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DR. D. Y.

PATIL DEPARTMENT
OF BUSINESS MANAGEMENT

A project report on

HRD Strategies for Long


Term Planning and Growth
&
Productivity and HRM

Submitted To:
Prof. Sapna Suri

Submitted By:
Group No.10
MBA- IInd SEM (CORE)
Class - 4B

Date: 27/04/09
Group Members

Sr. No. Name Roll No.

1 Shrikant Shinde 142

2 Shubhangi Chavan 143

3 Shweta Mahulkar 144

4 Shyam Mishra 145

5 Shyam Chettiar 146

6 Siddharth Agarwal 147

7 Siddharth Shiva 148

8 Siddharth Singh 149

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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:

“Strategy is a way of doing something. It includes the formulation


of goals and setting of action plans for accomplishment of that goal.”

Strategic Management:

“A Process of formulating, implementing and evaluating business


strategies to achieve organizational objectives is called Strategic
Management”

Definition of Strategic Management:

“Strategic Management is that set of managerial decisions and


actions that determine the long-term performance of a corporation. It includes
environmental scanning, strategy formulation, strategy implementation,
evaluation and control.”

The study of strategic management therefore emphasizes


monitoring and evaluating environmental opportunities and threats in the light
of a corporation’s strengths and weaknesses.

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 IMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT:

1. Allows identification, prioritization and exploration of opportunities.

2. Provides an objective view of management problems.

3. Represents framework for improved co-ordination and control.

4. Minimizes the effects of adverse conditions and changes.

5. Allows major decisions to better support established objectives.

6. Allows more effective allocation of time and resources.

7. Avoids ad hoc decisions.

8. Helps to integrate the individual behaviors.

9. Encourages forward thinking.

10. Encourages favorable attitude towards change.

 ROLE OF HRM IN STRATEGIC MANAGEMENT:

Role in Strategy Formulation: HRM is in a unique position to


supply competitive intelligence that may be useful in strategy formulation.
Details regarding advanced incentive plans used by competitors, opinion
survey data from employees, elicit information about customer complaints,
information about pending legislation etc. can be provided by HRM. Unique
HR capabilities serve as a driving force in strategy formulation.

Role in Strategy Implementation: HR Manager helps strategy

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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.

HUMAN RESOURCE DEVELOPMENT (HRD)


Human Resource Development is a process to help people to
acquire competencies and to increase their knowledge, skills and capabilities
for better performance and higher productivity.

Definition 1:

HRD is a process of enhancing the physical, mental and emotional capacities


of individuals for productive work.

Definition 2:

HRD means to bring about the possibility of performance improvement and


individual growth.

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PROACTIVE HRD STRATEGIES FOR LONG TERM
PLANNING AND GROWTH

Employee retention has become bigger challenge than employee


hiring today. With trade unions breathing their last, and easy job availability,
employees have developed propensity to switch jobs for minor reasons
without voicing their protest. Thus, HRD has to take a proactive approach, that
is, to seek preventive care in human relations. By using HRD strategies,
maximization of efficiency and productivity could be achieved through
qualitative growth of people.

Long-term growth can also be planned by creating highly inspired


groups of employees with high aspirations to diversify around core
competencies and to build new organizational responses for coping with
change.

A proactive HRD strategy can implement plans directed at


improving personal competence and productive potentials of human resources.

Following strategic choices can be considered which would help


today’s organizations to survive and grow.

Change Management: Manage change properly and become an effective


change agent rather than being a victim of change itself.

Values: Adopt proactive HRD measures, which encourage values of trust,


autonomy, proactive approach and experimentation.

Maximize Productivity and Efficiency: Maximize productivity and


efficiency of the organization by helping qualitative growth of people.

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 Process of HRD Strategic Planning for Long Term Growth:

A strategic human resource planning helps the organization in achieving its


overall objectives. This approach involves creating and managing functions
like staffing and services, based on the strategic goals, eliminating any hurdles
in the process. The process to be followed is explained in brief:

• Understand the specific business objectives and their priorities, based on


the overall strategic objectives.

• Understand the internal and external factors that might hinder objective
achievement as the organizational policies and procedures need to be
changed accordingly.

• Determine the responsibility and accountability for each objective. Also


identify the internal customer.

• Identify the alternatives for achieving the business objectives.

• Translate these business objectives into specific human resources policies


and programs.

• Determine the resources required to achieve these business objectives.

• Analyze the impact on HR policies and programs, if each business objective


is not achieved.

• Assess each objective in terms of money and time required.

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• Identify where efficiencies can be achieved.

• Determine the staffing requirements to meet the business objectives,


including the level and timing of staffing; employee competencies; the
surplus and demands.

