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

UNIT - 4: MODELS OF STRATEGIC HRM Structure 4.0 Learning Objectives 4.1 Introduction 4.2 Strategic HR Planning Acquisition and Development. 4.3 Case Study: Infosys(A): Strategic Human Resource Management 4.4 Summary 4.5 Keywords 4.6 Learning Activity 4.7 Unit End Questions 4.8 References 4.0 LEARNING OBJECTIVES After studying this unit, you will be able to: • Describe elements of HRM • Identify scope of HR Strategies • Evaluating scope of strategic HRM Function • Challenges of strategic human resource management 4.1 INTRODUCTION There is no one-size-fits-all method for creating a Human Resources Strategy. The method will differ from one company to the next. Even so, the model outlined below shows an outstanding approach to an HR Strategic Management System. This framework distinguishes six distinct phases in the creation of an HR strategy: - 1. Defining a strategic course 2. Human Resource Management System Design 3. Organizing the whole workforce 4. Obtaining the required human capital 5. Investing in the growth and success of human resources 6. Continually evaluating and improving organisational competence and efficiency 51 CU IDOL SELF LEARNING MATERIAL (SLM)

Three preparation phases and three implementation steps make up the six large interconnected components of this framework. The need for preparation is represented by the top three components. Organizations must decide on their strategic priorities and expected outcomes. The majority of the time, this is done by some kind of strategic planning. Traditional strategic planning is a top-down, formal, and staff-driven operation. If done correctly, it can be implemented at a time when external change is more gradual. The approach to strategic planning, on the other hand, changes drastically as the speed and scale of change increases: • For starters, the planning process is more flexible; adjustments to plans are made much more often and are often triggered by incidents rather than following a set timetable. • The second advantage is that the preparation process is more constructive. Successful organisations no longer react to changes in their environment; instead, they form it in order to optimise their own productivity. • Third, the planning process is no longer solely top-down; feedback comes from a wide range of organisational levels and segments. This increases employee control of the strategy and takes advantage of the fact that workers at the bottom of the organisational hierarchy can often have the most important business intelligence. • Finally, line leadership is guiding the strategic planning process rather than responding to it. Once strategic planning is underway, the company must devise and align its HRM policies and procedures in order to achieve organisational success. The final step in the planning process is to assess the quality and quantity of human resources required for the organization's total workforce. These strategies, policies, and activities serve as the foundation for the rest of the HR strategic framework, which is led by them. These execution components include frameworks for generating the appropriate skill sets, investing in personnel growth and efficiency, and employing them productively within the company. The final aspect offers a way to evaluate and maintain the organization's and its people's competence and success in terms of the results that the organisation seeks. 4.2 STRATEGIC HR PLANNING ACQUISITION AND DEVELOPMENT Understanding how a strategic HR planning process operates is critical to improving the strategic alignment of staff and other resources. Strategic human resource planning, at the 52 CU IDOL SELF LEARNING MATERIAL (SLM)

simplest level, ensures appropriate staffing to achieve the organization's organisational objectives by matching the right people with the right skills at the right time. In order to stay agile, it's important to ask where the company is now and where it's going. The strategy for each organisation can vary slightly depending on its current and future needs, but there is a clear framework you can follow to ensure you're on the right track. The strategic human resource planning phase starts with an evaluation of current staffing, and if it meets the organization's needs, and then moves on to predicting potential staffing requirements based on business objectives. Then, based on market changes, you'll need to match the organization's strategy with workforce planning and put the plan in place not just to recruit new workers but also to maintain and better train those new hires—as well as your current employees. Continue reading to learn more about each phase of the process in depth and to obtain a thorough understanding of the strategic human resource management planning process. Figure 4.1: HR Capacity 1. Assess current HR capacity Assessing the existing employees is the first step in the human resource planning process. It's critical to consider the talent you already have before making any decisions about hiring new employees for your company. Create a list of skills for each of the current employees. You may do this in a variety of ways, including asking workers to self- evaluate using a questionnaire, evaluating recent performance evaluations, or combining the two. To visualise the data, use the template below. 53 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Forecast HR requirements It's time to start predicting future needs after you've completed a full inventory of the tools you already have. Would the company's human resources need expansion? Would you need to keep your current employees but increase their productivity by improving their performance or providing new skill training? Is there a pool of future workers in the market? Demand forecasting Demand forecasting is a comprehensive method for evaluating potential human resource needs in terms of quantity—the number of workers required—and quality—the amount of expertise needed to fulfil the company's current and future needs. Supply forecasting The existing resources available to meet demand are calculated by supply forecasting. You'll know which workers in your company are available to satisfy your current demand based on your previous skills inventory. You can also look beyond the company for new candidates that can fill any holes created by current employees. Figure 4.2: Skills Supply and Demand Chart Matching demand and supply The tricky part of the recruiting phase—and where the rest of the human resources management preparation process comes into play—is matching demand and supply. You'll devise a strategy for matching your company's demand for qualified employees with market availability. This can be accomplished by teaching existing workers, recruiting new employees, or a combination of the two. 3. Develop talent strategies 54 CU IDOL SELF LEARNING MATERIAL (SLM)

It's time to start cultivating and adding talent after evaluating your company's staffing needs by analysing your existing HR capability and predicting supply and demand. Talent growth is an integral component of strategic human resource management. Figure 4.3: Overview of the Talent Development Process Recruitment During the recruiting stage of the talent acquisition process, you start looking for candidates who have the expertise the organisation requires. This step can include posting job openings on job boards, checking social media sites like LinkedIn for suitable applicants, and asking current workers to recommend people they know who would be a good match. Selection Once you've found a pool of eligible candidates, perform interviews and ability assessments to decide who is the best match for your business. You should have no trouble recruiting the right candidates for the right positions if you've correctly forecasted supply and demand. Hiring Decide the final candidates for the open positions and extend offers. Training and development Bring the new hires on board after you've hired them. Organize training to get them up to speed on the policies and procedures of your company. Encourage them to keep honing their skills to 55 CU IDOL SELF LEARNING MATERIAL (SLM)

meet the changing needs of your business. Get more ideas for your own employee onboarding process by going at this onboarding timeline guide. Figure 4.4: Timeline for Onboarding Employee remuneration and benefits administration Maintain employee satisfaction by providing fair compensation and benefit packages, as well as appropriately rewarding workers who go above and beyond. In the long term, keeping good workers would save the business a lot of time and money. Performance management All workers should have their output evaluated on a regular basis. Determine your accomplishments and areas for change. Employees would work better if they are compensated for their efforts. Employee relations Attracting top talent needs a good company culture. Beyond that, make sure the company is committed to providing a healthy working atmosphere for all employees, with an emphasis on employee wellness, safety, and job satisfaction. 4. Review and evaluate After a period of time has passed, you can assess if the human resource management process strategy has aided the organisation in achieving its objectives in areas such as efficiency, benefit, employee retention, and employee satisfaction. Stick with the plan if all is going well, but if there are any problems, you can always turn it around to best meet the company's needs. Why document your strategic HR plan 56 CU IDOL SELF LEARNING MATERIAL (SLM)

Now that you've mastered the steps to proactive human resource planning, it's time to apply them to your own business and find out how to put them into effect. There are many reasons to document your strategic human resource plan, particularly in a visual format such as a flowchart. You standardise the method by recording it, which allows for repeat performance. Documentation also allows for better assessment, allowing you to see which aspects of the strategy need improvement. Furthermore, having a well-documented plan helps you to better convey the plan within the company, and how everybody, from the top down, can help ensure that it is implemented. From start to finish, document every step of the process and look for ways to enhance the human resources process along the way. 4.3 CASE STUDY- INFOSYS(A)-STRATEGIC HUMAN RESOURCES MANAGEMENT Introduction After a decade of rapid expansion, including a jump from 250 to 15,000 workers and a revenue increase from $5 million to $754 million, as well as being ranked No. 1 in the Business Today Best Employer survey, Infosys Group received a rude shock in 2003 when it was dropped entirely from the Best Employer List. As a result of this tragedy, the company's leadership met in November 2003 to set a new and ambitious goal for the company: to position Infosys Group in the Top Ten lists of both Best Performing Companies and Best Employers by 2007. Although leadership set this apparently attainable target, the HR team knew it would be a difficult challenge, as no large company had ever achieved this distinction due to the need to monitor costs for financial success and the spending needed for employee satisfaction. The fact that Infosys was excluded entirely from the Best Employers list created a massive outcry in the industry, and the situation was dubbed the \"downfall\" of the Indian software industry's poster child. As Infosys grew, the HR team realised it needed to prevent crises like this from happening again, but they didn't have a blueprint or a direction to pursue. Background- In 1981, Narayana Murthy and six others left their jobs at a start-up software firm in India and founded Infosys with just $250 borrowed from their spouses, after working in the public sector and at a start-up software firm. Murthy and his six co-workers shared a vision of building wealth in a legal and ethical manner from the outset. Nandan Nilekani, the company's youngest cofounder and current CEO, claimed that they wanted to create a company that was \"professionally owned and run, with good corporate governance, good employee management, and good ethics.\" In the 1980s, India's bureaucratic and tightly regulated governmental structure made it extremely difficult for Infosys to get off the ground; obtaining government approval to import a computer took 12 months and 15 trips to Delhi, and obtaining a phone line took one year. The Reserve Bank of India was in charge of issuing foreign currency for international travel, and all 57 CU IDOL SELF LEARNING MATERIAL (SLM)

