HUMAN RESORCE MANAGEMENT

SEMINAR NOTES ON :- TQM, Quality Circle, Effect of downsizing, HRM in multinational corporation, human resource

Accounting, OUTSOURCING, introduction to facility management

PREAPERED BY :- Adhil M M

Sabir J S

Saranya Chandran

Swathy Sathyan

TOPIC :-

TQM , QUAILTY CIRCLE , HUMAN RESOURCE ACCOUNTING, EFFECT OF DOWNSIZING, HRM IN MULTI NATIONAL CORPORATION, OUTSOURCING,

INTRODUCTION TO FACILITY MANAGEMENT.

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INDEX

Serial number Content Page number

12

3

4

5

6

78

910

INTRODUCTIONTQM

OBJECTIVES Components BENEFITS

QUALITY CYCLE OBJECTIVES BENEFITS PROBLEMS REQUIREMENTS OF EFFECIVE

QUALITY CYCLEHUMAN RESOUCE ACCOUNTING

IMPORTANCE OBJECTIVES LIMITATIONS

DOWNSIZING PHASES OF DOWNSIZING METHODS OF DOWNSIZING IMPACT OF DOWNSIZING BENEFITS ALTERNATIVES ETHICAL DOWNSIZING

OUTSOURCING ADVANTAGES DISADVATAGES PROBLEMS TYPES OF OUTSOURCING

HR IN MULTI NATIONAL CORPERATIONSINTRODUCTION TO FACILITY MANGEMENTSUMMARYCONCLUSION

45-7

7-10

10-14

14-17

18-20

20-2222-29

30-3435

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INTRODUCTION

Human Resource is very critical for the success of any organisation. Human beings are a resource to an organisation but it is the living resource which cannot be equated with the other resources which are unanimated. Human resources add to the value while all other resources add to the cost. All the firms buy the same material and machines but it is the people in the organisation who built it and makes differences in the ultimate product. The human being never reaches an ultimate value throughout his life time at work which other resources reaches to an ultimate value throughout his life time at work which other resources reaches to an ultimate value it starts producing. Thus, the management of human resource is a very complicated and challenging task for those who are entrusted with the successful running of an organisation and this implies considerable knowledge by various aspects of human resources management.

According to DALE YODER, “Personal management is that phase of management which deals with the effective control and use of man power as distinguished from other sources of power”. Seminar note contains detail notes on TOTAL QUALITY MANAGEMENT, QUALITY CIRCLE ,HUMAN RESOURCE ACCOUNTING , OUTSOURCING ,DOWNSIZING , HRM IN MULTI NATIONAL CORPORATION and INTRDUCTION TO FACILITY MANGEMENT which are act as an important elements to considered for the effective human resource management.

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Total Quality Management (TQM)

Definition

According to Sashkin and Kiser,” Total Quality Management may be defined as creating an organisational culture committed to continuous improvement of skills, teamwork, processes, product and service quality and customer satisfaction”

TQM refers to meeting the requirements of customers consistently by continuous improvement in the quality of work of all employees. For achieving total quality, three things are essential:-

Meeting customer’s requirements; Continuous improvement through management process; Involvement of all employees.

OBJECTIVES OF TOTAL QUALITY MANAGEMENT

Meeting the customer’s requirements is the primary objectives and the key to organisational survival and growth.

Is the continuous improvement of quality. TQM aims at developing the relationship of openness and trust

among the employees at all levels in organisation.

COMPONENTS OF TOTAL QUALITY MANAGEMENT

There are three essential elements of TQM . They are :-

1. CUSTOMER ORIENTATION :-

TQM aims at satisfying the requirements of customers which never remains constant , but keep on changing with the change in time, environment, circumstances , fashion, etc... Thus, meeting the change requirements of customers is a continuous goal of producer.

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2. CONTINUOUS IMPROVEMENT :-The change in the customer’s requirements may be in terms of desire for better quality of product / services, bigger size, reduced cost , etc. So a producer has to cope with these requirements . The production process has thus to be attuned and accelerated to meet these changing requirements.The advancement of technology is another important factor in improving the quality. The innovations in a particular field may cause some of the existing technologies to become obsolete and as a result the survival of the producer not adopting technological advancements would become very difficult.

3. EMPLOYEE’S INVOLMENT :-

TQM requires a continuous improvement in quality of products. This calls the improvement in the quality of work of employees through training and development . The enhancement of skills of employees will not only improve quality, but also bring down the cost of production through efficient use of machines and materials and reduction of wastage

The employees must also be conscious about the need for improvement in the quality of work . Quality circle is an outstanding example in this regard. It is because of employee’s involvement of quality that TQM is referred to as people’s process.

