Conl Shoaib Assignment

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  • 8/6/2019 Conl Shoaib Assignment



    The systematic and growing internationalization of many companies is essentially a part of their

    business policy or strategic management. The stimulus for Internationalization comes from the urge togrow, the need to become more competitive, the need to diversify and to gain strategic advantages of

    internationalization. Many companies in India, like several pharmaceutical firms, have realized that a

    major part of their future growth will be in the foreign markets.


    The term "globalization" has acquired considerable emotive force. Some view it as a process that is

    beneficial a key to future world economic development and also inevitable and irreversible. Others

    regard it with hostility, even fear, believing that it increases inequality within and between nations,

    threatens employment and living standards and thwarts social progress. This brief offers an overview of

    some aspects of globalization and aims to identify ways in which countries can tap the gains of this

    process, while remaining realistic about its potential and its risks.

    Globalization offers extensive opportunities for truly worldwide development but it is not progressing

    evenly. Some countries are becoming integrated into the global economy more quickly than others.Countries that have been able to integrate are seeing faster growth and reduced poverty.

    Outward-oriented policies brought dynamism and greater prosperity to much of East Asia,

    transforming it from one of the poorest areas of the world 40 years ago. And as living standards rose, it

    became possible to make progress on democracy and economic issues such as the environment and

    work standards.

    By contrast, in the 1970s and 1980s when many countries in Latin America and Africa pursued inward-

    oriented policies, their economies stagnated or declined, poverty increased and high inflation became

    the norm. In many cases, especially Africa, adverse external developments made the problems worse.

    As these regions changed their policies, their incomes have begun to rise. An important transformation

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    is underway. Encouraging this trend, not reversing it, is the best course for promoting growth,

    development and poverty reduction.

    The crises in the emerging markets in the 1990s have made it quite evident that the opportunities of

    globalization do not come without risks risks arising from volatile capital movements and the risks of

    social, economic, and environmental degradation created by poverty. This is not a reason to reverse

    direction, but for all concerned in developing countries, in the advanced countries, and of course

    investors to embrace policy changes to build strong economies and a stronger world financial system

    that will produce more rapid growth and ensure that poverty is reduced.

    How can the developing countries, especially the poorest, be helped to catch up? Does globalization

    exacerbate inequality or can it help to reduce poverty? And are countries that integrate with the global

    economy inevitably vulnerable to instability? These are some of the questions covered in the following


    Wha t is Glob a liza tion?

    Economic "globalization" is a historical process, the result of human innovation and technological

    progress. It refers to the increasing integration of economies around the world, particularly through

    trade and financial flows. The term sometimes also refers to the movement of people (labor) and

    knowledge (technology) across international borders. There are also broader cultural, political and

    environmental dimensions of globalization that are not covered here.

    At its most basic, there is nothing mysterious about globalization. The term has come into common

    usage since the 1980s, reflecting technological advances that have made it easier and quicker to

    complete international transactions both trade and financial flows. It refers to an extension beyond

    national borders of the same market forces that have operated for centuries at all levels of human

    economic activity village markets, urban industries, or financial centers.

    Markets promote efficiency through competition and the division of labor the specialization that

    allows people and economies to focus on what they do best. Global markets offer greater opportunity

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    for people to tap into more and larger markets around the world. It means that they can have access to

    more capital flows, technology, cheaper imports, and larger export markets. But markets do not

    necessarily ensure that the benefits of increased efficiency are shared by all. Countries must be

    prepared to embrace the policies needed, and in the case of the poorest countries may need the

    support of the international community as they do so.

    Movement of people: Workers move from one country to another partly

    To find better employment opportunities. The numbers involved are still quite small, but in the period

    1965-90, the proportion of labor forces round the world that was foreign born increased by about one-

    half. Most migration occurs between developing countries. But the flow of migrants to advanced

    economies is likely to provide a means through which global wages converge. There is also the

    potential for skills to be transferred back to the developing countries and for wages in those countries

    to rise.

    Spread of knowledge (and technology): Information exchange is an

    Integral, often overlooked, aspect of globalization. For instance, direct foreign investment brings not

    only an expansion of the physical capital stock, but also technical innovation. More generally,

    knowledge about production methods, management techniques, export markets and economic policies

    is available at very low cost, and it represents a highly valuable resource for the developing countries.

    St ages of Glob a liza tion

    Normally, a firm passes through different stages of development before it becomes a truly global

    corporation. Typically, a domestic firm starts its international business by exporting. Later it may

    establish joint ventures or subsidiaries abroad. From an international firm it may then develop into a

    multinational firm and finally into a global one.

    Ohmae identifies five different stages in the development of a firm into a global corporation. The first

    stage is the arm's length service activity of essentially domestic company which moves into new

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    markets overseas by linking up with local dealers and distributors. In stage two, the company takes

    over these activities on its own. In the third stage, the domestic based company begins to carry out its

    own manufacturing, marketing and sales in the key foreign markets. In stage four, the company moves

    to a full insider position in these markets, supported by a complete business system including R&D and

    engineering. This stage calls on the managers to replicate in new environment .the hardware, systems

    and operational approaches that have worked so well at home. It forces them to extend the reach of

    domestic headquarters, which now s to provide support functions such as personnel and finance, to all

    overseas activities. Although stage four, the headquarters mentality continues to dominate. Different

    local operations are linked, their relation to each other established by their relation to the centre.

    In the fifth stage, the company moves toward a genuinely global mode of operation. In this context,

    Ohmae points out that a company's ability to serve local customers in markets around the globe in

    ways that are truly responsive to their needs as well as to the global character of its industry depends

    on its ability to strike a new organizational balance. What is called for is what Akio Morita of Sony has

    termed global localization, a new orientation that simultaneously looks

    Both directions. Getting to stage five, however, means venturing onto new ground together. Ohmae

    argues that to make this organizational transition, a company must denationalize their operations and

    create a system of values shared by corporate managers around the globe to replace the glue a nation

    based orientation once provided.

    Ohmae further observes that today's global corporations are nationality- less because consumers have

    become less nationalistic. True global corporations serve the interests of customers, not Governments.

    They do not exploit local situations and then repatriate all the profits back home, leaving each local

    area poorer for their having been there. They invest, they train, they pay taxes, they build up

    infrastructure and they provide good value to customers in all the countries here they do business. IBM

    Japan, for instance, has provided employment to bout 20,000 Japanese and over the past decade has

    provided three times more tax revenue to the Japanese Government than has the Japanese company


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    1. Imp a ct of Glob a liza tion on HR Implic a tionin P ak ist a n:

    Globalization represents the structural making of the world characterized by the free flow of technology andhuman resources across national boundaries as well as the spread of Information Technology and mass mediapresenting an ever-changing and competitive business environment. According to Wikipedia the termglobalization is defined as:

    The process by which regional economies, societies, and cultures have become integrated through a globalnetwork of political ideas through communication, transportation, and trade .

    Organizations are increasingly becoming global in their operations. Technology has made it increasingly easy totranscend geographical barriers to collaborating with overseas professionals and organizations. Global HRsystem enables corporations to tackle new markets efficiently especially through mergers and acquisitions or

    foreign direct investments. Global HR includes leveraging tacit and explicit knowledge across businesses, thuscreating a learning environment, conducive to continuous professional development and business growth forthe organization.


    Human resource management has changed in name various times throughout history. The name change wasmainly due to the change in social and economic activities throughout history.

    Industrial Welfare

    Industrial welfare was the first form of human resource management (HRM). In 1833 the factories act statedthat there should be male factory inspectors. In 1878 legislation was passed to regulate the hours of work forchildren and women by having a 60 hour week. During this time trade unions started to be formed. In 1868 the1st trade union conference was held. This was the start of collective bargaining. In 1913 the number of industrial welfare workers had grown so a conference organized by Sebum Rowntree was held. The welfareworkers association was formed later changed to Chartered Institute of Personnel and Development.

