1. HUMAN RESOURCES
MANAGEMENT
MBA – I st Semester

2. HUMAN RESOURCES - MEANING
• Resources : the means available to achieve an
end
MEANS END
Money to live a comfortable life
Plot of land to provide shelter
Sophisticated machinery To increase productivity

3. RESOURCES IN BUSINESS
ORGANIZATIONS
• Money
• Material to earn higher
• Machinery revenues and
• Land and build
• (Wo) Men successful orgnz.

4. ORGANIZATION AS A SYSTEM
INPUT
THROUGHPUT
OUTPUT
CONVERSION
PROCESS
ENVIRONMENT
ENVIRONMENT

5.  CAPITAL flows freely across borders (VC’s /
Banks)
 TECHNOLOGY is available to CEO’s who cannot
grow it – for the right price
 RAW MATERIAL is free to be transported across
the globe
 INFORMATION is available to anyone ( Internet)
IMPORTANT DISTINCTION – PEOPLE / EMPLOYEES
OF THE ORGANIZATION
The only thing that distinguishes ‘ Pepsi’ from
‘Coca Cola ‘ is the quality of its people

6. PRODUCTS = PEOPLE
Breakthrough products can be created only
through planned human efforts – scanning ideas
– such as laboratory research
Nokia models, i-pod , Robots
MANUFACTURING = PEOPLE
SONY – Technology X – Cleverer use of Technology –
People
TOSHIBHA – Technology X – not as successful
--------------------------------------------------------------
MARUTI SUZUKI – Technology Y – Cleverer use of
Technology – People
FIAT – Technology Y –not as successful

7. MARKETING = PEOPLE
 Customer Satisfaction
 Service quality
 convert wandering experimenters to loyalists
People are being the principle instrument to
delight the customer

8. CORE COMPETENCIES = PEOPLE
Fundamental strength of the corporation –
unique expertise – skills and abilities of its people
• Tata Steel – Steel
• ACC – Cement
• ITC – Hotels and Cigarettes
• Gillette – Shaving Products
Conceptual , Technical and Behavioral

9.  SUPERIOR PRODUCTS + SUPERIOR
MANUFACTURING + SUPERIOR MARKETING +
SUPERIOR CORE COMPETENCIES =
COMPETITIVE EDGE
COMPETITIVE EDGE = PEOPLE
 So , if you manage your people well – you
manage your products , manufacturing ,
marketing , core competence well and gain
competitive edge

10. • Adi Godrej , CEO , Godrej Soaps
All corporate strengths are dependent on and
centered around – Human Resources
• B.K. Modi , Chairman , Modi Group
How you manage your people is critical for
survival and growth
Ordinary
People
HRM( to get
the best out
of people)
Extraordinary
Results

11. HRM (DEFINED)
The art of procuring , maintaining ,
motivating ,developing and retaining
a competent workforce to achieve
the goals of an organization in an
effective and efficient manner

12. PROCURING
 to procure vegetables from the subzi-bazaar
 to obtain
 to procure human resources from the
employment market – recruitment and
selection (RR – Attitude)

13. MAINTAINANCE
 causing to continue – by protecting and
preserving the physical , psychological and
social well being of the employee through :
• Health and Safety measures – protecting from
unhealthy conditions and physical hazards
• Employee Welfare – Housing , transportation ,
education and recreation facilities

14. MOTIVATING
 30-90 % performance
 Financial and Non –Financial Rewards
 Incentives
DEVELOPING
 T & D
 On sophisticated machines , on interpersonal relations
, on quality management , on creativity management ,
on decision-making etc.
 Trained workers can work more efficiently
 Cost – cutting
 superior performance
 helps managers acquire KSA’s to meet with complex
changes in business environment and technology

15. RETAINING
 80 - 20
 Star performers
Talent Management
 Fast-track career paths
 right placements
 challenging work
 recognition
 avenues for growth and development
 succession planning
 ESOP’s

16.  1970 -80 Personnel Manager
1990 – 2000 VP (HR) , Director HR
 Designation Hierarchy
 Manufacturing and Services
 Corporate office , Registered Office , Plant /
Unit / Factory
 Organization Chart / Organogram

17. ORGANIZATION CHART
VP (Mktg.)
GM ( North &
West)
Manager -
Retail
Manager -
Service
GM ( South &
East)
Manager –
Commn. &
Advertising

