HRD Strategies for long-term Planning & Growth

The major considerations in personnel policies concerning HRD strategies

for long term planning and growth in organisation are :

Recruitment of right personnel

Well-qualified and they must match with the respective corporate values

and philosophy of the Co's. For example: In Reliance Industries- entrepreneurship, risk

taking & the will to win- personal contacts is considered while recruiting for top

positions; In Hindustan Lever- the policy is to have promotions from within – they

emphasize on professionalism, convent-educated and sharp dressed candidates, toppers

from all IIMs and IIT'S; In Infosys Technologies- The criteria is to select candidates from

middle class communities– people brought up in traditional, conservative homes but who

have superior academic records, technical skills and ingrained capacity for hard work.

Written Tests are conducted to identify individuals with high learn-ability, both in terms

of willingness. They tend to eliminate over ambitions & competitive stars through the

interviewing process.

Development of Personnel

The Policy Issues involved are:

a) Determination of Training methods to be followed – on the job/off the job.

b) Intensity of Training – Level of employees, Frequency, resource persons, specific

training (job)

Operational Managerial

Conceptual Analytical

Skill skill

Training will be imparted through company's own training centres or

Training Institutes

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Motivation System

Factors:

Adequate Motivation

Analysis of motives

Simplicity

Uneven Motivation is given to encourage intelligent, ambitious & efficient

personnel

Incentive system could be either a) Monetary and/or b) Non-monetary

Retaining Personnel

Coercive Policies like entering into an agreement

Package for Long-term stay includes promotional avenues, increasing

financial incentives over the period of time, deferred payment of financial

benefit in the long-run, superannuating allowance or long-term stay

bonus(where benefits maybe forfeited if the employee leaves prematurely.

ESOS( Employee Stock Option Scheme)

ESPS ( Employee Stock Purchase Scheme)

Persuasion – by CEO or top executives

Personnel Mobility

Moving the personnel within the organization or outside--- in the form of

promotion, demotion, transfer, separation & deputation. Organizations have to provide a

policy framework for this.

Objectives

Right person at right job

Motivation for promotions through good performance.

Another issue is Separation- VRS/CRS

Deputation on new project in the same company

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Industrial Relations

Objectives

Safeguard interests of workers & management through mutual

understanding.

Avoid industrial conflicts & strikes.

To raise productivity to a level which satisfies both workers &

management

To overcome resistance to change- particularly those aspects which

directly affect workers like change in technology

Methods of building good industrial relations

Participation of workers

Negotiations in decision-making

Formulation of grievance handling procedures

Management's concern for worker's welfare

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Productivity & HRM

HRM Trends in a Dynamic environment – An HR manager has to balance

the demands & expectations of external environment with the internal needs and achieve

the assigned tasks in an efficient way.

The issues involved in extracting/enhancing Human Productivity are :

Internal Factors External Factors

Mission, Policies Technological Factors

Organizational Culture Economic

Organizational Structure Political

HR Systems Social

Local & Governmental Issues

Unions

Employer's Demands

Workforce Diversity

TQM

Total Quality Management is an approach to the art of management that

originated in Japanese industry in the 1950's and has become steadily more popular in the

West since the early 1980's.

Total Quality is a description of the culture, attitude and organization of a

company that aims to provide, and continue to provide, its customers with products and

services that satisfy their needs. The culture requires quality in all aspects of the

company's operations, with things being done right first time, and defects and waste

eradicated from operations.

Many companies have difficulties in implementing TQM. Surveys by

consulting firms have found that only 20-36% of companies that have undertaken TQM

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have achieved either significant or even tangible improvements in quality, productivity,

competitiveness or financial return. As a result many people are sceptical about TQM.

However, when you look at successful companies you find a much higher percentage of

successful TQM implementation.

Important aspects of TQM include customer-driven quality, top

management leadership and commitment, continuous improvement, fast response, actions

based on facts, employee participation, and a TQM culture.

Customer-driven quality

TQM has a customer-first orientation. The customer, not internal activities

and constraints, comes first. Customer satisfaction is seen as the company's highest

priority. The company believes it will only be successful if customers are satisfied. The

TQM company is sensitive to customer requirements and responds rapidly to them. In the

TQM context, `being sensitive to customer requirements' goes beyond defect and error

reduction, and merely meeting specifications or reducing customer complaints. The

concept of requirements is expanded to take in not only product and service attributes that

meet basic requirements, but also those that enhance and differentiate them for

competitive advantage.

