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PREFACE

For the deep inclination into the management concepts practical work is very important aspect.

Theoretical knowledge gives us the fundamental concepts of management and practical work

teaches us management tact and skills, which are successfully employed to capture todays

competitive market.

The main objective of Dissertation report is getting used to with the necessary theoretical inputs

and to gain sufficient practical exposure to establish distant linkage between the conceptual

knowledge to sharpening ones skill in the field of business and management and

administration.

In my research study I have collected HR related data from various organizations, for the year

2011-12.

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ACKNOWLEDGEMENT

I am grateful to Miss Shweta Chauhan, my Research guide, who provided me valuable

guidance for this project, without her guidance, this report might not have reached the present

stage.

Finally, I would like to thank other countless people, who helped me directly or indirectly, as

they have been generous with their time, support and encouragement.

Harshika Bhandari

MBA - III

U. I. T, Dehradun.

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STUDENT DECLARATION

This project report has been undertaken as a partial fulfillment of the requirement of the award of

the degree of the Master of Business Administration Uttarakhand Technical University,

Dehradun.

This project was executed during 4th Sem. of MBA program under the supervision of Miss

Shweta Chauhan.

Further I declare that this project is my original work and the analyses are for academic purpose

only. This project has not been present in any seminar or submitted elsewhere for the award of

any degree or diploma.

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CONTENTS PAGE NO.

Preface 1

Acknowledgement 2

Student Declaration 3

CHAPTER I

1.1Introduction 51.2Objective Of Study 8CHAPTER II

1.3Company profile 11CHAPTER III

1.4Details of work done1.5Research Methodology 18

I. Sample size 36II. Method of sampling 36

III. Area of work 36IV. Method of data collection 36V. Tools 36

VI. Data analysis and Interpretation 37VII. Limitations 51

VIII. Analysis of finding 52CHAPTER IV

1.6Suggestion 531.7Conclusion 541.8Bibliography 56

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1.1INTRODUCTIONThe amount of information available on how to manage organizations human resources grows

daily and is often confusing. For organisations Executive Directors and Board members, it is

important to know what is relevant, so that workplace is efficient and effective.

HRM is a set of toolsto help organize, plan, and implement activities in the organisation. Human

resources include paid staff, volunteer staff and members of the board. This guide will focus

primarily on paid staff, however, many of the practices that are effective for paid staff will also

support managing the staff. Employers are realizing that the success of an organization relies on

more than hiring qualified candidates. Effective human resource (HR) planning and management

is required at all stages of an employees corporate lifecycle to help ensure employee growth and

satisfaction. Employee satisfaction is vital to the success of an organization because of its directimpact on productivity. When employees are satisfied, they are more likely to produce high

quality work, optimize performance, and exercise more critical thought and creativity. Engaged

employees are invaluable assets since they are motivated to perform to the highest of their

abilities because of their dedication and voluntary commitment to the success of the

organization.

Best Practices in the field of HRM includes:

1. Safe, Healthy and Happy WorkplaceCreating a safe, healthy and happy workplace will ensure that employees feel homely and

stay with organization for a very long time. So capture their pulse through employee

surveys.

2. Open Book Management StyleSharing information about contracts, sales, new clients, management objectives, company

policies,employee personal data etc. ensures that the employees are as enthusiastic about

the business as the management. It involves making people an interested party to our

strategic decisions, thus aligning them to our business objectives. Be as open as can.

It helps in building trust & motivates employees. Employee self service portal, Manager

on-line etc. are the tools available today to the management to practice this style.

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3. Performance linked BonusesPaying out bonuses or having any kind of variable compensation plan can be both an

incentive and a disillusionment, based on how it is administered and communicated.

Bonus must be designed in such a way that people understand that there is no payout

unless the company hits a certain level of profitability. Additional criteria could be the

teams success and the individuals performance. Never pay out bonus without measuring

performance, unless it is a statutory obligation.

4. 360 Degree Performance Management Feedback SystemThis system, which solicits feedback from seniors (including the boss), peers and

subordinates has been increasingly embraced as the best of all available methods for

collecting performance feedback. Gone are the days of working hard to impress only one

person, now the opinions of all matter, especially if you are in a leadership role (at any

level). Every person in the team is responsible for giving relevant, positive and

constructive feedback. Such systems also help in identifying leaders for higher level

positions in the organization. Senior managers could use this feed back for self

development.

5. Fair Evaluation System for EmployeesDevelop an evaluation system that clearly links individual performance to corporate

business goals and priorities. Each employee should have well defined reporting

relationships. Self rating as a part of evaluation process empowers employees. Evaluation

becomes fairer if it is based on the records of periodic counseling & achievements of the

employee, tracked over the year. For higher objectivity, besides the immediate boss, each

employee should be screened by the next higher level (often called a Reviewer). Cross

functional feedback, if obtained by the immediate boss from another manager (for whom

this employee's work is also important), will add to the fairness of the system.

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6. Knowledge SharingAdopt a systematic approach to ensure that knowledge management supports strategy.

Store knowledge in databases to provide greater access to information posted either by

the company or the employees on the knowledge portals of the company.

When an employee returns after attending any competencies or skills development

program, sharing essential knowledge with others could be made mandatory.

Innovative ideas (implemented at the work place) are good to be posted on these

knowledge sharing platforms. However, what to store & how to maintain a Knowledge

base requires deep thinking to avoid clutter.

7. Highlight performersCreate profiles of top performers and make these visible though company intranet,

display boards etc. It will encourage others to put in their best, thereby creating a

competitive environment within the company. If a systems approach is followed to

shortlist high performers, you can surely avoid disgruntlements.

8. Open house discussions and feedback mechanismIdeas rule the world. Great organizations recognize, nurture and execute great ideas.

Employees are the biggest source of ideas. The only thing that can stop great ideas

flooding your organization is the lack of an appropriate mechanism to capture ideas.

Open house discussions, employee-management meets, suggestion boxes and ideas

capture tools such as Critical Incidents diaries are the building blocks that can help the

Managers to identify & develop talent.

9. Reward CeremoniesMerely recognizing talent does not work, you need to couple it with ceremonies where

recognition is broadcast. Looking at the Dollar Check is often less significant than

listening to the thunderous applause by colleagues in a public forum.

10.Delight Employees with the UnexpectedThe last but not least way is to occasionally delight your employees with unexpected

things that may come in the form of a reward, a gift or a well-done certificate. Reward

not only the top performers but also a few others who are in need of motivation to exhibit

their potential.

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1.2OBJECTIVES OF THE STUDYThe purpose of the discussion is to outline what is seen within the human resource

management literature as best practice, ultimately how it works, and what the practice

entails, and how it is justified as being a best practice. Following an in depth discussion

pertaining to five best practices, I will try to establish, which, if any of the fifteen best

practices of HRM outlined, are linked to one another. It is argued by Johnson (2000) that

complementary best practices compound to further increase the performance of the firm, or

create an additive effect.

The various objectives are as follows:

I. To improve the performance of the organisation

i. Business Strategy

ii. Learning and development strategy

iii. People management strategy

iv. Leadership and management strategy

v. Management effectiveness

vi. Recognition and reward

vii. Involvement and empowerment

viii. Learning and development

ix. Performance measurement

x. Continuous improvement

II. To Recruitment practices that result in the selection of excellent staff

i. Accurate advertisements, job/role descriptions and person specifications and context

information

ii.

Appropriate selection tools and mechanismsiii. Timely hiring

iv. Well planned induction

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III. To give Viable and attractive benefits and compensation packages

i. Equitability of treatment/Relativities between individuals and work groups

ii. Appropriate for the market

IV. To Employee performance management

i. Individual staff objectives linked to business plans

ii. Regular feedback as well as formal appraisal

iii. Up-to-date job descriptions/roles

V. To Workforce continuity and Succession planning

i.

