You are on page 1of 54

1

CHAPTER 1 : MANAGEMENT

ABOUT

HUMAN

RESOURCE

What is human resource? What is human resource management? Why is human resource management important?

WHAT IS HUMAN RESOURCE ?

Human resources is the set of individuals who make up the workforce of an organization, business sector or an economy. "Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view; i.e., the knowledge the individuals embody and can contribute to an organization. Likewise, other terms sometimes used include "manpower", "talent", "labor", and simply "people". The professional discipline and business function that oversees an organization's human resources is called human resource management (HRM, or simply HR).

In the corporate vision, employees are viewed as assets to the enterprise, whose value is enhanced by development. Hence, companies will engage in a barrage of human resource management practices to capitalize on those assets.

Human Resource in Organization as Input Output System

Acquiring Inputs From Environment

Conversion Process

Outputs

Exporting To Environment

Using financial resources by human resources

By human resources

By human resources

WHAT IS HUMAN RESOURCE MANAGEMENT ?

We often hear the term Human Resource Management, Employee Relations and Personnel Management used in the popular press as well as by Industry experts. Whenever we hear these terms, we conjure images of efficient managers busily going about their work in glitzy offices. In this article, we look at the question what is HRM ? by giving a broad overview of the topic and introducing the readers to the practice of HRM in contemporary organizations. Though as with all popular perceptions, the above imagery has some validity, the fact remains that there is much more to the field of HRM and despite popular depictions of the same, the art and science of HRM is indeed complex. We have chosen the term art and science as HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and rigorous application of theory that is required.

As outlined above, the process of defining HRM leads us to two different definitions. The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting and

management, performance management, change management and taking care of exits from the company to round off the activities. This is the traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function that was used earlier.

The second definition of HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the employment relationship fulfilling for both the management and employees. These definitions emphasize the difference between Personnel Management as defined in the second paragraph and human resource management as described in the third paragraph. To put it in one sentence, personnel management is essentially workforce centered whereas human resource management is resource centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people and a greater emphasis on planning, monitoring and control.

Whatever the definition we use the answer to the question as to what is HRM? is that it is all about people in organizations. No wonder that some MNCs (Multinationals) call the HR managers as People Managers, People Enablers and the practice as people management. In the 21st century organizations, the HR manager or the people manager is no longer seen as someone who takes care of the activities described in the traditional way. In fact, most organizations have different departments dealing with Staffing, Payroll, and Retention etc. Instead, the HR manager is responsible for managing employee expectations vis--vis the management objectives and reconciling both to ensure employee fulfillment and realization of management objectives.

HRM is a new approach to managing people in any organization, where people are considered to be the key Resources.

HRM is concerned with the People Dimension in the Management of an organization. Since an organization is a body of people, the acquisition, development of skills, motivation of higher level of attainments as well as

ensuring maintenance of their levels of commitment are all significant activities.

HRM focuses on the involvement of people in the day-to-day activities as a measure for development of commitment.

In governing human resources, three major trends are typically considered: 1. Demographics: the characteristics of a population/workforce, for example, age, gender or social class. This type of trend may have an effect in relation to pension offerings, insurance packages etc. 2. Diversity: the variation within the population/workplace. Changes in society now mean that a larger proportion of organizations are made up of "babyboomers" or older employees in comparison to thirty years ago. Advocates of "workplace diversity" advocate an employee base that is a mirror reflection of the make-up of society insofar as race, gender, sexual orientation etc. 3. Skills and qualifications: as industries move from manual to more managerial professions so does the need for more highly skilled graduates. If the market is "tight" (i.e. not enough staff for the jobs), employers must compete for employees by offering financial rewards, community investment, etc.

HRM is a process which consists of 4 main activities. They are: 1 Acquisition 2 Development 3 Motivation, and 4 Maintenance of HRs.

HRM underscores the NEED for Communication, with all Concerned. In regard to how individuals respond to the changes in a labor market, the following must be understood:

Geographical spread: how far is the job from the individual? The distance to travel to work should be in line with the pay offered, and the transportation and infrastructure of the area also influence who applies for a post.