of these restrictions meant that doing business took longer. By 1986, Infosys had just one client, and by 1989, when the US government imposed a limit on the number of B1 visas it could issue each year, the company was unable to visit its customers in the United States, and it was on the verge of being dissolved. After one of the cofounders left to pursue other opportunities in the United States, the remaining cofounders considered dissolving or selling the business, but when Murthy decided to buy out their shares to keep the company running, the majority of the cofounders agreed to stay with him. Employee frustration remained high despite the HR team at Infosys attempting to make the workplace more enjoyable and meaningful through a number of initiatives and events. With each passing year, the employee hierarchy's diversity and inequality became more apparent, and middle and senior managers became more disconnected from the ever-changing realities of lower-level employees. Managers were more likely to understand the frustrations of lower-level employees who were doing less interesting work, and they found it challenging to take a hands-on approach to management as their roles grew. As their responsibilities increased, they also struggled to delegate effectively. Despite the fact that the business was rising and expanding, there was a high rate of turnover, which resulted in high job costs as a result of the need to scale up recruiting efforts. Problem Analysis The Problem In 1999, Infosys decided to adopt a series of changes in order to improve efficiency, cost- competitiveness, and results, including developing a portfolio of core companies and services and reorienting the way people were assessed, compensated, promoted, and rewarded. After changes such as the introduction of a variable pay structure across the entire organisation, flattening the organisation by removing eight of its fifteen layers, and a promotion strategy focused on the needs of the organisation rather than purely on the individual's success and seniority, Infosys remained high on the Best Employer lists in 2001 and 2002. Infosys, on the other hand, fell entirely off the lists in 2003, shocking everyone else in the industry since Infosys has always been recognised for its creative HR practises. After examining the situation, Infosys management realised that the changes made since 2001 had the unintended effect of de-emphasizing Infosys' traditional culture, which was that of a small company with a collegial environment where processes and policies were flexible and customised to individual needs. Due to difficulties in controlling expectations and coordination within the large organisation, workers were sceptical of the impact of the changes, as well as the rationale behind the changes, which seemed to benefit the company at the expense of the employees (Delong & Rengaswamy, 2005). Possible Solutions Although Infosys has a recognition for outstanding HR practises and employee morale, employee perceptions toward the workplace have fluctuated over time. Much of this could be 58 CU IDOL SELF LEARNING MATERIAL (SLM)

attributed to the growing pains that come with a company's rapid growth, such as Infosys'. When a company doubles in size every year and is constantly evolving, it's difficult to maintain contact with employees, which I believe is one of the major causes of employee dissatisfaction at Infosys. Communication is a simple and inexpensive way for a company's employees to feel valued and appreciated, as well as to understand where they fit into the organisation and what their role means to the company as a whole. Over the course of Infosys' history, one of the most common complaints has been that employees believe they are losing their ability to do meaningful work and are unsure how they fit into the company's changing policies and practises. Another choice is to try to restore the company's original small and collegial feel, as this continues to be one of the most common issues among employees over time. Although it never hurts, increasing employee satisfaction does not always necessitate a large financial outlay. The real solution that Infosys needs, in my view, is to improve the work environment so that employees feel respected and that they are doing important work. Recommended Solution Strategic human resource management aims to align human resources so that the organisation meets the needs of its workers and the employees meet the company's needs (Wise Geek). If this isn't balanced, it could harm either the employees or the company, or both. For improving employee satisfaction at Infosys, I suggest focusing on improving communication within the organisation. Employees can gain a better understanding of their roles within the organisation, the value they add to the company as a whole through their work, and how management decisions impact them if communication is improved and managers work more closely with their employees, I believe. I also believe that if managers work more closely with lower-level employees, they would be able to gain a better understanding of their concerns and complaints, enabling them to take steps to address any problems that might arise. Companies who work hard to meet their employees' needs can foster a healthy work environment. The best way to do this is by strategic human resource management, by being able to anticipate employee needs and plan ahead would help to increase the number of skilled staff who choose to remain in an organisation, increasing employee loyalty and lowering the cost of recruiting and retaining new employees (Wise Geek). The most important thing for employees at Infosys is to feel like they are doing meaningful work and to understand where they fit into the ever-growing business and how changes impact them, which neither money nor material benefits can provide. 4.4 SUMMARY • As a result of these HRM outcomes, internal efficiency improves. Productivity, creativity, and efficiency are only a few examples. These results result in financial success (e.g., profits, financial turnover, better margins, and ROI). • The unmediated HRM effect, which shows that certain HR activities can directly 59 CU IDOL SELF LEARNING MATERIAL (SLM)

contribute to improved internal efficiency, is one of two important relationships. A successful training programme, for example, will directly result in improved results without affecting HR outcomes. • The model's reversed causality shows that better financial results can often lead to more investments in HR activities and better HR outcomes. Employees are also more active while they are doing well (an HR outcome). • This demonstrates that the model's relationships are not necessarily unidirectional. However, in general, this Human Resources model illustrates how HR policy is built and how HR affects internal business processes and financial outcomes. 4.5 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. 4.6 LEARNING ACITIVITY 1. Visit the BPO or service industry and collect data on HR Strategies ____________________________________________________________________________ ____________________________________________________________________________ 2. Visit the Manufacturing unit and collect the Questionnaire on challenges in retaining the employees. ____________________________________________________________________________ ____________________________________________________________________________ 4.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. “HR tactics will help a company become more efficient.” Comment 2: Compare and contrast the strategic partner model and the Dawid Ulrich model, as well as company partnering. 60 CU IDOL SELF LEARNING MATERIAL (SLM)

3. What are the major obstacles to maintaining employees? Examine the factors that influence employee retention. 4. What is the concept of career planning? Why is it significant? What are the steps in the process? 5. What exactly do you mean when you say \"competencies\"? What role does it play in the development of a strategy? Long Questions 1. What is the concept of human resource development? 2. What is the significance of human resource development? 3. Distinguish between a performance assessment and a work evaluation. 4. Talk about the meaning of human resource planning. 5. What are the goals of the career planning process? B. Multiple Choice Questions 1. HRM managerial roles are necessary___________ of the organizations. a. administration b. smooth running c. financial stability d. None of these 2. HRM does not have a managerial role that includes ______________ a. innovation b. employee relations c. planning d. coordination 3. The HR functions that are needed to handle the organization's manpower are known as ___ a. managerial function b. analytical function c. operational function d. research function 61 CU IDOL SELF LEARNING MATERIAL (SLM)

4. In the administrative role of HRM, the planning function includes the strategy for a. acquiring best employee b. engaging the employee c. proper training to them d. All of these 5. ___________ explains what tasks must be completed, when they must be completed, and how they must be completed. a. planning b. organising c. decision making d. None of these Answers 1 – b, 2 – b, 3 – c, 4 – d, 5 - a 4.8 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. 62 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 5: HUMAN RESOURCE ENVIRONMENT Structure 5.0 Learning Objectives 5.1 Introduction 5.2 Technology and Structure 5.3 Workforce diversity 5.4 Summary 5.5 Keywords 5.6 Learning Activity 5.7 Unit End Questions 5.8 References 5.0 LEARNING OBJECTIVES After studying this unit, you will be able to: • Describe elements of HRM • Identify scope of HR Strategies • Evaluating scope of strategic HRM Function • Challenges of strategic human resource management 5.1 INTRODUCTION The philosophy, perspectives, work culture, attitudes, performance, skills, productivity, existence and behaviour of HR, employees' demand and supply, motivational dimensions, compensation strategies, and industrial relations surrounding HR activities are all part of the social climate. For the past two decades, a transition phase has emerged as a result of the increasing and interconnected function and understanding of social and Human resource environmental factors. Many transformations have occurred as a result of the transition from manual to machine processes, from unskilled to professional workers, from manufacturing to service economies, and from the machine era to the autocratic age. 1. Meaning of Human resource environment 63 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Need to Study Human resource environment 3. Factors Affecting 4. Changing Environment 5. Trends, Practices and Perspective Viewpoints. Human resource environment: Meaning, Need, Factor Affecting, Trends Practices and Perspective Viewpoints Contents: 1. Meaning of Human resource environment 2. Need to Study Human resource environment 3. Factors Affecting Human resource environment 4. Changing Human resource environment 5. Trends, Practices and Perspective Viewpoints of Human resource environment Human resource environment – Meaning The market climate has focused some new facets and directions with some evolving principles within the HR scenario. People have become the industry's most valuable commodity, and new talented and technologically based individuals are needed. HR ideas, processes, and success across a wide variety of activities are all affected by the social and business climate. In general, the social climate has a lot of power to control and guide the HR situation in the economic and industrial sectors. The Human resource environment is a subset of the social environment that encompasses the philosophy, perspectives, work culture, attitudes, performance, abilities, productivity, existence and behaviour of HR, employee demand and supply, motivational aspects, compensation processes, and industrial relations related to HR activities. For the past two decades, a transition phase has emerged as a result of the increasing and interconnected function and understanding of social and Human resource environmental factors. Many transformations have occurred as a result of the transition from manual to machine processes, from unskilled to professional workers, from manufacturing to service economies, and from the machine era to the autocratic age. Human resource environment – Need to Study HR Environment Within the globalised economy, HR managers and workers face a number of significant environmental developments and improvements that pose significant challenges. There is a need to research the HR environment in order to raise HR awareness, improve skills and performance, increase HR productivity, and solve problems and challenges. 64 CU IDOL SELF LEARNING MATERIAL (SLM)

The aspects as well as factors to be responsible to study the Human resource environment are as given here: 1. It is essential to improve learning and knowledge attitudes among employees in order to build and develop intellectual capabilities. 2. To define and plan social standards, ethical principles, and a range of codes of conduct specific to employees; 3. To analyse and enforce market and labour laws and provisions in an efficient and perceptive manner; 4. To improve and refine the work plan so that workers can engage in effective and constructive activities; 5. In order to create a friendly and harmonious work environment, it is important to investigate all applicable issues emerging from environmental studies. 6. It is essential to analyse the social climate in order to address and resolve various societal problems, evils, and conflicts. 7. To manage and organise the workplace's mechanical and technological advancements, as well as modern and creative methods; 8. In order to make sound, fair, and systematic decisions about HR activities invariably; 9. To improve HR efficacies as well as assess long-term strategies for various internal and external aspects of HRM; and 10. The HR environment must be observed, evaluated, and improved in order to learn, evaluate, and improve personal skills and performance. Human resource environment – 2 Major Factors Affecting: External and Internal Forces Since the environment is such an essential component of the HRM model, it is vital to understand what it is and how it affects HR functions in an organisation. The term \"environment\" refers to all of the variables that influence how the HR department operates. External and internal forces are used to classify these forces. Internal factors include unions, organisational culture and disputes, and professional organisations, while external factors include political and legal, technical, economic, and cultural factors. The HR manager and his or her staff must conduct an environmental analysis in order to be constructive rather than reactive to the environment. Following are the factors affecting Human resource environment: Factor # A. External Forces: These factors exist outside the organization and the organization has least control over these factors. 65 CU IDOL SELF LEARNING MATERIAL (SLM)

