Assignment-A

Q. 1There are five key elements in strategy i.e., leading, positioning the company, deploying resources, securing competitive advantage and being successful in the environment specific to each organisation. How do you apply these elements to HRM?

Ans:Strategic Planning is the process which helps leadership mould or organisation’s future and manage change by focusing on an ideal vision of what the organisation should and could be 10 to 20 years in the future. The leaders are (CEO or the decision-makers) engaged in leading the organisation in a direction and in a manner intended to secure advantage over competitors in pursuit of the organisation’s mission strategy.

The result of strategic planning has 5 key elements:

  • Leading
  • Positioning the company
  • Deploying resources
  • Securing competitive advantage
  • Being successful in the environment specific to each organisation.

These elements may be further categorized into 3 main areas:

  1. The Strategic Process - Planning and Implementation (Positioning the company securing competitive advantage and deploying resources).
  2. The leadership (Actions of the individuals; Who direct the company).
  3. Organisational effectiveness (Securing success in a specific environmental contexts).

An example can here be given of Xerox Corporation, which experienced a rapid growth through the 1960’s after introducing the Copier 914, which was called “The most successful business product even introduced” they reached $1 billion in revenue faster than any other company. They could sell all they produced. And they thought and knew what the customers needed.

Xerox began to loose its market share in the 1970’s to the Japanese who entered in the market with cost-competitive machines. Xerox began a process of benchmarking for its product’s and process with its competitors. The results shocked the top management. Xerox had 10 times as many assembly line rejects as their Japanese competitors, twice the product lead time, 9 times as many suppliers and 7 times as many defects peer hundred machines. Most starting was that their unit manufacturing cost equaled the selling price of their overseas competition in 1983. President Davit Keans convened the company’s top 25 managers. As a result this meeting, they agreed to focus on quality as the main strategy for running their business.

  1. Quality Principles:
  • Quality as the basic principle for Xerox in its leaders position.
  • An understanding of customers existing and latest requirements.
  • Products and services that meet the requirements of all essential and internal customers.
  • Employee involvement through participation problem solving in improving quality.
  • Error free work as the most cost effective way to improve quality.
  1. Management Actions and Behaviours:
  • Assuring strategic clarity and consistency.
  • Providing visible supportive management practices, commitment and leadership.
  • Setting quality objectives and measurements of standards.
  • Establishing and reinforcing a management style of openers, trust, respect, patience and discipline.
  • Developing an environment in which a person can be responsible for quality.
  1. Quality Tools:
  • The Xerox quality policy.
  • Competitive benchmarking and goal setting.
  • Systematic defect and error-prevention processes.
  • Training for leadership through quality.
  • Communication and recognition programs that reinforce leadership through quality.
  • A measure for the cost of quality (Or its lack).

Xerox, further used the term “reaffirmation strategy” to emphasize that the company stood firmly behind the basic leadership. Through quality plan but the adjustments were needed to broader the concept that letter integrated TQ into all aspects of daily business operations. Xerox is identified two critical objectives: (1) Profitable revenue growth and (2) World-Class productivity.

The HRM now look upon itself the initiative to lead the organisation. The HR strategy, which flowed out of the business strategy had to keep the human aspects arising is the changing scenario.

The focus now shifted from the role of a support intermediary to strategic HR. The new role is that of partners in business. So, HR at Xerox used more than 60 specific process improvement initiatives, employee involvement programs and quality tools to manage its business. It also used range of business policies and approaches quality intensification efforts and benchmarking. These elements were integrated into Xerox 2000.

HRM, further look upon itself to seek, identify and architect to business leaders of tomorrow. An effective succession plan enables the company to identify and prepare the right people for right positions at the right time to assure similar continuity in leadership at all levels.

To improve the match between individuals and jobs, and the satisfaction of the employees with their jobs and with the corporation as whole description information about what each job needs to accomplish in terms of quality and quantity up-to-date job descriptions are essential not only for proper employee selection, appraisal, and training and development for wage and salary administration.

For labour negotiation but also for summarizing the corporate human resources in terms of employee-skills categories. It also used the employee profits to ensure that it has the right mix of talents to implement its blamed strategies.

Thus, the management leadership at Xerox displayed a customer focus, exhibits a role model behaviour, establishes clear long-term goals and annual objectives, establishes strategic boundaries and provides an empowered environment to achieve world class productivity and business results.

The HRM at Xerox leads, motivates, trains, develop and empowers people to realize their full potential. All employees are personally responsible for continuously learning and acquiring competencies required to achieve business objectives and to continuously improve productivity for customers and Xerox.

The business processes were further designed to be customer driven, cross-functional and value based. They create knowledge eliminate waste and abandon unproductive work, yielding world-class productivity and higher perceived service levels for customers.

Fact based management, which is led by line management. This was achieved through accurate and timely information and by the disciplined application and widespread use of quality tools.

