302 - HUMAN RESOURCE MANAGEMENT

PROJECT REPORT ON

“STRATEGIC HRM IN IT SECTOR [WIPRO]"

Submitted By : TEAM - I
S.No. REG.NO. NAME OF THE STUDENT COURSE
1 121824601021 Satya Siddhardha MBA(IB)
2 121824601024 Shivani Mathrani MBA(IB)
3 121824601035 Milan Yadav MBA(IB)
4 121824701001 Gulpari Ahmadi MBA(IBF)

In partial fulfillment of Requirement for the award of the Marks towards PROJECT as
part of 302 – HUMAN RESOURCE MANAGEMENT Course in Master of Business
Administration (IB/IBF/GSCM)

Under the Guidance of

Dr. Y R Reddy
Professor (Human Resource Management)

GITAM School of International Business

GITAM (Deemed to be University)
Visakhapatnam-45

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 CONTENTS

S.NO CONTENT PAGE NO.

1 INTRODUCTION TO HRM 2

2 STRATEGIC HRM 3-5

3 BENEFITS OF STRATEGIC HRM 6

4 STRATEGIC HRM TOOLS 7

5 HRM IN IT SECTOR 8

6 WIPRO AND IT’S SPIRIT 9

7 MILESTONES 10

8 STRATEGIES OF WIPRO 11

9 FUTURE CHALLENGES 13,14

10 CONCLUSION 15

11 BIBLIOGRAPHY 16

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HUMAN RESOURCE MANAGEMENT

Human resource management is a process of bringing people and organizations together so that
the goals of each other are met. The role of HR manager is shifting from that of a protector and
screener to the role of a planner and change agent. Personnel directors are the new corporate
“heroes”. The today focus in business is personnel. Nowadays it is not possible to show a good
financial or operating report unless your personnel relations are in order. The major purpose of
HRM is to increase and improve the productive contribution of personnel to the organization in
more ethical, social, and administratively responsible way. This purpose emerged from
commonly called industrial relations, personnel administration, industrial psychology and
personal management. Research shows that its aim is to create a whole organizational culture
that binds workers to the company’s objectives with full professional commitment, integration,
and quality work.

STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategic Human Resource Management is the practice of aligning business strategy with that
of HR practices to achieve the strategic goals of the organization. The aim of SHRM (Strategic
Human Resource Management) is to ensure that HR strategy is not a means but an end in itself
as far as business objectives are concerned. The idea behind SHRM is that companies must
“fit” their HR strategy within the framework of overall Business objectives and hence ensure
that there is alignment between the HR practices and the strategic objectives of the organization.

Strategic human resource management is the practice of attracting, developing, rewarding, and
retaining employees for the benefit of both the employees as individuals and the organization
as a whole. HR departments that practice strategic human resource management do not work
independently within a silo; they interact with other departments within an organization in order
to understand their goals and then create strategies that align with those objectives, as well as
those of the organization. As a result, the goals of a human resource department reflect and
support the goals of the rest of the organization. Strategic HRM is seen as a partner in
organizational success, as opposed to a necessity for legal compliance or compensation.
Strategic HRM utilizes the talent and opportunity within the human resources department to
make other departments stronger and more effective.

Evolution of Strategic HRM

With the advent of new economy industries like IT and the mushrooming of the service sector,
organizations all over the world realized that human resources must be viewed as a source of
competitive advantage as opposed to treating it much the same way in access to technology or
capital is concerned. What this means is that the practice of HRM is being viewed as something

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that promotes the business objectives of the firms and not merely another factor in the way the
firm is managed.

Meaning of strategic HRM:

Before we try to explain the meaning of strategic HRM, let us first define the terms ‘strategy’
and ‘strategic management’. The term ‘strategy’ is widely used in and presupposes importance.
In the words of the Oxford Concise Dictionary, strategy means ‘generalship’. Thus, strategy is
associated with the long-term decisions taken at the top of the enterprise. The original literary
meaning of strategy is ‘the art and science of directing military forces’.

The term strategy is frequently being used in the present-day corporate world. It envisages
thinking ahead to survive and grow in a highly competitive environment’. Strategy is concerned
with determining which option will provide maximum benefits. According to Jauch and Glueck.

“Strategy is a unified, comprehensive and integrated plan that relates the strategic advantages of
the firm to the challenges of the environment. It is designed to ensure that the basic objectives of
the enterprise are achieved through proper execution by the organization.”

Basically any strategic process can be broken down into two phases:

1. Strategy formulation

2. Strategy implementation

Strategic formulation is concerned with making decisions with regard to defining the
organization’s vision and mission, establishing long- and short-term objectives to achieve the
organization’s vision and selecting the strategy to be used in achieving the organization’s
objectives.

