Abstract

This Chapter highlights the gradual transformation from Personnel Administration to Strategic Human Resource Management over the years in Government of India. However, there is still a long way to go. In this Chapter an attempt has been made to delineate the criticality to move towards Strategic HRM in Government of India to achieve India’s developmental goals. By understanding the current state of HR, emerging HR challenges, and by using some of the best HR practices, Ministries, Departments and Organizations (MDOs) can develop appropriate strategies to attract, retain, and develop their workforce. Embracing frontier technology, investing in employee development initiatives, and fostering a inclusive work environment are key to success. Additionally, the chapter delineates different interventions which can be adopted by MDOs to move towards Strategic Human Resource Management which will help achieving the vision of Viksit Bharat@ 2047. Moreover, ‘Six E Framework of SHRM’ developed by the author has also been suggested for MDOs in order to strategically manage their human resources.

Introduction

Today Ministries, Departments and Organizations (MDOs) are facing potpourri of challenges posed by technology-driven disruption of business activities increasingly characterised by volatile, uncertain, ambiguous, and complex (VUCA) conditions as well as unprecedented opportunities to develop new citizen centric programs and services that address their growing aspirations and expectations. Disruptive and technology led the transformation of virtually every sector of governance is posing new challenge. Prized skill-sets are becoming obsolete at a record pace and new skills we had never heard of until a few years ago are becoming crucial to the continued success and even existence of many organizations. With the growing complexity of organizational processes, advancement in Information & Communication technologies and advent of artificial intelligence, inducting and sustaining a motivated workforce has become a challenge for HR functionaries in MDOs. Indeed, the most unique challenge for any organisation is with respect to management of human resources. The competitive advantage of an organisation is defined by how well it manages its human resources, or how well it incorporates human resource management into its organisation strategy.

Competing through People

People who are considered as creative capital constitute an important source of dynamic input in any organisation. To be a long-distance runner, every organisation requires extraordinary efforts from its people. The people factor separates the mediocre organisations from the outstanding ones. When people work with zeal, enthusiasm and commitment, organisations become a Great Place to Work. When people fail to live up to expectations, organisations fall behind in the competitive race. In fact every organisation has more or less the same kind of resources to work with-materials, equipment, land, buildings, finances etc. The only differentiating element between organisations is the 'people factor'. As Thomas J. Watson, the founder of IBM once commented, “you can get capital and erect buildings, but it takes people to build a business.” Indeed, ‘People can take an Organisation to Commanding Heights’. Many managers from generals to presidents to supervisors have been successful even without adequate plans, organisations, or controls. They were successful because they had the knack for hiring the right people for the right jobs and then motivating, appraising, and developing them. A good organisation values and respects its people. People and people policies can make or break any organisation. There have been several studies to indicate that there is a significant correlation between people and the profits they bring to the organisation. 

Human Resource Management

Human Resource Management (HRM) is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.  HR helps to ensure that results are achieved through people. Because of global competition, technological advances, and economic turmoil, that statement has never been truer than it is today. Human resource management methods can help any manager boost his or her team's and organisation's levels of engagement, profits, and performance. Human Resources Management (HRM) is a holistic approach towards the management of people present in an organisation which contribute to the achievement of organisational objectives. Successful human resources management is largely dependent upon formulation and implementation of a well-defined 'HR Strategy'. Employees are an important resource of the organisation. Indeed, HR strategy needs to be flexible enough and reflective of changes in organisational dynamics. The HR systems should facilitate enabling environment leading to enhanced levels of employee engagement and organisational effectiveness.

Defining Strategic Human Resource Management

Strategic Human Resource Management (SHRM) centres around individuals—choosing the right individuals capable of delivering exceptional organisational outcomes and establishing support systems to not only ensure their success but also foster their prosperity as individuals. According to Write and Snell, SHRM can be defined as the organisational systems designed to achieve sustainable competitive advantage through people. According to Horace Parker, director of strategic education at the Forest Products Organisation (Schuler, 1992), SHRM is about “getting the strategy of the organisation implemented effectively.” Patrick Wright and Gary McMahan defined SHRM (Wright & McMahan, 1992, p. 298) as “the pattern of planned human resource deployments and activities intended to enable an organisation to achieve its goals.” According to Gary Dessler, “Strategic human resource management means formulating and executing HR systems i.e. HR policies and activities that produce the employee competencies and behaviours the organisation needs so as to achieve its strategic aims”. Purcell stated that Strategic HRM focuses on actions that differentiate the firm from its competitors. Bratton J defined SHRM as the process in which the Human Resource function and strategic objectives of the organisation are combined in order to develop the high performance organisations.

