Finale 123

Managing Environment in Human Resource
Introduction to HRM
Employees are the most important assets of an organization. In todays competitive global business environment, hiring good professionals have become not only a difficult but an expensive process as well. Training them about the values and skills they need to succeed, ensuring they understand the organization's mission and strategy, and keeping them productive is the most important priority of any management institution.
Human Resource Management
involves recruiting personnel and their training, salary administration and handling union management relations. Because of such a dynamic scope in any
organization, or Personnel
management
Human
Resource
Management
surfaced as a lucrative career option for those qualified in managing resources organization. Every composed organization of people is and the for human any
utilizing their services, developing their skills, motivating them to enhance their levels of performance and ensuring that they remain committed to the organization are essential for the accomplishment of organizational objectives. This is true for all types of organizations - government, business, education, health, recreation or social action. Organizations that can do this will be both effective as well as efficient. Inefficient or ineffective organizations face the danger of stagnating or going out of business. The emphasis on proper and effective Human Resource
Management has increased in the recent times. It has come to be identified as an important factor in the successful management of an organization. With the growing importance of knowledge workers to organizations and the
Page | 1

rising expectations of employees, it is essential to have a good human resource management system in place. It is also important that all the different processes in an organization, like finance, HRM, marketing and operations align their objectives and strategies to those of the organization and work in harmony with each other.
Human Resource Management (HRM) consists essentially of four functions acquiring, developing, motivating and retaining human resources. The acquisition function starts with planning for the number and categories of employees required, and end with staffing. The development function has three dimensions employee training, management development, and career development.
The motivation function includes identifying the individual motivational needs of employees and finding ways to motivate them. The retention function is concerned with providing a conducive work environment to the employees and nurturing them to make them feel committed and attached to the organization. Traditional approaches to personnel management emphasize command and control. These have now given way to new approaches characterized by greater freedom and support to the employees. Many successful companies today empower their employees to manage most aspects of their work.
Though an organizations physical assets are major factors in determining its success, it is now believed that its employees or human resources are equally critical assets. The successful management of an organizations human resources is an exciting and dynamic task, especially at a time of increasing competition, when companies are facing newer and more complex challenges.
Page | 2
Development of HRM
Awareness regarding HRM was felt during the industrial revolution around 1850 in Western Europe and U.S.A. Only during the beginning of 20th century, it was felt in India. Since then, to the present era. The development of HRM may be classified as follows:
Trade Union Movement Era
The conditions of workers in the aftermath of factory system as an outcome of industrial revolution were very pathetic. The First World War worsened the situation. The Royal Commission of Labour in India in 1911, under the chairmanship of J.H. whitely, recommended the abolition of the Jobber system and the appointment of labour officers in industrial enterprise to perform the recruitment function as well as to settle workers grievance. Workers also started forming trade unions. The Trade Union Act, 1926 was passed in India. The basic object underlying trade union was to safeguard the workers interest and to sort out of their problems such as use of child labour, long hours of work and poor working conditions. These unions used strikes, slowdowns, walkouts, picketing, as weapons for the acceptance of their problems. These activities of trade unions gave rise to personnel practices such as collective bargaining, grievance handling system, arbitration, disciplinary practices, employee benefit programs and sound wage structure.
Social Responsibility Era
In the beginning of 20th century, some factory owners, employers started showing humanistic approach towards the workers. Robert Owen, a British
Page | 3

industrialist, reformer and humanitarian is considered to be the first to adopt humanistic approach towards workers. He viewed that the principal social and economic environments influence the physical, mental and psychological development of workers. Hence he felt that to improve the productivity, it is necessary to improve conditions of employees by removing them from the adverse environment to a congenial atmosphere with the availability of satisfactory living and working conditions. The philosophy in Owens patriatic approach was that workers are just like children and the owner is just like a father. Therefore the owner should take care of the workers, just like a father looks after his children. Owen himself implemented this philosophy in his cotton mill in Scotland by introducing facilities such as shower baths, toilets, rest rooms and increased minimum wages and housing scheme.
Scientific Management Era
The concept of scientific management was introduced by F.W.Taylor in the USA in the early part of 20th century as on alternative to the prevailing system of management by initiative and incentive based on his shop floor job experience. Taylor developed four principles of scientific management 1. Development and use of scientific methods in setting work standards, determining a fair day, work, and best way of doing work. 2. Scientific selection and placement of workers best suited to perform the various tasks and provision of their training and development for maximum efficiency. 3. Clear cut division of work and responsibility between management and workers.
Page | 4

4. Harmonious relationship and close cooperation with workers to achieve performance of work in accordance with the planned jobs and tasks. In the scientific theory, Taylor viewed men and workers as one driven by fear of hunger and search for profit. Accordingly, if economic reward is tied up with the efforts put on the job, the worker will respond with his maximum physical capability. Taylor also developed several techniques to introduce his scientific ideas in management. They were i. Time study to measure the time taken to each job and each operation and to standardize the operations of the job. ii. Motion study to study body movements in workplace and to reduce wasteful motions. iii. Standardization of tools, equipments, machinery and working condition. iv. Incentives wage plan with differential piece rate for efficient and inefficient workers.
Human Relations Era
During the years 1925 to 1935, experts expressed their opinions towards the human aspects of organisation activities. Hugo Munsterberg in his book, Psychology and Industrial Efficiency, suggested the use of psychology in selection, placement, testing and training of employees in an organisation. Elton Mayo and his associates conducted a series of experiments from 1924 to 1932 of the Hawthone plant of the Western Electric Company in the USA. The main findings of Hawthorne Experiments were as follows:
Page | 5

i. Physical environments at the work place do not have any material impact on the efficiency of work. ii. Favorable attitudes of workers and psychological needs had a beneficial impact on the morale and efficiency of workman. iii. Fulfillment of the workers social and psychological needs had a beneficial impact on the morale and efficiency of workmen. iv. Employee groups based on social interactions and common interests exercised a strong influence on workers performance. v. Workers cannot be motivated solely by economic rewards. More important motivators are job security, recognition, right to express their opinion on matters related to them. The findings have stated that the relationship between the superiors and subordinates should relate to social and psychological satisfaction of the employees. Employee, satisfaction is the best means of making the employee productive.
Behavioral Science Era
Important elements of behavioral approach to HRM are as follows: i. Individual behavior is linked with the group behavior. For example, a person may resist changing his behavior as an individual. But he or she will readily do so if the group to which he or she belongs, decides to change its behavior. ii. Informed leadership rather than the formal leadership of manager is more effective in influencing people to achieve standards of performance. According to their view, democratic leadership style of the manager is more acceptable to the subordinates and hence more effective.
Page | 6

iii. By nature, people do not dislike work. Most people enjoy work and one is motivated by self control and self development. In fact job itself is a source of motivation and satisfaction to employee. Expanding subordinate influence, self control and self direction can improve operating efficiency.
Systems Approach Era
A system may be defined as a set of interdependent parts forming an organized unit or entity. The system is defined as an organized and complex whole: an assemblage or combination of things or parts forming a complex unitary whole. The parts, also known as sub-systems, interact with each other and are subject to change. These subsystems are inter-related and inter dependant. Three broad sub-systems are i) Technical sub-system - The formal relationships among the members of an organisation ii) Social sub system - Social satisfaction to the members through informal group relations. iii) Power sub systems - Exercise of power or influence by individual or group. The system approaches is characterized by the following features: a. A system is a group of inter related elements which are separate entities / units. b. All the elements are inter related in an orderly manner. c. There is the need for proper and timely communication to facilitate interaction between the elements. d. The interaction between the elements should lead to achieve some common goal.
Page | 7

At the heart of the systems approach is a Management Information System (MIS) and communication network for collection, analysis and flow of information to facilitate the function of planning and control. Modern thinkers consider HRM as a system that integrates activities with an objective to make the best use of resources which are always scarce.
Contingency Approach Era
Contingency Refers To The Immediate Circumstances. Contingency Approach Believes That There Is No One Way Of Managing That Works Best In All Situations. According To This Approach, The Best Way To Manage Varies With The Situation. Hence This Approach Is Called As Situational Approach. There May Not Be One Universal Way Of Managing In All Situations. A Particular Approach May Yield Fruitful Results In One Situation But May Drastically Fail In Other Situation. Therefore Managers Are To Analyze Different Situations And Then Use The Best Approach Suitable In That Particular Situation.
Page | 8
The Art of Managing People

