DR. D. Y. PATIL DEPARTMENT OF BUSINESS MANAGEMENT

A project report on

HRD Strategies for Long Term Planning and Growth

& Productivity and HRM

Submitted To:Prof. Sapna Suri

Submitted By:Group No.10

MBA- IInd SEM (CORE)Class - 4B

Date: 27/04/09

Group Members

Sr. No.

Name Roll No.

1 Shrikant Shinde 142

2 Shubhangi Chavan 143

3 Shweta Mahulkar 144

4 Shyam Mishra 145

5 Shyam Chettiar 146

6 Siddharth Agarwal 147

7 Siddharth Shiva 148

8 Siddharth Singh 149

INDEX

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SR.

NO. TOPICS

PAGE

NO.

COVERED

BY:

1. Introduction to HRM Strategy 4

Siddharth Shiva

( Roll No. 148)2. Importance and Benefits of Strategic

Mnagement5

3. Role of HRM in Strategic Management 5

4. Human Resource Development (HRD) 6

Siddharth Singh

(Roll No. 149)

5. Proactive HRD Strategies for Long Term Planning & Growth

7

6. Process of HRD Strategic Planning for Long Term Planning & Growth

8

7. Policies concerning HRD Strategies for Long Term Planning & Growth

9 Siddharth Agarwal

(Roll No. 147)

8. Productivity and HRM- Introduction 13 Shyam Mishra

(Roll No. 145)9. TQM 13

10. Benchmarking 18 Shrikant Shinde

(Roll No. 142)

11. Re-engineering Work Processes 21 Shweta Mahulkar

(Roll No. 144)12. Flexible Manufacturing System (FMS) 22

13. Six Sigma 25 Shubhangi Chavan

(Roll No. 143)14. Economic Challenges 31

15. Work-force Diversity 31

Shyam Chettiar

(Roll No. 146)

16. Conclusion 33

17. Case Study 34

18. Bibliography 35

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INTRODUCTION

Human Resource Management Strategy:

“Strategy is a way of doing something. It includes the formulation of goals and setting of action plans for accomplishment of that goal.”

Strategic Management:

“A Process of formulating, implementing and evaluating business strategies to achieve organizational objectives is called Strategic Management”

Definition of Strategic Management:

“Strategic Management is that set of managerial decisions and actions that determine the long-term performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation, evaluation and control.”

The study of strategic management therefore emphasizes monitoring and evaluating environmental opportunities and threats in the light of a corporation’s strengths and weaknesses.

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IMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT:

1. Allows identification, prioritization and exploration of opportunities.

2. Provides an objective view of management problems. 3. Represents framework for improved co-ordination and control.

4. Minimizes the effects of adverse conditions and changes.

5. Allows major decisions to better support established objectives.

6. Allows more effective allocation of time and resources.

7. Avoids ad hoc decisions.

8. Helps to integrate the individual behaviors. 9. Encourages forward thinking.

10. Encourages favorable attitude towards change.

ROLE OF HRM IN STRATEGIC MANAGEMENT:

Role in Strategy Formulation: HRM is in a unique position to supply competitive intelligence that may be useful in strategy formulation. Details regarding advanced incentive plans used by competitors, opinion survey data from employees, elicit information about customer complaints,

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information about pending legislation etc. can be provided by HRM. Unique HR capabilities serve as a driving force in strategy formulation. Role in Strategy Implementation: HR Manager helps strategy implementation by supplying competent people. Additionally, HRM facilitates strategy implementation by encouraging proactive thinking, communicating goals and improving productivity and quality.

HUMAN RESOURCE DEVELOPMENT (HRD)

Human Resource Development is a process to help people to acquire competencies and to increase their knowledge, skills and capabilities for better performance and higher productivity.

Definition 1:

HRD is a process of enhancing the physical, mental and emotional capacities of individuals for productive work.

Definition 2:

HRD means to bring about the possibility of performance improvement and individual growth.

