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TRANSFORMATION OF HR FUNCTION

HRM Report

By Group-1

Sindhura Kondreddi- 18PGP189


Sujith Nayak-18PGP194
Tohfiq Khan- 18PGP203
Varun Hariharan- 18PGP212
Swathi Kiran Kumar Doddi- 18PGP226

Prasad Rathi- 18PGP238


CONTENTS
1. TRANSFORMATION OF HR FUNCTION .................................................................................... 2
2. Recruitment Trends ............................................................................................................................ 3
3. Training ............................................................................................................................................... 7
4. Employee Policies ................................................................................................................................ 8
5. Workforce Management..................................................................................................................... 9
6. Performance Appraisal Methods ..................................................................................................... 10
7. Diversified Role of HR Managers .................................................................................................... 12
8. References .......................................................................................................................................... 13

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1. TRANSFORMATION OF HR FUNCTION
A few of the policies in the companies have been considered in this report. The change in the
policies have been discussed with a suitable example of the company. Surely, the way HR has
been performing and had previously performed has a huge width gap.

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2. Recruitment Trends
The method we have a tendency to recruit has modified. Compared to simply a number
of years past, candidates currently have way more power throughout the task search. in line
with analysis and each recruiter and time unit skilled everyday work expertise, the present job
market is ninetieth candidate driven. which means you don’t decide talent any longer. Talent
picks you. Consequently, finding and hiring ideal job candidates, particularly those with in-
demand skills, has become an especially arduous, valuable and long. That’s why there's a
significant shift happening in recruiting paradigm. the main target is currently on
candidates, United Nations agency area unit being treated like customers. The modification of
paradigm brings a full new set of buzzwords and new recruiting trends. we have a tendency
to highlighted fifteen most vital among recent trends in recruiting which will have the
best overall impact on the accomplishment trade, they are:

Recruitment marketing: Recruitment promoting strategy is predicated on the


implementation of promoting techniques in recruiting. Enlisting promoting is that the method of
nurturing and attracting proficient people to your organization mistreatment
promoting strategies and techniques.
The importance of recruitment marketing: Recruitment selling may be a discipline that has
been introduced as a consequence of the present scenario within the market place. Its main goal is
to follow the most recent trends within the market and supply solutions to the businesses that best
overcome these new challenges. corporations that 1st adopt these new recruiting best practices are
going to be additional possible to draw in talent.

Inbound Recruiting: Inbound Recruiting is a recruitment marketing strategy where


you proactively and continually attract candidates with the goal to make them choose you as their
next employer. Your goal in inbound recruiting is to attract, convert and engage candidates.
The importance of inbound recruiting: Lately, there has been a switch from outbound to
inbound recruiting. Simply reaching out to the candidates and offering an open position is not the
way to attract talent anymore. If you are looking for a long-term solution to advance your
recruiting and hiring strategy, inbound recruiting is the recruitment trend you should adopt.

Employer branding: Employer brand is the term commonly used to describe an organization’s
reputation and popularity as an employer, and its employee value proposition, as opposed to its
more general corporate brand reputation and value proposition to customers. Employer branding
ideas are essential for building a strong and attractive employer brand.
The importance of employer branding: Research by LinkedIn has proven that more than 75%
of job seekers research about a company’s reputation and employer brand before applying.
Companies with a bad reputation not only struggle to attract candidates, but they also struggle to
retain employees.

Candidate experience: “Candidate experience” is current, past and potential future candidates’
overall perception of your company’s recruiting process. It is based on candidates’ feelings,

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behaviors and attitudes they experience during the whole recruiting process, from sourcing and
screening to interviewing, hiring and finally onboarding.
The importance of candidate experience: Candidates who had a positive candidate experience
in your recruiting process will more likely accept your job offer, reapply in future and refer others
to your company.
On the flip side, a negative candidate experience can cost you more than a few candidates - it can
even lose your company big bucks! The most famous example of this is the case of Virgin Media,
a company who calculated that a bad candidate experience costs them a shocking $5.4 million
annually!

Talent pool: Talent pool refers to a place or database where recruiters and HR Managers keep
all of their top job candidates. Talent pools make not only candidates that have applied for jobs,
but also sourced, referred candidates, silver medalists and candidates that have willingly joined
your pool in an inbound way.
The importance of talent pool: Imagine if every time you had a job opening, you had a pool of
talent from which you can just pick the best one! Sounds great, right? This is the reason why many
recruiters have already adopted this recruitment trend and started building a high-quality candidate
database for current and future needs.

Candidate relationship management: (CRM) is a method for managing and


improving relationships with current and potential future job candidates.
The importance of candidate relationship management: Having a strong candidate relationship
management has quickly became one of the recruitment trends. This relatively new method of
recruiting was introduced to the world of talent acquisition as a solution to one of the biggest
challenges in the HR industry - attracting talent.