ONE of the most defining factors for a successful career is finding the right job fit and work culture. The right job fit involves a whole gamut of other issues as well, such as compensation, job profile, perks, the human resource policy, employee benefits, career progression etc. One of the key departments involved in the process is the Human Resource Department. Human Resource Management involves researching and addressing staffing needs, hiring and training the best employees, and making sure that these employees turn out to be outstanding performers. It also includes dealing with performance issues and ensuring your personnel and management practices conform to various regulations. In short, Human Resources are a resource, which is of immeasurable value for an organization. The Human Resource Department is entrusted with the vital function of keeping employees happy and thus assisting in enhancing the productivity of the company. For instance, productivityboosting policies such as flexi-time, ESOPs, performance pay, personalized training for employees; 360-degree appraisals, etc are some of the trends that are fast catching on with most organizations.
Careering into HR
Any organization with manpower as its chief capital is a treasure trove of talent. It is the human resource department, which acts as the key to unlock, identify, develop, tailor and utilize employee skills and talents to further individual as well as organizational goals. The chief functions of the human resource department are recruitment, training and development, change management, salary and benefits, industrial and employee relations and performance appraisals.
Page | 9
The HR department therefore aids: In planning, drafting, and implementing policies, rules and procedures regarding recruitment, promotions, benefits, retrenchment, conducting exit interviews, rehiring and firing, etc. In planning, organizing, and conducting inductions, orientation programmes, refresher and training & development programmes and seminars. The management in taking key decisions, and help them utilize and maximize the in house pool of talent. In recruitment and selection, the human resource department devises and frames policies to recruit the best-suited personnel for the requisite departments. They screen shortlist, interview and select probable candidates for the relevant posts. In training, they map employee and management needs, and conduct the necessary workshops to upgrade skills, identify latent talents and provide the necessary training. The Human Resource Department also monitors and enables promotions and transfers. They act as links between the management and the employees. They keep employees informed of the happenings in the organization. Maintaining employee relations are a key aspect in Human Resource Management. Boosting and motivating employees to perform well is also a part of the human resource personnel's schedule. Human Resource Personnel help solve disputes and conflicts between the management and employee unions/employees. Through counseling, they also help redress employee grievances and help them map their professional growth in the organization. They also deal with employee reallocation.
Qualifications
As one of the more popular study options, there are various courses available in Human Resources, ranging from a diploma to a postgraduate degree. Some of the better-known institutes are National Institute of
Page | 10

Human Resource Development, Academy of Human Resources Management, Administrative Staff College of India and the IIMs. Institutes such as the Bharatiya Vidya Bhavan also offer a diploma in industrial relations and personnel management. However, an MBA ( HR and personnel management) is usually the first requirement to carve a career in HR. Other qualifications or experience in fields such as social work etc are also considered. Knowledge of industrial and labour law is essential.
Growth and remuneration
The hierarchical growth pattern in the human resource department is similar to other departments in an organization. The hierarchical growth pattern begins as Executives / Management Trainees, who can later man posts of a Manager / Asst Manager, General Manager HR/personnel/ I.R. /Admn and Director HR / Vice President HR. Compensation are location, industry and institute specific. However as a beginner one can expect an initial monthly salary that ranges from a minimum of Rs.8, 000 to 15,000.
Career clues
Managing human resources is an art and skill that can be acquired. Most aspirants wishing to make it big in HR have relatively no idea how important some very simple skills can be: i. ii. iii. iv. Compatible skills to the job (right employee for the right job) Ability to hit the ground running Multi tasking, high energy levels and excellent inter - personal skills Effective communication skills and ability to be a team player
Page | 11

v. vi. vii. viii. ix. A positive attitude and a burning desire to learn more and grow People oriented High levels of empathy Willingness to learn Not be tempted to misuse power over people Additionally, technological awareness is important in the present day setup. Therefore, knowledge of the latest software packages (MS word 2001, MIS, etc) comes handy. Problem solving and conflict resolution are the most important skills to possess. Good Human Resource Personnel must be knowledgeable about labour and industrial laws, and their application in the workplace.
The future
Human resource management is fast becoming as enduring a field as banking. Research, education and teaching, consultancy, and even public relations are other employment avenues. HR personnel can be partners in business, taking strategic business decisions along with the top management to ensure optimum utilization of the human resource talent. For a person passionate about HR, recognizing young talent, nurturing it and seeing it grow, training and developing individuals, counseling, guiding and appraising the performance and deciding compensation reviews etc, are more than just perks.
Page | 12
EEmerging Trends in Managing Human Resources

If we trace back the history of business environment, in the early years, trading patterns and markets were stable, technology was static, customers were passive, speed in getting to market was secondary, competition was limited to sectors and regions, and hierarchies were generally accepted in all walks of life. No more, since 1960s, America and much of the rest of the world has been almost continually buffeted by change. Customers demand that businesses do it better, faster, cheaper; employees want to control more than the Stop button on the assembly line.
Page | 13

The twentieth century saw nations around the world become part of the global village, with trade barriers between them reduced or removed completely. Globalization of trade and economy are taking deep roots in India. The holistic paradigm shift to a single global company has opened up new economic opportunities. Events of the last five years of the previous century have focused our attention on knowledge industries. Quality human resources have therefore become an important base with which to respond to the emerging environment. The knowledge workforce in particular has a vital role to play in the emergence of the digital economy. A look at the trends in managing people in this dynamic industry reflects that Attracting, Managing, Nurturing talent and Retaining people has emerged to be the single most critical issue in lieu of the enormous opportunities spun off by the market. The new avatar of talent is the knowledge professional who is innovative, business savvy, quick on the uptake, has an instinctive ability to network, and possessing unbridled ambition. They are propelled by an urge to experiment, scan new avenues that can spur their creativity. The knowledge professional will gravitate to an organization that is flexible, has strong values, a robust performance ethic and provides challenging work on latest technology. This has led to companies proactively taking measures on three fronts. First, companies create an organizational ambience where talent can bloom. Second, they put in place systems that help unleash their potential and third, they build a reward and recognition mechanism that provides value for people. Profound systemic changes have been seen in the way companies are structured. The concepts of leadership and managing people gave undergone a radical rethink. Cubicles, hierarchies and rigid organization structures of the past, have now given way to open work environment, flat structure with informality being a general rule and empowerment of
Page | 14

individuals. Today work itself is centered around projects, which have virtual teams working on them. This work structure has led to a culture of flexi time, round the clock accessibility to the workplace. Also catching up fast is the trend of workstations at home, remote access, video-conferencing and reporting by exception. To stay one step ahead of the aspirations of their people, companies are continuously striving to provide an intellectually stimulating environment. Few examples being, in-house libraries, continuous up gradation of knowledge and skills, knowledge sharing, building relationships with academia thus enabling knowledge workers to pursue multiple careers within a single company. Coming times will see sabbaticals forming part of the organization culture, corporate universities dotting the new horizon, competing companies bunching together to setup knowledge networks.
Companies today are constantly striving towards enhancing the quality of work life and also the personal life of its employees and this does not stop with the employee buts gets extended to his / her family as well. In-house health clubs, yoga and meditation centers to relieve stress, sports and cultural activities, employee get-togethers with invitations to come over with families, day care centers and many of the like are being provided by companies. With the increasing size of the companies, the top down communication model of yesteryears has been replaced by bottom up, cross level communication thereby encouraging people to voice their opinions and feelings. Open house sessions, mentoring, online chats on the intranet have emerged to be the communication enablers. The new economy has given rise to a culture of working in teams. Today no job in the knowledge industry can be performed in isolation. Since working in teams is not a passing fad, companies are now designing compensation structures, which reward team performance in addition to
Page | 15

individual performance. To conclude, change is here to stay, and we need to understand that all the practices that are working today may not necessarily work tomorrow. Customers expectations, market changes and strategic decisions will derive the tools to managing the human assets.
Page | 16
Top 5 HR Challenges for Indian Organizations

- A Current Perspective
Clearly HR departments are evolving in our country. From an administrative perspective, the focus is now on a strategic outlook where talent HR professionals look at improving the work environment and plan out human resource needs. Though it is a reflection of what is happening in the western context, the Indian work force and industrial climate is changing. This short article looks at five major challenges that we facing in terms of human resources and human resource management.
Managing Knowledge Workers

