CU-MBA-SEM-III-Strategic HRM-Review Report Book-converted

be the inevitable result. The following are some suggestions for attracting a diverse workforce: Use a diverse interview panel to ensure that candidates are chosen solely on the basis of their work suitability. Managers need to know what questions they can and can't ask during an interview. Questions about an applicant's personal life are prohibited, such as which church they attend, their love life, and their political beliefs. Think beyond the box when it comes to recruiting. If a company wishes to hire more women in engineering, for example, they may contact professional organizations that cater to women in the field and ask that open positions be advertised in their newsletters or member communications. Policies and Practices Organizations that value diversity must also ensure that policies and procedures are in place to protect workers' rights while being consistent with government regulations. It is important for an organization to recognize the consequences of its policies and procedures on a diverse community of workers. To get a greater understanding of how workers feel about diversity policies, companies can provide a way for employees to provide input through surveys and suggestion boxes. Any feedback, positive or negative, is extremely important. Companies must be able to adjust and change practices that could be seen as impediments or counterproductive for employees. In addition to written policy, it is critical to ensure that an organization's non-official \"laws\" are fully communicated to all employees in order to effectively convey company values and culture to all employees. Documentation of Policies and Procedures Documenting diversity policies properly is an important way to communicate an organization's diversity policies. Documents outlining each policy should be included in the employee handbook until specific strategies are ready to be enforced. Any new recruit should go through the company's diversity policies, and any changes should be conveyed to current workers as well. The following parts in employee handbooks should discuss diversity: • The company's diversity agenda should be outlined in the code of conduct. • A non-discrimination policy informs workers of the importance of diversity. • Benefits and compensation policy • Termination and working conditions 251 CU IDOL SELF LEARNING MATERIAL (SLM)

ZERO-TOLERANCE POLICY Off-color jokes about race, gender, sexual orientation, or religion must be met with zero- tolerance compliance in a diverse workplace. In today's workplace, slurs, name-calling, and harassing workers for every excuse are unacceptable. Misconduct policies should be implemented, and workers should be informed that such actions would not be accepted. Organizations must also ensure that staff feel comfortable disclosing any incidents of improper activity by colleagues by creating a formal complaint policy that instructs employees on how to report wrongdoing to the appropriate authority within the business. SENSITIVITY TRAINING To maintain peace in a diverse workplace, workers must be mindful of how to coexist with a diverse range of individuals as well as cultural awareness. Sensitivity training can assist an organization in managing organizational diversity by assisting workers in becoming more self- aware, which is critical in helping employees realize their own cultural biases and prejudices. The following are some of the advantages of sensitivities training: Employees are encouraged to reflect on and change their attitudes toward people from various backgrounds. Employees may improve their ability to understand the perspectives of others. Shows workers what acts are considered offensive and why they are. Employees learn how to convey calmly that a coworker has insulted them and how to better settle the dispute. Explains how staff can apologies to a coworker if they have unintentionally offended them. Sensitivity training should be given to all workers, with additional training for managers making it even more effective. Some businesses also have sensitivity training through the internet. KEEP UP WITH DIVERSITY LAWS Managing diversity in the workplace necessitates keeping up with changing employer-related laws and trends, especially those pertaining to diversity. Internal policies, particularly those relating to discrimination and equal opportunity, should be reviewed on a regular basis to ensure that they are up to date and represent current laws and regulations. If a company has a global or multi-state footprint, it's important to keep track of regional changes in laws and regulations, which can differ from country to country and state to state. 13.4 SUMMARY • Organizations that value diversity must also ensure that policies and procedures are in 252 CU IDOL SELF LEARNING MATERIAL (SLM)

place to protect workers' rights while also adhering to federal regulations. • It is important for an organization to recognize the consequences of its policies and procedures on a diverse community of workers. • To get a greater understanding of how workers feel about diversity policies, companies can provide a way for employees to provide input through surveys and suggestion boxes. Any feedback, positive or negative, is extremely important. • Companies must be able to adjust and change practices that could be seen as impediments or counterproductive for employees. • In addition to written policy, it is important to ensure that an organization's non-official \"rules\" are thoroughly communicated to all employees in order to efficiently convey company values and culture to all employees. 13.5 KEYWORDS • Employee remuneration - Retaining good employees will save your company a lot of time and money in the end. • Performance management - Keep employees performing well with incentives for good performance. • Employee relations-A strong company culture is integral in attracting top talent. 13.6 LEARNING ACITIVITY 1. Visit the KPO service industry and collect the data on Retention Strategies ____________________________________________________________________________ ____________________________________________________________________________ 2 Visit the manufacturing industry and collect the data on Training and Development Strategies ____________________________________________________________________________ ____________________________________________________________________________ 13.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is the scope of strategic human resource management? 2. What should be the strategy of human resource management 3. Which of the following is closely associated with strategic HRM? 253 CU IDOL SELF LEARNING MATERIAL (SLM)

