PATIL DEPARTMENT
OF BUSINESS MANAGEMENT
A project report on
Submitted To:
Prof. Sapna Suri
Submitted By:
Group No.10
MBA- IInd SEM (CORE)
Class - 4B
Date: 27/04/09
Group Members
2
INDEX
SR. PAGE COVERED
NO. TOPICS NO. BY:
1. Introduction to HRM Strategy 4
2. Importance and Benefits of Strategic 5
Siddharth Shiva
Mnagement
3. Role of HRM in Strategic Management 5 ( Roll No. 148)
4. Human Resource Development (HRD) 6
5. Proactive HRD Strategies for Long Term 7 Siddharth Singh
Planning & Growth
(Roll No. 149)
6. Process of HRD Strategic Planning for 8
Long Term Planning & Growth
7. Policies concerning HRD Strategies for 9 Siddharth Agarwal
Long Term Planning & Growth
(Roll No. 147)
8. Productivity and HRM- Introduction 13 Shyam Mishra
9. TQM 13 (Roll No. 145)
10. Benchmarking 18 Shrikant Shinde
(Roll No. 142)
11. Re-engineering Work Processes 21 Shweta Mahulkar
12. Flexible Manufacturing System (FMS) 22 (Roll No. 144)
13. Six Sigma 25 Shubhangi Chavan
14. Economic Challenges 31 (Roll No. 143)
15. Work-force Diversity 31
16. Conclusion 33 Shyam Chettiar
17. Case Study 34 (Roll No. 146)
18. Bibliography 35
INTRODUCTION
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Human Resource Management Strategy:
Strategic Management:
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IMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT:
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implementation by supplying competent people. Additionally, HRM facilitates
strategy implementation by encouraging proactive thinking, communicating
goals and improving productivity and quality.
Definition 1:
Definition 2:
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PROACTIVE HRD STRATEGIES FOR LONG TERM
PLANNING AND GROWTH
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Process of HRD Strategic Planning for Long Term Growth:
• Understand the internal and external factors that might hinder objective
achievement as the organizational policies and procedures need to be
changed accordingly.
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• Identify where efficiencies can be achieved.
• Development of Personnel:
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Determination of Training methods to be followed – on the job/off the job.
Intensity of Training – Level of employees, Frequency, resource persons,
specific training (job).
Operational Managerial
Conceptual Analytical
Skill Skill
• Motivation System:
Factors:
1. Adequate Motivation.
2. Analysis of motives.
3. Simplicity.
4. Uneven Motivation is given to encourage intelligent,
ambitious & efficient personnel.
5. Incentive system could be either a) Monetary and/or b) Non-
monetary.
• Retaining Personnel:
Coercive Policies like entering into an agreement.
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Package for Long-term stay includes promotional avenues,
increasing financial incentives over the period of time, deferred
payment of financial benefit in the long-run, superannuating
allowance or long-term stay bonus(where benefits maybe
forfeited if the employee leaves prematurely.
ESOS( Employee Stock Option Scheme).
ESPS ( Employee Stock Purchase Scheme).
Persuasion – by CEO or top executives.
• Personnel Mobility
1. Objectives:
Right person at right job.
Motivation for promotions through good performance.
2. Another issue is Separation- VRS/CRS.
3. Deputation on new project in the same company.
• Industrial Relations:
1. Objectives
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Safeguard interests of workers & management through mutual
understanding.
Avoid industrial conflicts & strikes.
To raise productivity to a level which satisfies both workers &
management.
To overcome resistance to change- particularly those aspects
which directly affect workers like change in technology.
Participation of workers.
Negotiations in decision-making.
Formulation of grievance handling procedures.
Management's concern for worker's welfare.
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Productivity & HRM
HRM Trends in a Dynamic environment – An HR manager has to
balance the demands & expectations of external environment with the internal
needs and achieve the assigned tasks in an efficient way.
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1. TQM:
Total Quality Management is an approach to the art of management
that originated in Japanese industry in the 1950's and has become steadily
more popular in the West since the early 1980's.
