hrm project final
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A Comprehensive Project on Challenges of Human Resource Management
submitted in Partial fulfillment of the
Requirements for the Programme of Human Resource Management of Gujarat Law Society
By
KUNAL GOSWAMI (HRM 1015)
CHANDNI KACHHIA (HRM 1016)
Guided By:
Prof. Jasmin Padiya
GLS CENTRE FOR MANAGEMENT EXCELLENCE
2011
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Preface
As HRM students it is important to supplement theoretical knowledge and due to the innovation
and modernization and with the development in concept of the management, the need arises for
manager to be trained in a professional manner. It is necessary to know the implications for
HRM students.
Project study gave us an opportunity to understand the various practical aspects of business and
we learned to apply our subject concepts in the study.
The subject for whom this project is undertaken deals with finding marketing research problem.
There is several approaches to problem. Various techniques are used to collect primary data. It is
very necessary that the data collected should be appropriate respondance of the target segment.
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Acknowledgement
It is our pleasure to acknowledge those who have contribute to this project directly or indirectly,
through it will be still a adequent appritiation of there contribution, we hear by acknowledge the
names of the people to whom we hall always grateful.
We are very thankful to Professor Jasmin Padiya, Professor Deepti Arrora, and Rushab Shah
who perform or our internal guide for this project thankful for his constant guidance, support and
Inspiration.
Thanks to our parents who always keep us away from falling apart apart during endless hours of
our project, they always keep our spirit up; we would like to thank all friends of our college for
the moral support provided of them throughout the HRM curriculum.
We early look forward for the suggestion for improvement from the readers of these Project.
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Executive Summary
In this project HR is working on the Challenges, which is faced in Human Resource
Management. To survive in this highly competitive scenario, managers are being pressurized to
improve quality, increase productivity, cut down waste and eliminate inefficiency. The efforts of
the employer the employee assume relevance in this context. And this is where Human Resource
Management can play a crucial role.
The role of the Human Resource Manager is evolving with the change in competitive market
environment and the realization that Human Resource Management must play a more strategic
role in the success of an organization. Organizations that do not put their emphasis on attracting
and retaining talents may find themselves in dire consequences, as their competitors may be
outplaying them in the strategic employment of their human resources.
In this Project we can focus on the Challenges which HRM, how it can be useful to organization
and there relevant resources.
The Challenges which we can describe in this Project as per the needs of company¶s are as
follow:-
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Challenges of Human Resources Management:
1. Going Global
2. Embracing technology
3. Managing Change
4. Developing human capital
5. Responding to the market
6. Containing Costs
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Conclusion on Challenges
Going Global:-
The key to creating a consistent corporate culture across multiple locations is maintaining the
critical balance between a strong corporate culture and local cultural differences.
Finding competent individuals that understand geographies, cultures, laws, and business practice.
Embracing New Technology:-
Today, many firms are using technology to manage their HRM called Human Resources
Information System (HRIS)
HRIS ±computerized system that provides current and accurate data for purposes of control and
decision making.
So, how to come overall on these New Technology, we can emphasis on these.
Managing Change:-
This summary is intended as an aide memoire to employers and line manager and a useful
reference point for businesses.
Change can be stressful and destructive when it is either mistaken or mismanaged. Few changesaffect everyone in the same way, and the impacts of certain changes may not be immediately
apparent. There might be hidden and longer term consequences. Board members may be divided
into camps between those who are for or against particular changes, while those who are
indifferent or ambivalent may simply µgo with the flow¶.
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Developing Human Capital:-
Human capital ±the economic value of knowledge, skills, and capabilities.
Human capital is a valuable concept because it recognizes that people should be treated as assetsrather than as an expense. Seems to me, security professionals have been arguing that point about
their profession for a long time.
Developing human capital through HR would not be complete if consideration is not given to the
issue of values and ethics. Positive work values, the spirit of competition and integrity must be
an inherent part of the labour force. Employers are concerned about work attitudes among
workers. They are concerned about job-hopping, dislike for hard work and their unwillingness to
put in extra efforts especially to work over-time.
Responding to the Market:-
Broadly defines the concept of market failure or winner and explores options for responding to it.
It pays particular attention to the role of business leaders in addressing management.
Meeting customer¶s expectations is essential for any organization. Focusing on internal
management issues, managers must also meet customer requirements of quality, innovation,
variety, and responsiveness.
Containing Costs:-
A guided tour through a streamlined e-recruiting process with an in-depth view of the option for
boosting the quality of your talent pool while reducing recruiting costs and time-to-time.
Investments in reengineering, TQM, human capital, technology, globalization, the like are all
very important for organizational competitiveness.
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Introduction
About and Importance of HR
Define:-
� ³HRM is the function facilitating the most effective use of people to achieve both
organizational and individual goals´.
� ³HRM is that field of management which deals with planning, organizing &
controlling the functions of procuring, developing, maintaining and utilizing labour
force such that organizational & individual goals are fulfilled´.
� Process of acquiring, training, appraising and compensating employees such that they are
motivated to achieve both the organizational and individual goals.
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Importance of HRM
� Importance of human resources can be discussed at four levels:
± Corporate
± Professional
± Social
± National
1. Importance of HRM is classified as under:
1. Corporate:
a. HRM can help an enterprise in the following ways:
b. Attracting talent through effective HRP
c. Developing necessary skills & attitude with training
d. Securing cooperation through motivatione. Retaining talent through the right policies
2. Professional:
a. HRM helps improve quality of work life and contributes to growth in the
following ways:
b. Opportunities for personal development
c. Motivating work environment
d. Proper allocation of work
e. Healthy relationships between individuals & groups
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3. Social
a. Society benefits from good HRM in many ways:
b. Good employment opportunities
c. Development of human capital
d. Generation of income & consumption
e. Better lifestyles
4. National
a. Drivers of development of a country
b. Deliver economic growth
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Introduction on Challenges of HRM
� Going Global:
Involvement in global markets presents the firm with a number of challenges. These challenges
influence competitive advantage in global markets, and in part determine how readily the firm
can achieve economies of scale and scope as well as realize synergies from operation in a multi-
country environment. In striving to develop a strategy that will make it more competitive, the
firm must grapple with four interrelated challenges of global marketing strategy - change,
complexity, competition and conscience.
