Term Paper of Human resourse management

8/9/2019 Term Paper of Human resourse management

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LOVELY PROFESSIONAL

UNIVERSITY

Term Paper of Managerial Practices and

Organizational Behavior

Topic- effect of human resource management in

organization

Submitted to-: Submitted by-:

Ms. Tannu badhwar Prashant Kumar Yadav

Roll no RS1904B56

Regis. No. - 10907634

Course- M.B.A (Regular)


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Index

Table of content

Introduction HRPerspectives HRManagement HRFunctions Major challenges forHRmanager HR is a profitable for the business Article on Human resource

management

Bibliography


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Introduction

Human Resource Management (HRM) is the function within an organization thatfocuses on recruitment of, management of, and providing direction for the people

who work in the organization. Human Resource Management can also be

performed by line managers. Human Resource Management is the organizational

function that deals with issues related to people such as compensation, hiring,

performance management, organization development, safety, wellness, benefits,

employee motivation, communication, administration, and training View your

organization from a brand new perspective with a decision-making tool that helps

you prepare your workforce for tomorrows challenges. HR/Perspective makes

your human resources, payroll and benefits information instantly available to your

employees and managers through our Web-based self-service solution. Hr manger

in the time very fast job because today Very hr manager and prospective hr

manager of the company and use the management

HR functions

The role of the Human Resource Manager is evolving with the change in

competitive market environment and the realization that Human Resource

Management must play a more strategic role in the success of an organization.


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Organizations that do not put their emphasis on attracting and retaining talents may

find themselves in dire consequences, as their competitors may be outplaying them

in the strategic employment of their human resources. With the increase in

competition, locally or globally, organizations must become more adaptable,

resilient, agile, and customer-focused to succeed. And within this change inenvironment, the HRprofessional has to evolve to become a strategic partner, an

employee sponsor or advocate, and a change mentor within the organization. In

order to succeed, HRmust be a business driven function with a thorough

understanding of the organizations big picture and be able to influence key

decisions and policies. In general, the focus of todays HRManager is on strategic

personnel retention and talents development. HRprofessionals will be coaches,

counselors, mentors, and succession planners to help motivate organizations

members and their loyalty. The HRmanager will also promote and fight for values,ethics, beliefs, and spirituality within their organizations, especially in the

management of workplace diversity.

This paper will highlight on how a HRmanager can meet the challenges of

workplace diversity, how to motivate employees through gain-sharing and

executive information system through proper planning, organizing, leading and

controlling their human resources.

Workplace Diversity

According to Thomas (1992), dimensions of workplace diversity include, but are

not limited to: age, ethnicity, ancestry, gender, physical abilities/qualities, race,

sexual orientation, educational background, geographic location, income, marital

status, military experience, religious beliefs, parental status, and work experience.

The Challenges ofWorkplace Diversity

The future success of any organizations relies on the ability to manage a diverse

body of talent that can bring innovative ideas, perspectives and views to their

work. The challenge and problems faced of workplace diversity can be turned into

a strategic organizational asset if an organization is able to capitalize on this

melting pot of diverse talents. With the mixture of talents of diverse cultural


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backgrounds, genders, ages and lifestyles, an organization can respond to business

opportunities more rapidly and creatively, especially in the global arena (Cox,

1993), which must be one of the important organizational goals to be attained.

More importantly, if the organizational environment does not support diversity

broadly, one risks losing talent to competitors.

This is especially true for multinational companies (MNCs) who have operations

on a global scale and employ people of different countries, ethical and cultural

backgrounds. Thus, a HRmanager needs to be mindful and may employ a Think

Global, Act Local approach in most circumstances. The challenge of workplace

diversity is also prevalent amongst Singapores Small and Medium Enterprises

(SMEs). With a population of only four million people and the nations strive

towards high technology and knowledge-based economy; foreign talents are luredto share their expertise in these areas. Thus, many local HRmanagers have to

undergo cultural-based Human Resource Management training to further their

abilities to motivate a group of professional that are highly qualified but culturally

diverse. Furthermore, the HRprofessional must assure the local professionals that

these foreign talents are not a threat to their career advancement (To, 1993). In

many ways, the effectiveness of workplace diversity management is dependent on

the skilful balancing act of the HRmanager.

One of the main reasons for ineffective workplace diversity management is the

predisposition to pigeonhole employees, placing them in a different silo based on

their diversity profile (Thomas, 1992). In the real world, diversity cannot be easily

categorized and those organizations that respond to human complexity by

leveraging the talents of a broad workforce will be the most effective in growing

their businesses and their customer base.

