Assignment-A
Q. 1 There are five key elements in strategy i.e., leading, positioning the company, deploying resources, securing competitive advantage and being successful in the environment specific to each organisation. How do you apply these elements to HRM?
Ans: Strategic Planning is the process which helps leadership mould or organisation’s future and manage change by focusing on an ideal vision of what the organisation should and could be 10 to 20 years in the future. The leaders are (CEO or the decision-makers) engaged in leading the organisation in a direction and in a manner intended to secure advantage over competitors in pursuit of the organisation’s mission strategy.
The result of strategic planning has 5 key elements:

Leading

Positioning the company

Deploying resources

Securing competitive advantage

Being successful in the environment specific to each organisation.
These elements may be further categorized into 3 main areas:
1.
The Strategic Process - Planning and Implementation (Positioning the company securing competitive advantage and deploying resources).
2.
The leadership (Actions of the individuals; Who direct the company).
3.
Organisational effectiveness (Securing success in a specific environmental contexts).
An example can here be given of Xerox Corporation, which experienced a rapid growth through the 1960’s after introducing the Copier 914, which was called “The most successful business product even introduced” they reached $1 billion in revenue faster than any other company. They could sell all they produced. And they thought and knew what the customers needed.
Xerox began to loose its market share in the 1970’s to the Japanese who entered in the market with cost-competitive machines. Xerox began a process of benchmarking for its product’s and process with its competitors. The results shocked the top management. Xerox had 10 times as many assembly line rejects as their Japanese competitors, twice the product lead time, 9 times as many suppliers and 7 times as many defects peer hundred machines. Most starting was that their unit manufacturing cost equaled the selling price of their overseas competition in 1983. President Davit Keans convened the company’s top 25 managers. As a result this meeting, they agreed to focus on quality as the main strategy for running their business.
1.
Quality Principles:

Quality as the basic principle for Xerox in its leaders position.

An understanding of customers existing and latest requirements.

Products and services that meet the requirements of all essential and internal customers.

Employee involvement through participation problem solving in improving quality.

Error free work as the most cost effective way to improve quality.
2.
Management Actions and Behaviours:

Assuring strategic clarity and consistency.

Providing visible supportive management practices, commitment and leadership.

Setting quality objectives and measurements of standards.

Establishing and reinforcing a management style of openers, trust, respect, patience and discipline.

Developing an environment in which a person can be responsible for quality.
3.
Quality Tools:

The Xerox quality policy.

Competitive benchmarking and goal setting.

Systematic defect and error-prevention processes.

Training for leadership through quality.

Communication and recognition programs that reinforce leadership through quality.

A measure for the cost of quality (Or its lack).
 Xerox, further used the term “reaffirmation strategy” to emphasize that the company stood firmly behind the basic leadership.
Through quality plan but the adjustments were needed to broader the concept that letter integrated TQ into all aspects of daily business operations. Xerox is identified two critical objectives: (1) Profitable revenue growth and (2) World-Class productivity.
 The HRM now look upon itself the initiative to lead the organisation. The HR strategy, which flowed out of the business strategy had to keep the human aspects arising is the changing scenario.
Page No: (1) IMT-62 Strategic HRD

 The focus now shifted from the role of a support intermediary to strategic HR. The new role is that of partners in business.
So, HR at Xerox used more than 60 specific process improvement initiatives, employee involvement programs and quality tools to manage its business. It also used range of business policies and approaches quality intensification efforts and benchmarking. These elements were integrated into Xerox 2000.
 HRM, further look upon itself to seek, identify and architect to business leaders of tomorrow. An effective succession plan enables the company to identify and prepare the right people for right positions at the right time to assure similar continuity in leadership at all levels.
 To improve the match between individuals and jobs, and the satisfaction of the employees with their jobs and with the corporation as whole description information about what each job needs to accomplish in terms of quality and quantity up-todate job descriptions are essential not only for proper employee selection, appraisal, and training and development for wage and salary administration.
 For labour negotiation but also for summarizing the corporate human resources in terms of employee-skills categories. It also used the employee profits to ensure that it has the right mix of talents to implement its blamed strategies.
 Thus, the management leadership at Xerox displayed a customer focus, exhibits a role model behaviour, establishes clear long-term goals and annual objectives, establishes strategic boundaries and provides an empowered environment to achieve world class productivity and business results.
 The HRM at Xerox leads, motivates, trains, develop and empowers people to realize their full potential. All employees are personally responsible for continuously learning and acquiring competencies required to achieve business objectives and to continuously improve productivity for customers and Xerox.
 The business processes were further designed to be customer driven, cross-functional and value based. They create knowledge eliminate waste and abandon unproductive work, yielding world-class productivity and higher perceived service levels for customers.
 Fact based management, which is led by line management. This was achieved through accurate and timely information and by the disciplined application and widespread use of quality tools.
 Thus, by fully anticipating and satisfying these requirements through the creation of customers value, and the strategic role of
HRM, which integrated well its business plans, Xerox achieved its business results and using this strategy as a guide, HRM at
Xerox is busy preparing its results, productivity and quality performance.
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Q. 2 Movement from ‘control to commitment’ represent a paradigm shift in management though! Comment.
Ans: The
‘Commitment’
System marks shift societal values away from traditional authorities and compliance. It is an attempt to replace the control orientation, which characterised the earlier systems. Its radical difference lies in that if aspires to promote mutually of interest between employer and employee through altering the relationship by increasing the autonomy, responsibility. The common threats of the new policies is first to elicit employers commitment and then to expect effectiveness efficiency to follows secondary outcomes. a) ‘Policy characteristics of the ‘Control-based and ‘Commitment-based’ HRM systems plus the number of shifts will given the precise number of men required for manning the equipment. A time study or work-study may reveal that although one individual looks and after one machine, the actual time spent on operating it is much less and his idle time could be employed in looking after more than one machine on doing some other job. b) HRP and forecasting the manpower inventory would be further assisted by information on current level of absenteeism and likely future trends. An intention to become a total quality organisation cannot be achieved with continuing levels of absenteeism. (Some 35% of working time lost to absenteeism can grounds of sickness) in the U.K. in 1994. c) Labour turnover is also influenced by pressure both within and outside the organisation.
The variables, which affect the labour turnover, are: i.
Organisational Level:
Organisation Structure
Job Design
Job Stress
Rewards/Pension Plans
PMS ii.
Group Level:
Group Demographics
Group Cohesiveness iii.
Individual Levels:
Age, Tenure
Marital Status
Personality – Job Fit
Job Satisfaction iv.
Intention to …Search for alternatives.
v.
Information about …Other jobs available to the employees.
vi.
Economic and Market Conditions.
Measurement of all these variables as mentioned above not only helps in forecasting and makes planning possible, but also provides the basis for action – policies/procedures/programs to retain the employees. This will bring down costs, improves the productivity and contribute to total quality. d) The survival curves (which show the duration of service profiles and the no. of employees) will show up very clearly the no. of employees who are most likely to retire over the next 10 years, thus, providing an input in plans for further recruitment and training (say for police force, army, many etc.). e) To cite an example, out of ten buses use by a company, only nine may be operated, the tenth being kept in reserve. In this case, it is not necessary to man all the ten buses. Manpower planning will have to take into account the number of equipments in active use rather than the numbers installed. f) In India where the productive capacity is being underutilized in the manufacturing concerns, it also is an important factor to be considered in HRP. g) Through job analysis, strategic HRP further assists in determining the skills and responsibilities required by a specific position, which would reduce ambiguity in the job. h) Knowledge of the work content assists in balanced allocation of manpower. It facilitates allocation of the same team strength to a labour force for a given productive unit. The work content is generally determined by time study or activity sampling. i) It will further provide a ration analysis of supervisions to workers at different levels trades and skills. j) Forecasting the external supply. k) HRP needs to take account of 3 aspects of labour market trends – the national trend local HRM System.
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“Policy characteristics of the ‘control-based’ and ‘commitment-based’ HRM systems”
Policy Area Control-Based
Job design principles

Sub-division of work

Specific job responsibility

Accountability for specific job responsibility

Planning separated from implementation
Management
Organisation
Compensation
Assurance

Top-down control and co-ordination

Management prerogative

Status symbols

Hierarchy
 Fair day’s work for fair day’s pay

Job evaluation

Individual incentives

Labour a variable cost
Employee Voice
Labour management relations
Management philosophy

Unionized (damage control, bargaining, appeals process)

Non-union (open door policy, attitude surveys)

Adversarial

Management prerogative
 Management’s exclusive obligation to shareholders
Commitment Based

Broader jobs

Combined planning and implementation

Teams

Flat structure

Shared goals for control and coordination

Status minimised

Reinforcing group achievements

Pay geared to skills other contribution criteria

Gain-sharing, stock ownership, profit sharing

Mutual commitment

Avoid unemployment

Assist reemployment

Mutual mechanism for communications and participation

Mechanisms for giving employee voice on issues

Mutuality

Joint problem-solving and planning

Emphasis on claims of all stakeholders
 Fulfillment of employee’s needs is a goal rather than and end
In Table the New assumptions about the management of people which underpin the ‘commitment – based’ HRM system:
Assumption Philosophical Shift
1.
2.
3.
4.
5.
6.
7.
Organisations are open systems with effectiveness defined as being successful in achieving a fit between its various components and between the system and its environment. There is a change of emphasis towards linking HRM with strategic planning and developing a culture that supports this and away from piecemeal interventions in response to specific problems.
People are capable of growth in terms of skills, values and commitment if and when the work environment encourages this. People therefore are social capital rather than variable costs.
There is a long-run coincidence of interests between all of the various stakeholders of the organisation. This requires a shift form a climate in which self-interest dominates.
Power equalization is a key factor in encouraging openness and collaboration among stakeholders. This is in contrast with the old assumption that there must be managerial control to enhance power and efficiency.
Open communication builds trust and commitment. Instead of adversarial relationships there is encouragement of mutuality of interest between employer and employed.
Employees will be motivated and the organisation more effective if they work towards organisational goals that they accept as legitimate.
People who participate in defining problems and solutions will become committed to the new results from the process of participation. This is in contrast to hierarchical control from the top.
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Q. 3 Employees are a permanent asset rather than a dispensable resource! Comment.
Ans:
Over the years the factor providing competitive edge to organisations have been shifting. While in the 5c’s the volumes gave the edge cost compression played the key role in 6o’s the focus moved to quality in 7c’s and to the customer in 80’s. As the competition increased in innovation took an edge in 90’s with the dawn of the new millennium people down has become the supreme factor providing the winning edge o the organisation.

