Strategic HRM: National and international practices Unit: V

Presented by Chinta Mani Bhattarai MBA-HRM Institute of Banking and Management Studies (IB&MS)

Strategic human resource management

Business objectives/goals

1. Performance Management System 3. HRMIS 5. Recognition 7. HR & Manpower Audit 9. Total Quality Management 11. Employee Recruitment 13. Knowledge management

2. Motivation 4. Salary & Compensation 6. Employee Relations 8. Quality Circles 10. KRA & KPI 12. Training & Development 14. organizational learning

Strategic HRM

HR strategy/overall (specific)

Strategic management/strategic role of HR

Strategic choice

Strategic analysis

Strategic HR: resource based view

Strategic fit

Horizontal fit

Vertical fit

Coordination or congruence among the various HRM practices

Linking of HRM practices with the strategic management process of the organization

Approaches to SHRM
1. Attempts to link HR activities with competency based performance.

1. Attempts to link HR activities with business surplus or profit.

Indian context for HRM

Linguistic differences and role of English. Geographical differences.

Generation differences.
Group dynamics (High).

HR retention strategy ( Indian context ): BY: Michael Haid

HR practices

Employee attitudes and beliefs

Retention

Performance management practices

Pride in organization
Professional development practices Intention to leave Manner support Social responsibility

Satisfaction with organization

Years of service, age, gender, position and education

Determinants of strategic fit

HR function factors
HR policy Options Investment/budget

Personal factors
HR managers capability Top managers ability and support Employee knowledge and skills

Horizontal fit Firms performance

Overall fit

Vertical fit

Firm level factors

Nature of strategy Values and culture

SHRM practices in IT industry in India

Research carried out by: DR. Mohammad Galib Hussain and S. Mohamed Rafique In 25 software/IT companies located at Chennai and Bangulure From: www. International journal. Org ( April 6, 2012 )

Concentrated areas of SHRM

1. Strategic HRM focus ( strategic and operation issue ) 2. Functional areas covered by SHRM ( Finance and Marketing operation) 3. SHRM facilitates (Transformation) 4. Treatment of employees (Fairness and equity, favour balanced decision making and congenial work environment ) 5. Advanced SHRM practices (Team based job design, flexible workforce, quality and

improvement practices )
6. Strategic HRM activities (Innovation, designing consistent policies, and practices and strong expectations)

Dominant SHRM practices in software/IT companies

1. Organization policies and strategies linked to HRM policies -------94.2%

2. Strategic HRM focus

3. SHRM facilitate achievement 4. Treatment of employees 5. SHRM facilitates 6. Functional areas that covered by SHRM 7. Organization diagnosis its strategic needs 8. Line managers most touch with employees 9. Adopted SHRM activities

-------67.3%
-------65.4% -------64.0% -------57.2% -------56.2% -------53.8% -------37.5% -------33.7%

Dominant SHRM practices which achieve its higher effectiveness in software/IT industries
1. Workforce planning ----------87.0%

2. Participative management
3. Executive development program 4. Family/work program 5. Succession and development planning 6. Advance issue identification strategies 7. Communication between employee and manager 8. Quality output

----------81.2%
----------72.0% ----------56.7% ----------49.0% ----------46.2% -----------------------------------

9. SHRM effectiveness attained

------------------

What drives the adoption of SHRM in Indian companies Reserched by: Ashok Som and Hanid Bouchikhi
unionization Role of HR department
Adoption of innovation SHRM practices in Indian industries

Technological sophistication

Style of top management

Organizational size

Financial resources

International consultants

Compensation practices

Direct

indirect

Base pay Wages salaries

Variable pay Commissions Bonuses Gain sharing

Mandatory Provident fund Gratuity Maternity leave Health plans Medical leaves

Voluntary
Time not worked Vacations Breaks Holidays Insurance plans Life Security plans Pensions Employee services Educational Recreational

Non financial compensation ( employee recognition)

Awards
Recognition awards Appreciation letters Thank you letters

HR audit Practice at Infosys

Infosys' HR audit model was based on the present value of the employees' future earnings with the following assumptions: An employee's salary package included all benefits, whether direct or otherwise, earned both in India and in a foreign nation. The additional earnings on the basis of age and group were also taken into account. To calculate the value of its human assets in 1995-96, all the 1,172 employees of Infosys were divided into five groups, based on their average age. Each group's average compensation was calculated. Infosys also calculated the compensation of each employee at retirement by using an average rate of increment.