NEEDS AND SIGNIFICANCE OF TOTAL QUAITY MANAGEMENT

Total Quality Management is the need of all modern organisations. This realisation first came in Japan where it was felt that quality cannot be ensured by inspection and test alone; every department and the individual had a role to play in achievement of quality. Thus, ‘Quality Control” which was basically restricted to testing and inspection of the end – product gave way to ‘Quality Assurance’ . In addition to inspection of the product, quality assurance also involved the inspection of the production process and equipment.

The following benefits can be derived from a sound TQM programme:-

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Total Quality Management brings quality consciousness in the enterprise which encourages production of quality product.

TQM helps in providing greater satisfaction to customer by meeting their requirements. If the customer is satisfied, the sales will increase.

It creates a good public image of the enterprise by helping it to provide goods and services of higher quality to the society.

There is better utilisation of materials, machines, capital, human resource, etc...

Wastages are reduced to the minimum. As a result, cost of production is reduced and profitability is increased. Even the customers could be provided goods at lower prices. The competitive position of the firm in the market is improved.

The employees are committed to higher quality and feel highly motivated. Their morale is also higher because of the public image of the firm and its goodwill in the market.

QUALITY CIRCLE DEFINITION

A quality circle is a small group of employees doing similar or related work who meet regularly to identify , analyse and solve product quality problems and to improve general operations.

KEY FEATURES OF QUALITY CIRCLE

A. A quality circle is a voluntary group.B. It represents a collective effort.C. It intends to improve the quality of output.D. It coordinates the activities of members towards improving

the quality of work in the work shop.E. It facilitates frequent meetings and discussions of members

for improving quality.F. It has no discrimination against age, sex and position.

OBJECTIVES OF QUALITY CIRCLEThe main objectives of quality circle are as follows :-

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Overall improvement of quality of products manufactured by the enterprise.

Improvement of production methods and productivity of the enterprise.

Self – development of the employees who take part in quality circles.

Encouragement of innovative ideas among the employees.Building high morale of employees by developing team

BENEFITS OF QUALITY CIRCLES Quality circles lead to the following benefits for the organisation:-

Formation of quality circle in Japan and other countries has helped in bringing out several innovations and changes in work methods and products.

Quality circles have proved to be a valuable tool for increasing productivity, improving quality and increasing worker’s job satisfaction.

Membership in a circle means a participative environment that provides identification with work- group. Participation encourages commitment of the employees in producing quality products. Through quality circles, every one becomes involved with the operation of the company. Everyone from top to bottom works towards a single goal, i.e.; success through quality.

Quality circles help in the development of the participants as they are encouraged to produce innovative ideas and learn the ways to improve product quality.

Quality circles provide opportunities for better understanding among the members.

Quality circles create awareness of the potential of the workers.

PROBLEMS IN IMPLEMENTATON OF QUALITY CIRCLES

There are several pitfalls in quality circles. Despites their merits , they have failed in many companies . The common hurdles in initiating quality circles in India are as under :-

a. NEGATIVE ATTITUDE :-

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The employees and even managers may have negative attitude towards the quality circle. Naturally, they will resist its implementation. The wrong notions of the people about quality circles should be cleared. They should be properly informed about the concept of quality circle and its utility.

b. LACK OF ABILITY :-The workers in India have a low level of education and also lack of initiative. To overcome this hurdle, Worker’s Education Programme should be initiated. It must educate the workers about quality circle.

c. LACK OF MANAGEMENT COMMITMENT :- The top management may not be committed to the concept of quality circle. The employees may not be allowed to hold meetings of quality circles during the working hours . Under such situations, the employees will be lest interest in devoting their personal time to quality circle. Therefore, the management should allow the workers to hold quality circles meetings periodically during the working hours . It should also extent the assistance required by the quality circle for the smooth working.

d. NON_ IMPLEMENTATION OF SUGGESTIONS :- The workers will feel disheartened if their suggestions are turned down by the top management without any reason . The suggestions of each quality circle should be given due weight age. If they are likely to improve quality of products , they must be implemented. This will enthuse the members of the quality circle.

REQUIREMENTS OF EFFECTIVE QUALITY CIRCLE For increasing the effectiveness of quality circles, the following guidelines should be followed :-

a) The employees who are concerned with quality should be encouraged to come forward on their own to suggest ways and means to improve upon it.

b) The QC members must be given adequate training in the area of statistical analysis to facilitate information processing.

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c) Since the members of quality circle have to work in groups, an understanding of group dynamics also necessary. Additionally, they should develop a problem solving approach.

d) The members should feel independent to choose any problem which they feel is most crucial. In addition, they should be free to implement and monitor the result s.

e) Each quality circle should have a number of meetings and discussions. Hence facilitates for such meetings should be provided without any hindrance. In other words, quality circles must have the support of top management.

