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Mba Hrm Group - Copy

Mba Hrm Group - Copy

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MBA - HRM Group Assignment

Module Name HRM Module Tutor Emmanuel WANKI

Team Members
Arun Kumar Rasuri Ahsan Riaz Mohammad Warisul Shahbaz Noman Jahangir

261282AKR 130479MAR 050281MWHK

Qn No
4 3


Left College

Table of Contents
Team Organisation and Work Summary............................................................................................. 2 Peer Evaluation Sheet........................................................................................................................ 2 Part A – Compulsory Question ........................................................................................................... 3 Section A – Question 1 ................................................................................................................... 3 Answer to Question in Section A - Question 1. a) written by Ahsan Riaz .................................... 3 Answer to Question in Section A - Question 1. b) written by Mohammad Warisul...................... 5 Answer to Question in Section A - Question 1. c) written by Shahbaz ......................................... 6 Answer to Question in Section B - Question 2 written by Arun Kumar Rasuri ............................. 7 Answer to Question in Section B - Question 3 written by Arun Kumar Rasuri ........................... 10 Bibliography .................................................................................................................................... 12

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Team Organisation and Work Summary
We first made our group, consisting of five students, as we set about tackling this interesting HRM group assignment. We made the team consisting of Ahsan Riaz, Mohammad Warisul, Shahbaz, Noman Jahangir and Arun Kumar Rasuri. At that point of time we decided that Noman Jahangir would be the leader of the team and he would be in charge of collating and organising the team meetings and presenting the final work. Three weeks into the work, Noman Jehangir had to leave to his country for some unforeseen circumstances. By this time, all the others in the team had started their assigned tasks. We however could not find a dedicated and committed class mate to assign Noman’s task. Hence, his task remains unfinished. Although we accept and understand that this assignment is as of now not complete with regard to the assignment rules prescribed, but the rest of the team has finished the tasks assigned and hope that you would understand and evaluate us accordingly. The team sat and organised and collected data for all the set of questions. They were then asked to present the same individually.

Peer Evaluation Sheet
The team decided that Arun Kumar could be the new leader of the team. After this we redrafted our plans and this is the final plan:

Team Members
Arun Kumar Rasuri (TL)

Team lead and Organisation Write assigned answer to assigned question Write assigned answer to assigned question Write assigned answer to assigned question Write assigned answer to assigned question

Organise research, collect and collate articles and reference. Coordinate timelines with the rest of the team. Finalise report and make single collated copy. Write about discussed answer to assigned question. Help others when required from notes collected. Write about discussed answer to assigned question. Help others when required from notes collected. Write about discussed answer to assigned question. Help others when required from notes collected.

Ahsan Riaz

Mohammad Warisul


Noman Jahangir


Word Count: XX words
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Part A – Compulsory Question
Section A – Question 1
Answer to Question in Section A - Question 1. a) written by Ahsan Riaz

We can assess the strategy adopted by Sparkes by using “Kotters 8 Step Change Model”. Which stresses on implementing powerful and successful change?  Step One: Create Urgency A successful change is implemented if whole organisation wants it and accepts it. Top management should identify threats, examine opportunities and develop scenarios. Start honest discussions and give dynamic and convincing reason to get people talking and thinking. Scope has done that by promoting its positive image as an employer and re modelling its reward structure and better appraisal systems.  Step Two: Form a Powerful Coalition In order to successfully implement a change an organisation needs to convince its employees that change is necessary and to form a “change coalition”. Scope achieved this by better communications with its employees to help them understand the vision of Sparkes and what Scope wants to achieve.  Step Three: Create a Vision for Change Kotter recommends that “An organisation should determine the values that are central to the change, develop a short summary (one or two sentences) that captures what you "see" as the future of your organization. Create a strategy to execute that vision. The core values to change in Scope were the small percentage of employees with disabilities and the goal Scope wanted to achieve in three years was to raise it to at least 20 per cent.  Step Four: Communicate the Vision Once a vision is established it should be communicated to all people who are involved or are affected. Scope put adverts in different kind of media to attract people with disabilities to work for Scope and made its communications with existing employees better to help them understand why this change is being implemented.  Step Five: Remove Obstacles An organisation should Put in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people organisation need to execute its vision, and it can help the change move forward. For this purpose Scope took a further step by introducing reserved seats for disables which is completely lawful. Sparkes said that you can’t understand the needs and

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problems disables face unless you yourself go through that .So there were some new vacancies created solely for disables.  Step Six: Create Short-term Wins Kotter describes that “nothing motivates more than success”. Give your company a taste of victory early in the change process. Within a short time frame, you would want to have results that your staff can see. Without this, critics and negative thinkers might hurt your progress. Reward the people who help you meet the targets. Scope achieved this by re-structuring its reward system and better appraisal system.  Step Seven: Build on the Change Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change. Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements. Each success provides an opportunity to build on what went right and identify what you can improve. This is yet to be proven in our case as it’s too early to tell whether Scope can bring some more positive changes in future or not. Although Sparkes is already working on that and wants to go one more step by including those with more complex needs. He says, “We want to broaden the range of the support needs of people who work for us, such as people with a personal assistant or those with learning difficulties.”  Step Eight: Anchor the Changes in Corporate Culture Finally, to make any change stick, it should become part of the core of your organization. Corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work. Again this is still to be proved in scope only time will tell whether Sparkes become successful in making these changes part of the corporate culture of Scope and these will remain in place in future even if he quits.

