Strategic goal means the 'long term planning 'according to HILL NAD JONES (2004, P.4) Strategy is 'an action a company takes to attain superior performance' There are various strategic planning in use to get maximum of the strategic goals/objectives for the organization. Like SWOT ANALYSIS (Strengths, Weaknesses, Opportunities, and Threats), PEST ANALYSIS (Political, Economic, Social, and Technological), STEER ANALYSIS (Socio-cultural, Technological, Economic, Ecological, and Regulatory factors), and EPISTEL (Environment, Political, Informatics, Social, Technological, Economic and Legal).
The strategic goal and objectives set up by HRM is very important and effective to attain progress and reputation in market as well as survival of any company. In order to achieve the goals set by HRM the strategies must be:
According to survey published in http://humanresources.about.com/cs/strategicplanning1/a/strategicplan.htmCompanies whose employees understand the mission and goals enjoy a 29 percent greater return than other firms (Watson Wyatt Work Study).
HR STRATEGIES FOR BUSINESS PERFORMANCE
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There is the various strategies which cab create a positive effects on business.
1. There should be a well effective recruitment policy in the organization that will focus on professional and merit based selection.
2. In every decision-making process there should be a way that maximum employees involved wherever possible.
3. Opportunity should be provided for full expression of employees' talents and abilities
4. Communication skills for the organizations should be developed in all stages of organization.
5. For performance appraisal of the employee's preference will be given to 360 degree feedback.
6. Total Quality Management should be introducing in organization as, TQM will cover all employees, it will fulfill the customer's needs and expectations.
7. There should a job rotation so that experience and knowledge of the employees are expanded.
8. Six sigma should be intermingled in the HRM strategy for proper utilization of manpower in the organization.
9. The accessed the capacities of the employees, there should be through potential appraisal for performing new roles and responsibilities.( http://expertscolumn.com/content/human-resource-management-nature-scope-objectives-and-function) Example in BIRLA3M CORP, they encourage Two-way communication. We have something called "Between Us". Once in six months, the MD and the HR head go to all the branch offices. The MD talks about the business and request the people's involvement in fulfilling the organization's dreams. HR head talks about the new HR policies and then there is an open discussion. Employees can express themselves on whatever issues they have with regard to work. If there are sensitive issues, which they don't want to discuss openly, they can write and give those without their names. The question is read, and the answer given. The paper on which the question is written, is destroyed then and there, to make sure that nobody tries to trace the handwriting of the person or in any way recognize him/her. Example in AIR TEL they strongly believe in 'softer skills' such as working in teams, inter-personals skills, communication skills, creative thinking, entrepreneurial skills etc.
I am not sure if they are unique, but we have a policy like 'HR Reach out'. Every HR member is assigned a department. He she works with the department very closely not only to proactively enable employees performs but also to partner with the business and influence business processes and policies.
Few more would be the 'Customer Contact Programs'. Once a month, all senior managers reach out to customers to get a firsthand feel and feedback from them.
they conduct Employee Satisfaction Surveys, have departmental strategic matrices developed to work on employees feedback, etc.
OBJECTIVES OF HRM
â€¢ To help the company reach its strategies.
â€¢ To check the utilization and maximum development of human resources policies.
â€¢ To ensure respect for employees. To be aware and satisfy the needs of each employee.
â€¢ To ensure reconciliation of employees goals with those of the organization.
â€¢ To maintain high morale inside the organization amongst employees.
â€¢ providing the organization with trained employees.
â€¢ To maximize employee's job satisfaction.
â€¢ To maintain a good standard of work life.
â€¢ Socially responsible to the needs of culture.
â€¢ To maintain overall personality of each employee.
â€¢ To maximize employee's capabilities to perform for job.
Always on Time
Marked to Standard
â€¢ To develop the precision and clarity in the transactions of business.
â€¢ To introduce the employees with the sense of team work and inter-team collaboration
So setting strategic goals by any organization and linking them with the HRM is very efficient and will improve the business performance. This all will be further illustrated further.