HRA - The Benefits and Hurdles The benefits of adopting HRA were manifold. It helped an organization to take managerial decisions based on the availability and the necessity of human resources. When the human resources were quantified, it gave the investors and other clients true insights into the organization and its future potential. Proper valuation of human resources helped organizations to eliminate the negative effects of redundant labor.

This, in turn, helped them to channelize the available skills, talents, knowledge and experience of their employees more efficiently. By adopting and implementing HRA in an organization, the following important information could be obtained: Cost per employee Human capital investment ratio The amount of wealth created by each employee The profit created by each employee The ratio of salary paid to the total revenue generated Average salary of each employee Employee absenteeism rates Employee turnover rate and retention rate...

Auditing HR policies and practices

Audit of the HR policies and practices is the assessment and evaluation of the conventional HR practices being followed in an organization. These include: Workforce planning: Assessment of existing resources; future personnel requests; analysis of succession plan; and staff turnover analysis. Staffing: Assessment of methods and procedures used in recruitment; recruitment costs; recruitment efficiency in filling vacant positions; efficiency of selection procedures.

Performance management: Analysis of methods used in the personnel assessment; assessment of results and effects of the personnel evaluation process.
Training and development: Analysis of targets and forms of training; study of the training program; assessment of personnel after completing training; the efficiency and results of the training program; analysis of development system of personnel in the organization; job analysis; analysis of the plan for personnel development. Compensation and benefits: Analysis of motivation forms; their relationship with personnel motivation; analysis of the level and structure of compensation.

Auditing HR policies and practices

Audit of the HR policies and practices is the assessment and evaluation of the conventional HR practices being followed in an organization. These include: Workforce planning: Assessment of existing resources; future personnel requests; analysis of succession plan; and staff turnover analysis. Staffing: Assessment of methods and procedures used in recruitment; recruitment costs; recruitment efficiency in filling vacant positions; efficiency of selection procedures. Performance management: Analysis of methods used in the personnel assessment; assessment of results and effects of the personnel evaluation process.

Training and development: Analysis of targets and forms of training; study of the training program; assessment of personnel after completing training; the efficiency and results of the training program; analysis of development system of personnel in the organization; job analysis; analysis of the plan for personnel development.
Compensation and benefits: Analysis of motivation forms; their relationship with personnel motivation; analysis of the level and structure of compensation.

 HRIT strategy formulation Package evaluation & implementation Up-gradation Custom software development Deployment and rollout System integration Production support HR strategy and roadmap HR process assessment and effectiveness Performance management and HR scorecard Competency management Career framework development Change management

Service & solutions

HR process areas

HR analytics Portals and self service Recruitment Learning management solutions Payroll solutions Benefits Workforce managements

HCM consulting

HR outsourcin g

HR administration Benefits Claims Payrolls Advisory service

Knowledge management
WIPRO (IT SECTOR):
Actively seeking a business model targeted at adding value to clients organizations by building effective KM capability based on their proven offering and tested implementation experience. Realizes that Knowledge Management is not a one-off solution but a Journey. Works along with client teams, using proven methodologies for knowledge audits, knowledge mapping, taxonomy generation, KM readiness assessment to deliver services suited to business and organizational needs. Wipro also offers to conduct a workshop for KM awareness to its customers at their location. Wipro Technologies has received Information Today's KM-World - KM Reality Award validating Wipro's leadership in Knowledge Management. KM World's Executive Editor Hugh McKellar said, "In many organizations, knowledge management is just rhetoric. The KM Reality award recognizes an organization in which knowledge management is a positive reality. Wipro as the recipient of this year's KM Reality award is an organization demonstrating leadership in the implementation of knowledge management practices and processes by realizing measurable business benefits." Wipro has started offering its Collaboration and Knowledge Management solutions and expertise to Global Corporate Enterprises by providing end-to-end Collaboration and Knowledge Management services, including: KM application development for Knowledge Portals, Expertise Management Systems, Knowledge Repositories and Executive Dashboards through a unique blend of domain knowledge, technology expertise and process excellence.

