Assess approach an organisation has to strategic hrm

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

The project discusses the policies and strategy adopted by the company IBM Daksh and how their effective implementation has led to the fulfilment of the set organizational goals.

The project will mainly discuss theories pertaining to the topics of Recruitment and Selection, Performance Management System, Training and Development and Employee relations.

All the functions are vital to the business entity ensuring that the organization acquires the correct resources to carry out its business. The right people for the job need to be hired, then given the specific training demanded by their job role, measuring their performance, keeping the workforce motivated and content and also handling their concerns and grievances to ensure the smooth running of the business entity.


The project requires us to choose an organisation, and then applying theories of HRM, to critically asses the approach that is taken to strategic HRM. After discussing the approach that the organisation has adopted, the project shall evaluate the extent to which it has been successful in contributing towards organisational effectiveness.

The organisation that has been chosen for the purpose of this assignment is IBM-Daksh and the project is going to critically evaluate the approach adopted towards strategic HRM.

Company profile:

IBM started its operation in India in the year 1992.The company since the start of its operation and continually progressing has now established itself as one of the leaders in the field of Indian Information Technology (IT) industry.

IBM's agenda has been based on the concept of "on demand business", where an organisation, would change the way it operates and reduces cost; serving the customers better, improving speed and agility in the marketplace thereby reducing the amount of risk. IBM is the only one of a kind business that offers end to end solutions to customer's queries regarding hardware, software, consulting and allied services.

IBM Global Services is the world's and also India's largest information technology services and consulting provider. IBM's Global process services is an integral part of the company's Globally Integrated Enterprise Model. IBM Global Services specializes in providing solutions across the various verticals such as Insurance, Banking, Telecom, Travel, Technology, Distribution and Utilities. The core expertise of IBM Global Services lies in Customer Relationship Management , Finance and Accounting , Technical Helpdesk, and industry specific Analytics Service and Back Office.

Originally known as DAKSH eSERVICES, they were acquired by the IBM corporation in June 2004 to serve as a global hub for handling business process transformation. The acquisition has helped IBM to extend its global network and has also helped IBM Global Services to increase market penetration by strengthening the customer acquisition engine and providing end to end services across Business Transformation Outsourcing(BTO) and Business Process Outsourcing(BPO). The organisation delivers asset-based business process outsourcing solutions to more than 70 clients across multiple industries globally. The solutions offered by IBM Daksh are based on a powerful combination of process expertise, talented workforce; advanced technology and world class delivery provide the value beyond labour arbitrage in a secure working environment.

IBM Daksh engages with customers, so that businesses can focus on their specific core competencies, reduce operational costs, attain measurable process improvements and achieve enhanced customer satisfaction.

At IBM Daksh, the company policy followed is centred around employee development offering a world class culture that nurtures bright young talents, honing their skills and increasing their abilities so as to deliver quality results. A leading employer of choice, IBM Daksh is reputed for the ability to attract, develop and retain talent.

Before the project discusses the individual theories of HRM and applies them to the organisation IBM Daksh it is very important to understand the meaning of the term HRM.

Human Resource Management:

HRM is the coherent and the strategic approach taken towards the management of the organisation's most valued asset- its employees, the people working in the organisation who collectively and individually contribute to the achievement of the goals and objectives of the organisation. In simple terms, HRM means employing people, developing their abilities and skills, utilizing, maintaining and then compensating the services in accordance with the specified job and the organisational requirement.

A HRM Strategy means how to implement the specific functions of HRM. A company's HRM function consists of recruitment and selection policies, learning and development policies, disciplinary procedures, reward / recognitions policies and an overall implementation of the HRM plan. All of these individual functions need to be implemented, aligned and correlated so as to correspond to the objectives of the organisation, in the case being IBM Daksh. So it can be said that, a HRM strategy thus is an overall plan which is concerned with the implementation of the specific HRM functional areas.

A HRM Strategy can be divided into two facets one being the people strategy and the other HR functional strategy. The people strategy pertains to the careful correlation of the HRM policies with the corporate strategy to attain the goals of the firm and the HR functional strategy is related with the policies employed within the functional area of the HRM Strategy, regarding the management of people internal to it and the main focus lies in ensuring that the departmental goals are met.