Emergence of Strategic Human Resource Management 

During the early Years (1900s-1940s) Personnel management focused on administrative tasks like hiring, firing, and record-keeping. During 1940s to 1960s,  HR began to focus on employee welfare, training, and development. Indeed, up to the mid 80s, Human Resources Management function in Indian organisations grew through various phases. Professors Udai Pareek and T.V. Rao were among the pioneers who not only introduced the Human Resource Development (HRD) concept in India but also assisted many organizations in designing development-oriented HR systems. They have highlighted the paradigm shift from traditional personnel function to Human Resource System. The 1980s saw such large-scale introduction of the developmental concept in Indian organisations. HR became involved in organisational development, focusing on improving overall performance.- Techniques like job enrichment, team building, and organisational design emerged. After this phase i.e during 1980s to 1990s., the concept of "strategic HRM" emerged, emphasizing HR's role in driving business success. HR began to align with business strategy, focusing on achieving organizational goals. 

Now HR is seen as a source of competitive advantage, focusing on developing unique capabilities of people. The emphasis is on strategic talent management, leadership development, and creating a high-performance culture. With the increasing realization of the potential of human resources in providing competitive advantage, organisations have begun to consider employees as 'valuable assets' or 'investments.” This view has become more significant in today's knowledge economy that depends on skill and knowledge of employees. From being a routine, administrative and reactive function, the HR function today has evolved to being proactive and strategic.

Difference between Traditional HRM and SHRM

SHRM involves the development and implementation of HR practices that directly contribute to the achievement of organisational objectives. Unlike traditional HRM, which tends to be reactive and transactional, SHRM is proactive and forward-looking. It involves a continuous process of assessing the external environment, understanding internal capabilities, and aligning HR strategies with the overall organisation strategy. It defines the organisation intention and plan on how its organisation goals should be achieved through people. SHRM is a process of managing human resources that links the workforce with the core strategies, objectives, and goals of an organisation. The effectiveness of SHRM is contingent upon the alignment of its policies, programs, and systems with the values, mission, and objectives of the organisation (Caldwell & Anderson, 2018, p.13). The main difference between HR management and Strategic HR management is that HR management focuses on managing the regular day-to-day HR duties, while strategies HR management focuses on helping employees and the HR department achieve organisation goals through Strategy.

Objectives of Strategic Human Resource Management

The following are the objectives of Strategic Human Resource Management:

SHRM helps the HR department maximize the potential of an organisation’s workforce through strategic planning, talent management, leadership development, organisational design, and performance management.

SHRM ensures practices that foster flexibility and provide competitive advantage to the organization. 

SHRM is essential for retaining the best talent and development of human resources.

It focuses on making employees feel valued and engaged so that they are motivated to stay with the organisation.

The goals of strategic HR management are to develop an employee-centric culture, sustain the organisation’s purpose, focus on employee advancement, improve employee retention, practice flexibility, teamwork, develop a diverse, equitable, and inclusive work environment, and practice regular employee feedback.

Transformation from Personnel Administration to Strategic Human Resource Management in Government of India

The Department of Personnel and Training (DOPT) of the Government of India initiated the project titled ‘Strengthening HRM of Civil Service’ in the year 2011 in collaboration with the United Nations Development Programme (UNDP). The project was undertaken to support the Government of India to shift from rule-based personnel administration towards competency-based system of strategic human resource management for the Indian Civil Services and build an enabling environment for developing civil servants so that they can perform in a more effective manner. A primary outcome of this initiative was the creation of a ‘Competency Dictionary’ (Government of India-UNDP 2013) which was developed in consultation with a large number of civil servants in the Centre and state governments. The overarching purpose for developing a competency dictionary was to foster more effective, efficient, and transparent and accountable public administration at the national and state levels. Towards this end, the Civil Services Competency Dictionary identified 25 core competencies across the various roles and positions of civil service employees. Competencies have a wide range of applications across human resource management practices. Competencies can be applied and integrated into recruitment and selection, performance management, training and development, career and succession planning and reward systems. Indeed, the project has supported the Government of India in the shift towards Competency-based Human Resource Management (HRM) for the Indian Civil Services.

