HR Forecasting and Planning

7/28/2019 HR Forecasting and Planning

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1. INTRODUCTION

Those who work in the HR nowadays need the imagination of Steven Spielberg, the

incisiveness of Jeremy Paxman, the interviewing skills of Oprah Winfrey and the skin of

a rhinoceros tiptoeing between the political sensitivities of managers, the skill of Darcey

Bussell is hardly less essential. An organizations tendency to demand so much from HR

professional requires broad range of competencies, more than more functions in the

organization.

Two of the attributes that do not get nearly enough, though, are SRATEGY &

PLANNING. One thing we can do is contribute to strategy-setting in a way that is seen is

adding value.

STRATEGIC HUMAN RESOURCE FORECASTING (SHRF)in which we look

at the radar of organization and start joining up the dots as they appear on the screen.

HUMAN RESOURCE PLANNING (HRP) -- in which we take these patterns and

convert them into meaningful activity.

The demand for HR input at strategic level is there: chief executive officers increasingly

see people issues as critical to competitive advantage.

And the supply is there: there is the basis for the methodology for HR to excel at strategy

and planning. What we have to do is to pull everything together in a consistent and

professional way.


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Among the most important of these are performance management, knowledge

management, individual and organizational learning, and how to manage change. All of

these elements are within the domain of HR, and dealing with them will determine how

successful those responsible for HR will become. Taking a strategic view across the

organization is essential.


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2. STRATEGIC HUMAN RESOURCE

What decides whether in fact the human resource of an organization is used strategically

is how much the people of the organization- their attributes, motivation, development,

priorities and performancedirectly supports the companys strategic goals.

How, then, can human resources be used strategically?

Firstly, the people of the business must be genuinely recognized as critical to it. Secondly the human resources functions has to be an integral part of the strategic

planning and thinking within the business, and business managers need to

incorporate people issues into their strategic and tactical activities.

Thirdly, the HR strategy must not only support current business requirements butmust also prepare the business and its people for the growing demand for talent,

and the competition for the best human resource.

Human resources (with the talent it incorporates) is likely to become the key

differentiator for innovation, for understanding customers, for managing human

relationships and for developing the business.


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A great deal is expected of people who work in HR. not only are we asked to deliver six-

sigma quality in recruitment and training, reward, industrial relations, employee

communications and organisation design, we also have to be strategists, employee

champions and business partners.

HR is a very diverse, challenging and satisfying profession. The management of strong

effort combined with investment in new technology is a significant contributor to growth

and prosperity.

A New Paradigm for HR:

HR is becoming multi-disciplinary and has to embrace new concepts as it strives to

succeed in its overall strategic direction. The US journal of Cost Management

contained an article about skills-based human capital budgeting. The article forecasts that

human capital planning would become a strategic driver because a key issue facing

organisations was ensuring that the right people with the right skills are in the right jobs

in the right time.

HR cannot afford to have a restricted view of the future. It has to be expansive in its

outlook. Right now, imagination is as important as knowledge for HR professionals. The

role of HR is to make sure that people receive all the considerations possible in times of

organisational decision-making.


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In the new business paradigm by which people are the enablers of long-term

organisational success, HR professionals play an important role. They have to deliver not

only operational excellence in our traditional roles of personnel and training, but also

strategic value added through our unique knowledge of people dynamics. This is a

combination of practical efficiency and professional insight.


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3. THE IMPORTANCE OF PEOPLE TO ORGANISATIONAL

SUCCESS

In the new business paradigm by which the people are the enablers of the long term

organisational success, HR professionals play an important role. There is an acceptance

that organisation has to get the people things right. If they fail to, people will walk away,

there is customer dissatisfaction, the organisation suffers, the shareholders value falls.

This raised profile of people in organisations is something of double-edged sword for the

HR profession. At long last they are getting the recognition that has long been denied- but

now they also have to deliver on the strategic stage and come up with more contribution

than the excellent transactional activity for which they are respected. They have to deliver

not only operational excellence in our traditional role of personnel and training, but also

strategic value added through our unique knowledge of people dynamics. This is a

combination of practical efficiency and professional insight.