Customer-driven quality:
TQM has a customer-first orientation. The customer, not internal
activities and constraints, comes first. Customer satisfaction is seen as the
company's highest priority. The company believes it will only be successful if
customers are satisfied. The TQM company is sensitive to customer
requirements and responds rapidly to them. In the TQM context, `being
sensitive to customer requirements' goes beyond defect and error reduction,
and merely meeting specifications or reducing customer complaints. The
concept of requirements is expanded to take in not only product and service
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attributes that meet basic requirements, but also those that enhance and
differentiate them for competitive advantage.
Continuous improvement:
Continuous improvement of all operations and activities is at the
heart of TQM. Once it is recognized that customer satisfaction can only be
obtained by providing a high-quality product, continuous improvement of the
quality of the product is seen as the only way to maintain a high level of
customer satisfaction. As well as recognizing the link between product quality
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and customer satisfaction, TQM also recognizes that product quality is the
result of process quality. As a result, there is a focus on continuous
improvement of the company's processes. This will lead to an improvement in
process quality. In turn this will lead to an improvement in product quality, and
to an increase in customer satisfaction. Improvement cycles are encouraged for
all the company's activities such as product development, use of EDM/PDM,
and the way customer relationships are managed. This implies that all
activities include measurement and monitoring of cycle time and
responsiveness as a basis for seeking opportunities for improvement.
Fast response:
To achieve customer satisfaction, the company has to respond
rapidly to customer needs. This implies short product and service introduction
cycles. These can be achieved with customer-driven and process-oriented
product development because the resulting simplicity and efficiency greatly
reduce the time involved. Simplicity is gained through concurrent product and
process development. Efficiencies are realized from the elimination of non-
value-adding effort such as re-design. The result is a dramatic improvement in
the elapsed time from product concept to first shipment.
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of performance with competitors. The TQM approach is based on the use of
objective data, and provides a rational rather than an emotional basis for
decision making. The statistical approach to process management in both
engineering and manufacturing recognizes that most problems are system-
related, and are not caused by particular employees. In practice, data is
collected and put in the hands of the people who are in the best position to
analyze it and then take the appropriate action to reduce costs and prevent non-
conformance. Usually these people are not managers but workers in the
process. If the right information is not available, then the analysis, whether it
be of shop floor data, or engineering test results, can't take place, errors can't
be identified, and so errors can't be corrected.
Employee participation:
A successful TQM environment requires a committed and well-
trained work force that participates fully in quality improvement activities.
Such participation is reinforced by reward and recognition systems which
emphasize the achievement of quality objectives. On-going education and
training of all employees supports the drive for quality. Employees are
encouraged to take more responsibility, communicate more effectively, act
creatively, and innovate. As people behave the way they are measured and
remunerated, TQM links remuneration to customer satisfaction metrics.
A TQM culture:
It's not easy to introduce TQM. An open, cooperative culture has to
be created by management. Employees have to be made to feel that they are
responsible for customer satisfaction. They are not going to feel this if they are
excluded from the development of visions, strategies, and plans. It's important
they participate in these activities. They are unlikely to behave in a responsible
way if they see management behaving irresponsibly - saying one thing and
doing the opposite.
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Product development in a TQM environment:
Product development in a TQM environment is very different to
product development in a non-TQM environment. Without a TQM approach,
product development is usually carried on in a confliction atmosphere where
each department acts independently. Short-term results drive behavior so
scrap, changes, work-around, waste, and rework are normal practice.
Management focuses on supervising individuals, and fire-fighting is necessary
and rewarded.
Summary:
Doing it right 1st time
Customer centric- Philips, TELCO, BHEL, Pidilite
Continuous Improvement a way of life
Build Team work & Empowerment
2. Benchmarking
Benchmarking (also "best practice benchmarking" or "process
benchmarking") is a process used in management and particularly strategic
management, in which organizations evaluate various aspects of their
processes in relation to best practice, usually within their own sector. This then
allows organizations to develop plans on how to adopt such best practice,
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usually with the aim of increasing some aspect of performance. Benchmarking
may be a one-off event, but is often treated as a continuous process in which
organizations continually seek to challenge their practices.
