INTRODUCTION

Human Resource Management has evolved considerably over the past century, and experienced a major transformation in form and function primarily within the past two decades. Driven by a number of significant internal and external environmental forces, HRM has progressed from a largely maintenance function, with little if any bottom line impact, to what many scholars and practitioners today regard as the source of sustained competitive advantage for organizations operating in a global economy. Human resource management is a process of bringing people and organizations together so that the goals of each other are met. The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent. Personnel directors are the new corporate heroes. The name of the game today in business is personnel . Nowadays it is not possible to show a good financial or operating report unless your personnel relations are in order. Over the years, highly skilled and knowledge based jobs are increasing while low skilled jobs are decreasing. This calls for future skill mapping through proper HRM initiatives. Indian organizations are also witnessing a change in systems, management cultures and philosophy due to the global alignment of Indian organizations. There is a need for multi skill development. Role of HRM is becoming all the more important.

Some of the recent trends that are being observed are as follows:
The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people centric organizations. Organizations now need to prepare themselves in order to address people centered issues with commitment from the top management, with renewed thrust on HR issues, more particularly on training. With the increase of global job mobility, recruiting competent people is also increasingly becoming difficult, especially in India. Therefore by creating an enabling culture, organizations are also required to work out a retention strategy for the existing skilled manpower.

Objectives of HRM
HRM objectives can be broadly categorized into four types as presented below.

Organizational Objectives:
The primary objective of HRM is to build the Organization with quality and committed human resource and ensure the achievement of Organizational objectives. In retail individual performances are very critical to the Store environment.

Functional Objectives:
HRM should ensure that the right person is assigned to the right job at the right time. It should facilitate quality performance by way of providing appropriate human resource policy framework. In retail proper induction programme ensures this objective.

Personal Objectives:
HRM aims to assist employees in achieving their personal goals because these goals enhance the individuals contribution towards the achievement of Organizational goals through proper training and product knowledge. This is necessary to maintain, retain and motivate the employees in the Organization which will ultimately enhance employee performance and satisfaction.

Societal Objectives:
Organizations need to be ethically and socially responsible to the needs and challenges of the society. The HRM of an Organization should work for satisfying such societal objectives while minimizing the negative impact of such measures upon the Organization.

EMERGING CHALLENGES IN HRM

2

Human Resource Management (HRM) has a long history in India, as reflected by Kautilyas accounts in the Artha Shastra. HRM in the 4th century B.C. was more about logical but simple procedures and dividing the work force into Shrenis. Today, India is more strategically positioned in the global corporate map and HRM has become more complex. Global perceptions see Indias human resource as a low-cost, highly skilled, dedicated and knowledgeable workforce hence it has also become a major outsourcing ground. Human resource element works towards the Vision, Mission and Goals of an organization. The three roles of HRM in any organization are transactional, transformational, and transitional. The challenges faced by human resource managers in India are naturally evolving with the ever-transforming scenario in corporate India. Some of the major challenges which HR faces in India today are discussed hereunder. Much has been written about the rise of emerging markets and what they can offer in terms of talent pool. But not one emerging market is the same and one HR strategy may not fill all markets. In a changing environment, the HR strategies used to manage people in one country are sometimes ineffective in another and what worked in a country might not in another. That is the reality many companies are currently facing in emerging markets because of a lack of preparation, anticipation and adequate talent strategies. Generally speaking, there is no right or wrong HR management strategy. However, as an HR professional, you should be mindful of cultural differences and varying HR issues arising in the targeted country before trying to implement anything. Needless to say that developing an inadequate talent strategy in a BRICs country can be one of a most expensive mistakes for a company? Not only in terms of money, but also in terms of real and potential talent losses. In order to avoid such error, you need to know what are the hottest HR issues, topics and trends in emerging markets that could be an obstacle to your company's development? To help you in this task, below is a list of HR challenges arising.

Attracting and retaining talented workers

INDIA - In spite of the huge talent pool available in India, companies have trouble recruiting qualified workers because the quality of talent is not as good as it could be. By looking closer at the workforce available, it is estimated that only 25% of Indian professionals possess the skills required by companies. Regarding to the skilled candidates, they are highly attractive, mobile and willing to switch industries in order to play different roles and increase their salary. As a consequence, HR teams waste a lot of money as well as time because of this flow of people entering and exiting companies? What is more, foreign companies operating in India have to compete not only with Indian companies but also with companies from Korea, Japan and Hong Kong who are poaching the best Indian talent. As the population of these three countries is becoming old very fast, many of companies from there are turning their attention to Indian workforce.

Managing the career expectations of Gen Y

INDIA - The Gen Y is writing the new code in Indian workforce. Mature enough to play crucial roles in companies, they can, however, be a nightmare for HR teams as they are more inclined to leave companies than any previous generation. Apart from the attraction and retention of Indian Gen Y, the biggest challenges today are communicating with them and offering them a rapid career evolution. In fact, the typical Gen Y Indian worker wants success to come to him/her fast and money faster. As most of India's high-potential workers (around 64%) and middle managers (around 55%) are Gen Y, the future of India - as well as companies operating there - rests on its ability to engage this generation.

Management of Diversity
When an organization has people of different ethnicities and a greater proportion of women than the industry average, naturally the question arises as to how to reconcile the differences between these employees without causing too much friction in everyday interactions. Managing diversity is important as otherwise the performance of the organization takes a hit and worse, there can be possible lawsuits and legal tangles from disaffected employees who feel aggrieved because of instances of discrimination and harassment based on their ethnicity or gender.

Implementing the Cutback

4

The first issue to decide is the type of cutback that will be implemented. If immediate cuts are necessary, it is likely that the company will resort to layoffs and early retirement incentives. If a reduction is needed over time, a hiring freeze might be an alternative solution. Each scenario presents challenges for implementation. The company must decide how to announce and implement each option, avoiding any adverse impact or perception of discriminatory practices. Human resources must ensure that any policies or collective bargaining agreements are adhered to. If the workforce is unionized, the company must meet with the union and confer over the impact of the action -- although not necessarily the decision itself. During implementation, human resources must work to address rumor control and provide as much information to employees as possible. Job placement services, employee assistance programs and financial counseling are all services that human resources should consider offering to affected employees.

Employee Morale
In the aftermath of a mass downsizing, employee morale will undoubtedly be affected. Employers should strive to be as open as possible during the process. Information should not come as a surprise to employees. If the company repeatedly assured workers everything was fine before announcing an unexpected layoff, it will be difficult to regain the trust of the workers who remain. Similarly, if the company focus has always been on meeting the needs of employees and taking active steps to motivate and encourage staff, a forced layoff may actually be more detrimental because it is so contrary to employees' expectations of the organization. Management and human resources should meet regularly with employees to keep them informed, answer questions and respond to concerns.

Loss of Knowledge and Skills

Any downsizing of the workforce is likely to result in the loss of key knowledge and critical skills. In the case of a voluntary separation program or early retirement initiative, the problem is compounded because the company has much less control over who leaves the workforce. This can create an uneven loss of skills across the organization. Since early retirement incentives apply primarily to older workers who generally have more tenure with the company, the loss of institutional knowledge is a real concern. Human resources managers need to structure the downsizing where possible to allow time for
5

transfer of critical skills. Business processes may need to be reorganized and reengineered, and staff may need to be reallocated to areas that have been significantly affected by employee departures. Because turnover increases in the wake of a layoff, human resources must connect with key workers to outline their importance to the organization and provide information about how the company plans to recover. HR should also detail future career opportunities that can be realized by remaining with the business.

Workers' Compensation
Trends in workers' compensation reveal that claims increase immediately following company downsizing. This may be due to several reasons. Employees at risk of layoff may have been reluctant to file, but once laid off there is nothing to lose. Remaining employees are working harder and longer because there are fewer employees to get the work done. However, workers' compensation may also be seen as a form of income replacement for employees who have been let go, and human resources must review each claim carefully to identify any potentially fraudulent claims. Although stress claims from the fear of layoff have traditionally been denied by the courts, stress claims from the actual termination of employment have been accepted in California. Clear documentation, particularly regarding the layoff process itself, is important. It may be worthwhile having employees complete an exit interview as this documentation can be used later to refute fraudulent claims. Workers' compensation claims have been shown to decline when a consistent, fair and compassionate approach is taken by the employer in everyday operations.

Managing globalization
It is important for an HR Manager to study people management practices before implementing new practices which are global in nature. It has become a challenge for the HR to educate its workforce on how globalization can be leveraged and how an individual employee benefits or is affected by it. Instead of thrusting new practices upon them, it is ideal to study the existing practices which are in place.

Developing leadership skills

It is not just about knowledge, experience and expertise it is also about developing the right soft skills to give shape to the future leaders. Since the global economic and industrial scenario is very volatile and dynamic, what is required now is a skill set in the workforce which distinguishes them as team leaders.
6

Managing change
Change management is the call of the day with big organizations integrating Six Sigma methodologies in their businesses. Change management defines the response of the business to the changing external and internal environment. The industrial growth scenario in India demands that there should be change brought about within all factions of the industry. But there are internal and external forces which resist the change. It is a huge challenge to influence the resisting forces with the organization, manage internal conflicts, motivate them to embrace change and implement the changes.