Social recruiting: Social recruiting is using social media channels for recruiting. The term
refers to different ways of using social media networks (such as Facebook, Twitter, LinkedIn etc.)
and websites (blogs, forums, job boards and websites like Glassdoor for example) to find, attract
and hire talent.
The importance of social recruiting: Social recruiting goes beyond posting current vacant jobs
ads on your company’s social network accounts. It offers so much more! You can use social media
networks to proactively search for potential candidates, build a relationship with them and
encourage them to apply for your vacant job positions.

Recruitment Automation Tools: Simply put, recruitment automation tools are software that
use new technology to automate recruiting process. Automation of recruiting process has been
around for a while, but now it will go beyond HRIS, Applicant Tracking System
(ATS) and Recruitment Marketing Software. The new trend is software that offer 2 in 1 tools -
integrate both ATS and Recruitment Marketing solutions under one platform.

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The importance of recruitment automation tools: These new all in one tools offer help
in finding, attracting, engaging, nurturing and converting candidates into applicants. They also
streamline, simplify and automate hiring process, making it faster and more efficient. Those
organizations that have up till now been too slow to incorporate automation into their recruitment
systems are in danger of losing the best candidates to their more forward-thinking competitors.
This is why using recruitment tools is successful recruiters' favorite recruitment trend!

General Data Protection Regulation: (GDPR) is a new piece of EU legislation that will
replace the current Data Protection Act (DPA) with the goal to unify data regulations within the
EU.
The importance of GDPR:
GDPR will give people greater control over their personal information, which means it
will completely change the way recruiting operates in 2019. It will be introduced on 25th May
2018 at which time those organizations in non-compliance will face heavy fines. This is one the
most recent trends in recruitment!

Data-Driven Recruiting and HR Analytics: Data-Driven Recruiting and HR Analytics are


expressions used to demonstrate recruiting methods in which planning and decision making are
based on data acquired through HR technology such as Applicants Tracking
Systems and Recruitment Marketing Platforms.
The importance of data-driven recruiting and HR analytics: Using data-driven metrics is a
recruitment trend that can give you some great insights on which parts of your hiring strategy work
well, and which ones have room for improvement. Paying attention to your HR analytics and using
data-driven recruiting has proven to improve some of the most important hiring metrics such as
time to hire, cost to hire and quality of hire.

Employee referral: Employee referral programs are definitively one of the most productive
ways of hiring talent and filling open positions. Research has proven that referred employees take
shortest to hire and onboard, and require way less money.

Talent Sourcing: Proactive talent sourcing has become a must-have recruitment strategy.
LinkedIn research has shown that only about 36% of potential candidates are job seekers.
However, more than 90% of them are interested in hearing about new job opportunities.

Collaborative hiring: Collaborative hiring is a hiring method in which both HR teams and
teams from other departments work together to find and hire talent. Collaborative hiring is
extremely important as it significantly improves the quality of new hires.
Consequently, turnover rates drop which positively effects the overall recruitment and hiring
strategy.

Structured interviews: Structured interviews are becoming the most popular interview type
among many employers.

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Advantages of structured interviews:
 effectiveness
 objectiveness
 fairness
 legal defensibility.

Strategic alignment: Recruiting and hiring should be aligned with the overall business strategy!
As companies can't grow without people, recruiting talent should be more strategic. In order for
recruiting to be more strategic, it is necessary to identify company's future needs and goals. Based
on that current and potential future skill gaps should be identified. Based on the results, HR teams
should plan their hiring efforts to support business growth!

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3. Training
We are all moving towards a boundary less future, where organizations must learn how to manage
and keep their employees updated with the world. Hence Human Resource Managers are
transforming the training programs and rewarding the employees for moving away from age-old
practices.
Offering training to employees shows that your company values them and is invested in their career
development.
Companies like Cognizant and TCS, have pre-job training in place, where campus hires are given
certain modules and technologies which has to be completed in the specified time. Later, an online
assessment test will be conducted by the company to assess the candidates’ knowledge and
progress. These technology trainings are assigned based on their streams.
With infinite data available online, it’s becoming difficult to avoid overloading of information and
determine which content is relevant. Hence companies are providing a place where employees
can find the content easily. For example, Bank of America provides learning tutorials from
Lynda.com which is an open online course website offering video courses taught by industry
experts in software, creative, and business skills.
Last year, more than $400 million was invested in fast-growing learning providers such as EdX,
Khan Academy, Coursera, and Udemy, which have emerged as large marketplaces for online
training, serving millions of users. This shows the growing importance of online training.
And technology is no substitute for the expertise of a company’s own people. Companies are
also increasingly unleashing the power of their own experts. Google’s Googler-to-Googler
program is one good example of how companies promote a learning culture. Karen May, Google’s
head of people operations, says that giving employees teaching roles makes learning a natural part
of the way employees work together, rather than something HR is making them do.
Rather than keeping these learning programs lecture-based, multi-day short sessions are being
implemented.
To keep the employees up-to-date and make them learn new skill, companies are making minimum
number of training sessions per year per employee mandatory.
To help employees use their new learnt skill to maximum extent, companies are reimbursing the
amount the employee spends to get a certification done in the relevant area.
These are few transformations that have been in place in Training.

