Discuss the relationships among KSAs (knowledge, skills, and abilities), job analysis, organizational strategy, and HR activities.
Strategies G. Venkat Rao & D .Jayaram a Krishna The present study, made in an inte grated Navaratna public sector unit viz. Visakhapatnam Steel Plant, ex amines the configuration, alignment and integration betw een HR p r a c tices (Welfare, Compensation M an agement, Structure and Policies, H R Flow, H R D, Communication Sys tem s, P e r fo r m a n c e M a n a g e m e n t, C ulture an d I n d u s tr ia l R e la tio n s) an d the O rg a n iza tio n a l Stra te g ies (Prim ary Statem ents: Vision S ta te ment, M ission Statement, Core Val ues a n d C ore C o m p e te n c ie s an d S u p p o r tiv e Sta te m en ts: C orporate Strategy, B u s in e ss Strategy, H RM Strategy). Out o f a sa m p le o f 183 employees, drawn from top manage m e n t p o s i t i v e r e s p o n se s w ere re ceived fro m 165. The study was car r ie d o u t w ith th e h e lp o f F a c to r A n a l y s is , M e a n s A n a l y s i s a n d Pearson Correlation. No correlation was fo u n d between Structure & P oli cies and Business and H R M strat egies.
G Venkat Rao is Asst.Professor, Department of HRM, Dr.L.Bullayya P.G.College, Visakhapatnam, E-mail:
[email protected]. D.Jayarama Krishna is Deputy Manager (EMD), Visakhapatnam Steel Plant.Introduction Human resource management is a varied subject and interlinked with in ternal and external dynamics. Human resource management as a profession has gathered enough m aterial and faced changes to meet the strategic requirements (Sparrow & Pettrigew, 1990). Human resources management cannot be viewed in isolation and has to be systematically assessed with or ganizational goals. The role o f a HR manager is to be a strategic partner (Ulrich, 1998). The strategic require ments are be addressed by the human resources management. The globaliza tion effect has created impacts on workforce demographics, bottom-line, market reach, technological changes, intellectual capital, and the importance o f m a n a g in g hu m an r e s o u r c e s (Devanna, Fombrum & Tichy, 1981; Wright & Snell, 1998).
Speaker (2000) views activities of relations, compensation and planning as strategic with high value. Sparrow (1986) postulates strategic human re source management as implementa tion o f practices that generate the be- 666The Indian Journal o f Industrial Relations, Vol. 50, No. 4, April 2015 Organizational & HRM Strategies Organizational strategy is a detailed assessment from which it derives its evo lution and the objectives o f existence. The strategy spells out the direction o f the business. The corporate strategy is that strategy made at corporate level to cre ate competitive advantage in the market place. Evaluation o f the competitive im plications o f broad trends, analysis of competitors, identification o f growth op portunities and creation o f successful brands are involved in the corporate strategy. P o rter’s (1980) corporate strat egies are growth, stabilization and re trenchment. Growth is the expansion, development and creation o f new assets and business. The business through con solidation acquires stabilization and re trenchment strategy involves rightsizing the business. Porter (1980) clarifies busi ness strategy as planned deployment of resources and creation o f an environment to achieve stated objectives. The busi ness strategy is the action plan which d e sig n s, e x e c u te s and e v a lu a te s the course to attain the stated objectives.
Patra (2011) clarifies that business strat egy is the purpose, goals, objectives and plans to attain the business goals. There fore the term is to be understood in the perspective o f business environment.Porter (1980) classifies business strategies as generic and competitive strategies. The cost leadership strategy focuses on either low cost or high cost premium market. The strategy derives direction from the strategic intents; the sources for these intents are vision, mis sion and organization objectives. The vi sion is a statement o f the future o f the organization that is compelling and driv ing force, mission is more articulate, measurable, w ritten and focused over time. The objectives are framed with above intentions. The primary objective o f HRM may be categorized into four objectives societal, organizational, func tional and personal. The societal objec tives refer to legal compliance, benefits, union-management relations; organiza tional objectives are categorized as hu man resource planning, employee rela tions, selection, training and development, appraisal, placem ent, assessment; the functional objectives may be appraisal, placement, assessment; and the personal objectives are training and development, appraisal, placement, assessment. HRM is strategic by its very nature and all its elements have strategic linkages (Wright & McMahan, 1992).The core competen cies refer to those unique qualities o f the human resources that determine the or ganizations competitive advantage. The core values are the standards o f moral ity for which the organization stands.