4. What is strategic approach to human resource management 5. How do you implement strategic human resource management? Long Questions 1. What is the importance of redeployment? 2. Discuss the objectives of management development. 3. What are the limitations of training? 4. What is meant by collective bargaining? 5. How trade unions originated? B. Multiple choice Question 1. Which of the following is not a recruitment technique? a. Interviews b. performance appraisal c. psychometric testing d. ability tests 2. Which statement best describes '360-degree feedback'? It is: a. a method used to appraise employees b. a system where managers give feedback to all their staff c. a system where feedback on any individual is derived from peers, subordinates’ supervisors and occasionally, customers d. a development tool 3. Which of the following would not form part of a flexible reward package? a. ability to 'buy and sell' leave days b. non-pay items such as child care vouchers c. cafeteria benefits d. performance-related pay 4. Which one of the following becomes a creative factor in production? 254 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Land b. Capital c. Consumers d. Human Resources 5. People cast in the role of contributors to production are called __ a. Capitalist b. Land owners c. Human Resources d. Consumers Answers 1. (b) 2. (e) 3. (d) 4. (d) 5. (e) 13.8 REFERENCES Text Books – • Armstrong, Michael & Baron Angela. (2005). Handbook of Strategic HRM (1st ed.). New Delhi: Jaico Publishing House. • Mello, Jeffrey A. (2007). Strategic Human Resource Management (2nd ed.). India: Thomson South Western. Reference Books – • Regis, Richard. (2008). Strategic Human Resource Management & Development (1st ed.). New Delhi: Excel Books. • Agarwal., T. (2007). Strategic Human Resource Management. New Delhi: Oxford University Press. • Dhar, Rajib Lochan. (2008). Strategic Human Resource Management (1st ed.). New Delhi: Excel Books. 255 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 14: STRATEGIC HRM CONCERNS Structure 14.0 Learning Objectives 14.1 Introduction 14.2 Strategic HRM and Organization development with changes 14.3 Summary 14.4 Keywords 14.5 Learning Activity 14.6 Unit End Questions 14.7 References 14.0 LEARNING OBJECTIVES After studying this unit, you will be able to: • Describe Strategic HRM • Describe the HR Issues in Global assignments • Describe the Global Environment of HR • Define Organization development with changes • Challenge of SHRM 14.1 INTRODUCTION It is critical for an organization's performance to address the five main HR challenges. Human resource management is vital to a company's long-term sustainability. Although this has always been true, HR's significance has grown even more in today's market climate of rapid change, high complexity, and uncertainty. At the same time, as two recent studies by Kienbaum Consultants and The Hackett Group demonstrate, HR challenges have shifted. The two studies draw different conclusions, making a comparison even more intriguing. Based on the studies by Kienbaum and Hackett, I have identified the following major strategic challenges for HR: 1. Increase the quality of leadership and management The Kienbaum study described this as a major problem. And I absolutely agree that this topic 256 CU IDOL SELF LEARNING MATERIAL (SLM)

should be given top priority. Without a highly qualified team of executives on board, no organization will be able to manage the volatile waters of today's market climate. In my opinion, the operational management efficiency in most developed-country organizations is already very high. The improvement of leadership quality, especially the further development of strategic leadership skills, is the field where I see the greatest need for continued development. It should come as no surprise that I consider strategic thinking and decision-making to be critical leadership skills that must be practiced on a regular basis. Executives in the HR department, by the way, are part of the need for improved leadership and management. 2. Manage the changing business needs for talent and skills Companies can only succeed in a fast-changing business environment if they have a workforce that is aligned with consumer demands and has the right attitudes and expertise to respond to changing business conditions quickly. The challenge for HR is to find the right talent in a fierce competition for the brightest minds, and to continue to build employees' skill sets and dedication in a way that advances both the person and the company's development. 3. Define a forward-looking workforce strategy HR, like every other department in a company, is at risk of getting bogged down in operational management and losing sight of longer-term strategic goals. That can be very risky, as demographic change and the importance of having a diverse workforce requires strategic planning and a vision for the workforce development that translates into coherent action. Interestingly, in the Kienbaum study, respondents from HR ranked diversity management very low, which in my view underlines the need for improving strategic thinking. Diversity is one of those factors that seems to be very soft and without effect on the bottom-line, but which can make a difference in corporate culture and productivity. In general, diversity of the workforce in regard to age, gender, and ethnic background – if managed strategically – can have a positive effect on creativity and productivity. 4. Foster innovation throughout the organization HR can have a big effect on how creative an organization is. More than half of the companies surveyed in the Hackett study said their company is powered by innovation. It is critical for them, in particular, to have a workforce capable of consistently delivering the creativity needed to remain competitive. HR can influence a company's innovativeness in a variety of ways, such as by hiring the right talent, cultivating innovative skills, and fostering an innovative corporate culture by setting the right incentives. 5. Use data analytics to improve HR-related decisions According to the Hackett study, data analytics is a significant field for HR to address, and I agree that it is a strategic challenge with enormous potential for any larger organization. 257 CU IDOL SELF LEARNING MATERIAL (SLM)

