Managing Environment in Human Resource

Introduction to HRM
Employees are the most important assets of an organization. In today’s competitive global business environment, hiring good professionals have become not only a difficult but an expensive process as well. Training them about the values and skills they need to succeed, ensuring they understand the organization's mission and strategy, and keeping them productive is the most important priority of any management institution.

Human Resource Management

involves recruiting personnel and their training, salary administration and handling union management relations. Because of such a dynamic scope in any
organization, or Personnel

management

Human

Resource

Management

surfaced as a lucrative career option for those qualified in managing resources organization. Every composed organization of people is and the for human any

utilizing their services, developing their skills, motivating them to enhance their levels of performance and ensuring that they remain committed to the organization are essential for the accomplishment of organizational objectives. This is true for all types of organizations - government, business, education, health, recreation or social action. Organizations that can do this will be both effective as well as efficient. Inefficient or ineffective organizations face the danger of stagnating or going out of business. The emphasis on proper and effective Human Resource

Management has increased in the recent times. It has come to be identified as an important factor in the successful management of an organization. With the growing importance of knowledge workers to organizations and the
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Managing Environment in Human Resource
rising expectations of employees, it is essential to have a good human resource management system in place. It is also important that all the different processes in an organization, like finance, HRM, marketing and operations align their objectives and strategies to those of the organization and work in harmony with each other.

Human Resource Management (HRM) consists essentially of four functions – acquiring, developing, motivating and retaining human resources. The acquisition function starts with planning for the number and categories of employees required, and end with staffing. The development function has three dimensions – employee training, management development, and career development.

The motivation function includes identifying the individual motivational needs of employees and finding ways to motivate them. The retention function is concerned with providing a conducive work environment to the employees and nurturing them to make them feel committed and attached to the organization. Traditional approaches to personnel management emphasize command and control. These have now given way to new approaches characterized by greater freedom and support to the employees. Many successful companies today empower their employees to manage most aspects of their work.

Though an organization’s physical assets are major factors in determining its success, it is now believed that its employees or human resources are equally critical assets. The successful management of an organization’s human resources is an exciting and dynamic task, especially at a time of increasing competition, when companies are facing newer and more complex challenges.
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Managing Environment in Human Resource

Development of HRM
Awareness regarding HRM was felt during the industrial revolution around 1850 in Western Europe and U.S.A. Only during the beginning of 20th century, it was felt in India. Since then, to the present era. The development of HRM may be classified as follows:

Trade Union Movement Era

The conditions of workers in the aftermath of factory system as an outcome of industrial revolution were very pathetic. The First World War worsened the situation. The Royal Commission of Labour in India in 1911, under the chairmanship of J.H. whitely, recommended the abolition of the ‘Jobber’ system and the appointment of labour officers in industrial enterprise to perform the recruitment function as well as to settle workers’ grievance. Workers also started forming ‘trade unions’. The Trade Union Act, 1926 was passed in India. The basic object underlying trade union was to safeguard the worker’s interest and to sort out of their problems such as use of child labour, long hours of work and poor working conditions. These unions used strikes, slowdowns, walkouts, picketing, as weapons for the acceptance of their problems. These activities of trade unions gave rise to personnel practices such as collective bargaining, grievance handling system, arbitration, disciplinary practices, employee benefit programs and sound wage structure.

Social Responsibility Era

In the beginning of 20th century, some factory owners, employers started showing humanistic approach towards the workers. Robert Owen, a British
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Managing Environment in Human Resource industrialist.Taylor in the USA in the early part of 20th century as on alternative to the prevailing system of management by initiative and incentive based on his shop floor job experience. toilets. work. • Scientific Management Era The concept of scientific management was introduced by F. Scientific selection and placement of workers best suited to perform the various tasks and provision of their training and development for maximum efficiency. The philosophy in Owen’s patriatic approach was that workers are just like children and the owner is just like a father. Taylor developed four principles of scientific management 1. rest rooms and increased minimum wages and housing scheme. 3. Page | 4 .W. Owen himself implemented this philosophy in his cotton mill in Scotland by introducing facilities such as shower baths. Clear cut division of work and responsibility between management and workers. 2. and best way of doing work. just like a father looks after his children. Development and use of scientific methods in setting work standards. reformer and humanitarian is considered to be the first to adopt humanistic approach towards workers. Therefore the owner should take care of the workers. it is necessary to improve conditions of employees by removing them from the adverse environment to a congenial atmosphere with the availability of satisfactory living and working conditions. determining a fair day. Hence he felt that to improve the productivity. He viewed that the principal social and economic environments influence the physical. mental and psychological development of workers.

ii. testing and training of employees in an organisation. In the scientific theory. experts expressed their opinions towards the human aspects of organisation activities. suggested the use of psychology in selection. Motion study – to study body movements in workplace and to reduce wasteful motions. Time study – to measure the time taken to each job and each operation and to standardize the operations of the job. Elton Mayo and his associates conducted a series of experiments from 1924 to 1932 of the Hawthone plant of the Western Electric Company in the USA. iv. Taylor viewed men and workers as one driven by fear of hunger and search for profit. if economic reward is tied up with the efforts put on the job. Hugo Munsterberg in his book. Accordingly. Standardization of tools. the worker will respond with his maximum physical capability. • Human Relations Era During the years 1925 to 1935. “Psychology and Industrial Efficiency”. Taylor also developed several techniques to introduce his scientific ideas in management. They were i. Harmonious relationship and close cooperation with workers to achieve performance of work in accordance with the planned jobs and tasks. The main findings of Hawthorne Experiments were as follows: Page | 5 . placement. equipments. Incentives – wage plan with differential piece rate for efficient and inefficient workers. iii. machinery and working condition.Managing Environment in Human Resource 4.

v. ii. But he or she will readily do so if the group to which he or she belongs.Managing Environment in Human Resource i. a person may resist changing his behavior as an individual. Favorable attitudes of workers and psychological needs had a beneficial impact on the morale and efficiency of workman. Employee. iv. More important motivators are job security. • Behavioral Science Era Important elements of behavioral approach to HRM are as follows: i. Employee groups based on social interactions and common interests exercised a strong influence on worker’s performance. Page | 6 . satisfaction is the best means of making the employee productive. According to their view. For example. right to express their opinion on matters related to them. iii. Fulfillment of the worker’s social and psychological needs had a beneficial impact on the morale and efficiency of workmen. Workers cannot be motivated solely by economic rewards. recognition. Physical environments at the work place do not have any material impact on the efficiency of work. democratic leadership style of the manager is more acceptable to the subordinates and hence more effective. Individual behavior is linked with the group behavior. The findings have stated that the relationship between the superiors and subordinates should relate to social and psychological satisfaction of the employees. Informed leadership rather than the formal leadership of manager is more effective in influencing people to achieve standards of performance. ii. decides to change its behavior.

The formal relationships among the members of an organisation ii) Social sub – system . The system approaches is characterized by the following features: a. • Systems Approach Era A system may be defined as a set of interdependent parts forming an organized unit or entity. A system is a group of inter – related elements which are separate entities / units. c. people do not dislike work. self – control and self – direction can improve operating efficiency. d.Exercise of power or influence by individual or group. b. Three broad sub-systems are i) Technical sub-system . All the elements are inter – related in an orderly manner. In fact job itself is a source of motivation and satisfaction to employee. The system is defined as “an organized and complex whole: an assemblage or combination of things or parts forming a complex unitary whole”.Social satisfaction to the members through informal group relations. Page | 7 . There is the need for proper and timely communication to facilitate interaction between the elements. These subsystems are inter-related and inter dependant. By nature.Managing Environment in Human Resource iii. The interaction between the elements should lead to achieve some common goal. Expanding subordinate influence. also known as sub-systems. Most people enjoy work and one is motivated by self control and self development. interact with each other and are subject to change. iii) Power sub – systems . The parts.

analysis and flow of information to facilitate the function of planning and control. The Best Way To Manage Varies With The Situation. A Particular Approach May Yield Fruitful Results In One Situation But May Drastically Fail In Other Situation. Therefore Managers Are To Analyze Different Situations And Then Use The Best Approach Suitable In That Particular Situation. Modern thinkers consider HRM as a system that integrates activities with an objective to make the best use of resources which are always scarce. Contingency Approach Believes That There Is No One Way Of Managing That Works Best In All Situations.Managing Environment in Human Resource At the heart of the systems approach is a Management Information System (MIS) and communication network for collection. • Contingency Approach Era Contingency Refers To The Immediate Circumstances. There May Not Be One Universal Way Of Managing In All Situations. Page | 8 . Hence This Approach Is Called As ‘Situational Approach. According To This Approach.