Today there is a greater recognition for forecasting and planning, which has been

precipitated by the economic adjustment that came about when the new economy turned

out to be different than expected.


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4. HUMAN RESOURCE PLANNING AND FORECASTING

Human resource planning was born as different approach. Il was an attempt to make

the process a more dynamic and iterative one. Human resource plan consists of a range

of tasks designed to ensure that a appropriate number of right people are in the right place

at the right time. In essence it involves assessing the current levels and utilization of staff

and skills, relating the internal elements to the market demand for the organisations

products, and providing alternative to match human resources with anticipated demand.

But most importantly it is fundamentally a dynamic process that endeavors to monitor

and manage the flow of people into, through, and out of organisation.

A Successful Approach To Human Resource Planning

The key considerations for successful Human resource planning can be listed as: HR planning must always be seen within the strategy making context. Human resource planning can most usefully be defined as the relatively specific

element of HR making that proposes appropriate action with regard to human

resourcing.


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HR planning involves creation of formal and explicit sets of proposals intended toachieve actions that will help achieve long-term organizational performance.

The challenge is to propose actions that contribute to the long-term corporatesuccess, not only by being prepared to take into account surprise circumstances

but also by introducing new ways of thinking.

This requires sufficient flexibility or openness about the direction proposed. It also requires that there are opportunities for variety of individuals and groups

that make up an organization to have an input into both the thinking and the

action implicit in the planning.

The systems and processual perspective provides two different ways of viewingthe relationship between and organization and individuals who constitute that

organization.

HR planning involves a combination of thinking and acting. This involvesincorporation of continual experimentation, revision and rethinking in which

processes of argument, debate and conflict between different managers and

interest groups play a part.


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4.1 Strategy, Planning And Forecasting For HR Professionals

The main reasons for the use of strategic human resource forecasting and human resource

planning are:

to ensure that organization takes into account of people as contributors to its

success by recognizing their unique contribution to strategic direction and performance.

to align and integrate people strategies with organizational strategies.

to ensure that the demand of people numbers, knowledge, skills, attitudes and

values are matched with the supply of these attributes.

to provide a process by which people considerations are raised early in the

strategy-setting.


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4.2 The Process of Forecasting

The SHRF is based on the iterative process that takes its initial feed from the business or

the organisational strategy and works through the strategic dialogue to the HRP, the

people output of strategic planning.

The component parts of the SHRF are summarized as follows:

1. Establishing business or organisational strategy or strategic options:

This requires a good understanding of the business implications of the strategies that are

being proposed. The involvement of HR at this point is increasingly accepted part of

business planning cycle because of the recognition that inappropriate skill sets,

organisation design or culture can impair the chances of strategic success.

2. Creating HR scenarios:

Scenario planning means trying to anticipate people implications of the possible strategic

options. For each of the strategic options that are identified, a series of HR scenarios can

be created.

3. Assessing demand:

This step includes the process to assess the number of people needed for the HR plan.

The various other factors that are critical to the aspect of strategy that relates to demand


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for skills. The demand forecast will stem directly from the financial, sales or production

forecasts.

4. Assessing the supply:

Supply factor include an internal analysis of potential, but have a particular focus on the

external variables such as demographics, overall country or regional skill levels, and so

on.


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4.3 Creating Hr Scenarios

Scenario planning is preparing for the unexpected. It is a way of building a mindset

aimed at anticipation. It represents, an attempt to sidestep or circumvent the hazards

predicting, and in process to reap certain mental and practical gains that are commonly

sacrificed in a single track predicting.

The second aspect of the strategic human resource forecasting process is to look at

scenario-planning as a way of addressing critical issues. Scenario planning is inexorably

linked with creative thinking. Imaginative solutions to the problems created by expanding

targets in competitive world can be enhanced by instituting creativity as part of the

intrinsic make-up of the organisation.