Essentially, here we are looking at different kind of people who does not obey the principles of management for the traditional group. This boils down to higher educational qualifications, taking up responsibilities at a lesser age and experience, high bargaining power due to the knowledge and skills in hand, high demand for the knowledge workers, and techno suaveness. The clear shift is seen in terms of organization career commitment to individualized career management. Managing this set of people is essential for the growth of any industry but especially the IT, BPOs and other knowledge based sectors.
Managing Technological Challenges

In every arena organizations are getting more and more
technologically oriented. Though it is not in the main run after the initial debates, preparing the work force to accept technological
Page | 17

changes is a major challenge. We have seen sectors like banking undergoing revolutionary changes enabled by technology. It is a huge challenge to bring in IT and other technology acceptance all levels in organizations.
Competence of HR Managers
As it is more and more accepted that lot of success of organizations depend on the human capital, this boils to recruiting the best, managing the best and retaining the best. Clearly HR managers have a role in this process. Often it is discussed about lack of competence of HR managers in understanding the business imperative. There is now a need to develop competent HR professionals who are sound in HR Management practices with strong business knowledge.
Developing Leadership
It is quite interesting to note that there is less importance given to developing leadership at the organizational level. Though leadership is discussed on basis of traits and certain qualities, at an organizational level it is more based on knowledge. The challenge is to develop individuals who have performance potential on basis of past record and knowledge based expertise in to business leaders by imparting them with the necessary "soft skills".
Managing Change
Business environment in India is volatile. There is boom in terms of opportunities brought forward by globalization. However this is also leading to many interventions in terms of restructuring, turnaround,
Page | 18

mergers, downsizing, etc. Research has clearly shown that the success of these interventions is heavily dependent on managing the people issues in the process. HR has a pivotal role to play here.
Pest Analysis
Understanding "Big Picture" Forces of Change
(Also known as PESTLE, PESTEL, PESTLIED, STEEPLE and SLEPT Analysis)
PEST Analysis is a simple, useful and widely-used tool that helps you understand the "big picture" of your Political, Economic, Socio-Cultural and
Technological environment. As such, it is used by business leaders

worldwide to build their vision of the future. It is important for these reasons:
First, by making effective use of PEST Analysis, you ensure that what
you are doing is aligned positively with the powerful forces of change that are affecting our world. By taking advantage of change, you are much more likely to be successful than if your activities oppose it;
Page | 19
Second, good use of PEST Analysis helps you avoid taking action that
is doomed to failure from the outset, for reasons beyond your control; and
Third, PEST is useful when you start operating in a new country or

region. Use of PEST helps you break free of unconscious assumptions, and helps you quickly adapt to the realities of the new environment.
How to use the tool:

PEST is a simple mnemonic standing for Political, Economic, Socio-Cultural and Technological. To use this tool, follow this three stage process:
1. Brainstorm the relevant factors that apply to you;
2. Identify the information that applies to these factors; and 3. Draw conclusions from this information. The following factors may help as a starting point for brainstorming (but make sure you include other factors that may be appropriate to your situation): Political:

Government type and stability Freedom of press, rule of law and levels of bureaucracy and corruption Regulation and de-regulation trends Social and employment legislation Tax policy, and trade and tariff controls Environmental and consumer-protection legislation Likely changes in the political environment
Page | 20

Economic:

Stage of business cycle Current and project economic growth, inflation and interest rates Unemployment and labor supply Labor costs Levels of disposable income and income distribution Impact of globalization Likely impact of technological or other change on the economy Likely changes in the economic environment
Socio-Cultural:

Population growth rate and age profile Population health, education and social mobility, and attitudes to these Population employment patterns, job market freedom and attitudes to work Press attitudes, public opinion, social attitudes and social taboos Lifestyle choices and attitudes to these Socio-Cultural changes
Technological Environment:

Impact of emerging technologies Impact of Internet, reduction in communications costs and increased remote working Research and Development activity Impact of technology transfer
Figure 1 below shows this in diagrammatic format:
Page | 21
Figure 1: PEST Analysis in Diagrammatic Format Other forms of PEST - PESTLE, PESTLIED, and STEEPLE and SLEPT: Some people prefer to use different flavors of PEST Analysis, using other factors for different situations. The variants are:
PESTLE/PESTEL: Political, Economic, Sociological, Technological,
Legal, Environmental;
PESTLIED:
Political,
Economic,
Social,
Technological,
Legal,
International, Environmental, Demographic;
STEEPLE:
Social/Demographic,
Technological,
Economic,
Environmental, Political, Legal, Ethical; and
SLEPT: Social, Legal, Economic, Political, Technological.

Page | 22
Example:
Were going to avoid giving an example here, because of the huge potential for causing offense: few societies seem perfect to outsiders, and there are few things as irritating as having an outsider criticize one's own country... However, a broad principle is that things that make activity more difficult for people or organizations raise the cost of doing business: business is either stopped altogether, or costs more as people spend time and money circumventing difficulties. The higher the cost of doing business in a region, the more project profitability is squeezed or eliminated. And given that businesspeople normally have at least some level of intelligence, businesses and projects that could otherwise operate are never launched - meaning that less economic activity takes place. (The lower the amount of economic activity, the poorer and less capable societies tend to be.) Another broad principle is wherever there is rapid or major change in an area, there are likely to be new opportunities and threats that arise. Smart people and companies will take advantage of the opportunities and manage the threats. And do remember that few situations are perfect: it is up to us to make the most of the situation in which we find ourselves. Key Points:
PEST Analysis is a useful tool for understanding the big picture of the environment, in which you are operating, and the opportunities and threats that lie within it. By understanding your environment, you can take advantage of the opportunities and minimize the threats.
Page | 23

PEST is a mnemonic standing for Political, Economic, Social and
Technological.
These
headings
are
used
firstly
to
brainstorm
the
characteristics of a country or region and, from this, draw conclusions as to the significant forces of change operating within it. This provides the context within which more detailed planning can take place to take full advantage of the opportunities that present themselves.
Page | 24
Swot Analysis
Is a planning tool used to understand the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business. It involves

specifying the objective of the business or project and identifying the internal and external factors that are supportive or unfavorable to achieving that objective. SWOT is often used as part of a strategic planning process. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and
Threats
There are several ways of graphically representing this on an analysis matrix or grid. Several versions are shown on this page - use the one which is best suited to your application and preferred style. While at first glance this looks like a simple model and easy to apply, I can say from experience, that to do a SWOT analysis that is both effective and meaningful, requires time and a significant resource. This cannot be done effectively by just one person. It requires a team effort. The methodology has the advantage of being used as a 'quick and dirty' tool or a comprehensive management too, and that one can lead to the other. This flexibility is one of the factors that has contributed to its success. The term "SWOT ANALYSIS" is in it an interesting term. Many believe the SWOT is not an analysis, but a summary of a set of previous analyses even if those were not more than 15 minutes of mini-brainstorming with yourself in front of your computer. The analysis or more correctly interpretation comes after the SWOT summary has been produced.
Page | 25
The SWOT Matrix Model
Internal Strengths Positiv e Opportunities Weaknesses Threats
External
Negative or potential to be negative
An Alternative Matrix
Strengths Offensive make the most of Opportunit these ies Adjust restore strengths Weaknesses Defensive watch competition closely Survive turn around
Threats
DEFINITION
Page | 26

A process generates information that is helpful in matching an organization or groups goals, programs, and capacities to the social environment in which it operates. Note that in itself is only a data capture the analysis follows.
Strengths

Positive tangible and intangible attributes, internal to an organization. They are within the organizations control.
Weakness
Factors that are within an organizations control that detracts from its ability to attain the desired goal. Which areas might the organization improve?
Opportunities
External
attractive
factors
that
represent
the
reason
for
an
organization to exist and develop.
What opportunities exist in the environment, which will propel the organization? Identify them by their time frames
Threats
External factors, beyond an organizations control, which could place the organization mission or operation at risk. The organization may benefit by having contingency plans to address them if they should occur.
Page | 27
Classify them by their seriousness and probability of occurrence.
Page | 28
OVERVIEW MATRIX:
POSITIVE/ HELPFUL to achieving the goal NEGATIVE/ HARMFUL to achieving the goal
INTERNAL Origin facts/ factors of the organization
Strengths Things that are good now, maintain them, build on them and use as leverage
Weaknesses Things that are bad now, remedy, change or stop them.
EXTERNAL Origin facts/ factors of the environment in which the organization operates
Opportunities Things that are good for the future, prioritize them, capture them, build on them and optimize
Threats Things that are bad for the future, put in plans to manage them or counter them
Aim of a SWOT Analysis

