MBA606_Human Resource Management(Draft 3) (1)

reduce employee carbon footprints by electronicfiling, car sharing,job sharing, teleconferencing,and virtual interviews, recycling, telecommuting, online recruitment and training, energy-efficientoffice spaces,etc. The Green Human Resource Management plays an important role in the industry to promote theenvironment-related issues. Organizations must formulate HR policies and practices, train people toincreaseawarenessabouttheenvironment, andimplementlawsrelatedtoenvironmentalprotection. The Green HRM may also help the employers, manufacturers in building brand image and reputation.Organizations need to conductan environmental audit, thus changing the organizational culture,thinking about waste management, pollution, and helping the society and its people, those are gettingaffected by pollution. It will also make employees and society members aware of the utilization ofnaturalresources moreeconomicallyandencourageeco-friendlyproducts. ExpertshaveidentifiedthebenefitsofGHRM, whicharementionedbelow:  Helpingcompaniestobringdowncostswithoutlosingtheirtalent.  Organizations have huge growth opportunities by being green and creating a new friendlyenvironment,whichhelpsinenormousoperationalsavingsbyreducingtheircarbonfootp rint.  It helps in achieving higher employee job satisfaction and commitment, which leads tohigherproductivityandsustainability.  Createacultureofhavingconcern forthe wellbeing and healthoffellowworkers.  Improvementintheretentionrateoftheemployee.  Improved public image. Any time a firm adds a green initiative to its workplace, it can usethe event to generate positive public relations. Organizations can promote environmentalcontributionstothemediathroughpressreleasestoearntheattentionofpotentialcus tomersandpossiblenewsales.  Promoteemployee morale.  Improvement in attracting better employees. Dolan’s (1997) study of USA MBA studentsfound that most of the graduates would take a lower salary to work for environmentallyresponsible organizations.  Reductionintheenvironmentalimpactofthe company.  Improvedcompetitivenessand increasedoverallperformance.  Reduction of utility costssignificantly.Even smallbusinessescan significantly reducetheirutilitycostsbyusing technologiesthat areenergy-efficientandlesswasteful.  Rebates and Tax Benefits. Going green is easier with the assistance of governments, localmunicipalities, Water supply authority, and electric companies that offer tax incentives andrebates.  Increased business opportunities. Some government agencies, commercial businesses, andnon-profitinstitutionsmandatethatonlybusinessesthatmeetspecificgreenstandardscan 178 CUIDOLSELFLEARNINGMATERIAL(SLM)

bid on theircontracts. Some alsomandate that theirpurchasing departments only buygreen products or use products and services sold by companies that meet certain greenstandards.  Reductionofenvironmentaldamage.Encouragingemployees,throughtrainingandcompensatio n,to findwaystoreducetheuseofenvironmentallydamagingmaterials. Today,mosteducatedandaffluentconsumerslookforcompaniesthat adopt environmentalstandards.Organizations pursuing environment-friendly human resource policies are also immensely benefitted.This may help in arriving at greener products and green savings from waste elimination. Thepromotionofsuchvaluesmayalsoindirectlyimprove consumersatisfaction. DisadvantagesofGHRM While environmentally friendly living is a positive ideal, there are several possible disadvantages ofgoing green. Gregory Hamel hasmade a review of the disadvantagesif an organization is goinggreen. The majordisadvantagesare listedbelow;  Initialcosts.  Inadequatesavings.  Increasedcapitaloutlays.  Unevencompetition.  Marginalimpact.  Employeeapathyandreluctance. Initialcosts Perhapsthegreatestdisadvantageofgoing greenisthatit oftenrequiresahighinitialcost. For example, installing a new roof or new insulation to keep heat from escaping our home would beconsideredagreenhomeimprovement,butitwouldcostalargesumofmoneytogettheworkdone. Inadequatesavings The aim of going green in many cases, such as building an energy-efficient home or purchasing ahybrid vehicleisto reduce environmentalimpactwhilesavingmoneyin thelongterm. Green buildings and vehicles tend to use less energy, so initial costs can often be recouped over timethrough energy savings. The problem is that the savings generated by going green are often less thanexpected;theydonotmakeup fortheinitialcostquicklyenoughtomakethemeconomicallyviable. Increasedcapitaloutlays Somegreenconversionsrequireaninitialcashoutlaythatdecreasesthefirm’sbottom-lineperformance while the investmentis payingfor itself. This can decrease the earnings or annualprofitsofafirm. Uneven competition 179 CUIDOLSELFLEARNINGMATERIAL(SLM)

In the business world, going green can be an attractive goal to gain goodwill and consumer support,butunless green improvements are economically viable,itcan puta business ata competitivedisadvantage.Forinstance,ifonecompanydecidestoadheretostrict,self- imposedpollutionstandards which require the installation of new technology and workers, while another sets loosestandards,thesecond companywillbeatanadvantagesincetheywillhavelower productioncosts. Marginalimpact While going green is focused on reducing harm to the environment, the impact that any specificindividual can have on the environment by going green is often negligible. The theory is that ifeveryoneweretogogreen,itwouldhaveasignificantandnoticeableimpact,butnoteveryonecanbeconvince dtogogreen,andmanybelievethatdoingsohasnorealimpactoutsideof theeconomics.Thismakesgoinggreenapersonalchoiceformany. Employeeapathyandreluctance Many employees feel that it is not their responsibility to protect the environment while they are atwork.Butthenewlyeducatedworkforceisemphasizingonenvironmentalmanagementconsciousnesswhe ntheychoosetheiremployers, GreenHRMPractices Researchers (Cohen and Taylor, 2010; Ehner, 2009; Behrend, 2009; Philips, 2007) suggest a fewGreenHRM practices,whicharementionedbelow:  Encouraging employees, through training and compensation, is to find ways to reduce theuse ofenvironmentallydamagingchemicalsintheirproducts.  Assistingemployeesinidentifyingwaystorecycleproductsthatcanbeusedforplaygroundsforchi ldrenwhodon’thave accessto healthyplacestoplay.  Designing a company’s HRM system is toreflectequity, development, and well- being,thuscontributingto thelong-term health andsustainability of both internal (employees)andexternalcommunities.  Emphasizing long-term employment security is to avoid disruption for employees, theirfamilies,andtheircommunities.  Use of job portals of companies for recruitment and custom of telephone, internet, andvideo interviews, which can lessen the travel requirements of the candidate and affectingthe reductioninpaperwork.  Green rewards to employees can be provided by companies in the arrangement of thenature-friendly workplace and lifestyle benefits through providing carbon credit equalizers,free bicycles, and pollution-free vehicles for transportation to the workplace to engageemployeesingreen agenda. 180 CUIDOLSELFLEARNINGMATERIAL(SLM)