18. Supervisor
A
Worker
1
Worker
2
Supervisor
B
Worker
3
Worker
4

20. RECCOMMENDED TEXT BOOKS
 Human Resource Management – Text and Cases –
V S P Rao – 3rd Edition – Excel Books
 Text & Cases in Human Resources Management -
K. Ashwathappa – Tata McGraw Hill
 Human Resource Management - Flippo

21. SCOPE OF HRM
HR ACCQUISITION
HR Planning ( over staffed)
Job Analysis
Recruitment(Convey.-part of sal.)
Selection( Ka-Sym)
Orientation
Placement
HR DEVELOPMENT
Career Planning ( Big fish – small pond)
Training & Development(sensiti)
Organization Development
Counselling
PERFORMANCE AND
COMPENSATION
Performance Appraisal ( incr. less-GM)
Compensation Mgmt. ( wage bill)
Incentives & Perquisites
MOTIVATION AND
MAINTAINANCE
Creating motivating environment
Empowerment and participation
Safety & Health
Retention

22. SCOPE OF HRM CONTD.
SUPPORTING FUNCTIONS
HRIS ( at a button)
HR Accounting ( Cost – Economic value ; Balance sheet Costs – Assets )
HR Audit ( Recruit – vacancy filing , T & D – Trg. Mandays , Absenteeism, Grievance
% - Depts. )
Time Office and Pay Roll
INDUSTRIAL RELATIONS
Industrial Disputes - Industrial Harmony (DKS –rose)
Union Negotiations ( Rule of Two)
Discipline / Grievance
Labor Welfare
Labour Laws
INTERNATIONAL HRM

24. HRM OBJECTIVES

25.  PRIMARY OBJECTIVE : To ensure the availability
of a competent and willing workforce to an
organization (skill and will)
 ORGANIZATIONAL OBJECTIVES : Assist the
organization – to meet its objectives and make
the organization more effective ( HRM strategy –
Org. strategy – same direction)
 FUNCTIONAL OBJECTIVES : To maintain the HRM
Department’s contribution at a level appropriate
to the organizations needs ( staff function)

26.  SOCIETAL OBJECTIVES : To be Ethically
(Satyam) and Socially ( sons of the soil)
responsible – to the needs of society
 PERSONAL OBJECTIVES : Personal goals of
employees must be met by alignment of
organization objectives and personal
objectives - needs , wants , desires ( money ,
status , achievement , affiliation )

27. HRM – FUNCTIONS
( A mode of activity by which a thing fulfills its purpose)
MANAGERIAL
FUNCTIONS OPERATIVE
FUNCTIONS

28. Managerial Functions – Planning ,
Organizing , Directing and Controlling
 PLANNING – Determination of the future
course of action to achieve desired results
Planning of personnel today prevents a crisis
tomorrow
 HRP
 Potential Appraisal ( Succession Planning)
 Training & Development - TNA
 Strategic HRM

29.  ORGANIZING – Assigning of different groups
of activities to different individuals and
delegation of authority
 HRD Manager , 4 HR Executives , 2 HR
Assistants
He / She will do this
 Reporting relationships
 DIRECTING – Guiding , Supervising –
motivation and leadership - The HR Manager
must be an effective leader who can create
winning teams

30.  CONTROLLING – Set standards , measure , compare ,
corrective action
 performance appraisal (MBO) , T & D , HRP , personnel
audit
OPERATIVE FUNCTIONS ( specific activities of HRM –
to be performed alongwith managerial functions)
 Staffing and Employment
 Job Analysis – Job Description + Job Specification
 HRP
 Recruitment
 Selection
 Placement
 Promotion
 Transfer
(RR- Hire for Attitude)

31.  Training & Development
 on – the – job methods
 off - the – job methods – MDP ‘s
 to develop skills for current and higher jobs
 Performance Appraisal
 Compensation
 determination of adequate and equitable remuneration of
the employees
Includes:
 Job evaluation to determine worth of various jobs in terms
of money
 comparing the wages of the enterprise with those in
industry and remove inconsistencies

32.  formulation of policies regarding incentives ,
profit-sharing plans , social security , ESOP’s , club
membership and paid holidays/ overseas
vacations
 Integration
 reconciliation of the interests of personnel with
those of organization
 communication – upward , downward , lateral
 two-way traffic of personnel policies and
objectives
 Healthy Collective Bargaining
 Prompt Grievance redressal
 Employee participation and empowerment