Occupational structure: the norms and values of the different careers within an organization. Mahoney 1989 developed 3 different types of occupational structure, namely, craft (loyalty to the profession), organization career (promotion through the firm) and unstructured (lower/unskilled workers who work when needed).

Generational difference: different age categories of employees have certain characteristics, for example, their behavior and their expectations of the organization.

10

Human Resource Management and its Environment

Cultural Technologic al

Unions

Economic

HRM

Strategy Task And Leadership

Political Legal Professional Bodies

Organisational Culture And Conflict

11

WHY HUMAN RESOURCE MANAGEMENT IS IMPORTANT ?

1. Importance For individual enterprise: Securing willing co-operation of the employees for achieving goals of the enterprise and fulfilling their own social and psychological needs and recognition of Love Affection, Belongingness, Esteem and SelfActualization. Creating right attitude among the employees through effective motivation. Utilizing effectively the available HRs.

2. Professional Importance: Providing maximum opportunities for personnel development. Providing healthy relationship between different work groups so that work is effectively performed. Correcting the errors of wrong postings and proper reallocation of work. Maintaining the dignity of the employees as a human being. Improving the employees working skill and capacity.

12

3. Social Importance: Providing suitable and most productive employment which might loving them psychological satisfaction. By helping people to make their own decision. Making maximum utilization of the resources in an effective manner and pay the employee a reasonable compensation in proportion to the contribution made lay him. Maintaining a balance between the jobs available.

13

CHAPTER 2 : ABOUT RESOURCE MANAGER

ROLES

OF

HUMAN

Roles of HR Manager in an organization Evolving roles of HR manager Roles then and now

14

ROLES OF HR MANANGER IN AN ORGANIZATION The Role of HR Manager can be described as follows: 1. As a Specialist 2. As an Information Source 3. As a Change Agent 4. As a Controller 5. As a Liaison Officer 6. As a House-Keeper 7. As a Fire-Fighter

15

1. As a Specialist: Human Resources Manager, being the Specialist in HR Field offers advices to the heads of different Financial Departments on various aspects of Human Resources Management. These include HRP, Recruitment, Selections, Orientation, Training, Appraisal, Compensation etc. The HR Manager should provide information in such a way he is considered as a source of help rather than a source of threat to line managers. He should earn their confidence and goodwill.

1. As an Information Source: The HR Manager should provide valuable & latest information about labor Market, labor laws and other Statutory Requirements to the top Management. This is required for formulation of proper policies and procedures about human resources. He should serve as a record-keeping officer and a researcher to provide required information.

16

3. As a Change Agent: HRM can act as an Internal Change Agent to initiate and Spearhead necessary improvements in HR Practices. As a Consultant, he can provide necessary infrastructure and support for organizational development. He helps in introducing and implementing major institutional changes in the organization. He should act as an Innovator in the Personnel matters. To be an effective Consultant, the Human Resource Managers should be familiar with the needs and the changing ambience of the organization with special reference to Human Resources.

2. As a Controller: The HR Manager assists the line managers in effective implementation of HR Policies and Programmes. His advice and service is very much essential for monitoring and controlling the progress. Being the arm of Top Management, the HR Manger should ensure that the Personnel Policies and Procedures approved and adopted by the

17

Management are being Consistently implemented in all the Departments of the organization.

5. As a Liaison Officer: Very often, the HR Manager is asked by the Top Management to act as a link-pin between/among different departments/divisions of the organization.

6. As a House-Keeper: The HR manager looks after the safety, health, welfare etc. of all the employees.

18

7. As a Fire-Fighter: In Union- Management relations, the HR manager acts as a ShockAbsorber. He is the Managements Defense against Trade Union activities. In a nutshell, he should act as a Trouble-Shooter.

