NAME OF THE BOOK: STRATEGIC HRM AUTHOR: JEFFREY A.

MELLO LESSON 1 AN INVESTMENT PERSPECTIVE OF HRM Introduction: In business, we should have a competitive advantage over its competitors More & more organizations are realizing that critical source of competitive advantage comes from having: & managing its people. If people provide competitive advantage, then people should be considered as an asset. In assets we invest in terms of development Competitive advantage means that which cannot be copied or duplicated. people’s creativity / innovation cannot be duplicated Sources of employee contribution: Knowledge Attitude Valuation of Assets: Any organization has five kinds of assets that it can leverage to aid in performance & add value to the operations. They are: Financial: Examples: Equity / Securities & Investments / Accounts receivable Physical: Examples: Plant / Land / Equipment / Raw material Market: Examples: Goodwill / Branding / Patents / Trademarks / Copyrights Operational: Examples: Management Practices / Structure of Work / Technology Human: Examples: Competencies / Commitment / Attitude The Hidden leverage of Human Capital The following are the broad critical areas of operation: Strengthening key relationships with both internal / external customers Leveraging downtime by improving productivity Refocusing staff on core activities that provide competitive advantage Building returns on compensation, by linking performance to pay Factors influencing investment orientation

Management values: Attitude towards risk Nature of employee skills Utilitarianism Availability of outsourcing ASSIGNMENT: 1 Obtain the annual report for a fortune 500 company of your choice. Review the material presented & the language used in the text. Write a one page memo that assesses how investment oriented the organization appears to be towards its human assets? ASSIGNMENT: 2 Compare & contrast the similarities & differences among organizations you investigated. Can you isolate any factors that appear to influence how an organization perceives the values of its employees? ASSIGNMENT: 3 Why can some organization that fails to invest heavily in human assets still be financially successful? Why can some organization that does invest heavily in human assets still be financially unsuccessful? ASSIGNMENT: 4 What challenges exist relative to valuation of human assets & measuring human capital? ASSIGNMENT: 5 Visit an industry. Try to isolate any factor that appears to influence how an Organization perceives the value of its employees? LESSON 2 TRENDS AFFECTING HRM Introduction: The employment relationship is undergoing a change on account of Technology Demographics & Diversity Globalisation Impact of Technology: Technology includes tools, machinery, equipment, work procedures, employee knowledge & skills Challenges that technology presents for human resources management: Requires changes in skills & work habits of employees Elimination of some lower level positions & layers of management Telecommuting options Opportunities presented by Internet Electronic monitoring & employee privacy

or contingent or temporary employment. The use of project teams helps to address this issue Employees with higher levels of training. managers must remain cognizant of the work related dimensions of diversity in ensuring that employees are managed & given job assignments that allow both maximum satisfaction & productivity An Organization needs to strategize its approach in dealing with diversity by determining its important for the Organization? Articulate how diversity relates to the mission & strategic objectives of the Organization? Define diversity & determine how inclusive its effect will be? Determine specific types of diversity initiatives that will be undertaken Globalisation: We will see in International HRM ASSIGNMENT: 1 Why might an organization resist establishing a telecommuting program for its employees? Under what conditions will telecommute programs be .e-HR Ethical Behaviour Workforce Demographic Changes Composition of workforce is undergoing a change One of the notable consequences of these new workplace dynamics is that there is now increased emphasis on the management of professionals. independent consulting. Diversity: Managing diversity is the biggest challenge to the management & especially to HR professional The individual diversity has two sources: Personal : Race / Age / Religion / Gender / Sexual orientation Work related: Motivation / Job responsibilities / Employment status While most diversity initiatives cover some combinations of personal dimensions. Employees are becoming more proactive & taking their career management into their own hands rather than leaving the responsibility to with the employer Personal & family life dynamics continue to evolve & create challenges for organization An increasing number of employees are opting for non-traditional work relationships often in the form of part-time work. education & skills are demanding more meaningful work & more involvement in organizational decisions that affect them. We need new strategies for managing & retaining employees.

