Meaning And Types Of Hr Strategies Management Essay

HR strategies set out what the organization intends to do about the different aspects of its human resource management policies and practices. They will be integrated with the business strategy and each other. HR strategies are described by Dyer and Reeves (1995) as ‘internally consistent bundles of human resource practices’, and in the words of Boxall (1996), they provide a framework of critical ends and means. Richardson and Thompson (1999) suggest that: A strategy, whether it is an HR strategy or any other kind of management strategy must have two key elements: there must be strategic objectives (ie things the strategy is supposed to achieve), and there must be a plan of action (ie the means by which it is proposed that the objectives will be met.

Objectives of HR strategies

The purpose of HR strategies is to guide HRM development and implementation programmes. They provide a means of communicating to all concerned the intentions of the organization about how its human resources will be managed. They provide the basis for strategic plans and enable the organization to measure progress and evaluate outcomes against objectives. HR strategies provide visions for the future but they are also vehicles that define the actions required and how the vision should be realized. As Gratton (2000) commented: ‘There is no great strategy, only great execution.’

Types of HR strategies

Because all organizations are different, all HR strategies are different. According to Armstrong and Long (1994) and Armstrong and Baron(2002) revealed many variations. Some strategies are simply very general declarations of intent; others go into much more detail. But two basic types of HR strategies can be identified: 1) overarching strategies; and 2) specific strategies relating to the different aspects of human resource management.

Overarching HR strategies

Overarching strategies describe the general intentions of the organization about how people should be managed and developed, what steps should be taken to ensure that HRM processes the organization can attract and retain the people it needs, and ensure so far as possible that employees are committed, motivated and engaged. They are likely to be expressed as broad-brush statements of aims and purpose that set the scene for more specific strategies. They are concerned with overall organizational effectiveness – achieving human resource advantage by, as Boxall and Purcell (2003) explain, employing ‘better people in organizations with better process’, developing high performance work systems and generally creating a great place to work.

Examples of overarching HR strategy statements.

AEGON

‘The Human Resources Integrated Approach aims to ensure that from whatever angle staff now look at the elements of pay management, performance, career development and reward, they are consistent and linked.’

B&Q

‘Enhance employee commitment and minimize the loss of B&Q’s best people. Position B&Q as one of the best employers in the UK.’

EGG

‘The major factor influencing HR strategy was the need to attract, maintain and retain the right people to deliver it. The aim was to introduce a system that complemented the business, that reflected the way we wanted to treat our customers – treating our people the same. What we would do for our customers we would also do for our people. We wanted to make an impact on the culture – the way people do business.’ (HR Director)

GlaxoSmithKline

‘We want GSK to be a place where the best people do their best work.’

An insurance company

‘Without the people in this business we don’t have anything to deliver. We are driven to getting the people issues right in order to deliver the strategy. To a great extent it’s the people that create and implement the strategy on behalf of the organization. We put people very much at the front of our strategic thought process. If we have the right people, the right training, the right qualifications and the right sort of culture then we can deliver our strategy. We cannot do it otherwise.’ (Chief Executive)

Lands’ End

‘Based on the principle that staff who are enjoying themselves, are being supported and developed, and who feel fulfilled and respected at work, will provide the best service to customers.’

Pilkington Optronics

‘The business strategy defines what has to be done to achieve success and that HR strategy must complement it, bearing in mind that one of the critical success factors for the company is its ability to attract and retain the best people. HR strategy must be in line with what is best in industry.’

A public utility

‘The only HR strategy you really need is the tangible expression of values and the implementation of values… unless you get the human resource values right you can forget all the rest’. (Managing Director)

Azam manufacturing company

‘The HR strategy is to stimulate changes on a broad front aimed ultimately at achieving competitive advantage through the efforts of our people. In an industry of fast followers, those who learn quickest will be the winners.’ (HR Director)

A retail stores group

‘The biggest challenge will be to maintain (our) competitive advantage and to do that we need to maintain and continue to attract very high calibre people. The key differentiator on anything any company does is fundamentally the people, and I think that people tend to forget that they are the most important asset. Money is easy to get hold of, good people are not. All we do in terms of training and manpower planning is directly linked to business improvement.’ (Managing Director)

Specific HR strategies

Specific HR strategies set out what the organization intends to do in areas such as:

Talent management – how the organization intends to ‘win the war for talent’.

