HRM S

HUMAN RESOURCE MANAGEMENT
PGDM Part Time Program Semester IV
Lal Bahadur Shastri Institute of Management, Dwarka
Human Resource Management - Todays session
Human Resource Management (HRM) Strategic HRM
Dynamic Environment: Globalization Outsourcing Workforce Diversity
Changes in Nature of Work: TQM Job complexity Technological Changes Contingent Work
Changing Workforce: Employability Age Cohort
Traditional vs. Strategic

Functions & Importance
Changing Expectations of Workforce

Empowerment Telecommuting Virtual Teams
What HR Managers can Do
Human Resource Management
Human Resources
It may be defined as the total knowledge, skills, creative abilities, talents & aptitudes of an organizations workforce, as well as the values, attitudes, approaches & beliefs of the individuals involved in the affairs of the organization.
Management
Management is a distinct process consisting of activities of planning, organizing, actuating & controlling, performed to determine & accomplish stated objectives with the use of human beings & other resources.
HRM and Strategic HRM
Human Resource Management
Is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organizations and the employees to achieve their objective.
Strategic HRM
SHRM, simply stated, is the linkage of HRM with strategic goals and objectives with a view to improve business performance and develop organizational cultures that foster innovation and flexibility. Strategic HR differs radically from traditional HR in a number of ways.
Traditional HRM Vs. Strategic HRM
Points of Distinction

Traditional HRM

Strategic HRM
Focus Role of HR Initiatives
Employee Relations Transactional change: follower & respondent Slow, reactive, fragmented Short term Bureaucratic roles, policies & procedures Tight division of labour
Partnerships with internal & External customers Transformational change: leader & initiator Fast, proactive & integrated Short, medium & long
Time Horizon
Control
Job Design
Key Investments Accountability & responsibility for HR

Flexible, whatever is necessary to succeed

Broad, flexible, cross-training teams Investment centre Line managers
Cost centre Staff specialists

Objectives of HRM
Attract & retain talent HRM Train people for challenging roles Aims at achieving organizational goals; providing competitive advantage; meeting the expectations of employees; developing the knowledge, skills & abilities of employees; improving the quality of working life; and managing human resources in an ethically and socially responsible manner Enhancement of organization's economic performance
Good HR Practices Help to
Resource allocation Develop loyalty & commitment
Increase productivity & profits

Improve employee engagement Ensure stability of the organization with contended workforce & appreciation from the stakeholders and the public Generate employment oppurtunities
Functions of HRM
HRM
Managerial functions: Planning Organizing Directing Controlling

Procurement Job Analysis HR planning Recruitment Selection Placement Induction Internal mobility HRD strategies Career planning Succession planning Motivation Job evaluation Performance and potential appraisal Compensation administration Incentives benefits and services Development Training Job design Executive development Safety Work scheduling Welfare Motivation and Compensation: Maintenance Health
Operative Functions
Integration:
Grievances Discipline Teams and teamwork Emerging Issues: Personnel research HR accounting HRIS Employer Branding Mentoring International HRM High Performance HR Systems Corporate Blogging
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Collective bargaining
Participation Empowerment Trade unions Employers associations Industrial relations
HRM in a Dynamic Environment

Corus: overcoming barriers to change
Corus was formed in 1999 when the former British Steel plc merged with the Dutch company, Hoogovens. Corus is now a subsidiary of the Indianowned Tata Group. Corus has three operating divisions & employs 40,000 people worldwide: Strip Products (Corus Strip Products UK), Long Products, Distribution & Building Systems In 2005 CSP UK introduced a cultural plan for change called The Journey. The common theme was the fundamental way that people at all levels went about their work. This was not limited to employees, but it included contractors, suppliers and other partners. This community of people together re-defined eight core values-honesty, integrity, respect, improvement, excellence, fairness, transparency, professionalism.

Reasons for Change
Internal Drivers for Change Poor delivery . Lack of accountability High wastage Low staff morale
External Drivers for Change New competitors Changing customer requirements New technology Perceptions of the steel making industry