Each part of the company is involved in Total Quality, operating as a

customer to some functions and as a supplier to others. The Engineering Department is a

supplier to downstream functions such as Manufacturing and Field Service, and has to

treat these internal customers with the same sensitivity and responsiveness as it would

external customers.

TQM leadership from top management

TQM is a way of life for a company. It has to be introduced and led by top

management. This is a key point. Attempts to implement TQM often fail because top

management doesn't lead and get committed - instead it delegates and pays lip service.

Commitment and personal involvement is required from top management in creating and

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deploying clear quality values and goals consistent with the objectives of the company,

and in creating and deploying well defined systems, methods and performance measures

for achieving those goals. These systems and methods guide all quality activities and

encourage participation by all employees. The development and use of performance

indicators is linked, directly or indirectly, to customer requirements and satisfaction, and

to management and employee remuneration.

Continuous improvement

Continuous improvement of all operations and activities is at the heart of

TQM. Once it is recognized that customer satisfaction can only be obtained by providing

a high-quality product, continuous improvement of the quality of the product is seen as

the only way to maintain a high level of customer satisfaction. As well as recognizing the

link between product quality and customer satisfaction, TQM also recognizes that

product quality is the result of process quality. As a result, there is a focus on continuous

improvement of the company's processes. This will lead to an improvement in process

quality. In turn this will lead to an improvement in product quality, and to an increase in

customer satisfaction. Improvement cycles are encouraged for all the company's activities

such as product development, use of EDM/PDM, and the way customer relationships are

managed. This implies that all activities include measurement and monitoring of cycle

time and responsiveness as a basis for seeking opportunities for improvement.

Elimination of waste is a major component of the continuous improvement

approach. There is also a strong emphasis on prevention rather than detection, and an

emphasis on quality at the design stage. The customer-driven approach helps to prevent

errors and achieve defect-free production. When problems do occur within the product

development process, they are generally discovered and resolved before they can get to

the next internal customer.

Fast response

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To achieve customer satisfaction, the company has to respond rapidly to

customer needs. This implies short product and service introduction cycles. These can be

achieved with customer-driven and process-oriented product development because the

resulting simplicity and efficiency greatly reduce the time involved. Simplicity is gained

through concurrent product and process development. Efficiencies are realized from the

elimination of non-value-adding effort such as re-design. The result is a dramatic

improvement in the elapsed time from product concept to first shipment.

Actions based on facts

The statistical analysis of engineering and manufacturing facts is an

important part of TQM. Facts and analysis provide the basis for planning, review and

performance tracking, improvement of operations, and comparison of performance with

competitors. The TQM approach is based on the use of objective data, and provides a

rational rather than an emotional basis for decision making. The statistical approach to

process management in both engineering and manufacturing recognizes that most

problems are system-related, and are not caused by particular employees. In practice, data

is collected and put in the hands of the people who are in the best position to analyze it

and then take the appropriate action to reduce costs and prevent non-conformance.

Usually these people are not managers but workers in the process. If the right information

is not available, then the analysis, whether it be of shop floor data, or engineering test

results, can't take place, errors can't be identified, and so errors can't be corrected.

Employee participation

A successful TQM environment requires a committed and well-trained

work force that participates fully in quality improvement activities. Such participation is

reinforced by reward and recognition systems which emphasize the achievement of

quality objectives. On-going education and training of all employees supports the drive

for quality. Employees are encouraged to take more responsibility, communicate more

effectively, act creatively, and innovate. As people behave the way they are measured and

remunerated, TQM links remuneration to customer satisfaction metrics.

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A TQM culture

It's not easy to introduce TQM. An open, cooperative culture has to be

created by management. Employees have to be made to feel that they are responsible for

customer satisfaction. They are not going to feel this if they are excluded from the

development of visions, strategies, and plans. It's important they participate in these

activities. They are unlikely to behave in a responsible way if they see management

behaving irresponsibly - saying one thing and doing the opposite.

