A Comprehensive Project on Challenges of Human Resource Management submitted in Partial fulfillment of the Requirements for the Programme of Human

Resource Management of Gujarat Law Society

By

KUNAL GOSWAMI (HRM 1015) CHANDNI KACHHIA (HRM 1016)

Guided By:

Prof. Jasmin Padiya

GLS CENTRE FOR MANAGEMENT EXCELLENCE

2011

Preface

As HRM students it is important to supplement theoretical knowledge and due to the innovation and modernization and with the development in concept of the management, the need arises for manager to be trained in a professional manner. It is necessary to know the implications for HRM students.

Project study gave us an opportunity to understand the various practical aspects of business and we learned to apply our subject concepts in the study.

The subject for whom this project is undertaken deals with finding marketing research problem. There is several approaches to problem. Various techniques are used to collect primary data. It is very necessary that the data collected should be appropriate respondance of the target segment.

Acknowledgement
It is our pleasure to acknowledge those who have contribute to this project directly or indirectly, through it will be still a adequent appritiation of there contribution, we hear by acknowledge the names of the people to whom we hall always grateful.

We are very thankful to Professor Jasmin Padiya, Professor Deepti Arrora, and Rushab Shah who perform or our internal guide for this project thankful for his constant guidance, support and Inspiration.

Thanks to our parents who always keep us away from falling apart apart during endless hours of our project, they always keep our spirit up; we would like to thank all friends of our college for the moral support provided of them throughout the HRM curriculum. We early look forward for the suggestion for improvement from the readers of these Project.

Executive Summary

In this project HR is working on the Challenges, which is faced in Human Resource Management. To survive in this highly competitive scenario, managers are being pressurized to improve quality, increase productivity, cut down waste and eliminate inefficiency. The efforts of the employer the employee assume relevance in this context. And this is where Human Resource Management can play a crucial role.

The role of the Human Resource Manager is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources. In this Project we can focus on the Challenges which HRM, how it can be useful to organization and there relevant resources. The Challenges which we can describe in this Project as per the needs of companys are as follow:-

Challenges of Human Resources Management:

1. Going Global 2. Embracing technology 3. Managing Change 4. Developing human capital 5. Responding to the market 6. Containing Costs

Conclusion on Challenges

Going Global:The key to creating a consistent corporate culture across multiple locations is maintaining the critical balance between a strong corporate culture and local cultural differences. Finding competent individuals that understand geographies, cultures, laws, and business practice.

Embracing New Technology:Today, many firms are using technology to manage their HRM called Human Resources Information System (HRIS) HRIS computerized system that provides current and accurate data for purposes of control and decision making. So, how to come overall on these New Technology, we can emphasis on these.

Managing Change:This summary is intended as an aide memoire to employers and line manager and a useful reference point for businesses.

Change can be stressful and destructive when it is either mistaken or mismanaged. Few changes affect everyone in the same way, and the impacts of certain changes may not be immediately apparent. There might be hidden and longer term consequences. Board members may be divided into camps between those who are for or against particular changes, while those who are indifferent or ambivalent may simply go with the flow.

Developing Human Capital:Human capital the economic value of knowledge, skills, and capabilities. Human capital is a valuable concept because it recognizes that people should be treated as assets rather than as an expense. Seems to me, security professionals have been arguing that point about their profession for a long time. Developing human capital through HR would not be complete if consideration is not given to the issue of values and ethics. Positive work values, the spirit of competition and integrity must be an inherent part of the labour force. Employers are concerned about work attitudes among workers. They are concerned about job-hopping, dislike for hard work and their unwillingness to put in extra efforts especially to work over-time.

Responding to the Market:Broadly defines the concept of market failure or winner and explores options for responding to it. It pays particular attention to the role of business leaders in addressing management. Meeting customers expectations is essential for any organization. Focusing on internal management issues, managers must also meet customer requirements of quality, innovation, variety, and responsiveness.

Containing Costs:A guided tour through a streamlined e-recruiting process with an in-depth view of the option for boosting the quality of your talent pool while reducing recruiting costs and time-to-time. Investments in reengineering, TQM, human capital, technology, globalization, the like are all very important for organizational competitiveness.

Introduction

About and Importance of HR Define:-

HRM is the function facilitating the most effective use of people to achieve both organizational and individual goals.

HRM is that field of management which deals with planning, organizing & controlling the functions of procuring, developing, maintaining and utilizing labour force such that organizational & individual goals are fulfilled.

Process of acquiring, training, appraising and compensating employees such that they are motivated to achieve both the organizational and individual goals.

Importance of HRM
Importance of human resources can be discussed at four levels: Corporate Professional Social National

1. Importance of HRM is classified as under:

1. Corporate:
a. HRM can help an enterprise in the following ways: b. Attracting talent through effective HRP c. Developing necessary skills & attitude with training d. Securing cooperation through motivation e. Retaining talent through the right policies

2. Professional:
a. HRM helps improve quality of work life and contributes to growth in the following ways: b. Opportunities for personal development c. Motivating work environment d. Proper allocation of work e. Healthy relationships between individuals & groups

3. Social
a. Society benefits from good HRM in many ways: b. Good employment opportunities c. Development of human capital d. Generation of income & consumption e. Better lifestyles

4. National
a. Drivers of development of a country b. Deliver economic growth

Introduction on Challenges of HRM

Going Global:
Involvement in global markets presents the firm with a number of challenges. These challenges influence competitive advantage in global markets, and in part determine how readily the firm can achieve economies of scale and scope as well as realize synergies from operation in a multicountry environment. In striving to develop a strategy that will make it more competitive, the firm must grapple with four interrelated challenges of global marketing strategy - change, complexity, competition and conscience.