Monitoring of absence and resignation dataii. Monitoring age profiles

iii. Appropriate maternity and paternity leave provisions

iv. Identification of single person/critical dependencies

v. Knowledge sharing systems

vi. Exit interviews and management of knowledge handover

VI. To Conformance with legal obligations

i. Discrimination

ii. Diversity

iii. Privacy

iv. Health and Safety

v. Freedom of Information

vi. Equal Opportunity

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VII. To create positive workplace culture

i. Value defined and driven

ii. Change orientated, flexible culture

iii. Effective communication

iv. Plans, policies, guidelines available to all staff

v. Positive encouragement/support for Innovation and continuous quality improvement

vi. Recognition and reward systems

vii. Engagement with work groups and union representatives

viii. Management of major change procedures

ix. Monitoring staff satisfaction

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1.3COMPANY PROFILENOKIA

Nokia is a Finnish multinational communication corporation headquartered in Espoo, Finland. It is a public limited

liability company listed on the Helsinki, Frankfurt, and New York stock exchanges.. The company is named after the

Nokia River in southern Finland, next to which the original Nokia pulp mill was located.

At the end of 2010, Nokia operated a total of 16 manufacturing facilities in Brazil, China, Finland, Germany, Hungary,

India, Mexico, the Republic of Korea and the United Kingdom. Nokiasmission is simple; Connecting People. Strategic intent is to build

great mobile products. Job is to enable billions of people everywhere to get more of life opportunities through mobile.

The Nokiabrand valued at $ 25 billion, is listed as the 14th most valuable global brand in the Interbrand/

Businessweek Best Global Brands list of 2011. On 11 Feb 2011 Nokia announced a partnership with Microsoft;all Nokia Smartphones introduced since then were to run under Microsofts window phone (WP) operating

system.

HISTORY

In 1865, mining engineer Fredrik Idestam sets up his first wood pulp mill at the TammerkoskiRapids in south-western Finland. A few years later he opens a second mill on the banks of theNokianvirta river, which inspires him to name his company Nokia Ab in 1871.

How apt that Nokia begins by making paper one of the most influential communications

technologies in history.

In 1898, Eduard Poln founds Finnish Rubber Works, which later becomes Nokias rubberbusiness, making everything from galoshes to tyres.

Nokia rubber boots become a bona fide design classic, still on sale to this day though we nolonger make them.

Electronics go boom

In 1912, Arvid Wickstrm sets up Finnish Cable Works, the foundation of Nokias cable and

electronics business.By the 1960s, Finnish Cable Works already working closely with NokiaAb and Finnish Rubber Works starts branching out into electronics. In 1962, it makes its firstelectronic device in-house: a pulse analyser for use in nuclear power plants.

In 1963, it starts developing radio telephones for the army and emergency services Nokiasfirst foray into telecommunications. In time, the companys MikroMikko becomes the best

known computer brand in Finland. And by 1987, Nokia is the third largest TV manufacturer inEurope.

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Three become one

Having been jointly owned since 1922, Nokia Ab, Finnish Cable Works and Finnish RubberWorks officially merge in 1967. The new Nokia Corporation has five businesses: rubber, cable,forestry, electronics and power generation. But as the 1980s come into view, its an entirely new

industry that makes Nokia a household name around the world.

STRUCTURE

Smart devices

Nokias Smart Devices team focuses on the creation of smartphones. We are continuing todeliver on our commitments to Symbian with new models and software updates; we havelaunched the Nokia N9, the outcome of efforts from our MeeGo program; and we are planning tofurther strengthen our smartphones portfolio with the launch of our first products on theWindows Phone platform.

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Mobile Phones

Our Mobile Phones teams focus is on bringing a modern and affordable mobile experience to

people around the world. In particular, the team leverages its innovation and strength in growthmarkets to bring people affordable access to the internet and applications and in many cases

provide them with their first ever internet experience.

Location & Commerce

Our Location & Commerce team is developing a new class of integrated social location productsand services for consumers, as well as platform services and local commerce services for devicemanufacturers, application developers, internet services providers, merchants, and advertisers.The team is behind Nokia Maps, which gives people access to world-class mapping andnavigation. Its also responsible for the development of NAVTEQ, the leading provider ofcomprehensive digital map information and related location-based content and services formobile navigation devices, automotive navigation systems, internet-based mapping applications,

and government and business solutions.

Markets

The Markets team is responsible for selling our products, executing winning marketing andcommuncations, creating a competitive local ecosystem, sourcing, customer care, manufacturing,IT and logistics across all Nokia products.

Nokia Siemens Networks

Nokia Siemens Networks, jointly owned by Nokia and Siemens, is one of the leading providersof telecommunications infrastructure hardware, software and professional services globally.

Nokia Head OfficeNokia Corporation

Visiting address:Keilalahdentie 2-4,FI-02150 Espoo

Post address:P.O. Box 226,FI-00045 Nokia Group Finland

Tel. +358 (0) 7180 08000Business ID: 0112038-9Place of registration: Helsinki, Finland

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PEOPLE & CULTURE

Lets agree to disagree

At the last count, the Nokia Group employed approximately 139,000 people around the world:not bad for a company that started life as a small riverside paper mill in Finland.

In 2010, the devices and services business alone employed approximately 60,000 people from

around 115 different nationalities. And approximately 41% of them were women.

Such diversity is crucial to our success so farand to our continued success in the future. Were

operating in more markets than ever before, and employees from diverse backgrounds can give

us invaluable insights into our customer bases. Just as important, a mix of cultures, genders, age

groups, beliefs, interests and opinions in the workplace helps foster debate, discussion, ideas and

innovation. Not to mention making Nokia a more enjoyable, stimulating and rewarding place tospend your working day.

Doing things the Nokia Way

Commitment to diversity is just part of what we call the Nokia Waythe core values and shared

philosophy that make our company tick. Creativity, empowerment, openness, collaboration, and

consideration for people and the environment these are all integral to the way we do business.

But above all, its about being human in everything we dorespecting and caring, even in tough

business situations.

You can learn more about our values in the People & planet section of the site.

Visit People & planet

Nokia people

Meet some of the people who make Nokia Nokia.

http://www.nokia.com/global/about-nokia/people-and-planet/http://www.nokia.com/global/about-nokia/people-and-planet/

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PRODUCTION FACILITIES

Nokia has production facilities located all over the world and were working to make each one as

sustainable as possible. In part, this means minimising any negative environmental and socialimpact the facility may have - for example, by reducing its energy consumption or ensuringmaterials are ethically sourced.

1. BrazilManaus

Established:1998

Agreat place to work Chosen as one of the best places to work in Brazil in 2009 by Exame-VoceS/A guide, Nokia Manaus also established the Nokia Foundation. This wholly funded technicalhigh school with 450 students is Nokias largest corporate responsibility investment globally.

2. China - Beijing

Established: 1995

Leaner, greener operations responsible for smartphone and feature-rich phone production, ourBeijing facility shows how good design can enhance sustainability. In 2000, we moved into thepurpose-built XingWang industrial park, which clusters Nokia with several key suppliers. Thishelps reduce transportation costs, and offers significant savings on energy and emissions.

3. China - Dongguan

Established: 1995

Quality and quantity: Its Dongguan facility produces almost a third of Nokias entire mobilephone output yet theres no compromise on quality. In fact, Dongguan is a five -time winner ofthe Nokia Global Quality Award - a credit to everyone who works there.

To help maintain these high standards, Dongguan provides internships to graduate students eachyear in collaboration with the local university.

6. India - Chennai

Established: 2006

The winner is not only is Nokia Chennai one of our biggest facilities, its also big onsustainability. In 2010 it received the Golden Peacock Award for its high standards ofenvironment management. And its highly active in the community with projects ranging from a

local library programme to village regeneration projects.

.

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NOKIA HR PRACTICES

Nokia s people policies have played a key role in helping thecompany to reach its 40 percent share of the global

handsetmarket and industry-leading profit margins of 20 to 25 percent, ata time of technological change and

intense competition fromAsian manufacturers.