Product development in a TQM environment

Product development in a TQM environment is very different to product

development in a non-TQM environment. Without a TQM approach, product

development is usually carried on in a conflictual atmosphere where each department acts

independently. Short-term results drive behavior so scrap, changes, work-arounds, waste,

and rework are normal practice. Management focuses on supervising individuals, and

fire-fighting is necessary and rewarded.

Product development in a TQM environment is customer-driven and

focused on quality. Teams are process-oriented, and interact with their internal customers

to deliver the required results. Management's focus is on controlling the overall process,

and rewarding teamwork.

Summary

Doing it right 1st time

Customer centric- Philips, TELCO, BHEL, Pidilite

Continuous Improvement a way of life

Build Team work & Empowerment

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***Race without finishing line (TQM is a never-ending activity)

Benchmarking

Benchmarking (also "best practice benchmarking" or "process

benchmarking") is a process used in management and particularly strategic management,

in which organizations evaluate various aspects of their processes in relation to best

practice, usually within their own sector. This then allows organizations to develop plans

on how to adopt such best practice, usually with the aim of increasing some aspect of

performance. Benchmarking may be a one-off event, but is often treated as a continuous

process in which organizations continually seek to challenge their practices.

A process similar to benchmarking is also used in technical product testing

and in land surveying.

Advantages of benchmarking

Benchmarking is a powerful management tool because it overcomes

"paradigm blindness." Paradigm Blindness can be summed up as the mode of thinking,

"The way we do it is the best because this is the way we've always done it."

Benchmarking opens organizations to new methods, ideas and tools to improve their

effectiveness. It helps crack through resistance to change by demonstrating other methods

of solving problems than the one currently employed, and demonstrating that they work,

because they are being used by others.

Types Of Benchmarking

Competitive benchmarking

Some authors call benchmarking "best practices benchmarking" or

"process benchmarking". This is to distinguish it from what they call "competitive

benchmarking". Competitive benchmarking is used in competitor analysis. When

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researching your direct competitors you also research the best company in the industry

(even if it serves a different location).

Collaborative benchmarking

Benchmarking, originally invented as a formal process by Rank Xerox, is

usually carried out by individual companies. Sometimes it may be carried out

collaboratively by groups of companies (eg subsidiaries of a multinational in different

countries). One example is that of the Dutch municipally-owned water supply companies,

which have carried out a voluntary collaborative benchmarking process since 1997

through their industry association.

Procedure

Identify your problem areas - Because benchmarking can be applied to

any business process or function, a range of research techniques may be

required. They include: informal conversations with customers,

employees, or suppliers; exploratory research techniques such as focus

groups; or in-depth marketing research, quantitative research, surveys,

questionnaires, reengineering analysis, process mapping, quality control

variance reports, or financial ratio analysis.

Identify organizations that are leaders in these areas - Look for the very

best in any industry and in any country. Consult customers, suppliers,

financial analysts, trade associations, and magazines to determine which

companies are worthy of study.

Survey companies for measures and practices - Companies target specific

business processes using detailed surveys of measures and practices used

to identify business process alternatives and leading companies. Surveys

are typically masked to protect confidential data by neutral associations

and consultants.

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Visit the "best practice" companies to identify leading edge practices -

Companies typically agree to mutually exchange information beneficial to

all parties in a benchmarking group and share the results within the group.

Implement new and improved business practices - Take the leading edge

practices and develop implementation plans which include identification

of specific opportunities, funding the project and selling the ideas to the

organization for the purpose of gaining demonstrated value from the

process.

Summary

Competitive benchmarking is the first requirement to effective TQM

Striving to be the best of the best in one's area of operations.

It aims at continuous improvements.

Complacency may be suicidal

It is a measurement of gaps between the practices of two companies so as to

uncover significant differences.

It can be applied to products, services, practices, processes and methods.

Therefore, Benchmarking is a systematic investigation, a fruitful learning

experience which ensures that the best of industry practices are uncovered,

analyzed, adopted and implemented.

The objective of benchmarking is to meet rising expectations of customers in

their respective areas.

Re-engineering Work Processes

When organisations require a drastic, quantum change in order to survive

a fiercely competitive market, the managers have to search for solutions elsewhere,

beyond TQM and Benchmarking.

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Re-engineering takes place when more than 70% of the work processes in

the organisation are evaluated & altered. It demands organizational members to rethink

what work shall be done, how it should be done, and how best to implement these

decisions. The focus is on simplifying the operations and making them more efficient and

more customer focused.