HUMAN RESOURCE ACCOUNTING

DEFINITION M N Baker defines Human Resource Accounting as , “ Human resource accounting is the term applied by the accountancy profession to quantify the cost and value of employees to their employing organization”.In short , Human resource accounting is the art of valuing , recording and presenting systematically the worth of human resource in the book of accounts of an organisation. The definition brings out of the following important characteristics features of human resource accounting :-

i. Valuation of human resource .ii. Recording the valuation in the book of account .

iii. Disclosure of the information in the financial statements of the business.

IMPORTANCE OF HUMAN RESOURCE ACCOUNTING

Human resource accounting provide useful information to the management , financial analyst and employees as stated below-

Human resource accounting helps the management in the employment , location and utilisation of human resources .

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It helps in designing the transfer, promotion ,training and retrenchment of human resource .

It provide basis for planning of physical assets visa-a-vias human resources.

It assists in evaluating the expenditure incurred for imparting future education and training in the employees in terms of the benefits derived by the firm.

It helps to identify the cause of high labour turnover at various levels of taking preventive measures to contain it .

It helps in locating the real cause for low returns on investment, like improper or under- utilization of physical assets or human resource or both.

It helps in understanding and assessing the inner strength of an organisation and helps the magnet to steer the company well through most adverse and unfavourable circumstances.

It provides valuable information of persons interested in making long term investment in the firm.

It helps employees in improving their performance and bargaining power. It makes each of them to understand his contribution towards the betterment of the firm visa-a-visa the expenditure incurred by the firm on him.

OBJECTIVE OF HUMAN RESOURCES ACCOUNTING The main aim of HRA is to depict the potential of HR in monetary terms, while casting the organisation’s financial statements. The concept can be examined from two dimensions :-

a) The investment in HRb) The value of HR

The expenditure incurred from recruiting, staffing and training and developing the HR quality is the investment in HR . The fruits of such investment are increased productivity and profit to the organisation . The yield that the investment generates is considered aa the basis for HR values.Putting in a capsule the main objectives of HRA are to :-

Improve management by analyzing investment in HR. Consider people as its assets . Attract and retain qualified people Profile the organisation in financial terms.

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The basic objective of HRA is to facilitate the efficiency of human resource. It is basically adopted to treat human resource as assets, to generate human data about human resources, to assign value to human resources and to present human assets in the balance sheet.

THE MAIN OBJECTIVE OF HR ACCOUNTING SYSTEM ARE AS FOLLOWS :-

1) TO furnish cost value information for making proper and effective management decisions about acquiring, allocating , developing and maintaining human resources in order to achieve cost effective organisational objectives.

2) To monitor effectively the use of human resources by the management.

3) To have an analysis of the human assets i.e.; whether such assets are conserved, depleted or appreciated.

4) To aid in the development of management principles, and proper decision making for the future by classifying financial consequence, of various practices.

5) In all, it facilitates valuation of human resources, recording the valuation in the books of account and disclosure of the information in the financial statement .

6) Further, it is to help the organisation in decision making in the following areas :-

Direct recruitment Vs promotion . Transfer Vs retention Retrenchment Vs Retention Impact on budgetary controls of human relations and

organisational behaviour . Decision on relocation of plants , closing down existing units

and developing overseas subsidiaries, etc. LIMITATION OF HUMAN RESOURCE ACCOUNTING.

There are many limitations which make the management reluctant to introduce HRA . Some of the attributes are :-

There is no proper clear cut and specific procedures or guidelines for finding cost and value of human resources of an organisation . The systems which are being adopted have certain drawbacks.

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The period of existence of human resource in uncertain and hence valuing them under uncertainty in future seems to be unrealistic.

There is a fear that HRA may dehumanise and manipulate employees .

The much needed empirical evidence is yet to be found to support the hypothesis that HRA as a tool of the management facilitates better and effective management of human resources.

In what form and manner, their value to be included in the financial statement is the question yet to be classified on which there is no which there consensus in the accounting profession .

As human resources are not capable of being owned, retained and utilized, unlike the physical asset, there is no problem for the management to treat them as assets in the strict sense.

There is a constant fear of opposition from the trade unions as placing a value on employees would make them claim rewards and compensations based on such valuation.

There is no universally accepted method of human asset valuation. In spite of all its significance and necessity, tax laws do not

recognize human being as assets. As far as our country is concerned human resource accounting is

still at the development stage . Much additional research is necessary for its effective application.

DOWNSIZING

Downsizing means a reduction in the number of employees, levels of management and overall size of the company in order to increase profitability or reduce costs.