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4. Employee Policies
With the onset of technology and coming of millennials, many new policies have been formed and
the older ones have been upgraded. Additionally, to make workplace more diverse, many
initiatives have been started. In the past, focus was more on getting the work done, but these days,
an equal focus has been given towards keeping employees happy - A stress-free mind to get the
work of Best Kind. Few of such Employee Friendly policies have been:

 Flexibility – Time and Place


The 9am-5pm work hours are being ditched for flexible hours based upon convenience.
Along with this, the mundane cubicle is no longer compulsory to be in. Work from Home
(WFH) has been taken by many companies. The productivity per employee has increased
after Deloitte started the WFH policy.
 Focus on Women Need
There was a time where women were not found at workplace, whereas today, almost all
companies have women working. TCS is considered to be the best company for women to
work in India. Modification in Maternity Polices, Creche Facilities, Period Leaves, etc are
the steps which have resulted in ensuring that women no longer leave their jobs due to their
family decisions.
 Personal Care
Finding a Table Tennis Room, Gym, Cafeterias, etc are a common sight these days. Adobe
even reimburses bills for employees who buy any health/sports equipment. VConstruct
reimburses, telephone and internet charges of personal use. In the past, many employees
had no room for recreation and had high stress levels. But with these facilities coming up,
employees have increased productivity.
 Leaves
Gone are the days, when there were no paid leaves. In fact the days of limited paid leaves
are also towards extinction. Companies, have sent out a message that they trust their
employees more and have granted them unlimited paid leaves. The focus now remains only
on getting work done. A DropBox employee admitted that this has helped zir become more
powerful and responsible.
 Diversity
A few years ago, Kochi Metro employed many transgenders. Similar trends can be seen in
other companies who are now coming out of taboos of gender, sexual preference, physical
abilities, etc to employee people from diverse biologies. Not only this, but it is also being
ensured that they do not feel left out and feel included at the workplace.

The above are few of the many transformations which have occurred in Employee policies. With
changing times, more would crop up. The ultimate aim now remains to increase productivity by
keeping the employees happy – physically, mentally, emotionally and financially.

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5. Workforce Management
“Workforce management (WFM) is an integrated set of processes that a company uses to optimize
the productivity of its employees. “(Margaret Rouse, 2017, para.1)
Workforce management systems has allowed organisations to take a very lean approach when it
comes to maintaining a work force. An optimum combination of permanent and contractual
workforce has allowed firms to reduce costs without sacrificing efficiency. The most major effect
of this innovation of the HR function can be seen in firms operating call-centres and those running
agencies for services like plumber, carpenter, etc.
A major challenge here was determining the minimum number of people to maintain efficiency.
But cut that number too low and customer satisfaction was hampered. Many companies used
spread sheet and other such similar tools, but it was seemingly impossible for them to handle the
quantum as the scale kept increasing. Over here, WFM software have played a key role by
analysing the same data humans poured over on spreadsheets and predicting the number of call
agents and other such employees needed to maintain high customer satisfaction.
A big example of this was seen in Addison Lee, a London-based private taxi company. Unable to
match no. of operators with the demand spikes and finding the spreadsheet method useless, they
used Verint’s 360 Workforce Optimization. This has allowed the company to reduce headcount by
80 saving $2.47 since its deployment. It has also improved the average call rate from 20 to 26.
As the technological innovation makes businesses push their boundaries, it is bound to affect the
Human resource function as well. While a major portion of the changes can be attributed to
technology, human psychology has also played a major part in ushering in these changes. The
biggest example of this is the performance- based pay scale. The carrot in the carrot and stick
policy is at play here. While pay was simply the reimbursement of effort put in for work rendered,
as talks of efficiency and effectiveness creep in, companies look to stay ahead of this curve. A
performance-based payment scale not only improves the efficiency of employees but also make
its affordable to maintain some low performance employees without having to fire them.