Re-engineering TQM

Looks for quantum leaps in performance Seeks incremental improvements

Driven by top management when it is

complete , work place is self-managed

Relies on bottom-up participative decision-

making in both planning & execution of

TQM programme.

There is a risk that the employee may

continue to be with the organisation or not.

There is no immediate & sudden risk to the

employee.

Key elements:

“Start with a clean piece of paper” (Start afresh & encourage

brainstorming)

Identify distinctive competencies.

Assess core processes.

Reorganize around Horizontal Processes.

e.g. TISCO, TELCO, L&T, Ranbaxy & Crompton Greeves.

Commandments of Re-engineering

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

Either serve the customer superbly or don't even try.

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

Technology is never really a problem, but the problem is how to use

technology effectively.

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

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The weak link in engineering is Willingness.

Once people catch on to Re-engineering, you cannot hold them back. It is a

lifetime opportunity.

Flexible Manufacturing System

A flexible manufacturing system (FMS) is a manufacturing system in

which there is some amount of flexibility which allows the system to react in the case of

changes, whether predicted or unpredicted. This flexibility is generally considered to fall

into two categories, within which are numerous other subcategories.

The first category, machine flexibility, covers the system's ability to be

changed to produce new product types, and ability to change the order of operations

executed on a part.

The second category of flexibility within an FMS is called routing

flexibility, which consists of the ability to use multiple machines to perform the same

operation on a part, as well as the system's ability to absorb large-scale changes, such as

in volume, capacity, or capability.

The whole FMS is commonly controlled by a central computer. The main

advantages of a FMS is its high flexibility in managing manufacturing resourses like time

and effort in order to manufacture a new product.

The best application of a FMS is found in production of small sets of

products that are likely but not equal that those from a mass production, otherwise

production cost of small sets of products will cost a lot in relation with mass production

cost.

Advantages and disadvantages of FMSs implementation

Advantages

Faster, lower- cost changes from one part to another which will improve

capital utilization

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Lower direct labor cost, due to the reduction in number of workers

Reduced inventory, due to the planning and programming precision

Consistent and better quality, due to the automated control

Lower cost/unit of output, due to the greater productivity using the same

number of workers

Savings from the indirect labor, from reduced errors, rework, repairs and

rejects

Disadvantages

Limited ability to adapt to changes in product or product mix (ex. machines

are of limited capacity and the tooling necessary for products, even of the

same family, is not always feasible in a given FMS)

Substantial pre-planning activity

Expensive, costing millions of dollars

Technological problems of exact component positioning and precise timing

necessary to process a component

Summary

It is the ability of computerized machines to perform a variety of programmed

functions. It is the integration of computer-aided design, engineering &

manufacturing to produce low volume products at mass production costs.

FMS requires fewer employees, but employees with more training and higher

skills.

Each one is required to do a greater variety of task.

They are supposed to keep away from inter-departmental competition, conflict

& politics & get along with other members as teammates.

Cross-functional Team Work is required in factories, where engineers have to

design products by working hand-in-hand with market research &

manufacturing specialists.

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Use of robots and less people.

Six Sigma

Chances are you've heard of Six Sigma, perhaps in connection with

General Electric, the company that made it popular in the 1990s. You may even know

that Six Sigma uses statistical techniques to improve processes in both manufacturing and

service industries. But did you know there is an important role for Human Resources

(HR) in this sophisticated process improvement approach? Or that Six Sigma initiatives

are unlikely to succeed without HR's help?

HR professionals with the right skills can contribute to a Six Sigma

initiative at both strategic and tactical levels. This article describes the areas in which HR

should play a role in Six Sigma and discusses how HR professionals can increase their

chances of being included in Six Sigma decision-making and implementation.

To appreciate the important role HR has in Six Sigma, it is important to

begin this discussion by having an understanding of what Six Sigma is, all the roles

played by others in a Six Sigma implementation, and the factors critical to a successful

implementation.

Six Sigma Defined

The term "Six Sigma" is widely used to refer to all of the following:

A structured method for improving business processes. This method,

called DMAIC (define, measure, analyze, improve, and control), is supported by an

assortment of statistical tools.