and making sure that these employees turn out to be outstanding performers. perks. One of the key departments involved in the process is the Human Resource Department. etc are some of the trends that are fast catching on with most organizations. industrial and employee relations and performance appraisals. For instance. salary and benefits. productivityboosting policies such as flexi-time. the human resource policy. job profile. such as compensation. change management. 360-degree appraisals. Page | 9 . which acts as the key to unlock. It also includes dealing with performance issues and ensuring your personnel and management practices conform to various regulations. career progression etc. training and development.Managing Environment in Human Resource The Art of Managing People ONE of the most defining factors for a successful career is finding the right job fit and work culture. develop. Human Resources are a resource. which is of immeasurable value for an organization. Human Resource Management involves researching and addressing staffing needs. personalized training for employees. employee benefits. tailor and utilize employee skills and talents to further individual as well as organizational goals. hiring and training the best employees. It is the human resource department. The Human Resource Department is entrusted with the vital function of keeping employees happy and thus assisting in enhancing the productivity of the company. identify. performance pay. In short. The right job fit involves a whole gamut of other issues as well. The chief functions of the human resource department are recruitment. ESOPs. • Careering into HR Any organization with manpower as its chief capital is a treasure trove of talent.

and help them utilize and maximize the in house pool of talent. benefits. • Qualifications As one of the more popular study options. and implementing policies. they also help redress employee grievances and help them map their professional growth in the organization. rehiring and firing. They also deal with employee reallocation. organizing. they map employee and management needs. The Human Resource Department also monitors and enables promotions and transfers. They act as links between the management and the employees. there are various courses available in Human Resources. drafting. refresher and training & development programmes and seminars. promotions. and conduct the necessary workshops to upgrade skills. Through counseling. In planning. conducting exit interviews. Human Resource Personnel help solve disputes and conflicts between the management and employee unions/employees. The management in taking key decisions. They screen shortlist. Maintaining employee relations are a key aspect in Human Resource Management. rules and procedures regarding recruitment.Managing Environment in Human Resource The HR department therefore aids: In planning. In recruitment and selection. interview and select probable candidates for the relevant posts. Boosting and motivating employees to perform well is also a part of the human resource personnel's schedule. orientation programmes. and conducting inductions. the human resource department devises and frames policies to recruit the best-suited personnel for the requisite departments. etc. retrenchment. They keep employees informed of the happenings in the organization. In training. identify latent talents and provide the necessary training. ranging from a diploma to a postgraduate degree. Some of the better-known institutes are National Institute of Page | 10 .

Academy of Human Resources Management. iv. • Growth and remuneration The hierarchical growth pattern in the human resource department is similar to other departments in an organization.Managing Environment in Human Resource Human Resource Development. However.8. Institutes such as the Bharatiya Vidya Bhavan also offer a diploma in industrial relations and personnel management. Compatible skills to the job (right employee for the right job) Ability to hit the ground running Multi tasking. Knowledge of industrial and labour law is essential. /Admn and Director HR / Vice President HR. 000 to 15. The hierarchical growth pattern begins as Executives / Management Trainees. Most aspirants wishing to make it big in HR have relatively no idea how important some very simple skills can be: i. industry and institute specific. ii. high energy levels and excellent inter . Other qualifications or experience in fields such as social work etc are also considered.personal skills Effective communication skills and ability to be a team player Page | 11 . • Career clues Managing human resources is an art and skill that can be acquired. General Manager HR/personnel/ I.000. Compensation are location. Administrative Staff College of India and the IIMs. an MBA ( HR and personnel management) is usually the first requirement to carve a career in HR. However as a beginner one can expect an initial monthly salary that ranges from a minimum of Rs. iii.R. who can later man posts of a Manager / Asst Manager.

A positive attitude and a burning desire to learn more and grow People oriented High levels of empathy Willingness to learn Not be tempted to misuse power over people Additionally. are more than just perks. nurturing it and seeing it grow. Therefore. viii. taking strategic business decisions along with the top management to ensure optimum utilization of the human resource talent. Research. and their application in the workplace. ix. HR personnel can be partners in business. vii. education and teaching. Problem solving and conflict resolution are the most important skills to possess. • The future Human resource management is fast becoming as enduring a field as banking. counseling.Managing Environment in Human Resource v. and even public relations are other employment avenues. consultancy. MIS. Good Human Resource Personnel must be knowledgeable about labour and industrial laws. training and developing individuals. etc) comes handy. guiding and appraising the performance and deciding compensation reviews etc. vi. knowledge of the latest software packages (MS word 2001. For a person passionate about HR. Page | 12 . technological awareness is important in the present day setup. recognizing young talent.

Page | 13 . employees want to control more than the “Stop” button on the assembly line. customers were passive. faster. competition was limited to sectors and regions. technology was static. cheaper. America and much of the rest of the world has been almost continually buffeted by change. trading patterns and markets were stable. and hierarchies were generally accepted in all walks of life.Managing Environment in Human Resource EEmerging Trends in Managing Human Resources If we trace back the history of business environment. in the early years. Customers demand that businesses do it better. speed in getting to market was secondary. No more. since 1960’s.

The knowledge professional will gravitate to an organization that is flexible. Events of the last five years of the previous century have focused our attention on knowledge industries. Nurturing talent and Retaining people has emerged to be the single most critical issue in lieu of the enormous opportunities spun off by the market. has strong values. with trade barriers between them reduced or removed completely. The holistic paradigm shift to a single global company has opened up new economic opportunities. They are propelled by an urge to experiment. Profound systemic changes have been seen in the way companies are structured. Managing. The new avatar of talent is the knowledge professional who is innovative. Second. business savvy. Quality human resources have therefore become an important base with which to respond to the emerging environment. they build a reward and recognition mechanism that provides value for people. companies create an organizational ambience where talent can bloom. flat structure with informality being a general rule and empowerment of Page | 14 .Managing Environment in Human Resource The twentieth century saw nations around the world become part of the global village. and possessing unbridled ambition. hierarchies and rigid organization structures of the past. have now given way to open work environment. Globalization of trade and economy are taking deep roots in India. has an instinctive ability to network. Cubicles. quick on the uptake. a robust performance ethic and provides challenging work on latest technology. A look at the trends in managing people in this dynamic industry reflects that Attracting. they put in place systems that help unleash their potential and third. The knowledge workforce in particular has a vital role to play in the emergence of the digital economy. This has led to companies proactively taking measures on three fronts. First. scan new avenues that can spur their creativity. The concepts of leadership and managing people gave undergone a radical rethink.

the top down communication model of yesteryears has been replaced by bottom up. cross level communication thereby encouraging people to voice their opinions and feelings. Coming times will see sabbaticals forming part of the organization culture. This work structure has led to a culture of flexi time. yoga and meditation centers to relieve stress. continuous up gradation of knowledge and skills. Open house sessions. companies are continuously striving to provide an intellectually stimulating environment.Managing Environment in Human Resource individuals. building relationships with academia thus enabling knowledge workers to pursue multiple careers within a single company. mentoring. In-house health clubs. video-conferencing and reporting by exception. day care centers and many of the like are being provided by companies. To stay one step ahead of the aspirations of their people. Companies today are constantly striving towards enhancing the quality of work life and also the personal life of its employees and this does not stop with the employee buts gets extended to his / her family as well. remote access. in-house libraries. Since working in teams is not a passing fad. round the clock accessibility to the workplace. corporate universities dotting the new horizon. employee get-togethers with invitations to come over with families. The new economy has given rise to a culture of working in teams. Today no job in the knowledge industry can be performed in isolation. competing companies bunching together to setup knowledge networks. knowledge sharing. With the increasing size of the companies. online chats on the intranet have emerged to be the communication enablers. which have virtual teams working on them. sports and cultural activities. which reward team performance in addition to Page | 15 . Also catching up fast is the trend of workstations at home. Few examples being. Today work itself is centered around projects. companies are now designing compensation structures.