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PROACTIVE HRD STRATEGIES FOR LONG TERM PLANNING AND GROWTH

Employee retention has become bigger challenge than employee hiring today. With trade unions breathing their last, and easy job availability, employees have developed propensity to switch jobs for minor reasons without voicing their protest. Thus, HRD has to take a proactive approach, that is, to seek preventive care in human relations. By using HRD strategies, maximization of efficiency and productivity could be achieved through qualitative growth of people. Long-term growth can also be planned by creating highly inspired groups of employees with high aspirations to diversify around core competencies and to build new organizational responses for coping with change.

A proactive HRD strategy can implement plans directed at improving personal competence and productive potentials of human resources.

Following strategic choices can be considered which would help today’s organizations to survive and grow.

Change Management: Manage change properly and become an effective change agent rather than being a victim of change itself.

Values: Adopt proactive HRD measures, which encourage values of trust, autonomy, proactive approach and experimentation.

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Maximize Productivity and Efficiency: Maximize productivity and efficiency of the organization by helping qualitative growth of people.

Process of HRD Strategic Planning for Long Term Growth:

A strategic human resource planning helps the organization in achieving its overall objectives. This approach involves creating and managing functions like staffing and services, based on the strategic goals, eliminating any hurdles in the process. The process to be followed is explained in brief:

Understand the specific business objectives and their priorities, based on the overall strategic objectives.

Understand the internal and external factors that might hinder objective achievement as the organizational policies and procedures need to be changed accordingly.

Determine the responsibility and accountability for each objective. Also identify the internal customer.

Identify the alternatives for achieving the business objectives.

Translate these business objectives into specific human resources policies and programs.

Determine the resources required to achieve these business objectives.

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Analyze the impact on HR policies and programs, if each business objective is not achieved.

Assess each objective in terms of money and time required.

Identify where efficiencies can be achieved.

Determine the staffing requirements to meet the business objectives, including the level and timing of staffing; employee competencies; the surplus and demands.

Policies concerning HRD strategies for long term planning and growth:

The major considerations in personnel policies concerning HRD strategies for long term planning and growth in organization are:

Recruitment of right personnel:

Well-qualified and they must match with the respective corporate values and philosophy of the Companies. For example: In Reliance Industries- entrepreneurship, risk taking & the will to win- personal contacts is considered while recruiting for top positions; In Hindustan Lever- the policy is to have promotions from within – they emphasize on professionalism, convent-educated and sharp dressed candidates, toppers from all IIMs and IIT'S; In Infosys Technologies- The criteria is to select candidates from middle class communities– people brought up in traditional, conservative homes but who have superior academic records, technical skills and ingrained capacity for hard work. Written Tests are conducted to identify individuals

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with high learn-ability, both in terms of willingness. They tend to eliminate over ambitions & competitive stars through the interviewing process.

Development of Personnel:

The Policy Issues involved are:Determination of Training methods to be followed – on the job/off the job.Intensity of Training – Level of employees, Frequency, resource persons, specific training (job).

Operational Managerial Conceptual Analytical Skill Skill

Training will be imparted through company's own training centers or Training Institutes.

Motivation System:

Factors:

1. Adequate Motivation.

2. Analysis of motives.

3. Simplicity.

4. Uneven Motivation is given to encourage intelligent,

ambitious & efficient personnel.

5. Incentive system could be either a) Monetary and/or b) Non-

monetary.

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Retaining Personnel:

Coercive Policies like entering into an agreement.

Package for Long-term stay includes promotional avenues,

increasing financial incentives over the period of time, deferred

payment of financial benefit in the long-run, superannuating

allowance or long-term stay bonus(where benefits maybe

forfeited if the employee leaves prematurely.

ESOS( Employee Stock Option Scheme).

ESPS ( Employee Stock Purchase Scheme).

Persuasion – by CEO or top executives.

Personnel Mobility

Moving the personnel within the organization or outside--- in the form of promotion, demotion, transfer, separation & deputation. Organizations have to provide a policy framework for this.