Personnel by market are:

Nokias HR best practices are as follows: Talent & commitment of all employees

Men and women of different cultural or ethnic backgrounds, skills andabilities, lifestyles,

generations and perspectives.

Excellent opportunities for career development

Committement to the highest standards of ethical conduct

Believes in diversity and inclusion in the workplace brings competitiveadvantage

Helped to build the diverse and robust community that is Nokia today.(115 nationalities)

Within workplace profile, the proportion of women is around 41percent of all employees,

with 13.8 percent holding senior managementpositions.

Moreover, half of the senior managers at Nokia are non-Finnish. (eitherHCNs or TCNs).

41

22

1611

6

49

Sales

europe

asia pacific

greater china

latin america

north america

middle east & africa

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Identity management federation best practices

You don't work in a vacuum and your systems shouldn't either. In order to be successful in

today's marketplace, financial companies have been forced to rethink their business operating

model. For traditional "brick and mortar" financial firms, realizing that having all personnel,

systems and services for managing their information confined within the walls of the company is

an outdated strategy has been game changing. In order to maintain efficient, cost-effective

business operations, they've been forced to look to third-party partners to perform those

commoditized functions that no longer add value -- for example, benefits management, HR, IT

help desks, travel services, underwriting and stock valuation.

While business leaders easily see the value of these relationships -- letting experts do the work

at a lower cost -- the actual execution has been difficult. Regulations like.

Nokia might've taken a risk in naming Stephen Elop as the new CEO but sometimes you need to

look for the right talent if you don't have a specialist in-house already. Elop has no experience in

the telecommunication industry but he's a solid software guy. He's shown leadership skills,

leading major brands from Juniper Networks to Microsoft -- he launched Office 2010, and made

age old Microsoft mobile friendly. Nokia isn't really in trouble, but they have to act fast because

Apple, Inc. is gaining a lot of traction in countries like India. Combined with that, Blackberry has

recently expanded its brand presence so much so that even "cool" teenagers are using it.

Kevin C. Tofel of Gigaom speculated that Nokia is gearing up to be a software and services

company rather than just being a handset maker. If that is the case, then the board at Nokia

certainly thought of their business goals and objectives first before going out to hunt for talent.

The same can be applied to your middle management hires.

http://gigaom.com/2010/07/07/nows-the-time-for-nokia-to-dump-meego-for-android/http://gigaom.com/2010/07/07/nows-the-time-for-nokia-to-dump-meego-for-android/

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These are as follws.;

1) Flesh out your business goals: Don't just recruit because you need to fill in a seat.

Recruit to meet your business goals. "Nokia has a communication problem," told John Strand,

the head of Strand Consult, a telecommunications consultancy firm to the Guardian. "There is no

doubt that Stephen Elop is a better communicator than Kallasvuo." Hire someone who can DO

the job that you need to get done.

2) Search for talent high and low: Searching for the right talent is not good enough with

just posting job descriptions. You actually need to go out there and look. You can bump into the

right talent at a meeting, a conference, or an informal networking event. Ive heard of many sales

people who can convince a manager or business owner, and then getting job offers on the spot.You never know when your super star talent is going to show up, so keep your ears and eyes

open.

3) Recruit on the basis of the skill set: Folks with a particular skill set can function and

adapt to any industry. "Digital strategists" for example, are relatively a new job post for the Web

2.0 world. You won't get a lot of digital strategists looking for a job, but you will get a lot of

talent that has experience with one form of online marketing or another. You need to look for

those with relevant experience. Make sure your job postings are welcoming enough so people

from cross industry with the skill set you're looking for can apply.

Nokia rethinks HR with web portal

Mobile phone manufacturer, Nokia has reduced its HR costs by between 20% to 30% after

rolling out a web-based HR portal to its 60,000 employees.

The portal, part of a major re-think of the way Nokia manages its HR, has given the company a

clear view of the capabilities of its worldwide workforce for the first time.

Its development comes at a critical time for Nokia, as it battles with cost-cutting, restructuring

and a strategic gamble to jettison its own smartphone operating systems in favour of Microsoft

technology.

http://www.computerweekly.com/news/1280095127/Nokia-Microsoft-unite-to-fight-Apple-Googlehttp://www.computerweekly.com/news/1280095127/Nokia-Microsoft-unite-to-fight-Apple-Googlehttp://www.computerweekly.com/news/1280095127/Nokia-Microsoft-unite-to-fight-Apple-Googlehttp://www.computerweekly.com/news/1280095127/Nokia-Microsoft-unite-to-fight-Apple-Google

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The magnitude of the challenge facing Nokia was revealed to staff in a leaked internal memo in

February. Nokias CEO, Stephen Elop, compared the company to a man standing on a burning

oil platform, who might just survive if he jumped in time. Nokia needed to find billions in

savings fast, he warned.

Single HR system covering 60,000 employees

In human resources, at least, Nokia had a lot of the pieces in place to make the restructuring

possible, says Andrew Winnemore, director of global HR services.

Unlike most multinationals, which have a multitude of HR systems to contend with, Nokia had a

single SAP HR system in place. It had a single set of HR data, covering its 60,000 employees in

73 countries.

The bad news was that Nokias SAP system was heavily customised, which made it expensive to

maintain and upgrade, says Winnemore.

Nokia opted to roll out a portal that would give employees and managers the ability to access and

update their own HR data.

The portal aims to free Nokias HR managers from the burden of administration to focus on

more strategic areas of the business.

Once it is fully rolled out, Nokia predicts HR staff will be able to reduce the proportion of the

time they spend on administrative tasks from 60% to 20%; and double the time they spend

supporting the business.

http://www.computerweekly.com/blogs/inspect-a-gadget/2011/02/nokia-ceo-finally-admits-theyre-on-a-burning-platform---amazing-to-read.htmlhttp://www.computerweekly.com/blogs/inspect-a-gadget/2011/02/nokia-ceo-finally-admits-theyre-on-a-burning-platform---amazing-to-read.htmlhttp://www.computerweekly.com/blogs/inspect-a-gadget/2011/02/nokia-ceo-finally-admits-theyre-on-a-burning-platform---amazing-to-read.htmlhttp://www.computerweekly.com/blogs/inspect-a-gadget/2011/02/nokia-ceo-finally-admits-theyre-on-a-burning-platform---amazing-to-read.html

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Immature technology

Nokia made its first attempt to introduce a company-wide HR portal in 2004. But the project ran

into difficulties.

The technology was immature, with few off-the-shelf solutions available, says Winnemore.

Secondly, reaching a consensus about how to manage HR processes in the organisation proved

unexpectedly difficult.

The project team felt they had an agreement on how the workflow should go, but we realised

there had to be a deeper sign-off and commitment, said Winnemore.

For example, there was the question of who should approve the appointment of new members of

staff, he says. Should it go to the manager, the managers manager, the trade union or the HR

department?

Clarity in process

Unless you get clarity behind that, you end up having workflows and approval flows which are

very difficult to customise, build and maintain.

Nokia took these lessons on board when revisited the project in 2008. The project team took time

to study and understand the day-to-day tasks and problems facing HR.

It became clear that Nokias HR data was not as consistent as it should be. HR managers in each

country were entering data into the SAP system in different ways.

We found that moving people from one country to another country was just an horrific

nightmare. he said.

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Identity management federation best practices

You don't work in a vacuum and your systems shouldn't either. In order to be successful in

today's marketplace, financial companies have been forced to rethink their business operating

model. For traditional "brick and mortar" financial firms, realizing that having all personnel,

systems and services for managing their information confined within the walls of the company is

an outdated strategy has been game changing. In order to maintain efficient, cost-effective

business operations, they've been forced to look to third-party partners to perform those

commoditized functions that no longer add value -- for example, benefits management, HR, IT

help desks, travel services, underwriting and stock valuation.

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1.4DETAILS OF WORK DONEIn my research study I have collected HR best practices related data from various organizations,

for the year 2011-12.