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Answer to Question in Section A - Question 1. b) written by Mohammad Warisul

Research indicates that employee acceptance of organizational change is increased by organizational commitment, a harmonious industrial relations climate, job motivation, satisfaction, job security and positive affectivity. Organizational commitment was found to act as both a determinant and mediator in the change process (Taylor & Francis). Because of the recession Scope was, as any other organisation, faced by difficult times. Problems faced by Scope : lower returns on fundraising activities, losses on service provision, declining profits from its shops and an alarming pension deficit. Changes put in place:  A project, “Securing the short-term”, was started.  Another strategic review of Scope’s shops was ordered.  Decided to invest in training and pay in the remainder to help boost profitability.  In HR department he introduced a basic service centre approach. Anna Quindlen, author and journalist, has a great quote that applies here: "If your success is not on your own terms, if it looks good to the world but does not feel good in your heart, it is not success at all." How effective was the change process managed in the organization? The following would help understand this question  Under project, “Securing the short-term” overheads were a cut by £3 million.  50 loss-making premises were shut.  Provision of training helped boost better service delivery and also improved profitability. The organisation is set to break-even soon it is said in the article.  The changes made to the HR department “reduced the costs of HR by 30% and improved services”. After the steps discussed above were implemented with a good success rate, Sparkes implemented a change project designed to ensure “that the future of the organisation is completely based on being sustainable for the long-term”. He wanted to look into the organisation’s culture, governance, finances or the diversity programme. In this he wanted to set up better partnership working. He did not want a situation where they make hay when the sun shines and then go totally dry when there is a famine. Under this charities are to involve themselves in developing and devising services. After it launched it Time to Get Equal campaign in 2004, it reached its target of 20% disable employed, six months ahead of target. One understands that Scope has achieved this impressive change through: three strategies.  Improving itself as an employer generally: having better communication with staff, a better appraisal system, etc.  The organisation has gone out of its way to attract disabled candidates.  It introduced a reserved-post policy for certain positions. In all the above, internal communication played a vital role. As the right communication and the right meaning had to be propagated.

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Answer to Question in Section A - Question 1. c) written by Shahbaz

Human Resources Departments play a vital role towards bringing about change in organisations. Looking at the article provided we understand that HR department helps in two aspects – internal and external.  Internal factors o Motivate de-motivated employees o Increase productivity o Stop revenue losses or minimise business loss o Reduce employee turnover o Stop damage to company image External factors o Help increase customer satisfaction o Better fight recession o Fight away pressure from government and local bodies o Other challenges

The constant evaluation of the effectiveness of the organization results in the need for the HR professional to frequently champion change. The HR business objectives are established to support the attainment of the overall strategic business plan and objectives. After reading the article it is clear that ‘people have been put at the heart of the changes’. The previous chief executive, Tony Manwaring, recruited Sparkes specifically to bring in some organisational change. He believed that the idea being that it is about people so you start with the top HR appointment and take it from there. Sparkes’ appointment as chief executive will ensure that this philosophy continues, although he maintains that “the chief executive is the head HR person, whatever their background”. Interestingly, according to a study by Personnel Today's sister publication, Employment Review (November 2007), it was found that change management models are rarely used by HR. The HR professional contributes to the organization by constantly assessing the effectiveness of the HR function. He also sponsors change in other departments and in work practices. To promote the overall success of his organization, he champions the identification of the organizational mission, vision, values, goals and action plans. (Journal of Management Studies, David E. Guest, Volume 24, Issue 5, pages 503–521, September 1987).