In some organisations Scenario planning is a Blue-Sky type of activity, in which those

involved in strategy setting process think the unthinkable or dream up left -field options

for the organisation.

It is thus summerised as a way of anticipating changes in the external environment that

will impact positively or adversely on both the organisations goals and the means of

achieving them. Scenario-thinking is response to fallibility of prediction-making in the

business or organisational environment. The strategic human resource forecast represents


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an ideal opportunity to incorporate some scenario planning into the people aspects of the

strategy.

In its purist sense scenario-planning tries to imagine the future at its most unpredictable.

The following are the steps involved in creating a scenario:

1. Consider possible scenarios: after having looked at the possible options that

might arise from the business strategy, it might be possible to plan out some scenarios in

advance and be prepared to face the possible contingencies that will arise from the

situation.

2. For each scenario identify a range of HRoutcomes: the next stage will be after

formulating an input to the scenario to identify a range of possible outcomes. This is an

exercise in broadening the vision beyond the organic and incremental. it is certainly an

exercise in moving out of box.

3. Identify success and disaster possibilities: once the possible outcomes from the

various scenarios have been identified, two important questions should be raised:

i. What would success look like?ii. What are the risks to and the possible show-stoppers of these outcomes?


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4. Identify difference between current position of the organisation and desired

future position: Once the scenario has been created, once the HR outcomes have been

identified, once the plan is beginning to emerge, then gap analysis should start. As in HR

outcomes aspect of scenario, gap analysis will facilitate action-planning once one

projected scenario becomes firm.

5. Identify successful actions and measure of success: At this point there will be

several inputs to the scenario. It is worth sanity-checking the whole process with those

responsible for establishing the scenario, to evaluate what the outcomes have been and

how beneficial they are. One of the important aspect of this part of scenario-planning

process is time and timing.


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4.4 Assessing The Demand For The People

Strategic resourcing

Attracting, development and retaining the right personnel for business today is what lies

at the root of the corporate success or their failure. The alignment of corporate and

personal values should lie at the root of any recruitment exercise, whether recruiting a

CEO or manual worker.

There is a responsibility on everyone who is recruiting to devote sufficient time and

understand and clarify exactly what is required. One should also look forward to the

development and retention of each recruited individual both in personal terms and in

developing the business. The result then will not be a repetition of the recruitment

process and a static or decreasing business.

The demand for the people

The demand and supply are the yin and yang of the SHRF: two complementary

activities- not of Chinese philosophy but of very real challenge of getting enough people

to fill the posts created by strategy. Attaining equilibrium is very desirable objective by

having good understanding of the labour market.


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In theory, demand forecasting should be more straightforward than supply

forecasting as demand forecasting is based on the interpretation of the organizations

business plans. The outputs of the demand forecast are likely to be:

An estimate of the numbers required to achieve the business strategy in one tothree to five years time.

An understanding of how will these employees will work, by division or bylocation

An understanding of the types of skills required, including an estimate of howmany skilled people will be required within each skill type.

The process for deriving a demand forecast :

1. The business or organizational strategy determines the likely people requirements

in terms of numbers, location, skills, etc.

2. Quantify people requirements by total numbers

3. Quantify requirements by business unit or division

4. Quantify requirements by location

5. Quantify requirements by skill types

6. Prepare an initial demand forecast

7. Feedback to business manager


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4.5 Assessing the Supply Of The People In The Organizations

HR would not be HR without its essential raw material- PEOPLE. A forward look at the

number and quality of the people available in the jobs market is therefore necessary

prerequisite of strategic HR. people supply in particular external supply is an

important determinant of whether an organization will be able to deliver its required

levels of performance. Supply if generated by internal and external sources of labour and

includes supply of skills.

