strategic hrm unit v2

Strategic HRM: National and international practices Unit: V

Presented by

Chinta Mani Bhattarai

MBA-HRM

Institute of Banking and Management Studies (IB&MS)

1. Performance Management System 2. Motivation3. HRMIS 4. Salary & Compensation5. Recognition 6. Employee Relations7. HR & Manpower Audit 8. Quality Circles9. Total Quality Management 10. KRA & KPI11. Employee Recruitment 12. Training & Development 13. Knowledge management 14. organizational learning

Business objectives/goals

Strategic human resource management

Strategic HRM

HR strategy/overall (specific) Strategic management/strategic role of HR

Strategic choice

Strategic analysis

Strategic HR: resource based view

Strategic fit

Horizontal fit Vertical fit

Coordination or congruence among the various HRM practices

Linking of HRM practices with the strategic management process of

the organization

Approaches to SHRM

1. Attempts to link HR activities with competency based performance.

2. Attempts to link HR activities with business surplus or profit.

Indian context for HRM

Linguistic differences and role of English.

Geographical differences.

Generation differences.

Group dynamics (High).

HR retention strategy ( Indian context ): BY: Michael Haid

HR practices Employee attitudes and beliefs

Retention

Pride in organization

Satisfaction with organization

Intention to leave

Manner support

Social responsibility

Performance management practices

Professional development practices

Years of service, age, gender, position and education

Determinants of strategic fit

HR function factors HR policy Options Investment/budget

Personal factors HR managers

capability Top manager’s ability

and support Employee knowledge

and skills

Firm level factors Nature of strategy Values and culture

Overall fit

Horizontal fit

Vertical fit

Firm’s performance

SHRM practices in IT industry in India

Research carried out by:DR. Mohammad Galib Hussain and S. Mohamed Rafique

In25 software/IT companies located at Chennai and Bangulure

From: www. International journal. Org ( April 6, 2012 )

Concentrated areas of SHRM

1. Strategic HRM focus ( strategic and operation issue )

2. Functional areas covered by SHRM ( Finance and Marketing operation)

3. SHRM facilitates (Transformation)

4. Treatment of employees (Fairness and equity, favour balanced decision making and

congenial work environment )

5. Advanced SHRM practices (Team based job design, flexible workforce, quality and

improvement practices )

6. Strategic HRM activities (Innovation, designing consistent policies, and practices and

strong expectations)

Dominant SHRM practices in software/IT companies

1. Organization policies and strategies linked to HRM policies -------94.2%

2. Strategic HRM focus -------67.3%

3. SHRM facilitate achievement -------65.4%

4. Treatment of employees -------64.0%

5. SHRM facilitates -------57.2%

6. Functional areas that covered by SHRM -------56.2%

7. Organization diagnosis it’s strategic needs -------53.8%

8. Line managers most touch with employees -------37.5%

9. Adopted SHRM activities -------33.7%

Dominant SHRM practices which achieve it’s higher effectiveness in software/IT industries

1. Workforce planning ----------87.0%

2. Participative management ----------81.2%

3. Executive development program ----------72.0%

4. Family/work program ----------56.7%

5. Succession and development planning ----------49.0%

6. Advance issue identification strategies ----------46.2%

7. Communication between employee and manager ------------------

8. Quality output ------------------

9. SHRM effectiveness attained ------------------

What drives the adoption of SHRM in Indian companies Reserched by:

Ashok Som and Hanid Bouchikhi

Adoption of innovation SHRM practices in Indian

industries

unionization

Technological sophistication

Organizational size Financial

resources

International consultants

Style of top management

Role of HR department

Base pay Wages salaries

Variable pay Commissions

Bonuses Gain sharing

Compensation practices

Direct

Provident fund Gratuity

Maternity leave Health plans Medical leaves

Mandatory Time not worked

Vacations Breaks Holidays

Insurance plans Life

Security plans Pensions

Employee services

Educational Recreational

Voluntary

indirect

Non financial compensation ( employee recognition)

Awards

Recognition awards

Appreciation letters

Thank you letters

Infosys' HR audit model was based on the present value of the employees' future earnings with the following assumptions:

• An employee's salary package included all benefits, whether direct or otherwise, earned both in India and in a foreign nation.

• The additional earnings on the basis of age and group were also taken into account.

To calculate the value of its human assets in 1995-96, all the 1,172 employees of Infosys were divided into five groups, based on their average age. Each group's average compensation was calculated. Infosys also calculated the compensation of each employee at retirement by using an average rate of increment.

HR audit Practice at Infosys

This, in turn, helped them to channelize the available skills, talents, knowledge and experience of their employees more efficiently. By adopting and implementing HRA in an organization, the following important information could be obtained:

• Cost per employee• Human capital investment ratio• The amount of wealth created by each employee• The profit created by each employee• The ratio of salary paid to the total revenue generated• Average salary of each employee• Employee absenteeism rates• Employee turnover rate and retention rate...