In the global economy, firms are becoming more and more aware of the need to have competent employees. Several specific factors are responsible for heightened organisational focus on this critical toll.

One of the core issues companies are facing today is the increase in manpower cost coupled with this is the pressure to downsize and manage with fewer people, thus increasing efficiency and employee productivity. Companies are also realizing the need for ensuring that competent people are available for performing various critical roles. There is a negotiation that technology, finances, customers and markets systems and processes can all be set right on managed efficiency effectively with the right kind of human resources.

With this realization, there is now a focus on performing roles, time management, nurturing of competence, and increased emphasis on performance management systems advantage given by employee competencies of the organisation. All these factors are pushing up the value of competency mapping in enterprises.
Employees are a permanent asset; this can be further exemplified by the following example:

GE has an excellent trade record at successful succession planning through Jack Welet was understanding its best known
Chief executive. There were others including some who had out performed him. He was a link in a long chair of illustrations leaders and inherited a well-managed company from his predecessors, Reginald Jones, who retired as “the most admired business leader in America”. Jones was repeatedly recognised as a “top leader” in many independent surveys conducted during succession plan enables a company to identify and prepare the right people for the right positions at the right time to assure seamless continuity in leadership at all levels.

HR joins hands in the battle of bottom line by providing a workplace filled with fun, flexibility and fortune to its employees.
Burger Kind – Mc Donald’s, Pizza Pasha – Pizza Hut, and Coffee King – Qwilys value, their employees and recognize them as assets and ambassadors of their company. The unique culture of Qwilys is reflected in the workplace says head of HR, over workplace is fun to be in and thus spirit is a made part of our guest interaction as well we believe in empowering people, after work is assigned there is minimal level of supervision.

Leadership by example is evident by the fact that the CEO of Qwilys wipes tables and takes away used cups, even now, whenever he is at an outlet.

At Pizza hut, they believe that the only thing that tops our Pizza is our people. Pizza Hut trains and equips people to meet their career path options. “We provide a work environment that emphasizes coaching and development as a basic for learning and growth. Peers are in the same age group and that makes for a challenging and fun work environment…over the years, we have learned that is we put people capability first; satisfied the customers and profitability follow.

The management guesses have advocated an increase in the input of human resource consideration at strategic planning an attitude of treating planning an attitude of treating employees as assets, more participation and greater involvement for employees effective and open communications, less rule – oriented policies and practices, better training and career development opportunities, rewards and recognition tied to performance and less adversaries labour management relations.
Page No: (5) IMT-62 Strategic HRD

Assignment-B
Q. 1 Is strategic planning of Human Resource Worthwhile? What advantages do you gain from it?
Ans: Is strategic planning worthwhile?
HR Planning (HRP) is a continuous processes to analysis the current ant the future manpower requirements by the organisation. It ensures that the organisation is equipped with the right number and right kind of people at the right place.
Strategic planning of HR concerns itself with acquiring. Optimum utilization development and retaining of an enterprises human resource. This not only makes it important to analyse the labour costs and productivity and asses the need for structural change (a common practice followed earlier) but also to regularly review the labour market, the external business environment, forecasting the impact of business plans or employee relations and culture, analysing the current manpower stock, estimating the impact of labour turnover, forecasting medium term staffing requirements and the future availability of staff from within the organisations.
Further, the effectiveness of pay and benefit packages needs to be assessed and HRP practices need to be revised constantly to meet the changing business circumstances. A computerized personnel conformation system can provide accurate and up to date information to the decision makers for manpower planning forecasting the internal as well as external supply of human resources.
Forecasting the internal supply:
A.
Quantitative approaches to the internal supply of human resources helped in predicting the attention rate of the employees in the forthcoming years on account of economic pressures and the existing demographic structures. The focus of interest has been on wastage, absenteeism and age profiles.
For example: If a machine is to be operated round the clock. 3 men would be required for 3 shifts. To this it is also important to consider the extent of relief necessary and leaves taken by the employees. The number of leaves reserved trend and trends in sections of the labour market of participation relevance to the organisations in questions:
1.
For eg. A professional firm providing financial services in the city needs to take account of the supply of trained professionals in other (whenever it has its offices) changes in labour market conditions in the city, national and global labour market trends.
2.
The trend in any country might be more for part time; the organisation will have to plan their manpower accordingly.
3.
An increased demand for knowledge workers would lead to decline in clerical positions. HRP will also need to take into account an increase in the competition for new knowledge workers as fund manager professional managers, analysts, finance people, consultants etc.
4.
Stephen Comock provides a good example of positive response to a local labour market situation in the town of
Peterborough. Woiling with local authority in Peterborough where his company had relocated, he was able to estimate the no. of people coming onto the labour market up to the year 2000, and set it against the probable demand caused by expansion of the commercial activity in the area. This produced an estimated shortfall in skills that were particularly important for his company, such as computer staff, and financial professionals. This information formed the basis for revised recruitment and training plans.
Career planning is a microcosm for HRP, with an emphasis on supply and demand and the employee development plans.
Career planning is linked with succession planning. And effective succession plan enables the company to identify and prepare the right people for right positions at the right time to assure seamless continuity in leadership at all levels.
It is also an attempt to create a better balance between the career aspirations of individuals and the needs of the organization.
Improved assessment of individuals and against the criteria has to what skills, personal qualities and knowledge their senior managers with require) and a more open discussion of the results makes identifying the next successors less arbitrary (less uncertain).
The Advantage gain from it that strategic management: HRP fulfills an important role in supplying information for strategic decision making as well as translating them into plans/procedures. Employers need to ensure that HR stocks match forecast demand a careful eye is kept on the careers of talented individuals and trends in the labour market are carefully monitored. This provides an intelligent framework for the process of selection, training, motivation and consultation for the organisational effectiveness.
Page No: (6) IMT-62 Strategic HRD

Q. 2 Strategic decision are not only hard to make, they are very difficult to put into practices especially with respect to HRM!
Comment.
Ans: Strategic decisions are the framework of structure that determines the actions of an organisation’s strategic requirements and objectives. When defining the term, practitioners tend to emphasize the implementation and its role as revealed in the definition, “Strategic HRM is largely about interjection and adoption. It is concerned to ensure that:
1.
HRM is fully integrated with the strategy and the strategic needs of the firm.
2.
HR policies, practices are adjusted, accepted and used by line manger and employees as part of their everyday work.
Strategic HRM is the pattern of planned human resource deployments and the activities are intended to enable an organisation to achieve its goal.

Given these definitions of strategic HRM a comprehensive theoretical framework cannot be used to organise knowledge of how human resource practices are affected by strategic consideration.

Strategies and strategic planning has focused on the general concept of strategic HRM and the relatively broad concept of corporate level and strategic business unit consideration. HR strategies are essentially plans and propose to address and solve fundamental strategic issues related to HRM. HR strategy focuses on the alignment of the organisation’s HR practices, policies and programs with corporate and SBU plans. Consistent HR policies and practices are important concern.

Difference in HRM policies and practices across industries demonstrate that policies and personal practices very according operate. HRM cycle consists of selection performance appraisal and reward training and development.

For selection, staffing planning is required to be done. This requires a detailed study aimed at providing future generation of managers. This has to take into account external and internal supply and the kind of staffing required over the year keeping in view the future jobs. This proceeds had so much intangible aspects, assumptions that it is complicated, hence hard to implement. The performance appraisal also has to firm up the acquired skills and similar gap. The potential appraisal is also a part of it. Again, in order to crystallize these aspects requires an in-depth knowledge and application best of mind, hence the proceeds is difficult to implement.

As for reward management, the organisation considers the material rewards as well as emotional reward so as to motivate the employees. Communication is a heavy activity here. It is difficult to carefully coordinate so many activities. Here high is the probability of mistake.