EFFECTS OF HRM FACTORS ON BUSINESS PERFORMANCE
HRM is the main and important part of any organization, which can be extended to any limit, and can create a very positive effect on business. For a successful business the HRM must be efficient and effective. So in order to achieve the goals and objectives of business and to improve the business performance the HRM has to undertake the following of its activities:
Human resource or manpower planning.
Recruitment and selection criteria of personnel.
Training and benefits of employees.
Appraisal for good employees.
Taking important steps e.g. Transfer of job
Security and benefits of employees.
Implementing general and specific management policy for organizational relationship.
Collective bargaining and contract handling.
Staffing the company desired.
Each of this HRM activity has an important and a positive effect on a performance of business. So we will discuss some of the important factors separately that how they can impose their positive effect on business performance. EXAMPLE in HSS, Managers gives "Snap Awards" for individual and team achievements to their teams when they excel or do something outstanding. These are usually given during the quarterly staff meetings where all employees participate and this is followed by a party. Example in mind tree consulting once in three to four weeks, we call up our employees and give them information as to what is happening. Whenever there is a project win or a customer delivery, we ring the bell in the company to inform everybody. We have the CEO's snapshots which is released once in two weeks, the in-house magazine, meet the "Mind Tree Minds" (the way we call our employees), where the computer selects some names at random and they meet the senior people to get the right perspective of what they are doing, why they should do it, etc., and to make sure that there is enough interaction. All these things enhance communication, security, sense of belonging and commitment towards the organization.
A very important activity where management determines how the organization will progress from its current position to planned position. The main aim of manpower planning is "A RIGHT PERSON FOR A RIGHT JOB".Example in Wipro technologies We have the HR review in the planning cycle, which is a rigorous process involving everyone, right up to the head of the organization. We do succession planning for individuals wherein we identify the best talents - the top ten people. We also identify our bottom ten people, who are asked to pull up their socks and improve, failing which they will have to leave. We carry out this exercise every quarter and this enables us to be well informed about our people asset
"So it is therefore the strategy for development, allocation utilizing and maintenance of human resources of organization" http://basiccollegeaccounting.com/what-is-manpower-planning/
Organization strategy and targets
Organization practices and methods
Manpower review and analysis
Adjust to balance
Recruit Retain Reduce
FIGURE REF: BRATTON.J&GOLD.J (2007)(4ED),HRM T&P(P199),BASINGSTOKE.UK
This activity is very critical for organizations, to get best employees who can give their best to up rise the organization and have the ability to complete their task confidently and effectively with in the allocated time. There are two main types or recruitment internal and external recruitment.
"The aim of recruitment policy should be to attract good quality applicants and to make valid, reliable and cost effective selection decisions. We need to consider how an organization gains a reputation as good employer, it may take good few years to build up a reputation as a good employer, this reputation can be unfortunately be lost in months, or even weeks, by injudicious employment decisions"(cowling, A& JAMES,P(1994) PERSONNEL MANAGEMENT AND INDUSTRIAL RELATIONS) Example in Wipro technologies they have a program, which is known as "wings within'- an internal job posting system. This works well, as our people can apply for jobs in other departments and they do not have to inform their supervisors about it. If selected they can move out and nobody can stop them. This gives people the feeling that they are not buttonholed into a particular type of job.
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Example their CEO Mr.Azim Premji spends 3 to 4 hours with every new group of employees, briefing them about our promises, values and beliefs.
From time to time special needs arising. So in order to stay on a progress line and follow the company's objectives. The employees must be trained with the passage of time. Its like the upgrading of the staff. Training and development is important in order to progress and development of organization and are necessary in order to:
Develop workers to go after higher-value tasks;
Provide the seasonal training to newly worker
Raise efficiency and standards of performance;
Meet legislative requirements (e.g. health and safety);
Inform people with up to date information (short courses etc.)""