33.  Working Environment
 good working conditions
 safe working conditions
 drinking water facilities
 hygienic environment
 good lighting and ventilation
 Welfare Activities and Benefits
 physical , psychological and social well being
 Transportation
 medical facilities
 first-aid box
 crèche
 recreation facilities – TT , Chess , Carrom
 Education of children
 canteen
 Housing facilities
 Benefits as per Labor Laws

34.  Human Relations
 good employer – employee relationship ( 28th
salary)
 healthy collective bargaining ( Mukund Iron and Steel)
 proper implementation of labor enactments
 industrial peace and harmony
 Long service awards
 Achievement Awards
(Russi Modi – 10,000 employees)

35.  HR Records and Statistics
 Personal Files
 Performance appraisal records
 reveal human resource talent available for
positions – skills inventory , management
inventory
 identifying weaknesses (PA) – identifying
training needs
 Personnel Research - Chronic absenteeism –
labor turnover , alcoholism
 HRIS

36.  Separation
 full and final settlement of dues
 provident fund
 gratuity
VRS / Retrenchment / Dismissal
 Exit Interview
( Notice Period – 7th – 11th)

37.  Time Office
 Pay Roll
 Attendance
 Leaves
 OD

38. EVOLUTION OF HRM
ADAM SMITH
 Economist
 Published ‘ The Wealth of Nations ‘ in 1776 – talked
about – division of labour ( work specialization)
 Used the pin manufacturing industry , for example –
10 individuals – each doing a specialized task –
produce many more pins – than – each working
separately and independently

39.  Industrial Revolution
1760 : Industrial Revolution – Great Britain- then
spread to other countries
1830 :France ,Belgium , USA
1850 : Sweden and Japan
1870 -80 : Canada , USSR ,Japan , India

40. • During 1800’s - Factory system – modern
management techniques
• New inventions revolutionalised commerce and
industry
• Led to mass scale production and division of
labour
EARLY CONTRIBUTORS TO DEVELOPMENT OF
PERSONNEL MANAGEMENT
 Robert Owen : Industrialist , Father of PM
Advocated – spirit of cooperation between the
workers and management – treated as human
beings

41. He made provisions for :
 reduced working hours
 housing facilities
 education of workers and their children
FREDERICK WINSLOW TAYLOR
Father of Scientific Management – concept of fair day’s
work , time and motion studies and piece rate
system (DP)
HENRI FAYOL
14 principles of management

42. ELTON MAYO
Father of human relations movement – Hawthorne
Experiments
 Other contributors included – Renesis Likert , Maslow ,
Victor Vroom and Mc Gregor
 These studies – shaped the gradual development – of
the theory and practice – of Personnel Management
 World Wars – Armies – selection , placement ,
psychological testing , training and post-Army vocational
guidance

43. GROWTH OF PERSONNEL MANAGEMENT IN
INDIA
 PM Development – UK , USA – largely voluntary
 India – emerged – governmental intervention and
compulsions
 Early 1900’S -Calico Mills , Ahmedabad - opened –
Creche – with doctor and nurse
 1918 – Tata’s – appointed medical officer for workers
 Beginning – 20th century – various malpractices –
recruitment of workers and payment of wages –
industrial disputes – colossal loss in production
 Jobbers

44.  1931 – Royal Commission on Labour – Chairmanship
of J.H. Whitely – recommended – abolition of ‘
‘jobber’ system – appointment of labor officers –
performing hire & fire and welfare of employees.
 LWO – hiring / firing / wage administration
 Mill Owners Association , Bombay – appointed first
labor officer
 1937 – TISCO, Jamshedpur – appointed labor officer
 1947 onwards : Factories Act , ID Act , Payment of
Bonus Act , PF Act

45.  1975 – First company to introduce HRD –
L & T
 1980 – BHEL
 1990 – LPG Era – New challenges for HR –
Globalization , Diversity , Corporate
Governance , multi-skilling , Job Design

46. RELEVANCE OF STUDY OF HRM
• Earlier slides

47. Personnel Mgmt. Vs Human Resource Mgmt.
DIMENSION PERSONNEL
MANAGEMENT
HUMAN RESOURCE
MANAGEMENT
Employment
Contract
Careful delineation
of written contracts
Aim to go beyond
contract – OCB
( Integration)
Rules Importance of rules Importance of
results
Managerial task vis-
à-vis labor
Monitoring Nurturing
Key Relations Labor Business driven
Speed of decision Slow Fast
Communication Indirect Direct