Knowledge management
WIPRO (IT SECTOR):
Actively seeking a business model targeted at adding value to clients organizations by building effective KM capability based on their proven offering and tested implementation experience. Realizes that Knowledge Management is not a one-off solution but a Journey. Works along with client teams, using proven methodologies for knowledge audits, knowledge mapping, taxonomy generation, KM readiness assessment to deliver services suited to business and organizational needs. Wipro also offers to conduct a workshop for KM awareness to its customers at their location. Wipro Technologies has received Information Today's KM-World - KM Reality Award validating Wipro's leadership in Knowledge Management. KM World's Executive Editor Hugh McKellar said, "In many organizations, knowledge management is just rhetoric. The KM Reality award recognizes an organization in which knowledge management is a positive reality. Wipro as the recipient of this year's KM Reality award is an organization demonstrating leadership in the implementation of knowledge management practices and processes by realizing measurable business benefits." Wipro has started offering its Collaboration and Knowledge Management solutions and expertise to Global Corporate Enterprises by providing end-to-end Collaboration and Knowledge Management services, including: KM application development for Knowledge Portals, Expertise Management Systems, Knowledge Repositories and Executive Dashboards through a unique blend of domain knowledge, technology expertise and process excellence.

Tata Steel (Manufacturing):

Tata Steel decided to embark on KM initiative in May99. The beginning was made in July99 to place a KM Programme for the company to systematically and formally share and transfer learning concepts, best practices and other implicit knowledge. The essence of this Programme is to capture the available abundant knowledge assets in form of tacit (experience, thumb rules, etc.) and explicit (literature, reports, failure analysis etc.), to organize and transform the captured knowledge, and to facilitate its usage at right place and in right time. "Knowledge communities" are actually groups of people who come together to share what they know, and to learn from one another regarding some aspects of their work. Helps to emerge knowledge community and to flourish and to become productive. Knowledge communities are the knowledge-sharing platform, not a task force to solve a problem. Communities may take up some problems and solve it by looking at the problem and brainstorming from various perspectives. Communities play a very important role in capturing experts tacit knowledge, improving the quality of knowledge repository and encourage usage of the repository. In Tata Steel, Knowledge communities have few distinct roles viz. Champion, Convener, Practice Leader, Lead Expert and Practitioners. To make KM more effective in Tata Steel, a number of initiatives like integration of the various local pockets of knowledge repositories available in various division / departments with the main KM repository have been taken. Measurement of performance of KM system is being done through "KM index". CEO and other senior executives monitor the progress of KM through Balance Score Card system.

Tata Steel (Manufacturing):

Tata Steel decided to embark on KM initiative in May99. The beginning was made in July99 to place a KM Programme for the company to systematically and formally share and transfer learning concepts, best practices and other implicit knowledge. The essence of this Programme is to capture the available abundant knowledge assets in form of tacit (experience, thumb rules, etc.) and explicit (literature, reports, failure analysis etc.), to organize and transform the captured knowledge, and to facilitate its usage at right place and in right time. "Knowledge communities" are actually groups of people who come together to share what they know, and to learn from one another regarding some aspects of their work. Helps to emerge knowledge community and to flourish and to become productive. Knowledge communities are the knowledge-sharing platform, not a task force to solve a problem. Communities may take up some problems and solve it by looking at the problem and brainstorming from various perspectives. Communities play a very important role in capturing experts tacit knowledge, improving the quality of knowledge repository and encourage usage of the repository. In Tata Steel, Knowledge communities have few distinct roles viz. Champion, Convener, Practice Leader, Lead Expert and Practitioners. To make KM more effective in Tata Steel, a number of initiatives like integration of the various local pockets of knowledge repositories available in various division / departments with the main KM repository have been taken. Measurement of performance of KM system is being done through "KM index". CEO and other senior executives monitor the progress of KM through Balance Score Card system.