Barriers to Change Corus is an established business in a traditional industry. This meant that it had set patterns of doing things in some areas of the business. This attitude of this is the way we do things around here made it more difficult to make necessary changes.
Fear of unknown: Job reductions Other people did not see a threat to their job because the business had previously survived difficult times. Ageing workforce history of rewarding long service rather than distinguished service
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Overcoming Barriers One of the key techniques Corus has used to overcome resistance to change has been to work closely with employees and get them involved as much as possible in the programme. Emphasis on taking ownership of the new values by physically signing up to the programme More involved in decision making and contribution & experience are recognized . Direct & indirect communication-weekly newsletter & workshops To highlight how people were behaving (the As Is), it created a programme with shock tactics Managers were shown videos of poor working conditions and interviews with local schoolchildren in which they said they would not work at the plant because of their perception of a poor outlook and a poor working environment. Billboards, intranet, video programmes and most of all, direct one-to-one conversations all reinforced the messages.
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Measuring the Outcome Thanks to the Journey programme, CSP UK expected to reduce costs for the 2009/10 financial year by around 250 million. Production capacity increased by 4.5 % 20% reduction in the cost of producing steel 5,000 employees have signed up to the values and beliefs of the business . Reduction in absenteeism Carbon dioxide emissions have reduced by 10%. CSP UK now exceeds government standards Measurable improvements in levels of quality and service for customers New safety teams contribute towards accident-free production Measurable improvements in the companys impact on the local community.
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Globalization From the social theory perspective, globalization involves the flows of commodities, capital, technology, ideas, forms of culture and people across national boundaries via a global networked society (Castells, 1996, 1997, 1998). Honda builds cars in Ohio, Ford in Brazil and both Mercedes and BMW in South Africa.
Globalization adds more diversity to the workforce, which affects the organizations culture and introduces new forms of values-based conflict among employees. Globalization is identified as one of the main sources of increased competitive pressures, mergers, and market volatility.
These environmental conditions reduce job security and demand more flexibility from employees.
Some effects: workforce diversity, increased competition, emphasis on increasing productivity and reducing costs, higher training needs, restructuring/downsizing, outsourcing
Coca-Cola, Ford, Kodak, Xerox are among many organizations which have reduced their workforces by more than 10% in the last decade.
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Outsourcing
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Outsourcing Outsourcing typically involves transferring one or more of an organizations business processes to an outside service provider or vendor. Sensible reasons to consider outsourcing include both strategic and tactical concerns on both a department and organizational level (Casale 1996; Corbett 1999) and role of management is crucial Outsourcing partners should be selected based on their expertise in the operation being outsourced and their cultural fit with the firm. Fears: customer service might be affected; loss of control; might impact company culture; loss of jobs; resistance from employees Successful implementation: cut costs; increase capacity; improve quality; increase profitability & productivity; improve financial performance; improve organizational competitiveness Type of Activities outsourced: information technology, manufacturing of components or whole products, product design, HR Eg., PfizerWorks
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Outsourcing: PfizerWorks Program
In 2005, Pfizer, Inc. (Pfizer) was faced with a financial crisis with many of its leading drugs nearing patent expiry.. The company announced cost-cutting initiatives including a reduction of its annual budget by US$4 billion, but it had to adopt a strategy to leverage its human capital in an efficient manner. Our Harvard MBA staff was spending a lot of time doing `support work, not their actual jobsThese are people we hired to develop strategies and innovate. Instead, they were Googling and making PowerPoints (Jordan Cohen, head of PfizerWorks program) PfizerWorks Program got started in early 2008 after months of testing the initiative with some employees. It involved outsourcing the time wasting tasks to two Indianbased business process outsourcing (BPO) firmsGenpact and a unit of RR Donnelley.
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It involved outsourcing menial tasks such as data entry, researching, creating documents, working with PowerPoint, etc. When an employee wanted to send a task to the virtual assistant, he/she would click an OOF button in Microsoft Outlook specifying what was needed, and the deadline for the job. This immediately sent a request to a virtual assistant company in India.. Barely one year into its launch the PfizerWorks initiative had freed up 66,500 hours for employees. Cohen faced several hurdles: challenge of convincing Pfizers leadership to invest in the project; had to convince thousands of Pfizers front-line employees to use it; outsourcing worried people about their jobs; his reputation was at stake. Some industry observers felt that instead of outsourcing these tasks to other countries, these should be outsourced to companies or people in the US
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The Strategy As of 2009, the PfizerWorks initiative was open to around 4,000 employees and the employees were more than impressed with the initiative. Industry observers felt that more companies would be trying out similar initiatives in the future, particularly with the economic situation continuing to be grim.
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Key Lessons:

Key Lessons: The PfizerWorks team managed to do what many consider an impossibility: devise a successful innovation from the bottom up in a big company. It was possible because Mr Cohen already had years of experience in the company, so he could understand and navigate general company politics. On a personal level, Mr Cohen had a keen grasp of his shortcomings and knew when to recruit different thinkers for his team. As a result, while Mr Cohen did run some personal risks in undertaking such a project in this way, he minimised the risks through a careful management of the various stakeholders and created his dream job as head of PfizerWorks
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Workforce Diversity Organizations are becoming a more heterogeneous mix of people in terms of gender, age, race, ethnicity, and sexual orientation.
A heterogeneous group may include women, people of color, physically disabled, senior citizens, contract labor, economically backward groups.
The labor force is getting older. There would be a shortage of workforce as baby boomers would be retiring in the coming few years. The composition of the workforce will change to include more older workers and more women. Relationship between workforce diversity & the effectiveness of a team or organization is very complex.
Diversity can become a competitive advantage.

