Hrm Project Final.

8/6/2019 Hrm Project Final.

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A Comprehensive Project on Challenges of Human Resource Management

submitted in Partial fulfillment of the

Requirements for the Programme of Human Resource Management of Gujarat Law Society

By

KUNAL GOSWAMI (HRM 1015)

CHANDNI KACHHIA (HRM 1016)

Guided By:

Prof. Jasmin Padiya

GLS CENTRE FOR MANAGEMENT EXCELLENCE

2011



Preface

As HRM students it is important to supplement theoretical knowledge and due to the innovation

and modernization and with the development in concept of the management, the need arises for

manager to be trained in a professional manner. It is necessary to know the implications for

HRM students.

Project study gave us an opportunity to understand the various practical aspects of business and

we learned to apply our subject concepts in the study.

The subject for whom this project is undertaken deals with finding marketing research problem.

There is several approaches to problem. Various techniques are used to collect primary data. It is

very necessary that the data collected should be appropriate respondance of the target segment.



Acknowledgement

It is our pleasure to acknowledge those who have contribute to this project directly or indirectly,

through it will be still a adequent appritiation of there contribution, we hear by acknowledge the

names of the people to whom we hall always grateful.

We are very thankful to Professor Jasmin Padiya, Professor Deepti Arrora, and Rushab Shah

who perform or our internal guide for this project thankful for his constant guidance, support and

Inspiration.

Thanks to our parents who always keep us away from falling apart apart during endless hours of

our project, they always keep our spirit up; we would like to thank all friends of our college for

the moral support provided of them throughout the HRM curriculum.

We early look forward for the suggestion for improvement from the readers of these Project.



Executive Summary

In this project HR is working on the Challenges, which is faced in Human Resource

Management. To survive in this highly competitive scenario, managers are being pressurized to

improve quality, increase productivity, cut down waste and eliminate inefficiency. The efforts of

the employer the employee assume relevance in this context. And this is where Human Resource

Management can play a crucial role.

The role of the Human Resource Manager is evolving with the change in competitive market

environment and the realization that Human Resource Management must play a more strategic

role in the success of an organization. Organizations that do not put their emphasis on attracting

and retaining talents may find themselves in dire consequences, as their competitors may be

outplaying them in the strategic employment of their human resources.

In this Project we can focus on the Challenges which HRM, how it can be useful to organization

and there relevant resources.

The Challenges which we can describe in this Project as per the needs of company¶s are as

follow:-



Challenges of Human Resources Management:

1. Going Global

2. Embracing technology

3. Managing Change

4. Developing human capital

5. Responding to the market

6. Containing Costs



Conclusion on Challenges

Going Global:-

The key to creating a consistent corporate culture across multiple locations is maintaining the

critical balance between a strong corporate culture and local cultural differences.

Finding competent individuals that understand geographies, cultures, laws, and business practice.

Embracing New Technology:-

Today, many firms are using technology to manage their HRM called Human Resources

Information System (HRIS)

HRIS ±computerized system that provides current and accurate data for purposes of control and

decision making.

So, how to come overall on these New Technology, we can emphasis on these.

Managing Change:-

This summary is intended as an aide memoire to employers and line manager and a useful

reference point for businesses.

Change can be stressful and destructive when it is either mistaken or mismanaged. Few changesaffect everyone in the same way, and the impacts of certain changes may not be immediately

apparent. There might be hidden and longer term consequences. Board members may be divided

into camps between those who are for or against particular changes, while those who are

indifferent or ambivalent may simply µgo with the flow¶.



Developing Human Capital:-

Human capital ±the economic value of knowledge, skills, and capabilities.

Human capital is a valuable concept because it recognizes that people should be treated as assetsrather than as an expense. Seems to me, security professionals have been arguing that point about

their profession for a long time.

Developing human capital through HR would not be complete if consideration is not given to the

issue of values and ethics. Positive work values, the spirit of competition and integrity must be

an inherent part of the labour force. Employers are concerned about work attitudes among

workers. They are concerned about job-hopping, dislike for hard work and their unwillingness to

put in extra efforts especially to work over-time.

Responding to the Market:-

Broadly defines the concept of market failure or winner and explores options for responding to it.

It pays particular attention to the role of business leaders in addressing management.

Meeting customer¶s expectations is essential for any organization. Focusing on internal

management issues, managers must also meet customer requirements of quality, innovation,

variety, and responsiveness.

Containing Costs:-

A guided tour through a streamlined e-recruiting process with an in-depth view of the option for

boosting the quality of your talent pool while reducing recruiting costs and time-to-time.

Investments in reengineering, TQM, human capital, technology, globalization, the like are all

very important for organizational competitiveness.



Introduction

About and Importance of HR

Define:-

� ³HRM is the function facilitating the most effective use of people to achieve both

organizational and individual goals´.

� ³HRM is that field of management which deals with planning, organizing &

controlling the functions of procuring, developing, maintaining and utilizing labour

force such that organizational & individual goals are fulfilled´.

� Process of acquiring, training, appraising and compensating employees such that they are

motivated to achieve both the organizational and individual goals.



Importance of HRM

� Importance of human resources can be discussed at four levels:

± Corporate

± Professional

± Social

± National

1. Importance of HRM is classified as under:

1. Corporate:

a. HRM can help an enterprise in the following ways:

b. Attracting talent through effective HRP

c. Developing necessary skills & attitude with training

d. Securing cooperation through motivatione. Retaining talent through the right policies

2. Professional:

a. HRM helps improve quality of work life and contributes to growth in the

following ways:

b. Opportunities for personal development

c. Motivating work environment

d. Proper allocation of work

e. Healthy relationships between individuals & groups



3. Social

a. Society benefits from good HRM in many ways:

b. Good employment opportunities

c. Development of human capital

d. Generation of income & consumption

e. Better lifestyles

4. National

a. Drivers of development of a country

b. Deliver economic growth



Introduction on Challenges of HRM

� Going Global:

Involvement in global markets presents the firm with a number of challenges. These challenges

influence competitive advantage in global markets, and in part determine how readily the firm

can achieve economies of scale and scope as well as realize synergies from operation in a multi-

country environment. In striving to develop a strategy that will make it more competitive, the

firm must grapple with four interrelated challenges of global marketing strategy - change,

complexity, competition and conscience.