Organizational learning practices in India

Organizational learning in India: creating the organizational learning space
Studied by: Suvro Ray chaudhary, 2 concord way apt. 2-A3, windsor locks, connecticut, USA Suvroraychaudhary@wipro.com Suvro.rc@gmail.com

Dimensions of OLS

Learning delivery methods

Organizational facilities for learning

Training programs

Other features for organizational learning

Learning delivery methods

P e r c e n t a g e

r e s p o n s e s

60 50 40 30 20 10 0
Blended learning Web based learning Asynchronous learning Instructor led learning

Collaboration with academic institution Out source instructor

In house instructor

Delivery methods

Organizational facilities for learning

Virtualization of knowledge modules

90 80 P e r c e n t a g e r e s p o n s e s 70 60 50 40

Accessibility over intranet Accessibility over internet Online libraries Knowledge portals as a part of ESS with SSO Independent knowledge portals not tied to ESS Knowledge community for alumni Role based access to online knowledge centers Multilingual portal

30
20 10 0

Types of facility

Training programs
90 P e r c e n t a g e r e s p o n s e s 80 70 60 50
Mixed training Mixed training (In house + out sourced) (In house + out sourced)
Out sourced training In house training In house training

40
Executive programs Executive programs

30 20 10

0
Programs type

Other features for organizational learning

90
Training program associated with awards Training program linkage to other HR strategic modules

P e r c e n t a g e

r e s p o n s e s

80 70

60
50 40 30 20 10 0 Other features

Dedicated investment in permanent learning centers

Online communities

Reward for contribution to knowledge repository

Dimensions of international SHRM

Employee resourcing Diversity management Expatriation and repatriation Local responsiveness Acquisition and mergers Right sizing or down sizing Talent management Employee welfare and Labour relations Compensation safety and health Quality circles (QC) Total quality management (TQM) Cross national transfer of employees and management

Human capital management

High performance work system Corporate social responsibility

Organizational development
Employee engagement Knowledge management Talent management Learning and development Reward system

Matrix of HRM strategies in globalization context

Research topic: Dynamic strategic HRM in the globalization context
Studied by: Chun Hsien Liu Department of international business Minghsin University of science and technology contact yangsh@ms16.hinet.net

SHRM dimensions

Environment consciousness
Intangibility

Service characteristics
Heterogeneity Inseparability Perishability

Employee skills and work policies/practices

Staffing Hire an environment specialist Conduct environment training Wear uniform gentle, clean Emphasize human skill Let customer see staff always Happy staff Happy customer Meet minimum qualification Fluently and intensively In shift to avoid fatigue Empathy to 1st line staff Good human skill Good relationship keeping Key account system Family member More staff for peak hour Skill to pacify angry customer Adapt to customer density hour Fair, flexible scheduling

Training

Work design Confirm environment codes Employee relations Keep good working environment

Service characteristics SHRM dimensions Environment consciousness Intangibility Heterogeneity Inseparability Perishability

Supportive environmental practices

Employee Direct correct empowerme violation nt Employee assistance Proper training Solve directly customer problem 1st line staff 1st priority Solve timely customer problem Staffs mutual support Converge the diversity Rule comply champion Flexible contingent Higher customer relationship Staff and customer specific Bonus by quota To shift team leaders Sufficient logistics Encourage flexibility Customer pacify champion

Diversity Flexible benefits

Unify staffs Integrate to understanding have synergy Award to environment champion Award to customer champion

SHRM dimensions

Environment consciousness Intangibility

Service characteristics Heterogeneity Inseparability Perishability

Performance management and reinforcement practices

Performance appraisal

Announce in public

Announce in front of customer

Announce in public

Provide in private

Announce in public

Compensation

Money or promotion

Money or promotion

Money or promotion

Bonus

Money or promotion

SHRM dimensions

Environment consciousness Intangibility

Service characteristics Heterogeneity Inseparability Perishability

Market organization practices

Alternative work design Compensation Depends on actual need Depends on actual need Advocate and devil play Depends on actual need Depends on actual need Advocate and devil play Depends on actual needs Depends on actual need Key account manager Bonus by quota Bonus Sub contractor for peak hour Depends on contract Depends on contract

Market leading Depends on compensation actual need