48. DIMENSION PERSONNEL
MANAGEMENT
HUMAN RESOURCE
MANAGEMENT
Prized Management skill Negotiation Facilitation
Appraisal Seniority Merit
Labor Management Collective bargaining Individual contracts
Conflict handling Reactive Proactive
Respect for employees Labour – expendable
and replaceable
People as assets
Shared Interests Interest of organization
uppermost
Mutuality of interests
Evolution Precedes HRM Latest in evolution of
subject

49. TEAMS

50. TEAMS
 Many of the tasks that Organizations carry
out today – are simply too large , complex and
multi-faceted - to assign to- a single individual
working alone
 They require collaborative effort
 The Surgeon – cannot begin a complicated
heart operation – without the help of an
anaesthesist

51.  a surgical assistant – to hand over the correct
apparatus at the appropriate time – a
recovery nurse to monitor the patient after
the surgery
 Such a demanding and complicated task
requires a team of people – with different
skills – to work cooperatively together –
relying on one another – towards the
achievement of an overall shared goal

52.  Quite simply- members of a team Need each
other
 Similarly an Airline Pilot , a professional
cricketer or a frontline soldier in combat
 HUL gives project to Wipro – one software
engineer from C++ , Java , Unix , Web based
services , Accounts and Administration
 shared goal-completion of project within
deadline - and interdependent

53.  The Boeing Company – cross functional team –
from – production , planning , quality , tooling ,
design engineering and information systems for
the company’s to be launched Boeing Aircraft
 Highest level - Self Managed Teams – can not
only solve problems – but implement solutions –
and take responsibility for outcomes
 Select their own members and have members
evaluate each others performance
 Empowerment - High , Motivation- High
 Extreme Y Theory

55. HRM ENVIRONMENT
ORGANIZATION
BUSINESS
ENVIRONMENT
TRENDS
IN
WORK
FORCE
TECHNOLOGICAL /
ECONOMIC /
POLITICAL/LEGAL /
SOCIAL
ENV.
WORK
ENV.

56.  HR Manager – balance the demands and
expectations of the external forces – with the
internal requirements – and achieve the assigned
goals – in an efficient and effective manner
 Likewise – the internal environment – peculiar to an
organization – effects – the job an HR Manager
 Given - External and Internal Dynamics – HR
Manager – the way the HR function is carried out –
to ensure survival and progress

57. EXTERNAL ENVIRONMENT
CHANGES IN BUSINESS ENVIRONMENT
GLOBALIZATION
MERGERS &
ACQUISITIONS
DOWNSIZING

58. GLOBALIZATION

59. GLOBALIZATION
 People , goods , capital , information – moving
around the globe
World – borderless market
 Sales outside home market ; Coca Cola – 80 % ,
Nestle – 50 % , P & G – 65 %
 Businesses can hire , source and sell – wherever they
want now
 price and quality global - competitive

60. HR’S ROLE IN GLOBALIZATION
 Global Corporations – raise money in one market –
buy raw materials in other markets – manufacture ,
different location – products sold all over the globe –
more functions – effect on organization structure –
divisions – departments
 More heterogeneous functions – country specific
 More involvement in employee’s personal life – WLB
– culture shock
 More cultural differences – languages – foods-
values – beliefs
 Different approaches to management

61.  Global corporations – require employees with
transferable skills – who can adapt to different
cultures – customs – habits - management styles
 Retaining top talent – cultures and reward systems –
challenging work – recognition
 Competitive – empowerment – cost cutting –
connect people to their passions ( worker – mechanics
workshop home – product design to quality control )
 Ex- patriate Manager
 Cross Cultural training

62. MERGERS AND ACQUISITIONS
 Purposes
 to incorporate new technologies
 to enter new markets and gain market share
 to improve their market standing and stay at the top
 2008 – Indian Companies - 1270 M &A deals
 Tata Steel - Corus

63. HR’S ROLE IN M & A
 Buying a company – not just – land and buildings –
equipment – and other physical assets – also investing –
in talent acquisition – intellectual capital ; knowledge ,
skills and abilities
 Without ‘People’ Side – Successful integration – not
possible
 Employee concerns – job security – compensation
structure-reward structure – growth avenues – cultural
issues – mount up
 HR- allay the concerns of employees – lay offs –
compensation practices – job profiles – reporting
relationships

64.  Need to create a dedicated and skilled leader and
team for overseeing M & A activities
 Need to understand the cultures of both companies
 Merged entity – culture shock
 HR- align – right people with the appropriate KSA’s –
to meet the shared objectives of the enterprises
 HR – advise top management – organization
structure – policies – compensation structure
 Two-way Communication

