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TRW - SHRM
Chitra
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CASE BACKGROUND
TRW Information Services Division
Will Sproule, Director Human Resources Knicely created three
strategy awards
OD methods went beyond team building
HR to have a seat in the management table
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Company Profile
Well Diversified Company
Automotives, Space, Defense and IS
IS earned mostly by acting as acredit reporting agency
Consumer Credit Reports
Direct marketing Lists
1980s profitable
Late 80s profits dwindle
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!!BAIL OUT
Cost Cutting measures initiated
Layoffs Occurred
Upper Level managers Shifted Company pushed to survival Mode
1993- The Turning Point
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SHRM IMPLEMENTATION
Align Business Objectives and Individual Goals- Bring
Synergy
Implementation Through Two Iterations
Performance Related pay
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Iterations
SHRM was implemented throughtwo iterations
In Iteration I four main objectivesidentified
5 management Priorities Identified
R&R
PMS
Training
Professional Development System
WorkForce Diversity
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ITERATION II
Results of the Iteration I werepositive as sales were
improving
Iteration II included the ITS division
SHRM is a continuous process
3 Preliminary Issues are
Performance Management
Alignment of Goals
The ability to use IT internally
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ANALYSIS
Cost Center vs. Profit Center
Employee Life Time Value
Performance based Pay Employee as a Stock
Quality of Life Orientation
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EMPLOYEE LIFETIME VALUE
Total value during stay = ELV
Employee Revenues EmployeeCost
Training Employees
PMS
Achieve Objectives
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PERFORMANCE BASED PAY
qLinking Pay to Performance
qSales Man = Two Options
qSmall basic Salary + High
Variable Pay
qHigher basic salary + Small
variable Pay
qEmployees Chose First Option
qReturn on Investment High
qBrings out 100% of the employees
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Employee as a stock
Employee is aLong TermInvestment
Human capitalalso liable forReturns
Positive ReturnsSpurred bySHRM
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Quality of life orientation
SHRM
qCos Promise Better
Quality of Life
qEmployees have to
Support to Fulfill promise
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CONCLUSION
qSHRM is a new dimension which affects the firms
performance
qTRWs Will Sproule implementation of SHRM spurs firms
profitsqGoal Congruency Improves employees Performance and
increases the profits
q