The external forces mainly include: 1. Political and Legal Environment: The effect of political institutions on the HRM department is part of the climate. In a democratic setting like India, the following elements make up the complete legislative environment: (a) Legislature – Also known as Parliament at the federal level and advisory at the state level, the legislature is made up of the following members. It is primarily a legislative body. This agency is in charge of enacting various labour laws. (b) Management – It is also known as the government and is responsible for enforcing laws. It operates in accordance with legislative decisions. (c) Judiciary – It serves as a watchdog, ensuring that both the legislature and the executive act in the public interest. Labour laws are influenced by the political climate. There are various labour laws regulating terms and conditions of jobs, working conditions, wage payment, labour disputes, worker health, protection, and welfare. Technology and organisational structure; Values and attitudes of workers; Management trends; Demographic trends; Human resource use trends; Developments on the international stage; Internal world – designing an alignment strategy; 5.2 TECHNOLOGY AND ORGANIZATIONAL STRUCTURE Broad influences of technology Technology has a significant influence on organizational structure and the essence of managerial work. The main areas of company – manufacturing, distribution, finance, and human resources – are all incorporated using enterprise software systems. Many advantages have arisen as a result of technological advancements, including increased performance, faster response times, improved inventory management, improved teamwork, and better decision- making. Many middle-level positions (that usually manage and disseminate information) have been eliminated as a result of technology and information systems. Many of the roles and duties that these positions perform have been computerized. A valuable training ground for senior executives has been eliminated. Second, the concept of supervision has changed as a result of automation. Furthermore, due to the accumulation of knowledge power in non- managerial, technical roles, the essence of managerial work shifts. To be successful in a new setting, you must learn new skills. The number of managerial positions has decreased, and the essence of management has changed as well. Alternative work assignments and opportunities are needed for developing managers for tomorrow in lean and flat firms (due to the elimination of hierarchies) and information-driven firms. As technology advances, so do the skills and managerial education requirements. While 66 CU IDOL SELF LEARNING MATERIAL (SLM)

knowing all aspects of a wide range of technologies is impossible, some conceptual understanding is needed to provide support and guidance. Shorter production cycles are becoming more common in manufacturing. To prevent delays in sequential production processes, the new product development process is based on concurrent or parallel engineering. Both facets of product creation collaborate in parallel systems. Influences of Human Resource Information Systems Human resource information system (HRIS) elements are used in the implementation of enterprise software systems which provide information about available human resource capabilities. Enterprise information systems have an effect on the operations and roles undertaken by human resource departments. In addition, managers will now make more strategic and organizational decisions based on human resource data. Human resource teams, employees, and procedures have all been restructured as a result of the implementation of these programmes. Redeployment of Human Resource Staff to Operating Units HR personnel are redeployed (shifted) to independent operating units as a result of organizational decentralization. It offers better support because HR workers are on-site and report to the line manager (in charge of the operating unit) as well as the functional manager (head of human resource department). HR personnel are capable of dealing with a wide range of issues and can request specialist resources from the HR department when necessary. Because of the costs and redundancies associated with this operation, some experts have criticized such redeployment. It is, however, preferable to delegate some HR personnel to the operating unit because it adds value. HR personnel can better appreciate and enhance the atmosphere and environment in the workplace. New Organizational Structures Workplaces and management styles are evolving. As a result, companies are evolving as well. Staff are more responsible as a result of the enhanced knowledge generated by the computerized information system. (2) Shifting from entity to collective responsibility as a result of more community members having access to the same data for decision-making. (3) Since professional technology employees have the power of experience, the current structure of businesses is unfit for the future. (4) Task-force teams and project-oriented work groups are doing more work. More engagement, a de-emphasis of managerial rank, new types of superior-subordinate relationships, and different managerial skills are needed for rotating leadership positions as a result of the changes. Since the creation and emergence of such managers cannot be expected, organizations must be actively established. Four new future organizational structures are: 67 CU IDOL SELF LEARNING MATERIAL (SLM)

▪ unbundled corporations ▪ network organizations; ▪ cellular organizations ▪ respondent organizations. Unbundled Corporations: They take a portfolio/conglomerate approach to their peripheral business units, which are kept or sold based on profitability and risk. Many conventional bureaucratic support services are outsourced to contractors and vendors. Vendors handle functions such as recruitment, rewards, and payroll. This allows capital to be redeployed to more lucrative alternatives. Managers may also concentrate on running a business unit and honing their management skills. Employees in the unbundled companies' core unit (those who organize vendor jobs, handle transition, and manage a portfolio of business units) have job protection. Employees in peripheral units, on the other hand, could be less committed. Reduced control and inefficiencies caused by the vendor/supplier relationship could wipe out any cost savings resulting from the use of temporary staff. Network Organizations: They're also known as virtual businesses. These businesses arose from the need to outsource operations that retailers, manufacturers, and consultants could do better and faster. Organizations that rely heavily on outsourcing and have a need for pace are referred to as virtual organizations. Companies from all over the world can be represented in these organizations, which often have a permanent core member who acts as a broker. Non-core membership may be either dynamic (broker may replace network components on a regular basis) or stable (broker may replace network components on a regular basis) (organization retains the component members for a longer period of time). Some of the managerial skills required are: (1) referral skills [problems are guided to network components where a solution can be found]; (2) partnering skills [such as problem solving or bargaining for outcomes] that support all members; and (3) relationship management or being attentive to the needs of consumers and partners. 5.3 WORKFORCE DIVERSITY We live in a time when multinational companies and their global scope have both advantages in terms of creative HR policies and challenges in terms of managing a workforce made up of people of various races and ethnicities. Furthermore, the topic of gender diversity in the workplace, in terms of more women and third gender workers, has been a pattern that has intensified in India over the last two decades, and far earlier in developed countries. 68 CU IDOL SELF LEARNING MATERIAL (SLM)

When an entity has workers of various castes, creeds, religions, minorities, and genders, the issue of how to accommodate these differences without creating too much conflict in daily interactions inevitably arises. Managing diversity is crucial because if it is not, the organization's performance will suffer, and dissatisfied workers will file complaints and cases with minority cells and the Women's Commission, claiming discrimination and harassment based on their ethnicity or gender. Workforce diversity also applies to the different personal attributes that make an organization's workforce diverse. Organizations in the past took a \"Melting Pot\" approach to organisational discrepancies. It was once thought that people from diverse backgrounds would automatically want to fit in with the organization's workforce, but today's employees arrive at work with a predetermined life style, values, and preferences. As a result, the challenge for HR managers is to make their companies more accommodating to various groups of people by addressing various life types, desires, beliefs, and job styles. Definition of Workforce Diversity The heterogeneous composition of an organization's workers in terms of age, gender, language, ethnic origin, education, marital status, and other factors is referred to as workforce diversity. HRM practitioners face a significant challenge in managing such diversity. “Workforce diversity” refers to the similarities and disparities in characteristics such as age, gender, ethnic origin, physical abilities and disabilities, ethnicity, and sexual orientation among employees of organisations, according to Moorhead and Griffin. The management of a diverse workforce has important consequences. Managers would be expected to change their approach from treating all employees the same to identifying differences and implementing strategies that promote innovation, increase efficiency, minimise labour turnover, and prevent discrimination. When employee diversity is properly handled, the organisation benefits from improved communication, improved interpersonal relations, and a more pleasant work environment. India is a land of diversity, which is due to a variety of factors including the subcontinent's multilingual makeup, the coexistence of people who practise a variety of religions, an ancient and deeply entrenched multi-caste structure, and cultural conquest from the outside world, which has muddled the Indian mind's original values. Religious, ethnic, caste, linguistic, and gender diversity in the workforce must be adequately identified and controlled. A large number of women joining the workforce is also emerging as a contributory factor to modern organisations' diverse workforce. As a result, it's no surprise that Indian companies must contend with a diverse social community of workers. Managers see this as a challenge without which they would have performed better. Many administrators, on the other hand, fail to realise that workforce diversity is an asset and an advantage that can be used to succeed and win in the global marketplace. 69 CU IDOL SELF LEARNING MATERIAL (SLM)

Workforce Diversity with Its Many Dimensions Secondary Dimensions vs. Primary Dimensions The characteristics that characterise an organization's workers can be divided into two categories: primary dimensions and secondary dimensions. Age, gender, race, ethnicity, sexual orientation, and physical ability are examples of primary dimensions that are either inborn or have a strong impact on early socialisation. These dimensions are at the core of who we are as individuals. They describe us in the eyes of others, causing them to respond in kind. These are a part of our character that will never change. Secondary dimensions reflect those aspects of our lives that we learn or have some influence over, such as schooling, marital status, religious values, language, and so on. Secondary dimensions add a layer of ambiguity to how we perceive ourselves and others, and can have a significant effect on our core identities in some cases. People come to work in an organisation with a specific perspective shaped by primary and secondary dimensions. Only through learning to recognise and respect the differences in others can people form successful human relationships. Both the primary and secondary aspects of diversity will serve as roadblocks to more collaboration and understanding if they are not accepted. Dimensions of key importance: There are non-negotiable characteristics of each employee, such as age, race, gender, physical and mental abilities, and sexual orientation. These inborn factors are intertwined and have a significant impact on an individual's behaviour throughout their lives. They come together to shape a person's \"self-image.\" Gender diversity is becoming more visible all over the world. In many nations, not only are more women employed, but gender-based occupational discrimination is also decreasing. As a result, men and women are more likely to work side by side in businesses. The range of ages is also widening. Many developed countries are seeing population growth slow down, prompting employers to recruit both young and older workers. Furthermore, since organisations encourage younger employees' higher education to compensate for the work experience that previous cohorts of employees needed to advance, relatively young employees are more often found in higher level positions. As a result, the homogeneity associated with conventional age-based stratification is being replaced by age diversity. The more fundamental differences there are between individuals, the more difficult it is to create trust and mutual respect. Culture clashes and tensions between groups of people with different core identities may wreak havoc on an organization's human relations. Few companies are resistant to the challenges that occur as a result of intergenerational and gender interactions. Successful interpersonal relations become much more complex when secondary aspects of diversity are added to the mix. 70 CU IDOL SELF LEARNING MATERIAL (SLM)

