Emerging Trends and Challenges in HRM
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Post on 18-Apr-2015
1. EXECUTIVE SUMMARY.All major activities in the working life of a worker- from the time of his or her entry into n organization until he or she leaves- come under the purview of HRM. With the passage of time HR mangers have started speaking the language of business. HR job is highly converted one and so are the Hr practices that are becoming highly visible in the organization. Its significance does lie not only in the observable practice of its functions, but contributing to ad drawing from the highest level of managerial policy. So, the challenges in the HRM practices are being visualized and are better explained considering two different sectors of the Indian industries. For better evaluation we had further taken IT industry and cigratee industry. We had had telephonic conversation with different companies. Its just for a evaluation purpose and so no further comments on the policies and challenges had given till now.12. INTRODUCTIONIt is Department in order to successfully steer organizations towards The management has to recognize the important role of Human Resource profitability necessary for the management to invest considerable time and amount, to learn the changing scenario of the HR department in the 21st century. In order to survive the competition and be in the race, HR department should consciously update itself with the transformation in HR and be aware of the HR issues cropping up. With high attrition rates, poaching strategies of competitors, there is a huge shortage of skilled employees and hence, a company's HR activities play a vital role in combating this crisis. Suitable HR policies that would lead to the achievement of the Organization as well as the individual's goals should be formulated. HR managers have to manage all the challenges that they would face from recruiting employees, to training them, and then developing strategies for retaining them and building up an effective career management system for them. Just taking care of employees would not be enough; new HR initiatives should also focus on the quality needs, customer-orientation, productivity and stress, team work and leadership building. This report is divided into two sections that throw light on the emerging HR trends and discusses HR challenges in various companies like TCS,godfrey phillip,ITC,birlasoft This report should be valuable for practicing HR managers of every organization and also for those who have a significant interest in the area of Human Resource Management, to realize the growing importance of human resources and understand the need to build up effective HR strategies to combat HR issues arising in the 21st century. Human Resource Management has evolved considerably over the past century, and experienced a major transformation in form and function primarily within the past two decades. Driven by a number of significant internal and external environmental forces, HRM has progressed from a largely maintenance function, with little if any bottom line impact, to what many scholars and practitioners today regard as the source of sustained competitive advantage for organizations operating in a global economy. CHANGES IN HRM : Some of the significant changes that are likely to takeplace in the human resource management are as follows:1.Increase in education levels: Due to technological progress and the spread of2educational institutions workers will increasingly become aware of their higher level needs, managers will have to evolve appropriate policies and techniques to motivate the knowledge of workers. Better educated and organized workforce will demand greater discretion and autonomy at the work place.2.Technological developments: This will require retraining and mid-career training ofboth workers and managers. Rise of the international corporation is proving new challenges for personnel function.3.Changing composition of work force: In future, women and minority groups, SCsand STs would become an important source of man power in future on account of easy access to better educational and employment opportunities. Therefore manpower planning of every organization will have to take into consideration the potential availability of talent in these groups. Changing mix of the workforce will lead to new values in organizations.4.Increasing government role: In India, personnel management has become verylegalized. In future private organizations will have to co-ordinate their labour welfare programmes with those of the government private sector will be required increasingly to support government efforts for improving public health, education training and development and infrastructure.5.occupational health and safety: Due to legislative presence and trade unionmovement, personnel management will have to be more healthy and safety conscious in future.6.Organizational development: in future, change will have to be initiated and managedto improve organizational effectiveness. Top management will become more actively involved in the development of human resources.7.New work ethic: greater forces will be on project and team forms of organization. Aschanging work ethic requires increasing emphasis on individual. Jobs will have to redesigned to provide challenge.8.Development planning: personnel management will