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STRATEGIC HUMAN RESOURCE MANAGEMENT NOTES

STRATEGIC HUMAN RESOURCE MANAGEMENT COMPLETE NOTES Contents 1. INTRODUCTION TO STRATEGIC HRM 2. INVESTMENT PERSPECTIVES OF HR 3. MANAGING STRATEGIC ORGANIZATION 4. ESTABLISHING STRATEGIC PLANS 5. GLOBAL HRM

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UNIT - 1
INTRODUCTION
TO
STRATEGIC HRM
PROF. SYED BILAL IRFAN
INTRODUCTION
Human resource management is based on the statement that employees are
individuals with varying goals and needs. Practicing good human resource
management enables managers of an enterprise to express their goals with
specificity, increasing worker comprehension of goals and provide the
necessary resources to promote successfully accomplishment of said goals.
Before understanding what is strategic human resource management we need
to have a clear picture on few aspects –
 WHAT IS “STRATEGY”?
STRATEGY is a unified course of action to achieve the organizational goal.
 WHAT IS “STRATEGIC MANAGEMENT”?
The set of decisions and subsequent actions used to formulate and implement
strategies that will optimize the fit between the organization and its
environment in an effort to achieve organizational objectives.
– John & Richard
 WHAT IS “STRATEGIC HUMAN RESOURCE MANAGEMENT”?
STRATEGIC HUMAN RESOURCE MANAGEMENT can be defined as the linking
of human resources with strategic goals and objectives in order to improve
business performance and develop organizational culture that foster
innovation, flexibility and competitive advantage.
Strategic Human Resource Management is the practice of attracting,
developing, rewarding, and retaining employees for the benefit of both the
employees as individuals and the organization as a whole.
HR departments that practice strategic human resource management do not
work independently within a silo; they interact with other departments within
an organization in order to understand their goals and then create strategies
that align with those objectives, as well as those of the organization.
Strategic human resource management can be defined as the linking of human
resources with strategic goals and objectives in order to improve business
performance and develop organizational culture that foster innovation,
flexibility and competitive advantage. In an organization SHRM means
accepting and involving the HR function as a strategic partner in the
formulation and implementation of the company’s strategies through HR
activities such as recruiting, selecting, training and rewarding personnel.
Why Strategic HRM is Important?
 Strategic human resource management is the practice of attracting,
developing, rewarding, and retaining employees for the benefit of both
the employees as individuals and the organization as a whole.
 Strategic HRM is seen as a partner in organizational success, as opposed
to a necessity for legal compliance or compensation.
 Strategic HRM utilizes the talent and opportunity within the human
resources department to make other departments stronger and more
effective.
 Strategic HRM gives direction on how to build the foundation for strategic
advantage by creating an effective organizational structure and design,
culture, employee value proposition, systems thinking, an appropriate
communication strategy and preparing an organization for a changing
landscape, which includes downturns and mergers & acquisitions.
 Strategic HRM emphasizes organizational codes of ethics, managing the
societal impact of business decisions, philanthropy and the role of the
human resource professional in improving the quality of life of
employees, their families and the community at large.
 Strategic human resource management includes typical human resource
components such as hiring, discipline, and payroll, and also involves
working with employees in a collaborative manner to boost retention,
improve the quality of the work experience, and maximize the mutual
benefit of employment for both the employee and the employer.
As a result, the goals of a human resource department reflect and support the
goals of the rest of the organization.
Let us understand how and why SHRM is important with examples from two
top companies.
GOOGLE
 This company is well known for its innovation and strength when it
comes to Strategic HRM.
 They know their people are what makes them great. The company
boasts tons of employee perks and amazing facilities. This includes a
seven-acre sports complex, multiple wellness centers, roller hockey
rinks, horseshoe pits, and subsidized massages for all.
 Google understands that if employees have the right incentives and are
given optimal positions, the company gets and retains top talent.
 Knowing that HR can make or break a company means that senior
management ensures it is tightly integrated so it not only protects its
employees as a high-end investment but does everything possible to
make sure they have happy employees that are productive for the
company.
CADBURY
 Cadbury knows what it’s doing when it comes to HR. They believe not
only in the importance of their employees but their families, too, putting
their people above all else.
 This is reflected by their success as the second-largest confectioner in
the world.
 Cadbury was founded in 1824 and created a worker village along with
R&D factories. The village is perfect in offering staff and their families a
place to not only work but to live. Their people are their main priority
and they have built a positive work atmosphere that allows for life and
work balance. They support their employees to the fullest and in return,
they have a loyal and dedicated workforce.
 HR has integrated its policies and plans perfectly with the company’s
strategic plans. They go hand in hand to meet the company’s long term
goals.
STRATEGIC ROLE OF HRM
Strategic Human Resource Management (SHRM) idea is that human resources
management is used to gain competitive advantage. SHRM practice is coupled
with business strategy. SHRM elevates human resources management from
micro level (individual personal level) to the macro level (business strategy
level). SHRM includes analysis of business and socio-political environment. HR
professionals must be aware of global business and social trends and should
be able to perform environmental scanning. SHRM also includes internal
human resource analysis. HR professionals must analyze human resources
against current and future business strategies and identify the gaps between
them.
The following are few important strategic roles that is to be played HR
manager.
STRATEGIC ROLE
 HR Participates in business decisions
 HR translates corporate strategy into human resource strategy
 HR helps managers create value
 HR helps employees satisfy customers’ needs
INFORMATIONAL AND PROBLEM SOLVING ROLE
 HR provides information and expertise on best practices in other
companies
 HR collects, disseminates, and otherwise makes available important
information to aid in strategic planning and daily work activities and
decisions
 HR diagnoses and recommends solutions to problems arising in
employment relations
STRATEGIC FUNCTIONAL ROLE
 HR helps select employees to fit both strategy and culture
 HR assists in designing and implementing performance planning and
appraisal systems
 HR assists in designing and implementing motivation and reward
systems
 HR assists in designing benefits to complement strategy
 HR assists in designing and implementing development and career
management systems
 HR helps enable all executives to perform critical, strategic HR functions
ADMINISTRATIVE ROLE
 HR assists in designing and improving personnel administrative systems.
 HR does much of the necessary administrative work involved in
employment, legal compliance and record keeping.
STRATEGY FORMULATION
Strategies are formulated at three levels:
 Corporate level
 Business unit level
 Functional level
CORPORATE LEVEL
 This is formulated by the TOP MANAGEMENT of an organization.
 The corporate-level strategy is to continuously innovate in all its
businesses with the right technology, relentlessly cut costs and focus on
the overseas markets.
 The major questions that need to be answered at this stage are- What
kinds of business should the company be engaged in? What are the goals
and expectations for each business? How should resources be allocated
to reach these goals?
 In formulating corporate-level strategies, the company should decide
where it wants to be-in 10 or 15 years hence in at least eight areas-
market standing, innovation, productivity, physical and financial
resources, profitability, managerial performance and development,
worker performance and attitudes, and social responsibility.

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STRATEGIC HUMAN RESOURCE MANAGEMENT NOTES

  • 1. UNIT - 1 INTRODUCTION TO STRATEGIC HRM PROF. SYED BILAL IRFAN
  • 2. INTRODUCTION Human resource management is based on the statement that employees are individuals with varying goals and needs. Practicing good human resource management enables managers of an enterprise to express their goals with specificity, increasing worker comprehension of goals and provide the necessary resources to promote successfully accomplishment of said goals. Before understanding what is strategic human resource management we need to have a clear picture on few aspects –  WHAT IS “STRATEGY”? STRATEGY is a unified course of action to achieve the organizational goal.  WHAT IS “STRATEGIC MANAGEMENT”? The set of decisions and subsequent actions used to formulate and implement strategies that will optimize the fit between the organization and its environment in an effort to achieve organizational objectives. – John & Richard  WHAT IS “STRATEGIC HUMAN RESOURCE MANAGEMENT”? STRATEGIC HUMAN RESOURCE MANAGEMENT can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. Strategic Human Resource Management is the practice of attracting, developing, rewarding, and retaining employees for the benefit of both the employees as individuals and the organization as a whole. HR departments that practice strategic human resource management do not work independently within a silo; they interact with other departments within an organization in order to understand their goals and then create strategies that align with those objectives, as well as those of the organization.
  • 3. Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. In an organization SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company’s strategies through HR activities such as recruiting, selecting, training and rewarding personnel. Why Strategic HRM is Important?  Strategic human resource management is the practice of attracting, developing, rewarding, and retaining employees for the benefit of both the employees as individuals and the organization as a whole.  Strategic HRM is seen as a partner in organizational success, as opposed to a necessity for legal compliance or compensation.  Strategic HRM utilizes the talent and opportunity within the human resources department to make other departments stronger and more effective.  Strategic HRM gives direction on how to build the foundation for strategic advantage by creating an effective organizational structure and design, culture, employee value proposition, systems thinking, an appropriate communication strategy and preparing an organization for a changing landscape, which includes downturns and mergers & acquisitions.  Strategic HRM emphasizes organizational codes of ethics, managing the societal impact of business decisions, philanthropy and the role of the human resource professional in improving the quality of life of employees, their families and the community at large.  Strategic human resource management includes typical human resource components such as hiring, discipline, and payroll, and also involves working with employees in a collaborative manner to boost retention, improve the quality of the work experience, and maximize the mutual benefit of employment for both the employee and the employer. As a result, the goals of a human resource department reflect and support the goals of the rest of the organization.
