Professional Documents
Culture Documents
Unit 4
Unit 4
UNIT-4 HR in knowledge era: HR in knowledge industry, HR in virtual organizations, HR in mergers and acquisitions, outplacement, outsourcing HR functions: Employee leasing, HR audit International HRM.
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HR in Virtual Organizations
A virtual organization is a network of corporations made possible by ICT,which is flexible and comes to meet the dynamics of the market. In this way virtual organization gains benefit with regard to the traditional hierarchical systems. This new form of organization emerged in 1990,known as modular organization, network organization or digital organization. A virtual organization is a social network in which all the horizontal and vertical boundaries are removed. It consists of individual working out of physically dispersed workspaces, or even individuals working from mobile devices and not tied to any particular workplace.
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HR in Virtual Organizations
IT plays a very important role.ICT-information n communication technology coordinates the activities, combines the workers skills and resources in order to achieve a common goal. Managers spend time coordinating and controlling external relations with the help of computer links. Example-Nike,Dell,Puma
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virtual teamwork.
3 primary factors that differentiate virtual organizations from face to face teams are: 1.Absence of Para verbal and non verbal cues 2. Limited social context 3.Ability to overcome time and space constraints. The advantages provided by such teams are as follows: 1.It saves time, travel expenses and eliminates lack of access to experts. 2.Teams can be organized whether or not members are in reasonable proximity to each other.
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Least Virtual
Core Corp. with Virtual outsourcing Combination of employees Virtual Employees, outsourcing,(Virtual office, Virtual production)
Most Virtual
Completely Virtual Virtual Employees and or Participants in a completely virtual organization
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capital and technology. Project focus collaborative networks uninhibited by time and space. No defined structure. There is loose connections of highly proficient ppl who are left to do their own thing in order to produce innovative products. The positive side is that there is greater job autonomy and more financial stability ,coz of reduced commuting, lunches and clothing cost. Less work stress, increase in performance(with more working hours)
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perceived work demands, poorer physical working conditions, less social support from work, poorer social position and few career opportunities.
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Career Dynamics
In a virtual organization, the following HR issues are a matter of concern: Recruitment is conducted under time pressure and requires high performance expectations. Human Capital (knowing ones job)and Social capital (knowing each other)become extricable linked. Reputation is a key asset. The formation of some stability in social relationship is not very much required. Work pace is variable. The need for a state of readiness to be mobilized at any moment is high.
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Career Dynamics
Value of
idleness is shown in terms of learning by watching what others do. Master apprentice relationship and craft-based techniques become important. Job status and project feedback is very short. Therefore it can be seen that virtual org. require a heavy investment to create systems and staffing structures.
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Performance management
Define Performance: clear idea of what he is supposed to do??challenging goals to be set. Appraisal system to be objective rather than subjective. Measurement of work is important as theses are distantly located. Facilitate Performance: eliminate obstacles-inability to access centrally maintained files and databases from remote locations. Provide tools and resources. Here employee has to be self managed, more autonomous, risk taking in a virtual set up. Motivate the performance. Encourage Performance:
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oriented,agile,fast,consistent in growth,adaptable,flexible,profitably proactive. Firms need Merger and Acquisition Example:Daimler-Chrysler,Chas-J.P.Morgan,Mc Kinsey-Envision,Nations Bank-Bank of America,GEHoneywell, India-chemical,finance,communication,IT sector,BPO
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new entity Acquisition: One co. buys the other company and manages it by implementing terms and conditions consistent with the acquirer's needs. Size of investment, control, integration reqd, people mgmt issues
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on Strategic and Financial aspect, Human aspect is neglected. Key aspects-Retention of good talent, integration of cultures and communication Schuler & Jackson gave typical reasons for failure: 1. Expectations are unrealistic 2. Hastily constructed Strategy, poor planning, unskilled execution. 3. Failure/inability to unify behind a single macro message. 4. Talent is lost and mismanaged 5. Power and politics are the driving force.