19

EVOLVING ROLES OF HR MANAGER

Like platform shoes and bellbottoms, some of the old responsibilities and views of the HR professional have been updated to meet the current environment. The Role of HR Manager is definitely not what it was even thirty years ago. Below are a few of the major differences that I have seen. One of the major shifts has been from HR being seen as the Company Police. A long held view, HR is known as the group that does the hiring and firing, metes out discipline, as well as stiffs you on a proper raise at the end of the year. Todays HR is more focused on employee development, counseling, and support. Dont get me wrong, we still do the hiring and firing, but it is done in a more humane fashion, and after an employee has received intense behavioral and performance coaching. The shift to being viewed as partners, instead of the big bad HR department is in my opinion, one of the more defining changes.

To illustrate this point, in days past, employees avoided the HR office like the plague. In recent years, employees have come to rely on HR for a lot more than career advice. I regularly have employees come into my office to just talk. They also see us as a trusted source of information on maintaining home/work balance, dealing with substance abuse, or just plain venting about a coworker. I think HR

20

has embraced the human element of the role and the employees feel more secure as a result. Another major shift us the role of HR in promoting diversity. As our society continues to attract talent from across the world, promoting workplace diversity and inclusion is a much larger part of the HR role. We are responsible for training staff, coaching front line supervisors and managers and ensuring that everyone feels that their unique talents and perspective are welcome in the company. This article found in the HR Magazine archives describes this concept in great depth. An excerpt reads: Diversity in the United States has evolved since the 1960s. As illustrated in Figure 1, diversity was first based on the assimilation approach, with everyone being part of the melting pot. Compliance (e.g., affirmative action, equal employment opportunity) is important in diversity, and key legislation has been an effective tool for change (e.g., Title VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act of 1967, Americans with Disabilities Act of 1990). Today, however, the impetus behind workplace diversity is that of inclusion and the business case: embracing and leveraging differences for the benefit of the organization. The collaboration of cultures, ideas and different perspectives is now considered an organizational assetbringing forth greater creativity and

21

innovationwith the result that many companies are increasingly focusing on corporate diversity initiatives to improve organizational performanc e. So now, we are moving away from requiring that employees assimilate to the current culture and embracing the differences that we posses. This helps to make companies more competitive in the global marketplace, as well as increase employee loyalty. Last, but certainly not least, is the place that HR has been awarded at the executive level. Whereas previously HR was more of an auxiliary department that Senior Management delegated to, it is now a major part of the decision making process. Human Resources has been recognized as a key component in a companys strategic planning process. No longer just consulted on employee relation issues, HR is helping to shape the companys mission and image. A recent example is of a company I am familiar with where the senior management was in a quandary on how to improve their market share and customer satisfaction index. The Director of HR is a regular attendee at the VPs staff meetings and offered his suggestions regarding the matter. He proposed that the company introduce the teaming concept, in which employees work together in empowered, synergistic teams to achieve their functions goals. The focus on empowerment, innovation and problem solving result in superior products and services, less errors, better customer service, and increased employee satisfaction.

22

This company underwent a major culture change, as well as intense retraining and coaching, but the dividends were well worth it. This is all due to the fact that HR now has a seat at the table. Now more than ever, HR Managers and staff are recognized as an important part of implementing the companys vision, as well as a welcome aid in problem solving.

23

ROLES OF HR MANAGER THEN AND NOW

Then

Now

Reactive

Proactive

Gatekeeper (or gate closer)

Facilitator

Policy enforcer

Policy strategy consultant

Authoritarian

Consultative

Focused on HR, and its goals

Focused on the organization, and its mission

Employee advocate (from managers perspective) Management perspective) advocate (from employees

"Truth advocate" (Mary Rudder, Rx Management)

24

The distinctions between "then" and "now," however, arent always quite as absolute as this chart may indicate.

Many organizations fall somewhere along the spectrum between "then" and "now" in terms of how their HR departments function in an overall sense.

Other organizations might more closely resemble "then" with respect to some HR functions, and more closely resemble "now" with respect to others.

So, too, each of us might function in some ways closer to the "then" end of the spectrum, and function in other ways closer to the "now" end of the spectrum.

This can be true on an organizational, functional, or even individual level.