  • 4. Let us understand how and why SHRM is important with examples from two top companies. GOOGLE  This company is well known for its innovation and strength when it comes to Strategic HRM.  They know their people are what makes them great. The company boasts tons of employee perks and amazing facilities. This includes a seven-acre sports complex, multiple wellness centers, roller hockey rinks, horseshoe pits, and subsidized massages for all.  Google understands that if employees have the right incentives and are given optimal positions, the company gets and retains top talent.  Knowing that HR can make or break a company means that senior management ensures it is tightly integrated so it not only protects its employees as a high-end investment but does everything possible to make sure they have happy employees that are productive for the company. CADBURY  Cadbury knows what it’s doing when it comes to HR. They believe not only in the importance of their employees but their families, too, putting their people above all else.  This is reflected by their success as the second-largest confectioner in the world.  Cadbury was founded in 1824 and created a worker village along with R&D factories. The village is perfect in offering staff and their families a place to not only work but to live. Their people are their main priority and they have built a positive work atmosphere that allows for life and work balance. They support their employees to the fullest and in return, they have a loyal and dedicated workforce.  HR has integrated its policies and plans perfectly with the company’s strategic plans. They go hand in hand to meet the company’s long term goals.
  • 5. STRATEGIC ROLE OF HRM Strategic Human Resource Management (SHRM) idea is that human resources management is used to gain competitive advantage. SHRM practice is coupled with business strategy. SHRM elevates human resources management from micro level (individual personal level) to the macro level (business strategy level). SHRM includes analysis of business and socio-political environment. HR professionals must be aware of global business and social trends and should be able to perform environmental scanning. SHRM also includes internal human resource analysis. HR professionals must analyze human resources against current and future business strategies and identify the gaps between them. The following are few important strategic roles that is to be played HR manager. STRATEGIC ROLE  HR Participates in business decisions  HR translates corporate strategy into human resource strategy  HR helps managers create value  HR helps employees satisfy customers’ needs INFORMATIONAL AND PROBLEM SOLVING ROLE  HR provides information and expertise on best practices in other companies  HR collects, disseminates, and otherwise makes available important information to aid in strategic planning and daily work activities and decisions  HR diagnoses and recommends solutions to problems arising in employment relations STRATEGIC FUNCTIONAL ROLE  HR helps select employees to fit both strategy and culture  HR assists in designing and implementing performance planning and appraisal systems  HR assists in designing and implementing motivation and reward systems  HR assists in designing benefits to complement strategy
  • 6.  HR assists in designing and implementing development and career management systems  HR helps enable all executives to perform critical, strategic HR functions ADMINISTRATIVE ROLE  HR assists in designing and improving personnel administrative systems.  HR does much of the necessary administrative work involved in employment, legal compliance and record keeping. STRATEGY FORMULATION Strategies are formulated at three levels:  Corporate level  Business unit level  Functional level CORPORATE LEVEL  This is formulated by the TOP MANAGEMENT of an organization.  The corporate-level strategy is to continuously innovate in all its businesses with the right technology, relentlessly cut costs and focus on the overseas markets.  The major questions that need to be answered at this stage are- What kinds of business should the company be engaged in? What are the goals and expectations for each business? How should resources be allocated to reach these goals?  In formulating corporate-level strategies, the company should decide where it wants to be-in 10 or 15 years hence in at least eight areas- market standing, innovation, productivity, physical and financial resources, profitability, managerial performance and development, worker performance and attitudes, and social responsibility.
  • 7. BUSINESS UNIT LEVEL  While the major question at the corporate-level is, “In what industries or businesses should we be operating?” the appropriate question at the business unit level is, “How should we compete in the chosen industry or business?”  A business unit is an organizational subsystem that has a market, a set of competitors, and a goal distinct from those of the other subsystems in the group.  The concept of the strategic business unit (SBO) was pioneered by General Electric (GE). At GE, there are over 200 strategic business units, each having its own strategies consistent with the organization’s corporate-level strategy. FUNCTIONAL LEVEL  Each business unit will consist of several departments, such as manufacturing, sales, finance, and HRD. Functional-level strategies identify the basic courses of action that each of the departments must pursue in order to help the business unit to attain its goals.  In formulating functional level strategies, managers must be aware that the different functions are interrelated. A change in one department will invariably affect the way other departments operate.  Hence, the strategy of one functional area cannot be viewed in isolation. Rather, the extent to which all functional strategies are integrated determines the effectiveness of the unit’s business strategy.
  • 8. PLANNING AND IMPLEMENTING STRATEGIC HR POLICIES Human resource strategy is an elaborate and systematic plan of action developed by a human resource department. This definition tells us that an HR strategy includes detailed pathways to implement HRM strategic plans and HR plans. The various Planning and Implementing Strategic HR policies are: 1. Staffing Staffing includes the development of a strategic plan to determine how many people you might need to hire. Based on the strategic plan, HRM then performs the hiring process to recruit and select the right people for the right jobs. 2. Basic workplace policies Development of policies to help reach the strategic plan's goals is the job of HRM. After the policies have been developed, communication of these policies on safety, security, scheduling, Vacation times, and flextime schedules should be developed by the HR department. Of course, the HR managers work closely with supervisors in organizations to develop these policies, Workplace policies will be addressed throughout the book. 3. Compensation and benefits In addition to paychecks, 401(k) plans, health benefits, and other perks are usually the responsibility of an HR manager. 4. Retention Assessment of employees and strategists on how to retain the best employees is a task that HR managers oversee, but other managers in the organization will also provide input. 5. Training and development Helping new employees develop skills needed for their jobs and helping current employees grow their skills are also tasks for which the HRM department is responsible. Determination of training needs and development and implementation of training programs are important tasks in any organization.
  • 9. 6. Regulatory issues and worker safety Keeping up to date on new regulations relating to employment, health care, and other issues generally a responsibility that falls on the HRM department. THE STRATEGIC HR PLANNING PROCESS The strategic HR planning process has four steps: 1. Assessing the current HR capacity 2. Forecasting HR requirements 3. Gap analysis 4. Developing HR strategies to support organizational strategies 1. Assessing current HR capacity Based on the organization's strategic plan, the first step in the strategic HR planning process is to assess the current HR capacity of the organization. The knowledge, skills and abilities of your current staff need to be identified. This can be done by developing a skills inventory for each employee. The skills inventory should go beyond the skills needed for the particular position. List all skills each employee has demonstrated. For example, recreational or volunteer activities may involve special skills that could be relevant to the organization. Education levels and certificates or additional training should also be included. An employee's performance assessment form can be reviewed to determine if the person is ready and willing to take on more responsibility and to look at the employee's current development plans. 2. Forecasting HR requirements The next step is to forecast HR needs for the future based on the strategic goals of the organization. Realistic forecasting of human resources involves estimating both demand and supply. Questions to be answered include:  How many staff will be required to achieve the strategic goals of the organization?  What jobs will need to be filled?
  • 10.  What skill sets will people need? When forecasting demands for HR, we must also assess the challenges that you will have in meeting your staffing need based on the external environment.  How will the external environment impact on our HR needs? 3. Gap analysis The next step is to determine the gap between where your organization wants to be in the future and where you are now. The gap analysis includes identifying the number of staff and the skills and abilities required in the future in comparison to the current situation. One should also look at all your organization's HR management practices to identify practices that could be improved or new practices needed to support the organization's capacity to move forward. Questions to be answered include:  What new jobs will we need?  What new skills will be required?  Do our present employees have the required skills?  Are employees currently in positions that use their strengths?  Do we have enough managers/supervisors?  Are current HR management practices adequate for future needs? 4. Developing HR strategies to support organizational strategies There are five HR strategies for meeting your organization's needs in the future: a) Restructuring strategies b) Training and development strategies c) Recruitment strategies d) Outsourcing strategies e) Collaboration strategies
  • 11. a) Restructuring strategies This strategy includes:  Reducing staff either by termination or attrition  Regrouping tasks to create well designed jobs  Reorganizing work units to be more efficient Attrition - Not replacing employees when they leave - is another way to reduce staff. The viability of this option depends on how urgently you need to reduce staff. It will mean that jobs performed in the organization will have to be reorganized so that essential work of the departing employee is covered. Careful assessment of the reorganized workloads of remaining employees should include an analysis of whether or not their new workloads will result in improved outcomes. It is important to consider current labour market trends (e.g., the looming skills shortage as baby boomers begin to retire) because there may be longer- term consequences if you let staff go. Sometimes existing workers may be willing to voluntarily reduce their hours, especially if the situation is temporary. Job sharing may be another option. The key to success is to ensure that employees are satisfied with the arrangement, that they confirm agreement to the new arrangement in writing, and that it meets the needs of the employer. Excellent communication is a prerequisite for success. b) Training and development strategies This strategy includes:  Providing staff with training to take on new roles  Providing current staff with development opportunities to prepare them for future jobs in your organization
  • 12. c) Recruitment strategies This strategy includes:  Recruiting new staff with the skill and abilities that your organization will need in the future  Considering all the available options for strategically promoting job openings and encouraging suitable candidates to apply For strategic HR planning, each time you recruit you should be looking at the requirements from a strategic perspective. Perhaps your organization has a need for a new fundraiser right now to plan special events as part of your fund raising plan. However, if your organization is considering moving from fund raising through special events to planned giving, your recruitment strategy should be to find someone who can do both to align with the change that you plan for the future. d) Outsourcing strategies This strategy includes:  Using external individuals or organizations to do some tasks Many organizations look outside their own staff pool and contract for certain skills. This is particularly helpful for accomplishing specific, specialized tasks that don't require ongoing full-time work. Some organizations outsource HR activities, project work or bookkeeping. For example, payroll may be done by an external organization rather than a staff person, a short term project may be done using a consultant, or specific expertise such as legal advice may be purchase from an outside source. Each outsourcing decision has implications for meeting the organization's goals and should therefore be carefully assessed. e) Collaboration strategies Finally, the strategic HR planning process may lead to indirect strategies that go beyond your organization. By collaborating with other organizations you may have better success at dealing with a shortage of certain skills. Types of collaboration could include:
  • 13.  Working together to influence the types of courses offered by educational institutions  Working with other organizations to prepare future leaders by sharing in the development of promising individuals  Sharing the costs of training for groups of employees  Allowing employees to visit other organizations to gain skills and insight. HR STRATEGIES TO IMPROVE FIRM’S PERFORMANCE 1. Make Clear Goals and Expectations Are your team members aware of what their goals and expectations are? Do they know when you expect goals to be met? How do you know? Involve individual employees in their own goal-setting process to give them autonomy over their goals. A work environment that actively involves employees in goal-setting can also improve employee engagement and motivation. If you are dealing with performance issues with a particular team member, make sure to be specific. For example, if you discover a direct report is frequently taking two-hour lunches, don't tell them to take 'shorter lunches.' Tell him or her to keep their lunch break to an hour and consider making them document their lunch breaks or clock in and out of work. 2. Empower Employees to Do Their Best Work People do their best work when they are engaged and motivated. Invest in your employees’ long-term career in the organization. Develop a plan for moving up within the company and provide the resources and training that will develop staff into talented leaders in the long run. Your team members will need new skills and habits as they advance. Help employees secure those skills by allocating budget dollars towards workshops, professional development courses, conferences and certifications so they can reach their full potential.