Developing work ethics

With back to back slumps in the global economy, India has not remained unscathed. Employee morals and loyalty are being tested in a businesss day to the day functioning. It has become very important to re-instill cultural values, loyalty, respect for the weak and elderly, and infuse qualities like empathy, charity, austerity, team spirits, ethics and bonding in the workforce.

Retaining Talent
Yes, this is one of the major challenges which HRM faces today. Poaching and cut-throat competition has given an impetus to high remuneration to the deserving. People have gained exposure and their yearning to rise is sees them changing loyalty and organizations very frequently. This is especially observed in the IT and ITES sector. To manage low attrition rates and retain talent has become a mammoth hurdle which all organizations want to cross in order to reach their goals.

Managing fast changing technological trends

Most large and medium scale organizations today prefer to be technologically oriented. The technological trends in todays global scenario are fast changing. Educating the human resource about these changes, upgrading their knowledge and motivating them to learn, absorb and come out of their comfort zones is a great challenge faced by many organizations.

Developing Accountability
7

With the advent of Six Sigma methodologies, organizations have lowered their tolerance levels for mistakes, errors and delays. It is a challenge which HRM in India is facing like its global counterparts. It is not easy to train people to shoulder responsibility.

Managing workforce stress and employment relations

HR is the face of an organization. It hires and fires employees and if the HR of an organization is not emphatic towards its workforce it does not help in employment relations. This factor is fast becoming a challenge for HRM especially in sectors like hospitality, IT and allied support services, media and entertainment.

Managing inter-functional conflict

Earlier it was the friction between different levels of an organization and now the new emerging challenge for the HR is to manage inter-functional conflict within an organization. With organizational restructuring becoming common in the past few years, disputes and friction between different functions has been on the rise.

Managing workplace diversity

With globalization and Indias economy changing gears to accelerate growth, organizations hire as well depend on a people from different countries, cultures and ethnicity. To manage the diverse workforce who have fairly diverse physiological and the psychological influences, is also a huge challenge for the HR in the emerging Indian economy.

Dangerous workplaces
Employees are accepting assignments that take them to unsafe places in the world. These assignments are often shorter term, but increasing in frequency. Compliance recommendations include recognizing by country and assignment the continuum of threats, and establishing centralized policies and multi-disciplinary teams to respond.

Social media and global privacy

The line between ones work life and private life has been permanently blurred by technology. Laws permitting background checks using social media are changing the landscape of employment law and differ substantially between countries. Employers need vetted global privacy policies that also recognize the inevitability that personal smart phones and tablets will increasingly be used in business. Employers also need to consider how they will retrieve business information after an employee leaves as this
8

information can be housed in a social media channel. For example, decide whether LinkedIn profiles are the property of an individual employees company.

Whistleblowing and overcoming corruption are a business priority

Worldwide governments are providing incentives for whistleblowers and promoting a business culture that embraces and protects whistleblowers. Whistleblowers have emerged as ethical heroes and this new culture is embodied in the Foreign Corrupt Practices Act, the U.K. Bribery Act and a recent push in Europe to strengthen whistleblower protections.

The new face of discrimination

New trends in discrimination include migrant and social origin discrimination globally. Employers also need to be aware of discrimination liability related to economic adversity and discrimination against the unemployed. Outside of the U.S., unemployment discrimination may be considered a form of social origin discrimination.

Third party funding of litigation

Whistleblowers are proving to be a new market in which hedge funds are investing. Employers should monitor institutional funding entitles for divisions supporting litigation funding and express opinions. Employers should also consider this developing trend when assessing ROI on compliance programs.

Global mobility
Related to the arbitration trend below, employment contracts are critical to global mobility. A confluence of demographic trends, including the fact that some countries have as high as 70 percent expatriates or migrants in their workforce, and the increasing popularity of short-term assignments require employers to consider a number of issues. Those issues could range from tax issues in advance of an overseas assignment to bringing an employee to his other home country before termination.

Rise of the contingent workforce worldwide

This trend is an economic certainty and presents multiple employment law compliance issues ranging from joint employer liability to compliance with globally different wage and benefit statutes. Employers should identify their contingent workers including independent contractors, who are under classification scrutiny by revenuehungry taxing authorities worldwide. Expanding compliance systems to encompass the growing contingent workforce is essential.

Technological developments
This will require retraining and mid-career training of both workers and managers. Rise of the international corporation is proving new challenges for personnel function.

Changing composition of work force

In future, women and minority groups, SCs and STs would become an important source of man power in future on account of easy access to better educational and employment opportunities. Therefore manpower planning of every organization will have to take into consideration the potential availability of talent in these groups. Changing mix of the workforce will lead to new values in organizations.

Increasing government role

In India, personnel management has become very legalized. In future private organizations will have to co-ordinate their labour welfare programmes with those of the government private sector will be required increasingly to support government efforts for improving public health, education training and development and infrastructure.

Occupational health and safety

Due to legislative presence and trade union movement, personnel management will have to be more healthy and safety conscious in future.

The Healthy Workplace: Wellness, Work-Life Balance

There is no competitive advantage in sick and stressed-out workers. There is growing recognition that there is a definite link between the work environment and the health and well-being of its employees. Further, employers are now recognizing the connection between employee health and the bottom line. When we look in the mirror, we see ourselves as entire human beings not just people with jobs and careers, but people with families, friends, beliefs, interests, passions, responsibilities, worries and futures. We need to look at our people through the same mirror not just as employees or colleagues but as total human beings. If companies ignore the full humanity of their people, or if people find it necessary to suppress their human-ness in the workplace, the tensions created eat away at the vitality of the organization.

The Impact of Technology

Eventually technology is going to eliminate most HR jobs as they exist today. Which is another reason for HR professionals to become more strategic. Technology, with all its selfservice and anytime-anywhere communications capabilities, coupled with outsourcing, guarantees there will be fewer HR people in corporations.

10

Technology continues to impact us profoundly, both in our personal lives and in the workplace, and it will continue to change. Weve entered the century of the employee and technology has to respond. CRM or customer relationship management is giving way to ERM employee relationship management. Employee self-service has become as important as customer self-service. Customized and personalized content will be king.

Talent Management: Leadership Development

Leadership skills are not built through courses. Management is a function of what you do; leadership is a function of what you are. When planning leadership development initiatives, the tendency is to first look for courses. One of the scarcest capabilities, now and for the likely future, is leadership. As organizations, their customers, their employees and their environment become more global, more complex, more competitive and more subject to rapid and radical change, the competency requirements for successful leadership are increasing exponentially. Most organizations would acknowledge that they currently have a shortage of leadership talent or bench strength; how will they fare when the bar keeps on being raised? Leadership is less definable and therefore leadership capabilities are more difficult to build or transmit. Indeed, one could debate whether leadership skills can be taught at all, or whether they are innate.

This is not an exhaustive list of some of the challenges of HR in India which includes many other factors like retrenchment and downsizing specifically in the BPO and finance sectors, managing knowledge workers, occupational shifts, trade unionism in the public sector and manufacturing sector, limited exposure and research in the field of human resource management and limited training resources to handle.

SOLUTION FOR ABOVE MENTIONED CHALLENGES :

11

WORKFORCE DIVERSITY
Work Force as an Opportunity
Managing diversity can create a competitive advantage. Potential benefits of this diversity include better decision making, higher creativity and innovation, greater success in marketing to foreign and domestic ethnic minority communities, and a better distribution of economic opportunity. Organizations with a diverse workforce can provide superior services because they can better understand customers needs. Diversity enhances creativity and innovation and produces competitive advantages.

Challenges and Opportunities

Managing a diverse workforce can be challenging, but it is worth the effort. Diversity in the workforce can prove tobe a source of strength and, ultimately, a great competitive advantage. Diversity management, however, goes far beyond complying with legislation or implementing an employment equity plan. Diversity management involves integrating all members of the workforce and using their diversity to make the organization more effective. Programs are required that will make the organization more flexible, encourage the exchange of new ideas, improve problem-solving and decision-making by inviting different perspectives, and create a respectful and accepting work environment. Organizations that can attract, engage, retain and capitalize on the skills of a diverse workforce will have a competitive advantage over those that cant. They can attract more diverse employees and customers. This is a key to success in a global economy.

Workplace diversity includes:

Age Gender Ethnicity (including culture, nationality, language, and race) Values Physical and intellectual ability Familial obligations Sexual orientation Educational level Economic class Personality type
12

Physical appearance (e.g., height and weight) Skill Experience Other differences

Solutions
There are many types of diversity programs: Diversity training for managers and employees. Diversity-related networks, councils or task forces. Diversity marketing (e.g., advertisements, sponsorships of community events). Cultural events and celebrations. Conferences, forums and other diversity-related learning events. Targeted recruitment campaigns. Diversity-related lunch and learns. Specific accommodations for persons with disabilities. Flexible work hours or work arrangements. Work-life initiatives. Quiet rooms (e.g., prayer rooms, breastfeeding rooms).