 Policies concerning HRD strategies for long term planning and


growth:

The major considerations in personnel policies concerning HRD


strategies for long term planning and growth in organization are:

• Recruitment of right personnel:

Well-qualified and they must match with the respective corporate


values and philosophy of the Companies. For example: In Reliance Industries-
entrepreneurship, risk taking & the will to win- personal contacts is considered
while recruiting for top positions; In Hindustan Lever- the policy is to have
promotions from within – they emphasize on professionalism, convent-
educated and sharp dressed candidates, toppers from all IIMs and IIT'S; In
Infosys Technologies- The criteria is to select candidates from middle class
communities– people brought up in traditional, conservative homes but who
have superior academic records, technical skills and ingrained capacity for
hard work. Written Tests are conducted to identify individuals with high learn-
ability, both in terms of willingness. They tend to eliminate over ambitions &
competitive stars through the interviewing process.

• Development of Personnel:

The Policy Issues involved are:

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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

Training will be imparted through company's own training centers or Training


Institutes.

• 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

Moving the personnel within the organization or outside--- in the


form of promotion, demotion, transfer, separation & deputation. Organizations
have to provide a policy framework for this.

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.

2. Methods of building good industrial relations

 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.

The issues involved in extracting/enhancing Human Productivity


are:

Internal Factors External Factors


Mission, Policies Technological Factors
Organizational Culture Economic
Organizational Structure Political
HR Systems Social
Local & Governmental Issues
Unions
Employer's Demands
Workforce Diversity

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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.

Total Quality is a description of the culture, attitude and


organization of a company that aims to provide, and continue to provide, its
customers with products and services that satisfy their needs. The culture
requires quality in all aspects of the company's operations, with things being
done right first time, and defects and waste eradicated from operations.

Many companies have difficulties in implementing TQM. Surveys


by consulting firms have found that only 20-36% of companies that have
undertaken TQM have achieved either significant or even tangible
improvements in quality, productivity, competitiveness or financial return. As
a result many people are skeptical about TQM. However, when you look at
successful companies you find a much higher percentage of successful TQM
implementation.

Important aspects of TQM include customer-driven quality, top


management leadership and commitment, continuous improvement, fast
response, actions based on facts, employee participation, and a TQM culture.

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.

Each part of the company is involved in Total Quality, operating as


a customer to some functions and as a supplier to others. The Engineering
Department is a supplier to downstream functions such as Manufacturing and
Field Service, and has to treat these internal customers with the same
sensitivity and responsiveness as it would external customers.

TQM leadership from top management:


TQM is a way of life for a company. It has to be introduced and led
by top management. This is a key point. Attempts to implement TQM often
fail because top management doesn't lead and get committed - instead it
delegates and pays lip service. Commitment and personal involvement is
required from top management in creating and deploying clear quality values
and goals consistent with the objectives of the company, and in creating and
deploying well defined systems, methods and performance measures for
achieving those goals. These systems and methods guide all quality activities
and encourage participation by all employees. The development and use of
performance indicators is linked, directly or indirectly, to customer
requirements and satisfaction, and to management and employee
remuneration.

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.

Elimination of waste is a major component of the continuous


improvement approach. There is also a strong emphasis on prevention rather
than detection, and an emphasis on quality at the design stage. The customer-
driven approach helps to prevent errors and achieve defect-free production.
When problems do occur within the product development process, they are
generally discovered and resolved before they can get to the next internal
customer.

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.

Actions based on facts:


The statistical analysis of engineering and manufacturing facts is an
important part of TQM. Facts and analysis provide the basis for planning,
review and performance tracking, improvement of operations, and comparison

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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.

Product development in a TQM environment is customer-driven


and focused on quality. Teams are process-oriented, and interact with their
internal customers to deliver the required results. Management's focus is on
controlling the overall process, and rewarding teamwork.

Summary:
 Doing it right 1st time
 Customer centric- Philips, TELCO, BHEL, Pidilite
 Continuous Improvement a way of life
 Build Team work & Empowerment

***Race without finishing line (TQM is a never-ending activity)

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.

A process similar to benchmarking is also used in technical product


testing and in land surveying.

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.

 Survey companies for measures and practices - Companies target specific


business processes using detailed surveys of measures and practices used to
identify business process alternatives and leading companies. Surveys are
typically masked to protect confidential data by neutral associations and
consultants.

 Visit the "best practice" companies to identify leading edge practices -


Companies typically agree to mutually exchange information beneficial to
all parties in a benchmarking group and share the results within the group.

 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.

3. Re-engineering Work Processes

When organizations require a drastic, quantum change in order to


survive a fiercely competitive market, the managers have to search for
solutions elsewhere, beyond TQM and Benchmarking.