be involved increasingly inorganizational planning, structure, composition etc. Greater cost-consciousness and profit3orientations will be required on the part of the personnel department.9.Better appraisal and reward systems: organizations will be required to share gains ofhigher periodicity with workers more objective and result oriented systems of performance, appraisal and performance linked compensation will have to be developed.10.New personnel policies: new and better polices will be required for the work force ofthe future. Traditional family management will give way to professional management with greater forces on human dignity. Thus, in future personnel management will face new challenges and perform new responsibilities. Participative leadership will take the place of autocratic leadership. Creative skills will have to be redeveloped and rewarded emphasis will shift from legal and rule bound approach to more open and humanitarian approach. NEW TRENDS IN HRHuman 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 name of the game today in business is personnel . Nowadays it is not possible to show a good financial or operating report unless your personnel relations are in order. Over the years, highly skilled and knowledge based jobs are increasing while low skilled jobs are decreasing. This calls for future skill mapping through proper HRM initiatives. Indian organizations are also witnessing a change in systems, management cultures and philosophy due to the global alignment of Indian organizations. There is a need for multi skill development. Role of HRM is becoming all the more important. 4Some of the recent trends that are being observed are as follows: The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people centric organizations. Organizations now need to prepare themselves in order to address people centered issues with commitment from the top management, with renewed thrust on HR issues, more particularly on training. Charles Handy also advocated future organizational models like Shamrock, Federal and Triple I. Such organizational models also refocus on people centric issues and call for redefining the future role of HR professionals.To leapfrog ahead of competition in this world of uncertainty, organizations have introduced six- sigma practices. Sixsigma uses rigorous analytical tools with leadership from the top and develops a method for sustainable improvement. These practices improve organizational values and helps in creating defect free product or services at minimum cost. Human resource outsourcing is a new accession that makes a traditional HR department redundant in an organization. Exult, the international pioneer in HR BPO already roped in Bank of America, international players BP Amoco & over the years plan to spread their business to most of the Fortune 500 companies. With the increase of global job mobility, recruiting competent people is also increasingly becoming difficult, especially in India. Therefore by creating an enabling culture, organizations are also required to work out a retention strategy for the existing skilled manpower. 1. The Changing Role of the HR Professional humans, not commodities, and HR departments have to start seeing them differently. With the current push towards strategies that engage employees, attract top talent, and contribute to the bottom line, this change is imperative. A Finance person who only understands Finance and a financial perspective, a Sales person who only understands Sales and the Sales perspective these individuals will have limited career prospects and very little chance of succeeding in a leadership role. The same holds true for HR people. That thisis the case is good news for HR. It means that HR 5and HR people are too important to be set aside in the corner. It means that HR skills and knowledge need to be brought to bear on the strategic management of the organization. Organizations consist of people. People are real. You can see them, touch them, hear them. And people have capabilities. If HR is to be perceived as an enabler of business strategies, they need to be seen to be making measurable contributions to the bottom line through expense reduction, or revenue generation, talent management and risk mitigation. HR people need to be a lot more creative in the way they do things. The one size fits all approach doesnt work anymore. HR departments of today need to be the talent departments of tomorrow. 2. The War for Talent The key to attracting and retaining scarce skills is to be, and be seen to be, a first-tier employer that can meet the needs of high potential/high performance employees. Traditional workforce planning is being replaced by talent strategies and skills gap analysis. Once they determine the gap, it becomes clear what talent they need to hire, to layoff, or to develop or transfer internally. Now is not the time to sit in the ivory towers thinking you know who your major contributors are. You need to dig deep into the organization to identify the top talent, the high performers in every aspect of your business. In all likelihood its not the people who are the most politically astute or the most popular. Traditional marketing practices are going to have to be applied to recruitment. Employer branding and unique selling points with a strong differentiator are imperative. Look at strategies such as