Additional Dimensions: These are the elements that can be altered or updated in any way. They include a person's health habits, religious values, education and training, physical appearance, social status, ethnic traditions, communication style, and income level. Both of these aspects contribute to the uncertainty of how we perceive ourselves and others, and in some cases, they may have a significant effect on our core identities. An accountant with ten years of experience can adapt to a new position in a very different way than an accountant with significantly less experience. A male earner who loses his job may be severely impacted by his loss of income because he must meet his family's demands, while a married woman without children may not be as impacted because her husband can still meet the family's needs. Situations like these amplify the effect of specific secondary dimensions, but they have no bearing on the impact of primary or core dimensions. The interaction of primary and secondary dimensions, on the other hand, forms a person's beliefs, priorities, and expectations during their lives. If management fails to handle diversity effectively, both the primary and secondary dimensions of diversity will act as roadblocks to collaboration between individuals and groups. Reasons for Growing Interest in Workforce Diversity by the Modern Organisations Modern businesses are becoming increasingly interested in employee diversity for a variety of reasons. The prominent ones are described below: (i) Growth of Service Economy: There has been a transition from a manufacturing economy to a service economy in many developed economies. Many jobs have been created in the service industries, such as hotel and tourism, banking, insurance, financial services, retailing, and so on. Customers' desires must be understood, and steps must be taken to ensure their satisfaction. It has been discovered that businesses can connect with their customers more easily if their employees are close to their customers. (ii) Globalization of Markets: With the rise of globalised markets, businesses from all over the world compete for consumers by providing options that are not available domestically. Customers have the leverage to demand that their expectations and desires be fulfilled now that they have more choices. Firms must get closer and closer to their consumers in order to please them. Some multinational companies have developed strong local presences, while others have formed strategic alliances (e.g., Maruti Udyog Limited with Suzuki of Japan). Diversity must be handled in either case if a competitive advantage is to be developed and retained in the market. (iii) Mergers and Strategic Alliances: Workforce diversity must be properly handled in order to successfully navigate mergers and strategic alliances. Differences in corporate cultures between the two entities are the most common source of problems in mergers and acquisitions and strategic alliances. Corporate cultures may vary in a variety of ways, including business practises, how people are expected to behave, and the types of behaviour that are rewarded. As businesses align their resources to 71 CU IDOL SELF LEARNING MATERIAL (SLM)

sell goods and services to consumers in far-flung markets, both staff and managers must consider and focus on diversity. (iv) Increasing Role of Work Teams: Modern businesses use a variety of techniques to ensure their sustainability and development, including innovation, quality management, cost control, and product differentiation. Instead of conventional job positions, such methods necessitate the creation of work teams within the enterprise. Work teams have been shown to encourage greater versatility, lower operational costs, quicker response to technological change, less job classifications, improved response to new values (e.g., lower-level worker empowerment, increased autonomy and responsibility), and the ability to recruit and retain talent. Teams will also help with creativity by putting together experts with a range of experiences and viewpoints. (v) Changing Composition of Workforce: The workforce composition in Indian businesses is shifting. Women, physically handicapped people, and people from scheduled castes and tribes are all being hired in greater numbers. Furthermore, today's population is more mobile. People from various states and cultural backgrounds make up the organisations. The organisation should take advantage of cultural diversity. To serve customers from various cultural and ethnic backgrounds, workers must be trained to understand and respect different cultures, languages, orientations, and so on. (vi) Managing Labour Market: The rapidly changing labour market is also to blame for the increase in workforce diversity. Growing demand for knowledgeable jobs, as well as an increase in the number of women joining the workforce, brings a new dimension to workforce diversity. (vii) Legal Requirements: Certain employment in the government and public sector are reserved for scheduled castes, scheduled tribes, other backward groups, physically disabled people, and so on, according to the Indian Constitution. It invariably results in employee diversity in the concerned organisations. Steps of Planning Step 1 – Set Strategic Direction: The identification of potential functional requirements is guided by an agency's vision, purpose, and achievable goals and objectives. As a result, the study and elements of the workforce plan are guided by those conditions. Focus on the role rather than the people necessary to complete the task when defining potential functional specifications. The overarching question is, \"Which main role must be fulfilled in order to achieve the strategic plan's goals and objectives?\" Many of the organization's current tasks, as well as essential future and events, can be included. 72 CU IDOL SELF LEARNING MATERIAL (SLM)

Step 2 – Conduct Workforce Analysis: The study of workforce data is a crucial part of the workforce preparation process. Information such as work classification, qualifications, experience, retirement eligibility, diversity, turnover rates, education, and trend data are all taken into account. This phase examines the work that will be needed for an organisation to meet its goals and objectives, as well as the requisite skills and skill sets and staffing levels. There are two phases in conducting the workforce analysis: The Workforce Demand Forecast identifies the workforce that an organisation would need in the future. The emphasis of this phase should be on the work that the organisation must do and the personnel required to complete it. Identify the current work functions being performed and the personnel required to perform those functions in this phase. Identify the current work functions being performed, future or new functions that will be required, and how the work will be performed in order to meet the strategic plan's objectives. We may also recognise current functions that will be obsolete in the future as a result of technological advancements or responsibilities in delivering specific services. The Workforce Supply study looks at the current and potential workforce supply of a business. It refers to the question, \"What is the existing workforce's profile, and what will it need to be in the future to achieve the organization's goals and objectives?\" Focus on determining the staffing, or employees, required to perform certain functions, possess to effectively perform the job, and decide the number of workers with these competencies that the organisation would require to accomplish its functions once the work functions have been defined. The study of workforce data is a crucial part of the workforce preparation process. Information such as work classification, qualifications, experience, retirement eligibility, diversity, turnover rates, education, and trend data are all taken into account. This phase examines the work that will be needed for an organisation to meet its goals and objectives, as well as the requisite skills and skill sets and staffing levels. Step 3 – Conduct Gap Analysis: Gap analysis is the method of comparing the workforce supply prediction to the workforce demand forecast. It should take into account the workforce's demographic characteristics, geographic position, scale, and level of employee competencies. Based on the findings of this study, the agency will develop workforce strategies. Analysis results may show one of the following: i. A deficit (when expected availability is less than forecasted demand), indicating potential shortages of required staff or skills; it's crucial to know which vital jobs may have gaps so that the appropriate training or hiring can be planned ahead of time. ii. A surplus (when expected supply exceeds forecasted), indicating a potential surplus in certain groups of jobs and possibly necessitating intervention. The surplus data could reflect 73 CU IDOL SELF LEARNING MATERIAL (SLM)

work classifications or skills that are no longer required or would only be needed to a limited degree in the future. Step 4 – Develop Strategies: When a workforce gap has been established, a company must establish and execute successful strategies to close the gap. Critical holes should be carefully examined so that steps can be taken before they become an issue for the company. There are a number of strategies available to resolve future shortages and surpluses. Strategies include services, policies, and activities that assist organisations in attracting, creating, and maintaining the necessary personnel required to meet programme objectives. Strategies can fall into broad categories of: i. Redefining title sequence, introducing new work classifications, reallocating job classes, and rewriting role descriptions to best represent potential functional requirements ii. Recruitment and hiring practises to identify and employ eligible applicants from a variety of sources, such as other organisations or occupations. iii. Methods for identifying and recruiting skilled applicants from a range of outlets, such as other companies or the private sector. iv. Employee retention techniques to motivate them to remain with the company. v. Organizational interventions such as reorganisation or redeployment of workers. vi. Techniques for succession planning to ensure that highly skilled applicants are eligible to fill key roles. vii. Knowledge transfer techniques to catch seasoned employees' knowledge before they leave the business. The number of strategies should be held to a minimum. They should be prioritised so that an organization's money can be allocated to the most relevant strategies first. Step 5 – Implement Strategies: The workforce plan of the organisation is brought to life by implementation. To address the execution of each strategy in the workforce plan, an organisation will require a separate action plan. Before implementing the plan, organisations should: i. Ensure that the employee plans have executive support. ii. Define workforce plans by allocating required resources. iii. Define functions and responsibilities in strategy implementation. This involves determining who is responsible for what and where collaboration between various sections of the company or with external agencies is needed. 74 CU IDOL SELF LEARNING MATERIAL (SLM)

iv. Build a plan. v. Set performance targets and milestones, as well as planned deliverables. vi. Disseminate the strategy. All workers should be informed about the plan's foundation, as well as its components, including why and how it was created, how it will be implemented, and how it will impact employees. Step 6 – Monitor, Evaluate and Revise: In workforce preparation, ongoing reviews and changes are critical to quality improvement. If an organisation does not evaluate its workforce preparation activities on a regular basis, it risks failing to consider and respond to unanticipated changes. Organisations should establish a process that allows for a regular review of their workforce planning efforts to: i. Analyze the data on success assessment. ii. Evaluate what is working and what isn't. iii. Make the appropriate adjustments to the strategy and strategies. iv. Adapt to any new workforce or organisational problems that arise. Strategies for Managing Workforce Diversity Strategies for managing workforce diversity or cultural diversity are four-fold. 1. Individual Strategies: Individuals with a wide perspective will devise tactics based on the circumstances, ego states, and cultural backgrounds of colleagues in order to cope with a variety of cultural situations. Individual cultural diversity management methods are not inclusive. We do, however, go through a few main techniques. They are: i. Recognize others' cultural backgrounds; ii. Believe that all cultures are good; iii. See things through the eyes of others; iv. A ‘no-winning-over' approach to other people's cultures; v. Effective contact 2. Group Strategies to Cultural Diversity: Employees from the same ethnic community will appreciate the cultures of others and the cultural differences between them. They may also devise effective cultural diversity management techniques. The group strategies include: 75 CU IDOL SELF LEARNING MATERIAL (SLM)

i. Knowledge transfer ii. Counselling and alert iii. Cultural exchange services by socialisation These programs provide a number of benefits like: i. Understand each other across cultural lines; ii. Prevent potential cultural conflicts at work; iii. Develop relationships among employees' family members that will serve as a \"shock absorber\" during times of cultural or work-related conflict; iv. Recognizing and respecting the cultures of others; v. Put into practise aspects of other cultures that are important or interesting to you. Others who have their cultural rituals adapted find this practise extremely satisfying. vi. Create a corporate atmosphere that is almost uniform; vii. Avoid organisational cultural conflicts; and viii. These services help to smooth out the bumps in cultural awareness. ix. Assists in the development of a shared platform for resolving cultural differences if any cannot be avoided. These programmes have a few drawbacks, such as time and budget constraints. These programmes, on the other hand, manage cultural diversity more successfully than other methods. Now it's time to talk about organisational tactics. 3. Organizational Strategies to Cultural Diversity: In addition to the methods adopted by individuals and organisations, organisations should devise successful strategies to handle cultural diversity at work. Organizational strategies include: a. Methods for Recruiting and Selection b. Policies and Procedures of the Organization c. Cultural Education d. Shattering Glass Ceilings e. Programs of Formal Socialization f. Organizing Work Groups g. Counsellors’ Use h. Interaction 76 CU IDOL SELF LEARNING MATERIAL (SLM)