65. DOWNSIZING

66. DOWNSIZING
 Rising costs , business survival , recessionary
conditions , fat wage bills , organization re-
structuring
ROLE OF HR IN DOWNSIZING
 Some employees are faced with job loss
 Survivors – grapple with uncertainty
 Many talented employees-quit in a hurry
 Aftermath-downsizing-wounded workforce- stressed
and demotivated

67.  HR – play a key leadership role – before – during and
after the downsizing – aimed at bring everything
back to normalcy
 Firstly – Employee involvement – All levels of
organizations into confidence – cost saving ideas –
flexible work schedules – rewards and benefits could
be re worked – what can be outsourced at cheaper
costs – consultative approach
 Secondly – Communication – two way – reasons for
downsizing – how it benefits the organization – what
would happen to those – asked to leave
 Thirdly - while identifying ‘at risk’ employees – moral
and ethical values – no biases

68.  Fourthly , Outplacement programs
 Fifthly – Counseling
 Sixthly – T &D – for survivors – to adjust to
the new challenges – brought in by ‘new look’
organization

69. TECHNOLOGICAL CHANGE & HR
 Advent of technology – jobs upgraded – human
resources (workers) change – from illiterate / unskilled
worker to educated / skilled worker
 Introduction of new technology – dislocated some
workers – rehabilitation
 Knowledge workers – increased wages ,incentives and
quality consciousness
 Techno-structure
 Training & Development –
 upgrade existing employee skills and knowledge
 Service sector – strong interpersonal and communication
skills

70.  Downsizing - lower end jobs
 Work demands as a consequence of Technological
changes –
 Telecommuting
 Relocation of work from office to employees home
 Telecommuting – working from home – usually with
computers , Internet and phones – Accenture , IBM
Intel , Wipro
 Telecommuting zones in offices – work stations –
only for telecommuters – who come in on certain
days

71.  Flexible Work Arrangements
 Flexible work schedules – shorter workweeks – 3
twelve – hour days or 4 nine – hour days
 Flextime – employee- chooses daily starting and
quitting time – provided that – they work a certain
number of hours per day or week
 Job Sharing – two part time employees – perform a
job – that otherwise would be held – by one full time
employee ( also – working couples with young
children , elder employees)
 Internet revolution - Managing Virtual Corporations

72. ORGANIZATION CULTURE
 Values , Attitudes and Beliefs – common
 US – India – Saudi Arabia
 Similarly :
 Infosys – Wipro
 Tata – Reliance
 Walt Disney – fun at work
 General Motors – Hero Group

73. ORGANIZATIONAL CULTURE CONTD.
 Grooming managers from within vs External
Recruitment
 Seniority vs. Merit
 Generalist or Specialist
 Clothes – Formals or Informals
 Communication – Formal channels vs. informal
channels

74. TOTAL QUALITY MANAGEMENT - TQM
 Quality has become – the most important word – in
the corporate dictionary
 Product Quality and Service Quality
 Doing things right the first time – every time
 Continuous improvement of – skills – teamwork –
processes – product and service quality – customer
satisfaction

75. ROLE OF HR IN TQM
 Quality persons give Quality products and services
TQM allows employees to exploit their - best in them -
full potential
Employee Involvement ( Commitment)
 Organization Culture ( Quality consciousness)
 Theory Y assumptions , motivation , access to
information , advanced tools and techniques –
empowered to give quality products and services
 Team Building (synergy - interdependency , - including
QC – self managed teams)
 Training & Development

76. REENGINEERING
 TQM – continuous incremental change
 Where an organization requires a drastic , quantum change –
in order to survive – in a fiercely competitive market
 Reengineering – radical , quantum change in an organization
 radically transformed business processes
 Fundamentally – better way of doing things
 Insurance Corporation
 Technology driven companies – more scope
 series of processes – strategic planning to after-sales
customer support – decide to what extent each adds value -
better and more cost effective way of doing things
 TELCO , L & T , Ranbaxy , Crompton Greaves – brought about
radical changes through reengineering

77. • Cotton Cleaning – Weaving – Spinning – Dyeing – Printing
– Quality Control
• A process is a series of steps or tasks aimed at
accomplishing a defined business o b j e c t i ve.
There are :
o manufacturing processes
o accounting processes
o credit approval processes
o material receiving processes
o inspection processes
o product design processes, and so on. A business can
have hundreds of processes and most processes can be
bro ken into smaller and processes .
FOCUS ON HOW WORK IS DONE -Maximum customer
value at least cost

78.  Traditionally we have done it this way - Remove the
non-value adding processes
( computerization)
 For example, radical and fundamentally new BPR
ways enabled Motorola to slash order fulfilment for
paging devices from 30 days or more to 28 minutes
and progressive insurance to slash the claims
settlement from 31 days to 4 hours.