  • 14. 3. Hold Team Members Accountable to Goals Imagine someone asks a direct report to do something — even if it's a clear goal with a set deadline — and they don't do it, but receive no consequence. What happens next? Over time, the employee will learn it doesn't matter if they slack off or have to be reminded. Performance is likely to suffer. Team members require crystal clear communication about their responsibilities and need to be held accountable. Be sure to communicate with your employees and don't be afraid to dole out warnings and consequences when they are earned. If certain employees fail to deliver, consider implementing a performance improvement plan. If they don't improve, it may be time to show them the door. 4. Reward High Performance A common problem in many organizations is that leaders spend their time trying to get low-performing team members to improve and recruiting new talent, ignoring high performers because they don't cause problems. This is a dangerous oversight! Over time, high performers will become disengaged and less motivated if they don't feel like their efforts are appreciated. Furthermore, high performers are in high demand! You could lose them to competitors if you don't recognize their hard work. There's no shortage of ways to reward an employee and thank them for a job well done. Gifts, bonuses, promotions, extra time off, public praise and extra benefits are all effective ways to reward high performers and keep them motivated. 5. Foster a Fun, Positive Work Environment It's no secret that happy employees are more engaged, productive and motivated team members. Be sure employees get to let loose occasionally and have some fun. Sponsor a monthly potluck, host 'get to know you' activities outside of the office or plan a trivia event at work to let team members develop a rapport and relationship with one another.
  • 15. Encourage an organizational culture where employees feel safe to speak up and voice their opinions, regardless of their rank or position in the company. When people feel their ideas and opinions are valued, they are more likely to participate and be engaged with the mission of the organization. 6. Increase Job Satisfaction Does a market analysis to see how your organization stacks up to your competitors? Do you offer competitive benefits and perks? Are your salaries higher or lower than other businesses in your industry? What kind of office environment do you have? The best way to find out if your benefits and perks are affecting employee performance and motivation is to ask your teams. Have employees complete an anonymous survey to determine what is most important to them. 7. Consider Remote Working Options In today's society, flexible schedules matter more than ever for busy business professionals. Contrary to popular belief, giving team members the ability to work from home won't make them less productive. Research shows that employees who work remotely are 13 percent more productive than their office-working counterparts, and they spend the time would they spend commuting focusing on work. For example, if one of your team members doesn't feel well enough to come to the office (and doesn't care to spread their germs) but they can still get work done, let them work from home rather than take a sick day and accomplish nothing. If someone has a home delivery or repair they need to be home for, let them work remotely so they can stay productive and not use all of their paid time off. 8. Use the Right Technologies A big part of employee performance is measuring performance. While many companies still rely on annual performance reviews and performance management systems to assess performance, new technologies are available that help measure performance more accurately on an ongoing basis.
  • 16. TOTAL QUALITY MANAGEMENT Total Quality Management (TQM) is a management technique based on the idea that all “employees continuously improve their ability to provide on-demand products and services that customers will find of particular value.” The concept of Total Quality Management can be found right in its name: The word “total” implies that all employees in the organization, from development to production to fulfillment, are obligated to improve operations. And “management” insinuates that this methodology should be a focused effort. 8 principles of Total Quality Management As with most management methods and techniques, implementation and success will vary from one company to another. While there is not a single agreed-upon approach, the most common TQM definition includes the following eight principles. 1. Customer focus The first of the Total Quality Management principles puts the focus back on the people buying your product or service. Your customers determine the quality of your product. If your product fulfills a need and lasts as long or longer than expected, customers know that they have spent their money on a quality product. When you understand what your customer wants or needs, you have a better chance of figuring out how to get the right materials, people, and processes in place to meet and exceed their expectations. To implement this TQM principle:  Research and understand your customers’ needs and expectations.  Align your organization’s objectives with customer needs.  Communicate with customers, measure satisfaction, and use the results to find ways to improve processes.  Manage customer relationships.  Find a balance for satisfying customers and other interested parties (such as owners, employees, suppliers, and investors).
  • 17. The benefits of being customer-focused include:  More sales, increased revenue, market share, and mindshare  Strong customer loyalty leading to repeat business  Increased possibility that satisfied customers will tell others about your products and services. 2. Total employee commitment You can’t increase productivity, processes, or sales without the total commitment of all employees. They need to understand the vision and goals that have been communicated. They must be sufficiently trained and given the proper resources to complete tasks in order to be committed to reaching goals on time. To implement this TQM principle:  Clearly communicate and acknowledge the importance of each individual contribution to the completed product.  Stress that each team or individual accepts ownership and give them the responsibility and opportunity to solve problems when they arise.  Encourage employees to self-evaluate performance against personal goals and objectives, and make modifications as necessary to improve workflow.  Acknowledge successes and optimized performance to build confidence in your employees and your stakeholders.  Make responsibilities clear, provide adequate training, and make sure your resources are used as efficiently as possible.  Encourage people to continually seek opportunities to learn and move into other roles to increase their knowledge, competence, and experience.  Create an environment where employees can openly discuss problems and suggest ways to solve them. The key benefits of total employee commitment include:  Increased employee retention because employees are motivated, committed, and actively involved in working toward customer satisfaction
  • 18.  Individual and team innovation and creativity in problem-solving and process improvement  Employees who take pride and accountability for their own work  Enthusiasm for active participation and contribution to continual improvement 3. Process approach Adhering to processes is critical in quality management. Processes ensure that the proper steps are taken at the right time to ensure consistency and speed up production. To implement this TQM principle:  Use Total Quality Management tools such as process flowcharts to define and delineate clear roles and responsibilities so everybody knows who does what at certain times.  Create a visual action plan so everybody can easily see the specific activities that need to be completed to achieve the desired result.  Analyze and measure current activities to see where improvements can be made or where steps in the process are creating bottlenecks.  Evaluate the impact your processes and activities may have on your customers, suppliers, and all stakeholders. Benefits of a process approach include:  Faster development and production cycles, lower costs, and increased revenue  More consistency and predictable outcomes  Focus on continued improvements and success. 4. Integrated system Typically, a business has many different departments, each with their own specific functions and purposes. These departments and functions should be interconnected with horizontal processes that should be the focus of Total Quality Management. But sometimes these departments and functions operate in isolated silos.
  • 19. In an integrated system, everybody in every department should have a thorough understanding of policies, standards, objectives, and processes. Integrated systems help the company to look for continual improvement in order to achieve an edge over the competition. To implement this TQM principle:  Promote a work culture focused on quality.  Use flowcharts and other visual aids to help employees understand how their functions fit in with the rest of the company.  Use as-is process analysis to see where improvements can be made.  Make training available for employees who need to learn new processes and who want to explore opportunities for advancement. Benefits include:  Focus on quality that will help your business achieve excellence and meet or exceed customer expectations 5. Strategic and systematic approach The International Organization for Standardization (ISO) describes this principle as: “Identifying, understanding and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objectives.” Multiple processes within a development or production cycle are managed as a system of processes in an effort to increase efficiency. To implement this TQM principle:  Provide your people with the proper training and resources that will help them complete their individual steps in the process.  Continually improve processes and products, and upgrade equipment as necessary to reach goals.  Make continual improvement a measurable objective for all employees.  Recognize, acknowledge, and reward innovations and process improvements.
  • 20. Benefits include:  An ability to quickly identify, react, and fix process bottlenecks or breakdowns  Overall improved organizational capabilities and improved performance. 6. Continual improvement Optimal efficiency and complete customer satisfaction doesn’t happen in a day—your business should continually find ways to improve processes and adapt your products and services as customer needs shift. As previously stated, the other Total Quality Management principles should help your business keep an eye toward continual improvement. To implement this TQM principle:  Implement policies to establish product, process, and system improvements as measurable goals for individuals, teams, and departments.  Recognize, acknowledge, and encourage innovation to improve processes and development.  Encourage employees to participate in available training sessions to learn and take on new and additional roles. Benefits include:  Improved knowledge and capabilities to increase performance  Improvement goals strategically aligned with organizational capabilities and goals  Quick reaction times to recognize and fix bottlenecks and broken processes.