Many international companies (84 percent) indicated that their parent organization was trying

to establish a corporate culture at all locations/offices that was consistent with its goals and

vision. Most organizations (88 percent) reported that creating a corporate culture is difficult because, in certain locations, local cultures and customs have a moderate to great influence on

the way business is conducted. Organizations have taken the following actions when trying to

create a consistent corporate culture.

The process of globalizing resources, both human and otherwise, is challenging for any

company. Organizations should realize that their global HR function can help them utilize their

existing human talent from across multiple geographic and cultural boundaries. International

organizations need to assist and incorporate their HR function to meet the challenges they face if

they want to create a truly global workforce.



� Embracing technology

Once you develop a policy, make sure that everyone on your team understands the importance of comprehensive and uniform information tracking. Today¶s technology can literally track an

unlimited number of constituents and their vital information, but your database is only as good as

the information entered into it.

The start of each fiscal year provides an opportunity to revisit your evaluation criteria and ensure

that each development officer has a clear understanding of his or her goals and how they fit into

the overall fundraising efforts of the organization.

Keep in mind that every organization is different and requires benchmarks in tune with its

specific needs and goals, so a little trial-and-error might prove useful in finding what works for

you.

� Managing Change

As the organizations are going Global this is one problem faced by many organizations of

managing the change in the organization and how to make people acquanted with the changes.

84% of executives polled said that they have at least one change initiative going on in their

organizations.

Responsibilities change, job assignments change, work processes change. And this is a

continuous change- a part of the job ±rather than temporary.

� Developing human capital

The objective of the Forum is to identify key human resources development challenges and

needs of the sector, and to share best practices in human resources management, learning,training and development. The Forum will look at the human capacity development practices,

experiences and challenges facing organizations in the sub-region.



It will also provide a platform for sharing global best practices and new models of managing

talent in the ICT sector, with a particular focus on emerging trends in learning and development.It will provide an opportunity and platform for specialists from the different participating

countries to share their knowledge and expertise. The ITU will share its ideas about the ITU

Academy and its new online portal, which is intended to streamline the learning anddevelopment activities.

Responding to the Market

Organizations use several approaches to address this very crucial issues:

1. Total Quality Management (TQ M)

2. Six Sigma

3. Reengineering

TQM, Six Sigma, Reengineering, and HRM

TQM ±is a set of principles and practices whose core ideas include understanding customer

needs, doing things right the first time, and striving for continuous improvement.

Six Sigma ±a statistical method of translating a customer¶s needs into separate tasks and definingthe best way to perform each task in concert with the others.

Reengineering ±has been described as ³the fundamental rethinking and radical redesign of

business processes to achieve dramatic improvements in cost, quality, service and speed.

Containing Costs

Investments in reengineering, TQM, human capital, technology, globalization,

and the like are all very important for organizational competitiveness.



Yet, at the same time, there are increasing pressures on companies to lower costs and improve

productivity to maximize efficiency.

Labor costs are one of the largest expenditures of any organization

Organizations have tried a number of approaches to lower costs:

Downsizing, outsourcing and employee leasing, and productivity enhancement.



Objective of the Project

Going Global

Involvement in global markets presents the firm with a number of challenges. These challenges

influence competitive advantage in global markets, and in part determine how readily the firm

can achieve economies of scale and scope as well as realize synergies from operation in a multi-

country environment. In striving to develop a strategy that will make it more competitive, the



firm must grapple with four interrelated challenges of global marketing strategy - change,

complexity, competition and conscience.

Workforces are becoming more globally-dispersed.

More than 50% of respondents' workforces reside outside of their corporate home country ± the

pressure to standardize policies and processes, manage increased workforce mobility and manage

compliance needs is greater than ever.

Many senior HR executives are stepping up into global roles, but are

finding the transition challenging.

45% of the executives have moved into global roles over the last two-to-three years ± many of

these transitioned in the last year alone. However, while roles are being structured globally,

most of the executives have been struggling to get away from dealing with local and regional

issues.

Lack of standardization.

The lack of a consistent approach to governance and compliance,

especially in Europe and Asia ± where employment and tax laws vary widely in different

jurisdictions ± creates further challenges for HR leaders. There is also a lack of standardization

around the approach to global mobility, which hinder's HR's ability to apply consistent

procedures to the compensation and benefits of a workforce that has been growing rapidly. It is

becoming increasingly important for companies to properly manage the logistics of moving there

employees from country to country.



The Four ³Ps´

The four P¶s of business marketing management will serve as the core elements of aiding the

businessman who wants to go global. As the company gears towards global marketing where one

brand or product is marketed the same way everywhere, the four P¶s are going to be affected.

Product lifecycle

In the same way, it will define how the company must deal with the evolutionary movement of

global marketing. The product, price, placement and promotion must be considered in

accordance with the market variations from country to country. As the global marketing strategy





4. VISIT THE MARK ET

Face-to-face meetings are still the best way to finalize negotiations and really understand your

clientele, as well as facilitating the relationships that will pay off in the long run.

5. WRITE A PLAN

If you require financing to launch this new venture you will need to prepare a Business Plan;

even if no financing is needed, a Strategic Intent and Marketing Plan should be prepared, since

this expansion should be treated as if it were a new division of the company.

6. FORM STRONG ALLIANCES

Entering a new market with the help of a local partner or agent may be more prudent, and could

allow you to test the market before entering it fully. Joint ventures, strategic alliances and

technology exchanges can be very successful, and are often overlooked as an option to

expansion.