The Management ofWorkplace Diversity

In order to effectively manage workplace diversity, Cox (1993) suggests that a HR

Manager needs to change from an ethnocentric view ("our way is the best way") to

a culturally relative perspective ("let's take the best of a variety of ways"). This

shift in philosophy has to be ingrained in the managerial framework of the HR


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Manager in his/her planning, organizing, leading and controlling of organizational

resources.

As suggested by Thomas (1992) and Cox (1993), there are several best practices

that a HRmanager can adopt in ensuring effective management of workplacediversity in order to attain organizational goals. They are:

Planning a Mentoring Program-

One of the best ways to handle workplace diversity issues is through initiating a

Diversity Mentoring Program. This could entail involving different departmental

managers in a mentoring program to coach and provide feedback to employees

who are different from them. In order for the program to run successfully, it is wiseto provide practical training for these managers or seek help from consultants and

experts in this field. Usually, such a program will encourage organizations

members to air their opinions and learn how to resolve conflicts due to their

diversity. More importantly, the purpose of a Diversity Mentoring Program seeks

to encourage members to move beyond their own cultural frame of reference to

recognize and take full advantage of the productivity potential inherent in a diverse

population.

Organizing Talents Strategically-

Many companies are now realizing the advantages of a diverse workplace. As

more and more companies are going global in their market expansions either

physically or virtually (for example, E-commerce-related companies), there is a

necessity to employ diverse talents to understand the various niches of the market.

For example, when China was opening up its markets and exporting their products

globally in the late 1980s, the Chinese companies (such as Chinas electronic

giants such as Haier) were seeking the marketing expertise of Singaporeans. This is

because Singapores marketing talents were able to understand the local China

markets relatively well (almost 75% of Singaporeans are of Chinese descent) and

as well as being attuned to the markets in the West due to Singapores open

economic policies and English language abilities. (Toh, R, 1993)


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With this trend in place, a HRManager must be able to organize the pool of

diverse talents strategically for the organization. He / She must consider how a

diverse workforce can enable the company to attain new markets and other

organizational goals in order to harness the full potential of workplace diversity.

An organization that sees the existence of a diverse workforce as an organizational

asset rather than a liability would indirectly help the organization to positively take

in its stride some of the less positive aspects of workforce diversity.

Leading the Talk-

AHRManager needs to advocate a diverse workforce by making diversity evident

at all organizational levels.O

therwise, some employees will quickly conclude thatthere is no future for them in the company. As the HRManager, it is pertinent to

show respect for diversity issues and promote clear and positive responses to them.

He / She must also show a high level of commitment and be able to resolve issues

of workplace diversity in an ethical and responsible manner.

Control and Measure Results-

AHRManager must conduct regular organizational assessments on issues like

pay, benefits, work environment, management and promotional opportunities to

assess the progress over the long term. There is also a need to develop appropriate

measuring tools to measure the impact of diversity initiatives at the organization

through organization-wide feedback surveys and other methods. Without proper

control and evaluation, some of these diversity initiatives may just fizzle out,

without resolving any real problems that may surface due to workplace diversity.

Motivational Approaches

Workplace motivation can be defined as the influence that makes us do things to

achieve organizational goals: this is a result of our individual needs being satisfied

(or met) so that we are motivated to complete organizational tasks effectively. As

these needs vary from person to person, an organization must be able to utilize


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different motivational tools to encourage their employees to put in the required

effort and increase productivity for the company.

Why do we need motivated employees? The answer is survival (Smith, 1994). In

our changing workplace and competitive market environments, motivatedemployees and their contributions are the necessary currency for an organizations

survival and success. Motivational factors in an organizational context include

working environment, job characteristics, appropriate organizational reward

system and so on.

The development of an appropriate organizational reward system is probably one

of the strongest motivational factors. This can influence both job satisfaction and

employee motivation. The reward system affects job satisfaction by making theemployee more comfortable and contented as a result of the rewards received. The

reward system influences motivation primarily through the perceived value of the

rewards and their contingency on performance (Hickins, 1998).

To be effective, an organizational reward system should be based on sound

understanding of the motivation of people at work. In this paper, I will be touching

on the one of the more popular methods of reward systems, gain-sharing.

Gain-sharing programs generally refer to incentive plans that involve employees in

a common effort to improve organizational performance, and are based on the

concept that the resulting incremental economic gains are shared among employees

and the company.

In most cases, workers voluntarily participate in management to accept

responsibility for major reforms. This type of pay is based on factors directly under

a workers control (i.e., productivity or costs). Gains are measured and

distributions are made frequently through a predetermined formula. Because this

pay is only implemented when gains are achieved, gain-sharing plans do not

adversely affect company costs (Paulsen, 1991).