changing your employer brand from the groan-inducing were a big successful company to a company delivering on the promise of continuous learning, work-life balance, personally-fulfilling roles and innovative reward and recognition programs.3. The Healthy Workplace: Wellness, Work-Life BalanceThere is no competitive advantage in sick and stressed-out workers. There is growing recognition that there is a definite link between the work environment and the health and well-being of its employees. Further, employers are now recognizing the connection 6between employee health and the bottom line. When we look in the mirror, we see ourselves as entire human beings not just people with jobs and careers, but people with families, friends, beliefs, interests, passions, responsibilities, worries and futures. We need to look at our people through the same mirror not just as employees or colleagues but as total human beings. If companies ignore the full humanity of their people, or if people find it necessary to suppress their human-ness in the workplace, the tensions created eat away at the vitality of the organization. 4.The Impact of Technology Eventually technology is going to eliminate most HR jobs as they exist today. Which is another reason for HR professionals to become more strategic. Technology, with all its self-service and anytime-anywhere communications capabilities, coupled with outsourcing, guarantees there will be fewer HR people in corporations. Technology continues to impact us profoundly, both in our personal lives and in the workplace, and it will continue to change. Weve entered the century of the employee and technology has to respond. CRM or customer relationship management is giving way to ERM employee relationship management. Employee self-service has become as important as customer selfservice. Customized and personalized content will be king. Employees can self-manage activities previously handled by human resource professionals. This is a cost-saving and timesaving benefit to organizations and it frees the HR practitioners to focus on more strategic issues. But more importantly, it is a fundamental expectation of Gen Ys and Gen Xs. Technology that protects the privacy and security of HR data is more important than everbut more on that later. Its important that we continue to embrace technology and keep our eyes on new advances that may bring even better communication and collaboration tools. Technology helps people connect within the work environment.5. Talent Management: Leadership DevelopmentLeadership skills are not built through courses. Management is a function of what you do; leadership is a function of what you are. When planning leadership development initiatives, the tendency is to first look for courses. One of the scarcest capabilities, now and for the likely 7future, is leadership. As organizations, their customers, their employees and their environment become more global, more complex, more competitive and more subject to rapid and radical change, the competency requirements for successful leadership are increasing exponentially. Most organizations would acknowledge that they currently have a shortage of leadership talent or bench strength; how will they fare when the bar keeps on being raised? Leadership is less definable and therefore leadership capabilities are more difficult to build or transmit. Indeed, one could debate whether leadership skills can be taught at all, or whether they are innate.6. Corporate Values and CultureThese days is that more and more firms are unwilling to tolerate unethical behaviour from their executives. They are taking drasticaction as in the case of the Boeing CEO who was ousted because of unethical activities. Ethical behaviour should be a core component of company culture. Ethics related language in formal statements not only sets corporate expectations for employee behaviour, it also serves as a shield for companies in an increasingly complex and regulatory environment. But what is culture? What drives it? How do values affect corporate performance? Culture is not a concierge serving up free fresh fruit in the cafeteria, nor is it a values chart hanging on the wall purporting commitment to integrity, respect, honesty and customer satisfaction. Enron had a brilliantly-crafted set of corporate values. Obviously it was just there for decoration. . Organizational culture is the shared assumptions, beliefs and norms of behaviour of a group. It has a powerful influence on the way in which people behave. An effective corporate culture is not about being a nice place to work. It is about engaging employees at a fundamental level and translating that engagement to performance that meets the organizations objectives. Increasingly, companies around the world have adopted formal statements of corporate values, and senior executives now routinely identify ethical, behaviour, honesty, integrity, and social concerns as top issues on their companies agendas. Business leaders are now recognizing that an effective corporate culture is essential to longterm success. They are taking steps to align corporate culture to business strategy. Many organizations are now making their values explicit and thats a significant change from 8corporate practices 10 years ago. Leaders and top management must be responsible for building strong, highperformance cultures. They