HRD Strategies for Longterm Planning Growth and Productivity and HRM

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    DR. D. Y. PATIL DEPARTMENT

    OF BUSINESS MANAGEMENT

    A project report on

    HRD Strategies for LongTerm Planning and Growth

    &Productivity and HRM

    Submitted To:Prof. Sapna Suri

    Submitted By:Group No.10

    MBA- IInd

    SEM (CORE)Class - 4B

    Date: 27/04/09

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    Group Members

    Sr. No. Name Roll No.

    1 Shrikant Shinde 142

    2 Shubhangi Chavan 143

    3 Shweta Mahulkar 144

    4 Shyam Mishra 145

    5 Shyam Chettiar 146

    6 Siddharth Agarwal 147

    7 Siddharth Shiva 148

    8 Siddharth Singh 149

    2

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    INDEX

    SR.

    NO. TOPICS

    PAGE

    NO.

    COVERED

    BY:

    1. Introduction to HRM Strategy 4

    2. Importance and Benefits of Strategic

    Mnagement

    5

    3. Role of HRM in Strategic Management 5

    Siddharth Shiva

    ( Roll No. 148)

    4. Human Resource Development (HRD) 6

    5. Proactive HRD Strategies for Long Term

    Planning & Growth

    7

    6. Process of HRD Strategic Planning for

    Long Term Planning & Growth

    8

    Siddharth Singh

    (Roll No. 149)

    7. Policies concerning HRD Strategies for

    Long Term Planning & Growth

    9 Siddharth Agarwal

    (Roll No. 147)

    8. Productivity and HRM- Introduction 13

    9. TQM 13

    Shyam Mishra

    (Roll No. 145)

    10. Benchmarking 18 Shrikant Shinde

    (Roll No. 142)

    11. Re-engineering Work Processes 21

    12. Flexible Manufacturing System (FMS) 22

    Shweta Mahulkar

    (Roll No. 144)

    13. Six Sigma 25

    14. Economic Challenges 31

    Shubhangi Chavan

    (Roll No. 143)

    15. Work-force Diversity 31

    16. Conclusion 33

    17. Case Study 34

    Shyam Chettiar

    (Roll No. 146)18. Bibliography 35

    INTRODUCTION

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    Human Resource Management Strategy:

    Strategy is a way of doing something. It includes the formulation

    of goals and setting of action plans for accomplishment of that goal.

    Strategic Management:

    A Process of formulating, implementing and evaluating business

    strategies to achieve organizational objectives is called Strategic

    Management

    Definition of Strategic Management:

    Strategic Management is that set of managerial decisions and

    actions that determine the long-term performance of a corporation. It includes

    environmental scanning, strategy formulation, strategy implementation,

    evaluation and control.

    The study of strategic management therefore emphasizes

    monitoring and evaluating environmental opportunities and threats in the light

    of a corporations strengths and weaknesses.

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    IMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT:

    1. Allows identification, prioritization and exploration of opportunities.

    2. Provides an objective view of management problems.

    3. Represents framework for improved co-ordination and control.

    4. Minimizes the effects of adverse conditions and changes.

    5. Allows major decisions to better support established objectives.

    6. Allows more effective allocation of time and resources.

    7. Avoids ad hoc decisions.

    8. Helps to integrate the individual behaviors.

    9. Encourages forward thinking.

    10. Encourages favorable attitude towards change.

    ROLE OF HRM IN STRATEGIC MANAGEMENT:

    Role in Strategy Formulation: HRM is in a unique position to

    supply competitive intelligence that may be useful in strategy formulation.

    Details regarding advanced incentive plans used by competitors, opinionsurvey data from employees, elicit information about customer complaints,

    information about pending legislation etc. can be provided by HRM. Unique

    HR capabilities serve as a driving force in strategy formulation.

    Role in Strategy Implementation: HR Manager helps strategy

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    implementation by supplying competent people. Additionally, HRM facilitates

    strategy implementation by encouraging proactive thinking, communicating

    goals and improving productivity and quality.

    HUMAN RESOURCE DEVELOPMENT (HRD)

    Human Resource Development is a process to help people to

    acquire competencies and to increase their knowledge, skills and capabilities

    for better performance and higher productivity.

    Definition 1:

    HRD is a process of enhancing the physical, mental and emotional capacities

    of individuals for productive work.

    Definition 2:

    HRD means to bring about the possibility of performance improvement and

    individual growth.

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    PROACTIVE HRD STRATEGIES FOR LONG TERM

    PLANNING AND GROWTH

    Employee retention has become bigger challenge than employeehiring today. With trade unions breathing their last, and easy job availability,

    employees have developed propensity to switch jobs for minor reasons

    without voicing their protest. Thus, HRD has to take a proactive approach, that

    is, to seek preventive care in human relations. By using HRD strategies,

    maximization of efficiency and productivity could be achieved through

    qualitative growth of people.

    Long-term growth can also be planned by creating highly inspiredgroups of employees with high aspirations to diversify around core

    competencies and to build new organizational responses for coping with

    change.

    A proactive HRD strategy can implement plans directed at

    improving personal competence and productive potentials of human resources.

    Following strategic choices can be considered which would help

    todays organizations to survive and grow.

    Change Management: Manage change properly and become an effective

    change agent rather than being a victim of change itself.