 Talented, skilled, and experienced employees are environmentally conscious now, and theyalways look for self-actualization to be committed to their work. Green HR can create thiscommitmentbyfollowinggreenvaluesand practices.  Green actions can occur with minimum use of paper and printed materials in recruitment,traininganddevelopment,andperformanceappraisal.  Acompanycancreateagreenbusinessenvironmentbyreducingtheuseof printedmaterials, increased ‘recycling, using eco-friendly grocery and lunch bags, and prohibitingthe useofbottledwater,plasticintheworkplace.  Luminous lightbulbsandotherenergy-savinggreendevicescanbeusedintheworkplace.  Companies can inspire their employees to change their travel and transportation waysthrough reducing official car trips, using public transport for business travel, carpooling,providinginterest-freeloanstopurchasehybridcars,andcyclingorwalkingtowork.  Conduct business meetings and conferences through the internet, telephone, and videoconferencingwhereverpossible toreduce businesstravel.  Provide flexible work opportunities to employees in telework or work from home by usingemailsandcompanyportals throughintranetandinternet.  Wellnessprogramsforemployees,theirfamilymembers,andgeneralpeoplecanbearrangedtofoc us on physicalfitness,propernutrition,anda healthy lifestyle.As animportantgreen objective,environmental managementcan beincludedin themissionstatement of the company as a part of their social responsibility. Organizations can arrangecleanliness and waste management initiative in the workplaces and surrounding society tocause awareness aboutgreenissues.  Encourage the employee to turn off lights, computers, and printers after work hours and onweekendsforfurtherenergy reductions.  Inspire employees to place computers and printers in energy-saving settings when they willbe awayforawhile.  Turn off office lights while attending meetings and at night and over the weekend. Turnlights off in restrooms, conference rooms, libraries, and so forth when the room is not inuse.  Work with IT to switch to laptops over desktop computers because Laptops consume up to90%lesspower.  Arrangeanairconditioningsystemwithdiscretion.  Purchaselargeorrefillablecontainersofcreamer,sugar, salt,pepper, andbutterinsteadofindividualcontainers.  Arrangegreen-themedgamestopromoteenvironmentallyfriendly behaviourandstafftogetherness.  Providegreenpromotion, whichincludesloandiscountsonfuel-efficientcarsandenergy- savinghomeimprovements,discountsatlocalgreenmerchants. 181 CUIDOLSELFLEARNINGMATERIAL(SLM)

E-HRM E-HRMhasbeendefinedas“away ofimplementingHRstrategies,policiesandpracticesinorganizationsthroughaconsciousanddirectedsuppo rtofand/orwiththefulluseofweb-technology-based channels” or more recently, and more broadly, as “the planning, implementation,and application of information systems for both networking and supporting actors in their sharedperformingofHRactivities”. e- HRMcanalsobedefinedastheplanning,implementationandapplicationofinformationtechnologyforbothn etworkingandsupportingthe HR activities e-HRM is in essence the devolution of HR operations to management and employees. They accessthese operationstypicallythroughintranetorotherweb-technologychannels. From this ground, e-HRM has expanded to embrace the delivery of virtually all HR policies. Withinthe system of e-HRM, it is possible for margin managers to use desktop computers to organize andconduct appraisals, plan training and development, evaluate labour costs, and examine indicators forturnoverandabsenteeism. Employees can also use a system of e-HRM to plan their personal improvement, apply for promotionand new jobs, and access a range of information on HR policy. Systems of e-HRM are increasinglyencouragedbydedicatedsoftware producedbyprivatesuppliers. Types&Goals On the basis of functionalities,we can divide e-HRMinto three differentlevels or tiers.In thissection,wewillbe havingabriefidea aboutthese threetiers. Operational e-HRM − Itis about administrativefunctions like payroll and employee personal data.Alltheemployeedetailsarestoredinthedatabaseandregularlyupdated. Relational e-HRM − It is about supporting business processes. This is done by means of selection,training,recruitment, performancemanagement, careerdevelopmentoftheemployeesandsoforth. Transformational e-HRM − It is about strategic HR exercises such as knowledge management andstrategic re-orientation. An organization may decide to pursue E-HRM policies from any number ofthese tiers tomeettheirHR goals. e-HRM is seen as the potential to develop services to HR department clients (both employees andmanagement), develop efficiency and cost effectiveness within the HR department, and permit 182 CUIDOLSELFLEARNINGMATERIAL(SLM)

HR tobecome astrategic partnerinachievingorganizationalgoals. 183 CUIDOLSELFLEARNINGMATERIAL(SLM)

