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Attending Success thru
Strategic Human
Resource Management
Approach
By Ambuj Jain
2014
Strategic Human Resource Management is the practice
of aligning business strategy with that of HR practices
to achieve the strategic goals of the organization. The
aim of SHRM (Strategic Human Resource
Management) is to ensure that HR strategy is not a
means but an end in itself as far as business objectives
are concerned. The idea behind SHRM is that
companies must “fit” their HR strategy within the
framework of overall Business objectives and hence
ensure that there is alignment between the HR
practices and the strategic objectives of the
organization.
About SHRM
©By Ambuj Jain
Different between Personal Management & HRM
Personal
Management
Traditional Approach
Managing Workforce
Focused on
Administrative & Legal
Jobs
Predefined Set of
Activities
Mediator between
Management &
Workforce
Personal Manager
Strategic
Human
Resource
Management
Modern Approach
Managing Resource
Focuses on
Developmental &
Strategic Jobs
Aligned with
Management Objective
Bridge between
Management Objective
& Resource Needs
People Manager
©By Ambuj Jain
Factors covered under Global HRM leading to Employee
Engagement/Disengagement
I
n
c
r
e
a
s
e
D
e
c
r
e
a
s
e
Engaged
Disengaged
©By Ambuj Jain
Optimum Performance
Fuel
Periodical Servicing
Oiling
Parts Replacement
Decoration
Carefully Driven
Compensation
Welfare Activities
Motivation
Development Opportunity
Other Benefits
Fair Treatment
©By Ambuj Jain
Managing Employee Performance
A Two Way Street
It includes Manager & Managed and both
are accountable for each other.
The Role of the Manager
Free of biases and prejudices (employees
feel discriminated against leading to
attrition, lower employee morale and in
the extreme cases, lawsuits against the
company).
The Role of the Employee
Lower Absenteeism,
Positive attitude
Employee must use the channels available
for redressal instead of sulking at work if
he or she has grievances about the
manager.
©By Ambuj Jain
Performance Appraisal Process
• Evaluation of performance during the last six months or one year
• Conducted between the employee and his or her manager and
subsequently between the manager and the manager’s manager
• Involvement of the HR manager
Performance
Appraisal process
• Appraisal interview between the employee and his or her manager.
• Self evaluation by the appraise.
• Objective evaluation by the appraiser.
Appraise and
Appraiser
• All participants having different approach
• Contribute positively instead of bringing personal biases and
prejudices to the table.
Shortcomings of the
Appraisal Process
• Take performance appraisal interview seriously.
• Both the employee and the manager must set aside time to go
through the process.
• The manager cannot arbitrarily change the time or the venue and
must not approach the interview in a haphazard manner.
• It is often the case that the manager has to be reminded and then
he or she hurriedly arranges the meeting.
• Manager must go through the employees’ self evaluation and rate
the same objectively.
The Right and
Wrong Way
©By Ambuj Jain
Managing Employee Relations
Establishing and maintaining harmonious relationships with
employees, managers need to develop skills that focus on
interpersonal communication and conflict management.
Interpersonal Skills:
Effective & clear communication
It can mend spoiled relationships among employees as well as between
employee and employer.
Increased interaction
It is the first step to break the ice and move ahead in a positive direction.
It helps managers create a peaceful working environment in the
organization.
Conflict Management:
Resolve employee relations issues quickly and effectively.
Listening patiently
Arrive on Win-Win Situation
Don’t Jump straight to the conclusion, making hasty decisions and
boosting the ego of one party.
Unbiased and Non Prejudice Decision
Employees are the most important assets of any organization-big or small.
Managing employee relations effectively can help organizations achieve
their goals faster.
©By Ambuj Jain
Employee Rewards and Recognition
Employee rewards and recognition system is not just a positive thing to do with people but communicating
it effectively is an efficient tool in encouraging them to create and bring business for you.
Carefully analysis of the company policies and procedures.
