clique38

2009-11-12T08:43:00.000-08:00

Chapter 1: Introduction to HRM

Definition and Concept of Human Resource Management, History of Human Resource Management, Scientific Management Approach, Human Relations Approach, Human Resources Approach, Functions of Human Resource Management , Managerial Functions, Operative Functions, Human Resource Policies and Procedures, Emerging Role of Human Resource Management, Value of Human Resources, Role of HR Executives, The Service Provider, The Executive, The Facilitator, The Consultant, The Auditor, Challenges to HR Professionals, Worker Productivity, Quality Improvement, The Changing Attitude of Workforce, The Impact of the Government, Quality of Work Life, Technology and Training, Strategic Human Resource Management.

Chapter Summary

Human resources management is one of the most complex and challenging fields of management. It deals with the people dimension in management. Over the past eighty years, various approaches to human resource management have been adopted by companies. The human resource approach which is currently in vogue, has redefined the way people are treated and managed in the organizational context.

This approach requires that employees or the work force be treated as resources and not just as factors of production (as in the scientific approach) or emotional beings with psychological needs (as in the human relations approach). Basically, HRM includes the four functions of acquiring, developing, motivating and managing the human resources. HRM functions are broadly classified into two categories – managerial functions and operative functions. Managerial functions include planning, organizing, directing and controlling.

The operative functions of HRM are related to specific activities of HRM such as recruitment, development, compensation and employee relations. HR policies are based on the organizational culture and objectives and they define the role of the HR department in an organization. They determine the relationship between the management and the employees and the way the employees are treated and valued in the organization.

Therefore, they determine the levels of employee satisfaction and motivation. HR procedures help the management in implementing the HR policies. Human resources play an important role in the development of businesses and countries. Attracting, retaining, motivating, and developing people with varied interests and expectations are a major HR challenge.

Moreover, challenges posed by the turbulent business environment, rapid technological changes, a diverse workforce, and the changing legal and governmental regulations also affect organizations. In this situation, a new role has emerged for HR function, as a value provider, as a key player in organizational working and as a contributor to organization's strategy.

The specialist role of the HR professional takes a number of forms: the auditor's role, the executive's role, the facilitator's role, the consultant's role and the service-provider's role. HRM objectives should be in alignment with the organizational objectives, and should balance them with the individual and social goals.

HR policies, framed after determining the objectives of HRM, are described as a set of proposals and directions that guide the managers in pursuit of the objectives. Today's HR professional has a lot of challenges to face in the form of changing composition and attitudes of the work force, growing emphasis on quality of products and services and the quality of work life, fast paced technological changes, government policies, etc.

He has to gear up to meet these challenges effectively by being more innovative and proactive. Strategic Human Resource Management helps the organization in the achievement of long-term and short-term goals through optimum utilization of human resources. It involves the development of human resources objectives and their alignment with the organizational objectives.

Chapter 2: Organizational Structure and HRM

Organizational Structure and Human Resource Management, Formal and Informal Organizations, Formal Organization, Informal Organization, Tall and Flat Organizational Structures, Responsibility, Authority and Accountability, Responsibility, Authority, Accountability, Line and Staff Functions, Line and Staff Relationship, Line-Staff Conflict, Human Resource Management as a Line Responsibility, Human Resource Management as a Staff Function, The Role of Human Resource Department in an Organization, Human Resource Management in Harmony, Products and Human Resources, Production and Human Resources, Marketing and Human Resources, Management Techniques and Human Resources, Organizational Structure and Human Resources

Chapter Summary

People who work together in organizations need a defined system or structure through which they relate to each other and through which there can be a coordination of their efforts. The defined relationships among the elements of an organization, namely people, tasks, structure, and information and control processes – that characterize all organizations is referred to as organizational structure.

Mechanistic structures are appropriate for static environments and organic structures for dynamic environments. Formal organization refers to the intentional structure of roles in a formally organized enterprise. Informal organization refers to any joint personal activity without conscious joint purpose, even though it contributes to joint results. There are two types of structures – tall and flat. A tall structure is characterized by a narrow span of control and a flat structure by a high span of control.

The HR department consists of various jobs as a specialist, as a facilitator, as a change agent and as a controller. The key to growing beyond a manager's time, skill and knowledge limitations is delegation – the assignment of authority and responsibility to subordinates. Responsibility is the obligation to perform the functions assigned in accordance with the directions received.

Authority refers to the right to give orders and the power to exact obedience. Another aspect of delegation is accountability, which is the process wherein the subordinate is held liable for performing those tasks which have been delegated to him, with specific authority and responsibility. Formal relations are classified into line and staff relations. Conflicts can arise between the line and staff functions.

A good understanding of line and staff relationships helps in developing harmonious line-staff relationships. HRM is a staff function but a line responsibility. The HR department plays the role of specialist; a facilitator; a change agent; and a controller. The equations between the line and staff functions have been changing in recent times, keeping with the changing business and work environment.

Chapter 3: International Human Resource Management ( Globalization)

Concept of IHRM, Approaches to IHRM, Ethnocentric Approach, Polycentric Approach, Geocentric Approach, Features of IHRM, Increased Complexity of HR Activities, Cultural Awareness and Tolerance, Stronger Relationship with Employees and their Families, Different Expectations and Requirements of Employees Across Cultures, Management of Cross-cultural Teams, Diluted Risk on the Business Front and Increased Risk on the People Front, Importance of IHRM, Factors Affecting IHRM, National Culture, Political Forces, Economic Forces, Market Forces, Technology Changes, Legal Forces, Labor Forces, Corporate Culture- Different IHRM Activities, Strategic IHRM

Chapter Summary

In recent times, the world has become a global village. Markets all over the world have become part of a well-knit network. Indian companies have also geared up to meet the challenges of operating in a global market. Management of human resources is a critical task for multinational / global companies. The number of HR activities and the complexity of those activities, increase from a local to a global firm.

International Human Resource Management is characterized by increased complexity of HR activities, cultural awareness and tolerance, stronger relationship with employees and their families, different expectations and requirements of employees across cultures, management of cross-cultural teams and diluted risk on the business front and increased risk on the people front.

Business in India and worldwide has seen some phenomenal developments after the introduction of reforms in recent times. The Indian economy has opened up new vistas of business for MNCs worldwide, including Indian MNCs. The magnitude of FDI investments in the country is an indication of the attractiveness of the Indian market. Indian MNCs have also made a mark in the international market.

Expansion of business horizons implies greater challenges in terms of human resource management. The different IHRM activities include normal HR activities like human resource planning, performance management, compensation management, training, etc., but at a higher level of complexity. The specific IHRM activities include expatriate assignment management, expatriate training, management of cross-cultural work-teams, cross-cultural training etc.

Activities like compensation management and performance management have to be tackled carefully to ensure perceived equity and the trust of employees worldwide. Strategic IHRM is an important element of the corporate strategy of a global firm. An international firm should have a global strategy that acts as a directive to all its subsidiaries operating in different parts of the world.

Strategic HRM helps a firm with global operations identify the opportunities available in the global market and respond accordingly given the strengths and weaknesses of the firm. It also helps to identify and tackle any threats specific to the industry or the manpower market.

Chapter 4: Human Resource Planning

Definition of Human Resource Planning, Objectives of Human Resource Planning, Human Resource Planning at Different Levels, The Process of Human Resource Planning, Assessing Current Human Resources and Making an Inventory, Forecasting, Matching the Inventory with Future Requirements, Managing the Forecasted Demand/ Surplus, Managing Future Demand, Managing Future Surplus, Dealing with Surplus Manpower, Growing Importance of Human Resource Planning, Current Trends

Chapter Summary

HRP is the process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time and that these people are capable of performing their tasks effectively and efficiently. This helps the organization to achieve its overall objectives. Two major ways in which societal trends affect employment is through consumer markets, which affect the demand for goods and services, and labor markets, which affect the supply of people needed to produce goods and services.

Maintaining a flexible workforce is the major challenge of the HR department and HRP helps it handle this challenge. HRP is done at different levels – corporate, intermediate, and operations levels and for short-term activities. A proper human resource planning exercise should utilize the inputs of all the departments in the organization and enjoy the support of the top management.

A human resource professional would be better equipped for human resource planning if he has a good understanding of the market dynamics, changes in the economy, organizational processes and technological developments. The process of HRP involves three key steps – assessing and making an inventory of the current human resources, forecasting the organization's human resource needs and matching the demand and supply of human resources.

Forecasting the overall human resource requirements involves studying the factors affecting the supply and estimating the increase or decrease in the external and internal supply of human resources. New hires, transfers-in, individuals returning from leave etc. increase the internal supply of human resources, while retirements, dismissals, transfers-out of the unit, lay-offs, voluntary quits, sabbaticals, prolonged illness, and deaths reduce the supply.

The matching of supply and demand can help the HR department to identify areas in which shortages and surpluses exist. When there is a need for downsizing, organizations opt for retrenchment using several techniques such as lay-offs, outplacements, leave of absence without pay, loaning, work-sharing, reduced work hours, early retirement and attrition to reduce the number of employees. Effective HRP reduces the pressures on the management and employees, as both employment and retrenchment would be well planned and phased out over a comfortable time span, avoiding unpleasant consequences.