Surprisingly, respondents in the Kienbaum survey ranked the use of Big Data in HR very low on their priority list. This is understandable for two reasons: first, many people in HR are unaware of the potential advantages of using Big Data for strategic HR management; second, many of those who have looked into it have discovered a slew of problems with data and analytics in HR management. These concerns include data privacy concerns, the difficulty and expense of implementing a data-driven HR analytics system, and the need for HR staff who are trained in data analytics. However, if an organization is effective in implementing data analytics in HR, it would reap substantial benefits in terms of identifying and addressing emerging problems as well as enhancing HR strategies and organizational decisions. 14.2 STRATEGIC HRM AND ORGANIZATION DEVELOPMENT WITH CHANGES Overview The systematic method and implementation of information, methods, and resources to deal with change is known as change management. It entails developing and implementing organisational strategies, processes, practises, and technology to deal with changes in the market climate and external conditions. Effective change management entails overseeing the \"people side\" of major change within an enterprise, in addition to project management and technical activities performed to implement organisational improvements. Change management's main aim is to effectively introduce new systems, goods, and market strategies while minimising negative consequences. This article covers the following topics: managing major organisational changes that can have far-reaching effects on the company and its workforce: • The essence and scope of organisational transformation. • The business case for a comprehensive change management strategy. • During major change programmes, the positions of management and HR. • Steps to observe when coping with organisational transition. • How to deal with the most common issues that arise during organisational transition. Legal and global challenges must be considered in order to navigate change. This article also discusses some of the unique problems and difficulties that come with introducing significant organisational changes including mergers and acquisitions, downsizing, bankruptcy, company closure, outsourcing, and HR feature changes. Background 258 CU IDOL SELF LEARNING MATERIAL (SLM)

Organizations often need to incorporate enterprise-wide changes affecting their processes, goods, and people to keep up with a rapidly changing business environment. In today's business world, change is unavoidable. It can be intimidating, and people often avoid it. However, in order to promote an agile corporate culture, companies should take a comprehensive approach to major change management. Experts in organisational growth have devised strategies for effectively managing transition. Organizational leaders must be able to understand and adapt quickly to market trends and unforeseen challenges, but most are unable to do so. However, high-performing organisations are distinguished from low-performing organisations by agile leadership, which extends from CEOs to line-level managers. Companies that consistently outperform their rivals in terms of profitability, market share, sales growth, and customer satisfaction reported much more agility than those that did not. Look into it. Change isn't something you should only adapt to; it's something you should lead. Business Case This decade has seen a drastic increase in the pace of significant organisational reform. According to Gartner, the average company has experienced five enterprise changes in the last three years, with 73 percent of companies planning more reform measures in the coming years. 1 The importance of managing individuals through transition has increased in importance as change efforts have become more popular and widespread. Organizations at all levels may be affected by major changes. Many business leaders have come to the conclusion that failing to handle workers through transition can be expensive: Employees that are dissatisfied or disturbed by change are less effective in general. A serious employer should create a communication plan, a path map for reform sponsors, tailored training programmes, and a strategy for coping with opposition. See the SHRM Foundation Article on Change Management as a Primer. Human resources should be active in significant organisational changes from the outset and can benefit by affecting the following: Growing employees' knowledge of transition. Increasing the flow of information between management and employees. Detecting and managing dangers. Increasing employee happiness. Increasing the level of trust between management and employees. Using change-related training programmes to develop employee skills and proficiency. Take a look at how leaders can assist employees in accepting technological changes. The Roles of Management and HR 259 CU IDOL SELF LEARNING MATERIAL (SLM)

Business leaders who want to remain successful must partner with HR to obtain employee recognition and support for significant changes. Management's role To unify the company around a shared strategic direction, it is important to have the right leadership and buy-in from the executive team. Another important factor is to ensure that all managers have the tools they need to coach their direct reports toward engagement. Individual team members will use one-on-one discussions to evaluate how the transition will affect them, determine their level of engagement, and decide how they will react. The following are some of the question’s managers should ask their employees: • What is changing? • What is the reason for the change? • What effect would it have on your neighbourhood? • How would it directly affect you? Google's Changing the Change Rules page has more details. Unfortunately, many administrators are inept at dealing with transition. Change strategies can be difficult to execute due to a lack of change management skills among managers. According to the Towers Watson Change and Communication ROI Study, 87 percent of employers train managers on effective change management, but only a quarter of those employers believe the training is effective. 2 HR should include preparation tailored to the particular change initiative and the competencies required to lead effective change to improve managers' skills. See also Senior Leader Accountability: Key to Sustainable Transition and Leadership Critical to Organizational Change Efforts. HR's role HR may play a dual role in change management, implementing and guiding changes as well as acting as a facilitator for changes implemented by other leaders and departments. Look into it. What is HR's Role in Change Management? Employee Buy-In for Organizational Change Can Be Improved by HR. The HR department is responsible for a number of activities related to major change coordination, execution, and monitoring. HR practitioners typically assist workers by acting as a point of contact for inquiries and concerns, as well as outlining the implications for staffing. In addition, HR is frequently in charge of coordinating meetings and interactions related to the transition and related initiatives. Other typical HR roles and responsibilities include: communicating initial changes to employees. • Creating and implementing educational programmes. 260 • Putting together informational papers. • Before making a move, evaluate your readiness. • Examining the potential effects CU IDOL SELF LEARNING MATERIAL (SLM)