Many international companies (84 percent) indicated that their parent organization was trying
to establish a corporate culture at all locations/offices that was consistent with its goals and
vision. Most organizations (88 percent) reported that creating a corporate culture is difficult because, in certain locations, local cultures and customs have a moderate to great influence on
the way business is conducted. Organizations have taken the following actions when trying to
create a consistent corporate culture.
The process of globalizing resources, both human and otherwise, is challenging for any
company. Organizations should realize that their global HR function can help them utilize their
existing human talent from across multiple geographic and cultural boundaries. International
organizations need to assist and incorporate their HR function to meet the challenges they face if
they want to create a truly global workforce.
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� Embracing technology
Once you develop a policy, make sure that everyone on your team understands the importance of comprehensive and uniform information tracking. Today¶s technology can literally track an
unlimited number of constituents and their vital information, but your database is only as good as
the information entered into it.
The start of each fiscal year provides an opportunity to revisit your evaluation criteria and ensure
that each development officer has a clear understanding of his or her goals and how they fit into
the overall fundraising efforts of the organization.
Keep in mind that every organization is different and requires benchmarks in tune with its
specific needs and goals, so a little trial-and-error might prove useful in finding what works for
you.
� Managing Change
As the organizations are going Global this is one problem faced by many organizations of
managing the change in the organization and how to make people acquanted with the changes.
84% of executives polled said that they have at least one change initiative going on in their
organizations.
Responsibilities change, job assignments change, work processes change. And this is a
continuous change- a part of the job ±rather than temporary.
� Developing human capital
The objective of the Forum is to identify key human resources development challenges and
needs of the sector, and to share best practices in human resources management, learning,training and development. The Forum will look at the human capacity development practices,
experiences and challenges facing organizations in the sub-region.
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It will also provide a platform for sharing global best practices and new models of managing
talent in the ICT sector, with a particular focus on emerging trends in learning and development.It will provide an opportunity and platform for specialists from the different participating
countries to share their knowledge and expertise. The ITU will share its ideas about the ITU
Academy and its new online portal, which is intended to streamline the learning anddevelopment activities.
Responding to the Market
Organizations use several approaches to address this very crucial issues:
1. Total Quality Management (TQ M)
2. Six Sigma
3. Reengineering
TQM, Six Sigma, Reengineering, and HRM
TQM ±is a set of principles and practices whose core ideas include understanding customer
needs, doing things right the first time, and striving for continuous improvement.
Six Sigma ±a statistical method of translating a customer¶s needs into separate tasks and definingthe best way to perform each task in concert with the others.
Reengineering ±has been described as ³the fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements in cost, quality, service and speed.
Containing Costs
Investments in reengineering, TQM, human capital, technology, globalization,
and the like are all very important for organizational competitiveness.
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Yet, at the same time, there are increasing pressures on companies to lower costs and improve
productivity to maximize efficiency.
Labor costs are one of the largest expenditures of any organization
Organizations have tried a number of approaches to lower costs:
Downsizing, outsourcing and employee leasing, and productivity enhancement.
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Objective of the Project
Going Global
Involvement in global markets presents the firm with a number of challenges. These challenges
influence competitive advantage in global markets, and in part determine how readily the firm
can achieve economies of scale and scope as well as realize synergies from operation in a multi-
country environment. In striving to develop a strategy that will make it more competitive, the
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firm must grapple with four interrelated challenges of global marketing strategy - change,
complexity, competition and conscience.
Workforces are becoming more globally-dispersed.
More than 50% of respondents' workforces reside outside of their corporate home country ± the
pressure to standardize policies and processes, manage increased workforce mobility and manage
compliance needs is greater than ever.
Many senior HR executives are stepping up into global roles, but are
finding the transition challenging.
45% of the executives have moved into global roles over the last two-to-three years ± many of
these transitioned in the last year alone. However, while roles are being structured globally,
most of the executives have been struggling to get away from dealing with local and regional
issues.
Lack of standardization.
The lack of a consistent approach to governance and compliance,
especially in Europe and Asia ± where employment and tax laws vary widely in different
jurisdictions ± creates further challenges for HR leaders. There is also a lack of standardization
around the approach to global mobility, which hinder's HR's ability to apply consistent
procedures to the compensation and benefits of a workforce that has been growing rapidly. It is
becoming increasingly important for companies to properly manage the logistics of moving there
employees from country to country.
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The Four ³Ps´
The four P¶s of business marketing management will serve as the core elements of aiding the
businessman who wants to go global. As the company gears towards global marketing where one
brand or product is marketed the same way everywhere, the four P¶s are going to be affected.
Product lifecycle
In the same way, it will define how the company must deal with the evolutionary movement of
global marketing. The product, price, placement and promotion must be considered in
accordance with the market variations from country to country. As the global marketing strategy
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4. VISIT THE MARK ET
Face-to-face meetings are still the best way to finalize negotiations and really understand your
clientele, as well as facilitating the relationships that will pay off in the long run.
5. WRITE A PLAN
If you require financing to launch this new venture you will need to prepare a Business Plan;
even if no financing is needed, a Strategic Intent and Marketing Plan should be prepared, since
this expansion should be treated as if it were a new division of the company.
6. FORM STRONG ALLIANCES
Entering a new market with the help of a local partner or agent may be more prudent, and could
allow you to test the market before entering it fully. Joint ventures, strategic alliances and
technology exchanges can be very successful, and are often overlooked as an option to
expansion.