Many international companies (84 percent) indicated that their parent organization was

trying

to establish a corporate culture at all locations/offices that was consistent with its goals and vision. Most organizations (88 percent) reported that creating a corporate culture is difficult because, in certain locations, local cultures and customs have a moderate to great influence on the way business is conducted. Organizations have taken the following actions when trying to create a consistent corporate culture.

The process of globalizing resources, both human and otherwise, is challenging for any company. Organizations should realize that their global HR function can help them utilize their existing human talent from across multiple geographic and cultural boundaries. International organizations need to assist and incorporate their HR function to meet the challenges they face if they want to create a truly global workforce.

Embracing technology

Once you develop a policy, make sure that everyone on your team understands the importance of comprehensive and uniform information tracking. Todays technology can literally track an unlimited number of constituents and their vital information, but your database is only as good as the information entered into it. The start of each fiscal year provides an opportunity to revisit your evaluation criteria and ensure that each development officer has a clear understanding of his or her goals and how they fit into the overall fundraising efforts of the organization. Keep in mind that every organization is different and requires benchmarks in tune with its specific needs and goals, so a little trial-and-error might prove useful in finding what works for you.

Managing Change
As the organizations are going Global this is one problem faced by many organizations of managing the change in the organization and how to make people acquanted with the changes. 84% of executives polled said that they have at least one change initiative going on in their organizations. Responsibilities change, job assignments change, work processes change. And this is a continuous change- a part of the job rather than temporary.

Developing human capital

The objective of the Forum is to identify key human resources development challenges and needs of the sector, and to share best practices in human resources management, learning, training and development. The Forum will look at the human capacity development practices, experiences and challenges facing organizations in the sub-region.

It will also provide a platform for sharing global best practices and new models of managing talent in the ICT sector, with a particular focus on emerging trends in learning and development. It will provide an opportunity and platform for specialists from the different participating countries to share their knowledge and expertise. The ITU will share its ideas about the ITU Academy and its new online portal, which is intended to streamline the learning and development activities.

Responding to the Market

Organizations use several approaches to address this very crucial issues: 1. Total Quality Management (TQ M) 2. Six Sigma 3. Reengineering TQM, Six Sigma, Reengineering, and HRM TQM is a set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement. Six Sigma a statistical method of translating a customers needs into separate tasks and defining the best way to perform each task in concert with the others. Reengineering has been described as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed.

Containing Costs
Investments in reengineering, TQM, human capital, technology, globalization, and the like are all very important for organizational competitiveness.

Yet, at the same time, there are increasing pressures on companies to lower costs and improve productivity to maximize efficiency. Labor costs are one of the largest expenditures of any organization Organizations have tried a number of approaches to lower costs: Downsizing, outsourcing and employee leasing, and productivity enhancement.

Objective of the Project

Going Global

Involvement in global markets presents the firm with a number of challenges. These challenges influence competitive advantage in global markets, and in part determine how readily the firm can achieve economies of scale and scope as well as realize synergies from operation in a multicountry environment. In striving to develop a strategy that will make it more competitive, the

firm must grapple with four interrelated challenges of global marketing strategy - change, complexity, competition and conscience.

Workforces are becoming more globally-dispersed.

More than 50% of respondents' workforces reside outside of their corporate home country the pressure to standardize policies and processes, manage increased workforce mobility and manage compliance needs is greater than ever.

Many senior HR executives are stepping up into global roles, but are finding the transition challenging.
45% of the executives have moved into global roles over the last two-to-three years many of these transitioned in the last year alone. However, while roles are being structured globally, most of the executives have been struggling to get away from dealing with local and regional issues.

Lack of standardization.
The lack of a consistent approach to governance and compliance, especially in Europe and Asia where employment and tax laws vary widely in different jurisdictions creates further challenges for HR leaders. There is also a lack of standardization around the approach to global mobility, which hinder's HR's ability to apply consistent procedures to the compensation and benefits of a workforce that has been growing rapidly. It is becoming increasingly important for companies to properly manage the logistics of moving there employees from country to country.

The Four Ps
The four Ps of business marketing management will serve as the core elements of aiding the businessman who wants to go global. As the company gears towards global marketing where one brand or product is marketed the same way everywhere, the four Ps are going to be affected.

Product lifecycle
In the same way, it will define how the company must deal with the evolutionary movement of global marketing. The product, price, placement and promotion must be considered in accordance with the market variations from country to country. As the global marketing strategy

reaches out worldwide, the process of integrated marketing must also be observed. This is to achieve cost effective results and to maximize the implementation processes.

The Role of HR in making Organization Global

If you are in the business or professional services industry, and are looking to go global, the following are 10 key issues to consider before embarking on an international expansion program:

1. MAKE IT YOUR COMPANY STRATEGY

The decision to expand into a foreign market should be part of your overall business strategy, not just a sideline. Ensure your company has reached a level of success and credibility in your local market before attempting to expand.

2. IDENTIFY THE DESTINATION

Focus on one country, and if necessary, one region in that country, to reach a clearly targeted market. Additional destinations can be considered once success has been achieved in the first.

3. DO THE RESEARCH
Undertake a thorough market study and analysis to determine the potential demand for your services, and be conscious of the competition and your competitive advantages and disadvantages; do the due diligence.

4. VISIT THE MARKET

Face-to-face meetings are still the best way to finalize negotiations and really understand your clientele, as well as facilitating the relationships that will pay off in the long run.