Now that the project has established a clear understanding of the functions of the HRM Strategy, all the individual functions will be discussed below followed by its application and implementation in the organisation, IBM Daksh; followed by individual analysis of all the theories applied and the way the approach taken by the company has contributed to organisational effectiveness.



Recruitment is the process which involves searching eligible candidates for employment and stimulating them to apply for specified jobs in the organisation. It is the activity which links the employers and the job seekers. It can also be described as a process which helps in discovering sources of manpower to meet the requirement of staffing, schedule and to employ the best man. It is such an important activity, that the importance of this specific function cannot be over emphasized; this activity is also described as the "heart of the organisation".

Three main stages of recruitment:

Identifying and defining the requirements; job descriptions and job specifications

Attracting potential employees

Selecting and employing the appropriate people from the job applicants

Sources of employment used by IBM Daksh:




Internal Notification ( Internal job posting; IJP's)



Former employees


Campus recruitment

Press advertisement

Management Consultancy Services

Deputation of employees from one enterprise to another

Management training schemes

Walk-ins, rite-ins, talk-ins

Methods of recruitment followed by IBM Daksh:

Direct Methods:

These include sending recruiters to educational institutes, conventions and seminars. IBM Daksh Human Resources Team often sets up exhibits at fairs and uses mobile offices to go the desired centres.

Indirect Methods:

IBM Daksh has an aggressive advertisement policy utilizing TV, radio and using various types of print media such as newspapers, magazines, trade and professional journals, technical magazines and brochures etc. inviting applicants for walk-in interviews.

Third Party Methods:

IBM Daksh utilizes the services of commercial and private employment agencies, management consulting firms, indoctrination seminars for college professors, friends and relatives.


Selection can be termed as the process which can be conceptualized in terms of choosing the best and the most conditioned candidate and rejecting the unfit candidates. The basis of the selection process is an assumption that there will be more number of candidates, than the number of candidates who are actually selected, who are made available through the recruitment process.

It is the process of choosing the best people, out of all the candidates. In the process, relevant information of the applicant is collected through a streamlined series of steps so as to evaluate the suitability for the role assignment.

Selection method adopted by IBM Daksh:

Preliminary Interview

Selection Tests

Employment Interview

Reference and Background Analysis

Selection Decision

Physical Examination

Job Offer

Employment Offer


PMS, can be defined as a management technique, which is intended to consider the performance of a group of employees or machines which work towards the goal of achieving optimum performance of a particular task or a group of tasks. It can also be defined as a comprehensive process which is put in place by the organisation to measure, improve and reward the performances of employees. It's a formal system by which an organisation reviews the performance and the potential of staff.

It provides a basis for numerous critical managerial decisions such as those which relate to the allocation of duties and responsibilities, empowerment and levels of supervision, pay, training and development needs and career progression.

The analysis of Performance Management System in IBM Daksh:

Performance is achievement against set goals. The objective of the policy adopted by IBM Daksh is to provide a framework to set the employee's Annual Personal Business Commitments and measure performance against the same.

The scope of the policy adopted by IBM Daksh includes:

Performance Management:

a) Personal Business Commitment

b) Managing Marginal Performance

c) Pay for Performance

d) Individual Development Plan (IDP)

a) Personal Business Commitment (PBC)

1) Goal Setting

Goals are specific to individuals. The goals are always set at the beginning of the appraisal year (January to December) or within the 30 days of joining in case of non CCS and 90 days in case of Band 3 and 4 operations. IBM Daksh believes that typically an employee's goals should include and encompass the business goals, developmental goals and the people management goals. The employee and the concerned manager should mutually agree on the documented goals.

2) Feedback and Mid-Year Review

Managers provide periodic feedback during the year on the employee's performance and areas of improvement. A formal mid-year review will be conducted by the People Manager on the employee's performance to determine if the employee is on track to achieve the specified goals for the year in question. However, there is no rating which is communicated during the mid-year review conducted.

3) Annual Performance Review

At the end of every appraisal year the People Manager assesses every employee's achievements against the set goals and analyses the level of performance. Every employee receives a year end PBC rating that takes into account the individual's performance for the entire year.

4) Team Based Decision Making (TBDM)

Team Based Decision Making is an exercise followed by IBM Daksh wherein the functions second level manager facilitates a discussion for the first level managers to assess the relative contributions of the employees in their respective department and teams so as to achieve consensus on the best and the worst performers.