are the ones who construct the social reality, and shape the values of the organization.FUTURE ROLE OF PERSONNEL MANAGERSSome of the emerging trends in the role of personnel manager are as follows:(i). Personnel managers of future will have to stress upon overall development of human resources in all respects. (ii). The scope of human resource management will be extended to cover career planning and development, organization development, social justice etc. (iii). Enlightened trade unions will become an active participant in the organization and management of industry. (iv). The personnel manager will be required to act as a change agent through greater involvement in environment and scanning and development planning. They will have to devote more time to promote changes than to maintain the status quo. (v). The personnel function will become more cost-conscious and profit oriented. Instead of merely administering personnel activities, the personnel department will have to search out opportunities for profit improvement and growth. (vi). Greater authority and responsibilities will be delegated to personnel managers particularly in the field of employee welfare services. (vii). Personnel managers will have to continuously retrain themselves to avoid obsolescence of their knowledge and skills. Thus, the job of personnel managers will become more difficult and challenging in future. They 9will have to be experts in behavioral sciences. They will play a creative and development role. They will thus have play a creative and development role. They will have to acquire new skills, values, attitudes to discharge their new responsibilities successfully.103.HR TREND IN INFORMATION TECHNOLOGY INDUSTRYTechnology constantly generates unexpected consequence. The simple ability to send information anywhere immediately, at minimal cost has so many ramifications. The most obvious of the effects being in the reach and speed of dissemination of information. The Human Resource trend in Information technology is discussed in this study. Three significant growth trends in Corporate India are now pushing Hr Manger to look towards technology for solution. First an explosion in CEO Level searches and hires by Indian companies. People like Director of Tata Sons Alan Rosting, Ranbaxy CEO Brian Tempest, and Managing Directors of Indian Hotels Raymond Bickson are familiar examples. Second, many companies are searching for middle and entry-level talent. Tata Consultancy plans to hire 800 people in the US this year, mostly off campuses. Third, Indian companies are inheriting a large number of employees through global acquisitions. In this scenario- Role of HRM in integrating employees into the organization with speed ensuring high levels of performance becomes more critical than ever. And its is technology in the form of HR systems that is aiding the HR department in doing this today, keeping pace with the growing needs of Indian business.4.Challenges in Human Resources Management faced by various11indian Industries are:It is a battle where we realize that the balance comes from a lot of sharing of common chore, of sharing responsibilities and of sharing understanding most of all. implementing rigid flexibility. The time demandGlobalisation:- Many Indian firms are compelled to think globally, something whichis difficult for managers who were accustomed to operate in vast sheltered markets with minimal or no competition either from domestic or foreign firms. Indian firms need to move from one end of each continuum to the other end as shown below:Rigid, hierarchical and tall structureFlexible, flat and team based structures Family centric, closed minded & secretive environment Dispersed ownership, open minded & transparentCaste ridden, superstitious, laid-track styles of manage.Rational thinking & vibrant styles of management12Changed Employee Expectations: Employees demand empowerment and expectequality with the mangement. Previous notions about managerial authority are giving way to employee influence & involvement along with mechanisms for upward communication and due process. If we look at the workers unions of Otis, Hindustan Lever, ICI, TOMCO, Blue Star, Webel Electro, and Central Bank. They rewrite their agenda to include quality and better customer service and are even accusing the management of malpractices. So everytime there is need to redram the profile of the worker and discover new methods of training, hiring, renumerating and motivating employees.Outsourcing HR Activities: The trends towards outsourcing has been caused byseveral strategic and operational motives. HR departments are divesting themselves from mundane activities to focus more on strategic role. Outsourcing has also been used to help reduce bureaucracy and to encourage a more responsive culture by introducing external market forces into the firm through the biding process. It is a big challenge before the HR manager to prove that his/her department is as important as any other functions in the organization. The relevance of HR is at stack.Changing Workforce Dynamics: Frequently, physical relocation is required. Theincreasing number of dual-career professionals limits individual flexibility in accepting such assignments and may hinder number of dual-career professionals limits individual flexibility in accepting such assignments and may hinder organizational