Training and development is an essential input for successful implementation of strategic choice. Without T&D, HR cannot upgrade their knowledge to meet the organisational needs. T&D nurtures the future workforce – it is an agent for reading the corporate for a change. The effectiveness of training is not perceptible overnight – it takes to percolate the benefit of T&D, hence it is difficult to become implementable.
Strategy implementation consists of the following:
1.
Project Implementation
2.
Procedural Implementation
3.
Resource Implementation
4.
Structural Implementation
5.
Functional Implementation
6.
Behavioural Implementation
The behavioural implementation devotes HRM activities, while the other consistent can have manifestative form and design, the behavioural implementation relates to all intangible aspects – the efficacy of which is not perceptible in short term. Hence strategic HRM decisions are difficult to put into practice.
Page No: (7) IMT-62 Strategic HRD

Q. 3 Personnel management as a function is in decline. What do you mean by it?
Ans: Personal Developments were once called the “Health and Happiness” departments. The people assigned to deal with personnel issues were often individuals who were past their prime. The personnel department was seen as a place where less productive employees could be placed with minimal damage to the organisation’s ongoing department were perceived as those responsible for planning company picnics, variations schedule and the retirements practices. Personnel as an activity, was seen as necessary but important, part of the organisation.

Yet as the field of management began to mature, more emphasis was being placed on the worker. Various studies revealed that recognise workers for the work they had done could influence their productivity workers became more demanding in what they wanted from a job; and society, by means of laws and legislation was placing new demands on employers.

A series of regulations mandated changes in personnel practices. No longer could the personnel department be treated only as a road to success. Corporate had to hire the best-qualified candidate without distinction to race, religion, color, sex or national origin. Personnel function takes strategic relevance because it performs administrative type role. It is an uneasy relationship with line managers because HRM is a dimension of all the managerial roles.

The individuals, in modern era, who are hired needed to be trained, the corporate had to provide a means of continuing the personal development to ensure that these employers maintained their productive affiliation with the organisation. Friendly work conditions had to be established such that the work environment induced workers to stay with the corporate and simultaneously attract the new application to the organisation.
The paradigm shifts in the perception of personnel function eventuates the birth of human resource management, which focuses on the following areas:
1.
Training and Development
2.
Organisational/Job Design
3.
HR Planning
4.
Selection and Staffing
5.
Personnel Research and Information System
6.
Compensation/Benefits
7.
Employee Assistance
8.
Union/Labour Relations
Those of areas have been termed as spares of the wheel in that care, which impacts on the HR outputs. Quality of Wok Life
(QWL), productivity and readiness for change.
Hence today’s function relating to HR has a broader connotation then more personnel management. It has strategic implications. As a result, personnel management as function is in decline giving way to HR management.
Page No: (8) IMT-62 Strategic HRD

Assignment-C
Q. 1 Explain points of difference between HRM and Personnel & IR.
Ans:
Dimension
(A) Strategic Aspects
1.
Key relations
2.
Initiatives
3.
Corporate plan
4.
Speed of decision
Personnel & IR
Labour-management
Piecemeal
Marginal to
Slow
(B) Line Management
5.
Management role
6.
Key managers
7.
Communication
8.
Standardisation
9.
Prized management skills
(C) Belief and Assumptions
10.
Contract
11.
Rules
12.
Guide to management action
13.
Behaviour referent
14.
Managerial task vis-à-vis labour
15.
Nature of relations
16.
Conflict
(D) Key levers
17.
Selection
18.
Pay
19.
Conditions
20.
Labour Management
21.
Thrust of relations with stewards
22.
Job categories and grades
23.
Communication
24.
Job design
25.
Conflicting handling
26.
Training and Development
27.
Focuses of attention for interventions
Transactional
Personnel/IR specialists
Indirect
High (e.g. ‘parity’ an issue)
Negotiation
Careful delineation of written contracts.
Importance of devising clear rules / mutuality
Procedures
Norms/custom and practice
Monitoring
Pluralist
Institutionalized
Separate marginal task
Job evaluation (fixed grades)
Separately negotiated
Collective bargaining contracts
Regularized through facilities and training
Many
Restricted flow
Division of labour
Reach temporary truces
Controlled access to courses
Personnel procedures
HRM
Customer
Integrated
Central to
Fast
Transformational
General/business/line managers
Direct
Low (e.g. ‘parity’ not seen as relevant)
Facilitation
Aim to go ‘beyond contract’
‘Can-do’ outlook: impatience with rule
‘Business-need’
Values/mission
Nurturing
Unitarist
De-emphasised
Integrated, key task
Performance related
Harmonisation
Towards individual contracts
Marginalized (with exception of some bargaining for change models)
Few
Increased flow
Team work
Manage climate and culture
Learning companies
Wide-ranging cultural, structural and personnel strategies.
Page No: (9) IMT-62 Strategic HRD

Q. 2 Draw and explain HRM cycle, connecting selection, performance, appraisal and development.
Ans: The human resource management cycle
Rewards
Selection
Performance
Appraisal
Development
HRM Cycle consists of 5 sub elements:
1.
Selection
2.
Performance
3.
Appraisal
4.
Rewards
5.
Development
To begin with the external staffing or selection has been accorded highest priority.
Selection should be aimed at fulfilling personnel needs. All selection activities, from the initial screening interview to the physical examination if required exist for the purpose of mailing effective selection decisions. Each activity is a step in the process that forms a predictive exercise strategic selection is time to performance.
Performance is measured through effectiveness and efficiency of an employee. Now this performance is linked to appraisal.
The appraisal process begins with establishment of performance standards. These should have been evolved out of job analysis and job description. Once the performance standards are established, it is necessary to communicate this expectation.
To make effective performance appraisal a reality four criteria need to be present. These are:

Employees should be actively involved in the evaluation and development process.

Bosses need to enter performance appraisal with a constructive and helpful attitude.

Realistic goals must be mutually set.
 Bosses must be aware and have knowledge of the employer’s job and performance.
Appraisal is linked to both development and rewards, which are both linked in a feedback look to performance. Subsequent to appraisal, an appraiser has come to know the acquired skill sets the employee can be rewarded in recognition of his appraisee also understands the skill gaps and aligning with the organisational needs of development plan is also brought out.
In a further framework they provide a description of form HRM systems of selection, appraisal, rewards and development at different stage is an organisation’s growth cycle. The critical management tasks align the formal structure and HRM systems so that they drive the strategic objectives of the organisation.
Page No: (10) IMT-62 Strategic HRD

Q. 3 Spell out and explain strategic HRM activities. How do these activities create human resource with a difference?
Ans: Organisation Strategy initiates the process of identifying strategic business needs and provides specific qualities to them
Internal Characteristic External Characteristic
Strategic business needs expressed in mission statements/vision statements are translated into strategic business objectives
Strategic HRM Activities

HR Philosophy expressed in statements defining business values culture.

HR policies expressed as shared value guidelines

Express now to heat and value people.

HR programmes articulated as HR strategies

Establishes guidelines for action and people related business issues in HR programme.

Coordinated efforts to facilitate change to address major people related business issues.

Motivated needed role behaviour.

HR practices for leadership, managerial and operational roles.

HR processors for the formulation and implementation of other activity.

Define how there activities are carried out.
As will be seen, the model is unidirectional from the top to down. At the top in organisational strategy in which strategic business needs are identified and specific qualities are assigned to these. The components ‘internal characteristics’ (culture and nature of the business) and ‘external characteristics’ (the state of the economy and critical success factors in the industry) flow into the proceeds and enables business needs to be defined and expressed as mission to be defined.
Business objectives are articulated and flow into the 5 P’s components enabling HRM
1.
Philosophy,
2.
Policy,
3.
Programme,
4.
Practices,
5.
Processes
These strategic HRM activities will have a far-reaching impact on workforce utilization, employment practices, which will help the organisation to put in an improved strategy implementation. The output will be of improved quality of work life, enhanced productivity and productivity to change for the better.
The diagram of HR, which illustrate that naturally the HR will be generated out of their policies, programmed, processes will be with a difference.
Human Resource Wheel
Human
Resource Areas
Page No: (11) IMT-62 Strategic HRD

Assignment-D
Q. 1 Explain a few important strategic HRM planning tools and techniques commenting tools and techniques commenting on their suitability in Indian Scenario.
Ans: Planning tools and techniques are strategic decision-making aids, which facilitate the translation of strategic thinking into strategic reality.
Brief descriptions of strategic planning tools and techniques:
1.
Dialectic enquire , Development, evaluation, and synthesis of conflicting points of view through separate formulation and refinement of each point of view first, by assigned groups using debate format; and second, by bringing the two groups together for presentation and debate between the two points of view – followed by synthesis.
2.
Nominal group techniques , Development, evaluation, and synthesis of individual points of view through an interactive process in a group setting.
3.
Delphi technique , Development, evaluation, and synthesis of individual points of view through the systematic solicitation and collation of judgements on a particular topic through a set of carefully designed sequential questionnaires interspersed with summarised information and feedback of opinions derived from earlier response.
4.
Focus groups , Bringing together recognised experts and qualified individuals to develop, evaluate, and synthesise individual points of view on a particular topic in an organised setting.
5.
Driving force
, A directional way of thinking in which the ‘Driving Force(s) of business is identified and serves as the guiding parameter for analysis and strategy formulation.
6.
Stakeholder analysis , Identification and evaluation of individuals or groups who can affect by the achievements of the organisation’s objectives.
7.
Simulation technique , Computer-based technique for simulating future situation and relationships, and then predicting the outcome of various courses of action against each future situation.
8.
PIMS analysis , Application of the collection of experiences of a diverse sample of successful and unsuccessful business.
9.
Market opportunity analysis , Identification of markets and market factors in the economy and industry that will affect the demand for and the marketing of the product or service.
10.
Value chain analysis , A diagnostic process for identifying and analysing primary (manufacturing, marketing and sales, service) and support (information systems, research and development) activities that add value to product or service.
11.
Benchmarking , Comparative analysis of competitor programmes and strategic position(s) for use a reference points(s) in the formulation of organisational objectives.
12.
Situational analysis (SWOT or TOWS) , Systematic development and evaluation of past, present, and future data to identify internal strengths and weaknesses, and external threats and opportunities.
13.
Critical success factors/strategic issues analysis , Identification and analysis of a limited number of areas in which high performance will ensure a successful and competitive position.
14.
Product life cycle analysis , Analysis of market dynamics where a product is viewed according to its position within distinct stages in a sales history.
15.
Product/market analysis , A systematic approach to defining market(s) and market segments(s) along with product(s), product function(s) and technology (ies) both leading to the identification of market niches to serve.
16.
Future studies , Development of probable future situations and factors based on agreement of a group of ‘experts’ often from a variety of functional areas within an organisation.
17.
Multiple scenarios , Smoothly unfolding narratives that describe an assumed future expressed through a sequence of time frames and snapshots.
Page No: (12) IMT-62 Strategic HRD