DOWNSIZING PHASE o PHASE -1

During the early 199os, downsizing was undertaken by successful companies as a purposeful strategy : not only the companies reduced their workforce, but also redesigned their organisations and implemented quality improvement programs. Focus on enhancing the value of the organisation as a whole.

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Companies taking uo downsizing to :-

Reduce costs Become more competitiveOptimise resourceImproving decision makingIncreasing the speed and responsivenessImprove productivity

o PHASE -2

Downsizing was on the rise in the early 21 st century due to :-

Worldwide economic recessionIncrease in the global competitionDynamic changes in technologyIncrease in the availability of temporary employee base( lean manufacturing and out sourcing)Wage reduction

DOWNSIZING STRATERGIES. Early retirement offers like early separation schemes. Transfers Outplacements Attrition Layoffs

METHODS OF DOWNSIZING

Termination For Cause(TFC) Termination as a result of unlawful behaviour, breaking company polices ,conflict of interest, etc.

Performance- Based Termination (PBT) Termination based on track record/ history of poor performance, failure to deliver on job responsibilities or against business/position objectives.

Surprise/emergency Layoffs(SL)

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Termination of several employees based on business needs executed without appropriate planning/analysis.

Planned reduction in work force (Downsizing or RIWF) Termination of several employees based on business needs carefully executed based on appropriate planning and in- depth analysis.

IMPACT OF DOWNSIZING

I. ON EMPLOYEES

Employee motivation disrupted :- Increase in political behaviours, anger, fear- which is likely to negatively impact quality of customer service.

Violation of psychological contract, leads to cynicism, lowered work commitment, fewer random acts of “good will”.

“Survivors” experience more stress due to longer work hours with re- designed jobs, and increased uncertainty regarding future downsizing.

II. WORK FORCE QUALITY

Many senior employees leave due to application of early retirement incentives: result is loss of institutional memory.

The use of voluntary workforce reduction(buyouts) results in the most marketable employees leaving (“stars”)- difficult to control since all employees must be legally eligible to qualify.

Early retirement and voluntary reductions often result in too many people quitting, and some are hired back as consultants at higher cost to firm.

BENEFITS AND COSTS OF DOWNSIZING

A. BENEFITS OF DOWNSIZING Reduce costs Symbolism of cutting jobs

B. COSTS OF DOWNSIZING

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Cost associated with downsizing Potential law suits Public image of firm Decreased loyalty of current employees Danger of losing the wrong people Difficulties in recruitment

ALTERNATIVES TO DOWNSIZING

Prevent the need of staff with contingent workers. Treat employees as assets.....

Reassign workers to different jobs within firm. Retrain workers in new technologies Shorten hours/ pay cuts.

When there is no alternative some less painful options Attrition Early retirements Layoffs( temporary) Voluntary severance

SURVIVORS ARE THE KEY – DON’T NEGLECT THEM

The success or failure of a downsized organisation depends on the remaining employees.

Don’t communicate that survivors are fortunate to keep their jobs in the difficult business environment.

Many survivors behave in dysfunctional ways after the event including falling victim to “ survivor sickness”, whose symptoms include decreased effort and creativity and increased fatigue and resentment.

Survivors are critical to your organisation’s future, so take care of them and acknowledge that there will be increased workloads, which help them to adjust them.

ETHICAL DOWNSIZING – LESSONS TO BE LEARNED

Each employee to be laid off should be told personally, however difficult that may be.

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The conversation should be done privately – in the manager’s office with the door closed and certainly not within earshot of others

The manager must give the employee his full attention . The impulse to allow interruptions and to turn to other matters may exist, but downsizing with integrity is one of the most important obligations a manager has.

The manager should be honest, but not brutally so. One reason is a possible law suit by the employee.

The manager should not rush . The employee is entitled to believe the manager cares and is sympathetic.

Continuous motivation to boost employee morale. Incentive and compensation planning.

OUTSOURCING

Outsourcing denotes the continuous procurement of services from a third party, making use of highly integrated processes, organizational models and information systems.

DEFINITIONDAVE GRIFFITHS ,” The strategic use of outside resources to perform activities traditionally handled by internal staff and resources ”

TOP REASONS FOR OUTSOURCING.

Reduce CostsFocus on coreImprove QualityIncrease speed to marketConserve CapitalFaster Innovation

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KEY AREAS OF OUT SOURCING

Information technology/ IT solution. Call centres Finance and Accounting out sourcing Procurement Outsourcing Textiles Manufacturing Human Resource management.

ADVANTAGES OF OUT SOURCING Cost effective. Skill expertise Time zone difference Focus on core competencies Increase productivity and efficiency Distribution of risk Improving customer service Better people management Access to world –class solution.