7. CONSULT THE EXPERTS
Don't attempt to go it alone; local legal and financial experts should obviously be engaged, as
should experts in PR, marketing and other specializations pertinent to your industry.
8. BE CULTURALLY SENSITIVE
Adapt your services to the local culture. Translate and localize all pertinent internal and external
communications and information, even if English is understood by all parties.
9. CONSIDER THE LOGISTICS
Local regulations, currency fluctuations, tax implications, immigration issues for transferring
staff - these are just some of the logistics that need to be assessed.
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10. BE PATIENT
Keep in mind that this new venture requires a serious commitment, both from a time and
financial perspective. Be flexible in your dealings in the new market and you will reap the
rewards.
Advantages of Going Global
y Lower Marketing Costs:
If you are to consider lump-sum cost then, yes, it is high, but the same cost even goes
even higher if the company has to market a product differently in every country that it is
selling.
y Global Scope:
Scope of this kind of marketing is so large that it becomes a unique experience.
y Brand image Consistency:
Global marketing allows you to have a consistent image in every region that you choose
to market.
y Quick and Efficient Use of Ideas:
A global entity is able to use a marketing idea and mould it into a strategy to implement
on a global scale.
y Uniformity in Marketing Practices:
A global entity can keep some degree of uniformity in marketing throughout the world.
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Disadvantages of Going Global
y Inconsistency in Consumer Needs:
American consumer will be different from the South African. Global marketing should be
able to address that.
y Consumer Response Inconsistency:
Consumer in one country may react differently than a consumer in another country.
y Country Specific Brand and Product:
A Japanese might like a product to have a traditional touch, where as an American might
like to add a retro modern look to it. In this case, a global strategy is difficult to device.
y The Laws of the Land Have to be Considered:
Original company policies may be according to the laws of home countries. The overseas
laws may be conflicting in these policies.
y Infrastructural Differences:
Infrastructure may be hampering the process in one country and accelerating in another.
Global strategy cannot be consistent in such a scenario.
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2. Embracing New Technology
Advancements in communication and software technology are creating significant productivity
improvements, particularly for the human resource professionals who use contemporary human
resource and talent management systems.
Many talent management system software providers, including those who develop applicant
tracking/recruiting systems, integrated payroll/human resource systems and learning
management systems are actively working to embed several features into their products. Some of
the most notable advancements include:
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y Alert Technology
y Conditional Workflow
y
E-mail-based Actions
Even though these features have been in existence for many years, it takes time for software
developers to incorporate these features into their products. In many cases, it requires significant
redevelopment of the provider¶s software application. For example, the concept of employee self
service has existed for decades. However, it required the affordable access to an enabling
communication medium (Internet/World Wide Web) and developers to assimilate thistechnology into their products. Today, employee self service is a common feature that most
human resource applications utilize.
Here are some brief definitions and examples of the newest state-of-the-art features that are
available for you to implement, and what you should now expect from using these solutions.
Alert Technology:-
Alert technology automatically monitors your human resource system(s) and proactively
distributes information to your human resources and payroll personnel, managers and employees
via your e-mail system. Specified actions and dates trigger automated messages, informing
relevant parties about key activities and pending issues. For example, alerts can be established to:
y Monitor key dates and send notices to employees and managers about annual
performance reviews.
y Send automatic replies via e-mail for items such as thank you notes to applicants who
send in resumes.
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y Generate standard e-mail scripts to welcome new employees, while informing relevant
departments of the new hire.
Before alert technology arrived, reports would have to be manually initiated by users to identify
the needed information. Alerts can significantly reduce time-consuming administrative tasks
associated with paper flow.
More and more human resource teams are demanding that their applications utilize alert
technology. In many cases, it has become apparent that simple, yet time consuming activities
have to be automated to save time and increase effectiveness. Software providers have created
predefined, easy-to-use templates for common activities like new hire and termination actions,
performance review tracking, overtime and paycheck related listings, attendance records,
applicant tracking, and training management tracking.
In other cases, the software provider can work with a third party company, such as Cognos, that
specializes in providing alert technology for software applications. In this case, a number of
sophisticated alerts can be established with different output formats (e-mails, document files,
spreadsheets or printed paper).
Conditional Workflow:-
Workflow automation is not new to the human resource system software industry. However,
significant advancements in the sophistication of workflow and adoption by all facets of business
management software are motivating many human resource system software providers to include
³conditional´ workflow technology in their applications.
Workflow is a term used to describe the tasks, procedural steps, organizations or people involved
required input and output information and tools needed for each step in a business process.
Workflow automation takes an existing chain of work, such as initiating an employee¶s pay
increase, and makes it automatic, usually with workflow software that guides information from
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point to point without human intervention.
Early versions of workflow within human resource applications usually limited users to pre-
defined workflows with limited functionality. Typically, automated workflows included routing
requests for approval and/or notification. However, the same workflow actions were taken
regardless of who and/or what it was for. Simple workflow templates worked with a limited
ability to differentiate the data¶s ³conditions.´ The workflow is worked on an ³unconditional´
basis.
To illustrate an example of a non-conditional workflow in human resource management process,
we will use a pay increase. For example, let us assume a company has a policy that requires
division president approval for all exempt personnel pay increases over 10 percent. In an
environment that uses simple, non-conditional workflows, all pay rate requests would be
forwarded to a designated number of approvers. In most cases, the chain of approvers may be
different depending on your organizational assignments (company, department, location, etc.).
However, with non-conditional workflow, there is no way to define a different course of action
(number of approvals, type of notices, messages, etc.) based on whether certain data conditions
exist. In this case, all pay increases would require the same number of approvals. In our example,
the division president could either approve all or no exempt personnel pay increases.
