netrashetty
Netra Shetty
Oracle Financial Services Software Limited (formerly called i-flex Solutions Limited Reuters: IFLX.BO and IFLX.NS ) is an IT solution provider to the banking industry. Oracle Financial Services is majority owned by Oracle Corporation. It claims to have more than 900 customers in over 135 countries.[1]
The SHRM literature is rooted in ‘manpower’ (sic) planning, but it was the work of
influential management gurus (for example Ouchi, 1981; Peters & Waterman, 1982),
affirming the importance of the effective management of people as a source of
competitive advantage, that encouraged academics to develop frameworks emphasizing
the strategic role of the HR function (for example Beer et al., 1985; Fombrun et
al., 1984) and attaching the prefix ‘strategic’ to the term ‘human resource management’.
Interest among academics and practitioners in linking the strategy concept to
HRM can be explained from both the ‘rational choice’ and the ‘constituency-based’
perspective. There is a managerial logic in focusing attention on people’s skills and
intellectual assets to provide a major competitive advantage when technological superiority,
even once achieved, will quickly erode (Barney, 1991; Pfeffer, 1994, 1998a).
From a ‘constituency-based’ perspective, it is argued that HR academics and HR practitioners
have embraced SHRM as a means of securing greater respect for HRM as a
field of study and, in the case of HR managers, of appearing more ‘strategic’, thereby
enhancing their status within organizations (Bamberger & Meshoulam, 2000; Pfeffer
& Salancik, 1977; Powell & DiMaggio, 1991; Purcell & Ahlstrand, 1994; Whipp, 1999).
The SHRM literature is rooted in ‘manpower’ (sic) planning, but it was the work of
influential management gurus (for example Ouchi, 1981; Peters & Waterman, 1982),
affirming the importance of the effective management of people as a source of
competitive advantage, that encouraged academics to develop frameworks emphasizing
the strategic role of the HR function (for example Beer et al., 1985; Fombrun et
al., 1984) and attaching the prefix ‘strategic’ to the term ‘human resource management’.
Interest among academics and practitioners in linking the strategy concept to
HRM can be explained from both the ‘rational choice’ and the ‘constituency-based’
perspective. There is a managerial logic in focusing attention on people’s skills and
intellectual assets to provide a major competitive advantage when technological superiority,
even once achieved, will quickly erode (Barney, 1991; Pfeffer, 1994, 1998a).
From a ‘constituency-based’ perspective, it is argued that HR academics and HR practitioners
have embraced SHRM as a means of securing greater respect for HRM as a
field of study and, in the case of HR managers, of appearing more ‘strategic’, thereby
enhancing their status within organizations (Bamberger & Meshoulam, 2000; Pfeffer
& Salancik, 1977; Powell & DiMaggio, 1991; Purcell & Ahlstrand, 1994; Whipp, 1999).
Concepts and models
In spite of the increasing volume of research and scholarship, the precise meaning of
strategic HRM and HR strategy remains problematic. It is unclear, for example, which
one of these two terms relates to an outcome or a process (Bamberger & Meshoulam,
2000). For Snell et al., (1996, p. 1996) ‘strategic HRM’ is an outcome: ‘as organizational
systems designed to achieve sustainable competitive advantage through people’. For
others, however, SHRM is viewed as a process, ‘the process of linking HR practices to
business strategy’ (Ulrich, 1997, p. 89). Similarly, Bamberger and Meshoulam (2000,
p. 6) describe SHRM as ‘the process by which organizations seek to link the human,
social, and intellectual capital of their members to the strategic needs of the firm’.