Diverse teams help making possible enhancement of creativity, flexibility, and rapid response to changes.
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Workforce Diversity One has to learn to value and respect cultural styles and ways of behaving that are different from ones own. Discrimination is a concern; Training on diversity Some effects: increased conflicts, diversity training, flexible work schedules, building conducive work culture,, child & elder care arrangements, career development, retention strategies. The Coca Cola Company has three pillars of diversity-diversity training, diversity speaker series, and diversity library The Coca Cola Company defines diversity as: 1. Respecting individuals 2. Valuing differences 3. Representing our consumers and the markets where we do business
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Changes in Nature of Work

Total Quality Management TQM is a way of creating an organizational culture committed to the continuous improvement of skills, teamwork, processes, product and service quality and customer satisfaction.
TQM: the main ideas Do it right the first time Be customer oriented
Total Quality HR Approach
Make continuous improvement a way of life

Build teamwork Empower people
Create a climate of trust, an atmosphere for innovation
The Total Quality HR Approach is all about employee participation and empowerment, carried out in a sincere and wholehearted manner. Rewards are designed to meet employee needs. Employees are treated like customers. 360 degree appraisals are carried out before picking up the best performing teams. Small ideas and improvements are encouraged.
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TQM
SUMO model Jeeps manufactured here according highest priority to ISO 9000 certifications; Training and self-inspection given top priority.
TELCO (Lucknow)
Implemented TQM in 1995; first step was moving toward international quality system standards ISO 9000;
Total employee involvement; Creation of self managing mini, micro and mega-teams; Kaizen and suggestion schemes introduced followed by rewards and recognition system; Regular surveys of employee motivation levels accompanied by customer surveys; Got the European Quality Award
Philips India Ltd.
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Increased Job Complexity There is a rush toward more highly technological, sophisticated systems. Employees today are facing increasing turbulence in their employment relationships due to mergers, corporate restructuring, and privatization.
We are moving from an industrial to a knowledge society, Drucker (1995).

Organizations are rediscovering that humans are their critical resource and that a commitment to training & continuous learning is crucial for them to remain competitive. Bassi and Van Buren have reported that commitment to training has driven some organizations to outsource some of the training activities.
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Technological Changes & HRM
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Technological Changes & HRM Technology is connecting people around the planet and allowing small businesses in developing countries to compete in the global marketplace. Within organizations, it is blurring the temporal and spatial boundaries between individuals and their organizations. Knowledge management is helping in redesigning jobs, reshaping the dynamics of power and politics. New skills, knowledge, experience and expertise required to gain the edge over rivals. E-Business (eg., FedEx) Intranet (eg., Ford) Training on new technologies Innovative training aids
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Technological Changes & HRM: Infosys Way..
Infosys Technologies Limited has probably the largest screen in Asia. The conference room has a massive wall size screen (40 digital screens put together) and overhead camera on the ceiling for teleconferencing. Infosys can therefore hold a virtual meeting of the key players from its entire global supply chain for any project at any time on that screen. ``We could be sitting here, somebody from New York, London, Boston, San Francisco, all live. And maybe the implementation is in Singapore, so the Singapore person could also be live here.Thats globalization. Nandan Nilekani
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Changing Workforce
Employability
Age Cohort

Refers to a person's capability for gaining and maintaining employment (Hillage and Pollard, 1998). Finding workers who have employability or job readiness skills is a real problem For individuals, employability depends on the knowledge, skills and abilities (KSAs) they possess, the way they present those assets to employers. As such employability is affected by both supply-side and demand-side factors
Baby boomers (1946-1964) gen X (1965-1980) gen Y (1981-mid 2000s) Gen Z (mid 2000s to the present day)
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Contingent Work
Contingent Workers
Contingent Work
+ Flexibility in type and amount of labour resources + Save costs in benefits + Immediate access to expertise not present internally + Savings in long-term compensation costs
-
Provisional group of workers who work for an organization on a nonpermanent basis, also known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants. Contingent Workforce Management (CWM) is the strategic approach to managing an organization's contingent workforce in a way that it reduces the company's cost in the management of contingent employees and mitigates the company's risk in employing them
Lack of loyalty to employer or company Disturbs organizations core morale and culture Training costs
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Expectations of New Workforce

