Chapter 03 Dyanamic Env

8/8/2019 Chapter 03 Dyanamic Env.

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HRM IN A DYNAMIC

ENVIRONMENT

EXCEL

BOOKS

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3

Chapter


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HRM In A Dynamic Environment

ANNOTATED OUTLINE

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INTRODUCTION

Organisations are open systems and are, therefore, influenced by

the environment (internal as well as external ) in which they operate.


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External and internal factors influencingthe Personnel function

External factors Internal factors

Technological factors Mission

Economic challenges Policies

Political factors Organisational culture

Social factors Organisation structure

Local and Governmental issues HR systems

Unions

Employers demands

Workforce diversity


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Technological Changes And HRM

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Technology includes tools, machinery, equipment, work procedures

and employee knowledge and skills. The impact of technology on HR

can be profound, as the following things clearly reveal:

New skills, knowledge, experience and expertise required to gainthe edge over rivals.

Downsize operations, cut organisational layers and cut the extra

fat to survive in a competitive world

Collaborate and achieve teamwork

Relocate work from the office to the home

Internet and intranet revolution


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How to deal with a human resourcesurplus situation?

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Why?

Automation

Restructuring

Mergers

Acquisitions

Competitive

Pressures

Consequences?

Cuts payroll expenses

Eliminates extra layers

Improves functioning iffirms product and

service profile is good

Shocks those left out

Shattering impact on

employee motivation andmorale if not managed

properly

Managing Survivors of

downsizing

Bitterness, anger, disbelief

and shock need to be

handled properly

Give information as to why

the action had to be taken

Tell how it is going to help

the firm and employees in

the long run.


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Role of HR in a virtual organisation

A virtual organisation is a network of companies or employees

connected by computers. Virtual workers work from home, hotels, their

cars, or wherever their work takes them. The human resource function

plays a unique role in a virtual organisation:

Psychological fit: The lack of face-to-face interaction in a virtual

organisation, virtually compels HR professionals to determine the

psychological fit between different units initially.

System alignment: Given the lack of physical proximity, it

becomes even more critical that the organisation's mission, vision

and measures be aligned and that all parties are familiar with these

issues; the HR function can play an important role in this task. Reconsider rewards: In a virtual unit, very few permanent

positions exist. In many cases, the organisation will be staffed with

workers having different motivational forces. So rewarding each

entity in an effective way becomes an important job.Cont


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Reconsider staffing needs: In a virtual organisation, most

employees work on a contractual basis. Finding people with

requisite skills, knowledge and motivation levels becomes an

important activity.

Build partnerships: Virtual, teams have to be built from scratch

paying attention to their unique requirements. The concept of

employment needs to be replaced by the concept of 'partnership'

especially when most tend to work independently away from the

permanent employees or owners of the organisation

Develop leaders: Leaders become the major forces for buildingtrust, creating a mission and instilling a sense of belonging to the

organisation. HR can play a major role in ensuring that leaders

assume these responsibilities and meet them in an effective way.

Role of HR in a virtual organisation


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Total Quality ManagementProgrammes

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TQM is a way of creating an organisational culture committed to the

continuous improvement of skills, teamwork, processes, product and

service quality and customer satisfaction.


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TQM: The main ideas

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Do it right the first time

Be customer oriented

Make continuous improvement a way of life

Build teamwork

Empower people

Create a climate of trust, an atmosphere for innovation


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Total Quality HR Approach

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The Total Quality HR Approach is all about employee participation

and empowerment, carried out in a sincere and wholehearted

manner. Rewards are designed to meet employee needs.

Employees are treated like customers. 360 degree appraisals are

carried out before picking up the best performing teams. Small

ideas and improvements are encouraged.


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Quality snaps of Indian companies

Name of Company Efforts toward TQM

1. Indo-Gulf Fertilizers Ltd Upgrading technology; training people; monitoring cost, qualityand delivery criteria; participative management, HRD; ISO 9002Certification, first fertilizer company to get this in India;Shaktiman Krishi Seva Kendras in UP, Bihar and West Bengal.

2. Bharat Heavy Electricals Ltd First to get ISO 9001 certification, in Dec 93; Strict metal parts(BHEL) quality control; 100% checking of insulators for testing their

strength; strict quality assurance tests; high quality testing labs,etc.

3. TELCO (Lucknow) SUMO model Jeeps manufactured here according highestpriority to ISO 9000 certifications; training and self-inspectiongiven top priority.

4. Philips India Ltd Implemented TQM in 1995; first step was moving toward

international quality system standards ISO 9000; total employeeinvolvement; creation of self managing mini, micro and mega-teams; got the European Quality Award; Kaizen and suggestionschemes introduced followed by rewards and recognitionsystem; regular surveys of employee motivation levelsaccompanied by customer surveys


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Benchmarking

Effective implementation of TQM requires benchmarking. The

essence of benchmarking is striving to be the best of the best in ones

area of operations. It is a continuous process of measuring products,

services and practices against the toughest competitors or industry

leaders with the aim of mutual improvement.