Chapter 5: Job Analysis and Design

Concept of Job Analysis, Process of Job Analysis, Information Gathering, Job Specification Competency Determination, Developing a Job Description, Developing a Job Specification, Job Analysis Methods, Observation Method, Individual Interview Method, Group Interview Method, Questionnaire Method, Technical Conference Method, Diary Method, Functional Job Analysis, Position Analysis Questionnaire, Critical Incident Technique, Job Analysis Information, Job Description, Drafting and Maintaining Job Description, Job Specification, Uses of Job Analysis, Employment, Organization Audit, Training and Development, Performance Appraisal, Promotion and Transfer, Preventing Dissatisfaction, Compensation Management, Health and Safety, Induction, Industrial Relations, Career Planning, Succession Planning, Issues in Job Analysis, Concept of Job Design, Different Approaches to Job Design, Modern Management Techniques, Job Rotation, Job Enlargement, Job Enrichment, Some More Modern Management Techniques

Chapter Summary

Job analysis, which is also called job review or job classification, is a systematic exploration of the tasks, duties, responsibilities and accountabilities of a job. The process of job analysis involves collection of background information, selection of representative jobs to be analyzed, collection of job analysis information, development of a job description and job specification.

The formal and systematic methods of job analysis are functional job analysis, the position analysis questionnaire, and the critical incident technique. Job analysis is useful for preparing job descriptions and job specifications which are the basis for most of the HR activities like recruitment, training, performance appraisal, industrial relations and wage and salary administration.

Job design determines the way in which work should be performed which, in turn, affects the degree of authority of an employee over the work; the scope of decision-making by the employee; the number of tasks an employee has to perform; and employee satisfaction. The main objectives of job design are to meet organization requirements such as higher productivity, operational efficiency and quality; and to simultaneously satisfy the psychological and sociological needs of the employees.

There are different approaches to job design – the engineering approach, the human relations approach, the job characteristics approach and the sociotechnical approach. An effectively designed job enhances employee productivity and satisfaction. Modern management has many job design options, which can transform monotonous and routine jobs into more challenging and motivating ones. Some of the popular job design options are job rotation, job enlargement and job enrichment.

Chapter 6 : Recruitment

Concept of Recruitment, Factors Affecting Recruitment, Organizational Factors, Environmental Factors, Recruitment Policy, Sources of Recruitment, Internal Search, External Sources, Need for Flexible and Proactive Recruitment Policy, Evaluation of Recruitment Program

Chapter Summary

Recruitment is the process of seeking and attracting the right kind of people to apply for a job in an organization. Recruitment in any organization is effected by various internal and external factors. Internal factors include the recruitment policy, time and cost constraints etc. External factors include the situation in the economy, the job market, the industry etc.

The recruitment policy of an organization effectively defines and determines the pattern, the sources and the methods of recruitment of the firm. A good recruitment policy is based on the organization's objectives, complies with the government policy, and results in successful placements in the organization at the minimum cost and time. It provides the basic framework in the form of guidelines, procedures and sources for recruitment.

A good recruitment policy has to be flexible and proactively respond to the changing market situations. There are various sources of recruitment available for an organization. The organization has to choose the most suitable ones depending on its recruitment needs and its recruitment policy. The different sources are internal sources (recruitment from within the organization) and external sources like campus recruitments, advertisements, employment agencies, etc.

The organization has to take into consideration the relevance and effectiveness of each source before selecting the sources for its recruitment program. Recruitment strategies, objectives, policies and the sources and methods need to be evaluated continuously to ensure their alignment with corporate strategies, objectives, and policies. The effectiveness and efficiency of the recruitment tools and sources can also be evaluated from time to time and changes made, to match the current and future recruitment needs of the organization.

Chapter 7 : Selection

Concept of Selection, The Selection Process, Selection Method Standards, Reliability, Validity, Generalizability, Utility, Legality, Application Forms, Evaluation of Application Forms, Ethical Issues in Application Form Design, Selection Tests, Intelligence Tests, Aptitude Tests, Achievement Tests, Situational Tests, Interest Tests, Personality Tests, Polygraph Tests, Graphology, Interviews, Preliminary Interview, Selection Interview, Decision Making Interview, The Interview Process, Preparation, Setting, Conduct of Interview, Choosing an Interview, Evaluation, Reference Checks, Medical Examinations, Placement

Chapter Summary

Selection is the process of evaluating the qualifications, experience, skill, knowledge, etc, of an applicant in relation to the requirements of the job to determine his suitability for the job. The selection procedure is concerned with securing relevant information from applicants and selecting the most suitable among them, based on an assessment of how successful the employee would be in the job, if he were placed in the vacant position.

The selection process has two basic objectives: (a) To predict which applicant would be the most successful if selected for the job, and (b) To sell the organization and the job to the right candidate. The selection process is based on the organizational objectives, the job specification and the recruitment policy of the organization. The various selection processes are initial screening, application forms, selection tests, group discussions, interviews and reference checks.

To facilitate a near accurate prediction of an applicant's success on the job, the selection methods should meet several generic standards of reliability, validity, generalizability, utility and legality. The application form is a formal record of an individual's application for employment. It is usually used in the preliminary screening of job applicants.

The filled-in application forms provide pertinent information about the individual and are used in the job interview and for reference checks to determine the applicant's suitability for employment. There are two methods of evaluating these forms – the clinical method and the weighted method. Selection tests, which are widely used, include intelligence tests, aptitude tests, achievement tests, situational tests, interest tests, and personality tests.

Interviews help managers to fill the gaps in the information obtained through the application blanks and tests. Interviews also enable the management to make an impact on the job applicant's view of the organization, apart from assessing his job-related behavior and attitude. Interviews may be classified as preliminary, selection and decision-making, based on their timing and purpose.

The process of interviewing consists of several steps such as preparation for the interview, ensuring a setting, and conducting, closing and evaluating. The selection process also uses background investigation or reference checks to check the authenticity of the information provided by the applicant. Finally, after an applicant is selected, the offer is made to him and on acceptance, the placement process starts.

Chapter 8: Socialization

Concept of Orientation- Objectives of Induction/Orientation, Role of Organizational Culture in Orientation, Roles, Values, Norms, The Process of Socialization, Assumptions, Model of Socialization Process, Different Socialization Strategies, Formal or Informal, Individual or Collective, Sequential or Non-sequential, Fixed or Variable, Tournament or Contest, Serial or Disjunctive, Investiture or Divestiture- Existing Employee Socialization

Chapter Summary

When new employees enter an organization they feel out of place because of the new surroundings, new boss and new co-workers. Hence, it is the responsibility of the management to orient the employees and to make the process of socialization smooth. This will ensure that the new employees adapt to the organizational culture as soon as possible. The process of adaptation is commonly termed induction or socialization.

The socialization process is not confined to employees entering new organizations. It is also important for employees moving within the organization as a result of lateral transfers and promotions. Orientation is only a small part of the overall socialization program. The process of orientation includes introduction of the new employee to the organization and to his work unit and supplementing the information given to him during recruitment and selection.

An organization's orientation program should make a new employee familiar with the organization's history, philosophy, objectives, procedures and rules. To understand the concept of socialization, a look at organization culture and its underlying concepts – roles, values, and norms – is necessary. A new employee, to fit into the organization, must understand the role he has to play in that particular job, the values of the organization that he has to uphold and the norms set by his peer group that he has to conform to.

The socialization process is based on some general assumptions. They are: The process of socialization has an influence on the performance of an employee; an effective socialization process ensures that a new employee fits well into the organization, socialization helps to handle new employee anxiety and the process of socialization requires the involvement of co-workers and the work environment. Socialization can be conceptualized as a process consisting of three stages – Pre-arrival, Encounter, and Metamorphosis.

The process of socialization affects the new employee's work productivity, commitment to the organization's objectives and his decision to stay with the organization. They are various alternatives that a manager can consider when designing effective socialization strategies. They are Formal or Informal, Individual or Collective, Sequential or Non-sequential, Fixed or Variable, Tournament or Contest, Serial or Disjunctive, Investiture or Divestiture Socialization Strategies. The human resource manager must consider the various alternatives and their influence while designing the appropriate program for the organization. Socialization is an ongoing process and should not be stopped after the initial orientation program. Given the changing business environment it is always important to equip employees with the right skills to perform effectively.

Chapter 10: Performance Appraisal

Concept of Performance Appraisal, Objectives of Performance Appraisal, The Appraisal Process, The Appraisers, Self Appraisal, Supervisors, Peers, Customers, Clients, Subordinates, Performance Appraisal Methods, Management by Objectives, Graphic Rating Method, Work Standards Approach, Essay Appraisal, Critical Incident Method, Forced Choice Rating Method, Point Allocation Method, Ranking Method, Checklist, Behaviorally Anchored Rating Scale, 360 Degree Performance Appraisal, Team Appraisals, Balanced Scorecards, The Appraisal Interview, Challenges of Appraisal Interview, Pitfalls in Performance Appraisal, Uses of Performance Appraisal, Ethics of Performance Appraisal

Chapter Summary

Performance appraisal measures the qualitative and quantitative aspects of job performance. An appraisal evaluates not only the employee's performance but also his potential for development. The primary objectives of an appraisal are – to assess past performance, to identify training needs, to set and agree on future objectives and standards, and to facilitate the achievement of these goals.

In many situations, the appraiser is the supervisor of the person who is to be rated. However, companies may also use multiple raters to evaluate performances (360 degree appraisal). Peer and self-evaluations are on the increase, as are customer or client evaluations. Some appraisal systems use subordinate or reverse appraisals and team rating techniques.