    Recruitment and Selection

    It all started when Mary Wood was asked to start engaging girls during the 1st world war. In the 1st world war

    personnel development increased due to government initiatives to encourage the best use of people. In 1916 itbecame compulsory to have a welfare worker in explosive factories and was encouraged in munitions factories.A lot of work was done in this field by the army forces. The armed forces focused on how to test abilities and IQ along with other research in human factors at work. In 1921 the national institute of psychologists establishedand published results of studies on selection tests, interviewing techniques and training methods.

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    Acquisition of other Personnel Activities

    During the 2nd world war the focus was on recruitment and selection and later on training; improving moraleand motivation; discipline; health and safety; joint consultation and wage policies. This meant that a personneldepartment had to be established with trained staff.

    Industrial Relations

    Consultation between management and the workforce spread during the war. This meant that personneldepartments became responsible for its organization and administration. Health and safety and the need forspecialists became the focus. The need for specialists to deal with industrial relations was recognized so thatthe personnel manager became as spokesman for the organization when discussions where held with tradeunions/shop stewards. In the 1970's industrial relations was very important. The heated climate during thisperiod reinforced the importance of a specialist role in industrial relations negotiation. The personnel managerhad the authority to negotiate deals about pay and other collective issues.


    In the 1970's employment legislation increased and the personnel function took the role of the specialistadvisor ensuring that managers do not violate the law and that cases did not end up in industrial tribunals.

    Flexibility and Diversity

    In the 1990's a major trend emerged where employers were seeking increasing flexible arrangements in thehours worked by employees due to an increase in number of part-time and temporary contracts and theinvention of distance working. The workforce and patterns of work are becoming diverse in which traditional

    recruitment practices are useless. In the year 2000, growth in the use of internet meant a move to a 24/7society. This created new jobs in e-commerce while jobs were lost in traditional areas like shops. This meant anincreased potential for employees to work from home. Organizations need to think strategically about theissues these developments raise. HRM manager s role will change as changes occur.

    Information Technology

    Some systems where IT helps HRM are: Systems for e-recruitment; On-line short-listing of applicants;developing training strategies on-line; Psychometric training; Payroll systems; Employment data; Recruitmentadministration; References; Pre-employment checks. IT helps HR managers offload routine tasks which will givethem more time in solving complex tasks. IT also ensures that a greater amount of information is available to

    make decisions.


    Table 1 identifies some of the major milestones in the historical development of HRM. Frederick Taylor, knownas the father of scientific management, played a significant role in the development of the personnel functionin the early 1900s. In his book, Shop Management, Taylor advocated the "scientific" selection and training of workers. He also pioneered incentive systems that rewarded workers for meeting and/or exceeding

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    performance standards. Although Taylor's focus primarily was on optimizing efficiency in manufacturingenvironments, his principles laid the ground-work for future HRM development. As Taylor was developing hisideas about scientific management, other pioneers were working on applying the principles of psychology tothe recruitment, selection, and training of workers. The development of the field of industrial psychology andits application to the workplace came to fruition during World War I, as early vocational and employment-related testing was used to assign military recruits to appropriate functions.

    The Hawthorne Studies, which were conducted in the 1920s and 1930s at Western Electric, sparked anincreased emphasis on the social and informal aspects of the workplace. Interpretations of the studiesemphasized "human relations" and the link between worker satisfaction and productivity. The passage of theWagner Act in 1935 contributed to a major increase in the number of unionized workers. In the 1940s and1950s, collective bargaining led to a tremendous increase in benefits offered to workers. The personnelfunction evolved to cope with labor relations, collective bargaining, and a more complex compensation andbenefits environment. The human relations philosophy and labor relations were the dominant concerns of HRM in the 1940s and 1950s.

    HRM was revolutionized in the 1960s by passage of Title VII of the Civil Rights Act and other anti-discriminationlegislation as well as presidential executive orders that required many organizations to undertake affirmativeaction in order to remedy past discriminatory practices. Equal employment opportunity and affirmative actionmandates greatly complicated the HRM function, but also enhanced its importance in modern organizations. Asdiscussed more fully in a later section, these responsibilities continue to comprise a major part of the HRM job.Finally, changes in labor force demographics, technology, and globalization since the 1980s have had a majorimpact on the HRM function. These factors also are discussed in more detail in a later section.

    Table 1: Milestones in the Development of Human Resource Management


    Frederick Taylor develops his ideas on scientific management. Taylor advocates scientific selection of workers based on qualifications and also argues for incentive-based compensation systems to

    motivate employees.


    Many companies establish departments devoted to maintaining the welfare of workers. Thediscipline of industrial psychology begins to develop. Industrial psychology, along with the advent of World War I, leads to advancements in employment testing and selection.


    The interpretation of the Hawthorne Studies' begins to have an impact on management thought andpractice. Greater emphasis is placed on the social and informal aspects of the workplace affectingworker productivity. Increasing the job satisfaction of workers is cited as a means to increase theirproductivity.

    1945- In the U.S., a tremendous surge in union membership between 1935 and 1950 leads to a greater

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    1965 emphasis on collective bargaining and labor relations within personnel management. Compensationand benefits administration also increase in importance as unions negotiate paid vacations, paidholidays, and insurance coverage.


    The Civil Rights movement in the U.S. reaches its apex with passage of the Civil Rights Act of 1964.The personnel function is dramatically affected by Title VII of the CRA, which prohibits discriminationon the basis of race, color, sex, religion, and national origin. In the years following the passage of theCRA, equal employment opportunity and affirmative action become key human resourcemanagement responsibilities.


    Three trends dramatically impact HRM. The first is the increasing diversity of the labor force, in termsof age, gender, race, and ethnicity. HRM concerns evolve from EEO and affirmative action to"managing diversity." A second trend is the globalization of business and the accompanyingtechnological revolution. These factors have led to dramatic changes in transportation,communication, and labor markets. The third trend, which is related to the first two, is the focus onHRM as a "strategic" function. HRM concerns and concepts must be integrated into the overallstrategic planning of the firm in order to cope with rapid change, intense competition, and pressurefor increased efficiency.

    Glob a liza tion Implic a tions on HRM in P ak ist a n

    Unfortunately, there are not many organizations in Pakistan that use this resourceOptimally. Most of them abuse, misallocate and misdirect this resource to an incredible degree. Allorganizations, whether national, multinational or international, have to deal with this resource, which is limitedin the environments they operate. Organizations strive to use these limited or scarce resources efficiently andeffectively in order to achieve their goals and objectives. The most important elements for today'sorganizational success are work-force skills, product quality and customer service. All three elements areheavily dependent upon human resources as education, training and motivation embodied in people.In present day s dynamic business world, change is the only factor, which will remain constant - changes intechnology, consumer demand, demographic composition of workforce and global competition will haveimpact on the role of human resource professionals. With time, organizations are becoming increasingly awareof HR contribution to the progress and growth of their businesses. In this millennium, slowly but surely allcountries are becoming safer and more attractiveFor investments. More and more socialist and centrally planned closed economies are opening up for trade andinvestment opportunities. Countries are opting for free-market economies, private ownership is beingencouraged, the importance of the consumers is being realized and generally they are also becoming moredemocratic. At the same time, new institutions are emerging to reduce non-commercial risk of multinationalventures. These developments in the world market have significant impact on the future of HR practitioners interms of research and professional practice. Human resource in any country is the primary factor for setting up

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    the direction and pace of the socio-economic development. For achieving a substantial part of our industrialvision, there is a need to create and nurture a well-developed human capital base, with skills and work ethics of highest quality. Any nation's capacity to face the challenges of industrialization and globalization of business of the 21st century depends heavily on its human resources. Out of capital, technology and human resources, it isthe human resources that will help organizations to face the challenges of business globalization. Capital can begenerated, technology can be developed, but appropriately encouraged and motivated human resource isrequired to propel the organization and the nation through the coming challenges.

    Pakistan is blessed with high quality of human resources, which is also industrious and productive, but muchless demanding than their counterparts in the developed world. Pakistani nation is hard working and hasalways stood up to expectations. Our people are energetic and workers are dedicated. In fact, HR is the mostimportant contributor to the economic success of Pakistan over the past decades.