7. CONSULT THE EXPERTS

Don't attempt to go it alone; local legal and financial experts should obviously be engaged, as

should experts in PR, marketing and other specializations pertinent to your industry.

8. BE CULTURALLY SENSITIVE

Adapt your services to the local culture. Translate and localize all pertinent internal and external

communications and information, even if English is understood by all parties.

9. CONSIDER THE LOGISTICS

Local regulations, currency fluctuations, tax implications, immigration issues for transferring

staff - these are just some of the logistics that need to be assessed.



10. BE PATIENT

Keep in mind that this new venture requires a serious commitment, both from a time and

financial perspective. Be flexible in your dealings in the new market and you will reap the

rewards.

Advantages of Going Global

y Lower Marketing Costs:

If you are to consider lump-sum cost then, yes, it is high, but the same cost even goes

even higher if the company has to market a product differently in every country that it is

selling.

y Global Scope:

Scope of this kind of marketing is so large that it becomes a unique experience.

y Brand image Consistency:

Global marketing allows you to have a consistent image in every region that you choose

to market.

y Quick and Efficient Use of Ideas:

A global entity is able to use a marketing idea and mould it into a strategy to implement

on a global scale.

y Uniformity in Marketing Practices:

A global entity can keep some degree of uniformity in marketing throughout the world.



Disadvantages of Going Global

y Inconsistency in Consumer Needs:

American consumer will be different from the South African. Global marketing should be

able to address that.

y Consumer Response Inconsistency:

Consumer in one country may react differently than a consumer in another country.

y Country Specific Brand and Product:

A Japanese might like a product to have a traditional touch, where as an American might

like to add a retro modern look to it. In this case, a global strategy is difficult to device.

y The Laws of the Land Have to be Considered:

Original company policies may be according to the laws of home countries. The overseas

laws may be conflicting in these policies.

y Infrastructural Differences:

Infrastructure may be hampering the process in one country and accelerating in another.

Global strategy cannot be consistent in such a scenario.



2. Embracing New Technology

Advancements in communication and software technology are creating significant productivity

improvements, particularly for the human resource professionals who use contemporary human

resource and talent management systems.

Many talent management system software providers, including those who develop applicant

tracking/recruiting systems, integrated payroll/human resource systems and learning

management systems are actively working to embed several features into their products. Some of

the most notable advancements include:



y Alert Technology

y Conditional Workflow

y

E-mail-based Actions

Even though these features have been in existence for many years, it takes time for software

developers to incorporate these features into their products. In many cases, it requires significant

redevelopment of the provider¶s software application. For example, the concept of employee self

service has existed for decades. However, it required the affordable access to an enabling

communication medium (Internet/World Wide Web) and developers to assimilate thistechnology into their products. Today, employee self service is a common feature that most

human resource applications utilize.

Here are some brief definitions and examples of the newest state-of-the-art features that are

available for you to implement, and what you should now expect from using these solutions.

Alert Technology:-

Alert technology automatically monitors your human resource system(s) and proactively

distributes information to your human resources and payroll personnel, managers and employees

via your e-mail system. Specified actions and dates trigger automated messages, informing

relevant parties about key activities and pending issues. For example, alerts can be established to:

y Monitor key dates and send notices to employees and managers about annual

performance reviews.

y Send automatic replies via e-mail for items such as thank you notes to applicants who

send in resumes.



y Generate standard e-mail scripts to welcome new employees, while informing relevant

departments of the new hire.

Before alert technology arrived, reports would have to be manually initiated by users to identify

the needed information. Alerts can significantly reduce time-consuming administrative tasks

associated with paper flow.

More and more human resource teams are demanding that their applications utilize alert

technology. In many cases, it has become apparent that simple, yet time consuming activities

have to be automated to save time and increase effectiveness. Software providers have created

predefined, easy-to-use templates for common activities like new hire and termination actions,

performance review tracking, overtime and paycheck related listings, attendance records,

applicant tracking, and training management tracking.

In other cases, the software provider can work with a third party company, such as Cognos, that

specializes in providing alert technology for software applications. In this case, a number of

sophisticated alerts can be established with different output formats (e-mails, document files,

spreadsheets or printed paper).

Conditional Workflow:-

Workflow automation is not new to the human resource system software industry. However,

significant advancements in the sophistication of workflow and adoption by all facets of business

management software are motivating many human resource system software providers to include

³conditional´ workflow technology in their applications.

Workflow is a term used to describe the tasks, procedural steps, organizations or people involved

required input and output information and tools needed for each step in a business process.

Workflow automation takes an existing chain of work, such as initiating an employee¶s pay

increase, and makes it automatic, usually with workflow software that guides information from



point to point without human intervention.

Early versions of workflow within human resource applications usually limited users to pre-

defined workflows with limited functionality. Typically, automated workflows included routing

requests for approval and/or notification. However, the same workflow actions were taken

regardless of who and/or what it was for. Simple workflow templates worked with a limited

ability to differentiate the data¶s ³conditions.´ The workflow is worked on an ³unconditional´

basis.

To illustrate an example of a non-conditional workflow in human resource management process,

we will use a pay increase. For example, let us assume a company has a policy that requires

division president approval for all exempt personnel pay increases over 10 percent. In an

environment that uses simple, non-conditional workflows, all pay rate requests would be

forwarded to a designated number of approvers. In most cases, the chain of approvers may be

different depending on your organizational assignments (company, department, location, etc.).

However, with non-conditional workflow, there is no way to define a different course of action

(number of approvals, type of notices, messages, etc.) based on whether certain data conditions

exist. In this case, all pay increases would require the same number of approvals. In our example,

the division president could either approve all or no exempt personnel pay increases.