The strategy derives direction from the strategic intents; the sources for these intents are vi sion, mission and organization ob jectives.
The Indian Journal o f Industrial Relations, Vol. 50, No. 4, April 2015667 !"#$ % & & ' & & $ & ( & ) & & & ( $ * & ( ) * *) * & $ & ( & ( $ + ,- ."""# & ) & $ & & ' ( & & $ ( & & & & & )$ / !"# & * ( 0 $ & ( & & ) * & 1 2 & & 1 ) * $ 2 3 * ) * ) & 1 4 * ) 4 * ) ) 4 ' ' $ 2 & 1 & ) $ & ) * ) 4 1 ) * * + - ."""#$ 3 ) * * ) $ * * ) & $ * & * & * ) 5 $ & ) ) $ *) % ' 6# * * & # ) 0 * $ & ( 7 + 8 9 : ' ;#$ + !.# 0 & && & ( + < ', !6# & & ) 0 )$ + - 3 % 6# ( = ) 4 6,+ & ' & & ( * > ) ) && ' ) $ 3 5 * & 9 / ."".#$ * * ' & 668 The Indian Journal o f Industrial Relations, Vol. 50, No. 4, April 2015 The alignment o f core competen cies and core values with HR strat egies is an area of priority.
M ethodology T h e p r e s e n t s tu d y w as m ade in an in te g ra te d N av aratn a p u b lic secto r unit, V is a k h a p a tn a m Steel P la n t (a u n it u n der R a sh triy a Ispat N ig am L im ited) and e x a m in e s th e c o n fig u ra tio n , alig n m e n t and in te g ra tio n b e tw e e n H R p r a c tic e s a n d t h e o r g a n i z a t i o n a l s t r a t e g i e s . V is a k h a p a tn a m S teel P la n t is a t u r n aro u n d o rg a n iz a tio n from 2001 and e x p a n d e d i t s p r o d u c t i o n c a p a c i t y to 6 .5m illion tons o f iron and steel through in te rn a l a c c ru a ls . T h e a n n u a l tu rn o v e r in 2014 is R s . 10,500 c ro re s a n d p r o f i t ab le. T h e V is a k h a p a tn a m S teel P la n t p r o v i d e s d i r e c t e m p l o y m e n t to 18 ,4 4 0 (E x e c u ti v e s :6 ,3 19, N o n -E x e c u tives: 11,597 and T rainees:524) and w ith p ro d u ctiv ity o f 350 tons p er person. The stu d y is m ade w ith th e fo llo w in g two d im e n sio n s: 1.HR p r a c tic e s , 2 .O r g a n i z a tio n a l stra te g ie s .
The H R Practices are conceptualized into nine factors and organizational strat egies into seven intent factors. The study was conducted w ith the o bjective to e x am ine the ex ten t o f alignm ent o f the HR p ractices w ith the o rganizational stra te gies. Further, it sought to find out the fac tors influencing the strategic fit betw eenthe hum an reso u rces p ractices and the organizational strategies. The hypothesis fram ed for the study is:
H 0: T here is an alignm ent o f Human Resources P ractices w ith O rganizational Strategies.
The sam ple is selected from the u n i verse by applying convenience sam pling technique. The sample size is 10% o f the universe drawn from executives in the grade o f senior m anager (E-5) to E x ec u tive D irecto r (E-9) i.e. 183 em ployees.
The q u estionnaire w as d istrib u ted to the selec ted sam ple and th e re sp o n se s r e c e iv e d w e re 165. T h e p e r c e n ta g e o f qu estio n n aires rece iv ed was 90% o f the sam ple s e le c te d , w h ic h is good for a study o f this nature. The study was d is sem inated w ith the help o f factor a n aly sis, the facto r loadings were duly noted, subsequently means were calculated and P earson C o rrela tio n te st was applied to study the significance o f the relationship.
The mean scores are graded as follows for descriptive analysis:
1. > 4 is High 2. >3 and < 4 is M oderate 3.
< 3 is Average 4. ^ 2 is poor R e su lts The data c o llected is te sted for its reliability with C ronbach’s Alpha reliabil ity test. The reliability coefficients (Table 1) for perso n n el and em ploym ent, H R P ractices and O rganizational S trategies are greater than 0.6 w hich is considered as acceptable.