A few strategic HRM planning tools and techniques are related with Indian Scenario:
1.
Delphi Technique: Development evaluation one synthesizes of individual points of view through the systematic solicitation and violation of judgements on a particular topic through a set of carefully designed sequential questionnaire interspersed with summarised information and a tableau of opinions derived from earlier responses.
Delphi technique helps to scan the environment with some strategic vision and calculates the manpower to meet the strategic need of the organisation. In Indian content, the Delphi technique is a handy technique to determine the shape and form of strategic HRM practices given the national and international scenario. Delphi technique also levels authority to the planning.
2.
Experience Curve: The greater the experience, the greater will be the productivity given on HR focused ambience in the organisation. The organising framework for dynamic analysis time for product, company or industry results in reduction on both the counts.
Experiential learning has to be well nurtured in the organisation to have a decisive advantage over the competitors in the industry. In India, experience curve is a reality especially in IT industry. The experience curve made a decisive input in strategic HRM.
3.
Product Life Cycle analysis: In this planning of market dynamics are analysed with reference to the position of the product at different stages in sales history. Accordingly, the strategic HRM planning vis-à-vis selection and performance appraisal is done in India; retrenchment and expansion strategies are determined in line with the life cycle of the product. It also helps in determining strategic HRM planning.
4.
Replacement Charts: Describe a company’s organisational structure in terms of the individuals. Occupying various managerial and professional positions. For each positions incumbent, potential replacements are identified along with the information as their individual potential for advancement and number of years experience needed before being qualified for the next position. In India, all well-established corporates do this.
5.
Succession Planning: It is directed towards a longer-range time horizon one is more focused on development succession planning involves more elaborate planning for skill development of the potential replacement.
Succession planning is participatory and plans are incorporated into career development session. It reduces turnover of valued manager. While they are concerned about the ability of traditional succession planning to produce qualified successors, particular on a position to-position basis, it is an important tool to change an organisation’s strategy.
Succession planning is relevant and reality in India.
Page No: (13) IMT-62 Strategic HRD

Q. 2 Explain elements of Mckinsey’s 7-S framework and its applicability in Indian scenario.
Ans: The 7-S denotes the seven-policy areas that affect long-term organisational success. There are 3 ‘hard’ variables of strategy structure and systems and 4 ‘soft’ variables of Staff, Skills, Styles and Shared Values.
1.
Strategy is the means to achieve the organisational purpose.
2.
Structure is the basic framework to designate responsibilities and function.
3.
Systems are management tools for the planning, decision-making, communication and control.
4.
Staff refers to an organisation’s human resources.
5.
Style describes how managers lead and motivate.
6.
Shared values (or subordinate goals) are values that the organisations pursue to achieve its purpose.
7.
Skills.
Excellent and innovative companies exhibit many or all of the following characteristics:
1.
Bias for action.
2.
Closeness to customer.
3.
Autonomy and entrepreneurship.
4.
Productivity through people.
5.
Hands on, value driven.
6.
Stick to the Knitting.
7.
Simple form, lean staff.
8.
Simulation loose-tight properties
Mckinsey’s 7’S framework offers a useful tool for focusing on those policy areas, which are vital to organisational success.
Says V.L. Mate, Professor at IIM, Dharadabad, “The implementation of the new growth strategy for Arvind Mills, requires the reappraisal for Arvind Mills in terms of the 7-S (of the Mckinsey formula). This is what we are doing currently together with a core team of professionals led by Sanjay. For the Indian scenario 7-S formula is equally applicable.
For eg. Reliance Industries Ltd.’s vision was to become Indian’s No. 1 company. According the have decided their policy areas.
Page No: (14) IMT-62 Strategic HRD

Q. 3 How do you carry out strategic evaluation? Explain all of its elements in detail.
Ans: The purpose of strategic evaluations is to evaluate the effective uses of strategy in achieving organisational objectives. This strategy evaluation is a process of determining the effectiveness of a given strategy in achieving the organisational objectives and talking the corrective actions wherever acquired.
The process of strategic management makes it clear that a strategic is formulated on the basis of several assumptions. The 4 basic types of strategic evaluations are:
1.
Premise evaluation.
2.
Implementation evaluation.
3.
Strategic surveillance.
4.
Special alert evaluation and control.
Every strategy is based on certain assumption about environmental and organisational factors, some of these factors are highly significant and any change in them can affect the strategy to a large extent. Evaluation is necessary to identify the key assumptions and keep touch of any change in them so as to assess their impact on strategy and its implementation.
Implementation evaluation is aimed at ascending whether the plans, programmes and projects are actually giving the organisation towards its predetermined objectives or not. Another method of implementation evaluation is the milestone reviews, through, which critical points in strategy implementation are identified.
Strategic surveillance is aimed at a more generalised and overwhelming control designed to monitor a broad range of events inside and outside the company that are likely to threaten the course of a firm’s strategy.
The last of the strategic evaluation system is the special alert evaluation, which is based on a trigger mechanism for rapid response and immediate reassessment of strategy in the light of alert evaluation and control can be exercised through the formulation of contingency strategics and assigning the responsibility of handling unforeseen events to crisis management team.
Strategic HR evaluation can also be for a number of reasons including:

The demonstration of accountability in utilization of resources.

Promotions of change by identifying strength and weakness.

Introduction of financial assessments as a decision tool in HR program selection.

Highlighting key HR resource practices.

Changing the performance of HR function.
 Demonstrating the function’s role in the accomplishment of company’s goals.
The approaches to such evaluation may be any of the following:
1.
Audit approach:

It relies on personnel information.
2.
Analystical approach:

It involves either experimental designs or cool-benefit analysis.
3.
Quantitative and Qualitative measures.
4.
Balanced Scorecard.
5.
Benchmarking.
Page No: (15) IMT-62 Strategic HRD

Short-Answers
Q.1. What is strategy? How is it different from a policy?
Ans: A strategy of a corporation is a master plan stating how the corporation will achieve its mission and objectives. It maximizes competitive advantage and minimizes competitive disadvantage. For eg. After Rockwell Corporation realized it could no longer ach9ieve its objectives by continuing its strategy of diversification, it sold its aerospace and defense units to bowing it instead chose to concentrate or commercial electronics, an area that management felt had greater opportunities for growth.
The typical business firm considers 3 types of strategy:
1.
Corporate,
2.
Business, and
3.
Functional.
Corporate Strategy describes a company’s overall direction in terms of its general attitude towards growth and management of its various business and product lines.
Business Strategy occurs at the business unit on product level, and it’s emphasized improvement of the competitive position of a corporates product or services. Business strategies fit in the category of stability growth and retrenchment.
Functional Strategy is the approach taken by a functional area to achieve corporate and business unit objectives and strategies by maximizing resource productivity.
Business firms are all 3 types of strategy simultaneously.
Corporate Strategy
Business Strategy (Divisional Level)
Functional Strategy
Policies: A policy is a broad guideline for decision-making that links the formulation of strategy with its implementation.
Companies use policies to make sure that employees throughout the firm make decisions and take actions that support the corporation’s mission, objectives and strategies.
For example, consider the following company policies:
Maytag Company will not approve any cost reduction proposal if it reduces product quality in anyway. (This policy supports Maytag’s strategy for Maytag brands to compete on quality rather than on price).
General Electric (GE) must be No. 1 or No. 2 wherever it competes. (This supports GE’s objectives to be No. 1 in market capitalization).
Q. 2 What is strategic Management?
Ans: Strategic Management helps an organisation to operate successfully in a dynamic, complex environment. Strategic management consists of 4 basic elements:

Environment Scanning

Strategy Formulation

Strategy Implementation

Evaluation and Control.
Societal Environment (General Forces)
External
Task Environment (Industry Analysis)
Environmental Scanning
Strategy Formulation
Internal
Structure (Chain of Command)
Culture (Beliefs, Expectations, Values)
Resources (Assets, Skills, Competencies, Knowledge)
Mission Objectives Strategies Policies
(Reasons for Existence) (What results to accomplish by when) (Plan to achieve the mission & Objective) (Broad guidelines
for decision-making)
Programs
(Activities needed to accomplish a plan)
Budgets
(Cost of programs)
Procedures
(Sequence of steps needed to do a job.
Evaluation & Control
Performance (Action-results)
Page No: (16) IMT-62 Strategic HRD