To conclude. Page | 16 .Managing Environment in Human Resource individual performance. change is here to stay. Customers’ expectations. market changes and strategic decisions will derive the tools to managing the human assets. and we need to understand that all the practices that are working today may not necessarily work tomorrow.

taking up responsibilities at a lesser age and experience. the Indian work force and industrial climate is changing. and techno suaveness. BPOs and other knowledge based sectors. the focus is now on a strategic outlook where talent HR professionals look at improving the work environment and plan out human resource needs. here we are looking at different kind of people who does not obey the principles of management for the traditional group. This boils down to higher educational qualifications. Though it is not in the main run after the initial debates.Managing Environment in Human Resource Top 5 HR Challenges for Indian Organizations . preparing the work force to accept technological Page | 17 . This short article looks at five major challenges that we facing in terms of human resources and human resource management. • Managing Technological Challenges In every arena organizations are getting more and more technologically oriented. Though it is a reflection of what is happening in the western context. • Managing Knowledge Workers Essentially. Managing this set of people is essential for the growth of any industry but especially the IT. high bargaining power due to the knowledge and skills in hand. high demand for the knowledge workers. From an administrative perspective.A Current Perspective Clearly HR departments are evolving in our country. The clear shift is seen in terms of organization career commitment to individualized career management.

Page | 18 . at an organizational level it is more based on knowledge. • Developing Leadership It is quite interesting to note that there is less importance given to developing leadership at the organizational level. this boils to recruiting the best. Often it is discussed about lack of competence of HR managers in understanding the business imperative. Though leadership is discussed on basis of traits and certain qualities. Clearly HR managers have a role in this process. • Managing Change Business environment in India is volatile. There is boom in terms of opportunities brought forward by globalization. turnaround. We have seen sectors like banking undergoing revolutionary changes enabled by technology. However this is also leading to many interventions in terms of restructuring. • Competence of HR Managers As it is more and more accepted that lot of success of organizations depend on the human capital. The challenge is to develop individuals who have performance potential on basis of past record and knowledge based expertise in to business leaders by imparting them with the necessary "soft skills". There is now a need to develop competent HR professionals who are sound in HR Management practices with strong business knowledge. It is a huge challenge to bring in IT and other technology acceptance all levels in organizations.Managing Environment in Human Resource changes is a major challenge. managing the best and retaining the best.

As such. you ensure that what you are doing is aligned positively with the powerful forces of change that are affecting our world. STEEPLE and SLEPT Analysis) PEST Analysis is a simple. By taking advantage of change. PESTEL. useful and widely-used tool that helps you understand the "big picture" of your Political. Pest Analysis Understanding "Big Picture" Forces of Change (Also known as PESTLE. Page | 19 . by making effective use of PEST Analysis. it is used by business leaders worldwide to build their vision of the future. downsizing. Research has clearly shown that the success of these interventions is heavily dependent on managing the people issues in the process. you are much more likely to be successful than if your activities oppose it. It is important for these reasons: • First.Managing Environment in Human Resource mergers. Economic. Socio-Cultural and Technological environment. etc. PESTLIED. HR has a pivotal role to play here.

Draw conclusions from this information. Socio-Cultural and Technological. and 3. Economic. and helps you quickly adapt to the realities of the new environment. follow this three stage process: 1. To use this tool. good use of PEST Analysis helps you avoid taking action that is doomed to failure from the outset. and trade and tariff controls Environmental and consumer-protection legislation Likely changes in the political environment Page | 20 . PEST is useful when you start operating in a new country or region. 2. Brainstorm the relevant factors that apply to you. rule of law and levels of bureaucracy and corruption Regulation and de-regulation trends Social and employment legislation Tax policy. Use of PEST helps you break free of unconscious assumptions. for reasons beyond your control. Identify the information that applies to these factors. The following factors may help as a starting point for brainstorming (but make sure you include other factors that may be appropriate to your situation): Political: • • • • • • • Government type and stability Freedom of press.Managing Environment in Human Resource • Second. and • Third. • How to use the tool: PEST is a simple mnemonic standing for Political.

reduction in communications costs and increased remote working Research and Development activity Impact of technology transfer • • Figure 1 below shows this in diagrammatic format: Page | 21 . and attitudes to these Population employment patterns.Managing Environment in Human Resource Economic: • • • • • • • • Stage of business cycle Current and project economic growth. inflation and interest rates Unemployment and labor supply Labor costs Levels of disposable income and income distribution Impact of globalization Likely impact of technological or other change on the economy Likely changes in the economic environment Socio-Cultural: • • • Population growth rate and age profile Population health. education and social mobility. public opinion. job market freedom and attitudes to work Press attitudes. social attitudes and social taboos Lifestyle choices and attitudes to these Socio-Cultural changes • • • Technological Environment: • • Impact of emerging technologies Impact of Internet.

Page | 22 .PESTLE. Economic. Sociological. Political. Technological. Environmental. Legal. and • SLEPT: Social. and STEEPLE and SLEPT: Some people prefer to use different flavors of PEST Analysis. The variants are: • PESTLE/PESTEL: Political. Environmental.Managing Environment in Human Resource Figure 1: PEST Analysis in Diagrammatic Format Other forms of PEST . Technological. Environmental. Economic. Legal. International. Social. using other factors for different situations. Legal. PESTLIED. Technological. • STEEPLE: Social/Demographic. Ethical. • PESTLIED: Political. Technological. Legal. Economic. Economic. Demographic. Political.

Page | 23 . (The lower the amount of economic activity. businesses and projects that could otherwise operate are never launched . and the opportunities and threats that lie within it.. And do remember that few situations are perfect: it is up to us to make the most of the situation in which we find ourselves. the poorer and less capable societies tend to be. However. Key Points: PEST Analysis is a useful tool for understanding the “ big picture” of the environment. there are likely to be new opportunities and threats that arise.Managing Environment in Human Resource Example: We’re going to avoid giving an example here. And given that businesspeople normally have at least some level of intelligence. a broad principle is that things that make activity more difficult for people or organizations raise the cost of doing business: business is either stopped altogether. you can take advantage of the opportunities and minimize the threats. The higher the cost of doing business in a region.meaning that less economic activity takes place.) Another broad principle is wherever there is rapid or major change in an area.. the more project profitability is squeezed or eliminated. or costs more as people spend time and money circumventing difficulties. By understanding your environment. and there are few things as irritating as having an outsider criticize one's own country. Smart people and companies will take advantage of the opportunities and manage the threats. because of the huge potential for causing offense: few societies seem perfect to outsiders. in which you are operating.

Social and Technological. from this. Economic. This provides the context within which more detailed planning can take place to take full advantage of the opportunities that present themselves.Managing Environment in Human Resource PEST is a mnemonic standing for Political. Page | 24 . These headings are used firstly to brainstorm the characteristics of a country or region and. draw conclusions as to the significant forces of change operating within it.

SWOT is often used as part of a strategic planning process. SWOT is an acronym for Strengths. Many believe the SWOT is not an analysis. The analysis or more correctly interpretation comes after the SWOT summary has been produced. The term "SWOT ANALYSIS" is in it an interesting term. and that one can lead to the other. Page | 25 . Several versions are shown on this page .Managing Environment in Human Resource Swot Analysis Is a planning tool used to understand the Strengths. that to do a SWOT analysis that is both effective and meaningful. Weaknesses. Weaknesses. Opportunities. This cannot be done effectively by just one person. The methodology has the advantage of being used as a 'quick and dirty' tool or a comprehensive management too. It involves specifying the objective of the business or project and identifying the internal and external factors that are supportive or unfavorable to achieving that objective. While at first glance this looks like a simple model and easy to apply. but a summary of a set of previous analyses – even if those were not more than 15 minutes of mini-brainstorming with yourself in front of your computer. and Threats involved in a project or in a business. This flexibility is one of the factors that has contributed to its success. Opportunities.use the one which is best suited to your application and preferred style. requires time and a significant resource. and Threats There are several ways of graphically representing this on an analysis matrix or grid. It requires a team effort. I can say from experience.

Managing Environment in Human Resource • The SWOT Matrix Model Internal Strengths Positiv e Opportunities Weaknesses Threats External Negative or potential to be negative • An Alternative Matrix Strengths Offensive make the most of Opportunit these ies Adjust restore strengths Weaknesses Defensive watch competition closely Survive turn around Threats DEFINITION Page | 26 .

programs.Managing Environment in Human Resource A process generates information that is helpful in matching an organization or group’s goals. Which areas might the organization improve? • . They are within the organization’s control. beyond an organization’s control. The organization may benefit by having contingency plans to address them if they should occur. Note that in itself is only a data capture the analysis follows. • What opportunities exist in the environment. Threats • External factors. Strengths • • Positive tangible and intangible attributes. internal to an organization. Page | 27 • . . which will propel the organization? Identify them by their “time frames” . Opportunities • External attractive factors that represent the reason for an organization to exist and develop. Weakness • Factors that are within an organization’s control that detracts from its ability to attain the desired goal. and capacities to the social environment in which it operates. which could place the organization mission or operation at risk.