    We discuss Telenor s strategies which make it culturally compatible to the human resource of differentcountries where so ever it has set up its operations. Following are these strategies:


    Telenor claims FREEDOM OF EXPRESSION

    The hiring criterion in Telenor is same throughout the globe. However due to changes in theskills, knowledge and abilities of people in different countries , Telenor has varying staff hiringpriorities eg here in Pakistan university education is quite common and cheaper as comparedto western countries. Pakistan has a pool of graduates and post-graduates, so obviously moreeducated and skilled person is hired whereas in western set ups Telenor has mostly graduatesin job positions.

    Telenor hires young and talented people more as compared to experienced elderly in Asiancountries. It is due to the fact that the creativity and freshness required by service sector likeTelenor is found in only young talents in Asia. The middle aged people in Asian countries areless enthusiastic and fresh. However people in western countries remain enthusiastic and freshfor a relatively longer period of time. 80% of Telenor s staff is young blood.


    There is a lot of respect given to all employees. Here the manager shakes hand with themop. All the employees self-serve themselves. They are not allowed to make the service menwork in their service

    There are no cabins in any Telenor centre. There is a central lobby where the front desk mento the Regional Officer (RO) all sit together.

    As a cultural symbol Pakistani Telenor offices have placed a big bell with a string on the maindoor of offices. It is for the purpose that anyone who feels himself satisfied with Telenor canring the bell. It is in coincidence with the practice of Late Mughal King Jahangir who used tolisten to the petitions of his sub ordinates whoever has any complaint.

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    Training system is much vibrant in European Telenor set-ups. But owing to the lesserrevenues generated in Asian markets, Telenor is not carrying out best training here. Training isalways ignored in Pakistan by all. However Telenor keeps on conducting one day training for itsemployees throughout their work life.


    Telenor is carrying out equal and uniform strategies everywhere. Its job duties and theirrequirements are same. It offers flexible work hours to all employees in its customer s servicecall centers. There is no discrimination on gender base in Telenor.

    The reward system is same everywhere. Everyone is rewarded on good performance inmonetary units as well as recognition and applaud.

    All employees working in Telenor along with their family members are medically insured.They can get up to 10 lakhs on medical treatment. Owing to the more health problems amongaged in Asian countries, Telenor prefers to retain young and healthy employees. In westerncountries mostly young people are medically tested for maladies.

    There are no pension plans in Telenor. There are provident funds provided in Telenor.


    Telenor do value the culture of its transnational bases eg in Pakistan Telenor has the policyto send its 2 employees on Hajj every year

    Telenor arranges aftar for its staff in Ramzan.

    In the last annual meeting of Telenor, They have decided sherwani as the dress code inPakistan.

    Even in inter-province culture differences, the example of Quetta is interesting whereemployees aren t asked to wear suits. They wear shalwar kameez


    Referring to the Denmark issue created in Pakistan against Telenor, its HR had no impact due

    to this controversy. Not a single employee felt against Telenor. It was a great achievement of Telenor that it got in the shape of loyalty and concern of its HR towards Telenor.

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    Strategic Human Resource Management (SHRM) involve a set of internally consistent policies and practicesdesigned and implemented to ensure that a firm's human capital (employees) contribute to the achievement of its business objectives (Baird & Meshoulam, 1988; Delery & Doty, 1996; Huselid, et al., 1997; Jackson & Schuler,1995). Schuler (1992: 18) has developed a more comprehensive academic definition of SHRM:

    Strategic human resources management is largely about integration and adaptation. Its concern isto ensure that: (1) human resources (HR) management is fully integrated with the strategy and thestrategic needs of the firm; (2) HR policies cohere both across policy areas and across hierarchies;and (3) HR practices are adjusted, accepted, and used by line managers and employees as part of their everyday work.

    For Wright & McMahan (1992), SHRM refers to the pattern of planned human resource deployments andactivities intended to enable an organization to achieve its goals (p. 298). To sum up, it appears that some of the frequently cited fundamental elements of SHRM in the literature are: SHRM practices are macro-oriented,proactive and long term focused in nature; views human resources as assets or investments not expenses;implementation of SHRM practices bears linkage to organizational performance; and focusing on the alignmentof human resources with firm strategy as a means of gaining competitive advantage (Nee & Khatri, 1999:311).

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    Implic a tions of SHRM for HRM Pr a ctices

    The idea that individual HR practices impacts on performance in an additive fashion (Delery & Doty, 1996) isinconsistent with the emphasis on internal fit in the resource-based view of the firm. With its implicit systemsperspective, the resource-based view suggests the importance of complementary resources , the notion thatindividual policies or practices have limited ability to generate competitive advantage (Barney, 1995:56). Thisidea, that a system of HR practices may be more than the sum of the parts, appears to be consistent withdiscussions of synergy, configurations, contingency factors, external and internal fit, holistic approach, etc(Delery & Doty, 1996; Huselid, 1995). Drawing on the theoretical works of Osterman (1987), Sonnenfeld &Peiperl (1988), Kerr and Slocum (1987) and Miles & Snow (1984), Delery & Doty (1996) identified sevenpractices that are consistently considered strategic HR practices. These are (1) internal career opportunity (2)formal training systems (3) appraisal measures (4) profit sharing (5) employment security (6) voice mechanismsand (7) job definition. There are other SHRM practices that might affect organizational performance. Forexample, Schuler & Jackson (1987) presented a very comprehensive list of HR practices. However, the seven

    practices listed by Delery and Doty above appear to have the greatest support across a diverse literature. Forexample, nearly all of these are also among Pfeffer's (1994) 16 most effective practices for managing people.

    An obvious question at this juncture is: How can organizations effectively adopt, implement and maximize HRMpractices for valued firm level outcomes? That is, how can firms increase the probability that they will adoptand then effectively implement appropriate HRM practices? Insuring that members of the HRM personnel havethe appropriate human capital or competencies has been suggested as one way to increase the likelihood of effective implementation of HRM practices (Huselid, et al., 1997).

    Ulrich & Yeung (1989) argue that the future HR professional will need four basic competencies to becomepartners in the strategic management process. These include business competence, professional and technicalknowledge, integration competence and ability to manage change.

    On the other hand, the United Kingdom-based Management Charter Initiative (MCI), an independentcompetence-based management development organization, identifies seven key roles and requiredcompetencies. These include competencies required to manage roles like managing activities, managing

    resources, managing people, managing information, managing energy, managing quality and managing projects(MCI Management Standards, April, 1997). Finally, Huselid, et al (1997) identified two sets of HR personnelcompetencies as important for HR personnel: (1) HR professional competencies and (2) Business-relatedcompetencies.

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    HR p r ofessional c ompeten c e describes the state-of-the-art HR knowledge, expertise and skill relevant forperforming excellently within a traditional HR functional department such as recruitment and selection,training, compensation, etc. This competence insures that technical HR knowledge is both present and usedwithin a firm (Huselid, et al., 1997). Business- r elated c ompeten c e refers to the amount of business experienceHR personnel have had outside the functional HR specialty. These capabilities should facilitate the selection and

    implementation of HRM policies and practices that fit the unique characteristics of a firm including its size,strategy, structure, and culture (Jackson & Schuler, 1995). In other words, these competencies will enable theHR staff to know the company's business and understand its economic and financial capabilities necessary formaking logical decisions that support the company's strategic plan based on the most accurate informationpossible.

    Stra t eg ic HRM a nd Or ga niza tion a l Perform a nce

    Researchers in SHRM posit that greater use of such practices will always result in better (or worse)organizational performance (Abowd, 1990; Gerhart and Milkovich, 1990; Huselid, 1995; Leonard, 1990;Terpstra and Rozell, 1993). Leonard (1990) found that organizations having long-term incentive plans for theirexecutives had larger increase in return on equity over a four-year period than did other organizations. Abowd(1990) found that the degree to which managerial compensation was based on an organization's financialperformance was significantly related to future financial performance. Gerhart and Milkovich (1990) found thatpay mix was related to financial performance. Organizations with pay plans that included a greater amount of performance contingent pay achieved superior financial performance. In combination, these studies indicatethat organizations with stronger pay-for-performance norms achieved better long-term financial performancethan did organizations with weaker pay-for-performance norms.

