Strategic Frame Work for HRM Factor

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TableNo. Of Content e 1.1 1.2 1.3 1.4 1.5 1.5.0 1.5.1 1.5.2 1.5.3 1.5.4 1.6 2.1 2.1.1 2.2 2.3 2.4 2.5 2.6 2.6.1 2.6.2 2.6.3 2.6.4 2.6.5 2.6.6 2.7 2.8 2.9 2.10 2.11 2.12

ofContentes

ContentPage No. 09 09 11 13 15 16 17 17 17 17 18 19 19 20 22 22 24 24 25 25 25 25 26 26 26 26 27 27 27 28

Introduction of Organization SWOT Analysis for LOPSPL Understanding of Strategic Frame Work Business Pressures Strategic Response HRM Factors Restructuring Of Organization Organize Training And Development Formulate HR Policies For R & D Improve Employee Brand Image Conclusion Introduction Little About TOC & Why The Area Of Teamwork Is Important For LOPSPL Team, Group & Teamwork Benefits Of Team Understanding Dynamics Of Team Teamwork Development Process Preparation To Form A Team Team Leader Selection Of Team Member Establish Purpose & Mission Statement Of Team Link The Purpose Of Team To Business Focus Prepare Project Plan & Define Team Members Role Establish The Process For Conducting The Meeting & Review Mechanism Threats Of Team Group Decision-Making Method Advantages & Disadvantages Of Group Decision Making Process Group Cohesiveness Trends In Industries Conclusion

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List of Tables, Figures & Annexure[A] List of Tables :Sr. 1 2 3 4 5 6 Table No. 1.1 1.2 1.3 2.1 2.2 2.3 Title of Table SWOT Analysis For LOPSPLFrame work for linking of Business Pressure to HRM factors through Strategic Response Export of Engineering Goods & Services During 2008-09 To 2009-10 Characteristics Of An Effective Team

Page No. 10-11 13 14 21 22 27

Actions From One Stage To Another Advantages & Disadvantages Of Group DecisionMaking Process

[B] List of Figures :Sr. 1 2 3 4 5 6 7 8 Fig. No. 1.1 1.2 1.3 1.4 1.5 2.1 2.2 2.3 Title of Figure Sales Growth Achieved Strategic FrameworkIndustrial Raw Material Index Export Market To Developed Country From China Increased The Framework of Strategic HRD

Tuckmans Team Development Model Model For Group Development Process Forming A Team

Page No. 09 12 13 14 16 23 24 25

[C] List of Annexures :Sr. 1 Annex. No. 1 Title of Annexure Annexure 1 (Organization Chart) Page No. 29

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Answer to question no. 1

1.1

Introduction of organization:- Laxmi Oil Pumps & Systems Pvt Ltd (henceforth referred as LOPSPL) is selected for the study which is a medium scale industry located in private industrial estate, having 15000 sq meter area within the Solapur city Municipal corporation limit. Earlier this unite was know as Laxmi Engineering works and was manufacturing centrifugal water pumps. In 2002 this partnership company was converted to private limited company (LOPSPL). LOPSPL is presently manufacturing Lubricating Oil Pumps & assemblies required for Diesel engine and compressor for circulating of lubricating oil. Since from the inception aggressive marketing and fast product development of new models kept the organization on increasing sales growth. Fig 1.1 gives the details of sales growth achieved over last few years.

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Fig. 1.1 : Sales Growth Achieved

1.2

SWOT analysis for LOPSPL was done in last year and submitted for the PMA (Business Strategy & Strategic Management) is given below in the Table no 1.1

External Factor Evaluation Matrix for LOPSPLOpportunities Sr Key Factors N o 1 Major customers are increasing their product range & market penetration 2 European manufacturers are looking for low cost manufacturing base Weigh t 0.06 0.08 Ratin g 3 4 Weighte d score 0.18 0.32

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Abolition of Octroi tax will reduce the cost Manufacturer other than automobile are looking for supplier for low volumes 5 New international Air port at Solapur is announced by Govt 6 New reforms were announced in labour laws, boost the contract workers 7 Increased budget allocation for infrastructure will boost the construction machinery 8 Estimated power generation shortage leads to increase demand of gen sets in local market 9 Reduction in average tariff rate will reduce the import cost of raw material 10 Indian currency becoming strong against $ makes import viable for machinery 11 low cost technology transfers are available Threats Sr Key Factors N o 1 Withdrawal of stimulation package by Central government 2 Abolition of octroi will take long time to actual implementation 3 Difficulty in getting quality casting supplier for low qty and desired price 4 Difficulty in getting quality gear supplier for low qty and desired price 5 China has low cost alternative for oil pumps 6 Increase in overall package of middle managers due to IT sector 7 Overall global recession affected Indian economy 8 Increased in minimum wages because of inflation 9 Power shortage will increase the cost op operation 10 Strong Indian currency reduces the cash realization 11 High rate of octroi tax on imported goods Total