Page | 28 .Managing Environment in Human Resource • Classify them by their “seriousness” and “probability of occurrence”.

Managing Environment in Human Resource • OVERVIEW MATRIX: POSITIVE/ HELPFUL to achieving the goal NEGATIVE/ HARMFUL to achieving the goal INTERNAL Origin facts/ factors of the organization Strengths Things that are good now. prioritize them. put in plans to manage them or counter them Aim of a SWOT Analysis • • • • Reveal your competitive advantages Analyze your prospects for sales. profitability and product development Prepare your company for problems Allow for the development of contingency plans A SWOT analysis is a process to identify where you are strong and vulnerable -.where you should defend and attack. maintain them. Page | 29 . The analysis can be performed on a product. change or stop them. The result of the process is a 'plan of action'. a company or even on an individual. EXTERNAL Origin facts/ factors of the environment in which the organization operates Opportunities Things that are good for the future. remedy. capture them. build on them and use as leverage Weaknesses Things that are bad now. build on them and optimize Threats Things that are bad for the future. on a service. or 'action plan'.

As well as a PLAN to ACT ON. SWOT will give you the BIG PICTURE of the MOST IMPORTANT FACTORS that influence SURVIVAL and PROSPERITY. • POSSIBLE STRENGTHS S W O T Analysis .Possible Strengths Tangible Strengths Intangible Strengths Processes & Systems Page | 30 .Managing Environment in Human Resource Done properly.

are you considered a market leader? Or an expert in your filed? Do you have good relationship with your customers? (Goodwill) Do you have strong relationships with your suppliers Do you have a positive relationship with your employees Do you have any unique alliances with other businesses? Do you own any patents or proprietary technology? Do you have a proven advertising process that works well? Do you have more experience in your field? Are you managers highly experienced? • • Do you have superior industry knowledge? Are you involved with industry associations? Is your business Innovative? • • • • • • • • • • • • • • • • • Remember . Page | 31 . characteristics or qualities of your business/ organization that make you better than your competitors.Managing Environment in Human Resource • Assets including plant and equipment Your business location Do you have longterm contracts? Are your products unique or market leading? Have you got sufficient insurance resources to fund any changes you would like to make? Do you have any cost advantages over your competitors? Do you use superior technology in your business? Is your business high volume? Can your scale up if you need to? • Do you have a strong recognizable brand or do you stock strong brands Your reputation .Strengths – internal to your business. Add any additional strength that are unique to your business.

Add any additional weaknesses that are Page | 32 .Possible Weaknesses Tangible Strengths Intangible Strengths Processes & Systems • • Is your plant and equipment old or outdated? Is your product line too narrow? Have you got insufficient insurance resources to fund any changes you would like to make? Do you have a high overall unit cost relative to your competitors? Do you use inferior technology in your business? Do you have low volume and are restricted in your ability to scale up? • Do you have a weak or unrecognizably brand? Do you have a weak or unrecognizable image? Do you have a poor or impersonal relationship with your customers? Do you have a poor relationship with your suppliers? Do you have a poor relationship with your employees? Is your marketing failing to meet objectives? Are your managers inexperienced? Do you have low R&D? Do you lack industry knowledge? Do you lack innovative skills? • • • • • • • • • • • • • Remember .Managing Environment in Human Resource • POSSIBLE WEAKNESSES S W O T Analysis .Weaknesses – internal to your business/ organization. characteristics or qualities of the way you work that make you less competitive than your competitors.

• POSSIBLE OPPORTUNITIES S W O T Analysis .Opportunities are external to your business. They exist either Page | 33 .Managing Environment in Human Resource unique to your business/ organization.Possible Opportunities Industry/ Sector Opportunities • • • External Opportunities • • Expand your product line Diversify your business interests Expand into your customer's field Changes to legislation Changes to import/export constraints • • Good economic outlook Favorable cultural shifts – such as to greener products • • Expand into your supplier's field Expand your customer base (Geographically or through new products) • Changes in use of technology opening up opportunities for your business to utilize these technologies such as Ecommerce or Internet sales • • Do you have placid competitors? Are there any export opportunities? • Will your market grow? Remember .

Managing Environment in Human Resource within your industrial sector or outside of your sector. Add any additional opportunities that are unique to your business. Page | 34 .

Page | 35 . They exist either within your industrial sector or outside of your sector.Managing Environment in Human Resource • POSSIBLE THREATS S W O T Analysis .Possible Opportunities Industry/ Sector Opportunities • External Opportunities • Will low cost imports impact your business? Foreign exchange rate changes affecting imports/exports • Do consumers have a choice to use a substitute product? • • Changes in demographics Increasing regulation • Are substitute product sales increasing? • Is your market in slow growth or in decline? • Growing power of customers or suppliers to set price • Changing needs of buyers Remember .Threats are external to your business. Add any additional threats that are unique to your business.

B.000 crores. Anant.” The life Insurance industry accounts for 4. in 1999. chief .” Judhajit Das.02 per cent of the previous year. there were about 170 insurance firms after which the Indian govt. head . the Indian Insurance industry witnessed 100 per cent growth and this graph is likely to continue in the years to come. ICICI Prudential life Insurance gives a comparative view. nationalised all and brought them under the gamut of LIC. At the helm of mind-boggling growth. “Currently India’s share in the world life insurance market is 1. ICICI Lombard notes.HR. Before 1956. Thereafter. 30. insurance has emerged as one of the most promising sectors in the country.life and non-life. growth was witnessed with the entry of various private players. 70. “Life Insurance segment generates about Rs. However. SBI Life says. head HR & training. Talking about the money the sector generates. set up IRDA and liberalised this sector.68 per cent as against 1. “Last year. Shedding light on the growth graph of this sector. It is one of the fastest growing sectors in the country. R. the Govt. Mahajan adds.HR.” Page | 36 . the Indian Insurance sector has indeed witnessed a 360-degree turn. Mahajan.1 per cent of India’s GDP. “The Indian insurance industry has grown significantly in last six years with the entry of new private players which contributed immensely to the growth of the sector.Managing Environment in Human Resource The Promising Field Of Insurance Starting from being an open competitive market to nationalisation and finally to a liberalised market again.” The insurance sector has two broad categories .000 crores while non-life segment accounts for Rs.

There are over 20 lakh insurance agents who sell insurance products across the country. The multi-channel distribution approach adopted by most life insurance players provides a lot of employment opportunity in the urban. basic knowledge on the life insurance industry is a must. Elaborating on the opportunities that the sector has created not only in urban areas but in semi-rural areas too. weather etc. For all other operational roles apart from the specific skill sets required for that particular function such as finance and accounting. For marketing and sales. The qualifications and the skill sets needed depend on the work profile one is interested in. we’ve employed many from the rural and semi-rural segments. legal and compliance.” Not only does this sector provide with a vast number of opportunities but it also has a whole range of job options from specialist profiles in the domain of product development and actuarial. Graduates with the right aptitude and the aggression to meet stiff sales targets often are well sought after for this role. In fact out of 250 offices that we have in the country there are about 175 offices in semi-rural & rural markets. While for actuarial functions the candidate should have the required qualification from the Actuarial Society of India and should be very good at mathematics. In addition. “There are a range of insurance products for the rural poor as well like insurance for cattle. Page | 37 . underwriting.Managing Environment in Human Resource The sector today provides employment to over 185. claims and policy servicing to generalist functional profiles like sales and marketing. weavers. semi-urban and rural areas. information technology and finance. HR & training. Anant says. For the same. product knowledge and the ability to drive a team of insurance intermediaries is a must.000 individuals. an MBA qualification from a reputed institute is preferable.

there’s a challenge but if seen differently the same challenge can be treated as an opportunity to build a great workforce and boost this sector further. and the academia. “More and more new and innovative products would emerge in the market and there would be a constant need of talent up-gradation. “With the level of demand in the insurance sector.” Anant notes. Also Indian customers would look for better customer service.” Clearly. value for money products which would further fuel the demand for high quality manpower. product innovation. companies are investing a lot of time and resources towards employee training and development. Mahajan points out. For the same reasons. industry experts feel there’s going to be an increase in demand of specialist jobs. Talking further on the same. Page | 38 . many forward looking firms are stepping up and taking initiatives with the govt.Managing Environment in Human Resource With the sector moving at a fast pace.

the choice may be to outsource this function to an HR Consultant.T.T.O.W.W. Analysis.ensuring awareness of risks or perils to the organization Strengths and Weaknesses are typically internal while Opportunities and Threats are external. complete an S.O. But how does one know where to start in terms of the organization's human resource requirements? Well. Analysis can be performed on an entire organization.focusing on the elements that make the organization what it is • Weaknesses – minimizing/correcting areas that leave the organization vulnerable • • Opportunities .W.O. Analysis With many smaller sized organizations not having a full-time in-house Human Resource representative.O.Managing Environment in Human Resource Human Resource S.W. A S. Choosing to go this route is a wise investment. this process can prove to be a key element in achieving strategic goals in this area. In choosing to outsource the human resource function. What's it stand for? S.W.T. of course! S.maximizing prospects and valuing change Threats .O.T.T. • Making It Work… Page | 39 . but it can also be used to focus on specific divisions such as Human Resources. Analyses have been conducted by many organizations over the years. is a tool used to understand an organization's: • Strengths .