Reveal your competitive advantages Analyze your prospects for sales, profitability and product development Prepare your company for problems Allow for the development of contingency plans
A SWOT analysis is a process to identify where you are strong and vulnerable -- where you should defend and attack. The result of the process is a 'plan of action', or 'action plan'. The analysis can be performed on a product, on a service, a company or even on an individual.
Page | 29

Done properly, SWOT will give you the BIG PICTURE of the MOST IMPORTANT FACTORS that influence SURVIVAL and PROSPERITY. As well as a PLAN to ACT ON.
POSSIBLE STRENGTHS
S W O T Analysis - Possible Strengths Tangible Strengths Intangible Strengths Processes & Systems
Page | 30
Assets including plant and equipment Your business location Do you have longterm contracts? Are your products unique or market leading? Have you got sufficient insurance resources to fund any changes you would like to make? Do you have any cost advantages over your competitors? Do you use superior technology in your business? Is your business high volume? Can your scale up if you need to?
Do you have a strong recognizable brand or do you stock strong brands Your reputation - are you considered a market leader? Or an expert in your filed? Do you have good relationship with your customers? (Goodwill) Do you have strong relationships with your suppliers Do you have a positive relationship with your employees Do you have any unique alliances with other businesses? Do you own any patents or proprietary technology? Do you have a proven advertising process that works well? Do you have more experience in your field? Are you managers highly experienced?
Do you have superior industry knowledge? Are you involved with industry associations? Is your business Innovative?
Remember - Strengths internal to your business; characteristics or qualities of your business/ organization that make you better than your competitors. Add any additional strength that are unique to your business.
Page | 31
POSSIBLE WEAKNESSES
S W O T Analysis - Possible Weaknesses Tangible Strengths Intangible Strengths Processes & Systems
Is your plant and equipment old or outdated? Is your product line too narrow? Have you got insufficient insurance resources to fund any changes you would like to make? Do you have a high overall unit cost relative to your competitors? Do you use inferior technology in your business? Do you have low volume and are restricted in your ability to scale up?
Do you have a weak or unrecognizably brand? Do you have a weak or unrecognizable image? Do you have a poor or impersonal relationship with your customers? Do you have a poor relationship with your suppliers? Do you have a poor relationship with your employees? Is your marketing failing to meet objectives? Are your managers inexperienced? Do you have low R&D?
Do you lack industry knowledge? Do you lack innovative skills?
Remember - Weaknesses internal to your business/ organization; characteristics or qualities of the way you work that make you less competitive than your competitors. Add any additional weaknesses that are
Page | 32

unique to your business/ organization.
POSSIBLE OPPORTUNITIES
S W O T Analysis - Possible Opportunities Industry/ Sector Opportunities

External Opportunities

Expand your product line Diversify your business interests Expand into your customer's field
Changes to legislation Changes to import/export constraints
Good economic outlook Favorable cultural shifts such as to greener products
Expand into your supplier's field Expand your customer base (Geographically or through new products)
Changes in use of technology opening up opportunities for your business to utilize these technologies such as Ecommerce or Internet sales
Do you have placid competitors? Are there any export opportunities?
Will your market grow?
Remember - Opportunities are external to your business. They exist either

Page | 33

within your industrial sector or outside of your sector. Add any additional opportunities that are unique to your business.
Page | 34
POSSIBLE THREATS
S W O T Analysis - Possible Opportunities Industry/ Sector Opportunities
External Opportunities
Will low cost imports impact your business?
Foreign exchange rate changes affecting imports/exports
Do consumers have a choice to use a substitute product?
Changes in demographics Increasing regulation
Are substitute product sales increasing?
Is your market in slow growth or in decline?
Growing power of customers or suppliers to set price
Changing needs of buyers
Remember - Threats are external to your business. They exist either within your industrial sector or outside of your sector. Add any additional threats that are unique to your business.
Page | 35
The Promising Field Of Insurance

Starting from being an open competitive market to nationalisation and finally to a liberalised market again, the Indian Insurance sector has indeed witnessed a 360-degree turn. At the helm of mind-boggling growth, insurance has emerged as one of the most promising sectors in the country. Before 1956, there were about 170 insurance firms after which the Indian govt. nationalised all and brought them under the gamut of LIC. However, in 1999, the Govt. set up IRDA and liberalised this sector. Thereafter, growth was witnessed with the entry of various private players. Shedding light on the growth graph of this sector, R. Mahajan, head HR & training, SBI Life says, The Indian insurance industry has grown significantly in last six years with the entry of new private players which contributed immensely to the growth of the sector. It is one of the fastest growing sectors in the country. Judhajit Das, chief - HR, ICICI Prudential life Insurance gives a comparative view, Last year, the Indian Insurance industry witnessed 100 per cent growth and this graph is likely to continue in the years to come. The insurance sector has two broad categories - life and non-life. Talking about the money the sector generates, B. Anant, head - HR, ICICI Lombard notes, Life Insurance segment generates about Rs. 70,000 crores while non-life segment accounts for Rs. 30,000 crores. The life Insurance industry accounts for 4.1 per cent of Indias GDP. Mahajan adds, Currently Indias share in the world life insurance market is 1.68 per cent as against 1.02 per cent of the previous year.
Page | 36

The sector today provides employment to over 185,000 individuals. There are over 20 lakh insurance agents who sell insurance products across the country. The multi-channel distribution approach adopted by most life insurance players provides a lot of employment opportunity in the urban, semi-urban and rural areas. Elaborating on the opportunities that the sector has created not only in urban areas but in semi-rural areas too, Anant says, There are a range of insurance products for the rural poor as well like insurance for cattle, weavers, weather etc. For the same, weve employed many from the rural and semi-rural segments. In fact out of 250 offices that we have in the country there are about 175 offices in semi-rural & rural markets. Not only does this sector provide with a vast number of opportunities but it also has a whole range of job options from specialist profiles in the domain of product development and actuarial, underwriting, claims and policy servicing to generalist functional profiles like sales and marketing, HR & training, information technology and finance. The qualifications and the skill sets needed depend on the work profile one is interested in. For marketing and sales, an MBA qualification from a reputed institute is preferable. Graduates with the right aptitude and the aggression to meet stiff sales targets often are well sought after for this role. In addition, product knowledge and the ability to drive a team of insurance intermediaries is a must. While for actuarial functions the candidate should have the required qualification from the Actuarial Society of India and should be very good at mathematics. For all other operational roles apart from the specific skill sets required for that particular function such as finance and accounting, legal and compliance, basic knowledge on the life insurance industry is a must.
Page | 37

With the sector moving at a fast pace, industry experts feel theres going to be an increase in demand of specialist jobs. Also Indian customers would look for better customer service, product innovation, value for money products which would further fuel the demand for high quality manpower. More and more new and innovative products would emerge in the market and there would be a constant need of talent up-gradation. For the same reasons, many forward looking firms are stepping up and taking initiatives with the govt. and the academia, Anant notes. Talking further on the same, Mahajan points out, With the level of demand in the insurance sector, companies are investing a lot of time and resources towards employee training and development. Clearly, theres a challenge but if seen differently the same challenge can be treated as an opportunity to build a great workforce and boost this sector further.
Page | 38
Human Resource S.W.O.T. Analysis

With many smaller sized organizations not having a full-time in-house Human Resource representative, the choice may be to outsource this function to an HR Consultant. Choosing to go this route is a wise investment. But how does one know where to start in terms of the organization's human resource requirements? Well, complete an S.W.O.T. Analysis, of course! S.W.O.T. Analyses have been conducted by many organizations over the years. What's it stand for? S.W.O.T. is a tool used to understand an organization's:
Strengths - focusing on the elements that make the organization

what it is
Weaknesses
minimizing/correcting
areas
that
leave
the
organization vulnerable