    Terpstra and Rozell (1993) posited five "best" staffing practices and found that the use of these practices had amoderate and positive relationship with organizational performance. Finally, Huselid (1995) identified a linkbetween organization-level outcomes and groups of high performance work practices. Instead of focusing on asingle practice (e.g., staffing), Huselid assessed the simultaneous use of multiple sophisticated HR practices andconcluded that the HR sophistication of an organization was significantly related to turnover, organizationalproductivity and financial performance.

    In the case of requisite competencies for HR personnel, emerging evidence from empirical researchdemonstrates the increasing need for HR personnel to have both HR professional and business-related skillsand competencies. A survey of HR executives in the US show that HR managers are spending relatively less timein record keeping and auditing, while their time spent in their activities as a business partner have doubled. Thesurvey also revealed that HR managers believe that their HR staff's most important skill needs are team skills,consultation skills and an understanding of business (Noe, et al., 1997).

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    Managerial competencies particularly in the HR function bring two advantages to the HR function: (1) Enhancethe status of the HR department (Barney & Wright, 1988) (2) Act as important influences on the level of integration between HR management and organization strategy (Golden & Ramanujam, 1985; Ropo, 1993). A

    study of Singaporean companies found that when HR managers lack the necessary skills to perform their dutiescompetently, line managers and executives take over some of the functions of HR managers (Nee & Khatri,1999). Research on managerial competencies by Ropo (1993:51) stressed that the internal dynamism of theHR function serves as the most critical mechanism to keep the integration process going after it has beenstarted under favorable organizational and strategic circumstances . Other studies show that if HR managerscan evaluate their priorities and acquire new sets of professional and personal competencies, the HR functionwould be able to ride the wave of business evolution proudly with other functions in the organization.

    Huselid, et al (1997) conducted an elaborate study on 293 firms in the US to evaluate the impact of humanresource managers' professional/technical competencies on HR practices and the latter's impact onorganizational performance. Results of the study suggest that consistent with the resource-based view of thefirm, there exist a significant relationship between SHRM practices and firm performance. They found that (1)HR related competencies and, to a lesser extent, business-related competencies increase the extent of effectiveimplementation of SHRM practices and (2) consistent with recent studies linking HRM activities and firmperformance (Arthur, 1994; Cutcher-Gershenfeld, 1991; Huselid, 1995; Huselid & Becker, 1996; MacDuffie,1995), the study support the argument that investments in human resources are a potential source of competitive advantage.

    Recent reviews of theoretical and empirical literature (Juhary Ali & Bawa, 1999; Irwin, et al., 1998; Jackson &Schuler, 1995) suggest that a variety of factors affect the relationship between HRM and firm performance.These factors include firm size, technology and union coverage.

    The influence of fi r m size on HRM practices is fully documented in theoretical and empirical studies. Forexample, institutional theory suggests that larger organizations should adopt more sophisticated and sociallyresponsive HRM practices because they are more visible and are under more pressure to gain legitimacy. Manyempirical studies show that firm size is an important variable influencing HRM practices (Ng and Maki, 1993;

    Wagar, 1998). There are emerging evidences that HR practices may differ in organizations depending on thelevel of te c hnologi c al sophisti c ation in terms of training (Majchrzak, 1988), performance appraisal (Ouchi, 1977,1980; Snell, 1992) and reward systems (Kaus, 1990; Snell & Dean, 1992). Theoretical and empirical studies alsosupport the position that the presence of specific HRM practices may differ based on the union c ove r age of afirm (Ng & Maki, 1993, Wagar, 1998; Lawler & Mohrman 1987).

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    Glob a liza tion a nd Its Influ ence on Str a t eg ic Hum a n R esourc e

    Ma nagem ent, Comp etitiv e Adv a nt age a nd Or ga niza tion a l

    Succ ess.

    Globalization is the buzz word of modern times and has many varying perspectives. It Describes the way thatworld trade, culture and technologies have become rapidly integrated over the last twenty years. (Ozbilgin M2005) Globalization creates conditions of rapid change, all the changes way from the cyber revolution to tradeliberalization, worldwide homogenization of consumer goods and services and export oriented growth, Are allcomponents of the phenomenon of globalization? (Hucysnki et al 2002). It is attributed to variousconsiderations which are often associated with a wide range of Factors allied with it, which is of an economic,political, cultural and sociological nature. (Sparrow et al 2004). Globalisation is considered to exists within theaction of those relatively (few firms) that look at the world as being nation less and borderless. (Ohmae inSparrow et al 2004).These firms and multinational corporations carry out trade on a Global basis and their mainconcerns are fewer trade barriers, profit maximization, Satisfying customer needs and creating a niche ormarket position, all these Mechanisms have a direct and profound impact on the behaviors, attitudes andMindsets of people who work in such organisations, and on how they should be Managed. (Sparrow et al 2004)The forces of globalization, have changed the world of Work, some of the principal changes, the world overhave been the emphasis on Competitiveness, increasing numbers of women joining the work-force, a moremobile and diverse work-force and growth in part-time and flexible work. Globalization is often portrayed as anew stage in world development. (Sparrow et al 2004), which is Characterized by intensified competition andcontinuing technological innovation, which Have emphasized the importance of product quality and customercare which in turn has Increased the emphasis on people management. (Hucysnki ET al2002). To meet some of the challenges posed by intense competition organizations have been downsized,

    Delivered, decentralized and are less hierarchical in nature. These changes have subsequently leaded to manydevelopments in HRM, as employers have to cope with the Challenges posed by a competitive global economicenvironment. (Redman et al 2001), Organizations are increasingly turning to the unique contribution providedto them by Their human resources as a source of competitive advantage (Wright et al in Morley et al2004).Organizations and institutions are increasingly realizing the importance of human Competitiveness asessential to organizational survival and economic progress. There is

    Also a growing belief that if organizations have to survive and thrive in a global Economy, they require world-

    class human resource (HR) competencies and the Processes for managing them. (Khandekar et al 2005) and thisis in line with the (RBV) Perspective of Strategic HRM, which states that employee knowledge, skills, talents andKnow-how are the central source of organizational performance, human resources are More likely to producecompetitive advantage because they often are truly rare and can

    Be more difficult for competitors to imitate (Jackson et al 2004) and that the effective Management of humanresources is critical to obtaining organizational success. The Basic premise on which strategic human resourcemanagement is based is that human Resources are strategic valued assets and a source of competitive

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    Advantage. (Khanderkar et al 2005)Competitive advantage is those abilities, Capacities, resources and decisionsthat undermine an organization s capacity to Survive and maintain its position. Management of people isincreasingly being considered as one of the key links to generating a competitive advantage. CompetitiveAdvantage leads to organizational effectiveness. (Lengnick in Khanderker et al 2005).Among a firm s intangibleresources Human Resources with their tacit Knowledge, skills and talents are more likely to produce

    competitive advantage, as these constitute the core competencies of the organization, which will enable anOrganization to capitalize on opportunities in the market place and avoid threats to its Desired position.

    An effective Human resource system it says should fulfill the following functions.

    The smoother introduction of new employees into the company through the Recruitment and inductionprocesses and in the first job assignment

    Personal dynamics-ensuring that employees devote part of their energies to

    The goals of the company through attention to reward systems, Communications, encouragement and careerdevelopment

    Progress-being receptive to employee ideas and preparing employees for the New skills demanded bytomorrow s needs through training, cross fertilization and job enrichment

    Setting up a permanent and constructive internal dialogue

    Attention to quality of working life, providing as much security as possible and a fair share in the fortunes of the enterprise. (Handy et al 1990)

    Building the image of the organization-demonstrating a humane system of


    It is worth understanding that all this debate about whether employees are an asset is

    Based on the actuality that effective human resource management practices leads to

    Organizational success and this becomes increasingly significant in global organizations

    Which have to cope with huge levels of competition and unprecedented rapid change?

