UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

7. PM emphasizes on economic rewards and traditional design of job simplification for
motivating people for better performance. HRM emphasizes on the satisfaction of
higher needs of motivating people, autonomous work group, challenging jobs and
creativity.
8. PM considers job satisfaction and morale as cause of improved performance. It works
on the basis that a happy worker is a productive worker. The emphasis of HRM is the
other way round. It is based on the premise that better performance itself is a source of
satisfaction and high morale.
Role of HRM in Strategic Management:
HRM is being used to develop competitive advantages and therefore, its role in
strategic management is well recognized. Strategic management is the continuous process
of relating the organization with its environment by suitable course of action involving
strategy formulations and its implementation. Strategy is a course of action through which
the organization relates itself with the environment so as to achieve its objectives.
HRM linked with corporate strategic management can be appreciated from the
following figure:
Corporate
mission
and
objectives
Strategy Formulation
Environmental
opportunities
and threats
Strategic
alternatives
Corporate
strengths
and
weakness
Choice
of
strategy
Personal
value and
aspirations
strategists
Strategy
implementati
on
Activating strategic
Structural implementation
Behavioural
implementation
Function implementation
Role of HRM
Acquiring
Developing
Integrating and
Retaining
Personnel
Strategy formulation involves the choice of appropriate strategy in the light of
corporate mission and objectives, environment opportunities and threats and corporate
strengths and weaknesses.
Corporate world uses SWOT analysis in every situation. Expansion of SWOT is