T.O. What does the organization offer employees that the competition doesn't and vice versa? e. This will assist the facilitator on keeping everyone focused on the task at hand. suppliers or vendors when they interact with employees and management? Page | 40 . What is the opinion of customers.W.O. What practises and policies are already in effect and working efficiently? b. The cross referencing of feedback from management and employees may reflect differing opinions and perspectives.T. technological changes. So what are the next steps in completing a S. It's suggested that two S. Analyses be conducted – one with management and one with employees.Managing Environment in Human Resource An individual can complete a S. What practises and policies are not working well and need to be reviewed? c. government regulations.W.T. What trends are occurring in hiring. employee retention. Analysis on their own but it is recommended to involve as many people as possible in evaluating these criteria. etc? d.O. In a larger organization it may be beneficial to select a group of people from each department to participate in the process.W. Analysis on the HR requirements? Consider the following questions: a.

Managing Environment in Human Resource
f. Do

the

human

resource

weaknesses

leave

the

organization

vulnerable to employee relations issues, voluntary resignations, succession concerns, etc?
g. What do employees have to offer in the way of skills and

qualifications?
h. Are the right people in the right roles?

Ask as many questions as possible in relation to the organization's Human Resource Strengths, Weaknesses, Opportunities and Threats. If customer satisfaction surveys are conducted, use the information collected from that tool to add insight, as the customer's opinions are equally as important as the organization's internal personnel.

Put the Results to Use… An outsourced HR Consultant will work within the groups to record

responses and then openly discuss the results with the parties involved. The next step is to work through each point made, prioritize and rank them. Then determine what can be done to maximize the Strengths and Opportunities and minimize the Weaknesses and Threats. Evaluate and assign a level of importance from 1 to 10 to aid in creating action plans for each item, delegating responsibilities for each. Regular follow up by the HR Consultant and management on the progress of each item is critical, remembering to maximize all resources during the process. It's important to review these areas on a quarterly basis to re-asses and create new action plans if necessary.

S.W.O.T. Analysis can assist in identifying areas of weakness and potential threats to the organization's HR. Therefore, be honest and
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Managing Environment in Human Resource
realistic in determining each element - deal with the weaknesses and threats head on rather than avoiding them. There's no point in finding out later that the competition is ahead of the game because complete honesty wasn't applied to the process. It's better to be realistic now than having to face the pitfalls later on. When considering the opportunities, take a look at what is occurring today as well as what could occur in the near future.

Conclusion…

When determining the Strengths, Weaknesses, Opportunities and Threats of the Human Resource needs, consider where the organization is in terms of the following: • • • • • Employee and management hiring and retention levels Economic and market changes Physical working environment Technological trends and changes to the industry Government regulations and political changes

Customer and employee satisfaction Honestly and openly evaluating the organization's Human Resource requirements will help the business stay ahead of the competition, while maintaining and striving towards the overall strategic goals. Remember to take time to maintain strengths, correct weaknesses, take action on opportunities and deal with potential threats.

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Even when these competencies are aligned. focus on measuring performance through a map of results. unless the person has the right set of skills.Managing Environment in Human Resource Swot Analysis . However clear the performance requirements may be. he will not be able to excel in the role. behaviors and competencies.Insurance Sector • SWOT your way to better performance Most performance management systems that are top down. often the way these Page | 44 . One of the defects of this approach is that it does not leverage or maximize the potential of the person who needs to deliver this performance. The entire systems are derived from the organizational strategy as outlined either through the strategy map or any other strategy definition and detailing methodology. aptitude and knowledge.

The SWOT gives a good snapshot of the individual's approach as well as her competencies. Moreover. What unique resources does the person draw on? 7. What particular needs of the organization are met? Each individual is unique and has her strengths. Weaknesses. Strengths 1. We can get an indication of strengths while considering questions such as: 2. What unusual skill/s does the person bring to the job? 6.Managing Environment in Human Resource competencies get deployed will differ from how another person with similar competencies will behave in a similar role. What areas of the roles does the person do well? 4. a SWOT is relatively easier to implement and can deliver value at almost any level. unlike other methods of competency mapping that require high degree of expertise and skills. What are others likely to see as strengths? 8. often exhibiting an innate understanding of the technicalities of the work? 5. In what areas of the role does the person naturally get into more detail. they are Page | 45 . Opportunities. and Threats) of the individual can help make a difference. • STEPS TO DRAW UP A SWOT in INSURANCE SECTOR The first step is to look at the Strengths and weaknesses of the individual. What does the person like to do? 3. Studies have shown repeatedly that those employees who enjoy doing what they do. This is where a SWOT analysis (Strengths.

Are there other processes in the business model where the individual's strengths can be leveraged? Page | 46 . Companies that have focused on employee strengths have seen time and time again. or prefers to remain at a high level? 4. what areas of the current role. personal areas of weaknesses can be deduced by asking questions such as: 1. What areas of the role does the person perform poorly? 3. but it's only in developing strengths that success can be attained. Opportunities come out of the specific strengths of the individual as well as the role that the person is expected to play. the next step is to look at opportunities. negative attitude and consequently poor performance.Managing Environment in Human Resource more likely to be working in business units with lower employee turnover. Keep your mind on them. Where does the person have fewer resources than others? 5. and other related roles can the person play well? 2. Working on improving a weakness may at best prevent failures. What does the person dislike? 2. It can result in creating poor self-image. once these Strengths and Weaknesses have been defined. What are others likely to see as weaknesses? Weaknesses like fear can result in a self-fulfilling prophecy. and that's what you get. What areas of the role does the person prefer to either work at a task level. Some pointers that help identify opportunities are: 1. Considering the strengths. Opportunities Now. Weaknesses Similarly. increase in productivity and employee loyalty.

ensure that clear “acceptable minimum” targets are set. since they are identified well in advance. What are the impediments to gaining more skills? 4. What trends can the individual help the organization take advantage of? When deciding the performance targets for the individual. so that the individual does not compromise performance below these levels under any circumstances. so as to add value to the business vision and objectives. What areas of the current role are likely to be compromised if the individual is put under stress? 2. Threats When looking at threats. The next step is to analyze the gathered details & create strategies for success both for the current situation and for the future. • Analysis of SWOT findings A SWOT analysis is always done with regard to an objective and is never obscure. What trends could cause harm? For areas that are potential threats. A possible likelihood and a potential benefit is that these threats can be converted into opportunities.Managing Environment in Human Resource 3. Threats can also be used to examine and modify the employee's profile. stretch goals that centre on a person's opportunities which are likely to energize and excite the individual. ask: 1. Page | 47 . Opportunities and Threats is only half the job done. What skills is the employee lacking? 3. Weaknesses. Therefore the gathering of the Strengths.

4. in the near future. and record the resultant WT (Weakness-Threats) strategies. These strategies focus on problems that need immediate address.Managing Environment in Human Resource This can be done by analyzing the four quadrants of the SWOT matrix: QUADRANT 1 SO (StrengthsOpportunities) strategies QUADRANT 3 WO (WeaknessOpportunities) strategies QUADRANT 2 ST (Strengths-Threats) strategies QUADRANT 4 WT (Weakness-Threats) strategies 1. and record the resultant WO (Weakness-Opportunities) strategies. and record the resultant ST (Strengths-Threats) strategies. These strategies focus on constraints that can be converted to opportunities. 3. Match internal weaknesses with external opportunities. Match internal weaknesses with external threats. • • • • Benefits of a SWOT It is simple and encourages collaboration among employees It is both cost and time effective It explores and integrates information both from internal sources and from external sources and is highly flexible Page | 48 . These strategies focus on leveraging current opportunities with the available strength. Match internal strengths with external opportunities. 2. Match internal strengths with external threats. These strategies focus on vulnerable situations that require awareness. and record the resultant SO (Strengths-Opportunities) strategies.

its ability to match between the two and because of its ability to chart out sound strategies thereafter. both internal and external factors (environments). It is here that SWOT analysis is useful. SWOT is highly recommended because of its ease of use and its ability to scope the entire setting (playing field) i. Page | 49 .e. It will help isolate key issues and facilitate a strategic approach to address them. thus providing for team synergy as well • It is a great team-building tool.Managing Environment in Human Resource • Most businesses are efficient in analyzing their internal strengths and weaknesses but are not efficient with analyzing the external opportunities and threats and where they stand in relation to it. Conclusion A well managed SWOT will help a business see the overall picture. it helps to have people with complementary SWOT profiles. It causes businesses to look beyond and to strategize accordingly • It presents information about the industry in a structured manner. defend themselves against any threats and consequently ensure long-term success. since it involves every member of the team in the planning process. and aids in the formulation of effective strategies • • Helps focus effort on areas that give competitive advantage Gives an insight with regard to threats and how to react proactively to them and to convert them into opportunities • SWOT analysis also helps to leverage team dynamics because when building a team of people with identical roles. Businesses can use a SWOT to position themselves to take advantage of opportunities.