The Human Resource Management function has undergone a significant change in Government of India. The ministries, departments and organisations are attaching tremendous importance to the management and development of their people. Today, an increasing recognition emerged that individual in an organisation is a key resource. Therefore, to transform the civil services, it was imperative to bring about a strategic human resource management system, which would look at the individual as a vital resource to be valued, motivated, developed and enabled to achieve the Ministry/Department/Organisation’s mission and objectives. The previous systems of personnel administration used to focus largely on the rules and procedures governing the recruitment, retention and career development of the civil service. Earlier the training was mainly for the Civil Services with a larger number of Group B and Group C employees. Moreover, with the creation of the third tier of Government, the training of functionaries in the Panchayat and Municipal bodies had become a critical concern.

Strategic Initiatives of Government of India 

Following initiatives for Capacity Building of Government Officials have already been taken by the Government of India which highlight the emergence of SHRM in MDOs :

i. NPCSCB: Mission Karmayogi

The Civil Services play a central role in governance and its delivery of public services. For capacity building of civil servants and to equip them with the right competencies which are aligned to the demands and expectations of a rapidly growing economy and its aspirational citizens, Government of India launched the National Programme for Civil Services Capacity Building (NPCSCB) - Mission Karmayogi. The Mission Karmayogi aims at developing a citizen-centric and future-ready civil services through democratised and competency-led capacity building. It has 6 pillars, viz.: Policy Framework, Digital Learning Framework, Competency Framework, The electronic Human Resource Management System, Monitoring and Evaluation Framework, and Institutional Framework.

ii. Capacity Building Commission 

To deliver on the vision of capacity building of Civil Servants, two key institutions viz. Capacity Building Commission (CBC) and the Special Purpose Vehicle (SPV)- Karmayogi Bharat were designated. The CBC has been constituted on 1st April 2021 and became fully functional since June, 2021. The CBC has a pivotal role to play in the capacity building ecosystem. It spearheads various initiatives for capacity building by laying down various standards and guidelines related to accreditation, competency framework, etc., besides, the mandate as laid down in the ’Mission Karmayogi. 

iii. SPV Karmayogi Bharat 

The SPV-Karmayogi Bharat became operational since August, 2022. The SPV- Karmayogi Bharat creates employee-wise competency passbook based on training (s) undergone and other capacity building courses completed, etc. and make the same available to the MDOs, Cadre Controlling Authorities on demand. The passbook shall reflect, in respect of each employee, their existing as well as required competencies, the activities associated with their current/future roles, so that they will be able to plot a clear learning path based on their self-learning aspirations or Departmental mandate. The SPV shall have the responsibility for owning, managing, maintaining and improving the digital assets i.e. iGoT Karmayogi digital/e-learning platform and, inter alia, provide key services to enable capacity building of civil servants.

iv. Digital Learning Framework (iGOT- Karmayogi)

iGOT- Karmayogi envisages the implementation of a competency framework as per the FRACS (Framework for Roles, Activities and Competencies including skills) model for employees. Integrated Government Online Training Karmayogi Platform was launched to provide anytime-anywhere learning opportunities for all civil servants and to evolve into a vibrant and robust e-learning content industry. 

v. Competency based Training

Previously training was on the duties that were to be performed in a particular post and there was no comprehensive review or classification of all posts in accordance with functions to be performed and the competencies required thereto. Thus, the issue of whether an individual has the necessary competencies to be able to perform the functions of a post were not addressed. For moving to a competency-based approach, it would be necessary to classify the distinct types of posts and to indicate the competencies required for performing work in such posts. Once the competencies are laid down, an individual's development can be more objectively linked to the competencies needed for the current or future jobs. 

Role of HR Professionals in Viksit Bharat

The role of the Human Resource Manager is evolving with the change in competitive environment and the realization that Human Resource Management must play a more strategic role in the success of an organisation. Organisations that do not put their emphasis on attracting and retaining talent may face challenges in the long run. With the change in socio economic scenario, organizations must become more adaptable, resilient, agile, and customer-focused to succeed. With this changing scenario, HR professionals have to evolve to become a strategic partner, an employee sponsor, an advocate, and a change mentor within the organisation. In order to succeed, HR must have a thorough understanding of the organization's big picture and be able to influence key decisions and policies. HR professionals of Viksit Bharat need to be coaches, counselors, mentors, and succession planners. They would also be responsible to promote values, ethics and spirituality within their organizations, especially in the management of workplace diversity.