What challenges do these trends present? What initiatives have been established thus far to meet these challenges? ASSIGNMENTS 3: Ask a HR manager as to what are the challenges posed by those born in 70s? How did / does he handle the same? ASSIGNMENT 4: Ask a HR manager as to what are the challenges posed by those born in 80s? How did / does he handle the same? ASSIGNMENT 5: Ask a HR manager as to what are the challenges posed by generation Y? How did / does he handle the same? ASSIGNMENT 6: Ask a HR manager as to what are the challenges posed by diversity? How does their organization handle the same LESSON 3 STRATEGIC PLANNING Strategic Management Process of determining how the organization’s long-term objectives are to be met.most effective? ASSIGNMENT: 2 Identify & discuss the significant trends related to technology that impact your college. It is formulated by CEO & his team Models of strategy: SWOT analysis The process of strategic management consists of: Vision statement Mission statement Analysis of External environment which includes Identify key players / Aware of Opportunities & Threats / Government regulations / Technology / Market trends / Economic trends Internal environment which includes Resources & Management Systems Goals Strategy Types of Strategies: Corporate: Types: Growth / Stability / Turnaround Business Unit Strategies: Types: Cost Leadership / Differentiation / Focus Linking People with the strategic needs of the business: The 5 P Model The five HR Ps are: Philosophy .

Your answer should be industry based. LESSON 4 THE EVOLVING / STRATEGIC ROLE OF HR: Introduction: SHRM involves making the function of managing people most important . & sustain strategic Organizational change efforts necessitated by the strategic business needs HR Practices The roles the individual assumes in an HR Processes: Defines how HR activities are carried out ASSIGNMENT: 1 Select a particular industry & identify at least three major competitors in that industry. besides turnover strategy. Visit their websites & identify key strategic issues within the industry as well as key strategic issues for the individual firms ASSIGNMENT: 2 What are the keys factors in the environment that impacts the Institute’s performance? What are the key resources & how can they best deployed? ASSIGNMENT:3 In recession a SBU adopts which type of strategy? Your answer should be industry based. what are the other types of strategy Corporate can adopt.Policies Programs Practices Processes The Strategic business needs of an Organization are: Survival / Growth / Adaptability / Profitability Business needs should be translated into specific actionable statements. ASSIGNMENT 4: In recession. disseminate. which are called strategic business objectives HR Philosophy states: How does Organization regards its people Also includes Organization’s Culture HR Policies: People-related business issues are those that affect the immediate & future success of the business HR Programs HR efforts specifically intended to initiate.

& fear of change with excitement about its possibilities Critical HR Competencies: . planning with results. Profitability through growth To increase revenue be in touch with fast changing needs of the customers.priority in the Organization & integrating all HR programs & policies within the framework of an Organization’s strategy. It translates Organization’s objectives into specific people management systems Why HR matters now more than ever: Regardless of their industry. & retain individuals who can drive a global Organization Change. & take on new strategic imperatives faster & more comfortably For this the organization must create a healthy discomfort with status quo. SHRM realizes that people make or break an Organization SHRM involves the development of a consistent aligned collection of practices. or location Organizations are today are facing five critical business challenges. The four different roles a HR function can assume: Becoming a Partner in Strategy Execution Ensure people related policies are in alignment with strategic objectives Becoming an Administrative Expert Improve the efficiency of both their function & the entire O Becoming an Employee Champion Ensuring that employees are engaged. Globalisation: Today market is becoming global. programs. & more Change: Learn rapidly & continuously innovate.The challenge for managers is to make sense & good use of what technology offers Intellectual capital Attract. committed & contribute fully to the Organization Be employees voice in management’s discussions Becoming a Change Agent Replace resistance with resolve. size. Technology It has made the world smaller. & policies to facilitate the achievement of the Organization’s strategic objectives. develop. Change.

exploit market opportunities & or neutralize potential threats.Strategic contribution Business knowledge Personal credibility HR delivery HR technology Employment model: The characteristics of human capital are: Strategic value The extent of human being’s potential to improve efficiency / effectiveness. more dynamic organization Sharper focus on customer needs / key & emerging markets / quality What does HR Strategy contain? HR Planning & Design of Jobs & Work System . the greater potential source of competitive advantage it would provide The above two dimensions produce the following four types of employment model Knowledge based employment It is commitment based HR configuration Job based employment It is Productivity based HR configuration Contractual work arrangements Compliance based HR configuration Alliances or partnership arrangement Collaborative based HR configuration Much of the work is outsourced to outside vendors Outcomes of Strategic HRM Increased Performance / Customer & Employee Satisfaction / Enhanced Shareholder’s Value THROUGH Effective management of staffing / retention / turnover through selection of employees that fit with both strategy & culture Cost-effective utilization of employees through investment in identified human capital with potential for high retention Integrated HR programs & policies that clearly follow from corporate strategy Facilitation of change & adaptation through flexible. Uniqueness The degree to which it is specialized & not widely available. The more unique an organizational human capital.