flexibility in acquiring and developing talent. Some demographic changes in the workforce having their own implications to the HR managers are(i) inceasing number of working mothers, (ii) a steady decline of blue-collar employees who are giving way to whitecollar employees, and (iii) increasing awareness & education among workers.Balancing Work-life: Balancing work & life assumes relevance when both husbandand wife are employed. Travails of a working housewife are more than a working husband, thus balancing it is becoming a major challenge for HR manager. So a programme aiming balancing work-life is required and are supposed to include: Childcare at or near the workplace, Job Sharing, Care for sick children and employees, On-site summer camp, Training supervisors to respond to work and family needs of 13employees, Flexible work scheduling, Sick leave policies, Variety of errands from dry cleaning, dropping children at schools, making dinner reservations etc and many more like the same or other. Making HR activities ethical: Hiring ethical strong employees is only thebeginning. The need to institute mechanisms to ensure ethical conduct of employees is increased a lot with the passage of time. The Hr manager needs to carefully screen applications for jobs, weed out those who are prone to indulge in misdemeanors and hire those who can build a value driven organization.Organizational Restructuring: Peter Drucker prophesis in his book(The NewRealities) is showing its colour and many big companies has reduced their number of management grades, elimination of layers, & redrawing reporting lines within their organization. ITC, HLL, Godrej & Boyce, RPG Enterprises, Raymond Woollen Mills, Shaw Wallace, Ballarpur Industries, Compton & Greaves are some of the companies that are doing so. Changes are required particularly during the time of Acquisitions and Mergers also during the bad whether of the firm. This is of need to keep people with and working effectively and efficiently. These are done according to the changing character of competition, as major companies operate through complex web of strategic alliances of varying degrees of permanence.Managing Diversity: Its value is getting more important issue because of: Increasein the number of young workers in the work-force, increase in the number of women joining the work-force, increase in the proportion of ethnic minorities in the total workforce, increase in mobility of work-force, international careers & expatriates are becoming common, international experience as a pre-requisite for career progression to many top-level managerial positions. Organisations that can manage diversity better trend to be more flexible because they have broadened their policies, are more openminded, have less standardized operating methods and have developed skills in dealing with resistance to change.Attitude towards Unions: Unionization is preferable because to remain unio-freecosts the organization heavily. Pay raises, out of turn promotions, generous perks & 14other benefits need to be doled out frequently to appease workers. General perception of managers is to avoid unionization but it is very beneficial to the organization. It provide a mean for workers to express before the management conditions prevailing in the workplace. But at the same time because of voice mechanism or the instrumentality role, unionized firm have lower turnover rate and encourage organization to provide more rational and professional management. So the work of HR mangers gets tough here to decide whether is should be there in the organization or not and if yes then how to control it. Strings of the union are required to be checked time to time for better performance in the firm.The Indian IT industry poses a baffling challenge to HR professionals-from recruitment to retirement, compensation to career planning and from technological obsolescence to labour turnover. This problem can be tackled with the use of HR planning which in itself is a challenging task in IT industry. Determining the strength required for the near future is a very complex problem in an IT company. The deciding factor is the companys perceived ability to bag projects both locally and internationally. The problem here is that until the company have sufficient right-mix of people, it cannot clinch a project. But unless there is a project, it cannot attract and retain people. With the advent of MNCs it may be noted that job prospects are gearing up. The multinationals are offering fantastic pay packets and working environments to their employees.155. TATA CONSULTANCY SERVICES AND THEIR HRM PROBLEMa) Company Profile of TCSTata Consultancy Services is an IT services, business solutions and outsourcing organization that delivers real results to global businesses, ensuring a level of certainty no other firm can match. With a vision of being in top 10 companies by the year 2010. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Mode, recognized as the benchmark of excellence in software development.TCS has over 120,000 of the world's best trained IT consultants in 42 countries, with an annual sales of $5.7 billion (fiscal year ending 31 March, 2008)b)CHALLENGES IN TCS161) The maintain workforce diversityThe future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a strategic organizational asset if an organization is able to capitalize on this melting pot of diverse talents. With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, especially in the global arena (Cox, 1993), which must be one of the important organizational goals to be attained. More importantly, if the organizational environment does not support diversity broadly, one risks losing talent to competitors.Since TCS has offices in more than 40 countries, the challange for hrm is to maintain the proper ratio between employee. foreign and indian origin2) the management of workplace diversityIn order to effectively manage workplace diversity, Cox (1993) suggests that a HR Manager needs to change from an ethnocentric view ("our way is the best way") to a culturally relative perspective ("let's take the best of a variety of ways"). This shift in philosophy has to be ingrained in the managerial framework of the HR Manager in his/her planning, organizing, leading and controlling of organizational resources.TCS deals with this challenge by conducting mentoring programs.3) Large workforceThere is a big challenge of maintaining large work force consisting of 1.3 lac employees for TCS4) Managing EISAs information is the basis of decision-making in an organization, there lies a great need for effective managerial control. A good control system would ensure the communication of the right information at the right time and relayed to the right people to take prompt actions. When managing an Executive Information System, a HR manager must first find out exactly 17what information decision-makers would like to have available in the field of human resource management, and then to include it in the EIS. This is because having people simply use an EIS that lacks critical information is of no value-add to the organization. In addition, the manager must ensure that the use of information technology has to be brought into alignment with strategic business goals.5) Control and measure resultA HR Manager must conduct regular organizational assessments on issues like pay, benefits, work environment, management and promotional opportunities to assess the progress over the long term. There is also a need to develop appropriate measuring tools to measure the impact of diversity initiatives at the organization through organization wide feedback surveys and other methods. Without proper control and evaluation, some of these diversity initiatives may just fizzle.6) Leading the taskA HR Manager needs to advocate a diverse workforce by making diversity evident at all organizational levels. Otherwise, some employees will quickly conclude that there is no future for them in the company. As the HR Manager, it is pertinent to show respect for diversity issues and promote clear and positive responses to them. He/She must also show a high level of commitment and be able to resolve issues of workplace diversity in an ethical and responsible manner.7) How to keep the level of recuitment even in recessionThe biggest challenge for HR is to maintain the company reputation, which it gained over the period by recruiting a large number of new employees every year.8) How to absorb all recruitmentThough there are recruitments in large scale, they do not have enough projects to absorb all the new recruited employees. In order to tackle this situation, they are calling the new recruited employees in small batches rather than 2-3 large groups.189) Employees eligible for promotionTCS has just suspended the promotion cycle till further notice. As told by Mr. Susheel(name changed) , he is eligible for promotion since Nov -2007.10) How to make more profit with same revenueAs per Economic times, TCS is planning to decrease the variable pay of executives by 1015% and keeping the gross same for middle management and developers.11) How to motivate employeeThe development of an appropriate organizational reward system is probably one of the strongest motivational factors. This can influence both job satisfaction and employee motivation. The reward system affects job satisfaction by making the employee more comfortable and contented Motivational factors in an organizational context include working environment, job as a result of the rewards received. The reward system influences motivation primarily through the perceived value of the rewards and their contingency on performance (Hickins, 1998). The challenge which HR is facing is that how to motivate employee without any significant salary hike or promotion.196. BIRLA SOFT AND THEIR HRM PROBLEMSa) company profileBirlasoft is a leading provider of information technology services in both onshore and offshore models to Fortune 1000 as well as mid-sized organizatiaons in banking, financial services, insurance, retail, healthcare, manufacturing and independent software vendors sectors. Birlasoft services include application development, support & maintenance, enterprise application implementation, integration, infrastructure management and quality assurance & testing.Birlasofts robust delivery processes embrace digitized project management methodologies, embedded within proven practices of Six Sigma, SEI CMMi Level 5 on Continuous Representation and secure services framework with BS7799. The Noida centers of the company have been recently assessed at PCMM Level 3 for its HR practices. Headquartered at Noida, India, Birlasoft has 4,000+ employees across US, UK, Germany, Netherlands, Czech