Why should we strive for diversity in personnel?

An often heard argument to avoid having to put energy into diversity is that it only leads to misunderstanding, undesired formation of groups, communication problems and conflicts in the work force. When put like this, paying attention to diversity seems a useless investment. But demographic developments cannot be ignored. In situations like labor shortage, organizations cannot permit themselves to exclude a substantial part of the labor force. Diversity in personnel has different advantages pertaining to business economics: Attraction for a wider group of customers: more people can identify with the organization. This could increase your turnover; More creativity within the organization: diversity leads to innovative products and services, which is necessary to compete with other businesses; An improved business image: more people see you as an employer of choice. Diversity covers a wide variety of issues, including communicating with employees, whose first language is not English, helping a diverse team cope with conflict, learning which rewards are valued by different groups, and dealing with discrimination.

IMPORTANCE OF DIVERSE WORKFORCE

13

Our Nation is made up of people from diverse backgrounds, cultures, customs and beliefs. It is those differences that contribute to the richness and strength of our society. Like our Nation, the workforce Is also becoming more and more diverse. As a result, in order to recruit, hire and retain the best people from every background and community, we must foster diversity in our workforce, manage it effectively, and value what it has to offer. A diverse workforce is critical for any organization that seeks to improve and maintain a competitive advantage. Focusing on diversity and looking for ways to achieve an inclusive environment is not just a nice to have objective, it makes a good business sense. A diverse workforce offers greater productivity and a competitive edge. Diversity improves the quality of our workforce and offers a higher return on our investment in human capital. Our agencys future depends on the quality of employees we recruit today. New employees often consider an organizations diversity efforts when deciding whether to accept or reject an employment offer. Potential candidates are usually more attracted to employers that are committed to sustaining a diverse workforce. Moreover, diverse perspectives increase creativity as they offer different perspectives, ideas and solutions.

BENEFITS
People have a lot of viewpoints and having people from many backgrounds and places in life brings a lot of those viewpoints into the mix. In some situations, a lot of viewpoints give us a lot of options. Plus, since there are many different viewpoints and environments in the workers, there are many opportunities for these different viewpoints to come into the planning of strategic initiatives, allowing the firm to serve a wider group of consumers and interests. The Various advantages of having a diverse workforce are the following; 1. It helps motivating employees. 2. It enhances the innovation and creativity of employees. 3. It helps in reducing cost. 4. It creates flexibility in the organization. 5. Immediate access to problem solving. 6. Easy transfer of knowledge. 7. Better marketing structure. 8. Innovative work environment. 9. Immediate outcomes. 10. Fulfillment of social responsibility. 11. It helps attract and retain employees.

14

In this era of economic globalization, many companies are making efforts to achieve workforce diversity, which aims to employ workers from different backgrounds to provide tangible and intangible benefits to the organization. Understanding the advantages of workforce diversity helps you establish an organization with a competitive edge. This can include employing workers with cultural and language skills that can lead to greater reach for the business. Diversity experts believe that heterogeneous groups can contribute more creative ideas to the mix.

Increase in Productivity
Workforce diversity can bring about an increase in productivity and competitive advantages. conclude Kelli A. Green and her University of Florida colleagues in their paper, "Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools." Employers can offer more solutions to customers because of new ideas and processes brought into the organization. Workplace diversity increases employee morale and causes employees to desire to work more effectively and efficiently. Diversity in leadership within a firm allows managers to bring in new skills and methods for achieving unity within their teams.

Attract The Best Talent To Contribute To Your Business

If an organization has built a reputation for its workplace diversity, it stands to attract the best available talent and skill in the market both domestically and abroad. The company will be able to recruit the best available talent from around the globe to work on projects located in the far corners of the world as part of virtualteams. Companies will be able to develop synergies with strategic partners located in far awaymarkets. A company can market its products more easily, taking advantages of the different languages of its staff to develop and maintain distribution partners once thought impossible to reach. Why? Workforce diversity means the ability to conduct business worldwide through the varied experience of its employees.

15

Build A Globally Competitive Workforce

Building a microcosm of the world in the workplace, equips managers with the kinds of skills to compete effectively, with efficient services and a wide reach of resources. A diverse workforce not only brings professional skills into the office, but also brings people of different cultures fluent in various languages and who are capable of understanding international customers' everyday needs.

Enhance Problem-Solving Efficiency

Imagine having a diverse workforce comprising different age groups, education, experience and genders, and being able to brainstorm a business problem located on another continent. This was once thought unachievable. Today, it is standard business practice for an organization facing fluctuating trends and demands. What is most effective thenis to have a workforce capable of generating a pool of multiple solutions and ideas. Workplace diversity is now recognized for this crucial rolein effective-problem solving.

Avoid Conflicts, Increase Individual Performance and Retain Your Workforce

An unhealthy work atmosphere is often the root cause of high attrition levels in a company. People, however, require a feeling of belongingness and security. When they feel supported in their ideas and beliefs they become more productive. At core, all among today's skilled workers expect be treated fairly and with respect. If not, they will soon find plenty of work elsewhere. Turnover is expensive and unproductive. Moreover, stakeholders are now demanding that any organization they invest in must conform to practices that encourage low employee turnover, provide a healthy work environment that rewards team performance and empowers workers to express themselves with an open mind.

Increase in Creativity
Workforce diversity increases creativity within a company because heterogeneous groups are cross-fertilizing one another within the organization. According to EthnoConnect, a consulting company specializing in workforce diversity, employees from different backgrounds bring in a variety of solutions on how to achieve a common goal. As more diverse ideas are suggested, the chances of finding a workable answer are improved. In atmospheres when brainstorming is necessary, more ideas are formed because team members are culturally diverse. For example, employees from China working in American companies may

16

approach a problem totally differently than do American workers. Some companies have successfully created innovative processes by taking ideas from several employees.

Language Skills
Companies that plan to expand into global markets benefit from language diversity in the workplace. For example, a company with employees fluent in Japanese and who understand Japanese culture experiences an easier time communicating with representatives from Japan. Many bilingual workers experience an advantage when applying for jobs because employees understand the benefits of language diversity. Another example can include a company that hires employees fluent in Mandarin to increase the company's reputation in Chinese communities. An increased presence usually results in an increase in sales.

Positive Reputation
Job seekers are drawn to companies with diverse workforces because it is evident that the companies do not practice employment discrimination. Potential employees want to know that employers treat their staff fairly regardless of race, ethnicity or gender. Not only are such firms able to attract new talent but they can also retain existing talent because of high employee morale resulting from workforce diversity. According to Rob McInness of Diversity World, top talent is no longer represented by a homogeneous group, but one representing people from many different backgrounds and life experiences.

Best Practices in Workforce Diversity

Todays organizations are beginning to understand the power of diversity, all the way down to the bottom line. The following are 10 best practices in workforce diversity that almost any organization can implement. 1. Define diversity broadly. Organizations found to be most effective in their diversity efforts define diversity broadly, beyond race and gender, to include all of its dimensions. This means that everyone is included in this thing we call diversity. It is important to help employees understand that diversity includes all characteristics and experiences that define each person as an individual. 2. Commitment to diversity starts at the top. Success in workforce diversity begins with an active and visible commitment by senior leaders. Diversity strategies are doomed or severely limited without a sincere commitment from the top. Enough said! 3. Align diversity goals and objectives with organizational mission and goals. Best-of-class organizations align diversity goals and objectives with the company s mission and goals.
17

Diversity, thereby, becomes integrated as an organizational priority. Consider making diversity a core value or strategic objective of the organization. 4. Make the distinction between diversity and Affirmative Action/EEO. Designed to correct historical wrongs, Affirmative Action programs have been instrumental in opening doors of employment opportunity for women and minorities, and Equal Employment Opportunity (EEO) laws have prohibited discrimination in the workplace. While Affirmative Action and EEO help to complement a workforce diversity strategy, they are not synonymous with diversity, and it is important to make this distinction. Diversity is proactive, as opposed to reactive, and calls for change within the culture of the organization. With inclusion at its core, diversity favors all. 5. Present your business case for diversity.Diversity is more than a moral imperativeit is a business opportunity. This message must be clearly communicated to the workforce. A quick review of demographic shifts within the U.S. population and marketplace provide ample rationale in support of diversity. However, it is equally important that organizations examine and share data related to current and projected demographics within their specific market or community. Who are you serving now? Who will you be serving in the future? Does your workforce adequately reflect your customer base? Use hard data to support your business case for diversity. 6. Create a diversity plan and hold leaders and managers responsible for diversity.Implementing diversity is not a single persons responsibility. To be effective, responsibility for diversity must be shared throughout the organization; its leaders and managers must be held accountable for diversity goals and measurable results. 7. Increase the numbers of underrepresented populations at all levels of the organization. Organizations should make it a priority to increase their number of underrepresented populations throughout various levels of the organization. Most often, this means expanding the numbers of racial and ethnic minorities, female executives and people with disabilities. Remember that a diverse workforce better serves a diverse customer base, enhances innovation, makes the organization more adaptable, and often increases financial performance. 8. Manage inclusion. Like other major changes within an organization, changes in workforce composition must be managed. Through strong and consistent communication, information sharing, and diversity education, employees must be prepped for anticipated changes. Demographic shifts create tension in organizations, and tensions often challenge our conditioning. Proper management of an inclusive workforce, however, can result in longterm benefits overall. Stay the course and understand that building harmony takes time and patience. 9. Establish an internal diversity committee. A company diversity committee can be instrumental in engaging employees to take an active role in diversity initiatives. The

18

committee can plan diversity awareness events and activities, disseminate diversity education information and materials, and serve in an advisory capacity to senior leaders. 10. Provide a safe place for dialogue on diversity issues. Employees need to be able to communicate their concerns and/or satisfaction-related to issues of diversity. Honest, open dialogue can be healthy for individuals and organizations, but must be accommodated by safe, supportive environments for sensitive dialogue. Facilitated study circles, peace circles or roundtable discussions can be used to implement productive dialogue on diversity.