According to Ulrich (1997, p. 190) ‘HR strategy’ is the outcome: ‘the mission, vision
and priorities of the HR function’. Consistent with this view, Bamberger and
Meshoulam (2000, p. 5) conceptualize HR strategy as an outcome: ‘the pattern of decisions
regarding the policies and practices associated with the HR system’. The authors
go on to make a useful distinction between senior management’s ‘espoused’ HR
strategy and their ‘emergent’ strategy. The espoused HR strategy refers to the pattern
of HR-related decisions made but not necessarily implemented, whereas the emergent
HR strategy refers to the pattern of HR-related decisions that have been applied in the
workplace. Thus, ‘espoused HR strategy is the road map … and emergent HR strategy
is the road actually traveled’ (Bamberger & Meshoulam, 2000, p. 6). Purcell (2001) has
also portrayed HR strategy as ‘emerging patterns of action’ that are likely to be much
more ‘intuitive’ and only ‘visible’ after the event.
We begin the discussion of SHRM and HR strategy with a focus on the link between
organizational strategy formulation and strategic HR formulation. A range of business–
HRM links has been classified in terms of a proactive–reactive continuum (Kydd &
Oppenheim, 1990) and in terms of environment–human resource strategy–business
strategy linkages (Bamberger & Phillips, 1991). In the ‘proactive’ orientation, the HR
professional has a seat at the strategic table and is actively engaged in strategy formulation.
In Figure 2.3 above, the two-way arrows on the right-hand side showing both
downward and upward influence on strategy depict this type of proactive model.
At the other end of the continuum is the ‘reactive’ orientation, which sees the HR
function as being fully subservient to corporate and business-level strategy, and
organizational-level strategies as ultimately determining HR policies and practices.
Once the business strategy has been determined, an HR strategy is implemented to
support the chosen competitive strategy. This type of reactive orientation would be
depicted in Figure 2.3 above by a one-way downward arrow from business- to functional-
level strategy. In this sense, a HR strategy is concerned with the challenge of
matching the philosophy, policies, programmes, practices and processes – the ‘five Ps’
– in a way that will stimulate and reinforce the different employee role behaviours
appropriate for each competitive strategy (Schuler, 1989, 1992).
The importance of the environment as a determinant of HR strategy has been
incorporated into some models. Extending strategic management concepts,
Bamberger and Phillips’ (1991) model depicts links between three poles: the environment,
human resource strategy and the business strategy (Figure 2.5). In the hierarchy
of the strategic decision-making model (see Figure 2.3 above), the HR strategy is influenced
by contextual variables such as markets, technology, national government policies,
European Union policies and trade unions. Purcell and Ahlstrand (1994) argue,
however, that those models which incorporate contextual influences as a mediating
• No proper future planning.
• prefers internal source of recruitment a lot. TETRA PAK gives priority to promotion from within and job posting over external sources of recruitment.
• The job analysis is done through interview which can be misleading because of distortion of information. The employee can give false information as well which will be harmful for the organization, as job analysis has an ultimate effect on recruitment and selection.
• There is not any concept of job enlargement, job enrichment and dejobbing which are the main stream of modern day HRM and very fruitful for the organization.
• The outsource of executive level persons from other companies which violates the law of EEO.
• does not investigate about the past of their selected employee and this can be harmful to them in future. They only contact to a candidate’s references, and it is obvious that references which candidates have provided will only talk about the goodness of a candidate.
• They don’t take any kind of test while selecting a new employee that can be a good tool of evaluating the skills of the people.
• They conduct only constructed interviews. In this case, there is a possibility of neglecting the question that must be asked to the candidate.
• They take one-on-one interview from the candidate which is lesser efficient tool as compared to panel interview.
• The productivity of employees is not satisfactory because the company is not giving proper attention in training and development. By formulating recommended training and development strategies company can generate proficient workforce.
• The bonus strategies are in accord with the ranks, which can demotivate the deserving employees. So company should reestablish the bonus strategy so that the deserving employees are properly compensated according to their worth.
• For the sake of performance appraisal company is currently using performance appraisal form which is not enough for sufficiently measuring the performance level.
• Company is lacking in formulating any strategy regarding employee relations building. Necessary activities are organized by the company for this purpose.