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set of values,feelings,attitudes,expectations and mindsets of people with in an organization. 2 companies have different cultures-anxiety,anger,low employee morale, communication issues. Top Management ignores soft issues-culture clash They rather than We feeling. Example-P&G and Godrej
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talent assessment-restructuring process to be faster to manage the transition psychology of people. Place structure, manage change process, retain and motivate employees, communication. Prepare organizational chart-vacant positions will be there-as few ppl did not accept the job or lack of qualified ppl internally. Prepare severance plan & retention bonus programme. Outplacement strategy to be prepared to know the type of employees being affected and how long will they take for adjustment.
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assimilating employees in the org.Individual and group meetings. Educational seminars. 3.Post Union: the structure and staffing patterns need to be tested in action in terms of value creation in the org. Culture that emerged in the org due to two organizations need to be monitored in line with the objective set in for the organization.-senior mgmt. HR should see the new teams formed, interpersonal conflicts, undefined roles and responsibilities. HR should develop transparent communication channel to disseminate info to stake holders to satisfy them for
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to face presentations Remember nature abhors a vacuum Realize that ppl assume the worst Push information out Use multiple forms of communication Watch the informal channel Believe that repetition counts Communicate timeliness in general terms Communicate logic and empathy
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thought out goals and objectives Due diligence on hard and soft issues Well managed m & A team Effective leadership Taking lessons from previous experience Friendly climate High commitment to deadlines Key trained retained Trust building across all levels of employees Proper allocation of resources and responsibilities. Accept the unwilling people and plan for their change.
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in process union and post union steps completed early Extensive and timely communications to all stake holders. Skills & competencies for HR professionals: Good strategic knowledge to develop and implement the strategic plan for M & A. Effective Communication skills Motivating skills to motivate self and others Analytical ability to understand and access people dynamics
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bring about changes Planning, monitoring and bringing change effectively. Good mediator having sound negotiation skills. Effective in selection and retaining people. Effective trainer and facilitator. Visionary,dreamer,and good leader who identifies and embraces new roles.
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International HRM
Liberalization Mergers and
acquisitions IHRM:is an interplay between three important dimensions of HRM Types of employees Country of operations HR activities Morgan (1986) highlighted 3 broad functions of IHRM in a model that consists of 3 dimensions: 1.3 broad HR activities- procurement, allocation and utilization.
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International HRM
2. 3 major country categories involved in international HRM activities: host country where a subsidiary may be located, home country where the firm is headquartered and the other countries(source of labour and finance) 3. 3 types of employees of an international firmHNC(host country nationals,PCN(parent country nationals and TCN(third country nationals.
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DOMESTIC HRM
INTERNATIONAL HRM
International taxation, international relocation, orientation, administrative services for expatriates, host govt. relations.immigration,traveling details,
Single govt. scenario HR is just related with employee insurance programmes,transfer,assistance in relocating employee. Remains same Less risk as compared to
Expatriates benefits and cross cultural work dynamics Selection,training,placementPCN and TCN.make expatriates understand housing, health care,culture,compenation, Changes over a period of time Chances of failure-
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Cultural environment
Extent of reliance of MNC on its home country or domestic mrkt. Attitudes of Senior Management
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International HRM
Recruitment: the response of International firms to an International recruitment and selection depends on : Its general staffing policy on key positions in HQs and subsidiaries Its ability to attract the right candidate and The constraints placed by the host govt. on hiring policies. Ethnocentric approach: Polycentric Approach: Geocentric approach: Regiocentric Approach:
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International HRM
Selection: of
people of the parent company nationals for their home country and selection of expatriates. Expatriate selection: expatriate failure-premature return of an expat from an international assignment-Direct cost and Indirect cost.