EXAMPLE in CISCO the HR manager explained that 'The way we have empowered our line managers needs to be mentioned first in this regard. We have provided them with HR tools, technologies, and online tools etc., which give them an edge over their counterparts in other organizations. At the click of a button, a manager can look at the database of his/her own people, track history of development, increments, promotions, stock options etc. They are also given the rating and ranking tools. They could recommend changes and training needs and they could draw upon the resources available. Technology is deployed in a very effective way.
APPRAISAL OF PERFORMANCE
Appraisal is important key factor in organization to motivate its employees and give them courage and more confidence to work hard and with the sincerity to gain goals and objectives of the company. "The five factors of the performance appraisal are:
Measurement assessment of performance of each individual against its set objectives.
Feedback to aware the employee on progress and performance.
Positive reinforcement emphasized what task is done and doing constructive criticism about improvement.
Exchange of views a friendly exchange of comments and ideas how appraises improve performance, the support from managers to achieve their future career.
Agreement to understand all parties views about what can improve performance and to answer any issues in discussion.''
REMUNERATION OF EMPLOYEES "When people work for a company, they expect to receive from the company something in return for their efforts. Employee remuneration refers the Compensation and reward given by companies to their employees. The remuneration to employees can be broadly divided in two types. The first is the pay, which they can spend as they please. The second is the job facilities provided to them to improve their effectiveness and comfort on the job. These can be provides in physical form such as company car, or as payment of expenses like travel, lodging, dining and entertaining incurred while performing company work" EXAMPLE E-greetings have been operational is HSS through the intranet to send appreciation to other employees. Special cards suited to the HSS environment are available. This is a god way of recognizing and appreciating others, especially for those who find face to face appreciation somewhat uncomfortable. EXAMPLE There is an award for Best People and Project Managers, given to two best managers and leaders each year in HSS.
INCENTIVES FOR EMPLOYEES
The main aim of any employee is to earn money .If they are getting better money they will work better and with more courage. There are some main incentives programs for employees which are
"Set the targets: The clearer the target, the more effective the behaviors and outcomes.
Aim not just to motivate your top performers, but all your team members: The opportunity for growth is in the middle 80% of people
Communicate regularly with everyone in the program and keep it top of mind: Ensure top management is involved
Offer an extensive selection of rewards choices: Look at alternatives to cash and vouchers for long-term, tangible goodwill
Make the awards timely: Keep the acknowledgement close to the performance
Build in accumulating effect to motivate your people and keep them focused
Measure your results and analyze your team's performance. Use this data for future goal setting or return on investment review
Be flexible to change.
Example There are Presidential Awards for overall excellence in HSS. These are given annually and are in four categories:
Example in The Philips Software Company there is the dream project. Dream projects allow every employee to pursue a project of their own interest in the technical area. They invest time while the company given them resources and encouragement. However, the project has to help Philips in some way or the other. It has to be relevant for what Philips is pursuing
JOB ROTATION transfers an employee from job to job. The purposes of job rotation are to give employees experience with all organizational activities as a training process and to offset boredom, which can occur when performing the same job over an extended period of time.
"A job rotation in an organization has potential of giving better impact on job. Few of the outcomes of job rotation with respect to the employees are:
enough motivation and confidence against newer challenges
Organization complete development
Example in Philips Corporation, once an employee completes 3 years, they will consider employees for an international assignment within Philips. Further any employee who completes eighteen months can transfer within the company, from one technology to the another, one product division to another. they facilitate such a job rotation.
For an organization, the benefits include:
Aligning competencies with organizational requirements
Lower attrition rates
Performance improvement driven by unique view points of new people" (http://www.alagse.com/hr/hr9.php)
HRM AND ORGANISATIONAL CULTURES/ ORGANISATIONAL DEVELOPMENT
When we discuss about the organizational cultures. We must discus about the ORGANISATIONAL CULTURE and the ORGANISATIONAL DEVELOPMENT. so in the first part we will open and discuss the literature of CULTURE and then ORGANISATIONAL DEVELOPMENT(OD).