Continuous improvement – providing for focused and continuous incremental innovation sustained over a period of time.

Knowledge management – creating, acquiring, capturing, sharing and using knowledge to enhance learning and performance.

Resourcing – attracting and retaining high quality people.

Learning and developing – providing an environment in which employees are encouraged to learn and develop.

Reward – defining what the organization wants to do in the longer term to develop and implement reward policies, practices and processes that will further the achievement of its business goals and meet the needs of its stakeholders.

Employee relations – defining the intentions of the organization about what needs to be done and what needs to be changed in the ways in which the organization manages its relationships with employees and their trade unions.

The following are some examples of specific HR strategies.

The Children’s Society

Implement the rewards strategy of the Society to support the corporate plan and secure the recruitment, retention and motivation of staff to deliver its business objectives.

Manage the development of the human resources information system to secure productivity improvements in administrative processes.

! Introduce improved performance management processes for managers and staff of the Society.

Overview of IVRCL

IVRCL Infrastructures and projects Ltd commenced operation in 1990 and established itself as a premier EPCC & LSTK service provider with front end engineering capabilities. Commencing operations with building construction as class-I construction firm in 1987, IVRCL forayed into various social infrastructure sectors like water management, roads and high way, bridges, power transmission lines with attendant engineering capabilities and was graded as one of the developer companies by state and central government.

By virtue of its presence in core sector activity, IVRCL has redefined the Quality of life in its many facts. This has come through its commitments, care and concern for societal issues and largely by way of experience, having built upon brick by brick in its track record of a decade and a half.

IVRCL, is today, reckoned as a leader in Infrastructure builds and development providing one-stop turnkey solutions on a cost-effective basis. IVRCL has been rated as “The Fastest Growing Construction Company”. Firmly entrenched in the core sector activity of infrastructure leading to nation building, IVRCL stands out for its pioneering work in providing complete water solutions including water transmission, treatment and waste management. The company’s other infrastructure activity includes roads and highways, bridges and transmission lines with attendant engineering capabilities.

HR STRETEGIES AT IVRTL INCLUDES THE FOLLOWING

Recruitment &selection

IVRCL recruitment and selection strategy is to retain staff of the highest calibre appropriate to job requirements and to organization standards of efficiency, competence, professionalism and integrity. The recruitment and selection decision is of prime importance as the vehicle for obtaining the best possible person-to-job fit, which will when aggregated, contribute significantly towards the company’s effectiveness. It is also becoming increasingly important, as the Company evolves and changes, that new recruits show willingness to learn, and have the adaptability and ability to work as part of a team. The Recruitment & Selection procedure should help managers to ensure that these criteria are addressed.

The Company Recruitment and Selection strategy has to:

Be fair and consistent;

Be non-discriminatory on the grounds of sex, race, age, religion or disability;

Conform to statutory regulations and agreed best practices.

Strategy objectives

The strategy objectives is to meet Manpower requirements of the Organization in terms of approved Manpower Plan in additional to that to fulfil requirements of competent HR in terms of requisite capabilities, skills, qualifications,  aptitude, merit and suitability with a view to fulfil Organization’s objectives .However to attract, select and retain the best talent available keeping in view the changing needs of the organization. Nevertheless to ensure an objective and reliable systems of selection. Hand in hand to ensure placement of right man at the right job at the right time and finally to provide suitable induction points for intake and thereby achieve the desirable level of qualification, skill and age mix as required strengthening the Human Resource of the Organization.

INTERNAL RESOURCE

The existing manpower will be reviewed to optimize the human resource utilization. If any internal resource is identified the same will be discussed with the concerned HODs for transferring the employee to the department which has requested the manpower.

HR department will issue the transfer order as per the Annexure II.

HR department to update the personnel HR Information System.

Recruitment from external sources will be resorted to, if suitable candidates from internal resources are not available.

SCANNING OF BIODATAS FROM DATA BANK

Based on the approved manpower requisition data bank will be scanned.

Suitable profiles will be forwarded to the concerned department for short listing.

C. RECRUITMENT THROUGH PORTALS

Based on the approved manpower requisition the job specification will be posted on the Portal and Web Site of IVRCL.

The response received on the Portal will be screened and will be given to the concerned department for short listing of suitable CVs.

D. RELEASE OF ADVERTISEMENT

On receipt of the approved manpower requisition HR department to decide on mode of procurement through releasing advertisement.