If conditional workflow technology is utilized, we would be able to identify different courses of

action, depending on whether certain conditions are met. In our example, we would be able to

tell the system to include the division president as an approval step if a pay increase for exempt

personnel is greater than 10 percent.

E-mail-based Actions:-

We can probably all agree that e-mail has been embraced by business as one of the primary

communication tools between people and, more recently, software systems and people. People

send people e-mails. Software systems also send people e-mails. Common e-mails from software



systems include alert notices from your bank or credit card companies, Internet order

confirmations, notices that e-mail was not delivered, etc.

Just a few years ago, the e-mails we received from software systems were typically just notices.

However, as technology advanced, we began to receive e-mails requiring some form of required

³action.´ These e-mails typically contained Web site links to the sites/software requiring the

action. However, in most cases, e-mail recipients had to ³sign-in´ to the originating software

system and perform the required action indicated by the e-mail. Using today¶s e-mail and

software technology, the e-mail recipient is now able to react to the request within the e-mail

itself, thus bypassing the sign-in requirement. The benefit of using this technology is that users

do not need to learn the underlying software application and can respond instantly using a

familiar communication medium: e-mail.

Using the pay rate increase example in the previous section, an automated workflow may have

been designed to send an e-mail indicating that an approval action needed to be taken. Using

older technology, the e-mail may have contained a Web site link to the human resource system.

However, it still required a user to sign into the system and process an approval for the workflow

request. Using current technology, the e-mail may include an ³Approve´ or ³Deny´ button that

the user can select, thereby performing the action without signing into the originating system.

What to Consider

Today¶s human resource management systems are embracing the latest trends in software

technology. Some of the recent state-of-the-art features include alert technology, conditional

workflow and e-mail-based actions. As your company is upgrading or adding to its humanresource management system, consider selecting a partner whose systems use any or all of these

time and money saving technologies. Not only will this allow you to improve how you execute

today¶s business processes, but it will also prepare the foundation you will need for continuing to

add capabilities, efficiencies and speed in a business environment that only promises to be more

demanding.



3. Managing Change

84% of executives polled said that they have at least one change initiative going

on in their organizations.

Unfortunately, successful change or change management rarely occurs naturally or easily. Here

is why:

1. Not establishing a sense or urgency

2. Not creating a powerful coalition to guide the effort

3. Lacking leaders who have a vision

4. Lacking leaders who communicate the vision

5. Not removing obstacles to the new vision

6. Not systematically planning for and creating short-term ³wins´

7. Declaring victory too soon

8. Not anchoring changes in the corporate culture

Responsibilities change, job assignments change, work processes change. And this is a

continuous change- a part of the job ±rather than temporary.



HR tips for Managing Change

1. Understand why you want or need to change.

If you don¶t, no-one else will« Effective communication is one of the key factors in the

successful implementation of change.

2. Get the right people in place to lead the change.

What skills do you need? What attitudes are you looking for? And who has them? Use a tool

like Belbin team roles to help you identify who has the attributes you are looking for.

3. Devise the vision and strategy

what needs to be done and when. If you are sponsoring or leading change it¶s hard to remember

that everyone does not have all the knowledge that you do. So using a simple method of

identifying what needs to happen when and updating it regularly allows others to understand the

impact on them.

4. Explain the reasons for the change to your people.

Give people the opportunity to ask questions and to challenge what is happening ± throughout

the process. This helps their understanding of why things need to change. The more open the

process the more trust will be built as the project proceeds.

5. Get everyone involved in how the change is implemented.

They will help you identify the real impact where it matters most ± at the front line. Find out

who¶s implemented that type of change before and give your people the opportunity to visit or



see for themselves what pitfalls have been encountered and how things have changed for the

better.

6. Get rid of obstacles that stand in the way of achieving your vision.

For example, get rid of old systems and procedures that no longer serve a purpose. Remember

that people will hang on to the familiar and do what they¶ve always done if they have the

opportunity to! This will disempower the saboteurs - people who stand in the way of progress.

7. Identify some short term wins ±

nothing motivates like success! Changes, like providing new PCs before the implementation of a

new IT system, can help people see some benefits from the change, and at an early stage.

8. Encourage risk taking, new ideas, activities and actions.

Involving people along the way helps them to understand what¶s in it for them. Remember that

there are lots of examples from history of many failures before a great success, so

encouragement from you could lead to more benefits than you ever expected.

9. Recognize and reward people who made the wins possible.

Differentiate between those who are championing the change and those who aren¶t. You want to

encourage the heroes rather than the saboteurs. And those who are not either (the sheep!) will

follow those with the loudest voices.

10. Keep asking questions to check out the progress you are making.

Talk to people involved in the project often ± and not just those who are accountable for the

delivery of the project. By talking to anyone affected by the project you will be demonstrating

that you are interested in people¶s views and discover what is really happening.



4. Developing Human Capital

The idea that organizations ³compete through people´ highlights the fact that success

increasingly depends on an organization¶s ability to manage Human capital.

Human capital is intangible and elusive and cannot be managed the way organizations manage

jobs, products, and technologies.

One of the reasons for this is that employees, not the organization, own their human capital.

If valued employees leave a company, they take their human capital with them, and any

investment the company has made in training and developing those people is lost.

To build human capital in organizations, managers must continue to develop superior knowledge, skills, and experience within the workforce.

Human Capital and HRM

Staffing programs focus on identifying, recruiting, and hiring the best and the brightest talent

available.

Training programs complement these staffing practices to provide skill enhancement,

particularly in areas that cannot be transferred to another company if an employee should leave.

(What are transferable skills?)



The Importance of Developing Human Capital

Corporations are recognizing the importance of investing in their employees now more than ever

before. Companies are beginning to understand that to stay on top in the global economy, they

need to place more and more emphasis on developing and retaining their people. Organizations

that appreciate the financial impact of their employees often refer to them as human capital.