1. Objectives:

Right person at right job.

Motivation for promotions through good performance.

2. Another issue is Separation- VRS/CRS.

3. Deputation on new project in the same company.

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Industrial Relations:

1. Objectives

Safeguard interests of workers & management through mutual

understanding.

Avoid industrial conflicts & strikes.

To raise productivity to a level which satisfies both workers &

management.

To overcome resistance to change- particularly those aspects

which directly affect workers like change in technology.

2. Methods of building good industrial relations

Participation of workers.

Negotiations in decision-making.

Formulation of grievance handling procedures.

Management's concern for worker's welfare.

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Productivity & HRM

HRM Trends in a Dynamic environment – An HR manager has to balance the demands & expectations of external environment with the internal needs and achieve the assigned tasks in an efficient way.

The issues involved in extracting/enhancing Human Productivity

are:

Internal Factors External Factors

Mission, Policies Technological Factors

Organizational Culture Economic

Organizational Structure Political

HR Systems Social

Local & Governmental Issues

Unions

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Employer's Demands

Workforce Diversity

1. TQM:

Total Quality Management is an approach to the art of management that originated in Japanese industry in the 1950's and has become steadily more popular in the West since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that aims to provide, and continue to provide, its customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with things being done right first time, and defects and waste eradicated from operations.

Many companies have difficulties in implementing TQM. Surveys by consulting firms have found that only 20-36% of companies that have undertaken TQM have achieved either significant or even tangible improvements in quality, productivity, competitiveness or financial return. As a result many people are skeptical about TQM. However, when you look at successful companies you find a much higher percentage of successful TQM implementation.

Important aspects of TQM include customer-driven quality, top management leadership and commitment, continuous improvement, fast response, actions based on facts, employee participation, and a TQM culture.

Customer-driven quality:

TQM has a customer-first orientation. The customer, not internal activities and constraints, comes first. Customer satisfaction is seen as the company's highest priority. The company believes it will only be successful if customers are satisfied. The TQM company is sensitive to customer requirements and responds rapidly to them. In the TQM context, `being sensitive to customer requirements' goes beyond defect and error reduction,

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and merely meeting specifications or reducing customer complaints. The concept of requirements is expanded to take in not only product and service attributes that meet basic requirements, but also those that enhance and differentiate them for competitive advantage.

Each part of the company is involved in Total Quality, operating as a customer to some functions and as a supplier to others. The Engineering Department is a supplier to downstream functions such as Manufacturing and Field Service, and has to treat these internal customers with the same sensitivity and responsiveness as it would external customers.

TQM leadership from top management:

TQM is a way of life for a company. It has to be introduced and led by top management. This is a key point. Attempts to implement TQM often fail because top management doesn't lead and get committed - instead it delegates and pays lip service. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company, and in creating and deploying well defined systems, methods and performance measures for achieving those goals. These systems and methods guide all quality activities and encourage participation by all employees. The development and use of performance indicators is linked, directly or indirectly, to customer requirements and satisfaction, and to management and employee remuneration.

Continuous improvement:

Continuous improvement of all operations and activities is at the heart of TQM. Once it is recognized that customer satisfaction can only be obtained by providing a high-quality product, continuous improvement of the

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quality of the product is seen as the only way to maintain a high level of customer satisfaction. As well as recognizing the link between product quality and customer satisfaction, TQM also recognizes that product quality is the result of process quality. As a result, there is a focus on continuous improvement of the company's processes. This will lead to an improvement in process quality. In turn this will lead to an improvement in product quality, and to an increase in customer satisfaction. Improvement cycles are encouraged for all the company's activities such as product development, use of EDM/PDM, and the way customer relationships are managed. This implies that all activities include measurement and monitoring of cycle time and responsiveness as a basis for seeking opportunities for improvement.

Elimination of waste is a major component of the continuous improvement approach. There is also a strong emphasis on prevention rather than detection, and an emphasis on quality at the design stage. The customer-driven approach helps to prevent errors and achieve defect-free production. When problems do occur within the product development process, they are generally discovered and resolved before they can get to the next internal customer.