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Managing Gain-sharing

In order for a gain-sharing program that meets the minimum requirements for

success to be in place, Paulsen (1991) and Boyett (1988) have suggested a few

pointers in the effective management of a gain-sharing program. They are asfollows:

y AHRmanager must ensure that the people who will be participating in theplan are influencing the performance measured by the gain-sharing formula

in a significant way by changes in their day-to-day behavior. The main idea

of the gain sharing is to motivate members to increase productivity through

their behavioral changes and working attitudes. If the increase in the

performance measurement was due to external factors, then it would havedefeated the purpose of having a gain-sharing program.

y An effective manager must ensure that the gain-sharing targets arechallenging but legitimate and attainable. In addition, the targets should be

specific and challenging but reasonable and justifiable given the historical

performance, the business strategy and the competitive environment. If the

gain-sharing participants perceive the target as an impossibility and are not

motivated at all, the whole program will be a disaster.

y A manager must provide useful feedback as a guidance to the gain-sharingparticipants concerning how they need to change their behavior(s) to realize

gain-sharing payouts The feedback should be frequent, objective and clearly

based on the members performance in relation to the gain-sharing target.

y A manager must have an effective mechanism in place to allow gain-sharingparticipants to initiate changes in work procedures and methods and/or

requesting new or additional resources such as new technology to improve

performance and realize gains. Though a manager must have a tight control

of companys resources, reasonable and justifiable requests for additional

resources and/or changes in work methods from gain-sharing participants

should be considered.


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Executive Information Systems

Executive Information System (EIS) is the most common term used for the unified

collections of computer hardware and software that track the essential data of a

business' daily performance and present it to managers as an aid to their planningand decision-making (Choo, 1991). With an EIS in place, a company can track

inventory, sales, and receivables, compare today's data with historical patterns. In

addition, an EIS will aid in spotting significant variations from "normal" trends

almost as soon as it develops, giving the company the maximum amount of time to

make decisions and implement required changes to put your business back on the

right track. This would enable EIS to be a useful tool in an organizations strategic

planning, as well as day-to-day management .

Managing EIS

As information is the basis of decision-making in an organization, there lies a great

need for effective managerial control. A good control system would ensure the

communication of the right information at the right time and relayed to the right

people to take prompt actions.

When managing an Executive Information System, a HRmanager must first find

out exactly what information decision-makers would like to have available in the

field of human resource management, and then to include it in the EIS. This is

because having people simply use an EIS that lacks critical information is of no

value-add to the organization. In addition, the manager must ensure that the use of

information technology has to be brought into alignment with strategic business

goals

Conclusion

The role of the HRmanager must parallel the needs of the changing organization.

Successful organizations are becoming more adaptable, resilient, quick to change

directions, and customer-centered. Within this environment, the HRprofessional

must learn how to manage effectively through planning, organizing, leading and

controlling the human resource and be knowledgeable of emerging trends in


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training and employee developmentSome industry commentators call the Human

Resources function the last bastion of bureaucracy. Traditionally, the role of the

Human Resource professional in many organizations has been to serve as the

systematizing, policing arm of executive management.

In this role, the HRprofessional served executive agendas well, but was frequently

viewed as a road block by much of the rest of the organization. While some need

for this role occasionally remains you wouldnt want every manager putting his

own spin on a sexual harassment policy, as an example much of the HRrole is

transforming itself.

The role of the HRmanagermust parallel the needs of his or her changing

organization. Successful organizations are becoming more adaptive, resilient,quick to change direction and customer-centered. Within this environment, the HR

professional, who is considered necessary by line managers, is a strategic partner,

an employee sponsor or advocate and a change mentor.

Major challenges for HR

We are moving away from the industrial age to the information age Work

performed in factories is being replaced by work in offices or at computer terminal

instead of working with thing people increasingly work with ideas and conceptsinformation and knowledge have replaced manufacturing as the sourse of most

new jobs. we are moving from restricted markets to global marketour old local

regional vision is giving way to new global economic oradar and business the

new demand is think globally and act locllay. Burearuracracy is given a go by The

rigid organization hierarchy with its monolithic chain of command is giving Way

to integrated team network based on autonomy and flexibility.

Strategic Partner

In todays organizations, to guarantee their viability and ability to contribute, HR

managers need to think of themselves as strategic partners. In this role, the HR

person contributes to the development of and the accomplishment of the

organization-wide business plan and objectives.


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The HRbusiness objectives are established to support the attainment of the overall

strategic business plan and objectives. The tactical HRrepresentative is deeply

knowledgeable about the design of work systems in which people succeed and

contribute. This strategic partnership impacts HRservices such as the design of

work positions; hiring; reward, recognition and strategic pay; performancedevelopment and appraisal systems; career and succession planning; and employee

development.