Definition of Human Resource Management Best Practice

Unfortunately there has been no authoritative definition of best practice that has been agreed

upon by academics or practitioners. This leads to a lack of conceptual clarity of the HRM best

practice definition. However there have been several definitions that have emerged that

encompass many of the underlying factors of HRM best practice, allowing us to gain

understanding of the topic.

Johnson (2000) details, best practice or high performance work practices are described as HR

methods and systems that have universal, additive, and positive effects on organisationalperformance

This definition relates to the fact that the more best practices that the organization employs, each

will add to the previous, thus compounding the resulting performance of the organisation. As I

will discuss later each of these best practices must complement each other, as if this is not the

case the other will ultimately negate any advantage that could possibly result from its inception.

The main area that needs discussion relates to the purpose and benefits of the best practices that

can be implemented within an organisation.

Delaney and Huselid (1996) outline that, HRM best practices are designed to enhance the overall

performance of employees within the organisation, ultimately resulting in increased

organisational performance. Delaney and Huselid (1996) continue by stating that commitment

plays a major role within HRM best practice.

Commitment shown by the employer with regard to areas such as training and development for

example, is consequently reciprocated by the employee, with this increased commitment toward

the organisation, performance increases as employees are more skilled and committed to the

profession, resulting in a win win situation for both parties.

In simple terms, each best practice technique is aimed at developing the employee, increasing

their commitment, with the resulting intention to improve the organizational performance, and

ultimately create a sustainable competitive advantage.

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All of this stems from the nurturing of the human resources of the organisation, through the best

practices that will be discussed within this review. Ultimately these measures are taken by an

organisation as employees are viewed as extremely valuable resources, which undoubtedly have

the ability to provide the organisation with a competitive edge.

Coupled with this is the additive effects of implementation of numerous complementing best

practices that enable the organisation to create a significant competitive advantage through the

human resources held within the organisation.

Fifteen Best Practices of Human Resource Management

What follows is a brief discussion of fifteen best practice techniques that have been outlined by

prominent authors on the subject of HRM best practice. The first authors to be reviewed in this

review are Pfeffer and Veiga (1999) who offer seven of the fifteen best practices that are to be

discussed.

i. The first best practice is that of employee security and/or employment. This area relates

to formal policies and procedures employed by the organisation such as, formal contracts,

non-redundancy clauses, equal employment opportunities, and general measures set

within the organisation that offer some degree of security to the core workforce of the

organisation. The term core worker is important here as Purcell (1999) believes that

employee security ends with the core workforce as no measures are put in place to protect

temporary staff or sub-contractors for example.

ii. Selective hiring is another area that has been stressed by many HRM best practice

authors, including Pfeffer and Veiga (1999), MacDuffie (1995) and Pfeffer (1995). The

aim of selective hiring is to obtain the most suitable candidate for the vacant position.

Areas of concern relate to internal or external hiring, which selection criteria and

channels are used, interview strategies, and other methods designed to recruit the most

suitable candidate for the position.

iii. Effective use of teams has been stressed as an integral part of todays organisations.

These are not only accountable and responsible for their organisational area; it also

enables a shift from a centralised control function, to a peer based control system (Pfeffer

& Veiga, 1999).

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iv. Effective compensation strategies have been highlighted as a method that creates high

commitment. This is created through compensating the employee in line with their

superior performance, either through financial or non-financial means.

v. This area is inextricably linked to the area of performance appraisal as, if the

performance level is not known, the rewards are unjustified. Performance measurement

can be at an organisation, team or individual level, and is a sound way to gauge the

performance of both the employees and organisation as a whole (Delery & Doty, 1996).

vi. One of the most credible methods for improving and developing not only the employee

but also the organisation is through the provision of, as well as the use of, training and

development opportunities. These can apply to work specific practices, thus improving

the performance of the firm or simply to the development of the employee in non work

related areas. The rationale behind this is that the employer has shown commitment to the

employee through the training and development programme, therefore this commitment

is reciprocated by the employee, with the end result being improved organisational

performance (Pfeffer, 1995).

vii. The reduction of status differences is a method used to create a flatter organisational

structure, thus increasing overall flow within the organisation. Each operational level

consequently gains responsibility and accountability, with the objective of increasing

commitment toward the organisation from employees. This incorporated with flexible job

descriptions, increases the development of the employee to take on new skills within

different areas, and ultimately minimises the potential for monotony of well defined

repetitive job areas.

viii. The reduction of status differences can also greatly enhance information sharing and

communication. The flatter organizational structure means that overall it is easier to

communicate across the organisation as well as between levels. Communication is

essential within any organisation as, if all organisational employees know what the others

are doing, and the overall corporate strategy, then the attainment of goals will be much

more feasible.

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ix. Grievance procedures are considered a key area in order to enhance and create

commitment within the employee base of the firm. These are a formal set of procedures

that are used to ensure all matters are dealt with fairly, equally and by the book, i.e.

staff can be assured that a reliable process is available to resolve issues.

x. promotional criteria is an essential method for creating trust and commitment from the

workforce, and states that there must be justification for the promotion, as in seniority vs.

merit, as well as opportunities of internal promotion as well as external.

xi. Employee ownership has been seen as a method that allows employees to obtain shares of

the organisation, with the intention that if the employee owns part of the organization

they will endeavour to ensure that it succeeds.

xii. The empowerment of employees within the organisation is a key practice that enables

employees to be accountable and responsible for their work, thus increasing the

commitment toward the organisation.

xiii. Employee suggestions are closely related to communication, however further emphasise

the necessity of an upward communication flow. MacDuffie (1995) points out that

employees are dealing with operational processes and customers constantly and therefore

should have better understanding than management. For this reason it is essential that

their voices are heard and steps can be taken to improve the organisation as a whole,

which is achieved through formal process strategies to ensure this outcome is possible.

xiv. An important best practice is job rotation, as increased flexibility of job positions not

only aids in the development of the employee but also helps with the overall operation of

the organisation.

xv. The final best practice that will be discussed is that of career ladders and possibilities of

progression for employees. Wood (1995) details this as essential, as it motivates the

employee to perform within the organisation, and if this progression was lacking the

incentive to perform may not be there. This incentive drives employees to perform within

the organisation as it allows employees to be rewarded for their efforts within the

organisation, through career progression, remuneration and increased responsibilities.

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In the race to reinvent government and to develop a new public management, government

leaders, both elected and administrative, have excitedly drawn on the popular strategies of the

private sector to guide change. The business modelcomplete with an emphasis on the old-

time values of economy and efficiencyhas swept across industrialized countries in what is

perhaps the most profound redefinition of public administration since the field first emerged

as an identifiable specialty. The purpose of this paper is to examine the context out of which

these reforms have grown, the challenges that have arisen as a result, and cases where private

sector reform strategies have been successfully (and sometimes unsuccessfully) applied in

human resource management (HRM).

A subplot in our discussion is the recurrence of a mistake that has been made frequently in the

history of public management reform: private sector solutions are slathered over public sector

wounds as if they are a magic salve. Too often, the fundamental differences between the public

and private sectors are minimized or ignored. Especially insofar as civil service systems are

concerned the favored strategies tend to emphasize downsizing and, as Margaret Thatcher

phrased it, the de-privileging of the civil service (Hood, 1991). Assaults on public personnel

systems strike us as particularly counterproductive at a time when most of societys problems

transcend jurisdictional borders. Our primary argument is that the major thrusts of reinvention

and NPMdecentralization, decreased reliance on government, privatization, and

managerialismswim upstream from what the demands of globalization would otherwise

suggest. Using this premise as an underlying theme, we examine some successes of HRM best

practices in an international context.

In essence, we make an effort to identify those best practices that offer promise in the struggle of

public bureaucracies to overcome the challenges that threaten to overwhelm them. Admittedly,

this essay focuses more on technical fixes (Ingraham, 1996: 248) than on the broad structural

changes that characterize public management systems in most industrialized nations. Devolution,

de-concentration of authority, and the overall dismantling of many civil service systems are

fairly pervasive phenomena thatat least for the foreseeable futurewill dictate the rules of the

game in public bureaucracies. Our focus is not really to offer a critique of these trends, since that

particular die has already been cast.

