LOVELY PROFESSIONAL

UNIVERSITY

Term Paper of Managerial Practices and

Organizational Behavior
Topic- effect of human resource management in
organization

Submitted to-: Submitted by-:

Ms. Tannu badhwar Prashant Kumar Yadav
Roll no –RS1904B56
Regis. No. - 10907634
Course- M.B.A (Regular)
 Index

Table of content
 Introduction
 HR Perspectives
 HR Management
 HR Functions
 Major challenges for HR manager
 HR is a profitable for the business
 Article on Human resource
management
 Bibliography
 Introduction
Human Resource Management (HRM) is the function within an organization that
focuses on recruitment of, management of, and providing direction for the people
who work in the organization. Human Resource Management can also be
performed by line managers. Human Resource Management is the organizational
function that deals with issues related to people such as compensation, hiring,
performance management, organization development, safety, wellness, benefits,
employee motivation, communication, administration, and training View your
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HR functions
The role of the Human Resource Manager is evolving with the change in
competitive market environment and the realization that Human Resource
Management must play a more strategic role in the success of an organization.
Organizations that do not put their emphasis on attracting and retaining talents may
find themselves in dire consequences, as their competitors may be outplaying them
in the strategic employment of their human resources. With the increase in
competition, locally or globally, organizations must become more adaptable,
resilient, agile, and customer-focused to succeed. And within this change in
environment, the HR professional has to evolve to become a strategic partner, an
employee sponsor or advocate, and a change mentor within the organization. In
order to succeed, HR must be a business driven function with a thorough
understanding of the organization’s big picture and be able to influence key
decisions and policies. In general, the focus of today’s HR Manager is on strategic
personnel retention and talents development. HR professionals will be coaches,
counselors, mentors, and succession planners to help motivate organization’s
members and their loyalty. The HR manager will also promote and fight for values,
ethics, beliefs, and spirituality within their organizations, especially in the
management of workplace diversity.

This paper will highlight on how a HR manager can meet the challenges of
workplace diversity, how to motivate employees through gain-sharing and
executive information system through proper planning, organizing, leading and
controlling their human resources.

Workplace Diversity

According to Thomas (1992), dimensions of workplace diversity include, but are

not limited to: age, ethnicity, ancestry, gender, physical abilities/qualities, race,
sexual orientation, educational background, geographic location, income, marital
status, military experience, religious beliefs, parental status, and work experience.

The Challenges of Workplace Diversity

The future success of any organizations relies on the ability to manage a diverse
body of talent that can bring innovative ideas, perspectives and views to their
work. The challenge and problems faced of workplace diversity can be turned into
a strategic organizational asset if an organization is able to capitalize on this
melting pot of diverse talents. With the mixture of talents of diverse cultural
backgrounds, genders, ages and lifestyles, an organization can respond to business
opportunities more rapidly and creatively, especially in the global arena (Cox,
1993), which must be one of the important organizational goals to be attained.
More importantly, if the organizational environment does not support diversity
broadly, one risks losing talent to competitors.

This is especially true for multinational companies (MNCs) who have operations
on a global scale and employ people of different countries, ethical and cultural
backgrounds. Thus, a HR manager needs to be mindful and may employ a ‘Think
Global, Act Local’ approach in most circumstances. The challenge of workplace
diversity is also prevalent amongst Singapore’s Small and Medium Enterprises
(SMEs). With a population of only four million people and the nation’s strive
towards high technology and knowledge-based economy; foreign talents are lured
to share their expertise in these areas. Thus, many local HR managers have to
undergo cultural-based Human Resource Management training to further their
abilities to motivate a group of professional that are highly qualified but culturally
diverse. Furthermore, the HR professional must assure the local professionals that
these foreign talents are not a threat to their career advancement (To, 1993). In
many ways, the effectiveness of workplace diversity management is dependent on
the skilful balancing act of the HR manager.

One of the main reasons for ineffective workplace diversity management is the
predisposition to pigeonhole employees, placing them in a different silo based on
their diversity profile (Thomas, 1992). In the real world, diversity cannot be easily
categorized and those organizations that respond to human complexity by
leveraging the talents of a broad workforce will be the most effective in growing
their businesses and their customer base.

The Management of Workplace Diversity

In order to effectively manage workplace diversity, Cox (1993) suggests that a HR

Manager needs to change from an ethnocentric view ("our way is the best way") to
a culturally relative perspective ("let's take the best of a variety of ways"). This
shift in philosophy has to be ingrained in the managerial framework of the HR
Manager in his/her planning, organizing, leading and controlling of organizational
resources.