If conditional workflow technology is utilized, we would be able to identify different courses of
action, depending on whether certain conditions are met. In our example, we would be able to
tell the system to include the division president as an approval step if a pay increase for exempt
personnel is greater than 10 percent.
E-mail-based Actions:-
We can probably all agree that e-mail has been embraced by business as one of the primary
communication tools between people and, more recently, software systems and people. People
send people e-mails. Software systems also send people e-mails. Common e-mails from software
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systems include alert notices from your bank or credit card companies, Internet order
confirmations, notices that e-mail was not delivered, etc.
Just a few years ago, the e-mails we received from software systems were typically just notices.
However, as technology advanced, we began to receive e-mails requiring some form of required
³action.´ These e-mails typically contained Web site links to the sites/software requiring the
action. However, in most cases, e-mail recipients had to ³sign-in´ to the originating software
system and perform the required action indicated by the e-mail. Using today¶s e-mail and
software technology, the e-mail recipient is now able to react to the request within the e-mail
itself, thus bypassing the sign-in requirement. The benefit of using this technology is that users
do not need to learn the underlying software application and can respond instantly using a
familiar communication medium: e-mail.
Using the pay rate increase example in the previous section, an automated workflow may have
been designed to send an e-mail indicating that an approval action needed to be taken. Using
older technology, the e-mail may have contained a Web site link to the human resource system.
However, it still required a user to sign into the system and process an approval for the workflow
request. Using current technology, the e-mail may include an ³Approve´ or ³Deny´ button that
the user can select, thereby performing the action without signing into the originating system.
What to Consider
Today¶s human resource management systems are embracing the latest trends in software
technology. Some of the recent state-of-the-art features include alert technology, conditional
workflow and e-mail-based actions. As your company is upgrading or adding to its humanresource management system, consider selecting a partner whose systems use any or all of these
time and money saving technologies. Not only will this allow you to improve how you execute
today¶s business processes, but it will also prepare the foundation you will need for continuing to
add capabilities, efficiencies and speed in a business environment that only promises to be more
demanding.
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3. Managing Change
84% of executives polled said that they have at least one change initiative going
on in their organizations.
Unfortunately, successful change or change management rarely occurs naturally or easily. Here
is why:
1. Not establishing a sense or urgency
2. Not creating a powerful coalition to guide the effort
3. Lacking leaders who have a vision
4. Lacking leaders who communicate the vision
5. Not removing obstacles to the new vision
6. Not systematically planning for and creating short-term ³wins´
7. Declaring victory too soon
8. Not anchoring changes in the corporate culture
Responsibilities change, job assignments change, work processes change. And this is a
continuous change- a part of the job ±rather than temporary.
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HR tips for Managing Change
1. Understand why you want or need to change.
If you don¶t, no-one else will« Effective communication is one of the key factors in the
successful implementation of change.
2. Get the right people in place to lead the change.
What skills do you need? What attitudes are you looking for? And who has them? Use a tool
like Belbin team roles to help you identify who has the attributes you are looking for.
3. Devise the vision and strategy
what needs to be done and when. If you are sponsoring or leading change it¶s hard to remember
that everyone does not have all the knowledge that you do. So using a simple method of
identifying what needs to happen when and updating it regularly allows others to understand the
impact on them.
4. Explain the reasons for the change to your people.
Give people the opportunity to ask questions and to challenge what is happening ± throughout
the process. This helps their understanding of why things need to change. The more open the
process the more trust will be built as the project proceeds.
5. Get everyone involved in how the change is implemented.
They will help you identify the real impact where it matters most ± at the front line. Find out
who¶s implemented that type of change before and give your people the opportunity to visit or
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see for themselves what pitfalls have been encountered and how things have changed for the
better.
6. Get rid of obstacles that stand in the way of achieving your vision.
For example, get rid of old systems and procedures that no longer serve a purpose. Remember
that people will hang on to the familiar and do what they¶ve always done if they have the
opportunity to! This will disempower the saboteurs - people who stand in the way of progress.
7. Identify some short term wins ±
nothing motivates like success! Changes, like providing new PCs before the implementation of a
new IT system, can help people see some benefits from the change, and at an early stage.
8. Encourage risk taking, new ideas, activities and actions.
Involving people along the way helps them to understand what¶s in it for them. Remember that
there are lots of examples from history of many failures before a great success, so
encouragement from you could lead to more benefits than you ever expected.
9. Recognize and reward people who made the wins possible.
Differentiate between those who are championing the change and those who aren¶t. You want to
encourage the heroes rather than the saboteurs. And those who are not either (the sheep!) will
follow those with the loudest voices.
10. Keep asking questions to check out the progress you are making.
Talk to people involved in the project often ± and not just those who are accountable for the
delivery of the project. By talking to anyone affected by the project you will be demonstrating
that you are interested in people¶s views and discover what is really happening.
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4. Developing Human Capital
The idea that organizations ³compete through people´ highlights the fact that success
increasingly depends on an organization¶s ability to manage Human capital.
Human capital is intangible and elusive and cannot be managed the way organizations manage
jobs, products, and technologies.
One of the reasons for this is that employees, not the organization, own their human capital.
If valued employees leave a company, they take their human capital with them, and any
investment the company has made in training and developing those people is lost.
To build human capital in organizations, managers must continue to develop superior knowledge, skills, and experience within the workforce.
Human Capital and HRM
Staffing programs focus on identifying, recruiting, and hiring the best and the brightest talent
available.
Training programs complement these staffing practices to provide skill enhancement,
particularly in areas that cannot be transferred to another company if an employee should leave.
(What are transferable skills?)
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The Importance of Developing Human Capital
Corporations are recognizing the importance of investing in their employees now more than ever
before. Companies are beginning to understand that to stay on top in the global economy, they
need to place more and more emphasis on developing and retaining their people. Organizations
that appreciate the financial impact of their employees often refer to them as human capital.