Advantages of benchmarking:
Benchmarking is a powerful management tool because it
overcomes "paradigm blindness." Paradigm Blindness can be summed up as
the mode of thinking, "The way we do it is the best because this is the way
we've always done it." Benchmarking opens organizations to new methods,
ideas and tools to improve their effectiveness. It helps crack through resistance
to change by demonstrating other methods of solving problems than the one
currently employed, and demonstrating that they work, because they are being
used by others.
Types of Benchmarking:
Competitive benchmarking
Some authors call benchmarking "best practices benchmarking" or
"process benchmarking". This is to distinguish it from what they call
"competitive benchmarking". Competitive benchmarking is used in competitor
analysis. When researching your direct competitors you also research the best
company in the industry (even if it serves a different location).
Collaborative benchmarking
Benchmarking, originally invented as a formal process by Rank
Xerox, is usually carried out by individual companies. Sometimes it may be
carried out collaboratively by groups of companies (eg subsidiaries of a
multinational in different countries). One example is that of the Dutch
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municipally-owned water supply companies, which have carried out a
voluntary collaborative benchmarking process since 1997 through their
industry association.
Procedure:
Identify your problem areas - Because benchmarking can be applied to any
business process or function, a range of research techniques may be
required. They include: informal conversations with customers, employees,
or suppliers; exploratory research techniques such as focus groups; or in-
depth marketing research, quantitative research, surveys, questionnaires,
reengineering analysis, process mapping, quality control variance reports,
or financial ratio analysis.
Identify organizations that are leaders in these areas - Look for the very best
in any industry and in any country. Consult customers, suppliers, financial
analysts, trade associations, and magazines to determine which companies
are worthy of study.
Implement new and improved business practices - Take the leading edge
practices and develop implementation plans which include identification of
specific opportunities, funding the project and selling the ideas to the
organization for the purpose of gaining demonstrated value from the
process.
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• Summary:
Competitive benchmarking is the first requirement to effective TQM
Striving to be the best of the best in one's area of operations.
It aims at continuous improvements.
Complacency may be suicidal.
It is a measurement of gaps between the practices of two companies so as
to uncover significant differences.
It can be applied to products, services, practices, processes and methods.
Therefore, Benchmarking is a systematic investigation, a fruitful learning
experience which ensures that the best of industry practices are uncovered,
analyzed, adopted and implemented.
The objective of benchmarking is to meet rising expectations of customers
in their respective areas.
Re-engineering TQM
Looks for quantum leaps in Seeks incremental
performance improvements
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Re-engineering TQM
Driven by top management Relies on bottom-up
when it is complete , work place participative decision-making in
is self-managed both planning & execution of
TQM programme.
There is a risk that the employee There is no immediate & sudden
may continue to be with the risk to the employee.
organization or not.
Key elements:
“Start with a clean piece of paper” (Start afresh & encourage brainstorming)
Commandments of Re-engineering
Give people a mission, a clear view of how to achieve that mission.
Either serve the customer superbly or don't even try.
Change the way of life. It is not a process. It is a value.
Technology is never really a problem, but the problem is how to use
technology effectively.
The wrong answer rarely kills you. What it does is waste of time.
The weak link in engineering is Willingness.
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Once people catch on to Re-engineering, you cannot hold them back. It is a
lifetime opportunity.
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Advantages:
Faster, lower- cost changes from one part to another which will improve
capital utilization
Lower direct labor cost, due to the reduction in number of workers
Reduced inventory, due to the planning and programming precision
Consistent and better quality, due to the automated control
Lower cost/unit of output, due to the greater productivity using the same
number of workers
Savings from the indirect labor, from reduced errors, rework, repairs and
rejects
Disadvantages:
Limited ability to adapt to changes in product or product mix (ex. machines
are of limited capacity and the tooling necessary for products, even of the
same family, is not always feasible in a given FMS)
Substantial pre-planning activity
Expensive, costing millions of dollars
Technological problems of exact component positioning and precise timing
necessary to process a component
• Summary:
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FMS requires fewer employees, but employees with more training and
higher skills.
