24 The People Capability Maturity Model

Learning Objectives

After completing this session, you will be able to:

  • describe the concept of E-HRM

The People Capability Maturity Model (People CMM, P-CMM) is a framework to guide organisations in improving their processes for managing and developing human workforces. It helps organisations to characterize the maturity of their workforce practices, establish a program of continuous workforce development, set priorities for improvement actions, integrate workforce development with Process Improvement, and establish a culture of excellence. PCMM is based on proven practices in fields of human resources, knowledge management, and organisational development.

The P-CMM framework enables organisations to incrementally focus on key process areas and to lay foundations for improvement in workforce practices. Unlike other HR models, P-CMM requires that key process areas, improvements, interventions, policies, and procedures are institutionalised across the organisation — irrespective of function or level.

Therefore, all improvements have to percolate throughout the organisation, to ensure consistency of focus, to place emphasis on a participatory culture, embodied in a team-based environment, and encouraging individual innovation and creativity.


Intrapreneurship is a system which allows an employee to act like an entrepreneur within an organization. Intrapreneurs are self-motivated, proactive, and action-oriented people who have leadership skills and think outside the box,

An intrapreneur is an inside entrepreneur, or an entrepreneur within a large firm, who uses entrepreneurial skills without incurring the risks associated with those activities,

Intrapreneurship is an example of through job design, either formally or informally. … According to Pinchot, intrapreneurs are both employees and leaders of a large organizations that act similar to entrepreneurs in terms of e.g. self-motivation, creativity and pro-activity.

There are three types of intrapreneurs: creators, doers and implementer. Companies and teams benefit from having at least one of each type. The creator is the innovator, or the one who comes up with all of the ideas. The doer focuses on the tasks that need to be done.

A company culture that promotes internal entrepreneurial thinking starts with a leader who exemplifies it. Shawe offered four tips for fostering Intrapreneurship in the workplace.

  1. Be transparent.
  2. Reward proactive behaviour.
  3. Fix problems as they arise.
  4. Encourage healthy competition.


EHRM means Electronic Human Resource Management.

EHRM is the, implementation and application of information technology in managing the HR processes.

E-HRM has been defined as “a way of implementing HR strategies, policies and practices in organizations through a conscious and directed support of and/or with the full use of web-technology-based channels” or more recently, and more broadly, as “the planning, implementation, and application of information systems for both networking and supporting actors in their shared performing of HR activities”.

There are three types of E-HRM.

  1. Operational -Operational E-HRM is concerned with administrative functions – payroll and employee personal data, for example.
  2. Relational – Relational E-HRM is concerned with supporting business processes by means of training, recruitment, performance management and so forth.
  3. Transformational – Transformational E-HRM is concerned with strategic HR activities such as knowledge management, strategic re-orientation. An organization may choose to pursue E-HRM policies from any number of these tiers to achieve their HR goals.

Researchers suggest three goals of e-HRM are: reducing cost, improving HR services, and improving strategic .

Advantages of E-HRM

E-HRM is not suitable for organizations where employees are not prepared to accept or use it. Major benefits/advantages of E-HRM are as follows:

  • Improving quality services.
  • Ensuring efficient services at an amazing speed.
  • Facilitating routine tasks like record keeping, maintaining the portfolio, collecting and storing relevant information regarding the human resource.
  • Helping the reduction of costly time and labour.
  • Improving accuracy and reducing human bias.
  • Making, reporting and analysing data quickly.
  • Benefiting everyone through standardization and automation.
  • Handing bundles of employee data from multiple locations fairly and quickly.
  • Performing crucial functions of HRM such as recruitment, selection, training, and development by using web-based technology.
  • Playing decisive roles towards a paperless office.
  • Maintaining anonymity of staff in evaluation/feedback giving.

Disadvantages of E-HRM

Demerits/Limitations of E-HRM are listed below:

  1. It involves a high cost to maintain and implement E-HRM.
  2. It is difficult to maintain the confidentiality of the input data.
  3. Electronic media are vulnerable, which may be attacked by viruses from anywhere on the Internet. Contracting a virus can disable your HR management system severely enough to render it unusable for an indeterminate time. E-HRM is subject to corruption, hacking or data losses.
  4. Computers and their associated programs are only as effective as their human users, data entry errors can and do occur. In HR management systems, such errors can have grave consequences.
  5. Organizations need to to-invest more on training and development before adopting e- HRM.

Functional Areas /Practices of E-HRM

E-HRM is widely used by leading firms all over the world. Its areas are widening gradually.


Online recruitment has become a common and easily accessible method of recruitment nowadays. Recruitment through traditional advertising, print media, booklets, and magazines are replaced or working as a substitute for online recruitment at present (Parvin, 2013).


E selection begins where e-recruitment ends. Gueutal and Stone (2005) define e- selection as a process of web-based testing, face to face interviews, and job offers.

E-learning/web-based training

Web-based training (sometimes called e-learning) is anywhere, anytime instruction delivered over the Internet or a corporate intranet to browser-equipped learners.

E-performance management

E-Performance Management by its name indicates that performance management with the help of electronic systems.


E-Compensation represents a web-enabled approach to an array of compensation tools that enable an organization to “gather, store, manipulate, analyse, utilize, and distribute compensation data and information”.