Strategic implementation is concerned with aligning the organization structure, systems and
processes with the chosen strategy. It involves making decisions with regard to matching strategy
and organizational structure and providing organizational leadership pertinent to the strategy and
monitoring the effectiveness of the strategy in achieving the organization’s objectives.

Strategic management is the process of formulating, implementing and evaluating business

strategies to achieve organizational objectives. Cunningham’ has defined strategic management
as a manner by which organizations plan to deal with the various aspects of management like
problem perception, divergent thinking, substantial resources, decisions making, innovations,
taking risks and facing uncertainty.

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According to Bourgeois “Strategic management is a means by which management in an
organization establishes purpose and pursues that purpose through the co-alignment of
organizational resources with environmental opportunities and constraints”. Now that the terms
strategy and strategic management are already defined, we are ready to define the term ‘Strategic
Human Resource Management’.

Strategic human resource management is to ensure that human resource management is fully
integrated into strategic planning, that HRM policies cohere both across policy areas and across
hierarchies and that HRM policies are accepted and used by line managers as part of their every
day work, opines Guest.

According to Donald F. Harvey “Strategic management is that set of managerial decisions and
actions that determine the long-term performance of a corporation. It includes environmental
scanning, strategy formulation, strategy implementation and evaluation and control. The study of
strategic management, therefore, emphasizes monitoring and evaluating environmental
opportunities and threats in the light of a corporation’s strengths and weaknesses”.

The success of an organization depends on the people therein. This means how they are acquired,
developed, motivated and retained in the organization play an important role in the
organizational success. Then this presupposes an integral approach toward human resource
functions and overall business functions of an organization. Thus, strategic HRM means a
strategic look at HR functions in line with the business functions of an organization.

Strategic HRM, therefore, is concerned with the following:

1. Analyze the opportunities and threats existing in the external environment.

2. Formulate strategies that will match the organization’s (internal) strengths and weaknesses
with environmental (external) threats and opportunities. In other words, make a SWOT analysis
of organization.

3. Implement the strategies so formulated.

4. Evaluate and control activities to ensure that organization’s objectives are duly achieved.

Benefits of Strategic Management:

As opined by Ulrick and Lake, the strategic HR framework aims to leverage and / or align HR
practices to build critical capabilities that enable an organization to achieve its goals. Strategic
management offers both financial and non-financial benefits to an organization which practices
it.

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Fred R. David’ has listed the following benefits that strategic management brings for an
organization:

1. Allows identification, prioritization and exploitation of opportunities.

2. Provides an objective view of management problems.

3. Represents a framework for improved co-ordination and control of activities.

4. Minimizes the effects of adverse conditions and changes.

5. Allows major decisions to better support established objectives.

6. Allows more effective allocation of time and resources to identified opportunities.

7. Allows fewer resources and lesser time to be devoted to correcting erroneous or ad hoc
decisions.

8. Creates a framework for internal communication among personnel.

9. Helps to integrate the behaviors of individuals into a total effort.

10. Provides a basis for the clarification of individual responsibilities.

11. Gives encouragement to forward thinking.

12. Provides a co-operative, integrated and enthusiastic approach to tackling problems and
opportunities.

13. Encourages a favorable attitude towards change.

14. Gives a degree of discipline and formality to the management of a business.

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STRATEGIC HRM TOOLS

Managers use several tools to translate the company’s strategic goals into human resource
management policies and practices. These tools include the strategy map, the HR scorecard, and
the digital dashboard.

 Strategy Map

A strategic planning tool that shows the “big picture” of how each department’s performance
contributes to achieving the company’s overall strategic goals.

The strategy map summarizes how each department’s performance contributes to achieving
the company’s overall strategic goals. It helps the manager and each employee visualize and
understand the role his or her department plays in achieving the company’s strategic plan.
Management gurus sometimes say that the map clarifies employees’ “line of sight.” It does
this by visually linking their efforts with the company’s ultimate goals.

 HR Scorecard

It is a process for assigning financial and non-financial goals or metrics to the human resource
management–
related chain of activities required for achieving the company’s strategic aims and for
monitoring results.

Many employers quantify and computerize the strategy map’s activities. The HR scorecard
helps them to do so. The HR scorecard is not a scorecard.

It refers to a process for assigning financial and non-financial goals or metrics to the human
resource management–related strategy-map chain of activities required for achieving the
company’s strategic aims.

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Managers use special scorecard software to facilitate this. The computerized scorecard process
helps the manager quantify the relationships between
(1) the HR activities (amount of testing, training, and so forth),
(2) the resulting employee behaviors (customer service, for instance), and
(3) the resulting firm-wide strategic outcomes and performance (such as customer satisfaction
and profitability).

The HR scorecard derives from the “balanced scorecard” planning approach, which aims to
balance hard data such as financial measures with soft data such as customer satisfaction in
assessing a company’s performance.

