MBA (DISTANCE MODE) DBA 1744 STRATEGIC HUMAN MANAGEMENT AND DEVELOPMENT III SEMESTER COURSE MATERIAL Centre for Distance Education Anna University Chennai Chennai – 600 025 Author MMMMMsssss..... AAAAA..... TTTTThhhhhiiiiirrrrruuuuuccccchhhhheeeeelllllvvvvviiiii Lecturer, Department of Management Studies, Anna University Chennai, Chennai - 600 025. Reviewer MMMMMrrrrr.....AAAAA.....KKKKK..... SSSSShhhhheeeeeiiiiikkkkk MMMMMaaaaannnnnzzzzzoooooooooorrrrr Lecturer, Department of Management Studies, Anna University Chennai, Chennai - 600 025 Editorial Board DDDDDrrrrr.....TTTTT.....VVVVV.....GGGGGeeeeeeeeeettttthhhhhaaaaa DDDDDrrrrr.....HHHHH.....PPPPPeeeeeeeeeerrrrruuuuu MMMMMooooohhhhhaaaaammmmmeeeeeddddd Professor Professor Department of Computer Science and Engineering Department of Management Studies Anna University Chennai Anna University Chennai Chennai - 600 025 Chennai - 600 025 DDDDDrrrrr.....CCCCC..... CCCCChhhhheeeeellllllllllaaaaappppppppppaaaaannnnn DDDDDrrrrr.....AAAAA.....KKKKKaaaaannnnnnnnnnaaaaannnnn Professor Professor Department of Computer Science and Engineering Department of Computer Science and Engineering Anna University Chennai Anna University Chennai Chennai - 600 025 Chennai - 600 025 Copyrights Reserved (For Private Circulation only) ii iii ACKNOWLEDGEMENT The author has driven inputs from several sources for the preparation of this course material to meet the requirements of the syllabus. The author gracefully acknowledges the following sources. • Jeffrey A Mello, ‘Strategic Human Resource Management’, Thomson, Singapore, south western 2003. • Randy L.Desimone, Jon M. Werner – David M. Marris, ‘Human Resource Development’, Thomson Southwestern, Singapore, 2002 • Raymond Noe, John Hollenbeck, Barry Gerhart, Patrick Wright, ‘Fundamentals of Human Resource Management’, Tata Mcgraw Hill, New Delhi, 2007. • Hodgets, Luthans, Doh, ‘International Management – Culture, Strategies and Behavior’, Tata Mcgraw Hill, 2007. • Robert L.Mathis and John H.Jackson, ‘Human Resource Management’, Thomson Southwestern, Singapore, 2003. • Rosemary Harrison, ‘Employee Development’ –University Press, India ltd, New Delhi, 2003. • Srinivas Kandula, ‘Human Resource Management in Practice’, Prentice Hall of India, 2005, New Delhi, 2004. In spite of at most care taken to prepare the list of references any omission in the list is only accidental and not purposeful. A.Thiruchelvi Author v DBA 1744 STRATEGIC HUMAN MANAGEMENT AND DEVELOPMENT UNIT I – HUMAN RESOURCE DEVELOPMENT Meaning- Strategic framework for HRM and HRD –Vision, Mission and Value-Importance –Challenges to organisations –HRD functions –Roles of HRD professionals –HRD needs assessment –HRD practices –Measures of HRD performance – Links to HR, Strategy and business goals –HRD program implementation and evaluation – Recent trends –strategic capability, bench marking and HRD audit. UNIT II– E-HRM E - Employee profile – E- selection and recruitment – Virtual learning and orientation – E-training and development – E- performance management and compensation design –Development and implementation of HRIS- Designing HR portals –Issues in employee privacy –Employee surveys online. UNIT III – CROSS CULTURAL HRM Domestic Vs International HRM – Cultural dynamics – Culture assessment - Cross cultural education and training programs – Leadership and strategic HR issues in international assignments – Current challenges in outsourcing, cross border M and A-Repatriation etc. – Building muticultural organisations- international compensation. UNIT IV – CAREER & COMPETENCY DEVELOPMENT Career concepts – Roles – Career stages – Career planning and process – Career development models- Career