Investment Perspective SHRM

7/25/2019 Investment Perspective SHRM

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An Investment Perspective

of SHRM

Dr.S.Yogananthan



Content

• Introduction and defnition o SHRM

• Strategic value o resources

•

SHRM concerns on HR• Types o assets and capital

• Research fndings insist on

investments• Factors considered or investment

• Recommended SHRM practices



Obectives

• To learn the role o SHRM inmanaging organi!ations

• To learn the value o various assetso organi!ation

• "no#ing the $HR value chain%

• Identiying the importance oinvestments in SHRM and return

• Role o SHRM in creating H&O



Introduction ' (efnition

• SHRM is defned as )* is theproactive management o people+ Itre,uires thin-ing ahead. and

planning #ays or a company tobetter meet the needs o itsemployees. and or the employees to

better meet the needs o thecompany/+



More defnitions*+

• 0ccording to Schuler . )all those activitiesa1ecting the behaviour o individuals in theire1orts to ormulate and implement strategicneeds o business/+

• Mabey et al defned )SHRM as the process odeveloping corporate capability to deliver ne#organi!ational strategies/+

•

Wright & McMahan defned as ) the pattern oplanned human resource deployments andactivities intended to enable an organi!ation toachieve its goals/+



Increasing scope and ocuson HR

• Strategic 2alue o HR

– The $Only% biological resource ' gro#ing asset

– 3nli-e other resources. commonly

appreciated in $value% – $0ctive% resource #hich utili!es other

resources

– Has got $gro#th ' developmental%

perspective – Consist o $e4trinsic ' intrinsic% values

– O#n $Sustainable competitive advantage%



5hy SHRM concentrates more on

HR6

• Concern in the ollo#ing areas are gro#ingimportance or SHRM7

– Human &rocess S-ills 8 Creativity ' Innovation. (ecisionma-ing. 9udgment. Motivation ' Commitment.

:eadership and Team #or- – ;ro#th 8 Over a period o time. enhancement in

perormance by the means o $productivity. contribution.reliability ' responsiveness and monitory value%

– (evelopment 8 0chieving ne# milestones in individual%s

career and developing ne# -no#ledge <oconceptual=technical =human personal domains>according to $?4ternal = Internal environment. mar-ets.processes. customers ' Technology% needs+



Types o organi!ational assets ' capital<Courtesy7 9e1rey+ 0+ Mello. te4t boo- on SHRM. South@ 5estern. And edition. ABB ?dition>



Is it ris-y to invest in HR6

• 0ccording to Robert "aplan ' (avid Dorton. The authorso Ealanced Score Card. in their research revealed both

sides o the coin that )less than BG o all strategicbusiness plans are e1ectively e4ecuted/+

•

Moving rom Tangible to Intangible assets o humancapital becoming increasingly ris-y as perormance

metrics are not periodically redefned and developed+

• ABB frms have been surveyed rom A to .among the companies. top B and bottom B companies

are compared bet#een their #or-orce in terms o $sales.mar-et value and turnover%+ JG o return on

investments sho#n by the top B companies revealedthe secret o investing on human capital+ A



Research revelations on HumanCapital

Reerence7 given belo#+



HR value chain



Factors considered on investmentperspectives by Management

• Management 2alues

• Dature o employee s-ills

•

0vailability o outsourcing• 3tilitarianism

• 0ttitude to#ards ris-



Management 2alues

Virgin Atlantic case

• 5hile loo-ing into $2irgin 0tlantic%case. their HRM policy to hire thesuitable #ho bring )their personality

to provide best o its -ind #or-/

• They recruits the #or-orce #hoassimilates #ith $2irgin #ay o lie%+



Dature o employee s-ills

• 0ccording 0M0 <0mericanManagement 0ssociation> criticalskills survey reports 8 ABB revealed

that the K $C%s as $core importance%s-ills are given belo# – Creativity ' Innovation

– Critical thin-ing ' problem solving – Communication

– Collaboration



0vailability o outsourcing

• 0 deault role o corporate. $Ma-e or Source%decision. is largely e4ercised based uponthe ollo#ing domains o organi!ation+ –