As suggested by Thomas (1992) and Cox (1993), there are several best practices
that a HR manager can adopt in ensuring effective management of workplace
diversity in order to attain organizational goals. They are:

Planning a Mentoring Program-

One of the best ways to handle workplace diversity issues is through initiating a
Diversity Mentoring Program. This could entail involving different departmental
managers in a mentoring program to coach and provide feedback to employees
who are different from them. In order for the program to run successfully, it is wise
to provide practical training for these managers or seek help from consultants and
experts in this field. Usually, such a program will encourage organization’s
members to air their opinions and learn how to resolve conflicts due to their
diversity. More importantly, the purpose of a Diversity Mentoring Program seeks
to encourage members to move beyond their own cultural frame of reference to
recognize and take full advantage of the productivity potential inherent in a diverse
population.

Organizing Talents Strategically-

Many companies are now realizing the advantages of a diverse workplace. As

more and more companies are going global in their market expansions either
physically or virtually (for example, E-commerce-related companies), there is a
necessity to employ diverse talents to understand the various niches of the market.
For example, when China was opening up its markets and exporting their products
globally in the late 1980s, the Chinese companies (such as China’s electronic
giants such as Haier) were seeking the marketing expertise of Singaporeans. This is
because Singapore’s marketing talents were able to understand the local China
markets relatively well (almost 75% of Singaporeans are of Chinese descent) and
as well as being attuned to the markets in the West due to Singapore’s open
economic policies and English language abilities. (Toh, R, 1993)
With this trend in place, a HR Manager must be able to organize the pool of
diverse talents strategically for the organization. He / She must consider how a
diverse workforce can enable the company to attain new markets and other
organizational goals in order to harness the full potential of workplace diversity.

An organization that sees the existence of a diverse workforce as an organizational

asset rather than a liability would indirectly help the organization to positively take
in its stride some of the less positive aspects of workforce diversity.

Leading the Talk-

A HR Manager needs to advocate a diverse workforce by making diversity evident

at all organizational levels. Otherwise, some employees will quickly conclude that
there is no future for them in the company. As the HR Manager, it is pertinent to
show respect for diversity issues and promote clear and positive responses to them.
He / She must also show a high level of commitment and be able to resolve issues
of workplace diversity in an ethical and responsible manner.

Control and Measure Results-

A HR Manager must conduct regular organizational assessments on issues like

pay, benefits, work environment, management and promotional opportunities to
assess the progress over the long term. There is also a need to develop appropriate
measuring tools to measure the impact of diversity initiatives at the organization
through organization-wide feedback surveys and other methods. Without proper
control and evaluation, some of these diversity initiatives may just fizzle out,
without resolving any real problems that may surface due to workplace diversity.

Motivational Approaches

Workplace motivation can be defined as the influence that makes us do things to

achieve organizational goals: this is a result of our individual needs being satisfied
(or met) so that we are motivated to complete organizational tasks effectively. As
these needs vary from person to person, an organization must be able to utilize
different motivational tools to encourage their employees to put in the required
effort and increase productivity for the company.

Why do we need motivated employees? The answer is survival (Smith, 1994). In

our changing workplace and competitive market environments, motivated
employees and their contributions are the necessary currency for an organization’s
survival and success. Motivational factors in an organizational context include
working environment, job characteristics, appropriate organizational reward
system and so on.

The development of an appropriate organizational reward system is probably one

of the strongest motivational factors. This can influence both job satisfaction and
employee motivation. The reward system affects job satisfaction by making the
employee more comfortable and contented as a result of the rewards received. The
reward system influences motivation primarily through the perceived value of the
rewards and their contingency on performance (Hickins, 1998).

To be effective, an organizational reward system should be based on sound

understanding of the motivation of people at work. In this paper, I will be touching
on the one of the more popular methods of reward systems, gain-sharing.

Gain-sharing programs generally refer to incentive plans that involve employees in

a common effort to improve organizational performance, and are based on the
concept that the resulting incremental economic gains are shared among employees
and the company.