HR department will liaise with the ad agency regarding publication and artwork.

The Head (HR&Admn) will give formal approval of the artwork and selection of media (paper) for advertisement.

All responses to the advertisement will be scanned and sent to the concerned for short listing.

SOURCING RESUMES THROUGH CONSULTANTS

Based on the approved manpower requisition the job specification will be informed to few consultants for head hunting.

The resumes referred by consultants will be screened and given to the concerned department for short listing of suitable CVs.

SCHEDULING OF INTERVIEWS

1. Fixing the interview dates should be done in consultation with the concerned HODs, Regional Head/Functional Head and Group Head (HR).

2. Time period required for interview from the date of dispatch would be 10 days.

3. All interview call letters (Annexure III) should be sent by the HR department two weeks prior to the date of interview.

4. Those called for interview on phone or e-mail should be given at least 3 days time for attending the interview

CONDUCTING INTERVIEWS

1. HR department will call the short listed candidates for interview.

2. HR department in association with the manpower -requesting department shall form the Interview Panel which will conduct interviews.

3. Interview Panel should comprise of two or more members.

4. Mandatory requirement: One member from concerned department and one member from HR department. Panel members shall comprise as per the table given below.

5. Candidate has to submit the duly filled up company’s Standard Application Form

6. Members of the interview panel should evaluate the candidates by using the interview evaluation sheet. Overall rating of the candidates should be Good to Excellent for getting selected. Candidates rated as satisfactory may be considered for employment based on need, which will be decided by the Corporate HR and those rated as Average or poor will not be considered for employment.

7. In case of any conflict in opinion, Corporate HR will be referring to Group Head (HR)/Executive  Director

REGRET LETTERS

1. Regret letter to be sent by HR department, to those candidates who were not selected after the final interview.

2. Regret letters should be sent within 10 days of final interview.

FITMENT:

The designation and Salary will be fixed based on the competency matrix. Executive Director’s approval shall be obtained for all positions for the salary package before finally committing to the candidate.

OFFER LETTER:

The selected candidate will be issued or sent an Offer Letter showing designation, date of joining, location of joining and salary package after obtaining necessary approval from the Appointing Authority. A copy of offer letter will be sent to the respective department for information.

APPOINMENT LETTER:

After verification of original documents and other testimonials at the time of joining appointment letter shall be issued to the candidate by the HR department which shall be signed by the concerned Appointing Authority.

Joining Formalities:

OBJECTIVE:

This strategy is to ensure that all joining formalities are completed when a new person joins with the company.

VERFICATION OF CERTIFICATES:

1 HR Department shall verify the following original documents and collect the relevant Photostat copies at the time of joining.

Date of birth certificate

Academic and Professional qualifications

Experience and Service certificate

Relieving certificate from previous employer

Last pay slip

PAN Number

Salary details of the previous employment

Minimum 4 No. Passport size photographs

2. All new entrants shall fill up the following documents at the time of joining.

Joining report (Annexure IX)

Membership forms of EPF, ESI, Gratuity and Superannuation Scheme.

Nominations of GPAI, Group General Insurance and Mediclaim etc.,

Personal declaration forms (Annexure X)

Application form to open bank account

Confidentiality Letter of Pledge for the cadres G3 and above

Training and development

Every Organization needs the services of trained people for performance the activities in a systematic way. Training is a collection of action, which enables the organization to achieve its goals.”Training needs can be identified by deducting the existing skills from the job requirements.”Training dates back as far as humanity itself. In Pre-historic times, humanity began training its offspring to live off the land. In slightly later times, still pre-historic, men begin living in groups; what we call tribes. It was around this time that ‘organized fighting’, amongst men became common; and ‘organized training’ made its first appearance in the form of military training. Military training was of prime importance in those days, and the fittest and the tribe’s best warriors chose the best of the tribe’s children for military for military training.

Definition of Training:-

“Training is the continuous, systematic development among all levels of employees of that knowledge and those skills attitudes which contribute to their welfare and that of the company.”-Plenty, Cord M.C and Efferson , “The process of aiding employee to gain effectiveness in their present and future work.”Broadly speaking training is the act of increasing knowledge and skill of an employee for doing specified job. It involves active participation by the employees. -Richard P.Calhoon

Advantages of Training

A well-planned and well-executed training program can provide the following advantages:

1. Higher Productivity. Training helps to improve the level of performance. Trained employees perform better by using better method of work. Improvements in manpower productivity in developed nations can be attributed in no small measure to their educational and industrial training programs.