In recruiting aspect, we have a number of websites for recruiting of employees in industries. Some ofthe popularandimportantwebsitesinIndiaarelistedbelow.  naukri.com  indeedjobalert.com  jobsahead.com  monsterindia.com  careerindia.com  placementindia.com  jobsearch.rediff.com  bestjobsindia.in  jobzing.com  cybermediadice.com  Careerjet.co.in We have mentioned a few of the examples showing e-HRM, but there are lot more we can use. OurATM transactions, automatic updating system, e-library, e-governance, all come under e- HRM.These are some of the examples showing e-HRM in India. It is a huge branch of study; in this section,wehavejustintroducedtheconceptofe-HRM. EMPLOYEEEMPOWERMENTENGAGEMENT Employee empowerment is a term used to express the ways in which staff can make their owndecisions without consulting superiors. These decisions may vary in effect depending on the level ofempowermentyour organization wishes its employees to have. Employee empowermentusuallybegins with training, which can transition an entire company toward an empowerment model whereemployees are trusted to make responsible decisions that benefit the company as a whole. Or, it couldmerely mean giving employees the ability to make some decisions on their own, but still puttingparametersinplacetogovernthosedecisions.Withgreaterresponsibility,employeesfeelappreciated and will work for the greater good of your organization. By offering employees choiceand participation on a level that actually affects daily production, your employees are more a part ofthe company, and view themselves as ambassadors and will work to justify your trust with enhancedperformance. Employeeengagement Employee engagement is the concept that when employees have choices, they will act in a way thatbenefits their company's interests. An engaged employee is a person who is fully involved in, andenthusiastic about, his or her work. Less than 30 percent of all employees actually feel engaged intheirjobs, accordingtoa2008EmployeeEngagementReport. Highlyengagedemployeesbelieve 184 CUIDOLSELFLEARNINGMATERIAL(SLM)

they can positively affect the quality of their organization's products or services. Those engagedemployeesworkwithpassionandfeela strongconnectiontotheircompany. EmployeeEngagementTypes Employee Engagement refers to the emotional attachment an employee has with the organization. Anemployee is said to be highly engaged, if he is fully absorbed or encouraged to perform his taskbeyond what typically is expected in his job role. An organization is a collection of individuals whocome together and work towards the realization of a common objective. Larger the number of peopleworking together, largeris the size of the organization and vice-versa. However, for an organizationto flourish, it is important for the employees to operate at their full potential, which unfortunately isnot the case in most of the organizations. Employee engagementis not an exact science. At the coreof employee engagement are some values. These values determine the why, how and what of thatcompany.Not all employeesin an organization utilize theirfull potential.Theremay bemanyreasons responsible for the same. They may not associate with the goal of the company, they mayhave problem with their team, the boss or the subordinate or it may be a general problem of attitude.An organization is a collection of a large number of individuals striving towards the accomplishmentof a common objective. Ideally, every employee must work to their full potential to further theorganization’sreputationandinterests,buthoweverthisisnotthecaseinmostofthecompanies. Basedonthelevelofcommitment,theemployeescanbeclassifiedintothefollowingthreecategories Fig 12.1 Employee Engagement TypesActivelyDisengagedEmployees: This is thefirstcategory of employees, whoare unhappy and resentful and spreads unhappiness inthe organization. Such employees are bad for the organization since they are always provoking andconvincing the other employees to leave their jobs and move out of the organization. However, theseemployeeslastlongerinthefirmandremovetheprospectiveemployeeswhomtheyperceivewill 185 CUIDOLSELFLEARNINGMATERIAL(SLM)

attain higher position or move to the nextjob level in thenearfuture. They doso, togetaheadintheirjobsbyremovingthepotentialcandidates. EngagedEmployees: The engaged employees are those who work with full passion and are emotionally attached to theorganization. They are innovative and provide new ideas to move the organization forward. Suchemployees are optimistic and spread positivity among the co-workers. They personalize the goals andobjectivesandalwaysworkforthebettermentoftheorganization. NotEngagedEmployees: This is the category in which majority of the employees in the organization fall. These are the oneswho seek directions from their superior and do only that work which has been asked for. Suchemployees do put in their time, but not passion and energy into their work. They like to receive onlyone instruction at a time and lacks innovativeness. These employees can hold either a negative orpositive attitude towards the organization. Thus, an employee can fall into either of these categoriesdepending on his emotional attachment to the firm. The emotional attachment refers to the strongemotionalbondemployeeshares withthe organization EmployeeEngagementProcess WecansegregatetheentireprocessofEmployeeEngagementintothefollowingfivecategories Fig12.2EmployeeEngagementProcess PrepareandDesign The first step in the process is about discovering the specific requirements of your organization anddeciding the priorities. After that, a customized design of carrying the whole process can be designed.It is recommended to seek advice of an expert management consultant to increase the chances ofgettingitdone rightatthefirstattempt. EmployeeEngagementSurvey 186 CUIDOLSELFLEARNINGMATERIAL(SLM)

Designthequestionsoftheemployeeengagementsurveyanddeployitwiththehelpofanappropriate media. It can be either in printed form or set online depending on the comfort level of theemployeesandyourquestionnaire evaluationprocess. ResultAnalysis It is themostimportantstep in the entire process. It is the time when reports are to be analysed tofind out what exactly motivates employees to perform their best and what disengages and compelsthemtoleavetheorganization.Theresultsandinformationcanthenbedeliveredthroughpresentation s. ActionPlanning ‘How to turn the results of the survey into an action’ is a challenging question that organizations needto deal with utmost care. Coaching of line managers as well as HR professionals is very important totell them how to take appropriate actions to engage employees. They should also be told about thedo’sanddon’ts,sothattheycansuccessfullyimplementthe changes. ActionFollow-up Action follow up is necessary in order to find out if the action has been taken in the right direction ornotandifitis producingthedesiredresults. CommunicationandprojectmanagementprocessesarethebackboneoftheentireEmployeeEngagement Process. Communication involves plan follow-up, providing timely information andinvolvementofeachleveloforganizationalhierarchy. PhasesofanEmployeeEngagementCycle Fig12.3Phasesofan 187 EmployeeEngagementCycleThe AttractPhase The firstphaseoftheemployeeengagementcycleisattractingthebesttalentfromthe industry.This phase involves creating a positive impression about the work culture and employee careerasapotentialemployer. TheAcquirePhase CUIDOLSELFLEARNINGMATERIAL(SLM)