& check the type of employment which exists? ASSIGNMENT 3 To be a true strategic partner.A model of HR-Shareholder Value Relationship consists of Business & Strategic Initiatives Design of HRM System Employee Skill / Employee Motivation / Job Design & Work Structure Productivity / Creativity / Discretionary Effort Improved Operating Performance Profits & Growth Market Value Barriers to Strategic HR Focus on current performance Many HR professionals lack business knowledge. resist change Most of these barriers are rooted in the culture of an O. O’s history. does HR need to take on a more generalized or specialized approach to its work? Why? ASSIGNMENT 4 Visit an industry. Line’s manager’s perception of HR is that it is inflexible & rules oriented Few functional managers see themselves as HR managers Difficult to quantify many of the outcomes & benefits of HR programs. Incentive for change is very high. Ask him the reasons for: Increased performance Customer & employee satisfaction Enhanced shareholder’s value LESSON 5 . Interview the HR Head. values. & management practices can act as disincentives for any change initiative ASSIGNMENT 1: Select a local Organization & investigate whether the role of HR is strategic or traditional by interviewing selected key decision makers? ASSIGNMENT 2 Visit a local manufacturing / service / IT / BPO industry. Because people have a habit & enjoy maintaining status quo. Ask him as to what are the barriers he is encountering in taking up the strategic role? ASSIGNMENT 5: Interview the CEO of a company.

compensation. complimentary set of programs & policies for managing employees The first component of HRM strategy is human resource planning. then human resource strategy can begin to developed The HR strategy involves taking the O’s strategic goals & objectives & translating them into a consistent. technology. regulation. integrated. The second component is the design of work system All other functional HR activities such as staffing. particularly the status of the economy. & employee separations are derived & should flow from the HRM planning process HR planning involves making assumptions about future.HR PLANNING Introduction: Once the corporate & business units strategies have been established. labour relations. & internal operations. competition. training. & resources. performance management. It can be bottom up or top down planning or both Succession Identifying key management positions that the O cannot afford to have vacant Serves the following two purposes: · Facilitates transition when an employee leaves Identifies developmental needs of high potential employees & assist with their career planning Strategies for managing shortages Recruit new permanent employees Offer incentives to postpone retirement . Objectives of HR planning: Prevent overstaffing & understaffing Ensure the O has the right employees with the right skills in the right places at right times Ensure the O is responsive to change in its environment Provide direction & coherence to all HR activities & systems Unite the perspectives of line & staff managers Types of planning Two types: Aggregate & Succession Aggregate Forecasting the demand for employees The single greatest indicator of the demand for employees is demand for the Organization’s product or service.

so candidates can express an interest in pursuing leadership track positions. It can used to evaluate positions requiring core strategic competencies. which requires these core competencies Form candidate pool to match single or multiple positions Design Shift 2: Candidate Choice: Designing the process. Across the board pay cut Layoffs Reduce outsourced work Employee training Switch to variable pay plan Expand operations New Succession Planning Paradigm: There are five design shifts that are important: Design Shift 1: Core Capabilities / Competencies Design Shift 2: Candidate Choice: Design Shift 3: Competency-Focussed Development Design Shift 4: More Communication Openness Design Shift 5: Continuous Review Design Shift 1: Core Capabilities / Competencies Identify core capabilities of the business From this a leadership competency model is defined. This makes more opportunities available for diversity candidates The new process must also accommodate the individual candidate as a team member & not just an individual contributor Design 3: Competency-Focussed Development . Create position pools.Rehire retirees part time Attempt to reduce turnover Work current staff overtime Subcontract workout Hire temporary employees Redesign job processes so that fewer employees are needed Shortages for managing surpluses Hiring freezes Do not replace those who leave Offer early retirement incentives Reduce work hours Voluntary severance.