HR may also play a strategic role in change management by measuring the post- implementation return on investment, defining and monitoring key performance indicators (KPIs), and communicating the results. HR will assist the company in increasing buy-in, comfort, and enthusiasm for change across departments by championing change, thus increasing the effectiveness of change initiatives. See Handling Systemic Change through a Single Human Resources Department. Steps in the Change Management Process Significant organisational reform should be prepared and executed in a structured manner. A Harvard Business School professor named John Kotter developed a well-known and commonly used strategy for handling organisational change. The eight stages of this strategy are illustrated in Kotter's book Accelerate: 1. \"Instil a sense of urgency.\" Leaders that are successful in their transformation strategies typically start by looking at the market for improvements that could lead to new competitive realities for the business. Demographic shifts, social movements, emerging technologies, industry or competitor changes, and new government regulations may all trigger these changes. Leaders should communicate that a possible problem or significant opportunity is approaching, and they should promote open and honest dialogue within the organisation. To obtain the workforce's enthusiastic cooperation, you must build a sense of urgency that the status quo is no longer appropriate. 2. \"Create a guiding alliance,\" says number two. Leaders should form a collective with enough power to lead the transition until workers feel a sense of urgency. Members must have significant authority based on their role, experience, integrity, and leadership, as well as strong management skills and demonstrated leadership abilities. This alliance must learn to trust one another and work toward a common goal. Offsite gatherings, collaborative events, and conversation are used by many guiding coalitions to create trust. 3. \"Develop and execute a strategic vision and programmes.\" The leading coalition should build a clear vision for the future, encourage people to take action, and organise their efforts. According to Kotter, a successful vision is conceivable, desirable, feasible, oriented, versatile, and communicable. The process of developing an effective vision takes time and can be difficult, but the end result offers a consistent path for the future. 4. \"Join the volunteer army.\" Once the steering coalition has formed the vision, its members can consult thoroughly about how the transition can help the organisation and its employees. Simplicity, use of examples, various platforms, repetition, description of obvious contradictions, and two-way communication are all essential components of successful communication. The group should serve as a role model for the desired actions of employees. 261 CU IDOL SELF LEARNING MATERIAL (SLM)

5. \"Remove obstacles to action to enable action.\" Change leaders must recognise and eliminate barriers in order to motivate staff to embrace change and act on the vision. There are four types of significant obstacles: • Formal frameworks that restrict employees' freedom to act. • A shortage of required skills. • Personnel or information systems are the third item on the list. • Supervisors who oppose taking steps to introduce the new vision. 6. \"Create short-term victories.\" Change takes time to implement and sustain, which can be discouraging to workers at all levels of the company. Leaders should establish conditions that support early results and visible progress in order to sustain urgency. The key is to consistently seek out ways to score early wins, as well as to remember and thank those who helped you get there. Short-term wins that are successful have clear outcomes, are noticeable to a large number of people, and are clearly linked to the change initiative. \"Maintain the same rate of acceleration.\" Significant changes are susceptible to opposition and regression until they are ingrained in an organization's culture (which may take up to a decade). It's critical to build on early progress to tackle bigger problems, and to revise any programmes, processes, or policies that don't align with the change vision. Through recruiting, encouraging, and cultivating workers who can carry out the change vision, HR can consolidate gains. New project themes and change agents may also help to re-energize the change process. \"Institute transition,\" says number eight. The final step in Kotter's model for sustainable change is to link the changes to two main elements of corporate culture: community norms and common values. Another model for organizational change includes a four-phase change management process: 1. Define—Align expectations regarding the scope of the change as well as timing and business impact. 2. Plan—Understand how the change will impact stakeholders and design a strategy to help them navigate it. 3. Implement—Engage with leaders and associates to execute the change. 4. Sustain—Work with leaders and employees to track adoption and drive lasting change. A large global retailer uses this model to increase the speed and impact of change initiatives while reducing the downturn of performance, thereby achieving desired outcomes quicker. Overcoming Common Obstacles Encountered in Implementing Change Even if an organisation has a strong vision for change and a technically and structurally sound basis for change, initiatives may still fail due to obstacles. During significant organisational 262 CU IDOL SELF LEARNING MATERIAL (SLM)