Different methods are used for appraising performance. In the straight ranking method, employees are ranked from the best to the worst on the basis of their performance. Management by Objectives involves an agreement between a superior and his employee on the employee's performance objectives for a specified period and a periodic review of the extent to which the employee is able to accomplish those objectives.

Under the graphic rating scale method, an employee's performance is rated on a scale ranging from high to low. In the checklist approach, the rate is given a set of positive or negative descriptive statements that best describe employee performance and characteristics. When weights are assigned to each of the items on the checklist, depending on the importance of each item, it is known as a weighted checklist.

In the essay method of appraisal, the appraiser writes an essay describing an employee's past performance, strengths, and weaknesses, potential and provides suggestions for future development. Under the critical incident method, the appraiser evaluates performance on the basis of a record of unusually favorable or unfavorable instances of the employee's performance.

The forced choice method is a kind of checklist, which requires the appraiser to rank the statements from the one that best describes the employee to the one that describes him least well. Weights (which are unknown to the appraiser) are attached to these statements, which help in evaluation. Under the point allocation method, the rater has to allocate a fixed number of points among all the employees in a group.

This method brings out the relative differences in the performance of employees. Each employee is compared with all the other employees in the same group in the paired comparison method. Among the modern methods, BARS or the Behaviorally Anchored Rating Scale has scale values attached to a group of anchors under each dimension and the employee is rated on the scale.

This system demands active participation of both the appraiser and the appraisee. The 360 degree appraisal method reduces subjectivity in that the individual is appraised by his peers, customers/clients and subordinates apart from the supervisor. The balanced scorecard method, which is being adopted by more and more corporate, helps align individual efforts to organizational goals and objectives.

The team appraisal system involves the appraisal of each team member by every other member of the team, to improve the overall effectiveness of the team. The appraisal interview is characterized by performance-related feedback which is intended to improve employee performance and promote development.

Some rater biases that impede objective evaluation are the halo effect, the error of central tendency, leniency and strictness biases, cultural bias, stereotyping, perceptual set, and the recency and primacy effects. Such biases can be reduced by providing suitable training and feedback to raters, and through proper selection of performance appraisal techniques. A performance appraisal system also acts as an audit and helps in revamping HR processes and systems for improved performance.

Chapter 11 : Employee Training and Management Development

Definition and Purpose of Training, Improving Employee Performance, Updating Employee Skills, Avoiding Managerial Obsolescence, Preparing for Promotion and Managerial Succession, Retaining and Motivating Employees, Creating an Efficient and Effective Organization, Assessing Training Needs, Areas of Training, Importance of Learning, Employee Training Methods, On-the-Job Training, Off-the-Job Training, Evaluation of the Training Programme, Training and Development, Concept of Management Development, Work Roles of Managers, Objectives of Management Development, Process of Management Development, Management Development Methods, On-the-Job Development Methods, Off-the-Job Development Methods, Evaluating a Management Development Programme

Chapter Summary

Training is defined as the systematic development of the knowledge, skills and attitudes required by an individual to perform a given task or job successfully. Training aims at improving the organization's performance through the enhanced performance of its employees. While training helps employees do their current jobs, development prepares individuals to handle future responsibilities.

The major purposes of training are improving employee performance, updating employee skills, avoiding managerial obsolescence, preparing for promotion and managerial succession, and satisfying personal growth needs. Training needs are determined based on the organization's and the employee's needs.

Organizations provide training to employees in the areas of company policies and procedures, specific skills, human relations, and managerial skills. Some organizations also provide apprentice training. There are two types of training methods - on-the-job and off-the-job. In on-the-job training methods, an employee is given training in the actual work situation, where he learns by doing and through direct experience.

Some of the on-the-job methods of training are job instruction training, apprenticeship and coaching, job rotation, and committee assignments. Off-the-job training refers to the training given to an employee away from the immediate work area. Here the employee focuses his attention upon learning from the trainer's lectures or through simulated exercises.

Off-the-job training methods include classroom lectures; various simulation exercises like case exercises, experiential exercises, computer modeling, vestibule training and role playing; and programmed instruction. Systematic evaluation of training activities helps in evaluating the success of the training program.

Training increases productivity, reduces the level of supervision required, reduces accidents related to work and increases organizational stability. Apart from training, an organization should also concentrate on management development. Management development is a systematic process of growth and development by which employees develop their skills and abilities to manage.

It is future oriented and is concerned with education of the employees. Management development improves a manager's ability to understand problems and arrive at solutions. It helps the manager in effective handling of his different work roles like planning, monitoring performance, communication and development. Management development programs are designed to meet specific objectives, which contribute to both employee and organizational effectiveness.

There are several steps in the process of management development. These include reviewing organizational objectives, evaluating the organization's current management resources, determining individual development needs, designing and implementing development programs, and finally, evaluating the effectiveness of these programs.

The two categories of development methods are on-the-job development, and off-the-job development. Some of the widely used on-the-job development methods are: coaching, job rotation, under study assignments and multiple management. Off-the-job development methods include simulation exercises, sensitivity training, transactional analysis, conferences and lectures. To ensure the success of the management development programs, they have to be evaluated from time to time.

Chapter 13: Occupational Safety and Health

Causes of Safety and Health Problems at the Work Place, Lack of Education and Training, Human Errors, Technical Errors, Psychological Problems, Occupational Hazards and Risks, Provisions to Prevent Accidents at the Work Place, Prerequisites for an Effective Safety and Health Policy, Accident Prevention in the Work Place, Stress and its Consequences on Employee Performance, Causes for Employee Stress, Handling Employee Stress, Avoiding Burnout, Challenges in the Service Sector, Importance of Ergonomics

Chapter Summary

Every year, a number of workers get injured or even lose their lives because of accidents at the workplace caused by the carelessness of the employer or the employee. It is important to identify the causes of accidents to prevent them from occurring in future. The main causes of accidents are lack of education and training, human errors, technical errors, psychological problems, occupational hazards and risks.

After identifying the causes of accidents, organization should take steps to prevent them. Education and training of employees plays an important role in understanding the causes of accidents and preventing them. Further, frequent inspections by the top management will enable them to know the practical problems being faced by the employees so that they can be tackled effectively.

This will also enable employees to air their grievances to the management as and when a problem arises. Another important aspect of preventing accidents is analyzing and tabulating the causes for accidents. This analysis will give a clear idea as to the location or situation of a large number of accidents and the steps that an organization should take to reduce these accidents.

Other measures to reduce accidents include conducting employee wellness programs, designing and conducting a well organized health program. Stress at the workplace is a serious concern in most organizations. A decrease in productivity and increase in abseentism results in huge losses for organizations. It is the responsibility of the employees as well as the organization to reduce stress at the workplace.

When stress reaches an alarming level, it results in burnout where an individual experiences excessive physical or mental exhaustion. It is important to diagnose an individual for stress before it reaches this alarming stage of burnout. In the present day service sectors like ITES, there are new health problems cropping up like the muscular-skeletal disorders (MSDs).

These disorders arise because of repeated use of the keyboard and the mouse. In India, companies do not recognize the seriousness of these problems. Hence it is high time that legislation is passed regarding occupational health in the service industries.

Chapter 14: Grievance Handling

Concept of Grievance, Causes of Grievance, Need for a Grievance Redressal Procedure, Effective Grievance Redressal, Steps in a Grievance Redressal Procedure, Grievance Redressal Procedure in Unionized Organizations, Legislative Aspects of the Grievance Redressal Procedure in India, Conflict Resolution

Chapter Summary

A grievance is a sign of an employee's discontentment with his job or his relationship with his colleagues. Grievances generally arise out of the day-to-day working relations in an organization. An employee or a trade union protests against an act or policy of the management that they consider as violating employee's rights.

One of the effective ways of minimizing and eliminating the source of an employee's grievance is by having an ‘open door policy'. An ‘open door policy'facilitates upward communication in the organization where employees can walk into a superiors'cabin at any time and express their grievances. The National Commission on Labor suggested a Model Grievance Procedure, which lays down the sequence of steps to be taken whenever a grievance is expressed.

Conflict occurs when two or more people or parties perceive an incompatibility in their goals or expectations. There are seven methods for achieving reconciliation of conflict. These methods are win-lose, withdrawal and retreat from argument, smoothing and playing down the difference, arbitration, mediation, compromise and problem solving. Of all these methods ‘problem-solving'method is most likely to bring about a win-win situation.

Chapter 15 : Disciplinary Action

Definition and Concept of Discipline, Aims and Objectives of Discipline, Forms and Types of Discipline, Acts of Indiscipline or Misconduct, Principles of Maintaining Discipline, Mc Gregor's Red Hot Stove Rule, Disciplinary Procedure, Approaches to Discipline, Preventive Discipline, Positive Discipline, Disciplinary Actions, Verbal Warning, Written Warning, Suspension, Demotion, Pay cut, Dismissal, Code of Discipline in Indian Industry, Industrial Employment Standing Orders Act, 1946

Chapter Summary

Some employees, regardless of an organization's efforts at selection, socialization, job design, performance standards and reward practices, create discipline problems for the management. Handling these discipline problems is a sensitive and challenging task for a human resource manager.

Employees of an organization are expected to conduct themselves in accordance with the organization's rules and standards of acceptable behavior. Employees who cannot be motivated to maintain such discipline require some degree of extrinsic disciplinary action. The primary objective of disciplinary procedure is to motivate an employee to conform to the organization's performance standards.