In most cases, workers voluntarily participate in management to accept

responsibility for major reforms. This type of pay is based on factors directly under
a worker’s control (i.e., productivity or costs). Gains are measured and
distributions are made frequently through a predetermined formula. Because this
pay is only implemented when gains are achieved, gain-sharing plans do not
adversely affect company costs (Paulsen, 1991).
Managing Gain-sharing

In order for a gain-sharing program that meets the minimum requirements for
success to be in place, Paulsen (1991) and Boyett (1988) have suggested a few
pointers in the effective management of a gain-sharing program. They are as
follows:

 A HR manager must ensure that the people who will be participating in the
plan are influencing the performance measured by the gain-sharing formula
in a significant way by changes in their day-to-day behavior. The main idea
of the gain sharing is to motivate members to increase productivity through
their behavioral changes and working attitudes. If the increase in the
performance measurement was due to external factors, then it would have
defeated the purpose of having a gain-sharing program.

 An effective manager must ensure that the gain-sharing targets are

challenging but legitimate and attainable. In addition, the targets should be
specific and challenging but reasonable and justifiable given the historical
performance, the business strategy and the competitive environment. If the
gain-sharing participants perceive the target as an impossibility and are not
motivated at all, the whole program will be a disaster.

 A manager must provide useful feedback as a guidance to the gain-sharing

participants concerning how they need to change their behavior(s) to realize
gain-sharing payouts The feedback should be frequent, objective and clearly
based on the members’ performance in relation to the gain-sharing target.

 A manager must have an effective mechanism in place to allow gain-sharing

participants to initiate changes in work procedures and methods and/or
requesting new or additional resources such as new technology to improve
performance and realize gains. Though a manager must have a tight control
of company’s resources, reasonable and justifiable requests for additional
resources and/or changes in work methods from gain-sharing participants
should be considered.
Executive Information Systems

Executive Information System (EIS) is the most common term used for the unified
collections of computer hardware and software that track the essential data of a
business' daily performance and present it to managers as an aid to their planning
and decision-making (Choo, 1991). With an EIS in place, a company can track
inventory, sales, and receivables, compare today's data with historical patterns. In
addition, an EIS will aid in spotting significant variations from "normal" trends
almost as soon as it develops, giving the company the maximum amount of time to
make decisions and implement required changes to put your business back on the
right track. This would enable EIS to be a useful tool in an organization’s strategic
planning, as well as day-to-day management .

Managing EIS

As information is the basis of decision-making in an organization, there lies a great

need for effective managerial control. A good control system would ensure the
communication of the right information at the right time and relayed to the right
people to take prompt actions.

When managing an Executive Information System, a HR manager must first find

out exactly what information decision-makers would like to have available in the
field of human resource management, and then to include it in the EIS. This is
because having people simply use an EIS that lacks critical information is of no
value-add to the organization. In addition, the manager must ensure that the use of
information technology has to be brought into alignment with strategic business
goals

Conclusion

The role of the HR manager must parallel the needs of the changing organization.
Successful organizations are becoming more adaptable, resilient, quick to change
directions, and customer-centered. Within this environment, the HR professional
must learn how to manage effectively through planning, organizing, leading and
controlling the human resource and be knowledgeable of emerging trends in
training and employee developmentSome industry commentators call the Human
Resources function the last bastion of bureaucracy. Traditionally, the role of the
Human Resource professional in many organizations has been to serve as the
systematizing, policing arm of executive management.

In this role, the HR professional served executive agendas well, but was frequently
viewed as a road block by much of the rest of the organization. While some need
for this role occasionally remains — you wouldn’t want every manager putting his
own spin on a sexual harassment policy, as an example — much of the HR role is
transforming itself.

The role of the HR manager must parallel the needs of his or her changing
organization. Successful organizations are becoming more adaptive, resilient,
quick to change direction and customer-centered. Within this environment, the HR
professional, who is considered necessary by line managers, is a strategic partner,
an employee sponsor or advocate and a change mentor.

Major challenges for HR

We are moving away from the industrial age to the information age Work
performed in factories is being replaced by work in offices or at computer terminal
instead of working with thing people increasingly work with ideas and concepts
information and knowledge have replaced manufacturing as the sourse of most
new jobs. we are moving from restricted markets to global marketour old local
regional vision is giving way to new global economic oradar and business the
new demand is think globally and act locllay. Burearuracracy is given a go by The
rigid organization hierarchy with its monolithic chain of command is giving Way
to integrated team network based on autonomy and flexibility.

Strategic Partner

In today’s organizations, to guarantee their viability and ability to contribute, HR

managers need to think of themselves as strategic partners. In this role, the HR
person contributes to the development of and the accomplishment of the
organization-wide business plan and objectives.
The HR business objectives are established to support the attainment of the overall
strategic business plan and objectives. The tactical HR representative is deeply
knowledgeable about the design of work systems in which people succeed and
contribute. This strategic partnership impacts HR services such as the design of
work positions; hiring; reward, recognition and strategic pay; performance
development and appraisal systems; career and succession planning; and employee
development.