ORGANISATIONAL CULTURES The HRM's one of the major functions is to maintain and develop the organizational culture inside the organization so, definitely if the organizational culture is maintained by the HR then employees will have the confidence in the work place, that is lead to the appraisal of the organization and the "Other functions of HRM is to be aware of the behaviors of organizational members to ensure employees are working for organizational goals and to take some action if they can't achieve these goals. Another function is to keep thinking, what is best for their organization in the future and to look for new opportunities to use all available resource to create value". http://www.citehr.com/71087-how-develop-organizational-culture.html
This paragraph is to analyze the organizational culture and to discuss the HRM. In the first part, the HRM and the business performance is analyzed; the factors explaining this culture and the extent to which the factors are responsible for the business performance is discussed. In the second part, we will discuss that, HOW the HRM will create a positive effect on organizational culture and improve the business performance that foster innovation and flexibility, it is obvious the different organizations have distinctive cultures. A commonly used definition of organizational culture is 'the way we see and do things around here'. Through tradition, history and structure, organizations build up their own culture. Culture therefore gives an organization a sense of identity - 'who we are', 'what we stand for', 'what we do'. It determines, through the organization's legends, rituals, beliefs, meanings, values, and language, the way in which 'things are done around here'.
An organizations' culture encapsulates what it has been good
''Culture is a advance and positive component of an organization, depending on the tracks for strategy It is the basic for profit, productivity and development. it can help to progress in getting to the upper level of performance, it can just as easily act as drag. http://www.culturestrategyfit.com/ http://www.internetwebhelp.com/intraorganizational-and-extraorganizational-influences.html "The purpose of organizational culture are as follow. Two purposes are self-development and administrative decisions.
â€¢ Improving administrative performance.
â€¢ Improving department/unit performance.
â€¢ Assisting administration in making effective decisions.
â€¢ Salary increases.
Ronald G. Downey and Kelline S. Cox. 2002. "Developing an Organizational Culture and Infrastructure for Administrative Evaluation and Feedback." The Department Chair (fall) 15http://www.acenet.edu/resources/chairs/docs/downey.pdf
ORGANISATIONAL DEVELOPMENT OD is defined as 'planned and systematic approach to enabling sustained organization performance through the involvement of its people'
GREINER, L.E. and CUMMINGS, T.G. (2005) OD
"In 1960s, the word 'organization development' came into being as an umbrella to include all the previous thinking about the behavioral aspects of changing and developing organizations". OD then extend inside the organizations, who helps in altering the shapes of the managers for improving organizational performance? T-group is run by consultants, on a large level and is managed to support managers towards more trusting performance, were frequently the vehicle for this. GREINER, L.E. and CUMMINGS, T.G. (2005) OD ''wanted more alive than dead'' BRADFORD, D.L. and BURKE, W.W. (Eds) (2005) ''Reinventing organizational development. San Francisco''
Organizational development could be 'categorized as focusing on individuals and interpersonal relations. OD was established as a tool to support or and focus a long-term orientation, the behavioral science and change management from the top, a focus is on research and on creating change in support with managers'. RUONA, W.E.A and GIBSON, S.K. (2004) the making of twenty-first century HR: an analysis of the convergence of HRM, HRD and OD. Human Resource Management. Vol 43, No 1, spring. Pp49-66.
Therefore in the development of management techniques, OD stood on the characteristics of a fad and criticized for not achieving the desired outcomes. It was touchy-feeling and in occasionally to put the employee before the organization and the informal organization before the formal organization. Not in all, OD is well trained, and OD's emphasis on change was threatening by management.GREINER, L.E. and CUMMINGS, T.G. (2005) OD: wanted more alive than dead. In: BRADFORD, D.L. and BURKE, W.W. (eds) (2005) Reinventing organizational development. San Francisco: Pfeiffer
CHARACTERSITIC characteristics of OD help to look in to the commonality across the different section of OD and the link it with the HR.