Employee Advocate

As an employee sponsor or advocate, the HRmanager plays an integral role in

organizational success via his knowledge about and advocacy of people. This

advocacy includes expertise in how to create a work environment in which people

will choose to be motivated, contributing, and happy.

Fostering effective methods of goal setting, communication and empowerment

through responsibility, builds employee ownership of the organization. The HRprHRIS THE PROFITABELE FORTHE BUSINESS ofessional helps establish the

HR/Perspective provides

: HRIS THE PROFITABELE FORTHE

BUSINESSSuperior functionality

HR/Perspective eliminates many routine, time-consuming tasks and streamlines

day-to-day HR transactions in key areas such as:

y Employee Administrationy Self Servicey Benefits Administrationy Compliancey Compensationy Recruitment


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y Performance & Developmenty Safety & Healthy Succession Planningy Time-off Managementy Organization Management

Transforms HR data into strategic information.

As the more skilled engineering and other professionals in the oil and gas industry

approach retirement, the call is going out to develop strategies to keep them

engaged in flexible work arrangements and to re-recruit individuals who left the

industry in previous years. The plan is to invite them back as an expert resource to

assist in the recruitment, training, and mentoring of young professionals, upon

whose recruitment and retention the successful future of the industry depends.

If there is one thing the industry agrees upon it is the need to extensively recruit

both graduate and experienced hires. In addition, companies are also implementing

training and development programs that will fast track new recruits into fully

operational employees.

The transfer of knowledge and skills from the experienced generation to new

college graduates requires organizational commitment, strong development and

coaching programs, and sophisticated training capabilities. However, theory is one

thing and practices another. In a recent study highlighting industry resource

constraints, Booz Allen Hamilton notes that, "With little slack in the system, senior

employees are driven to deliver through to retirement, with ever less time to

transfer their knowledge. As overstretched companies are forced to do more with

less, on-the-job training, mentoring, and coaching have virtually become a thing of

the past. Managers explained the challenge of giving staff development the

appropriate time and attention when permanently in operational crisis mode."This is hardly the kind of environment conducive to empowering Generation Y

and fast tracking their development to operational autonomy.

Our objective is to broaden the pool of resources by targeting individuals who left

the industry and might not have considered opportunities for returning.Cathy Clots,


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whose online portal AlumniInTouch.com hosts a number of oil and gas industry

alumni communities, sees an opportunity for retired and former industry

professionals to play a continuing role in the oil and gas industry. "In our

communities, we have several hundred individuals who have indicated their

interest in training new recruits, coaching and mentoring, doing technical work,and sharing knowledge," she said. "There exists a ready and easily contactable pool

of seasoned industry professionals who are willing to support the hiring and

retaining of young talent and support their entry into the industry." Members of the

service indicate their availability for short-term and permanent opportunities in

consulting and project work, training, mentoring, and interim management. "Our

objective is to broaden the pool of resources by targeting individuals who left the

industry and might not have considered opportunities for returning. This includes

individuals who took a career break for family reasons, individuals who left theindustry in downturns or following acquisitions, and those who took early

retirement. Many individuals are financially secure, but as they are in their early

50s, they find they want the intellectual stimulation offered by returning to the

industry," Clonts said.

Those with critical knowledge and skills are a precious resource deserving of

investment and consideration post-departure. Evidence suggests that critical

industry knowledge stays current even up to 10 years after leaving the industry,

which leaves one giant pool of talent from which to draw.

Joe Ross, a former project manager, said he used personal contacts to fill key

short-term roles while resourcing projects but found this a cumbersome process.

He believes companies increasingly use portals that list company alumni. "This

additional powerful recruitment channel for good staff will enable earlier or more

certain project completions, and of better quality," he said.

Long-time SPE member Shaun Hoolahan exemplifies the newly defined retiree.

"Before making the decision to retire myself, I conducted a survey of formerassociates to determine how leaving the industry had affected their lives. Based on

their responses, retirement is like a three-legged stool comprised of being

financially ready, physically ready, and psychologically ready. Without all three

legs, the stool will topple," he said. "For many people, it appeared the third leg was

missing, and as a result, they have since re-entered the workforce as either full- or


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part-time employees or consultants. Rather than waiting for the stool to topple, I

decided to form my own consultancy business straight away." As a consultant,

Hoolahan travels from home about a third of the year teaching subsurface

engineering to new recruits. "Apart from my wife having to be a single parent

when I am traveling, the flexibility of being a consultant provides the perfectwork/life balance for me," he said. "I thoroughly enjoy sharing my experience and

imparting my knowledge to the next generation."