Diversity Helps Business

By creating a larger talent pool, helping organizations to attract and retain the best available talent, which makes firms more competitive. By enhancing marketing efforts. A diverse workforce better serves a diverse customer base, offers better insights into customer needs, and markets can be segmented along diversity group lines. By increasing creativity in organizational processes. A diverse workforce possesses more innovative ideas, creative approaches and diverse strategies for dealing with organizational issues. By improving problem solving.A diverse workforce offers new solutions, expanded critical analysis and higher quality decisions. By creating organizational flexibility, with less tradition-bound and more divergent thinking. Accommodating diversity makes the organization more adaptable to other organizational issues.

19

EXAMPLES OF DIVERSITY : INFOSYS

Globalization has changed the character of the modern workplace global companys employee base should reflect the diversity of the world it serves. Infosys strives to employ people representing the widest possible variety of nationalities, cultures, genders and gender identities, sexual orientations, employment histories, and levels of physical ability. In doing so, the company is able to recruit new employees from all available global talent pools and provide paths to employment to all members of world societies, including talented individuals from groups who may have in the past been underrepresented within the IT industry. Within such a diverse company, people bring to the workplace contrasting opinions and worldviews. As these people interact, they develop new ideas, methods, and perspectives. Infosys recognizes and promotes this power of diversity to drive innovation. Infosys actively fosters inclusivity across all of its business units and in every one of its company offices. It encourages all employees to focus on the commonalities they share and leverage their differences towards productive teamwork. Inclusivity ultimately makes for a more informed and sensitive employee base that is better able to serve clients. Infosys was the first Indian IT company to establish a company office to manage and drive all company initiatives dealing with diversity and inclusion. Today they have employees from over 70 countries. Women constitute more than 32% of their workforce. Infosys Women Inclusivity Network (IWIN) promotes a gender-sensitive work environment. IWIN recognizes the unique aspirations and needs of women. It provides avenues for vocational, personal and psychological counsel to enable professional and personal development. Infosys won the first NASSCOM-India Today corporate award for excellence in gender inclusivity in 2007. Infosys actively seeks to hire and train persons with disabilities. In 2006 and 2007, Infosys BPO received the Helen Keller award for the best employer from the National Centre for Promotion of Employment for Disabled People (NCPEDP). Infosys announced an intake of 300 graduates from universities in the US in 2006 and about 25 from universities in the UK in 2007 as part of its commitment to create a diversified workforce. The new employees will develop their engineering skills at Infosys Development Centers across India for six months before returning to Infosys offices in the US.

TCS
20

Diversity in companies is no longer about being melting pots, but being salad bowls," according to Grady Searcy. "We want people to retain their identity yet be integrated into the company Currently, 7.5 per cent of our workforce consists of non-Indians," said Mr. S PADMANABHAN,EXECUTIVE VICE PRESIDENT and head Global human resource, TCS said while speaking at the NASSCOM HR Summit on `The War for Talent' held recently in Chennai. In a session on managing cross-cultural teams, speakers emphasized that managing a diverse workforce is no longer a choice, but an imperative. The Indian workplace is no different from global MNCs.TCS has announced plans to hire about 4,000 people from across the world.

WIPRO
Wipro launched of its Women of Wipro (WoW) initiative, coinciding with the international Women's Day. Wipro honored its women workforce with the title of 'Green Ambassadors' besides felicitating women achievers. The WoW initiative has been launched as a chapter of the Wipro's Diversity Council, as the company's Green Ambassadors will influence a change in the environment by undertaking various projects that emphasize on the aspect of 'Green'. The initiative will be driven by the Green Ambassadors at a personal level. WoW will also work towards creating visibility for its female leadership, both internally and externally. Building sustainable and growing networks that contribute to the success of business, the community and self-development would be the other highlight of initiative. Wipro Chairman Azim Premji said: "In Corporate India, I have been seeing very positive shifts in the last few decades that have made it easier for women to contribute to organizational growth. There are many instances where the so-called glass ceiling has been shattered. There is no doubt that having more women in an organization can help in making it more profitable." Eco Bags specially made for women employees were given away on the occasion. The 'Eco-Bag' contains quick and easy list of green steps, called "Shades of Green". Going forward, the WOW charter will include several initiatives that have a significant social impact and where women can play a catalytic role in ushering change. The Core Diversity Council has been set up to breathe life into these initiatives so that they don't remain buried in a PowerPoint presentation. The council consists of representatives from every function at a senior level.

MENTORING
21

What is mentoring?
Mentoring has been defined in many different ways but it's basically a system of semi-structured guidance whereby one person shares their knowledge, skills and experience to assist others to progress in their own lives and careers. Mentors need to be readily accessible and prepared to offer help as the need arises - within agreed bounds. Mentors very often have their own mentors, and in turn their mentees might wish to put something back and become mentors themselves it's a chain for passing on good practice so that the benefits can be widely spread. Mentoring can be a short-term arrangement until the original reason for the partnership is fulfilled (or ceases), or it can last many years. Mentoring is rather more than giving advice, or passing on what your experience was in a particular area or situation. It's about motivating and empowering the other person to identify their own issues and goals, and helping them to find ways of resolving or reaching them - not by doing it for them, or expecting them to do it the way I did it, but by understanding and respecting different ways of working. Mentoring is not counselling or therapy - though the mentor may help the mentee to access more specialised avenues of help if it becomes apparent that this would be the best way forward.

What's in it for you?

As mentee

Being able to change/achieve your goals more quickly and effectively than working alone. Building a network of expertise to draw on can benefit both yourself and others.

As mentor

Mentoring is voluntary but extremely rewarding, and can benefit your own skills development and career progression. You need to be the sort of person who wants others to succeed, and have or can develop the skills needed to support them.

BENEFITS OF MENTORING

22

It becomes difficult to discuss the benefits of mentoring because formal and informal mentoring can be experienced quite differently. The role of the mentor, too, can vary enormously. For example, the intensity of the emotional relationship between mentor and protg described by Levinson et al. (1978) is not usually a characteristic of formal mentoring relationships where a senior mentor is routinely assigned a junior mentee in the organisation for a short period of time to inculcate the junior into the culture, norms and processes of the organisation. With this said, even within formal mentor programs, there can be considerable diversity and difference in orientation, context, and outcomes. For example, a formal mentoring program for an MBA graduate in a government department would be quite different from a formal mentoring program in a hospital where a student nurse is assigned to work with a nurse facilitator. While some processes may be common (e.g. information sharing and psychosocial support), it is likely that the fundamental goals or aims of the mentoring process would vary considerably in these situations. It seems that some mentoring programs have specific foci, such as improving academic performance (e.g. Hylan & Postlethwaite, 1998; Wrightsman, 1981), while others are concerned with inducting or socialising novices into a new role, such asMBA graduates. Affirmative action mentor programs also have a particular focus, since they are intended to provide learning and development opportunities, as well as fostersupportive relationships and environments for members of minority groups within a range of settings, such as corporations (Ball, 1989). Although the context and the goals of the mentoring arrangement does colour its particular orientation, an attempt is made in the next section to outline a number of benefits of mentoring for mentors, mentees (or protgs) and organisations. A brief summary of the benefits of mentoring programs is provided below in Table 1.