25

CHAPTER 3 : ABOUT MCDONALDS CORPORATION

Broad History and Birth of Franchising Industry McDonalds India - A Profile

26

BROAD HISTORY AND THE BIRTH OF FRANCHISING INDUSTRY

Two brothers, Richard and Maurice McDonald came to make a career in Hollywood and sadly ended up as owners of a drive-in restaurant in San Bernardino of Los Angeles. In the year 1954, a milk-shake machine salesman, Raymond Kroc found that one of his clients the McDonalds had purchased eight multimixers! This was quite astonishing as each mixer had the capacity to mix five shakes in one go. Curiosity got the better of him and he trekked to San Bernardino to see the people who needed forty shakes all in a go. He was amazed to see that large number of people were being served their orders of packaged foods in less than 60 seconds! This efficiency set him thinking about a chain of restaurants. The next day Kroc talked the brothers into a deal which allowed him to sell McDonalds franchises for a price of $950. Soon the first link in the McDonald's chain was born in Des Plaines, Illinois on April 15, 1955. At an age when most people are looking ahead to retirement and a relaxed life, Ray Kroc looked for opportunities, took risks and worked towards success. As a reward for his vision, McDonald's serves a gigantic crowd of 67.8 million people all over the world every single day.

27

MCDONALD'S INDIA - A PROFILE


A LOCALLY OWNED COMPANY:

McDonald's is the world's leading global foodservice retailer with more than 33,000 locations serving approximately 64 million customers in 118 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated by independent local men and women. In India, McDonald's is managed by two Indian entrepreneurs. Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd. owns and spearheads McDonald's operations in West & South India. Hardcastle Restaurants was appointed Development Licensee for McDonald's in India in 2010, a progression from Joint Venture partner. Vikram Bakshi, MD and Joint Venture Partner, Connaught Plaza Restaurants Private Limited, owns and operates McDonald's in North and East India Celebrating over 15 years of leadership in food service retailing in India, McDonald's now has a network of over 235 restaurants across the country.

28

LOCAL SOURCING IS KEY FOR TRULY INDIAN PRODUCTS:

McDonald's India is committed to sourcing almost all of its products from within the country. Prior to its launch, the company invested six years to develop its unique cold chain, which has brought about a veritable revolution in food handling, immensely benefiting the farmers at one end and enabling customers to get the highest quality food products, absolutely fresh and at a great value. McDonald's India today has developed local Indian businesses, which can supply the highest quality products required for its Indian operations.

29

CHAPTER 4 : ROLES OF HR MANAGERS IN McDONALDS CORPORATION

Executive-People Resources General Manager-People Resources Manager-People Resources

30

Position Title Reports to

: Executive-People Resources : Manager-People Resources

Position Purpose Coordinates, explains, implements, clarifies and administers Human Resource programs. Acts as the liaison with the restaurants regarding benefits, salary and other administrative functions. Key customers include the Head Office employees and Restaurant Management Team.

Principal Accountabilities In addition to following McDonalds policies and procedures, principal accountabilities include, but are not limited to:

Coordination and Administration 1. Completes all monthly reports, updating of employee records, custom reports and system back-ups.

31

2. Completes required reference checks and start-up paperwork for Store Management and General Administration and new hires. 3. Assist, track and prepare all data relevant to staffing, turnover, transfers and cost containment programs. 4. Coordinate employee recognition and referral programs. 5. Maintains employee files and performs other administrative duties as needed. 6. Prepare standard employment letters for employees. 7. Conduct store audits to ensure compliance with laws and company employee practices. 8. As necessary, assists with incidents when they occur (third part interventions, health and safety issues and payroll audits etc)

Communication and Training 1. Assists in communicating Employee Relations policies and messages from Head Office. 2. May conduct or assist with crew chit chat sessions, presentations and meetings.

32

3. Conducts orientations and benefits presentation for new hires.

33

Position Title : General Manager-People Resources Reports to : Director

Position Purpose Provides targeted execution and implementation support to Managers, Consultants, and Supervisory teams in areas such as utilization of staffing and retention tools and resources, performance development, and labor relations/compliance. Is a key people resource to the management. Coaches, Develops and assists key customers in all aspects of Human Resources management.

Principal Accountabilities HR System Implementation/Training Provides consulting/training related to restaurant compliance with laws and company employee practices. Provides coaching related to employment quests to ensure that compensation and benefits are competitive.