The process for deriving a supply forecast

1. The business or organisational strategy informs internal supply of people.

2. Environmental analysis used to inform likely external sources of supply.

3. Quantity of supply analysed by total numbers.

4. Quantity of supply analysed by location.

5. Quantity of supply analysed by skill types.

6. Quantity of supply analysed by business unit.

7. Feedback to business managers.

8. Input to the HRP.

9. Measures of the implementation set.


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4.6 Culture In The Strategy Process

Culture is the context within which the individuals and the groups operate. For an

organisation, it comprises a set of beliefs, values and emotions that enable its members to

work effectively. In most companies, the cultural context is assumed: newcomers absorb

the unwritten rules through a process of observation, trial and error-otherwise, they face

rejection. Successful companies establish a culture that fits their operating models.

In the era of gradual change, the culture of the company adjusts over time to new market

requirements and opportunities. Today, however, the pace of change in the economy-

driven by the interlocking forces of the globalization, technological innovation,

deregulation and government intervention is such that the company is forced to adapt

their operating models far more quickly to remain competitive.

With the acceleration of the changes in the competitive environment, it becomes vital to

synchronise changes in business processes, organisational changes and reward systems

with the appropriate shifts in the culture.

Changing culture is therefore not about building a company it is necessary to create an

organisation that can deliver hard results.


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The cultural implications of strategy

The cultural implications of business strategy continue to be serious matters of the HR

personnel. And there is evidence that cultural issues, always important, are now

becoming more appreciated. Understanding the culture of an organisation is a

prerequisite to managing any sort of change. HR personnel have a major role to play as

the voice of the culture in the organisation analysing and articulating what it is, and

doing something about it.

The importance of understanding culture

Assessing the culture and style of the organisation and how appropriate they are to the

future direction and strategy is critical. It is an era that is one of the softer aspects of

HRM. and as the result of often parked.

When organisation fails to recognize cultural issues during the strategy setting process, it

has an impact on the ultimate success or failure of the strategy. The possibility of

building a culture that values difference in the race, gender and ability should enthuse

everyone in the organisation. An organisations culture is pervasive. It can also stifle the

change or innovation if mismanaged or misunderstood. Organisational culture is a

powerful forceand now there is a growing recognition that its management is important

facet of organisational success.

Every organization has a culture, and the way the human behavior expresses itself - in

both speech and actiondefines that culture.


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The ways in which culture shows itself in organization are illustrated below:

The way in which people interact, their forms of address, and language they use

The dress code.

The way in which work is organized and conducted.

The organizations self-image and the dominant values it espouses, often through

its mission statements, company and product literature.

The way in which it treats its employees and responds to its customers this is

often reflected in the physical facilities provided in the organization.

The rules for playing the organizational game e.g. the types of behavior

associated with being a good employee or effective manager.


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The process of assessing the cultural implications of strategy

1. Highlight the possible changes to strategy from the overall strategic plan.

2. Conduct a cultural audit for the existing organisation

3. Assess the cultural implications of the new business strategy

4. Identify culture gaps

5. Communication, education and HR practices to develop required culture

6. identifying measures of success

7. Monitor the cultural change


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5. CASE STUDY

ONIDA

Onidas principal assembly operations are conducted in a state-of-the-art plant at Wada,

80 kms from Mumbai. The plant in Delhi caters to the production requirements for the

Northern region. Our network of 29 branch offices, 140 service centres and 35 godowns

across India, enable products to be always available on retail shelves.

At Onida, we recognize that we can strengthen our competitive edge if we produce as

much as possible from a given capacity at the lowest possible cost. We reduced the time

it takes for a single colour television to be produced from 20 seconds to 12 seconds and

increased the capacity from 0.5 million to 1.2 million sets during the year under review.

In 2002-3, we extended our manufacturing excellence a decisive step forward: by

entering into the manufacture of washing machines and air conditioners at the Wada

factory, using our existing infrastructure.


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5.1 Vision Statement

To be the number one brand in our chosen fields and to be recognized as one of the most

prestigious organizations evoking pride of ownership by offering unmatched quality

products through Innovation, Speed, Flexibility and Empowered Employees.

The vision is the guiding principle: a dream that is realistic, credible and achievable.

