Professional Documents
Culture Documents
The major considerations in personnel policies concerning HRD strategies
for long term planning and growth in organisation are :
Recruitment of right personnel
Wellqualified and they must match with the respective corporate values
and philosophy of the Co's. For example: In Reliance Industries entrepreneurship, risk
taking & the will to win personal contacts is considered while recruiting for top
positions; In Hindustan Lever the policy is to have promotions from within – they
emphasize on professionalism, conventeducated and sharp dressed candidates, toppers
from all IIMs and IIT'S; In Infosys Technologies The criteria is to select candidates from
middle class communities– people brought up in traditional, conservative homes but who
have superior academic records, technical skills and ingrained capacity for hard work.
Written Tests are conducted to identify individuals with high learnability, both in terms
of willingness. They tend to eliminate over ambitions & competitive stars through the
interviewing process.
Development of Personnel
The Policy Issues involved are:
a) Determination of Training methods to be followed – on the job/off the job.
b) Intensity of Training – Level of employees, Frequency, resource persons, specific
training (job)
Operational Managerial
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Conceptual Analytical
Skill skill
Training Institutes
Motivation System
Factors:
Adequate Motivation
Analysis of motives
Simplicity
Uneven Motivation is given to encourage intelligent, ambitious & efficient
personnel
Incentive system could be either a) Monetary and/or b) Nonmonetary
Retaining Personnel
Coercive Policies like entering into an agreement
financial incentives over the period of time, deferred payment of financial
bonus(where benefits maybe forfeited if the employee leaves prematurely.
ESOS( Employee Stock Option Scheme)
ESPS ( Employee Stock Purchase Scheme)
Persuasion – by CEO or top executives
Personnel Mobility
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Moving the personnel within the organization or outside in the form of
promotion, demotion, transfer, separation & deputation. Organizations have to provide a
policy framework for this.
Objectives
Right person at right job
Motivation for promotions through good performance.
Another issue is Separation VRS/CRS
Deputation on new project in the same company
Industrial Relations
Objectives
understanding.
Avoid industrial conflicts & strikes.
management
directly affect workers like change in technology
Methods of building good industrial relations
Participation of workers
Negotiations in decisionmaking
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Formulation of grievance handling procedures
Management's concern for worker's welfare
HRM Trends in a Dynamic environment – An HR manager has to balance
the demands & expectations of external environment with the internal needs and achieve
the assigned tasks in an efficient way.
The issues involved in extracting/enhancing Human Productivity are :
Internal Factors External Factors
Mission, Policies Technological Factors
Organizational Culture Economic
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Organizational Structure Political
HR Systems Social
Local & Governmental Issues
Unions
Employer's Demands
Workforce Diversity
TQM
Customer-driven quality
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TQM has a customer-first orientation. The customer, not internal activities
and constraints, comes first. Customer satisfaction is seen as the company's highest
priority. The company believes it will only be successful if customers are satisfied. The
TQM company is sensitive to customer requirements and responds rapidly to them. In the
TQM context, `being sensitive to customer requirements' goes beyond defect and error
reduction, and merely meeting specifications or reducing customer complaints. The
concept of requirements is expanded to take in not only product and service attributes that
meet basic requirements, but also those that enhance and differentiate them for
competitive advantage.
TQM is a way of life for a company. It has to be introduced and led by top
management. This is a key point. Attempts to implement TQM often fail because top
management doesn't lead and get committed - instead it delegates and pays lip service.
Commitment and personal involvement is required from top management in creating and
deploying clear quality values and goals consistent with the objectives of the company,
and in creating and deploying well defined systems, methods and performance measures
for achieving those goals. These systems and methods guide all quality activities and
encourage participation by all employees. The development and use of performance
indicators is linked, directly or indirectly, to customer requirements and satisfaction, and
to management and employee remuneration.
Continuous improvement
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Continuous improvement of all operations and activities is at the heart of
TQM. Once it is recognized that customer satisfaction can only be obtained by providing
a high-quality product, continuous improvement of the quality of the product is seen as
the only way to maintain a high level of customer satisfaction. As well as recognizing the
link between product quality and customer satisfaction, TQM also recognizes that
product quality is the result of process quality. As a result, there is a focus on continuous
improvement of the company's processes. This will lead to an improvement in process
quality. In turn this will lead to an improvement in product quality, and to an increase in
customer satisfaction. Improvement cycles are encouraged for all the company's activities
such as product development, use of EDM/PDM, and the way customer relationships are
managed. This implies that all activities include measurement and monitoring of cycle
time and responsiveness as a basis for seeking opportunities for improvement.