Republic, Malaysia, Australia, Singapore and India.Birlasoft is part of the global $1.4 billion CK Birla Group which traces its roots back to over 150 years and has diversified interests ranging from automobiles, cement, paper, software etc. to hospitals, schools and colleges as part of its philanthropic work.The company is a joint venture of CK Birla Group of India and Computer Horizons Corporation (CHC) of USA. It is leading Information Technology company with offices world-wide. It offers high class solutions and offshore services to its clients that includes companies.20b) Challenges in birlasoft1. Communication Focusing on establishing effective communication throughout the organization and to ensure that Birlasoftians have the skills and avenues to share information and coordinate activities effectively. 2. PerformanceManagement Driving the organizations and its members progress by establishing objectives related to committed work against which performance can be measured, ascertain capability development assistance required to continuously enhance performance. 3. CompetencyDevelopment This starts with identification of requisite competencies at the organization level which are ultimately dependent on competencies that are needed to be identified, built or enhanced in the individual Birlasoftian. Enhancing constantly the capability of Birlasoftians to perform assigned tasks and responsibility in turn uplinks to the organization capability building. 4. Training and Development To ensure that the identified competency requirements are built through a systematic and focused approach. 5. Compensation To provide all individuals with remuneration and benefits based on their contribution and value to the organization in a fair and transparent manner. Competitiveness of the compensation offered in comparison with the prevailing markets' reality is the driving force. 6. Career Development To ensure that individuals are provided opportunities to develop their competencies that enable them to achieve professional and personal career objectives within the 21organizations goals.7. Participatory Culture A myopic outlook of utilizing talents of people only in the delivery of assigned duties has two broad undesirable effects: It prevents people from developing as well rounded professionals; and it denies the organization the readily available multi-talented internal resource pool that could potentially contribute to most of the challenges and opportunities facing the organization. Building a participatory culture enables availability of avenues to harness/give exposure to employees full capability by involvement in making decisions and solving problems that affect the performance of business activities227. INDIAN TOBACCO INDUSTRY:Large companies can afford to keep surplus staff and keep them engaged in internal projects or training programmes. However, employees deeply resent transfers from one projects to another as it adversely affects their carrier planning and prospects. Unexpected employees turnover and overseas deputation may aid further strain on HR department. Notwithstanding with the complexity of the problem, it has to be tackled to enable the HR department to plan its recruitment campaign, at least 3 months in advance. The marketing department has to play a vital role here. It must forecast the technologies in demand in the near future and indicate what slice of the cake the company can reasonably expect to get so recruitment and training process can be greater geared accordingly.a) Company ProfileITC is one of India's foremost private sector companies with a market capitalisation of over US $ 13 billion and a turnover of US $ 3.5 billion. Rated among the World's Best Big Companies by Forbes magazine and among India's Most Respected Companies by BusinessWorld, ITC ranks third in pre-tax profit among India's private sector corporations. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products.23B) CHALLENGES FACED ITC BY THE HR MANAGER1. ATTRITION Attrition is the gradual reduction of a workforce by employees' leaving and not being replaced rather than by their being laid. Reducing attrition rate has been a challenge for HR Managers since many years. Tobacco industry was not much not affected by the problem of attrition, but due to stringency in govt. policies this problem became a prominent challenge for HR Managers of this industry. The same is the case with HR Manager of ITC, due to stringency in govt. policies the sales went down and the profits declined. In order to maintain the profit levels employees were pressurized and thereby adding to the attrition rate. Now, HR Managers are working hard to reduce this increasing attrition rate. 2. RECRUITMENT AND TRAINING As the employees are leaving the organization due to increased work pressures, it has become mandatory for the HR Manager to recruit new employees. And in this liquidity crunch they are spending on the recruitment and training of the new recruits. 