The Indian Journal o f Industrial Relations, Vol. 50, No. 4, April 2015 669 Table 1 Cronbach’s Alpha Reliability Coefficients Reliability Coefficients Personnel and Employment detailsH R PracticesOrganizational Strategies No. o f Items AlphaNo. o f Items AlphaNo. o f Items Alpha 7 0.7205 54 0.9114 24 0.9130 Table 2 KMO & Bartlett’s Test Kaiser-Meyer-Olkin Measure o f Sampling Adequacy. .864 B artlett’s Test o f Sphericity Approx. Chi-Square 565.830 D f 36 Sig. .000 Table 3 Communalities Extraction Method: Principal Component Analysis.
InitialExtraction Structure & Policies1.000.256 HR flow1.000.225 Culture1.000.723 Performance Mgt1.000.608 Compensation1.000.444 Welfare1.000.524 Industrial Relations1.000.506 HRD1.000.495 Communications1.000.543 Table 4 Total Variance Explained Initial Eigen valuesExtraction Sums o f Squared Loadings Com ponent Total% o f VarianceCumulative %Total% o f VarianceCumulative % 14.32248.02848.0284.32248.02848.028 2 .94610.50858.536 3.8479.41167.947 4.7648.49176.438 5.5596.21082.648 6.4915.45288.100 7.4615.12393.223 8.3804.22497.447 9.2302.553100.000 Extraction Method: Principal Component Analysis.
670 The Indian J o u r n a l o f In d u stria l Relations, Vol. 50, No. 4, April 2015 Varimax with Kaiser Normalization.
Component Structure & Policies .506 HR flow .474 Culture .850 Performance Mgt .780 Compensation .666 Welfare .724 Industrial Relations .711 HRD .703 Communications .737 Rotation converged in 1 iteration.
The validity o f the HR practices was e stablished with factor analysis. The K aiser-M eyer-O lkin Measure o f Sam pling Adequacy was 0.864 and it is m ore than the req u irem en t (.60) and B artlett’s Test o f Sphericity was signifi cant (Table 2). The communalities with initial value 1 and its extractions were derived (Table 3). Further, when extrac tions were made using Principal Compo nent Analysis (Table 4) with Eigen val ues > 1, the total variance is explained Table 6 KMO and Bartlett’s Testby one factor (48.028 per cent). The com ponent m atrix on ro ta tio n using V arim ax w ith K a ise r N o rm a liz a tio n (Table 5) shows the fa c to r loadings ( 0 .4 7 4 - 0 .8 5 0 ).
The O rganizational strategies fa c tors were also tested with factor analy sis and the facto rs have met the r e quirem ents. The K aiser-M eyer-O lkin M easure o f Sam pling A dequacy was 0.86 and B a r tle tt’s Test o f Sphericity was significant (Table 6). The commu nalitie s w ith initial value 1 and e x trac tions are derived using principal com ponent analysis (Table 7) and all found to be above 0.558. The variance e x plained by two factors (Table 8) is to the extent o f 70.40 per cent. The com ponents w ere ro ta te d using Varimax with Kaiser Normalization and was con verged on 3 itera tio n s (Table 9). The Vision, M ission and Core C om peten cies are Primary. C orporate Strategy, B usiness S trategy and HRM Strategy are supportive to primary.
Kaiser-Meyer-Olkin Measure o f Sampling Adequacy.
.860 B artlett’s Test o f Sphericity Approx. Chi-Square 500.144 d f 21 Sig..000 Table 7 Communalities Extraction Method: Principal Component Analysis.
Initial Extraction Vision1.000 .766 M ission1.000 .706 Corp. Strategy 1.000.666 Business Strategy1.000.754 HRM Strategy1.000 .790 Core Values1.000 .688 Core Competencies1.000 .558 The Indian Journal o f Industrial Relations, Vol. 50, No. 4, April 2015 671 Initial EigenvaluesExtraction Sums of Squared LoadingsRotation Sums o f Squared Loadings Comp- Total % o fCumula- Total% o fCumula Total% ofCumula- onentVariancetive %Variancetive %Variancetive % 13.85555.067 55.0673.85555.06755.0672.90741.534 41.534 21.07315.332 70.3991.07315.33270.3992.02128.86570.399 3.566 8.08978.489 4 .4636.61285.101 5.3985.68390.784 6.3474.96295.746 7.298254 100.000 Extraction Method. Principal Component Analysis.