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Answer to Question in Section B - Question 2 written by Arun Kumar Rasuri

‘How can Personnel organise to add value’ As competition, both locally and globally, intensifies companies must also transform and become more adaptable, resilient, and customer-focused in order to be successful. And within this changing environment, the personnel practitioner has also to evolve. He should now try and become a strategic partner, and a change mentor within the organization. His new roles need him to put emphasis on attracting and retaining talents and fending of competitors and outplaying them. The strategic employment of their human resources of his organisation should be his top priority. Amid recessionary and slow growth conditions, this kind of period has never been a more important time to make sure that personnel assume newer roles and give value for money for the organisation. Employer organisations have come under huge pressure to reduce costs. However, in order to stay competitive in a rapidly changing market place, one should not compromise on quality. The adjacent illustration (Frode Heiman, 2008) shows in a very simple way how personnel role can be made to understand how to provide value at work. Basically it says that in order to add some value one needs to add and share. Organisations personnel need to increase their knowledge levels, and add new skills and abilities. They also should be inspired and be able to inspire others to set new goals. He should also be able to insert some goals into the employees mind. One should remember the simple fact of life that when one has learned something, he is in the best position to be able to share his knowledge and also teach others. The following points will help personnel to organise better to add value  Personnel should be the voice of the employee and interpret and enforce company policy  Employee development and organization development  Competitive employee compensation and competitive organization bottom line  Training for the job and doing the job  Employee satisfaction and customer satisfaction In these hard times where everywhere one tends to hear only about downsizing and outsourcing with resources stretched thin and performance expectations high, the HR function must exercise their leadership skills to prove its value and worth as a business partner and show that it can give immense value to the organisation.

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Challenges may arise due to  Workplace Diversity Workplace diversity may revolve around gender, age, marital status, ethnicity, physical abilities/qualities, sexual orientation, educational background, geographic location, religious beliefs, and work experience (Thomas, 1992). In this new age of multinational companies with global presence and operations on a global scale, with employees from numerous countries, ethical and cultural backgrounds, it becomes imperative that they all feel like they are all governed by one rule and law.  Planning a Training Program Such a program will encourage employees to learn more and also to improve their skills. Such a successful program will ensure that employees are always up to date technology wise and skills wise. These times of cut throat competition, it becomes the question of survival. A less talented and out-dated company can provide no value to its customers. It will not be able to survive.  Improving retention and engagement Continuing with the above argument, retaining and engaging a high quality workforce is strategically important for an organisations ability to deliver results and to grow. As companies go on a series of downsizing exercises and bank on the idea of doing more with less, it will only challenge both line managers and human resources (HR) to continually seek new and focused ways to engage and retain key workers. Organizing Talents Strategically There is now a growing necessity to employ diverse talents to deliver the best service according to different markets. For instance, while the latter half of the 1980s when China began opening up its markets and started exporting products internationally, the domestic firms like electronics company Haier, took the help of the Singaporeans for marketing expertise. With almost 75% of Singaporeans being of Chinese origin, it was easy for them to bring in their marketing talents so as to better understand local Chinese markets. Also this helped them to provide better service to the Western markets on the back of Singapore’s English language abilities and its open economic policies (Toh, R, 1993).

Another question facing HR professionals over the next decade can be that is it trying to find solutions to the perceived problems or is it trying to manage the resultant paradoxes? For many cases problems identified cannot be solved. For example, one has to understand the fact that demographic trends forecast there is a decline in ‘leader age’ population in future which in itself provides a numbers of Challenges in talent management and succession
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planning. Demand is therefore likely to outstrip supply. The question therefore is more about managing the paradox effectively rather that solving the problem. There is however one final salutary reminder as quoted by Charles Handy in his book “The Empty Raincoat” as follows: “To live with simultaneous opposites (paradigms) is, at first a recipe for indecision at best and schizophrenia at worst”. The HR manager’s role must be in line with the firms’ ever-changing needs. Only an organisation that can adopt and be resilient, and be amble on its foot is becoming successful. The HR manager, within this environment, must understand how to manage this effectively through leading, planning, organizing, coordinating and controlling the human resources and be abreast of the present industrial trends in employee development and training (Dr.Alvin Chan, 2011).

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Answer to Question in Section B - Question 3 written by Arun Kumar Rasuri