A statistical measurement of how well a business process is performing. A

process that performs at "Six Sigma" produces only 3.4 defects out of every million

opportunities to produce a defect. Processes that perform at lower sigma levels (such as

one sigma or four sigma) produce more defects per million opportunities. It is possible

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for a process to perform at an even higher level (and thus have even fewer defects), but

Six Sigma has become popular as the standard for excellent process performance.

An organizational mindset in which people make decisions based on data,

look for root causes of problems, define defects based on customer rather than internal

requirements, seek to control variation, track leading indicators of problems to prevent

them from happening, etc.

Six Sigma Roles

Six Sigma has a martial arts convention for naming many of its

professional roles. The chart below describes how these roles are typically defined.

Table 1: Six Sigma Roles And Responsibilities

 Sponsor Senior executive who sponsors the overall Six Sigma Initiative.

 LeaderSenior-level executive who is responsible for implementing Six Sigma within the business.

 ChampionMiddle- or senior-level executive who sponsors a specific Six Sigma project, ensuring that resources are available and cross-functional issues are resolved.

 Black BeltFull-time professional who acts as a team leader on Six Sigma projects. Typically has four to five weeks of classroom training in methods, statistical tools, and (sometimes) team skills.

 Master Black Belt

Highly experienced and successful Black Belt who has managed several projects and is an expert in Six Sigma methods/tools. Responsible for coaching/mentoring/training Black Belts and for helping the Six Sigma leader and Champions keep the initiative on track.

 Green BeltPart-time professional who participates on a Black Belt project team or leads smaller projects. Typically has two weeks of classroom training in methods and basic statistical tools.

 Team MemberProfessional who has general awareness of Six Sigma (through no formal training) and who brings relevant experience or expertise to a particular project.

 Process OwnerProfessional responsible for the business process that is the target of a Six Sigma project.

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HR's Role in Six Sigma

As with any major organizational initiative, many factors contribute to

success. Some of these factors will fall within HR's area of responsibility, such as those

discussed below.

Black Belt Selection and Retention

Having the right people in the Black Belt role is critical to the success of a

Six Sigma initiative. The training investment is substantial for this pivotal role. Further,

Black Belts are the visible "face" of Six Sigma. They help shape the organization's

impression of Six Sigma, and, consequently, the willingness of many to embrace the

initiative. Therefore, you want to pick Black Belts very carefully. (Some organizations

only select Black Belts from among those who have already been identified as "high

potentials.").

HR professionals can help the Six Sigma Leader find the right people for

Black Belt roles and ensure they remain in those positions for the typical two-year

rotation. Potential HR contributions in this area include:

Building a competency model that will help identify candidates with the

right mix of technical, team, and leadership skills and abilities.

Creating job descriptions that help candidates fully understand the position

and expectations prior to signing on.

Developing a retention strategy that will help ensure Black Belts complete

their rotation and the organization recoups its investment in training and development.

Rewards and Recognition

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Rewarding and recognizing Black Belts and Six Sigma teams is more

complex than it may appear. Black Belts join the Six Sigma initiative from various places

in the organization where they are likely to have been at different job levels with

differing compensation arrangements. Determining whether and how to make appropriate

adjustments in level and compensation now that all these individuals are in the same role

is both tricky and critical.

Similar complexities are involved at the project team level. Six Sigma

projects led by Black Belts typically result in savings in the hundreds of thousands of

dollars. Deciding how the team should be rewarded and recognized and who should get

credit for what is not easy. Yet ignoring these issues can result in resentment, reluctance

to work on Six Sigma projects, and the potential failure of the overall initiative.

HR professionals can help the Six Sigma Leader tackle the challenge of

establishing the right rewards/recognition. Potential HR contributions in this area include:

Analyzing existing compensation arrangements to identify the extent to

which those arrangements will support the Six Sigma initiative.

Creating a strategic compensation plan that will better support Six

Sigma.

Developing a non-monetary reward program for Six Sigma teams.

Project Team Effectiveness

The work of Six Sigma is done mostly at the project team level by a Black

Belt leading a small team through the steps of the DMAIC method. If the team itself does

not function well or does not interact effectively with others in the organization who

ultimately have to support and carry out the process changes, the project probably will

not be successful. Given the typical project's potential payback, failure can be expensive.