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Instead, our goal is merely to chronicle some of the HRM best practices that might help civil

service systems respond to the dual demands posed by globalization and new public

management. a consideration of factors that have forced change in the private sector and,

consequently, have brought about new means by which the public evaluates government. We

argue that globalization and administrative reform spring from a remote yet common gene pool.

They share many parents, althoughas is discussed belowthe exact lineage of administrative

reform is difficult to fix with certainty in any particular governmental jurisdiction. One

overriding aspect of the interplay between managerial reform and globalization is that the two

trends have almost merged in many locations. That is, the basic reform themes of NPM have

become internationalized. As Aucoin opined in 1990, the internationalization of public

management parallels the internationalization of public and private economies (1990: 134).

An interesting consequence of this convergence is that management thought tends to flow across

jurisdictional boundaries as easily as goods and services. Indeed, it might even be argued that the

flow of reform ideas occurs much more quickly than commercial trade. The existence of

international consulting firms, the dominance of a few world-wide accounting and auditing

entities, and the interconnectedness of the professional and academic communities all contribute

to the fluidity of ideas across borders. Obviously, the personnel function varies wildly across the

political landscape.

A few gross generalities are hereby offered, somewhat reluctantly due to the diversity of

international jurisdictions and the lingering effects of colonialism and other forces that have

created unexpected exceptions. By way of example, wetend to expect African and Latin

American nations to contain poorly articulated and traditionalistic personnel systems. Yet, some

countries on the African and South American continents possess civil service systems that have

provided long-term stability during extended periods of economic and political turmoil.

The personnel systems of such nations as Chile, Brazil, Liberia and Nigeria are not exactly

paragons of administrative excellence, but they have provided a stable institutional infrastructure

in otherwise fluid political settings (McLennan, 1980). In many instances of this type, the civil

service might actually serve as an impediment to development and competition in the global

marketplace simply because it is the strongest (and perhaps the most self-interested)

governmental institution in the country.

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A roughly similar situation can be said to exist in Eastern Europe, where entrenched

bureaucracies left over from the Communist era sometimes operate according to the old rules

that is, the civil service makes almost no distinction between policy-making and policy

implementation (Hojnacki, 1996: 146147). Obviously, reforms that are attractive to Western

European or American personnel managers would not be universally relevant in most of these

less conventional settings.

With such exceptions duly registered, the overall story of HRM internationally can be quickly

summarized. The more advanced countries usually treat the personnel function as a complex

enterprise in which highly trained practitioners engage in an array of technical activities intended

to recruit, train, and retain civil servants. For the most part, legal (constitutional) guidelines

channel the activities of personnel professionals as they strive to achieve multiple goal sets

through the operation of the civil service system. In addition to the modern HRM values of

merit and/or competence (however defined), democratic nations emphasize such

objectives as social equity and representation. As one descends the development ladder, the

amount of specialization among personnel practitioners declines, as does their concern for a pre-

established set of rules and procedures.

In staffing, the importance of aligning individuals to the values of the company is highlighted by

the practice of values-based interviewing where specific attention is paid to identifying

whether the individuals attitudes will match the values of the organization. In some companies,

scanning for talent occurs even in the absence of a specific vacancy. Talent inventories are used

for both selection and succession purposes, and the continuous process of developing a talent

pool - recruiting the best people and assigning them roles rather than hiring specific individuals

for specific positions - are best practice. Sophisticated employee on-boarding practices with on

line provision and buddy systems in place in a number of firms to welcome and induct new

members and active feedback sessions are provided to understand where the new employee is in

terms of their familiarity and development within the organization. Employee referrals (the

practice of existing staff recommending individuals to the organisation) have become a common

approach, reducing cost of recruitment and also helping to ensure cultural fit.

In performance management, participative goal setting, with both work and development goals,

based generally around balanced scorecard initiatives, provide a direct link to strategic

objectives.

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Multiple inputs at the appraisal, with most 360 approaches now managed on-line are common

for at least mid-level managers and above, and with bi-annual formal reviews and constant

informal feedback, often on a daily basis, to ensure projects/workload is on track and to ensure

adequate resources are being given where appropriate.

Developmental focus in the appraisal is a given. The developmental and pay reviews are split in

all cases, and the line of sight to rewards is clear in most firms through the use of

performance/potential matrices. Forced ranking is in evidence in a number of companies, though

was by no means the norm whereas calibration of performance outcomes by central HR and

senior management ensuring a fair distribution is seen across most of the sample companies.

Rewards in nearly all cases were managed with both group and individual elements in pay

determination. The move to greater variable pay as a percentage of total compensation is in

evidence across companies in all geographies. In some companies, vestiges of tenure-based pay

remained but this was rare. For managerial staff, companies have pay for performance and

flexible benefits and in some cases, employee equity ownership schemes, though in some cases

ESOPs have been discontinued as not generating sufficient motivation. For senior managers,

long-term incentive programs are in place across all companies. For collective bargaining

purposes, pay forums and trade union negotiation for annual pay rounds remain a major part of

the reward and employee relations landscape.

Care is taken to balance social and economic rewards; an emphasis on adherence to cultural

norms with recognition events, leadership visibility and symbolic ceremonies are highlighted.

Annual excellence awards and recognition schemes in general are the norm. In development, the

prevalence of coaching initiatives is evident, aligned typically to transformational leadership

initiatives aimed at instilling leadership qualities throughout the firm. For high potentials, the

provision of strategic projects of a shortterm nature, often international in scope, to assess

potential, are common. A major issue is to get the companys `bench-strength up to acceptable

levels, and for most key roles, to have at least one individual who could step into the shoes of the

incumbent should the need arise.

The presence of academies (at country and at group level) and corporate universities is prevalent,

to co-ordinate learning and development. Self-managed learning through on-line provision of

content is also common.

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A number of organizations also spread their reach towards linkages with academia in terms of

industry partnerships for innovation and for developmental experiences, such as international

specialist programs for high potential individuals.

The similarity of approaches to the organization of HR and HR practices across our companies

indicates the similarity of the challenges and demands on international business which prompt a

similar response in HR design and delivery. Also, the presence of a small number of excellent

companies has generated imitative behaviour, while the work of high profile consultancies has

spread ideas and common approaches to such issues as performance management, HR function

design and organization structure.

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Five areas of best practice

What follows is an in-depth look at five prominent HRM best practices selected from the above

fifteen, with the aim to show how they are operationalised within an organisation. Ultimately the

objective is to show how they can be justified as a best practice, as per the definition of best

practice outlined earlier. The areas that will be covered are training and development, teams,

employee selection, performance appraisal and communication. It should be noted that these

areas are equally important and thus the order of discussion does not represent their relative

importance.

Training and Development

The aim of training and development within an organisation is to provide staff with the necessary

skills and knowledge to fulfil the organisations corporate and business plan. This however, is

not simply related to specific training for a work practice, as training of any type is essential as it

creates a learning ethos. In many instances training and development is seen as a frill, rather than

a necessity, even though it has been proven that training can provide a competitive advantage to

those firms who have the wisdom to use it. Within an organisation that operates training and

development as a best practice, this should occur at organisational, operational, and personal

level. Training should not simply occur with specific reference to an operational task. The

development of employees in multiple ways is a method for instilling commitment, as

reciprocation of this commitment can be seen through the employees improved performance.

However in many instances this is easier said than done. The enactment of effective training and

development within an organisation is essential. Overall, these were used to promote

organisational understanding, improve staff communication and self understanding, and enhance

self esteem. These were used in conjunction with regular meetings which enhanced

communication and reduced conflict within the organisation. The philosophy from the

organisation was that only the best could be delivered by the employee if they feel good about

themselves and what they are doing, and who are motivated intrinsically by their own

competence and sense of personal mission (Enz& Siguaw, 2000).