• Leaders in are not positive role models. Employees in do not take their leaders as positive role models. This means that leaders in have such an attitude or they perform in such a way that does not attract or impress their subordinates, employees do not learn any thing from their leaders which raises the chance of conflict between them.
Ideally, such MNC’s have emerged quite in number and have dominated in United Kingdom for such time now and have been involved to such policy issues and challenges from within the process. One area is focusing on human resource management (HRM) and knowing what are its main drivers in lieu to HRM policy. Thus, the need to understand great majority of multinational cooperation in such HR arrangements that can be made up of humanitarian force that can possibly be called to participate in such multinational framework, the focus of the research will be centering on the United Kingdom and from certain views, as United Kingdom in its human resource management is duly situated to such personal systems of staff and employees within social system of the company. The one difficulty in handling human resources for MNC implies such paradoxical fact that such multinational groups have no direct access to the psychical performance of employees.
The core function of human resource management can be in such aspect such as the paradoxical management as it is working within production factors and thus uncertainty organization with such work available from within as the UK’s integration of human resource management will have to ensure the employees ability and such motivation, the willingness to perform well within the area they belong with in such ideal autonomy within MNC companies: Thus, such UK company dependence on the staff will amiably increase due to required process of such productivity and knowledge accumulation being one ideal part of HR success. Aside, frequent adjustment time for the MNC’s to give their workers boosts such interest level of attitude towards work from balanced expectation as there can be connection of a creative job tasking as relevant for UK MNC’s to have good competitive spirit within proper handling of the HR drivers as directly as possible.
Truly, it can be that such safe ways in the willingness to perform well within an area will emerge due to the ideal HR milieu as supporting staff involvement putting ample eagerness of the MNC’s within the UK such as for example, the promotion of employee capability and such ability to execute his roles with corresponding materials as provided by the HR department for such selection and development of staff performances towards work with concern of creating work environment that staff centered drivers such as those that will motivate them and provide job satisfaction remarks that can be based on work initiative values respectively. The HR area of MNC’s will just back up such activities of the management upon such job function that has been duly recognized by the people within the HR team as there should be teamwork in MNC’s HR along with the executive personnels’ involved in the process.
The SHRM literature is rooted in ‘manpower’ (sic) planning, but it was the work of
influential management gurus (for example Ouchi, 1981; Peters & Waterman, 1982),
affirming the importance of the effective management of people as a source of
competitive advantage, that encouraged academics to develop frameworks emphasizing
the strategic role of the HR function (for example Beer et al., 1985; Fombrun et
al., 1984) and attaching the prefix ‘strategic’ to the term ‘human resource management’.
Interest among academics and practitioners in linking the strategy concept to
HRM can be explained from both the ‘rational choice’ and the ‘constituency-based’
perspective. There is a managerial logic in focusing attention on people’s skills and
intellectual assets to provide a major competitive advantage when technological superiority,
even once achieved, will quickly erode (Barney, 1991; Pfeffer, 1994, 1998a).
From a ‘constituency-based’ perspective, it is argued that HR academics and HR practitioners
have embraced SHRM as a means of securing greater respect for HRM as a
field of study and, in the case of HR managers, of appearing more ‘strategic’, thereby
enhancing their status within organizations (Bamberger & Meshoulam, 2000; Pfeffer
& Salancik, 1977; Powell & DiMaggio, 1991; Purcell & Ahlstrand, 1994; Whipp, 1999).
The SHRM literature is rooted in ‘manpower’ (sic) planning, but it was the work of
influential management gurus (for example Ouchi, 1981; Peters & Waterman, 1982),
affirming the importance of the effective management of people as a source of
competitive advantage, that encouraged academics to develop frameworks emphasizing
the strategic role of the HR function (for example Beer et al., 1985; Fombrun et
al., 1984) and attaching the prefix ‘strategic’ to the term ‘human resource management’.