Opportunities - maximizing prospects and valuing change Threats - ensuring awareness of risks or perils to the organization
Strengths and Weaknesses are typically internal while Opportunities and Threats are external. A S.W.O.T. Analysis can be performed on an entire
organization, but it can also be used to focus on specific divisions such as Human Resources. In choosing to outsource the human resource function, this process can prove to be a key element in achieving strategic goals in this area.
Making It Work
Page | 39

An individual can complete a S.W.O.T. Analysis on their own but it is recommended to involve as many people as possible in evaluating these criteria. It's suggested that two S.W.O.T. Analyses be conducted one with management and one with employees. The cross referencing of feedback from management and employees may reflect differing opinions and perspectives. In a larger organization it may be beneficial to select a group of people from each department to participate in the process. This will assist the facilitator on keeping everyone focused on the task at hand.
So what are the next steps in completing a S.W.O.T. Analysis on the HR requirements? Consider the following questions:
a. What practises and policies are already in effect and working
efficiently?
b. What practises and policies are not working well and need to be
reviewed?
c. What
trends
are
occurring
in
hiring,
employee
retention,
technological changes, government regulations, etc?

d. What does the organization offer employees that the competition
doesn't and vice versa?

e. What is the opinion of customers, suppliers or vendors when they
interact with employees and management?
Page | 40

f. Do
the
human
resource
weaknesses
leave
the
organization
vulnerable to employee relations issues, voluntary resignations, succession concerns, etc?

g. What do employees have to offer in the way of skills and
qualifications?
h. Are the right people in the right roles?
Ask as many questions as possible in relation to the organization's Human Resource Strengths, Weaknesses, Opportunities and Threats. If customer satisfaction surveys are conducted, use the information collected from that tool to add insight, as the customer's opinions are equally as important as the organization's internal personnel.
Put the Results to Use An outsourced HR Consultant will work within the groups to record
responses and then openly discuss the results with the parties involved. The next step is to work through each point made, prioritize and rank them. Then determine what can be done to maximize the Strengths and Opportunities and minimize the Weaknesses and Threats. Evaluate and assign a level of importance from 1 to 10 to aid in creating action plans for each item, delegating responsibilities for each. Regular follow up by the HR Consultant and management on the progress of each item is critical, remembering to maximize all resources during the process. It's important to review these areas on a quarterly basis to re-asses and create new action plans if necessary.
S.W.O.T. Analysis can assist in identifying areas of weakness and potential threats to the organization's HR. Therefore, be honest and
Page | 41

realistic in determining each element - deal with the weaknesses and threats head on rather than avoiding them. There's no point in finding out later that the competition is ahead of the game because complete honesty wasn't applied to the process. It's better to be realistic now than having to face the pitfalls later on. When considering the opportunities, take a look at what is occurring today as well as what could occur in the near future.
Conclusion
When determining the Strengths, Weaknesses, Opportunities and Threats of the Human Resource needs, consider where the organization is in terms of the following: Employee and management hiring and retention levels Economic and market changes Physical working environment Technological trends and changes to the industry Government regulations and political changes
Customer and employee satisfaction Honestly and openly evaluating the organization's Human Resource requirements will help the business stay ahead of the competition, while maintaining and striving towards the overall strategic goals. Remember to take time to maintain strengths, correct weaknesses, take action on opportunities and deal with potential threats.
Page | 42
Page | 43
Swot Analysis - Insurance Sector
SWOT your way to better performance
Most performance management systems that are top down, focus on measuring performance through a map of results, behaviors and competencies. The entire systems are derived from the organizational strategy as outlined either through the strategy map or any other strategy definition and detailing methodology. One of the defects of this approach is that it does not leverage or maximize the potential of the person who needs to deliver this performance. However clear the performance requirements may be, unless the person has the right set of skills, aptitude and knowledge, he will not be able to excel in the role. Even when these competencies are aligned, often the way these
Page | 44

competencies get deployed will differ from how another person with similar competencies will behave in a similar role. This is where a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) of the individual can help make a difference. The SWOT gives a good snapshot of the individual's approach as well as her competencies. Moreover, unlike other methods of competency mapping that require high degree of expertise and skills, a SWOT is relatively easier to implement and can deliver value at almost any level.
STEPS TO DRAW UP A SWOT in INSURANCE SECTOR
The first step is to look at the Strengths and weaknesses of the individual. Strengths 1. We can get an indication of strengths while considering questions such as: 2. What does the person like to do? 3. What areas of the roles does the person do well? 4. In what areas of the role does the person naturally get into more detail, often exhibiting an innate understanding of the technicalities of the work? 5. What unusual skill/s does the person bring to the job? 6. What unique resources does the person draw on? 7. What are others likely to see as strengths? 8. What particular needs of the organization are met? Each individual is unique and has her strengths. Studies have shown repeatedly that those employees who enjoy doing what they do; they are
Page | 45

more likely to be working in business units with lower employee turnover. Companies that have focused on employee strengths have seen time and time again, increase in productivity and employee loyalty. Weaknesses Similarly, personal areas of weaknesses can be deduced by asking questions such as: 1. What does the person dislike? 2. What areas of the role does the person perform poorly? 3. What areas of the role does the person prefer to either work at a task level, or prefers to remain at a high level? 4. Where does the person have fewer resources than others? 5. What are others likely to see as weaknesses? Weaknesses like fear can result in a self-fulfilling prophecy. Keep your mind on them, and that's what you get. It can result in creating poor self-image, negative attitude and consequently poor performance. Working on improving a weakness may at best prevent failures, but it's only in developing strengths that success can be attained. Opportunities Now, once these Strengths and Weaknesses have been defined, the next step is to look at opportunities. Opportunities come out of the specific strengths of the individual as well as the role that the person is expected to play. Some pointers that help identify opportunities are: 1. Considering the strengths, what areas of the current role, and other related roles can the person play well? 2. Are there other processes in the business model where the individual's strengths can be leveraged?
Page | 46

3. What trends can the individual help the organization take advantage of? When deciding the performance targets for the individual, stretch goals that centre on a person's opportunities which are likely to energize and excite the individual. Threats When looking at threats, ask: 1. What areas of the current role are likely to be compromised if the individual is put under stress? 2. What skills is the employee lacking? 3. What are the impediments to gaining more skills? 4. What trends could cause harm? For areas that are potential threats, ensure that clear acceptable minimum targets are set, so that the individual does not compromise performance below these levels under any circumstances. Threats can also be used to examine and modify the employee's profile, so as to add value to the business vision and objectives. A possible likelihood and a potential benefit is that these threats can be converted into opportunities, since they are identified well in advance.
Analysis of SWOT findings
A SWOT analysis is always done with regard to an objective and is never obscure. Therefore the gathering of the Strengths, Weaknesses, Opportunities and Threats is only half the job done. The next step is to analyze the gathered details & create strategies for success both for the current situation and for the future.
Page | 47

This can be done by analyzing the four quadrants of the SWOT matrix: QUADRANT 1 SO (StrengthsOpportunities) strategies QUADRANT 3 WO (WeaknessOpportunities) strategies QUADRANT 2 ST (Strengths-Threats) strategies QUADRANT 4 WT (Weakness-Threats) strategies
1. Match internal strengths with external opportunities, and record the resultant SO (Strengths-Opportunities) strategies. These strategies focus on leveraging current opportunities with the available strength. 2. Match internal strengths with external threats, and record the resultant ST (Strengths-Threats) strategies. These strategies focus on vulnerable situations that require awareness. 3. Match internal weaknesses with external opportunities, and record the resultant WO (Weakness-Opportunities) strategies. These strategies focus on constraints that can be converted to opportunities, in the near future. 4. Match internal weaknesses with external threats, and record the resultant WT (Weakness-Threats) strategies. These strategies focus on problems that need immediate address.