Fast response:

To achieve customer satisfaction, the company has to respond rapidly to customer needs. This implies short product and service introduction cycles. These can be achieved with customer-driven and process-oriented product development because the resulting simplicity and efficiency greatly reduce the time involved. Simplicity is gained through concurrent product and process development. Efficiencies are realized from the elimination of non-value-adding effort such as re-design. The result is a dramatic improvement in the elapsed time from product concept to first shipment.

Actions based on facts:

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The statistical analysis of engineering and manufacturing facts is an important part of TQM. Facts and analysis provide the basis for planning, review and performance tracking, improvement of operations, and comparison of performance with competitors. The TQM approach is based on the use of objective data, and provides a rational rather than an emotional basis for decision making. The statistical approach to process management in both engineering and manufacturing recognizes that most problems are system-related, and are not caused by particular employees. In practice, data is collected and put in the hands of the people who are in the best position to analyze it and then take the appropriate action to reduce costs and prevent non-conformance. Usually these people are not managers but workers in the process. If the right information is not available, then the analysis, whether it be of shop floor data, or engineering test results, can't take place, errors can't be identified, and so errors can't be corrected.

Employee participation:

A successful TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities. Such participation is reinforced by reward and recognition systems which emphasize the achievement of quality objectives. On-going education and training of all employees supports the drive for quality. Employees are encouraged to take more responsibility, communicate more effectively, act creatively, and innovate. As people behave the way they are measured and remunerated, TQM links remuneration to customer satisfaction metrics.

A TQM culture:

It's not easy to introduce TQM. An open, cooperative culture has to be created by management. Employees have to be made to feel that they are responsible for customer satisfaction. They are not going to feel this if they are excluded from the development of visions, strategies, and plans. It's important they participate in these activities. They are unlikely to behave in a

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responsible way if they see management behaving irresponsibly - saying one thing and doing the opposite.

Product development in a TQM environment:

Product development in a TQM environment is very different to product development in a non-TQM environment. Without a TQM approach, product development is usually carried on in a confliction atmosphere where each department acts independently. Short-term results drive behavior so scrap, changes, work-around, waste, and rework are normal practice. Management focuses on supervising individuals, and fire-fighting is necessary and rewarded.

Product development in a TQM environment is customer-driven and focused on quality. Teams are process-oriented, and interact with their internal customers to deliver the required results. Management's focus is on controlling the overall process, and rewarding teamwork.

Summary:

Doing it right 1st time

Customer centric- Philips, TELCO, BHEL, Pidilite

Continuous Improvement a way of life

Build Team work & Empowerment

***Race without finishing line (TQM is a never-ending activity)

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2. Benchmarking

Benchmarking (also "best practice benchmarking" or "process benchmarking") is a process used in management and particularly strategic management, in which organizations evaluate various aspects of their processes in relation to best practice, usually within their own sector. This then allows organizations to develop plans on how to adopt such best practice, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to challenge their practices.

A process similar to benchmarking is also used in technical product testing and in land surveying.

Advantages of benchmarking:

Benchmarking is a powerful management tool because it overcomes "paradigm blindness." Paradigm Blindness can be summed up as the mode of thinking, "The way we do it is the best because this is the way we've always done it." Benchmarking opens organizations to new methods, ideas and tools to improve their effectiveness. It helps crack through resistance to change by demonstrating other methods of solving problems than the one currently employed, and demonstrating that they work, because they are being used by others.

Types of Benchmarking:

Competitive benchmarking

Some authors call benchmarking "best practices benchmarking" or "process benchmarking". This is to distinguish it from what they call "competitive benchmarking". Competitive benchmarking is used in competitor analysis. When researching your direct competitors you also research the best company in the industry (even if it serves a different location).