Fast response
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The statistical analysis of engineering and manufacturing facts is an
important part of TQM. Facts and analysis provide the basis for planning, review and
performance tracking, improvement of operations, and comparison of performance with
competitors. The TQM approach is based on the use of objective data, and provides a
rational rather than an emotional basis for decision making. The statistical approach to
process management in both engineering and manufacturing recognizes that most
problems are system-related, and are not caused by particular employees. In practice, data
is collected and put in the hands of the people who are in the best position to analyze it
and then take the appropriate action to reduce costs and prevent non-conformance.
Usually these people are not managers but workers in the process. If the right information
is not available, then the analysis, whether it be of shop floor data, or engineering test
results, can't take place, errors can't be identified, and so errors can't be corrected.
Employee participation
A TQM culture
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Product development in a TQM environment
Summary
Doing it right 1st time
Customer centric Philips, TELCO, BHEL, Pidilite
Continuous Improvement a way of life
Build Team work & Empowerment
***Race without finishing line (TQM is a neverending activity)
Benchmarking
benchmarking") is a process used in management and particularly strategic management,
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practice, usually within their own sector. This then allows organizations to develop plans
on how to adopt such best practice, usually with the aim of increasing some aspect of
performance. Benchmarking may be a oneoff event, but is often treated as a continuous
process in which organizations continually seek to challenge their practices.
A process similar to benchmarking is also used in technical product testing
and in land surveying.
Advantages of benchmarking
"paradigm blindness." Paradigm Blindness can be summed up as the mode of thinking,
"The way we do it is the best because this is the way we've always done it."
Benchmarking opens organizations to new methods, ideas and tools to improve their
effectiveness. It helps crack through resistance to change by demonstrating other methods
of solving problems than the one currently employed, and demonstrating that they work,
because they are being used by others.
Types Of Benchmarking
Competitive benchmarking
researching your direct competitors you also research the best company in the industry
(even if it serves a different location).
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Collaborative benchmarking
Benchmarking, originally invented as a formal process by Rank Xerox, is
collaboratively by groups of companies (eg subsidiaries of a multinational in different
countries). One example is that of the Dutch municipallyowned water supply companies,
which have carried out a voluntary collaborative benchmarking process since 1997
through their industry association.
Procedure
Identify your problem areas Because benchmarking can be applied to any
required. They include: informal conversations with customers, employees,
or suppliers; exploratory research techniques such as focus groups; or in
reengineering analysis, process mapping, quality control variance reports,
or financial ratio analysis.
Identify organizations that are leaders in these areas Look for the very
financial analysts, trade associations, and magazines to determine which
companies are worthy of study.
Survey companies for measures and practices Companies target specific
business processes using detailed surveys of measures and practices used
to identify business process alternatives and leading companies. Surveys
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are typically masked to protect confidential data by neutral associations
and consultants.
Visit the "best practice" companies to identify leading edge practices
Companies typically agree to mutually exchange information beneficial to
all parties in a benchmarking group and share the results within the group.
Implement new and improved business practices Take the leading edge
practices and develop implementation plans which include identification
of specific opportunities, funding the project and selling the ideas to the
process.
Summary
Competitive benchmarking is the first requirement to effective TQM
Striving to be the best of the best in one's area of operations.
It aims at continuous improvements.
Complacency may be suicidal
It is a measurement of gaps between the practices of two companies so as to
uncover significant differences.
It can be applied to products, services, practices, processes and methods.
analyzed, adopted and implemented.
The objective of benchmarking is to meet rising expectations of customers in
their respective areas.
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Reengineering Work Processes
When organisations require a drastic, quantum change in order to survive a
fiercely competitive market, the managers have to search for solutions elsewhere, beyond
TQM and Benchmarking.
Reengineering takes place when more than 70% of the work processes in
the organisation are evaluated & altered. It demands organizational members to rethink
what work shall be done, how it should be done, and how best to implement these
decisions. The focus is on simplifying the operations and making them more efficient and
more customer focused.
Reengineering TQM
Looks for quantum leaps in performance Seeks incremental improvements
Driven by top management when it is Relies on bottomup participative decision
complete , work place is selfmanaged making in both planning & execution of
TQM programme.
There is a risk that the employee may There is no immediate & sudden risk to the
continue to be with the organisation or not. employee.
Key elements:
brainstorming)
Identify distinctive competencies.
Assess core processes.
Reorganize around Horizontal Processes.
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e.g. TISCO, TELCO, L&T, Ranbaxy & Crompton Greeves.
Commandments of Reengineering
Give people a mission, a clear view of how to achieve that mission.