Design the development process to make it more focussed on learning of competencies necessary for business success. & more of a continuous review system rather than a ritualised annual planning event Design Issues to be addressed: The system must make sense for & be usable by different business units. more fluid. The design needs to accommodate the reality that people will change employers & possibly careers several times during their working lives. help candidates understand the expectations of the new leadership competency model Design 5: Continuous Review Design the process to be more ongoing. This requires change in assumptions about what characterises success. rapidly growing technology company · A medium-sized non-profits O · A state government agency social service agency · A professional sports franchise · A company planning on acquiring or merging with a key competitor . It also requires more structured & managed development tracks that can provide the broad based exposure & skills in a shorter period of time Design 4: More Communication Openness Design the entire process to be more open & less exclusive & secretive. The pace of change & competition requires that executives begin to think differently about where & how the organization’s future leadership is developed. each having some unique needs The system must have a process to focus & guide the development of executives to meet strategic purpose The system must align with other human resource process that are also undergoing transition The system must assure that a cadre or pool of potential leaders is being prepared for executive positions The system must be owned by the senior management team The system must deal with diversity issues & changing demographics The system must add value & contribute to business success in some measurable way ASSIGNMENT 1: What role might HR planning play in each of the following Organizations: · A small. The new process needs to foster more open dialogue.

ASSIGNMENT 2 Discuss the pros & cons of informing employees that they have been targeted as part of the organization’s succession planning process. which the employee has to perform to achieve the Organizational goals? Assess the knowledge. skills & capabilities needed to perform the duties Duties change whenever the goal changes. What employees need? In designing work system. What particular business conditions & / or strategy might make telling or not telling the more advantageous option? ASSIGNMENT 3 How does HR add value by being more strategically proactive than reactive? Can / should HR be both strategically proactive & reactive? ASSIGNMENT 4 Visit an industry. Employers must consider the following universal needs / wants which will motivate the workers & make them productive & satisfied No biases should exist in any people related policies / programs Work / life balance Want to be heard Workplace safety Involvement How jobs interface with other jobs . If duties change. & explain how senior managers do succession planning for their position? LESSON 6 DESIGN & REDESIGN OF WORK SYSTEMS Design of work systems: The following three factors have to be considered in designing jobs: What employees do? What employees needs? Interface with other jobs in the Organization What employees do? List down the duties. competencies also undergoes change Ensure employees are engaged. it is essential to consider the needs / wants of workers. Goal changes whenever there is a change in the environment.

There are several reasons for such resistance like: Perceived costs of change Disrupts status quo Uncertainty Commitment of resources which could be deployed otherwise Risk involved . Strategic Work Redesign: Outsourcing Offshoring Mergers & Acquisitions Guidelines for HR Outsourcing Making the Outsourcing Decision Selecting & negotiating with outsourcing vendors Managing internal resistance Managing vendor relationship Monitoring & evaluating vendor performance Understanding Change: Despite the need for & pressure to change. The greater volatility in the environment. All done to increase efficiency & enhance performance. jobs are designed not solely around technical measures for efficiency but around strategic choices made by management. otherwise it will backfire With flattening of OS the work has to be done in teams & projects. the greater the need for more flexible adaptive work system In reengineering. but within a framework of the Organization’s rules & regulations Sequential Output of one becomes input of other Reciprocal Workflow is not linear but random Redesign of work system: In competitive environment. unnecessary activities that add no value are eliminated. any change initiatives in O are often met with resistance. Reengineering has to be done by taking people into confidence.There are three types of interdependencies: Pooled Individuals work independently. tasks are outsourced work is consolidated.

Poor coordination & communication often undermine change initiatives Managing Change: The challenge before management is as to how to overcome resistance to change Following actions are proposed: Plan to promote & implement change Invite participation Have two way communication The Job Characteristics Model: Model developed to design enriched jobs The model illustrates relationship between redesigned jobs & ultimate performance The model suggests that any job has five core characteristics which impacts certain psychological states of the employee that in turn has an impact on work related outcomes The five core characteristics are: Skill variety Task identity Task significance Autonomy Feedback The work outcomes of the above model are as follows: High internal work motivation High quality work performance High satisfaction with work Low absenteeism & turnover ASSIGNMENT 1: Apply the job characteristics model to the following positions: An order taker at McDonald’s An usher in E-Square A receptionist in an Office A manager of an auto rental company An insurance salesperson ASSIGNMENT 2 How Offshoring affects the economy of the country.Employees fail to perceive any benefit for themselves If employee fail to see any real need to change the design of work system they are less likely to support the change in their job or work environment. Do you feel that it will ..

