HR`s

Arjun Singh DeswalAnil DeokarManoj SardanaRaj ShekharRahul ThakurSubham Bansal

Topics for Discussion..

• What is Strategic HRM• Strategic HRM v/s Other areas of HRM• Strategic HRM Policies of various companies

• Fed Ex• Dell• Toyota• Coca Cola• McDonalds

Strategic HRM ...

• Strategic HRM - how the management of people in organizations relates to the ability of organizations to compete in the marketplace and, beyond this, to provide a sustainable competitive advantage.

• Amongst others, also takes care of policies, strategy, development, outsourcing, telecommuting, performance evaluation, compensation.. And aligning these with the company’s goals..

Changing Role of HR

Operational to Strategic Transformation of HR

The Strategy Part..

“Contributing at the Table” to organizational results

Change Agent : to help forecast future changes, develop systems and policies for managing human capital before, during & after the change.

HR becomes a strategic business partner by:• Focusing on developing HR programs that enhance

organizational performance.• Involving HR in strategic planning at the onset.• Participating in decision making on mergers, acquisitions,

and downsizing.• Redesigning organizations and work processes• Accounting and documenting the financial results of HR

activities.

How is Strategic HRM Different From Other Areas of HRM?

• Perspective is on the business and organizational level; competitive advantage

• Studies typically involve:– Examination of the integration or fit among HRM

practices – HRM practices and other features of the

organization– Key Investments : people, knowledge

• Most studies in the realm of strategic HRM focus on organizational performance

• Strategic HRM is organic-flexible, short, medium or long term (as required) whereas other areas of HRM may be Bureaucratic-rigid regarding roles, policies, procedures

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• One of Fed-Ex’s strategic aims : achieve superior levels of customer satisfaction and high profitability through a highly committed workforce, preferably in a non-union environment.

• Fed-Ex’s Strategic HR policies stem from this aim

FedEx was among the first few companies in the world to develop a formal HR policy which viewed employees as a means for achieving long-term growth and profitability. Framed and valued since FedEx's inception in 1973, the people-service-profit (PSP) philosophy views employees as the key contributors to the company's long term ambitions.

• Some of the policies of Fed-Ex include :

• Using various tools to build two-way communications (corporate communication program, known as the “Survey Feedback Action”)

• Screening out potential managers whose values are not people oriented

• Guaranteeing to the greatest extent possible fair treatment and employment security for all employees ('Guaranteed Fair Treatment Procedure' )

• Utilizing various promotion-from-within activities to give employees every opportunity to fully realize their potential

• The company has also devised employee development programs such as 'Job Change Application Tracking System' to provide temporary employees the opportunity to gain regular employment at FedEx

• The company's 'Leadership Evaluation and Awareness Process' gave FedEx's non-managerial employees the opportunity to seek managerial positions at FedEx.

• FedEx had also devised a succession planning mechanism – “Succession Planning Executive Education” - to groom its mid to senior management employees for top management positions

There is interplay between human resource strategy and the company’s strategic plans and results

• FedEx is considered one of the most employee-friendly companies in the world because its innovative HR initiatives. The Work Force magazine wrote, "FedEx is an example of an organization that has created an effective HR strategy that supports productivity and profitability, which distinctly sets it apart from its competitors ”

• The essence of Dell’s competitive strategy has always been to be a low-cost leader. The main challenge for Dell was the implementation of its business model and interlinking it with the human resource department. Dell’s human resource managers use various HR strategies to support Dell’s low cost aims.

• Dell’s policies include :

• Dell delivers most of its HR services not through a conventional HR department, but via the web. A manager tools section on Dell’s Intranet contains about 30 automated Web applications (including extensive search reports, hiring tools and automated employee referrals)

• The Dell employees can administer their own 401(K) plans, check job postings (internal) and monitor their total compensation statements. This reduces the number of people required, to overlook these activities and helps in cutting cost; supports Dell’s low cost strategy.

• Dell is an Equal Opportunity Employer and Prohibits Discrimination and Harassment of Any Kind. All employment decisions at Dell are based on business needs, job requirements and individual qualifications, without regard to race, colour, religion, national origin, sex (including pregnancy), age, disability, HIV status etc.

• Dell Employees Are Encouraged to Report Discrimination, Harassment, Retaliation or the Threat of Retaliation. In case of a violation, the person can contact his/her manager, Human Resources representative, the Office of the Ombuds (if available), the Global or Regional Ethics Office, or the Ethics Helpline at 1-888-888-9975

"Because people make our automobiles, nothing gets started until we train and educate our people.“

“Toyota seeks to develop human resources through the activity of making things. Toyota believes that the development of human resources requires the handing down of values and perspectives. In conjunction with the geographic expansion of business and the growth of business areas, undertaking global actions for the development of human resources has become a priority issue”

• At Toyota, it is the diversity of the workforce and the HR policies that enable it to create a sustainable advantage over its competitors.