Theacquirephaseinvolves morethanoneaspect.Itincludes−  Thewaythesepotentialcandidatesareinteractedwhileadvertising aposition.  Keepingthepromisesthatweremadewhilehiringthem.  Providingthenewjoiners, arightkindofworkculture. TheAdvancePhase Continuous moving of the talent is the last but an unending phase. It not only involves promoting theemployees to a higher designation along with salary increments, but also growing them in othertangible andintangibleways. As mentioned earlier, employee engagement is not only about attracting, acquiring, and retaining thebesttalentbutalsoadvancingtheirexperienceandpersonality. InstallingEngagementandEmpower Thereareseveralstepsthatwillhelptoempowerandengageyouremployees. ThetopfiveareCoveredhere. 1. Perception of job importance - If your employees feel that their jobs are important, they will feelvalued,andyouwillhave employeeloyalty. 2. Clear expectations - Clear expectations, basic materials, and equipmentmustbe provided ornegative emotions such as boredom may result. Employees will become more focused on gettingthroughthedaythanabouthowtohelptheorganizationsucceed. 3.Regularfeedbackfrom superiors-Feedbackis the key to giving employees a sense of wherethey're going. Many companies are lacking in this department. This feedback has to be positive aswellas constructivelycritical. 4. Use a suggestion box - Allowing your employees a say in what is being done in the work placewill strengthen their pride in their job and let them feel as if they have an effect on the company'soperations. 5. Effectivecommunications-Employeeswanttoknowwhatishappeningintheworkplace.Accepting that employees wish to feel involved in what they are doing is the first step in creating amore productiveworkenvironment. Employeeengagementandempowermentrepresentpowerful waystoenhanceproductivity andprofitability. Valued employees are happy employees; and happy employees are what drive businesssuccess GOLDENHANDSHAKE A golden handshake is a clause in an executive employment contract that provides the executive withasignificantseverancepackageinthecasethattheexecutivelosestheirjobthroughfiring,restructuring,or even scheduled retirement. This can bein theform of cash,equity,and otherbenefits,andisoftenaccompaniedbyanacceleratedvestingofstockoptions.AccordingtoInvestopedia, agoldenhandshakeis similarto,butmoregenerousthanagoldenparachutebecauseit 188 CUIDOLSELFLEARNINGMATERIAL(SLM)

not only provides monetary compensation and/or stock options at the termination of employment, butalsoincludesthe same severance packagesexecutiveswouldgetatretirement. The term originated in Britain in the mid-1960s. It was coined by the city editor of the Daily Express,Frederick Ellis. It later gained currency in New Zealand in the late 1990s over the controversialdepartures of various state sector executives. A golden handshake can also be referred to as a goldenparachute. Typically,\"golden handshakes\"are offered only to high-ranking executives by majorcorporationsand may entail a value measured in millions of dollars. Golden handshakes are given to offset the riskinherentin taking the new job, since high-ranking executives have a high likelihood of being firedand since a company requiring an outsider to come in at such a high level may be in a precariousfinancial position. Their use has caused some investors concern since they do not specify that theexecutive has toperform well.In somehigh-profileinstances,executives cashedintheirstockoptions, while under their stewardship their companies lost millions of dollars and thousands ofworkerswerelaidoff. SpecialConsiderations Occasionally non-executives receive a golden handshake as a bonus. It is usually drastically differentthan the compensation that CEOs and top executives get, so one might call it a \"silver handshake.\"Nevertheless,itis betterthanleavingwithnothing. An example of this is automotive companies that buy out union workers' contracts. This can then freeup that capital to hire new workers at a more advantageous labour cost. Another example is peoplewho are forced into early retirement. Often times companies want to bring in new talent so thesepeople arepaidseverancepackages. CriticismofGoldenHandshakes Golden handshakes can be very controversial. They can damage a company's public image becauselarge executive payoffs are viewed as a reward for failure. For example, in 2010 British the oilcompany BP had an oil spill that occurred in the Gulf of Mexico as a result of the explosion of theDeepwaterHorizonoilrig. The rig was leased to BP for exploration of the Macondo Prospect, an oil field off the coast ofLouisiana. After the accident, which resulted in costs to the company of more than $60 billion, BP'sCEO Tony Hayward was pushed out. However, he received a golden handshake pay-out of a year'ssalary,worth$1.61million,inadditionto keepinghisapproximately$17millionpension fund. 189 CUIDOLSELFLEARNINGMATERIAL(SLM)

Otherfamousgoldenhandshakecontroversiesoccurredduringthe2008financialcrisis.Aftermanyof these banks got into financial trouble, top executives were forced to depart but left with large paypackagesintact.Somebigbanksallowedtop-levelstafftocashoutofincentiveprogramsbyaccelerating the vesting of their stock awards. For example, Antonio Weiss, a former Lazard banker,acknowledged that he received up to $21 million in unvested income and deferred compensationfollowinghisdeparture. Bank shareholders who were left with worthless stock and bond investments were upset by theseagreements. Since then, some companies have given investors a say on executive pay packages atshareholdermeetings.These shareholder votes are usually non-binding,butdoprovide a strongsignaltomanagementaboutinvestors'attitudetowardexcessive executivepay-outs. GLASSCEILING The glass ceiling is a metaphor referring to an artificial barrier that prevents women and minoritiesfrom being promoted to managerial- and executive-level positions within an organization. The phrase“glass ceiling” is used to describe the difficulties facedby women when trying to move to higherroles in a male-dominated hierarchy. The barriers are most often unwritten, meaning that women aremore likely to be restricted from advancing through accepted norms and implicit biases rather thandefinedcorporatepolicies. The term “glass ceiling” was popularized in a 1986 Wall Street Journal article about the corporatehierarchy. The glass ceiling is a metaphor for an artificial barrier preventing women from beingpromotedtotopjobsinmanagement.Inrecentyearstheterm hasbeenbroadenedtoincludediscriminationagainstminorities aswell. UnderstandingtheGlassCeiling The glass ceiling concept was first popularized in a 1986 Wall Street Journal article discussing thecorporate hierarchy and how invisible barriers seemed to be preventing women from advancing intheir careers pasta certain level. (In 2015, the Wall StreetJournal itself reported that the conceptgoes back to the 1970s, quoting Gay Bryant, former editor of Working Woman magazine, and theconcept may have originated with two women at Hewlett-Packard.) In more recent years the analysisof the glass ceiling has expanded to include issues preventing not only women from moving up butalsominorities. Research shows that diverse groups make better decisions than homogenous ones, making shatteringthe glassceilinggoodforacompany’sbottomline. Companies have responded to the equality gapby focusing on measures toincrease diversity. Thishasincludedhiringpersonnelspecifically taskedwith ensuringthatwomen andminoritiesseeimprovedrepresentationinmanagement-level positions.Byfocusingonpoliciesthatreduce 190 CUIDOLSELFLEARNINGMATERIAL(SLM)