  • 21. 7. Fact-based decision-making Analysis and data gathering lead to better decisions based on the available information. Making informed decisions leads to a better understanding of customers and your market.  To implement this TQM principle:  Analyze and check data to ensure that it is reliable and accurate.  Make relevant data available to stakeholders.  Use valid methods to gather and analyze data.  Make decisions based on the facts learned from the data in addition to your experience and intuition. Benefits include:  Ability to make informed decisions  Ability to analyze and defend past decisions by referencing factual records  Ability to change past decisions based on data review 8. Communications Everybody in your organization needs to be aware of plans, strategies, and methods that will be used to achieve goals. There is a greater risk of failure if you don’t have a good communication plan. To implement this TQM principle:  Establish an official line of communication so that all employees know about updates, policy changes, and new processes.  Where possible, involve employees in decision-making.  Make sure everybody in every department understands their roles and how they fit in with the rest of the company. Benefits include:  Boost in morale and motivation when employees understand how their contributions help the company achieve its goals  Interdepartmental coordination and cooperation  Elimination of silos
  • 22.  Ability to more accurately measure the effectiveness of current policies and procedures  Higher motivation from employees to achieve goals because they are part of the decision-making process  Successful implementation of these Total Quality Management concepts will not come overnight. Because TQM often represents a large cultural shift, you may want to implement these changes in phases to lessen the impact.
  • 23. UNIT - 2 INVESTMENT PERSPECTIVES OF HR PROF. SYED BILAL IRFAN
  • 24. INTRODUCTION Human Resource is one of the most important resources in an organization. The success or failure of an organization largely depends on how human resource is used to utilize other resources available to the organization. As a result, the focus of human resource management has shifted towards increasing the return on investment by maximizing the productivity of human resources. Therefore, evaluating the quality, costs and benefits of HR are very crucial to organizations much like any other capital investment. Adopting a strategic view of HR involves considering employees as “human assets,” and developing appropriate policies and procedures to manage them as valuable investments. Hence, organizations should invest in human resources in order to prepare the human resources to be competent to achieve strategies. Need for Investing in Human Resources 1. To improve the technical knowledge and skills of the employees. 2. To create ability to learn and grow among employees. 3. To bring out effective decision-making abilities among the employees. 4. To motivate and bring out commitment towards the work. 5. To improve the leadership qualities and team-building spirit among employees. Factors relevant to Human Resource Investment Decisions 1. Management Values  Management may or may not have appreciation of the value of it Human assets relative to other capital assets such as Brand names, Distribution Channels etc.  Senior management values and action determine the organizational investments in the human assets.  When senior managers formulate and implement strategies, their values and philosophies should be communicated to members of the organization through human resource policies and practices. 2. Risk and Return on investment in HR  Although there are a number of important benefits to investments in human resources, such investments contain an element of risk.
  • 25.  Investing in human resources is inherently more risky than investing in physical capital because the employer does not own the resource.  Employees are free to leave, although contractual arrangements may limit their mobility.  In order for investments in human resources to be attractive, the returns must be great enough to overcome the risks. 3. The economic rationale for investments in training  The human resource investments frequently involve training, it is instructive to consider the difference between specific and general training.  It is very important to understand when and what type of training is needed like if any specialized skills or techniques are to be imparted among employees then investment in specific training would be more worth and vice versa for a general training where training on usual and general aspects of organization will be provided. 4. Utilitarianism/Cost benefit analysis  In considering investments in human resources in terms of hiring or development of current employees in order to pursue given strategies, there must be a method for evaluating the financial attractiveness of such investments.  The financial attractiveness is nothing but financial profitability and less cost involved in a particular HR investment. JOB ROTATION Job Rotation is a management approach where employees are shifted between two or more assignments or jobs at regular intervals of time in order to expose them to all verticals of an organization. It is a pre-planned approach with an objective to test the employee skills and competencies in order to place him or her at the right place. Job rotation is a well-planned practice to reduce the boredom of doing same type of job every day and explore the hidden potential of an employee. The process serves the purpose of both the management and the employees. It helps management in discovering the talent of employees and determining what he or she is best at. On the other hand, it gives an individual a chance to explore his or her own interests and gain experience in different fields or operations.
  • 26. Advantages of Job Rotation Many employers choose to create a job rotation policy as a benefit to employees. But, employees aren’t the only ones who benefit from the program.  Eliminates boredom. Only 32% of employees are actually engaged at their jobs. That means 68% of employees are doing the bare minimum, plugging away at their computers or robotically talking to customers. Disengaged employees can be lured away by promises of a better, more challenging job. Giving employees new responsibilities won’t solve all your problems. But, it could help employees become engaged and prevent boredom. For the most part, employees becoming disengaged at their jobs is a gradual thing. By mixing up responsibilities, you could help break up the monotony of an employee’s day to day.  Encourages development. Having a job rotation strategy helps employees develop their skills. By learning more skills, employees will feel more valuable to your business. Employees who work at a company that encourages their development might not feel the need to change jobs. Instead of leaving your business for a new job that helps an employee develop, they can rotate jobs.  Gives employees a break from strenuous job duties. Many industries that require heavy-duty labor use job rotation strategies. Overworked employees who are constantly doing manual labor benefit from getting a break. By rotating their jobs, you help offset the risk of fatigue. For example, you could have a warehouse employee who lifts heavy packages for deliveries rotate to a job that handles the paperwork for shipping.  Helps you identify where employees work best. A job rotation strategy can point out an employee’s strengths and weaknesses. You might find that an employee can better handle a different job at your business. For the most effective business, you need to have all your employees in the right positions.
  • 27.  Gives you a backup plan if an employee leaves the job. Although employee turnover can be expensive, it does not have to be devastating. By having a job rotation plan, you have multiple employees who know how to do each job. If an employee leaves, you will not need to scramble to hire the first person you see. Instead, you have other employees capable of covering the separated employee’s tasks. If you do need to hire a replacement, you can take your time to find the right fit. Disadvantages of Job Rotation Before implementing a job rotation program, consider the following disadvantages.  Can be costly and time consuming When you move an employee into a new position, there is a learning curve. Employees might need training in order to do their new job. The cost of training employees can be thousands of dollars and take hours.  Could end up with disgruntled employees Some employees might not want to rotate jobs. An employee who is comfortable and successful in their current position may worry another employee would mess up their process. You might have some employees who excel at their job but are not willing to learn new things.  It won’t fix all your problems Job rotation programs are not guaranteed to increase employee engagement, so do not put all your eggs in one basket. If your employees are disengaged at your business, it could be because of other factors. Rotating an employee’s job will not fix issues like lack of positive reinforcement and disconnect with company culture. Do not use a job rotation program for the sole purpose of making employees happy before getting to the root of their problems first.
  • 28.  Might not be feasible for some industries For some industries and positions, job rotation is not realistic. This is especially true in highly skilled positions where employees need years of training to do their jobs. If you want to implement a job rotation program at your business, make sure that it is possible. Do not waste effort on something that will not work.  Your business could suffer One of the most devastating disadvantages of job rotation is that your business could take a hit. Because employees are learning new skills, there could be some errors. Confused employees who make mistakes could frustrate customers. If operations do not run smoothly, your bottom line could suffer. You need to consider how job rotation could help your business. You do not want slow operations, confused employees, and angry customers in the process. JOB ENRICHMENT Job enrichment is a common motivational technique used by organizations to give an employee greater satisfaction in his work. Job Enrichment is the addition to a job of tasks that increase the amount of employee control or responsibility. The employee will be given additional responsibilities previously reserved for his manager or other higher-ranking positions, which in turn motivates the employee to work efficiently and responsibly. Advantages of Job Enrichment  Job enrichment is the most widely used method of job design as it provides a meaningful work experience and learning to employees.  It makes the work interesting.  It helps in reducing the rate of labour turnover and absenteeism.  It increases skills of the employees.  Workers get higher job satisfaction as redesigned jobs provide intrinsic motivation to the employees.  Organization gets improvement in output, both qualitative and quantitative.
  • 29. Disadvantages of Job Enrichment  Enriched jobs may fail to motivate employees who are alienated and who prefer job security, shorter work, bonus, and good pay to autonomy and responsibility. For such employees, job enrichment may lead to feelings of inadequacy, failure and dependence. They may consider it an additional burden without appropriate compensation.  Job enrichment may make work more difficult and therefore proper training should be provided to the employee to handle the enriched jobs. In certain cases, job enrichment proves to be a costly process as the expenditure involved is higher than the gain in productivity.  It may not be possible to enrich all the jobs especially the technical jobs with specialised machinery. It may not be possible to make the jobs more meaningful.  Job enrichment does not necessarily mean job satisfaction. Jobs of highly skilled professionals are very challenging in nature but it does not mean that they are always satisfied with their jobs. FORMS OF INVESTMENT IN HR  INVESTMENT IN TRADITIONAL INVESTMENT APPROACHES  Investment in Training  Investment in Management and Organizational Development  Investment for Improved Retention Management  Investment in Job Secure Work Forces  INVESTMENT IN NON-TRADITIONAL INVESTMENT APPROACHES  Investment in disabled employees  Investments in employee health  Countercyclical hiring
  • 30.  INVESTMENT IN TRADITIONAL INVESTMENT APPROACHES Before understanding all investment in detail, let us understand the difference between Training, Management Development & Organizational Development. Area Management Development Training Organization Development Content Managerial skills and knowledge Technical skills and knowledge Behavioral skills and knowledge Purpose Conceptual , decision making, interpersonal Specific job Related Inter-personal relations Duration Medium-term and long–term Short-term Long-term For Whom? For Managers: Detailed programs. For Non-Managers: Basic managerial Knowledge. For Technical and Non- Managerial Employees: Detailed programs. For managers: Basic Technical knowledge All employees  Investment in Training After an employee is selected, placed and introduced he or she must be provided with training facilities. Training is the act of increasing the knowledge and skill of an employee for doing particular job. According to H. John Bernardin “Training is any attempt to improve employee performance on a currently held job or one related to it”. Training is an educational process. It provides information to the people and increases knowledge and skills and can help them improve their effectiveness at work. Objectives of Training  To provide new employees the basic knowledge and skill they need for performing their work.  To ensure that each employee has capabilities to perform their duties.