Deciding how to recognize employees’ efforts and what to provide them?
Thorough analysis of responsibilities and risks involved in a particular job.
R&R should be in alignment with its goals, mission and vision.
Monetary Rewards:
Raise in salary,
Incentives
Vacation trips
Redeemable coupons
Stock awards
Non-monetary Rewards:
Trophies,
Certificates & letters of appreciation
Dinner with boss
A combination of monetary and non-monetary rewards can work wonders and drive employees to perform well
continuously. A proper and efficient employee reward and recognition program can establish harmonious
relationships between employees and employer.
©By Ambuj Jain
Variable Pay and Performance Linked Incentives
In recent times, the concept of linking pay to performance
has taken on an entirely new dimension with the
introduction of variable pay. This article discusses some
aspects of the variable pay and performance linked
incentives in place in the contemporary organizations.
Categories of Variable Pay
Individual Performance
Division performance
Company performance.
The idea behind variable pay is that it provides an incentive
for employees to feel a sense of ownership and take
responsibility for their jobs as well and relate to the overall
division and company.
©By Ambuj Jain
Workplace Health and Safety
Statistics show that every twenty seconds of every working minute throughout the world,
someone dies as a result of industrial accident or poor safety conditions at workplace.
Thousands of employees throughout the world lose their limbs, suffer
from temporary or permanent disability or lose their lives due to
insufficient arrangements for their health and safety at workplace. Not
only workers but their families also suffer the loss all through their lives.
Things to Improve:
Dedicated Health, Safety & Environment Team
Qualified Safety Professionals
Proper Safety Equipment & Strictly Adherence
Design of Safety Induction Program
©By Ambuj Jain
Workplace Safety Programs
Organizations can reduce the risk of accidents at workplace by identifying the level of risk, modifying the already
existing policy and implementing it effectively.
Safety Policy: The policy specifies the company’s goals and responsibilities and caveats and
sanctions for failing to fulfill them.
Provision of Physical Health Services:
Periodical physical health check-ups (Helps managers in rehabilitating the employees by
redesigning their jobs in order to eliminate the further damage to their health).
Mental Health Services:
Psychiatric counseling
Development and maintenance of harmonious human relations at workplace.
Employee Assistance Programs:
Deal with stress-related problems.
Treatment, screening and prevention of both work and non-work related problems.
Fitness Programs:
Focus on overall health of employees and include both disease identification as well as
lifestyle modification.
Most common programs - hypertension identification, physical fitness, exercise, nutrition,
smoking and drinking cessation, diet control and personal and work-related stress
management.
Awareness Programs: HIV AIDS, Cancer, Hepatitis A/B/C etc.
©By Ambuj Jain
HR Challenges - How to cope with them efficiently ?
To remain in business, human resource managers need to efficiently address following human resource
challenges:
Handling Multicultural / Diverse Workforce: Dealing with people from different age, gender, race, ethnicity,
educational background, location, income, parental status, religious beliefs, marital status and ancestry and work
experience can be a challenging task for HR managers. With this, managing people with different set of ideologies,
views, lifestyles and psychology can be very risky. Effective communication, adaptability, agility and positive attitude
of HR managers can bind the diverse workforce and retain talents in the organization.
Managing Change: Who wants to change their ideology or way of working? Neither you nor I. How can we expect
others to change then? Bringing change in organizational processes and procedures, implementing it and then
managing it is one of the biggest concerns of HR managers. Business environment is so volatile. Technology keeps
changing every now and then. All thanks to globalization. Upgrading the existing technology and training people for
them is a real headache for HR department. The success rate of technology change depends how well HRD can
handle the change and manage people issues in the process.
Retaining the Talents: Globalization has given freedom to working professionals to work anywhere in the world.
Now that they have endless lucrative opportunities to work, hiring and retaining the best industry talent is no joke.
Maintaining harmonious relations with them, providing excellent work environment and offering more
remuneration and perks than your competitors can retain and motivate them.