change, employee resistance and communication breakdown are common challenges. Look into it. How to Avoid Common Change Management Mistakes Employee resistance Individuals are at the heart of successful transition, and failure is often the result of human nature and aversion to change. Employees may also lack the basic behavioural characteristics necessary to respond rapidly to changing conditions, reducing employee morale and efficiency thus placing the company at risk. The way businesses handle their employees during a change programme determines the effectiveness of the change—and the business as a whole. Indifference, rejection, uncertainty, neutrality, experimentation, and dedication are the six states of change readiness. Organizations about to embark on a transition should assess workforce readiness using assessment instruments and leader self-evaluations to determine which areas need the most attention. Leaders should have a good plan in place to cope with opposition to change. The following are some examples of steps that can be taken to help workers plan for change: Developing and disseminating good senior sponsorship for work that focuses on people. Leaders should form partnerships, meet business needs, and foster wins in the absence of visible sponsorship. Creating resources and information for supervisors and administrators on the front lines. Organizations can include them early in the process, training them, preparing them, and communicating with them on a regular basis. Employee coaching to help them adapt and succeed through times of transition. Using both tangible and intangible incentives to encourage desirable actions and results. Using information from both field experts and subject-matter experts. Is Change Putting Your Employees Under Stress? Wanted: Staff Who Can Adapt to Change, according to a Millennial. Communication breakdown Significant organisational changes are often made at the highest level of management and then filter down to workers. As a consequence, it may be unclear why and how the business is changing. According to a survey conducted by Robert Half Management Resources, inadequate communication is the most common hindrance to organisational change management efforts, with 65 percent of managers stating that consistent and regular communication is the most critical aspect of guiding through change. To prevent this problem, HR should be involved early in the change preparation phase to assist in inspiring workers to participate. Good communication increases consciousness and appreciation of the reasons for the changes. Change-related information should be communicated to staff in a variety of ways (e.g., e-mails, meetings, training sessions, and news releases) and from a variety of outlets (e.g., executive management, HR and other departments). Check out why United Airlines' lottery-based bonus scheme crashed. 263 CU IDOL SELF LEARNING MATERIAL (SLM)

Change leaders and HR practitioners should be aware of five different change communication methodologies, ranging from those that provide the most knowledge to those that provide the least: • \"Spray and pray,\" says the narrator. Managers bombard workers with data in the hopes that they will be able to separate the important from the irrelevant. More knowledge, according to the theory, equals better communication and decision- making. • \"Tell and sell,\" says the narrator. Managers deliver a more limited range of texts, beginning with the most important topics and then persuading staff of the wisdom of their strategy. Employees are passive receivers that do not need feedback. • \"Understand and investigate.\" Managers create a few key messages that are directly related to organisational performance, and workers investigate the consequences in a systematic manner. Managers keep an ear out for possible misunderstandings and roadblocks. This is the most powerful approach in most situations. • \"Recognize and react.\" Executives are responsible for identifying and responding to key employee complaints. Employees set the agenda, while executives react to rumours and innuendoes, according to this technique. • \"Withhold and uphold,\" says the narrator. When faced with rumours, executives withhold details until it is absolutely necessary. Control and secrecy are implied. Employees are assumed not to be intelligent enough to understand the larger picture. Efficient communication techniques, according to experts, will double employees' acceptance of change. However, many businesses concentrate exclusively on strategies such as platforms, messages, and pacing, neglecting to do a contextual study and understand the target audience. The following are some of the common communication pitfalls and potential solutions: The incorrect messengers are being used. Employees appear to trust knowledge from supervisors, according to reports. Understanding the culture of the business will decide who is the right change messenger: the manager, the senior executive team, or HR. The transition is just too abrupt. Before implementing a shift, leaders and administrators must prepare workers for it, give them time to process the message, and provide them the opportunity to provide input. Connection isn't in line with the realities of industry. The reasons for the move, as well as the expected outcomes, should be included in the messages. The communication gap is too big. Employees will not respond well to communication that focuses too much on details and technicalities and does not connect change to the organization's goals. During times of transition, executives and HR practitioners must be outstanding communicators. They should send a straightforward, universal, and consistent message to 264 CU IDOL SELF LEARNING MATERIAL (SLM)

everyone in the business at the same time, even if it's through different sites and locations. Managers can then meet with their entire teams as well as one-on-one with each individual team member. Take a look at Say What?! At the top, we're honing our communication skills. Leaders should articulate why the change is necessary, be honest about the advantages and obstacles, listen to and respond to employees' reactions and consequences, and then ask for and seek to obtain individual commitment. See also Controlling Organizational Communication and Keep it Clear: Three Ways to Help Communicate Change in Your Organization. Other obstacles Employee reluctance and communication breakdowns aren't the only roadblocks to effective reform initiatives. Other common roadblocks include: insufficient time devoted to change preparation. During the transition, there was a lot of employee turnover. Excessive costs of transformation. A timetable for transition adoption that is impractical. Employee participation in voluntary training is insufficient. Errors in software and hardware. The business or the economy is undergoing a slowdown. Take a look at how leaders can assist employees in accepting technological changes. According to change management experts, the following are typical features of ineffective change initiatives: Being excessively top-down. Executives communicate their vision for the change initiative's end result, but they do not have guidance or communication about how managers can implement the change. Being too \"grandiose.\" The organization's leaders have a vision for improvement, but they have no idea how it will impact the people who work there. Being too regimented. Managers follow the project plan from start to finish, making only minor changes as required. Being too closed off. Most companies do not seek outside support with change initiatives, however significant changes may necessitate objective external input or assistance. Change management must be well-planned, well-timed, and well-integrated to be effective. An organised, strategic strategy that involves coordination, a path map for change sponsors, training programmes that go along with the overall initiative, and a plan for coping with opposition are all important success factors. Not only at the start, but even during the process, reform leaders must be involved and visible in sponsoring the change. Turning their focus to something else will send the wrong message to workers, implying that their bosses are no longer involved. See Dan Heath: Find the 'Bright Spots' to Generate Change and Executive Briefing: How to Fight Change Fatigue. Managing Varied Types of Major Organizational Change 265 CU IDOL SELF LEARNING MATERIAL (SLM)