5. WRITE A PLAN
If you require financing to launch this new venture you will need to prepare a Business Plan; even if no financing is needed, a Strategic Intent and Marketing Plan should be prepared, since this expansion should be treated as if it were a new division of the company.

6. FORM STRONG ALLIANCES

Entering a new market with the help of a local partner or agent may be more prudent, and could allow you to test the market before entering it fully. Joint ventures, strategic alliances and technology exchanges can be very successful, and are often overlooked as an option to expansion.

7. CONSULT THE EXPERTS

Don't attempt to go it alone; local legal and financial experts should obviously be engaged, as should experts in PR, marketing and other specializations pertinent to your industry.

8. BE CULTURALLY SENSITIVE
Adapt your services to the local culture. Translate and localize all pertinent internal and external communications and information, even if English is understood by all parties.

9. CONSIDER THE LOGISTICS

Local regulations, currency fluctuations, tax implications, immigration issues for transferring staff - these are just some of the logistics that need to be assessed.

10. BE PATIENT
Keep in mind that this new venture requires a serious commitment, both from a time and financial perspective. Be flexible in your dealings in the new market and you will reap the rewards.

Advantages of Going Global

y Lower Marketing Costs:
If you are to consider lump-sum cost then, yes, it is high, but the same cost even goes even higher if the company has to market a product differently in every country that it is selling.

y Global Scope:
Scope of this kind of marketing is so large that it becomes a unique experience.

y Brand image Consistency:

Global marketing allows you to have a consistent image in every region that you choose to market.

y Quick and Efficient Use of Ideas:

A global entity is able to use a marketing idea and mould it into a strategy to implement on a global scale.

y Uniformity in Marketing Practices:

A global entity can keep some degree of uniformity in marketing throughout the world.

Disadvantages of Going Global

y

Inconsistency in Consumer Needs:

American consumer will be different from the South African. Global marketing should be able to address that.

Consumer Response Inconsistency:

Consumer in one country may react differently than a consumer in another country.

Country Specific Brand and Product:

A Japanese might like a product to have a traditional touch, where as an American might like to add a retro modern look to it. In this case, a global strategy is difficult to device.

The Laws of the Land Have to be Considered:

Original company policies may be according to the laws of home countries. The overseas laws may be conflicting in these policies.

Infrastructural Differences:
Infrastructure may be hampering the process in one country and accelerating in another. Global strategy cannot be consistent in such a scenario.

2. Embracing New Technology

Advancements in communication and software technology are creating significant productivity improvements, particularly for the human resource professionals who use contemporary human resource and talent management systems. Many talent management system software providers, including those who develop applicant tracking/recruiting systems, integrated payroll/human resource systems and learning management systems are actively working to embed several features into their products. Some of the most notable advancements include:

y y y

Alert Technology Conditional Workflow E-mail-based Actions

Even though these features have been in existence for many years, it takes time for software developers to incorporate these features into their products. In many cases, it requires significant redevelopment of the providers software application. For example, the concept of employee self service has existed for decades. However, it required the affordable access to an enabling communication medium (Internet/World Wide Web) and developers to assimilate this technology into their products. Today, employee self service is a common feature that most human resource applications utilize.

Here are some brief definitions and examples of the newest state-of-the-art features that are available for you to implement, and what you should now expect from using these solutions.

Alert Technology:Alert technology automatically monitors your human resource system(s) and proactively distributes information to your human resources and payroll personnel, managers and employees via your e-mail system. Specified actions and dates trigger automated messages, informing relevant parties about key activities and pending issues. For example, alerts can be established to:
y

Monitor key dates and send notices to employees and managers about annual performance reviews.

Send automatic replies via e-mail for items such as thank you notes to applicants who send in resumes.

Generate standard e-mail scripts to welcome new employees, while informing relevant departments of the new hire.

Before alert technology arrived, reports would have to be manually initiated by users to identify the needed information. Alerts can significantly reduce time-consuming administrative tasks associated with paper flow. More and more human resource teams are demanding that their applications utilize alert technology. In many cases, it has become apparent that simple, yet time consuming activities have to be automated to save time and increase effectiveness. Software providers have created predefined, easy-to-use templates for common activities like new hire and termination actions, performance review tracking, overtime and paycheck related listings, attendance records, applicant tracking, and training management tracking.

In other cases, the software provider can work with a third party company, such as Cognos, that specializes in providing alert technology for software applications. In this case, a number of sophisticated alerts can be established with different output formats (e-mails, document files, spreadsheets or printed paper).

Conditional Workflow:Workflow automation is not new to the human resource system software industry. However, significant advancements in the sophistication of workflow and adoption by all facets of business management software are motivating many human resource system software providers to include conditional workflow technology in their applications.

Workflow is a term used to describe the tasks, procedural steps, organizations or people involved required input and output information and tools needed for each step in a business process. Workflow automation takes an existing chain of work, such as initiating an employees pay increase, and makes it automatic, usually with workflow software that guides information from

point to point without human intervention.

Early versions of workflow within human resource applications usually limited users to predefined workflows with limited functionality. Typically, automated workflows included routing requests for approval and/or notification. However, the same workflow actions were taken regardless of who and/or what it was for. Simple workflow templates worked with a limited ability to differentiate the datas conditions. The workflow is worked on an unconditional basis.