Interest among academics and practitioners in linking the strategy concept to
HRM can be explained from both the ‘rational choice’ and the ‘constituency-based’
perspective. There is a managerial logic in focusing attention on people’s skills and
intellectual assets to provide a major competitive advantage when technological superiority,
even once achieved, will quickly erode (Barney, 1991; Pfeffer, 1994, 1998a).
From a ‘constituency-based’ perspective, it is argued that HR academics and HR practitioners
have embraced SHRM as a means of securing greater respect for HRM as a
field of study and, in the case of HR managers, of appearing more ‘strategic’, thereby
enhancing their status within organizations (Bamberger & Meshoulam, 2000; Pfeffer
& Salancik, 1977; Powell & DiMaggio, 1991; Purcell & Ahlstrand, 1994; Whipp, 1999).
Concepts and models
In spite of the increasing volume of research and scholarship, the precise meaning of
strategic HRM and HR strategy remains problematic. It is unclear, for example, which
one of these two terms relates to an outcome or a process (Bamberger & Meshoulam,
2000). For Snell et al., (1996, p. 1996) ‘strategic HRM’ is an outcome: ‘as organizational
systems designed to achieve sustainable competitive advantage through people’. For
others, however, SHRM is viewed as a process, ‘the process of linking HR practices to
business strategy’ (Ulrich, 1997, p. 89). Similarly, Bamberger and Meshoulam (2000,
p. 6) describe SHRM as ‘the process by which organizations seek to link the human,
social, and intellectual capital of their members to the strategic needs of the firm’.
According to Ulrich (1997, p. 190) ‘HR strategy’ is the outcome: ‘the mission, vision
and priorities of the HR function’. Consistent with this view, Bamberger and
Meshoulam (2000, p. 5) conceptualize HR strategy as an outcome: ‘the pattern of decisions
regarding the policies and practices associated with the HR system’. The authors
go on to make a useful distinction between senior management’s ‘espoused’ HR
strategy and their ‘emergent’ strategy. The espoused HR strategy refers to the pattern
of HR-related decisions made but not necessarily implemented, whereas the emergent
HR strategy refers to the pattern of HR-related decisions that have been applied in the
workplace. Thus, ‘espoused HR strategy is the road map … and emergent HR strategy
is the road actually traveled’ (Bamberger & Meshoulam, 2000, p. 6). Purcell (2001) has
also portrayed HR strategy as ‘emerging patterns of action’ that are likely to be much
more ‘intuitive’ and only ‘visible’ after the event.
We begin the discussion of SHRM and HR strategy with a focus on the link between
organizational strategy formulation and strategic HR formulation. A range of business–
HRM links has been classified in terms of a proactive–reactive continuum (Kydd &
Oppenheim, 1990) and in terms of environment–human resource strategy–business
strategy linkages (Bamberger & Phillips, 1991). In the ‘proactive’ orientation, the HR
professional has a seat at the strategic table and is actively engaged in strategy formulation.
In Figure 2.3 above, the two-way arrows on the right-hand side showing both
downward and upward influence on strategy depict this type of proactive model.
At the other end of the continuum is the ‘reactive’ orientation, which sees the HR
function as being fully subservient to corporate and business-level strategy, and
organizational-level strategies as ultimately determining HR policies and practices.
Once the business strategy has been determined, an HR strategy is implemented to
support the chosen competitive strategy. This type of reactive orientation would be
depicted in Figure 2.3 above by a one-way downward arrow from business- to functional-
level strategy. In this sense, a HR strategy is concerned with the challenge of
matching the philosophy, policies, programmes, practices and processes – the ‘five Ps’
– in a way that will stimulate and reinforce the different employee role behaviours
appropriate for each competitive strategy (Schuler, 1989, 1992).
The importance of the environment as a determinant of HR strategy has been
incorporated into some models. Extending strategic management concepts,
Bamberger and Phillips’ (1991) model depicts links between three poles: the environment,
human resource strategy and the business strategy (Figure 2.5). In the hierarchy
of the strategic decision-making model (see Figure 2.3 above), the HR strategy is influenced
by contextual variables such as markets, technology, national government policies,
European Union policies and trade unions. Purcell and Ahlstrand (1994) argue,
however, that those models which incorporate contextual influences as a mediating
• No proper future planning.