3. RETENTION Retention is a process of continued possession. Retaining an employee without giving any fringe benefits is although more difficult. In the current scenario when each and every organization is suffering from liquidity crunch it is very difficult for an organization to give tangible or intangible benefits. HR Manager of ITC also is moving in the same boat. He is also facing difficulties in retaining the old employees, as he is not able to motivate them and with the increased pressure the attrition is increasing.248. GODFREY PHILLIPS AND THEIR HRM PROBLEMSa) Company ProfileGodfrey Phillips is today the second largest player in the Indian cigarette industry with an annual turnover of over US$ 265 million. The company was incorporated in India in 1936, the Company established its own manufacturing facilities in 1944. The Company today is the proud owner of some of the most popular cigarette brands in the country like Red and White, Four Square, Jaisalmer, Cavanders, Tipper and Prince.Its products are distributed through an extensive India wide network comprising 484 exclusive distributors and over 800,000 retail outlets b) Challenges in GPI1.Performance ManagementDriving the organizations and its members progress by establishing objectives related to committed work against which performance can be measured, ascertain capability development assistance required to continuously enhance performance. 2. Planning a Mentoring ProgramOne of the best ways to handle workplace diversity issues is through initiating a Diversity Mentoring Program. This could entail involving different departmental managers in a mentoring program to coach and provide feedback to employees who are different from them. 25In order for the program to run successfully, it is wise to provide practical training for these managers or seek help from consultants and experts in this field. Usually, such a program will encourage organizations members to air their opinions and learn how to resolve conflicts due to their diversity. More importantly, the purpose of a Diversity Mentoring Program seeks to encourage members to move beyond their own cultural frame of reference to recognize and take full advantage of the productivity potential inherent in a diverse population. 3. Training and DevelopmentTo ensure that the identified competency requirements are built through a systematic and focused approach. 4. Organizing Talents Strategically-In the GPI a HR Manager must be able to organize the pool of diverse talents strategically for the organization. He/She must consider how a diverse workforce can enable the company to attain new markets and other organizational goals in order to harness the full potential of workplace diversity. An organization that sees the existence of a diverse workforce as an organizational asset rather than a liability would indirectly help the organization to positively take in its stride some of the less positive aspects of workforce. 5. Motivational Approaches Workplace motivation can be defined as the influence that makes us do things to achieve organizational goals: this is a result of our individual needs being satisfied (or met) so that we are motivated to complete organizational tasks effectively. As these needs vary from person to person, an organization must be able to utilize different motivational tools to encourage their employees to put in the required effort and increase productivity for the company.CONCLUSION26Human resource Management will be the key area of focus in 21st century as in companies and government organization put in place strategies to cope up with the economical crisis and recovery. The so called war for talent is on the backburner as the focus shifts to hiring freezes, benefits and compensation cost management, and workforce reduction in the hardest- hit segment and as the the era of skillbased workers has arrived but if India wants to truly move to the global ground, it has to spruce up its workforce. Small may be beautiful, but not in the IT industry. In the knowledge era and a skill-based economy, it has become imperative that human resources become one of the most essential ingredients of success. The growth of IT companies and other companies are worldwide depends on its people and the intellectual capital it possesses. Knowledge workers has become a buzzword in todays scenario. And if we look at the top software exporters, they have been growing phenomenally in workforce strength. To make it big in the global software market, India needs to increase its mass of knowledge workers. The total human resource strength of the IT industry as a whole stands at 425,609. A company-wise break-up of this figure reveals that nearly 525 companies constituting 35% of the IT industry employ an average of 58 persons each, 750 companies constituting 50% of the industry employ an average of 275 persons each, and 150 companies constituting 10% of the industry employ an average of 726 persons each. At least 40 companies have more than 1,000 employees, while some very big companies like TCS and Infosys have staffs above 5,000 each. As we already know that Human Resource Management of the organization deals with the individuals putting their hard work to meet the organizations goals. Managing people is the toughest element of any organization than land, machinery or finances. Every human being has its own degree of preferences, likings and attitude.REFERENCES:www.godfreyphillips.com/ www.itcportal.com/ www.humanlinks.com/manres/articles.htm/ www.humanresourcesmagazine.com.au/companies/ITC-Learning 27www.hinduonnet.com/businessline/2001/01/19/stories/071952tb.htm http://www.henley.reading.ac.uk/management/about/staff/c-j-brewster.asp28
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