Challenges in Implementation of SHRM

Strategic Human Resource Management (SHRM) has become a critical function for organisations in today's dynamic and competitive environment. In the context of India, which is known for its diverse workforce, complex regulatory landscape, and rapid economic transformations, implementing SHRM fully is a daunting feat.  Some of the challenges in proper implementation of SHRM are:

Diversity and Inclusion

India is characterized by a rich tapestry of cultures, languages, and traditions. HR Strategies need to be devised to manage the diverse workforce so as to foster inclusion and create an environment where individuals from different backgrounds can thrive.

Regulatory Compliance

The Indian labor market is subject to a complex web of regulations, making it essential for HR professionals to navigate compliance issues effectively. HR professionals should ensure aligning the policies with local labor laws while ensuring a flexible approach to adapt to changes.

Talent Acquisition and Retention

The war for talent in India is intense. The recruitment of right talent in Government of India is crucial for ensuring effective governance, efficient public service delivery and successful implementation of policies and programs. MDOs should be able to attract top talent while also retaining key employees through innovative retention strategies and career development opportunities. Talented & skilled individuals bring innovative solutions, enhance administrative efficiency and impove decision- making processes thereby contributing to nation's overall development.

Compensation and Reward Strategy

Designing Rewards & Recognition system to enhance motivation of employees in MDOs is a challenge. Therefore, mechanism for providing non monetary incentives should be devised by each MDO. 

Alignment with Organisation Strategy

Every MDO is expected to prepare its Vision@2047 and also required to align their organisational goals with larger-national goals. This will provide HR professionals an opportunity to design HR Strategies which are in sync with their organizational goals.

Innovation in Employee Engagement

India's young workforce values a holistic work experience beyond salary, including factors like work-life balance, wellness programs, and opportunities for personal and professional growth. Strategic HRM provides the avenue to innovate in employee engagement practices to enhance workplace satisfaction.

To instill Performance Orientation in the Organisation

Instilling performance orientation within the Government of India necessitates a multifaceted approach that emphaizes clear goal setting, continuous skill development and robust accountability mechanism. By defining specific objectives and key performance indicators, department and employees can align their efforts with the Government’s strategic priorities. Implementing a performance management system with regular evaluation and feedback ensures that progress is monitored and achievements are recognised.

To sustain an Enabling and Motivational Environment in the Organisation 

For sustaining a motivational and enabling environment in MDOs, it is essential to foster a culture of continuous development and inclusive leadership. By providing opportunities for skill enhancement and career progression through structured training programmes and mentorship, employees feel supported in their professional growth. Encouraging open communication and inclusive decision making allows employees to contribute meaningfully to the organisation. 

Guidelines for Proactive Implementation of HRM practices in Government ecosystem

The evolving role of HR as a 'strategic partner' in managing the organization or as a catalyst for organizational transformation would require HR function to establish robust linkage with strategic imperatives. HRM should now focus on building organisations that change, learn, move and act fast. In public sector, HRM practices have to focus on areas such as:

• Identifying and nurturing talent;

• Enhancing employee morale and motivation

• Creating a performance-driven culture; and 

• Bringing about changes in the mindsets of employees at all levels so that all of them aim at providing value to customers.

• Providing innovative non monetary rewards

• Creating a culture of continuous learning

Six E Framework of SHRM

Six E Framework of SHRM (source: Author) suggested below will help MDOs in strategically managing their human resources. This framework would lead to enhanced organisational efficiency, effectiveness and employee engagement. Following are the six components of this framework:

• Empower people to take decisions.

• Encourage employees to take initiatives 

• Enrich employees by providing opportunities for growth and development

• Enhance competencies of people so as to seek their commitment

• Expand-vision of people so that their goals are in congruence with organisational goals

• Energise and recognise employees to give their best.