Organizational change can take several different forms. It could concentrate on designing new processes and procedures, incorporating new technology, or introducing, withdrawing, or rebranding products and services. Other changes result from the selection of a new leader or significant personnel changes. Downsizing or layoffs, bankruptcy, mergers and acquisitions, or the closure of a company enterprise are all examples of changes that impact business divisions or the whole organisation. Some changes are made within the HR department. Change leaders and HR experts should be mindful of factors specific to the form of change being made in addition to the general structure for implementing change. Some of the unique issues and HR challenges are highlighted in the subsections below. Mergers and acquisitions The joining of two or more entities under one shared ownership and management system is known as a merger. An acquisition is the process of one company purchasing ownership of another through a merger, stock swap, or other means. Almost two-thirds of all mergers and acquisitions (M&As) fail to meet the expected strategic and financial goals. Incompatible cultures, management styles, low motivation, loss of key talent, lack of communication, decreased confidence, and confusion about long-term goals are all factors that lead to this high failure rate. Attempting to preserve an internal status quo or effect change—either to promote or thwart (in the case of a hostile takeover) a potential merger or acquisition, as directed by upper management. Holding workers updated at all points of the M&A process while ensuring acceptable levels of accountability and confidentiality. Developing strategies for combining the two organisations in the most effective, efficient, and humane manner possible for the various stakeholders. Dealing with the fact that mergers and acquisitions almost always result in the layoff of workers who are no longer needed. The merging organisations must coordinate separation and severance pay issues during this process. Addressing ethical dilemmas, such as when an HR professional is asked to delete his or her own role, as well as the position of a co-worker or HR counterpart in the combined organisation. Downsizing One of the more challenging change initiatives an HR professional can face is implementing a layoff or reduction in force (RIF). The following are some of the activities that HR practitioners would need to complete: Comprehensive preparation. Each phase in the process necessitates meticulous preparation, consideration of alternatives, selection of layoff candidates, communication of the layoff decision, handling of layoff paperwork, and post- layoff considerations. 266 CU IDOL SELF LEARNING MATERIAL (SLM)

Putting diversity ideas into practise. To determine layoff conditions and make layoff decisions, HR should assemble a diverse team. Taking care of the needs of those who have been laid off. Severance policies, outplacement compensation, unemployment eligibility, and comparison policies are all checked in this phase. Taking care of the emotional fallout. HR professionals should be aware of and prepared for the emotional effect of layoffs on downsized workers and their families, layoff decision-makers, all HR professionals concerned, and remaining employees and managers working with the post-layoff workforce. In certain cases, an HR professional might be responsible for initiating his or her own layoff, which necessitates the highest level of professionalism. Managing the staff following a layoff. See also Managing Downsizing by Layoffs and Using Organizational Transformation to Improve Team Performance. Bankruptcy Filing for corporate bankruptcy and successfully completing the process is a complicated and frustrating process for all parties involved. HR could be forced to lay off workers, cut benefits, change work rules, or do a combination of these things. Keeping key employees is a significant strategic concern during a Chapter 11 bankruptcy. Compassion, regular contact, and quick decision-making can also help to alleviate the tension that workers are likely to feel as a result of this challenging organisational transition. Even when tough decisions regarding pay, benefits, and job cuts are made, showing true respect for people and treating them with integrity, dignity, and fairness will decide whether a company succeeds or fails post-bankruptcy. See Managing Human Resources for a Bankruptcy-Affected Business. Closing a business operation For a variety of causes, including economic recession, market downturn, bankruptcy, disposal, realignment of operations, downsizing, reorganisation, outsourcing, or contract loss, businesses make the difficult decision to close all or part of their operations. HR experts will play a critical role in such company closures, from the initial planning phases to the final stages of closure. The following are some of HR's main responsibilities during this form of organisational change: • Following all relevant facility closure notification rules. HR must decide when and to what extent the company must comply with federal or state notification requirements for mass layoffs and facility closures. HR will also be in charge of the announcement 267 CU IDOL SELF LEARNING MATERIAL (SLM)