Derek Stockley, who works as a human resource trainer, defines human capital as ³recognition
that people in organizations and businesses are an important and essential asset who contribute to
development and growth, in a similar way to physical assets such as machines and money. The
collective attitudes, skills and abilities of people contribute to organizational performance and
productivity. Any expenditure in training, development, health and support is an investment, not
just an expense´. He continues to say, ³Competition is so fierce and change is so fast, that any
competitive edge gained by the introduction of new processes or technology can be short-lived if
competitors adopt the same technology. But to implement change, their people must have
thesame or better skills and abilities.
In defense of this statement, we have noticed a shift in our clients' strategic values from the
tangibles to the intangibles. What began as a change in requirements for senior executive
searches has become a shift permeating through the ranks of all the organizations we service. In
other words, our clients have shifted their hiring focus from technology to people and process. I
believe this trend is one of the factors that has increased the desire to hire non-traditional
information security professionals by many of our forward-thinking clients.
This reprioritization of the value of human capital has changed the profile of what a successfulcandidate looks like, even in the most technical roles.
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Relationship and consensus building skills are highly sought after at the middle management
level. The job description for a recent middle management search required the ³ability to build
relationships with Business and Technology leadership, audit personnel, legal counterparts,
compliance, human resources, and internal and external cross functional teams.´ To read
between the lines: If you are to be successful and valuable you will need to create the personal
relationships necessary to address the unique requirements and risk appetites of the business, so
that your solutions are measured, balanced and effective.
At the executive level, identifying candidates with proven program management skills is a
priority. Many corporations are creating broad-reaching IT risk management and business
resiliency programs. In many cases these programs focus on developing and centralizing
governance and performance metrics models. Success at this level requires leadership skills with
the ability to manage diverse groups and multiple projects while driving results.
Consulting firms are strategically growing their practices to support clients committed to acting
on the results of audits and assessments tied to all of the recent focus on regulatory requirements.
Those being hired are addressing not just technology, but the broader issues related to process
design and improvement. Professionals skilled in Six Sigma and ITIL are able to differentiate
themselves.
The bottom line is this. In order to achieve professional growth and success in the next period of
increased talent acquisition, technology professionals are going to have to step out of their
comfort zone and develop the holistic, relationship-focused business skills that companies are
supportive approach to recruiting and retention if they want to find and keep the new breed of
evolving talent
Human capital is a valuable concept because it recognizes that people should be treated as assets,
rather than as an expense. Seems to me, security professionals have been arguing that point about
their profession for a long time.
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5: Responding to the Market
Organizations use several approaches to address this very crucial issues:
1. Total Quality Management (TQ M)
2. Six Sigma
TQM, Six Sigma, Reengineering, and HRM
TQM is a set of principles and practices whose core ideas include understanding customer
needs, doing things right the first time, and striving for continuous improvement.
Six Sigma ±a statistical method of translating a customer¶s needs into separate tasks and defining
the best way to perform each task in concert with the others.
As the role oh HR we can justify there three challenges in
detail:
Total quality management (TQM) is an improvement program which provides tools and
techniques for continuous improvement based on facts and analysis; and if properly
implemented, it avoids counterproductive organizational infighting.
Plan-do-Check-Act (PDCA) Cycle:
The Plan-Do-Check-Act (PDCA) cycle applies the scientific method to
problem solving. In the plan phase, the problem solving team analyzes data to
identify possible causes for the problem and then proposes a solution.
In the Do phase, an experiment is conducted. In the check phase, the results of the experiment
are analyzed. And in the Act phase, if the results of the experiment are favorable, the plan is
implemented. If the results of the experiment are not favorable, the team goes back to the
original data and starts allover again.
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Perhaps the most important feature of TQM is that "it improves productivity by encouraging the
use of science in decision making and discouraging counter productive defensive behavior .
Thousands of organizations have been involved in total quality management (TQM) and similar
programs.
Advantages of Total Quality Management:
1) Improves reputation- problems are spotted and sorted quicker so there are zero defects
2) Higher employee morale± workers motivated by extra responsibility, team work and
involvement in decisions of TQM
3) Lower costs ± Decrease waste as fewer defective products and no need for separate
4) Quality Control inspectors
Disadvantages of Total Quality Management:
1. Initial introduction costs- training workers and disrupting current production whilst beingimplemented
2. Benefits may not be seen for several years
3. Workers may be resistant to change ± may feel less secure in jobs
.
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Six Sigma
Six Sigma is a meticulous methodology that make use of information management by facts and
statistical analysis to define, measure and improve a company's operational performance,
practices and systems. It identifies and prevents "defects" in manufacturing and service-related
processes to anticipate, and achieve or exceed total customer satisfaction.
The primary objective of the Six Sigma methodology is the implementation of a measurement
based strategy, which focuses on process and sub-processes improvement through the application
of Six Sigma best practice such as DMAIC and DMADV. The Six Sigma DMAIC (Define,
Measure, Analyze, Improve, Control) method is applied for improving existing processes and
looking for incremental improvement. The Six Sigma DMADV (Define, Measure, Analyze,
Design, Verify) is applied for developing new processes or products at Six Sigma quality levels.
It can also be employed if a current process requires more than just incremental improvement
.
Advantages :
(1) Six Sigma is driven by the customer and thus aims to achieve maximum customer
satisfaction and minimizing the defects. It targets the customer delight and new innovative ways
to exceed the customer expectations.
(2) Implementation of Six Sigma methodology leads to rise of profitability and reduction in
costs. Thus improvements achieved are directly related to financial results.
(3) Six Sigma is successfully implemented in virtually every business category including returnon sales, return on investment, employment growth and stock value growth.