Successful leadership that results in quality performance begins with the vision of what a

leader and his/her followers intend to accomplish.

Corporate Statement

To benefit society at large - through innovation, quality, productivity, human

development, and growth, and to generate sustained surpluses, always striving for

excellence, within the framework of the law and with pride in ethical values.


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5.2 RESEARCH AND DEVELOPMENT

At Onida, we recognize that a vigorously intelligent research initiative works at two ends:

cost reduction through effective process improvement, and value-addition through a

sustained ability to put innovative and customised products in line with customer needs.

We have team strength of 64 Engineers, working from our R&D centers in Mumbai,

Delhi and JVC collaborative development center in Japan.

The team conducts research in the areas of:

Embedded Software

Industrial Design

Mechanical Engineering

Electrical Engineering

Model Shop

Some of Onidas Achievements

Launched 16 new models compared to 14 in Year 2001-2002

Movie-like experience to TV Programs with Onida KY Theatre, a home theatre

built into a television, the first such launch in the Indian television industry.

The product provides a 5.1 Channel output, independent of whether the source was a

mono, stereo or 5.1 channel Dolby stereo recording, done for the first time anywhere in

the world.


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High picture clarity with DVMC (Digital Velocity Modulation Circuit)

technology, one of the best in the world, ensures uniform scanning at the centre and

corners - the ultimate in flat TV technology with Onida Black.

Awesome digital sound with (((KY Inside)))

The indigenous efforts of the inhouse R & D team helped create the `KY Inside`

technology which has become an industry benchmark in acoustic engineering for

televisions.

Product extension: Sustained efforts by the team has helped Onida to create a

strong presence in technology-heavy product categories including presentation products,

plasmas & LCDs among others.


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5.3 HUMAN RESOURCE INITIATIVES

Mr. A.C. Augustine (Vice President HRM)

Initiatives for a performance-driven work culture

To ensure a robust performance-driven work culture, the HR team at Onida undertook the

following initiatives:

1. A role clarity exercise was carried out for the entire Mirc team through one-to-one

sessions. Competencies required for each position were identified and linked to

performance and training. Based on performance, individuals were either retained or

redeployed.

2. Through a senior management workshop, the company revisited its vision, mission and

values statements and the result was re-articulated.

3. To link values and performance, employees were required to explain how they planned

to align their performance with the corporate value system.

4. The company engaged Gallup to identify engaged (take the organisation ahead),

disengaged (seize the first alternative job opportunity) and highly disengaged (no point in

staying on) individuals.

5. Talent management programmes and capability development studies were conducted

to convert the disengaged into engaged individuals.

6. A nationwide MIS transmitted recruitment-attrition data with speed and helped

individuals vocalise problems.


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7. An online induction programme shrank the absorption process, resulting in a shorter

learning curve. A week-long flagship MDP programme for middle-management

executives was conducted by the IIM Ahmedabad faculty to focus on strategic thinking,

people skills and finance.

8. A lateral thinking workshop conducted by trainers certified by Edward de Bono

helped encourage a culture of thinking out of the box among the strategic planning cell,

R&D and production teams.

9. An NLP programme for factory, corporate office and branch employees helped

energise and maximise peak performance.

10. Attitude-building programmes were conducted for all factory workmen. A four-day,

holistic personal growth lab for the top management by Dr. Girish Shankar focused on

the self balancing the professional and personal life. Workshops in skills, project, and

stress and negotiation management were also conducted.

11. Quantifiable KRAs, relating salaries to the multiplication of KRA scores helped the

company migrate to a performance-oriented culture.

12. Star performers were identified and their competencies were reinforced through

relevant responsibility-enhancing programmes.

13. The company recruited 15 management trainees from the IIMs for its marketing and

strategic planning cells and 15 MTechs from the IITs for its R&D and production

departments.


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5.4 HUMAN RESOURCE MANAGEMENT IN ONIDA.

1. Strategic Planning

The strategic planning known differently as Strategic Stair casingExercise is framed

by ONIDA.