5) PBC Rating Scale

A detailed description of the 5-point PBC Rating scale is given below. 

PBC Rating


PBC Rating of 1

Amongst the Top Contributors

PBC Rating of 2+

Above Average Contributor.

PBC Rating of 2

Solid Contributor

PBC Rating of 3

Amongst the Lowest Contributors this year; needs to improve

PBC Rating of 4

Unsatisfactory Contribution; does not meet the performance requirements of the Company 

If the employee with managerial responsibilities is rated a PBC-3, the Company shall deem that the employee does not meet the requirements of the Company, and may take appropriate action. If any action other than a PIP is to be taken, an independent review and assessment of the PBC shall be done.

6) Manager's Evaluation & Sharing Meeting

The People Manager schedules a 'Sharing Meeting' with the employee to review the performance and then communicate the corresponding PBC rating. The manager is expected to provide the full rationale and reasoning to the employee of the rating and also take complete ownership of the same.

7)  Signature Process

The employee should acknowledge the PBC rating on the tool (PSHR) after the following discussion and review. After the employee signs and agrees on the rating, the same is approved by the People Manager and the Reviewer to formally close the assessment cycle.

b) Managing Marginal Performance

In order to drive and create a high performance culture within the organization it is imperative to manage the, low performing employees with guidance so as to assist them to work towards the expected job performance standards set keeping in mind also the behavioral standards which is a very integral part of the working environment. Managers should provide the employees with ample opportunities to correct all the issues affecting performance prior to disciplinary action, except in cases of serious misconduct where action deemed fit according to the set policies would be initiated.

The steps taken by the organization towards high performance culture will result in improved employee productivity; early identification of performance issues and increased employee and team morale.

Performance Improvement Plan (PIP)

A Performance Improvement Plan (PIP) is a method which is followed and is designed in such a manner so as to address shortcomings in an employee's performance. It facilitates constructive discussions between an employee and his or her supervisor in which they discuss and clarify the specific areas of work performance that need improvement. All the employees with a PBC rating of 3 are issued a PIP. Notwithstanding this, PIP can also be issued for low performance at any time, duly supported by the corresponding documentation, when it becomes necessary to help an employee improve his or her performance. The manager, with input of help required from the affected employee, develops an improvement plan. The purpose of the activities outlined in the designed plan is to help the employee to attain the desired level of performance and meet the goals of the organisation.

c) Pay for Performance

To enhance the performance of an employee, incentives are offered so as to motivate the employee to improve the already existing level of output and increase the level of production.

IBM Daksh has special Monthly/Quarterly/Annually driven incentive schemes and Annual Performance Bonus to drive performance within the organization.

d) Individual Development Plan (IDP)

IDP is a tool available in the company domain PeopleSoft facilitating scheduling & planning for the individual learning and development needs each employee every year. It links the employee's interests, skill and career aspirations to the organizational needs and identifies specific development activities aimed at achieving those. The employee's Individual Development Plan is an Annual exercise and is reviewed periodically to map the achievements against plan outlined. The IDP can be revised in the event of a change in designation, role or both for an employee.


In regards to the HRM Strategy, training and development is the field that is concerned with the organizational activity aiming at improving the performance of the employees.

Training and development as a unit can be individually broken down into three functions namely, training, education and development.

Training is the activity that is focused upon and evaluated against the job that an individual currently holds. Education is the activity that focuses upon the jobs that an individual may potentially hold in the future. Development is the activity which focuses upon the activities that the organisation employing the individual, may partake in the future. This is the one function which in my opinion is almost impossible to evaluate.

Training is a very vital activity to ensure an adequate supply of staff that will be both socially and technically sound and also competent so as to branch out into specialist departments and management positions, if required in the future and for this reason a continual need for staff development and training is necessary. The process of training needs to keep on innovating due to the increasing pace of social, structural and most importantly technological change.

Training- a planned and systematic approach:

In order to reap the most benefits from a training and development strategy adopted by any organisation it is very vital that the training management adopted, be a planned and systematic approach which would lead to optimum organisational performance. There should be a clear commitment to training throughout all levels of the company which involves the co-operation of the immediate line managers and where appropriate also the participation of the trade unions and staff representatives of the firm.