Managing Environment in Human Resource Page | 50 .

Our group solutions have been designed to offer you complete flexibility combined with a low charging structure. Page | 51 . It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited) . Range of Solutions We have a range of individual and group solutions. • Our Key Strengths 1. As on February 28. which offers a range of individual and group insurance solutions. which can be easily customised to specific needs. while the rest is held by others. Insurance Expertise As a joint venture of leading insurance services groups. Ltd. HDFC Standard Life has the insurance expertise required to manage your long-term investments safely and efficiently.Managing Environment in Human Resource HDFC Standard Life Insurance • Introduction HDFC Standard Life Insurance Company Limited is one of India's leading private insurance companies.00% of equity in the joint venture. 2. holds 26.43% and Standard Life (Mauritius Holding) 2006. India's leading housing finance institution and a Group Company of the Standard Life Plc. 2009 HDFC Ltd. holds 72. UK.

2008 our new business premium income stood at Rs. 2000. 2008 stood at Rs.859 crores. Strong Promoter Page | 52 . 2008. for the year ending March 31. we have consistently focused on setting benchmarks in all aspect on insurance business. We continue to promote high integrity in business practices and shun short cuts and unethical practices. as these are inviolable. we have concentrated our focus on expansion of branch network. 4. when the Indian insurance space was opened for private participation. As of 31 December. 1. The company has covered over 812.Managing Environment in Human Resource 3. Being the first private player to be registered with the IRDA and the first to issue a policy on December 12. Our core values are drilled down to all levels of employees. our differentiators are: A.811 lives as on December 31. As all these areas form the basic infrastructure for establishing the highest possible customer service standards. Track Record So Far Our gross premium income. and setting up appropriate systems and processes with optimum use of technology. To ensure this.839. • Why HDFC Standard Life? HDFC Standard Life believes that establishing a strong and ethical foundation is an essential prerequisite for long-term sustainable growth.70 Crores. organizing an efficient and well trained sales force. Since our inception in 2000. as we wish to be perceived as an institution with high moral standing.

C. we understand that customers have invested their savings with us for the long term. Today. Sar Utha Ke Jiyo. high standards of ethics and clarity of vision. Preferred and Trusted Brand Our brand has managed to set a new standard in the Indian life insurance communication space. insurancely secure business and a market leader in the UK Life & Pensions sector. HDFC Ltd’s excellent brand strength emerges from its unrelenting focus on corporate governance. Investment Philosophy We follow a conservative investment management philosophy to ensure that our customer’s money is looked after well. we are one of the few brands that customers recognize. with specific objectives in mind. B. Page | 53 . like and prefer to do business. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. Moreover. and stable investment returns to match the investor’s long-term objective and return expectations. Thus. our brand thought. consistent. is the most recalled campaign in its category.Managing Environment in Human Resource HDFC Standard Life is a strong. As a life insurance company. We were the first private life insurer to break the ice using the idea of self-respect instead of ‘death’ to convey our brand proposition (Sar Utha Ke Jiyo). our investment focus is based on the primary objective of protecting and generating good. insurancely secure business supported by two strong and secure promoters – HDFC Ltd and Standard Life. Standard Life is a strong. irrespective of the market condition.

E. sales in the industry have been characterized by over reliance on tax benefits and limited advicebased selling. Besides the mandatory training that Insurance Consultants have to undergo prior to being licensed. Our eight-step structured sales process ‘ Disha’ however. G. objection handling skills and so on. selling skills. the first of its kinds in the industry. These are regularly reported to the board and this ensures that the company management and board members are fully aware of any risks and the actions taken to ensure they are mitigated F.Managing Environment in Human Resource D. helps customers understand their latent needs at the first instance itself without focusing on product features or tax benefits. we have developed and implemented various training modules covering various aspects including product knowledge. Need-based selling process. looks at the whole insurance picture. Almost all employees have undergone training to enhance their technical skills or the softer behavioral skills to be able to deliver the service standards that our company has set for itself. Focus on Training Training is an integral part of our business strategy. Focus on Long-Term Value Page | 54 . Need-Based Selling Approach Despite the criticality of life insurance. Risk Control Framework HDFC Standard Life has fully implemented a risk control framework to ensure that all types of risks (not just insurance) are identified and measured. 'Disha'. Customers see a plan not piecemeal product selling.

Strict Compliance with Regulations We have initiated and implemented many new processes. Today.Managing Environment in Human Resource HDFC Standard Life does not focus in the business of ramping up the topline only. J. This has now been made compulsory by IRDA for all insurance companies under the new Unit Linked Guidelines. Diversified Product Portfolio HDFC Standard Life’s wide and diversified product portfolio help individuals meet their various needs. Transparent Dealing We are one of the few companies whose product details. pricing. The agents who successfully completed this training only. H. clauses are clearly communicated to help customers take the right decision. some of which were found useful by the IRDA and later made mandatory for the entire industry. I. were authorized by the company to sell ULIPs. we are extremely satisfied with the base that we have created for the long-term success of this company. be it: • Protection: Need for a sound income protection in case of your unfortunate demise • • • • Investment: Need to ensure long-term real growth of your money Savings: Save for the milestones and protect your savings too Pension: Need to save for a comfortable life post retirement Health: Cover for health related exigencies Page | 55 . but to create maximization of stakeholder's value.

Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries.000 depositors. HDFC has set benchmarks for the Indian housing finance industry. India’s premier housing finance institution has assisted more than 3. banking and health-care needs. Customer Service and satisfaction has been the mainstay of the organization. 82. It has international offices in Dubai.3 million families own a home. pension. Qatar. since its inception in 1977 across 2400 cities and towns through its network of over 250 offices. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt. As of December 2008. the total asset size has crossed more than Rs. and Bangladesh in the setting up of housing finance companies. Kuwait and Oman to assist NRI’s and PIO’s to own a home back in India. Standard Life Group (Standard Life plc and its subsidiaries) The Standard Life Group has been looking after the insurance needs of customers for over 180 years. Maldives.000 crores including the mortgage loan assets of more than Rs. Its investment Page | 56 . London and Singapore with service associates in Saudi Arabia.800 crores. investment. The corporation has a deposit base of Rs.Managing Environment in Human Resource • Our Parentage HDFC Limited HDFC Limited.551 crores. It currently has a customer base of around 7 million people who rely on the company for their insurance. 00. 95. earning the trust of more than 9. 17.

'The most obvious choice for all'. and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's. and to Standard Life Bank since its inception in 1998.Managing Environment in Human Resource manager currently administers £125 billion in assets. offer the best value for money. and it was voted a 5 star life and pension’s provider at the Insurance Adviser Service Awards for the last 10 years running. Our Values Values that we observe while we work: • • • • • • Integrity Innovation Customer centric People Care “One for all and all for one” Team work Joy and Simplicity Page | 57 . Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006. 2005 and 2006 at the Money Marketing Awards. the easiest to deal with. Standard Life was awarded the 'Best Pension Provider' in 2004. which means that we are the most trusted company. It is a leading pensions provider in the UK. • Our Vision & Values Our Vision 'The most successful and admired life insurance company. and set the standards in the industry'. The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years.