To illustrate an example of a non-conditional workflow in human resource management process, we will use a pay increase. For example, let us assume a company has a policy that requires division president approval for all exempt personnel pay increases over 10 percent. In an environment that uses simple, non-conditional workflows, all pay rate requests would be forwarded to a designated number of approvers. In most cases, the chain of approvers may be different depending on your organizational assignments (company, department, location, etc.). However, with non-conditional workflow, there is no way to define a different course of action (number of approvals, type of notices, messages, etc.) based on whether certain data conditions exist. In this case, all pay increases would require the same number of approvals. In our example, the division president could either approve all or no exempt personnel pay increases. If conditional workflow technology is utilized, we would be able to identify different courses of action, depending on whether certain conditions are met. In our example, we would be able to tell the system to include the division president as an approval step if a pay increase for exempt personnel is greater than 10 percent.

E-mail-based Actions:We can probably all agree that e-mail has been embraced by business as one of the primary communication tools between people and, more recently, software systems and people. People send people e-mails. Software systems also send people e-mails. Common e-mails from software

systems include alert notices from your bank or credit card companies, Internet order confirmations, notices that e-mail was not delivered, etc.

Just a few years ago, the e-mails we received from software systems were typically just notices. However, as technology advanced, we began to receive e-mails requiring some form of required action. These e-mails typically contained Web site links to the sites/software requiring the action. However, in most cases, e-mail recipients had to sign-in to the originating software system and perform the required action indicated by the e-mail. Using todays e-mail and software technology, the e-mail recipient is now able to react to the request within the e-mail itself, thus bypassing the sign-in requirement. The benefit of using this technology is that users do not need to learn the underlying software application and can respond instantly using a familiar communication medium: e-mail.

Using the pay rate increase example in the previous section, an automated workflow may have been designed to send an e-mail indicating that an approval action needed to be taken. Using older technology, the e-mail may have contained a Web site link to the human resource system. However, it still required a user to sign into the system and process an approval for the workflow request. Using current technology, the e-mail may include an Approve or Deny button that the user can select, thereby performing the action without signing into the originating system.

What to Consider

Todays human resource management systems are embracing the latest trends in software technology. Some of the recent state-of-the-art features include alert technology, conditional workflow and e-mail-based actions. As your company is upgrading or adding to its human resource management system, consider selecting a partner whose systems use any or all of these time and money saving technologies. Not only will this allow you to improve how you execute todays business processes, but it will also prepare the foundation you will need for continuing to add capabilities, efficiencies and speed in a business environment that only promises to be more demanding.

3. Managing Change

84% of executives polled said that they have at least one change initiative going on in their organizations. Unfortunately, successful change or change management rarely occurs naturally or easily. Here is why: 1. Not establishing a sense or urgency 2. Not creating a powerful coalition to guide the effort 3. Lacking leaders who have a vision 4. Lacking leaders who communicate the vision 5. Not removing obstacles to the new vision 6. Not systematically planning for and creating short-term wins 7. Declaring victory too soon 8. Not anchoring changes in the corporate culture Responsibilities change, job assignments change, work processes change. And this is a continuous change- a part of the job rather than temporary.

HR tips for Managing Change

1. Understand why you want or need to change.

If you dont, no-one else will Effective communication is one of the key factors in the successful implementation of change.

2. Get the right people in place to lead the change.

What skills do you need? What attitudes are you looking for? And who has them? Use a tool like Belbin team roles to help you identify who has the attributes you are looking for.

3. Devise the vision and strategy

what needs to be done and when. If you are sponsoring or leading change its hard to remember that everyone does not have all the knowledge that you do. So using a simple method of identifying what needs to happen when and updating it regularly allows others to understand the impact on them.

4. Explain the reasons for the change to your people.

Give people the opportunity to ask questions and to challenge what is happening throughout the process. This helps their understanding of why things need to change. The more open the process the more trust will be built as the project proceeds.

5. Get everyone involved in how the change is implemented. They will help you identify the real impact where it matters most at the front line. Find out whos implemented that type of change before and give your people the opportunity to visit or

see for themselves what pitfalls have been encountered and how things have changed for the better.

6. Get rid of obstacles that stand in the way of achieving your vision.
For example, get rid of old systems and procedures that no longer serve a purpose. Remember that people will hang on to the familiar and do what theyve always done if they have the opportunity to! This will disempower the saboteurs - people who stand in the way of progress.

7. Identify some short term wins

nothing motivates like success! Changes, like providing new PCs before the implementation of a new IT system, can help people see some benefits from the change, and at an early stage.

8. Encourage risk taking, new ideas, activities and actions.

Involving people along the way helps them to understand whats in it for them. Remember that there are lots of examples from history of many failures before a great success, so encouragement from you could lead to more benefits than you ever expected.

9. Recognize and reward people who made the wins possible.

Differentiate between those who are championing the change and those who arent. You want to encourage the heroes rather than the saboteurs. And those who are not either (the sheep!) will follow those with the loudest voices.

10. Keep asking questions to check out the progress you are making.
Talk to people involved in the project often and not just those who are accountable for the delivery of the project. By talking to anyone affected by the project you will be demonstrating that you are interested in peoples views and discover what is really happening.

4. Developing Human Capital

The idea that organizations compete through people highlights the fact that success increasingly depends on an organizations ability to manage Human capital. Human capital is intangible and elusive and cannot be managed the way organizations manage jobs, products, and technologies. One of the reasons for this is that employees, not the organization, own their human capital. If valued employees leave a company, they take their human capital with them, and any investment the company has made in training and developing those people is lost. To build human capital in organizations, managers must continue to develop superior knowledge, skills, and experience within the workforce.

Human Capital and HRM

Staffing programs focus on identifying, recruiting, and hiring the best and the brightest talent available. Training programs complement these staffing practices to provide skill enhancement, particularly in areas that cannot be transferred to another company if an employee should leave. (What are transferable skills?)