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A similar training and development programme outlined in Enz and Siguaw (2000) was

established at another researched hospitality facility, where development staff strived to not only

educate about the organisation, but to understand the values held by the employee, to better assist

in their own personal development. Each of these examples show that best practice training and

development has been seen as essential within the organisation, and not only emphasises

organisational related issues, but specifically targets personal development of the employee as

well. In both situations the organisation understood that an intrinsically motivated employee is

able to perform better within the workplace.

Team

The conceptualisation of a physical team and/or teamwork within an organizational environment

has proved more difficult than first thought by early management writers. Little was known as to

how the dynamics of the team would affect the resulting performance, which, in many instances

was significantly less than if the employees were to work on an individual basis. One example

provided within a study conducted by Goleman, Boyatzis and McKee (2002) established that the

dynamics of the team were so conflicting that, on the rare occasion the team were able to make a

decision, other members of the team endeavoured to sabotage the outcome.

This is one extreme example of how a team isnt meant to function. Conversely, effective teams

within an organisation should be totally self aware, and should be self managed, not only beaccountable for organisational tasks, but be self regulating to ensure the team performs as one at

all times. One of the most comprehensive definitions of a self managed team comes from

Wellins, Byham and Wilson (1991), where it is defined as a group of employees who have the

following responsibilities:

Manage themselves e.g. plan monitor and manage their staff.

Assign specific jobs to team members; decide on who works on what, where and when.

Plan and schedule their own work, as in goal setting, timelines, budgets, location etc.

Responsible for making service and/or production decisions, making them responsible for

quality, inventory, stoppages etc.

Are able to take action to remedy specific problems without having to gain management

approval, with specific reference to production and service related issues.

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These five areas specifically represent the best practice operationalisation of teams within an

organisation and as Manz (1992) says, it can be referred to on a continuum. At the low end,

teams are represented as having little power, no real responsibility, and not working as a

coherent unit. At the other end, we can see many of the features outlined above, which

specifically represent the best practice of team training, implementation, development and

operation, specifically in line with organisational goals for example. The final addition that needs

to be mentioned with regard to teams and best practice is the notion of interdependence (David,

Pearce, & Randolph, 1989), where a team becomes a team where each member is dependant on

one another to ensure that he task is accomplished to its absolute fullest potential.

Employee Selection

The area of employee selection will now be explored, detailing the benefits that approaching this

function as a best practice has to the organisation. OLeary, Lou Lindholm, Whitford, and

Freeman (2002) state that the most successful organizations of the future will attract, engage,

retain and develop the best and brightest employees. However, as with many of the best practices

that have been discussed before, the successful application of this in practice is often

significantly more complex than it sounds. The key question is what does employee selection, as

a best practice, entail? It should first be noted that larger organisations are more likely to engage

in best practice selection, due to the associated costs of selection as a best practice, oftenmeaning the smaller firm is unable to meet the required costs of meeting the best practice

selection requirements (Johnson, 2000). It is interesting to note however, that even though there

are significant costs associated with recruiting and selecting the most appropriate employee for

the job, long term, the costs that could be saved due to making optimal appointments are

significant, and could thus outweigh any initial costs associated with finding an appropriate

employee.

There are many factors that must be considered when selecting an employee for any available

position. From the outset, the objective is to find the most appropriate employee to fill the

position, who will in turn produce the most productive output for the organisation.

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The question must be asked as to whether the selection comes from within the organisation or

external to the organisation. Internal selection or promotion in itself is a best practice of HRM,

and so therefore only external selection will be focused upon to minimise any confusion, and

specifically target the issues and factors surrounding the area of selection from an external

source.

The recruitment channels that are selected to locate the employee often have significant bearing

on the caliber of the employee. Decisions must be made as to whether an agency is used, or

whether methods including, newspaper advertisements, professional magazine advertising,

internet recruitment, or headhunting locally, nationally or internationally are utilised for

example. This decision will impact on the resulting appointment and therefore must carefully be

considered in order to ensure the most appropriate appointee is selected. When identifying

possible employees, the specific skills and requirements that are advertised will significantly

impact on who applies for the position, and if done correctly can eliminate many of those

applicants who arent suitable for the position. Coupled with this, interview strategies that are

used will also enable the recruiter to ascertain whether or not the applicant is the most suitable

person for the position. The most successful interview strategies include careful checking of

credentials, provision of work samples, well planned questions or applicant testing for example.

Depending on the position that needs to be filled and the required skills, it is essential to consider

the skills that the applicant holds, in relation to those skills that can easily be trained and the ones

that cannot. If an applicant is employed, however requires extensive training, far beyond what

was considered necessary upon appointment, then the wrong decision has been made.

However the converse argument to this is that, depending on the position that needs to be filled,

it may be appropriate to attract the largest and most diverse applicant pool possible. Instead of

specifically defining the exact requirements it may be beneficial to broadly define the job

description in the hope of attracting an applicant who may not have applied or considered the

position before due to strict guidelines, and who may actually be the most suitable person for the

position.If all of these areas are considered, with the most appropriate candidate being selected

for the specific position, then this can be defined as best practice selection, as ultimately the

commitment from the employee and resulting productivity for the organisation will be at its

optimum.

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Performance Appraisals

Recently there has been an increased use of performance appraisal and compensation as a means

of increasing overall commitment toward the organization (Enz & Siguaw, 2000). There are

many methods of performance appraisal that are used within organisations today, such as

operational performance and productivity benchmarking for example, performance appraisals

with management, average sales figures, organisational performance, and turnover to name a

few. In each instance the assessment looks to see if there has been any positive change over a

given space of time. It is often difficult to specify exactly what led to the increased performance,

however in each instance accurate measurements must be made in order to allow management

and employees alike to see if there has been any positive change in performance at either the

organisational or individual level. Messmer (2004) provides an outline of factors that could be

considered when appraising at an individual level, these include:

Competency how well does the employee perform their basic job duties?

Teamwork ability Does the employee have a positive working relationship,

and are they willing to help others?

Initiative Is the employee able to devise solutions without having to ask, for

example.

Soft skills Is the employee able to effectively communicate in a written and

verbal form? Ethics Is the employee able to work effectively and in an ethical manner, and

does the employee understand the importance of ethics?

These factors provided by Messmer (2004) are an example of factors that can be considered

when assessing at an individual level. They are however only an example, and thus cannot be

universally applied, as depending on the job description and organisational position, these factors

may vary to better suit the particular employee being appraised.

Performance appraisals have many uses within the organisation, firstly they allow for the

measurement of the individual performance of employees and/or teams. This in turn allows for

compensation to be provided to these deserving employees and/or teams, which show

reciprocation in commitment from the employer for the commitment shown to the organisation

by the employee.

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It also allows management to assess the performance of the organisation as a whole, which in

many instances is significantly more important than simply the individual level. This is due to

the fact that if the organisation as a whole is prospering, then all individuals within the

organisation can be assured their security within the organisation, with possibilities of

advancement for those who have proven themselves. Performance appraisal can be considered an

HRM best practice, as it provides an outline for employees within the organisation to improve

their performance with regard to not only organisational objectives and operational processes,

but personal goals as well. Performance appraisals also allow for linking of performance with

remuneration or further training. Examples such as these provide not only development of the

organisation as a whole, but also development and betterment of the individual employees,

which as has been discussed before allows this practice to be classed within the best practice of

HRM.

Communication

The final point that needs to be discussed within this section relates to communication as an

HRM best practice. Luthans and Peterson (2003) detail that as organisations become increasingly

complex, sound two-way communication is essential to ensuring the organisation runs smoothly.

Communication, if used as a best practice provides all employees with a voice within the

organisation. If there are any grievances, for example, the employee is able to freelycommunicate these with the appropriate people. Also if the communication is effective to its

fullest extent, then theoretically these grievances shouldnt occur, as all involved parties should

be able to communicate their feelings and settle the matter before it needs to be taken any

further. Sound communication within an organisation also allows each employee to know

exactly what is expected as far as their responsibilities and organisational mission statement, and

what is happening within each organisational area. The latter point for example is essential as if

each organisational area knows what the other is doing, and then decisions can be made

regarding operational processes, which for example can greatly reduce time delays, increase

effectiveness of problem solving and as a result enhance productivity.