Table 1

23

BENEFITS OF MENTORING PROGRAMS

Benefits to the Organisation

Murray and Owen (1991) identify several benefits of formal mentoring programs for the organisation. Some of these include increased productivity, improved recruitment efforts, motivation of senior people, enhancement of services offered by the organisation and improvement in strategic and succession planning. An important benefit which was identified earlier in the paper for mentees is the development of skills and knowledge necessary for carrying out the role. It is evident that organisations can only benefit by developing their employees abilities and workperformance. Some of these benefits are discussed below. The development of managers or workers who can carry out the work effectively is one of the benefits of mentoring for the organisation. Induction is a highly appropriate means of developing employees which enables them to understand the new and competing demands of the position. Increased commitment has also been identified as a benefit for the organisation. According to Murray and Owen (1991), cost-effectiveness is one of the major benefits of mentoring. As they state, mentors tend tocarry out their coaching role in conjunction with their regular position. The advantage is that mentees are afforded the opportunity to work with an experienced other (usually on a one-to-one basis) and there is no cost incurred for training, training rooms or trainers. With this said, however, there is little empirical research which supports this particular benefit. The final benefit to the organisation that is discussed here is improved organisational communication. This is saidto occur because mentors and mentees share knowledge and
24

information regarding important matters in the organisation (Antal, 1993). A study by Geiger-Dumond and Boyle (1995) of a formal one year long mentoring program found that improved communication at senior and junior levels was one of the successes of the program.

Some more Business benefits of using mentoring and coaching within your organisation

Prepares potential high flyers Develops your future leadership pool Attracts new employees Retains current employees Supports change programmes Improves communication Grows your management team Encourages self-development Reinforces diversity initiatives Better networking opportunities Makes employees feel valued Challenges personal thinking Stimulates employees RELEASES POTENTIAL!!!

Job Security and Benefits Most Valued by Employees

For the fourth year in a row, employees ranked job security and benefits as the top two very important contributors to job satisfaction over other factors such as career development, flexibility and compensation, according to the2010 Employee Job Satisfaction survey report released June 27 by the Society for Human Resource Management (SHRM) at its Annual Conference here. HR professionals agreed on the importance of job security, ranking it second. However, for the last seven out of eight job satisfaction surveys

25

fielded by SHRM, HR professionals have viewed an employees relationship with his or her immediate supervisor as the top contributor to employee satisfaction, selected by 72 percent of respondents for 2010. By comparison, less than half (48 percent) of employee respondents felt that such a relationship was very important, ranking it seventh. Employees Top Five Job security Benefits Opportunity to use skills/abilities The work itself (TIE) Organizations financial stability (NEW) Compensation/pay Rank 1 2 3 HR Professionals Top Five Relationship with supervisor Job security Communication between employees and senior management Organizations financial stability (NEW) ---

4 4

Opportunity to use skills/abilities

A total of 25 elements of job satisfactiongrouped into categories related to career development, compensation and benefits, relationship with management, and work environmentwere covered by the survey. According to the report, compensation/pay, a factor that has appeared on employees top five list each year since the surveys inception, fell to fifth place for the first time. Compensation dropped out of HR professionals top five list for the first time in 2009 and now appears ninth on the list of most important contributors to job satisfaction. Employees and HR professionals agree on certain factors. For example, opportunity to use skills/abilities has appeared in the top five for employees and HR professionals for the last three years, though employees bumped the factor up from fourth place to third in 2010, while HR professionals nudged it down from fourth place to fifth. Notably, for the first time since the survey was first fielded in 2002, benefits slipped slightly on HR professionals list, falling to seventh place even though the same percentage60 percentof HR professionals and employees agreed that benefits are very important. When it comes to benefits, health care reigns supreme, according to employees and HR professionals, though paid time off was a close second. However, even though 65 percent of employees said such benefits were very important, just 38 percent said they were very satisfied with the health care/medical benefits provided by their employer. By comparison, 54 percent of employees said they were very satisfied with paid-time-off

26

benefits. Employers will want to consider these results as they evaluate the impact of health care reform on their benefits offerings. Yet, it is important to note that employees do not derive satisfaction just from money and perks. The work itself tied for fourth place on the employee list in 2010, with 54 percent of respondents noting its importancethe largest percentage to date. Just 40 percent of employers selected this factor as very important, however, ranking it 13th on the list of 25 factors covered by the report.

Importance of a Strong Handshake in the Workplace

by Laura Acevedo, Demand Media

The optimal business handshake strikes a balance between a forceful grip and a limp noodle. The extended hand should fully engage with the other person's hand for the most impact. Weak handshakes that only grip fingertips may make a negative impression on a new business contact, coworker or customer. Likewise, a vice-gripstyle handshake presents an overly aggressive stance. How you shake hands provides subtle nonverbal cues about your personality, business style and negotiating techniques. First Impression You never get a second chance at a first impression in business. A strong handshake sets the tone and the perception of your abilities. Impart a strong first impression on customers, business prospects, hiring managers or new employees by offering your hand and looking them in the eye when offering a greeting or introducing yourself. This type of introduction bolsters your image and sets a solid foundation for a new job or business relationship.

Trust
A firm, strong handshake transmits your underlying confidence in yourself and your abilities. When individuals feel your confidence, it helps instill trust in your words and work abilities. Working from a foundation of trust is important to advance sales opportunities, gain employment, attract competent employees and obtain business partners.

27

Self-Promotion
A strong handshake may help you land a job, gain a promotion or score a lucrative client. The right touch allows you to indicate your self-motivation, desire to achieve and assertiveness. These assets translate well to most workplaces. Subtly presenting your assets through nonverbal cues helps support claims on your resume, your business accomplishments and conversations.

Salaries and job security rising in importance

More companies offering incentive schemes but employees not consulted on choice of rewards. Many organisations reward those who do not achieve targets Salaries and job security have overtaken effective leadership and a good relationship with the boss as the most motivating factors for people at work in the last twelve months. There has also been a significant rise in the percentage of companies offering reward schemes. These are among the revealing insights to emerge from the fourth annual motivation survey published by Capital Incentives & Motivation Ltd, the leading incentive and motivation specialists. While being treated fairly and having good relationships with colleagues remain top priorities, the most notable changes are the importance of salaries, which rose from being 47% to 57%, job security which increased from 42% to 52% and good benefits which rose in importance from 23% to 47%. The results also show that the proportion of employees whose companies offer reward schemes increased significantly from 47% to 68%. However, only 22% of companies consult their employees about what type of reward they would like before finalising the scheme. When asked about the types of awards received, the answers from participants revealed that the proportion of companies offering cash as m/f rewards has remained fairly static at 15% to 16% but the number of companies offering vouchers has increased from
28

31% to 48%. Surprisingly, many companies are relaxed about achieving targets. The survey shows that 24% of companies still give rewards to employees even if they have not achieved their target. However, 67% of companies do follow up with employees who are under performing. Graham Povey, Managing Director of Capital Incentives & Motivation observes, This is a very revealing picture of rewards and motivation in business today. Pay and job security have jumped up in importance compared with recent years ahead of good leadership and the increase in companies offering incentives has risen dramatically. With high levels of employment, it is becoming increasingly difficult to retain good employees. Clearly, many companies are realising that an effective motivation scheme is an excellent method of reducing staff turnover and retaining your best people.

Job Security in India: For Government Employee

By Pramod Lomte The worlds largest democratic country India requires a great management of its resources to be carried out for its smooth functioning. And for an effective management the huge government machinery are segregated into various subdivision such as medical services, armed forces, transport services, legal & administrative services etc. The countrys greatest strength is its human resources, and for recruiting and managing qualified applicant for various government jobs is a complicated process. There are various career openings in India for government jobs with various benefits and its plus point is that government jobs in India provides job security employees.

Employment procedure with consideration of special Quotas

The selection process of qualified candidate for the said post is made through the initial job screening process which are done by conducting various competitive oral and written examination by posting advertisements of job vacancies in newspaper .To support equal employment opportunities in India, government have made special quotas for women, scheduled castes and tribes, minorities, sports people and various other people, so that they could advance themselves. The job segregation is done into various grades or groups. The government of India generates the sources of income for millions of people whether they may be the class 1 officer or class 4 staff, working in any corner of the country The Specialty of government jobs is that it never goes for
29

job cuts of its employees as compared to other sector. The strong associations of government employee unions are regularly fighting for the improved working conditions as well as monetary and other reward and recognition for workers. This could be observed through the continuous increments, provision of bonuses, and various allowances such as House Rent Allowances(H.R.A), travelling allowances(T.A), insurance and medical facilities, holiday packages, provident fund and gratuity and many other. Not only employee but their family members also are benefited with scholarship for children; pension and retirementbenefits are given which may be not in private jobs.

Merits of Being a Government Employee

The working hours are already set and are standardized. And if any employee goes for overtime work, an extra compensation in terms of overtime payment is made. Also compensatory relief is provided to the employee for his working on weekends. Guarantee payment for the employees for their services performed. The question of being cheated does not occur in this sector. There are also special discounts given to the government employees from other governmental agencies, various loan facilities also are easily available to them as compared to business people or even employee from private company. Pension and retirement benefits are other strong points of government jobs. The spouse is provided with the pension and also job is given to spouse or immediate member as per their skills in case of the death of the employee. In case of the on the job death compensation is made by government as well as welfare of the family members specially in terms of childrens education and other is taken care by the government. Stability and job security are always found in these jobs and society also gives a high status for these employees. Today also getting government job is a matter of honor and pride, which is accepted with great value. The career opportunities in India for government jobs are many but the primary goal must be of serving the country effectively by giving high performance.