The Importance of Developing Human Capital

Corporations are recognizing the importance of investing in their employees now more than ever before. Companies are beginning to understand that to stay on top in the global economy, they need to place more and more emphasis on developing and retaining their people. Organizations that appreciate the financial impact of their employees often refer to them as human capital.

Derek Stockley, who works as a human resource trainer, defines human capital as recognition that people in organizations and businesses are an important and essential asset who contribute to development and growth, in a similar way to physical assets such as machines and money. The collective attitudes, skills and abilities of people contribute to organizational performance and productivity. Any expenditure in training, development, health and support is an investment, not just an expense. He continues to say, Competition is so fierce and change is so fast, that any competitive edge gained by the introduction of new processes or technology can be short-lived if competitors adopt the same technology. But to implement change, their people must have thesame or better skills and abilities.

In defense of this statement, we have noticed a shift in our clients' strategic values from the tangibles to the intangibles. What began as a change in requirements for senior executive searches has become a shift permeating through the ranks of all the organizations we service. In other words, our clients have shifted their hiring focus from technology to people and process. I believe this trend is one of the factors that has increased the desire to hire non-traditional information security professionals by many of our forward-thinking clients. This reprioritization of the value of human capital has changed the profile of what a successful candidate looks like, even in the most technical roles.

Relationship and consensus building skills are highly sought after at the middle management level. The job description for a recent middle management search required the ability to build relationships with Business and Technology leadership, audit personnel, legal counterparts, compliance, human resources, and internal and external cross functional teams. To read between the lines: If you are to be successful and valuable you will need to create the personal relationships necessary to address the unique requirements and risk appetites of the business, so that your solutions are measured, balanced and effective.

At the executive level, identifying candidates with proven program management skills is a priority. Many corporations are creating broad-reaching IT risk management and business resiliency programs. In many cases these programs focus on developing and centralizing governance and performance metrics models. Success at this level requires leadership skills with the ability to manage diverse groups and multiple projects while driving results.

Consulting firms are strategically growing their practices to support clients committed to acting on the results of audits and assessments tied to all of the recent focus on regulatory requirements. Those being hired are addressing not just technology, but the broader issues related to process design and improvement. Professionals skilled in Six Sigma and ITIL are able to differentiate themselves.

The bottom line is this. In order to achieve professional growth and success in the next period of increased talent acquisition, technology professionals are going to have to step out of their comfort zone and develop the holistic, relationship-focused business skills that companies are supportive approach to recruiting and retention if they want to find and keep the new breed of evolving talent

Human capital is a valuable concept because it recognizes that people should be treated as assets, rather than as an expense. Seems to me, security professionals have been arguing that point about their profession for a long time.

5: Responding to the Market

Organizations use several approaches to address this very crucial issues: 1. Total Quality Management (TQ M) 2. Six Sigma

TQM, Six Sigma, Reengineering, and HRM TQM is a set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement. Six Sigma a statistical method of translating a customers needs into separate tasks and defining the best way to perform each task in concert with the others.

As the role oh HR we can justify there three challenges in detail:

Total quality management (TQM) is an improvement program which provides tools and techniques for continuous improvement based on facts and analysis; and if properly implemented, it avoids counterproductive organizational infighting.

Plan-do-Check-Act (PDCA) Cycle: The Plan-Do-Check-Act (PDCA) cycle applies the scientific method to problem solving. In the plan phase, the problem solving team analyzes data to identify possible causes for the problem and then proposes a solution.

In the Do phase, an experiment is conducted. In the check phase, the results of the experiment are analyzed. And in the Act phase, if the results of the experiment are favorable, the plan is implemented. If the results of the experiment are not favorable, the team goes back to the original data and starts allover again.

Perhaps the most important feature of TQM is that "it improves productivity by encouraging the use of science in decision making and discouraging counter productive defensive behavior. Thousands of organizations have been involved in total quality management (TQM) and similar programs.

Advantages of Total Quality Management:

1) Improves reputation- problems are spotted and sorted quicker so there are zero defects 2) Higher employee morale workers motivated by extra responsibility, team work and involvement in decisions of TQM 3) Lower costs Decrease waste as fewer defective products and no need for separate 4) Quality Control inspectors

Disadvantages of Total Quality Management:

1. Initial introduction costs- training workers and disrupting current production whilst being implemented 2. Benefits may not be seen for several years 3. Workers may be resistant to change may feel less secure in jobs

Six Sigma
Six Sigma is a meticulous methodology that make use of information management by facts and statistical analysis to define, measure and improve a company's operational performance, practices and systems. It identifies and prevents "defects" in manufacturing and service-related processes to anticipate, and achieve or exceed total customer satisfaction.

The primary objective of the Six Sigma methodology is the implementation of a measurement based strategy, which focuses on process and sub-processes improvement through the application of Six Sigma best practice such as DMAIC and DMADV. The Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control) method is applied for improving existing processes and looking for incremental improvement. The Six Sigma DMADV (Define, Measure, Analyze, Design, Verify) is applied for developing new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement

Advantages :
(1) Six Sigma is driven by the customer and thus aims to achieve maximum customer satisfaction and minimizing the defects. It targets the customer delight and new innovative ways to exceed the customer expectations. (2) Implementation of Six Sigma methodology leads to rise of profitability and reduction in costs. Thus improvements achieved are directly related to financial results. (3) Six Sigma is successfully implemented in virtually every business category including return on sales, return on investment, employment growth and stock value growth. (4) Six Sigma targets Variation in the processes and focuses on the process improvement rather than final outcome.