Equal pay for equal work Breaking down of glass ceiling Put a high premium on learning Diverse job experience Their career paths to be mapped out by their organizations Risk taking & moving across industries and functions Paid handsomely for their efforts Want a better work-life balance than their predecessors Expected to be found in emerging sectors Highly mobile Lifestyle changes
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Telecommuting An alternative work arrangement where employees work at home or a remote site, usually with a computer connection to the office. AT&T estimates that that by avoiding daily travel, telecommuters are about 10% more productive than before they started working from home.
AT&T employees prevented 70,000 tons carbon dioxide from being emitted into the air.
SunMicrosystems estimates that it saves $50 million annually because telecommuting reduces the need for office space. Higher job satisfaction, less work family conflict are some of the advantages. Lack of recognition, loneliness, are some of the potential challenges.
``in 1997, 11.6 million employees of U.S. companies worked from home at least part of the time. Today, that number has soared to 23.5 million-16% of the American labor force. Source: The World Is Flat, Thomas L. Friedman
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Virtual Teams These are cross functional groups that operate across space, time, and organizational boundaries with members who communicate primarily through electronic communications. Virtual workers work from home, hotels, their cars, or wherever their work takes them.
The human resource function plays a unique role in a virtual organization: Psychological fit System alignment Reconsider Rewards Reconsider staffing needs Develop leaders
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New Design Options

The Virtual Organization A small, core organization that outsources its major business functions. Highly centralized with little or no departmentalization. In Hollywoods golden era, studios such as MGM, Warner Brothers, 20th century Fox, owned large movie lots & employed thousands of full time specialists. Today, most movies are made by a collection of individuals & small companies who come together and make films, project by project,
Key Elements:
+ Allows project to be staffed with talent best suited to its demands + Provides maximum flexibility while concentrating on what the organization does best Cultural alignment and shared goals can be lost because of low degree of interaction among
members
May limit innovation and slow response time.

A leadership presence that reinforces the organization's purpose and facilitates communication is especially valuable. Lal Bahadur Shastri Institute of Management, Dwarka
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New Design Options

The Virtual Organization
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Virtual Organization
Ancle Hsu and David Ji ran a California based virtual organization called Apex Digital, which was one of the worlds largest producers of DVD players.
The company neither owned a factory nor employed an engineer.

It contracted out everything to firms in China With minimal investment, Apex grew from nothing to annual sales of $500 million in just 3 years
Newmans Own founded by Paul Newman and A.E. Hotchner, a food products company, sells over $120 million in food every year yet employs only 19 people.
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New Design Options

The Boundaryless Organization General Electrics former chairman, Jack Welch, coined this term as he wanted GE to become a family grocery store An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams. Concept: Eliminate vertical (hierarchical) and horizontal (departmental) internal boundaries. Breakdown external barriers to customers and suppliers.
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Boundaryless Organization
By removing vertical boundaries, management has flattened the hierarchy and minimized status and rank. Cross hierarchical teams, participative decision making practices, use of 360 degree performance appraisals
At Oticon, a $160-million-per-year Danish hearing aid manufacturer, all traces of hierarchy have disappeared. Everyone works at uniform mobile workstations, and project teams, not functions or departments, coordinate work.
Xerox develops new products through multidisciplinary teams that work in a single process instead of around narrow functional tasks
Some AT&T units are now annual budgets based not on functions or departments but on processes, such as the maintenance of a worldwide telecommunications network.
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New Design Options

The Boundaryless Organization
Removal of vertical boundaries the hierarchy is flattened and status and rank are minimized. Functional departments create horizontal boundaries that stifle interaction among functions, product lines, and units. It reduces functional departments with cross functional teams and organize activities around processes.
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Empowerment
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Empowerment Empowerment is the authority to make decisions within ones area of responsibility without first having to get approval from someone else. Managers are now called coaches, facilitators, mentors. Decision making is being pushed down to the operating level, where workers are given freedom to make choices. Eg., at Ritz-Carlton hotel chain, employees are authorized to spend up to $2,000 to handle a customer related problem.
At AT&T Universal Card Services, employees are put into teams that plan strategies for dealing with them. These teams identify top 10 problems and formulate strategies for dealing with them.
At Motorola, empowered teams are given authority to carry out a wide array of functions, including creating production schedules and job assignments, conducting routine maintenance, developing and managing budgets, and training new employees.
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What Can HR Managers Do

