Why hrm 145

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Why hrm 145

  1. 1. WHY HRM??
  2. 2. NO MATTER WHAT PROFESSION…
  3. 3. PEOPLE NEED TO GET TRAINED AND MOTIVATED… TO ACHIEVE……………….
  4. 4. TARGET’S
  5. 5. <ul><li>FOR ALL THESE TO HAPPEN WE NEED TO PROPERLY MANAGE PEOPLE AND TO ACHIEVE ALL THIS WE NEED… </li></ul>H R M
  6. 6. One of the biggest problems faced by today's companies is <ul><li>High turnover…… </li></ul>
  7. 7. FACTS TO THINK ABOUT… <ul><li>• 90% COMPANIES HAVE RETENTION PROBLEMS </li></ul><ul><li>• 50% OF THESE ARE MANUFACTURING, SERVICES AND MARKETING COMPANIES </li></ul><ul><li>• THE SMALL-SIZED AND MEDIUM-SIZED COMPANIES LOSE MORE PEOPLE </li></ul><ul><li>• TURNOVER RATES ARE AS HIGH AS 7% IN MANUFACTURING AND 13% IN THE HI-TECH INDUSTRY </li></ul><ul><li>• EMPLOYEES GO TO - SMALL COMPANIES-FOR EXCITING OPPORTUNITIES AND GREATER IDENTITY / LARGE COMPANIES-FOR DEFINED ROLES, CLEARER CAREER PATHS AND BETTER HR SYSTEMS </li></ul><ul><li>---- AIMA - BT Survey, July 1999. </li></ul>
  8. 8. <ul><li>Monotony (repetitiveness) and lack of challenge </li></ul><ul><li>Lack of responsibility </li></ul><ul><li>More money </li></ul><ul><li>Lack of value-addition to career </li></ul><ul><li>Lack of good developmental projects </li></ul><ul><li>Idle(inactive) time 'sitting on the bench' </li></ul><ul><li>Lack of transparency </li></ul><ul><li>'Promises not kept' and ill-treatment </li></ul><ul><li>Organization culture </li></ul><ul><li>Lack of quality consciousness </li></ul>
  9. 9. The old goal of HR Management - to minimize overall employee turnover - RETENTION
  10. 10. needs to be replaced by a new goal: to influence who leaves and when he leaves
  11. 15. <ul><li>Ensure realistic expectations among applicants and avoid hype (i.e., do not promise a paradise) </li></ul><ul><li>Emphasize and test soft-skills in selection </li></ul><ul><li>Build good work environment, good house-keeping, open and informal culture, concierge (caretaker) services and so on </li></ul><ul><li>Share the wealth through profit-sharing etc. </li></ul><ul><li>Train in soft-skills regularly and intensively </li></ul><ul><li>Train in business skills and team-working </li></ul>
  12. 16. <ul><li>Get top management involved in training </li></ul><ul><li>Insist on sensible schedules, give breaks </li></ul><ul><li>Move up the value chain - from body shopping to programming to business solutions to product development to technology development </li></ul>
  13. 17. <ul><li>Keep structures open, flexible, non-bureaucratic through small teams in large setups </li></ul><ul><li>Ensure first rate projects in joint ventures </li></ul><ul><li>Encourage entrepreneurship in comparison with idea generators, venture capital </li></ul><ul><li>Certifications and encouraging mastery in applications </li></ul><ul><li>Inter-project, technical mobility and flexibility </li></ul>
  14. 18. <ul><li>Ideas for compensation structure : </li></ul><ul><ul><li>Up to 50% as Base pay per region, skill-set and experience </li></ul></ul><ul><ul><li>10% of Base pay as annual increment </li></ul></ul><ul><ul><li>Tax-free benefits like HRA, lunch etc </li></ul></ul><ul><ul><li>Skill up gradation reimbursements </li></ul></ul><ul><ul><li>Pay for performance - project-based profit sharing, early completion bonus etc. </li></ul></ul><ul><ul><li>Tenure-based rewards </li></ul></ul><ul><ul><li>Pay directly for facilities offered - insurance premium and not cash and so on </li></ul></ul>
  15. 19. <ul><li>In some cases, companies have found that high turnover isn't as big a problem as it appears. </li></ul><ul><li>If there's a large pool of talented employees available, it might want to focus on recruitment rather than retention. </li></ul><ul><li>since new hires have lower salaries than long-term employees, the company is able to keep a lid on compensation levels. </li></ul><ul><li>Cooperating with competitors is another way of dealing with retention. </li></ul>
  16. 20. THANK YOU

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