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International HRM
US firms Japanese Firms Indian Firms
Inability of the spouse to adjust. Managers inability to adjust Other family reasons
Inability to cope with larger Home sickness, home intl responsibility. country hangover Difficulties with new environment Personal or emotional problems Lack of technical competence Inability of the spouse to adjust Adjustment problem in a new culture Difference in work habits, lifestyle and values Personal and emotional maturity Other family reasons
Managers personal and emotional maturity Inability to cope with larger intl responsibility
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International HRM
Selection criterion for expatriates:Dowling,Welch &Schuler model Cross cultural
Technical ability suitability Family requirements
Selection Decision
Individual Situation
Country/cultur al requirement Language MNE requirements
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Subsidiary Goals
Individual(PCH,HCN and TCN) Job analysis and description Job goals,standards, competencies Performance assessment
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taxation, employment laws, foreign currency fluctuations,socio economic conditions. Broad Objectives: Compensation package to be in line with structure,biz needs and strategy of the org. Attract and retain the best talent Enhance employee satisfaction Convenient to administer Proper package as per performance Should give financial gain for employee and family comfort Policy should be progressive in nature
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HR audit
Human Resource audit is the systematic assessment of an organizations HR service excellence. A good HR audit helps org. to Identify the HR programmes that are most important to achieving org goals. How well HR deptt is delivering these programmes Benchmark HR work to ensure continuous improvement. Promote change and creativity Direct the focus of HR staff to imp. Issues Bring HR closer to the line functions of the org.
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an information system that tells the mgmt what changes have been occurring in the HR deptt of the biz over a period of time.HRA also involves accounting for investment in ppl,their replacement costs, and the economic value of the people in an org. Issues: Competencies Commitment Culture
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HR Audit
current position of an org. What can be done to improve HR function. Its a review with the help of a checklist in order to ensure that the regulations and corporate policies are adhered to. HR Audit Process: Comprehensive process, firstly understand the future biz plans and corporate strategies of the org.Important questions: What is the five ten years plan of the org? What competencies are reqd for it? Does the org has learning culture
Assess the
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HR Audit
are the various HR systems and subsystems being geared up to meet these reqts.? HR systems and sub systems are examined in totality and in relation to the various linkages and relationships with other aspects such as quality improvement processes, strategic planning. Reasons for HRD audit: Make the hr function more biz driven Evaluate hr systems and processes Improve productivity and efficiency level Support growth and expansion plans Prepare org for change in leaderships
How
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HR Audit
Methodology of HRD Audit: Individual interviews Group interviews Workshops Questionnaires Observations Secondary analysis Few tips: Combination of all these Interview hierarchically-macro view Varios aspects look out-physical layout,workenvironment
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HR Audit
Challenges in HRD Audit:org has to Build and improve quality consciousness Strive to recruit and retain competent ,creative employees Align biz processes with technology infrastructure Nurture creative and supportive work culture Train and develop the ppl thru 360 degree feedbacks, appraisals. Promote learning orientation-informal networks
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HR Audit
The Audit Process has different phases: Pre audit information Pre audit self assessment On site review Record review Audit report-Urgent and Important(UI),not urgent but important(NUI),not urgent and not important(NNI),important opportunities needs are sorted out(IO)
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HR Audit
Using Audit Findings: Org have 3 options for dealing with HR audit Use it as a blue print or action plan for addressing HR needs. Address as many needs as possible using the organizations internal expertise and resources. Contract out those need areas where internal expertise and resources are not available or do not fit in the core objectives of the organization.
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HR Audit
Modules of HR audit: Recruitment and selection assessment module Performance management module Compensation management module HR audit-Action Plan: Define the role of HR function in the line org and biz plans. Create a system for cost effective hiring. Develop programmes for the orientation and training of the new employees.
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HR Audit
Prepare key
personnel policies and make it available to employees and also train the employees in policy adherence. Implement and install the HR IS systems. Limitations of HRD Audit: Top mgmt can influence HR audit. Failure of implementation of corrective action based on the feedback. Victimize the HR deptt and remove some HR staff, due to negative audit feedback.
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Balance Scorecard
Provides a
framework for organizations to mange the implementation of strategy in an org by linking the objectives, initiatives and corresponding measures for evaluating success in the org. It is an overall view of the organizations performance by integrating financial measures along with the key performance indicators such as the perspective of customers, internal biz processes. STEPS for individual balance scorecard. Defining objectives and levels at the corp level. Linking corp. objectives to individual line of biz and measures
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Balance Scorecard
Linking line
processes. Building a Balanced Scorecard: Building the biz case Identifying strategies Identifying tactical objectives Identifying perf measurements Identifying data sources for calculating the measurements Creating a data warehouse to supply the data Selecting IT to create data warehouse Creating balance scorecard report
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Balance Scorecard
Managing the
strategy using balance scorecard Refining the tactical objectives in support of the strategy
Balance Scorecard-Strategic Initiative Strategy clarification Communication of strategic objectives Planning and aligning strategic initiatives Learning from feedback
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Knowledge Management
The advent of the networked org. means that organizations can no longer function in isolation within their economies and have to function on a global scale.Mgmts are finding it increasingly necessary to align their structures and culture to the requirements of knowledge mgmt. Globalization-Impact on HR: Globalization is defined as the process wherein the production and distribution of goods and services by organizations are not restricted within geographic boundaries.