DISADVANTAGES OF OUT SOURCING Loss of managerial control Hidden costs Threat to security and confidentiality Quality problems Tied to the financial well- being of another company Bad publicity and ill will Lack of customer focus Lose talent within your company Linguistic barriers.

PROBLEMS WITH OUTSOURCING Loss of control Increased cash outflow Confidentiality and security Selection of supplier Too dependent on service provider

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Loss of staff or moral problems Time consuming Provider may not understand business environment Provider slow to react to change in strategy.

TYPES OF OUTSOURCING1) BUSINESS PROCESS OUTSOURCING {BPO}

BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions or processes to a third – party service provider.

2) KNOWLEDGE PROCESS OUTSOURCING{KPO} KPO describes the outsourcing of core business activities, which often are competitively important or form an integral part of company’s value chain. Therefore KPO requires advanced analytical and technical skills as well as a high degree of proprietary domain expertise.

3) LEGAL PROCESS OUTSOURCING{LPO} LPO refers to the practise of a law firm or corporation obtaining legal support services from an outside law firm or legal support services company. This process has been marked by practice of outsourcing any activity except those where personal presence or contact is required.

4) RECRUITMENT PROCESS OUTSOURCING {RPO} RPO is a form of business process of outsourcing (BPO) where an employer outsource or transfer all or part of its recruitment activities to an external service provider.

5) ENGINEERING PROCESS OUTSOURCING {EPO} EPO offers global consulting and out sourcing services providing end to end services in the areas of engineering and technical process outsourcing.

HRM IN MULTI NATIONAL COR PORATION

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HRM is a strategic function concerned with recruitment, training and development, performance appraisal, communication and labour relations. HR policies guide the various functions of HRM. The need for a particular type of HRM is determined by the need for standardization or adaptation.

Managing human resources in an international context is more complex than in a domestic set up because of the many difference between the headquarters and the subsidiaries. The HR policies of certain companies seems to discriminate on the basis of religion, race ,caste ,sex or nationality. Companies like Ford and Volvo, however, strive to maintain equality in work and pay.

Staffing is an important aspect of HRM . The staffing policies of MNCs are determined by their approach to globalisation. MNCs with an ethnocentric approach fill all top management positions with home country nationals to ensure that home country practices are replicated in subsidiaries. Companies that adopt a polycentric approach to globalisation, fill all senior management position with local nationals to ensure maximum adaption to local conditions.

Companies that adopt a geocentric approach to globalization, identify managers irrespective of their nationality for various international assignments to ensure that best practices are identified and replicated in all units of the organization. Managers belonging to a particular country and working in another country called expatriates.

The selection , training, period of stay abroad, compensation and repatriation of expatriates are delicate issues that have to be managed by the HR department . On their repatriation, they must be provided suitable challenging assignments that give them the autonomy they have become accustomed to. Since maintaining expatriate manager is expensive, a company must develop local talent.

Companies can identify and develop local talent through in house Management Development Programs {MDP}. These programs will help improve the coordination between employees with diverse cultural, religious and educational backgrounds. Performance appraisal is another activity where there can be difference of opinion between headquarters and subsidiaries.

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Subsidiary managers must be involved in setting of unambiguous targets and the establishment of criteria for measuring performance. Performance Management attempts to link performance appraisal to employee training and development , and possibility to compensation. There are three theories concerning the autonomy of subsidiaries in decision making.

They are : limited autonomy, variable autonomy and negotiated autonomy. According to the theory of limited autonomy, the degree of autonomy will depend on the MNC’s approach to globalisation. The theory of variable autonomy states that the degree of autonomy varies with the degree of internationalization of the company.

Companies that adopt an export strategy can afford to have centralized decision making whereas strategic business unit (SBU) will require decentralized decision – making. According to the theory of negotiated autonomy, the degree of autonomy of a subsidiary will depends on its ability to negotiate with headquarters.

HRM plays an important role in maintain harmonious industrial relations. Certain companies are often intimated by the strength of the union and the political support it enjoys. Certain companies like Volvo ensure cordial relations with the labour union by actively participating in their development.

INTRODUCTION TO FACILITY MANAGEMENT

INTRODUCTION In the final decade of the last millennium, the facility management (FM) industry emerged as one of the fastest growing sectors. Now a days, the importance of FM is readily acknowledged in many companies which recognise the necessity of properly managing elaborate and expensive support facilities. The tasks are multi-disciplinary and cover a wide range of activities, responsibilities and knowledge because every aspect of an organisation will come under the purview of FM.The IFMA model of a triangle of ‘Ps’ sums up facility management concerns in today’s work place :

PEOPLE,PROCESS

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and PLACE. These three factors are interdependent and have direct reciprocal relationships. As ARMSTRONG pointed out , “ we know there is a need to manage the physical environment in concert with people and job processes”. FM finds management solutions by positioning itself at the intersection of these three factors( figure 1). This strategy makes sense, since people , process and place are the three main factors of organisations and FM involves the whole organisation. The position of FM at centre implies enhanced cooperation among the key factors in any organisation . However, FM is most active with factors relating to place.