Either serve the customer superbly or don't even try.
Change the way of life. It is not a process. It is a value.
technology effectively.
The wrong answer rarely kills you. What it does is waste of time.
The weak link in engineering is Willingness.
Once people catch on to Reengineering, you cannot hold them back. It is a
lifetime opportunity.
Flexible Manufacturing System
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The whole FMS is commonly controlled by a central computer. The main
advantages of a FMS is its high flexibility in managing manufacturing resourses like time
and effort in order to manufacture a new product.
Advantages
Faster, lower- cost changes from one part to another which will improve
capital utilization
Lower direct labor cost, due to the reduction in number of workers
Reduced inventory, due to the planning and programming precision
Consistent and better quality, due to the automated control
Lower cost/unit of output, due to the greater productivity using the same
number of workers
Savings from the indirect labor, from reduced errors, rework, repairs and
rejects
Disadvantages
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Summary
It is the ability of computerized machines to perform a variety of programmed
manufacturing to produce low volume products at mass production costs.
FMS requires fewer employees, but employees with more training and higher
skills.
Each one is required to do a greater variety of task.
They are supposed to keep away from interdepartmental competition, conflict
& politics & get along with other members as teammates.
Crossfunctional Team Work is required in factories, where engineers have to
manufacturing specialists.
Use of robots and less people.
Six Sigma
General Electric, the company that made it popular in the 1990s. You may even know that
Six Sigma uses statistical techniques to improve processes in both manufacturing and
service industries. But did you know there is an important role for Human Resources
(HR) in this sophisticated process improvement approach? Or that Six Sigma initiatives
are unlikely to succeed without HR's help?
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HR professionals with the right skills can contribute to a Six Sigma
initiative at both strategic and tactical levels. This article describes the areas in which HR
should play a role in Six Sigma and discusses how HR professionals can increase their
chances of being included in Six Sigma decisionmaking and implementation.
To appreciate the important role HR has in Six Sigma, it is important to
begin this discussion by having an understanding of what Six Sigma is, all the roles
played by others in a Six Sigma implementation, and the factors critical to a successful
implementation.
Six Sigma Defined
The term "Six Sigma" is widely used to refer to all of the following:
called DMAIC (define, measure, analyze, improve, and control), is supported by an
assortment of statistical tools.
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Six Sigma Roles
Six Sigma has a martial arts convention for naming many of its
professional roles. The chart below describes how these roles are typically defined.
Sponsor Senior executive who sponsors the overall Six Sigma Initiative.
Senior-level executive who is responsible for implementing Six Sigma within
Leader
the business.
Middle- or senior-level executive who sponsors a specific Six Sigma project,
Champion ensuring that resources are available and cross-functional issues are
resolved.
Full-time professional who acts as a team leader on Six Sigma projects.
Black Belt Typically has four to five weeks of classroom training in methods, statistical
tools, and (sometimes) team skills.
Highly experienced and successful Black Belt who has managed several
projects and is an expert in Six Sigma methods/tools. Responsible for
Master Black Belt
coaching/mentoring/training Black Belts and for helping the Six Sigma
leader and Champions keep the initiative on track.
Part-time professional who participates on a Black Belt project team or leads
Green Belt smaller projects. Typically has two weeks of classroom training in methods
and basic statistical tools.
Professional who has general awareness of Six Sigma (through no formal
Team Member training) and who brings relevant experience or expertise to a particular
project.
Professional responsible for the business process that is the target of a Six
Process Owner
Sigma project.
HR's Role in Six Sigma
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As with any major organizational initiative, many factors contribute to
success. Some of these factors will fall within HR's area of responsibility, such as those
discussed below.
Black Belt Selection and Retention
Having the right people in the Black Belt role is critical to the success of a
Six Sigma initiative. The training investment is substantial for this pivotal role. Further,
Black Belts are the visible "face" of Six Sigma. They help shape the organization's
initiative. Therefore, you want to pick Black Belts very carefully. (Some organizations
only select Black Belts from among those who have already been identified as "high
potentials.").
HR professionals can help the Six Sigma Leader find the right people for
Black Belt roles and ensure they remain in those positions for the typical twoyear
rotation. Potential HR contributions in this area include:
Building a competency model that will help identify candidates with the
right mix of technical, team, and leadership skills and abilities.
Creating job descriptions that help candidates fully understand the position
and expectations prior to signing on.
Developing a retention strategy that will help ensure Black Belts complete
their rotation and the organization recoups its investment in training and development.