Conflict Management: HR managers should know how to handle employee-employer and employee-employee
conflicts without hurting their feelings. Although it is almost impossible to avoid conflicts among people still
handling them tactfully can help HR managers to resolve the issues. They should be able to listen to each party,
decide and communicate to them in a convincing manner in order to avoid future conflicts.
HR professional must be proactive with all strategies and action plans in order to meet the changing needs of the
organization. They must be thorough with the basic functions of HR including planning, organizing, leading and
controlling human resources.
©By Ambuj Jain
The Challenges of Managing Attrition in Contemporary Organizations
The Reasons for Attrition:
There are many reasons for attrition and usually research has shown that the most cited reason is that the
employee is unable to get on with his or her manager.
The Red Lists and Risk Management:
After analyzing the reasons for attrition, it is time to look at how companies and the HR managers can manage
attrition. In many organizations, managers are asked to identify potential cases of attrition before the employee
actually puts in his or her papers. For instance, many multinationals have the practice of asking their managers to
prepare lists of potential employees who are likely to quit. This “red list” is then sent to the managers’ supervisor and
the HR manager so that when the employee actually quits or even does not quit, the organization is prepared for the
quitting event or counseling the employee against quitting. The latter scenario happens when the employee is
deemed valuable to the organization and the manager identifies such attrition as being a loss to the company.
Further, attrition is also managed by the HR department organizing periodic one-one sessions with the middle
management and the managers having the same one-one session with their employees. The rationale for such
sessions is that the employees would vent their frustrations or lack of comfort with the manager or with the
organization and hence, ways and means can be found to address the employees’ concerns.
attrition is also economically damaging to the organizations as the replacement employees have to be hired at a cost
and trained again at a cost. Further, losing employees who are well versed with the organizational culture can mean a
loss of valuable resources that lead to a situation where the organization stands to miss the potential value adding
activities of the employees. It is for this reason that HR managers and organizations take attrition seriously and
consider ways and means to curb the same.
©By Ambuj Jain
• Joining Bonus Scheme (Cash Reward or Article) for Blue Collars.
• Introduction of Employee Referral Program & incentive on completion of 3 months without
gap.
• Red list & Succession Planning for Critical Jobs.
• Employee Satisfaction Survey for Root Cause.
• Welfare Activities & Second Source of Income for Dependents for Blue Collar.
• Improve Working Conditions.
• Variable Pay Schemes for White Collar.
• Individual Capacity Building Programs and Multi-Skilling.
• Internal Faculty Development Programs.
• Time to time Event Celebration for Quality & Process Improvement.
• Formation of Quality Circles.
• Strengthening Induction Program and Including Safety Induction in it.
Proposal For Reduction in Attrition
©By Ambuj Jain
Proposal to Reduce Absenteeism
• Set Attendance Expectation - Decide Section-wise
Absenteeism Quota & Attendance Target.
• Level wise Approving Authority.
• Incentive Scheme.
• Punitive Actions.
• Improve Working Conditions.
• Counseling Sessions for Habitual & Long Absentees.
• Long Term Benefits for good present record.
©By Ambuj Jain
Procedure to Reduce Absenteeism
Leave
Planned
Attendance Incentive
People who do not
went on un-intimated
leave in the following
month will be eligible.
Eligibility For Yearly
Increment
People who have lover
absenteeism will only
be eligible for yearly
increment.
Recognition to Best
Attendance
Performance
Once in a Year or
Quarterly Basis People
will be recognized
during event.
Unplanned
Less Retiral Benefits
People who have less
attendance, will be
having less retiral
benefits .
Display Name on
Notice Board &
Warning Letter.
Socially Highlighting
Counseling Sessions
Reason for
absenteeism, financial
damage, effect on
service record.
No Other Benefits
(Overtime/
Loan/Advance Salary
Etc)
For a month, all the
benefits will be
restricted .
©By Ambuj Jain
Conclusion
Whether employers or managers wish to improve productivity,
financial measures or overall employee commitment, they
should look to improve employee engagement and Global
HRM practices.