Q. 3 What is Strategic HRM?
Ans: Strategic HRM seeks to utilize the best of HRMs functional practices and to put some managerial techniques, especially strategic planning tools, to use in bringing a strategic orientation to HRM activities.
Q. 4 What is Strategic HRD?
Ans: Strategic HRD is methodologies for an organisation to create a learning environment within the organisation so as to trains develop human resource to secure or competitive advantage for achieving the excellence through-knowledge resource. Here,
HRD activities are linked with strategic management and achieving learning environment.
Q. 6 What is administrative strategy?
Ans: Aclermann hypotheses that HRM strategies follow business strategy and will contribute to organisational effectiveness and efficiency measured by criteria such as the productivity labour costs and behavioural indices as turnover and absenteeism.
In a survey that took place, the result was a factor classification of HRM strategies; Development, Control, Administrative and Scanning.
In an administrative strategy, HR planning has a short-term orientation with heavy reliance on external orientation.
Q. 7 Explain Scanning Strategy?
Ans: A Scanning Strategy utilise labour market scanning both internal and external existence use is made of attitude surveys.
There is reliance on monetary incentives and the application of rigorous selection procedures.
Q. 8 What is development strategy?
Ans: A Development Strategy has emphasis on training and development. There is a considerable role of planning and heavy reliance on internal resourceing of staff. A decision that external recruitment is desirable is followed by intensive search and selection activities
Q. 9 Explain Transformation Theory?
Ans: Van Setters & Field (1990) in a reviews of leadership theory identify a areas of leadership theory culminating in the
‘transformational era’, which they judge to be the most promising in the history of leadership theory evaluation. They feel that there are many variables to be added to the leadership concept. According to this theory the effectiveness of leadership cannot be determined by just one approach, but a leader must have many new qualities. They must be visionary, risk0takers, adoptable to change, able to delegate and willing to empower others. The new leader must exemplify the values, goals and culture of the organisation, be highly aware of the environmental factors, and place emphasis on innovation. Leaders will be effective primarily in their ability to comprehend, visualize, conceptualize and articulate to their peers and subordinates the opportunities and threats facing the organisation.
As with the organisational effectiveness, the findings of leadership research are inconclusive. This latest ‘new age’ or
‘transformational’ trend has emerged as a powerful one and it is interviewed with organisational initiatives as culture change.
Q. 10 Who is a transformational leader?
Ans: The role of a transformational leader is to drive the values of the organisation. She must be a person of a clear vision of the company’s direction and communicate this vision; down the line ‘A’ transformational leader is one who takes the responsibility for revitalizing the organisation. Such leaders define the need for change, create new visions, mobiles commitment to those visions, and ultimately transform an organisation. They identify themselves as change agents are courageous individuals believe in people are value driven are lifelong learners have the ability to deal with complexity, ambiguity and uncertainty and they are visionaries.
Page No: (17) IMT-62 Strategic HRD

Q. 11 Explain TOWS?
Ans: The TOWS Matrix is very useful for generating a series of alternatives that the decision-makers of a company or business unit might not otherwise have considered. It forces strategic managers to create various kinds of growth as well as retrenchment strategies. It can be used to generate corporate as well as business strategies. Another approach is to evaluate each business unit within a corporation in terms of possible competitive and cooperative strategies and also SWOT and
Analysis .
To generate a TOWS Matrix for Maytag Corporation in 1995. We use the External and Internal Factor Analysis
Summary as show in the Table below:
Internal Factors (IFAS)
External Factors (EFAS)
Opportunities (O)
(List 5-10 External Opportunities here)
Threats (T)
(List 5-10 External opportunities here)
Strengths (S)
(List 5-10 Internal Strengths here)
SO Strategies
Generate strategies here that use strengths to take advantage of opportunities.
(ST) Strategies
Generate strategies here that use strengths to avoid threats.
Weakness (W)
List 5-10 Internal Weakness here)
WO Strategies
Generate strategies here that take advantage of opportunities by overcoming weakness.
WT Strategies
Generate strategies here that minimize weakness and avoid threats.
To build the above table, we take the following steps:
1.
In the following opportunities (O) block, list the external opportunities available in the company’s or business unit’s current and future environment from EFAS table.
2.
In the threats (T) block, list the external threats facing the company or unit now and the future from the EFAS table.
3.
In the strengths (S) block, list the specific areas of current and future strengths for the company or unit form the IFA table.
4.
In the weakness (W) block, list the specific areas of current and future weakness for the company or unit from the IFAS table.
5.
Generate a series of possible strategies for the company or business unit under consideration based on particular combinations of the 4 sets of factors:

SO Thinking of ways generates strategies in which a company or business unit called uses its strengths to take advantage of opportunities.

ST Strategies consider a company or unit’s strengths as a way to avoid threats.

WO Strategies attempts to take advantage of opportunities by overcoming weakness.

WT Strategies are basically defensive and primarily act to minimise weakness and avoid threats.
Q. 13 What are mission statements?
Ans: Strategy Formulation in the development of long-range plans for the effective management of environmental opportunities and threats, in the light of corporate strengths and weaknesses. It includes defining the corporate mission, specifying achievable objectives, developing strategies and setting policy guidelines.
 An organisation’s Mission in the purpose or reason for the organisation’s existence. It tells what the company is providing to society, either a service like house cleaning or a product like automobiles.

A well-conceived Mission Statement defines the fundamental, unique purpose that sets a company apart from other firms of its type and identifies the scope of the company’s operations in terms of products (including services) offered and markets served. It may also include the firm’s philosophy about how it does business and treats its employees. It also puts into words not only what the company is now, but also what it wants to become-management’s strategic vision of the firm’s future.

The Mission Statement promotes a sense of shared expectations in employees and communicates a public image to important shareholders in the company’s task environment.

One example of a mission statement is that of Maytag Corporation. To improve the quality of home life by designing building, marketing and the servicing the best appliances in the world.
Page No: (18) IMT-62 Strategic HRD

Q. 14 What is objective?
Ans: Objectives are the end results of planned activity. They state what is to be accomplished by when and should be qualified if possible. An objective would say something like, “Increase profit 10% over last year”.
Some of the areas in which a corporation might establish its goals and objectives are often used interchangeably. As goals are a simple statement like “Increased profitability” and when we add how much profit i.e., quantified, it becomes an objective):

Profitability (Net Profit);

Effectiveness (Low Costs, etc.);

Growth (Increase in total assets, sales etc.);

Shareholders Wealth (Dividend plans stock price appreciation);

Utilization of Resources (ROI or Equity);
 Reputation (Being considered a “Top” firm);

Contribution to Employees (Employment security, wages, diversity);

Contributions to Society (Taxes paid, participation in charities, providing a needed product on service);

Market Leadership (Market Share);

Technological Leadership (Innovations creativity);

Survival (Avoiding bankrupting);

Personal Needs of Top Management using the firm form personal purposes, such as providing jobs for relations).
Q. 15 What is difference between Aim and Objective?
Ans: Aims (or Goals) are simple statements. It is an open-ended statement of what one wants to accomplish with no qualification of what is to be achieved and no time criteria for completion.
For e.g., a simple statement of “Increased profitability” is this on aim or goal, not an objective because it does not state how much profit the firm wants to make the next year.
An Objective would say something like, “Increasing profits 10% over last year”. Objectives are a result of planned activity.
They state what is to be accomplished by when and should be qualified if possible.

Objective = Aim
Q. 16 What are long-term targets?
Ans: Targets are closed ended time bound attributes, which are precise, and specific long-term targets, therefore, are the goals attempted by an organisation over a time framed of more than 3 years.
Q. 17 What are values?
Ans: Values specify, “How we accomplish our Mission?” Values are as important as the mission itself. Fundamental to the successor of the company are these basic values:

People: Our people are the source of our strength. They provide one corporate intelligence and determine our reputation and vitality. Involvement and teamwork and our core human values.

Products: Our products are the end-results of our efforts, and they should be best in servicing customer’s worldwide. As our products are viewed, so are we viewed?

Profits are the ultimate measure of how efficiency we provide customers with the best products for their needs. Profits are required to survive and grow.
Q. 18 How are values different from ethics?
Ans: Values are basic conditions about what is right or wrong, good or bad, desirable or not. They are personal in nature.

Ethics are generalised value system. For e.g., a belief in providing customer satisfaction is a value and avoiding discrimination in the recruitment is an ethic.