Derek Stockley, who works as a human resource trainer, defines human capital as ³recognition

that people in organizations and businesses are an important and essential asset who contribute to

development and growth, in a similar way to physical assets such as machines and money. The

collective attitudes, skills and abilities of people contribute to organizational performance and

productivity. Any expenditure in training, development, health and support is an investment, not

just an expense´. He continues to say, ³Competition is so fierce and change is so fast, that any

competitive edge gained by the introduction of new processes or technology can be short-lived if

competitors adopt the same technology. But to implement change, their people must have

thesame or better skills and abilities.

In defense of this statement, we have noticed a shift in our clients' strategic values from the

tangibles to the intangibles. What began as a change in requirements for senior executive

searches has become a shift permeating through the ranks of all the organizations we service. In

other words, our clients have shifted their hiring focus from technology to people and process. I

believe this trend is one of the factors that has increased the desire to hire non-traditional

information security professionals by many of our forward-thinking clients.

This reprioritization of the value of human capital has changed the profile of what a successfulcandidate looks like, even in the most technical roles.



Relationship and consensus building skills are highly sought after at the middle management

level. The job description for a recent middle management search required the ³ability to build

relationships with Business and Technology leadership, audit personnel, legal counterparts,

compliance, human resources, and internal and external cross functional teams.´ To read

between the lines: If you are to be successful and valuable you will need to create the personal

relationships necessary to address the unique requirements and risk appetites of the business, so

that your solutions are measured, balanced and effective.

At the executive level, identifying candidates with proven program management skills is a

priority. Many corporations are creating broad-reaching IT risk management and business

resiliency programs. In many cases these programs focus on developing and centralizing

governance and performance metrics models. Success at this level requires leadership skills with

the ability to manage diverse groups and multiple projects while driving results.

Consulting firms are strategically growing their practices to support clients committed to acting

on the results of audits and assessments tied to all of the recent focus on regulatory requirements.

Those being hired are addressing not just technology, but the broader issues related to process

design and improvement. Professionals skilled in Six Sigma and ITIL are able to differentiate

themselves.

The bottom line is this. In order to achieve professional growth and success in the next period of

increased talent acquisition, technology professionals are going to have to step out of their

comfort zone and develop the holistic, relationship-focused business skills that companies are

supportive approach to recruiting and retention if they want to find and keep the new breed of

evolving talent

Human capital is a valuable concept because it recognizes that people should be treated as assets,

rather than as an expense. Seems to me, security professionals have been arguing that point about

their profession for a long time.



5: Responding to the Market

Organizations use several approaches to address this very crucial issues:

1. Total Quality Management (TQ M)

2. Six Sigma

TQM, Six Sigma, Reengineering, and HRM

TQM is a set of principles and practices whose core ideas include understanding customer

needs, doing things right the first time, and striving for continuous improvement.

Six Sigma ±a statistical method of translating a customer¶s needs into separate tasks and defining

the best way to perform each task in concert with the others.

As the role oh HR we can justify there three challenges in

detail:

Total quality management (TQM) is an improvement program which provides tools and

techniques for continuous improvement based on facts and analysis; and if properly

implemented, it avoids counterproductive organizational infighting.

Plan-do-Check-Act (PDCA) Cycle:

The Plan-Do-Check-Act (PDCA) cycle applies the scientific method to

problem solving. In the plan phase, the problem solving team analyzes data to

identify possible causes for the problem and then proposes a solution.

In the Do phase, an experiment is conducted. In the check phase, the results of the experiment

are analyzed. And in the Act phase, if the results of the experiment are favorable, the plan is

implemented. If the results of the experiment are not favorable, the team goes back to the

original data and starts allover again.



Perhaps the most important feature of TQM is that "it improves productivity by encouraging the

use of science in decision making and discouraging counter productive defensive behavior .

Thousands of organizations have been involved in total quality management (TQM) and similar

programs.

Advantages of Total Quality Management:

1) Improves reputation- problems are spotted and sorted quicker so there are zero defects

2) Higher employee morale± workers motivated by extra responsibility, team work and

involvement in decisions of TQM

3) Lower costs ± Decrease waste as fewer defective products and no need for separate

4) Quality Control inspectors

Disadvantages of Total Quality Management:

1. Initial introduction costs- training workers and disrupting current production whilst beingimplemented

2. Benefits may not be seen for several years

3. Workers may be resistant to change ± may feel less secure in jobs

.



Six Sigma

Six Sigma is a meticulous methodology that make use of information management by facts and

statistical analysis to define, measure and improve a company's operational performance,

practices and systems. It identifies and prevents "defects" in manufacturing and service-related

processes to anticipate, and achieve or exceed total customer satisfaction.

The primary objective of the Six Sigma methodology is the implementation of a measurement

based strategy, which focuses on process and sub-processes improvement through the application

of Six Sigma best practice such as DMAIC and DMADV. The Six Sigma DMAIC (Define,

Measure, Analyze, Improve, Control) method is applied for improving existing processes and

looking for incremental improvement. The Six Sigma DMADV (Define, Measure, Analyze,

Design, Verify) is applied for developing new processes or products at Six Sigma quality levels.

It can also be employed if a current process requires more than just incremental improvement

.

Advantages :

(1) Six Sigma is driven by the customer and thus aims to achieve maximum customer

satisfaction and minimizing the defects. It targets the customer delight and new innovative ways

to exceed the customer expectations.

(2) Implementation of Six Sigma methodology leads to rise of profitability and reduction in

costs. Thus improvements achieved are directly related to financial results.

(3) Six Sigma is successfully implemented in virtually every business category including returnon sales, return on investment, employment growth and stock value growth.

(4) Six Sigma targets Variation in the processes and focuses on the process improvement rather

than final outcome.



(5) Six Sigma is prospective methodology as compared to other quality programs as it focuses

on prevention on defects rather than fixing it.