It is planned every 3 years.

The last plan was commenced in the year 2001-2004.

The plan comprises of all the factors relating to the corporate matters concerning

products and Human resource.

Manpower plan is prepared by the HR department to assess the supply and demand of

the human resource.

The entire department conducts brainstorming session in the company and decides on

the necessity of recruitment.


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2. Goal setting

The goals and targets are formulated by the top level management as a whole as an

overall objective of the company.

Further, these goals are cascaded according to the functions of the company by the

senior executives and the HR team.

The goals are again segregated into departmental goals by the HR team and the middle

level executives.

And finally into individual goal by departmental head to its subordinates.


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3. Job Analysis and Design

Job analysis is done periodically of every post and position in the company.

Reviewing is done in interval to assess the validity and to make necessary modifications

if required.

The latest reviewing of Job analysis was done in year 2003.


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4. Recruitment plan

The company provides Application blank to the applicants.

The recruitment is conducted by ONIDA by considering 3 categories:

Job fit: this specifies the minimum qualification, work experience required, job

compatibility.

Culture fit: specifies the background of the applicant, cultural factors, and person is

aligning with the corporate culture.

Value fit: assessing the relative worth of the individual through probing in interview.

The company contacts placement agencies for acquiring required personnel.

The placement agency sends bio-data of the suitable applicants.


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5. Selection plan

The company sends Application blanks to the applicants whose rsum has been

selected.

The HR department sorts the eligible applicants form the data received from the

placement agency.

The short listing is done on the basis of Job fit Criteria.

Then the applicants are called for screening test.

Further the applicants selected in the screening test are called for preliminary interview.

This is done by the HR team and the head of each department.

Next step involves filtering of the selected applicants from the interview.

The applicants chosen from filtration are assessed by the senior level management with

the functional head concerning the respective department.


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6. Placement Programs : Orientation/Induction

The orientation programme is for 2 categories of people recruited:

Freshers:

The employees recruited from campus and institutions, have 3 month induction

programme.

--Classroom training is provided for 1 week.

--2 months on assignments, projects to ascertain interpersonal skills.

--15 days in the branch.

Experienced:

The employees who have considerable years of work experience has a formal induction

programme where he/she is introduced to the company people by the CEO or the

Manager.

They are also taken to a days visit to the Factory premises.


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7. Training and Development

Every year the company publishes Competence Development Calendar which includes

all the training and development programmes to be held throughout the year.

In-house training:

20% of training is given by the company personnel to the new entrant. The in-house

training could be conducted within the company or in any hotel/resort. It could be in form

of workshops or seminars.

Contractual:

80% of the training is imparted by the hired trainers. They train the employees according

to job description.


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8. Performance Appraisals and Evaluation.

The company does performance appraisal annually along with job evaluation.

The technique used is to set parameters, corporate objectives, and measures and rank

the employee according to set target achieved by him in percentage.

This is compared with the previous appraisals to record the growth in performance and

to assess the need for training.

The appraisal reviewing is done every 6 months by the HR department to keep the

records updated with the performance of the employee.


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9. Communication

The communication channel is both vertical and horizontal.

The company uses internet for communication.

Newsletters to provide general information about the happenings in the organisation in

and around the industry.

Annual magazine is published by the company named, ONIDIAN.

The other modes of communication are conferences, meetings between the executives

vertically and between employees horizontally.


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10. Reward and Punishment system

The company rewards on monetary terms to the employees for their outstanding work

efforts.

No intangible reward like appreciation or recognition is promoted.

There is no direct punishment system. But only indirect by way of counseling and

warning to the employee is punished.


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11. Employee Satisfaction result

The ONIDA company initiates employee satisfaction survey periodically.

The technique used by the HR department is, Galobs Employee Engagement theory

of satisfaction.

Here, the employees are graded into 4 slots according to satisfaction survey conducted

by the HR personnel,

The results of the survey are presented to the top level management.

Employees falling in the Disengaged category are given vigorous training program.