Some of Toyota’s policies include:

• Toyota does not have a manufacturing facility that is unavailable to Ford or Honda, so why is Toyota’s cars more efficient and of better quality? The answer : the people behind the making of the cars. - Small teams of carefully selected, highly trained workers inspecting and assessing their own work, selecting their own team members, interacting with engineers and suppliers to improve components. - A full week of employee screening and testing at the start; 3 weeks of annual training- Team based rewards that incentivize the assembly teams to self manage their own performance

• Some other policies include:

• Work Groups and Team Problem Solving: At Toyota the old adage, "All of us are smarter than any of us," is truly practiced on a daily basis. People are organized into work teams with team leaders and review daily progress, taking problems as opportunities for kaizen.

• Clean and Safe Workplace: health and safety system reflects company policy and compliance with laws and regulations. Have “health and safety committees” that respond within the same day that a health or safety issue materializes.

• Two-Way Communication and Visual Management: “T-Book” is a tool for employees to be constantly in touch with their immediate superiors on the go. Also have a kind of in-house yellow pages which has contact details, birthdays, anniversaries, promotion details etc of each and every employee of Toyota throughout the world

• Hoshin-Kanri (Policy Deployment): Toyota's continuous improvement is driven by “hoshin-kanri”, also referred to as policy deployment, a system of setting objectives for improvement, starting at the very top of Toyota and coming to agreements at every level down to the team member.

Each employee has a hoshin - specific measurable objectives that

are reviewed throughout the year. When all team members feel like they are a valued long-term part of a team whose fate is tied to the fate of the company, hoshin-kanri is a powerful mechanism for converting their energy into exceptional levels of performance.

• Toyota Institute : In January 2002, the Toyota Institute was established as an internal human-resource development organization that aims to reinforce the organic integration of global Toyota companies by way of sharing the Toyota Way as well as to promote self-sufficiency. Training modules are set as benchmarks.

• Coca-Cola believes that delivering superior performance needs superior capabilities.

• HR policy is designed in line with this approach and based on attracting and retaining the talented people and developing them continuously.

• All human resources processes, starting with recruitment, are based on competencies and are designed so as to develop the competency level of employees and managers.

• They encourage employees to be success oriented, innovative, inclined to teamwork and problem solving, focused on customer and quality and to have high cogency

Some of Coca Cola’s Policies :

• The remuneration system and career management systems are structured on job family model. As a part of career management system, internal placement process is used so as to give the employees career and job enrichment opportunities.

• “Developing Employees” is one of the primary issues for both human resources department and line managers. All managers are continuously trained on “How to Develop People”. The employees’ business objectives and competency levels are followed up by performance management system.

• Coca Cola believes that an “Open Door Policy” is the best policy for the employees relations because due to this, the employees feel very independent.

• Successful and potential employees are reviewed at talent review meetings done both at functional and executive talent review meetings and they are prepared for next steps with individualized development programs.

• Other Features such as :-

- The Coca-Cola Asian/Pacific-American Forum

- The Coca Cola Women’s Forum

- Mentoring Programs (one-on-one, group mentoring)

- “Happy we, Happy you” programs (motivational program in

line with the company’s image. Indirect focus on business)

“ In order to be competitive, McDonald needs HR people with full-range experience and talents, and the skills in recruitment and retention. We believe that in this competitive environment , employee performance management, development and reward and sound appraisal mechanisms are what distinguishes us from the rest. It is our competitive secret”

- James A. Skinner (CEO, McDonalds

Corporation)

• Recruitment and Retention : Got help from IBM, Ford, and GM, to bargain with the insurance companies to provide a lower rates for employees, McDonald's new plan, called "Affordable Healthcare Solutions", attracts more people to join the workforce and keep talents within the corporation.

• 30 to 40 % of the chain's operators buy into McDonald's corporate umbrella health care plan for hourly workers, and 75 percent of franchisees are part of a coop that provides management medical coverage.

• The McDonald's UK division also pioneered on-street information kiosks, called 'iPlus Points', for recruitment advertising.

Both strategies fit the McDonald's way of doing thing fast and efficiently

• McDonalds “McJobs employment program” also helps assist mentally and physically challenged individuals; the “McMaster program” recruits, trains, and retain people aged fifty-five and over.

• Once the workers are hired, the corporation uses an upgraded orientation process to help new employees acclimate, which reduces the number of new hires who leave before completing three months on the job.

Performance Management, Development and Reward : • McDonald's is improving its corporate training and employment

development. The corporation has a “LAMP” (Leadership at McDonald's program) program for higher potential managers that help them build leadership, team, and organization. It also includes action learning, emphasizing on innovation in restaurant process.

• There is also a "Plan to Win" program, in which corporate headquarters provides each country manager with a menu of business principles to focus. The principles include customer service, marketing, or restaurant reimaging.