i. Women's and Seniors' Special Benefits and Facilities 4. National Strategies: The following are some examples of national cultural diversity management strategies: i. Legislative Approach to Equality of Opportunity in the Workplace ii. Cultural Associations/Societies' Efforts iii. Diplomatic Missions' Contributions 5.4 SUMMARY • Competitors have an effect on certain HR roles and events. Since there are so many companies vying for human capital, the value of the staffing role, as well as its appraisal and compensation practises, is increasing. • Many companies are now offering the person a job, and the company that offers him the best terms and conditions wins the competition. As a result, when obtaining workers from outside becomes impossible, companies must groom their own employees through HR activities. • Firms would be forced to become more innovative as a result of technological advances. The collapse of hierarchy has also been accelerated by information technology. Managers are relying less and less on yesterday's organisational strategy of sticking to the chain of command. Any employee with a personal computer at his or her desk has access to the company's computer network and can obtain required information. Any such changes necessitate the involvement of HR. 5.5 KEYWORDS • Workforce Diversity :Workforce diversity means the heterogeneous composition of employees of an organization • Network Organizations: They are also called virtual corporations • Unbundled Corporations: They employ portfolio/conglomerate approach to their peripheral business units • HRM – Human Resource Management • HRD – Human Resource Development 5.6 LEARNING ACITIVITY 1. Visit the Organization and collect the data on environmental factors affecting HRM ____________________________________________________________________________ 77 CU IDOL SELF LEARNING MATERIAL (SLM)

____________________________________________________________________________ 2. Visit the organization and collect the data on Talent Acquisition ____________________________________________________________________________ ____________________________________________________________________________ 5.7 UNIT END QUESTIONS A. Descriptive type Questions Short Questions 1. What are the 5 main areas of HR? 2. What are the environmental factors affecting HRM? 3. What are 3 examples of human resources 4. What impact does the Human resource environment on our daily lives? 5. HR environment in India Long Questions: 1. What are the different methods of recruiting employees? 2. Difference between job description and job specification 3. List out the limitations of performance appraisal. 4. What is training? B. Multiple Choice Questions 1. Except for the following, all of the following are internal recruitment sources: a. job posting. b. employee recommendations. c. advertisements. d. transfers. 2. A tailored plan of preparation, experience, and likely education for an employee's development and advancement opportunities for development are referred to as: a. job description. b. career development plan. c. assessment sheet. d. interview form. 3. A structured, systematic assessment of qualitative and quantitative data. The following elements of an employee's success are referred to as: a. performance evaluation. 78 CU IDOL SELF LEARNING MATERIAL (SLM)

b. performance appraisal. c. performance analysis. d. orientation. 4. Which of the above is not an advantage to the individual? a. sick leave. b. flex benefit. c. sales bonus. d. dental plan. 5. According to SHRM, the HR department must schedule its tasks in advance_______ way a. Strategic b. Modern c. Technical d. Systematic Answers 1 – c, 2 – b, 3 – a, 4 – c, 5 – a. 5.8 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. 79 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 6: HUMAN RESOURCE ENVIRONMENT Structure 6.0 Learning Objectives 6.1 Introduction 6.2 Functional HR Strategies 6.3 Recruitment and Retention Strategies 6.4 Training and Development Strategies 6.5 Performance Management Strategies 6.6 Summary 6.7 Keywords 6.8 Learning Activity 6.9 Unit End Questions 6.10 References 6.0 LEARNING OBJECTIVES After studying this unit, you will be able to: • Describe HR Strategies • Identify scope of Functional HR Strategies • Evaluate the Retention Strategies • Describe Training and Development • Define Performance Management • Describe Recruitment Strategies 6.1 INTRODUCTION There are many variables that influence day-to-day activities when it comes to human resource management. Adapting in this sector is critical since new laws with an immediate effective date can be enacted at any time, and organisational practises can be modified at any time, with human resources bearing the brunt of the consequences. External variables that can impact the human resources department are taken into account in a well-developed plan. The four external factors that affect human resource management are: 80 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Government Regulations –Due to the introduction of new workplace enforcement standards, your human resources department is constantly under pressure to stay within the law. The entire HR department's workflow is affected by these regulations, including hiring, training, compensation, termination, and much more. If a company does not meet these rules, it will be subjected to substantial penalties, which, if serious enough, may lead to the company's closure. 2. Economic Conditions – One of the most relevant external factors is the global economic situation. It has an effect on both the talent pool and the ability to recruit anyone at all. Staying informed of what's going on in the world and making a contingency for when it happens are two of the most important things you can do to prepare for economic downturns. Any business will survive in a bad economy if it has a rainy-day fund or a plan to cope with the harsh environment. 3. Technological Advancements – As new technologies are introduced, the HR department will begin looking for ways to cut costs and downsize, which is an external factor. A job that previously required 2-4 people can now be done by a single person. Not only in terms of consumer comfort, but also in terms of internal cost-cutting, technology is revolutionising the way we do business. 4. Workforce Demographics – Human resources must find new ways to hire eligible candidates while an older generation retires and a new generation enters the workforce. To appeal to this younger generation, they must hire in new ways and deliver new types of compensation packages. Simultaneously, they want a working environment that is suited to the needs of this generation. Human resource managers are responsible for more than just hiring and firing; they also ensure that all external influences are heard and that appropriate processes are followed to prevent complaints and penalties. If you work in HR, make sure you're paying attention to external factors because they could have an impact on your job and the business you work for. So, the next time you speak with someone involved in human resource management, consider the number of variables that influence their role and how important it is for them to be on top of their game. The Internal Environment These are the forces that operate within a business. HR functions are strongly affected by internal forces. Unions, corporate culture and conflict, professional organisations, organisational goals, strategies, and other factors all contribute to HRM's internal climate. Here's a quick rundown on what they're all about. 1.Unions: Trade unions operate to defend the rights of their members/workers. Recruitment, selection, preparation, wages, labour relations, and separations are all carried out with the input of trade union representatives. 2.Organizational Culture and Conflict: Organizations have cultures, just as people do. Each company has a distinct culture that sets it apart from the others. Reliance Industries Limited's 81 CU IDOL SELF LEARNING MATERIAL (SLM)

culture can be characterised as the members of the organisation sharing certain core values or beliefs. \"Value for time\" is the company's culture. The Tata conglomerate's culture is \"get the best people and set them free.\" HR methods must be incorporated that are most compatible with the company's culture. The mindset of workers and the corporate culture are constantly at odds. Dualities such as personal goal vs. organisational goal, discipline vs. autonomy, rights vs. duties, and so on are common sources of conflict. Conflicts like these have an impact on HR activities in a business. The HR professional body, like other professional bodies, oversees HR practitioners' activities. HR professionals are required to announce their commitment to the code in this regard. As a result, technical bodies have an effect on an organization's HR functions. 6.2 FUNCTIONAL HR STRATEGY According to Gareth R. Jones, “Functional strategy is a plan of action to strengthen an organization’s Functional and organizational resources, as well as its coordination abilities, in order to create core competencies.” Corporate and Business strategies give birth to functional strategies, which are implemented in the organization through functional and operational implementation. This technique is used to describe a single-function activity and the activities that go along with it. This is a strategy's operational degree. The tactical decisions made at this stage are referred to as such. The primary goal of functional strategy is to achieve corporate and business-level objectives in a particular functional area through the most efficient use of available resources to improve profitability. Only the basic purpose of functional level strategies can be achieved when all of an organization's functional divisions, whether marketing, finance, human resource, logistics, legal, supply chain, or information technology, work together in the same direction to cover business level objectives and, as a result, achieve corporate level goals. Each functional department fulfils its own functional obligations by implementing short and medium-term strategies in order to contribute to the achievement of overall corporate goals. For example, in marketing strategy, the process can concentrate on identifying the target market and designing a market strategy that meets the target customers' overall needs. Human resource policy can include functions such as employee recruitment and selection, retention, training and development, assessment, and remuneration. Funding, bonds, debt financing, depreciation, and other financial concerns can be addressed in a financial plan. The organisational divisions are connected to the functional strategies, which connect to the business processes and value chain. Higher-level strategies depend on these strategies because they feed information into company and organisational strategies. The functional units translate the higher-level plans into a course of action plan, which each department is expected to complete in a timely manner in order for the strategy to succeed. A company with multiple 82 CU IDOL SELF LEARNING MATERIAL (SLM)

divisions that deal in multiple businesses at the same time develops a business strategy for each one, and each business with its own collection of departments develops its own functional strategy for each one. For example, if a company chooses to pursue a differentiation strategy, each department's activities must be solely based on achieving that goal. The strategy could be based on providing personalised products, focusing on the product's value creation, charging high prices, and providing new and enhanced products through R&D. The aim of developing these strategies is to achieve a competitive advantage by optimising resource efficiency and increasing cost-effectiveness. Understanding the value of strategy alignment at the corporate, company, and functional levels is crucial. If the market and functional level plans do not comply with the corporate strategy, it will be unsuccessful. As a result, verifying the reliability of company and functional level strategies, which help the organization's grand strategies, is just as critical as choosing the right corporate strategy. The business's support role is defined by functional level strategies. In order to optimise resource utilisation, functional strategy deals with developing and cultivating a distinct competence in a functional field. The contribution of functional strategy to company and corporate strategy is important. It also aids in the creation of a competitive advantage. An organisation is made up of several business divisions, each of which has its own collection of departments and functions. Each business unit develops and implements its own business and functional strategies. The business level approach defines how practical strategy is focused. If the unit adopts a cost leadership strategy at the business level, a set of functional strategies would be required to support the cost leadership strategy. Functional Strategies Have a Meaning: Any company's competitive advantage is built on functional strategies. These tactics are extremely beneficial to the firm's execution of its integrated business plan. They serve as a foundation for achieving the firm's strategic goals. Functional techniques are developed in response to changes in the business environment. Production, marketing, finance, human resources, information systems, organisational research and development, and other essential functions are at the heart of every company. Many other tasks help operations that are critical to the company's success. According to Melvin J. Stanford, strategic alternatives for each of these functional areas must be created, chosen, and executed by management for a firm to fulfil its purposes and advance toward its objectives. Functional plans are the sum total of day-to-day decisions taken by functional department heads who are in charge of developing and adding value to the product or service. They work on product creation, raising funds, producing the appropriate product, supplying it to consumers, and supporting the product or service of each company in the corporate portfolio. These activities are carried out by making effective use of available resources and skills, as well as incorporating activities within the functional region, such as in marketing, buying, inventory management, promotion, advertisement, and shipping in output. Business-level planning informs functional strategies. Bear in mind the three generic strategies: low-cost leadership, differentiation, and emphasis. Consider an organisation that is 83 CU IDOL SELF LEARNING MATERIAL (SLM)