A Different Approach

To support the training and development of new hires, companies have instituted

several programs for graduate and experienced hires. But whether it is the sheer

numbers or the differing psyches of the generations, it appears these programs are

not all hitting the spot. Attrition rates for young hires are more than double that ofexperienced hires, as high as 2030%. Clearly, something more is needed.

Tina Berger, President ofObsidian Technical Communications, a petrochemical

consulting company, believes members of Generation Y are very different from the

exiting baby boomers. She believes new technology can play a bigger part in

training younger professionals, who accept instant messaging and audio and video

content as an integral part of life. Most will have experienced online learning in

some form while at college, and the path is open for company Web-based training

that blends audio, video, and animation in an interactive and appealing format. It is

important for companies to realize that these differing training methods are no

longer considered inferior. Sometimes, a short animation of a drilling-tool function

can be a quicker and more efficient way to share information than a lecturer with a

stick of chalk and a board.

While mentors and their recipients were traditionally at the same site, online

technology has the potential to transform these relationships. With webcams,

Skype, laptops, and palm pilots, communication has never been easier, and

distance is not a barrier to relationship development. Technology advancement

enables shorter periods away from the job and tailored training programs. It also

affords regular contact with a mentor who may live in a different time zone. The

mentor provides a clear path to industry knowledge and skills development as well

as the one-on-one relationship craved by young professionals.


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All these elements are critical in bringing down the unacceptably high attrition

rates that are currently undermining the industrys best recruitment efforts.

The Importance of Mentoring

In the struggle to hire and retain staff, the concept of mentoring itself is being

considered more broadly, co-location aside. A mentoring relationship can be a

single, long-term relationship; peer to peer across different disciplines; or it may be

a series of short-term relationships. Even "speed" mentoring can be useful.

A mentoring relationship can be a single, long-term relationship; peer to peer

across different disciplines; or it may be a series of short-term relationships.

"Upon joining BP, I was formally assigned a mentor and this was very helpful,"

said SPE member Meriem Mokrani. "I found the role of a mentor in mydevelopment so useful that I have since asked a number of people to be my

mentors as I determined areas where their support, experiences, and network would

support my professional growth.

"I define the criteria of a good mentor as inspirational, available, open-minded, and

well-networked.Also, a good mentor is someone I feel comfortable talking to

confidentially," Mokrani said. "I have always had very positive responses from

individuals whom I have asked to be my mentors. These roles do not have to be

long term, and I encourage others to take the initiative to approach someone whom

they identify as able to positively impact their learning and performance and ask

them to serve as a mentor.

"Conversely, I mentored a summer intern, and when he joined BP full-time, he

asked me to be his mentor and we have continued our relationship. I also

informally mentor several young professionals. Being a mentor allows me to grow,

as it makes me reflect on how to deal with diverse issues and challenges and adopt

different perspectives to give good career advice."

But what of intergenerational conflict? The old not understanding the young is as

much a part of human experience as breathing. If retirees and employees who are

near retirement are to play a greater role in mentoring, knowledge exchange, and

training of the incoming workforce, then respect for the experienced generation


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and understanding the needs and drivers of the younger people entering the

industry are essential to the process.

Looking at another industry, perhaps the oil and gas industry can learn another

tactic. Procter and Gamble was among the first to institute "reverse mentoring," inwhich senior managers sought mentors from within the junior ranks of the

organization. The idea being that those in their 40s, 50s, and beyond are no longer

in touch with the future in the same way that the 20-somethings are. The younger

generation has a much stronger link to the technology of the future together with

fresh eyes and open minds. Engaging in reverse mentoring offers an opportunity to

gain technical expertise and a different perspective. Reverse mentoring for career

industry professionals by newer recruits, on a peer-to-peer basis, might extend their

desire to remain in the workforce. It would certainly help to foster respect and

understanding on both sides of the generation gap.

Innovative recruiting, flexible work opportunities, and mentoring programs clearly

have roles to play in meeting future business needs. Creative use of these

opportunities may well provide the edge to effectively prepare incoming

engineering and oil and gas recruits for the realities of the industry, meet their

training needs, cut attrition rates, and contribute to greater workplace equity

through intergenerational understanding.

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y Define and control security for your organizationy Completely integrated with HR/Perspective and ADP PC/Payroll for fast and

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Organizational culture and climate in which people have the competency concern

and commitment to serve customers well.

In this role, the HRmanager provides employee development opportunities,

employee assistance programs, gain sharing and profit-sharing strategies,

organization development interventions, due process approaches to problem

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