Table 9 Rotated Component Matrix Component 1 2 Vision.856.179 M ission.791.284 Corp. Strg.550.603 Business Strg.168.852 HRM Strg.204.865 Core Values.809.183 Core Competencies.722 .193 Rotation Method: Varimax with Kaiser Normal ization. Rotation converged in 3 iterations.
The data is analyzed under the fo l lowing groups: a)Profile Analysis, b)H R P ractices, ^ O rg a n iz a tio n a l S trate gies and d)A lignm ent betw een H R Practices and Organizational Strategies o f VSP.
Profile Analysis The descriptive statistics o f the pro file variables consisting o f personal and employment data was analyzed. The age - gender p ro file d is trib u tio n for males (53.9 percent) and females (7.3 percent) in 40 - 50 years age group ismaximum. The gender - department dis tribution shows males in the works de p a rtm e n t as 84.8 p e rc e n t and non - works departm ent as 7.9 percent and 92.7 percent females are only from non works departm ent. The re s p o n d e n ts ’ distribution designation wise is as fol lows: Senior Managers are 18.2 percent, A G M ’s are 50.3 percent, D G M ’s are 21.8 percent, G M ’s are 9.1 percent and ED is 0.6 percent. The grades include from E5 to E9 and from both works and non-works departments.
Table 10 Descriptive Statistics MeanStd. Deviation Age 3.25.57 Length o f Service 3.05.60 HR Practices The W elfare, C o m p e n sa tio n and Structure and P olicies were the high- e s t p r i o r i t y fo r W orks D e p a rtm e n t w hereas W elfare, Structure and P o li cies and C om pensation were for Non- Works D epartm ent(Table 11). The per- 672The Indian Journal o f Industrial Relations, Vol. 50, No. 4, April 2015 !" # $ % " &'!" ( ) ) % * " & +! " , - . / +' " &! , - ++* " &!" # ) ( ++* " &!" % $ 0* " &*!" ) ) * " & ! 1 ) - * " & ! 2 3 4 5 * &+ 6 !" ( ) ) % 0* " & 0 !" # $ * " &0!" # ) +* " &0!" % $ 6 " &6!" 1 ) - * " &6!" , - ' * " &!" #) ) + * " &! ,- . / + " &*! 7& & +6 ! 2 Table 11 Means of HR Practices and Organization Strategies HR Number Means Organization Number Means Practices o f Factors Strategies o f Factors Works D epart mentNon- Works D epart mentWorksNon- Works Depart ment Structure and Policies63.84 3.96 Vision7 4.02 4.15 HR flow 7 3.733.70 M ission 63.974.1 Culture 12 3.63 3.73Corporate Strategy4 3.84 3.98 Performance Management6 3.70 3.81 Business Strategy23.69 3.54 Compensation Management4 3.85 3.93HRM Strategy 2 3.663.66 Welfare 7 3.864.18 Core Values2 4.18 4.36 Industrial relations HRD Communication4 4 53.63 3.72 3.723.81 3.78 3.92Core Competencies1 4.154.36 Organizational Strategies Organizational strategy is defined as the strategies that are adopted by the organization to achieve its main objec tives. The organizational strategies are spelt out through the following intent statements: primary statements; visionstatement, mission statement, core val ues and core competencies and support ive statements; corporate strategy, busi ness strategy and HRM strategy.
The perception o f the Works Depart ment em ployees(Table 11) on Vision Statement (x:4.02, 80.40 percent) Mis- The Indian Journal o f Industrial Relations, Vol. 50, No. 4, April 2015673 ! " # $ % & '! ( ) (* + + ) ,+ - + . / 0 1 2 ' & (* $ ( % 3 ! * " # $ % & '! % 3 ) % 4' + + ) ) Alignment In order to test the hypothesis that there is perfect alignment o f HR prac tices with organizational strategies cor relation statistics was used, correlation analysis is done using SPSS package.