Benefits of a SWOT It is simple and encourages collaboration among employees It is both cost and time effective It explores and integrates information both from internal sources and from external sources and is highly flexible
Page | 48
Most businesses are efficient in analyzing their internal strengths and weaknesses but are not efficient with analyzing the external opportunities and threats and where they stand in relation to it. It is here that SWOT analysis is useful. It causes businesses to look beyond and to strategize accordingly
It presents information about the industry in a structured manner, and aids in the formulation of effective strategies
Helps focus effort on areas that give competitive advantage Gives an insight with regard to threats and how to react proactively to them and to convert them into opportunities
SWOT analysis also helps to leverage team dynamics because when building a team of people with identical roles, it helps to have people with complementary SWOT profiles; thus providing for team synergy as well
It is a great team-building tool, since it involves every member of the team in the planning process.
Conclusion A well managed SWOT will help a business see the overall picture. It will help isolate key issues and facilitate a strategic approach to address them. SWOT is highly recommended because of its ease of use and its ability to scope the entire setting (playing field) i.e. both internal and external factors (environments), its ability to match between the two and because of its ability to chart out sound strategies thereafter. Businesses can use a SWOT to position themselves to take advantage of opportunities, defend themselves against any threats and consequently ensure long-term success.
Page | 49
Page | 50
HDFC Standard Life Insurance

Introduction
HDFC Standard Life Insurance Company Limited is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited) , India's leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others.
Our Key Strengths
1. Insurance Expertise As a joint venture of leading insurance services groups, HDFC Standard Life has the insurance expertise required to manage your long-term investments safely and efficiently. 2. Range of Solutions We have a range of individual and group solutions, which can be easily customised to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.
Page | 51

3. Track Record So Far Our gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859 crores. As of 31 December, 2008 our new business premium income stood at Rs. 1,839.70 Crores. The company has covered over 812,811 lives as on December 31, 2008. Why HDFC Standard Life?
HDFC Standard Life believes that establishing a strong and ethical foundation is an essential prerequisite for long-term sustainable growth. To ensure this, we have concentrated our focus on expansion of branch network, organizing an efficient and well trained sales force, and setting up appropriate systems and processes with optimum use of technology. As all these areas form the basic infrastructure for establishing the highest possible customer service standards.
Our core values are drilled down to all levels of employees, as these are inviolable. We continue to promote high integrity in business practices and shun short cuts and unethical practices, as we wish to be perceived as an institution with high moral standing. Since our inception in 2000, when the Indian insurance space was opened for private participation, we have consistently focused on setting benchmarks in all aspect on insurance business. Being the first private player to be registered with the IRDA and the first to issue a policy on December 12, 2000, our differentiators are:
A. Strong Promoter
Page | 52

HDFC Standard Life is a strong, insurancely secure business supported by two strong and secure promoters HDFC Ltd and Standard Life. HDFC Ltds excellent brand strength emerges from its unrelenting focus on corporate governance, high standards of ethics and clarity of vision. Standard Life is a strong, insurancely secure business and a market leader in the UK Life & Pensions sector. B. Preferred and Trusted Brand Our brand has managed to set a new standard in the Indian life insurance communication space. We were the first private life insurer to break the ice using the idea of self-respect instead of death to convey our brand proposition (Sar Utha Ke Jiyo). Today, we are one of the few brands that customers recognize, like and prefer to do business. Moreover, our brand thought, Sar Utha Ke Jiyo, is the most recalled campaign in its category.
C. Investment Philosophy We follow a conservative investment management philosophy to ensure that our customers money is looked after well. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. As a life insurance company, we understand that customers have invested their savings with us for the long term, with specific objectives in mind. Thus, our investment focus is based on the primary objective of protecting and generating good, consistent, and stable investment returns to match the investors long-term objective and return expectations, irrespective of the market condition.
Page | 53

D. Need-Based Selling Approach Despite the criticality of life insurance, sales in the industry have been characterized by over reliance on tax benefits and limited advicebased selling. Our eight-step structured sales process Disha however, helps customers understand their latent needs at the first instance itself without focusing on product features or tax benefits. Need-based selling process, 'Disha', the first of its kinds in the industry, looks at the whole insurance picture. Customers see a plan not piecemeal product selling.
E. Risk Control Framework HDFC Standard Life has fully implemented a risk control framework to ensure that all types of risks (not just insurance) are identified and measured. These are regularly reported to the board and this ensures that the company management and board members are fully aware of any risks and the actions taken to ensure they are mitigated F. Focus on Training Training is an integral part of our business strategy. Almost all employees have undergone training to enhance their technical skills or the softer behavioral skills to be able to deliver the service standards that our company has set for itself. Besides the mandatory training that Insurance Consultants have to undergo prior to being licensed, we have developed and implemented various training modules covering various aspects including product knowledge, selling skills, objection handling skills and so on. G. Focus on Long-Term Value
Page | 54

HDFC Standard Life does not focus in the business of ramping up the topline only, but to create maximization of stakeholder's value. Today, we are extremely satisfied with the base that we have created for the long-term success of this company. H. Transparent Dealing We are one of the few companies whose product details, pricing; clauses are clearly communicated to help customers take the right decision. I. Strict Compliance with Regulations We have initiated and implemented many new processes, some of which were found useful by the IRDA and later made mandatory for the entire industry. The agents who successfully completed this training only, were authorized by the company to sell ULIPs. This has now been made compulsory by IRDA for all insurance companies under the new Unit Linked Guidelines. J. Diversified Product Portfolio HDFC Standard Lifes wide and diversified product portfolio help individuals meet their various needs, be it:
Protection: Need for a sound income protection in case of your unfortunate demise
Investment: Need to ensure long-term real growth of your money Savings: Save for the milestones and protect your savings too Pension: Need to save for a comfortable life post retirement Health: Cover for health related exigencies
Page | 55
Our Parentage
HDFC Limited
HDFC Limited, Indias premier housing finance institution has assisted more than 3.3 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 250 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own a home back in India. As of December 2008, the total asset size has crossed more than Rs. 95,000 crores including the mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit base of Rs. 17,551 crores, earning the trust of more than 9, 00,000 depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of housing finance companies.
Standard
Life
Group
(Standard
Life
plc
and
its
subsidiaries)
The Standard Life Group has been looking after the insurance needs of customers for over 180 years. It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs. Its investment
Page | 56

manager currently administers 125 billion in assets. It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's. Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pensions provider at the Insurance Adviser Service Awards for the last 10 years running. The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006. Our Vision & Values
Our Vision 'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'. 'The most obvious choice for all'. Our Values Values that we observe while we work:

Integrity Innovation Customer centric People Care One for all and all for one Team work Joy and Simplicity
Page | 57
HUMAN RESOURCE MANAGEMENT {At HDFC STANDARD Life Insurance}

The company attributes its success to the contributions made by its employees. We believe that our strength is our people, so our endeavour is to surpass their expectations and give them the best possible work environment and benefits that match the best in the industry. Talent management initiatives in HDFC Standard Life are driven by a set of organizational core competencies (Mantra 10) as well as positionspecific competencies. The competency set includes knowledge, skills, experience, and personal traits (demonstrated through defined behaviors) based on the bedrock of sharp vision and strong values of HDFC Standard Life. In this endeavor of shaping and nurturing our talent pool, HDFC Standard Life adopts a four-step model:
a. Acquiring and Retaining Talent HDFC Standard Life believes in building capability for superior
performance leading to a superior shareholder value. We have a bouquet of people processes like Assessments, Potential Review, Defined Career plans that identify and invest to create effective leaders.
Page | 58

Our path breaking career progression progamme Front line Assessment and Growth Program (FLAG) -- for the retail channel is designed towards achievement orientation. It recognizes achievers through fast track career progression coupled with attractive remuneration. The above is true for all levels as we believe that providing opportunity to employees is the key to motivate them to aspire for higher responsibility. As HDFC Standard Life is a performance-driven organisation, achievers move up the career ladder, effortlessly. b. Competency Mapping and Developing Capability Competencies are the desired business behaviors, which enable an individual to contribute towards organizational growth. We have a set of identified core competencies, which help employees to imbibe and achieve a consistent business performance. We have branded our competency model as Mantra 10. We believe in integrating our HR processes on the basis of Mantra 10, to create a competency driven culture. c. Engaging Talent In todays environment, employee engagement has become a business imperative. Capturing employee insights as to the strengths and concerns of the organization is the starting point of the Engagement journey. HDFC Standard Life partners with reputed global organisation such as Gallup to assess employee perception on critical engagement dimensions that consistently correlates to business outcomes. These findings help us to prioritize areas for employee engagement action across the organization and specific to various departments. Through concerted efforts at the organizational, functional and work group level, together we strive towards attaining the goal of making HDFC Standard Life a great workplace.
Page | 59
d. Rewarding and Nurturing We believe that raising the bar of performance keeps employee challenged and the generation enjoys the stretch. We have robust employee recognition programs in place for employees who achieve above & beyond. We take pride when we talk about learning opportunities we offer to employees. We have set the trend in Learning & Development in the Insurance space. We have training plans for employees at all levels and for our insurance consultants, we have created a training infrastructure with 3 training centers of our own at Delhi, Bangalore and Lonavala (Mumbai). These temples of learning provide a unique learning environment to employees to hone their skills & capabilities through our internal trainers in Sales, Behavioral Sciences and E- Learning.
e. Compensation & Benefits Well-being of our employees is our utmost objective. The compensation and benefits offered are best in the industry and are aimed at not only attracting but also retaining the best talent. Rewards for each position are based on performance, potential, and market value. We offer other benefits as well, such as provident fund, gratuity and a hospitalisation insurance coverage program that covers not only the employee but his/her family as well. The employees, who complete two years of service, can avail of housing and education loans facility at discounted rate. We encourage our employees to go for further education. For our employees convenience all common processes like compensation details, reimbursement, leave applications, travel planning, updating personal information, etc. are automated through the extensive use of technology.
Page | 60
f. Management Trainee Program The key objective of this program is to nurture business leaders of tomorrow. Well-qualified management graduates are provided with in-depth knowledge of insurance sector and business processes. The management trainee program spreads over a period of 12 months, making it one of the most comprehensive entry-level programs in India.
HRM Challenges Faced By Managers At HDFC Standard Life Insurance