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Globalization-Impact on HR:
Human resource Development: is a process encompassing a gamut of activities in an organizationmanpower planning,recruitment,selection,training and development and providing for satisfactory exit of employees. Strategic activities linked with HR activities. HR processes have their origin in the strategic activities of an organization aimed at improving the bottom line while maintaining or improving the market place.
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Global Marketplace
Increased salary structures and expectations/aspirations of the employees are forcing the HR functionaries of firms to adopt innovative HR systems, such as ESOPs, Performance Management systems and Flexible working Hours Orgs have to understand the 4 Ps- Product, price ,promotion, PEOPLE. ESOPs, Performance Management Systems,flexiwork hours
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Technological Revolution
Developing countries have bigger markets
and increasing purchasing power but scarce invest for resources and R n D.The thrust areas in HRD are education and training of employees to manage technology transfer. Tech savvy manpower, train the trainers, training in network management, IT audit,biz process reengineering, MIS. Change in Employer-Employee relations Emergence of intellectual property rights and internet marketing has changed the scene of IR.-restructuring, performance linked promotions, contractual or task based employment
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Knowledge Management
Hayek's insight was that an organization's perf. depends on the allocation of decision making authority with the knowledge important to these decisions. What is Knowledge?? Is the fact or condition of knowing something with familiarity gained through experience or association. Its a set of models that described various properties and behaviors within a domain or stored in org processes, products ,facilities, systems and documents. Knowledge Asset: as applied to biz firms means know regarding markets,products,technologies and the org that generates profits and value.
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Knowledge Management
Sources of Knowledge: Formal: notes, manuals,reports,memos Informal:Experts,end users, multiple experts, literature. What is Knowledge management?? Its about connecting people to people and people to information to create competitive advantage. Systematic process of finding ,selecting,organizing,distilling and presenting information in a way that improves employees comprehension in specific area of interest.
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Knowledge Management
What are
the knowledge assets a co. possesses? Where is the Knowledge asset? What does it contain? What is its use? What form is it in? How accessible it is? How can the knowledge add value? What are the opportunities for using knowledge assets? What are the current obstacles in its use? What would be the effect of its use? What are the actions to use know asset planned???
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Knowledge Management-Approaches
Approaches:
Approach Mechanistic It is with application of technology and resource to do better Accessibility to info is the Key.resuse f docs,intranet,netw rking tech,groupwares Unless experience is combined in this model, it yet becomes yet another paper model. Cultural/Behavio ural Focus on innovation and creativity rather than leveraging existing explicit resources Behaviour culture and environment needed to be changed and not just technology. Systematic This approach is rational coupled with new ways of thinking.
Assumption
A systematic way of reviewing the processes, cultural pattern, and practices is needed
Assessment
Interplay of It has shown culture and org sustained positive change may not be result measured, cumulative or replicable.
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their intellect to transform ideas,products,services and processes. Their main value to an org is their ability to gather and analyze info and make decisions to benefit the company. They are essentially investors. The main discretionary choices as to how and when their energies and skills may be invested in their companies. The decision to invest or apply the skill may be contingent on their ability and motivation and opportunity available top them Emphasis on relationships,collaborations,professionalism.
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made it necessary for orgs to understand knowledge, capture it, facilitate its dissemination to achieve the objectives of organizational learning. Key concepts: Organizational knowledge Knowledge management
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organization relies upon talent and knowledge mgmt and effectiveness of the org is measured more in terms of RoT-return of talent rather than return of investment. Organizational innovation is a new idea that leads to a tangible product, process or procedure with the organization and should be able to benefit a part of or the entire organization.