34

Supports the People Team at Head Office. Partners with Training and Field Service Team to assist in the development of Supervisory Team to execute key HR programs such as the Performance Development System, Respectful Workplace, Crew Orientations, etc. Conducts regional staff orientations.

Coordination and Administration Coordinates the administration of the crew, manager, and staff commitment survey process. Partners with key customers to answer questions, interpret survey results, facilitate feedback, and coach them in the action planning process. Anticipates, identifies, and assists in the investigation and resolution of crisis management and employee relations situations. Accountable for maintaining staff employee files and performs other administrative duties as needed. May provide consulting regarding the people aspects of restaurant acquisitions and/or sales. Coordinates the award process, service awards, incentives and programs (e.g., communication, nominations, preparing supporting data).

35

Assists in reporting and analyzing data relevant to people issues (e.g., succession planning, turnover trends, etc). Assists the management with diversity networks, diversity education, and mentoring programs.

36

Position Title Reports to

: Manager-People Resources : General Manager-People Resources

P OSITION P URPOSE Assumes mid management responsibility for key people initiatives and associated resources that drive the markets business results. Provides leadership and support to the Operations Team, Head Office staff on HR systems and implements HR strategies. Builds capability of key customers in all aspects of Human Resources Management. Supervises other staff as required. Key customers include Restaurant Management, Regional Staff, and management.

Recruitment & Talent Acquisition: Responsible for all Manpower Planning, Recruitment and Selection activities. Conduct walk-in Interviews of job applicants; review application/resume from Job Portal; evaluate applicant skills and make recommendations regarding suitable applicants.

37

Develop and maintain relationship with universities/institute for conducting the campus Recruitment programme. Develop and Conduct psychometric tests, assessment programmes for the short listed candidates. Co-ordination with Head Hunters/Campuses/ E-recruitment/Job Portal mechanisms. Sort listing profiles and Preliminary round of screening of the candidates. Final round of interview & negotiation with the selected profile Design and conduct employee orientations programme for HO as well as People parameters orientation for Trainee Managers for Restaurant Management. Conduct Exit Interviews and Turnover analysis report for Restaurant Management and HO.

2) Employee Engagement: Overall responsible for Employee engagement platform-Store engagement, Rejuvenation and motivational activities in conjunction People/Ops Excellence Team.

38

- Education / Personality Development Program for staff including target incentives, employee of the month awards and annual recreational / sports activities

Monitoring Restaurant Sessions / staff Meetings and recommend and follow up on action plans for improvement to Restaurant team / Management.

3) Performance Management System : Responsible for Performance Management System (Individual development plan / Talent review) at all level for Head Office and educate and assist Operations team in conducting Performance Management System for Restaurant management . To Co-ordinate, follow up and get the exercise conducted with the Department Heads in time. To help & support other department heads on Counselling & Feedback of their team members. To plan & execute succession/talent planning for organisations future needs.

39

Assist in Organizational development based on future expansion and work processes

4) Training & Development Assessment: Evaluate need assessment for all Departments of HO, Select Soft Skills, Functional and Behavioral training programmes & Conduct Corporate Training Programmes To help and support Training Department as and when required on HR norms and policies Training Day to day advises and support to mid management of Operation Team & Restaurant Management on any HR/IR/Personnel related matter. To plan and execute System wide Annual HR related Training Calendar . To ensure that the development plan is made for all employees and ensure that proper measures are taken to implement them. To take periodical review of the employees progress as per the development plan laid out for them. To organize HR Seminar annually to reflect upon various people practises and policies.