Ethics have an impact on the way employees are treated and business ethics can provide general guidelines within which strategic management can operate.
Q. 19 What is environment Analysis?
Ans: Environmental Analysis is the monitoring, evaluating and disseminating of information from the external and internal environments to key people within the corporation. A Corporation uses this tool to avoid strategic surprises and to ensure its long-term health. Researchers have found a positive relationship between environmental scanning and profits.
Page No: (19) IMT-62 Strategic HRD

Q. 20 What is capability analysis?
Ans: An analysis of a corporations strengths and weaknesses i.e., the capability of an organisation is critical to the process of formulating the strategy for the organisation capability can be assessed through an analysis of the organisation’s resources.
It helps to identify: a) What types of strategic options are feasible? b) What the organisation cannot do and c) Particularly in times of environmental uncertainty, the types of resources and skills that the organisation should build for the future.
Q. 21 What the internal growth strategy?
Ans: There are 4 Internal growth strategies: a) Concentration: The efforts of an organisation are concentrated on a limited combination of technology – customer product.
The organisation works at doing better what it already does well. b) Market Development: The organisations market its present products with some modifications and range increases to customers in related market areas. It may make changes in distribution and advertising in support of the strategy. c) Product Development: The organisations make substantial modifications or additions to present products in order to increase their market penetration among existing customer groups. d) Innovation: The organisation replaces the existing products with new ones and thus enters new PLC (Product Life Cycle).
Q. 22 Explain external growth strategies?
Ans: There are 4 categories of External growth strategies: a) Horizontal Integration: An organisation acquires or mergers with another firm positioned at the same stage in the value chain. b) Vertical Integration: An organisation acquires a company, which either supplier raw material or components or is a customer (Perhaps distributor or assembler) of its products/services. c) Concentrate Diversification: An organisation moves away from existing products and markets but the new products/services may relate to these in terms of technology or marketing. The assumption is that of the new diversified company will gain in strengths and opportunities while reducing its weakness and risks. d) Conglomerate Diversification: Diversification in this case, is chosen for its investment potential. It is unrelated to existing and new products, services and markets. It is a high-risk choice between the new technologies; skills and markets involved are unknown and uncertain.
Q. 23 What the disinvestments strategies?
Ans: There are 4 main categories of disinvestments: a) Retrenchment: This is an option when an organisation is experiencing declining profits for reasons such as, economic recession, productive inefficiency and competitor innovation. In order to improve efficiency the organisation engages in cost reduction (e.g., redundancies); asset reduction (selling – off anything, which is not essential) and revenue generation (from debtor and stock turnover ratios). b) Turn Around: Strategy may follow on from retrenchment, which has released resources for re-allocation. In turnaround strategy activities such as strategic refocusing for a product/service; re-allocation of managerial talent or product/service modification may be adopted. c) Disinvestment: If retrenchments fails or is considered in appropriate, a decision to divest a part of the business may be taken.
It is the most likely strategy when an organisation needs to raise money quickly or when a particular product/service or business does not fit well with an organisation’s portfolio. d) Liquidation: The strategy represents disinvestment in its most extreme form, when a company is sold as a going-concern either completely or in parts.
Page No: (20) IMT-62 Strategic HRD

Q. 24 Without successful implementation a strategy is but a fantasy! Comment.
Ans: Strategy Implementation is the sum of the total activities and choices required for the execution of a strategic plan. It is the process by which strategies and policies are put into action through the development of programs, budget and procedures.
Although implementation is usually considered after strategy has been formulated, implementation is key part of strategic management. Strategy formulation and strategy implementation should thus be considered as two sides of the same coin poor implementation has been blamed for a number of strategic failures.
A study by KPMG found that 83% of the mergers failed to increase the acquires shareholders value within a year of completing the merger. Fingerhut Company, for example had been thrilling mail. Order retailer with annual revenues of $ 2 billion. It was making a successful transition to e-commerce by offering several websites and buying equity states in other companies. Business analyses were impressed by its diversification strategy. Impressed with the company’s performance,
Federated Department stores acquired it after quite confidentially predicating the co-operation’s overall interest sales would reach $2 – $3 billion by 2004-20 months after purchasing Fingerhut Federated discovered that its internet sales had reached only $180 million and were not likely to go much higher.
Management now discovered that while Fingerhut had an excellent strategy for the Internet and its catalogue business, its implementation of that strategy had been dismal.
Fingerhut’s fulfillment contracts dropped after allegations of poor service and a very visible dispute with e-toys. The company had also mismanaged its plan to provide additional credit to its catalogue customers. With growth, its operations had become sluggish, and management failed to hire enough competent people to run its websites and software. The software was also buggy and Fingerhut failed to properly manage its credit and collections.
Federated’s management was furious. Management stated that it would no longer investment e-commerce companies and that it will stop pursuing new third party fulfillment contracts. Thus, without successful implementation, a strategy is but a fantasy.
Q 25 What do you mean by strategic structure and design of an organisation?
Ans: An organisation structure is the way in which tasks and sub-tasks required to implement a strategy are arranged. The diagrammatical representation of structure could be an organisation chart shows only the skeleton. The ‘flash and blood’ that brings to life an organisation are the several mechanisms that support the structure. All these cannot be depicted on a chart, but a strategist has to grabble with the complexities of creating the structure, making it work, redesigning when required and implementing changes that will keep the structure relevant to the needs of the strategies that have to be implemented.
The steps for strategic structure implementation can be summarised as follows:
1.
Defining major tasks required implementing a strategy.
2.
Grouping tasks on the basis of common skills requirement.
3.
Sub-division of responsibility and delegation of authority to perform tasks.
4.
Coordination of decided responsibility.
5.
Design and administration of the information system.
6.
Design and administration of the appraisal system.
7.
Design and administration of the control system.
8.
Design and administration of the motivation system.
9.
Design and administration of the development system.
10.
Design and administration of the planning system.
Q. 26 How do you link strategy and structure?
Ans: Noted expert Alfred Chandler propounded that strategy change requires structure changes to achieve economic efficiency.
However, subsequent researchers have not conclusively proved that relationships that structure follow strategy. When a structure follows strategy but after, structural considerations also affect if not determine strategy, which is the case of backward linkage. Theorists therefore are more concerned with the match that should exist between strategy and structure. In other words, a particular strategy creates special requirements that should be fulfilled by the structure.
Page No: (21) IMT-62 Strategic HRD

Q. 27 What are flexible structure?
Ans: Traditional organisation structure tends to be rigid which was based on the need to hire large numbers of full time employees.
But with rapid change in the pace of the environment, the structures of the organisation became more flexible.
Flexible characteristics include the following characteristics:

A network structure of control, authorize and communication.

Lateral rather than vertical communications through the organisation.

Communication (unlimited knowledge) no longer imputed (ascribed) to the head of the concern.

Continual redefinition of individual tasks.
 Commitment to the concern’s tasks more highly valued then loyally and obedience.

Authority rests on whoever shows himself more informed and capable.

Shared belief about the values and goals of concern.
This ‘Flexile’ approach has been labeled ‘adhocally’ characterised by low formulization, decentralisation high horizontal differentiation low vertical differentiation and flexibility and responsiveness. Fast IT firs are frequently put in this category.
Hence, the employer is a knowledge worker, power flows to those considered to possesses the necessary expertise regardless or role or position. Teamwork creativeness, innovation, co-operation flow in such an environmental, however the employees here to cope with a large measure of uncertainty.
Such structures encompasses three types of the Flexibility, Functional, Numerical and Financial.
Functional Flexibility: Refers to the capability of employee to switch between craftsmen or assembly teams, where problems of job-demarcation have been overcome.
Self-Employment
First peripheral growth
Secondary labour market,
Numerical, Flexibility
Agency Short-term
Temporaries Contacts
Core group,
Primary labour market functional, flexibility
Public
Second Peripheral
Growth
Subsidiary
Trainees Delayed
Part-
Time
Job Sharing
Recruitment contracts resulting from collective bargaining.
Sub-
Contracting
Numerical Flexibility: Refers to the ability to take on or release staff at short notice, assisted by the greater use of subcontractors and short-term contracts Increased
Financial Flexibility: Refers to the flexible pay systems based on local conditions, rather than nationally negotiated
Page No: (22) IMT-62 Strategic HRD

Q. 28 What are inverted structures?
Ans: Traditional organisation structures represents a triangle with the chief executive located at the apex and the shop-floor workers at the base. The growing realisation that customer core is critical, that qualify products and services rest on the effort and commitment of shop on floor workers, that customer relations depend on the behaviour of those staff who interact directly with customers, and that the modern role of the manager is to crate conditions in which staff can optimize their performance had led some organisations to invert their structures and to include customers on organisation charts.
An example of this can be provided by Cannaudmetal Box (MB) organisation chart devised at the time of the merger between companies in the late 1980’s. This is depicted in the figure below:
Customer Customer Customer
Human-Sized Business Units
Or
1. Speedy and imaginative
represent each customer
2. Support & Strategy
Federation
Vision
and
3. Cohesion & Vision
Front Line Teams
Support Forces
Line
GMM
Experts
Values
A minimum number of manaparent levels
The organisation now relies on commitment to corporate objectives rather than fear of punishment and obedience to the boss to drive things forward. This strategy is followed by organisations who have fully adopted a TQM culture and are customer centre.
Q. 29 Explain Porter’s Model.
Ans: Michael Porter of Harvard proposed the value chain of activities. Porter proposes that a manufacturing firms primary activities usually begin with inbound logistics (raw material handling and warehousing), go through operations processors in which a product is manufactured, and continue on the outbound logistics (warehousing& distribution), marketing and sales and finally to service (installation, repair and sales of parts). Several support activities, such as procurement (purchasing), technology development (R&D) HRM and firm’s infrastructure ensures that the primary value chain activities operate effectively and efficiently.
The chain disaggregates on organisation into its strategically relevant activities in order to understand the behaviour of costs and existing and potential sources of differentiation. An organisation could gain competitive edge by performing these activities at less costs or better than its competitors. According to Porter, “Differences among competitor’s value chain are a key source of competitive advantage.
Corporate value chain analysis involves the following three steps:
1.
Examine each product line’s value chain in terms of the various activities involved in producing that product on service i.e., which activities can be considered strengths (core competencies) or weakness (core deficiencies)? Do any of the strengths provide competitive and can thus be labeled distinctive competencies.
2.
Examining the “linkages” within each products value chain for e.g., Quality inspection of 100% of output by the workers themselves instead of the usual 10% by quality control inspectors might increase production costs, but that increase should be more than offset by the savings obtained from reducing the number of repair people needed to fix defective products and increasing amount of sole people’s time devoted to selling instead of exchanging already sold, but defective products.
3.
Examining the potential synergies among the value chains of different product lines or business units or reaching economies of scale.
 The firm’s success depends not only on how well each department performs its work but also on how well the various departmental activities are coordinated. A credit department may take a long-time to check a prospective customer’s credit so as not to incur bad debts; meanwhile the customer waits and the salesperson is frustrated. The solution to this problem is to place more emphasis on the smooth management of core business processes, most of which involve cross-functional inputs and co-operation.