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Collaborative benchmarking

Benchmarking, originally invented as a formal process by Rank Xerox, is usually carried out by individual companies. Sometimes it may be carried out collaboratively by groups of companies (eg subsidiaries of a multinational in different countries). One example is that of the Dutch municipally-owned water supply companies, which have carried out a voluntary collaborative benchmarking process since 1997 through their industry association.

Procedure:

Identify your problem areas - Because benchmarking can be applied to any business process or function, a range of research techniques may be required. They include: informal conversations with customers, employees, or suppliers; exploratory research techniques such as focus groups; or in-depth marketing research, quantitative research, surveys, questionnaires, reengineering analysis, process mapping, quality control variance reports, or financial ratio analysis.

Identify organizations that are leaders in these areas - Look for the very best in any industry and in any country. Consult customers, suppliers, financial analysts, trade associations, and magazines to determine which companies are worthy of study.

Survey companies for measures and practices - Companies target specific business processes using detailed surveys of measures and practices used to identify business process alternatives and leading companies. Surveys are typically masked to protect confidential data by neutral associations and consultants.

Visit the "best practice" companies to identify leading edge practices - Companies typically agree to mutually exchange information beneficial

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to all parties in a benchmarking group and share the results within the group.

Implement new and improved business practices - Take the leading edge practices and develop implementation plans which include identification of specific opportunities, funding the project and selling the ideas to the organization for the purpose of gaining demonstrated value from the process.

Summary :

Competitive benchmarking is the first requirement to effective TQMStriving to be the best of the best in one's area of operations. It aims at continuous improvements.Complacency may be suicidal.It is a measurement of gaps between the practices of two companies so

as to uncover significant differences.It can be applied to products, services, practices, processes and

methods.Therefore, Benchmarking is a systematic investigation, a fruitful

learning experience which ensures that the best of industry practices are uncovered, analyzed, adopted and implemented.

The objective of benchmarking is to meet rising expectations of customers in their respective areas.

3. Re-engineering Work Processes

When organizations require a drastic, quantum change in order to survive a fiercely competitive market, the managers have to search for solutions elsewhere, beyond TQM and Benchmarking.

Re-engineering takes place when more than 70% of the work processes in the organization are evaluated & altered. It demands

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organizational members to rethink what work shall be done, how it should be done, and how best to implement these decisions. The focus is on simplifying the operations and making them more efficient and more customers focused.

Re-engineering TQM

Looks for quantum leaps in

performance

Seeks incremental

improvements

Driven by top management

when it is complete , work place

is self-managed

Relies on bottom-up

participative decision-making in

both planning & execution of

TQM programme.

There is a risk that the employee

may continue to be with the

organization or not.

There is no immediate & sudden

risk to the employee.

Key elements:

“Start with a clean piece of paper” (Start afresh & encourage brainstorming)

Identify distinctive competencies. Assess core processes. Reorganize around Horizontal Processes.

e.g. TISCO, TELCO, L&T, Ranbaxy & Crompton Greeves.

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Commandments of Re-engineering

Give people a mission, a clear view of how to achieve that mission. Either serve the customer superbly or don't even try. Change the way of life. It is not a process. It is a value. Technology is never really a problem, but the problem is how to use

technology effectively. The wrong answer rarely kills you. What it does is waste of time. The weak link in engineering is Willingness. Once people catch on to Re-engineering, you cannot hold them back. It

is a lifetime opportunity.

4. Flexible Manufacturing System:

A flexible manufacturing system (FMS) is a manufacturing system in which there is some amount of flexibility which allows the system to react in the case of changes, whether predicted or unpredicted. This flexibility is generally considered to fall into two categories, within which are numerous other subcategories.

The first category, machine flexibility, covers the system's ability to be changed to produce new product types, and ability to change the order of operations executed on a part.

The second category of flexibility within an FMS is called routing flexibility, which consists of the ability to use multiple machines to perform the same operation on a part, as well as the system's ability to absorb large-scale changes, such as in volume, capacity, or capability.

The whole FMS is commonly controlled by a central computer. The main advantages of a FMS are its high flexibility in managing manufacturing recourses like time and effort in order to manufacture a new product.