79.  A Chinese manufacturer that sells to the US has come
up with a novel way of saving costs. When the ship sets
off from Shanghai, it has onboard only a few of the raw
materials that go into the final product. Instead of the
route traditionally taken by North America bound
vessels, it stops at ports depending on where it needs
to pick up the next set of components from, till it
finally reaches North America. The raw materials are
converted into appliances onboard this 'floating
factory'. Not only does this mean savings on factory
costs, but the company is also making optimal use of
the travel time, normally the most unproductive part
of the whole distribution process.

80. HR’S ROLE IN REENGINNERING
PROCESS
 Employee involvement – to build commitment to
reengineering
 Can hire people – who can work in process-oriented
teams – sharing their skills and expertise freely –
creativity and innovation
 Open Communication – brainstorming -
transparency – trust
 Training & Development – to improve their
technological skills - team related skills

81. OUTSOURCING AND HRO
 Outsourcing – is obtaining work previously done by
employees inside the company – from sources
outside the company
 Focus on core activity- outsource to cost effective
specialized agencies
 excellent quality – reliable supply – low price
 Dell outsources – manufacture of its computers –
concentrates on web-based direct sales activity
 Nike and Reebok – focus on core strength – in design
and marketing – and outsource all footwear
manufacturing

82.  Off shoring – refers to the movement of jobs overseas
 Almost any job – white collar or blue collar – can be
performed in –India , China , Philippines , Brazil – for a
fraction of US wages
HUMAN RESOURCE OUTSOURCING (HRO)
 HRO is a process – in which a company utilizes – the
services of a third party – to take care of its HR function
 A company may outsource – a few or all its HR functions
– service providers
 Pay roll - health benefits – recruitment – record keeping
– training & development
Substantial savings in cost and effort
 Unilever – HR functions to Accenture

83. CHANGING TRENDS IN WORKFORCE -
DIVERSITY

84. CHANGING TRENDS IN WORKFORCE
DIVERSITY
 When employees differ from each other in terms of age
– gender – education – religious affiliation – disability
status – nationality
 Challenge – talented employees with different
backgrounds and expectations – and to mould them –
into a focused and dedicated workforce
 Composition of workforce
 Accommodates three different generations
 The Baby Boomers ( born between 1946 – 1964)
 Generation X ( born between 1965 – 1979)
 Generation Y ( born after 1980)

85.  Dealing with ageing workforce
On Exit-
 Culture change
 Knowledge gap- deep relationships gap – extensive
training gap
 Leadership gap – senior levels
Overcome problem :
 Retention planning – key employees
 Succession planning
 Targeted selection – important attributes – captured
in selection system
 Culture change

86.  Entry of Educated women at work
 women employees today – constitute a major share
of the workforce
 Software Industry in India – nearly 35 % are women
 Accounting , hospitality , banking , insurance ,
airways , police , and even driving
 Amrita Patel – Chairman NDDB , Indira Nooyi –
Chairman Pepsi , Chanda Kochar – Joint MD ICICI
Bank , Indu Jain – Chairman Times Group and Kiran
Mazumdar Shaw – Chairman and MD Biocon

87.  Temporary workers - Temps
Temporary basis generally on short-term projects – also
known as Temping
 Temporary employee – who works with a client company
– but is on the pay roll of a third party staffing agency
 Temping – India – after early 1990’s – constantly
churning markets – avoid extra welfare costs payable to
permanent workers
 Companies – when bombarded with extra work – , to
meet additional demand for refrigerators or AC’s during
summer – temps – after season over-discontinue

88.  When the company – does not have employees –
with specific domain (area) expertise – tap temping
agencies – high standards of quality and save costs –
when the work ceases to exist
 If qualified temps are found useful for the
organization – in the long term – one can offer them
a permanent job
DIVERSITY MANAGEMENT STRATEGIES
 Open Communication and encouraging feedback –
learn about a group’s personal value – and
understand how individuals like to be treated –
disabled – senior citizens

89.  Awareness building – Companies – developing
awareness campaigns – to help employees –
understand the pain of harassment and indignity –
the way assumptions affect their behaviors ,
decisions and judgment
 Diversity training and skill building – skills required
to manage a multicultural – diversified workforce –
also imparting interpersonal skills – listening and
giving feedback
 Organizational practices – Flexible work schedules –
accommodating various religious festivals – benefit
packages with insurance for bigger families – leaves
for hometown visits – once a year – paternity leaves