oreliminatetheglassceiling,companiescanensurethatthemostqualifiedcandidatesholddecision- 191 CUIDOLSELFLEARNINGMATERIAL(SLM)

makingpositions.Additionally,researchhasshown thatdiversegroupsare moresuccessfulinmaking decisions than homogeneous ones, which has the effect of signalling tocompanies thateliminatingthe glass ceilingcanpositivelyaffecttheirbottom lines. HistoryoftheGlassCeiling The equality gap varies from country to country, and in some cases, it is driven by cultural stancesagainstwomen participatingin the workforce. In 2005 women accounted for nearly half of theworkforce, but less than 10% of managers in the United States. While the percentage of upper- levelpositions held by women was somewhat higher in Fortune 500 companies, women who held CEOpositions still earned less than men. In 2019 there were 33 female chief executive officers (CEOs)leading Fortune 500companies—thehighestnumberever—butstillonly6.6%ofthe totallist. In response to the growing concern over barriers preventing women and minorities from advancing,the U.S. Department of Labour launched the Glass Ceiling Commission in 1991. It was charged withidentifying the types of barriers thatexistand policies thatcompanies had undertaken or couldundertake toincreasediversity inmanagerial andexecutivelevels.Thecommissionfoundthatqualified women and minorities were being denied the opportunity to compete for or win decision-making positions. It also found that the perceptions of both employees and employers often includedstereotypesthatheldwomenandminoritiesina negativelight. WhenHillaryClintonran forpresidentin2008and2016,she repeatedlyspokeofhergoalof shatteringthe“highest,hardestglassceiling” bybecoming America’sfirst femalepresident.HadMrs. Clinton won in 2008, at the height of the Great Recession, she might have been seen as the victim ofarelatedterm,the“glasscliff.”CoinedbyprofessorsMichelleK.RyanandAlexander HaslamoftheUniversity of Exeter, United Kingdom, in 2004, it refers to the practice, which they documented in astudy of Great Britain’s FTSE 100 companies, of promoting women to positions of power in times ofcrisis,whenfailureis agreaterpossibility. IHRM International Human Resource Management (IHRM) can be defined as a set of activities targetinghuman resource management at the international level. It strives to meet organizational objectivesand achievecompetitiveadvantageovercompetitorsat nationalandinternationallevel. IHRM comprises of typical HRM functions such as recruitment, selection, training and development,performance appraisal and dismissal done at the international level and additional exercises such asglobalskillsmanagement,expatriate managementandsoon. Inshort,IHRMisconcernedwithhandlingthehumanresourcesatMultinationalCompanies(MNCs)anditinclu desmanagingthreetypesofemployees− CUIDOLSELFLEARNINGMATERIAL(SLM)

189 CUIDOLSELFLEARNINGMATERIAL(SLM)

Home country employees − Employees residing in the home country of the company where thecorporate head quarter is situated, for example, an Indian working in India for some company whoseheadquartersareinIndiaitself. Host country employees − Employees residing in the nation in which the subsidiary is located, forexample,anIndianworkingas anNRIinsomeforeigncountry. Third country employees − These are the employees who are not from home country or host countrybutareemployedattheadditionalorcorporateheadquarters. For example, an Indian MNC, which has its corporate office in America,may employ a Frenchpersonasthe CEOtothe subsidiary.The Frenchmanemployedisa third countryemployee. IHRMvs.HRM There are many similarities between HRM at the national as well as international level. However, letushave alookatthe differencesbetweenthemwiththehelpofpointsgivenbelow −  Domestic HRM takes place at the national level, that is, within a country and IHRM takesplaceat theinternationallevel,thatis,in betweentwoormorethantwocountries.  Domestic HRM is bothered about managing employees belonging to one nation and IHRMis bothered about managing employees belonging the home country and host country aswellas thirdcountryemployees.  Domestic HRM is concerned with managing limited number of HRM activities at thenationallevelandIHRMisconcernedwithmanagingadditionalactivitiessuchasexpatriatema nagement.  Domestic HRM is less complicated due to less imprint from the external environment.IHRM is comparatively more complicated, as it is deeply affected by the external factorssuchas culturaldistance andinstitutionalfactors. WecanconcludethatbothIHRMandHRMsharesomegroundsofsimilaritiesaswellasdissimilarities, but both have their own importance. Further, they contribute to the development of acountryinacombinedmanner. TALENTMANAGEMENT Talentmanagementindicatestheskillsofattractinghighlyskilledworkers,integratingnewworkers,andimpro vingandretainingcurrentworkerstomeetthecurrentandfuturebusinessobjectives. Mona Please remove the color 190 bubblesasthe wodrsarein’white’color.Ifthisisp rinted, the words will not be clear.Pls keepthisblackandwhiteonly CUIDOLSELFLEARNINGMATERIAL(SLM)

Fig 12.4 TALENTMANAGEMENT Companies involved in a talent management strategy shift the duties of employees from the humanresources department to all managers throughout the company. It is also called Human CapitalManagement(HCM). Talentmanagementisbasicallyconcernedwithcoordinating,collaboratingandmanagingthedifferent talents people have to offer within a company. This is done by studying and examining eachindividual on the basis of their skills, talent, personality and character in relation to filling a particularvacancywithinthecompany. Every individual has different skills to offer and the difficult part for a company is choosing thoseindividuals who fit in with the existing company culture. Effective HR procedures will be able toidentifytheseindividualsandappointthemappropriately. FunctionsofTalentManagement Aftergathering all the skilled people requiredfor thejob,we need to handle them.Thisisnotpossible without specifying the operations that need to be undertaken in talent management. Variousfunctions that organizations should perform with the help of HRM and other departments are givenbelow−  Talentrequirementanalysis  Allocatingthetalentresourcesor sources  Influencingtalentstowardstheorganization  Recruitingorno minatingtheinhouseoroutsourcedtalents Mona  Managingcombat ----------------------------T--r-a--i-n--i-n--g-a--n--dprog ivesalariesorprofessionalfeesre Please remove the color ssoftalentpool bubblesasthe wodrsarein’white’color.Ifthisisp rinted, the words will not be clear.Pls 191 keepthisblackand whiteonly CUIDOLSELFLEARNINGMATERIAL(SLM)