Figure 1: Triangle of P’s and FM.(source : IFMA)Successful FM leads to work places which better support the flow of productive processes while adding value and reducing costs .The scope, range of services, activities, responsibilities, skills and knowledge of facility management are all intended to better integrate existing organisational factors. This essay describes the current scope of the discipline at both operational and strategic levels. The future scope of FM is also considered, taking into account organisational factors, current conditions and the impact of future innovation and change.

THE CURRENT SCOPE OF FMHow FM works in an organisationThe current scope of FM is made clear in the framework suggested by KINCIAD(1994), which describes many aspects of management practice. Kincaid sees FM as a support role or service, part of the organisation’s non-core business, and service, the needs of primary activities or core business. The function of Fm is to reconcile, through time ,these demand and supply aspect in the organisation . In the IFMA model, FM works in the area of place ,but with obligations to support the needs of the people and processes associated with those places.

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Figure2: Relationships among place, people, processes and FM in an organisation

The facility manager, with place as the central focus of his or her field ofconcerns, has two key roles. The first involves using the organisation’s capital resources, especially property, physical plant and facilities. The second means managing the organisation’s support services, both routinely and in emergencies.These two management roles integrate three main activities:1. Property management (real estate);2. Property operations and maintenance;3. Office administration.

The operational and strategic levels of FMBarrett and Owen (1992) divide FM into two broad categories by functionanalysis: Operational or implementation functions Management functions

Operational or Implementation functionsOperational activities are day-to-day or routine support functions involvingworkers. Activities include the operation and upkeep of overall physicalresources in order to maintain the good condition and appearance of the work place, to add value to physical resources, and to provide a safe and healthy environment for the organisation’s primary activities. Tasks at this level have a relatively short-term scope, and involve specific processes, simple and direct, such as cleaning, replacing, repairing, redecorating, grounds-keeping etc. Secure arrangements for such routine operations and services are the bedrock of good FM practice (Nutt, 2002).

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Management functionsManagement functions can be distinguished at tactical and strategic levels.Tactics are action plans involving routine, specific and short-term preventive or managerial operations. (Johnson & Scholes, 2002). Such activities, which are best kept simple, focus, for example, on routine actions such as safety procedures for prevention or proper use and care of maintenance resources. Activities on this level support responsible behaviour in the workplace and the continuity of working conditions.

At the strategic level there is consultation and non-routine planning aimed at making the best, long-term use of the organisation’s physical resources and overall facilities. Johnson & Scholes (2002) see management strategy as dealing with the complexities of ambiguous, non-routine situations which can affect the direction and future of the whole organisation. Strategic decisions demand an integrated approach since the entire organisation should move, in unison, in the same development direction. Tactical and operational levels depend on policy direction from strategic planners. The field of tasks envisioned by strategists appears sophisticated and complex, because many processes and people are involved and many aspects of the organisation must be orchestrated.

Strategy is needed to cope with the prospect of an unknown and changingfuture since it may generally be said that “the further we look ahead, the more uncertain we become” (Nutt, 2002-03). Although long term forecasting can only hypothesise about the future, strategic planning aims to reduce uncertainty by choosing a preferred path and a reasonable long term direction for the development of the organisation (Nutt, 2002)Strategic overviews have two objectives (Nutt, 2002-03):

Negative aims (Reactive): to reduce risk and constraint, and to avoidfailure and undesirable outcomes;

Positive aims (Proactive): to increase opportunities and advantages;to achieve success; to increase value; and to achieve desirableoutcomes.

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Figure 3 : How FM is carried out

Support activities in facility management can thus provide both short andlong-term support, carrying out specific tasks at operational levels andconceiving projects and plans from policy and strategy, as well, with a view to what lies ahead in the distant future.

The relationship of management and operational functionsBecause FM is management led, operational activities are expected to follow directives from the top. However, the two functions are understood to be equally important. Operational and strategic concerns are interrelated and must be developed in parallel (Nutt, 2002) to address both existing and outsourced supplies. Strategy is the compass which leads toward appropriate facilities development. Tactics and operations are the practical means propelling the organisation toward its objectives. The functions are mutually dependent. A good relationship between them helps the organisation move toward its goals with a peaceful, safe and stable work environment.