(4) Six Sigma targets Variation in the processes and focuses on the process improvement rather
than final outcome.
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(5) Six Sigma is prospective methodology as compared to other quality programs as it focuses
on prevention on defects rather than fixing it.
(6) It is attentive to the entire business processes and training is integral to the management
system where the top down approach ensures that every good thing is capitalized and every bad
thing is quickly removed.
Disadvantages:
(1) Applicability of Six Sigma is being argued among the Six Sigma critics. They opined that
the quality standards should be according to specific task and measuring 3.4 defects per millionas standard leads to more time spent in areas which are less profitable.
(2) Six Sigma gives emphasis on the rigidity of the process which basically contradicts the
innovation and kills the creativity. The innovative approach implies deviations in production, theredundancy, the unusual solutions, insufficient study which are opposite to Six Sigma principles.
(3) People argue that Six Sigma is a bit gimmicky and simply a rebranding of the continuesimprovement techniques and tools as practiced by Toyota. It thus promotes outsourcing of
improvement projects with lack of accountability.
(4) Six Sigma implementation constantly require skilled man force. Thus control and employeededication are hard to accomplish if it¶s not implemented regularly.
(5) While converting the theoretical concepts into practical applications there are lot to real
time barriers which needs to be resolved.
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6. Containing Costs
Investments in reengineering, TQM, human capital, technology, globalization,
and the like are all very important for organizational competitiveness.
Yet, at the same time, there are increasing pressures on companies to lower costs and improve
productivity to maximize efficiency.
Labor costs are one of the largest expenditures of any organization
Organizations have tried a number of approaches to lower costs:
Downsizing, outsourcing and employee leasing, and productivity enhancement.
We can discuss these challenges in detail:
1) Downsizing ±the planned elimination of jobs.
Other ways of downsizing besides direct layoffs:
� Early retirements
� ³Sweetened´ voluntary separation program
� Sabbaticals
� Severance packages
Downsizing is very common in corporate business in the United States. In fact, there are 50% more
victims of downsizing in the United States every year than there are victims of violent crime. Downsizing
is so common in the United States that the United States Bureau of Labor Statistics publishes quarterly
statistical reports on 'mass layoffs.' More than forty-three million jobs have been lost to downsizing
since 1979. Furthermore, (75%) of households have had a close encounter with downsizing since 1980,
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and one-third of people have actually lost a job because of downsizing. Another 40% know someone
who has lost a job due to downsizing.
Unfortunately, the majority of people who have been downsized (65%) report earning lower salaries
than they earned in the jobs they lost. This means only slightly more than one-third earn equivalent or
higher wages in their next jobs. Not surprisingly, one in ten adults who has been downsized report that a
major crisis has resulted in their lives as a result.
10 Ways to Survive in Downsizing
1. Realize that downsizing isn¶t personal.
There is a great possibility that the downsizing happened for reasons outside of your control If
that¶s the case then it¶s important to understand that it¶s not your fault or a reflection on you.
You¶re just getting caught in the middle of business fact of life that impacts just about everyone
at some point in their career. There no one to blame.
2. Don¶t take the victim mindset. Adopt the perspective that you are the same great HR
person that you were before downsizing. It¶s important that you take on the frame of mind that
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you as a person, are always bigger and more important than any job or career that you¶ll ever
have«.and that your unique set of HR skills and experience are valuable.
3. Reach out and spend time with others in your organization, especially other
HR folks, who have also been downsized.
You¶ll get job and career ideas from them if you stick together, network and support each other.
Resist the urge to think that you¶re in competition with each other. There is power in numbers.
4. Stay in touch with your HR colleagues who are still working at the
company.
Candidly, some may uncomfortable talking with you since you¶re now moving on. However,
don¶t let them feel awkward and be sure to bury your own ego. The next job opening or career
opportunity usually comes from someone you already know, not from an ad or a headhunter. If
you¶ve done a great job of building relationships and networking, don¶t be surprised if you get a
call from a former colleague or boss about a different opportunity.
4. Form your own Career Advisory Board of your 5-7 smartest friends
and family members who know you well.
Why not use this as an opportunity for getting input from people around you who care?
Get together twice a week to toss around ideas for how to handle the current situation and
let them challenge you to look beyond the problem and consider new possibilities. They
may know you better than you do and may provide options you¶ve not thought about.
6. If you need to, reduce your spending right away to give you extra time to
sort things out.
Don¶t assume that you¶ll land the right HR job immediately. Cut your personal expenses by at
least 40-70%, if needed. Don¶t be afraid to take brutal, even radical steps. Often, this type of self-
imposed µjolt¶ will encourage a different type of thinking, which is critical during this time for
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you. And, frankly, who needs the stress of worrying about money? You need to be thinking
clearly at this time about your next career steps.
7. Start thinking about the kind of work that is personally rewarding to
you.
You may find out it¶s not HR work. If you¶re an HR generalist, do you want to stay a
generalist? If you¶re doing labor relations work, are you tired of wrestling with unions or
do you want to chance your career direction entirely. Too many people are not in jobs or
careers which fulfill or satisfy them. And life¶s too short to suffer in silence. So, use this
break as an excuse to get real selfish and discover what makes you the happiest. When
you¶re happy doing what you¶re doing, the money will usually take care of itself.
8. Invest in strengthening your towering skills.
No one else will. The HR job market is hungry for highly skilled individuals in any field
± generalists, specialists, consultants, coaches, mentors, part-timers, or contractors. If
you¶ve got a specialized skill or natural aptitude, invest in expanding that skill and
making it even stronger. The best skills take time to develop into a well-paid profession,
career or business. It¶s never too late to invest in yourself.
9. Treat the downsizing experience like a treasure hunt where getting your
next job is the prize.
Get out paper and pen or jump on your laptop and begin creating a plan for yourself.