 Performanceexaminationoftalent  Career andprosperityplanning  Withholdingmanagement We can conclude that talent management or human capital management is a set of business practicesthatmanages the planning,acquisition,development, retention and growth of talentin order toachieve business goals withoptimizedperformance. AdvantagesofEffectiveTalent Management If talent management is done properly, it would lead the organization prosper wonderfully, as all theemployeesin the firm would bemastersin their own departmentand will give their best toachievethegoalsandobjectivesofthecompany.Thatway,thecompetencygapbetweennecessarycompete nciesbytheindustryandavailablecompetenciesminimizessignificantly. Themainadvantagesofeffectivetalentmanagement are−  Continuouslygroomstheorganization's effectivenessandefficiency.  Helpsinachievingthetargetedbusinessgoalswithsuperiorperformance.  Improvesorganization'soverallcultureandworkclimate.  Providespeoplewithhighlevelofsatisfactionwiththeirjobs.  Improveswithholdingoftalentandreducespeople turnover.  Managesbetteroverallgrowthofpeopleassociated withtheorganization. Itisessentialthattherightcandidateshavingtherequiredskillsetarerecruitedinordertomakeuseof theirskills andutilizethem for thedevelopmentof both theindividual as well as thecompany.Thisis possible onlywiththe helpoftalentmanagement. INTERNATIONALHRPRACTICES SomeofthemajordimensionsinvolvedinpracticesininternationalHRMareasfollows: in AresearcherDowlinghavingreviewedtheliteratureavailableoninternationalHRMconcludedthatit included more “functions and activities, broader perspectives, more involvement employee’spersonallife,changes inemphasisastheworkforcemixParentCompanyNationals(PCNs)varies. Host Country National (HCNs) varies, risk exposure, more external influences. Depending on thedistinctinternationalcontext,therecannotbeasingleapproachasperfectandfoolproofformanaginghuma nresourcesatinternationallevel. However,thevariousdimensionsinvolvedinthecontexthavetobeconsideredbeforeimplementingaparticul arapproachormixofapproachesformanagingHRatthelocallevelorcorporateheadquarters. With this in view, we now discuss the major considerations or dimensions involved informulatingHR 192 CUIDOLSELFLEARNINGMATERIAL(SLM)

practicesinaninternationalcontext. 193 CUIDOLSELFLEARNINGMATERIAL(SLM)

1. Planning: ThereareusuallythreeapproachestoHRplanninginmultination.Theseare:ethnocentric,polycentric, and geocentric. In ethnocentric policy, all key management positions are filled by parentcompany nationals and foreign subsidiaries are being locally staffed or what is termed as HCNs(Home CountryNationals). The reasons given for following ethnocentric planning policy include lack of managerial talent in thehostcountry,desiretomaintainaunifiedcorporatecultureandtightercontrolanddesiretodisseminate the parent firm’s core competencies across foreign subsidiaries. This policy is usuallyfollowedatanearlystage of“internationalisation”. Researchers” have, however, identified some major problems with this approach. They feel it limitspromotional opportunitiesof HCNswhichmay leadtoreducedproductivity.PCNsunfamiliaritywithlocalconditions,on theotherhand,couldbethenegativefactor. In polycentric approach, the foreign subsidiaries are managed by host country nationals and home- officeheadquartersbyparent- countrynationals.Thisapproachmayreducethelocalculturalmisunderstandings that expatriate managers may exhibit. The advantage of this approach is thatadjustment and language learning problems are eliminated. American Express and Nestle follow thisapproachforstaffingtheirforeignsubsidiaries. In contrast to the former approaches, the geocentric approach has accent on ability rather than onnationality. This approach seeks the bestpeople for key jobs throughout the organization regardlessof nationality. This approach seems to identify with the spirit of the times and enablea firm todevelopaninternationalexecutivecadreandreducethetendencyofnationalidentificationofmanagerswith units. The drawbacks of this approach, if any, are it faces conflict with polices of local governments whodesireforeignsubsidiariestoemploytheircitizens,cumbersomepaperwork,andincreasedrelocationan dtrainingcosts. Morgan”haspresentedthesethreeplanningpoliciesasshowninFigure1. 194 CUIDOLSELFLEARNINGMATERIAL(SLM)

Fig12.5HumanResourcePlanningProcesses 2. RecruitmentandSelection: Recruitment and selection functions of HRM are performed to ensure right man on right job at righttime and right place. However, this is not so easy, more especially in case of MNCs. According toSolomon, 20% to 25% of all overseas assignments fail mainly due to recruitment reason. Hence,recruitmentandselectionmatterinhumanresourcemanagement. Selectors usually play safe by placing a heavy emphasis on technical qualifications and little on theindividual ability toadapttoaforeignenvironmentthatis,drasticallyandculturally different,Foreign placements make demand on expatriate employee that are different from what the employeewould face if posted in his or her home country. For example, the expatriate employee will have tocope with new work force, with colleagues with drastically different cultural inclinations, coupledwith, if the spouse and children also accompany, the problems of adjustments with new place andpeople, making new friends, shopping in strange surroundings, learning language, and attending newschools. The research has shown beyond doubt that though technical competence is important for success,relational abilities increase the probability of successful performance. In his study, Tung” found thatlack or relational skills was a principal cause for failure of individuals to cope in a multinationalenvironment. He reported that when a US food manufacturer sent its marketing manager to Japan for18 months, the process of his adjustment lost the company 98% of its market share to a majorEuropeancompetitor. Thus, selecting employees for foreign assignments means screening them for those traits that predictsuccess in adapting to what may be dramatically new environments. A recent research study hasidentified five factors perceived by international employees to contribute to success in a foreignassignment. 195 CUIDOLSELFLEARNINGMATERIAL(SLM)