    SHRM in Pakistani organizations

    In many Pakistani companies the Human Resource (HR) function is still mainly about Personnel Administration,and recently also an industrial relations safeguard. There is a widely held perception that the personnel

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    function is confined to a reactive, fire fighting and administrative position in which it fails to be relevant to theaims of the organization. Some researchers have also noted signs of the personnel management role beingeroded. Responsibilities for certain activities, formerly delegated to it are being returned to line management ina redefinition of management s responsibilities for managing people.

    The Future of People Management in Pakistan

    This brings us to the question of the state of human resource management in Pakistan. Are HR Professionalsready, and able to become strategic partners in their organizations? Change must happen now and we needrelevant information from HR Professionals and line managers to drive that change! If HR practices are to beleveraged by the HR function, HR Professionals must begin to act more professionally. Unfortunately, HR doesnot have much time left to regain its credibility in the eyes of the rest of the organization.

    Empirical Evidence of SHRM Practice

    Strategic human resource management has most prominently been explored in the business, health, andservice organizations. This research has focused on the relationship of SHRM practices to individual andorganizational outcomes such as employee satisfaction or profit margins. Recent studies have examined therelationship between SHRM and employee attitudes, satisfaction, and turnover within various industries acrossthe globe. An analysis of the Pakistani banking industry found that employee satisfaction with HR practices waspositively related to turnover intentions, especially with younger employees and employees in high performingorganizations (Khilji & Wang, 2007). Green, et al. (2006) and Huselid (1995) found similar results in the UnitedStates, while Boswell (2006) found that organizations that implemented SHRM practices had a strong

    correlation to employees who understood organizational goals, objectives, and strategy and understood howto contribute to them.



    Human Resource Management is concerned with enhanced productivity fully utilizing the combined talent andskills of the entire workforce of an organization. HRM must today reinvent itself to cope up with the demandsof a global economy. Here we consider the scope of Human Resource management.

    Human resources may be broadly defined as the sum total of all the skills and capabilities both inherent andacquired - of an organization s entire workforce. Human Resources Management (HRM), for it to be effective,

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    must appropriately deal with the aptitude, attitude, talent and skills of each individual employee within theorganization.

    The objective of Human Resource Management must be to evolve a suitable process whereby employeesperform optimally and the goals of each individual employee as well as the organization are met. This can befurther understood by taking a closer look at the scope of Human Resource Management.


    It may be difficult to write succinctly about the scope of Human Resource Management as it is rather wide andfar-reaching. However, for purposes of convenience, the scope of HRM can be divided into three differentsegments:

    Personnel This pertains to recruitment, training, man-power planning, posting, performance appraisal,sustaining employee morale, transfers, promotion, disbursement of wages, retirement benefits etc.

    Welfare This relates to providing proper work conditions, leave, medical facilities, canteen, rest rooms,workmen safety, social security, transport, etc.

    Industrial relations This is a highly responsible and sensitive area and includes interacting with the unions,addressing grievances, disciplinary proceedings, dispute settlement, compliance with statutory requirementsetc.


    Managing human relations is becoming increasingly difficult and challenging. It is part of HRM to ensure that

    employees stay motivated all the time and the productivity is continually enhanced. With industrialdevelopment and the ushering in of global economy, there has been a tremendous growth in job opportunitiesand it is becomingly increasingly difficult to retain talent. Thus, understanding the scope of human resourcemanagement in a diversified economic environment becomes extremely important and this scope helps insetting an all round, dynamic management system.

    HRM must focus on coping up with increasing employee expectations, changes in employee lifestyles, impact of rapidly advancing technology, shift in government s economic and labor policies, demand for workersparticipation in management and downsizing the employee strength to remain competitive in business. Inshort, HRM must ensure identification and reconciliation of individual employee s goals with the objectives of the organization.

    Global Impact

    The two key result areas of HRM are - personnel management and development activity. However, most HRmanagers tend to focus too much on personnel management and pay scant attention to developmentalactivities. With the advent of global economy, HRM must bestow serious attention to developmental functions.

    HRM must address some of the pertinent questions with regard to human resources from a global perspective.Employees must be trained in multiculturalism and the ability to interact with foreign associates.

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    HRM must accept responsibility for creating revised methods of management systems as many of thefundamentals on which management policies were earlier based are now proving to be outdated. Foreigncompetition and international trade have compelled HRM to train and reorient the employees to become moreglobal-minded.

    Human resource is today perceived by many corporate houses as an invaluable asset that needs to continuallydeveloped and well preserved. Employees must be made to develop a sense of involvement and identifythemselves with their company s core philosophy and stated objectives. For optimal utilization of employeestrength in the organization, it would be beneficial to introduce the concept of six sigma into the HRM strategy.


    Human resources planning refer to classic HR administrative functions, and the evaluation and identification of human resources requirements for meeting organizational goals. It also requires an assessment of theavailability of the qualified resources that will be needed. Human resources planning should be a key

    component of nearly every corporation s strategic business planning. To ensure their competitive advantage inthe marketplace, organizations must implement innovative strategies that are designed to enhance theiremployee retention rate and recruit fresh talent into their companies.

    Effective human resources planning strategies are those that include having sufficient staff, with the rightmixture of talent, and who are in the appropriate locations, performing their jobs when needed. It movesbeyond the traditional role of human resources as primarily an administrative control function. In today scorporate environment, it is viewed as a valuable component for adding value to an organization. Bothemployees and the company will often realize many benefits of planning over the long-run.

    In uncertain business settings, the significance of strategic human resources planning can become obvious very

    quickly. A company that reacts to circumstances by cutting staff as a measure to reduce short-term overheadcan create unwanted repercussions. What initially looked like a smart and necessary move to economize in leantimes can end up costing the company much more in the long-run. The resources that will be needed tosubsequently recruit, hire, and train new employees may well exceed any short-term cost savings.

    Forward-looking human resources planning typically anticipate future staffing requirements. It can helporganizations avoid cost errors. Strategies are formulated to not only anticipate their needs over time, but toconsider optimal solutions for the long term and under challenging economic conditions. This approachminimizes the chance of short-sighted and reactive choices being implemented by decision-makers.Organizations with a plan in place, and a keen understanding of their long-range objectives, may instead decideto weather the economic storm and keep trained, talented, and dedicated staff in place for the inevitablebusiness uptrend.

    Linking human resources policies, systems, and processes with a company s overall strategic planning andpractices can have immediate advantages. Along with providing the company a road map for forecasting theirstaffing demand, effective human resource planning documents the talents and skills of the people who are inplace. It also considers what current skill set and abilities are required to meet future needs and any newcapabilities and talents the company may need to recruit and hire in the future.

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    Is an HR action plan necessary? Human resources play a key role in attaining a business's mission. Thus, if salesand marketing departments present management with a strategy to meet a goal, then a human resourcesstrategic plan should be created to help meet that goal.

    Emphasizing the Role of the Human Resources Department

    In providing explanations about the concept of human resources strategic planning, we will also put emphasison the importance of human resources management in project planning. Many employees who became victimsof downsizing in the recent past regard the HR department as useless and merely put in place to move theemployees around like pawns on a chessboard. If the main strategist makes a wrong move, then they are

    taken-off the board as like a dispensable object.

    This, in a way, is true because downsizing is a result of business strategies that failed, and layoffs have beenregarded by employees as part of those failed strategies. However, that was a dark era in the past and lessonshave been learned. Human resources managers are now tasked to prepare HR action plan to support thecompany s business strategy.

    In order to do this, HR management should also perform its own human resources strategic planning by way of pencil-pushing and brainstorming. That way, employees as human resources have a clear idea about the goalsthey are expected to achieve. They will have clarity of perception about their roles in attaining a common goalfor the entire organization.