The disciplinary problems faced by the HR managers can be classified into four categories – attendance, on-the-job behavior, dishonesty, and off-the-job behavior. There are three approaches – incorrect discipline, preventive discipline, and positive discipline – to discipline the employees. One effective way to approach the disciplinary process is to follow the Red Hot Stove Rule, which suggests that administering discipline is more like touching a hot stove.

The various disciplinary actions that are administered are verbal warning, written warning, suspension, pay cut, demotion, and dismissal. The severity of the disciplinary action should be in accordance with the severity of the misconduct. The Government of India enacted the Industrial Employment Standing Orders Act in 1946 to ensure uniform and stable conditions of employment.

Chapter 18: Quality of Work Life

Definition and concept of Quality of Work Life, Methods to Improve QWL, Flextime, Flexiplace, Alternative Work Schedules, Part-time Employment, Compressed Work Week, Job Enrichment, Job Rotation, Job Enlargement, Autonomous Work Groups / Self-managed Teams, Socio-Technical Systems, Benefits of QWL Programs, Challenges in Implementing QWL Programs.

Chapter Summary

Quality of work life (QWL) is viewed as an alternative to the control approach of managing people. The QWL approach considers people as an ‘asset'to the organization rather than as ‘costs'. It believes that people perform better when they are allowed to participate in managing their work and make decisions.

This approach motivates people by satisfying not only their economic needs but also their social and psychological ones. To satisfy the new generation workforce, organizations need to concentrate on job designs and organization of work. Further, today's workforce is realizing the importance of relationships and is trying to strike a balance between career and personal lives.

Successful organizations support and provide facilities to their people to help them to balance the scales. In this process, organizations are coming up with new and innovative ideas to improve the quality of work and quality of work life of every individual in the organization. Various programs like flex time, alternative work schedules, compressed work weeks, telecommuting etc., are being adopted by these organizations.

Technological advances further help organizations to implement these programs successfully. Organizations are enjoying the fruits of implementing QWL programs in the form of increased productivity, and an efficient, satisfied, and committed workforce which aims to achieve organizational objectives. The future work world will also have more women entrepreneurs and they will encourage and adopt QWL programs.

Recruting - The Cisco way

2009-11-06T12:06:00.000-08:00

Abstract:

The case examines various changes brought about by global networking major, Cisco, in its recruitment policies in the mid-1990s. It details the various tools adopted by the company to attract the best talent and examines how the company benefited from them. The case also discusses the emergence of e-recruitment as a strategic tool for IT companies in the changing business environment.

Issues:

» Importance of human resources in the information technology industry and the issues involved in recruiting and retaining them

Key Words:

Global, networking, major, Cisco, recruitment policies, mid-1990, best talent, emergence, e-recruitment, strategic tool, IT companies, business environment

"Our philosophy is very simple - if you get the best people in the industry to fit into your culture and you motivate them properly, then you're going to be an industry leader."

- John Chambers, CEO, Cisco Systems, in September 1997.

Introduction

In 1995, global networking major, Cisco, found that despite hiring an average of 1,000 people every three months during the year, the company still had hundreds of openings. The recruitment pressure further increased the following year, when Cisco hired more than 1,000 employees every quarter - around 10% of the total jobs generated through the Internet in Silicon Valley ¹. When Cisco's sales soared to $ 6.4 billion in fiscal 1997 and profits to $ 1.4 billion, (a 53% increase over the previous year), the company had to double its workforce and at the same time hire the best people. The Cisco management realized that it had to adopt innovative recruitment measures to get the best people and remain the leader in the Internet era.

Foremost among these was the first of its kind online recruitment called the 'Friends program'. Michael McNeal, Director, Corporate Employment said, "Friends is designed to put some grace into the hiring process." Cisco recruiters also began to target passive job seekers, who were content and successful in their existing jobs.

Analysts said that Cisco had maintained its lead in the global infotech industry, largely due to its streamlined and modernized recruitment policies.

In 2001, the company recruited around 40-50% of its employees through 'Make a friend@Cisco' online program and other such initiatives

Background Note

Cisco was founded in 1984 by a group of computer scientists at Stanford, who designed an operating software called IOS (Internet Operating System).

This software could send streams of data from one computer to another, which was loaded into box containing microprocessors specially designed for routing. This machine, called the router, made Cisco a hugely successful venture over the next two decades (Refer Table I for Cisco's growth).

In 1985, the company started a customer support site from where customers could download software over FTP ² and also upgrade the downloaded software. It also provided technical support to its customers through emails. In 1990, Cisco installed a bug report database in its site. The database contained information about potential software problems to help customers and developers.

It allowed customers to know whether a specific problem was unique and if not how other customers had solved it.

By 1991, Cisco's support centre was receiving around 3,000 calls a month which increased to 12,000 by 1992. To deal with the large volume of transactions, it built an online customer support system on its site.

In 1993, Cisco installed an Internet-based system for large multinational corporate customers. The system allowed customers to post queries related to their problems. Cisco also installed a trigger function called the Bug Alert on its web site. The Bug Alert sent emails on software problems within 24 hours of their discovery

Encouraged by the success of its customer support site in 1994, Cisco launched Cisco Information Online, a public website that offered not only company and product information but also technical and customer support to customers. By 1995, it introduced applications for selling products or services on its website.

This was done mainly to transfer paper, fax, emails and CD-ROM distribution of technical documentations and training materials to the web to save time for employees, customers and trading partners, besides broadening Cisco's market reach.

In 1996, the company introduced a new Internet initiative, 'Networked Strategy' to leverage its enterprise network to foster interactive relationships with prospective customers, partners, suppliers and employees..

Recruitment at Cisco

Cisco sources revealed that the company had a policy of attracting the 'top 10-15%' people in the networking industry. It believed that if it could get the best people in the industry and retain them, it would remain the industry leader. According to Cisco's vision statement, "Attracting, growing and retaining great talent is critical to sustaining Cisco's competitive advantage."

Thus, effective recruitment was used as a powerful strategic weapon by the company. The company began to use revolutionary techniques like the 'build-the-buzz' strategy, which was centered on the primary market for its products, i.e. the Internet.

Cisco's recruiting team identified the candidates whom they felt the company 'should hire,' and then figured out the way those potential candidates did their job hunting and designed hiring processes to attract them to the company.

Cisco recruiters targeted even passive job seekers - people who were happy and successful in their current jobs. Barbara Beck (Beck), Vice President, Human Resources said, "The top 10% are not typically found in the first round of layoffs from other companies, and they usually aren't cruising through the want ads." Since the most sought after employees were not accessible, Cisco deviced a strategy to lure them.

As part of its strategy to attract the best talent, Cisco changed the way it used wanted advertisements in newspapers...

Reaping the Benefits

Cisco believed that its new recruitment philosophy should also be made a part of the overall corporate culture. By late 1999, Cisco's job page was recording around 500,000 hits per month. The company generated a stream of reports about who visited the site and fine-tuned its strategy accordingly. By the time the new recruitment initiatives were established, Cisco, which was hiring approximately 8,000 people a year, received 81% of the resumes were from the web. Eventually, 66% of the new recruitments were from the candidates who had sent their resumes through the Cisco website.

It was also reported that about 45% of company's new recruits came from the Amazing People program...

Exhibit

Exhibit I: The Need for a New Approach towards Recruitment

RIM Vs Motorola: Talent Poaching and the Question of Ethics

2009-11-04T11:48:00.000-08:00

In December 2008, Research in Motion Ltd. (RIM) sued Motorola Inc. (Motorola) for, what it called; illegally preventing it from hiring employees that Motorola had laid off. According to RIM, the two companies had entered into an agreement in February 2008 on not hiring each other's employees or the newly separated ex-employees. When Motorola announced lay offs in large numbers, RIM, attempted to hire and gain some engineers at a lower cost. RIM considered that the agreement had expired in August 2008 and prayed to the Chicago court for damages.

RIM contended that despite the agreement having expired, Motorola had unlawfully extended the contract and prevented RIM from offering jobs to the fired Motorola employees.

RIM, well-known as the BlackBerry mobile phone maker, was established in Ontario, Canada, in 1984. With offices throughout North America, Europe, and the Asia Pacific,¹ it is one of the leading wireless manufacturers, designing, manufacturing, and marketing its products worldwide.

The company provides access to information through email, phone, text messaging, the internet and intranet-based applications using its integrated wireless hardware and software. RIM technology also supports numerous other manufacturers and developers with their wireless connections to improve their products and services.

Motorola is headquartered in Schaumburg, Illinois, USA, and has been in the communication inventions and innovations business for almost 80 years as of 2008.

Some of its key achievements include the construction of the device that transmitted the first message from the moon and also the creation of the first handheld portable cellular phone called DynaTAC (DYNamic Total Area Coverage) which created a revolution in cellular communication. Motorola was the pioneer in launching the 'push-to-talk' technology. It also launched the first all-digital high definition television (HDTV).

Motorola's range of products and services include wireless handsets and accessories, digital equipment for entertainment purposes, voice and data communication systems, wireless access systems, and enterprise mobility solutions.

Motorola and RIM had always been adversaries in selling high end mobile phone handsets which contained features like e-mail and internet access, music players, or cameras. While RIM continued to expand, developing compact and slender handsets, Motorola had been facing hard times since the mid-2000s.

Its market position fell to number 3 behind Samsung at number 2 and Nokia at number 1 in 2008.³ In February 2008, RIM and Motorola entered into a mutual agreement wherein they agreed to exchange confidential information and to avoid poaching each other's employees. Experts felt that the agreement was mainly aimed at ensuring that employees did not move away to a competitor carrying with them vital information and trade secrets.