40

CHAPTER 5 : PROBLEMS FACED BY HR MANAGERS

41

Critical Challenges Facing HR Managers Today

HR Measurement, especially in relation to business metrics Providing workforce planning and analytics services riving internal mobility & career development as an HR function and within the entire organization

Enabling a strong self-learning culture, tied to innovation and engagement These internal HR struggles overshadowed other concerns such as talent segmentation, motivating high performance cultures, and developing future HR leaders. Why are these challenges rising to the top today and more importantly what are some organizations doing to address them? HR Measurement: HR Measurement has been a hot topic for some time, and the importance of tying this measurement to business financials continues to elude many HR functions. Business leaders have been sold on the value of talent management, and now they want to see the impact to their business. In the last few weeks Ive spoken with several organizations that have made the internal investment required to connect HR metrics to financial and talent metrics a

42

top priority. In a large global manufacturing firm with over 70,000 employees the Global Director of Organizational Research, Analysis, and Planning outlined how theyve spent the last three years growing their internal analytics function. They first began to manually develop leadership level dashboards for specific business units. These dashboards combine HR and Business metrics; such as site location production metrics compared to performance data, hiring data, and even talent mobility data. Finally as the success of their efforts grew they were given more resources to expand their successful dashboards and annual analytic efforts. In the last 2 years they have focused on partnering with their IT function to build an internal data warehouse and single portal environment that connects to their HR, talent, and business systems. This is a critical milestone in their journey to better prepare their business leaders with the data needed to make important resource, production, and even market decisions. Delivering workforce metrics and analytics: Almost every organization Ive interviewed has commented that this is an area they are working on improving and expect to work on this even more in the coming year. Executives are beginning to expect a better understanding of the overall human resource needs at an enterprise level. This goes beyond the traditional annual head count exercise. They want to understand the critical roles,

43

how difficult those roles will be to fill, what skills are needed, and where the organization expects to fill this need from. One organization, a large insurance company with over 10,000 employees has spent the last few years organizing their Talent Management functions (including workforce planning) around an employees life cycle. Their first function which manages the processes from pre-hire to 1st year includes a workforce planning function. This takes an enterprise approach that uses both skill gaps, open positions, data provided by HR Business Partners, employee relations, and compensation and benefits to help develop their workforce plan. They also connect this closely to their acquisition function to understand both internal and external opportunities for meeting this plan. Internal mobility & career development: Although, every HR function Ive spoken with tracks internal mobility and career opportunities in a slightly different way, it seems to rise to the top in almost every conversation with HR senior leaders. This metric seems to be considered a critical leading indicator of the health and wellness of an overall talent management function for many organizations. One HR leader I spoke with from a large manufacturing organization with over 125,000 employees has created a new

44

Global Mobility function focused on increasing internal mobility opportunities through formal and informal programs. Another large aerospace firm has developed a great program which creates 2-year mobility positions within in all key business functions and supporting business units for newly recruited high potential candidates as well as a program for seasoned high potential leadership roles. Some rotational positions are critical support roles for organizations such as HR, Engineering, Quality, etc. or lead roles in business critical cross-functional teams. Finally enabling a strong-self learning culture: I wont steal the thunder from David Mallon who will soon be launching his industry report on developing a Learning Culture within your organization, but I will highlight one of the organizations that I interviewed and their approach to enabling a learning culture. An HR strategy team member for one of the more innovative airline companies I spoke with discussed the fact that they were struggling with many HR and Talent processes; but they promoted internal innovation and development consistently. She felt that their organizations culture allowed all employees, including HR, to offer ideas and challenge the current approaches to doing business. This allowed them to engage their employees fully resulting in a greater opportunity for growth and a deeper connection to the

45

organization. A big component of developing a learning culture is allowing employees the freedom to make mistakes, to take chances, and try new roles within an organization. In this organization the HR function supported this culture with formal collaboration and idea programs, as well as implementing incentives that encouraged this behavior. What struggles are keeping your business leadership up at night? What challenges are facing your HR Leadership today? HR executives and professionals are seeking ways to deliver ever-greater levels of service and support. In today's business climate with its rapidly changing workforce, economic challenges, regulatory requirements, and evolving technologies how can you make sure your HR organization is optimized for effectiveness, efficiency, and remains business aligned? Join me at our IMPACT 2010 conference to learn more about how HR organizations are transforming their functions and developing new approaches to doing the business of HR. If youd like to share your HR organizations recent transformation efforts or just highlight practices you feel create an effective HR function please feel free to comment on this topic or call me for further discussions.