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12. Compensation Policy

The compensation policy of the company is equal for every employee.

The compensation policy covers all the items specified under the law.

Every employee is covered under Medical Policy.

The employees are also covered under ESIC.

The employees are also given Mediclaim.


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13. Incentive payments

The company uses the Differential payment strategy.

The employees falling into the D category i.e. 10 % employees are dispelled form the

company.

This system enables the company to keep a track on the potential employees.

The employees falling in the A and B categories are given monetary incentives in the

form of kind.

The C category employees are provided training and development sessions to help

improve their performance.


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14. Employee benefits and development

The employees are provided various developmental facilities like 1-2 days of

outbound sessions.

They are provided with counseling programmes.

The employees are given Medical facility for his/her spouse and two children.

They are also given Educational Facility for their two children.

The company provides conveyance facility and Car facility to the employees at

certain designation.


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15. Retentions policy

In case where individuals are identified as prospect employees, the company

implements retention policy.

According to the policy, the employees are directed towards career progression

path and are given training and development programmes to groom their skills and

ability.

These employees are then considered for internal recruitment as a motivational

tool.


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16. Union relations

ONIDA has a strong union presence.

There is separate department, Industrial relation department which handles the

union matters.

Recently there was dispute between the company and the Union because the

company had closed down one of its Service Sectors.

There was a case filed in the same case where the company won the battle.

The labourers where given compensation and the wage due to them by the

company.


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17. Leave

Every employee is allowed 135 days leave in a year excluding public holidays.

Every second Saturday is granted as holiday.

They are compensated for the extra working hour put by them during holidays.

The employees have to compulsorily submit leave application to his immediate

boss.


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18. Exit Interview

The employees who wish to leave the company are required to give a two months

intimation to the company.

The company conducts Exit Interview to know the reason behind the separation.

The HR personnel, Mrs. Priyanka Ajay, are of the opinion that usually the

employees do not reveal the true reason behind the decision.

They generally assess the reason through probing by asking them to narrate any

incidence which was unpleasant to their experience.


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19. Absenteeism

There is no serious problem such as absenteeism in the company.

This problem is usually faced in the Sales department as the employees stop

coming to work only when they intend to leave and they have fear of confrontation.

Here, the HR department traces the person to know exactly the reason for their

absence to curb the problem.

20. Turnover

The company has a turnover rate of 12 % to 15% annually.

The company tries to evaluate the reason for separation by way of probing and

negotiating terms with the employees who are identified as potential for the company.

The company considers this keeping into mind the interest and wellbeing of other

employees in the company so as to not to disturb their environment.


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21. Promotion, Transfers and Separations(VRS system)

The company promotes executive who have been under the training and grooming

programme conducted by the company who are selected as eligible employees.

The promotion is a part of employee retention policy and motivation technique.

The transfers are done as a part of job enrichment and job rotation scheme.

The employees are transferred interdepartmentally or within the same department

as a policy of job rotation.

The employee is given projects, assignment, OJT, Competency level training as a

part of Job enlargement policy. This creates a pool of talent for the company.

The company gives VRS in case of downsizing. The employees are given 5 years

computed VRS.

In some cases, the company makes compulsory for the employee to opt for VRS

where the company wants to separate its employee.


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22. Employee record planning

The HR department has the responsibility to maintain employee database.

It is done with the help of computers.

All the surveys reports and appraisal reports are saved in the hard disc.

The HR department does periodic review of the reports to keep them updated.

23. Stress management programs

ONIDA initiates a very effective stress management programmes for the

employees for their mental and physical relaxation.

The employees are taken to 2-3 days in any yoga or stress management

programmes sponsored by the company especially.

There, various sessions of yoga, meditation, and stress busters are undertaken by

the experts and employees are trained under them.