3 4

0.02 0.04 0.02 0.02 0.06 0.06 0.02 0.02 0.08 Weigh t 0.02 0.04 0.1 0.08 0.06 0.04 0.04 0.06 0.04 0.02 0.02 1.00

2 1 1 1 4 2 2 2 4 Ratin g 2 1 4 4 2 3 4 2 2 1 2

0.04 0.04 0.02 0.02 0.24 0.12 0.04 0.04 0.32 Weighte d score 0.04 0.04 0.4 0.32 0.12 0.12 0.16 0.12 0.08 0.02 0.04 2.84

Internal Factor Evaluation Matrix for LOPSPL StrengthsPage 5

Sr N o

Key Factors

Weigh t

Ratin g

Weighte d score

Organisation has got vast experience in manufacturing 2 Expertise in quick product development Have "TOC" based strong culture adaptable to 3 any change Skilled work force available at reasonable good 4 price 5 Facilities are "Marin classification" approved Modern management techniques (lean 6 manufacturing , Six sigma etc) are well practiced Good vendor base is available to support 7 subcontracting activity 8 Being OE supplier marketing cost is less 9 Group company supports in case of emergencies 10 Established ERP supports strong MIS Weakness 1Sr N o Key Factors

0.1 0.08 0.08 0.04 0.03 0.04 0.04 0.06 0.02 0.04Weigh t

4 4 4 3 3 4 3 4 3 3Ratin g

0.4 0.32 0.32 0.12 0.09 0.16 0.12 0.24 0.06 0.12Weighte d score

Dose not have internal design department Facilities are suitable for batch production & 2 have limited capability to cope mass production 3 Old infrastructure gives bad first impression Conservative management view of family owned 4 business 5 Internal fund generation is limited 6 Material to sale ratio is increasing 7 Product realisation cycle is very high 8 Less inventory turns increases inventory cost Old workers not having modern skills are not 9 easily replaceable 10 Logistics is always problem due to low batch qty.Total Table 1.1 : SWOT Analysis For LOPSPL

1

0.1 0.05 0.07 0.06 0.04 0.04 0.02 0.03 0.02 0.041.00

1 1 1 1 2 2 2 2 2 2

0.1 0.05 0.07 0.06 0.08 0.08 0.04 0.06 0.04 0.082.61

(Source : From PMA Business Strategy & Strategy management)

1.3

Understanding of Strategic frame work:- Strategic planning plays an important role in the modern management of organization. In order to cope up with internal and external forces influencing the business, needs to be addressed thoroughly. According to Pawan Budhwar and Samuel Aryee [1], A classical strategic management process consists of a series of steps, starting from establishing

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a mission statement and key objectives for the organization; analyzing the external environment (to identify possible opportunities and threats); conducting an internal organizational analysis (to examine its strengths and weaknesses and the nature of current management systems, competencies and capabilities); setting specific goals; examining possible strategic choices / alternatives to achieve organizational objectives and goals; adoption / implementation of chosen choices; and regular evaluation of all the above. The first five steps consist of strategic planning and last two steps address implementation of strategic implementation process. It is always stated that organizations human resource development activities should be in line with the strategy of the organization. While defining the strategic human resource development (SHRM) Wright and McMahan [2] argue, We define strategic human resource management as the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals. Hence the linkage between the organizational goal and the activity in HRM has to be established through strategic HRM. While emphasizing this importance, Devanna, M.A., Fombrun, C. & Tichy, N., [3] states that, Organizations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage. The changes in the business environment with increasing globalization, changing demographics of the workforce, increased focus on profitability through growth, technological changes, intellectual capital and the never-ending changes that organizations are undergoing have led to increased importance of managing human resources The external forces like technology, economic & market forces are causing organizations to make the changes in their strategy as well as human resources management. Paul R Sparrow and Andrew M Pettigrew [4] had given frame work for establishing this relation ship and given in the fig 1.2

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Fig 1.2 : Strategic FrameworkSource : Adopted from Strategic Human Resource Management in the UK computer supplier industry (Sparrow & Pettigrew, 1998)

1.4

Business Pressures:- External business pressures influencing the present and future business of LOPSPL are listed in the first column of Table 1.2. Since last ten years increasing trend of raw material prices is playing the biggest role. Cast iron casting and steels are the major contributors.

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Table 1