Hr Practices for New Generation

“Hello, Ramesh can you collect your cheque today? I am available at my desk post lunch” said the HR executive. “Of course Sir for sure I am just on my way to office, meet you then” Ramesh replied. It’s only during the time when we have to collect our monthly payments, reimbursements and other menial work that we are reminded of these quiet but people’s people called the HR guys. On other days we generally run after finance for supplying us with money and marketing guys to make the product launches a success and hit their pre-defined targets.

Few years ago this was the typical scenario with all the Rameshs in various offices, who didn’t recognize the power of HR department. With the advent of technology, globalisation and open market policy, we have been able to taste the cut-throat competition that prevails outside the domestic market. MNCs have not only brought sophisticated processes and manufacturing capabilities but a dire need to convert every component of a company into a competitive advantage. It largely focuses on adding more than expected value to the value chain activities of the company.

Marketing, logistics and operations occupy the positions of being primary activities in the value chain, while procurement, HRM, technology and firm infrastructure occupy the positions of being support functions. HRM (Human Resource Management) is the policies and practices one needs to carry out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising1. Thus HRM seems to be the most important support function amongst these four since you need right, engaged and motivated people in first place to perform the primary activities. The increasing importance of HR in any company today goes beyond the purview of only managing personnel as was in earlier days.

This gives birth to the concept of leveraging the HR talent in the company at a strategic level. Strategic HRM is a mind-set that leads to...