process and will be involved in all facets of employee correspondence, such as all- employee meetings, written announcements, and media interviews. • announcing the news of the closure HR plays a critical role in predicting and reacting to worker reactions by getting as much knowledge and tools as possible on hand. HR should consider using an employee assistance service or an outplacement agency to stop hostilities or other disruptive activity. • Providing details on employee compensation. After the initial shock of the announcement wears off, the most common concerns include benefits, such as unemployment compensation, health care continuation, pension plan problems, and retirement plan distributions and rollovers. • Outplacement programmes coordination. By providing outplacement services to departing workers, business owners and managers can be able to provide much- needed assistance while still safeguarding the company's credibility. If it is financially feasible, the company can provide outplacement services to departing workers through a private outplacement consulting firm or, in some states, a state agency. • Negotiating with labour unions Employers in unionised facilities have a legal obligation to argue over the consequences of a company closing decision. Assistance benefits, seniority issues, pension plan issues, and job opportunities at facilities not affected by the closure are all common topics of conversation. • calculating the cost of the closure Predicting the costs of a business closure is crucial from the outset of the process, and HR will bear the brunt of the burden. Employee compensation, assistance benefits, payroll and administrative expenses, severance payments, union requests, pending employee lawsuits or charges, security procedures, and any closing notice penalties are also part of this process. • Getting rid of company land. HR should be aware of the company's property disposal policies and be able to respond to requests for office furniture, supplies, machinery, and other tangible business properties from employees. HR can assist in determining if products should be given to workers, community organisations, colleges, or other potential recipients if the company does not sell or move assets or is not in debt to creditors. • Observance of legal standards. The closure of a company raises a slew of legal questions. Legal enforcement can necessitate meeting closing-notification provisions, sending out COBRA notices and termination letters, issuing final pay checks, making the necessary severance payments, and communicating unemployment compensation, depending on the number of workers and the employer's obligations to employee benefits programmes. HR must understand how to comply with the law to minimise the possibility of litigation. Outsourcing 268 CU IDOL SELF LEARNING MATERIAL (SLM)

A company can decide to outsource HR or other business functions for a variety of reasons, including cost savings and enabling employees to concentrate on more strategic initiatives. Outsourcing is an arrangement between a contractor and a third-party supplier in which the employer gives the external provider management and responsibility for some organisational functions. Employers can choose from a variety of outsourcing options, ranging from outsourcing one component of a single role to outsourcing an entire functional department. Employees may be affected in the same way as they would be if a department was downsized or closed. When determining whether to outsource, a company should think about its needs in a specific functional environment, existing procedures, business strategy, and outsourcing choices, such as: Does the situation warrant outsourcing? Is the department's current personnel and procedures delivering excellent service? Is it meeting the needs of the organisation? Is it possible for the affected department to manage outsourcing without causing a disruption in operations? Will the CEO and top management team back an outside vendor and pay for it? What are some examples of how an outsourcing agreement could fall short of expectations? How can such dangers be reduced? HR professionals may be asked to find strategies to direct organisations through vendor selection and outsourcing relationship management as part of the HR outsourcing method. See HR Outsourcing for more detail. Changes within HR HR professionals often assist other areas of the company in adjusting to change, but what happens when HR becomes the change's epicentre? Changing to a shared services model, merging with another HR feature following a merger, or providing new services to new clients are all examples of transitions that HR professionals may find more difficult to handle than other forms of organisational changes. HR should do the following during significant changes in the HR function: Set a good example. Follow HR's guidance for other leaders and administrators during major change initiatives. Keep in mind that the duties of HR practitioners never end. Although dealing with the discomfort, frustration, and demands that department-specific change brings, the HR department must continue to serve employees. 269 CU IDOL SELF LEARNING MATERIAL (SLM)

It's important to remember that few organisational changes happen in isolation. If senior leaders plan to adopt a shared services model for HR, for example, the information technology, finance, and procurement functions may follow suit, or productivity programmes may be launched. Until agreeing to a transition, determine how ready the HR team is to change. Interviews and surveys can be used by HR leaders to measure employee readiness and commitment. They should make appropriate changes in staff readiness and engagement levels after reviewing the findings. Recognize that the majority of HR transitions necessitate new or refreshed talent. HR managers have the option of firing and recruiting, as well as retraining and growth. Legal Issues HR practitioners should keep leadership aware of any relevant employment laws and the possible legal consequences of different forms of transition, in addition to handling the \"people side\" of organisational change initiatives. In most cases, HR will be in charge of ensuring compliance with relevant federal, state, local, and foreign employment laws and regulations, in consultation with legal counsel. The essence of the reform initiative, the location(s) and size of the company, whether the employer is unionised, and other factors may all influence legal enforcement requirements. Title VII of the Civil Rights Act of 1964 is one federal statute that can refer to unique organisational reform initiatives. The Age Discrimination in Employment Act (ADEA) prohibits employers from discriminating against employees based on their age (ADEA). The Americans with Disabilities Act (ADA) is a federal statute that supports people with disabilities (ADA). The National Labour Relations Act (NLRA) is a federal law that governs labour relations (NLRA). The WARN Act (Worker Adjustment and Retraining Notification Act) was passed in 1988. ERISA (Employee Retirement Income Security Act) is a federal law that (ERISA). In 1996, Congress passed the Health Insurance Portability and Accountability Act (HIPAA). The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that makes it easier to balance the budget (COBRA). See the Federal Laws, Rules, and Guidelines for more detail. HR experts can also be in charge of contract negotiations with unions, service suppliers, or vendors. They must be familiar with key contract terms and concerns in order to properly represent the organization's interests in contract negotiations and management in such situations. See How to Have a Good Business Negotiation. Global Issues Significant organisational changes may result in a long-term dispute between two locations within the same country. Where there are variations in language, time zones, organisations, and 270 CU IDOL SELF LEARNING MATERIAL (SLM)