(5) Six Sigma is prospective methodology as compared to other quality programs as it focuses on prevention on defects rather than fixing it. (6) It is attentive to the entire business processes and training is integral to the management system where the top down approach ensures that every good thing is capitalized and every bad thing is quickly removed.

Disadvantages:
(1) Applicability of Six Sigma is being argued among the Six Sigma critics. They opined that the quality standards should be according to specific task and measuring 3.4 defects per million as standard leads to more time spent in areas which are less profitable. (2) Six Sigma gives emphasis on the rigidity of the process which basically contradicts the innovation and kills the creativity. The innovative approach implies deviations in production, the redundancy, the unusual solutions, insufficient study which are opposite to Six Sigma principles. (3) People argue that Six Sigma is a bit gimmicky and simply a rebranding of the continues improvement techniques and tools as practiced by Toyota. It thus promotes outsourcing of improvement projects with lack of accountability. (4) Six Sigma implementation constantly require skilled man force. Thus control and employee dedication are hard to accomplish if its not implemented regularly. (5) While converting the theoretical concepts into practical applications there are lot to real time barriers which needs to be resolved.

6. Containing Costs
Investments in reengineering, TQM, human capital, technology, globalization, and the like are all very important for organizational competitiveness. Yet, at the same time, there are increasing pressures on companies to lower costs and improve productivity to maximize efficiency. Labor costs are one of the largest expenditures of any organization Organizations have tried a number of approaches to lower costs: Downsizing, outsourcing and employee leasing, and productivity enhancement. We can discuss these challenges in detail:

1) Downsizing the planned elimination of jobs. Other ways of downsizing besides direct layoffs: Early retirements Sweetened voluntary separation program Sabbaticals Severance packages

Downsizing is very common in corporate business in the United States. In fact, there are 50% more victims of downsizing in the United States every year than there are victims of violent crime. Downsizing is so common in the United States that the United States Bureau of Labor Statistics publishes quarterly statistical reports on 'mass layoffs.' More than forty-three million jobs have been lost to downsizing since 1979. Furthermore, (75%) of households have had a close encounter with downsizing since 1980,

and one-third of people have actually lost a job because of downsizing. Another 40% know someone

who has lost a job due to downsizing. Unfortunately, the majority of people who have been downsized (65%) report earning lower salaries than they earned in the jobs they lost. This means only slightly more than one-third earn equivalent or higher wages in their next jobs. Not surprisingly, one in ten adults who has been downsized report that a major crisis has resulted in their lives as a result.

10 Ways to Survive in Downsizing

1. Realize that downsizing isnt personal.

There is a great possibility that the downsizing happened for reasons outside of your control If thats the case then its important to understand that its not your fault or a reflection on you. Youre just getting caught in the middle of business fact of life that impacts just about everyone at some point in their career. There no one to blame.

2. Dont take the victim mindset. Adopt the perspective that you are the same great HR
person that you were before downsizing. Its important that you take on the frame of mind that

you as a person, are always bigger and more important than any job or career that youll ever have.and that your unique set of HR skills and experience are valuable.

3. Reach out and spend time with others in your organization, especially other HR folks, who have also been downsized.
Youll get job and career ideas from them if you stick together, network and support each other. Resist the urge to think that youre in competition with each other. There is power in numbers.

4. Stay in touch with your HR colleagues who are still working at the company.
Candidly, some may uncomfortable talking with you since youre now moving on. However, dont let them feel awkward and be sure to bury your own ego. The next job opening or career opportunity usually comes from someone you already know, not from an ad or a headhunter. If youve done a great job of building relationships and networking, dont be surprised if you get a call from a former colleague or boss about a different opportunity.

4. Form your own Career Advisory Board of your 5-7 smartest friends and family members who know you well.
Why not use this as an opportunity for getting input from people around you who care? Get together twice a week to toss around ideas for how to handle the current situation and let them challenge you to look beyond the problem and consider new possibilities. They may know you better than you do and may provide options youve not thought about.

6. If you need to, reduce your spending right away to give you extra time to sort things out.
Dont assume that youll land the right HR job immediately. Cut your personal expenses by at least 40-70%, if needed. Dont be afraid to take brutal, even radical steps. Often, this type of selfimposed jolt will encourage a different type of thinking, which is critical during this time for

you. And, frankly, who needs the stress of worrying about money? You need to be thinking clearly at this time about your next career steps.

7. Start thinking about the kind of work that is personally rewarding to you.
You may find out its not HR work. If youre an HR generalist, do you want to stay a generalist? If youre doing labor relations work, are you tired of wrestling with unions or do you want to chance your career direction entirely. Too many people are not in jobs or careers which fulfill or satisfy them. And lifes too short to suffer in silence. So, use this break as an excuse to get real selfish and discover what makes you the happiest. When youre happy doing what youre doing, the money will usually take care of itself.

8. Invest in strengthening your towering skills.

No one else will. The HR job market is hungry for highly skilled individuals in any field generalists, specialists, consultants, coaches, mentors, part-timers, or contractors. If youve got a specialized skill or natural aptitude, invest in expanding that skill and making it even stronger. The best skills take time to develop into a well-paid profession, career or business. Its never too late to invest in yourself.

9. Treat the downsizing experience like a treasure hunt where getting your

next job is the prize.

Get out paper and pen or jump on your laptop and begin creating a plan for yourself. Identify where you are. What resources and skills you have. Who you know who can help consider doing anything you can do keep yourself motivated until you land the next job. Turn it into a game.

