RATEGIC PLANNING AND HRM (HR-221)

HR221: Strategic Planning and Human Resource Management

Course Instructor: Prof. Pulak Das, Office Room: C-Block Room-307, Ph ext 204, Mob: 98364-23954

Term: V: 2014-15 Maximum registration allowed: 50 of which 20 are reserved for Step students. In the absence of required step registration, PGP registration may exceed the limit of 30. In case PGP students demand exceed its ceiling, allotment to be done on the basis of CGPA at the end of Term-III. Any residual tie could be broken by using Grade acquired in HR101 course in Term-III. Step student positions are to be filled on first come first serve basis. Decision on excess demand from step students should be referred to instructor for final decision which may include relaxation of the ceiling on a case by case only.

Course objectives

In a fast changing external environment, advance planning for acquisition, development and deployment of productive resources are a critical requirement. The choice of resources to compete is a critical factor in long terms success of a business organizations. In a volatile and overcrowded market, competitive advantage of a company moves away fast from its physical and trade-able assets to non-trade-able and intangible assets. Employee competencies and commitments are a few of the most valued non-trade-able assets which could be used for taking a competitive position that is sustainable. However, employee skill and commitment based competitive advantage is hard to build and harder to maintain. The objectives of the present course are to discuss the ways of designing and executing various human resource functions for creating and maintaining an HR based competitive positions. The course will also discuss the human resource implications of three popular business strategies viz. outsourcing, merger and acquisition and joint venture and alliance and how an integrated approach towards their execution ensures better success of such strategies.

Sessions, topic list, reading reference and topic details

Session No

Topic and reading reference

Short description of topic

1 Resource Based Competitive Advantage: An introduction Reading reference: Chapter 3 of text book

Forces affecting the business policy of a company, organizational stock of resources; different types of

resources; human resource based competitive advantage and external labor market; organizational

competencies and capabilities; sustainability of competitive advantage

2 Case: Volvos HR Practices- Focus on Job Enrichment

The case discusses the efforts made by the Swedish automobile major Volvo AB towards improving the

work conditions at its facilities through job enrichment programmes.

3 Change in HR Environment and Importance of Inclusive work place

Forces affecting the HR environment; Demographic change; workforce diversity; stereotype and prejudice, dehumanization and oppression, employment related

discrimination

Reading reference: Chapter 4 of text book and Chapter 6 of Reference 2

Creating diverse workforce through acquisition

4 Case: IBMs Diversity Strategy: Bridging the Workplace and the

Market place

The case explores how IBM incorporated diversity into its business strategy, making the case that workforce

diversity is critical to making its products and services to its customers.

5 Balanced score card method of organizational performance: An introduction Reading reference: Chapter 8 & 9 of text book

Strategic acquisition of manpower at market level and at candidate choice level; Organizational life cycle and

choice of candidate; selection instruments

6 Case: Verizon communication: Implementing Human resource Balanced Score card

In early 2000, Verizon Communications implemented a Human Resources Balanced Scorecard to evaluate the

effectiveness of and payoffs from human resource management. This case describes the benefits of the scorecard and the challenges of measurement and

implementation.; To help students understand: 1) how to implement a Balanced Scorecard, 2) how to measure and improve the effectiveness of support functions, and 3) how

to link non-financial measures to financial measures of support functions when financial benefits are difficult to

quantify. 7 Flexible Employee

Engagement as a source of Competitive advantage Reading reference: Chapter 3 of Reference 1

What is flexibility, Evidence of flexible employment in Europe, Asia, Australia, New Zealand, South Africa,

Flexibility and organizational design, flexible specialization,

Advantage and disadvantage of flexible pattern of work, employer perspective, employee perspective.

8 Case: Yahoo CEO Bans Work from home Redefining the Flexible work culture

In February 2913 Yahoo CEO Marrisa Meyer decided to stop the work from home facility for the

employees. According to Meyer, telecommuting hampered communication and collaboration and put

barriers to innovation. The supporters felt that telecommuting increased productivity with employees

finding better work-life balance. 9 Strategic Management of

Labor Relations Reading reference: Chapter 14 of Text

Why workers join trade unions, why employers dislike trade unions, advantage in union involvement in

company strategic plan, potential problems from union involvement, trade unions concerns for involvement

in company strategic decisions. 10 Case: Maruti Suzuki

India Ltd: Industrial relations

In 2011, Maruti Suzuki India Limited (MSIL), India's largest car manufacturer, had three strikes in its new plant in

Manesar, India. Although workers wanted recognition of a new union along with improved working conditions, MSIL insisted that workers be represented through the existing

union that operated at a nearby plant. Tensions escalated to the point of violence and the matter caught the attention of national media, political parties, national trade unions, and

central and state governments. Due to these strikes, MSIL struggled in terms of reputation and market share, and its component suppliers stockpiled inventory. After a series of

hectic parleys and stressful episodes, the two parties reached an agreement. However, there were serious doubts

as to its longevity and whether Suzuki's Japanese management style was suitable in an Indian context..

11 Strategic Management of Compensation and Incentives Reading reference: Chapter 13 of text book

Traditional job evaluation based compensation, variable compensation; team based compensation; skill

based compensation; Generic business strategy and employee compensation; balanced score card

performance based compensation 12 Case: Restructuring

General Motors North America: pay for performance

In 1999. General Motors reorganized the pay for performance scheme of sales and marketing

departments. Once in operation, many administrative problems developed requiring a reconsideration of the

schemes basic architecture of assessment of pay for performance.

13 Strategic Use of outsourcing Reading reference: Chapter 15 of text book

Why outsource, Drivers to outsourcing; HR outsourcing; outsourcing of employee vs outsourcing

HR services; strategic use of HR outsourcing; Business concern and HR concerns in outsourcing process.

14 Case: CIBC: Outsourcing the Human Resource Department (A) & (B)

The Canadian Imperial Bank of Commerce (CIBC) is one of the 10 largest full-service financial institutions in North America. Its human resources department wanted to

reinvent HR service delivery and increase automation and self-service operations. A number of options were being

considered, including continuing with the status quo while undertaking patchwork operations, developing new HR

capabilities in-house, outsourcing the development of HR capabilities, and exploring the opportunity to outsource

entire functions. Each option presents benefits and challenges, and the senior lead on the project must begin to develop a business case to go forward. The supplemental

case 'CIBC: Outsourcing the Human Resources Department (B)', product discusses the human resources

outsourcing agreement. 15 Strategy of Merger and

Acquisition and its HR implications Reading reference: Chapter 15 of text book

Motives for merger and acquisition; common causes of failure; symptoms of soft asset mis-match: policy areas; symptoms of soft-asset mismatch: practice

areas; Approach towards integration

16 Case : Air India and Indian Airline: A merger gone wrong

Indian domestic carrier of Indian Airlines and international carrier of Air India was merged in 2007. The rationale for the merger was to boost the revenue of the both state owned airlines. At the time of merger the combined manpower strength of the two airlines

was 29000. Contrary to expectation, the merged entity started incurring losses from 2007. Employee unrest due to unresolved HR issues further aggravated the airlines problems. CAG report specified improper planning, mismanagement of resources, delay in

integration, additional costs and fall in passenger load

factor were the major reasons for the failure of the merger.