Integrating reward program into SHRM An accepted view of strategic human resource management is that there is a large positive relationship between organization effectiveness (OE) and HRM practices (Becker and Gerhart, 1996; Becker and Huselid, in press; McMahan, Virick and Wright in the companion volume). Several recent empirical studies support this view (see Becker and Gerhart, 1996 for a review; Arthur 1994; Huselid 1995; Huselid and Becker 1996). With firms and organizations starting to recognise that human capital can be utilized as a competitive advantage, more so in the present tight economic scenario, human resources is now being taken very seriously and its importance and significance has grown manifold as it affects strategic direction. Most researchers and management heads have come to an agreement that an organization’s success can be attributed to the productivity of its employees, therefore defining the ultimate goal of human resource management as maximizing workforce productivity (Dr. John Sullivan, 2005). And one way of doing this is through integrating reward into the strategic human resource management. Bringing into line all tenets of both the organization and HRM, have now become a necessity so that one can better achieve organizational mission and vision. The whole gamut of the rewards system that includes compensation and benefits, performance, work-life balance, recognition; and career development opportunities are top aspects of retaining, attracting, and maintaining highly satisfied employees. Not only this, it also ensures that the management gets the most out of employees (The Worldatwork Handbook of Compensation, Benefits & Total Rewards, 2007). Management sees that it makes business sense to provide recognition and rewards to its staff and employees, because it helps to increase sales thereby more revenues and profits. This is as a direct result of boosting performance and diminishing turnover costs. “Return on equity, return on assets, and operating margins are directly affected by augmented employee performance” (Deeprose, D., (2007). A well-designed total rewards system needs to be implemented so that the oft overlooked indirect costs of lost customers and sales, apart from lessened or decreased efficiency due to new employees taking time to get acclimated within the organization (Gostick, A., & Elton, C., (2007). In recent times the term compensation and benefits have been rechristened as, and a more commonly accepted term is, rewards. Rewards were before limited to monetary pay, basic health care, and employee retirement plans. However, wit time and research this has changed. The shifting work environment and contemporary workforce has caused compensation and benefits to give way to a total rewards system. The various patterns of returns, financial and non-financial, may influence peoples’ willingness to share the insights and tacit knowledge required to achieve and sustain competitive advantage (Milkovich and Bloom, 1998; Osterman, 1992). Financial returns
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alone may not extract the unique, value adding ideas and behaviours possessed by employees. The team in its discussions has understood that that the usefulness of SHRM will require a) the need to go very deep into every issue or with specific HR systems to better study the logic of decisions within each issue or system, b) the need to identify contextual factors, especially in a multinational environment, and c) the need to improve the specification of the relationships between specific HRM systems (in our case compensation and rewards) and the ability of the organization to stay competitive. Case Example 1 In USA there was a small, privately owned food company called Rothschild Gourmet Foods. Having been in operation for nearly 15 years, it produces gourmet food products like jams, olive oil and sauces. On the back of a company-wide change initiative, Rothschild managed to boost sales, slash controllable costs, increase product quality, and raise employees’ performance-appraisal ratings. All this was possible as the company changed the components in its rewards system (Heneman, DeSimone, Dooley & Jones, 2002). What it did is that, in addition to offering other nonmonetary rewards and flexible work timings, Rothschild implemented an company-wide incentive plan based on corporate performance. Case Example 2 Telecommunications company British Telecom (BT), also radical transformed its business by taking up on 360 degree shake-up of its reward strategy. It refocused its reward processes and “aligned more closely with the specific needs of the business” says Kevin Brady, HR Director Reward and Employee Relations. Rewards are now managed in relation to individual performance and against the external market. In the 2005 financial year, BT introduced a new pay structure, comprising 250-plus market-based roles in 18 different job families, covering some 40,000 employees worldwide. Pay, bonuses and benefits are now “comparable with the market rate”. The introduction of market packages around the world will be phased in during the 2006 financial year. BT recognised that reward practices can act as a powerful vehicle for “underpinning” the process of cultural change that it was seeking to embrace. As strategic partners, HR professionals gain integration, as they work with executive teams creating people strategies so that it brings in concrete results. When one optimises total rewards, it paves the way for HR to work with senior management so that they sit together and find the right mix of pay, benefits, environment and learning opportunities for employees. Compensation and reward systems are central elements of employment relationships. This makes it a very important determinant of employee behaviours (Gerhart & Milkovich, 1992). Compensation and reward systems help in shaping the type of employment relationships an organization obtains and may determine. This helps in understanding whether those relationships support or are in line with the organization’s goals.
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                  Stephen Bach, Keith Sisson (2000). Personnel management: a comprehensive guide to theory and practice K Aswathappa. Human Resource And Personnel Management Stephen Bach (2005). Managing human resources: personnel management in transition Michael Armstrong, Angela Baron (2002). Strategic HRM: the key to improved business performance Sullivan, D. (2005). Rethinking Strategic Hr. Chicago: CCH. Worldatwork, W. (2007). The Worldatwork Handbook of Compensation, Benefits & Total Rewards Deeprose, D. (2007). How to Recognize and Reward Employees: 150 Ways to Inspire Peak Performance, American Management Association. Gostick, A., & Elton, C. (2007). The Carrot Principle: How the Best Managers Use Recognition to Engage Their People, Retain Talent, and Accelerate Performance Baron, D. P. (2008). Business and the organisation. Chester: Pearson.
British Telecom

Human resource management: theory and practice, John Bratton, Jeffrey Gold, 2001 http://www.focusplus.net.au/pages/focus_newsletter.html http://pul.se/search/Personnel%20Management http://www.comms4business.com/news.cfm?Newsmonth=June&YearViewed=2009 http://www.hrmarketer.com/~blog/2007_06_01_archive.html http://www.westbrookstevens.com/leadership.htm http://www.slideshare.net/grecomik/employee-defection-amp-trade-secrets-digest http://www.hrneurope.com/blog/?tag=human-resources&paged=2 http://pul.se/search/Personnel%20Management

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