Engagement is no longer an abstract management concept.
Recent studies, as well as numerous company success stories,
have proven that employee engagement has a significant
impact on the overall success of an organization.
By Ambuj Jain

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Strategic HRM.pptx

  • 1. Attending Success thru Strategic Human Resource Management Approach By Ambuj Jain 2014
  • 2. Strategic Human Resource Management is the practice of aligning business strategy with that of HR practices to achieve the strategic goals of the organization. The aim of SHRM (Strategic Human Resource Management) is to ensure that HR strategy is not a means but an end in itself as far as business objectives are concerned. The idea behind SHRM is that companies must “fit” their HR strategy within the framework of overall Business objectives and hence ensure that there is alignment between the HR practices and the strategic objectives of the organization. About SHRM ©By Ambuj Jain
  • 3. Different between Personal Management & HRM Personal Management Traditional Approach Managing Workforce Focused on Administrative & Legal Jobs Predefined Set of Activities Mediator between Management & Workforce Personal Manager Strategic Human Resource Management Modern Approach Managing Resource Focuses on Developmental & Strategic Jobs Aligned with Management Objective Bridge between Management Objective & Resource Needs People Manager ©By Ambuj Jain
  • 4. Factors covered under Global HRM leading to Employee Engagement/Disengagement I n c r e a s e D e c r e a s e Engaged Disengaged ©By Ambuj Jain
  • 5. Optimum Performance Fuel Periodical Servicing Oiling Parts Replacement Decoration Carefully Driven Compensation Welfare Activities Motivation Development Opportunity Other Benefits Fair Treatment ©By Ambuj Jain
  • 6. Managing Employee Performance A Two Way Street It includes Manager & Managed and both are accountable for each other. The Role of the Manager Free of biases and prejudices (employees feel discriminated against leading to attrition, lower employee morale and in the extreme cases, lawsuits against the company). The Role of the Employee Lower Absenteeism, Positive attitude Employee must use the channels available for redressal instead of sulking at work if he or she has grievances about the manager. ©By Ambuj Jain
  • 7. Performance Appraisal Process • Evaluation of performance during the last six months or one year • Conducted between the employee and his or her manager and subsequently between the manager and the manager’s manager • Involvement of the HR manager Performance Appraisal process • Appraisal interview between the employee and his or her manager. • Self evaluation by the appraise. • Objective evaluation by the appraiser. Appraise and Appraiser • All participants having different approach • Contribute positively instead of bringing personal biases and prejudices to the table. Shortcomings of the Appraisal Process • Take performance appraisal interview seriously. • Both the employee and the manager must set aside time to go through the process. • The manager cannot arbitrarily change the time or the venue and must not approach the interview in a haphazard manner. • It is often the case that the manager has to be reminded and then he or she hurriedly arranges the meeting. • Manager must go through the employees’ self evaluation and rate the same objectively. The Right and Wrong Way ©By Ambuj Jain
  • 8. Managing Employee Relations Establishing and maintaining harmonious relationships with employees, managers need to develop skills that focus on interpersonal communication and conflict management. Interpersonal Skills: Effective & clear communication It can mend spoiled relationships among employees as well as between employee and employer. Increased interaction It is the first step to break the ice and move ahead in a positive direction. It helps managers create a peaceful working environment in the organization. Conflict Management: Resolve employee relations issues quickly and effectively. Listening patiently Arrive on Win-Win Situation Don’t Jump straight to the conclusion, making hasty decisions and boosting the ego of one party. Unbiased and Non Prejudice Decision Employees are the most important assets of any organization-big or small. Managing employee relations effectively can help organizations achieve their goals faster. ©By Ambuj Jain