business practises, however, conflict is more likely to arise and is more difficult to overcome. Companies will continue to grow larger and more global, according to research conducted by the Economist Intelligence Unit, with operations in more countries than they do now. 4 During a cross-cultural change effort, culturally rooted stereotypes regarding consumer expectations, infrastructure, competitive threats, and other factors make it more difficult to find common ground. What makes an organization's goods or services stand out in one country may not be the same in another, and its strengths in one market may not be easily replicated in another. The following are some of the most common issues encountered in cross-cultural change initiatives: Lack of a collaborative approach. When planning change efforts, it's normal for a company to think about its home market and its biggest customers. Such voices, on the other hand, can easily drown out the needs of workers or customers in far-flung industries, even those with high growth potential. A company can create a change approach that combines the trends of past achievements with future directions by working with both employees and clients from the start and considering future opportunities for sales, benefit, and development. Market similarities and variations are misunderstood. Multinational corporations can project solutions designed for one country onto another, or presume that customers from other countries want to act \"more like us.\" To make matters more complicated, foreign products can appeal to a large number of people in some countries, but only for reasons that make sense in the context of that market. Companies may assume the same competitive environment, but the biggest challenges may come from companies that are unknown back at headquarters. There is insufficient transparency. When workers lack a sense of responsibility for a new programme, maintaining transparency at the local level is challenging. The standard matrix organisational structure of many global corporations can worsen this situation. Employees who report to both a global business unit and a local management system often pay careful attention to the managers they work with on a regular basis because they are the ones who will have the greatest effect on their futures. 14.3 SUMMARY • Organizational change can take many different forms. It could concentrate on designing new processes and procedures, incorporating new technology, or introducing, withdrawing, or rebranding products and services. Other changes result from the selection of a new leader or significant personnel changes. Downsizing or layoffs, bankruptcy, mergers and acquisitions, or the closure of a company enterprise are all examples of changes that impact business divisions or the whole organisation. Some changes are made within the HR department. 271 CU IDOL SELF LEARNING MATERIAL (SLM)

• Change leaders and HR experts should be mindful of factors specific to the form of change being made in addition to the general structure for implementing change. • Some of the unique problems and HR challenges are highlighted in the subsections below. 14.4 KEYWORDS • HRM – Human Resource Management • SHRM – Strategic Human Resource Management • Employee remuneration - Retaining good employees will save your company a lot of time and money in the end. • Performance management - Keep employees performing well with incentives for good performance. • Employee relations-A strong company culture is integral in attracting top talent. 14.5 LEARNING ACITIVITY 1. Visit the BPO service industry and collect the data on Corporate Strategy ____________________________________________________________________________ ____________________________________________________________________________ 2. Visit the manufacturing industry and collect the data on Incentive structures ____________________________________________________________________________ ____________________________________________________________________________ 14.6 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is Corporate Strategy in HRM 2. Why is Strategic human resource management important? 3. What are the challenges of Strategic Human Resource Management? 4. What should be the strategy of HRM 5. How do you implement strategic human resource management? Long Questions 1. Discuss about conciliation. 272 CU IDOL SELF LEARNING MATERIAL (SLM)

2. What are the measures for improving industrial relations? 3. What is meant by incentives? 4. What is the importance of HRM in recent time? 5. What is the main difference between wages and salary? B. Multiple Choice Question 1. The \"balanced scorecard\" supplies top managers with a ___________view of the business. a. long-term financial b. detailed and complex c. simple and routine d. fast but comprehensive 2. HR techniques are typically associated with the following in strategic human resource management: a. business strategy b. marketing strategies c. finance strategy d. economic strategy 3. One of the above is a key component of strategic human resource management? a. Efficient utilization of human resources b. Attracting the best human resources c. Providing the best possible training d. All of these 4. The strategy is based on treating workers as valuable human capital. 273 a. hard HRM b. soft HRM c. medium HRM d. None of these CU IDOL SELF LEARNING MATERIAL (SLM)

5. Strategic human resource management helps to gain a competitive edge in the industry by using human resources strategically. a. Price b. Product c. People d. Process Answers 1. (d) 2, (a) 3. (d) 4. (b) 5. (e) 14.7 REFERENCES Text Books – • Armstrong, Michael & Baron Angela. (2005). Handbook of Strategic HRM (1st ed.). New Delhi: Jaico Publishing House. • Mello, Jeffrey A. (2007). Strategic Human Resource Management (2nd ed.). India: Thomson South Western. Reference Books – • Regis, Richard. (2008). Strategic Human Resource Management & Development (1st ed.). New Delhi: Excel Books. • Agarwal., T. (2007). Strategic Human Resource Management. New Delhi: Oxford University Press. • Dhar, Rajib Lochan. (2008). Strategic Human Resource Management (1st ed.). New Delhi: Excel Books. 274 CU IDOL SELF LEARNING MATERIAL (SLM)