Identify where you are. What resources and skills you have. Who you know who can help ± consider doing anything you can do keep yourself motivated until you land the next job.
Turn it into a game.
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10. Get some coaching and counseling.
Many firms who are downsizing provide outplacement counseling and resources. Take
full advantage of this benefit.
2. Outsourcing ± contracting outside the organization to have work done that
formerly was done by internal employees.
Some of the most common outsourcing are:
� Services of accounting firms
� Advertising firms
� Law firms
� Maintenance such as, security, catering, and payroll
Employee Leasing ± Process of dismissing employees who are then hired by a leasing company
(which handles all HR related activities) and contracting with that company to lease back the
employees.
Impact on HR: 93% of all HR depts. reported outsourcing some of their work
� Increasing morale ± especially if you know your work is only temporarily
� Increasing productivity level
� Managing contracting companies
� Legal issues with temporary workers
Outsourcing Challenges
The idea of importing manpower and services from other countries has been around since theadvent of international trade. However, the essence of outsourcing as known today allows the
global workforce to be connected in many more ways. However, there are some outsourcing
barriers that we have to confront before we can regard it as suitable to our business.
The payoffs of outsourcing are opposed by some hindrances. An important consideration is the
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economic and political condition of the state. Third world countries have a high chance to have
unstable governments. Furthermore, the economic policies of these nations can switch from one
political cycle to the next. Thus, there is a level of uncertainty that increases the risk for
businesses who want to invest in outsourcing.
One more considerable obstacle is the language gap. Because of this challenge, not many nations
are eligible for outsourcing. Developing nations that are well-versed in English like the
Philippines and India are perfect candidates. Companies should look for subcontractors that
totally complies with the skill-set that they require.
One more outsourcing barrier is a nation's current infrastructure. This involves the legal system,
banking system infrastructure, and the telecommunications infrastructure that coordinates
everything. Without a highly-developed infrastructure, the cost of subcontracting and the risks
that are part of this kind of investment can be larger than predicted.
Once all the macro-challenges are considered, businesses will need to deal with other
outsourcing challenges like cultural gaps, ability to integrate operations, training, and knowledge
transfer. Operating with outsource partners requires companies to coordinate their local operation
to conform with them.
Aside from all of these, there are also active challenges that requires consideration. Among these
are security risks, human resource management, time-zone, management challenges, and many
more.
Outsourcing is not for all. There are specific situations when outsourcing challenges outweigh
the advantages. At the end of the day, you have to decide whether outsourcing is good for you or
not.
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Top 7 Outsourcing Advantages
1. Focus On Core Activities
In rapid growth periods, the back-office operations of a company will expand also. This
expansion may start to consume resources (human and financial) at the expense of the core
activities that have made your company successful. Outsourcing those activities will allow
refocusing on those business activities that are important without sacrificing quality or service in
the back-office.
Example: A company lands a large contract that will significantly increase the volume of
purchasing in a very short period of time; Outsource purchasing.
2. Cost And
E
fficiency Savings Back-office functions that are complicated in nature, but the size of your company is preventing
you from performing it at a consistent and reasonable cost, is another advantage of outsourcing.
Example: A small doctor's office that wants to accept a variety of insurance plans. One part-time
person could not keep up with all the different providers and rules. Outsource to a firm
specializing in medical billing.
3. Reduced Overhead
Overhead costs of performing a particular back-office function are extremely high. Consider
outsourcing those functions which can be moved easily.
Example: Growth has resulted in an increased need for office space. The current location is very
expensive and there is no room to expand. Outsource some simple operations in order to reduce
the need for office space. For example, outbound telemarketing or data entry.
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4. Operational Control
Operations whose costs are running out of control must be considered for outsourcing.
Departments that may have evolved over time into uncontrolled and poorly managed areas are
prime motivators for outsourcing. In addition, an outsourcing company can bring better
management skills to your company than what would otherwise be available.
Example: An information technology department that has too many projects, not enough people
and a budget that far exceeds their contribution to the organization. A contracted outsourcing
agreement will force management to prioritize their requests and bring control back to that area.
5. Staffing Flexibility
Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional
resources when you need them and release them when you're done.
Example: An accounting department that is short-handed during tax season and auditing periods.
Outsourcing these functions can provide the additional resources for a fixed period of time at a
consistent cost.
6. Continuity & Risk Management
Periods of high employee turnover will add uncertainty and inconsistency to the operations.
Outsourcing will provided a level of continuity to the company while reducing the risk that a
substandard level of operation would bring to the company.
Example: The human resource manager is on an extended medical leave and the two
administrative assistants leave for new jobs in a very short period of time. Outsourcing the
human resource function would reduce the risk and allow the company to keep operating.
7. Develop Internal Staff
A large project needs to be undertaken that requires skills that your staff does not possess. On-
site outsourcing of the project will bring people with the skills you need into your company.
Your people can work alongside of them to acquire the new skill set.
Example: A company needs to embark on a replacement/upgrade project on a variety of custom
built equipment. Your engineers do not have the skills required to design new and upgraded
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equipment. Outsourcing this project and requiring the outsourced engineers to work on-site will
allow your engineers to acquire a new skill set.
Productivity Enhancement ±
Productivity can be defined as the ³output gained from a fixed amount of inputs,´ organizations
can increase productivity either by reducing the imports (the cost approach) or by increasing the
amount that
employees produce.
Two view points:
V iew Point #1 ± managers may cut costs only to find that productivity falls at even
at ore rapid rate ± WHY?????????
V iew Point #2 -Mangers may find that increasing investment in employees
(raising labor costs) may lead to even greater returns in enhanced productivity. ?
Fact: The US is the world¶s most productive nation. However, other can catch-up
How to Increase Productivity?
Employee productivity is the result of a combination of employee abilities, motivation, and work
environment.