The management of training adopted should always correspond with the vision of where the organization is going. The training module designed should be responsive to changes in the external and internal influences of the economy. It should be designed in such a manner that the employee feels a sense of "ownership and partnership" in the training process.

Training and Development activities in IBM Daksh:

At IBM Daksh the main objective is to attract and retain the best individuals for the different specified roles within the organisation, hence the company recognizes the very important need to invest in training and development process. Discussed below are the activities which are in place at IBM Daksh:

Education Assistance Programme (Educareer)

Employees while in the employment of company have an option to acquire professional qualifications to meet their career aspirations, and to contribute to the organization's growth.

Employee Assistance Programme (MiTR)

Employee Assistance Programme (EAP) stems from IBM Daksh's emphasis on the emotional well-being of employees so as to ensure a fit, healthy and a productive workforce, thereby enhancing their work / life balance.

EAP offers free & confidential counseling & referral services which is designed to help employees, to resolve personal, emotional and behavioral problems that may be interfering with their work / home life. 

Managers provide periodic feedback during the year on the employee's performance and areas of improvement. A formal mid-year review is conducted by the People Manager on the employee's performance to determine if the employee is on track to achieve the specified goals for the year in question.

At the end of every appraisal year the People Manager assesses every employee's achievements against the set goals and analyses the level of performance. Every employee receives a year end PBC rating that takes into account the individual's performance for the entire year.

IDP is a tool available in the company domain PeopleSoft facilitating scheduling & planning for the individual learning and development needs each employee every year. It links the employee's interests, skill and career aspirations to the organizational needs and identifies specific development activities aimed at achieving those. The employee's Individual Development Plan is an Annual exercise and is reviewed periodically to map the achievements against plan outlined. The IDP can be revised in the event of a change in designation, role or both for an employee.

All of IBM Daksh's activities which involve training are set-up and managed by an internal online platform- which provides for comprehensive programme of training and development. It's available to all employees through intranet and offers a choice of courses to increase one's skills and abilities.

On a regular basis every month, compliance checks and knowledge management tests are carried out within the organisation to assess whether the understanding of the employee is in tune with the set goals of the organisation. The results determine the course of action that shall be adopted and helps in providing the employee with knowledge about the aspects of the business that he/ she never knew about.


Employee relations can be described as the body of work that is concerned with the maintenance of the employer-employee relationship that contributes to the productivity, morale and the motivation of the employees. It is concerned with the prevention and the resolution of the problems being faced by the workers of a firm which arise out of or affect work situations.

It is the mechanism by which the organization and workers communicate and resolve any conflicts within the boundaries of the employment relationship. It is a function of HRM Strategy that describes the dynamic interlocking relations that exist between individuals and their work organisations.

Analysis of Employee relation policies in IBM Daksh:

IBM Daksh values high level of employee relations, as it plays a very important part in delivering employee satisfaction, customer satisfaction and finally achievement of business goals. This policy thus provides a framework to govern these programs.

The policy covers all regular employees who are contributing to MBPS BPO under the management of IBM Daksh India (IBM Daksh) and includes the following:

Terms and Conditions of Employment

Employee engagement fund

Internal Communications

Concerns and Appeals

Open Door ( Grievances Handling System)

Retention schemes

Education Assistance Program

Workforce Research

Reward and Recognition Programs

Terms and Conditions of Employment: 

Terms and Conditions of Employment

All employees are suggested to familiarize themselves with the terms and conditions of employment which are defined in the letter of appointment.

Code Of Conduct -COC

On an annual basis, employees are required to read and certify their compliance with the organizations corporate guidelines and participate in code of conduct training which includes such topics as financial integrity, Foreign Corrupt Practices Act and anti-bribery. In this ethics course, illustrative scenarios are presented in an interactive format for employees to resolve and conclude with a final exam that employees must pass to insure comprehension of the material.


The employees are representing a talented and diverse workforce. Achieving the maximum potential from this diversity is a business priority that is fundamental to the competitive success. A key element in the workforce diversity programs is IBM's long-standing commitment to equal opportunity.

Business activities such as hiring, promotion, training, transfers, , compensation and recognition of employees, are conducted without regard to, religion, gender, expression, sexual orientation, race, color national origin, genetics, disability, caste or age. 

Workplace Discipline

The purpose of the Disciplinary Procedure is to ensure that IBM Daksh behaves fairly towards all its employees in investigating and dealing with alleged instances of unacceptable conduct or performance.