In this endeavor of shaping and nurturing our talent pool. and personal traits (demonstrated through defined behaviors) based on the bedrock of sharp vision and strong values of HDFC Standard Life. experience. We have a bouquet of people processes like Assessments. The competency set includes knowledge.Managing Environment in Human Resource HUMAN RESOURCE MANAGEMENT {At HDFC STANDARD Life Insurance} The company attributes its success to the contributions made by its employees. HDFC Standard Life adopts a four-step model: a. so our endeavour is to surpass their expectations and give them the best possible work environment and benefits that match the best in the industry. Talent management initiatives in HDFC Standard Life are driven by a set of organizational core competencies (Mantra 10) as well as positionspecific competencies. Potential Review. skills. We believe that our strength is our people. Acquiring and Retaining Talent HDFC Standard Life believes in building capability for superior performance leading to a superior shareholder value. Defined Career plans that identify and invest to create effective leaders. Page | 58 .

We have a set of identified core competencies. employee engagement has become a business imperative. b.Managing Environment in Human Resource Our path breaking career progression progamme – Front line Assessment and Growth Program (FLAG) -. which enable an individual to contribute towards organizational growth. The above is true for all levels as we believe that providing opportunity to employees is the key to motivate them to aspire for higher responsibility. Capturing employee insights as to the strengths and concerns of the organization is the starting point of the Engagement journey. These findings help us to prioritize areas for employee engagement action across the organization and specific to various departments. Engaging Talent In today’s environment. Through concerted efforts at the organizational. functional and work group level. which help employees to imbibe and achieve a consistent business performance. As HDFC Standard Life is a performance-driven organisation. It recognizes achievers through fast track career progression coupled with attractive remuneration. Competency Mapping and Developing Capability Competencies are the desired business behaviors.’ We believe in integrating our HR processes on the basis of ‘Mantra 10’. together we strive towards attaining the goal of making HDFC Standard Life ‘a great workplace. to create a competency driven culture. We have branded our competency model as ‘Mantra 10. HDFC Standard Life partners with reputed global organisation such as Gallup to assess employee perception on critical engagement dimensions that consistently correlates to business outcomes. c. effortlessly.for the retail channel is designed towards achievement orientation. achievers move up the career ladder.’ Page | 59 .

gratuity and a hospitalisation insurance coverage program that covers not only the employee but his/her family as well.Learning. The employees. are automated through the extensive use of technology. can avail of housing and education loans facility at discounted rate. etc. travel planning. updating personal information.’ We take pride when we talk about learning opportunities we offer to employees. These temples of learning provide a unique learning environment to employees to hone their skills & capabilities through our internal trainers in Sales. reimbursement. For our employees’ convenience all common processes like compensation details. leave applications. We have robust employee recognition programs in place for employees who achieve ‘above & beyond. and market value. Rewards for each position are based on performance. Compensation & Benefits Well-being of our employees is our utmost objective. We offer other benefits as well. who complete two years of service.Managing Environment in Human Resource d. Page | 60 . Behavioral Sciences and E. potential. We have set the trend in Learning & Development in the Insurance space. Bangalore and Lonavala (Mumbai). We have training plans for employees at all levels and for our insurance consultants. such as provident fund. We encourage our employees to go for further education. The compensation and benefits offered are best in the industry and are aimed at not only attracting but also retaining the best talent. we have created a training infrastructure with 3 training centers of our own at Delhi. e. Rewarding and Nurturing We believe that raising the bar of performance keeps employee challenged and the generation enjoys the stretch.

HRM Challenges Faced By Managers At HDFC Standard Life Insurance Introduction: The HR Managers of today may find it difficult because of the rapidly changing business environment and therefore they should update their knowledge and skills by looking at the organization's need and objectives. Page | 61 . The HRM challenges are • Managing the Vision: Vision of the organization provides the direction to business strategy and helps managers to evaluate management practices and make decisions. So vision management becomes the integral part of Man management in future. providing satisfaction to the employees and sustaining through culture and systems is a challenging task. making it one of the most comprehensive entry-level programs in India. Well-qualified management graduates are provided with in-depth knowledge of insurance sector and business processes. Management Trainee Program The key objective of this program is to nurture business leaders of tomorrow.Managing Environment in Human Resource f. • Internal environment: Creating an environment which is responsive to external changes. The management trainee program spreads over a period of 12 months.

• Employee Satisfaction: Managers should be aware of techniques to motivate their employees so that their higher level needs can be satisfied. • Job Design & Organizational structure: Instead of depending on foreign concepts we need to focus on understanding the job. • Computerized Information System: Page | 62 .Managing Environment in Human Resource • Changing Industrial Relations: Both the workers and managers have to be managed by the same HRM Philosophy and this is a daunting task for the managers. technology and the people involved in carrying out the tasks. • Psycho-Social environment: Nowadays employee’s participation required not only in performing job but also in democratizing and humanizing the institution. • Managing the large work force: Management of large workforce poses the biggest problem as the workers are conscious of their rights. • Modern technology: There will be unemployment due to modern technology and this could be corrected by assessing manpower needs and finding alternate employment. • Building Organizational capability: Even in the adverse circumstances the employees have to be made to live in psychological state of readiness to continually change.

Managing Environment in Human Resource This is revolutionary in managerial decision making and is having impact on coordination in the organization. adjustments have to be made to the maximum utilization of human resources. • Legal environment: To meet the changes in legal environment. managing the relations will be of great challenge. • Managing Human Relations: As the workforce comprises of both educated and uneducated. Page | 63 .

Managing Environment in Human Resource SWOT ANALYSIS {At HDFC Standard Life Insurance} • Criteria Examples for A Manager Strengths What are my/ your strengths? Examples: Enthusiasm. energy. expertise in Subject area Excellent track record in specialized area Weaknesses What are my/ your weaknesses? Examples: Not good at achieving results through undirected use of personal energies. imagination. Trouble at expressing themselves orally and on paper Management experience and expertise limited What are my/ your opportunities? Examples: More general management opportunities requiring development of new managers Development of new locations and need for management What are my/ your threats? Examples: De-centralization having the effect of removing departments Elimination of middle management layers Opportunities Threats Page | 64 .

Managing Environment in Human Resource • Criteria Examples for HRM Internal Factors (Company) Strengths What are the strengths of our HRM? Examples: • Developed techniques for HRM • Innovation culture in the HRMTeam • Modern IT-Infrastructure What are the opportunities for our HRM? Examples: • New management team wanting to improve business through organizational development and cultural development programmes • Governmental programmes to promote the qualification of young people Weakness What are the weaknesses of our HRM? Examples: • Poor position in management: Reactive rather than pro-active work • No ideas to meet the lack of young. Internal Environment) Page | 65 . qualified people What are the threats for our HRM? Examples: • Contribution of HRM not recognized by top management • Budget reduction for vocational training and further training • Deficit of well qualified people in labour market Opportunities Threats External Factors (Market.

Managing Environment in Human Resource Figure 1 : SWOT Analysis Figure 2 : Coping Up With Challenges Of HR Page | 66 .

Page | 67 .Managing Environment in Human Resource Figure 3 : Impact Of Recession On Organization.

Managing Environment in Human Resource Page | 68 .

development and benefits costs while continuing to service employees and clients effectively? How do we sustain performance in the face of cost constraints? Page | 69 . It is more important than ever that they connect their emerging leaders and talent sources with the senior leadership. Hence the HR’s of all insurance services firms must look for answers for certain difficult questions: • • • How can we still attract and retain outstanding people despite tighter limits on recruiting and compensation? Is reducing headcounts cutting into our core talent? Are we making smart decisions or blind mandates about where to invest and where to cut? • How can we reduce training. they are in an intellectual capital business. the need of top performers is the perennial need.Managing Environment in Human Resource HR’s Challenges in the Insurance Sector Turmoil in insurance markets during this economic downturn. Though the market downturn is the harsh reality. has presented insurance services firms and their human resources functions with daunting challenges in their approach towards talent. Insurance Services sector can’t afford to lose focus on people. the severity of this insurance crisis cannot be over-dramatized by losing focus on strategic human capital systems and functions which can form means of overcoming the paramount challenges in the future of the insurance services sector. while working directly with line managers to equip them with tools for managing teams during times of unprecedented change.” Even though the insurance services sector is caught in the tough conditions.

But this happens the HR-Generalist role becomes critical and depends on the generalist’s ability to recognize now more than ever on how they can help leaders manage in this time of turbulence and ambiguity. keeping the market conditions in perspective. and talent management – It is time that these areas and its supporting elements are wisely altered to stand ground against this current volatility in the industry. providing greater value add. • The New Role and Set up: Introspect The role of HR Generalists must be nurtured by linking them to the business. At the same time. They should be versed with the importance of lean teams and should be able to contribute towards Lean management. some distinct trends are sure to emerge in the desired competencies of HR personnel. HR generalists who remain close to the business and have sufficient core business knowledge gain credibility and are in lock-step with business heads. In addition.Managing Environment in Human Resource In the face of these challenges. and the approach to familiar HR issues .such as recruiting. broadly talented HR professionals who are able to work across the function should be encouraged. on boarding and developing HR professionals with experience in managing across a range of geographies is important if firms continue or intend to expand globally. even if it requires asking an organizational development specialist to step in for specific challenges. Page | 70 . the deployment of HR infrastructure. retention. One way to initiate this is by retraining the existing HR staff on ways to handle wider set of challenges.