  • 31.  To assist employees to function more effectively in their present positions by providing them updated information and techniques and developing the skills that they will need to do their job.  To help the employee develop as an individual so that the organization can utilize the maximum potential of its employees.  To prepare employees for high-level responsibility.  To reduce supervision wastage and accidents.  To develop inter-personal relation.  To reduce employee turnover and absenteeism.  To increase motivation and morale of employees. Methods of Training On the Job Methods This is the most common method of training in which a trainee is placed on a specific job and taught the skills and knowledge necessary to perform it. The advantages of OJT are as follows: 1. On the job method is a flexible method. 2. It is a less expensive method. 3. The trainee is highly motivated and encouraged to learn. 4. Much arrangement for the training is not required. On the Job Methods Off the Job Methods  Job Rotation  Coaching  Job Instruction  Committee Assignments  Internship Training  Vestibule Training  Role Playing  Lecture Method  Conferences/Discussion & Workshops  Audio-Visual Methods
  • 32. Methods in OJT - 1) Job rotation: This type of training involves the movement of the trainee from one job to another. The trainee receives job knowledge and gains experience from his supervisor or trainer in each of the different job assignments. Though this method of training is common in training managers for general management positions, trainees can also be rotated from job to job in workshop jobs. This method gives an opportunity to the trainee to understand the problems of employees on other jobs and respect them. 2) Coaching: The trainee is placed under a particular supervisor who functions as a coach in training the individual. The supervisor provides feedback to the trainee on his performance and offers him some suggestions for improvement. Often the trainec shares some of the duties and responsibilities of the coach and relieves him of his burden. A limitation of this method of training is that the trainee may not have the freedom or opportunity to express his own ideas. 3) Job instructions: Also known as step-by-step training in which the trainer explains the way of doing the jobs to the trainee and in case of mistakes, corrects the trainee. 4) Committee assignments: A group of trainees are asked to solve a given organizational problem by discussing the problem. This helps to improve team work. 5) Internship training: Under this method, instructions through theoretical and practical aspects are provided to the trainees. Usually, students from the engineering and commerce colleges receive this type of training for a small stipend.
  • 33. Off the Job Methods On the job training methods have their own limitations, and in order to have the overall development of employee’s off-the-job training can also be imparted. The methods of training which are adopted for the development of employees away from the field of the job are known as off-the-job methods. Methods in Off the Job Methods - 1) Vestibule training: In this method, actual work conditions are simulated in a class room, Material, files and equipment those are used in actual job performance are also used in training. This type of training is commonly used for training personnel for clerical and semiskilled jobs. The duration of this training ranges from days to a few weeks. Theory can be related to practice in this method. 2) Role playing: It is defined as a method of human interaction that involves realistic behaviour in imaginary situations. This method of training involves action loing and practice. The participants play the role of certain characters. such as the production manager, mechanical engineer, superintendents, maintenance engineers, quality control inspectors, foreman, workers and the like. This method is mostly used for developing interpersonal interactions and relations. 3) Lecture method: The lecture is a traditional and direct method of instruction. The instructor organises the material and gives it to a group of trainees in the form of a talk. To be effective, the lecture must motivate and create interest among the trainees. An advantage of lecture method is that it is direct and can be used for a large group of trainees. Thus, costs and time involved are reduced. The mejor limitation of the lecture method is that it does not provide for transfer of training effectively. 4) Conference or discussion: It is a method in training the clerical, professional and supervisory personnel. This method involves a group of people who pose ideas,
  • 34. examine and share facts, ideas and data, test assumptions, and draw conclusions, all of which contribute to the improvement of job performance. Discussion has the distinct advantage over the lecture method in that the discussion involves two-way communication and hence feedback is provided. The participants feel free to speak in small groups. The success of this method depends on the leadership qualities of the person who leads the group. 5) Audio-Visual Methods: Providing training by way of using Films, Televisions, Video, and Presentations etc. This method of training has been using successfully in education institutions to train their students in subjects to understand and assimilate easily and help them to remember forever. New companies have come up for providing audio-visual material for students in their concern subjects. In the corporate sector, mainly in customer care centres employers are giving training to their employees by using audio visuals material to teach how to receive, talk and behaviour with the customer.  Investment in Management & Organizational Development Management development is a systematic process of growth and development by which the managers develop their abilities to manage. So it is the result of not only participation in formal courses of instruction but also of actual job experience. It is concerned with improving the performance of the managers by giving them opportunities for growth and development. But, whereas Organizational Development is a process where the managers develops behavioral skills and provide knowledge to the employees. The main purpose of Organizational Development is to provide good interpersonal skills among the employees. Objectives of Management Development:  Increase the productivity and effectiveness of managers.  Assist the organization to identify its future leaders and accelerate their upward mobility.
  • 35.  Enable organization to produce the number of competent manger to anticipate growth needs.  Encourage self-development and increases ability of managers to take greater responsibility.  Enhancing managerial job satisfaction.  Encourages the climate of participative management where individual and the organization can mutually set performance goals and measurement techniques. Methods of Management & Organizational Development On the Job Methods 1) Job rotation: It means moving management trainees from department to department to broaden their understanding of all parts of the business and to test their abilities. The advantages of this method are: It develops the links between departments, develops employee’s flexibility to undertake different types of activities. 2) Coaching: Under this method, the trainee is guided actively by senior managers. The coach gives guidance through direction, advice criticism and suggestion in an attempt to aid the growth of an employee (trainee).The On the Job Methods Off the Job Methods  The coaching method  Understudy method  Job rotation  Special projects  Committee assignments  Selective Readings  Case studies  Role playing  In-basket methods  Business games  Sensitivity training  Simulation
  • 36. disadvantages of this method are there is a possibility of continuing the current management style and practices in an organization, heavy reliance on coach’s ability etc. 3) Under study Method: Under this technique, the potential managers are given opportunity to relieve (ease) an experienced manager of his/her job and act as his/her substitute during the period. Through this method, an individual get opportunity to see the job in total in short period. 4) Committee learning/action learning: Under this technique, a group of people or team is assigned and gives an opportunity share in managerial decision making, to learn by watching other and to investigate specific organizational problems. This is temporary in nature, however, it increases trainees’ exposure to other members, broadens his /her understanding and provides an opportunity to grow and make recommendation under the scrutiny of other committee members. 5) Special projects: Under this method, a trainee executive is assigned a special project involving heavy responsibility. The trainee is supposed to study the project, understand the problem issues and prescribe appropriate solutions, and make a recommendation on the viability of the project. 6) Selective readings: Some organizations maintain huge libraries involving a large collection of useful material on the subjects of interest to the enterprise. The executives go through the books, journals, articles, notes, and magazines and assimilate knowledge. The executives, during their leisure hours, try to exchange their views with others and in this process learn new ways to looking at things.