Thus, by fully anticipating and satisfying these requirements through the creation of customers value, and the strategic role of HRM, which integrated well its business plans, Xerox achieved its business results and using this strategy as a guide, HRM at Xerox is busy preparing its results, productivity and quality performance.

Q. 2Movement from ‘control to commitment’ represent a paradigm shift in management though! Comment.

Ans:The ‘Commitment’System marks shift societal values away from traditional authorities and compliance. It is an attempt to replace the control orientation, which characterised the earlier systems. Its radical difference lies in that if aspires to promote mutually of interest between employer and employee through altering the relationship by increasing the autonomy, responsibility. The common threats of the new policies is first to elicit employers commitment and then to expect effectiveness efficiency to follows secondary outcomes.

a)‘Policy characteristics of the ‘Control-based and ‘Commitment-based’ HRM systems plus the number of shifts will given the precise number of men required for manning the equipment. A time study or work-study may reveal that although one individual looks and after one machine, the actual time spent on operating it is much less and his idle time could be employed in looking after more than one machine on doing some other job.

b)HRP and forecasting the manpower inventory would be further assisted by information on current level of absenteeism and likely future trends. An intention to become a total quality organisation cannot be achieved with continuing levels of absenteeism. (Some 35% of working time lost to absenteeism can grounds of sickness) in the U.K. in 1994.

c)Labour turnover is also influenced by pressure both within and outside the organisation.

The variables, which affect the labour turnover, are:

  1. Organisational Level:

-Organisation Structure

-Job Design

-Job Stress

-Rewards/Pension Plans

-PMS

  1. Group Level:

-Group Demographics

-Group Cohesiveness

  1. Individual Levels:

-Age, Tenure

-Marital Status

-Personality – Job Fit

-Job Satisfaction

  1. Intention to…Search for alternatives.
  2. Information about…Other jobs available to the employees.
  3. Economic and Market Conditions.

Measurement of all these variables as mentioned above not only helps in forecasting and makes planning possible, but also provides the basis for action – policies/procedures/programs to retain the employees. This will bring down costs, improves the productivity and contribute to total quality.

d)The survival curves (which show the duration of service profiles and the no. of employees) will show up very clearly the no. of employees who are most likely to retire over the next 10 years, thus, providing an input in plans for further recruitment and training (say for police force, army, many etc.).

e)To cite an example, out of ten buses use by a company, only nine may be operated, the tenth being kept in reserve. In this case, it is not necessary to man all the ten buses. Manpower planning will have to take into account the number of equipments in active use rather than the numbers installed.

f)In India where the productive capacity is being underutilized in the manufacturing concerns, it also is an important factor to be considered in HRP.

g)Through job analysis, strategic HRP further assists in determining the skills and responsibilities required by a specific position, which would reduce ambiguity in the job.

h)Knowledge of the work content assists in balanced allocation of manpower. It facilitates allocation of the same team strength to a labour force for a given productive unit. The work content is generally determined by time study or activity sampling.

i)It will further provide a ration analysis of supervisions to workers at different levels trades and skills.

j)Forecasting the external supply.

k)HRP needs to take account of 3 aspects of labour market trends – the national trend local HRM System.

“Policy characteristics of the ‘control-based’ and ‘commitment-based’ HRM systems”

Policy Area

/ Control-Based / Commitment Based
Job design principles /
  • Sub-division of work
  • Specific job responsibility
  • Accountability for specific job responsibility
  • Planning separated from implementation
/
  • Broader jobs
  • Combined planning and implementation
  • Teams

Management Organisation /
  • Top-down control and co-ordination
  • Management prerogative
  • Status symbols
  • Hierarchy
/
  • Flat structure
  • Shared goals for control and coordination
  • Status minimised

Compensation /
  • Fair day’s work for fair day’s pay
  • Job evaluation
  • Individual incentives
/
  • Reinforcing group achievements
  • Pay geared to skills other contribution criteria
  • Gain-sharing, stock ownership, profit sharing

Assurance /
  • Labour a variable cost
/
  • Mutual commitment
  • Avoid unemployment
  • Assist reemployment

Employee Voice /
  • Unionized (damage control, bargaining, appeals process)
  • Non-union (open door policy, attitude surveys)
/
  • Mutual mechanism for communications and participation
  • Mechanisms for giving employee voice on issues

Labour management relations /
  • Adversarial
/
  • Mutuality
  • Joint problem-solving and planning

Management philosophy /
  • Management prerogative
  • Management’s exclusive obligation to shareholders
/
  • Emphasis on claims of all stakeholders
  • Fulfillment of employee’s needs is a goal rather than and end

In Table the New assumptions about the management of people which underpin the ‘commitment – based’ HRM system:

Assumption / Philosophical Shift

1.

/

Organisations are open systems with effectiveness defined as being successful in achieving a fit between its various components and between the system and its environment. There is a change of emphasis towards linking HRM with strategic planning and developing a culture that supports this and away from piecemeal interventions in response to specific problems.