We are also seeing some discernible HR talent trends in specific industry segments. the role of an HR is to assert its value-add to the organization through stringent measurement and reporting against metrics that track not only cost. But today at one end we see firms preferring shared services model to reduce costs and increase efficiency. many firms shied away from conducting massive layoffs. This is where reporting and documentation of critical information plays a vital role. The need to do more with less has intensified. who can manage the complexities of workforce.Managing Environment in Human Resource A talent pool of seasoned professionals. fun and benefit programs. with companies taking a hard look at issues such as compensation and vendor management. During this time. well. many service and private equity firms with historically lean or non-existent HR functions are taking advantage of today’s ‘buyer’s market’ for talent by recruiting human resources professionals who can bring in the best practices from more institutionalized firms and industry segments. While at the other end. we can see some firms moving toward centralization as a means of creating a leaner function that serves across business lines. but efficiency. it was boom time!!!. firms are being Page | 71 . Cost containment has become a grave concern in the area of HR. retention. However. with the economic downturn. For example. • Recruitment – Favorable conditions V/s Challenge Until recently. implementing more self-managed services and web resources for benefits and training. will always stand limited unless the selection decisions contribute towards the objective of business purpose. turnover and performance. earlier several service firms reorganized HR and talent management teams by closely aligning them with business lines as a means of serving specific internal customer needs.

Opportunistic hiring at the Director level and above continues. All at the same time J.especially as they become increasingly institutionalized and. in some cases. not all individuals will be re-hired elsewhere. with a focus on talent that supports core businesses and positions. and be prepared when the economy rebounds.Managing Environment in Human Resource forced to let go of staff. many firms continue to invest in key areas such as technology. A recession is a great time to pluck the cherry from the cake. the labor pool is the large and with higher quality than ever. Well this world is guided by optimism. In addition to investing in HR teams. Now. But its nice to know that there are few firms who understand that tough times offer a golden recruiting opportunity: with fewer open positions. the acquiring firms and alternative asset managers are lifting out whole teams that are aligned with strategic senior hires. more at junior levels while retaining or even continuing to hire strategic employees at senior levels to prepare the firm for the future. Those at the director level and below will view this as an opportunity to shift away from the industry or the investment banking sector in particular. maintain reputation and brand equity. Insurance firms are still seeking top talent . Page | 72 . go public. including more junior staff. wealth management. All this with a hope that these elements will help upgrade staff positions when the recovery takes place. Firms somehow believe that they will attain success by finding alternatives that will enable them to contain costs. which will create a vacuum at that level the market rebounds. With the consolidation occurring in the insurance markets. many will flee the industry. and sales/distribution. risk (especially market risk).

Given the significant losses in personal wealth over the past few quarters. Further. As a result of immense losses and highly negative media coverage.Managing Environment in Human Resource According to an excerpt from a magazine. In the face of the buyer’s market for talent. Firms that were previously concerned with “getting bodies become more selective about Page | 73 . some recruiting challenges remain.60%. we’ve seen some large insurance services firms experience significant difficulty in recruiting and retaining high-caliber talent. and the health and viability of the insurance institution overall. candidates are becoming more focused on long-term incentives and are thinking more carefully about relocation. they are savvier now and are asking firms to substantiate their value proposition. while the level of effort expected may remain the same. What is considered normal compensation will become increasingly unclear and people will need to recalibrate benchmarks as the industry changes take place. So although there is a larger pool of candidates. They are also asking targeted questions about long term career prospects. given the challenges in the housing market. All of these developments have made many potential candidates more risk averse and less open to exploring new job opportunities. Firms and HR representatives in the door” must should manage public relations and communications very carefully. overall recruiting volume is down 40% . prospective employees are more concerned with the language of offer letters. and there are more discussions about termination clauses and severance. The compensation premiums that up to this point came with hard work and long hours will undoubtedly be reduced. Yet these highly targeted recruiting efforts are keeping staffing professionals sufficiently busy.

Some firms are already being thoughtful about competition for talent not only in their own industry segment. However. but also from peripheral businesses that are possible from poachers of talent. are signaled to top talent who are valued and marking the path for their success. and are also likely lose some top talent from poaching and walkaways. “for sure” . Firms who pay attention now can prevent the higher turnover that will happen. Retaining key talent remains an imperative. accompanied by relevant development opportunities. It’s the time to correct the mistakes and fix mandates for the right decisions and actions for the future. Firms that miss out on succession planning will scramble for replacements when key individuals with institutional knowledge retire. Managing Talent – Retention + Development The supply demand curve has finally swung back ways. clear succession plans. with the abundance of talent in the market and fewer opportunities available. questions will also be raised about future plans for replacing critical talent. and firms that know their internal talents as well as they know their clients will fair better than others. Its time. Workforce planning Page | 74 . it’s easy for firms to grow complacent about retention.when the economy recovers. Today the power is back in employers’ hands.Managing Environment in Human Resource assimilation and cultural fit from the very beginning. As regulators play a larger role within this industry. I hope the employers can see this opportunity. resulting in far more internal debate and prolonged recruiting timeframes. Each potential new-hire should be held to a greater level of scrutiny.

As morale would decline with each round of layoffs and continued worsening economic conditions. Page | 75 . produce proactive organizations.Managing Environment in Human Resource provides an additional tool for retention and human capital management. By creating a more flexible employee base. The management should now partner more thoughtfully with HR and legal systems than in the past. Hasty decisions that affect large numbers of employees are never wellreceived. • Managing Staff and Performance: Insurance services firms should re-emphasize performance management and employee relations as there is high level of sensitivity involved in these issues especially during the time of economic downturn. many firms are now focusing training on portfolio and risk monitoring for investment professionals at all levels of the organization. The ability to forecast skill-based and geographic requirements and quickly redeploy employees creates a noble organization. But at the heart of workforce planning and employee mobility lies training and development. retooling skills and filling in development needs. Given the current issues. Retention and talent management: If firms don’t pay attention now. employee relations officers need to keep employees focused without affecting their performance. they will pay the price later. Insurance firms must now develop skills of their human capital in response to the existing challenges in insurance services market. Such planning will enable to avoid massive and costly recruiting efforts when conditions improve. firms can avoid the massive firings that often come with an economic downturn.

Reshuffling at the top is a common news headline. The forces are – political-legal. It is better to avoid it. Page | 76 .Managing Environment in Human Resource The need for the top leaders to drive human capital initiative has increased. & professional bodies. but it becomes difficult if the rate of senior management turnover increases. Environment may be understood as all those forces which have their bearing on the functioning of the HR Department. it is useful to understand the utility of analyzing the environment in which HR managers have to work. Conclusion Environment is an important variable in HRM. but sometimes is inevitable. technological cultural unions’ organizational culture conflicts. Hence the firms should ensure that they always have a better pool of emerging leaders nurtured to guide the ship in troubled waters. The first four together formed the external environment & the last three factors constitute the internal environment of HR Department. Before examining these forces. economic. It is therefore desirable that we know what the environment is & how it influences HR functions in an organization.

organizational culture & conflict. Proactive steps are vital for any organization if it has to survive in such an environment. The environment of HRM comprises both external as well as internal forces which have their impact on the practitioners of the profession. technological and cultural factors. Today’s business environment in characterized by change & intense competition. In fact. Page | 77 . The external environment includes political-legal. The department also has a responsibility of obtaining internal organization information for consideration by strategic decision makers. the department may play a important role in making the decision. But the role of HR Department is confined to a boundary spanning role in that it helps link the organization to its environment through environmental scanning. The study of environment enable hr expert to become proactive in their approach to personal aspects. Reactive strategy serves the purpose when the environment is fairly stable & competition is less severe. Both of these have become things of the past. economic. An HR Department obtains environmental information & feeds it to key decision makers. The HR Department is the best position to scan the environment for HR & labour market issues. & professionalism.Managing Environment in Human Resource Analysis of the environment is useful for the HR manager & his/her team in order to become pro-active & not remain reactive to the environment. The internal environment consists of unions.

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