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The best application of a FMS is found in production of small sets of products that are likely but not equal that those from a mass production, otherwise production cost of small sets of products will cost a lot in relation with mass production cost.

Advantages and disadvantages of FMSs implementation:

Advantages: Faster, lower- cost changes from one part to another which will improve

capital utilization Lower direct labor cost, due to the reduction in number of workers Reduced inventory, due to the planning and programming precision Consistent and better quality, due to the automated control Lower cost/unit of output, due to the greater productivity using the same

number of workers Savings from the indirect labor, from reduced errors, rework, repairs and

rejects

Disadvantages: Limited ability to adapt to changes in product or product mix (ex.

machines are of limited capacity and the tooling necessary for products, even of the same family, is not always feasible in a given FMS)

Substantial pre-planning activity Expensive, costing millions of dollars Technological problems of exact component positioning and precise

timing necessary to process a component

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Summary:

It is the ability of computerized machines to perform a variety of programmed functions. It is the integration of computer-aided design, engineering & manufacturing to produce low volume products at mass production costs.

FMS requires fewer employees, but employees with more training and higher skills.

Each one is required to do a greater variety of task.

They are supposed to keep away from inter-departmental competition, conflict & politics & get along with other members as teammates.

Cross-functional Team Work is required in factories, where engineers have to design products by working hand-in-hand with market research & manufacturing specialists.

Use of robots and less people.

4. Six Sigma:

Chances are you've heard of Six Sigma, perhaps in connection with General Electric, the company that made it popular in the 1990s. You may even know that Six Sigma uses statistical techniques to improve processes in both manufacturing and service industries. But did you know there is an important role for Human Resources (HR) in this sophisticated process improvement approach? Or those Six Sigma initiatives are unlikely to succeed without HR's help?

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HR professionals with the right skills can contribute to a Six Sigma initiative at both strategic and tactical levels. This article describes the areas in which HR should play a role in Six Sigma and discusses how HR professionals can increase their chances of being included in Six Sigma decision-making and implementation.

To appreciate the important role HR has in Six Sigma, it is important to begin this discussion by having an understanding of what Six Sigma is, all the roles played by others in a Six Sigma implementation, and the factors critical to a successful implementation.

Six Sigma Defined:

The term "Six Sigma" is widely used to refer to all of the following:

A structured method for improving business processes. This method, called DMAIC (define, measure, analyze, improve, and control), is supported by an assortment of statistical tools.

A statistical measurement of how well a business process is performing. A process that performs at "Six Sigma" produces only 3.4 defects out of every million opportunities to produce a defect. Processes that perform at lower sigma levels (such as one sigma or four sigma) produce more defects per million opportunities. It is possible for a process to perform at an even higher level (and thus have even fewer defects), but Six Sigma has become popular as the standard for excellent process performance.

An organizational mindset in which people make decisions based on data, look for root causes of problems, define defects based on customer rather than internal requirements, seek to control variation, track leading indicators of problems to prevent them from happening, etc.

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Six Sigma Roles:

Six Sigma has a martial arts convention for naming many of its professional roles. The chart below describes how these roles are typically defined.

Six Sigma Roles And Responsibilities:

 SponsorSenior executive who sponsors the overall Six Sigma Initiative.

 LeaderSenior-level executive who is responsible for implementing Six Sigma within the business.

 Champion

Middle- or senior-level executive who sponsors a specific Six Sigma project, ensuring that resources are available and cross-functional issues are resolved.

 Black Belt

Full-time professional who acts as a team leader on Six Sigma projects. Typically has four to five weeks of classroom training in methods, statistical tools, and (sometimes) team skills.

 Master Black Belt

Highly experienced and successful Black Belt who has managed several projects and is an expert in Six Sigma methods/tools. Responsible for coaching/mentoring/training Black Belts and for helping the Six Sigma leader and Champions keep the initiative on track.

 Green Belt

Part-time professional who participates on a Black Belt project team or leads smaller projects. Typically has two weeks of classroom training in methods and basic statistical tools.