motivation and enrichment – Managing career plateaus –Designing effective career development systems- Competencies and career management- Competency mapping models- Equity and competency based compensation. UNIT V – EMPLOYEE COACHING & COUNSELING Need forcoaching – Role of HR in coaching – Coaching and performance- Skills for effective coaching – Coaching effectiveness – Need for counselling – Role of HR in counseling – Components of counseling programs –Counseling effectiveness –Employee health and welfare programs – Work stress- Sources – Consequencies – Stress management techniques – Eastern and Western practices- Self management and Emotional intelligence. REFERENCES • Jeffrey A Mello, ‘Strategic Human Resource Management’, Thomson, Singapore, southwestern 2003. • Randy L.Desimone, Jon M. Werner – David M. Marris, ‘Human Resource Development’, Thomson Southwestern, Singapore, 2002 • Robert L.Mathis and John H.Jackson, ‘Human Resource Management’, Thomson Southwestern, Singapore, 2003. • Rosemary Harrison, ‘Employee Development’ –University Press, India ltd, new Delhi, 2003. • Srinivas Kandula, ‘Human Resource management in Practice’, Prentice Hall of India, 2005, New Delhi, 2004. vii CONTENTS UNIT I HUMAN RESOURCE DEVELOPMENT 1.1 INTRODUCTION 1 1.2 STRATEGIC HUMAN RESOURCE MANAGEMENT 1 1.2.1 Strategic HR Vs Traditional HR 4 1.2.2 Barriers To Strategic HRM 5 1.2.3 Benefits of SHRM 6 1.3 HUMAN RESOURCE DEVELOPMENT (HRD) 7 1.3.1 Characteristics of HRD 10 1.4 HRM AND HRD 10 1.5 VISION, MISSION AND VALUES 12 1.5.1 Vision Statement 12 1.5.2 Mission Statement 12 1.5.3 Core Values 12 1.5.4 Organizational Vision And Mission for HRD 12 1.5.5 Vision for HRD Department 13 1.6 CHALLENGES TO ORGANIZATION 15 1.7 HRD AND BUSINESS GOALS OR ORGANIZATIONAL EFFECTIVENESS 18 1.7.1 HRD Methods or HRD functions 18 1.7.2 HRD Process 21 1.7.3 HRD Outcomes 23 1.8 ROLES OF HRD PROFESSIONALS 24 1.8.1 Contemporary Hrd Professionals Roles 25 1.8.2 Attributes of HRD Manager 26 1.9 NEED ASSESSMENT Of HRD 27 1.9.1 What are Needs 27 1.9.2 Purpose and Levels of Needs Assessment 27 1.9.3 Steps and Methodologies 28 1.9.4 The Link to Evaluation 29 1.9.5 Guidelines 30 1.10 HRD IMPLEMENTATION AND EVALUATION 30 1.10.1 HRD Implementation 30 1.10.2 Evaluation Of HRD Effectiveness 31 1.10.3 Measures Of HRD Performance 31 ix 1.11 HRD PRACTICES 35 1.12 STRATEGIC CAPABILITY 38 1.12.1 Building Strategic Capability: The roles of the HR manager or HR Business Partner and Centers of Expertise (CoE) 39 1.12.2 Sources of Resistance from HR Personnel 42 1.12.3 Recommendations 43 1.13 BENCHMARKING AND HRD AUDIT 45 1.13.1 Benchmarking of Human Resource Performance 45 1.13.2 How to do Benchmarking Analysis 45 1.13.3 HRD Audit 45 1.13.4 Concepts of HRD Audit 46 1.13.5 Why do companies want HRD Audit 47 1.14 RECENT TRENDS 48 UNIT II E-HRM 2.1 INTRODUCTION 53 2.2 DEFINING E-HRM 53 2.2.1 E-HRM goals 54 2.2.2 E-HRM outcomes 54 2.2.3 Types of E-HRM 54 2.2.4 A model of E-HRM 54 2.2.5 Features of E-HRM 56 2.2.6 Implementation of E-HRM 56 2.2.7 Advantages of E-HRM 57 2.2.8 Disadvantages of E-HRM 57 2.3 E-EMPLOYEE PROFILE 58 2.4 E-RECRUITMENT AND E-SELECTION 59 2.4.1 E-Recruitment 60 2.4.2 E-Selection 62 2.5 E-LEARNING AND E-TRAINING 65 2.5.1 Virtual Learning 65 2.5.2 E-Training 71 2.6 E-PERFORMANCE MANAGEMENT AND E-COMPENSATION 77 2.6.1 Traditional Performance Management Vs E-Performance Management 77 2.6.2 Compensation Management 81 x 2.7 HUMAN RESOURCE INFORMATION SYSTEM (HRIS) 84 2.7.1 Components of HRIS 85 2.7.2 Why HRIS 86 2.7.3 Developing HRIS 87 2.8 HR PORTALS 92 2.8.1 Designing HR Portals 92 2.9 EMPLOYEE PRIVACY 96 2.10 EMPLOYEE SURVEYS ONLINE 98 2.10.1 Employee Surveys 98 2.10.2 