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6. CONCLUSION

Todays intensely competitive and globalized marketplace, maintaining a competitive

advantage by becoming a low cost leader or a differentiator puts a heavy premium on

having a highly committed competent or workforce. Competitive advantage lies not just

in differentiating a product or service or in becoming the low cost leader but in also being

able to tap the companys special skills or core competencies and rapidly respond to

customers needs and competitors moves. In other words competitive advantage lies in

managements ability to consolidate corporate-wide technologies and production skills

into competencies that empower in individual businesses to adapt quickly to changing

opportunities.

In a growing number of organizations human resources are now viewed as a source of

competitive advantage. There is greater recognition that distinctive competencies are

obtained through highly developed employee skills, distinctive organizational cultures,

management processes and systems. This is in contrast to the traditional emphasis on

transferable resources such as equipment. Increasingly it is being recognized that

competitive advantage can be obtained with a high quality workforce that enables

organizations to compete on the basis of market responsiveness, product and service

quality, differentiated products and technological innovation.

Strategic human resource management has been defined as the linking of human

resources with strategic goals and objectives in order to improve business performance

and develop organizational culture that foster innovation and flexibility . Strategi c HR

means accepting the HR function as a strategic partner in the formulation of the


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companys strategies as well as in the implementation of those strategies through HR

activities such as recruiting, selecting, training and rewarding personnel. Whereas

strategic HR recognizes HRs partnership role in the strategizing process, the term HR

Strategies refers to specific HR courses of action the company plans to pursue to achieve

its aims.

HR management can play a role in environmental scanning i.e. identifying and analyzing

external opportunities and threats that may be crucial to the companys success. Similarly

HR management is in a unique position to supply competitive intelligence that may be

useful in the strategic planning process. HR also participates in the strategy formulation

process by supplying information regarding the companys internal strengths and

weaknesses. The strengths and weaknesses of a companys human resources can have a

determining effect on the viability of the firms strategic options.

By design the perspective demands that HR managers become strategic partners in

business operations playing prospective roles rather than are being passive administrators

reacting to the requirements of other seeing themselves as relationship managers to

resource managers knowing how to utilize the full potential of their human resources.

The new breed of HR managers needs to understand and know how to measure the

monetary impact of their actions, so as to be able to demonstrate the value added

contributions of their functions. HR professionals become strategic partners when they

participate in the process of defining business strategy, when they ask questions that

move strategy to action and when they design HR practices that align with the business


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strategy. By fulfilling this role, HR professionals increase the capacity of a business to

execute its strategies.

The primary actions of the strategic human resource manager translate business strategies

into HR priorities. In any business setting, whether corporate, functional, business unit or

product line a strategy exists either explicitly in the formal process or document or

implicitly through a shared agenda on priorities. As strategic partners, HR professionals

should be to identify the HR practices that make the strategy happen. The process of

identifying these HR priorities is called organizational diagnosis, a process through which

an organization is audited to determine its strengths and weaknesses.

Translating business strategies into HR practices helps a business in three ways. First, the

business can adapt to change because the time from the conception to the execution of a

strategy is shortened. Second, the business can better meet customer demands because its

customer service strategies have been translated into specific policies and practices.

Third, the business can achieve financial performance through its more effective

execution of strategy.

In brief, a strategic perspective of HRM that requires simultaneous consideration of both

external (business strategy) and internal (consistency) requirement leads to superior

performance of the firm. This performance advantage is achieved by:

Marshalling resources that support the business strategy and implementing the

chosen strategy, efficiently and effectively.


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Utilizing the full potential of the human resources to the firms advantage.

Leveraging other resources such as physical assets and capital to complement and

augment the human resources based advantage.


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7. BIBLIOGRAPHY

1. HR FORECASTING AND PLANNING by PAUL TURNER

(HR Business Director for LLOYDS TSB and VICE PRESIDENT of the CHARTERED

INSTITUTE OF PERSONNEL AND DEVELOPMENT)

Published by Chartered Institute of Personnel and Development.

2. HUMAN RESOURCE AND PERSONNEL MANAGEMENT by K

ASWATHAPPA

3. WWW.GOOGLE.COM

Documents

HR Forecasting and Planning