HRA - The Benefits and HurdlesThe benefits of adopting HRA were manifold. It helped an organization to take managerial decisions based on the availability and the necessity of human resources. When the human resources were quantified, it gave the investors and other clients true insights into the organization and its future potential. Proper valuation of human resources helped organizations to eliminate the negative effects of redundant labor.

Audit of the HR policies and practices is the assessment and evaluation of the conventional HR practices being followed in an organization. These include:

Workforce planning: Assessment of existing resources; future personnel requests; analysis of succession plan; and staff turnover analysis.

Staffing: Assessment of methods and procedures used in recruitment; recruitment costs; recruitment efficiency in filling vacant positions; efficiency of selection procedures.

Performance management: Analysis of methods used in the personnel assessment; assessment of results and effects of the personnel evaluation process.

Training and development: Analysis of targets and forms of training; study of the training program; assessment of personnel after completing training; the efficiency and results of the training program; analysis of development system of personnel in the organization; job analysis; analysis of the plan for personnel development.Compensation and benefits: Analysis of motivation forms; their relationship with personnel motivation; analysis of the level and structure of compensation.

Auditing HR policies and practices

Audit of the HR policies and practices is the assessment and evaluation of the conventional HR practices being followed in an organization. These include:Workforce planning: Assessment of existing resources; future personnel requests; analysis of succession plan; and staff turnover analysis.Staffing: Assessment of methods and procedures used in recruitment; recruitment costs; recruitment efficiency in filling vacant positions; efficiency of selection procedures.Performance management: Analysis of methods used in the personnel assessment; assessment of results and effects of the personnel evaluation process.

Training and development: Analysis of targets and forms of training; study of the training program; assessment of personnel after completing training; the efficiency and results of the training program; analysis of development system of personnel in the organization; job analysis; analysis of the plan for personnel development.

Compensation and benefits: Analysis of motivation forms; their relationship with personnel motivation; analysis of the level and structure of compensation.

Auditing HR policies and practices

• HRIT strategy formulation

• Package evaluation & implementation

• Up-gradation• Custom software

development• Deployment and

rollout• System integration• Production support

• HR analytics• Portals and self

service• Recruitment• Learning

management solutions

• Payroll solutions• Benefits• Workforce

managements

• HR administration• Benefits• Claims• Payrolls• Advisory service

• HR strategy and roadmap

• HR process assessment and effectiveness

• Performance management and HR scorecard

• Competency management

• Career framework development

• Change management

Service & solutions HR process areas

HR outsourcingHCM consulting

Knowledge management

WIPRO (IT SECTOR): Actively seeking a business model targeted at adding value to clients organizations by

building effective KM capability based on their proven offering and tested implementation experience.

Realizes that Knowledge Management is not a one-off solution but a Journey. Works along with client teams, using proven methodologies for knowledge audits, knowledge

mapping, taxonomy generation, KM readiness assessment to deliver services suited to business and organizational needs.

Wipro also offers to conduct a workshop for KM awareness to its customers at their location. Wipro Technologies has received Information Today's KM-World - KM Reality Award

validating Wipro's leadership in Knowledge Management. KM World's Executive Editor Hugh McKellar said, "In many organizations, knowledge

management is just rhetoric. The KM Reality award recognizes an organization in which knowledge management is a positive reality. Wipro as the recipient of this year's KM Reality award is an organization demonstrating leadership in the implementation of knowledge management practices and processes by realizing measurable business benefits."

Wipro has started offering its Collaboration and Knowledge Management solutions and expertise to Global Corporate Enterprises by providing end-to-end Collaboration and Knowledge Management services, including: KM application development for Knowledge Portals, Expertise Management Systems, Knowledge Repositories and Executive Dashboards through a unique blend of domain knowledge, technology expertise and process excellence.


WIPRO (IT SECTOR): Actively seeking a business model targeted at adding value to clients organizations by building effective KM capability based on their proven offering and tested implementation experience. Realizes that Knowledge Management is not a one-off solution but a Journey. Works along with client teams, using proven methodologies for knowledge audits, knowledge

mapping, taxonomy generation, KM readiness assessment to deliver services suited to business and organizational needs.

Wipro also offers to conduct a workshop for KM awareness to its customers at their location. Wipro Technologies has received Information Today's KM-World - KM Reality Award

validating Wipro's leadership in Knowledge Management. KM World's Executive Editor Hugh McKellar said, "In many organizations, knowledge

management is just rhetoric. The KM Reality award recognizes an organization in which knowledge management is a positive reality. Wipro as the recipient of this year's KM Reality award is an organization demonstrating leadership in the implementation of knowledge management practices and processes by realizing measurable business benefits."

Wipro has started offering its Collaboration and Knowledge Management solutions and expertise to Global Corporate Enterprises by providing end-to-end Collaboration and Knowledge Management services, including: KM application development for Knowledge Portals, Expertise Management Systems, Knowledge Repositories and Executive Dashboards through a unique blend of domain knowledge, technology expertise and process excellence.

Tata Steel (Manufacturing):

Tata Steel decided to embark on KM initiative in May’99. The beginning was made in July’99 to place a KM Programme for the company to systematically and formally share and transfer learning concepts, best practices and other implicit knowledge.