Employee Advocate

As an employee sponsor or advocate, the HR manager plays an integral role in

organizational success via his knowledge about and advocacy of people. This
advocacy includes expertise in how to create a work environment in which people
will choose to be motivated, contributing, and happy.

Fostering effective methods of goal setting, communication and empowerment

through responsibility, builds employee ownership of the organization. The HR pr
HR IS THE PROFITABELE FOR THE BUSINESS ofessional helps establish the
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  Performance & Development

 Safety & Health

 Succession Planning

 Time-off Management

 Organization Management

Transforms HR data into strategic information.

As the more skilled engineering and other professionals in the oil and gas industry
approach retirement, the call is going out to develop strategies to keep them
engaged in flexible work arrangements and to re-recruit individuals who left the
industry in previous years. The plan is to invite them back as an expert resource to
assist in the recruitment, training, and mentoring of young professionals, upon
whose recruitment and retention the successful future of the industry depends.

If there is one thing the industry agrees upon it is the need to extensively recruit
both graduate and experienced hires. In addition, companies are also implementing
training and development programs that will fast track new recruits into fully
operational employees.

The transfer of knowledge and skills from the experienced generation to new
college graduates requires organizational commitment, strong development and
coaching programs, and sophisticated training capabilities. However, theory is one
thing and practices another. In a recent study highlighting industry resource
constraints, Booz Allen Hamilton notes that, "With little slack in the system, senior
employees are driven to deliver through to retirement, with ever less time to
transfer their knowledge. As overstretched companies are forced to do more with
less, on-the-job training, mentoring, and coaching have virtually become a thing of
the past. Managers explained the challenge of giving staff development the
appropriate time and attention when ‘permanently in operational crisis mode.
"This is hardly the kind of environment conducive to empowering Generation Y
and fast tracking their development to operational autonomy.

Our objective is to broaden the pool of resources by targeting individuals who left
the industry and might not have considered opportunities for returning.Cathy Clots,
whose online portal AlumniInTouch.com hosts a number of oil and gas industry
alumni communities, sees an opportunity for retired and former industry
professionals to play a continuing role in the oil and gas industry. "In our
communities, we have several hundred individuals who have indicated their
interest in training new recruits, coaching and mentoring, doing technical work,
and sharing knowledge," she said. "There exists a ready and easily contactable pool
of seasoned industry professionals who are willing to support the hiring and
retaining of young talent and support their entry into the industry." Members of the
service indicate their availability for short-term and permanent opportunities in
consulting and project work, training, mentoring, and interim management. "Our
objective is to broaden the pool of resources by targeting individuals who left the
industry and might not have considered opportunities for returning. This includes
individuals who took a career break for family reasons, individuals who left the
industry in downturns or following acquisitions, and those who took early
retirement. Many individuals are financially secure, but as they are in their early
50s, they find they want the intellectual stimulation offered by returning to the
industry," Clonts said.

Those with critical knowledge and skills are a precious resource deserving of
investment and consideration post-departure. Evidence suggests that critical
industry knowledge stays current even up to 10 years after leaving the industry,
which leaves one giant pool of talent from which to draw.

Joe Ross, a former project manager, said he used personal contacts to fill key
short-term roles while resourcing projects but found this a cumbersome process.
He believes companies increasingly use portals that list company alumni. "This
additional powerful recruitment channel for good staff will enable earlier or more
certain project completions, and of better quality," he said.

Long-time SPE member Shaun Hoolahan exemplifies the newly defined retiree.
"Before making the decision to retire myself, I conducted a survey of former
associates to determine how leaving the industry had affected their lives. Based on
their responses, retirement is like a three-legged stool comprised of being
financially ready, physically ready, and psychologically ready. Without all three
legs, the stool will topple," he said. "For many people, it appeared the third leg was
missing, and as a result, they have since re-entered the workforce as either full- or
part-time employees or consultants. Rather than waiting for the stool to topple, I
decided to form my own consultancy business straight away." As a consultant,
Hoolahan travels from home about a third of the year teaching subsurface
engineering to new recruits. "Apart from my wife having to be a single parent
when I am traveling, the flexibility of being a consultant provides the perfect
work/life balance for me," he said. "I thoroughly enjoy sharing my experience and
imparting my knowledge to the next generation."