• prefers internal source of recruitment a lot. TETRA PAK gives priority to promotion from within and job posting over external sources of recruitment.
• The job analysis is done through interview which can be misleading because of distortion of information. The employee can give false information as well which will be harmful for the organization, as job analysis has an ultimate effect on recruitment and selection.
• There is not any concept of job enlargement, job enrichment and dejobbing which are the main stream of modern day HRM and very fruitful for the organization.
• The outsource of executive level persons from other companies which violates the law of EEO.
• does not investigate about the past of their selected employee and this can be harmful to them in future. They only contact to a candidate’s references, and it is obvious that references which candidates have provided will only talk about the goodness of a candidate.
• They don’t take any kind of test while selecting a new employee that can be a good tool of evaluating the skills of the people.
• They conduct only constructed interviews. In this case, there is a possibility of neglecting the question that must be asked to the candidate.
• They take one-on-one interview from the candidate which is lesser efficient tool as compared to panel interview.
• The productivity of employees is not satisfactory because the company is not giving proper attention in training and development. By formulating recommended training and development strategies company can generate proficient workforce.
• The bonus strategies are in accord with the ranks, which can demotivate the deserving employees. So company should reestablish the bonus strategy so that the deserving employees are properly compensated according to their worth.
• For the sake of performance appraisal company is currently using performance appraisal form which is not enough for sufficiently measuring the performance level.
• Company is lacking in formulating any strategy regarding employee relations building. Necessary activities are organized by the company for this purpose.
• Leaders in are not positive role models. Employees in do not take their leaders as positive role models. This means that leaders in have such an attitude or they perform in such a way that does not attract or impress their subordinates, employees do not learn any thing from their leaders which raises the chance of conflict between them.
Ideally, such MNC’s have emerged quite in number and have dominated in United Kingdom for such time now and have been involved to such policy issues and challenges from within the process. One area is focusing on human resource management (HRM) and knowing what are its main drivers in lieu to HRM policy. Thus, the need to understand great majority of multinational cooperation in such HR arrangements that can be made up of humanitarian force that can possibly be called to participate in such multinational framework, the focus of the research will be centering on the United Kingdom and from certain views, as United Kingdom in its human resource management is duly situated to such personal systems of staff and employees within social system of the company. The one difficulty in handling human resources for MNC implies such paradoxical fact that such multinational groups have no direct access to the psychical performance of employees.
The core function of human resource management can be in such aspect such as the paradoxical management as it is working within production factors and thus uncertainty organization with such work available from within as the UK’s integration of human resource management will have to ensure the employees ability and such motivation, the willingness to perform well within the area they belong with in such ideal autonomy within MNC companies: Thus, such UK company dependence on the staff will amiably increase due to required process of such productivity and knowledge accumulation being one ideal part of HR success. Aside, frequent adjustment time for the MNC’s to give their workers boosts such interest level of attitude towards work from balanced expectation as there can be connection of a creative job tasking as relevant for UK MNC’s to have good competitive spirit within proper handling of the HR drivers as directly as possible.
Truly, it can be that such safe ways in the willingness to perform well within an area will emerge due to the ideal HR milieu as supporting staff involvement putting ample eagerness of the MNC’s within the UK such as for example, the promotion of employee capability and such ability to execute his roles with corresponding materials as provided by the HR department for such selection and development of staff performances towards work with concern of creating work environment that staff centered drivers such as those that will motivate them and provide job satisfaction remarks that can be based on work initiative values respectively. The HR area of MNC’s will just back up such activities of the management upon such job function that has been duly recognized by the people within the HR team as there should be teamwork in MNC’s HR along with the executive personnels’ involved in the process.
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