ISSUES

IN
HRM

By- Somesh, Swapnil, abha, kratibha & kiran

INTRODUCTION-
There are many issues in HRM like Outsourcing
activities, BPO & Call-centres, HR Professionals as
change agents, HR Manager as Strategist, Balancing
work life, HRM in M&A’s, Attitude towards Unions,
Globalization, Managing Diversity etc.

We are going to discuss the first two issues ie.

 OUTSOURCING
 BPO & CALL-CENTERS
Outsourcing HR Activities:
1. P&G has signed a 10-year, 400 million dollars deal with
IBM to handle employee services. IBM will support almost
98000 of P&G employees in nearly 80 countries with
services such as payroll processing benefits
administration, compensation, planning and relocation
services and travel and expense management.

2. National Highway Authority of India is handling projects

worth Rs.45000 crores with a human resource strength of
just 570 people, working out to a ratio of one person per
Rs100 crore- thanks to outsourcing.
So, Does it mean that a function so dearly
held and cherished for decades,
suddenly becomes irrelevant?

Then, of what use are the specialized

bodies advocating HR functions?

Why then B-schools run courses on HR

specialization?
Indian Firms benefiting from
Outsourcing are many:
 250 Engineers from Infosys develop IT applications for Bank of
America.
Infosians also process home-loans for Green Point Mortagage of Novato,
Caloifornia.

WIPRO, 5 radiologist interpret 30 CT-scan a day for Newyork General

Hospital.

2500 college educated men and women are buzzing at midnight at WIPRO
Spectramind at New Delhi. They are busy processing claims for a major US
Insurance company and providing help-desk support for a big US internet
service provider- all at a cost upto 60% lower than in the US
 7 WIPRO Spectramind staff with Phds in molecular
biology shift through scientific research for Western
Pharmaceutical companies.

 ICICI Infotech Services, Satyam Computers, TCS,

Transwork, E-service, Daksh are the other active
Indian Players in the Outsourcing Industry.

HRBPO is emerging as a big opportunity for Indian

BPOs with the global market in this segment estimated
as $40-60 billion per annum.
HR Managers & BPOs –

 What does BPO mean to HR managers?

 The major challenge faced by HR manager is

Retention of Employees.

 Exit of an Employee before the nine month period can

cost upto 5 times of his paid salary.
The attrition rate varies between 40% and 50%.The reasons for
frequent job-hopping in BPO industry are:

Compensation 10%
Night shifts 35%
Monotonous/Boring Jobs 30%
Others 25%
 Agents want to become team leaders. Team leaders
want to become supervisors. And supervisors want
nothing short of CEO’s jobs.

 HR managers need to be proactive and develop

innovative employee interventions to retain talent.

 The role of Supervision in People management

continues to be relevant today.

 It may be stated that people level managers and not

Organizations.
Remedies:
 Monetary and Non-Monetary rewards.
 Free Environment for Employees.
 Non-Poaching Agreements.
 Salary hike.
 Organize Parties and fun games.
 Knowledge sharing Opportunity.
 Exit interviews .
 Change in Hiring Process.
o Call center –Challenges faced by
Employees:-

 No Identity of their own.

 High Stress Level.
 Health Hazards.
 Drug Addiction.
 Low Aspirational Levels.
 Disrupted Social Life.
Challenges before the HR Manager:

 Attrition Rate

 Logistics

 HR Manager is answerable to following questions:

How long these boys and girls continue to work in
call-centres?

Can a Call-centre job be a preferred choice for an

individual to pick up, join, work and retire?
 How to distress these young men and women and
prevent them from getting burnt out by the time they
reach there 40’s??

 How to protect these youngsters from becoming

drug addicts?

 How to restore values in them?

 How to prevent them from getting dehumanized

and turn out to be robots??
THANK YOU!!