They were: job knowledge and motivation, relational skills, flexibility/ adaptability, extra culturalopenness, and family situation. Monappa views that in a multicultural work force, human resourcepracticeshavetobe reactiveratherthanproactive. 3. Training: Training is essentially imparted to improve job skills of the employees. It should also coincide withstaffing needs. Accordingly, employees in an MNC need induction, orientation and training to beimpartedinthesocial,cultural,businessandtechnicalaspectstomakethem,fitforbusinessrequirements of today and tomorrow. An expert suggests that overseas employees need four- leveltrainingtobeimparted. Theseare: Level I. training focuses on the impact of cultural differences, and on raising trainees’ awareness ofsuchdifferences andtheirimpactonbusinessoutcomes. Level II. Focuses on attitudes and aims at getting participants to understand how attitudes (bothpositive andnegative)areformedandhow theyinfluencebehaviour. LevelIII.Trainingprovides factualknowledgeaboutthetargetcountry. Finally, Level IV provides skill building in areas like language, adjustment and adaptation skills.Beyond these special training practices, the need for traditional training is also felt for developmentof overseas employees. As in IBM, such training is imparted by rotating employees’ assignments.This helps employees grow professionally. Besides, IBM and other major MNC firms haveestablishedtheirManagementDevelopmentCentres(MDCs)aroundtheworldwhereexecutivescanc ome tohonetheirskills. The success of the Japanese MNCs is attributed, to a large extent, to their strong training practices.Japanese companiesimpartdifferentkinds of training totheiremployees.Some send themforgraduateprogrammes,somesendthemabroadtotraininbusinesslawandengineeringandfamiliarize themselveswithforeignprinciplesofmanagement.ThereisalsotheInstituteofInternationalStudiesandTrain inginJapan,establishedasajointventureamongbusiness,governmentandacademic circles,topromotetrainingactivityinthecountry. 4. Compensation: The issue of compensation/remuneration in case of international employees is a tricky one for tworeasons. First, paying all the employees of one rank the same compensation satisfies the norm ofequitable remuneration. However, it raises more problems than it solves. The fact remains that as asecond reason,the costofliving canbe significantlyvaryingamongthe countries. 196 CUIDOLSELFLEARNINGMATERIAL(SLM)

For example, it can be enormously more expensive to live in America than in India. It these cost-or- livingdifferencesarenotdulyconsideredwhiledeterminingcompensationforoverseasemployees,itmay be almost impossible to get employees to take these high-cost assignments. Therefore, payingcompensation that not just satisfies employees but also seems fair and equitable is no simple matterThe most common approach for formulating multinational employees’ compensation is to equalizepurchasing power across countries, a technique known as the Balance Sheet Approach”. The basicidea behind this approach is that each foreign employee should enjoy the same standard of livinghe/she would have enjoyed at home. For this, multinational pay equal base pay to employees plussome allowances in the form of mobility allowance, housing allowance, children’s educationallowance,etc.,toregainlostpurchasingpowerdue torelocation. In India with the process of liberalization and globalization, the governmenthas allowed companiesto pay their managers salary packages which are more in keeping with those of their counterpartsabroad. Unless salary and benefits are more or less equitably distributed through the different units ofa multinational, it can cause problems of demotivation and lacklustre performance. This would causemoredamagetothebottomlinethantheincreaseinbenefitspaidto individualemployees. 5. PerformanceAppraisal: Likecompensation,severalthingscomplicatethetaskofappraisingaforeignemployee’sperformance. Two are the most crucial ones. One, who will appraise? Two, what will be the criterionof appraising? Local managers having some inputs can appraise the expatriate employee. But suchappraisalislikelytobe distortedbyculturaldifferences. For example a US expatriate employee in India may be appraised somewhat negatively by his host- country bosses who find his use of participative decision making inappropriate in their culture If theexpatriate is appraised by objective criteria such as profits and market share, it may also not be quiteappropriate because local events such as political instability, for example, will have their bearing onthe expatriateperformance. In order to resolve the above appraisal issues, experts have suggested a five-point procedure forimprovingtheexpatriateemployee’sappraisal. Theyare:  Stipulate the difficulty involved in assignments at the work place of expatriate. For example,workingasexpatriateinChinaisgenerallyconsidered moredifficultthanworkinginIndia.  Give more weight in evaluation towards the on-site manager’s appraisal than towards the home- site manager’s appraisal which will be mainly based on distant perceptions of the employees’performance. 197 CUIDOLSELFLEARNINGMATERIAL(SLM)

 In case the home-site manager appraises the expatriate employee, the manager should take atleastbackground advicefromaformerexpatriatefromthe sameoverseaslocation.  Modify if required, the performance criteria used for a particular job to fit the overseas positionand characteristics of thatparticularlocale. Forexample,maintaining andimprovinglabourrelations might be more important in India which is characterized by labour instability, than itwouldbeinanothercountrylikeUnitedStates.  Use both quantitative and qualitative criteria to evaluate the performance of overseas employee.So, to say, don’t appraise the expatriate, in terms of quantifiable criteria like profits or marketshare only, but also give due credit for his or her very relevant insights into the functioning ofoverseas operations. SUMMARY  The human resources department of today operates very differently from the human resourcesdepartmentofonlyadecadeago.  The changing job market, regulatory demands and complianceissues have forced humanresourcemanagerstobecomenimblepartnersinthestrategicdevelopmentofbusinesses.  Business owners need to understand the contemporary issues that human resources managersface, sothattheymayunderstandhowtoutilizethisvaluableresourcetothebestadvantage.  It is evident from the discussion so far made that GHRM promises potential benefits for bothorganizations and those employed by them. Equally, the GHRM practices analyses here arelikely to improve employee wellbeing in the workplace, not least through improving theworkingenvironmentandsatisfyingtheneedsof anincreasingly environmentally awareworkforce  As a result of the recent globalization, empowerment has emerged as a growing concern andanindispensabledevice toaccomplishhighcorporateperformance.  Empowerment is defined as the recognition and proper channelization of the existing strength,skills and knowledge of the people for the benefit of the organization. Its prerequisites areparticipation, innovation, access to information and accountability, while the barriers includeincongruence between empowerment’s goal of inclusion and organizational culture, low needfor autonomy among people, managerial fear related to distribution of power and need forhighpoweramongmanagers.  A golden handshakeisaclauseinan executiveemploymentcontractthatprovidestheexecutive with a significant severance package in the case that the executive loses their jobthrough firing, restructuring, or even scheduled retirement. This can be in the form of cash,equity,andotherbenefits,andis often accompaniedby an acceleratedvestingof stockoptions. 198 CUIDOLSELFLEARNINGMATERIAL(SLM)