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    Formulating Human Resources Strategies and Developing the HR Action Plan

    To make this discussion more interesting, we will go about it as if we are in the process of brainstorming forhuman resources strategies in order to come up with our HR action plan sample.

    1. Establish the Company s Vision and Mission2. Understand the Executive Summary of the Business Plan3. Know the Business Strategy:4. Establish the Objectives of the Human Resource Strategic Planning Know the company s business goal and the exact ideas on which you re planning. Some companies incorporateboth vision and mission into one single statement or paragraph, while others create yearly mission statementsin line with their business strategy for the year.

    As you go about gathering ideas and developing your plans, understand these three basic principles to observe

    y Formulate strategies that are aligned with the core values and the core purpose of the company svision and missions.

    y Human resources are not just workforces to mobilize. They are real people with personal desires andambitions, which is why they went through years of education and training. Now it s up to the humanresources department to recruit individuals whose interests, competencies and capabilities are attunedto the core values and purpose of the company. Nonetheless, the department is not expected to be

    always accurate in the recruitment assessment, which makes it important to keep assessmentprograms part of the staffing strategy.

    y Every employee desires to become a part of a business organization that is well-organized, which theycould perceive as soon as they submit their applications for the recruitment process. They willexperience this as they undergo the training initiatives and benefit from this through management sperformance. The best part about an organized company is that the compensation being afforded toemployees is paid as a form of recognition for their contributions.

    HR planning has fou r c omponents:

    1. Acquisition

    Manpower planning to recruit right personnel for the right position at the right time. All activities preparing jobdescriptions, salary negotiations, making an offer etc. fall under this.

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    2. Training and Development

    Training is an ongoing process in the employee life cycle. Right from conducting Induction training tomentoring, coaching and grooming for higher roles is the responsibility of training. As a trainer you must notethat in absence of correct recruitment practices, training will be a very tedious task. Hence a trainer mustunderstand the job description prepared for recruitment and compare that with the skills required for the nextlevel for the employee. Now the gap between these two levels is what needs to be addressed through variousforms of training.

    3. Motivation

    Maintaining the morale of employees is a very delicate job and HR has to accomplish it in order to keepattrition levels in check and satisfaction level high. Equal focus on both hygiene and motivational factors needsto be given in order to maintain it. Some companies think conducting pep talks and trainings with motivationalcontent can do the trick. But as a training professional, it's your job to understand and convey that this is justthe tip of the iceberg. The actual factors directly affecting motivation cannot be addressed by such trainingprograms.

    4. Maintenance

    This is an ongoing process again which ensures company health during difficult times. This may meanretraining, redeployment, job rotation, transfers or even downsizing sometimes. Robust maintenance systemworks like a buffer to safeguard company interests.

    The interdependence of these four pillars of HR planning is essential for any training professional to

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    understand. Like HR planning, training is also a strategic process which cannot

    Be planned only in short term. Like my first boss used to say, "Don't think what will happen if

    You train and they leave. Think what will happen if you don't train and they stay!"


    The steps for effective HR planning encompass demand forecasting, supply forecasting, audit, reconciliation oraffecting a demand-supply fit, and control.

    Human resource planning is a systematic analysis of HR needs to ensure the availability of the correct numberof employees with the necessary skills at the right time. The increased competitive nature of business that

    makes workforce flexibility an imperative need has raised the importance of human resource planning.

    Demand Forecasting

    The steps to HR Planning start with forecasting the number and type of employees needed in the future. Thisrequires a good understanding of the internal and external environment of the enterprise.

    The major aspects of the internal environment that affect HR Planning include short-term and long-termorganizational plans and strategies, and the status of the organization's human resources. The major aspects of an enterprise s external environment that impacts HR planning include the general status of the economy,developments in technology, level of competition, labor market trends and regulations, demographic trends

    and the like.

    For instance, an organization planning to launch a new product would require additional marketing staff, andan organization looking to open a new branch would require more office staff. An organization looking to closedown unprofitable branches might look to retrench workers. Similarly, technological developments mightprompt the organization to shift to reliance on fewer numbers of technically skilled workers rather than dependon a large pool of manual labor.

    Correct forecasting of human resource requirements contributes significantly to the competitiveness of theenterprise. Organizations forecasting more workers than required retain surplus or under-utilized staff, andorganizations that fail to grasp the full extent of human resources required find themselves overstretched andunable to seize opportunities.

    The two major methods of forecasting are judgmental methods such as Delphi technique or managerialestimates, and various mathematical models such as time series, personnel and productivity ratios, regressionanalysis, and the like.

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    Inventory Analysis and Supply Forecasting

    The second step in HR planning is inventory analysis or keeping track of the current employees in theorganization to determine the extent to which this meets the forecast.

    The HR inventory analysis entailsy Skill inventory, or keeping track of the number of employees, and the age, locations, qualifications, and

    skills of each employee to determine the specific role each employee would fill in the short term andlong term

    y Forecasting resignations and recruitment and understanding their impact on the skill inventory levelsy Forecasting leaves, transfers, dismissals, sabbaticals, prolonged illness, and deaths of employees and

    their impact on inventory levels

    The ways to forecast the internal supply of human resources include methods such as Markov analysis,transitional matrices, replacement schedules, succession planning , and the like.


    The third step in HR planning is audit, which includes reconciling inventory with forecast through a systematicanalysis of demand and supply forecasting, and identifying areas where shortages and surpluses exist.

    The audit phase also involves, among other tasks:

    y Identifying reasons for resignations, the cost of such resignations such as recruitment and training costsof new hires, cost of lost experience, skills and knowledge of the departing employee, and the like, and

    devise retention plans to retain key talent , if requiredy Review the effectiveness of the recruitment activities, training and development initiatives, career

    planning exercises, succession planning, and other interventions


    The next step in HR Planning is developing action plans to bridge the gap between forecast and supply.

    The various alternatives include:

    y Strategy to recruit new employeesy Retrenchment of downsizing strategy to shed excess workforcey Training and Development plans to right-size the workforcey Career Planning and Succession Planning to identify key personnely Changes in work regulations such as timings, overtime policy and the like

    The basic considerations when undertaking the planning process is compliance and impact of labor legislation.Laws that govern overtime and retrenchment for instance can have a significant impact on the strategy

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    adopted. The other consideration is the availability of resources such as financial, physical, and technical forimplementation of the plans.

    Once approved, such plans become part of the company s strategic objectives. Strategic HR Planning entailsaligning such HR Plans with the overall strategic goals of the organization.


    The last step in HR Planning is monitoring and controlling implementation of the HR plan. This entails ensuringimplementation proceeds in accordance with the plan and taking timely course corrections.

    The external and internal environment of an enterprise always remains in a state of flux, and a good HR Planincorporates mechanisms to make timely revisions in accordance with such changes.

    The HR Action Plan Sample (Strategies)

    The Recruitment Strategies

    1. To write a comprehensive job description for each of the staff categories described in the Human ResourceStrategic Plan.

    2. To research the best qualifications for each job type, based on the demand of their job functions. However,the core value and the core purpose of the company as well as the store s mission can be best fulfilled byqualifying only those who demonstrate a great love for children in all job categories. This can be manifested byway of recommendations, family background, past experiences and actual demonstrations.

    3. To recruit our applicants from those recommended by our network of associates and business contacts asthe best source of suitable applicants who will be chosen to fill-in the professional positions; namely: StoreManager, CMO, Store Merchandiser, Accounting Technician, Credit and Collection Officer, as well as PayrollMaster.

    4. To recruit college undergraduates seeking for internships as K12 teachers, teacher s aides, or teacher sassistants to fill-in the CSR-DP, CSR or Cashier positions.

    5. To recruit high school graduates with satisfactory academic performance records and backgrounds pluscommendable work references as babysitters or caregivers from ages 16 to 21 years old to fill in the CSR-DP orCSR positions.

    6. To recruit high school graduates, from ages 16 and above, with satisfactory performance records andcommendations from referrals, to fill-in the positions of stockroom personnel and cleaning crew.