Working Hours/ Attendance

Company recognizes that a productive workforce is critical to the success of the organization. Organisation defines the holidays and leaves entitlements which are designed to allow regular time-off from work to enable the employee to meet personal needs for keeping an effective work-life balance.

Workplace safety

Company aims to ensure that all employees are provided safe environment to work and is always ready to address any emergency situation to help employees to safety.

Employee Engagement Activities

Company actively involves employees and solicits their ideas, encouraging employee involvement in all activities where we touch the employees and their family in the various forms. There are a number of initiatives followed as discussed below:

a) Off-sites

b) Annual Parties. competency/location parties, employee meets, open house etc.

c) Fun days and weekly events

d) Festival & Events Celebrations

e) E-mail based fun activities

f) Staff welfare

g) Small Group Activities

Internal Communication

The objective is to disseminate relevant information formally through various media available in the organization, in order to increase effectiveness, efficiency and awareness of employees. Some of the formal means of communication used are:

c) From ISS

d) In-house Magazine from Corporate Communication (Quarterly) - Canvas

e) Intranet - w3, K Com

f) Meetings at locations

g) Open house

h) Focus groups etc.

Concerns and Appeals

Confidentially Speaking

The Confidentially Speaking program is an anonymous channel for you to raise concerns about company policies and practices, internal process issues and bureaucracy, or suspected violations of our Business Conduct Guidelines (including suspicions of fraud, theft, improper business practices, and other issues of business ethics)

Open Door

This is IBM's formal grievance process for employees to request a confidential review of management actions that have personally affected them. At IBM takes employee issues seriously, both within the management chain and peer-to-peer relations.

Retention Schemes

The objective is to introduce programs and schemes from time-to-time in consultation with the C&B team to reward tenure and association with the company.

Workforce Research

Company conducts workforce research to measure and understand their employee's attitude, opinions, motivation, and satisfaction. Employees are invited to participate in a variety of surveys, covering such topics as business and team effectiveness. The surveys provide an opportunity to identify issues and develop actions for improvement.


The project has discussed the approach adopted by IBM Daksh towards Strategic HRM by discussing the theories of Recruitment and Selection, Performance Management System, Training and Development and Employee Relations. The goal was also to evaluate the extent to which these policies have contributed towards organizational effectiveness.

Recruitment and Selection, the most vital part of an HRM Strategy, it lays down the basis on which the whole organizational structure is based. It is the first step towards a strategy and everything is planned around this one crucial function. It is rightly said that, it is the employees who make an organization and if a firm gets that wrong, then it cannot survive in the tough economic markets of today.

Then comes the function which measures and manages the performance of the organization and of the employees. Performance Management System communicates the business strategy, establishes an understanding of what is to be achieved and how, provides opportunities for personal development and career growth.

Training and Development, this is a function without which a firm cannot grow and expand, the existing employee's need training so as to enable them to have the edge in this fast changing economic and technological world, to achieve optimum organizational goals. Developing the employee's is also very vital as these are the people who would stay with the organization and will become valuable assets for the firm by putting in all of their energy, skills, abilities and experience to ensure the advancement of the business.

Employee relations, again a very crucial function in the HRM strategy, providing the worker with job satisfaction, self-confidence and motivation and the organization with quality, performance, loyalty and commitment of staff and customers.

All the theories and practices which are discussed in the above project constitute a strategy of effective Human Resource Management and from the analysis and evaluation of these policies implementation in IBM Daksh we can say, it has led to better organizational effectiveness.

Hiring the right people, giving them adequate training, measuring and improving their individual performances and always keeping them motivated and content is the strategy which every business follows and this stands true in the case of the company IBM Daksh.


Torrington. D, Hall. J and Taylor. S (2008) Human Resource Management (7th edition), Harlow: Prentice Hall

Gibb. S (2008) Human Resource Development: Process, Practices & Perspectives, Palgrave: McMillan

Henderson. I (2008) Human Resource Management for MBA Students, CIPD

Needle. D (2004) Business in Context. An introduction to business and its environment. London: Thompson

Leopold. J, Harris. L and Watson.T (2005) The Strategic Managing of Human Resources. Harlow: Prentice Hall

Online resources: › ... › Performance management › General › human resources