2.

/ People are capable of growth in terms of skills, values and commitment if and when the work environment encourages this. People therefore are social capital rather than variable costs.

3.

/ There is a long-run coincidence of interests between all of the various stakeholders of the organisation. This requires a shift form a climate in which self-interest dominates.

4.

/ Power equalization is a key factor in encouraging openness and collaboration among stakeholders. This is in contrast with the old assumption that there must be managerial control to enhance power and efficiency.

5.

/ Open communication builds trust and commitment. Instead of adversarial relationships there is encouragement of mutuality of interest between employer and employed.

6.

/ Employees will be motivated and the organisation more effective if they work towards organisational goals that they accept as legitimate.

7.

/ People who participate in defining problems and solutions will become committed to the new results from the process of participation. This is in contrast to hierarchical control from the top.

Q. 3Employees are a permanent asset rather than a dispensable resource! Comment.

Ans:Over the years the factor providing competitive edge to organisations have been shifting. While in the 5c’s the volumes gave the edge cost compression played the key role in 6o’s the focus moved to quality in 7c’s and to the customer in 80’s. As the competition increased in innovation took an edge in 90’s with the dawn of the new millennium people down has become the supreme factor providing the winning edge o the organisation.

  • In the global economy, firms are becoming more and more aware of the need to have competent employees. Several specific factors are responsible for heightened organisational focus on this critical toll.
  • One of the core issues companies are facing today is the increase in manpower cost coupled with this is the pressure to downsize and manage with fewer people, thus increasing efficiency and employee productivity. Companies are also realizing the need for ensuring that competent people are available for performing various critical roles. There is a negotiation that technology, finances, customers and markets systems and processes can all be set right on managed efficiency effectively with the right kind of human resources.
  • With this realization, there is now a focus on performing roles, time management, nurturing of competence, and increased emphasis on performance management systems advantage given by employee competencies of the organisation. All these factors are pushing up the value of competency mapping in enterprises.

Employees are a permanent asset; this can be further exemplified by the following example:

  • GE has an excellent trade record at successful succession planning through Jack Welet was understanding its best known Chief executive. There were others including some who had out performed him. He was a link in a long chair of illustrations leaders and inherited a well-managed company from his predecessors, Reginald Jones, who retired as “the most admired business leader in America”. Jones was repeatedly recognised as a “top leader” in many independent surveys conducted during succession plan enables a company to identify and prepare the right people for the right positions at the right time to assure seamless continuity in leadership at all levels.
  • HR joins hands in the battle of bottom line by providing a workplace filled with fun, flexibility and fortune to its employees. Burger Kind – Mc Donald’s, Pizza Pasha – Pizza Hut, and Coffee King – Qwilys value, their employees and recognize them as assets and ambassadors of their company. The unique culture of Qwilys is reflected in the workplace says head of HR, over workplace is fun to be in and thus spirit is a made part of our guest interaction as well we believe in empowering people, after work is assigned there is minimal level of supervision.
  • Leadership by example is evident by the fact that the CEO of Qwilys wipes tables and takes away used cups, even now, whenever he is at an outlet.
  • At Pizza hut, they believe that the only thing that tops our Pizza is our people. Pizza Hut trains and equips people to meet their career path options. “We provide a work environment that emphasizes coaching and development as a basic for learning and growth. Peers are in the same age group and that makes for a challenging and fun work environment…over the years, we have learned that is we put people capability first; satisfied the customers and profitability follow.
  • The management guesses have advocated an increase in the input of human resource consideration at strategic planning an attitude of treating planning an attitude of treating employees as assets, more participation and greater involvement for employees effective and open communications, less rule – oriented policies and practices, better training and career development opportunities, rewards and recognition tied to performance and less adversaries labour management relations.

Assignment-B

Q. 1Is strategic planning of Human Resource Worthwhile? What advantages do you gain from it?

Ans:Is strategic planning worthwhile?HR Planning (HRP) is a continuous processes to analysis the current ant the future manpower requirements by the organisation. It ensures that the organisation is equipped with the right number and right kind of people at the right place.

Strategic planning of HR concerns itself with acquiring. Optimum utilization development and retaining of an enterprises human resource. This not only makes it important to analyse the labour costs and productivity and asses the need for structural change (a common practice followed earlier) but also to regularly review the labour market, the external business environment, forecasting the impact of business plans or employee relations and culture, analysing the current manpower stock, estimating the impact of labour turnover, forecasting medium term staffing requirements and the future availability of staff from within the organisations.

Further, the effectiveness of pay and benefit packages needs to be assessed and HRP practices need to be revised constantly to meet the changing business circumstances. A computerized personnel conformation system can provide accurate and up to date information to the decision makers for manpower planning forecasting the internal as well as external supply of human resources.