UGC NET MBA Unit-3

Human Resource Development and Industrial Relations

This unit focuses on the strategic aspects of HRM, employee development, industrial relations, and emerging HR trends such as Green HRM and Global HR Challenges.

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🔹 1. Strategic Role of Human Resource Management

Meaning:

Strategic Human Resource Management (SHRM) integrates HR policies and practices with the strategic objectives of the organization to gain a competitive advantage.

Key Features:

1. Aligns HR policies with business strategy.

2. Long-term and proactive in nature.

3. Focuses on organizational performance and employee engagement.

4. Treats employees as strategic assets.

5. Links human capital to organizational success.

Objectives:

• Achieve business goals through people.

• Build a performance-driven culture.

• Ensure workforce flexibility and adaptability.

• Foster innovation and leadership.

Strategic HR Roles (Ulrich Model):

1. Strategic Partner – Align HR strategies with business goals.

2. Change Agent – Manage transformation and cultural change.

3. Administrative Expert – Streamline HR processes.

4. Employee Champion – Support employee welfare and development.

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🔹 2. Competency Mapping & Balanced Scorecard

A. Competency Mapping

Definition:
The process of identifying key competencies (knowledge, skills, and behaviors) required for performing specific jobs effectively.

Components of Competency:

1. Knowledge – What an individual knows.

2. Skill – What an individual can do.

3. Attitude/Behaviour – How an individual behaves.

Purpose:

• Recruitment and selection

• Training and development

• Performance appraisal

• Career planning

Steps in Competency Mapping:

1. Identify key roles.

2. Collect data (through interviews, observation, questionnaires).

3. Prepare competency framework.

4. Assess employees against competencies.

5. Develop training plans to fill gaps.

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B. Balanced Scorecard (BSC)

Developed by: Robert Kaplan and David Norton (1992).

Definition:
A strategic management tool that measures organizational performance from multiple perspectives, not just financial results.

Four Perspectives of BSC:

1. Financial Perspective – Profitability, ROI, revenue growth.

2. Customer Perspective – Customer satisfaction, retention, market share.

3. Internal Business Processes – Efficiency, innovation, quality.

4. Learning & Growth Perspective – Employee skills, training, culture, technology.

Purpose:

• Aligns day-to-day work with strategy.

• Measures both lag and lead indicators.

• Links performance with strategic goals.

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🔹 3. Career Planning and Development

Meaning:

A systematic process by which an employee plans their career goals and the organization supports this growth through career development programs.

Career Planning:
→ Employee’s responsibility to identify career goals.
Career Development:
→ Organization’s responsibility to provide opportunities to achieve those goals.

Objectives:

• Align individual and organizational goals.

• Enhance employee satisfaction.

• Reduce turnover and improve retention.

Stages of Career Development:

1. Exploration (early career)

2. Establishment (stabilization)

3. Mid-career (growth or stagnation)

4. Late-career (decline or mentoring)

5. Retirement (withdrawal)

Tools:

• Career counselling

• Mentoring

• Job rotation

• Succession planning

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🔹 4. Performance Management and Appraisal

Performance Management (PM):

A continuous process of setting goals, assessing progress, and improving performance of employees.

Performance Appraisal (PA):

A systematic evaluation of an employee’s job performance and potential.

Objectives:

• Provide feedback

• Identify training needs

• Basis for promotion and pay

• Career development

Appraisal Methods:

360° Feedback:
Feedback from superiors, peers, subordinates, and customers.

MBO (Drucker):
Joint goal setting between manager and employee → Periodic review → Performance evaluation.

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🔹 5. Organization Development (OD), Change & OD Interventions

Organization Development (OD):

A planned, organization-wide effort to increase effectiveness through planned interventions based on behavioral science.

Characteristics:

1. Planned and systematic.

2. Long-term focus.

3. Participative and collaborative.

4. Based on data and diagnosis.

OD Process:

1. Problem identification

2. Diagnosis

3. Planning and intervention

4. Evaluation and feedback

OD Interventions:
→ Techniques used to bring about organizational change.

Types:

1. Human Process Interventions: Team building, T-groups, sensitivity training.

2. Techno-Structural Interventions: Job redesign, workflow restructuring.

3. Human Resource Interventions: Performance management, career planning.

4. Strategic Interventions: Organizational transformation, cultural change.

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🔹 6. Talent Management & Skill Development

Talent Management:

Systematic attraction, development, motivation, and retention of talented employees.