Reengineering

The primary focus ofTQM is on continuous improvement or ongoing

incremental change. Reengineering is all about achieving this.

Actually speaking, reengineering takes place when more than 70 per

cent of the work processes in an organisation are evaluated and

altered. The focus is on simplifying operations and making them more

efficient and customer oriented.


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Essentials of reengineering

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Give people a mission; a clear view of how to achieve that mission.

Either serve the customer superbly or dont even try.

Change is the way of life. It is not a process, it is a value.

Technology is never really a problem.

The problem is how to usetechnology effectively.

The wrong answer rarely kills you. What it does is waste time.

The weak link in reengineering is will.

Once people catch on to reengineering, you cant hold them back. Its a

lifetime opportunity.

In India TELCO, TISCO, L&T, Ranbaxy and Crompton Greaves have

successfully brought about radical changes through Reengineering.


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Flexible Manufacturing systems

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It is the integration of computer aided design, engineering and

manufacturing to produce low volume products at mass production

costs. In such a scenario, employees need to acquire skills and get

trained constantly. One should be capable of handle a variety of

tasks.


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Economic, Political And SocialChallenges And HR

Now-a-days, people, goods, capital and information are moving

around the globe as never before. Global competition is making

every firm to think in terms of gaining an edge over rivals by

producing high quality goods at a very competitive price. This is

where the people dimension comes into being. Incentives,

favourable work climate, team spirit, freedom to think and act

independently, and a host of other HR initiatives are needed to

keep talent from flying away.


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What HR managers can do ?

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Use workforce skills and abilities in order to exploit environmental opportunities andneutralise threats.

Employ innovative reward plans that recognise employee contributions and grantenhancements.

Indulge in continuous quality improvement through TQM and HR contributions

(training, development, counselling, coaching etc.).

Utilise people with distinctive capabilities to create unsurpassed competence inan area (Xerox in photocopier, 3M in adhesives, Telco in trucks, Britannia inbiscuits, Nestle in coffee, McDonalds in fast foods, etc.).

Decentralise operations and rely on self managed teams to deliver goods in difficulttimes (Motorola is famous for short product development cycles. It has quickly

commercialised ideas from its research labs). Lay off workers in a smooth way, explaining facts (IBM, Kodak, Xerox, AT&T,

Steel and Textile firms in India etc.) to unions, workers and other affected groups.HR generally plays a key role, these days, in planning and implementing corporatedownsizings, and then in maintaining the morale of the remaining employees.


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Political factors

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Political stability

Formation of new political parties

Influence of politicians over Productivity linked wage agreements

Political parties sympathetic to trade unionism

Opposition to VRS schemes, downsizing operations, restructuringexercises.

Freedom to show the door to unwanted people

Social factors

Conducting business in a socially relevant and responsible way. Hire qualified people or hire inexperienced local people and train them

to avoid trouble?

Helping economically poor people, unemployed, underprivileged ones,etc.


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Local and government-relatedfactors

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Meet legislative requirements

Offering jobs to certain sections of local community

Trade unions Demands for higher wages, better working conditions, incentives,

benefits, services


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MANAGING WORKFORCE DIVERSITY

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The workforce is becoming increasingly diverse now and organisations

are doing their best to address employee concerns and to maximise

benefits of different kind to employees with diverse educational,

cultural and religious backgrounds. The diversity issues, mainly,

include the following:

Composition

In terms of age, caste, education, culture, region, religion

Minority groups

Economically backward groups

Displaced persons

Child labour

Contract labour

Women employees


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Ways to cheer up women employees

Provide alternative career paths

Offer extended leave facilities so that they can meet their pressing

commitments according to their convenience

Allow female workers to create their own schedules and process

work at home

Create flexible work arrangements

Permit job sharing especially in case of relatively independent

tasks such as filing, faxing, word processing, photo copying etc.

In order to benefit from diversity, managers should recognise the

potential concerns of employees and make sure that the exchange

between the organisation and employees is mutually beneficial and

satisfying.


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INTERNAL ENVIRONMENT AND HR

Organisations are also influenced by a variety of internal factors

relating to strategy, culture, structure etc.

Mission and Strategy

Internal Policies

Organisational Culture

Organisation structure

Human resource systems


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Designing appropriate HR systems

Issue Focus on

Nature of employment : Job/Career

Recruitment : Internal/external/both

Selection : Merit/other considerations

Training and employee : 6 months/yearly

development actions Regular/irregular/need based

Degree of participation : Top down/bottom up

Incentives : Individual merit/group output

Job security : Lifelong employment/need-based jobs

Employee welfare : Be a model employer (offer those that

are needed by law.)

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Chapter 03 Dyanamic Env