 The glass ceiling is a metaphor referring to an artificial barrier that prevents women andminoritiesfrombeingpromotedtomanagerial-andexecutive- levelpositionswithinanorganization.  International Human Resource Management (IHRM) as ‘concerned with the human resourceproblems of multinational firms in foreign subsidiaries (such as expatriate management) ormore broadly, with the unfolding HRM issues thatare associated with the various stages ofthe internationalisationprocess. KEYWORDS/ABBREVIATIONS  Green HR: Green Human Resources Management (GHRM) can be defined as the set ofpolicies, practices, and systems that stimulate a green behaviour of a company’s employeesin order to create an environmentally sensitive, resource efficient and socially responsibleworkplace andoverallorganization.  E-HRM: A way of implementing HR strategies, policies and practices in organizationsthrough a conscious and directed support of and/or with the full use of web- technology-basedchannels.  Goldenshake:Thegoldenhandshakeisanagreementbetweenanemployerandanemployee. It is a clause in the employment contract that offers the executive a handsomepackage in case the individual loses his job because of scheduled retirement, restructuring,orfiring.  Glass Ceiling: The glass ceiling is a metaphor referring to an artificial barrier that preventswomen and minorities from being promoted to managerial- and executive-level positionswithinanorganization.  IHRM: It is a set of activities targeting human resource management at the internationallevel.  Talent Management: The methodically organized, strategic process of getting the righttalent onboard and helping them grow to their optimal capabilities keeping organizationalobjectivesinmind. LEARNINGACTIVITY 1. WhatisGlassceiling?Elaboratewithrelevantexamples ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… 2. ElaborateformulationofHRpracticesinaninternationalcontextwithrelevantexamples. ……………………………………………………………………………………………........……… ……………………………………………………………………………………………................ 199 CUIDOLSELFLEARNINGMATERIAL(SLM)

UNITENDQUESTIONS(MCQANDDESCRIPTIVE) A. DescriptiveTypesQuestions 1. DefineGreenHR?Stateadvantagesanddisadvantages. 2. Explaintypesofe-HRM. 3. IdentifyanddiscusstypesofEmployeeEngagement. 4. Elaboratecriticismofthegoldenhandshake. 5. DifferentiatebetweenIHRM &HRM 6. Whatarethemainreasonsfor emergenceofIHRM?Justifywithexamples. 7. DiscusshowIHRMinfluenceHRpractices.IllustrateyouranswerselectingatleasttwoHRareas. B. MultipleChoiceQuestions 1. Whyareemployers interestedinemployeeengagement? a. Toencourageemployeestotrusttheirmanagers b. Tomakeaquickprofit c. Becauseengagedemployeesaremoremotivatedandpreparedtogiveoftheirbesttomakethe firmsucceeds d. Tomakeemployeesworkharder forless 2. Themostpertinentcriticismoftheempowerment conceptconcerns a. thebalancebetweencustomers'wishesandefficiency. b. thelimitedevidenceforanyshifttowardsasubstantially.moreempoweredworkforce. c. theover-empowermentofemployees d. thelimited theorising oftheconcept. 3. Howdoestheselectionofaninternationalassignee usuallytakeplace? a. Formalinterviewprocesswithinternalstaff. b. Informaldiscussionbasedonchanceconversationswithinternalstaff. c. Informaldiscussionbetweeneach memberofaspecificteam. d. Formalrecruitmentprocessthatincludes internalandexternalcandidates 4. HowcanHRMhelptobuildsuccessfulcross-borderalliances? a. Byensuringthat organisationsspend 25%oftheirbudgetsoncross-borderalliances b. Byensuringthatastrategyisinplacebeforeembarkingonacross-borderalliance c. Byensuringthatorganisationsexporttheirideastoothersocietiesandcultures d. Byensuringthatinternationaljointventuresarestaffedbyhigh-qualitymanagers 200 CUIDOLSELFLEARNINGMATERIAL(SLM)

5. TrendsinTalentManagementinclude: a. Anincreaseinpost-highschooltrainingand education inthefuture b. Managementand leadershipskillsareseenasmostvaluabletomodernandcompetitiveorganisations c. Teachingjobsareverydifficulttofill d. alloftheabove Answers: 1-c, 2-b, 3-b,4-d, 5-d. REFERENCES  Duari,Pravin.(2010). HumanResourceManagement. NewYork:PearsonEducation.  Dessler,G.(2013).HumanResourceManagement.Delhi:Prentice-Hall.  Flippo, Edwin B. (1966). Personnel/Human Resource Management. New Delhi: TataMcGraw Hills.  Haldar, U.K. AndSarkar.(2012).HumanResourceManagement. NewDelhi:Oxford&IBH.  https://www.yourarticlelibrary.com  https://shodhganga.inflibnet.ac.in/  http://www.adpstreamline.com/global-hr-human-resource-management  http://www.scribd.com/doc/10521466/Global-Human-Resource-Management-Chapter-18 201 CUIDOLSELFLEARNINGMATERIAL(SLM)