Mail Surveys 98 2.10.3 Web Surveys 98 UNIT III CROSS CULTURAL HRM 3.1 INTRODUCTION 103 3.2 DOMESTIC VS INTERNATIONAL HRM 104 3.2.1 Issues in IHRM 107 3.3 CULTURE 111 3.3.1 Cultural Dynamics 113 3.3.2 Steps in Organizational Culture Change 114 3.3.3 Culture Assessment 114 3.4 CROSS CULTURAL EDUCATION AND TRAINING 120 3.4.1 International Workforce 120 3.4.2 Types of International Training 122 3.4.3 Why Diversity Training Fails 125 3.5 LEADERSHIP IN INTERNATIONAL ASSIGNMENTS 128 3.5.1 Attitude of European managers 129 3.5.2 Japanese Leadership Approach 129 3.5.3 Japanese Vs US leadership styles 129 3.5.4 Leadership Style in India 131 3.5.5 Recent Researches in International Leadership 131 3.6 CURRENT CHALLENGES 132 3.6.1 Outsourcing 132 3.6.2 Challenges in outsourcing 133 3.6.3 Mergers and Acquisitions (M and A) 134 3.7 BUILDING MULTICULTURAL ORGANIZATIONS 141 3.7.1 Characteristics of a multicultural organization 141 3.7.2 Principles for building multicultural organizations 141 3.7.3 Attributes of an effective multicultural manager 143 xi 3.8 INTERNATIONAL COMPENSATION 143 3.8.1 Objectives of International Compensation 144 3.8.2 Key Components of an International Compensation Program 145 3.8.3 Approaches to Compensation Package 148 UNIT IV CAREER & COMPETENCY DEVELOPMENT 4.1 INTRODUCTION 153 4.2 CAREER CONCEPTS 154 4.2.1 Important Terms 154 4.2.2 Career Anchors 155 4.3 CAREER PLANNING 156 4.3.1 Career Planning Vs Manpower Planning 157 4.3.2 Career Planning Vs Succession Planning 157 4.3.3 Need for Career Planning 158 4.3.4 Objectives of Career Planning 158 4.3.5 Career Planning Process 158 4.3.6 How Do People Choose Careers 160 4.4 WHAT IS CAREER DEVELOPMENT 160 4.4.1 The Career Development Program 161 4.4.2 Roles in Career Development 162 4.4.3 Tools used 165 4.5 CAREER MANAGEMENT 167 4.6 CAREER MODELS 169 4.6.1 Traditional Models 169 4.6.2 Contemporary view of career Development. 170 4.7 DEVELOPING CAREER MOTIVATION 172 4.7.1 Methods of increasing Career Motivation 173 4.8 CAREER PLATEAU 173 4.8.1 Types of Career Plateaus 174 4.8.2 Good or bad 174 4.8.3 Sources and symptoms 174 4.8.4 Managing the plateau 175 4.8.5 Recognizing the Plateau 175 4.8.6 Strategic Responses to Career plateau 175 4.8.7 Effective Career Development Systems 177 4.9 COMPETENCIES 177 4.9.1 Classification of Competencies 178 4.9.2 Four Competencies In Career Management 179 xii 4.10 COMPETENCY MAPPING 180 4.10.1 Models for competency mapping 180 4.10.2 Model of Common management Competencies 181 4.11 EQUITY AND COMPETENCY BASED PAY 182 4.11.1 Compensation 182 4.11.2 Competency Based Pay 184 4.11.3 Equity Based Pay 185 UNIT V EMPLOYEE COACHING & COUNSELING 5.1 INTRODUCTION 191 5.2 COACHING 192 5.2.1 Coaching and Mentoring 192 5.2.2 Characteristics of Coaching 194 5.2.3 Need for coaching 194 5.2.4 Stakeholders in coaching 194 5.2.5 Benefits of Coaching 196 5.3 COACHING AND PERFORMANCE 197 5.3.1 Coaching to Improve Poor Performance 199 5.4 SKILLS FOR EFFECTIVE COACHING 201 5.5 COACHING EFFECTIVENESS 204 5.5.1 How to improve effectiveness 204 5.5.2 How to check Effectiveness 204 5.6 COUNSELING 205 5.6.1 What is Employee Counseling 206 5.6.2 Ingredients of counseling 206 5.6.3 Need for Counseling 207 5.6.4 Hurdles for counseling 207 5.6.5 Benefits of counseling 207 5.6.6 Basic requisites of employee counseling 207 5.6.7 Steps in Counseling Process 208 5.6.8 When Not to Counsel 208 5.6.9 Characteristics of Effective Employee Coaching 210 5.7 ROLES IN COUNSELING 211 5.7.1 Role of supervisor and manager in counseling 211 5.8 THE CRITICAL DIMENSIONS OF COUNSELING 213 5.9 EMPLOYEE WELFARE AND HEALTH PROGRAMS 214 5.9.1 Employee Welfare 214 5.9.2 Employee Health 217 xiii