Process:

1. Talent acquisition

2. Talent development

3. Talent retention

4. Succession planning

Importance:

• Improves productivity and innovation.

• Builds leadership pipeline.

• Enhances employer brand.

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Skill Development:

Process of enhancing employee competencies to meet current and future job requirements.

Indian Initiatives:

• National Skill Development Mission (NSDM)

• Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

• Skill India Mission

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🔹 7. Employee Engagement & Work-Life Balance

Employee Engagement:

Emotional and intellectual commitment of employees toward their organization.

Drivers of Engagement:

• Recognition and rewards

• Leadership support

• Communication

• Learning opportunities

• Work environment

Types:

1. Engaged Employees – Highly committed and motivated.

2. Not Engaged – Indifferent and uninspired.

3. Actively Disengaged – Negative attitude, harmful to morale.

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Work-Life Balance (WLB):

Maintaining a healthy balance between professional and personal life.

Benefits:

• Reduces stress and burnout.

• Increases productivity and retention.

• Enhances job satisfaction.

WLB Initiatives:

• Flexible working hours

• Remote work options

• Childcare and wellness programs

• Leave policies

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🔹 8. Industrial Relations (IR): Concept, Disputes & Grievance Management

Meaning:

IR refers to the relationship between employers, employees, and trade unions in the industrial context.

Objectives:

• Maintain industrial peace.

• Ensure employee welfare.

• Promote productivity.

• Minimize conflicts.

Industrial Disputes:

Disagreement between employer and employees regarding employment terms.

Common Causes:

• Wages and benefits

• Working conditions

• Job security

• Discipline and unfair treatment

Settlement of Disputes (as per Industrial Disputes Act, 1947):

1. Conciliation

2. Arbitration

3. Adjudication

4. Collective bargaining

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Grievance Management:

Formal process of addressing employee complaints and dissatisfaction.

Steps:

1. Identification of grievance

2. Communication to supervisor

3. Investigation

4. Redressal

5. Feedback

Essentials: Timeliness, confidentiality, and fairness.

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🔹 9. Labour Welfare and Social Security

Labour Welfare:

Efforts made to improve employee well-being (economic, social, and psychological).

Types:

1. Statutory Welfare: Mandated by law (canteens, restrooms).

2. Voluntary Welfare: Employer-initiated (clubs, housing).

3. Mutual Welfare: Cooperative activities (credit societies).

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Social Security:

Protection of workers against contingencies like sickness, injury, unemployment, and old age.

Social Security Measures in India:

• Employees’ State Insurance Act, 1948 (ESI)

• Employees’ Provident Fund Act, 1952 (EPF)

• Payment of Gratuity Act, 1972

• Maternity Benefit Act, 1961

• Pension Schemes

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🔹 10. Trade Union and Collective Bargaining

Trade Union:

An organized association of workers formed to protect and promote their common interests.

Functions:

• Protect workers’ rights

• Negotiate with management

• Provide welfare and support

Trade Union Act, 1926: Governs formation and regulation of trade unions in India.

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Collective Bargaining:

Negotiation process between management and employees (through unions) to resolve employment issues.

Steps in Collective Bargaining:

1. Preparation

2. Discussion and negotiation

3. Agreement

4. Implementation

5. Evaluation

Levels:

• Plant level

• Industry level

• National level

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🔹 11. International Human Resource Management (IHRM)

Definition:
Management of human resources in a global context—across different countries and cultures.

Key Challenges:

• Managing expatriates

• Cultural differences

• Legal and political systems

• Compensation parity

• Global talent acquisition

IHRM Functions:

• International recruitment and selection

• Expatriate training and development

• Global performance management

• Cross-cultural communication

Approaches to IHRM:

1. Ethnocentric: Home-country policies dominate.

2. Polycentric: Host-country practices followed.

3. Geocentric: Best talent selected globally.

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🔹 12. Green HRM (Environmental HRM)

Definition:
Integration of environmental management into HRM practices to promote sustainability.

Objectives:

• Reduce carbon footprint through HR policies.

• Encourage eco-friendly employee behavior.

• Build environmental awareness.

Green HRM Practices:

1. Green Recruitment: Hiring candidates with eco-values.

2. Green Training: Promoting environmental awareness.

3. Green Performance Appraisal: Rewarding eco-friendly practices.

4. Green Compensation: Incentives for sustainability achievements.

5. Paperless Office and e-HRM Systems.

Benefits:

• Improved corporate image.

• Reduced waste and energy costs.

• Sustainable organizational culture.