Employer branding (Mc Donalds, Barclays Bank) Use workforce skills and abilities in order to exploit environmental opportunities and neutralize threats. Employ innovative reward plans that recognize employee contributions and grant enhancements.
Indulge in continuous quality improvement through TQM and HR (training, development, counseling, coaching etc.).
contributions
Utilize people with distinctive capabilities to create unsurpassed competence in an area (Xerox in photocopier, 3M in adhesives, Telco in trucks, Britannia in biscuits, Nestle in coffee, McDonalds in fast foods, etc.).
Decentralize operations and rely on self managed teams to deliver goods in difficult times (Motorola is famous for short product development cycles. It has quickly commercialized ideas from its research labs).
Lay off workers in a smooth way, explaining facts (IBM, Kodak, Xerox, AT&T, Steel and Textile firms in India etc.) to unions, workers and other affected groups. HR generally plays a key role, these days, in planning and implementing corporate downsizings, and then in maintaining the morale of the remaining employees.
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Employer Branding in Barclays Bank
Issue
Strategies
Created a new visual identity for employer branding, focusing on workers inventive spirit
Invested in an advertising campaign in and around Canary Wharf tube station using real staff. Launched a new recruitment strapline 'Thinking careers', to coincide with its 'Now there's a thought' national advertising campaign. Introduced internal promotions in Barclays offices, including coffee cups and postcards, plus workshops to reinforce branding messages.
Result / Achievement
The bank had a reputation of being faceless and bureaucratic, and not a great place to work. Barclays wanted to challenge this perception by showing it had a history of being inventive.
Almost 100% of staff supported the new campaign, and staff in other offices requested posters to use as motivation tools.
Reached the top 20 Sunday Times Best Big Companies to Work For list in 2006 - its previous entry had charted at 197
Personnel Today, 2006
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HUMAN RESOURCE MANAGEMENT

PGDM Part Time Program Semester IV

Lal Bahadur Shastri Institute of Management, Dwarka

Human Resource Management - Todays session

Human Resource Management (HRM) Strategic HRM

Dynamic Environment: Globalization Outsourcing Workforce Diversity

Changing Workforce: Employability Age Cohort

Traditional vs. Strategic

Changing Expectations of Workforce

What HR Managers can Do

Lal Bahadur Shastri Institute of Management, Dwarka

Human Resource Management

Lal Bahadur Shastri Institute of Management, Dwarka

HRM and Strategic HRM

Human Resource Management

Lal Bahadur Shastri Institute of Management, Dwarka

Traditional HRM Vs. Strategic HRM

Focus Role of HR Initiatives

Flexible, whatever is necessary to succeed

Cost centre Staff specialists

Lal Bahadur Shastri Institute of Management, Dwarka

Good HR Practices Help to

Resource allocation Develop loyalty & commitment

Increase productivity & profits

Lal Bahadur Shastri Institute of Management, Dwarka

Managerial functions: Planning Organizing Directing Controlling

Lal Bahadur Shastri Institute of Management, Dwarka

HRM in a Dynamic Environment

Lal Bahadur Shastri Institute of Management, Dwarka

HRM in a Dynamic Environment

Lal Bahadur Shastri Institute of Management, Dwarka

HRM in a Dynamic Environment

Lal Bahadur Shastri Institute of Management, Dwarka

HRM in a Dynamic Environment

Lal Bahadur Shastri Institute of Management, Dwarka

HRM in a Dynamic Environment

Lal Bahadur Shastri Institute of Management, Dwarka

HRM in a Dynamic Environment

HRM in a Dynamic Environment

Lal Bahadur Shastri Institute of Management, Dwarka

HRM in a Dynamic Environment

HRM in a Dynamic Environment

Lal Bahadur Shastri Institute of Management, Dwarka

HRM in a Dynamic Environment

Lal Bahadur Shastri Institute of Management, Dwarka

HRM in a Dynamic Environment

Lal Bahadur Shastri Institute of Management, Dwarka

HRM in a Dynamic Environment

HRM in a Dynamic Environment

Diversity can become a competitive advantage.

Lal Bahadur Shastri Institute of Management, Dwarka

HRM in a Dynamic Environment

Lal Bahadur Shastri Institute of Management, Dwarka

Changes in Nature of Work

Total Quality HR Approach

Make continuous improvement a way of life

Create a climate of trust, an atmosphere for innovation

Lal Bahadur Shastri Institute of Management, Dwarka

Philips India Ltd.

Lal Bahadur Shastri Institute of Management, Dwarka

Changes in Nature of Work

We are moving from an industrial to a knowledge society, Drucker (1995).

Lal Bahadur Shastri Institute of Management, Dwarka

Changes in Nature of Work