OD also participate to the maintain health and life of any organization
OD focus upon diagnosis to use original information from organizational and behavioral sources
OD task is to plan its focus, that is taking the credit of organization
OD consultants also create bridge between different activities and projects inside the organization
OD also involves people's in the organization to maximize contribution
HRM AND INNOVATION AND FLEXIBILITY
"Innovation is the creation and development of a new product and idea with the purpose of better efficiency . Innovation may apply to products, services, manufacturing processes, or managerial processes. Innovation is attached with creativity, and involves taking new ideas and turning them into reality through invention, research, and new product development. The HRM is responsible for all these aspects of INNOVATION. http://resources.bnet.com/topic/innovation.html?tag=content;col1
"Flexibility" in business terminology means the ability to adapt an operating system to respond to changes in the environment. Increasingly seen as a source of competitive advantage in a rapidly changing market, it is an area of operations management in which HRM have to participate more than any other department Example in WIPRO tech '' Every four months we conduct an employee survey where all our employees provide inputs on the health of the workplace. This survey identify how strongly the person feels about the organization, and how strong is the person's clarity of his/her existence in the organization. It also give the person's self ability to identify the focus of the organization, and whether he thinks the organization listens to him or her. it also reveal that how he feels that his supervisor are interested interest in his/her development, has he/she received an praise from the boss for a job done. This proves to be an eye opener for the managers as well'' http://www.docstoc.com/docs/6611309/Innovative-HR-Practices
EFFECTS OF HRM ON INNOVATION AND FLEXIBILITY
The innovation and flexibility is the main instrument of HRM, and they are the main blocks in the age of globalization. To meet all the challenges of globalization HRM is needed in areas of organization, management, governance, and public administration all over. Viewing human resources as human capital and far away, without human resources nothing can be achieved, and without a well-trained, well-developed, well-appreciated, and well-managed human resources, modern organizations cannot stand in front of the challenges of the globalization, which demands a new future-orientation, which can develop effective, and manage organizations by battling the high waves of change in the business world and can manage the business affairs in that way that innovation and flexibility should be imposed prominently in the business environment. (http://ideas.repec.org/a/kap/porgrv/v4y2004i1p3-24.html)
There are five major factors that can create innovation and flexibility in business. And these are
this is a concept that cannot be ignored.Â It starts from the top. The assumption is that once the leadership is introduced, it will take care of itself.Â Nothing could be farther from the trust and leadership.Â In order to take best of employees, the innovation program requires constant care and feeding from the top of the organization.
one of the great innovations is that, some bright person gets an idea out of nowhere. It is a process that can be learned and become a specialized in it.Â Organizations have to understand this and develop the training programs to build innovation process skills as a core competency in the product research and development teams. Example in some organization like HSS and GSK those Employees who show capability, initiative and interest are appointed to work and lead in several cross-functional taskforces from time to time.
Another aspect of the innovation process, it can be influenced environmentally. Great innovations happen when the expert meets with the relevant knowledge and it thus able to produce something new.Â With this realization, the proper use of information technology to help place the innovation in business is easy to understand. Examples in HSS UK There are Annual Achievement Award under four categories:
Best Customer Orientation
Best Team Worker
Managers send nominations every year and a task force of senior managers picks the winners
Network for Innovation Mentoring HYPERLINK "http://www.innovatingtowin.com/innovating_to_win/2008/08/internal-networks-for-innovation.html"&HYPERLINK "http://www.innovatingtowin.com/innovating_to_win/2008/08/internal-networks-for-innovation.html" Facilitation
There are many aspects to innovation practices.Â There are many types of innovation problems.Â Different problems lead to more different solution.Â Some innovation rules are considered frequently.Â Other innovation procedures are considered occasionally.Â Each innovation worker has a specific role to play in the organizationÂ This means that innovation leaders must help knowledge workers to bridge the gap between personal innovation skill level and problem solving skill need. Example in Philips software center they have plenty of reward programs. they closely watch employee who is contributing towards product quality, process quality, internal trainers people who bring their best from outside and implement here They are rewarded and as you know rewards are inspiring and infectious
everybody wants to see the new changes in the enterprise are having a fruitful impact.Â Creator's want that their efforts are making a contribution to a goal. Stakeholders want the return on the investment in innovation.Â Â A marketing campaign will go a long way to the momentum in innovation and foster of innovation across the organization.