  • 9. Employee Rewards and Recognition Employee rewards and recognition system is not just a positive thing to do with people but communicating it effectively is an efficient tool in encouraging them to create and bring business for you. Carefully analysis of the company policies and procedures. Deciding how to recognize employees’ efforts and what to provide them? Thorough analysis of responsibilities and risks involved in a particular job. R&R should be in alignment with its goals, mission and vision. Monetary Rewards: Raise in salary, Incentives Vacation trips Redeemable coupons Stock awards Non-monetary Rewards: Trophies, Certificates & letters of appreciation Dinner with boss A combination of monetary and non-monetary rewards can work wonders and drive employees to perform well continuously. A proper and efficient employee reward and recognition program can establish harmonious relationships between employees and employer. ©By Ambuj Jain
  • 10. Variable Pay and Performance Linked Incentives In recent times, the concept of linking pay to performance has taken on an entirely new dimension with the introduction of variable pay. This article discusses some aspects of the variable pay and performance linked incentives in place in the contemporary organizations. Categories of Variable Pay Individual Performance Division performance Company performance. The idea behind variable pay is that it provides an incentive for employees to feel a sense of ownership and take responsibility for their jobs as well and relate to the overall division and company. ©By Ambuj Jain
  • 11. Workplace Health and Safety Statistics show that every twenty seconds of every working minute throughout the world, someone dies as a result of industrial accident or poor safety conditions at workplace. Thousands of employees throughout the world lose their limbs, suffer from temporary or permanent disability or lose their lives due to insufficient arrangements for their health and safety at workplace. Not only workers but their families also suffer the loss all through their lives. Things to Improve: Dedicated Health, Safety & Environment Team Qualified Safety Professionals Proper Safety Equipment & Strictly Adherence Design of Safety Induction Program ©By Ambuj Jain
  • 12. Workplace Safety Programs Organizations can reduce the risk of accidents at workplace by identifying the level of risk, modifying the already existing policy and implementing it effectively. Safety Policy: The policy specifies the company’s goals and responsibilities and caveats and sanctions for failing to fulfill them. Provision of Physical Health Services: Periodical physical health check-ups (Helps managers in rehabilitating the employees by redesigning their jobs in order to eliminate the further damage to their health). Mental Health Services: Psychiatric counseling Development and maintenance of harmonious human relations at workplace. Employee Assistance Programs: Deal with stress-related problems. Treatment, screening and prevention of both work and non-work related problems. Fitness Programs: Focus on overall health of employees and include both disease identification as well as lifestyle modification. Most common programs - hypertension identification, physical fitness, exercise, nutrition, smoking and drinking cessation, diet control and personal and work-related stress management. Awareness Programs: HIV AIDS, Cancer, Hepatitis A/B/C etc. ©By Ambuj Jain
  • 13. HR Challenges - How to cope with them efficiently ? To remain in business, human resource managers need to efficiently address following human resource challenges: Handling Multicultural / Diverse Workforce: Dealing with people from different age, gender, race, ethnicity, educational background, location, income, parental status, religious beliefs, marital status and ancestry and work experience can be a challenging task for HR managers. With this, managing people with different set of ideologies, views, lifestyles and psychology can be very risky. Effective communication, adaptability, agility and positive attitude of HR managers can bind the diverse workforce and retain talents in the organization. Managing Change: Who wants to change their ideology or way of working? Neither you nor I. How can we expect others to change then? Bringing change in organizational processes and procedures, implementing it and then managing it is one of the biggest concerns of HR managers. Business environment is so volatile. Technology keeps changing every now and then. All thanks to globalization. Upgrading the existing technology and training people for them is a real headache for HR department. The success rate of technology change depends how well HRD can handle the change and manage people issues in the process. Retaining the Talents: Globalization has given freedom to working professionals to work anywhere in the world. Now that they have endless lucrative opportunities to work, hiring and retaining the best industry talent is no joke. Maintaining harmonious relations with them, providing excellent work environment and offering more remuneration and perks than your competitors can retain and motivate them. Conflict Management: HR managers should know how to handle employee-employer and employee-employee conflicts without hurting their feelings. Although it is almost impossible to avoid conflicts among people still handling them tactfully can help HR managers to resolve the issues. They should be able to listen to each party, decide and communicate to them in a convincing manner in order to avoid future conflicts. HR professional must be proactive with all strategies and action plans in order to meet the changing needs of the organization. They must be thorough with the basic functions of HR including planning, organizing, leading and controlling human resources. ©By Ambuj Jain