following a low-cost leadership strategy. All functional areas must be based on a low-cost structure until the plan is applied. According to Thompson and Strickland, policy formulation is not exclusively the responsibility of senior executives. Senior executives in the corporate office, heads of business units and product divisions, heads of major functional areas within a business or division (manufacturing, marketing and sales, finance, human resources, and the like), plant managers, product managers, district and regional managers, and others are involved in decisions about what business approaches to take and what new moves to initiate in large enterprises. In diversified businesses, strategies are established at four different levels of the organisation: These are as follows: 1. Corporate Strategy – This is a strategy for the corporation as a whole, including all of its businesses. 2. Corporate Plan – This is a strategy for each of the company's various businesses. 3. Functional Strategy – Ultimately, there is a strategy for each of a company's functional units. A production strategy, a marketing strategy, a finance strategy, and so on are common in businesses. 4. Operational Strategy – Ultimately, for basic operating units such as factories, distribution districts and territories, and divisions within functional areas, this is a still narrower strategy. Definitions: The activities and processes—such as human resource management, research and development, finance, production, and marketing — constitute the strategic functions of an organisation. Strategies designed to enact these strategic functions are referred to as functional level strategies. A functional strategy is the short-term game plan for a key functional area within a company. It deals with a relatively restricted plan that provides the objectives for a specific function, for the allocation of resources among different operations within the functional area. It facilitates coordination between them. Functional strategies contribute to the achievement of business and corporate-level objectives. According to Thompson and Strickland, “The term functional strategy refers to the managerial game plan for a particular functional activity, business process, or key department within a business. A company’s marketing strategy, for example, represents the managerial game plan for running the marketing part of the business. A company’s new product development strategy represents the managerial game plan for keeping the company’s product line-up fresh and in tune with what buyers are looking for.” 84 CU IDOL SELF LEARNING MATERIAL (SLM)

Pearce and Robinson define “a functional strategy is the short-term game plan for a key functional area within a company. Such strategies clarify grand strategy by providing more specific details about how key functional areas are to be managed in the near future.” According to Thomas Wheelan and David Hunder, “Functional strategy is the approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity. It is concerned with developing and nurturing a distinctive competence to provide a company or business unit with a competitive advantage. Just as a multidivisional corporation has several business units, each with its own business strategy, each business unit has its own set of departments, each with its own functional strategy.” Thus, a functional strategy is a set of decisions and actions managers make and take to attain superior competency in business functions in accordance with the corporate and business-level strategies. Once corporate and business-level strategies are developed, management must turn its attention to formulating strategies for each business unit’s functional areas. Functional Strategy – Concept 'A company's short-term game plan for a key functional area is called a functional strategy.' It is a practical area's approach to achieving corporate and business unit priorities and objectives by maximising resource efficiency. It is associated with a fairly narrow plan that describes the objectives for a specific function, allocation of resources among different operations within that functional sector, and collaboration facilitation between them in order to contribute optimally to the achievement of business and corporate-level goals. Functional plans, which provide more comprehensive details about how major functional areas will be addressed in the near future, clarify corporate and business strategies. The goal of functional strategy is to develop and cultivate a distinct competence that will provide a competitive advantage to an organisation or business unit. Functional strategy is concerned with a particular functional task and the tasks that go along with it, as the name suggests. Decisions taken at this level of the company are often referred to as tactical decisions. Such decisions are driven and limited by any overarching strategic considerations. In terms of strategy formulation phases, functional strategies come after SBU or business-level strategies. Within functional strategies, there may be various sub- functional areas. Higher-level strategies and guidelines are defined at the top of an organisation, and practical strategies are formulated within that framework. Advertising, sales, delivery, and pricing strategies, for example, can all be subdivided into marketing strategies, with each sub-functional strategy contributing to the overall functional strategy. The parent business unit's approach guides the functional strategy. A business unit that wants to distinguish itself from the competition by providing a high-quality product or service, for example, needs a functional operating plan that prioritises quality assurance processes over low-cost, high-volume production. A human resource functional strategy, on the other hand, focuses on attracting and developing a highly skilled, but costly workforce. A marketing functional strategy that prioritises \"pull\" through advertising to increase consumer demand over \"push\" through retailer promotional allowances to increase customer demand. 85 CU IDOL SELF LEARNING MATERIAL (SLM)

If a business unit pursues a low-cost competitive strategy, however, it will require a specific collection of functional strategies to support the business strategy. Functional strategies are required in marketing, finance, production/operations, R&D, and human resources. They must be consistent with long-term objectives and the overall strategy. Functional methods assist in the implementation of the grand strategy by organising and enabling different subunits of the company to implement the corporate plan in day-to-day operations. In a sense, functional approaches transform a grand strategy into action aimed at achieving specific annual goals. For each major subunit of an organisation, functional strategies identify and organise activities that promote the grand plan and improve the likelihood of achieving annual targets. Functional strategies are important for executing organisational and business strategy. To increase the probability that these strategies will be successful, more detailed guidelines for the business's operational components are needed. As a result, functional strategies help organisational managers grasp the business strategy and provide specific short-term guidance. A major task of plan execution is aligning or matching an organization's practises and expertise with its goals. At different levels, strategies operate, and there must be consistency and coordination between them. This congruence can be seen in the vertical fit. And there must be continuity and synchronisation among the different simultaneous activities. This is how the horizontal fit appears. Reasons why functional strategies are needed: Functional plans advise functional managers what they need to do in their areas to meet the company's goals. The following are some of the reasons why functional strategies are needed, according to Glueck and Jauch. The reasons why functional strategies are needed can be enumerated as follows: i. Seeks to make top-level management techniques operationally viable at the practical level. ii. Ensure that strategic actions are communicated to all aspects of an enterprise. iii. The foundation for managing operations in various functional areas. iv. Functional managers spend less time making decisions since – a. Proposals set out exactly what needs to be done, and b. Policies provide a discretionary system in which decisions must be made. v. Assist in the creation of unity and coordination, as they remain an important component of major strategies. vi. The functional managers treat identical circumstances in different functional areas in a consistent manner. Functional strategies play two important roles: i. They help in the execution of the overall company plan. ii. They explain how functional managers can interact to maximise efficiency in their respective functional areas. 86 CU IDOL SELF LEARNING MATERIAL (SLM)

Some important features of functional strategy are as follows: • It focuses attention on what needs to be done right now in order for the grand plan to succeed. • It is more specific and action-oriented since it clearly describes what needs to be done in each functional setting to accomplish the organization's goals. • A company's position, department, or division is referred to as functional strategy. • It must be in line with the overall strategy of the organisation. • In order to achieve organisational and business unit targets, it maximises resource usage. • It's a strategy for managing a company's main subordinate activity. • The aim of functional strategy is to develop and cultivate a distinct competence that will provide a competitive advantage to an organisation or business unit. • The parent business unit's strategy determines the functional strategy's orientation. • The practical strategy continuum is broader than the company strategy spectrum. It outlines the activities, strategies, and procedures that will be used to manage a particular purpose and offers relevant details of the overall business game plan. • It varies from one spot to the next. • Rather than concentrating on their own targets, practical solutions should cooperate. They must be in line with long-term objectives and a master plan. • The overall organisational approach must be related to each of these functional strategies. • The application of these policies necessitates a variety of functional-level policy decisions. • The external world is often stressed in these functional strategies. • Practical tactics aid in the execution of the grand plan. These are the individuals in charge of putting grand strategy into action. • There may be several sub-functional areas within functional approaches. • Practical approaches are developed with higher-level instruction in mind. • Detailed examples of the \"means\" or activities that can be used to accomplish short-term objectives and obtain a competitive advantage are presented. • A practical approach assists corporate-level strategy by assisting business-level strategy. Importance of Functional Strategy Every company today faces challenges in maximising capital such as financing, manufacturing facilities, technology, and marketing opportunities across functional areas. Functional managers need strategies to optimise opportunities and recognise growth opportunities. They need a strategic perspective on their field decisions. The importance of functional strategies is pointed out under the following headings: 1. Help in Operation of Business Functions: Functional techniques assist in the execution of different functional tasks. A finance manager, for example, must make decisions about funding options, project deployment, capital cost reduction, and the acquisition of another business. He also needs to make strategic decisions on 87 CU IDOL SELF LEARNING MATERIAL (SLM)

how to handle working capital, including receivables management, factoring, payables management, inventory strategy, and treasury management. Similarly, a company may use a variety of strategic initiatives to handle its human resource role. Managers must maintain a strategic perspective on a number of roles. A variety of strategic concerns are also involved in the production and operations management function. 2. Managerial Road Map: Thompson and Strickland write, “A company needs a functional strategy for every major business activity and organisational unit. Functional strategy, while narrower in scope than business strategy, adds relevant detail to the overall business game plan. It aims at establishing or strengthening specific competencies calculated to enhance the company’s market position. Like business strategy, functional strategy must support the company’s overall business strategy and competitive approach. A related role is to create a managerial road map for achieving the functional area’s objectives and mission.” 3. Help in Implementation of Grand Strategy: Pearce and Robinson state that “functional strategies must be developed in the key areas of marketing, finance, production, R&D, and personnel. Functional strategies help in implementation of grand strategy by organising and activating specific subunits of the company to pursue the business strategy in daily activities.” 4. Decisional Guides to Action: Functional methods are used to direct and transform thinking into action in order to achieve particular annual goals. As a result, functional strategies can be thought of as decisional guides to action that allow strategies to operate. They provide practical short-term advice to operating managers and staff, resolving several overlapping concerns and problems. 5. Improves Effectiveness and Efficiency and Creates Super Profitability: It's worth noting that functional strategies are aimed at enhancing a company's operational effectiveness and, as a result, its ability to achieve superior performance, quality, creativity, and customer responsiveness. The relationships between functional strategies, distinctive competencies, differentiation, low cost, value development, and profitability must be kept in mind. We can see how functional-level strategies can help an organisation develop resources and skills that increase performance, quality, and innovation. As a result, low cost, high value, and high profitability are achieved. 6. Builds Competitive Advantage: Functional strategies may boost a service's performance, dependability (quality), and customer responsiveness. As a result, they can be used to build a long-term competitive advantage. Functional techniques can improve activity performance and, as a result, reduce costs. In 88 CU IDOL SELF LEARNING MATERIAL (SLM)