For the performance of the firm depends upon the individual it employs. Decisions made as a part of staffing process has a significant impact on an firm’s bottom line The activities performed as a part of recruiting & selection offer an firm numerous choices for finding & screening new employees. remains a key strategic area for HRM. our exchange rate: $1= Rs. pay for performance & flatter O S affect the types of individuals & skills that firm seek & influence how firms find & screen applicants. Speed is an essential . for the simple reason . leaner staffing & operating with fewer full time permanent employees. the process of recruiting applicants & selecting prospective employees. smaller autonomous units. or it will simply result in higher unemployment & an erosion of the consumer segment of our economy? ASSIGNMENT 3: Comment: Lot of jobs are getting outsourced to India. The day the Indian rupee becomes stronger that is $1= Rs. then India will loose its charm as destination for offshore / outsourced jobs. Recruitment: Temporary versus Permanent: Internal versus External Recruitment: When & How to extensively recruit: Recruitment process is time consuming process. It involves time & financial costs. Enquire from the HR Head about its performance? PART 2: IMPLEMENTATION OF SHRM STAFFING Introduction: Staffing. Trends such as broader job scope & responsibilities.. 40/-. Staffing takes on even greater importance in the service sector The most important part in staffing is ensuring that employees fit with the culture of the firm Hence staffing process must be strategically focussed.10.cause domestic organizations to become more competitive in the global market place through increased efficiency & reduced costs. ASSIGNMENT 4: Visit an industry that has outsourced some HR activities. These options have a significant impact on an firm’s efficiency.

It is subjective process. Avoid the following mistakes: Similarity errors Contrast error: First impression error: Halo error: Horn effect: Testing: It is objective in nature It is matching the profile of the candidate with that of the Organization Preferable if done before the interviewing process References: Do it before calling the candidate for interview Do reference checking mainly on the value system for which the Organization stands International Assignment: Focus on more interpersonal & acculturation abilities Check the following abilities of the candidates: Adaptability Open-mindedness Ability to tolerate uncertainty & ambiguity . or criteria determine whether they are Reliable Valid Interviewing: Decisions made in selection making process are most critical. & these decisions need to made with great care Before deciding any selecting tools. Take different perspectives. An firm must determine when to begin its recruitment efforts to ensure that trained employees will be ready when the firm needs them Methods of Recruitment: The most important factors in this process is balancing between cost & effectiveness of any methods Selection: Selection decisions can & do have significant economic & strategic consequences for O.ingredient in today’s business.

Take any position. & what was the CTC offered to the new incumbent? Also enquire how long it took to fill the position [starting point the date of resignation to the date of issue of offer letter to the new incumbent? ASSIGNMENT 2 What are the various cost effective methods of recruitment? ASSIGNMENT 3 What are the methods followed by a firm to ensure cultural fit? TRAINING & DEVELOPMENT: Introduction The outcome of any Training / Development program should have an impact on bottom line of the firm Planning & Strategizing Training Consists of four steps: Need assessment Establishing objectives & measures Delivery of training .Independence Also interview the family members Medical Check Up Done to avoid compensation claim Conclusions: Staffing is the core component that forms the backbone of an integrated strategic system of human resources management by ensuring that there is optimal fit between employees & the strategic needs of the Organization If Organization ‘s staffing is deficient. which ha been recently filled. Enquire recruitment cost for that position? Which factors were taken into consideration for determining the recruitment cost? Also check what was the CTC of the employee who left. Good training will not fix bad selection ASSIGNMENT 1 What are the elements one has to take into consideration while determining recruitment costs? : Visit an industry. the effectiveness of its HR programs & policies will be impaired.