Re-engineering takes place when more than 70% of the work


processes in the organization are evaluated & altered. It demands
organizational members to rethink what work shall be done, how it should be
done, and how best to implement these decisions. The focus is on simplifying
the operations and making them more efficient and more customers focused.

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)

 Identify distinctive competencies.


 Assess core processes.
 Reorganize around Horizontal Processes.

e.g. TISCO, TELCO, L&T, Ranbaxy & Crompton Greeves.

 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.

4. Flexible Manufacturing System:


A flexible manufacturing system (FMS) is a manufacturing system
in which there is some amount of flexibility which allows the system to react
in the case of changes, whether predicted or unpredicted. This flexibility is
generally considered to fall into two categories, within which are numerous
other subcategories.

The first category, machine flexibility, covers the system's ability to


be changed to produce new product types, and ability to change the order of
operations executed on a part.

The second category of flexibility within an FMS is called routing


flexibility, which consists of the ability to use multiple machines to perform
the same operation on a part, as well as the system's ability to absorb large-
scale changes, such as in volume, capacity, or capability.

The whole FMS is commonly controlled by a central computer.


The main advantages of a FMS are its high flexibility in managing
manufacturing recourses like time and effort in order to manufacture a new
product.

The best application of a FMS is found in production of small sets of products


that are likely but not equal that those from a mass production, otherwise
production cost of small sets of products will cost a lot in relation with mass
production cost.

Advantages and disadvantages of FMSs implementation:

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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:

 It is the ability of computerized machines to perform a variety of


programmed functions. It is the integration of computer-aided design,
engineering & manufacturing to produce low volume products at mass
production costs.

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 FMS requires fewer employees, but employees with more training and
higher skills.

 Each one is required to do a greater variety of task.

 They are supposed to keep away from inter-departmental competition,


conflict & politics & get along with other members as teammates.

 Cross-functional Team Work is required in factories, where engineers have


to design products by working hand-in-hand with market research &
manufacturing specialists.

 Use of robots and less people.

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?

HR professionals with the right skills can contribute to a Six Sigma


initiative at both strategic and tactical levels. This article describes the areas in
which HR should play a role in Six Sigma and discusses how HR
professionals can increase their chances of being included in Six Sigma
decision-making and implementation.

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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.

Six Sigma Defined:


The term "Six Sigma" is widely used to refer to all of the
following:

 A structured method for improving business processes. This method, called


DMAIC (define, measure, analyze, improve, and control), is supported by
an assortment of statistical tools.

 A statistical measurement of how well a business process is performing. A


process that performs at "Six Sigma" produces only 3.4 defects out of every
million opportunities to produce a defect. Processes that perform at lower
sigma levels (such as one sigma or four sigma) produce more defects per
million opportunities. It is possible for a process to perform at an even
higher level (and thus have even fewer defects), but Six Sigma has become
popular as the standard for excellent process performance.

 An organizational mindset in which people make decisions based on data,


look for root causes of problems, define defects based on customer rather
than internal requirements, seek to control variation, track leading
indicators of problems to prevent them from happening, etc.

Six Sigma Roles:


Six Sigma has a martial arts convention for naming many of its
professional roles. The chart below describes how these roles are typically
defined.

Six Sigma Roles And Responsibilities:

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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.

• HR's Role in Six Sigma:

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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.

 Black Belt Selection and Retention


Having the right people in the Black Belt role is critical to the
success of a Six Sigma initiative. The training investment is substantial for this
pivotal role. Further, Black Belts are the visible "face" of Six Sigma. They
help shape the organization's impression of Six Sigma, and, consequently, the
willingness of many to embrace the initiative. Therefore, you want to pick
Black Belts very carefully. (Some organizations only select Black Belts from
among those who have already been identified as "high potentials.").

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:

Building a competency model that will help identify candidates


with the right mix of technical, team, and leadership skills and abilities.

Creating job descriptions that help candidates fully understand the


position and expectations prior to signing on.

Developing a retention strategy that will help ensure Black Belts


complete their rotation and the organization recoups its investment in training
and development.

 Rewards and Recognition


Rewarding and recognizing Black Belts and Six Sigma teams is
more complex than it may appear. Black Belts join the Six Sigma initiative
from various places in the organization where they are likely to have been at
different job levels with differing compensation arrangements. Determining

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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.

Similar complexities are involved at the project team level. Six


Sigma projects led by Black Belts typically result in savings in the hundreds of
thousands of dollars. Deciding how the team should be rewarded and
recognized and who should get credit for what is not easy. Yet ignoring these
issues can result in resentment, reluctance to work on Six Sigma projects, and
the potential failure of the overall initiative.