The core business processes, which include new product realization process, inventory management process, order to remittance process, customers service process.

For e.g. one of Wat-Mart’s great strengths is its super-efficiency in making goods from its suppliers to its individual stores.
As Wal-Mart stores sell their goods, sales information flows via computer not only to its headquarters but also to its suppliers, which ship replacement merchandiser to the Wal-Mart stores almost at the rates it moves off the self.
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Q. 30 Define Corporate Culture?
Ans: Corporate Culture is the collection of beliefs, expectations and values learned and shared by a corporation’s member and transmitted from one generation of employees to another. The corporate culture generally reflects the values of the founder and the mission of the firm. It gives the company a sense of identifies; this is who we are. This is what we do this is what we stand for.

The culture includes the orientation of the company, such as R$D at Hewlett Packard customer service at Nordstrom or product quality at Maytag.

Corporate culture shapes the behaviour of people in the corporation. Because these cultures have a powerful influence on the behaviour of people at all levels, they can strongly affect a corporation’s ability to shift its strategic direction. A strong culture should not daily support its survival but it should also create the basis for a superior competitive position.
For e.g., A culture emphasizing constant renewal may help a company adopt to a changing, hyper competitive environment.
Q. 31 Explain National Culture?
Ans: National Culture is so influential that it tends to overwhelm even a strong corporate culture. In measuring the dimension of national culture it can be explained why a certain management practice might be successful in one nation, but fail in another.
People in some countries prefer Autocratic to more participative managers. Some countries or societies accept an unequal distribution of power in organisations as in the countries of Malaysia and Mexico but this is not the case with Germany and
Mexico.

Greece and Japan score highest on disliking ambiguity and tend to want career stability, formal rules, and clear-cut measures of performance. But this is not the case with USA and Singapore.

Nations like USA and Canada to value individual success through competition, whereas Mexico and Guatemala, which scored low on individualism and high on collectivism tend to value group success through collective cooperation.

Countries like Japan and Mexico where the male society dominates tend to value clearly defined sex roles where men dominate and to emphasize performance and independence, whereas France and Sweden, which scored high on flexibility, tend to value equality of sexes where power is shared and to emphasize the quality of life and independence.

HongKong and Japan, which scored high on long-term orientation value strategic planning and other management techniques with a long-term payback whereas Pakistan tends to value a short-term orientation.

Some management practices as MBO worked well in Germany but failed in France. Germany but failed in France. Germany appreciated the idea of replacing the arbitrary authority of boss with mutually agreed upon objectives but in France people are more used to talking orders from a highly personalized authority.

When two companies located in two different nations merge, the clash of corporate culture is compounded by clash of national cultures. The management of cultures across nations is becoming a key issue in strategy implementation. When conducting strategic planning in on Multinational, top management must be aware that the process will be based upon the national culture where a subsidiary is located.
Q. 32 Do Cultures Change?
Ans: A key job of management involves managing corporate culture. Although corporate culture can be changed, it may often take a long-time and it requires much effort. In doing so, management must evaluate and assess if a change in culture is needed and decide if an attempt to change the culture is worth the likely costs.
Q. 33 What is change in business scenario?
Ans: An organisation culture can exert a powerful influence on the behaviours of all employees; it can strongly affect a company’s ability to shift its strategic direction. A problem for a strong culture is that a change in mission, objectives strategies, or policies is not likely to be successful if it is in opposition to the accepted culture of the company. Corporate culture has a strong tendency to re-exist change because its very reason for existence often rests on preserving stable relationships and patterns of behaviour.

Culture can be modified easily by making it more compatible with the new strategy. Various culture changing activities as minor structural modifications. T&D activities and/or hiring new managers who are more compatibles with new strategy can be chosen.
 For e.g., When P&G’s top management decided to implement a strategy aimed at reducing cost, it made some changes in how things were done, but it did not eliminate its brand management system. The culture adapted to these. Modification over a couple of years and productivity increased.

Similarly, when at General Motors, top management realised the company had to make some radical changes to be more competitive. Because, the current structures of culture and procedures were very inflexible. Management decided to establish a completely new division called Saturn to build its new auto. In co-operation with the United Auto workers, an entirely new labour agreement was developed, based on decision reached by consensus. Carefully selected employees conceived from
100-175 hours of training and a whole new culture was built piece by piece.

When merging with or acquiring another company, top management must give some considerations to a potential class of cultures.

The greater the gap between the cultures of the acquired firm and the acquiring firm, the foster executives in the acquired firm quit their jobs and valuable talent is lost.

The members of the acquired firm, who may feel that for some reason their culture and managerial practices have not produced success, must welcome the culture change. The acquired firm surrenders its culture and adopts the culture of the acquiring company. For example: Admiral’s employees were willing to accept the dominance of Mayteg’s strong quality oriented culture because they respected it?
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Q. 34 What is strategic change?
Ans: Strategic Change means that management must evaluates what a particular change in strategy to the corporate culture, assess if a change in culture is needed and decide if an attempt to change the culture is worth the likely costs. An optional culture is one that best supports the mission and strategy of the company of which it is part.
This means that, like structure and staffing, corporate culture should support the strategy and change.
Q. 35 How do you bring about a strategic change?
Ans: Communication is key to the effective management of change Rationale for strategic changes should be communicated.
Q. 36 What is Career Planning?
Ans: Career may be defined as various stages or sequence of jobs a person holds over a lifetime. There are a numerous opportunities for people to choose and work career planning helps an individual to choose the right type of job in the market.
It is a process through which an individual employee identifies, chooses and implements various plans to attain career growth and develops over our employees through various training and development programmes to enhance the qualification for future employment opportunities.
Q. 37 What is Strategic Career Planning?
Ans: Career Planning and development is strategic in the HRM priorities because the employee of today has high expectations about their jobs one of the most difficulties jobs HR managers have in industry in the idea of how to provides blueprint for career progression for the employees. Every employee is of the opinion that the only way to grow is to move up even a
‘fresher’ with one year of experience in the IT industry expects to move up the ladder. Rightfully so, his competencies have increased and jump on what all he deserves.

If this process gets delayed, they fell frustrated and that the company has been unfair to them. This creates a problem not only for employees, but also for management, which has to carry out its functions with a team of demotivated professionals. In this context, it becomes necessary fro organisations to view career management from a totally different perspective It’s a changing worlds, old business are dying, new ones coming up. Survival of the fittest in the order of the day. Organisation that are fast to change, are cost conscious, flexible and intellectually rich, well survive, the rest will perish.

The situation in the service industry is unique. Here, output is not in terms of material products, but satisfaction and happiness. Companies in the service sector need a flat structure to minimise bureaucracy, reduce decision-making time and enable smooth interface with customers. Mitsubishi corporation, in spite of being a trading company had a tall structure of late, HR interventions have reduced the tall structure to just three staff professional and senior professionals. This has helped the company in improving its performance from the last financial year.
 In a flat structure’s it becomes difficult for the company to provide a vertical growth path over a period of time. Hence, both the staff and the organisations have to look for different avenues for growth and development. The senior managers of today need to be sensitive to the psychology of work satisfaction of the knowledge workers to reduce the high employee turnover retain this source of competitive advantage and thus, raise their productivity. An employee will stay back in the organisation if the job matches his deeply embedded life interests.
 The dominant life interests of majority of Indian IT professionals is “Managing people and relationships and influence through language and ideas: They enjoy situation that requires thinking creatively finding out new opportunities, and generating new ideas and approaches to issues such as developing an advertising campaign for a new product, or creating a business plan for a new company – more responsibility, more accountability.

It has been found in a study that those companies who are committed to create a nurturing environment for employees have been successful in improving their productivity.

Encouraging employees to take up a course. In house and on-the-job

off-the-job training, using Intranet and Internet, knowledge management platforms can be established for employees to update themselves. Instituting a performance appraisal system, focusing on personal improvement as well as potential development, can further strengthen this process.

Lines managers can be trained in identify key talent and make them accountable to develop talent for the future. HR can prepare career development manuals for employees and managers, stating clearly what is required of them.