Thompson (1990) supported this approach with an analogy using computer language. ‘Software’ represents the strategic level of facilities planning and general/office services. The operational level is figured as the ‘hardware,’ including, for example, real estate, building construction and building operations and maintenance. The correct choice of ‘software’

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enables hardware’ to function. That is, the right management plan enables the best facilities implementation.

Categorising FM activities in operational and strategic levels links with Kincaid (1994)’s three main strands of integrated activity;

1. Property management:strategic activities;

2. Property operations andmaintenance activities:operational functions;

3. Office administration:tactical activities

Fig 4:The types of tasks and activities categorized by function and FM task characteristics

Kincaid (1994) concluded that these three disparate sets of complementaryactivities can be effectively integrated only with an impressive array ofdramatically different skills, a vast information base, and a full management range which covers everything from routine operations to long-term strategy.

Kincaid (1996) identified three distinctive characteristics of FM as follows:1. Facility management takes a support role within an organisation, or

provides a support service to the organisation.

2. FM must link strategically, tactically and operationally to other support activities and primary activities in order to create value.

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3. The managers must be reasonably knowledgeable in terms of facilities and management.

Integrating FM in an organisationFM activities are relevant to the various aspects and dimensions of organisations. This means that managers need to have an intimate understanding of how the organisation works (Kincaid, 1994). To create and implement FM strategy, planners need to understand all dimensions of the organisation. Four basic dimensions can be posited (Nutt, 2002-03):

1. The purpose of the organisation, its vision, mission, objectives, corecompetency and goals.2. The processes of work, operations and projects.3. The environmental context, organisational behaviour, culture and market.4. The product(s), infrastructure, property and facilities.

A clear understanding helps shape appropriate FM strategy and plans, andsupports the use of the processes and operations most suited to each organisation in its existing property and facilities.

Johnson & Scholes (2002) emphasise that each aspect in itself is importantbut none is adequate alone. The manager who aspires to manage or influence strategy must be able to see a larger picture. A perception of the whole rather than just the parts is critical.Organisational culture, technological change, and global competition inevitably affect FM, and an integrated view from a business perspective is indispensable .

The range of FM knowledgeKincaid (1994) stated that FM is not simply the practice of managing the various support services in an organisation. Facilities management should integrate knowledge of both facilities and management in order to work effectively. Concerns about support services for operations and activities should be driven by appropriate, relevant and adequate knowledge of facilities and management.

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Figure 5: Integrated FM in practice, four components

SUMMARY

According to Sashkin and Kiser,” Total Quality Management may be defined as creating an organisational culture committed to continuous improvement of skills, teamwork, processes, product and service quality and customer satisfaction”

OBJECTIVES OF TOTAL QUALITY MANAGEMENT Meeting the customer’s requirements is the primary objectives and

the key to organisational survival and growth.

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Is the continuous improvement of quality. TQM aims at developing the relationship of openness and trust

among the employees at all levels in organisation. COMPONENTS OF TOTAL QUALITY MANAGEMENT

CUSTOMER ORIENTATION CONTINUOUS IMPROVEMENT EMPLOYEE’S INVOLMENT :-

NEEDS AND SIGNIFICANCE OF TOTAL QUAITY MANAGEMENT

Total Quality Management brings quality consciousness in the enterprise which encourages production of quality product.

TQM helps in providing greater satisfaction to customer by meeting their requirements. If the customer is satisfied, the sales will increase.

It creates a good public image of the enterprise by helping it to provide goods and services of higher quality to the society.

There is better utilisation of materials, machines, capital, human resource, etc...

Wastages are reduced to the minimum. As a result, cost of production is reduced and profitability is increased. Even the customers could be provided goods at lower prices. The competitive position of the firm in the market is improved.

The employees are committed to higher quality and feel highly motivated. Their morale is also higher because of the public image of the firm and its goodwill in the market.

A quality circle is a small group of employees doing similar or related work who meet regularly to identify , analyse and solve product quality problems and to improve general operations

OBJECTIVES OF QUALITY CIRCLEThe main objectives of quality circle are as follows :-

Overall improvement of quality of products manufactured by the enterprise.

Improvement of production methods and productivity of the enterprise.

Self – development of the employees who take part in quality circles.

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Encouragement of innovative ideas among the employees.Building high morale of employees by developing team

REQUIREMENTS OF EFFECTIVE QUALITY CIRCLE BENEFITS OF QUALITY CIRCLES Quality circles lead to the following benefits for the organisation:-

Formation of quality circle in Japan and other countries has helped in bringing out several innovations and changes in work methods and products.

Quality circles have proved to be a valuable tool for increasing productivity, improving quality and increasing worker’s job satisfaction.