HR professionals can help the Six Sigma Leader tackle the


challenge of establishing the right rewards/recognition. Potential HR
contributions in this area include:

Analyzing existing compensation arrangements to identify the


extent to which those arrangements will support the Six Sigma initiative.

 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.

HR professionals can help the project teams work together more


effectively. Potential HR contributions in this area include:

 Ensuring team leaders and members get training and/or coaching in


teamwork, conflict management, communications, dealing with difficult
team members, and other team effectiveness skills.

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 Providing teams with tools that allow them to diagnose their own
performance and identify when and where they need help.

 Acting as a resource for Black Belts who encounter team-related challenges


they cannot surmount.

 Creating a Six Sigma Culture


Many Sponsors, Champions, and Leaders look to Six Sigma as a
way to change an organization's culture to one that is more data-driven,
proactive, decisive, and customer-oriented. But they often have little idea
about how to achieve successful culture change.

HR professionals can help executives approach culture change in a


way that addresses the underlying business goals without creating
organizational resistance. Potential HR contributions in this area include:

Working with Six Sigma Sponsors, Leaders, and Champions to


identify elements of the culture that might hinder the achievement of Six
Sigma goals. Advising on change plans that will target those specific cultural
elements. Identifying how Six Sigma can be rolled out in a way that works
with, rather than against, the current culture.

 Change Management and Communications


Introducing Six Sigma into an organization is a major change that
will have a profound effect on a broad group of stakeholders. Managers and
employees at many levels of the organization will be asked to engage in new
behaviors. In many cases, those leading other initiatives will see Six Sigma as
a source of competition for resources, executive attention, and organizational
power. Others may see it as an indictment of their past performance. Many
will be confused about how Six Sigma fits with the large number of other
ongoing organizational initiatives.

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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:

Drafting a change management/ communications plan that


addresses the people side of the Six Sigma rollout.

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.

 Organizations are becoming more heterogeneous in terms of age, gender,


race, and ethnicity.

 Young, skilled & knowledgeable workforce

 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.

 Attracting & retaining young brains is a challenge for HR managers.

So organization (s) need to institute appropriate HR policies,


supported by attractive compensation offers. Diversity Issues in Indian
companies are somewhat peculiar owing to differences in social ethos,
religious origins, cultural differences & regional origins plus constitutional
provisions give preferential treatment to certain sections of the society.

 HR managers have to deal with issues of Child Labor, Women at Work,


Specially-able people, etc.

 Changes in Employee Roles & Values----emphasize on Quality of Life,


Equity & Justice, and Pluralism & Diversity over uniformity & centralism,
Participation over authority, Personal convictions over dogmas, and
individual over organization.

 Level of Education & Awareness---change in attitudes---retaining these


people (Knowledge Workers) challenged and satisfied demands more
responsibility & autonomy on the part of the HR manager & organization.

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Conclusion

Finally… every organization has some standard human resources


policies and programs. Organization offer different programs based on their
culture, size, and the competitive needs. The first step should be to start with a
checklist of human resources programs and initiatives. Then, a little research
helps in identifying the different methods followed by competitors and other
players in the industry. These lists can guide a company through its human
resources planning process.

HRD strategy is a process by which an organization ensures that it


has the right number and kinds of people, at the right places, at the right time
and that these people are capable of performing their tasks effectively and
efficiently. This helps the organization to achieve its overall objectives.

Human resource development planning and strategy is done at


different levels- corporate, intermediate, and operations levels and also for
short term activities. A proper human resource development strategy exercise
should utilize the inputs of all the departments in the organization and enjoy
the support of the top management. A human resource professional would be
better equipped for human resource development strategy and productivity if
he has a good understanding of the market dynamics, changes in the economy,

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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

 Facts of the case


 Chemtech India Limited- A Chemical Firm
 Employees – 1500
 Mainly in a Manufacturing Company
 Little accent on marketing
 Change in the government policy resulted in increased
competition
 There was need for aggressive marketing by the company
 Company decided to recruit one sales executive
 Mr.Aparojit Das is the VP-HRD and is responsible for
hiring interviews
 Two candidates are short listed and they are from same
company

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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

 Human Resource Management and Personnel Management


– Aswathappa.
 Organizational Behaviour- Stephen Robbins.
 Organisation Behaviour- Fred Luthans.
 Human Resource Management- Irwin McGraw Hill, 6th Ed.,
2000.
 Human Resource Management- Global Strategies for
Managing a Diverse Work force, Prentice Hall, 5th Ed.,
1995.
 www.wikipedia.org
 www.hrresources.com

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 www.managementmentor.com
 www.esinps.com
 www.hrnext.com

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