However, in September 2008, Motorola sued RIM on the grounds of poaching 40 of its employees in Florida since the beginning of the year and claimed US$50,000 as compensation

The company attached copies of emails sent to its employees by RIM as part of the evidence filed in court. Motorola had also taken legal action against RIM in early 2008 for allegedly violating seven US patents on mobile-communication technology. RIM counter-sued Motorola for "anti-competitive conduct"and for claiming "unreasonable"royalties on patents that Motorola owned and RIM licensed.

In December 2008, RIM sued Motorola for preventing it from hiring employees fired by Motorola.

RIM claimed that the agreement that the two companies, inked in early 2008, had expired in August 2008 and requested the court to nullify the agreement. The company also claimed damages from Motorola for adopting what it called, unethical ways.

RIM mentioned in the lawsuit that while it continued to grow and hire new employees both in the US and worldwide, Motorola had publicly announced its intentions to lay off in large numbers.

Motorola had announced that it would be cutting executive pays and employee benefits in order to control the company's expenses as its handset division had incurred a loss of almost US$2.8 billion since the beginning of 2007

By the end of 2008, Motorola had fired over 3,000 employees and these employees were reportedly having a tough time finding a new job because of the company's nondisclosure agreements with its competitors

The lawsuits brought to the fore the long-standing debate on talent poaching and the inter-related ethical concerns. Some experts saw nothing wrong in a company hiring from its competitors. For instance, Dr. John Sullivan of Dr. John Sullivan and Associates, author, speaker, corporate advisor, and educator, said that poaching employees was not illegal because employees were not 'owned' to begin with.

Poaching had become a global phenomenon and was practiced extensively in several countries. The benefits of poaching, according to him, were getting currently employed, well trained, and high caliber employees as opposed to hiring from non-competitors who were inexperienced, or did not have the relevant experience which would increase training costs.

Rather than blame other companies, employers should provide their employees with better opportunities that would prevent them from moving to different positions, he contended

But there were others who felt that poaching was unethical. Companies too identified it as a key concern and were resorting increasingly to lawsuits to discourage this practice. According to the National Law Journal ⁸, there had been a steep increase in poaching lawsuits in all sectors including IT and banking in 2008.

According to Peter A. Steinmeyer, a partner in the Chicago office of Epstein Becker & Green, "Employers are especially concerned about departing employees taking trade secrets with them. They never want their top performers to go out the door. But in terms of what's driving the litigation, it's a desire to protect confidential information and trade secrets

However, there were others who wondered whether it was ethical for companies such as Motorola, which had already failed to protect the jobs of its employees due to certain business constraints, to insist on their employees not taking up a job with their competitors.

References & Suggested Readings

1. "RIM, Motorola Battle on Mobile Patents,"www.cioinsight.com, February 19, 2008.

2. John Sullivan, "Aggressive Talent Poaching in Bathrooms and Parking Lots,"www.ere.net, February 25, 2008.

3. "Motorola Sues RIM Over Poaching Charges,"www.telecomtiger.com, September 9, 2008

4. Tresa Baldas, "Poaching Lawsuits Aim to Stifle Talent Raids,"www.law.com, November 24, 2008.

5. "RIM and Motorola Battle it out Over an Expired Agreement,"www.phonearena.com, December 27, 2008

6. Marin Perez, "RIM Takes Motorola To Court Over Jobs,"www.informationweek.com, December 29, 2008

7. www.rim.com

www.motorola.com

Coca-Cola's corporate social responsibility (CSR) initiatives in India

2009-11-02T09:53:00.000-08:00

Abstract:

This case is about Coca-Cola's corporate social responsibility (CSR) initiatives in India. It details the activities taken up by Coca-Cola India's management and employees to contribute to the society and community in which the company operates.

Coca-Cola India being one of the largest beverage companies in India, realized that CSR had to be an integral part of its corporate agenda. According to the company, it was aware of the environmental, social, and economic impact caused by a business of its scale and therefore it had decided to implement a wide range of initiatives to improve the quality of life of its customers, the workforce, and society at large.

However, the company came in for severe criticism from activists and environmental experts who charged it with depleting groundwater resources in the areas in which its bottling plants were located, thereby affecting the livelihood of poor farmers, dumping toxic and hazardous waste materials near its bottling facilities, and discharging waste water into the agricultural lands of farmers. Moreover, its allegedly unethical business practices in developing countries led to its becoming one of the most boycotted companies in the world.

Notwithstanding the criticisms, the company continued to champion various initiatives such as rainwater harvesting, restoring groundwater resources, going in for sustainable packaging and recycling, and serving the communities where it operated. Coca-Cola planned to become water neutral in India by 2009 as part of its global strategy of achieving water neutrality. However, criticism against the company refused to die down. Critics felt that Coca-Cola was spending millions of dollars to project a 'green' and 'environment-friendly' image of itself, while failing to make any change in its operations. They said this was an attempt at greenwashing as Coca-Cola's business practices in India had tarnished its brand image not only in India but also globally. The case discusses the likely challenges for Coca-Cola India as it prepares to implement its new CSR strategy in the country.

Issues:

· Analyze the CSR strategy adopted by Coca-Cola India.

· Understand the issues and challenges faced by Coca-Cola with regard to its sustainability initiatives in India.

· Analyze the underlying reasons for the growing criticism against Coca-Cola in India and explore ways in which the company can address this issue.

· Understand the concept of green washing and discuss and debate whether Coca-Cola is serious about its water sustainability initiatives.

Keywords:

Corporate social responsibility strategy, Environmental responsibility, Economic responsibility, Sustainability, Water sustainability, Water neutral, Water efficiency, 5 pillar growth strategy, Stakeholder tension, Operations, Green washing

"Coca-Cola India undertakes a diverse range of activities for the benefit of the community across the country. As part of our CSR strategy, sustainable water management remains our top priority."

Deepak Kaul, Regional Vice-President, South, The Hindustan Coca-Cola Beverages Pvt. Ltd., in 2007.

"It is in India where the company's abuses of water resources have been challenged vociferously, and communities across India living around Coca-Cola's bottling plants have organized in large numbers to demand an end to the mismanagement of water…. In response to the growing Indian campaigns against Coca-Cola, the company has decided to promote rainwater harvesting — a traditional Indian practice — in and around its bottling plants in India. Touting rainwater harvesting initiatives is now central to Coca-Cola's public relations strategy in India."

- Amit Srivastava, Coordinator of India Resource Center, in 2007.

Introduction

On February 18, 2008, leading beverage company in India, The Hindustan Coca-Cola Beverages Pvt. Ltd (Coca-Cola India), was awarded the Golden Peacock award ⁴ for Corporate Social Responsibility (CSR) for the several community initiatives it had taken and its efforts toward conservation of water. The award recognizes companies for their commitment toward business, their employees, local communities, and the society. Atul Singh (Singh), CEO, Coca-Cola India, said, "Coca-Cola India has always placed high value on good citizenship and has undertaken several initiatives for community development and inclusive growth.

We are gratified to receive this global award and are humbled at being recognized for the little contributions that we have been able to make to preserve and protect the environment and toward community development."⁵

Coca-Cola India was established as the Indian subsidiary of the US-based Coca-Cola Company (Coca-Cola) in 1993. As of 2008, Coca-Cola India had 24 bottling operations of its own and 25 bottling operations owned by its franchisees.⁶ In addition to beverage brands like Coke, Fanta, Sprite, etc., Coca-Cola India had a strong local cola brand Thums Up, the Kinley brand of mineral water, energy drinks, and powdered concentrates.

Keeping in mind the fact that it was one of the largest beverage companies in India, Coca-Cola India said it had made CSR an integral part of its corporate agenda.

According to the company, it was aware of the environmental, social, and economic impact caused by a business of its scale and therefore it had taken up a wide range of initiatives to improve the quality of life of its customers, the workforce, and society at large.

Since the company used large amounts of water and energy in its beverage production and tons of packaging material for its products, it had taken up several initiatives to act as a responsible company and reduce its environmental impact, it said. In addition to water, energy, and sustainable packaging, Coca-Cola India also focused on several community initiatives in India as part of its social responsibility initiatives...

Background Note

The Coca-Cola drink, popularly referred to as 'Coke', is a kind of cola, a sweet carbonated drink containing caramel and other flavoring agents. It was invented by Dr. John Smith Pemberton (Pemberton) on May 8, 1886, at Atlanta, Georgia, in USA. The beverage was named Coca-Cola because at that time it contained extracts of Coca leaves and Kola nuts.

Pemberton later sold the business to a group of businessmen, one of whom was Griggs Candler (Candler). By 1888, several cola brands were in the market competing against each other. Candler acquired these businesses from the other businessmen and established Coca-Cola in 1892...

Corporate Social Responsibility Initiatives in India Environmental Responsibility Initiatives

Environmental responsibility was a key aspect of Coca-Cola India's CSR initiatives. Since Coca-Cola India was involved in beverage production, its operations affected the environment in many ways such as through excessive levels of water consumption, wastewater discharge, high energy consumption, discharge of effluents, and greenhouse gas (GHG) emissions due to the use of refrigeration, vending machines, air conditioning equipment, etc...

The 5 Pillar Growth Strategy

In August 2007, Coca-Cola India launched a 5 pillar growth strategy to strengthen its relationship with India...

Criticisms

Though Coca-Cola India claimed that it had taken several such efforts, it continued to attract criticism from several quarters. The company was censured for depleting groundwater tables, leaving the local communities with no access to drinking water and water for farming which was their primary source of income...