Introduction: The HR Managers of today may find it difficult because of the rapidly changing business environment and therefore they should update their knowledge and skills by looking at the organization's need and objectives. The HRM challenges are Managing the Vision:
Vision of the organization provides the direction to business strategy and helps managers to evaluate management practices and make decisions. So vision management becomes the integral part of Man management in future. Internal environment:
Creating an environment which is responsive to external changes, providing satisfaction to the employees and sustaining through culture and systems is a challenging task.
Page | 61

Changing Industrial Relations:
Both the workers and managers have to be managed by the same HRM Philosophy and this is a daunting task for the managers. Building Organizational capability:
Even in the adverse circumstances the employees have to be made to live in psychological state of readiness to continually change. Job Design & Organizational structure:
Instead of depending on foreign concepts we need to focus on understanding the job, technology and the people involved in carrying out the tasks.
Managing the large work force:
Management of large workforce poses the biggest problem as the workers are conscious of their rights. Psycho-Social environment:
Nowadays employees participation required not only in performing job but also in democratizing and humanizing the institution. Employee Satisfaction:
Managers should be aware of techniques to motivate their employees so that their higher level needs can be satisfied. Modern technology:
There will be unemployment due to modern technology and this could be corrected by assessing manpower needs and finding alternate employment. Computerized Information System:
Page | 62

This is revolutionary in managerial decision making and is having impact on coordination in the organization. Legal environment:
To meet the changes in legal environment, adjustments have to be made to the maximum utilization of human resources. Managing Human Relations:
As the workforce comprises of both educated and uneducated, managing the relations will be of great challenge.
Page | 63
SWOT ANALYSIS {At HDFC Standard Life Insurance}

Criteria Examples for A Manager
Strengths
What are my/ your strengths?
Examples:
Enthusiasm, energy, imagination, expertise in Subject area Excellent track record in specialized area
Weaknesses
What are my/ your weaknesses?
Examples:
Not good at achieving results through undirected use of personal energies, Trouble at expressing themselves orally and on paper Management experience and expertise limited
What are my/ your opportunities? Examples:

More general management opportunities requiring development of new managers Development of new locations and need for management
What are my/ your threats? Examples:

De-centralization having the effect of removing departments Elimination of middle management layers
Opportunities
Threats
Page | 64
Criteria Examples for HRM
Internal Factors (Company)
Strengths
What are the strengths of our HRM? Examples: Developed techniques for HRM Innovation culture in the HRMTeam Modern IT-Infrastructure What are the opportunities for our HRM? Examples: New management team wanting to improve business through organizational development and cultural development programmes Governmental programmes to promote the qualification of young people
Weakness
What are the weaknesses of our HRM? Examples: Poor position in management: Reactive rather than pro-active work No ideas to meet the lack of young, qualified people What are the threats for our HRM? Examples: Contribution of HRM not recognized by top management Budget reduction for vocational training and further training Deficit of well qualified people in labour market
Opportunities
Threats
External Factors (Market, Internal Environment)
Page | 65
Figure 1 : SWOT Analysis
Figure 2 : Coping Up With Challenges Of HR

Page | 66
Figure 3 : Impact Of Recession On Organization.
Page | 67
Page | 68
HRs Challenges in the Insurance Sector

Turmoil in insurance markets during this economic downturn, has presented insurance services firms and their human resources functions with daunting challenges in their approach towards talent. Though the market downturn is the harsh reality; the severity of this insurance crisis cannot be over-dramatized by losing focus on strategic human capital systems and functions which can form means of overcoming the paramount challenges in the future of the insurance services sector. Insurance Services sector cant afford to lose focus on people; they are in an intellectual capital business. It is more important than ever that they connect their emerging leaders and talent sources with the senior leadership, while working directly with line managers to equip them with tools for managing teams during times of unprecedented change. Even though the insurance services sector is caught in the tough conditions; the need of top performers is the perennial need. Hence the HRs of all insurance services firms must look for answers for certain difficult questions: How can we still attract and retain outstanding people despite tighter limits on recruiting and compensation? Is reducing headcounts cutting into our core talent? Are we making smart decisions or blind mandates about where to invest and where to cut? How can we reduce training, development and benefits costs while continuing to service employees and clients effectively? How do we sustain performance in the face of cost constraints?
Page | 69

In the face of these challenges, some distinct trends are sure to emerge in the desired competencies of HR personnel, the deployment of HR infrastructure, and the approach to familiar HR issues - such as recruiting, retention, and talent management It is time that these areas and its supporting elements are wisely altered to stand ground against this current volatility in the industry.
The New Role and Set up: Introspect
The role of HR Generalists must be nurtured by linking them to the business. But this happens the HR-Generalist role becomes critical and depends on the generalists ability to recognize now more than ever on how they can help leaders manage in this time of turbulence and ambiguity, even if it requires asking an organizational development specialist to step in for specific challenges. HR generalists who remain close to the business and have sufficient core business knowledge gain credibility and are in lock-step with business heads, providing greater value add. At the same time, on boarding and developing HR professionals with experience in managing across a range of geographies is important if firms continue or intend to expand globally. In addition, broadly talented HR professionals who are able to work across the function should be encouraged. They should be versed with the importance of lean teams and should be able to contribute towards Lean management. One way to initiate this is by retraining the existing HR staff on ways to handle wider set of challenges; keeping the market conditions in perspective.
Page | 70

A talent pool of seasoned professionals, who can manage the complexities of workforce, will always stand limited unless the selection decisions contribute towards the objective of business purpose. The need to do more with less has intensified; earlier several service firms reorganized HR and talent management teams by closely aligning them with business lines as a means of serving specific internal customer needs. But today at one end we see firms preferring shared services model to reduce costs and increase efficiency. While at the other end, we can see some firms moving toward centralization as a means of creating a leaner function that serves across business lines. We are also seeing some discernible HR talent trends in specific industry segments. For example, many service and private equity firms with historically lean or non-existent HR functions are taking advantage of todays buyers market for talent by recruiting human resources professionals who can bring in the best practices from more institutionalized firms and industry segments. Cost containment has become a grave concern in the area of HR, with companies taking a hard look at issues such as compensation and vendor management, implementing more self-managed services and web resources for benefits and training, fun and benefit programs. During this time, the role of an HR is to assert its value-add to the organization through stringent measurement and reporting against metrics that track not only cost, but efficiency, retention, turnover and performance. This is where reporting and documentation of critical information plays a vital role.
Recruitment Favorable conditions V/s Challenge
Until recently, many firms shied away from conducting massive layoffs; well, it was boom time!!!. However, with the economic downturn, firms are being
Page | 71

forced to let go of staff; more at junior levels while retaining or even continuing to hire strategic employees at senior levels to prepare the firm for the future. Firms somehow believe that they will attain success by finding alternatives that will enable them to contain costs, maintain reputation and brand equity, and be prepared when the economy rebounds. All at the same time J. Well this world is guided by optimism. But its nice to know that there are few firms who understand that tough times offer a golden recruiting opportunity: with fewer open positions, the labor pool is the large and with higher quality than ever. A recession is a great time to pluck the cherry from the cake. In addition to investing in HR teams, many firms continue to invest in key areas such as technology, risk (especially market risk), wealth management, and sales/distribution. Opportunistic hiring at the Director level and above continues, with a focus on talent that supports core businesses and positions. All this with a hope that these elements will help upgrade staff positions when the recovery takes place.
Insurance firms are still seeking top talent - especially as they become increasingly institutionalized and, in some cases, go public. With the consolidation occurring in the insurance markets, the acquiring firms and alternative asset managers are lifting out whole teams that are aligned with strategic senior hires, including more junior staff. Now, not all individuals will be re-hired elsewhere; many will flee the industry. Those at the director level and below will view this as an opportunity to shift away from the industry or the investment banking sector in particular, which will create a vacuum at that level the market rebounds.
Page | 72