  • 37. Off the Job Methods 1) Case study: The case study method involves diagnostic and problem solving study of usually a written description of some event or set of circumstances on organizational problems providing relevant details. The method is appropriate for developing analytical and problem solving orientation and skill, providing practice in applying management concepts, tools and techniques and enhancing awareness of the management concepts and processes. The method is relevant for developing o- generational, conceptual and functional skills among top and senior level executives. 2) Role playing: Role playing is used in helping trainees to diagnose human relations problems, to develop insight through in-depth analysis of problems relating to human interaction and to acquire skills in interpersonal communication with particular emphasis on empathy and listening. A simulated situation is created in which trainees act out the thoughts and behaviour of persons in particular roles in the organization. Roles are often played spontaneously and unrehearsed. 3) In-basket method: In-Basket on In-Tray technique involves simulation of a series of decisions a trainee might have to make in real life. The trainee is presented with pack of papers and files in a tray containing administrative problems and is asked to take decisions within specified time limit. The decisions taken by several trainees are recorded and compared with one another. Learning occurs as trainees reflect and evaluate the decisions taken on priorities, customer’s complaint, superior’s demand, irrelevant information and the like. 4) Business Games: Business games are classroom simulation exercises in which teams of individuals compete against one another or against an environment in
  • 38. order to achieve a given objective. These games are designed to be representative of real-life conditions. Under these, an atmosphere is created in which the participants play a dynamic role, and enrich their skills through involvement and simulated experience. 5) Sensitivity training: Under this method, members are brought together in a free and open environment in which participants discuss themselves. They express their ideas, beliefs and attitudes. The objective of sensitivity training is to provide manger s with increased awareness of their own behaviors and of how others perceive them greater sensitivity to the behavior of others and increased of group process.(It helps to increase the ability to understand other’s behaviors, improved listening skills, greater openness, increase tolerance for individual differences and improved conflict resolution skills.) 6) Simulation: Simulation is a special training technique conducted one a duplicate environment which is a mock up of a real life environment. Under the simulation method a single hour may be equated for a month, or a quarter of a month in real life. Like this, several events may be experienced in a relatively short span of time.  Investment in Improved Retention Management Employee retention is defined as the steps or processes taken by HR professionals and managers to ensure the organization retains employees. Employees leaving an organization affect the organization’s productivity, morale, and engagement. Managing for employee retention involves strategic actions to keep employees motivated and focused so they elect to remain employed and fully productive for the benefit of the organization. A comprehensive employee retention program can play a vital role in both attracting and retaining key employees, as well as in reducing turnover and its
  • 39. related costs. All of these contribute to an organization's productivity and overall business performance. Retention of productive employees is a major concern of HR professionals and business executives. It is more efficient to retain a quality employee than to recruit, train and orient a replacement employee of the same quality. Eight employee retention strategies that organization can implement 1) Ensure the right people are hired: It is said that supervisors spend a whole day in a week in managing poor- performing employees, and 11% of financial supervisors suggested that if they hire the wrong employees, they lose out on productivity. Every organization would want to hire the right people to make sure it does not take a toll on the finances of the company. Many companies have aptitude tests or pre-placement tests to understand the caliber of to-be- hired employees. Some organizations also conduct personality tests to make sure no stone is left unturned in evaluating candidates. 2) Allot responsibilities as per employee’s interests and specializations: An employee looks forward to attending a day’s work when the assigned duties match their interest. Designing milestones by incorporating employee interests and likings will go a long way, as it will be a motivational factor for employees to come to work. They will appreciate the efforts the organization is putting in to make sure the employees are happy to be working with the company. 3) Avoid hierarchical structure and create an accessible work environment: A lot of organizations assume that high-pressure can get the best out of the employees but sadly, that isn’t the truth. Around 80% of doctor visits happen due to stress and 80% of accidents at work also happen at high- pressure jobs. In case there’s a hierarchical structure, most employees feel that they can easily trust their peers but not their bosses. An “open-door” policy company, where employees feel free to talk to the highest authority without any hesitation is where these losses are minimized and the
  • 40. output delivered is maximum. Companies, where the managers don’t put blame on the team members for things that go wrong have a positive culture which leads to some path-breaking work. 4) Appreciate good work to encourage them to stay for longer: It is noted in the recent times that 69% of employees say that they would work harder if their work were appreciated. Employees come every day and contribute towards business and that is the reason why they need to be constantly motivated and appreciated. Managers who value their team members have much better performance results than those who do not. A “thank you” for a simple task finished brilliantly can boost the morale of the employees. Offering fair incentives, appraisals according to the caliber of the employee makes it clear to them that they are valued. This reflects in their performance and in turn, improves the performance of the company. 5) Performance appraisals and other perks are key to happy employees: The employees are always eager to know whether they are delivering according to their manager’s expectations. For them to be assured of their work, the managers need to have regular performance review meetings, constant coaching and feedback sessions. Create realistic goals for the employee during appraisal and strengthen the bond shared with the employees so that they work harder to achieve their goals. Having an appraisal once a year is not enough to keep the employees motivated, keep all factors in mind and try to conduct appraisals more than once a year. 6) Ease employees’ work-life balance: Due to the constant challenges that employees face day in and day out, it seems impossible for them to not think about work after leaving office. Most overworked and exhausted employees talk about work-life balance. Employers are not responsible for the employee’s work-life balance. But, they can mend their policies to make sure they support it. Offering employees flexible working hours, some paid time off (PTO) apart from the usual leaves can be exactly what the employees need.
  • 41. 7) Come up with appropriate training programs for employee growth: Hiring the right candidates is just work half done, it is what comes after hiring that matters. Training the employees constantly according to the new developments in the company is what will keep them from leaving. This is one of the most challenging employee retention strategies that would require continuous effort from employers for arranging training at regular intervals. If the right candidates feel they are not in a workplace that is exploring their true potential, they will quit and leave you in a position where you would have to look for a replacement. By having training modules in place, one can encourage new employees to work better and deliver better. 8) Cultivate Team Spirit: Introduce the employees to a culture where they can share their thoughts about topics under discussion without hesitation. This will bring out different work cultures to the table and encourage them to be true to their work styles. Create transparency about team goals, roles, and responsibilities and promote the employees to share their thoughts in every small and big decision. Keep these pointers under check every year so that you do not overlook parameters like salary, appraisals and other benefits.  Investment in Job Secure Workforce For businesses facing tough economic times, layoffs might seem like the only answer to monetary challenges. However, layoffs can thin the number of workers on the payrolls in unexpected and undesired ways. The more people that were laid off, the more people quit, researchers said. Of the employees who stay, many report less productivity and more stress on the job. They say customer service has declined, they see more errors, and they think their organizations’ prospects have worsened.
  • 42. Companies can avoid layoffs and reduce payroll by investing in some innovative methods. 1) Put Promotions and Raises on Hold: Unless critical to your business, halt all promotions. If they are necessary from an operational continuity perspective, communicate to the promoted employee that they will experience a change of title and responsibilities, but they will not receive a salary increase until financial conditions improve. 2) Reduce Employee Hours: During economic instability, many employees need flexibility. Organizations can give employees the option to reduce their working hours to four days a week or go part-time for the duration of the crisis, and adjust their pay accordingly or the recent trend during COVID19 Pandemic giving an option to work from home. This way, a company can save on its payroll spend while still keeping workers employed. 3) Furlough Employees/Send on temporary leave: The theory behind unpaid leaves, or furloughs, is that by sharing the pain of the downturn more broadly among the workforce, organizations will keep talented employees, win additional loyalty and position themselves better for recovery. By furloughing employees or taking salary cuts, you buy yourself more time to make smart decisions. 4) Pay Cuts: Pay cuts are an alternative way for companies to avoid layoffs while reducing their labor costs, thereby preserving jobs. The danger with pay cuts is that they can create deep emotional scars and damage morale. Low morale can lead to lower productivity, with the net effect that labor costs rise. But the ultimate aim of avoiding lay-offs can be achieved. 5) Transfer Idle Employees: If certain employees are being paid to work in areas of the business with little activity, employers should consider transferring or redeploying
  • 43. them to perform another function that will provide the company with more equitable returns.  INVESTMENT IN NON-TRADITIONAL INVESTMENT APPROACHES  Investment in Disabled Employees Investment in non-traditional area of human resource investment involves providing support for programs that return disabled employees back to the workforce. Such approaches include raising the height of desks to provide wheelchair access, providing appropriate handrails, lowering elevator controls, and removing structural barriers such as revolving doors. This HR investment involves providing support programs that help disabled employees work smoothly in an organization.  Investment in Disabled Employees Improving employee's health is a type of non-traditional investment. Such investments can increase the productivity of employees. The different methods in which companies invest in employee health are as follows: 1) Increasing the quality of nutrition and providing basic medical care. 2) Providing meals and high quality food service to the employee 3) Awareness programs relating to the ill effects of smoking and introducing policies that prohibit smoking in the office premises. 4) Investing in fitness centers and other physical conditioning programs. 5) Programs that reduce incidence of employee burn-out. 6) Support and close monitoring of the self-esteem of employees working in jobs having high potential for burnout. 7) Establishing on-site health clinic. All of the above programs have resulted in better mental health, stress resistance, increased commitment, increased productivity, lower absenteeism, and lower turnover.
  • 44.  Investment in Countercyclical Hiring In addition to not laying off as many employees as technical production requirements might suggest, companies may pursue countercyclical hiring strategies of hiring a limited number of managers and professionals during economic downturns. In essence, companies would be stockpiling a limited number of high-quality key personnel for future use in pursuing strategies requiring certain personnel capabilities. As opposed to economic upturns when competitors are also attempting to obtain the same personnel, bargains in quality can be obtained during downturns.
  • 46. INTRODUCTION Change is the law of nature. It is a necessary way of life in most organizations for their survival and growth. Though there may be some discontentment, during the early days of the change, persons learn to meet the change and adopt themselves to the changing situation; hence, resistance to change would be a short-term phenomenon. Man has to mould himself continuously to meet new demands and face new situations. Despite the fact that change is a persistent phenomenon, it is a common experience that people resist change, whether in the context of their pattern of life or in the context of their work situation in an organization. ORGANIZATIONAL CHANGE Organizational Change can be defined as "A concerted, planned effort to increase organizational effectiveness and health through changes in the organization's dynamics using behavioral science knowledge". The term Organizational Change' implies to the creation of imbalances in the existent pattern or situation. Adjustment among people, technology and structural set up is established when an organization operates for a long time. People adjust with their jobs, working conditions, colleagues, superiors etc. Similarly, an organization establishes relationship in the external environment. Change requires individuals and organizations to make new adjustments. Complexity and fear of adjustment give rise to resistance and problem of change. Human resource is an important factor in the adjustments among individuals as well as between the organization and environment, as an organization is mostly composed of people. Individual members can resist either individually or in-group.
  • 47. TYPES OF CHANGES 1) Strategic Change This is a change in the very mission of the organization. A single mission may have to be changed to multiple missions. For example, when British Airways acquired a major part of U.S. Air, the culture of the entire organization had to be modified to accommodate various aspects of American organizational culture into the British organizational culture. 2) Structural Change Decentralized operations and participative management style have seen more recent trends in the organizational structure. Since these structural changes shift the authority and responsibility to generally lower level management, it has a major impact on an organization's social climate and members have to be prepared to develop a team spirit as well as acquire skills to make on-the spot decisions at points of operations. 3) Technological Change The technology of an organization is the conversion process an organization uses to transfer inputs into outputs. Due to the rapid rate of technological innovation in the industrial world, technological change is becoming increasingly important to many organizations. The five major areas where technological change is likely to be experienced is –  Equipment  Work process  Work sequence  Information processing system  Automation 4) People - Oriented Change People-oriented changes might be conceived with changing employee performance, skills, attitudes, perceptions, behaviours or expec-tations. Such changes are considered part of organizational development. Here, it suffices to focus on efforts to upgrade employee skills and performance.