2. Better quality of work. In formal training, the best methods are standardized and taught to employees. Uniformity of work methods and procedures helps to improve the quality of product or service. Trained employees are less likely to make operational mistakes.

3. Less Learning Period. A systematic training program helps to reduce the time and cost involved in learning. Employees can more quickly reach the acceptable level of performance. They need to waste their time and efforts in learning through trial and error.

4. Cost Reduction. Trained employees make more economical use of materials and machinery. Reduction is wastage and spoilage together with increase in productivity help to minimize cost of operations per unit.

Maintenance cost is also reduced due to fewer machine breakdown and better handling of equipments. Plant capacity can be put to the optimum use.

5. Low Accident Rate. Trained personnel adopt the right work methods and make use of the prescribed safety devices. Therefore, the frequency of accidents is reduced. Health and safety of employees can be improved.

6. Reduced Supervision. Well-trained employees tend to be self-reliant and motivated. They need less guidance and control.

7. High Morale. Proper training can develop positive attitudes among employees. Job satisfaction and morale are improved due to rise in the earnings and job security of employees.

8. Personal Growth. Training enlarges the knowledge and skills of the participants. Therefore, well-trained personnel can grow faster in their career. Training prevents obsolescence of knowledge and skills. Trained employees are a more valuable asset to any organization.

.

Training and Development IVRCL

IN-HOUSE (MDP)

INTERNAL

JOB RELATED

PERFORMANCE APPRAISAL FORMS

START

EXTERNAL

BEHAVIORAL

PREPARATION OF ANNUAL BUDGET& APPROVAL

(RS.20 LAKH FOR YEAR 2007-08)

SUMMARIZE THE NEEDS

NEED IDENTIFICATION

SR.MANAGEMENT STAFF OBSERVATION

CLASSIFICATION / GROUPING THE NEEDS

IDENTIFICATION OF TRAINING RESOURCES

PREPARATION OF TRAINING CALENDAR

EXTERNAL

(TRAINING INSTITUTE / BODIES)

CONDUCT TRAINING PROGRAMMES

PROGRAMME EFFECTIVENESS

COLLECTION OF FEED BACK

FACULTY /AGENCY RATING

SUMMARIZE THE FEED BACK

SHARING THE FEED BACK

FOLLOW UP ON PROGRAM EFFECTIVENESS

REVIEW

END

OBJECTIVE

The objective of this policy is to help build a skilled, well-trained and professional workforce; to strengthen organizational leadership; and to adopt leading-edge management practices to encourage innovation and continuous improvements in performance.

The expected results of this policy are that:

new employees will share a common understanding of their role;

managers at all levels have the necessary knowledge to effectively exercise their delegated authorities;

employees at all levels will acquire and maintain the knowledge, skills and competencies related to their level and functions;

measures are taken to strengthen organizational leadership and promote innovation through the adoption of leading-edge management practices;

IVRCL believes that training and development is a continuous process. There is an expectation that staff will keep abreast of developments within their own area of expertise, and all staff are encouraged to undertake development activities throughout their working lives.

PROCESS

At IVRCL the learning programs are conducted according to the needs of employees, as well as organization. The programs are conducted both internally and externally. The number of programs conducted externally was 31 and internally were 33 during April 1st 2008 to Feb. 28th 2009. The employees trained internally were 1709 and externally were 119 during April 1st 2008 to Feb. 28th 2009 (Exhibit 3 & 4). Maximum amount was spent in conducting external programs Rs.639368. These training programs nomination are organized every month either in-house or externally according to the requirement and needs of the employee in the organization. Various institutes organize these programs for the growth and development of people as well as organization as a whole. Management has allocated Rs.100 Lakh for Training for FY2008-09 and we have our own facility for conducting In house training.

At IVRCL Training of Employees are done by to ways:

By training nomination, the employees who are required to be trained are nominated and then sent to the training programs, either internal or external.

By appraisal method the head of each department identify the strengths and weaknesses of their employees during the time of appraisal period.

Learning Center for Human Excellence is given at IVRCL, these are:

Establish learning center.

Fresher training.

Induction training.