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If sound communication between organisational members exists then meetings/briefings can

occur, which can give each section an understanding of the others progress, which ultimately,

can lead to planning of not only current operations, but ways in which the process and operation

can be improved in the future. Another major area that needs to be considered is the notion that

shop floor employees know best.What this basically means is that shop floor employees are

dealing with customers and operational process on a day-to-day basis, and therefore have a better

understanding as to how to improve the organisational processes or better satisfy customer needs.

The only way this can occur however is if the shop floor employees are able to communicate

these ideas with management who are able to make decisions regarding these areas. There are

several benefits from using two-way communication, firstly the organisation increases

performance due to consumer needs being better satisfied, or processes being improved, and

secondly the employee feels accomplishment, and responsibility in the fact that their idea has

been used to help develop the organisation. This aids in commitment building with employees as

they are able to see improvement in something they have contributed to the organisation. This

last point reinforces the fact the communication is an HRM best practice, as per the definition

not only is the organisation improving performance, the employee is bettering themselves

through responsibility and accountability for the suggestion they have made to promote change.

Linkages between HRM best PracticesMany of the HRM best practices have been outlined within the above discussion, including

details about what they are and how they fit within the organisation. However it is also essential

to outline the inextricable linkages between many of these practices. As referred to above there

can be an additive effect for the organisation if more than one best practice is implemented, in

essence providing a compounding competitive advantage to those firms who are able to

successfully implement and run multiple best practices. If the organisation is able to understand

and manipulate those practices that complement each other then it may be able to secure a

competitive advantage within the business environment. The purpose of this section is to outline

the definitive linkages between those best practices that have been discussed within this review.

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Teams are an integral part of any organisation; they can be linked through effective

communication, as any or all teams should communicate their progress or direction, with

subsequent or other teams, and or the management or the organisation in order

to ensure that all within the organisation know what is going on within the organisation. As

many teams are accountable and responsible for their area of work, teams can be linked to

empowerment of employees, and or teams. This in turn can be linked to effective

communication, as employees must understand the strategy of the organisation in order to make

decisions to improve the organisation, and also communicate these decisions with management.

It must be noted that for teams and employee empowerment to work effectively, training and

development must be utilised to ensure that employees have the required skills to make the

decisions, and effectively work within a team environment, so training and development is

linked to these practices as well. Finally all of the measures that have been discussed can be

linked to a flatter organisational structure, as teams negate the need for multiple hierarchy levels,

as does employee empowerment, with communication being more effective with fewer

organisational levels, once again linking all of these practices together. There is also a strong link

between the performance evaluation of individual employees, and performance based pay. If

effective measurement of employee performance takes place, then the suitable remuneration for

this performance can ensue. The remuneration can either be financial or non financial and is an

effective way of generating commitment from employees, as they are fairly rewarded for the

performance that is applied. This in turn can lead to continued performance improvement, as

employees are aware that superior performance is rewarded by the organisation. Another linkage

that can create overall commitment for the employee base of the firm comes in the form of

opportunities such as promotional opportunities, and career ladders.

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If an employee is aware that if they apply themselves to the organisation, and show commitment,

then this will be reciprocated by the organisation in the form of promotion opportunities, which

once again reflects the performance of the employee. This is also linked with performance

measurement of the organisation, which ensures that promotion and remuneration occur, and

incorporate those employees who are most deserving. Finally, we can see a link between

employee security, hiring procedures, and grievance procedures within the organisation. If the

selection strategy is sound, and enables the recruitment of the most suitable employee for the

position then the need to re-hire in the foreseeable future can be negated thus improving overall

employee security. Grievance procedures can also be linked to employee security, as if there are

formal policies and procedures in place to steer both the organisation and employee through the

grievance process, then employee security increases if appropriate policies are in place to

minimise this occurrence. However, if a grievance problem does occur the correct steps can be

taken to ensure that those involved are fairly and justly treated. All of these linkages can be used

within an organisation, and all provide an additive effect and enable the organisation to more

effectively compete within the business environment. These are just some of the linkages that

occur between the best practices that have been outlined within this review. These practices, and

others not detailed here, can compound to provide a sound HRM function within the organisation

if they are applied in an effective way.

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1.5RESEACH METHODOLOGY

I. Sample Size:Planning to take adequate number of samples (50) and the non probability samplingtechniques will be used.

II. Method of Sampling:There are total of 23 questions that aim to cover all aspects of the best practices in field

of HR and exploratory study of the organization. It includes multiple choice questions

(internal scale).

III. Area of work:Dehradun

IV. Parameters:

There are the various factors consdered in the organisation, which are as follows

i. It should focus on recruiting the best potential people.

ii. To ensure that every applicant and employee is treated equally with dignity and respect.

iii. Unbiased policy.

iv. To aid and encourage employees in realizing their full potential.

v.

Transparent, task oriented and merit based selection.vi. Weight age during selection given to factors that suit organization needs.

vii. Optimization of manpower at the time of selection process.

viii. Defining the competent authority to approve each selection.

ix. Abides by relevant public policy and legislation on hiring and employment relationship.

a. Integrates employee needs with the organizational needs.V. Method of Data Collection:

There are two types of data, Primary data and secondary data. My reportt is based on

secondary data and it is collected from the various sources like organization, journals,

company website and internet etc.

VI. Tools:CHI SQUARE

VII. Data Analysis And Interpretation

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a. It improve the performance of the organizationIn the above question the employees are asked about whether it improves the

performance of the organization. The employees options are tabulated as follows:-

TABLEopinion of the employees:

OPINION OF THE

RESPONDENTS

NO. OF

RESPONDENTS

PERCENTAGE

Strongly Agree 12 24

Agree 30 60

Neutral 2 4Disagree 6 12

Strongly Disagree 0 0

TOTAL 50 100.0

CHI SQUARE ANALYSIS:

CHI SQUARE TEST/ TEST OF INDEPENDENCEis used for analysis.Null Hypothesis (Ho): improvement in efficiency is independent of the performance of

the organisatiopn with the belief that the numbers of respondents agree that the best

practices in HR improves efficiency

Level of significance = 5% Degree of freedom = n-1 = 5-1 = 4

Total number of respondents = 12+30+2+6+0 = 50

Expected frequency (Ei) = (Total no of respondents)/ no of opinions = 50/5 = 10

CHI SQUARE (x2) = [(Oi-Ei)2/ Ei]Where Oi = Observed frequency Ei = Expected frequency

TABLE calculation of2

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Opinion Observedfrequency

(Oi)

Expectedfrequency

(Ei)

(Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/Ei

Strongleagree

12 10 2 4 0.4

Agree 30 10 20 400 40Neutral 2 10 8 64 6.4

Disagree 6 10 4 16 1.6

StronglyDisagagree

0 10 10 100 10

[(Oi-Ei)2/Ei]= 58.4

CHI SQUARE( 2) = [(Oi-Ei)2/Ei]

The calculated value of2 value is 58.4

The table value of2 for degree of freedom 4, at 5% level of significance is 9.49

2

computed value = 58.4

2 table value = 9.49

Graphical Representation: the employees are asked about whether it improves the performance

of the organization are as follows

24

60

4 12

0

Strongly agree

Agree

Neutral

Disagree

Strongly Disagree

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INTERPRETATION

since 2(computed value) > 2 (table value), Null hypothesis is rejected. So, improvement

in efficiency is not independent of the best practices in HR with the belief that the

numbers of respondents agree that it improves efficiency. 42 out of 50 employees studied

agree that the Best practices in HR improve efficiency. So, the organization is conducting

HR practices which improve efficiency.

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b. Recruitment practices are excellent that result in the selection ofexcellent staff

The following table gives the information about the opinion of the employees about

Recruitment practices are excellent that result in the selection of excellent staff.