A Different Approach

To support the training and development of new hires, companies have instituted
several programs for graduate and experienced hires. But whether it is the sheer
numbers or the differing psyches of the generations, it appears these programs are
not all hitting the spot. Attrition rates for young hires are more than double that of
experienced hires, as high as 20–30%. Clearly, something more is needed.

Tina Berger, President of Obsidian Technical Communications, a petrochemical

consulting company, believes members of Generation Y are very different from the
exiting baby boomers. She believes new technology can play a bigger part in
training younger professionals, who accept instant messaging and audio and video
content as an integral part of life. Most will have experienced online learning in
some form while at college, and the path is open for company Web-based training
that blends audio, video, and animation in an interactive and appealing format. It is
important for companies to realize that these differing training methods are no
longer considered inferior. Sometimes, a short animation of a drilling-tool function
can be a quicker and more efficient way to share information than a lecturer with a
stick of chalk and a board.

While mentors and their recipients were traditionally at the same site, online
technology has the potential to transform these relationships. With webcams,
Skype, laptops, and palm pilots, communication has never been easier, and
distance is not a barrier to relationship development. Technology advancement
enables shorter periods away from the job and tailored training programs. It also
affords regular contact with a mentor who may live in a different time zone. The
mentor provides a clear path to industry knowledge and skills development as well
as the one-on-one relationship craved by young professionals.
All these elements are critical in bringing down the unacceptably high attrition
rates that are currently undermining the industry’s best recruitment efforts.

The Importance of Mentoring

In the struggle to hire and retain staff, the concept of mentoring itself is being
considered more broadly, co-location aside. A mentoring relationship can be a
single, long-term relationship; peer to peer across different disciplines; or it may be
a series of short-term relationships. Even "speed" mentoring can be useful.

A mentoring relationship can be a single, long-term relationship; peer to peer

across different disciplines; or it may be a series of short-term relationships.

"Upon joining BP, I was formally assigned a mentor and this was very helpful,"
said SPE member Meriem Mokrani. "I found the role of a mentor in my
development so useful that I have since asked a number of people to be my
mentors as I determined areas where their support, experiences, and network would
support my professional growth.

"I define the criteria of a good mentor as inspirational, available, open-minded, and
well-networked. Also, a good mentor is someone I feel comfortable talking to
confidentially," Mokrani said. "I have always had very positive responses from
individuals whom I have asked to be my mentors. These roles do not have to be
long term, and I encourage others to take the initiative to approach someone whom
they identify as able to positively impact their learning and performance and ask
them to serve as a mentor.

"Conversely, I mentored a summer intern, and when he joined BP full-time, he

asked me to be his mentor and we have continued our relationship. I also
informally mentor several young professionals. Being a mentor allows me to grow,
as it makes me reflect on how to deal with diverse issues and challenges and adopt
different perspectives to give good career advice."

But what of intergenerational conflict? The old not understanding the young is as
much a part of human experience as breathing. If retirees and employees who are
near retirement are to play a greater role in mentoring, knowledge exchange, and
training of the incoming workforce, then respect for the experienced generation
and understanding the needs and drivers of the younger people entering the
industry are essential to the process.

Looking at another industry, perhaps the oil and gas industry can learn another
tactic. Procter and Gamble was among the first to institute "reverse mentoring," in
which senior managers sought mentors from within the junior ranks of the
organization. The idea being that those in their 40s, 50s, and beyond are no longer
in touch with the future in the same way that the 20-somethings are. The younger
generation has a much stronger link to the technology of the future together with
fresh eyes and open minds. Engaging in reverse mentoring offers an opportunity to
gain technical expertise and a different perspective. Reverse mentoring for career
industry professionals by newer recruits, on a peer-to-peer basis, might extend their
desire to remain in the workforce. It would certainly help to foster respect and
understanding on both sides of the generation gap.

Innovative recruiting, flexible work opportunities, and mentoring programs clearly

have roles to play in meeting future business needs. Creative use of these
opportunities may well provide the edge to effectively prepare incoming
engineering and oil and gas recruits for the realities of the industry, meet their
training needs, cut attrition rates, and contribute to greater workplace equity
through intergenerational understanding.

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Organizational culture and climate in which people have the competency concern
and commitment to serve customers well.

In this role, the HR manager provides employee development opportunities,

employee assistance programs, gain sharing and profit-sharing strategies,
organization development interventions, due process approaches to problem

Article on human resource management