ISSUES IN

HRM

By- Somesh, Swapnil, abha, kratibha & kiran,Jay

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.OUTSOURCINGBPO & 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.

oCall 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!!