10. Get some coaching and counseling.

Many firms who are downsizing provide outplacement counseling and resources. Take full advantage of this benefit.

2. Outsourcing contracting outside the organization to have work done that formerly was done by internal employees. Some of the most common outsourcing are: Services of accounting firms Advertising firms Law firms Maintenance such as, security, catering, and payroll

Employee Leasing Process of dismissing employees who are then hired by a leasing company (which handles all HR related activities) and contracting with that company to lease back the employees. Impact on HR: 93% of all HR depts. reported outsourcing some of their work Increasing morale especially if you know your work is only temporarily Increasing productivity level Managing contracting companies Legal issues with temporary workers

Outsourcing Challenges
The idea of importing manpower and services from other countries has been around since the advent of international trade. However, the essence of outsourcing as known today allows the global workforce to be connected in many more ways. However, there are some outsourcing barriers that we have to confront before we can regard it as suitable to our business.

The payoffs of outsourcing are opposed by some hindrances. An important consideration is the

economic and political condition of the state. Third world countries have a high chance to have unstable governments. Furthermore, the economic policies of these nations can switch from one political cycle to the next. Thus, there is a level of uncertainty that increases the risk for businesses who want to invest in outsourcing.

One more considerable obstacle is the language gap. Because of this challenge, not many nations are eligible for outsourcing. Developing nations that are well-versed in English like the Philippines and India are perfect candidates. Companies should look for subcontractors that totally complies with the skill-set that they require.

One more outsourcing barrier is a nation's current infrastructure. This involves the legal system, banking system infrastructure, and the telecommunications infrastructure that coordinates everything. Without a highly-developed infrastructure, the cost of subcontracting and the risks that are part of this kind of investment can be larger than predicted.

Once all the macro-challenges are considered, businesses will need to deal with other outsourcing challenges like cultural gaps, ability to integrate operations, training, and knowledge transfer. Operating with outsource partners requires companies to coordinate their local operation to conform with them.

Aside from all of these, there are also active challenges that requires consideration. Among these are security risks, human resource management, time-zone, management challenges, and many more.

Outsourcing is not for all. There are specific situations when outsourcing challenges outweigh the advantages. At the end of the day, you have to decide whether outsourcing is good for you or not.

Top 7 Outsourcing Advantages

1. Focus On Core Activities In rapid growth periods, the back-office operations of a company will expand also. This expansion may start to consume resources (human and financial) at the expense of the core activities that have made your company successful. Outsourcing those activities will allow refocusing on those business activities that are important without sacrificing quality or service in the back-office. Example: A company lands a large contract that will significantly increase the volume of purchasing in a very short period of time; Outsource purchasing.

2. Cost And Efficiency Savings Back-office functions that are complicated in nature, but the size of your company is preventing you from performing it at a consistent and reasonable cost, is another advantage of outsourcing. Example: A small doctor's office that wants to accept a variety of insurance plans. One part-time person could not keep up with all the different providers and rules. Outsource to a firm specializing in medical billing. 3. Reduced Overhead Overhead costs of performing a particular back-office function are extremely high. Consider outsourcing those functions which can be moved easily. Example: Growth has resulted in an increased need for office space. The current location is very expensive and there is no room to expand. Outsource some simple operations in order to reduce the need for office space. For example, outbound telemarketing or data entry.

4. Operational Control Operations whose costs are running out of control must be considered for outsourcing. Departments that may have evolved over time into uncontrolled and poorly managed areas are prime motivators for outsourcing. In addition, an outsourcing company can bring better management skills to your company than what would otherwise be available. Example: An information technology department that has too many projects, not enough people and a budget that far exceeds their contribution to the organization. A contracted outsourcing agreement will force management to prioritize their requests and bring control back to that area. 5. Staffing Flexibility Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when you're done. Example: An accounting department that is short-handed during tax season and auditing periods. Outsourcing these functions can provide the additional resources for a fixed period of time at a consistent cost. 6. Continuity & Risk Management Periods of high employee turnover will add uncertainty and inconsistency to the operations. Outsourcing will provided a level of continuity to the company while reducing the risk that a substandard level of operation would bring to the company. Example: The human resource manager is on an extended medical leave and the two administrative assistants leave for new jobs in a very short period of time. Outsourcing the human resource function would reduce the risk and allow the company to keep operating. 7. Develop Internal Staff A large project needs to be undertaken that requires skills that your staff does not possess. Onsite outsourcing of the project will bring people with the skills you need into your company. Your people can work alongside of them to acquire the new skill set. Example: A company needs to embark on a replacement/upgrade project on a variety of custom built equipment. Your engineers do not have the skills required to design new and upgraded

equipment. Outsourcing this project and requiring the outsourced engineers to work on-site will allow your engineers to acquire a new skill set.

Productivity Enhancement
Productivity can be defined as the output gained from a fixed amount of inputs, organizations can increase productivity either by reducing the imports (the cost approach) or by increasing the amount that employees produce. Two view points: View Point #1 managers may cut costs only to find that productivity falls at even at ore rapid rate WHY????????? View Point #2 -Mangers may find that increasing investment in employees (raising labor costs) may lead to even greater returns in enhanced productivity. ? Fact: The US is the worlds most productive nation. However, other can catch-up How to Increase Productivity? Employee productivity is the result of a combination of employee abilities, motivation, and work environment. When productivity falls off or more positively, when productivity improves the changes is usually traceable to , motivation, and work environment

As per the role of HR, to fulfill the challenges of Productivity Enhancement, we need to work on Motivation and Work Environment. Motivation:
Motivation is what makes people tick: the needs, desires, fear, and aspirations within that makes you do what you do. It is the why in human behavior.