90. WORK LIFE BALANCE (WLB)

91. WORK LIFE BALANCE (WLB)
 Life in the 21st century – intense competitive
environment – the invasion of information
technology ( time zones) – work alcoholics - the race
to be first and best performance culture
 Sacrificing – family , kids , relationships , friends ,
community , energy
 Weekend parents
 Never time for relaxation – visit parks and museums
 Heart ailments – sleep disorders – depression –
irritability – insecurity – and even nervous
breakdowns
 excessive smoking – drinking – gambling

92. Companies – deal with –
 Different clubs – Theatre Club – Adventure and
Trekking club – Fitness club – Music club and
community services club
 These clubs organize – yoga – dance lessons – music
competitions – trekking expeditions – sports
activities-regular visits to NGO’s (TCS)
 Flex time
 paternal leave
 women employees – sabbaticals (Infosys)
 Begin the day with yoga , meditation and health
food breakfast (Hero Motors)

93. THE ECONOMIC ENVIRONMENT AND HR
 Most global economies inter-connected
 Tight economic conditions – recession - Downsizing
– lean and mean organization
 VRS and Retrenchment – out placement – financial
and psychological counselling
 Compensation competitive – less employees-best
employees
 IR becomes market-driven rather than ideology
driven

94. THE SOCIAL ENVIRONMENT AND HR
 Beliefs – values – customs – traditions - MNC- US ,
Australia , Bangladesh , Africa – different cultural
backgrounds – organization acquires distinct culture
 Attitude of employees towards work – is a result of their
cultural background
 Peoples orientation – Past , Present , Future – roots in
culture
 Japanese – Futuristic – life time employment
 Americans – Present – as long as useful to the orgnz. –
dispense once not – loyalty not that important
 Saudi Arabians – Past – continuing as per traditions of
organization

95.  Culture as a result of social forces – confines them to
specific occupations – Workers in Tea Plantations in
Assam
 cannot work in Bengaluru / Delhi
 Their food habits – dress sense – language is fit for
tea plantations of Assam
 Similar is the case with – Workers in diamond
cutting units at Surat in Gujarat

96. ORGANIZATIONS
INTERNAL ENVIRONMENT
EFFECTING HR

97. ORGANIZATIONS STRATEGY AND ITS
EFFECT ON HR
 Diversification
 Expansion
 Becoming a Global Corporation
Effect on :
 Recruitment & Selection
 Training & Development
 Compensation
 Culture

98. ORGANIZATIONAL CULTURE AND ITS
EFFECT ON HR
 Grooming managers from within vs External
Recruitment
 Seniority vs. Merit
 Generalist or Specialist
 Clothes – Formals or Informals
 Communication – Formal channels vs. informal
channels

99. ORGANISATIONS FINANCIAL POSITION
 Profitable Periods : larger bonuses – enhanced wage
and salaries – profit sharing – incentives –
perquisites
 Financial difficulty : Downsizing – cut of training
budgets – recruitment freeze – freeze on increments
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100. STRATEGIC HRM
 originated from the Greek term ‘ Strategia’
Strategy : Art of being a general
 Greek Generals needed to :
 lead an Army
 win
 hold territory
 destroy the enemy
 Each objective needed a different deployment of
resources
 Bangladesh war – food supply

101.  Strategy
 Planning Component
 Action Component
 Formulation of a goal and a set of action plans for
accomplishment of that goal
 A Strategy is a comprehensive (detailed) and
integrated ( all plans are compatible) plan designed
to ensure that the basic objectives of the
organizations are achieved

102. STRATEGIC MANAGEMENT PROCESS
•ACTION COMP.
•POLICIES
• PROCEDURES
• BUDGETS
• STRATEGIC
CONTROL
PROCESS
• CORPORATE
• BUSINESSS
UNIT
FUNCTIONAL
• EXTERNAL
• INTERNAL
ENVIRONMENTAL
SCANNING
STRATEGY
FORMULATION
STRATEGY
IMPLEMENTATION
EVALUATION
AND
CONTROL

103. ENVIRONMENTAL SCANNING
 Environment Scanning – determine trends and
projections – of factors that will effect fortunes of
the organization
 SWOT Analysis
 Helps identify threats and opportunities – prevailing
in the environment
 In formulating strategy – organization :
• Advantage of the opportunities
• minimizing threats

