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Chapter
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ANNOTATED OUTLINE
INTRODUCTION
Organisations are open systems and are, therefore, influenced by the environment (internal as well as external ) in which they operate.
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Consequences?
Cuts payroll expenses Eliminates extra layers Improves functioning if firms product and service profile is good Shocks those left out Shattering impact on employee motivation and morale if not managed properly
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Do it right the first time Be customer oriented Make continuous improvement a way of life Build teamwork Empower people Create a climate of trust, an atmosphere for innovation
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The Total Quality HR Approach is all about employee participation and empowerment, carried out in a sincere and wholehearted manner. Rewards are designed to meet employee needs. Employees are treated like customers. 360 degree appraisals are carried out before picking up the best performing teams. Small ideas and improvements are encouraged.
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3. TELCO (Lucknow)
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Benchmarking
Effective implementation of TQM requires benchmarking. The essence of benchmarking is striving to be the best of the best in ones area of operations. It is a continuous process of measuring products, services and practices against the toughest competitors or industry leaders with the aim of mutual improvement.
Reengineering
The primary focus of TQM is on continuous improvement or ongoing incremental change. Reengineering is all about achieving this. Actually speaking, reengineering takes place when more than 70 per cent of the work processes in an organisation are evaluated and altered. The focus is on simplifying operations and making them more efficient and customer oriented.
HRM In A Dynamic Environment
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Essentials of reengineering
Give people a mission; a clear view of how to achieve that mission. Either serve the customer superbly or dont even try. Change is the way of life. It is not a process, it is a value. Technology is never really a problem. The problem is how to use technology effectively. The wrong answer rarely kills you. What it does is waste time. The weak link in reengineering is will. Once people catch on to reengineering, you cant hold them back. Its a lifetime opportunity. In India TELCO, TISCO, L&T, Ranbaxy and Crompton Greaves have successfully brought about radical changes through Reengineering.
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Utilise people with distinctive capabilities to create unsurpassed competence in an area (Xerox in photocopier, 3M in adhesives, Telco in trucks, Britannia in biscuits, Nestle in coffee, McDonalds in fast foods, etc.). Decentralise operations and rely on self managed teams to deliver goods in difficult times (Motorola is famous for short product development cycles. It has quickly commercialised ideas from its research labs). Lay off workers in a smooth way, explaining facts (IBM, Kodak, Xerox, AT&T, Steel and Textile firms in India etc.) to unions, workers and other affected groups. HR generally plays a key role, these days, in planning and implementing corporate downsizings, and then in maintaining the morale of the remaining employees.
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Political factors
Political stability Formation of new political parties Influence of politicians over Productivity linked wage agreements Political parties sympathetic to trade unionism Opposition to VRS schemes, downsizing operations, restructuring exercises. Freedom to show the door to unwanted people
Social factors
Conducting business in a socially relevant and responsible way. Hire qualified people or hire inexperienced local people and train them to avoid trouble? Helping economically poor people, unemployed, underprivileged ones, etc.
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Trade unions
Demands for higher wages, better working conditions, incentives, benefits, services
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In order to benefit from diversity, managers should recognise the potential concerns of employees and make sure that the exchange between the organisation and employees is mutually beneficial and satisfying.
HRM In A Dynamic Environment
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