Coca-Cola India's Response

Coca-Cola opened an exclusive website, www.cokefacts.org, which addressed the allegations related to India and other countries. In another official statement, Coca-Cola rebutted the charges against its bottling plant at Plachimada, Kerala.

The company said the plant was not responsible for the depletion of the underground water table. It quoted a study conducted in October 2002 by Dr. R.N. Athvale, emeritus scientist at the National Geophysical Research Institute (NGRI), which had concluded that there was no field evidence of overexploitation of the groundwater reserves in the area surrounding the plant...

Outlook

As of February 2008, Coca-Cola India had carried out its CSR activities across 45 bottling plants at an annual spend of Rs. 40 to 50 million on activities such as water conservation management, health, and education. By February 2008, the company had installed around 350 rainwater harvesting projects in several states of India...

Exhibits

Exhibit I: Criticisms against Coca-Cola India
Exhibit II: Coca-Cola's Global Water Conversation Goals
Exhibit III: Coca-Cola's Global Community Watershed Program
Exhibit IV: Coca-Cola India's 5 Pillar Growth Strategy
Exhibit V: A Photograph of Mass Demonstration against Coca-Cola at Mehdiganj
on March 30, 2008
Exhibit VI: List of Awards and Recognition Received by Coca-Cola India
Exhibit VII: Print Ad of Coca-Cola India's 'Little Drops of Joy' Communication Campaign

2009-10-30T09:57:00.000-07:00

Hey.. guys...

Time is running and now its almost a month to get ready for the exam and get a good score.I am planing to arrange some group studies sessions and I would appreciate if you guys seriously consider it. For this motive, We have sent messages through facebook group members. Unfortunately only few has shown interest or reply back. Hurry.. its time to get up and do something and help each other. Some of our mates are having difficulty with some of the subjects and topics etc. Therefore, let's work like a team and show our potential to our teachers, specially Zeeniya miss has always been doubtful about us.

Those who wanna join the group studies please respond back via our group or sms texts. If we get more than six, we will split into groups depending on numbers, coz it won't be very practical having too many at a time in a same group. For an instance, Those who need help in QM will be allocated along with who are having a fair knowledge or claimed to be masters.

Hope to hear from you.

have a nice day...

On behalf of clique38 group in facebook.

Tutorial – 2 (Unit -2)

2009-09-16T05:13:00.000-07:00

1- (a) Ethics is important in companies today. Discuss the factors that have encouraged businesses to be more ethical and give examples of ethical managerial behavior?

(b) ‘Whistle blowing policies are necessary requirement in ethical business today.’ Discuss this statement.

(a) Ethics is important in companies today and there are factors that have encourage the companies to behave ethically. They are;

- Legislations: Due to various legislations exists, the companies are force to behave in an ethical manner, such as employment act, consumer protection act. These legislations prohibit the exploitation of its employees and consumers. In other words the companies are expected to behave ethically in order to make them satisfy.

- Financial Loss: In today’s competitive business environment, the companies must reduce or minimize their costs in order to avoid a financial loss. For an example, wages, fuel and also it is equally essential for the companies to reduce the social costs such as environmental pollution.

- Pressure Groups: Pressure groups, such as NGO’s, CBO’s and various other community based organizations are likely to put pressure on the companies if the companies are not behaving ethically towards the community or the general public as whole. For an instance, Green Piece led a campaign against Shell for trying to dispose an oil platform by sinking into the North Atlantic Ocean.

- Consumers may boycott: Consumers are likely to boycott the organizations products if they are not behaving ethically or if the organizations are irresponsible towards consumers. For an instance, Nike products were boycotted in the western countries for using child labor in third world countries like Cambodia and Pakistan to produce their products.

- Demand for certain practice to follow by some of the entities, encourage the organizations to be careful on production process of their products. For an instance, the Body Shop produce environmental friendly products recycle the containers and they do not test on animals. Another example is Corporate banks do not lend loans to those who violate the human rights. In return this will give them a competitive advantage over their competitors.

Employees and managers are expected to behave ethically. Ethical considerations focus on individual managers behaving an honorable way. These are many management activities that a manager to behave in either in ethical or unethical manner. For an instance, if the performance of a subordinate is unsatisfactory and the ethical behavior of the manager would be to tell the subordinate and help him to improve. The unethical approach would be to let the situation deteriorate and finally laying of the employee. Another example is if a staff does something really good and innovative, the ethical approach is to encourage the staff and reward him. The unethical approach would be to taking credit from the effort made him.

(b) ‘Whistle blowing policies are necessary requirement in ethical business today.’ Discuss this statement.

Whistle blowing is an employee or a former employee reports illegal or perceived to be illegal activities going on his/her organization to the general public or to the government. In some cases, an internal wrong doing or perceived to be wrong reports to the employer by an employee. For an instance, fraud, health and safety violation, corruptions etc.

One famous whistle blower is Jeffery Wigand, who exposed the big tobacco scandal, revealing that executives of the companies knew that cigarette were addictive and approved the addition of carcinogenic ingredients to the cigarette.

Whistle blowers are likely to face punishments, such as termination, suspension, demotion, variation of wage and harsh harassment from the employees. For this reason legal protection for whistle blowing is essential and it may defer from country to country. In the United Kingdom, the Public Interest Disclosure Act 1998 protects whistle blower from victimization.

However, there are cases for and against the whistle blowing. Those who agree or support case for the whistle blowing argue that, the employees has moral duty not just his/her work and immediate boss, but also to the company and public at large. It is also said that, if a person sees a wrong, there may be other things happening which are unacceptable and it might be the tip of the ice-berg. If the unacceptable behavior is allowed, others will think that they also can get away with same thing. Many whistle blowers act in belief that the wrong doer’s colleague will be pleased to hear the information and will act on it. While some consider that conscience is far more essential than the job security and they will blow the whistle irrespective of personnel consequences. Sometimes whistle blowing is statuary responsibility and a good example is policy on health and safety at work.

Those who disagree or the case against believes that, employees should concentrate on doing their jobs and that the actions of others are nothing to do with them because the situation may be misinterpreted and what may be seen as a breach of contract may turn out to be perfectly legitimate. Some are reluctant to blow the whistle due to a ‘snitching’ mentality and it is considered bad to talk tales on others. They also argue that the actions of others are none of the concern of the employee. If there is something wrong, let others find it out for themselves.

2- Corporate Social Responsibility (CSR) is increasingly important and the stakeholder approach is popular.

(a) Explain what is meant by stakeholder approach to CSR?

Corporate Social Responsibility (CSR) is about how organizations carry out their business activities in an ethical way by ensuring that their actions do not harm the economy, society and environment. It is also essential not to violate human rights. The organizations are expected to be socially responsible or behave like a good citizen.

There are different views regarding whether the organizations should become socially responsible. One of the views is that stakeholder view, meaning that the organization have obligations to satisfy the need of all the stakeholders in its business processes. Stakeholders are individual or a group of people who are around affects due to the organizational activities. For an example, owners/shareholders, employees, customers, suppliers, competitors, Government and local community. Each of these groups has different objectives and the organization must make an attempt to satisfy each of these groups.

Organizations are expected to treat all its stakeholders ethically, such that customers should be given good value and safe products. Similarly, the employees will always demand for equal treatment and fairness and suppliers will also demand them to be paid on time in order to stay them with the business. It is obvious that the owners/shareholders will expect a good return on their investment. It is equally essential that the community should not be harmed.

However, Alternative view is one of the views on Corporate Social Responsibility and theorists such as Milton Friedman (1970) view that a business responsibility is to its shareholders. Under this view, activities that increase shareholders dividend should be encourage far more than anything else.

The subject of Corporate Social Responsibility (CSR) is much to criticism and it is divided into groups. People who support the case for CSR believe that an organization can benefit in multiple ways by operating the business short-term preference than a longer and broader perspective.

- Stakeholder theory: Businesses have a moral duties not only just obeying the law and serving the interest of its owners but rather they believe that the business have its moral responsibilities to its stakeholders.

- Enlighten self-interest: Customers, supplier, employees can be encouraged to be loyal to the organization by behaving ethically towards them. It also can help to retain them and ultimately it benefits the company.

- Government and charities do not have sufficient resources to meet all community needs. Therefore, if the firms do not help in these efforts, there is every possibility that these needs may not be fulfilled or delivered.

Friedman (1970) argued that the organization’s main purpose should be to maximize its profit and returns to its shareholders. If not it could be seen as unethical to consider the interests and rights of anyone else.

- Some firmly believe that the organization should obey the laws of the countries within which they operate and at the same time they do not believe that organization have no other obligation to society.

- Some argue that the tax paid by the businesses is used for the social purpose and thereby the businesses do not have any further role to play in it. And also the so called good work is taking care of government, NGO’s and charities. While others argue that CSR is just a cover in order to create a better company image.

Some examples of CSR program conducted by business are;

- Donations to charities

- Setting up educational facilities for children

- Promote healthy life styles along with its activities. (Example Dhiraagu broad band road race)

(b) If a company discovers a one – in – million possibility that a product might cause harm to a small proportion of its users, is it more ethical to withdraw the product and downsize the business with a loss of 200 jobs, including yours – or to set out replace the product within a year and keep employees in work?

Explain your answer.