(6) It is attentive to the entire business processes and training is integral to the management

system where the top down approach ensures that every good thing is capitalized and every bad

thing is quickly removed.

Disadvantages:

(1) Applicability of Six Sigma is being argued among the Six Sigma critics. They opined that

the quality standards should be according to specific task and measuring 3.4 defects per millionas standard leads to more time spent in areas which are less profitable.

(2) Six Sigma gives emphasis on the rigidity of the process which basically contradicts the

innovation and kills the creativity. The innovative approach implies deviations in production, theredundancy, the unusual solutions, insufficient study which are opposite to Six Sigma principles.

(3) People argue that Six Sigma is a bit gimmicky and simply a rebranding of the continuesimprovement techniques and tools as practiced by Toyota. It thus promotes outsourcing of

improvement projects with lack of accountability.

(4) Six Sigma implementation constantly require skilled man force. Thus control and employeededication are hard to accomplish if it¶s not implemented regularly.

(5) While converting the theoretical concepts into practical applications there are lot to real

time barriers which needs to be resolved.



6. Containing Costs

Investments in reengineering, TQM, human capital, technology, globalization,

and the like are all very important for organizational competitiveness.

Yet, at the same time, there are increasing pressures on companies to lower costs and improve

productivity to maximize efficiency.

Labor costs are one of the largest expenditures of any organization

Organizations have tried a number of approaches to lower costs:

Downsizing, outsourcing and employee leasing, and productivity enhancement.

We can discuss these challenges in detail:

1) Downsizing ±the planned elimination of jobs.

Other ways of downsizing besides direct layoffs:

� Early retirements

� ³Sweetened´ voluntary separation program

� Sabbaticals

� Severance packages

Downsizing is very common in corporate business in the United States. In fact, there are 50% more

victims of downsizing in the United States every year than there are victims of violent crime. Downsizing

is so common in the United States that the United States Bureau of Labor Statistics publishes quarterly

statistical reports on 'mass layoffs.' More than forty-three million jobs have been lost to downsizing

since 1979. Furthermore, (75%) of households have had a close encounter with downsizing since 1980,



and one-third of people have actually lost a job because of downsizing. Another 40% know someone

who has lost a job due to downsizing.

Unfortunately, the majority of people who have been downsized (65%) report earning lower salaries

than they earned in the jobs they lost. This means only slightly more than one-third earn equivalent or

higher wages in their next jobs. Not surprisingly, one in ten adults who has been downsized report that a

major crisis has resulted in their lives as a result.

10 Ways to Survive in Downsizing

1. Realize that downsizing isn¶t personal.

There is a great possibility that the downsizing happened for reasons outside of your control If

that¶s the case then it¶s important to understand that it¶s not your fault or a reflection on you.

You¶re just getting caught in the middle of business fact of life that impacts just about everyone

at some point in their career. There no one to blame.

2. Don¶t take the victim mindset. Adopt the perspective that you are the same great HR

person that you were before downsizing. It¶s important that you take on the frame of mind that



you as a person, are always bigger and more important than any job or career that you¶ll ever

have«.and that your unique set of HR skills and experience are valuable.

3. Reach out and spend time with others in your organization, especially other

HR folks, who have also been downsized.

You¶ll get job and career ideas from them if you stick together, network and support each other.

Resist the urge to think that you¶re in competition with each other. There is power in numbers.

4. Stay in touch with your HR colleagues who are still working at the

company.

Candidly, some may uncomfortable talking with you since you¶re now moving on. However,

don¶t let them feel awkward and be sure to bury your own ego. The next job opening or career

opportunity usually comes from someone you already know, not from an ad or a headhunter. If

you¶ve done a great job of building relationships and networking, don¶t be surprised if you get a

call from a former colleague or boss about a different opportunity.

4. Form your own Career Advisory Board of your 5-7 smartest friends

and family members who know you well.

Why not use this as an opportunity for getting input from people around you who care?

Get together twice a week to toss around ideas for how to handle the current situation and

let them challenge you to look beyond the problem and consider new possibilities. They

may know you better than you do and may provide options you¶ve not thought about.

6. If you need to, reduce your spending right away to give you extra time to

sort things out.

Don¶t assume that you¶ll land the right HR job immediately. Cut your personal expenses by at

least 40-70%, if needed. Don¶t be afraid to take brutal, even radical steps. Often, this type of self-

imposed µjolt¶ will encourage a different type of thinking, which is critical during this time for



you. And, frankly, who needs the stress of worrying about money? You need to be thinking

clearly at this time about your next career steps.

7. Start thinking about the kind of work that is personally rewarding to

you.

You may find out it¶s not HR work. If you¶re an HR generalist, do you want to stay a

generalist? If you¶re doing labor relations work, are you tired of wrestling with unions or

do you want to chance your career direction entirely. Too many people are not in jobs or

careers which fulfill or satisfy them. And life¶s too short to suffer in silence. So, use this

break as an excuse to get real selfish and discover what makes you the happiest. When

you¶re happy doing what you¶re doing, the money will usually take care of itself.

8. Invest in strengthening your towering skills.

No one else will. The HR job market is hungry for highly skilled individuals in any field

± generalists, specialists, consultants, coaches, mentors, part-timers, or contractors. If

you¶ve got a specialized skill or natural aptitude, invest in expanding that skill and

making it even stronger. The best skills take time to develop into a well-paid profession,

career or business. It¶s never too late to invest in yourself.

9. Treat the downsizing experience like a treasure hunt where getting your

next job is the prize.

Get out paper and pen or jump on your laptop and begin creating a plan for yourself.

Identify where you are. What resources and skills you have. Who you know who can help ± consider doing anything you can do keep yourself motivated until you land the next job.

Turn it into a game.



10. Get some coaching and counseling.

Many firms who are downsizing provide outplacement counseling and resources. Take

full advantage of this benefit.