4. Six Sigma:
Chances are you've heard of Six Sigma, perhaps in connection with
General Electric, the company that made it popular in the 1990s. You may
even know that Six Sigma uses statistical techniques to improve processes in
both manufacturing and service industries. But did you know there is an
important role for Human Resources (HR) in this sophisticated process
improvement approach? Or those Six Sigma initiatives are unlikely to succeed
without HR's help?
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To appreciate the important role HR has in Six Sigma, it is
important to begin this discussion by having an understanding of what Six
Sigma is, all the roles played by others in a Six Sigma implementation, and the
factors critical to a successful implementation.
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Senior executive who sponsors the overall Six
Sponsor
Sigma Initiative.
Senior-level executive who is responsible for
Leader
implementing Six Sigma within the business.
Middle- or senior-level executive who sponsors a
specific Six Sigma project, ensuring that resources
Champion
are available and cross-functional issues are
resolved.
Full-time professional who acts as a team leader on
Six Sigma projects. Typically has four to five
Black Belt
weeks of classroom training in methods, statistical
tools, and (sometimes) team skills.
Highly experienced and successful Black Belt who
has managed several projects and is an expert in
Six Sigma methods/tools. Responsible for
Master Black Belt
coaching/mentoring/training Black Belts and for
helping the Six Sigma leader and Champions keep
the initiative on track.
Part-time professional who participates on a Black
Belt project team or leads smaller projects.
Green Belt
Typically has two weeks of classroom training in
methods and basic statistical tools.
Professional who has general awareness of Six
Sigma (through no formal training) and who brings
Team Member
relevant experience or expertise to a particular
project.
Professional responsible for the business process
Process Owner
that is the target of a Six Sigma project.
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As with any major organizational initiative, many factors contribute
to success. Some of these factors will fall within HR's area of responsibility,
such as those discussed below.
HR professionals can help the Six Sigma Leader find the right
people for Black Belt roles and ensure they remain in those positions for the
typical two-year rotation. Potential HR contributions in this area include:
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whether and how to make appropriate adjustments in level and compensation
now that all these individuals are in the same role is both tricky and critical.
Creating a strategic compensation plan that will better support Six Sigma.
Developing a non-monetary reward program for Six Sigma teams.
Project Team Effectiveness.
The work of Six Sigma is done mostly at the project team level by
a Black Belt leading a small team through the steps of the DMAIC method. If
the team itself does not function well or does not interact effectively with
others in the organization that ultimately have to support and carry out the
process changes, the project probably will not be successful. Given the typical
project's potential payback, failure can be expensive.
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Providing teams with tools that allow them to diagnose their own
performance and identify when and where they need help.
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HR professionals can help reduce the uncertainty and anxiety
surrounding Six Sigma and increase the levels of acceptance and cooperation
in the organization. Potential HR contributions in this area include:
5. Economic Challenges:
External Environmental factors.
Globalization
Political factors.
Social factors: Unions.
Local & Governmental factors: Legal through multi-cultural
organization (managing diversity).
6. Work-force Diversity:
It implies the composition of employees in terms of diversity as
regards age, gender, ethnicity, and education.
Not fascinated by secure, less paying, routine & standard job (s) offered by
Public Sector.
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Private Enterprises offer good attraction.
Old employees are growing in number due to improved medical & health
care---their expertise & experience; talent can be utilized to develop new
ventures.
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Conclusion
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organizational processes and technological developments. The process of
Human Resources Development planning involves three key steps- assessing
and making an inventory of the current human resources, forecasting the
organization’s human resource needs and matching the demand and supply of
human resources.
Case Study
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First candidate- Mr.Premsager – He is working with
Chemtech for last 5 years
Second candidate- Mr.Devejeet- He is working with the
same company for last one year.
Solution
Give promotion to Mr. Premsagar from long term point
of view and Mr.Devejeet should be given proper increment in order
to keep him motivated.
Bibliography
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www.managementmentor.com
www.esinps.com
www.hrnext.com
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