The essence of this Programme is to capture the available abundant knowledge assets in form of tacit (experience, thumb rules, etc.) and explicit (literature, reports, failure analysis etc.), to organize and transform the captured knowledge, and to facilitate its usage at right place and in right time.

"Knowledge communities" are actually groups of people who come together to share what they know, and to learn from one another regarding some aspects of their work. Helps to emerge knowledge community and to flourish and to become productive. Knowledge communities are the knowledge-sharing platform, not a task force to solve a problem. Communities may take up some problems and solve it by looking at the problem and brainstorming from various perspectives.

Communities play a very important role in capturing experts’ tacit knowledge, improving the quality of knowledge repository and encourage usage of the repository. In Tata Steel, Knowledge communities have few distinct roles viz. Champion, Convener, Practice Leader, Lead Expert and Practitioners.

To make KM more effective in Tata Steel, a number of initiatives like integration of the various local pockets of knowledge repositories available in various division / departments with the main KM repository have been taken. Measurement of performance of KM system is being done through "KM index". CEO and other senior executives monitor the progress of KM through Balance Score Card system.

Organizational learning practices in India

Organizational learning in India: creating the organizational learning space

Studied by: Suvro Ray chaudhary, 2 concord way apt. 2-A3, windsor locks, connecticut, USA

[email protected]@gmail.com

mailto:[email protected]

Learning delivery methods Organizational facilities for learning

Training programs Other features for organizational learning

Dimensions of OLS

Learning delivery methods

0

10

20

30

40

50

60

Blended learning

Web based learning

Asynchronous learning

Instructor led learning

In house instructor

Out source instructor

Collaboration with academic institution

Percentage responses

Delivery methods

Organizational facilities for learning

0

10

20

30

40

50

60

70

80

90


Types of facility

Virtualization of knowledge modules

Accessibility over intranet

Accessibility over internet

Online libraries

Knowledge portals as a part of ESS with SSO

Independent knowledge portals not tied to ESS

Knowledge community for alumni

Role based access to online knowledge centers

Multilingual portal

Training programs

0

10

20

30

40

50

60

70

80

90In house training

Out sourced training

Executive programs

Mixed training (In house + out sourced)Mixed training (In house + out sourced)

In house training

Out sourced training

Executive programs


Programs type

Other features for organizational learning

0

10

20

30

40

50

60

70

80

90

Training program associated with awards

Training program linkage to other HR strategic modules

Dedicated investment in permanent learning centers

Online communities

Reward for contribution to knowledge repository


Other features

SHRM practices in Globalized context

Dimensions of international SHRM

Employee resourcing

Diversity management

Expatriation and repatriation

Local responsiveness

Acquisition and mergers

Right sizing or down sizing

Talent management

Employee welfare and Labour relations

Compensation safety and health

Quality circles (QC)

Total quality management (TQM)

Cross national transfer of employees

and management

Human capital management

High performance work system

Corporate social responsibility

Organizational development

Employee engagement


Talent management

Learning and development

Reward system

Matrix of HRM strategies in globalization context

Research topic: Dynamic strategic HRM in the globalization context

Studied by: Chun – Hsien Liu

Department of international businessMinghsin University of science and technology

[email protected]

SHRM dimensions

Environment consciousness

Service characteristics

Intangibility Heterogeneity Inseparability Perishability

Employee skills and work policies/practices

Staffing Hire an environment specialist

Wear uniform gentle, clean

Meet minimum qualification

Good human skill

More staff for peak hour

Training Conduct environment training

Emphasize human skill

Fluently and intensively

Good relationship keeping

Skill to pacify angry customer

Work design Confirm environment codes

Let customer see staff always

In shift to avoid fatigue

Key account system

Adapt to customer density hour

Employee relations

Keep good working environment

Happy staffHappy customer

Empathy to 1st line staff

Family member

Fair, flexible scheduling

SHRM dimensions




Supportive environmental practices

Employee empowerme

nt

Direct correct violation

Solve directly customer problem

Solve timely customer problem

Flexible contingent

To shift team leaders

Employee assistance

Proper training

1st line staff1st priority

Staffs mutual support

Higher customer relationship

Sufficient logistics

Diversity Unify staffs understanding

Integrate to have synergy

Converge the diversity

Staff and customer specific

Encourage flexibility

Flexible benefits

Award to environment champion

Award to customer champion

Rule comply champion

Bonus by quota

Customer pacify champion

SHRM dimensions




Performance management and reinforcement practices

Performance appraisal

Announce in public

Announce in front of

customer

Announce in public

Provide in private

Announce in public

Compensation Money or promotion

Money or promotion

Money or promotion

Bonus Money or promotion

SHRM dimensions




Market organization practices

Alternative work design

Depends on actual need

Advocate and devil play

Advocate and devil play

Key account manager

Sub contractor for peak hour

Compensation Depends on actual need


Depends on actual needs

Bonus by quota

Depends on contract

Market leading compensation




Bonus Depends on contract

Thank you…..

strategic hrm unit v2

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