In addition, workshops can be conducted on career development. Organisations can prepare slots where such talent can be rotated from time to time. Their slots could be in other offices or departments or even countries. A fresh work environment can act both as a development tool as well as a listing ground for new talent.
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Q. 38 What is performance appraisal?
Ans: Performance Appraisal is education or the measurement of performance against some defined jobs. Such feedback is not only for evaluation purpose but also for the incentive and development purpose. An industry has to rely heavily or measuring the performance of individuals for varied purposes.
1.
To access the ability of the individual in order to make the best use of his talent in the present job.
2.
To find out areas of weakness in order to develop him for improving his performance.
3.
To provide for management succession by judging the potential for management succession by judging the potential of an individual.
4.
To effect changes in the organisation by transfers, reversion or promotions so as to fix the individuals in the setup according it must consider the trade off between recruiting employees for the new business areas and maintaining current employees who are more committed and undoubtedly more knowledgeable about the organisation.
Q. 41 What is strategic T&D?
Ans: Development is a process, which can enable each to reach a personal full potential. Development is therefore for the most part long-time focus. Training is more short-term aid in process of education, which helps individuals to master defined tasks or areas of skills and knowledge to pre-determined standards. Strategic T&D would change and develop the individuals and organisation process, systems and structures in line with the organisations present improvements needs and future strategies.
Q. 42 Explain the concept of human capital?
Ans: The idea that training and education is an investment in individuals, which is analogous to investment in Machinery originated with Adam Smith in 1776, Smith prepared that differences between the wages of individual with different levels of education and training, reflected differences in the returns necessary to defray the costs of acquiring these skills. In keeping with other form of individuals, investment, increasing the stock of human capital requires out lays now for returns sometime in the future. The return to capital would need to be higher than the return to physical capital to warrant over investment.
However, these are important differences investing in physical capital as opposed to human capital. While a firm may own the service of a machine, this dimension is missing from human capital. When investing in human capital, firms have fewer guarantees than they do with machines. This constitutes an important reason why firms may be reluctant to been all the costs of investing in human capital.
Q. 43 What is strategic learning?
Ans: When organisational learning results gaining a competitive edge over its competitors so that the future strategies can be achieved at a faster place. It enables every employee to feel that every experience provides an opportunity to learn something potentially useful even if only to leverage future.
Q.44 What do learning organisation learns and do?
Ans: The learning organisation learn to:
1.
Use learning to reach their goal.
2.
Help people realise the effects of their learning on the organisation.
3.
Avoid repeating mistakes.
4.
Share information in ways that prompt appropriate action.
5.
Link individual performance with organisational performance.
6.
Tie rewards to key measures of performance.
7.
Take in a lot of environmental information at all times.
8.
Create structure and procedures that support learning process.
9.
For to ongoing and orderly dialogue.
10.
Make it safe for people to share openly and take risks.
A Learning organisation does the following:

Learning collaboratively.
 Values ‘how’ it learns as well as what it learns.

Invests in staying ahead of the learning curve in the industry.

Gains a competitive edge by learning faster and smarter than competitor.

Turns data into useful knowledge quickly and at the right time and place.

Enables every employee to feel that every experience provides an opportunity to learn something potentially useful even if only leverage future learning.

Exhibits little fear and defensiveness rewards and learns from what goes wrong and right.

Total risks but needs jeopardizing basic security of the organisation.

Invest in experimental and seemingly tangential learning.

Supports people and trains who want to pursue action-learning projects.
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Q. 45 Explain the concept, payment by results.
Ans:
‘Payment by results’
scheme enumerates that compensation of an employee, which will be determined by the result achieved component upon the work of the employee. Here piecework is largely superseded by work-measured incentive scheme. This scheme has lot its popularity and applicability as this leads a platform of problem of fairness and equity in administrative such scheme. There may be many-many alien seasons for which the employee cannot complete the work on results are achieved.
Hence, the employee should not have made the sacrificial lamb. It has also been seen that such scheme generates to maximize output even at the cost of quality and decline in skills.
Q. 46 What is pay for competence?
Ans: ‘ Pay for competence’ is a reward scheme aimed at determining the compensation of an employed at determining the compensations of an employee on the basis of his competence. This competence is related to the measurability of the employer i.e., the compensation employed with a competitor firm in the market. To retain the competent employer sometimes they have to be paid on excellent amount.
Q. 47 What is spire?
Ans: Spire stands for S ystematic P rocedure for I dentification of R elevant E nvironment. It is a computer-assisted matrixgenerating tool for forecasting environmental change that can have a dramatic impact on operations.
Q. 48 Explain strategic management of motivations and rewards?
Ans: A number of strategic considerations are to be made for motivation and rewards. Frequently citied is the issue of market position. A policy decision needs to be taken whether the organisation will pay above the market position, need to be competitive and desired reputation as an employer.
Indirect benefits such as holidays, pensions scheme, sick pay benefits, represent a considerable cost. It is a sensible strategy to review there from time to time and to check on their cost effectiveness. But it is the area of non-financial rewards that most attention needs to be give once that the performance management system has been decided upon. Research evidence on motivation reminds us that employees desire intrinsic as well as extrinsic satisfaction from work. The satisfaction of intrinsic needs, such as feeling a sense of achievement with a challenging job, all have a major influence on effort and productivity.
Developing an appropriate organisation culture also influence motivation. A corporate culture of positive norms, shared values and leadership style that commands loyalty and respect will do much for motivation and productivity. The aim should be a balance between existence and intrinsic when designing and implementing a reward strategy.
Q. 49 How do you manage employee relations strategically?
Ans: The employee relations can be managed strategically managed by:

Communicating with the employee.

Recognition the achievement of the employee.

Empowering the employee.

Imparting effective training to the employee.
 Forming teams and overseeing teamwork’s.
Q. 50 Explain Delphi technique as a strategic planning tool and technique.
Ans: Delphi technique is an interactive judgements refinement technique on forecasting demand. It is based on development, evaluation and synthesis of individual points of view through an art of carefully designed sequential information and feedback of opinion derived from earliest responses. This technique can approach the accuracy of quantitative technique and does not require a historical database.
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Case-Study
Q. 1 Compare the approach to performance management in this case study with those generally adopted by Indian companies domestically? How are these approaches different?
Ans: Having been confronted with a variety of challenges ranging from expiry of patents to competitive market environment to efficient resourceing for supporting existing products. ICI pharmaceuticals adopted a new performance management programme replacing the task-oriented workforce performing without any synergistic cohesion. The legacy culture of intervolving people management skills was discarded ushering in a strategic change facilitating communication amongst the employees, development of employees and close prominently between staff and line managers.
The performance management functions were integrated with an improved communication strategy so as to inform each and everybody regarding company’s expectations. The performance management system was made objectively assessed to the extent possible so that performers can be identified and suitability rewarded. Apart from meeting the line managers were asked to reward the performers by meeting their emotional needs.
A comprehensive strategy functified in course of time, which was evident in reduced attrition rate, less disgiventlement and avert recognition of employees for self-development. In essence, the instant case study symbolizes the heralding of strategic change at ICI pharmaceuticals through an improved version of people management skills, supported by an integrated performance management mechanism.
To compare the performance management ICI with that in an Indian company following considers:
1.
In an Indian company, employees are generally considered isolated entities, when it comes to measuring their performance the individual performance, while the performance management systematized in ICI.
2.
Line managers are seldom made responsible for people management and developing work force in Indian context. In Indian company, the HR managers are made accountable for developing people. In ICI, line managers job description includes people management responsibilities.
3.
In performance appraisal Indian managers tend to become subjective. They are also subject to halo effect, necessary efforts, which results in co-evaluation of appraisal system. Not sets of guidelines are available with them for objective evaluation of each and every employee. Open endendness in evaluation system results in making potential appraisal. Lazy definition of small gaps and inconclusive assessment of other needs. In ICI, guidelines are framed to render appraisal objective.
4.
In reward planning, no Weightage in accorded to fulfilling the intrinsic and emotional needs of the employees. Material needs in the form of salary; fringe benefits promotions are considered the only means for rewarding the performers.
5.
The device for performance movement has always been in Indian scenario, the ability of the employee to complete a set of tasks within a given timeframe. How these tasks can be combined and integrated for meeting business objectives, have not been thought about. Hence, the performance management does not bring about an all around integrated development unlike their in ICI.
Q. 2 Is there not a danger of wide variations in rewards across the company as each function and development develops its own ward schemes? How might this danger be monitor and controlled?
Ans: In the instant case, each function and department develops its own reward plan reflecting business goals and priorities.
Implementation of reward plan is managed locally. The administration of each arrangement is exposed to the risk of disappropriate execution of the reward scheme where the criterion followed in one department is not applicable in other department or there may be a disparity in the quantum of reward to be planned across the departments.
In ICI, these disparities are minimised, if not eliminated. A set of guidelines has been framed to facilitate the administration.
1.
For equitable execution of the reward scheme, a set of guidelines have been put in place so as to help the lone managers evaluate performance objectively.
2.
Rewards are to be offered by the line managers through framework o9f budgetary constraints, which will help to effect uniformity in distribution of reward.
Consequently, the probability of topside ness is reduced in ICI by their suitable monitoring and controlling mechanism.
Hence an apparatus of auditing the reward administration mechanism within the department can enforce equitable execution without any wide local variation. Moreover, by dirt of an improved and effective communication strategy. The dangers envisioned can be eliminated.
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Q. 3 The views quoted in this case generally reflect management attitudes. Is performance management likely to appeal as strongly to non-management staff? How can the motivation of non-managerial staff be ensured?
Ans: Non-managerial staffs are the implementing tools in an organisation without their support and application no strategy can be activated and operationalised. However, it is often seen their contribution is not recognised when success is achieve, hence they feel disenchanted and demotivated. In order to spread the performance management message. The primary task of a line manager relates to communication. It is only through a communication explaining the task identifies and task significance, the non-managerial staff with full importance. The autonomy to non-managerial staff is also be ensured maximise their motivation level.
A line manager is also required to be creative in people management. He has to establish a well-defined work breakdown structure so that each and every employee reporting to him. A flat organisation structure, flexibility and open-door policy should be put in place, which will help in creating an atmosphere for communication to spread. On a day to day level thoughts and ideas are to be stimulating. The goals for individuals are to be set with clarity their in the gauntlet to achieve the means.
A strong appeal to improve and enhance the efficiency should percolate to all corners of the organisation. Given the means to overcome the odds stemming from demotivation, with communication, it is but sure that the performance management will propel the non-managerial staff to perform better and better to become a useful contributor to the success of an organisation.
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