Calculate the ROI in term of rupees of the said training program. Enquire as to which was the recent in-house training program conducted in last month. ASSIGNMENT 2: What are the competencies needed for global leaders in government? What .Evaluation of training Need assessment: Done at Organizational Task Individual Process of Training & Development Objectives Design & Delivery: Consider the following two critical issues: Interference Transfer Have strategy to overcome the above two issues Evaluation Reaction Learning Behaviour Results Integrating training with Performance Appraisal & Compensation Through Performance appraisal we assess performance If performance as per standards Reward / recognize the performance If gap in performance Provide Training Again assess performance If performance improved reward or recognize the employee Conclusions: It is a means to determine the extent to which human assets are viable investment ASSIGNMENT 1: Visit an industry.

The following are the critical guidelines with respect to feedback process:: .similarities & differences exist from those needed in private industry? To what can these similarities & differences be attributed? ASSIGNMENT 3: What key factors influence the success of the training programs? ASSIGNMENT 4: Develop a tool to evaluate the learning / training taking place in the course in which you are enrolled? ASSIGNMENT 5 Visit an industry & find out how do they identify training needs based on performance appraisal? ASSIGNMENT 6 Visit an industry. The firm should strike a balance between the two Performance management system is not measuring the performance but also providing feedback to the employees on the process. following critical factors must be considered when developing an effective performance management system Ensure the link between the performance management system & training & development & compensation Have criteria for strategic initiatives that involve long range planning & growth Flexible job assignments & responsibilities Group performance Degree of standardization or flexibility of the performance management systems. & find out how do they identify developmental needs of potential employees? PERFORMANCE MANAGEMENT & FEEDBACK Introduction: An firm faces five strategic decisions in establishing its performance management system. which are as follows: Purpose of the system Who evaluates What to evaluate How to evaluate Methods of evaluation Besides the above five strategic design decisions.

should pa be used for development of employees or for assessing employee’s performance? Justify your answer with logic. ASSIGNMENT 2 Visit a manufacturing industry & find out how do they conduct performance appraisal? ASSIGNMENT 3 Visit an IT industry & find out how do they assess their employee’s performance? ASSIGNMENT 4 Visit a service industry. retain employees. The system are as varied as the firm in which they are located. designed with the needs of many constituents & purposes balanced with firm’ s strategy. & .Should be specific Should be based on facts Provided as soon as possible Performance measures should be based on clear measurable goals The process should involve a dialogue between the employee & the senior There is probably no ideal model for a performance management system. & find how do they assess their employee’s performance? COMPENSATION Introduction: It impacts an employer’s ability to attract applicants. but all display innovation & insight toward creativity supporting the firm ‘s strategies Strategies for improving the performance management system: Involve managers in the design of the system Hold managers accountable for the performance & development of their subordinates Set clear expectations for performance Set specific objectives for the system Tie performance measure to rewards Gain commitment from senior management ASSIGNMENT 1 In competing environment. An effective performance management system is strategic.

it often is the basis by which employees conclude that they are being treated appropriately Internal equity: It is perceived fairness of pay differentials among different jobs within an O. commitment. There are four techniques to evaluate job: Job Ranking / Job Classification / Point System / Factor Comparison Regardless of the method chosen. Employers can establish internal equity by job evaluation. or decrease their inputs Three types of equity Internal / External / Individual Employee assessments of equity are in fact perceptions These perceptions of equity directly impact motivation. at the same time. compensation should allow the firm to maintain a cost structure that enables it to compete effectively & efficiently in its markets It consists of three components: Fixed Variable Benefits Equity While designing the overall compensation system. an O needs to be concerned with perceived equity or fairness of the system for employees When individuals perceive that they are being treated inequitably relative to their peers.ensure optimal levels of performance It is a key economic issue. employees must understand & accept the system to ensure optimal motivation. they usually try to establish equity by demanding additional compensation. motivates. There are three strategies from which the employer can choose Lead / Lag / Market Rate Individual Equity: . commitment & performance External Equity: It refers to employee’s perception of the fairness of their compensation relative to those outside the firm Done by doing salary survey After the survey the firm has to determine its pay strategy relative to the market. & retains employees. For it forms a chunk of operating expenses A critical balancing act must occur to ensure that compensation attracts. & performance on the job Although compensation is not the only work-related outcome employees receive.