When productivity falls off ± or more positively, when productivity improves ±the changes is
usually traceable to , motivation, and work environment
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As per the role of HR, to fulfill the challenges of Productivity Enhancement,
we need to work on Motivation and Work Environment.
Motivation:
Motivation is what makes people tick: the needs, desires, fear, and aspirations within that makes
you do what you do. It is the why in human behavior.
Motivation comes from within, You cannot motivate people to do good work, but by getting to
know your employees you can activate their own motivations.
Motivational techniques
Leads them
Real examples are quicker than advice
Way to influencing people
Appeal to benefits
Can motivate
Mutual benefits to both of you
Appeal to emotions
People act quickly to emotions
Positive manner
Sustained by repeated inputs
Appeal to needs & wants
basic needs satisfaction
Creative expression, recognition & challenges & love
Appeal to expertise
Abilities enhance his self-worth
Put best effort to seek approval
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Top Ten Motivators
1. Thanks personally, timely, often & sincerely
2. Take time to meet and listen to staff
3. Provide feedback
4. Encourage new ideas and initiative
5. Explain how employee fits into organization¶s plans
6. Involve employees in decisions
7. Provide ownership in their work
8. Recognize, reward, and promote based on performance
9. Give chance to learn new skills
10. Celebrate successes!!!!
MOTIVATION FACTORS
Achievement
Value and Appreciation
Growth and advancement
Responsible autonomy
Interesting Job
Encouragement to do better
Company, proud to work
Team, proud to be part
Recognition
Reward Passion to do innovation
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Healthy Work
Environments
Work environment- the combination of physical and cultural conditions under which particular
tasks are performed to achieve an organizational goal.
Skilled communication
True collaboration
Effective decision making
Appropriate staffing
Meaningful recognition
Authentic leadership
We have all worked at places that we were less than
excited to get up in the mornings and go to; this is an awful
feeling. It is much more pleasurable, and less stressful to
go to a work environment that is filled with positivity and
enjoyment. A positive work environment is not only
important for our physical, mental and emotional health,
but is also important for the results that we produce for the company. The better we feel at work,
the more likely we will take pride in our job activities and be loyal towards our place of
employment.
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Developing a Positive Environment
Honesty
Honesty Be straightforward and up front in all dealings with employees. Managers must be
truthful in everything they say and do. Avoid double standards.
Morale
Morale is the emotional condition (such as enthusiasm, confidence, and loyalty) of a team with
regard to the task at hand. It is critical to develop an environment where the morale is high and
the team can work effectively.
Maintaining high morale is something the manager will have to work on constantly. One way of
keeping morale high is to let employees know their contribution to the team is significant in
meeting the department¶s objectives.
Recognition
The timely recognition of individual achievements is critical in the development of an effective
work environment. As manager, you want to set the parameters, communicate them to your
employees, and ensure the employees understand them. Always consider recognition for the
individual, even if you have a team project.
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Summary of Challenges
The study is designed to assess the organizational and human resource challenges faced by
human resource manager. Its objectives are to: specify the organizational and human resources
challenges faced by HRM in fulfilling the roles envisaged in government and local policy;
examine how HRM are addressing these challenges, in particular, to describe the organizational
forms they have adopted, and the OD/HR strategies and initiatives they have planned or in place;
assess how effective these structures, strategies and initiatives have been in enabling the HRM to
meet the organizational and human resources challenges they face; identify the factors, both
internal to the HRM and in the wider health community, which have contributed to the success
or failure of different structures, strategies and initiatives.
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Recommendation
The study is designed to assess the organizational and human resource challenges faced by
human resource manager. Its objectives are to: specify the organizational and human resources
challenges faced by HRM in fulfilling the roles envisaged in government and local policy;
examine how HRM are addressing these challenges, in particular, to describe the organizational
forms they have adopted, and the HR strategies and initiatives they have planned or in place;
assess how effective these structures, strategies and initiatives have been in enabling the HRM to
meet the organizational and human resources challenges they face; identify the factors, both
internal to the HRM and in the wider health community, which have contributed to the success
or failure of different structures, strategies and initiatives.
In this final stage of the study, the information gained from Stages 1 and 2 and the feedback from
the reference group will be analyzed. The analysis will focus on three levels:
. Practical lessons for HRMs - in particular the key organizational and human resources issues
which HRMs (particularly newly formed HRMs) need to address; the approaches which have
worked well for them; the factors which appear to be important in the success or failure of
initiatives; and examples of good HR in HRMs.
. Key messages for policy makers - in particular the policy issues which encourage or obstruct
good HR practice in HRMs, and the support or guidance which would assist newly formed
HRMs or PCGs in their preparatory and early stages.
. Intellectual contributions to the theory of HR and e.g., concerning leadership, motivation and
incentives, learning, partnership working and HRM in networks.
To ensure the quality and focus of the research, a local advisory group will be established. Thegroup will meet at key points during the research and will include a HRM Chief Executive, a
HRM Chair (or Board Member), and three other members with academic experience in the field
of organizational development and primary care. In addition a wider Reference Group will be set
up comprising around 20 people who are opinion leaders in HRM and who would help spread
the ideas and innovations discovered by the research via formal and informal networks.
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During the research the case study HRMs and the wider Reference Group will have a number of
opportunities to exchange ideas and good practice. Summaries of emergent themes from each
phase of the research will be produced as working papers for dissemination to appropriate
audiences. Formative and summative findings will also be disseminated through articles in
professional journals and the popular health service press, and opportunities to present findings
to relevant conferences and workshops will be pursued.
The foregoing methodological framework is intended to be flexible. The policy context within
which the study will be conducted is likely to alter during the course of the study, and qualitative
organizational research is itself a dynamic enterprise. Thus, the precise methods and procedures
will be chosen in response to the preliminary findings of each phase of the research.