  • 14. The Challenges of Managing Attrition in Contemporary Organizations The Reasons for Attrition: There are many reasons for attrition and usually research has shown that the most cited reason is that the employee is unable to get on with his or her manager. The Red Lists and Risk Management: After analyzing the reasons for attrition, it is time to look at how companies and the HR managers can manage attrition. In many organizations, managers are asked to identify potential cases of attrition before the employee actually puts in his or her papers. For instance, many multinationals have the practice of asking their managers to prepare lists of potential employees who are likely to quit. This “red list” is then sent to the managers’ supervisor and the HR manager so that when the employee actually quits or even does not quit, the organization is prepared for the quitting event or counseling the employee against quitting. The latter scenario happens when the employee is deemed valuable to the organization and the manager identifies such attrition as being a loss to the company. Further, attrition is also managed by the HR department organizing periodic one-one sessions with the middle management and the managers having the same one-one session with their employees. The rationale for such sessions is that the employees would vent their frustrations or lack of comfort with the manager or with the organization and hence, ways and means can be found to address the employees’ concerns. attrition is also economically damaging to the organizations as the replacement employees have to be hired at a cost and trained again at a cost. Further, losing employees who are well versed with the organizational culture can mean a loss of valuable resources that lead to a situation where the organization stands to miss the potential value adding activities of the employees. It is for this reason that HR managers and organizations take attrition seriously and consider ways and means to curb the same. ©By Ambuj Jain
  • 15. • Joining Bonus Scheme (Cash Reward or Article) for Blue Collars. • Introduction of Employee Referral Program & incentive on completion of 3 months without gap. • Red list & Succession Planning for Critical Jobs. • Employee Satisfaction Survey for Root Cause. • Welfare Activities & Second Source of Income for Dependents for Blue Collar. • Improve Working Conditions. • Variable Pay Schemes for White Collar. • Individual Capacity Building Programs and Multi-Skilling. • Internal Faculty Development Programs. • Time to time Event Celebration for Quality & Process Improvement. • Formation of Quality Circles. • Strengthening Induction Program and Including Safety Induction in it. Proposal For Reduction in Attrition ©By Ambuj Jain
  • 16. Proposal to Reduce Absenteeism • Set Attendance Expectation - Decide Section-wise Absenteeism Quota & Attendance Target. • Level wise Approving Authority. • Incentive Scheme. • Punitive Actions. • Improve Working Conditions. • Counseling Sessions for Habitual & Long Absentees. • Long Term Benefits for good present record. ©By Ambuj Jain
  • 17. Procedure to Reduce Absenteeism Leave Planned Attendance Incentive People who do not went on un-intimated leave in the following month will be eligible. Eligibility For Yearly Increment People who have lover absenteeism will only be eligible for yearly increment. Recognition to Best Attendance Performance Once in a Year or Quarterly Basis People will be recognized during event. Unplanned Less Retiral Benefits People who have less attendance, will be having less retiral benefits . Display Name on Notice Board & Warning Letter. Socially Highlighting Counseling Sessions Reason for absenteeism, financial damage, effect on service record. No Other Benefits (Overtime/ Loan/Advance Salary Etc) For a month, all the benefits will be restricted . ©By Ambuj Jain
  • 18. Conclusion Whether employers or managers wish to improve productivity, financial measures or overall employee commitment, they should look to improve employee engagement and Global HRM practices. Engagement is no longer an abstract management concept. Recent studies, as well as numerous company success stories, have proven that employee engagement has a significant impact on the overall success of an organization. By Ambuj Jain