Motivation comes from within, You cannot motivate people to do good work, but by getting to know your employees you can activate their own motivations.

Motivational techniques
Leads them Real examples are quicker than advice Way to influencing people Appeal to benefits Can motivate Mutual benefits to both of you Appeal to emotions People act quickly to emotions Positive manner Sustained by repeated inputs Appeal to needs & wants basic needs satisfaction Creative expression, recognition & challenges & love Appeal to expertise Abilities enhance his self-worth Put best effort to seek approval

Top Ten Motivators

1. Thanks personally, timely, often & sincerely 2. Take time to meet and listen to staff 3. Provide feedback 4. Encourage new ideas and initiative 5. Explain how employee fits into organizations plans 6. Involve employees in decisions 7. Provide ownership in their work 8. Recognize, reward, and promote based on performance 9. Give chance to learn new skills 10. Celebrate successes!!!!

MOTIVATION FACTORS
Achievement Value and Appreciation Growth and advancement Responsible autonomy Interesting Job Encouragement to do better Company, proud to work Team, proud to be part Recognition Reward Passion to do innovation

Healthy Work Environments

Work environment- the combination of physical and cultural conditions under which particular tasks are performed to achieve an organizational goal.

     

Skilled communication True collaboration Effective decision making Appropriate staffing Meaningful recognition Authentic leadership

We have all worked at places that we were less than excited to get up in the mornings and go to; this is an awful feeling. It is much more pleasurable, and less stressful to go to a work environment that is filled with positivity and enjoyment. A positive work environment is not only important for our physical, mental and emotional health, but is also important for the results that we produce for the company. The better we feel at work, the more likely we will take pride in our job activities and be loyal towards our place of employment.

Developing a Positive Environment

Honesty
Honesty Be straightforward and up front in all dealings with employees. Managers must be truthful in everything they say and do. Avoid double standards.

Morale
Morale is the emotional condition (such as enthusiasm, confidence, and loyalty) of a team with regard to the task at hand. It is critical to develop an environment where the morale is high and the team can work effectively.

Maintaining high morale is something the manager will have to work on constantly. One way of keeping morale high is to let employees know their contribution to the team is significant in meeting the departments objectives.

Recognition
The timely recognition of individual achievements is critical in the development of an effective work environment. As manager, you want to set the parameters, communicate them to your employees, and ensure the employees understand them. Always consider recognition for the individual, even if you have a team project.

Summary of Challenges
The study is designed to assess the organizational and human resource challenges faced by human resource manager. Its objectives are to: specify the organizational and human resources challenges faced by HRM in fulfilling the roles envisaged in government and local policy; examine how HRM are addressing these challenges, in particular, to describe the organizational forms they have adopted, and the OD/HR strategies and initiatives they have planned or in place; assess how effective these structures, strategies and initiatives have been in enabling the HRM to meet the organizational and human resources challenges they face; identify the factors, both internal to the HRM and in the wider health community, which have contributed to the success or failure of different structures, strategies and initiatives.

Recommendation
The study is designed to assess the organizational and human resource challenges faced by human resource manager. Its objectives are to: specify the organizational and human resources challenges faced by HRM in fulfilling the roles envisaged in government and local policy; examine how HRM are addressing these challenges, in particular, to describe the organizational forms they have adopted, and the HR strategies and initiatives they have planned or in place; assess how effective these structures, strategies and initiatives have been in enabling the HRM to meet the organizational and human resources challenges they face; identify the factors, both internal to the HRM and in the wider health community, which have contributed to the success or failure of different structures, strategies and initiatives.

In this final stage of the study, the information gained from Stages 1 and 2 and the feedback from the reference group will be analyzed. The analysis will focus on three levels: . Practical lessons for HRMs - in particular the key organizational and human resources issues which HRMs (particularly newly formed HRMs) need to address; the approaches which have worked well for them; the factors which appear to be important in the success or failure of initiatives; and examples of good HR in HRMs. . Key messages for policy makers - in particular the policy issues which encourage or obstruct good HR practice in HRMs, and the support or guidance which would assist newly formed HRMs or PCGs in their preparatory and early stages. . Intellectual contributions to the theory of HR and e.g., concerning leadership, motivation and incentives, learning, partnership working and HRM in networks. To ensure the quality and focus of the research, a local advisory group will be established. The group will meet at key points during the research and will include a HRM Chief Executive, a HRM Chair (or Board Member), and three other members with academic experience in the field of organizational development and primary care. In addition a wider Reference Group will be set up comprising around 20 people who are opinion leaders in HRM and who would help spread the ideas and innovations discovered by the research via formal and informal networks.

During the research the case study HRMs and the wider Reference Group will have a number of opportunities to exchange ideas and good practice. Summaries of emergent themes from each phase of the research will be produced as working papers for dissemination to appropriate audiences. Formative and summative findings will also be disseminated through articles in professional journals and the popular health service press, and opportunities to present findings to relevant conferences and workshops will be pursued. The foregoing methodological framework is intended to be flexible. The policy context within which the study will be conducted is likely to alter during the course of the study, and qualitative organizational research is itself a dynamic enterprise. Thus, the precise methods and procedures will be chosen in response to the preliminary findings of each phase of the research.

Bibliography:

Internet search:
1. Explorehr.com 2. Citehr.com 3. Hrmasia.com 4. Hrmusa.com 5. Organizationhrm.com 6. Authorstrem.com 7. Sucrib.com 8. Bmc.co.in 9. Unpan1.un.org 10. Wfpma.com 11. Zeromillion.com /