46

Difficulty in identifying the people, use right kind/system of recruitment techniques and sources. Difficulty in identifying the right kind of Selection Tests, Interview etc. Difficulty in convincing the employees to accept the ratings of performance appraisal, accept the purpose and outcome of performance and/or potential appraisal. Difficulty in motivating the employees to undergo training seriously and apply the knowledge/skills acquired on the job. Difficulty in changing the behavior of employees in accordance with the required behavior of the organization. Difficulty in formulating a wage/salary policy acceptable to all employees, trade unions and management. Dissatisfaction of employees regarding promotions and transfers. Employees reluctance to accept disciplinary rules of the company. Employees grievances and inability of Management to redress all grievances.

47

One major concern about considering people as assets or resources is that they will be commoditized and abused. Modern analysis emphasizes that human beings are not "commodities" or "resources", but are creative and social beings in a productive enterprise. The 2000 revision of ISO 9001, in contrast, requires identifying the processes, their sequence and interaction, and to define and communicate responsibilities and authorities. In general, heavily unionized nations such as France and Germany have adopted and encouraged such approaches. Also, in 2001, the International Labor Organization decided to revisit and revise its 1975 Recommendation 150 on Human Resources Development. One view of these trends is that a strong social consensus on political economy and a good social welfare system facilitates labor mobility and tends to make the entire economy more productive, as labor can develop skills and experience in various ways, and move from one enterprise to another with little controversy or difficulty in adapting. Another important controversy regards labor mobility and the broader philosophical issue with usage of the phrase "human resources". Governments of developing nations often regard developed nations that encourage immigration or "guest workers" as appropriating human capital that is more rightfully part of the developing nation and required to further its economic growth. Over time,

48

the United Nations have come to more generally support the developing nations' point of view, and have requested significant offsetting "foreign aid" contributions so that a developing nation losing human capital does not lose the capacity to continue to train new people in trades, professions, and the arts.

49

CHAPTER 6 : CONCLUSION
Human resource Management : Futuristic Vision Epilogue

50

Human Resource Management: Futuristic Vision On the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of HRM with regard to its futuristic vision: 1. There should be a properly defined recruitment policy in the organization that should give its focus on professional aspect and merit based selection. 2. In every decision-making process there should be given proper weight age to the aspect that employees are involved wherever possible. It will ultimately lead to sense of team spirit, team-work and inter-team collaboration. 3. Opportunity and comprehensive framework should be provided for full expression of employees' talents and manifest potentialities. 4. Networking skills of the organizations should be developed internally and externally as well as horizontally and vertically. 5. For performance appraisal of the employees emphasis should be given to 360 degree feedback which is based on the review by superiors, peers, subordinates as well as self-review. 6. 360 degree feedback will further lead to increased focus on customer services, creating of highly involved workforce, decreased hierarchies, avoiding discrimination and biases and identifying performance threshold. 7. More emphasis should be given to Total Quality Management. TQM will cover

51

all employees at all levels; it will conform to customer's needs and expectations; it will ensure effective utilization of resources and will lead towards continuous improvement in all spheres and activities of the organization. 8. There should be focus on job rotation so that vision and knowledge of the employees are broadened as well as potentialities of the employees are increased for future job prospects. 9. For proper utilization of manpower in the organization the concept of six sigma of improving productivity should be intermingled in the HRM strategy. 10. The capacities of the employees should be assessed through potential appraisal for performing new roles and responsibilities. It should not be confined to organizational aspects only but the environmental changes of political, economic and social considerations should also be taken into account. 11. The career of the employees should be planned in such a way that individualizing process and socializing process come together for fusion process and career planning should constitute the part of human resource planning.

52

Epilogue To conclude Human Resource Management should be linked with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. All the above futuristic visions coupled with strategic goals and objectives should be based on 3 H's of Heart, Head and Hand i.e., we should feel by Heart, think by Head and implement by Hand.

53

Bibliography www.expertcolumn.com Human resource management K Aswathappa Human resource management L M Prasad Wikipedia Mr. Deepak Sharma Associate Director McDonalds Corporation

54

You might also like