertical Merger
• It is the merger of two or more companies that provide
different supply chain functions for a common goods or service.
This merger increases synergies and gains more control of the
supply chain process.
• In Market extension mergers new markets are found.
• In Product extension, a new range of products is explored
• Conglomerate Merger is a merger of totally unrelated business
activities. Firms involved can be of different industries.
• Post Merger HR and Cultural Issue
• It is very important to involve HR professionals in merger
& acquisition as it involves people
• Technology & HR and changing roles of HR due to
technology
• HR technology, often referred to as HR tech, has developed rapidly in recent
years, with large employers around the world widely adopting core HR
technology systems from enterprise software companies such as Oracle and SAP,
as well as specialized HR tech vendors
• Many of these employers are entering a second generation of HR technology by
migrating from their on-premises systems to new cloud platforms, including SaaS.
• Human capital management (HCM) is a bucket term for a variety of
business functions that treat employees as assets that can be managed objectively
• , HCM is usually automated with integrated software that pulls together employee
records in core HR and talent management systems.
• Many HR technology vendors also specialize in dedicated systems for specific
aspects of HCM such as talent acquisition. Electronic job boards or marketplaces
in which prospective employees and employers find each other are an example.
• HCM vs. HRIS and HRMS
• Core HR technology systems have long been marketed under the labels HRIS
(human resources information system) and HRMS (human resource management
system), but HCM has begun to displace both terms in recent years
• Although there are few differentiators among the three labels, HRIS tend to
provide technology for storing employee data and automating core HR functions
while HRMS vendors add HCM feature, including talent management. 
• Payroll some HR technology vendors specialize in payroll, many HCM
systems also incorporate the function of paying
• and tracking employees’ wages and salaries and withholding taxes and other
deductions.
• cloud-based HR technology outsourcing vendors provide payroll services as a key
component
• Some employers use time and attendance software to track the hours that
employees spend on the job and keep records of wages and salaries paid.
• a class of HR software designed to determine the best pay rates for attracting and
retaining  employees and rewarding performance. It is a component of most talent
management and compensation mgmt. softwares
• Travel and expense management
• Also related to payroll is travel and expense software, which HR departments use
to provide travel services to employees, record related expenses, pay providers
and reimburse the employee through a link to the payroll service. 
• Some organizations use expense report software to provide managers with a clear
picture of the organization’s spending through automated analytics and reporting.
• Talent management
• Talent management is the process of recruiting, developing, evaluating and
compensating employees
• HR technology vendors have developed various forms of applications and SaaS
platforms to recruit job candidates, evaluate candidates pre-interview and track
them during the hiring cycle.
• Closely related to talent management is talent acquisition, the strategic process of
finding and hiring the right employees to help achieve an organization’s goals
• employers have come to view workers as assets, acquiring employees has become
increasingly important, particularly in competitive markets such as the technology
industry itself.
• popular talent management and acquisition technologies include
• Applicant tracking system (ATS) used to post job openings on a
corporate website or job board, screen resumes, and generate interview
requests to potential candidates by e-mail. Other features may include
automated resume ranking, pre-screening questions and response
tracking
 Candidate relationship management, which allows recruiters to
maintain a pool of passive candidates that can be brought in for
consideration on short notice.
• Employee referral software that allows HR to collect recommendations
from current employees about potential and current candidates.
• Employee assessment software that helps an organization decide whether a job
candidate is suited for an open position.
• Also associated with talent management technology is succession planning
software that helps guide strategic replacement of key executives.
• Performance management
• As employers have automated other previously manual HR functions, they have
also started to embrace the idea of monitoring employees’ job performance
continuously instead of with the traditional annual job review.
• Workforce analytics uses individual performance management and skills data to
optimize the allocation and development of human capital and identify the need
for new departments and positions.
• Employee engagement
• Employee engagement platforms and apps use a variety of approaches to try to
keep workers interested in and enthusiastic about their jobs.
• Among these are mobile apps with social media-like posting and commenting
capabilities, communications platforms that allow employers to disseminate
information and workers to respond, and gamification techniques that seek to
motivate employees by making apps entertaining.
• Benefits administration
• As that digital transformation has picked up speed in recent years, benefits have
come to mean more than just health and disability insurance, vacation and sick
days.
• Learning
• Corporate training and education programs are migrating to interactive online
platforms created by HR technology vendors.
• Changing roles of HR due to technology
• Easier Recruiting
• Anyone who works in HR must be well aware of how tiring and time-cosuming
• the recruiting process is. Not to mention costly as well. Fortunately, Artificial
Intelligence (AI) has made this process less extensive.
• Companies have automated screeners that detect skills on a candidate’s resume.
This has made hiring decisions extremely easy in the early stages of recruiting.
The people in the HR department no longer need to go through tens of thousands
of emails and sort through them. They can simply use the screeners to sort them
out within seconds.
• Data Analysis of Employee Performance
• Technology makes it easier to gather and break down data on employees to get an
overall picture. Which tasks do they perform best? Do they meet all the goals from
last year’s performance appraisal? If they fell short, was it by 12 percent, 50
percent or 75 percent? Software programs can even take- over much of the work
in evaluating employees.
• Security Practices
• Securing employee records used to mean locking a file cabinet. In the 21st
century, best HR practices have to include security for the digital data. Some
security is more an IT matter, such as a good firewall. HR needs to have good
policies in place, though, governing who can access confidential data, both hard
copy and in electronic form.
• Ease of Communication
• With email, text and messaging apps it’s easier than ever for HR staff to stay in
touch with the rest of the company. If a manager wants to share a new schedule
with a project team, one email with an attachment or a conversation on Slack can
share the word with a dozen people at once.
• HRM linkage with TQM & Productivity
• HRM Linkage with TQM
• quality improvements was once thought to be the sole responsibility of specialists
(quality engineers, product designers, and process engineers).
• Today, developing quality across the entire firm can be an important function of
the human resource management (HRM) department.
• HRM act as the major change agent necessary for the successful implementation
of TQM.
• HRM linkage with Productivity
• With reports that most workforces run at about 9% capacity, there’s a
real spotlight on how we can stimulate greater productivity in order to
keep in step with today’s faster and more dynamic world.
• despite the so many new world technology making it increasingly easy
to keep in touch and connect with our co-workers, that in actual fact,
the majority of people consider themselves disconnected from the
organization they’re a part of.
• Human resources teams are in a unique position to reach out to the workforce and
design measures to increase a sense of inclusion
• Working towards bigger goals that relate back to their own jobs along with
appropriate reward, can effectively fight the problem of poor productivity.
• a combination of methods and incentives are required to really tackle this issue.
• Recruitment and training is undoubtedly another significant part of the puzzle,
appropriately, sourcing the right people for the roles and for the culture of the
company