Membership in a circle means a participative environment that provides identification with work- group. Participation encourages commitment of the employees in producing quality products. Through quality circles, every one becomes involved with the operation of the company. Everyone from top to bottom works towards a single goal, i.e.; success through quality.

Quality circles help in the development of the participants as they are encouraged to produce innovative ideas and learn the ways to improve product quality.

Quality circles provide opportunities for better understanding among the members.

PROBLEMS IN IMPLEMENTATON OF QUALITY CIRCLES M N Baker defines Human Resource Accounting as , “ Human

resource accounting is the term applied by the accountancy profession to quantify the cost and value of employees to their employing organization”.

IMPORTANCE OF HUMAN RESOURCE ACCOUNTING

Human resource accounting provide useful information to the management , financial analyst and employees as stated below-

Human resource accounting helps the management in the employment , location and utilisation of human resources .

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It helps in designing the transfer, promotion ,training and retrenchment of human resource .

It provide basis for planning of physical assets vis-a-vias human resources.

It assists in evaluating the expenditure incurred for imparting future education and training in the employees in terms of the benefits derived by the firm.

It helps to identify the cause of high labour turnover at various levels of taking preventive measures to contain it .

OBJECTIVE OF HUMAN RESOURCES ACCOUNTING LIMITATION OF HUMAN RESOURCE ACCOUNTING.

There are many limitations which make the management reluctant to introduce HRA . Some of the attributes are :-

There is no proper clear cut and specific procedures or guidelines for finding cost and value of human resources of an organisation . The systems which are being adopted have certain drawbacks.

The period of existence of human resource in uncertain and hence valuing them under uncertainty in future seems to be unrealistic.

There is a fear that HRA may dehumanise and manipulate employees .

Downsizing means a reduction in the number of employees, levels of management and overall size of the company in order to increase profitability or reduce costs.

METHODS OF DOWNSIZING IMPACT OF DOWNSIZING

BENEFITS AND COSTS OF DOWNSIZING

C. BENEFITS OF DOWNSIZING Reduce costs Symbolism of cutting jobs

D. COSTS OF DOWNSIZING Cost associated with downsizing Potential law suits Public image of firm

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Decreased loyalty of current employees Danger of losing the wrong people Difficulties in recruitment

ALTERNATIVES TO DOWNSIZING DAVE GRIFFITHS ,” The strategic use of outside resources to

perform activities traditionally handled by internal staff and resources ”_ outsourcing

ADVANTAGES OF OUT SOURCING Cost effective. Skill expertise Time zone difference Focus on core competencies Increase productivity and efficiency

DISADVANTAGES OF OUT SOURCING Loss of managerial control Hidden costs Threat to security and confidentiality

TYPES OF OUTSOURCING BUSINESS PROCESS OUTSOURCING {BPO} KNOWLEDGE PROCESS OUTSOURCING{KPO LEGAL PROCESS OUTSOURCING{LPO} RECRUITMENT PROCESS OUTSOURCING {RPO} ENGINEERING PROCESS OUTSOURCING {EPO}

HRM IN MULTI NATIONAL COR PORATION Managing human resources in an international context is more complex

than in a domestic set up because of the many difference between the headquarters and the subsidiaries. The HR policies of certain companies seems to discriminate on the basis of religion, race ,caste ,sex or nationality. Companies like Ford and Volvo, however, strive to maintain equality in work and pay

They are : limited autonomy, variable autonomy and negotiated autonomy. According to the theory of limited autonomy, the degree of autonomy will depend on the MNC’s approach to globalisation. The theory of variable autonomy states that the degree of autonomy varies with the degree of internationalization of the companyINTRODUCTION TO FACILITY MANAGEMENT

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The IFMA model of a triangle of ‘Ps’ sums up facility management concerns in today’s work place : PEOPLE,PROCESS and PLACE. These three factors are interdependent and have direct reciprocal relationships. As ARMSTRONG pointed out , “ we know there is a need to manage the physical environment in concert with people and job processes”. FM finds management solutions by positioning itself at the intersection of these three factors( figure 1). This strategy makes sense, since people , process and place are the three main factors of organisations and FM involves the whole organisation. The position of FM at centre implies enhanced cooperation among the key factors in any organisation . However, FM is most active with factors relating to place.

CONCLUSION

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From this seminar notes we conclude that TQM , Quality Cycle ,HR ACCOUNTING ,OUTSOURCING ,EFFECT OF DOWNSIZING and Introduction to facility management will help in increasing the profitability of a firm . The factors like downsizing and outsourcing should be used carefully otherwise it may happen to the failure of that firm. A profitable firm will use all these factors which plays an important role in the success of a firm will use in the correct proposition.

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