 Team MemberProfessional who has general awareness of Six Sigma (through no formal training) and who brings

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relevant experience or expertise to a particular project.

 Process OwnerProfessional responsible for the business process that is the target of a Six Sigma project.

HR's Role in Six Sigma:

As with any major organizational initiative, many factors contribute to success. Some of these factors will fall within HR's area of responsibility, such as those discussed below.

Black Belt Selection and Retention

Having the right people in the Black Belt role is critical to the success of a Six Sigma initiative. The training investment is substantial for this pivotal role. Further, Black Belts are the visible "face" of Six Sigma. They help shape the organization's impression of Six Sigma, and, consequently, the willingness of many to embrace the initiative. Therefore, you want to pick Black Belts very carefully. (Some organizations only select Black Belts from among those who have already been identified as "high potentials.").

HR professionals can help the Six Sigma Leader find the right people for Black Belt roles and ensure they remain in those positions for the typical two-year rotation. Potential HR contributions in this area include:

Building a competency model that will help identify candidates with the right mix of technical, team, and leadership skills and abilities.

Creating job descriptions that help candidates fully understand the position and expectations prior to signing on.

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Developing a retention strategy that will help ensure Black Belts complete their rotation and the organization recoups its investment in training and development.

Rewards and Recognition

Rewarding and recognizing Black Belts and Six Sigma teams is more complex than it may appear. Black Belts join the Six Sigma initiative from various places in the organization where they are likely to have been at different job levels with differing compensation arrangements. Determining whether and how to make appropriate adjustments in level and compensation now that all these individuals are in the same role is both tricky and critical.

Similar complexities are involved at the project team level. Six Sigma projects led by Black Belts typically result in savings in the hundreds of thousands of dollars. Deciding how the team should be rewarded and recognized and who should get credit for what is not easy. Yet ignoring these issues can result in resentment, reluctance to work on Six Sigma projects, and the potential failure of the overall initiative.

HR professionals can help the Six Sigma Leader tackle the challenge of establishing the right rewards/recognition. Potential HR contributions in this area include:

Analyzing existing compensation arrangements to identify the extent to which those arrangements will support the Six Sigma initiative.

Creating a strategic compensation plan that will better support Six Sigma.

Developing a non-monetary reward program for Six Sigma teams. Project Team Effectiveness.

The work of Six Sigma is done mostly at the project team level by a Black Belt leading a small team through the steps of the DMAIC method. If the team itself does not function well or does not interact effectively with

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others in the organization that ultimately have to support and carry out the process changes, the project probably will not be successful. Given the typical project's potential payback, failure can be expensive.

HR professionals can help the project teams work together more effectively. Potential HR contributions in this area include:

Ensuring team leaders and members get training and/or coaching in teamwork, conflict management, communications, dealing with difficult team members, and other team effectiveness skills.

Providing teams with tools that allow them to diagnose their own performance and identify when and where they need help.

Acting as a resource for Black Belts who encounter team-related challenges they cannot surmount.

Creating a Six Sigma Culture

Many Sponsors, Champions, and Leaders look to Six Sigma as a way to change an organization's culture to one that is more data-driven, proactive, decisive, and customer-oriented. But they often have little idea about how to achieve successful culture change.

HR professionals can help executives approach culture change in a way that addresses the underlying business goals without creating organizational resistance. Potential HR contributions in this area include:

Working with Six Sigma Sponsors, Leaders, and Champions to identify elements of the culture that might hinder the achievement of Six Sigma goals. Advising on change plans that will target those specific cultural elements. Identifying how Six Sigma can be rolled out in a way that works with, rather than against, the current culture.

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Change Management and Communications

Introducing Six Sigma into an organization is a major change that will have a profound effect on a broad group of stakeholders. Managers and employees at many levels of the organization will be asked to engage in new behaviors. In many cases, those leading other initiatives will see Six Sigma as a source of competition for resources, executive attention, and organizational power. Others may see it as an indictment of their past performance. Many will be confused about how Six Sigma fits with the large number of other ongoing organizational initiatives.