departments. ASSIGNMENT 3: What are the critical factors in designing a team based compensation system? ASSIGNMENT 4: What factors should influence executive compensation? LABOUR RELATIONS: Introduction: .It considers employee perceptions of pay differentials among individuals who hold identical jobs in the same firm The pay differentials exists on account of:Seniority / Skill-based pay / Merit pay. Outcomes / Rewards [self] divided by Inputs / Contributions [self] is equal Outcomes / Rewards [others] divided inputs / Contributions [others] Firms wishing to be more innovative may need to alter their compensation system to promote more intrapreneurial behaviour that encourages employees to act as risk taking entrepreneurs Firms taking a strategic approach to compensation realize the need for creativity to meet strategic objectives Also within a given firm different compensation programs may be needed for different divisions. Conclusions: The individual senses inequity when perceiving that the below given ratios are not equal. Find out how did they fix the basic wages for the various positions in the organization? How did they establish equity in compensation? ASSIGNMENT 2 Is performance based pay effective? Why or why not? How can performance based pay systems be better deigned to ensure optimal results. or group of employees Compensation systems must grow & evolve in the same manner as the firm to ensure that what is actually being rewarded is consistent with firm’s strategic objectives The link between strategy & compensation is essential for ensuring optimal performance ASSIGNMENT 1 Visit any new industry. which has been established for the first time last year in Pune.

These benefits could be economic. That is why the process of negotiation should not be allowed to come to a stalemate Negotiation should be based on give & take principles Unions Today: Develop partnership with employers & seek win-win outcomes Collective bargaining should strengthen both the union’s position & employee’s right & enhance the performance of the firm Realize that the jobs of today & those of future are quite different from the jobs of past. the management can declare a lock out. it creates special challenges for HR management. strategic issues.The nature of relationship between the employer & the employee can have a significant impact on morale. The payroll expenses & the work processes may contribute to or retard efficiency in operations Why employees unionise: Perceived benefits. motivation. & the environment in which the business is done Cannot guarantee job security but can guarantee employability by training employees to be multiskilled As unions decline in number & stature. The workers interest can be enhanced through legislation or management initiatives . rather than inhibiting change Union leaders will have to rethink their roles & learn management skills in understanding the business. & the union can declare a strike. Partner with employers in creating beneficial change. social & or political Power in unity Collective bargaining Management & Union come together to negotiate through collective bargaining an agreement covering terms & conditions of employment Negotiation should take place in good faith The outcome of negotiation should be win-win When negotiation fails. workers become less powerful. & productivity If the employees feel that the terms & conditions of their employment are less advantageous will not be committed to perform & to remain with the employer Consequently how O manage the day to day aspects of the employment relationship can be a key variable affecting their ability to achieve strategic objectives When workers get unionised.

which recently signed a settlement with their union. How much rise did the management give in terms of money & benefits? Did the management submit its charter of demands to the union? If so how much demands of the management was settled ASSIGNMENT 2 What are the possible outcomes of failure to reach consensus on collective bargaining agreement? ASSIGNMENT 3: With unionisation on the downturn.New strategies for Union: Goals: Employment security / Higher wages / Make unions stronger Past strategies: Job classification / Grievance handling / Collective bargaining Future strategies: Participate in developing New work system Technology New product development Seek to upgrade worker skills through T & D Mobilize & engage the workforce for greater control over production decisions Leverage the use of capital investment & pension funds ASSIGNMENT 1: Visit any manufacturing industry. why should an organization be concerned about labour relations? ASSIGNMENT 4 Visit a manufacturing industry & interview a union leader to find out whether they have adopted the new role ASSIGNMENT 5 Visit a service sector & interview a union leader to find out whether they have adopted the new role EMPLOYEE SEPARATION Introduction: The pressure to remain competitive & efficient. coupled with the fact that employees are less committed to individual employers than in past makes the process of employee separation a key strategic issue for firm HR strategy involves managing the process by which employees leave the .