    7. To research and formulate interview questions that will elicit answers to show consistency of informationabout the applicant s background, work experience, recommendations, know-how and genuine understandingof the company s core values and purposes.

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    8. To match their test scores with the industry metrics for the relevant job position.

    9. Find out from those who were extended with job offers, the reasons why they deemed it best not to acceptthe company's employment offer.

    10. Ensure there is diversity in the CSR-DP and CSR staff recruited.

    The Orientation and Training Programs

    1. To plan an orientation seminar that will discuss the company s business vision and missions, the company score values and purposes, the employment and termination policies, handbook overviews and FAQs, and thecompany s position as an employer-at-will.

    2. To conduct a personality seminar handled by a professional fashion design consultant, who will give adviceabout the style of dress and make up that would suit a family-friendly or kid-friendly environment. The ideas orrecommendations should be aligned with the store s rainbow theme. The consultant should also be able toimpart the proper decorum, the manners to exhibit and language to use in front of children. The objective is forparents to see the company s store personnel as models of good behavior, to positively influence their children.

    3. To conduct a workshop or seminar on how to soft-sell or to make a sales pitch in a way that will not turn-off the parents. Some parents might get the notion that they are being pressured by their children into buyingsomething for which they are not ready every time they visit. Make it a point to invite speakers who coulddemonstrate how this can be done effectively.

    4. Conduct a seminar or workshop handled by a daycare operator or an overseer of a cruise ship fun center forkids. Give the entire store personnel ideas and techniques:

    y On how to keep the children relatively agreeable with the store rules,y On how to promote socializing among the young ones, andy On how to keep them happy in their thirty-minute stay in their respective play areas.

    5. Invite a speaker with a genuine knack for humor, to give tips on how to always see the brighter side of life.The objective is for the staff to maintain a bright disposition while working within the store premises to avoidcreating an atmosphere where short-tempers could flare up.

    The Assessment Programs

    1. Every new rank and file recruited will be evaluated each month for their progress and improvement to letthem know if they are performing according to the company s core values, policies and the basic on-board

    training. It will also include an offhand interview on how they see the company, the store operations, thecustomers, the products, the role they play and the problems that hinder their improvement.

    2. The rank and file performance will be given a formal rating every six months -- this will be the basis of theirsalary increments.

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    3. The supervisory or managerial positions will be assessed every 6 months and be asked about their opinionson how management can further improve its selling system or about the existing and potential problems theysee on how the store is being run.

    4. An employee survey about their perception of the company s employment and operating process will beconducted every 6 months.

    The Compensation, Benefit and Awards Program

    1. Every new hire will be compensated with the basic wage pay rates according to industry standards.

    2. All employees will have additional meal and transportation of $500 added to their basic wage but will be pro-rated according to the number of days or hours that the employee reported for work.

    3. All rank and file store employees will receive additional pay in terms of profit-sharing every four months,based on the quarterly financial statement reports and the employee profit-sharing plan, to which:

    y Each CSR DP and CSR will be identified in every individual sale they make and earn sales commissionsfor the total amount of all items sold individually. The CSR-DP or CSR with the highest amount of salefor the quarter will be awarded with a custom-made commemorative Plushie Soft Doll.

    y CSRs with no credit for individual sales and the store personnel handling administrative functions, willreceive profit shares of the net income computed at a flat rate.

    4. The managerial and supervisory positions will receive compensations, benefits and profit shares based onthe employment contracts to which they agreed during employment negotiation and acceptance.

    5. Sick leave and vacation leaves will be according to the FMLA but management maintains an open mind aboutleave requests that stem from dire or emergency reasons, as long as company policies are observed.

    6. A Best CSR-DP , Best CSR Employee and Best Store-Support Provider will be recognized and berewarded with commemorative and cash awards yearly.

    Corporate Reorganization during Promotions, Resignations or Terminations

    As part of human resources strategic planning, employees who have elevated their educational andcompetency levels and who will seek for promotional advancements will be provided with assistance in casethe company has no available position. The company will include their resumes in the pool of human resourcesfor recommendation to our network affiliates and associates.

    However, actual transfers shall only take place after the replacement has been trained by employees vacatingor moving out of their job positions. This is to allow for proper reorganization.

    Resigning employees will have to give at least one month notice prior to actual date of resignation to allow forproper restructuring or reorganization.

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    Conclusion of the HR Action Plan

    Make a conclusion statement to serve as a reiteration of the company s business vision and mission:

    The company s vision of becoming a community-friendly store can only succeed if everyone who works for thecompany is aware that they need to exemplify the core values of fostering family and social bonding. That way,everyone will reap the benefits of working together for a common good.




    Human Resource Planning (HR Planning), also known as manpower planning is the process of estimating thepresent and future demand of personnel required for the company s operations, and to attain targets. It alsodetails the how and when to acquire such personnel.

    Succession Planning is the process of identifying critical positions in the organizational chart and preparingemployees below or parallel to such critical positions in the hierarchy to take over when the incumbent leavesthe critical position due to resignation or any reason.


    The major difference between human resource planning and succession planning lies in their approaches.

    Human resource planning (HR Planning) concerns itself with the quality and quantity of the entire workforcewhereas succession planning concerns itself with the competence of a person in a specific post.

    HR Planning is a macro-level approach dealing with the workforce in general, aiming to ensure that theorganization has the required number of personnel with the required skills at the required time. It is astraightforward cut and dry approach and does not concern itself with any specific employee on an individualbasis. Succession Planning is a micro-level approach concerned with individual employees on an individualbasis, for the eventuality of the incumbent leaving, which is still uncertain and indefinite.


    Another difference between human resource planning and succession planning is seen in the selectionmethodology used by each.

    HR Planning bases itself on:

    1. The existing operations of the company, and estimates the required workforce through methods suchas time study, case study, and others.

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    2. business plans, and forecasts human resource demands by various forecasting techniques andstatistical tool.

    Identifying critical positions for the succession planning exercise is subjective. The criteria for selection of candidates to groom as successors depend on various factors such as competence, behavioral skills andattitudes, tenure with the company, political equations within the company, and the like. Such standards areusually subjective. The process of actually implementing succession planning is however scientific and includeassessment centers, empowerment, mentoring, and various training and development initiatives


    HR Planning usually takes places before a major recruitment process such as seasonal hiring or following amajor corporate restructuring or decision to right size the organization. Companies without such disruptionsusually review their HR plans annually in a bid to right size the organization based on actual demand.

    Succession Planning is a more continuous process aimed at enhancing the competence of the personnelselected to succeed incumbents. The process of identifying a new employee to groom as a successor startswhen one of the personnel marked as a successor moves into the earmarked slot or leaves.


    HR Planning aims at ensuring that the organization functions smoothly with the right number of personnel. Ashortage of employees results in the inability to meet corporate goals, failure to exploit opportunities, poorcustomer satisfaction, and lower profits. The presence of excess personnel leads to the loss of productivity,process inefficiency, and unnecessary wage bills.

    Succession planning aims to prevent disruption of organizational activities or collapse of systems andprocedures by the absence of key personnel in key positions. It tries to mitigate the adverse affects of the

    resignation or loss of key employees.

    Both HR Planning and Succession Planning are of critical importance to any organization, and organizations thatneglect either of these activities invariably face severe human resource issues.

    The process of HR Planning might be carried out by HR department, but its understanding is important foremployees of all functions. HR Planning by default is strategic HR planning (though some authors distinguishbetween the two) because when it comes to planning for people as a resource; it is unfair to talk only in shortterm.

    Training being an integral part of HR process, it is essential for trainers and training managers to understand

    how the training function fits into the larger picture. In many companies, training department works inisolation, which interferes with the smooth functioning of effective hr planning process

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    Job analysis is the basic and important part of human resource management (HRM). It covers the job analysisactivity under the sub process of human resource planning. Job analysis is conducted after work-force analysisand availability analysis ( Hellriegel and Slocum Jr. 1993) . It also indicates what activities and accountabilities the job entails. It is an accurate recording of the activities involved. Every job is multifaceted and there are several

    methods in preparing job analysis. Most organizations prepare job analysis, statements of performance andexpectations of employees at floor and at the managerial level. The content of these statements variesconsiderably from one company to another, depending in large part on the uses to which the information isput.