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HR professionals can help the project teams work together more

effectively. Potential HR contributions in this area include:

Ensuring team leaders and members get training and/or coaching in

teamwork, conflict management, communications, dealing with difficult team

members, and other team effectiveness skills.

Providing teams with tools that allow them to diagnose their own performance

and identify when and where they need help.

Acting as a resource for Black Belts who encounter team-related challenges

they cannot surmount.

Creating a Six Sigma Culture

Many Sponsors, Champions, and Leaders look to Six Sigma as a way to

change an organization's culture to one that is more data-driven, proactive, decisive, and

customer-oriented. But they often have little idea about how to achieve successful culture

change.

HR professionals can help executives approach culture change in a way

that addresses the underlying business goals without creating organizational resistance.

Potential HR contributions in this area include:

Working with Six Sigma Sponsors, Leaders, and Champions to identify

elements of the culture that might hinder the achievement of Six Sigma goals. Advising

on change plans that will target those specific cultural elements. Identifying how Six

Sigma can be rolled out in a way that works with, rather than against, the current culture.

Change Management and Communications

Introducing Six Sigma into an organization is a major change that will

have a profound effect on a broad group of stakeholders. Managers and employees at

many levels of the organization will be asked to engage in new behaviors. In many cases,

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those leading other initiatives will see Six Sigma as a source of competition for resources,

executive attention, and organizational power. Others may see it as an indictment of their

past performance. Many will be confused about how Six Sigma fits with the large

number of other ongoing organizational initiatives.

HR professionals can help reduce the uncertainty and anxiety surrounding

Six Sigma and increase the levels of acceptance and cooperation in the organization.

Potential HR contributions in this area include:

Drafting a change management/ communications plan that addresses the

people side of the Six Sigma rollout.

Economic Challenges

External Environmental factors.

Globalisation

Political factors:

Social factors: Unions.

Local & Governmental factors: Legal through multi-cultural organization

(managing diversity)

Work-force Diversity

It implies the composition of employees in terms of diversity as regards

age, gender, ethnicity, and education.

Organizations are becoming more heterogeneous in terms of age, gender, race,

ethnicity.

Young, skilled & knowledgeable workforce

Not fascinated by secure, less paying, routine & standard job (s) offered by

Public Sector.

Private Enterprises offers good attraction.

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Old employees are growing in number due to improved medical & health

care---their expertise & experience; talent can be utilized to develop new

ventures.

Attracting & retaining young brains is a challenge for HR managers.

So organization (s) need to institute appropriate HR policies, supported by

attractive compensation offers.

Diversity Issues in Indian companies are somewhat peculiar owing to

differences in social ethos, religious origins, cultural differences & regional

origins plus constitutional provisions give preferential treatment to certain

sections of the society.

HR managers have to deal with issues of Child Labour, Women at Work,

Specially-abled people, etc.

Changes in Employee Roles & Values----emphasize on Quality of Life,

Equity & Justice, and Pluralism & Diversity over uniformity & centralism,

Participation over authority, Personal convictions over dogmas, individual

over organization.

Level of Education & Awareness---change in attitudes---retaining these

people (Knowledge Workers) challenged and satisfied demands more

responsibility & autonomy on the part of the HR manager & organization.

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Bibliography

Human Resource Management And Personnel Management – Aswathappa

Organizational Behaviour- Stephen Robbins

Organisation Behaviour- Fred Luthans

www.wikipedia.org

www.google.com

www.hrresources.com

www.managementmentor.com

www.esinps.com

www.managementparadise.com

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Case Study Related To HIV Aids Employee

Facts of the case

Chemtech India Limited- A Chemical Firm

Employees – 1500

Mainly in a Manufacturing Company

Little accent on marketing

Change in the government policy resulted in increased competition

There was need for aggressive marketing by the company

Company decided to recruit one sales executive

Mr.Aparojit Das is the VP-HRD and is responsible for hiring interviews

Two candidates are shortlisted and they are from same company

First candidate- Mr.Premsager – He is working with Chemtech for last 5 years

Second candidate- Mr.Devejeet- He is working with the same company for

last one year.Solution Give promotion to Mr. Premsagar from long term

point of view and Mr.Devejeet should be given proper increment in order to

keep him motivated.

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