firm. Find out which key individual submitted his resignation. & that professional relationship is not disturbed Separation can be :Forced / Voluntary / Retirement Forced reduction done for: Inefficiency / Lack of adaptability / Weakened competition position within the industry / Payroll expense is one of the largest expenses Efficiency is sought by reducing labour force. & by redesigning the work process Voluntary: Employee on own calling it a day for better prospects Retirement: on reaching the age of superannuation Performance-Replaceability strategy is the best tool to manage voluntary separation Replaceability: Difficulty: Performance High: Strategy: Retain / Invest Replaceability Easy: Performance High: Strategy: Retain / Invest Replaceability Difficulty: Performance Average: Strategy: Retain / Provide performance incentive Replaceability Easy: Performance: Average Strategy: Retain / Provide performance incentives Replaceability Difficulty: Performance Low: Strategy: Improve performance / Terminate Replaceability Easy: Performance Poor Strategy :Improve performance / Terminate Have back up for all key positions Conclusion: Strategically managing employee separation entails determining the value of human assets from investment perspective & considering the costs of discarding the assets ASSIGNMENT 1 Visit an organization. How did the management retain him? ASSIGNMENT 2: . regardless of departure Firm can manage this separation process to ensure that transitions are smooth for both employer & employees. the operations are not disrupted.

& develop their international operations Workforce are becoming more culturally diverse HRM is critical to the success of any international endeavour How international HRM differs from domestic HRM Addresses broader range of functional areas like: Compensation plans More involvement in the employees personal life like: housing / schooling / recreational facilities Deal with more complex external constituencies like terrorism / safety / health· Setting different HRM system for different geographic locations Assessing the culture Besides economic / market / social / political factors.Discuss the ways an organization might attempt to retain its most valued employees? ASSIGNMENT 3 Because workers live & stay healthy longer. & find out how they retain the employee who has put in his papers INTERNATIONAL HRM Introduction: Tremendous opportunities exist to market goods / services globally Increasing number of organizations are developing strategies to expand internationally These strategic opportunities are resulting in employers’ sending an increasing number of employees abroad to start up. cultural factor plays a very important role in any decision to go abroad HOFSTEADE Model Cultural differences are explained along the following four dimensions: Individualism / collectivism Power distance Uncertainty avoidance Masculine / feminine tendencies · . the workforce is aging? How might this impact an organization’s competitive position? ASSIGNMENT 4 Visit an industry. manage.

If the expatriate is going to work in Operations then training in labour relations is essential. tolerance of ambiguity. & willingness to learn Assess the adaptability to host culture of both employee & his family members. For this there are four approaches: Ethnocentric · It involves exporting the firm’s home country practices & policies to foreign locations Polycentric · Allows each location to develop its own practices & policies that are consistent with local culture & workforce characteristics Regiocentric Developing standardized practices & policies by geographic region to give autonomy to the regional subsidiary within a geographic region Geocentric Involves developing one set of global practices & policies that are applied to all geographic region Repatriation: It is returning of the employee Firm need to establish a strategy that allows them to take the valuable experience abroad & Integrate it with what is happening at home .HALL’s Model: It describes culture in terms of five silent languages: Time Space Material goods Friendship Agreement Strategic HR Issues in International Assignments: Following are the steps: Establish the purpose of assignment. patience. The individual should have technical abilities. Firm also needs to make a strategic decision as to the level of standardization it desires across locations. communication skills. Prior to departure the employee & family should be receive cross-cultural training in the norms & values of the host country. & being empathetic Training on performance management. language training. health & safety issues & realistic expectations of the day to day life in the host country Sensitivity training should also be given to the employees of the host country. workplace & business practices. & openness to differences in others. especially so as to understand as to how local decisions are made. Select the appropriate person for the assignment.

which they are facing in India? What sort of training was given to them? ASSIGNMENT 2: Visit a MNC. Personal issues like logistics / schooling / housing Conclusions: A key issue that impacts an organization’s success in the international arena is an awareness of cultural differences & the development of both a business strategy & corresponding HR strategy that is consistent with the culture of the host country ASSIGNMENT 1: Visit a MNC. Find out what are the work related cultural. who went on a long-term assignment to China / Japan. issues. Interview a foreigner. How did the parent organization address their career issues in case of repatriation? ASSIGNMENT 3: Interview an Indian. THANK YOU . How did he & his family prepare themselves to meet the challenges in that country with respect to the following factors: Language / Food / Schooling? THE END. Interview a foreigner.Allow co-workers to learn from the experiences of repatriate & enhance their own performance Address Career anxiety issue.

Sign up to vote on this title
UsefulNot useful