  • 48. Major areas where People-oriented change is likely to be experienced is–  Replacement  Selection  Training & Development 5) Incremental Change A gradual change, those who are affected do not experience it initially. Computerisation in offices has been introduced as an incremental change in most of the organizations. 6) Exceptional Change A particular change is accepted as an exception; there is no change in ongoing aspects. The existing beliefs are not changed but specific change is introduced separately, as an exception. In the R&D division of a large organization flexi-time was introduced as an exception all other divisions were continuing the ongoing system. RESISTANCE TO CHANGE What is Resistance to Change?  Resistance to change is the unwillingness to adapt to altered circumstances.  Employees may realize they do not like or want a change and resist publicly, and that can be very disruptive.  Employees can also feel uncomfortable with the changes introduced and resist, sometimes unknowingly, through their actions, their language, and in the stories and conversations, they share in the workplace. But we have studied earlier that change is important in every organization even if there is resistance i.e. employees are uncomfortable with changes in the organization. Let us understand resistance with an example. A company wanted to install a new software program in cash counter computer terminals to facilitate the fast movement. But some employees may not respond favorably and display their refusal to cooperate by increasing absenteeism,
  • 49. sub-standard work, joining of unions, increased labor turnover etc. Resistance to change can also be a source of functional conflict. This is the time where the manager should take necessary steps to convince the employees to adapt to the change. How to Overcoming Resistance? While change will usually face resistance, it is certainly possible to overcome it. Managers must strive to help their employees adjust to changes and facilitate new variations in functioning. Firstly, managers must be able to convince workers that the changes they are proposing are necessary. They should show how the workers and the organization itself would benefit from these changes. Secondly, the management can keep the following considerations in mind to implement changes smoothly:  Changes should not happen suddenly because it is easier to implement them in stages.  Changes should never cause security problems for the workers.  Managers must consider the opinions of all employees on whom the proposed change will have an effect.  If managers portray leadership by first adapting to the changes themselves, employees are less likely to resist.  Sufficient prior training of employees can help them accept changes with confidence.
  • 50. APPROACHES TO ORGANIZATIONAL CHANGE Management is said to be an agent of change. It means that management has to introduce change successfully in its organization. It has to overcome the resistance and make it a successful venture. The management must realize that resistance to change is basically a human problem, though on surface, it may appear to be related to the technical aspect of change. So, it must be tackled in a human and social manner. Management has to take the following steps to implement the change successfully: 1) Participation of employees: Before introducing any change, the employees should be fully consulted and they must be made a party to any such decision. The meaning and purpose of the change must be fully communicated to those who will be affected by it. Enough time should be allowed for discussion and pros cons of the change should be explained, in detail, to employees 2) Planning for change: Before implementing any change, the management should plan for it. Employees should get an opportunity to participate both in planning the change and installing it. This will help the group of the affected employees to recognize the need for change and thus prepare them for receiving it without any fear. 3) Protecting employees interests: Management should ensure that employees are protected from economic loss, loss in status or personal dignity. If those things are protected, the degree of resistance to change will be at the lowest. 4) Group dynamics: Group dynamics refers to the ever changing interactions and adjustments in the mutual perceptions and relationships among members of the groups. Such group interactions are the most powerful instruments which facilitate or inhibit adaptation to change. Adaptation is a team activity which requires conformity to the new group norms, mover traditions and work patterns. If
  • 51. these could be positivity articulated by management the results are likely to be more successful and durable. 5) Cautions and slow introduction: The management should not introduce any change suddenly and abruptly. It must be an objective for the management to build in the organization an awareness of change and an ability to forecast it and also to construct an attitude of welcoming change. Change must be introduced in sequential parts, if possible. the results must be reviewed and required adjustments must be made in it. 6) Positive motion: The management should use the policy of positive motivation to counteract negative resistance. It should be the attempt of the management to make the job easier and less exerting The management should impart proper training to its employees in new techniques and work knowledge, etc. The leadership styles should also be supportive and human oriented. This policy will also bring down the resistance to change. 7) Sharing the benefits of change: Any change whether technical, social or economic will be least resisted by the employees if the management permits the employees to share benefits which arise out of the change. So, the management must see that employees are not only assured of it, they are given due advantage of it as well. 8) Training and development: Management should plan for change. Based on the change plan, the job should be redesigned. Management should train the employee's before-hand and prepare the employees to invite change. Normally trained and developed employees will not resist change as they cannot keep quiet with enriched skill and knowledge. 9) Career planning and development: Organization on the basis of change plans and redesigned jobs should plan for careers of employees, possibilities to move the employees to the higher
  • 52. levels and develop them. The developed employees for future careers demand the management to implement change. 10) Organization development: Organization development aims at moulding and development of employees in the psychological and behavioural areas with a view to achieve organizational intervenes. Employees with enriched behaviors welcome the change. ORGANIZATIONAL DEVELOPMENT Organizational development is an educational strategy which focuses on the whole culture of the organization in order to bring about planned change. It seeks to change beliefs, attitudes, values and structures, in fact, the entire culture of the organization so that the organization may better adapt to technology and live with the pace of change. Thus, organizational development may be defined as a technique for bringing change in the entire aspects of the organization so that change is easily absorbed. What is organizational development in HR? Organizational development in HR involves changes and improvement of the processes and structures that are part of HR’s responsibility. These include processes and systems related to performance management, talent management, diversity, employee wellness, and so on. Organization development (OD) is a deliberately planned effort to increase an organization's relevance and viability. Organizational development is the framework for change, and often times a manager helps to lead this change. Objectives of Organizational Development  To increase the level of inter-personal trust among employees.  To increase employee's level of satisfaction and commitment.  To confront problems instead of neglecting them.  To effectively manage conflict.
  • 53.  To increase cooperation among the employees.  To increase the organization problem solving.  To put in place process that will help improve the ongoing operation of the organization on a continuous basis. Organization Development Values Organization development constitutes various people, professionals, technocrats, researchers, managers and a host of other employees working in the organization contributing to the accomplishment of organizational objectives. They behave differently. Authority and power, conflicts, control takes backseat during OD process. The following are the values in OD efforts: 1) Respect People: People are the raison d’etre of organization and they are responsible for creating opportunities for growth. They must, therefore, be treated with respect and dignified manners. 2) Confidence and Support: Organizations are made up of people and they are to be believed and supported in order to have effective organization. The healthy environment prevails when people are trusted and taken into confidence and a necessary support is extended to them as and when needed. 3) Confrontation: Any conflict on any issue should not be suppressed. It should be dealt with openness. Suppression leads to dampening of morale. Identifying the problem and its causes, discussing it openly and finding out feasible solution leads to boosting up morale of the employees and creating good environment. 4) Employee Participation: The participation of employees who will be affected by the OD should be sought in decision-making.
  • 54. 5) Expression: Human beings differ in experience, maturity, ideas, opinions, and outlook. The organization is at the receiving end. It gains from the differences in quality, ideas, opinions and experiences of its people. Human beings are social animals; they have feelings, emotions, anger and sentiments etc. They should be allowed to express their feelings and sentiments. This will result in building up high morale and the people will be motivated towards hard work ultimately resulting in increased efficiency. 6) Seeking Cooperation: Managers should learn to seek cooperation from each of the employees working under him in his department. This will develop in creating the atmosphere of cooperation leading to organizational effectiveness and willingness to accept change in the event of organization development process. Organizational Development Techniques 1) Survey feedback The survey technique involves data be collected via a questionnaire. The collected information is meant to help managers make decisions. The answers to the survey feedback will range from quality of work, working condition, working hours, salaries, and employees’ attitude in relation to all of the above. The team of managers proceeds to analyze and interpret the gathered data. They pinpoint problems, assess the results and start drafting plans for solutions. All the members of the organization are expected to submit this data. Manager meetings are meant to bring subordinates and superiors together in order to discuss the information and interpret it. All levels of management play an active role in this technique whose end result is implementing necessary changes. 2) Team Building Team Building is another method of organization development. This method is specifically designed to make improvement in the ability of employees and motivating them to work together. It is the organization
  • 55. development technique which emphasizes on team building or forming work groups in order to improve organizational effectiveness. These teams consist of employees of the same rank and a supervisor. This technique is an application of sensitivity training to the teams of different departments. The teams or work groups are pretty small consisting of 10 to 15 persons. They undergo group discussion under the supervision of an expert trainer usually a supervisor. The trainer only guides but does not participate in the group discussion. 3) Sensitivity Training It is quite popular OD intervention. It is also known as laboratory training. Under this unique the employees in groups are asked to interact. The aim of sensitivity training is to help people understand each other, gain insight so that they feel free, and become fearless. "Under this technique the different groups of employees are allowed to mix up with each other and communicate freely and build up interpersonal relationship. They learn the reflection of their behaviour and try to improve it. In the words of Chris Argyris, "Sensitivity training is a group experience designed to provide maximum possible opportunity for the individuals to expose their behaviour, give and receive feedback, experiment with new behaviour and develop awareness of self and of others." 4) Management By Objectives (MBO) Management by Objectives (MBO) is a strategic approach to enhance the performance of an organization. It is a process where the goals of the organization are defined and conveyed by the management to the members of the organization with the intention to achieve each objective. In simple words, MBO is a method where objectives of the organization are fixed and responsibility to achieve them lie on the managers and results are expected from them. Benefits of Management by Objectives a) Management by objectives helps employees appreciate their on- the-job roles and responsibilities.