The Importance of Obtaining Job Security

By Frances Burks, eHow Contributor Job security is important for people to avoid financial problems in a bad economy that includes layoffs, high unemployment rates and declining salaries. Workers who have up-to-date skills and college degrees tend to be the most secure in such situations because they're more in demand and command higher salaries. However, all workers need to track changes in their industry to understand how to bolster their job security.

30

DOWNSIZING
Advantages of Downsizing a Company
A business owner may have personal reasons for why he seeks to downsize his business. Although the common reason is often the lack of finances to keep the business operation without going into a tremendous amount of debt, another reason may be the size of the company. Some owners hire managers, but others want to operate the business alone -- and downsizing may be the proper option for some of them. Regardless of the precise reason, downsizing has its set of advantages and disadvantages for both the owner and employees. Mutual Effect One advantage of downsizing a business is that all departments or areas of the company require downsizing. Although this may not seem positive in the eyes of the employees, the business owner makes cuts and decisions that affect all departments equally. This mutual downsizing effect allows the owner to create a balanced plan, so each department gets the proper resources to perform as required. Management Another advantage of downsizing is the owners role in the companys management. A single owner cannot manage a larger company or be active in all decisions, tasks or projects. Downsizing gives an owner more control of the management team, of the individual projects and creates more opportunities for the owner to interact with employees at all levels. Scaling Operations One of the advantages of downsizing is that it gives you a chance to scale your business down to a more realistic and manageable size. During periods of growth, companies tend to add personnel and equipment that serves immediate business purposes. It is natural that a company's business model or customer base shift during the organization's evolution. Downsizing is your chance to bring your company size down to something that can more efficiently serve your customers and remain profitable. Re-evaluation Downsizing forces an organization to re-evaluate its business processes and rewrite its business plan to more accurately reflect the current business status. A business should constantly update its business plan to reflect changes in the marketplace and internal shifts that affect business productivity. The decision to downsize is part of the more important
31

process of re-evaluating the business plan and places the company in a better competitive position for the future. Decision Making When you downsize your company and release employees, your company misses out on the collective experience of the staff members that are let go. The company decisionmaking is affected, because the opinions and input of those departing employees will be missed. If you are forced to let employees go that have several years with your company, then you lose people with intimate experience of past decisions and how those decisions affected company productivity and profitability. Reputation Outsourcing business responsibilities is one of the reasons why companies downsize. If you are downsizing due to outsourcing, then disgruntled former employees can be a source of public relations issues for your company. They can damage your company's public reputation and that can lead to a drop in revenue. Repeat customers and potential new clients may not appreciate your decision and could pull their business.

Be prepared: Handling downsizing

Priya de Langen 25 Jul 2012 It is known by many names: downsizing, layoffs, delayering, redundancy and more. But whichever the term, ultimately it means that a person is being let go from their company. Downsizing an organisation is undoubtedly a bleak period for both employees and the employer. In 2011, many MNCs around the world were going through the pain; HSBC laid off 5,000 of its workforce and is planning to reduce another 25,000 more. Former book retail giant, Borders axed over 10,000 employees from its 400 stores when it declared bankruptcy, and Merck & Co. also laid off 13,000 employees. However, how can companies ensure downsizing goes smoothly? Employers and experts say that HR has a big role to play, from keeping communication lines open to ensuring that staff that are being let go are treated in a dignified manner. Moreover, HR is needed to tackle challenges after the downsizing period, most importantly to boost the morale of remaining employees and retaining key talent.

32

Are there other options? Reducing the workforce should always be the last option in a company. With a smaller headcount, an organisation may improve earnings for a while but might not be able to sustain those gains over the long-term, experts say.

Ten Tough Questions To Consider Before Downsizing Employees

If employment downsizing still makes sense after answering these ten questions, then by all means implement it. If not, consider other alternatives. Why does employment downsizing make sense for the organization? What are the short-term and longterm rationales? Will the company be able to serve its customers better, to innovate, or to penetrate new markets after downsizing its employees? What is the business case for employment downsizing? Are there sound business reasons for closing an operation or worksite, for example, lack of customer demand, excess capacity, or obsolete equipment? What is the problem that the organization is trying to solve? Is it short-term cash flow, overstaffing, or lines of business that no longer fit the companys business strategy? If the problem is short-term cash flow, are there alternative ways to cut costs? Such alternatives might include options such as cutting temporary staff, eliminating overtime, voluntary retirement offers, reducing work hours, freezing salaries and new hiring, temporary layoffs (furloughs), or reducing travel and entertainment expenses, among others. As part of a broader effort to reduce costs at Commercial Vehicle Group, Inc., for example, the CEO asked four employees to devise a plan to save an additional $50,000. The group identified $600,000 in potential savings, including office supplies and cell phones. They went after everything, said the CEO. Do prospective layoffs include hard-to-find skill sets?

33

When the economy turns around, as it will, will your organization be faced with the problem of trying to re-recruit people with the very same skill sets that you laid off? How will the downsizing affect high performers who are difficult to replace? Employee morale is the first casualty in a downsizing. Beyond that, high performers are always in demand, regardless of economic conditions. What will you do to retain them? What are the short-term payoffs from a downsizing strategy? You may see increased cash flow from savings in fixed costs (of labor), but dont expect to see a spike in your companys stock price. Investors want to see a long-term strategy, not just a short-term knee-jerk reaction. What long-term threats to the organizations strategic success might be associated with employment downsizing? Such threats may take the form of loss of mission-critical skills, loss of institutional memory, inability to meet increases in demand as the economy recovers, and a sustained drop in innovation, as survivors become narrow-minded, risk averse, and self-absorbed. What long-term costs might the organization incur by implementing employment downsizing? American firms can expect to see increases in their unemployment tax rates, and almost all firms can expect to see increased rates of voluntary turnover in the year following the downsizing. They may also experience the opportunity costs of lost sales, and brandequity costs damage to the companys brand as an employer of choice. Do the long-term benefits associated with employment downsizing outweigh its shortterm costs? In some cases, the answer may be yes, if an organization disposes of unproductive assets that another firm can use more productively such as IBMs former PC and printer businesses now operating successfully as Lenovo and Lexmark. As one observer noted, Anyone can layoff personnel, cut budgets, and change an organization chart. It takes true genius and creativity to grow a business. Assuming, however, that an organization decides that downsizing its employees is in its short- and long-term best interests, how should it proceed? What does the research tell us about the best ways for managers to execute this strategy?

34

CASE STUDY OF JET AIRWAYS RELATED TO DOWNSIZING

Introduction:
In October 2008, Jet Airways (India) Limited (Jet), one of Indias leading domestic airlines, decided to lay off more than 1,000 employees to streamline its operations. The cost-cutting was the second phase of its downsizing operations.The first phase, which took place a day earlier, saw the airline showing the door to 850 cabin crew members. The second phase of downsizing included employees from all operations - cabin crew, pilots, ground staff, and airport services staff, and employees from management departments.The sudden decision not only took the employees by surprise but also caused alarm in the Indian aviation sector. Amidst great public outburst and opposition by various organizations and political parties, Naresh Goyal , chairman of Jet, reinstated the employees a day later amidst great emotional drama. He was quoted as saying he had been appalled by the downsizing of his employees, which he claimed, he had come to know only through media reports. He added that he would "not be able to live as long as he lives" with the tough decision his management had taken and clarified that he was taking back the employees as they were "family to him and as head of the family he would take care of them. A month later - in November 2008, Jet announced that it would consider serious salary cuts for its staff to handle the aviation crisis. While many Human Resource analysts were surprised by the turn of events that had led to the reinstatement of the sacked employees, they opined that Jet had been forced to take drastic decisions such as laying off employees or initiating pay cuts because of the turbulent phase through which the aviation industry was passing. In September 2008, the International Air Transport Association (IATA) had predicted that world over the aviation industry would lose about US$5.2 billion based on an average jet fuel price of US$140 . The rise in fuel prices had pushed the fuel bills of the aviation

35

industry to US$186 billion by the end of the year 2008.