HR professionals can help reduce the uncertainty and anxiety surrounding Six Sigma and increase the levels of acceptance and cooperation in the organization. Potential HR contributions in this area include:

Drafting a change management/ communications plan that addresses the people side of the Six Sigma rollout.

5. Economic Challenges:

External Environmental factors.

Globalization Political factors. Social factors: Unions. Local & Governmental factors: Legal through multi-cultural

organization (managing diversity).

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6. Work-force Diversity:

It implies the composition of employees in terms of diversity as regards age, gender, ethnicity, and education.

Organizations are becoming more heterogeneous in terms of age, gender, race, and ethnicity.

Young, skilled & knowledgeable workforce

Not fascinated by secure, less paying, routine & standard job (s) offered by Public Sector.

Private Enterprises offer good attraction.

Old employees are growing in number due to improved medical & health care---their expertise & experience; talent can be utilized to develop new ventures.

Attracting & retaining young brains is a challenge for HR managers.

So organization (s) need to institute appropriate HR policies, supported by attractive compensation offers. Diversity Issues in Indian companies are somewhat peculiar owing to differences in social ethos, religious origins, cultural differences & regional origins plus constitutional provisions give preferential treatment to certain sections of the society.

HR managers have to deal with issues of Child Labor, Women at Work, Specially-able people, etc.

Changes in Employee Roles & Values----emphasize on Quality of Life, Equity & Justice, and Pluralism & Diversity over uniformity & centralism, Participation over authority, Personal convictions over dogmas, and individual over organization.

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Level of Education & Awareness---change in attitudes---retaining these people (Knowledge Workers) challenged and satisfied demands more responsibility & autonomy on the part of the HR manager & organization.

Conclusion

Finally… every organization has some standard human resources policies and programs. Organization offer different programs based on their culture, size, and the competitive needs. The first step should be to start with a checklist of human resources programs and initiatives. Then, a little research helps in identifying the different methods followed by competitors and other players in the industry. These lists can guide a company through its human resources planning process.

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HRD strategy is a process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time and that these people are capable of performing their tasks effectively and efficiently. This helps the organization to achieve its overall objectives.

Human resource development planning and strategy is done at different levels- corporate, intermediate, and operations levels and also for short term activities. A proper human resource development strategy exercise should utilize the inputs of all the departments in the organization and enjoy the support of the top management. A human resource professional would be better equipped for human resource development strategy and productivity if he has a good understanding of the market dynamics, changes in the economy, organizational processes and technological developments. The process of Human Resources Development planning involves three key steps- assessing and making an inventory of the current human resources, forecasting the organization’s human resource needs and matching the demand and supply of human resources.

Case Study

Facts of the case

Chemtech India Limited- A Chemical Firm

Employees – 1500

Mainly in a Manufacturing Company

Little accent on marketing

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Change in the government policy resulted in increased

competition

There was need for aggressive marketing by the company

Company decided to recruit one sales executive

Mr.Aparojit Das is the VP-HRD and is responsible for

hiring interviews

Two candidates are short listed and they are from same

company

First candidate- Mr.Premsager – He is working with

Chemtech for last 5 years

Second candidate- Mr.Devejeet- He is working with the

same company for last one year.Solution Give promotion

to Mr. Premsagar from long term point of view and

Mr.Devejeet should be given proper increment in order to

keep him motivated.Bibliography Human Resource

Management and Personnel Management – Aswathappa.

Organizational Behaviour- Stephen Robbins.

Organisation Behaviour- Fred Luthans.

Human Resource Management- Irwin McGraw Hill, 6th

Ed., 2000.

Human Resource Management- Global Strategies for

Managing a Diverse Work force, Prentice Hall, 5th Ed.,

1995.

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www.wikipedia.org

www.hrresources.com

www.managementmentor.com

www.esinps.com

www.hrnext.com

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