The six model of SHRM (Image) 

Different components of 6 E Framework are given below:

Empower people to make decisions 

This practice fosters engagement and enfranchises employees. Not only do employees become more confident and work ready but they also become more committed, strategic, intuitive, creative and analytically competent. It also enhances citizens’s experience as employees become capable to handle citizens professionally 

Encourage employees to take initiatives 

It is firstly important to diversify the workforce so different perspectives and ideas can be brought to the table. HR Professionals need to think of innovative ways to encourage employees to take initiatives. 

Enrich employees by providing opportunities for Growth and Development 

Providing opportunities to employees for learning new skills and knowledge boosts job satisfaction and employee retention. Employees should see a clear route for progress and career advancement in the organization. Professional growth strengthens organization performance, sustainability and competitive edge. 

Enhance Competencies of people to seek their commitment

Developing competencies relates to acquiring and enhancing skills required to perform job functions efficiently. This practice helps employees understand expectations of their job, the key behaviors they should demonstrate, their level of performance and the steps needed to increase their proficiency levels. Such insight is helpful in achieving organisational goals and in determining the commitment of individuals towards them. 

Expand Vision of people so that their goals are in congruence with organisational goals 

Fitting individual goals into the big picture promotes accountability and can lead to better performance. Employees understand the impact of their work within the organisation and there is coordination and motivation. When goals of different individuals, departments, or levels of an organisation are aligned, not only is there greater equity and diversity but also consistency and smooth functioning.

Energize and recognise employees to give their best

Benefits of employee recognition are low cost and high impact practices. Acknowledging employee efforts contributes to a positive work environment and boosts employee morale, motivation, loyalty and productivity. Employees feel valued in the organisation, which leads to higher retention. It is important to evaluate and listen to their feedback about what it is that they seek.

Steps for Seamless Implementation of HR Strategy in Government 

The HR Strategy implementation requires that MDOs should ensure availability of right mix of resources in time. Financial budgeting is needed for resource management. Roles and responsibilities should be defined, documented and communicated to facilitate the effectiveness of implementation. FRA Cing which was initiated by Mission Karmayogi would help immensely in defining the roles and responsibilities of a position. Under each head, specific HR intervention should be planned along with action plan and time frame. Year-wise Action Plan of HR interventions, and due planning and deployment of resources is the need of the hour. Preparation of schedule of Implementation Plan would help in successfully completing this task. 

Further, the HR function in every MDO has to take initiatives to benchmark and adopt Best HR practices which should be aimed at building three C i.e Competency, Commitment and Culture. 

The manner in which an organization manages its human resources can have a dramatic impact on its ability to compete or survive in an increasingly competitive environment. Agility pays rich dividends and HR professionals have to play an important role in creating a favourable work climate for implementing changes. Moreover, focus should be on employing innovative reward plans that recognize employee contributions.

HR needs to ensure that people are valued. Different offline and online training programmes uploaded on iGOT  platform would help sensitizing employees towards cross cultural and diversity issues. Emphasis need to be placed on ensuring good HR processes such as participative management, suggestion system, effective communication system, effective performance management system, grievance redressal system, viable and attractive compensation package and social security systems. Transparent personnel policy pertaining to recruitment, training and development, promotion and  transfer is the bedrock for implementing any initiative.  Ensuring fairness, integrity and accountability while abiding by the law would be a step in the direction of making MDOs a Great Place to Work.

Conclusion

Strategic Human Resource Management in India is a multifaceted endeavor that requires a nuanced understanding of the country's socio-cultural diversity, regulatory framework, and economic dynamics. By addressing challenges and capitalizing on opportunities, MDOs can leverage SHRM as a strategic enabler for sustained growth and competitiveness in the dynamic and evolving organizational landscape. In a volatile environment, changes of various kinds hit the organizatons from all corners. Successful HR leaders have to anticipate such changes quickly and initiate proactive steps.

Shift towards Strategic HRM is critical for MDOs in India. There is a need to develop a comprehensive HR strategy which is aligned with organisational goals. Leveraging technology to create a unified database of employees and to streamline processes would pay rich dividends in long run. Creating an inclusive work environment by implementing diversity and inclusion initiatives and fostering a culture of continuous learning to bridge the skills gap, are paramount for achieving the expected outcome. Moreover, efforts need to be made to regularly review and update HR policies so as to comply with existing labor laws and regulations. Indeed, the role of SHRM will be pivotal in shaping the future of work in Government organisations.

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