HR Issues, Management & Decision Making at Jet

According to the company, Jet paid the utmost importance to the composition of its senior management and its human resources with emphasis on teamwork as a key success factor. But due to the turbulent times in the Indian aviation industry they had to take hard decision to lay off 1900 staff members with most of them consisting lower grade staff .Another reason given for this massive exercise was to Streamline Operations These layoffs were announced overnight without any prior notice to the employees with a 30 day compensation package. No company would know of a risk overnight, its built over a period and there should not be any drastic decision which may endanger its employees. The role of HR executive is important to ascertain that peoples interests are not left aside in the race for profits.The HR executive to ensure no discrimination in pay cut and lay off. The very existence of the company was because of its employee and they are more than a resource to the company. The company operates in service sector that focuses directly on customer satisfaction while its employees are hanging on dagger of getting pink slips

Abstract :
The case is about the retrenchment drama that unfolded in one of Indias leading aviation companies, Jet Airways (India) Limited (Jet), in late 2008. After showing the door to more than 1000 employees in a bid to streamline its operations, Jet was faced with immense criticism and opposition by various organizations and political parties. Jets chairman Naresh Goyal (Goyal) reinstated the employees a day later saying that he was not aware of these sackings. The Indian aviation industry was going through a tough phase and experts felt that it was in the interest of the company to retrench employees to remain competitive. Experts largely felt that Goyal had capitulated under pressure from external parties while others felt that all may not be well with the organizational communication mechanisms at Jet. We have created high morale for our people. Our employees believe in the company. They believe its their company. Theres a feeling among employees that if the company makes
36

money, its their money and if the company loses money, thats their loss." - Naresh Goyal, Chairman, Jet Airways (India) Limited, in July 2007. "While the mishandling of the Jet Airways sacking and reinstatement of 1,900 employees was an HR and PR disaster, the larger implications of what happened are also worth considering. It is not just that the chairman of Indias most successful airline became the butt of jokes, it is also a question of what he knew, when he knew it, and who did the bungling." - Anjuli Bargava, Columnist, Business Standard, October, 2008. "The sackings were completely illegal. There was no notice nor was governments permission taken to sack 800 employees. Perhaps they realized their folly and decided to take these employees back. The matter would have landed in the court otherwise." - Anand Pujari, Labour lawyer, SI Joshi & Co., in October 2008

Reasons for Retrenchment

The growing challenges in the Indian aviation industry were the main reason for the lay offs at Jet, according to the company and other industry analysts.

Turbulent Times for the Indian Aviation Industry

The Indian aviation industry was one of the fastest growing aviation industries in the world. The Air Corporations (Transfer of Undertakings and Repeal) Act 1994 opened the Indian skies up to private operators. Apart from government-owned airlines, the aviation industry was flooded with private operators and low cost carriers...

The Debate Leading to the Reinstatement of Employees

Jet received criticism from several quarters for retrenching its employees. Many of its employees protested against the decision to oust them without prior notice. Most of them had paid substantial amounts to receive training at major Aviation Training institutes...

Massive Salary Cuts Follow

In the last week of November 2008, Jet decided on a 20% cut in the salaries of its pilots, engineers, and some other staff. The company planned a 5 percent to 10 percent cut in the salary of top officials who drew a salary above Rs. 75,000...

CASE STUDY OF BIG INDIAN COMPANIES

CHALLENGES OF HRM IN INDIAN IT INDUSTRY:
37

The Indian IT industry poses a baffling challenge to HR professionals-from recruitment to retaintment, compensation to career planning and from technological obsolescence to labour turnover. This problem can be tackled with the use of HR planning which in itself is a challenging task in IT industry. Determining the strength required for the near future is a very complex problem in an IT company. The deciding factor is the companys perceived ability to bag projects both locally and internationally. The problem here is thatT until the company have sufficient right-mix of people, it cannot clinch a project. But unless there is a project, it cannot attract and retain people. With the advent of MNCs it may be noted that job prospects are gearing up. The multinationals are offering fantastic pay packets and working environments to their employees

TATA CONSULTANCY SERVICES AND THEIR HRM PROBLEMS

According to the telephonic conversation we had with Mr. Sumit Singhal (hyphothicated), the answers to some of our questions we had asked from him.

Company Profile of TCS

Tata Consultancy Services is an IT services, business solutions and outsourcing organization that delivers real results to global businesses, ensuring a level of certainty no other firm can match. With a vision of being in top 10 companies by the year 2010. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Mode, recognized as the benchmark of excellence in software development.TCS has over 120,000 of the world's best trained IT consultants in 42 countries, with an annual sales of $5.7 billion (fiscal year ending 31 March, 2008) TCS has also won many awards in different fields as TCS tops the DataQuest DQTop20 list of IT Services providers in India for 2008 TCS ranked among Top 25 in Business Week's 2007 Information Technology 100 TCS awarded top position in 2007 "Global Services" 100 Top 10 Best Performing IT Services TCS is the worlds first organization to achieve an enterprise -wide Maturity Level 5 on CMMI and P-CMM based on SCAMPISM, the most rigorous assessment methodology. TCS Integrated Quality Management System (iQMS) integrates processes, people, and technology maturity through various established frameworks and practices, including IEEE, ISO 9001: 2000, CMMi, SW-CMM, P-CMM, and Six-Sigma. This shows that it is lays much emphasis on quality control.

CHALLENGES IN TCS

38

1) TO MAINTAIN WORKFORCE DIVERSITY The future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a strategic organizational asset if an organization is able to capitalize on this melting pot of diverse

talents. With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, especially in the global arena (Cox, 1993), which must be one of the important organizational goals to be attained. More importantly, if the organizational environment does not support diversity broadly, one risks losing talent to competitors. Since TCS has offices in more than 40 countries, the challange for hrm is to maintain the proper ratio between foreign and indian origin employees. 2) THE MANAGEMENT OF WORKPLACE DIVERSITY In order to effectively manage workplace diversity, Cox (1993) suggests that a HR Manager needs to change from an ethnocentric view ("our way is the best way") to a culturally relative perspective ("let's take the best of a variety of ways"). This shift in philosophy has to be ingrained in the managerial framework of the HR Manager in his/her planning, organizing, leading and controlling of organizational resources. TCS deals with this challenge by conducting mentoring programs. 3) LARGE WORKFORCE There is a big challenge of maintaining large work force consisting of 1.3 Lac employees for TCS.

39

4) MANAGING EIS As information is the basis of decision-making in an organization, there lies a great need for effective managerial control. A good control system would ensure the communication of the right information at the right time and relayed to the right people to take prompt actions. When managing an Executive Information System, a HR manager must first find out exactly what information decision-makers would like to have available in the field of human resource management, and then to include it in the EIS. This is because having people simply use an EIS that lacks critical information is of no value-add to the organization. In addition, the manager must ensure that the use of information technology has to be brought into alignment with strategic business goals. 5) CONTROL AND MEASURE RESULTS A HR Manager must conduct regular organizational assessments on issues like pay, benefits, work environment, management and promotional opportunities to assess the progress over the long term. There is also a need to develop appropriate measuring tools to measure the impact of diversity initiatives at the organization through organization wide feedback surveys and other methods. Without proper control and evaluation, some of these diversity initiatives may just fizzle. 6) LEADING THE TALK A HR Manager needs to advocate a diverse workforce by making diversity evident at all organizational levels. Otherwise, some employees will quickly conclude that there is no future for them in the company. As the HR Manager, it is pertinent to show respect for diversity issues and promote clear and positive responses to them. He/She must also show a high level of commitment and be able to resolve issues of workplace diversity in an ethical and responsible manner. 7) HOW TO KEEP THE SAME LEVEL OF RECRUITEMENT EVEN IN RECESSION The biggest challenge for HR is to maintain the company reputation, which it gained over the period by recruiting a large number of new employees every year. 8) HOW TO ABSORB ALL RECRUITEES Though there are recruitments in large scale, they do not have enough projects to absorb all the new recruited employees. In order to tackle this situation, they are calling the new recruited employees in small batches rather than 2-3 large groups. 9) EMPLOYEES ELIGIBLE FOR PROMOTIONS

40

TCS has just suspended the promotion cycle till further notice. As told by Mr. Susheel(name changed) , he is eligible for promotion since Nov -2007. 10) HOW TO MAKE MORE PROFIT WITH SAME REVENUE As per Economic times, TCS is planning to decrease the variable pay of executives by 10-15% and keeping the gross same for middle management and developers. 11) HOW TO MOTIVATE EMPLOYEE The development of an appropriate organizational reward system is probably one of the strongest motivational factors. This can influence both job satisfaction and employee motivation. The reward system affects job satisfaction by making the employee more comfortable and contented Motivational factors in an organizational context include working environment, job as a result of the rewards received. The reward system influences motivation primarily through the perceived value of the rewards and their contingency on performance (Hickins, 1998). The challenge which HR is facing is that how to motivate employee without any significant salary hike or promotion.

BIRLA SOFT AND THEIR HRM PROBLEMS

Birlasoft is a leading provider of information technology services in both onshore and offshore models to Fortune 1000 as well as mid-sized organizatiaons in banking, financial services, insurance, retail, healthcare, manufacturing and independent software vendors sectors. Birlasoft services include application development, support & maintenance,
41

enterprise application implementation, integration, infrastructure management and quality assurance & testing. Birlasofts robust delivery processes embrace digitized project management methodologies, embedded within proven practices of Six Sigma, SEI CMMi Level 5 on Continuous Representation and secure services framework with BS7799. The Noida centers of the company have been recently assessed at PCMM Level 3 for its HR practices. Headquartered at Noida, India, Birlasoft has 4,000+ employees across US, UK, Germany, Netherlands, Czech Republic, Malaysia, Australia, Singapore and India. Birlasoft is part of the global $1.4 billion CK Birla Group which traces its roots back to over 150 years and has diversified interests ranging from automobiles, cement, paper, software etc. to hospitals, schools and colleges as part of its philanthropic work.