 Digital Dashboard

Presents the manager with desktop graphs and charts, and so a computerized picture of where
the company stands on all those metrics from the HR scorecard process.

The saying “a picture is worth a thousand words” explains the purpose of the digital
dashboard. A digital dashboard presents the manager with desktop graphs and charts, showing
a computerized picture of how the company is doing on all the metrics from the HR scorecard
process.

HRM in IT sector

 Provide expertise in understanding and defining firm-level strategic knowledge

capabilities;

 Develop and manage knowledge workers by leveraging the knowing - learning -doing
nexus;

 Build knowledge value as an organizational as well as an individual asset; and

 Minimize the organization’s knowledge risk associated with loss of requisite

capability and knowledge.

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WIPRO

WIPRO is an Indian multinational corporation that provides information technology, consulting

and business process services. It is headquartered in Bengaluru, India.

After starting off as a small producer of cooking oil in 1945, Wipro, one of India's most admired
companies, is today a large diversified corporation by Indian standards. In quick time, Wipro has
built three new businesses - enterprise solutions, infrastructure management and business process
outsourcing that together account for 30% of total software revenues. These businesses are
expected to be the company's major growth drivers in the future. The main challenge which
Wipro faces, is to develop the necessary human resources. Over the years, Wipro has built a
strong and powerful top-management team of professionals.

Type : Public

Industry : Conglomerate

Revenue : US$8.4 billion

No. of employees: 1,64,659

Operating income : US$1.57 billion

Net income : US$1.23 bilion

Total assets : US$11.68 billion

Total equity : US$7.45 billion

[Data as per FY 2018]

Spirit of WIPRO

 Be passionate about client’s success

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We succeed when we make our clients successful. We collaborate to sharpen our insights and
amplify this success. We execute with excellence. Always.

 Be global and responsible

We will be global in our thinking and our actions. We are responsible citizens of the world. We
are energized by the deep connectedness between people, ideas, communities and the
environment.

 Trust each person with respect

We treat every human being with respect. We nurture an open environment where people are
encouraged to learn, share and grow. We embrace diversity of thought, of cultures, and of
people.

 Unyielding integrity in everything we do

Integrity is our core and is the basis of everything. It is about following the law, but it’s more. It
is about delivering on our commitments. It is about honesty and fairness in action. It is about
being ethical beyond any doubt, in the toughest of circumstances.

Milestones

Human resource policies are systems of codified decisions, established by an organization, to

support administrative personnel functions, performance management, employee relations and

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resource planning. Each company has a different set of circumstances, and so develops an
individual set of human resource policies. HR policies provide an organization with a mechanism
to manage risk by staying up to date with current trends in employment standards and legislation.
The policies must be framed in a manner that the companies vision & the human resource helping
the company to archive it or work towards it are at all levels benefited and at the same time not
deviated from their main objective.

HR policies allow an organization to be clear with employees on:

 The nature of the organization

 What they should expect from the organization
 What the organization expects of them
 How policies and procedures work

Wipro Human Resources Outsourcing (HRO) practice has substantial capability to support the full
spectrum of HR service offerings. These are delivered through a combination of certified domain
experts, proven transition methodology and quality driven operational execution, which is
integrated with apt technology enablers.

 Corporate Strategy

Wipro has IT Services, Product Engineering Solutions, Technology infrastructure Services,

Business Process Outsourcing, and Consulting Services.

 Competitive strategy

In order counteract competitors such as Tata Consultancy Services and Infosys Technologies
which were setting shop in diverse global locations such as Mauritius, Hungary and the Czech
Republic, Wipro, had setup new offices in Shanghai and Beijing and planned to open soon in
Bucharest, Romania.

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Strategies of WIPRO

 The Innovation Council

Wipro's innovation initiative and its Centers of Excellence had a team of close to 500
professionals working on a portfolio of projects. These projects are in areas of process
improvements; execution; new service lines for delivering traditional onsite services through
a global delivery model; business solutions such as gas distribution solutions; business process
management solutions and R&D.
The Factory Model
The ‘Factory Model’ had evolved from Wipro’s Innovation council and was called so
because of its resemblance to the manufacturing assembly line where efficiencies and quality
improvements are driven through standardization of processes.
Managing the Global Workforce
“We invest in people. In three years, we will have a far more global footprint. Around 10%
of our employee population will be based out of Philippines, Europe and other parts of the
world”
Sangita Singh, Senior Vice President and Head of Enterprise Application Services, Wipro
Technologies.
Business Process Outsourcing
Building transformation led and technology enabled Shared Service Centers
Promoting enhanced use of HR self-service in client organizations
Expanding the HR BPO portfolio, geographically and functionally
Engaging with more transformational engagements
HR Scorecard
It brings the linkages among financial, customer, processes and learning. Learning and
people management contribute to the enhancement of internal processes. Internal processes are
critical for enhancing customer satisfaction and loyalty. Customer satisfaction leads to
customer value creation, which drives financial performance and profitability.
Succession Planning
The discussion on succession planning takes place twice a year. Wipro announced the

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 resignation of three important directors BC Prabhakar, Shyam Saran, and Dr Henning
Kagermann from it’s board.