Core – Critical

– Don core

– Don critical

• Freedom o outsourcing derived romstrategic rame#or- along #ith<organi!ations> vision and mission+



3tilitarianism

• 9ohn Stuart Mill ' 9eremy Eentham 8the authors o $3tilitarianism% . pavethe understanding o this concept en

route or investment perspective. bythe means o ulflling ollo#ingconcerns @ early returns. #in 8 #in

situation. process development andprogressive gro#th+



0ttitude to#ards ris-

• (ispersion o authority by either$centrali!ation or decentrali!ation%have an immense impact on attitude

to#ards ris-+ 0lso rom top tobottom. it is declined relatively andgradually as the $ris-@aversion%

behaviour reciprocally surged+• oun!ary less organi"ations% are the

classic e4amples o encouraging ris-+

<?4@ ;oogle>



Creating high perormance

organi!ations <H&O>

• Recommended SHRM practices are

– Selective recruitment & hiring

– #reating an! empo$ering teams

– Integrating HRM strategy – %nhance! training an! !evelopment

– #hanneli"ing proper communication

– inking performance an! pay

– #reating supportive culture

– Promoting %HS 'environment( health an!safety)



Recommended SHRMpractices*+

• Selective recruitment & hiring * ensuresright man'$ith congruency an! tactful!iscipline) in right +ob on right time in

given right environment ,• #reating an! empo$ering teams *

i!enti-cation an! !esigning precise mi. of'!elegate!) personnel as team an!

empo$ering them to enable e.cellence,• %nhance! training an! !evelopment *

hea!$ay from organi"ational learning to

learning organi"ation at all levels,



Recommended SHRMpractices*+

• #hanneli"ing proper communication/ !evising acommunication mi. '$ith combination of formal (informal & other forms) $hich serves all the i!ealob+ectives of organi"ation,

• inking performance an! pay * Merit 0 #ontingency pay mo!els are largely e.ercise! in to!ay1scorporate scenario in ensuring high performance,

• #reating supportive culture * to mol! an! tap

intrinsic $orth of the employees( human processinterventions taken into consi!eration,

• Promoting %HS 'environment( health an! safety) * as per norms & gui!ance of 2SHA( at I2( 3eneva,



Summary

• In comparison #ith other resources oorgani!ation. HR has been identifed as mostvital strategic ' gro#ing asset and SHRM playthe $top level% hierarchy o HRM domain+

• It is e,ually reali!ed that investing on intrinsicdevelopment is highly ris-y and to beamended #ith caution+

•

2arious actors considered in investmentperspectives along #ith recommendedpractices+



Reerence• Michael 0rmstrong. 0rmstrong%s handboo- o SRHM. "ogan page. th edition+• "aplan. R+. ' Dorton. (+ <ABB>+ 4he strategy/focuse! organi"ation5 Ho$

balance! scorecar! companies thrive in the ne$ business environment,Eoston7 Harvard Eusiness School &ress+

• :eslie 5eatherly. HR content e4pert. &erormance management @ getting itright rom the start. "ronos 8 SHRM research ,uarterly. ABBK+

• ;ary (essler. Chapter J. Strategic Human Resource Management and the HR

Scorecard+• 9e1rey+ 0+ Mello. Te4t boo- on SHRM. Cengage learning. Indian ?dition. ABB.

Lth reprint edition+

• http7==###+virgin@atlantic+com=en=gb=allaboutus=ourstory=orstudents+sphuman

• http7==###+businessperorm+com=blog=ABB=A=BK=employee@s-ills@global@economy@J+htm

• Ronan Mclvar. The outsourcing practices7 Strategies or evaluation 'management. 0mbridge university press. ABB edition. &age to A+

• Stanord encyclopedia o philosophy. history o utilitarianism+

• 0it "umar "ar. Strategic Human Resource Management7 0n Organi!ational&erspective or High &erormance. International 6ournal of usiness an!Management 4omorro$ Vol, 7 8o, 9 ( page :,

Investment Perspective SHRM

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