The company is a joint venture of CK Birla Group of India and Computer Horizons Corporation (CHC) of USA. It is leading Information Technology company with offices worldwide. It offers high class solutions and offshore services to its clients that includes companies like AT & T, P&O Containers, Merrill Lynch, ICL, Oracle Corporation, Ford, IBM, Network Managers, Shawn Ice, Saudi Aramco, DDA, NEI, BMBHRC, ET &T, C-DAC. In the year 1999 it has rated as the third fastest growing software companies of India by Dataquest of India, Magazine.

CHALLENGES IN BIRLASOFT
1. Communication Focusing on establishing effective communication throughout the organization and to ensure that Birlasoftians have the skills and avenues to share information and coordinate activities effectively. 2. Performance Management Driving the organizations and its members progress by establishing objectives related to committed work against which performance can be measured, ascertain capability development assistance required to continuously enhance performance. 3. CompetencyDevelopment This starts with identification of requisite competencies at the organization level which are ultimately dependent on competencies that are needed to be identified, built or enhanced in the individual Birlasoftian. Enhancing constantly the capability of Birlasoftians to perform assigned tasks and responsibility in turn uplinks to the organization capability building.

42

4. Training and Development To ensure that the identified competency requirements are built through a systematic and focused approach. 5. Compensation To provide all individuals with remuneration and benefits based on their contribution and value to the organization in a fair and transparent manner. Competitiveness of the compensation offered in comparison with the prevailing markets' reality is the driving force. 6. Career Development To ensure that individuals are provided opportunities to develop their competencies that enable them to achieve professional and personal career objectives within the organizations goals. 7. Participatory Culture A myopic outlook of utilizing talents of people only in the delivery of assigned duties has two broad undesirable effects: It prevents people from developing as well rounded professionals; and it denies the organization the readily available multitalented internal resource pool that could potentially contribute to most of the challenges and opportunities facing the organization. Building a participatory culture enables availability of avenues to harness/give exposure to employees full capability by involvement in making decisions and solving problems that affect the performance of business activities

CONCLUSION
Anticipating possible changes and new requirements of the future and making prior preparations are always better strategy than waiting for the changes to catch us unaware, or remaining in
43

complacency or involving in what is termed as fire fighting. Thus in the area of human resources management the practitioners should have futuristic-orientation as in the case of other functional areas, such as technology forecast, investment decisions, market analysis etc. The fact that future may pose totally new problems due to different kind of changes and pressures in the business environment and that the current strategies may prove inadequate, bring us to the awareness of so called Emerging challenges in Human Resource Management. The traditional functions of HRM now need to be strategically directed towards developing and sustaining organizational capabilities, through activities that overlap with traditional business functions such as finance, marketing, and non-traditional activities, such as knowledge management. Human Resource Information System has great significance in every sector. It can play a virtual role and help the communications process in the organization. Most importantly, organizations can hire and retain the top performers, improve productivity and enhance job satisfaction of the employees. HRM has the responsibility to maximize efficiency and profit, but in the emerging scenario, the role of HR manager is changing rapidly due to changes in government policies, unions, labour legislations and technology. The trends have taken place in the organization, human resource planning, job design, motivation, recruitment and skill development and employee relations. The challenges can be faced by HRM effectively, if proper strategies are implemented. Hence, the role of HRM will be more significant in future due to the emerging scenario. Human Resource Department is no different than other aspects of a business in being able to deliver significant benefits to the company but in the emerg-ing scenario, the role of HR manager is changing rap-idly due to changes in government policies, unions, labour legislations and technology. The traditional functions of HRM now need to be strategically di-rected towards developing and sustaining organiza-tional capabilities to face the emerging challenges of environment .In the context of changing environment due to globalization, liberalization the role of HR managers has also changed they now need to focus on strategic issues, designing and taking proactive ac-tions, developing integrated HR system, motivate employees towards group effort, working as change agent and marketing HR potential contribution. The challenges can be faced by HR management effec-tively, if these strategies are implemented. Hence, the role of HRM will be more significant in future due to the emerging scenario. An improved business image: more people see you as an employer of choice.

44

Diversity covers a wide variety of issues, including communicating with employees, whose first language is not English, helping a diverse team cope with conflict, learning which rewards are valued by different groups, and dealing with discrimination. Managers can improve handling of diversity issues by following these eight behaviors. Embrace diversity: Successfully valuing diversity starts with accepting the principle of multiculturalism. Accept the value of diversity for its own sake not simply because you have to. You need to reflect your acceptance in all you say and do. Recruit broadly: When you have job openings, work to get a diverse applicant pool. Avoid relying on referrals from current employees, since this tends to produce candidates similar to your present workforce. Select fairly: Make sure your selection process doesnt discriminate. Particularly, ensure that selection tests are job-related. Provide orientation and training for minorities: Making the transition from outsider to insider can be particularly difficult for nontraditional employees. Sensitize all employees: Encourage all employees to embrace diversity. Provide diversity training to help all employees see the value in diversity. Strive to be flexible: Part of valuing diversity is recognizing that different groups have different needs and values. Be flexible in accommodating employee requests Seek to motivate individually: You need to be aware of the background, cultures, and values of employees. What motivates a si0ngle mother with two young children and who is working full time to support her family is likely to be different from the needs of a young, single, part-time employee or an older employee who is working to supplement his or her retirement income. Encourage employees to embrace and value diverse views: Create traditions and ceremonies that promote diversity. Celebrate diversity by accentuating its positive aspects. But also be prepared to deal with the challenges of diversity such as mistrust, miscommunication, and lack of cohesiveness, attitudinal differences, and stress.

7 Steps to Downsizing
If youre like other companies that are scrambling to stay afloat in this economy, you might be considering downsizing. Letting someone go is always a difficult decision, so make sure you are acting
45

rationally and intelligently when youre forced to downsize. Layoffs create risks for businesses. Employees may view a lawsuit as a way to minimize the impact on their personal finances. The savings youll generate on your payroll and benefits costs may be negated by legal costs. Follow these guidelines to make sound decisions and avoid the costs of litigation: 1. Before deciding who stays and who goes, make sure there are justifiable business reasons for the layoff in the first place and that you have a clear picture of what your business will look like moving forward. The staffing decisions that you make need to be consistent with these business reasons and the end result youre seeking. 2. Choose a layoff selection committee, ideally consisting of diverse individuals in terms of age, race and gender. The individuals you choose to act as decisionmakers should be people that are most likely to remain with the company so that they can be available to help defend the layoff decisions should there be any litigation in the future. Include members of management who understand the business needs and have first-hand knowledge of employee performance. 3. Remind your selection committee of equal employment opportunity issues to ensure they are making sound decisions. 4. Check with your legal counsel to see if your layoff will trigger legally required notice obligations, such as the WARN Act or other issues, such as terminating an immigration visa and repatriating foreign workers. 5. Identify selection criteria you will use to make decisions. Using seniority only can mean you retain your highest-paid workers, and lose some of your newer star performers. Performance is the most common selection criterion, but its the most subjective. Review past performance evaluations to help make the decision. If you dont have written performance reviews for your employees but decide to use performance as the deciding factor, it will be virtually impossible to defend against a claim of unlawful termination or discrimination, so youll need to consider other factors. If youre restructuring jobs, make sure to update job descriptions. In the event of litigation, youll need to show that the individuals you retained have the skills to fill those positions. Analyze the jobs and responsibilities within your business and determine where you have the most redundancy. Look for ways to shift responsibilities or reorganize processes so you can eliminate redundant positions.
46

Look at your management vs. staff ratio. Being top-heavy during a recession is pretty much a guarantee that youll burn through your cash more quickly. No matter the size of your organization, all companies need to think like a small business during an economic downturn. Make sure the people that you retain are the ones that are most flexible and agile, with the ability to multi-task. Hang onto your top performers. Human capital is your most valuable asset even in a difficult business cycle, and your competitors will quickly grab up your key talent if theyre available.

6. Once you have a list together, review it for any potential discrimination claims. Compare the demographics of the current workforce against the workforce you plan to have moving forward and make sure that any protected groups (based on age, gender, race and other factors) have not been disproportionately impacted. If you find there are potential issues, revisit your selection criteria or at least make sure you have legitimate, nondiscriminatory reasons for the selections made. 7. Decide what benefits, if any, you will provide to laid-off employees. If you offer a severance package, you should obtain a release of claims from the employee. Layoffs are a common strategy for businesses trying to survive. Thoughtful consideration of the legal issues involved and the staffing requirements moving forward is required. Following these guidelines will help you avoid the pain of expensive lawsuits and ensure you have the right people in place to make it through an economic downturn. Downsizing your organization is necessary in some situations, but it is not always a bad thing for your business. When you get involved in the downsizing process, you need to make business decisions that are best for your company and try to leave out the personal feelings that can come with letting employees go. You need to consider advantages and disadvantages to downsizing before making your final decision.

BIBLIOGRAPHY

47