104.  What might be a threat to one company – may be an
opportunity for another
 The oil crisis of 1970’s –
 threatened oil-fired electrical utilities
 provided great opportunity for coal producers and
shippers

105. STRATEGY FORMULATION
 Strategies are formulated at 3 levels :
 Corporate Level
 Business Unit Level
 Functional Level
Corporate Level Strategy
 formulated by top management
 more than one level of business

106. CORPORATE LEVEL STRATEGY
TATA
TELECOM
TATA
MUTUAL FUND
TATA
SALT
TATA
CHEMICALS
TATA
TEA
TATA
MOTORS
TATA
STEEL
WESTSIDE
RETAIL

107. ENVIRONMENT SCANNING STRATEGY FORMULATION
Insurance sector will be opened up to
private sector
Diversify into Insurance
The demand for chemicals will no longer
be profitable
Hive off Tata Chemicals
Steel is a core competency with the Tata
Group
Acquire Cores and merge with Tata Steel
Tata Motors – surplus of funds ; Tata
Mutual Funds - deficit on cash flow
Pump cash flow from Tata Motors to Tata
Mutual Fund – according to regulations

108. BUSINESS UNIT LEVEL STRATEGY FORMULATION
- WESTSIDE ( RETAIL)
OBJECTIVE / GOAL : To be the market leader in Retail
Garments in India and record its presence overseas
STRATEGY
 Increase market share from 22% to 45% over the next
two years
 Shift focus to exports
 Launch new products in wool and silk
 Pricing strategy – focus on volumes rather than units
 Increase production capacity from 1,00,000 units per
month to 2,50,000 units per month within the next 2
years

109. FUNCTION LEVEL STRATEGY ( MARKETING)
 Focus on Europe , US , Middle East and Africa Export
markets
 Increase retail distribution outlets from 250 to 400
outlets within the next two years
 Launch Gymania , Sparta , Revelin and Cider products in
the market
 Develop Distributor relations
 Expand advertising to electronic media and the Internet
 Top priority to CRM
(Linking of Corporate – Business Level – Functional)

110. STRATEGY IMPLEMENTATION
After strategy formulation – strategy implementation
 For example :
 opening new offices
 adding new departments
 closing facilities
 hiring new employees
 changing pricing strategies
 implementing cost control procedures
 Transfers

111. STRATEGY EVALUATION
 Establishing performance targets for the strategies
 Measuring the performance in relation to the
targets
 Analyze deviations from acceptable tolerance limits
– inform managers to take action
 Execute modifications where necessary

112. CORPORATE
STRATEGY
PRODUCTION
STRATEGY
MARKETING
STRATEGY
FINANCE
STRATEGY
HR
STRATEGY
ORGANIZATION
GOALS

113. CASE STUDY – I ; HR STRATEGY FOR
ORGANIZATIONAL REVIVAL
 1970’s – 1980’s
 Textile Industry of Ahmedabad was becoming known
as a declining industry
 Centuries old business – declining
 Organization Goal – Turnaround to the Company’s
business
 Corporate Strategy – Concentrate on the product
called ‘ Denim’ – which had high demand in the US
Market – Company – MNC in a given period of time –
with a high market share of ‘denim’ - Turnaround to
the Company’s business

114.  HR Strategy – Get the right talents through external
sources – who can stay with the company – in its long
journey of expansion and growth
 It hired a professionally qualified HR Manager –
Textile Engineer – IIT and PGDM – IIM – Ahmedabad
 New entrants- were offered lucrative compensation
packages – which included high remuneration and
attractive benefits – like house loan – amounting to
Rs. 50 lakh at almost 0 % interest – repayable in 25
years
 Age around 25 – 28 – having a house of their own –
in a prestigious residential city like Ahmedabad –
proved to be a boon

115.  Once a young talent – joined the organization
– he could not think of opting out – so the
professionals continued in the job and gave
their best
 The organization was – able to realize – its
goals – through high performance – higher
market share of denim in the market – and the
Company became an MNC with
expansion/growth plans

116. CASE STUDY - II
 1980’s – 90’s
 Corporate Strategy : Restructuring – around core
businesses – hiving out poor performing businesses
 HR Strategy – Effective communication system – to ‘tell
and sell’ VRS
CASE STUDY – III
 Corporate Strategy : Cost cutting to survive competition
 HR Strategy – Downsizing
 Outplacement – freezing recruitment – pay for
performance – reducing perquisites – re training
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