NATURE OF FUNTIONAL

PLAN AND POLICIES

[ HUMAN RESOURCE
MANAGEMENT PLAN AND POLICIES ]
To achieve effectiveness, it is very important
for the management to choose the right
way in which the strategies are implemented.
As functional strategies are a part of corporate
and business strategies, thus it is very critical
for the company to design these strategies in a
proper manner and within the framework of
the strategies and plans set at the higher level.
Functional strategies constitute various sub-
functional plans and policies which are equally
important namely

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a) Marketing plan and policies
b) Financial plan and policies
c) Operations plan and policies
d) Human resource management plan and
policies
e) Information Technology plan and policies

HUMAN RESOURCE MANGEMENT

PLAN AND POLICIES :
Human resource management plans and
policies deal with the personnel system,
organizational and employee characteristics
and industrial relations. Management of Human
Resource has undergone major and drastic
changes in post-liberlisation environment in
India.

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An example of how changing have affected the
HRM within the organisation can be seen in
case of AV Birla group. The company went for
massive shift in its HRM policy with business
strategy of takeover, expansion of capacity,
value addition etc. in the year 2000. Along with
this, the company also underwent for
restructuring a system for the close
coordination
between various departments.

HUMAN RESOURCE MANAGEMENT

PLAN AND POLICIES
i. Personnel system: implementing strategies
like in casPlans and policies related to
personnel system deals with
manpower planning, selection, development,
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compensation, communication
and appraisal. Mostly companies depend upon
the personnel system for
e of Hindustan Petroleum Corporation Ltd.
(HPCL). When oil sector deregulation came, it
found itself to be not fit for the
competitive market. So, the company
reformulated its HR system and came up with a
transparent appraisal system.
ii. Organizational and employee
characteristics: This includes factors such as
corporate image, quality of management, staff
and workers, working
conditions etc. The true value of the
organisation’s strategy implementation
lies in the creation of an appropriate and right
environment.

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iii. Industrial relations: The plans and policies
under this deals with the issues
related to union-management relationship,
collective bargaining, safety and
welfare of employees, employee satisfaction,
morale, etc. Industrial relations
holds immense importance as it deals with the
rules and regulations set by
government.

INTEGRATION OF FUNCTIONAL
PLANS & POLICIES
In order to implement strategies more
efficiently and effectively, the organisations
have to integrate its
functional plans and policies. It is very
significant for the companies to integrate the
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functional plans
and policies for better internal consistency and
to develop organizational capabilities.
There are several ways to integrate these plans
and policies. Some of the mechanisms are given
below:
1) Information system: In large organisations,
the departments are linked together to work
effectively as one department depends upon
the information of other departments to work
smoothly. Thus it is important that the various
departments are linked both horizontally and
cross-functionally which can be achieved
through different information systems. For
instance,
Max Healthcare uses a hospital information
system to connect all geographically dispersed

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locations.
2) Direct contact: One to one interactions
between employees of various departments
working
on a project can help the organisation to
achieve coordination within the various
departments.
During the development of the Spectra two-
wheeler at TVS Suzuki, direct contract was
established between employees from
marketing. R&D, manufacturing, engineering,
sourcing
and finance.
3) Task forces: Task force is an organizational
unit that is created to accomplish a particular
function or to resolve a special problem. A task
force consists of members from various
departments that work for a particular project
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or task.
4) Full-time integrator: Some time in a matrix
type structure a department or a position solely
responsible for inter-department coordination
is formed which is known as Full-time
integrator. A full time integrator does not
report to any functional departments but works
to
integrate the departments.
5) Teams: A team is the strongest horizontal
linkage mechanism that is a permanent task
force.
Teams help organisations to build high degree
coordination over a long period of time
between
the departments.