  • 56. b) The Key Result Areas (KRAs) planned are specific to each employee, depending on their interest, educational qualification, and specialization. c) The MBO approach usually results in better teamwork and communication. d) It provides the employees with a clear understanding of what is expected of them. The supervisors set goals for every member of the team, and every employee is provided with a list of unique tasks. e) Every employee is assigned unique goals. Hence, each employee feels indispensable to the organization and eventually develops a sense of loyalty to the organization. f) Managers help ensure that subordinates’ goals are related to the objectives of the organization. MBO Process MBO process involves four major steps: a) Goal Setting by Top Management: For effective planning the organizational goals are set by the top management. These goals provide an outline or base for different departments to set their goals after making certain modifications etc. if at all necessary, b) Individual Goals: Organizational goals cannot be fulfilled by a single individual but all the members cooperative and active participation is necessary, It is therefore pertinent to assign a target to every individual and he must attain it, c) Freedom for Selection of Means: A considerable amount of freedom or autonomy is given for the accomplishment of goals to the managers and subordinates d) Making Appraisal:
  • 57. The performance is to be reviewed and appraised in relation to the goals. This will help the subordinates and employees to make the corrections if any and make further improvements. 5) Brain Storming This Organizational Development technique involves six to eight managers coming together and pitching ideas for solving a problem. Brain Storming aims to promote creative thinking, whilst bringing team leaders together and helping them engage in a lucrative discussion of fixing a common issue. The participants are required to critically assess the matter that is put forward. They are then asked to contribute new ideas or new angles on tackling the conflict. The principle behind brain storming is that managers come together and build a plan based on all of their suggestions. No expert conducts the discussions, which encourages all leaders to speak freely and make suggestions. The brain storming technique is meant to get participants to debate potential solutions and choose the best ones. All of this is done in a safe environment where members can express themselves freely. 6) Quality circles This technique requires up to a dozen team members to come together on their own accord in order to discuss important work related issues and come up with efficient solutions that can be implemented by the management team. The method that has its roots in the 60s is meant to be carried out once a week during working hours. Any team member who feels they can bring their contribution is free to join the discussion. Quality circles have been shown to heighten moral, reduce costs and boost quality in the working environment. All the success of the technique is owed to the effort of the participants who are willing to devote their time in order to pitch solutions and join forces to fix problems. 7) Process consultation An expert or an Organizational Development consultant gives feedback to the trainee and offers insight into solving problems. Process
  • 58. consultation can help team members experience a change of perspective and experiment with various problem fixing suggestions. The clear insight provided by the expert or consultant is extremely valuable since it offers both team members and top managers guidelines on how to approach, handle and tackle a wide array of work-related problems. PROCESS OF ORGANIZATIONAL DEVELOPMENT 1) Initial Diagnosis: The initial diagnosis refers to finding the inadequacies within the organization that can be corrected by organizational development activities then it is necessary to find out the professionally competent persons within organization to plan and execute organizational development activities. The outside consultants can be also employed to help in diagnosing the problems and diagnosing organizational development activities. The consultants adopt various methods and that primarily includes interviews, questionnaires, direct observation, analysis of documents and reports for diagnosing the problem. 2) Data Collection: The survey method is employed to collect the data for determining organizational climate. It also helps in identifying the behavioral problems that are rising in the organization. 3) Data Feedback: The collected data are analyzed and reviewed by various work groups that are formed for this purpose. It is done in order to intervene in the areas of disagreement or confrontation of ideas or opinions. 4) Selection of Interventions: The interventions can be described as the planned activities that are introduced into the system to achieve desired changes and improvements. The suitable interventions are to be selected and designed at this stage. 5) Implementation of Interventions:
  • 59. The selected intervention should be implemented progressively as the process is not a one shot, quick cure for organizational problems. Consequently, it achieves real and lasting change in the attitudes and behaviour of employees. 6) Action Planning and Problem Solving: To solve the specific and identified problems by using the collected data, groups prepare recommendations and specific action planning. 7) Team Building: The consultants explain the advantages of the teams in organizational development process and encourage the employees throughout the process to form into groups and teams. 8) Inter-group Development: After the formation of groups/teams, the consultants encourage the inter-group meetings, interaction etc. 9) Evaluation and follow up: The organization should evaluate the organizational development programmes and should find out their utility, and develop the programmes further for correcting the deviations. The consultants make great significance to the organization in this respect. The entire steps in the organizational development processes should be followed by the organization in order to derive full range of organizational development benefits.
  • 60. INSTITUTING TOTAL QUALITY MANAGEMENT TQM is the philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. Below are the important factors that are to be considered to institute TQM in an organisation. 1) Customer-focused: The customer ultimately determines the level of quality. No matter what an organization does to foster quality improvement training employees, integrating quality into the design process for process gains a= upgrading computer or software or buying new measuring tools the customer determines whether the efforts were worthwhile. 2) Total employee involvement: All employees participate in working toward common goals. Total employee commitment can only be obtained after fear has been driven from the workplace, when empowerment has occurred and management has provided the proper environment. High-performance work systems integrate continuous improvement efforts with normal business operations. Self-managed work teams are one form of empowerment. 3) Process-centered: A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take inputs from suppliers (internal or external) and transforms them into outputs that are delivered to customers (again, either internal or external). The steps required to carry out the process are defined and performance measures are continuously monitored in order to detect unexpected variation. 4) Integrated system: Although an organization may consist of many different functional specialties often organized into vertically structured departments(from top level to lower level management), it is the horizontal processes(lower level to top level management) interconnecting these functions that are the focus of TQM.
  • 61. CREATING TEAM BASED ORGANISATIONS Team based organizations are non-traditional organizations that rely on teams to achieve its objectives. Team-based organizations require that all employees participate in the decision-making process. A team organizational structure is meant to disrupt the traditional hierarchy, focusing more on problem solving, cooperation, and giving employees more control. Advantages of team-based organizations: 1) Increases productivity, performance, and transparency by breaking down traditional hierarchical organisations. 2) Promotes a growth mindset. 3) Changes the traditional career models by getting people to move laterally. 4) Values experience rather than seniority. 5) Requires minimal management. 6) It requires all employees participate in the decision-making process. 7) It runs more efficiently and effectively. 8) It creates competitive edge. Disadvantages of team-based organizations: 1) Lack of focus on the individual. 2) Motivating individuals in a team-based organization can be more challenging. 3) It is decentralized. 4) It leads to coordination problems for management. 5) It leads to control problems for management.
  • 62. HUMAN RESOURCE & BUSINESS PROCESS RE-ENGINEERING Business Process Re-Engineering is a management approach aiming at improvements by means of elevating efficiency and effectiveness of the process that exist within and across organizations. Re-Engineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. Differences between HR and BPR Human Resource Business Process Re-engineering 1. It is the set of individuals who make up the workforce of an organization, business sector, or economy. 1. It is the practice of rethinking and redesigning the way work is done to better support an organization's mission and reduce costs. 2. It deals with human resource management practices. 2. It deals with underlying processes to improve the efficiency. 3. It oversees an organization's human resources. 3. It aimed to help organizations fundamentally rethink. 4. Assets to the enterprise. 4. It creates value to business. 5. Value is enhanced by further learning and development. 5. Value is enhanced by further investigation. 6. Designed to maximize employee performance. 6. Designed to enhance process performance. 7. Focus towards HR policies and system. 7. Focus towards redesigning the process and system. The Relation between HR and BPR can be understood as follows: 1) Reengineering involves looking at the whole of a process which includes customers, competitors, environments, as well as human resources. 2) Reengineering means radical and often painful change. This is where the role of an HR becomes important as the job of managing change is handled by the human resources of the company.
  • 63. 3) Reengineering must come from the top. The leaders must inspire a commitment to change throughout the organization. This requires communication of the right information from the top management to the lower level employees and vice - versa. Human resources play an important role in improving communication within the organization. 4) Business process reengineering brings about huge amounts of change in the organization. New methods, equipments, softwares etc. are introduced in the management which requires large amounts of training provided to the employees by the HR 5) Reengineering requires serious introspection about what the company is trying to achieve and what job and role responsibilities will help realize the goals. This is taken up by the HR. 6) HR plays an important role in BPR by implementing the following:  Managing resistance to change.  Building a flat organization structure.  Downsizing or redeploying people.  Restructuring and reorganizing  Structuring pay scales and rewards to create the desired results.  Molding the new corporate culture.
  • 64. FLEXIBLE WORK ARRANGEMENT Flexible work arrangement is defined as any one of a spectrum of work structures that alters the time and/or place that work is done on a regular basis. It includes: 1) Flexibility in the hours worked. 2) Flexibility in the amount of hours worked. 3) Flexibility in the place of work. Flexible working is a way of working that suits an employee's needs, eg having flexible start and finish times, or working from home. The main advantages of flexible work arrangement are as follows: Employees enjoy the following advantages: (a) Flexibility to meet family needs, personal obligations, and life responsibilities conveniently. (b) Employee saves on the time to commute as well as the money to commute to office on a regular basis. (c) It helps in avoiding traffic and stress related to the same. Employers enjoy the following advantages: (a) It leads to increased employee morale, engagement and commitment towards the organization. (b) It leads to a decrease in absenteeism. (c) It allows people to work when they accomplish most, feel freshest, and enjoy working. (d) It helps in reducing employee turnover. (e) It helps in developing an image as an employer of choice with family friendly flexible work schedules.
  • 65. UNIT - 4 ESTABLISHING STRATEGIC PLANS PROF. SYED BILAL IRFAN