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6. Performance Appraisal Methods
Performance appraisal is a method by which the job performance of an employee is documented
and evaluated. It’s a process that assesses an individual employee’s job performance and
productivity in relation to certain pre-established criteria and organizational objectives. Appraisal
is one of the most critical activities both for organizations and employees, as it decides on other
important decisions such as promotions, role changes, and rewards and benefits. Research
suggests that employees’ perception of appraisal can have a huge effect on their behavior and
attitudes, such as job satisfaction, commitment toward job, future work performance, turnover
intentions, etc.
Companies have been using various appraisal methods to assess their employee work force. Also,
the companies which previously used the traditional methods are modifying their appraisal
methods to retain, reward and attract the right talent.
According to PwC India, the system is at a point of inflection and requires organizations to not
just cut the cost but also transform the way performance is driven and measured. In addition, the
companies have either made or are planning to make changes in their staff appraisal systems in the
near future to tackle the additional challenges caused by the growing young workforce,
technological advances, a multi-generational workforce and a growing economy says the PwC
report published by India today in 2016.
One of the IT giant that has changed its performance appraisal method is Infosys. The company
has shifted from the traditional method of bell curve to the new method, iCount. This method is
used to appraise the 200,000-odd employees of Infosys. This method seeks to reward the individual
performers on the basis of specific targets. The employees will be offered feedback and subjected
to reviews throughout the year rather than just an annual appraisal. Continuous feedback from all
the stakeholders including peers, managers, etc. makes the method more like a 360 degree
feedback. Higher focus has been given on the individual performance than on the relative rating.
As a part of iCount, individual employees are also rewarded on the basis of how well they perform
on specific short-term but important targets during the year. These targets can be anything ranging
from bagging an important customer account to managing a certain customer event depending on
the role of the employee. The erstwhile bell curve method would stack the employee in the top
10% who were considered as superior, bottom 10% as the low performers and the remaining 80%.
Some of the advantages of the iCount method are:
 It doesn’t create any unwanted competition among the employees as the people are not
forced in certain ranks or stacks.
 Managers will be able to give due credit to the employees and they no longer will have to
go through the arduous task of categorizing the employees.
 Ownership and accountability of each of the employee will be unique and they will receive
a unique feedback and rating.
On the downside,

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 It can also lead to less differentiation among the employees and can be demotivating for
the overachievers.
 The percentage spending of the company on the employees might increase by this method.
Based on the current workforce entering into the organization, iCount seems a better method to
appraise the employees and helps to overcome the drawback of the bell curve method.

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7. Diversified Role of HR Managers
Over the past few years, the role of Human Resource professionals has evolved from being
perceived as a slow bureaucratic personnel department to being seen as "human resources" that
acknowledges the value of employees as an organisational resource. HRs have now become a
strategic partner to the business leaders, contributing in business decisions, advising on critical
transitions, developing on the values of the employees and creating an organisational culture - in
short, they have now a seat at the table.

Inculcating an organizational culture within employees they are also a big part in the organizational
design. Strategically assisting the management team with the mission, vision and business goals
of the organization through a solid organizational structure is necessary. The HR professional will
maintain all organizational view depicting graphically, recommendations needed to make changes
within the structure that would benefit the organization, tracks turnover rates and reasons, develops
career ladders for employees within job classifications, associated with succession planning, and
promotes active employee engagement activities throughout the organization.

Like in TCS HRs are active participants in client meetings for a given project and helps the delivery
managers of a project to reach the goal with solid organizational structure. Aligning the employees
with new core competencies and make them aware of the various organizational competencies like
Risk Management is also aligning with HR roles.

Risk Management involves various functions like developing and administering health and safety
programs, conducting safety inspections, maintaining accident records, preparing government
reports as to remain in compliance.

Human Resources are now aligning with technology with the help of HR analytics, which uses
people data, HR analytics enables HR practitioners and employers to gain insights into their
workforce, HR policies and practices, with a focus on the human capital element of the workforce,
and can ultimately inform more evidence-based decision making.

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8. References
https://www2.deloitte.com/insights/us/en/focus/human-capital-trends/2015/learning-and-
development-human-capital-trends-2015.html

https://en.wikipedia.org/wiki/LinkedIn_Learning

https://www.glassdoor.co.in

https://searchhrsoftware.techtarget.com/definition/workforce-management

http://www.1to1media.com/workforce-management/wfm-grows

https://economictimes.indiatimes.com/tech/ites/infosys-ahead-of-bell-curve-to-evaluate-staff-with-
new-performance-appraisal-system-icount/articleshow/50893988.cms?from=mdr

https://www.emeraldinsight.com/doi/full/10.1108/HRMID-05-2016-0077

http://www.cavinhr.com/relevance-of-bell-curve-method-of-performance-appraisal/

https://economictimes.indiatimes.com/slideshows/corporate-industry/10-it-giants-who-changed-their-
appraisal-system/slideshow/51923470.cms

https://www.indiatoday.in/education-today/jobs-and-careers/story/hr-industry-338642-2016-09-01
https://newfocushr.com/2015/04/13/the-functional-areas-of-human-resources/

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