TABLE opinion of the employees:

OPINION OF THE

RESPONDENTS

NO. OF RESPONDENTS PERCENTAGE

Strongly Agree 9 18

Agree 20 40

Neutral 3 6

Disagree 18 36

Strongly Disagree 0 0

TOTAL 50 100.0

CHI SQUARE ANALYSIS:

CHI SQUARE TEST/ TEST OF INDEPENDENCEis used for analysis.

Null Hypothesis (Ho): improvement in efficiency is independent of the recruitment

program with the belief that the numbers of respondents agree that the recruitment

practices are excellent that result in the selection of excellent staff

Level of significance = 5% Degree of freedom = n-1 = 5-1 = 4

Total number of respondents = 9+20+3+18+0 = 50

Expected frequency (Ei) = (Total no of respondents)/ no of opinions = 50/5 = 10

CHI SQUARE (x2) = [(Oi-Ei)2/ Ei]

Where Oi = Observed frequency Ei = Expected frequency

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TABLE calculation of2

Opinion Observedfrequency

(Oi)

Expectedfrequency

(Ei)

(Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/Ei

Strongleagree

9 10 1 1 0.1

Agree 20 10 10 100 10

Neutral 3 10 7 49 4.9

Disagree 18 10 8 64 6.4

StronglyDisagagree

0 10 10 100 10

[(Oi-Ei)2/Ei]= 13.4

CHI SQUARE( 2) = [(Oi-Ei)2/Ei]

The calculated value of

2

value is 13.4The table value of2 for degree of freedom 4, at 5% level of significance is 9.49

2 computed value = 13.4

2 table value = 9.49

Graphical Representation- The Recruitment practices are excellent that result in the

selection of excellent staff

18

406

36

0

strongly agre

agree

neutral

disagree

strongly disagree

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INTERPRETATION

Since 2(computed value) > 2 (table value), Null hypothesis is rejected. So, recruitment

not independent of the selection of best staff with the belief that the numbers of

respondents agree that Recruitment practices are excellent that result in the selection of

excellent staff. 29 out of 50 employees studied agree that the training Recruitment

practices are excellent that result in the selection of excellent staff. So, the organization is

conducting recruitment practices.

The Recruitment practices are excellent that result in the selection of excellent staff.

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c. The open book management style is very effective

In the above question the employees are asked about the effectiveness of the open book

management style. The employees opinions are tabulated as follows:-

OPINION OF THE

RESPONDENTS

NO. OF RESPONDENTS PERCENTAGE

Strongly Agree 2 4

Agree 20 40

Neutral 4 8

Disagree 24 48

Strongly Disagree 0 0

TOTAL 50 100.0

CHI SQUARE ANALYSIS:

CHI SQUARE TEST/ TEST OF INDEPENDENCEis used for analysis.

Null Hypothesis (Ho): improvement in open book management style is effective

Alternative Hypothesis(Ha): improvement in open book management style is notindependent of the HR practices with the belief that the numbers of respondents agree

that the effectiveness of the open book management style.

Level of significance = 5% Degree of freedom = n-1 = 5-1 = 4

Total number of respondents = 2+20+4+24+0 = 50

Expected frequency (Ei) = (Total no of respondents)/ no of opinions = 50/5 = 10

CHI SQUARE (x2) = [(Oi-Ei)2/ Ei]

Where Oi = Observed frequency Ei = Expected frequency

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TABLE calculation of2

Opinion Observedfrequency

(Oi)

Expectedfrequency

(Ei)

(Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/Ei

Strongleagree

2 10 8 64 6.4

Agree 20 10 10 100 10

Neutral 4 10 6 36 3.6

Disagree 24 10 14 196 19.6

StronglyDisagagree

0 10 10 100 10

[(Oi-Ei)2/Ei]= 49.6

CHI SQUARE (

2

) = [(Oi-Ei)

2

/Ei]The calculated value of2 value is 49.6

The table value of2 for degree of freedom 4, at 5% level of significance is 9.49

2 computed value = 49.6

2 table value = 9.49

Graphical Representation- The open book management style is very effective

8%

48%

4%

40%neutral

disagree

strongly agree

agree

strongly disagree

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INTERPRETATION

since 2(computed value) > 2 (table value), Null hypothesis is rejected. So, improvement

in open book management style is not independent of the best practices with the belief

that the numbers of respondents agree that the open book management style is very

effective. When the question is asked 22 out of 50 employees feel that open book

management is very effective.

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d. Performance linked Bonuses programmes are effectiveIn the above question the employees asked whether Performance linked Bonuses

programmes are effective.

TABLE opinion of the employees whether Performance linked Bonuses programmes are

effective.

OPINION OF THE

RESPONDENTS

NO. OF RESPONDENTS PERCENTAGE

Strongly Agree 18 36

Agree 23 46

Neutral 3 6

Disagree 6 12

Strongly Disagree 0 0

TOTAL 50 100.0

CHI SQUARE ANALYSIS:

CHI SQUARE TEST/ TEST OF INDEPENDENCEis used for analysis.

Null Hypothesis (Ho): improvement in performance linked bonus programmes is

independent of the HR best practices.

Alternative Hypothesis (Ha): improvement in performance linked bonus programmes is

not independent of the HR best practics with the belief that the numbers of respondents

agree that the performance linked Bonuses programmes are effective

Level of significance = 5% Degree of freedom = n-1 = 5-1 = 4

Total number of respondents = 18+23+3+6+0 = 50

Expected frequency (Ei) = (Total no of respondents)/ no of opinions = 50/5 = 10

CHI SQUARE (x2) = [(Oi-Ei)2/ Ei]

Where Oi = Observed frequency Ei = Expected frequency

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INTERPRETATION

since 2(computed value) > 2 (table value), Null hypothesis is rejected. So, improvement

in performance linked bonus programmes is not independent of the HR practices with the

belief that the numbers of respondents agree that the performance linked Bonusesprogrammes are effective. When the question is asked 41 out of 50 employees feel that

whether Performance linked Bonuses programmes are effective.

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e. 360 Degree Performance Management Feedback System is effectiveIn the above question the employees asked whether 360 Degree Performance

Management Feedback System is effective.

The employees opinions are tabulated as follows:-

OPINION OF THE

RESPONDENTS

NO. OF

RESPONDENTS

PERCENTAGE

Strongly Agree 15 30

Agree 25 50

Neutral 0 0

Disagree 4 8

Strongly Disagree 6 12

TOTAL 50 100.0

CHI SQUARE ANALYSIS:

CHI SQUARE TEST/ TEST OF INDEPENDENCEis used for analysis.

Null Hypothesis (Ho): improvement in 360 degree performance management feedback

system is independent of the HR best practices.

Alternative Hypothesis(Ha): improvement in 360 degree performance is not

independent of the HR best practices with the belief that the numbers of respondents

agree that 360 Degree Performance Management Feedback System is effective

Level of significance = 5% Degree of freedom = n-1 = 5-1 = 4

Total number of respondents = 15+25+0+4+6 = 50

Expected frequency (Ei) = (Total no of respondents)/ no of opinions = 50/5 = 10

CHI SQUARE (x2) = [(Oi-Ei)2/ Ei]

Where Oi = Observed frequency Ei = Expected frequency

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TABLE calculation of2

Opinion Observedfrequency

(Oi)

Expectedfrequency

(Ei)

(Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/Ei

Strongleagree

15 10 5 25 2.5

Agree 25 10 15 225 22.5

Neutral 0 10 10 100 10

Disagree 4 10 6 36 3.6

StronglyDisagagree

6 10 4 16 1.6

[(Oi-Ei)2/Ei]= 40.2

CHI SQUARE ( 2) = [(Oi-Ei)2/Ei]

The calculated value of

2

value is 40.2The table value of2 for degree of freedom 4, at 5% level of significance is 9.49

2 computed value = 40.2

2 table value = 9.49

Graphical Representation: The employees are the well informed whether 360 Degree

Performance Management Feedback Sy