In-house training.

External training.

Library facility.

Need Identification:

A training program should be established only when its need is felt in the organization in order to solve operational problems. The need for Training and Development is initiated and identified by the organization, for this performance appraisal forms are used as tool for performance management. During the time of appraisal the head of each department identify the strengths and weaknesses of their employees. This helps in knowing those employee who are required to be trainee further in order to increase their motivation, effectiveness towards his/her job. They also take into account senior management staffs who appraise their subordinates’ competency level for a particular job.

Classification/ Grouping of Needs.

The training and development needs are consolidated & are sequenced and are described as observable, measurable behavior involved in the performance of Task/Job. It involves a systematic process of identifying specific tasks to be trained. While deciding what to train, two guiding factors are used – – Effectiveness and Efficiency. The best program within acceptable cost is met. Often it helps to select tasks for training dividing them into two groups.

Job Related: The persons are trained according to the job demanded. This can be done through on-job training organized internally.

Behavioral Related: The persona re trained according to the behavior required in an organization and with outside world. This is also called as individual related behavior is to be measured as effective or ineffective.

Identification of Training Resources.

The company receives broachers from different institutes regarding various training programs which is about to be conducted in the following month or year.

The company conducts Management development programs (MDP) for training the employees internally. These are filed according to the dates and months mentioned there. The training resources both internal and external are identified and the training inputs which are required with the training are shared.

Preparation of Annual Budget & Approval

An Estimation of the cost should be done properly and then it should be implemented. Organizations must be able to plan and budget their resources. Preparation of perspective plan for training is made to make a realistic budget. If the budget is not correct for the first time still it is performed to give the training staff a goal to aim for.

If the resources to implement the best training strategy are not available or either ways all the personnel involved in the project are brought in on the decision making process. This includes both clients and training developers, this helps in making correction and getting approval by the concerned.

Preparing Training Calendar

When the broachers are received these are arranged and prepared date wise and month wise and are given to different department heads for their references. The training calendars should be in requirement with both individual and organization. These are prepared for a financial year from April to March.

Conducting Training Programs

The question arises where to conduct training and development programs the following choices are:

At the Job itself.

On the site but not the job.

Off site

The HOD of different departments looks at the training calendar and nominates the employees of their department who are required to be trained and sponsor them with the amount mentioned in broacher if done externally. Training done throughout side agencies shall be in compliance with the organization outsourcing policy.

The training programs conducted should adapt cost effective means both in-house and outside. It should not be affecting the work schedule of the organization.

Issue Training Feedback Forms

After the employees come back from training program they are issued the feed back forms and are asked for their feedback asking how they felt about the program, how is it beneficial to them, their views and suggestions? They are required to fill the forms honestly and carefully.

Collection of Feedback

The feedback is collected to know the program effectiveness and faculty /agency rating. This is done so that in future the same agency / faculty is approached further for training of other employees.

Summarize and Sharing the Feedback

After the feedback is collected it is summarized and shared with the HoDs/Divisions/regions and top management on regular basis.

Questionnaire on HR Practices

Name: Employee Code:

Designation: Dept.:

HR Practices Questionnaire

In this questionnaire, you are asked to describe Hr Practices of organization, as you perceive it.

1 Applicants undergo interviews in organized way (job-related questions, same questions asked of all applicants) before being hired.

A) Yes B) No C) I don’t know

2 Qualified employees have the opportunity to be promoted to positions of greater pay and/or responsibility within the company.

A) Yes B) No C) I don’t know

3 Applicants for this job take formal tests (paper and pencil or work sample) before being hired.

A) Yes B) No C) I don’t know

4 On average, how many hours of official training do you receive in this job each year?

A) 1 – 5 B) 5 – 10 C) 10 – 15 D) 15 above

5 Employees in this job regularly (at least once a year) receive a formal evaluation of their performance.

A) Yes B) No C) I don’t know

6 Do you think that Pay raises for employees in the job are based on job performance?

A) Yes B) No C) I don’t know

7 Were you updated with the HR Policies and Procedures frequently?

A) Yes B) No C) I don’t know

8 Does the employees are involved in processes like quality improvement groups, problem-solving groups, roundtable discussions, or suggestion systems.

A) Yes B) No C) I don’t know

9 Employees in this job have a reasonable and fair complaint process.

A) Yes B) No C) I don’t know