    People performing a job may be observed and questioned. Various training manuals and other job-relatedmaterials may be made available to job holders, supervisors and other who is knowledgeable may beinterviewed or asked to complete written questionnaires. On occasion, photographs and film of the work,

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    examination of tools and equipments, and actual performance of the job by a job analyst may also be used. If the resulting descriptions are appropriate and up to date, descriptions can be helpful in reducing rile ambiguityand conflict. Written job descriptions establish a clear standard against which job behavior may be gauged.Descriptions constitute a script that organizational players can learn, so they do not have to ad-lib their lines.Organization charts that outline the relationships among managerial roles in an organization may perform thesame function.


    Job analysis is a term used by human resource managers for the process of collecting information related to jobcontents. Schuman (1994) compared tasks performed on the job with knowledge, skills and abilities of the jobholders. The information provides job description that becomes summary reports of each job in theorganization. Job descriptions are the basic inputs to job evaluation, which is used to assess the characteristicsalong with the working conditions of each job by assigning numerical points to the duties, responsibilities andefforts required for each job. This numerical points or score measures the relative value of each job to theorganization (Schuman, 1994).

    The next step in the formal procedure is to set pay attached to job points. This is frequently done by conductingand analyzing a pay survey of the relevant labor market. To do this pay survey and analysis, the organizationidentifies a set of benchmark jobs. These benchmark jobs are jobs within the organization that are common inother organizations. The survey may identify parameters for pay fixation or may determine pay scales. Thesurvey may determine pay scales in other companies also. The organization may also find methods of fixing payfor new jobs (See Heneman 1980, Milkovich and Newman 1987, Hartman, Roosand Teriman 1985, Killingworth1985 and Gunderson 1989).

    Job Analysis in Pakistan:

    In western countries human resource management (HRM) research has shown a shift from micro- analyticalapproach (individual performance) to a macro-strategic (organizational performance) perspective but in acountry like Pakistan micro level approach is yet to be analyzed. Distant from the traditional personnel role,human resource management (HRM) has recognized new roles in terms of employee champion, change agentand strategic partner (Ulrich, 1997).Linking HRM practices to employee job performance is unexplored andrequired a great attention particularly in the context of Pakistan public sector organization.

    Pakistan is a developing country in the South-Asia region. Apart from having ample natural resources, Pakistanis widely known as an open and forward thinking country, willing to test with innovative management practicesand development models that will assist it in seeking an effective diversification of its economy. With invasionof multinational companies over the past decade, particularly under the umbrella of regulatory authorities,Pakistan has achieved an inspiring mix of domestic and foreign companies. The growing competition in a large

    market (with a little over 175 million population) has made both domestic and foreign companies intenselyproductivity cognizant. This, in turn, has generated a strong interest and enthusiasm among organizations,particularly in public sector, to search vigorously for the best management practices in all fields of HRM toimprove their productivity and overall performance. Thus, Pakistan offers an appropriate setting to examinehow a basic HR practice, such as job analysis, which has received considerable attention in Western countriesas a useful HR planning tool, affects employee job performance in a developing country.

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    Job Analysis Principles:

    The purpose of the job analysis is to identify the experience, education, training and other qualifying factors,possessed by candidates for specific jobs. It can be also used to identify candidate s qualification or theirevaluation, referral and selection process. There are two key elements of a job analysis.

    1. Identification of Major Job Requirements (MJRs).

    2. Identification of knowledge, skills and abilities (KSA).

    KSA required accomplishing each MJR. A number of fundamental principles concerning jobs and theprocess of analyzing them have been identified by Duecento and Robbins (1996). These principles are:

    y All jobs can be analyzed and recorded.y Job analysis can enhance communication.y The process of analyzing jobs can easily accommodate changes.y The process can be clear enough so employees and employers can understand and contribute

    to the process.y

    The process can be designed so that all major personnel decisions can be based on theresulting data.y Skill, knowledge and ability can be defined in operational terms (applications of skills,

    knowledge and abilities may be identified)y Job analysis based on observable behaviors and work products contributes to efficient HRM.y Nearly everything that needs to be written to explain the work of a job is already written.

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    Job Analysis Information:

    As HR activities grow in scope and complexity, many duties, such as recruiting and compensating, are delegatedto the HR department. But HR specialists do not know the details of jobs as well as operating managers do.Knowledge about jobs and their requirements must be collected through a process known as job analysis, in

    which information about jobs is systematically collected, evaluated and organized.

    Methods of Job Analysis

    Cascio (1995) highlighted that there are different number of methods used to study jobs. At the outer set it isimportant to note that no one of them is sufficient. Some combination of methods must be used to obtain atotal picture of the task and physical, mental, social and environmental demand of a job. Job analysis is justthat-analyzing the task you need done in order to complete a job. It does not have to be difficult orcomplicated. Job analysis is the process of looking at exactly what a job entails in order to determine thenecessary job qualifications. Through the job analysis, a job s skills, knowledge and ability (KSA) can be definedin operational terms. This is essential if the job analysis data are to have any utility whatever. For example, if KSA s are to be used in performance assessment, they must be operationally defined.

    y Knowledge is to know how to perform the work but not having performed it.y Skill is having performed the worky Ability is having the physical, emotional, intellectual and psychological ability to perform the work but

    neither having done the work nor having been trained to do the work.


    To conduct job analysis effectively, managers have the obligation to keep all the job information up to date. It isvital that they report changes in the organization; job assignments and methods of work to ensure thatclassification are kept current. Even when staff specialists evaluate jobs, line managers still have the basicresponsibility of reviewing both the job analysis and the result of job evaluation. This review carries with it theauthority to approve or appeal. Line managers have the basic responsibility for making pay decision. Decisionsmust be made within the framework of policies, practices, techniques and controls. Clearly, the individualsupervisor is involved in interpreting compensation policies and applying them to many individual situations.Management of job analysis, job evaluation and compensation administration, like many other fields, requiresa never ending search for excellence.

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    5 . Employ ee Pa y M a nagement Syst em [EPMS]:Your employees are the core of any company and the main factors in determining a company s success orgrowth. This makes it very important to invest in effective and well planned Employee Pay ManagementSystem (EPMS) for business that will help to create a good management system.

    EPMS Properly Manage Your Employees Salary

    Management of the salaries of employees is determinant to the company as their contribution often decidesthe value of the business. One of the main features in Employee Pay Management System is time tracking foremployees. Effective time tracking mechanism saves both time and money for the organization.

    The aspect in any given company is the payroll structure devised for the employees. Many industries havenumerous department and wide range of designations and accordingly the pay structure changes from oneposition to another. Usually for a company with more than 25 employees, good payroll system is feasible.

    Skill-based pay systems set compensation levels for individuals based on the valuable skills they possess. Thephilosophy behind skill-based pay decisions is the fact that employees cannot increase their productivity andefficiency simply through years of experience with the firm, although experience does play a hand in employeesbecoming more valuable. Instead, these companies believe that employees with more educationalachievement, who continually learn more and grow in their professional competencies, contribute more to theorganization over the long term, making them a more valuable investment. Educational achievement does nothave to refer to university degrees; it can also refer to completing training programs or achieving specialcertifications.

    EPMS Remotely Control Your Workforce

    Another most important advantage of Employee Pay Management System , by which you should look intobefore choosing the one to select, is that it gives you capacity to keep track of your company s workforce fromany part of the world. Organizations that are spread across geographical locations with their offices are mostbenefitted by such a system. You can track and manage any employee with such system. The system records

    the time spent by each employee on an assigned project and the exact skillsused. These records form basis on which appraisal or promotions areconsidered.

    Such a system can cut the costs of management and increase the profit marginof the company by taking of some burden fr