Organizations, managers and employees face situation where difficult to come up with a decision. In such circumstances, most organizations make decision upon one of four basic beliefs. They are Denotology, which the organization has responsibility to act in ways that respect very fundamental rights of human being, Utilitarianism, businesses should serve the greater good of greater number. Teleology, which, the end justifies the means; irrespective of the damage that is caused to people on the way to utopia. Egoism, the moral behavior should be considered in terms of personnel self interest.

In this case even if there a minutest chance of harming a customer, I would advise the board of directors to withdraw the product and downsize the business laying off 200 employees including mine. Because, I firmly believe that the organizations should behave in an ethical manner towards its stakeholders. Suppose, if the company decides on opposite way and if I were that unlucky person who happened to suffer due to the unethical behavior of the company, what would be my feelings and reactions. Definitely, I would challenge legally and demand for compensations for the damages that have caused to me. Similarly, if it happens to someone else the reactions would be most probably same.

In such cases, the company has to spend a lot of money on legal issues, compensation if guilty proven and finally have to withdraw the product from the market. These will in return the company have to lay-off those 200 employees and redundancy payments should be made. Further, the company has to rebrand its product of have to hire a good public relations firm (PR firm) to reclaim their image.

Suppose if the company simply decided to withdraw the product and do all necessary things like paying redundancies to those employees that have laid-off. Then, the company is not likely to face such complications. In this case only the company has to think about is survival and they can convince the employees that there is no way other than laying-off them. By that time they could come up with a good PR policy and re-launch the product.

3- Your company has a strict code of ethics which follows the Institute of Business Ethics’ three principal guidelines:

(1) Transparency – DO I mind others knowing what I have decided?

(2) Effect – What is the impact of my decision on others?

(3) Fairness – Would those affected consider my decision to be fair?

You – as HR manager – here that your best friend, the Sales Manager, has agreed with a competitor to fix prices and stabilize market share so as to avoid otherwise inevitable redundancies.

(a) Bearing in mind these guidelines, outline what you would say to:

(i) Your best friend, the Sales Manager

As far as the company’s code of ethics is concerned, it is unethical to involve with other competitor to fix price and stabilize the market and it cannot be accepted. It is obvious that it is not his duty to bother, especially redundancy issues are something that the HR manager has to deal with. Further, it is very unhealthy to get involve fixing price with a competitor. Because the business expect fair completion from their rival competitors and it is unethical towards the stakeholders, such as consumers are left without a reasonable and competitive price. Ethical managerial behavior benefits the companies in many ways and he must face the consequences.

Therefore, I have no choice but to inform my superiors about the issue and the verdict would be theirs.

(ii) Your boss, the HR director

As HR manager, it is my duty and responsibility to deal with the company’s HR related issues. In this case, my best friend, the Sales Manager has committed a business sin by violating the company’s code of ethics. So I have no choice but to inform my boss about the wrongdoing and would recommend him not to compromise at all. Because he does that other staffs will feel that they also can get away with the similar attitudes and at the end there will be mercy for them. Also it can harm the business in many ways.

(iii) The employees you will dismiss if the matter is dealt with according to the company’s ethical code

Usually, laying-off employees are big and difficult decision to consider by HR professionals. But when a situation arises where you fear you cannot satisfy them by giving their salaries and allowances, and then there is no way other than laying-off them by giving them redundancy payments required by the legislation. Likewise, I as a HR manager, I will explain them the situation and will inform them by following all necessary procedures that there is no way but I have to take the difficult decision in order to survive the business.

4- Your Chief Executive is very interested in diversity and how it can promote organizational effectiveness. She wants the following information:

(a) Outline the main differences between equality at work and diversity.

Equal Employment Opportunity (EEO) is a concept that all individuals should be given equal treatment in all employment related activities, regardless of once faith, race, gender, and disability etc. In any society you will find certain groups of people are discriminated just for whom and which groups they are belongs to. These discriminatory actions are due to who they have to deal rather than a problem of a victim of the discrimination. In UK there is a legislation which prohibits the discrimination.

Diversity means feature of a mixed workforce that provides a wide range of abilities, experience, knowledge, and strengths due to its heterogeneity in age, background, ethnicity, physical abilities, political and religious beliefs, sex and other attributes. Often diversity can be a competent advantage for the organizations that provides equal opportunity and in facts this has led to more diversity movements.

(b) Describe the forms that diversity can take.

Diversity is differences among the people such as age, sex, race, different abilities, culture and work style etc. Often these differences are an advantage to the organization.

Most organizations today are trying to have some form of statement to integrate Equal Employment Opportunity and diversity. This is simply to make sure that equal and fair treatment is given to all the employees. Such policy includes, intention of not to discriminate anyone and effectively dealing with grievances arising from unfair treatment. In most organizations, these policies are given or make accessible to all employees.

Diversity management effort or program may include;

1- Diversity training: This is for managers and employees and the training may include awareness programs like legal implications of discriminations and cultural awareness to them understand difference in people and accept those differences.

2- Effort to break the glass: In an effort to find the best potential of the employees, the organizations may provide career rotation opportunities into sales, operations and marketing etc, and provide flexible-time and Tele-working.

3- Attract and retain the talents of older workers, organization may rehire retirees as part of time workers, independent consultants.

4- Make reasonable accommodation to hire disabled people: Organization may make reasonable accommodation in several areas. One is that they may eliminate architectural barriers that prohibit disabled people access to work areas or rest rooms. Another one is they may modify jobs, working area layout, work schedule or special equipment.

5- Managing religious diversity: Organization may have clear non-discriminatory policies on appearance of the person, while others have holiday swapping. For an example; Christian employees work during ramazan and muslim employees during Christian.

(c) Explain the benefits that promotion of diversity can bring to an organization.

Diversity management is full utilization of people with different backgrounds and experiences. Effective diversity management strategy has a positive effect on cost reduction, creativity, problem solving, and organizational flexibility.

The principles of diversity management is to establish a business strategy effectively managing a diverse workforce in order to create a positive working environment, promoting personnel and professional development, empowering all people to reach their full potential and removing the barriers that hinder their progress.

Potential benefits of an effective diversity management program can improve the organizational performance and it helps to prevent unlawful discrimination or harassments. This will in return improve the working relationship among the employees and helps to build a more effective work teams. It also helps to improve organizational problem solving capabilities and create an environment where the employees can learn how to tolerate difference among them.

Most organizations gives their utmost importance on customer care or customer relations, and they always make sure that the best possible employees are put in place. Likewise, an effective diversity management strategy helps to improve customer services.

Effective diversity management strategy helps to enhance the recruitment efforts. It gives you wider pool of talent for recruitment. For an example, in UK it is difficult to find technical savvy employees and Asians and Indians immigrants can be hired as they have the technical know-how. Most importantly effective diversity management gives a good image and helps to retain its employees and attract potential employees towards the organizations.

Tutorial – 1 (Unit -1) - HRM

2009-09-16T05:00:00.000-07:00

1- “Employment contracts are likely to effective working relationships. The so called psychological contract is meaningless.”

a- How far do you agree with the statement above? Give reasons and examples?

Employment contract is a written agreement between the employer and employee, which gives legal protection to both parties. Employment contract includes, the terms and conditions of the post with respect to organizational objectives.

Psychological contract is a set of unwritten expectations of both employer and employee, which continuously changing. The expectations can be about work, pay, loyalty, commitment, trust, flexibility, security and career development etc. These unwritten expectations are usually not formal and there it is not legally binding. They may be incidental due to past setbacks, action of either parties or a statement made by employer during a performance review or during recruitment process.

Traditional psychological contract is referred as loyalty and commitment in return of long term job security or job for life. However, in today’s competitive business environment traditional psychological contract is almost impossible as firms are trying to give least possible wages to the employees and demand for flexibility is evident in order to keep least number of employees. This does not mean that traditional psychological contract is not exist. But it is very rare and hardly seen in today’s competitive business environment.

It is obvious that if the psychological contracts are not rewarded, it creates conflicts, dissatisfaction, looses trust and feels his/her are not secured. This will affect the morale, motivation and performance. This is particularly case where the managers themselves are responsible for breaches, for an instance, the employee does not receive the promised training, wage increase or a performance review are badly handled.

The Psychological contract plays a vital role in shaping the attitude towards the organization and therefore it is more influential than the written contract between both parties. It tells employees what to expect and what they should do in order to meet their expectations. In order to make the best use of employees, the organizations must pay special attention to reinstate the employment trust and meet the commitments and continues monitoring of employees attitudes.

It is equally essential to manage the psychological contract by clarifying the employees’ expectations and at the same time communicating employer’s expectation from them. For this the organization can do the following.

- Offer realistic job preview for new recruits.

- Telling organizational vales and what they are expected to do.

- Getting agreement from the employees in order to make them more committed

- Continuous feedback on how well they are doing.

The psychological contract is not strictly legally enforceable but the courts may be considered certain elements when making a verdict.

b- To what extent are employees and employers equally protected by the employment contract? Give your reasons for your answers?

Employment contract is a legally enforceable agreement between employer and employee. Employment contract covers variety of procedures and policies that the employee must agree to as conditions of his or her employment. Employment contracts are required, because the employer seeking to protect its own interest.

Employment contract may require that the employee not work for a competitor or work in similar industry during a given period of time after they leave or terminated by the organization. The employment contracts aims at discouraging employers from dismissing or varying the terms the terms of the employment contract of their employees in order to evade their liabilities under the regulation.

An employee may claim compensation against an employer under the following situation.