Rewards and Recognition
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Rewarding and recognizing Black Belts and Six Sigma teams is more
complex than it may appear. Black Belts join the Six Sigma initiative from various places
in the organization where they are likely to have been at different job levels with differing
adjustments in level and compensation now that all these individuals are in the same role
is both tricky and critical.
Similar complexities are involved at the project team level. Six Sigma
projects led by Black Belts typically result in savings in the hundreds of thousands of
dollars. Deciding how the team should be rewarded and recognized and who should get
credit for what is not easy. Yet ignoring these issues can result in resentment, reluctance
to work on Six Sigma projects, and the potential failure of the overall initiative.
HR professionals can help the Six Sigma Leader tackle the challenge of
establishing the right rewards/recognition. Potential HR contributions in this area include:
Analyzing existing compensation arrangements to identify the extent to
which those arrangements will support the Six Sigma initiative.
Sigma.
Developing a nonmonetary reward program for Six Sigma teams.
Project Team Effectiveness
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The work of Six Sigma is done mostly at the project team level by a Black
Belt leading a small team through the steps of the DMAIC method. If the team itself does
not function well or does not interact effectively with others in the organization who
ultimately have to support and carry out the process changes, the project probably will not
be successful. Given the typical project's potential payback, failure can be expensive.
effectively. Potential HR contributions in this area include:
Ensuring team leaders and members get training and/or coaching in teamwork,
conflict management, communications, dealing with difficult team members,
and other team effectiveness skills.
Providing teams with tools that allow them to diagnose their own performance
and identify when and where they need help.
Acting as a resource for Black Belts who encounter teamrelated challenges
they cannot surmount.
Creating a Six Sigma Culture
Many Sponsors, Champions, and Leaders look to Six Sigma as a way to
change an organization's culture to one that is more datadriven, proactive, decisive, and
customeroriented. But they often have little idea about how to achieve successful culture
change.
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HR professionals can help executives approach culture change in a way
that addresses the underlying business goals without creating organizational resistance.
Potential HR contributions in this area include:
Working with Six Sigma Sponsors, Leaders, and Champions to identify
elements of the culture that might hinder the achievement of Six Sigma goals. Advising
on change plans that will target those specific cultural elements. Identifying how Six
Sigma can be rolled out in a way that works with, rather than against, the current culture.
Change Management and Communications
Introducing Six Sigma into an organization is a major change that will
have a profound effect on a broad group of stakeholders. Managers and employees at
many levels of the organization will be asked to engage in new behaviors. In many cases,
those leading other initiatives will see Six Sigma as a source of competition for resources,
executive attention, and organizational power. Others may see it as an indictment of their
past performance. Many will be confused about how Six Sigma fits with the large number
of other ongoing organizational initiatives.
HR professionals can help reduce the uncertainty and anxiety surrounding
Six Sigma and increase the levels of acceptance and cooperation in the organization.
Potential HR contributions in this area include:
Drafting a change management/ communications plan that addresses the
people side of the Six Sigma rollout.
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Economic Challenges
External Environmental factors.
Globalisation
Political factors:
Social factors: Unions.
Local & Governmental factors: Legal through multicultural organization
(managing diversity)
Workforce Diversity
It implies the composition of employees in terms of diversity as regards
age, gender, ethnicity, and education.
Organizations are becoming more heterogeneous in terms of age, gender, race,
ethnicity.
Young, skilled & knowledgeable workforce
Not fascinated by secure, less paying, routine & standard job (s) offered by
Public Sector.
Private Enterprises offers good attraction.
Old employees are growing in number due to improved medical & health care
their expertise & experience; talent can be utilized to develop new ventures.
Attracting & retaining young brains is a challenge for HR managers.
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So organization (s) need to institute appropriate HR policies, supported by
attractive compensation offers.
differences in social ethos, religious origins, cultural differences & regional
origins plus constitutional provisions give preferential treatment to certain
sections of the society.
HR managers have to deal with issues of Child Labour, Women at Work,
Speciallyabled people, etc.
Equity & Justice, and Pluralism & Diversity over uniformity & centralism,
Participation over authority, Personal convictions over dogmas, individual over
organization.
responsibility & autonomy on the part of the HR manager & organization.
Bibliography
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Human Resource Management And Personnel Management – Aswathappa
Organizational Behaviour- Stephen Robbins
Organisation Behaviour- Fred Luthans
www.wikipedia.org
www.google.com
www.hrresources.com
www.managementmentor.com
www.esinps.com
www.managementparadise.com
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Case Study Related To HIV Aids Employee
Facts of the case
Solution
Give promotion to Mr. Premsagar from long term point of view and
Mr.Devejeet should be given proper increment in order to keep him motivated.
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