11pghr40 6 sigma

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    Puneet Sehgal 11PGHR40

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    Intangible assets represent the hidden value of the firm. Functions of HR linked with strategic intent of

    organizations Management of human capital Development of human capital Retention of human capital

    Major challenges that HR face are : Recruiting expense Turnover Training Workforce deployment Compensation

    HR also contributes to the organization's service , quality& productivity.

    HR functions have no parameters to show theircontributions

    43% of HRs impact on business performance came fromits strategic contribution.

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    HRD audit assessment of competence, commitment, culture Balance score card for HR Tobin Quses Human capital index to check organizations

    HR health

    Saratoga Metric Administrative, benefits, compensation,employee relations, IT, management and staffing

    Organizational Capabilities Index (OCI) - locates key gaps incompanys alignments

    Human capital Measurement head count change, CSR, Totalcompensation, training and development

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    Bridges the gap between HRM strategyand organizational strategy.

    Deals with HR metrics and cost per hire

    Operational perspective does not provideanalytics which are necessary to push the

    HR function.

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    Fundamental

    Objective

    Total customer

    Satisfaction

    Key Belief

    Customer is

    centre of world

    Key Goal of

    HR

    To be the

    employer of

    choice

    Key Elements

    Customer

    Process

    Employees

    Key

    Initiatives

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    Is responsible for coordinating a business roadmap to achieve 6 projects,executes control, and alleviates roadblocks for the 6 projects in his or her area of

    responsibility

    Mgmt.

    BB

    Champions

    Is mentor, trainer and coach of Black Belts and others in the

    organization. Brings the broad organization up to the required 6

    competency level

    Master Black

    belt

    Is a leader of teams implementing the 6 methodology onprojects. Uses more sophisticated statistical tools to help team members

    and the broader organizationBlack belt

    Delivers successful focused projects using the 6

    methodology and toolsGreen Belts

    Participates on the project teams.

    Supports the goals of the project,

    typically in the context of his or her

    existing responsibilities. Is expected to

    continue to utilize learned methodology

    and tools as part of his/her normal job

    Quality Programs

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    Organized around individual projects & finite timelines

    Identification and prioritization of services providedDefine

    Capability of the process and opportunities of

    defect and improvement measuredMeasurement

    When and where defects occurAnalysis

    Identifying root causes of the problem and

    improvingImprovement

    Institutionalization of the improvementControlling

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    Problem Identification

    and Prioritization

    Voice of customer

    Pareto Chart

    Benchmarking

    Expense record

    Define

    Critical to Quality

    Questions, Cost

    Concern

    Primary metric

    Secondary Metric

    Measurement

    Controlling the Inputs

    that control measures

    Pareto , Voice of

    customer and

    hypothesis testing

    Analysis

    Prioritization of root

    causes

    Improvement

    Institutionalization of

    the Improvement

    Impact of eachcounter measure

    Modus Operandi of

    implementation

    Controlling

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    Training was better aligned withorganizational requirements

    Faster and better services in compensationand backend activities

    $1 m savings through six sigma initiatives

    in HR

    14% rise in internal customer satisfactionlevel

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    Image of HR Dept.

    Delay in salary processing

    Non adequate bench strength

    Mistakes in headcount

    Lack of vision in terms of objective data

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    Streamlined, reliable information gatheringand retrieval systems required

    Selection of right project, identification and

    removal of root causes of process fault

    Common Approach to project management

    Overcome resistance on technical,

    organizational and personal level

    Encourage reward system for six sigmaimplementation

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    Advantages

    Disadvantages

    Image of HR got changed

    Process and Speed improvements

    Positive outcome of internal customersatisfaction surveys

    Financial cost savings within HR

    Too statistically oriented Requires a large investment Misses the big picture Can be focused on small projects mainly Higher variance in customer

    requirements noticed It is difficult to define scope

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