2. Outsourcing ± contracting outside the organization to have work done that

formerly was done by internal employees.

Some of the most common outsourcing are:

� Services of accounting firms

� Advertising firms

� Law firms

� Maintenance such as, security, catering, and payroll

Employee Leasing ± Process of dismissing employees who are then hired by a leasing company

(which handles all HR related activities) and contracting with that company to lease back the

employees.

Impact on HR: 93% of all HR depts. reported outsourcing some of their work

� Increasing morale ± especially if you know your work is only temporarily

� Increasing productivity level

� Managing contracting companies

� Legal issues with temporary workers

Outsourcing Challenges

The idea of importing manpower and services from other countries has been around since theadvent of international trade. However, the essence of outsourcing as known today allows the

global workforce to be connected in many more ways. However, there are some outsourcing

barriers that we have to confront before we can regard it as suitable to our business.

The payoffs of outsourcing are opposed by some hindrances. An important consideration is the



economic and political condition of the state. Third world countries have a high chance to have

unstable governments. Furthermore, the economic policies of these nations can switch from one

political cycle to the next. Thus, there is a level of uncertainty that increases the risk for

businesses who want to invest in outsourcing.

One more considerable obstacle is the language gap. Because of this challenge, not many nations

are eligible for outsourcing. Developing nations that are well-versed in English like the

Philippines and India are perfect candidates. Companies should look for subcontractors that

totally complies with the skill-set that they require.

One more outsourcing barrier is a nation's current infrastructure. This involves the legal system,

banking system infrastructure, and the telecommunications infrastructure that coordinates

everything. Without a highly-developed infrastructure, the cost of subcontracting and the risks

that are part of this kind of investment can be larger than predicted.

Once all the macro-challenges are considered, businesses will need to deal with other

outsourcing challenges like cultural gaps, ability to integrate operations, training, and knowledge

transfer. Operating with outsource partners requires companies to coordinate their local operation

to conform with them.

Aside from all of these, there are also active challenges that requires consideration. Among these

are security risks, human resource management, time-zone, management challenges, and many

more.

Outsourcing is not for all. There are specific situations when outsourcing challenges outweigh

the advantages. At the end of the day, you have to decide whether outsourcing is good for you or

not.



Top 7 Outsourcing Advantages

1. Focus On Core Activities

In rapid growth periods, the back-office operations of a company will expand also. This

expansion may start to consume resources (human and financial) at the expense of the core

activities that have made your company successful. Outsourcing those activities will allow

refocusing on those business activities that are important without sacrificing quality or service in

the back-office.

Example: A company lands a large contract that will significantly increase the volume of

purchasing in a very short period of time; Outsource purchasing.

2. Cost And

E

fficiency Savings Back-office functions that are complicated in nature, but the size of your company is preventing

you from performing it at a consistent and reasonable cost, is another advantage of outsourcing.

Example: A small doctor's office that wants to accept a variety of insurance plans. One part-time

person could not keep up with all the different providers and rules. Outsource to a firm

specializing in medical billing.

3. Reduced Overhead

Overhead costs of performing a particular back-office function are extremely high. Consider

outsourcing those functions which can be moved easily.

Example: Growth has resulted in an increased need for office space. The current location is very

expensive and there is no room to expand. Outsource some simple operations in order to reduce

the need for office space. For example, outbound telemarketing or data entry.



4. Operational Control

Operations whose costs are running out of control must be considered for outsourcing.

Departments that may have evolved over time into uncontrolled and poorly managed areas are

prime motivators for outsourcing. In addition, an outsourcing company can bring better

management skills to your company than what would otherwise be available.

Example: An information technology department that has too many projects, not enough people

and a budget that far exceeds their contribution to the organization. A contracted outsourcing

agreement will force management to prioritize their requests and bring control back to that area.

5. Staffing Flexibility

Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional

resources when you need them and release them when you're done.

Example: An accounting department that is short-handed during tax season and auditing periods.

Outsourcing these functions can provide the additional resources for a fixed period of time at a

consistent cost.

6. Continuity & Risk Management

Periods of high employee turnover will add uncertainty and inconsistency to the operations.

Outsourcing will provided a level of continuity to the company while reducing the risk that a

substandard level of operation would bring to the company.

Example: The human resource manager is on an extended medical leave and the two

administrative assistants leave for new jobs in a very short period of time. Outsourcing the

human resource function would reduce the risk and allow the company to keep operating.

7. Develop Internal Staff

A large project needs to be undertaken that requires skills that your staff does not possess. On-

site outsourcing of the project will bring people with the skills you need into your company.

Your people can work alongside of them to acquire the new skill set.

Example: A company needs to embark on a replacement/upgrade project on a variety of custom

built equipment. Your engineers do not have the skills required to design new and upgraded



equipment. Outsourcing this project and requiring the outsourced engineers to work on-site will

allow your engineers to acquire a new skill set.

Productivity Enhancement ±

Productivity can be defined as the ³output gained from a fixed amount of inputs,´ organizations

can increase productivity either by reducing the imports (the cost approach) or by increasing the

amount that

employees produce.

Two view points:

V iew Point #1 ± managers may cut costs only to find that productivity falls at even

at ore rapid rate ± WHY?????????

V iew Point #2 -Mangers may find that increasing investment in employees

(raising labor costs) may lead to even greater returns in enhanced productivity. ?

Fact: The US is the world¶s most productive nation. However, other can catch-up

How to Increase Productivity?

Employee productivity is the result of a combination of employee abilities, motivation, and work

environment.

When productivity falls off ± or more positively, when productivity improves ±the changes is

usually traceable to , motivation, and work environment



As per the role of HR, to fulfill the challenges of Productivity Enhancement,

we need to work on Motivation and Work Environment.