Unreasonable Dismissal

If the employee has been employed continues contract for a period of not less than 24 months, and the employee is dismissed other than a valid reason as specified in the law may claim for reinstatement or an award for terminal payments.

Unreasonable Variation of the terms and conditions

The employee has been employed a continues contract and the employment contract is varied without the consent and if the employment contract does not contain such express terms which allows variation and the terms and condition of the employment contract are varied other than for a valid reason as specified in the law may claim reinstatement and the terminal payments.

At the same time, the employee can be dismissed or varied the terms and condition of the employment contract in the following situations;

- The conduct of the employee

- The capability or qualifications of the employee for performing his work.

- Redundancy or other operational requirements of the business.

- Statuary requirements, (i.e. it would be contrary to the law to allow an employee to continue to work in his original position or to continue with the original terms in his employment contract)

- Other considerable reason.

However, under any given circumstances, the employee is not equally protected by employment contracts due to special clause that gives authority to ask employee to carry out extra activities which are not clearly specified in the employment contract.

2- Dave Ulrich’s model for human resource management is based on the argument that the human Resources professional needs to fulfill four roles: strategic partner, change agent, administrative Expert and employee champion.

Briefly indicate what each of these roles is about,

And why each should be considered so important within the human resources function.

Dave Ulrich Strategic Business partner model recommend that HR professionals need to fulfill four roles in order to become a business partner. They are;

Strategic Partner

Strategic partner refers to HR manager being an essential part of the management team running an organization and contributing to the achievement of the organizational or corporate objectives by translating business strategy into actions. According to Ulrich model, the HR professionals must be able to make best use of employees to achieve organizational goals and HR professional has to help other line managers when they are taking decisions on HR related issues. In short, HR professionals are required to assist in execution of the organization’s business strategy.

However the critics argued that the HR practitioners must play a more central role in formulating the business strategy rather than just assisting execution of the business strategy.

Administrative Expert

This refers to the efficiency of HR managers and the effective management of HR activities, such as selection of new recruits etc, so that they create value. According to Ulrich, HR professionals must be able carry out HR activities effectively and efficiently using technology. For an instance, training and development program with newly available technologies.

If HR professional become administrative experts, it is more likely that they would be carrying out more administrative tasks.

Change Agent

Ulrich recommends that the HR professionals have to act as a catalyst for change. This means that the HR managers must be able to manage the change smoothly within the organization. HR professionals must possess certain skills of effective communication, able to influence on others, solving disputes among the employees and manage the resistance carefully and successfully.

Ulrich says that HR professionals should act as an agent of continues transformation. But the reality is that the HR professional does not actually execute change or play any major role in the strategic decision making but rather they just “oil the wheels of change”, meaning that they just manage the change along with any resistance arises.

Employee Champion

Requires the HR manager to raise the employee’s voice in the management decisions and have to protect employee’s interests and must make sure that being fair and assuring the employee’s voices are being heard.

But when the HR professionals are involving and assisting while taking management decisions, it seems that the same person is going two different ways, especially HR professional are to become Employee champion.

And why each should be considered so important within the human resources function.

All the four HR functions proposed by Dave Ulrich are essential for the success of the whole HRM function. Many HRM managers forget to balance the approach and they decide to a real stat in one of the needed components and they forget about the danger not meeting the basic requests and expectations in the rest.

In the Ulrich model, HR professional should a strategic partner, Administrative expert, change agent and an employee champion. Meaning that as strategic partner, HR manager does have a role while undertaking organizational decision and policies. As an administrative expert, the HR professionals are expected to carry out the administrative activities more effective and efficiently through the available technological advancement. The change within the organization and change that involves further expansion of the business, the HR managers should be able to handle it smoothly and they should possesses good communication skills, problem solving and influential skills in order to manage the resistance. In Ulrich’s model, he proposes that the HR professional should be an employee champion by promoting employee interests and bringing employees voices in management decisions. Being fair and assuring that employees and their concerns are being raised.

Therefore, it is obvious that all four functions are essential within the HRM function as it helps to carry out the HRM activities more effectively and efficiently.

3- As HR Assistant you are to make a presentation to a meeting of line managers, to clarify the respective roles of HR and of line managers in managing people.

a- Outline three key purposes of HRM and indicate the respective responsibilities of HR professionals and of line managers in ensuring that these key purposes are properly fulfilled.

Overall objectives of the HRM are to ensure that the organization is able to achieve the organizational objective through its employees. In order to achieve the organizational objectives, the HR professionals must support all the other Line Managers within the organization. Or the HRM functions should be integrated horizontally and vertically. The specific objectives of the HRM are as follows;

- Staffing the organization

- Improving the organizational performance

- Organizational change management

- Employment Administration

1- Staffing the organization

This is to make sure that the organization has the sufficient number of employees of right quality in the right place at right time. As the HRM functions are vertically integrated, the line managers have to play an essential role in recruitment process by assisting in preparing the necessary documents etc.

2- Improving the organizational performance

For improving the organizational performance, the HRM must be integrated horizontally and vertically. Therefore, it is the line managers to engage and support the workforce to make the best use of their best contributions. HR professional should consult with other line managers in making them more confident about the HRM activities involve in the tasks they carry out day to day.

3- Employment administration

It is HR professional’s responsibility to keep the organization within the law on employment related activities. However, the line manages does have a role in assisting the HRM to carry out the HR activities successfully and effectively. Usually, the HR professional gives importance on getting staff paid and developing HR related policies and carrying out the administrative practices.

HR professionals are person who carry out administrative activities associated with human resources planning, recruitment, selection, orientation, training, appraisal, motivation, remuneration, etc. HRM aims at developing people through work.

HR professionals get involvement from the line managers in designing the HR policies and put into practice. They help the line managers by giving advice and assisting their people management activities and measure and monitor their performance as well. HR professionals also conduct the training for line managers to try to equip them to deliver their people management roles.

Line managers are person who heads departments (manufacturing and selling) and is responsible for achieving an the organization's main objectives by executing functions such as policy making, target setting, decision making. They have to report back to higher level of the management. Their main responsibilities include managing operational costs, providing technical expertise or technical know-how and task allocation and monitoring process etc.

Apart from this, the line managers have to carry out some people management tasks, which they have to manage the employees in their own departments. People management activities are usually shared between the line managers. For an instance, during the process of designing performance appraisal, HR managers seek advice from Board of Directors. And planning appraisal, the line managers seek advice from HR managers.

4- You are asked to write an article for HR professionals entitled, “HR Goes Global”.

a- Explain what globalization is.

b- Outline how and why globalization is increasingly important to the practice of HRM.

c- Show how the practice of HRM is adapting to the changes brought about by globalization.

a- Worldwide movement toward economic, financial, trade, and communications integration. Globalization implies opening out beyond local and nationalistic perspectives to a broader outlook of an interconnected and inter-dependent world with free transfer of capital, goods, and services across national frontiers.

b- Traditionally organizations are secured within the domestic business environment. Due to effects of globalization, the organizations not only faced domestic but also international competition from similar type of business. In order to compete, the organizations are under pressure to reduce the cost and make the employee more productive and carry out its business activities cost effectively.

In today’s global economy, the work will go where the staffs are competent and skilled, for an instance, the call centers moved to India where the costs are lowest. And also, many UK and US firms are moving to Asia where the labor cost is relatively low.

In a globalized market, the HR professionals are tend to manage people with different cultures, language etc. it means that when there is more globalization, there is more diversity and when there is more diversity, the organization can recruit people with different skills and experiences. However, in the globalised market, the role of HR professionals became more difficult.

In the globalize market it is very likely to relocate the businesses one place to another and merger with similar business in order to compete in the market. Each of these, the HR professionals plays a vital role in adapting and formulating new HR policies and execution of the management decisions time to time. Apart from this, the organization may purchase a similar business in order to strengthen the market share and compete with other similar organization.

c- In globalization, the organizations are likely to recruit the potential employees from global labor market. For an instance, most UK and US, IT related firms hire skilled labor from India. Because both UK and US there are no sufficient number of IT skilled labors. So there it becomes recruitment global.

Globalization increases the international travel and relocations due to various reasons. Usually organizations decide to move or relocate for cheap labor and cost effective functioning of their business. For an instance, one of the world famous aircraft manufacturing companies like Air Bus have moved to Asia. They built a manufacturing plant in china and first aircraft of china branch Airbus A380 was brought into market last and were sold to Singapore Airlines. This is for cheaper skilled labor cost. Because china is one of the most populous countries in the world and they are truly potential market.

When there is globalization, the roles of HR professional are immense. They have to carry out a lot of cultural training programs in order to make the employees learn and accept different cultures. HR professionals must make sure that their employees are not discriminated or racially abused or harassed.

When there is a globalization, the diversity is natural and HR professional should conduct awareness programs for its employees in order to avoid any possible conflicts or bullying within the organization. It is also an advantage for the organization as different people have different skills and experiences.

Language barrier is one of the common difficulties with globalization. HR professionals have to carry out language training programs for its employees. Because, people from country to country, it differs their way of speaking and language.

HR professionals are required to grip with a flexible HR policy and practice in order to motivate different people from different cultures and to reward them. It is important to note that the employment legislation is different from country to country. Therefore, HR professional must adapt with flexibility.

When an organization go for the global market, it is clear that the organizational structures must change. Because, there should be away to communicate with their global branches within the organizational structure. This means that everything becomes global when the organization enters into the global market.

In globalization, communication is far more important than anything. For this HR professionals should find new ways to interact with global market and encourage their employees to involve at global level.