According to an excerpt from a magazine; overall recruiting volume is down 40% - 60%. Yet these highly targeted recruiting efforts are keeping staffing professionals sufficiently busy. In the face of the buyers market for talent, some recruiting challenges remain. As a result of immense losses and highly negative media coverage, weve seen some large insurance services firms experience significant difficulty in recruiting and retaining high-caliber talent. Further, prospective employees are more concerned with the language of offer letters, and there are more discussions about termination clauses and severance. Given the significant losses in personal wealth over the past few quarters, candidates are becoming more focused on long-term incentives and are thinking more carefully about relocation, given the challenges in the housing market. They are also asking targeted questions about long term career prospects, and the health and viability of the insurance institution overall. All of these developments have made many potential candidates more risk averse and less open to exploring new job opportunities. So although there is a larger pool of candidates, they are savvier now and are asking firms to substantiate their value proposition. The compensation premiums that up to this point came with hard work and long hours will undoubtedly be reduced, while the level of effort expected may remain the same. What is considered normal compensation will become increasingly unclear and people will need to recalibrate benchmarks as the industry changes take place.
Firms
and
HR
representatives in the door
must should
manage
public
relations
and
communications very carefully. Firms that were previously concerned with getting bodies become more selective about
Page | 73

assimilation and cultural fit from the very beginning. Each potential new-hire should be held to a greater level of scrutiny, resulting in far more internal debate and prolonged recruiting timeframes. Today the power is back in employers hands. Its the time to correct the mistakes and fix mandates for the right decisions and actions for the future. I hope the employers can see this opportunity.
Managing Talent Retention + Development The supply demand curve has finally swung back ways. However, with the abundance of talent in the market and fewer opportunities available, its easy for firms to grow complacent about retention. Firms who pay attention now can prevent the higher turnover that will happen, for sure - when the economy recovers. Retaining key talent remains an imperative, and firms that know their internal talents as well as they know their clients will fair better than others. Some firms are already being thoughtful about competition for talent not only in their own industry segment, but also from peripheral businesses that are possible from poachers of talent. Its time, clear succession plans, accompanied by relevant development opportunities, are signaled to top talent who are valued and marking the path for their success. Firms that miss out on succession planning will scramble for replacements when key individuals with institutional knowledge retire, and are also likely lose some top talent from poaching and walkaways. As regulators play a larger role within this industry, questions will also be raised about future plans for replacing critical talent. Workforce planning
Page | 74

provides an additional tool for retention and human capital management. By creating a more flexible employee base, firms can avoid the massive firings that often come with an economic downturn.
Hasty decisions that affect large numbers of employees are never wellreceived. The ability to forecast skill-based and geographic requirements and quickly redeploy employees creates a noble organization. But at the heart of workforce planning and employee mobility lies training and development; retooling skills and filling in development needs, produce proactive organizations. Such planning will enable to avoid massive and costly recruiting efforts when conditions improve. Insurance firms must now develop skills of their human capital in response to the existing challenges in insurance services market. Given the current issues, many firms are now focusing training on portfolio and risk monitoring for investment professionals at all levels of the organization. Retention and talent management: If firms dont pay attention now; they will pay the price later.
Managing Staff and Performance:
Insurance services firms should re-emphasize performance management and employee relations as there is high level of sensitivity involved in these issues especially during the time of economic downturn. The management should now partner more thoughtfully with HR and legal systems than in the past. As morale would decline with each round of layoffs and continued worsening economic conditions; employee relations officers need to keep employees focused without affecting their performance.
Page | 75

The need for the top leaders to drive human capital initiative has increased; but it becomes difficult if the rate of senior management turnover increases. Reshuffling at the top is a common news headline. It is better to avoid it; but sometimes is inevitable. Hence the firms should ensure that they always have a better pool of emerging leaders nurtured to guide the ship in troubled waters.
Conclusion
Environment is an important variable in HRM. It is therefore desirable that we know what the environment is & how it influences HR functions in an organization. Environment may be understood as all those forces which have their bearing on the functioning of the HR Department. The forces are political-legal, economic, technological cultural unions organizational culture conflicts, & professional bodies. The first four together formed the external environment & the last three factors constitute the internal environment of HR Department. Before examining these forces, it is useful to understand the utility of analyzing the environment in which HR managers have to work.
Page | 76
Analysis of the environment is useful for the HR manager & his/her team in order to become pro-active & not remain reactive to the environment. Reactive strategy serves the purpose when the environment is fairly stable & competition is less severe. Both of these have become things of the past. Todays business environment in characterized by change & intense competition. Proactive steps are vital for any organization if it has to survive in such an environment. The HR Department is the best position to scan the environment for HR & labour market issues. An HR Department obtains environmental information & feeds it to key decision makers. In fact, the department may play a important role in making the decision. The department also has a responsibility of obtaining internal organization information for consideration by strategic decision makers. But the role of HR Department is confined to a boundary spanning role in that it helps link the organization to its environment through environmental scanning. The environment of HRM comprises both external as well as internal forces which have their impact on the practitioners of the profession. The external environment includes political-legal, economic, technological and cultural factors. The internal environment consists of unions, organizational culture & conflict, & professionalism. The study of environment enable hr expert to become proactive in their approach to personal aspects.
Page | 77

Finale 123

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Finale 123

Hochgeladen von

Copyright:

Verfügbare Formate

Managing Environment in Human Resource

Human Resource Management

Managing Environment in Human Resource

Managing Environment in Human Resource

Trade Union Movement Era

Social Responsibility Era

Managing Environment in Human Resource

Scientific Management Era

Managing Environment in Human Resource

Human Relations Era

Managing Environment in Human Resource

Behavioral Science Era

Managing Environment in Human Resource

Systems Approach Era

Managing Environment in Human Resource

Contingency Approach Era

Managing Environment in Human Resource

The Art of Managing People

Managing Environment in Human Resource

Managing Environment in Human Resource

Growth and remuneration

Managing Environment in Human Resource

Managing Environment in Human Resource

EEmerging Trends in Managing Human Resources

Managing Environment in Human Resource

Managing Environment in Human Resource

Managing Environment in Human Resource

Managing Environment in Human Resource

Top 5 HR Challenges for Indian Organizations

Managing Knowledge Workers

Managing Technological Challenges

Managing Environment in Human Resource

Managing Environment in Human Resource

Technological environment. As such, it is used by business leaders

Managing Environment in Human Resource

Third, PEST is useful when you start operating in a new country or

How to use the tool:

Managing Environment in Human Resource

Figure 1 below shows this in diagrammatic format:

Managing Environment in Human Resource

PESTLE/PESTEL: Political, Economic, Sociological, Technological,

International, Environmental, Demographic;

Environmental, Political, Legal, Ethical; and

SLEPT: Social, Legal, Economic, Political, Technological.

Managing Environment in Human Resource

Managing Environment in Human Resource

Managing Environment in Human Resource

Opportunities, and Threats involved in a project or in a business. It involves

Managing Environment in Human Resource

The SWOT Matrix Model

Internal Strengths Positiv e Opportunities Weaknesses Threats

Negative or potential to be negative

Managing Environment in Human Resource

organization to exist and develop.

Managing Environment in Human Resource

Classify them by their seriousness and probability of occurrence.

Managing Environment in Human Resource

INTERNAL Origin facts/ factors of the organization

Aim of a SWOT Analysis

Managing Environment in Human Resource

Managing Environment in Human Resource

Managing Environment in Human Resource

Do you lack industry knowledge? Do you lack innovative skills?