reality, functional strategy is concerned with the development and nurturing of a distinct competence in order to provide a competitive advantage to an organisation or business unit. Other Benefits of Functional Strategies: i. They help organisational staff recognise their role in the company's mission. ii. The process of creating them becomes a medium for discussing and resolving strategic intent-operational reality conflicts. iii. They serve as a foundation for designing budgets, plans, trigger points, and other strategic control mechanisms. iv. They have the potential to be effective motivators, particularly when linked to a reward system. 6.3 RECRUITMENT & RETENTION STRATEGIES Human resource roles such as recruiting and retention necessitate strategic thinking and planning. The value of talent management, a division of human resources that involves recruiting and retention, to the success of your business cannot be overstated. The talent, experience, and energy of your workforce are the most valuable assets of your company. Recruiting and attracting top talent can only help to increase the value of the assets. Recruiting Qualified Applicants Professional groups, conferences, and other events that offer the employment specialist and the business the most publicity improve the profile of employment specialists who find innovative ways to hire the most talented candidates. By proving to the world that your business is an employer of choice, the best candidates will have done their homework on your company and will be spending their time wisely considering a career with you. Another way for career specialists to find skilled and eligible candidates is to host or participate in a job fair that is commonly promoted as a promising event for job seekers. Hundreds of people attend several jobs fairs these days, demonstrating effort and inspiration in their quest for the right job. A qualified candidate possesses the technical skills required for a position with your company; however, the best candidates are those who conduct a detailed and meticulous job search. There are also ways to entice prospective candidates to apply. Employers will provide sign-on incentives when there are worker shortages or shortages in unique occupations. You don't want your investment in a new employee to go down the drain after just six months of employment, so the traditional sign-on bonus includes a promise to remain with the company for a minimum period of time. If you want to pay a premium for candidates you believe you can't live without, think twice about your recruitment strategy. Retaining Talented Employees 89 CU IDOL SELF LEARNING MATERIAL (SLM)

Because of the type of strategy required in maintaining workers who you believe add value to your company, this is possibly one of the trickiest ventures on which a small business can embark. Developing a retention plan necessitates advanced knowledge of which workers are more likely to leave and which are the most important to the company. Bonuses and career advancement are examples of retention benefits. Your retention policy can also include succession planning. Identify the most talented workers who display aptitude for scaling the organization's ladder if your human resources department is putting together a succession plan. Salary changes are another retention tactic, but it's difficult to make the case when employee compensation is changed in ways that can't be justified in the event of queries. Raising the wages of workers, you want to keep simply because you want them to stay with you will backfire and isn't the best way to keep them. Your company can be falsely accused of discriminatory hiring practises depending on the workers you wish to keep by pay increases. For more detail on the Equal Pay Act of 1963 and the Lilly Ledbetter Fair Pay Act of 2009, contact the United States Equal Employment Opportunity Commission. Compare the costs of keeping certain workers with the expense of hiring new ones. It could be a smarter idea to recruit for a replacement and assume the expense of hiring for workers you are uncertain about keeping. Cellular Organizations: These are associations of small technology-oriented businesses that have remained connected over time. The people who work for these businesses are experts in their fields. When specific skills and expertise are needed, subsets of the organization's companies join forces on different projects. Depending on the project, one firm will take the lead. Companies may also participate in programmes to learn about emerging technology. Professional competence, cross-functional experience, collaborative leadership, self- management skills, and versatility are all necessary managerial skills. Respondent Organizations: These are for-profit businesses that provide unbundled businesses with personalized services. Decision-making is swift and likely to be maintained at the level of the central entrepreneurial figure in such businesses. These are high-risk endeavors with a high failure rate. Exposure to emerging technology, financial gain, and development as a generalist are all potential benefits of working for these companies. The lack of participatory decision-making in such organizations is a significant drawback. 6.4 TRAINING AND DEVELOPMENT STRATEGIES Training new and current employees can be a major challenge for a company, particularly in today's fast-paced business climate. Training and growth of our teams became crucial while I was the chief human resources officer at the Mirage and Wynn resorts in Las Vegas. But this isn't the case at many businesses, where convincing executives to invest in training and growth is a constant fight. 90 CU IDOL SELF LEARNING MATERIAL (SLM)

Here are seven main steps to take when designing and upgrading a successful training and development programme. 1. Compare yourself to the competition. Before committing to fund a new initiative, business leaders always want to see what the competition is up to. They're curious if you're doing more or less than they are. This is particularly true when it comes to training and growth, which is why networking with professional colleagues and organisations like the Society for Human Resource Management and seeing what others are doing is beneficial. Begin by looking at what customers are saying about you and your rivals on social media sites; this would expose information about customer loyalty and expectations, which could aid your request for new training and development. Then there are the online surveys you collect on a regular basis from vendors. Fill them out to receive the report at the end of the review. This is the type of information you'll need to support your request for a new training programme. When working on the Mirage strategy, we asked other start-ups what they did, what they would do differently if given the chance, and what they would do differently if given the chance. The majority of the companies we contacted were happy to share details with us because they were not in our target market. We talked with over 250 other businesses who had recently launched new projects, and the most popular thing we heard was the importance of recruiting new employees. They reminded us that companies, like individuals, don't get a second chance to make a good first impression. We made useful connections as a result of the benchmarking research, and many of those connections have continued to share information with us—to our mutual gain. 2. Survey your employees Your current staff are the best source of knowledge about the organization's success and needs. They know a lot about what's going on and what can be modified, if anything. They'll be thankful for your interest and will give you useful input on what could be changed or eliminated. We conducted focus groups to determine what current workers desired and needed. They wanted to know what was required of them, why it was necessary, and how they could accomplish it. They desired to be taught by someone who was experienced in the area. We chose supervisors or exceptional employees and taught them to be teachers, so they would know what to train and how to make it interesting, important, and enjoyable. 3. Align training with management’s operating goals Improvements in performance, productivity, quality, and customer satisfaction, to name a few, are among management's organisational priorities. Once you know what your goals are, you can create customised initiatives. Look for people in your company who have needs that could 91 CU IDOL SELF LEARNING MATERIAL (SLM)

be fulfilled with training: Supervisory skills training that enhances employee happiness would be sponsored by the majority of departments. Most departments will support supervisory skills training that promotes employee satisfaction, while legal will generally support compliance training, marketing and sales will support training that promotes quality and consistency, and most departments will support training that promotes quality and consistency. Create onboarding procedures and preparation for new hires to ensure that they are well- informed and focused on company values and customer satisfaction. Work with regulatory bodies including the Occupational Safety and Health Administration, the Department of Labour (wage and hour compliance), and the Department of Justice for enforcement training (harassment and discrimination training). Seek assistance with the development of your supplies. Consider hiring teachers from your city's public schools and community colleges. They've received instructional design training and can collaborate with subject matter experts at your company to create practical and technical training materials. Managers should be taught how to improve their communication and coaching skills, as well as how to teach a multigenerational workforce effectively. 4. Run it like a business A strategic plan is the cornerstone of every new company. Make sure your preparation initiative has a schedule that contains all of the classic elements: Make your intent and proposed deliverables crystal clear. Demonstrate that you appreciate the scope and depth of your proposal. Include a SWOT (Strengths, Weaknesses, Opportunities, and Threats) review to aid in determining the best training options. Make a budget that is realistic. Make sure to factor in all costs and be conservative (better to under promise and over deliver). Include a breakdown of the benefits to the company so that everyone is aware of the return on their investment. Know your numbers. Work closely with the company's financial team to decide what information should be used and how it should be presented. Promote the programme as if it were aimed at paying customers. Use the public relations, graphic design, and marketing departments to brand and advertise the programme, and create surveys for participants to provide input. Conduct a series of pilot classes to ensure that your approach is successful. Trial runs aid in finding flaws and allowing you to fine-tune and develop the software to the degree that everyone wants and requires. 5. Weave it into your company’s culture 92 CU IDOL SELF LEARNING MATERIAL (SLM)

Consider a “lifelong training” philosophy that focuses on employee happiness if you want satisfied workers. Offer priority to workers who completed training and performed well while making promotion decisions. One of the incentives for their contributions should be a promotion. It also addresses the question, \"What's in it for me?\" asked by the employee. Celebrate your victories and milestones. Notify others in the business when someone has finished training and what this means for their job prospects. Internal communications should promote the activities and participants, and you should show their photos and stories at any employee meeting. Increase employee participation by providing more ways for them to participate. They could be coaches or subject matter specialists, or they could help assess and improve their new colleagues' training. 6. Keep innovating I've seen significant advancements in the content and delivery strategies of training and development programmes over the course of my career. We used what was available at the time to open the Mirage: slide projectors, white boards, and first-generation copies of handouts. We developed into PowerPoint presentations, more appealing and practical graphic workbooks, and digital editing as time and technology advanced. I hired a lot of \"experts\" to help me develop our training, but in the end, I discovered that what our managers really needed was help putting their subject knowledge into a training and learning framework that they could understand. We used a public school. Supervisors should be given training on how to develop their communication and coaching skills, as well as how to better prepare a multi-generational workforce. Teachers to assist in the production of our instructional materials and manuals. Our children are taught by educators who have been qualified to do so. They enjoy working during their vacations and can be found in any city. They became a tremendous source of talent for designing our instructional materials and updating them on a regular basis. And as we all become more familiar with technology, the need to embrace new ideas grows. Apps, games, and simple video and editing tools are now available to stream to mobile devices. We continue to research the most recent developments online, network with other organisations and training practitioners, and revise our programmes to incorporate the most current best practises. 93 CU IDOL SELF LEARNING MATERIAL (SLM)