The test was done in the following man ner for comprehensive analysis: The H R practices are correlated with organi zational strategies factor wise, the result ant matrix along with significant values are shown in Table 12.The values are tested for significance at 5 percent and 1 percent level. The correlation matrix shows that HR flow is correlated with structure & policies and core competen cies at 5 percent level. Further, structure Structure & policies are not cor related with business strategies and HRM strategy.& policies is not correlated with business strategies (r=0.127) and HRM strategy (r=0.048) whereas all other factors are correlated with each other at 1 percent level. The findings are very interesting as both business strategy and HRM strat egy are correlated (r=0.600) at 1 percent, but not with structure and policies. The hypothesis was not found to be true due to non-correlation o f structure & policies with business strategy and HRM strat egy. Therefore, structure & policies re quires attention.
Discussion The reliability and validity o f the in s tru m e n ts w ere e s ta b lis h e d . As the sample is drawn from senior level man agement the age - gender distribution in terpretation reveals that maximum num ber o f employees is found to be in the age group o f 40-50 years. The majority o f respondents are from Works D epart ment and male (84.5 percent). The dis tribution has AGM cadre employees from Works (39.4 percent) and Non-Works (10.9 percent) departments. The compo sitions from senior management shows m a jo r ity are n o n - n a tiv e s o f Visakhapatnam. The designation-length o f service has relation but in a few cases the length of service is less in AGM cadre as there is direct recruitment at senior cadre. The Department - Length o f ser vice relationship shows majority from W orks (57 p e rc e n t) and N on-W orks (10.9 percent) departments and are in the service period o f 20-30 years. Further, 17.0 percent o f Works Department and 2.4percent o f Non-Works Departm ent employees are having more than 30 years 674 The Indian Journal o f Industrial Relations, Vol. 50, No. 4, April 2015 n i r C C IA Im -> W GO « 2 « X CO rt GO 3 f f l c S C CO e* t go O CO u NO — On CN »n O «n «r» i n — Qo*** * * * #* o** * ** * * # otn CNOn CNini— i tn 5JL.• CO CNN- m NO in NON- ©rt- •of N" N-co co CO CN OX) © 03C/i C3 eg co* ** ** ** *# * * #* ** S-.J- 0) ooo CNOnOO o NO O*n NO A*C*NOf'- O CO in NO CO o ”3- ■'t-N"tn •n co CO co CO c © 1 1o* * * * * # #* n oo oo CO NO»n CN OX) u o• w c o * * * * * * * * * * * £ c ° o * * * * * * * * * * o o oo -'fr— ON— «nNO O P-CO NO Uo. 03 SO s OCO COOncoONoo r- SO i n«nCO CO«n N-CO "3-CN © © ©U 1 O 1>cO O* ** ** ** ** ** ** ** *# #* ** ** *n m N" N-CO 2 ds 71 O* * * * * * **** * * , , o s oCO CNOnON ON SOtnOnoo in *7^ ' O«—• CNTj-NOO >n CN NO■'3- r-»«n © us o •"3-NO NOtn •n •n «n •n N-co CO co © cc
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03 CL _C 3oo u60 s a t Z -J00 a Q O> 2 uCQ aU U The Indian Journal o f Industrial Relations, Vol. 50. No. 4, April 2015 611 . Correlation is significant at the 0.01 level (2-tailed . Correlation is significant at the 0.05 level (2-tailed). ! " #$ % & ' ()* !) + , % & ' ()- ./ + 0 1 & 2 3 4 #$ 0 #$ 5 6 0 % & , % & 4 7 2 8 2 #$9 2 % & , % & #$9 0 #$9 2 Factors o f HRM practices and or ganizational strategies are aligned w ith each other except structure and policies with business strategy and HRM strategy.The structure and policies are per ceived as m oderately p e rfe ct but the same has no relation with business and HRM strategy. Therefore the hypothesis was found to be untrue. The deployment o f human resources in a systematic p at tern to enable an organization to achieve its goals (Mathis & Jackson, 1985; Beer, Spector, Lawrence, Mills & Walton, 1984) and its alignm ent w ith corporate and business strategies is a crucial determi nant to the success o f the organization.
The delivery o f HR practices is a signifi cant competency o f HR professionals (U lric h , B ro c k b an k , Yeung & Lake, 1995). The structure and policies in this study were not aligned as perceived be cause o f internal or external factors.
The study results are exceptional as structure and policies as HRM practices failed to align with business strategy and HRM strategy whereas it aligned with corporate strategy. Future studies may be oriented to examine whether perfect alignment with corporate strategy leads to excellence and whether independent role is played by each o f the organiza tional strategies on alignment with HRM practices.
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