Motivation:

Motivation is what makes people tick: the needs, desires, fear, and aspirations within that makes

you do what you do. It is the why in human behavior.

Motivation comes from within, You cannot motivate people to do good work, but by getting to

know your employees you can activate their own motivations.

Motivational techniques

Leads them

Real examples are quicker than advice

Way to influencing people

Appeal to benefits

Can motivate

Mutual benefits to both of you

Appeal to emotions

People act quickly to emotions

Positive manner

Sustained by repeated inputs

Appeal to needs & wants

basic needs satisfaction

Creative expression, recognition & challenges & love

Appeal to expertise

Abilities enhance his self-worth

Put best effort to seek approval



Top Ten Motivators

1. Thanks personally, timely, often & sincerely

2. Take time to meet and listen to staff

3. Provide feedback

4. Encourage new ideas and initiative

5. Explain how employee fits into organization¶s plans

6. Involve employees in decisions

7. Provide ownership in their work

8. Recognize, reward, and promote based on performance

9. Give chance to learn new skills

10. Celebrate successes!!!!

MOTIVATION FACTORS

Achievement

Value and Appreciation

Growth and advancement

Responsible autonomy

Interesting Job

Encouragement to do better

Company, proud to work

Team, proud to be part

Recognition

Reward Passion to do innovation



Healthy Work

Environments

Work environment- the combination of physical and cultural conditions under which particular

tasks are performed to achieve an organizational goal.

Skilled communication

True collaboration

Effective decision making

Appropriate staffing

Meaningful recognition

Authentic leadership

We have all worked at places that we were less than

excited to get up in the mornings and go to; this is an awful

feeling. It is much more pleasurable, and less stressful to

go to a work environment that is filled with positivity and

enjoyment. A positive work environment is not only

important for our physical, mental and emotional health,

but is also important for the results that we produce for the company. The better we feel at work,

the more likely we will take pride in our job activities and be loyal towards our place of

employment.



Developing a Positive Environment

Honesty

Honesty Be straightforward and up front in all dealings with employees. Managers must be

truthful in everything they say and do. Avoid double standards.

Morale

Morale is the emotional condition (such as enthusiasm, confidence, and loyalty) of a team with

regard to the task at hand. It is critical to develop an environment where the morale is high and

the team can work effectively.

Maintaining high morale is something the manager will have to work on constantly. One way of

keeping morale high is to let employees know their contribution to the team is significant in

meeting the department¶s objectives.

Recognition

The timely recognition of individual achievements is critical in the development of an effective

work environment. As manager, you want to set the parameters, communicate them to your

employees, and ensure the employees understand them. Always consider recognition for the

individual, even if you have a team project.



Summary of Challenges

The study is designed to assess the organizational and human resource challenges faced by

human resource manager. Its objectives are to: specify the organizational and human resources

challenges faced by HRM in fulfilling the roles envisaged in government and local policy;

examine how HRM are addressing these challenges, in particular, to describe the organizational

forms they have adopted, and the OD/HR strategies and initiatives they have planned or in place;

assess how effective these structures, strategies and initiatives have been in enabling the HRM to

meet the organizational and human resources challenges they face; identify the factors, both

internal to the HRM and in the wider health community, which have contributed to the success

or failure of different structures, strategies and initiatives.



Recommendation

The study is designed to assess the organizational and human resource challenges faced by

human resource manager. Its objectives are to: specify the organizational and human resources

challenges faced by HRM in fulfilling the roles envisaged in government and local policy;

examine how HRM are addressing these challenges, in particular, to describe the organizational

forms they have adopted, and the HR strategies and initiatives they have planned or in place;

assess how effective these structures, strategies and initiatives have been in enabling the HRM to

meet the organizational and human resources challenges they face; identify the factors, both

internal to the HRM and in the wider health community, which have contributed to the success

or failure of different structures, strategies and initiatives.

In this final stage of the study, the information gained from Stages 1 and 2 and the feedback from

the reference group will be analyzed. The analysis will focus on three levels:

. Practical lessons for HRMs - in particular the key organizational and human resources issues

which HRMs (particularly newly formed HRMs) need to address; the approaches which have

worked well for them; the factors which appear to be important in the success or failure of

initiatives; and examples of good HR in HRMs.

. Key messages for policy makers - in particular the policy issues which encourage or obstruct

good HR practice in HRMs, and the support or guidance which would assist newly formed

HRMs or PCGs in their preparatory and early stages.

. Intellectual contributions to the theory of HR and e.g., concerning leadership, motivation and

incentives, learning, partnership working and HRM in networks.

To ensure the quality and focus of the research, a local advisory group will be established. Thegroup will meet at key points during the research and will include a HRM Chief Executive, a

HRM Chair (or Board Member), and three other members with academic experience in the field

of organizational development and primary care. In addition a wider Reference Group will be set

up comprising around 20 people who are opinion leaders in HRM and who would help spread

the ideas and innovations discovered by the research via formal and informal networks.



During the research the case study HRMs and the wider Reference Group will have a number of

opportunities to exchange ideas and good practice. Summaries of emergent themes from each

phase of the research will be produced as working papers for dissemination to appropriate

audiences. Formative and summative findings will also be disseminated through articles in

professional journals and the popular health service press, and opportunities to present findings

to relevant conferences and workshops will be pursued.

The foregoing methodological framework is intended to be flexible. The policy context within

which the study will be conducted is likely to alter during the course of the study, and qualitative

organizational research is itself a dynamic enterprise. Thus, the precise methods and procedures

will be chosen in response to the preliminary findings of each phase of the research.



Bibliography:

Internet search:

1. Explorehr.com

2. Citehr.com

3. Hrmasia.com

4. Hrmusa.com

5. Organizationhrm.com

6. Authorstrem.com

7. Sucrib.com

8. Bmc.co.in

9. Unpan1.un.org

10. Wfpma.com

11. Zeromillion.com

/

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