WIPRO has a global service delivery model includes a mix of local, regional and offshore
services coupled with captive local and remote shared services centers. A leading lobby group
for India's IT industry forecasted that the sector's export revenues would grow at 7-8 percent
for the year to March 2017, as the industry faces continued headwinds from the US market.

Wipro said on Wednesday that more than 3,000 locals joined the Bengaluru-headquartered firm
in fiscal 2017, increasing its total headcount in the US to 14,000. It is also said it is working on
expanding its centres in Tampa and Dallas.
"We will continue to build a strong local talent pool with diverse skill sets and make strategic
investments in close proximity to our clients to serve them better," Wipro Chief Executive
Abidali Neemuchwala said.
Wipro’s rise on the scorecard shows that owning a majority of a company need not come in the
way of doing the right thing. Its score saw the “sharpest increase”, the authors of the report point
out, from 2016, when the first edition of the study was conducted.

HR Consulting Services:

WIPRO deliver business process efficiencies through a combination of process transformation,

outsourcing, and usage of technology platforms. These services include Process HEAT
MAPPING, Gap Analysis, Performance Metric Analysis & Benchmarking, Process Controls
Review and Risk Management, Improvement benefit summary and Roadmap Design, Business
Case Development, Process Consolidation, Change Management, etc.

HR Transformation:

This is a planned execution of completely changing the way HR is organized and the way services
are delivered to HR customers. These changes include internal transformations Broad HR
Outsourcing or Point Solution Outsourcing. This helps employers reduce costs, free up resources
to focus on strategy and business customers, and to improve service.

Future Challenges:

A. Global Challenges: U.S. and European firms expanded beyond India. Call center giant
Convergys opened offices in Dubai and Budapest. IBM Global Services was adding staff
in China, Hungary, the Czech Republic and Brazil. And Accenture was adding staff in the

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 Philippines, China, Slovakia and the Czech Republic. Also, other multi-location strategy
companies moved and expanded in parts around the world. Indian IT firms such as Wipro
faced increasingly stiff competition from countries such as China, Russia and Philippines
which also tried to build a strong global delivery model at a relatively low cost. According
to the Global Outsourcing Report 2005, China would overtake India as the premier
outsourcing destination within the next ten years. Interestingly, some of India's offshoring
giants were offshoring themselves, fueling the next round, and U.S. firms were joining in.
In order counteract competitors such as Tata Consultancy Services and Infosys
Technologies which were setting shop in diverse global locations such as Mauritius,
Hungary and the Czech Republic, Wipro, had setup new offices in Shanghai and Beijing
and planned to open soon in Bucharest, Romania.
B. Backlash against outsourcing:

Like many others, Mr. Premji argued that shifting jobs to lower-cost countries would benefit
the United States in the long run. Backlash was a passing phase, and ultimately, corporations
as well as people would realize the greater business benefits. It should be positioned as an
inevitable process of globalization. Firms such as Wipro took a concerted view and action on
the outsourcing backlash unleashed by the United States, Europe and Australia, and faced these
challenges with a strong counterforce. One of the challenges for multinational global suppliers
was to take this job creation and wealth creation, and see how it could be leveraged to improve
the quality of life for a much larger set of people.

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Conclusion

We live in the era of not just change, but an accelerated rate of change. As compared to the
past, the twenty-first century corporations are getting to be globally market driven ones with
‘invest anywhere and share everywhere’ concept. Strategic HRM has helped Wipro achieve the
global benchmarks and reach customer expectations.

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BIBLIOGRAPHY

 Books
1. HUMAN RESOURCE MANAGEMENT
By Mirza S Sayadain 4th edition
2. STRATEGIC HUMAN RESOURCE MANAGEMENT
By Rajib Lochan Dhar
 www.wipro.com
 www.studymode.com/HRM-practice
 Articles :
1. WIPRO STEPS UP LOCAL HIRING IN U.S AMID H-13 VISA
UNCERTAINTY
Thomson Reuter- 29 June, 2017
2. WIPRO : ON THE RIGHT PATH OF GOOD GOVERNANCE
By Hari Chandan Arakali – Forbes India staff
Published : Feb 15, 2018
3. THOUGHTSPOT [2nd issue]
Editor : Manish Dugar, Head, WIPRO BPO
 Building a Global Brand : The case of Wipro
( PICMET 2007 )

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