Consider using GoPro or other handheld cameras to capture messages and then uploading them to YouTube. On both desktop and mobile computers, these videos are easily accessible via the Internet. 7. Measure results Successful businesses monitor their results to ensure they continue to get the most bang for their buck. The most important interventions are the most basic; include them in the curriculum so that everyone knows what to expect. We dubbed them \"corresponding habits,\" which are behaviours you'll search for and test on the job to see whether workers have learned how to work properly. Employees would not be surprised in this manner. We instructed managers who had previously served as trainers to review employees' results multiple times during their onboarding period, and to offer positive input and coaching to let employees know how they were doing in real time; again, maximum feedback and no surprises. While designing and upgrading the training and growth programmes at the Mirage and Wynn resorts, we learned a lot. And most importantly, preparation was the most effective way to ensure that our commitments of quality and excellence to employees and visitors were kept. 6.5 PERFORMANCE MANAGEMENT STRATEGIES Working in Human Resources (HR) entails a significant amount of performance improvement regulation. It's not easy to create an environment where you and your staff can deliver outstanding work and perform to their full potential, but with the right tactics, you can make it happen. Of course, successful performance management entails more than just maintaining a positive work environment: Leadership, collaborative relationships, positive feedback, and collaboration are all important aspects of effective performance management. And when it comes to the tough HR tasks of managing a process that the employees don't like or respect, managing a paper process, aggregating data, and keeping other managers motivated to provide valuable input to employees, there are tactics that can help. Whatever problems you face at work, we have some ideas to help things run more smoothly and efficiently. Consider the six performance improvement techniques listed below. A Wide Scope of Resources Before we get into the six performance management tactics, it's important to understand all that comes under the category of performance management: • Setting job performance goals and preparing ways to reach them 94 CU IDOL SELF LEARNING MATERIAL (SLM)

• Using check-ins and meetings to keep track of employee performance • Rewarding and celebrating good performance while also discussing bad performance. • Using summaries and feedback to rate results on a regular basis • Constantly improving one's ability to perform at a high level These metrics, also known as \"performance assessment,\" ensure that a company is performing at its optimum and delivering the best services and results possible. Successful performance management can ultimately contribute to the growth and success of the company. Performance Management Strategies 1. Define and Communicate Company Goals and Performance Objectives Your employees cannot meet your performance expectations or company goals if they are not clearly outlined, making this our first step toward effective performance management. Sometimes employers are not as clear as they could be when outlining their goals or company objectives, and often, employees do not come forward to ask follow-up questions when they are confused or unclear about something. Pre-empt this pitfall by being as clear and communicative as you can possibly be. You can define and outline goals by using a goal-tracking software, creating a chart within the office, by sending out an e-mail, distributing a flyer throughout the office, holding meetings, or doing each of these things in turn. When you are outlining goals and objectives, repeat the message so that it sinks in, offer visuals (such as an office chart and e-mail) so that employees have a reference, and most importantly, hold meetings to check in on progress. 2. Utilize Performance Management Software If you're not still using performance improvement tools, now may be a good time to start. If you already have one and it isn't saving you time, your team is complaining about it, or employee morale is poor, it's likely outdated and in need of an update. Performance management tools will greatly simplify the performance management tactics, so you can either start using one or start searching for ways to update. A successful performance management software system includes conventional reviews as well as 360-degree feedback, is user-friendly, provides an easy-to-use dashboard interface, allows for fast and actionable reporting, and, of course, fosters employee growth. The app will assist you and your staff in staying on top of things at all times, ensuring that your business runs smoothly and efficiently. Here are some useful examples of more advanced performance management applications. 3. Offer Frequent Performance Feedback 95 CU IDOL SELF LEARNING MATERIAL (SLM)

Although communicating company and individual objectives clearly is an important step in any sector, communication alone will not get you very far. Your managers will also need to check in with teams and staff on a regular basis to assess progress and provide input. Good performance feedback strengthens strong skill sets and healthy habits while still highlighting areas for change with a consistent direction. This kind of feedback can't wait until HR begins the annual review process. Instead, it should be provided in real time and incorporated into the culture of the business (it should also start during the interview process, but that is another post for another time). Timely performance feedback is the most efficient way to affirm the workers and their work while also successfully influencing it. If you already use performance software, it should be able to assist you in collecting regular feedback. If not, free resources such as Google forms, Survey Monkey, or even a simple e-mail request would suffice. 4. Use Peer Reviews Peer reviews, also known as 360-degree reviews, are another perfect way to promote successful performance management. This is another functionality that most performance improvement software systems provide. Peer reviews are helpful because they enable colleagues to complement one another and highlight positive aspects of their work, as well as identify areas for improvement. When watching their peers, this exercise allows employees to communicate, enhance communication, and determine where they can improve. This process should be overseen by a manager or HR professional, and all peer feedback should be read to ensure that no arguments, complaints, praises, or other comments go unheard or unanswered. 5. Pre-emptive Management and Recognition Incentives and pre-emptive vigilance are two strategies for ensuring productivity in the workplace. This effectively means that employees already know what is expected of them, eliminating the need for guesswork or workplace repercussions. This places all on an equal basis and establishes a level playing field with clearly defined expectations and objectives. Bonuses and other forms of compensation are another good way to show employees that you care for them, that you accept and support their efforts, and that you want them to keep doing what they're doing. Similarly, putting in place a strong \"HR Toolbox\" that assists supervisors in catching slipping employees early and providing enough feedback will help prevent a problem from arising. \"Pre emotive Management\" in this sense refers to working with employees and informing them of what is expected of them, what is not, and how to achieve the goals set. Your employees would be unable to meet the performance expectations or organisational objectives if they are not explicitly defined, since this is the first step toward effective performance management. Employers aren't always as transparent as they can be when it comes to describing their goals 96 CU IDOL SELF LEARNING MATERIAL (SLM)

or company objectives, and employees don't always come forward and ask follow-up questions when they're uncertain about anything. To avoid falling into this pit, try to be as transparent and honest as possible. To define and outline goals, you can use goal-tracking software, create a map of the workplace, send out an e-mail, distribute a flyer throughout the office, host meetings, or do all of these things in turn. When communicating goals and objectives, make sure to reiterate the message, provide graphics (such as an office map and e-mail) so that workers can connect to them, and, most importantly, hold meetings to track progress. 6. Set Regular Meetings to Discuss Outcomes and Results Setting aside time to meet with the team and see how things are going with your defined goals and objectives, also known as progress reports or progress meetings, is critical to achieving those goals and objectives. These meetings may be held on a weekly, monthly, or as-needed basis. Make sure everyone on your team understands that attendance is needed. This improves the accuracy of the progress reviews and helps you to make plans for the future. Make sure you have a good picture of what you want to discuss during these meetings. The following are some goals to consider: • Following Up on Peer Recommendations • Talking with the team about praises and areas that need improvement. • Rewarding or incentivizing team members who are actively meeting their goals and objectives. • Reviewing Project Proposals for the Next Step • Addressing company data such as sales, customer engagement, marketing and programme performance, and so on. You can never meet for the sake of meeting. You want to bring up a subject that is both interesting and worthwhile to explore. If you believe things are going well, staff are receiving and acting on performance reviews, and the organisation is on the right track, meetings can be held less often and used as checkpoints during the year. Have meetings as soon as possible if you have problems, complaints, questions, or ideas to share. Having your staff engaged, aware, and in the loop is crucial to ensuring the smooth running of your organization's machine. These six performance improvement techniques can seem basic, but when introduced into the company's daily operations, they can work wonders. Businesses should be for the people who work there. Making the most of their talents, knowing where they excel, helping them where they need help, and seeing them as complete workers rather than cogs are all ways to build a successful work environment. 97 CU IDOL SELF LEARNING MATERIAL (SLM)

6.6 SUMMARY • HR management used to be primarily an administrative role concerned with day-to-day tasks such as employee recruitment and selection and benefit administration. • HR business plans that include hiring and retaining the best employees, as well as offering ethical and cultural leadership, are necessitated by shifting labour market demands and new business thinking. • Strategic planning poses both obstacles and opportunities for HR practitioners. • Almost all HR leaders of the world's largest corporations are active in strategic decision- making and serve on the strategy committee, and the majority of HR practitioners say strategic planning is part of their job. • HR practitioners, on the other hand, are rarely active in operational or practical strategic planning in many medium and small businesses. As a result, some HR divisions can need to reassure senior management of the importance and commitment HR can provide in order to achieve long-term strategic HR goals and be a key player in the organization's strategic planning process. 6.7 KEYWORDS • SWOT (Strengths, Weaknesses, Opportunities and Threats) • Functional Strategy – Concept a functional strategy is the short-term game plan for a key functional area within a company • Corporate Strategy – It is a strategy for the company and all of its businesses as a whole. • Business Strategy – It is a strategy for each separate business the company has diversified into. • Functional Strategy – Then there is a strategy for each specific functional unit within a business. Each business usually has a production strategy, a marketing strategy, a finance strategy, and so on. • Operating Strategy – And finally, this is a still narrower strategy for basic operating units 6.8 LEARNING ACITIVITY 1. Visit the BPO service industry and collect the data on Retention Strategies ____________________________________________________________________________ ____________________________________________________________________________ 2.Visit the manufacturing industry and collect the data on Training and Development Strategies 98 CU IDOL SELF LEARNING MATERIAL (SLM)

____________________________________________________________________________ ____________________________________________________________________________ 6.9 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Describe the different types of HR strategies. 2. Offer a brief description of Recruiting and Retention Methods. 3. Provide a brief overview of the training and growth methods. 4. Define Performance management 5. Offer a brief description of the performance improvement techniques. Long Questions 1. What are the goals of performance appraisal? 2. What do you understand by industrial relation? 3. Briefly explain the importance of discipline 4. Discuss the basic objective of human resource management effectiveness 5. What do you mean by Human Resource Department? B. Multiple Choice Questions 1 Human Resource Planning is a part of the____________ organization's feature. a. operational b. managerial c. analytical d. planning 2 HRM does not have an operating ________role. a. HRP b. HRIS c. employee safety d. employee engagement 99 CU IDOL SELF LEARNING MATERIAL (SLM)

3 The workers' safety and health concerns do not include_________ a. maintaining temperature in workplace b. air flow c. dress code d. hazardous 4______________ roles are those that are needed to strengthen an employee's ability and knowledge. a. developmental b. managerial c. operational d. None of these 5 HRM's development roles include: a. HRD b. T &D c. TQM d. All of these Answers 1- a,2- d,3- c,4- a,5- d 6.10 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 100 CU IDOL SELF LEARNING MATERIAL (SLM)