Global human resource management, sometimes referred to as global HRM, is an umbrella term that includes all aspects of an organization’s HR, payroll, and talent management processes operating on a global scale. By having Global HR Managers to oversee the company in its entirety, the company is better able to maintain control of their international locations and overall company brand, policies, and procedures. In today’s scenario, when businesses are getting increasingly interlinked across nations, the HR person needs to give international orientation, whether he or she does employee recruitment, training and development, performance review, motivation or industrial relations.

Global HRM is the blend of three dimensions:

  1. HR Activities
  2. Types of Employees
  3. Countries of Operations

When staffing overseas positions, the multinational corporation (MNC) has three major options:

(1) an ethnocentric staffing approach, employing host country nationals;

(2) a polycentric staffing approach, employing home country nationals; and

(3) a geocentric staffing approach, employing third country nationals


Quantitative approach to management requires that decision problems be defined, analysed, and solved in a conscious, rational, systematic, and scientific manner- based on data, facts, information, and logic – and not on mere whim and guess.

Advantages of QHRM-

  • Accurate
  • Have no Biases
  • Helps in positioning the actual performance
  • Has an internal locus of control

QHRM is now widely known as Analytics in HR which enable the HR Managers –

  • Comprehension of past and current events
  • Understanding not only trends but also the drivers behind them
  • Being able to see patterns of consistency as well as change
  • Having tools to describe the probability of something in the future

´Five ways to measure anything in business

  1. Cost
  2. Time
  3. Quantity
  4. Quality
  5. Human Reaction

´Five Steps of Analytics

  1. Recording our work (i.e., hiring, paying, training, supporting, and retaining)
  2. Relative to our organization’s goals (i.e., quality, innovation, productivity, service [QIPS])
  3. Comparing our results to others (i.e., benchmarking)
  4. Understanding past behavior and outcomes (i.e., descriptive analytics)
  5. Predicting future likelihoods (i.e., prescriptive analytics)


  • Quality of work life directly influences the productivity and satisfaction level of employees.
  • The managerial personnel may feel frustrated because of unsatisfactory terms of employment, role conflicts, job pressures, lack of freedom in work, absence of challenging work etc.


  • Quality of working life refers to the favourableness or unfavourableness of the job environment of an organization for its employees
  • It is a generic term which covers a person’s feelings about every dimensions of his work eg. Economic incentives as rewards, job security, working conditions, organizational and interpersonal relationship etc.


According to –American society of Training and Development

“QWL is a process of work organizations which enables its members at all levels to participate actively and effectively in shaping the organization’s environment, methods outcomes. It is a value based process which is aimed towards meeting the twin goals of enhanced effectiveness of the organization and improved quality of life at work for the employee’s.

Lawler (1982) defines quality of work life in terms of job characteristics and work conditions. Robbins (1989) defined QWL as “a process by which an organization responds to employee needs by developing mechanisms to allow them to share fully in making the decisions that design their lives at work.”



  • The salary structure should be equitable.
  • A balance between efforts and reward.
  • A specific level of compensation which ensures a minimum level of standard of living.


  • There should be a security of service.
  • The employees should not be under threat of losing the job.
  • An uncertainty about job security will always keep employees under tension and their performance on work will be adversely affected.


  • The working conditions should free from health hazards.
  • The employees should feel safe while undertaking work.
  • There should be reasonable working hours, cleanliness, pollutions free atmosphere, risk free work etc.


  • Should be capable of meeting the needs of the organization for and the individual for satisfying work.
  • The person undertaking the job should not feel any stress while working.
  • Quality of work life can be improved if the job allows sufficient autonomy of work decisions.


  • Can be established by creating freedom from prejudice, supporting primary work groups, a sense of community and inter-personal openness and upward mobility.


  • QWL is concerned about the establishment of social relevance to work in a socially beneficial manner.
  • The worker’s self-esteem would be high if his work is useful to the society and the vice-versa is also true.


  • Opportunity for career growth are limited in many of the categories either due to educational barriers or due to limited openings at the higher level. QWL provides future opportunities for continued growth and security by expanding one’s capabilities, knowledge and upward mobility.


The quality of work life movement is of recent origin. There is a need for concerted efforts both of individual as well as at organization level for improving the quality of work life.

  • Also called autonomous work groups or integrated work teams.
  • These teams are formed with 10 to 20 employees who plan, co-ordinate and control the activities of the team with the help of a team leader chosen from among them.
  • Each team selects its own members and perform all activities.

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  • Jobs redesigning and enrichment improves the quality of the job.
  • It attempts to provide a person with an exciting, interesting, stimulating and challenging work. Narrow jobs can be combined into larger units of accomplishment. Jobs are redesigned with a view to enriching them to satisfy higher order human needs.


  • There should be a provision for flexible working hours, job – sharing and reduced work week.


  • Very important for ambitious and hardworking employees.
  • There should be a provision for career planning, communicating and counselling the employees about the career opportunities, education and development etc


  • Employees want stability and job security.


  • Employees want to participate in decision making process.
  • When they are allowed to take part in the process of decision making having bearing on them then they will feel it their responsibility to implement them, since acts will help in enhancing the job satisfaction of employees.


  • The principles of justice, fair and equity should be taken care of in promotions, transfer, demotions, work assignment, setting etc. Partiality and biasedness can discourage employees and lower the QWL.

Drivers for Work Life Balance

  • Demographic makeup of potential work force
  • Changing social roles
  • Changing responsibilities of organizations
  • Legislative pressures
  • Increasing numbers of women in the workforce


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Human Resource Management by Icfai Business School is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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