    Values: Adopt proactive HRD measures, which encourage values of trust,

    autonomy, proactive approach and experimentation.

    Maximize Productivity and Efficiency: Maximize productivity and

    efficiency of the organization by helping qualitative growth of people.

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    Process of HRD Strategic Planning for Long Term Growth:

    A strategic human resource planning helps the organization in achieving its

    overall objectives. This approach involves creating and managing functions

    like staffing and services, based on the strategic goals, eliminating any hurdles

    in the process. The process to be followed is explained in brief:

    Understand the specific business objectives and their priorities, based on

    the overall strategic objectives.

    Understand the internal and external factors that might hinder objective

    achievement as the organizational policies and procedures need to bechanged accordingly.

    Determine the responsibility and accountability for each objective. Also

    identify the internal customer.

    Identify the alternatives for achieving the business objectives.

    Translate these business objectives into specific human resources policies

    and programs.

    Determine the resources required to achieve these business objectives.

    Analyze the impact on HR policies and programs, if each business objective

    is not achieved.

    Assess each objective in terms of money and time required.

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    Identify where efficiencies can be achieved.

    Determine the staffing requirements to meet the business objectives,

    including the level and timing of staffing; employee competencies; the

    surplus and demands.

    Policies concerning HRD strategies for long term planning and

    growth:

    The major considerations in personnel policies concerning HRDstrategies for long term planning and growth in organization are:

    Recruitment of right personnel:

    Well-qualified and they must match with the respective corporate

    values and philosophy of the Companies. For example: In Reliance Industries-

    entrepreneurship, risk taking & the will to win- personal contacts is considered

    while recruiting for top positions; In Hindustan Lever- the policy is to have

    promotions from within they emphasize on professionalism, convent-

    educated and sharp dressed candidates, toppers from all IIMs and IIT'S; In

    Infosys Technologies- The criteria is to select candidates from middle class

    communities people brought up in traditional, conservative homes but who

    have superior academic records, technical skills and ingrained capacity for

    hard work. Written Tests are conducted to identify individuals with high learn-

    ability, both in terms of willingness. They tend to eliminate over ambitions &

    competitive stars through the interviewing process.

    Development of Personnel:

    The Policy Issues involved are:

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    Determination of Training methods to be followed on the job/off the job.

    Intensity of Training Level of employees, Frequency, resource persons,

    specific training (job).

    Operational Managerial

    Conceptual Analytical

    Skill Skill

    Training will be imparted through company's own training centers or Training

    Institutes.

    Motivation System:

    Factors:

    1. Adequate Motivation.

    2. Analysis of motives.

    3. Simplicity.4. Uneven Motivation is given to encourage intelligent,

    ambitious & efficient personnel.

    5. Incentive system could be either a) Monetary and/or b) Non-

    monetary.

    Retaining Personnel:

    Coercive Policies like entering into an agreement.

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    Package for Long-term stay includes promotional avenues,

    increasing financial incentives over the period of time, deferred

    payment of financial benefit in the long-run, superannuating

    allowance or long-term stay bonus(where benefits maybe

    forfeited if the employee leaves prematurely.

    ESOS( Employee Stock Option Scheme).

    ESPS ( Employee Stock Purchase Scheme).

    Persuasion by CEO or top executives.

    Personnel Mobility

    Moving the personnel within the organization or outside--- in the

    form of promotion, demotion, transfer, separation & deputation. Organizations

    have to provide a policy framework for this.

    1. Objectives:

    Right person at right job.

    Motivation for promotions through good performance.

    2. Another issue is Separation- VRS/CRS.

    3. Deputation on new project in the same company.

    Industrial Relations:

    1. Objectives

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    Safeguard interests of workers & management through mutual

    understanding.

    Avoid industrial conflicts & strikes.

    To raise productivity to a level which satisfies both workers &

    management.

    To overcome resistance to change- particularly those aspects

    which directly affect workers like change in technology.

    2. Methods of building good industrial relations

    Participation of workers.

    Negotiations in decision-making.

    Formulation of grievance handling procedures.

    Management's concern for worker's welfare.

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    Productivity & HRM

    HRM Trends in a Dynamic environment An HR manager has to

    balance the demands & expectations of external environment with the internal

    needs and achieve the assigned tasks in an efficient way.

    The issues involved in extracting/enhancing Human Productivity

    are:

    Internal Factors External Factors

    Mission, Policies Technological Factors

    Organizational Culture Economic

    Organizational Structure Political

    HR Systems Social

    Local & Governmental Issues

    Unions

    Employer's Demands

    Workforce Diversity

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    1. TQM:

    Total Quality Management is an approach to the art of management

    that originated in Japanese industry in the 1950's and has become steadily

    more popular in the West since the early 1980's.

    Total Quality is a description of the culture, attitude and

    organization of a company that aims to provide, and continue to provide, its

    customers with products and services that satisfy their needs. The culture

    requires quality in all aspects of the company's operations, with things being

    done right first time, and defects and waste eradicated from operations.

    Many companies have difficulties in implementing TQM. Surveysby consulting firms have found that only 20-36% of companies that have

    undertaken TQM have achieved either significant or even tangible

    improvements in quality, productivity, competitiveness or financial return. As

    a result many people are skeptical about TQM. However, when you look at

    successful companies you find a much higher percentage of successful TQM

    implementation.

    Important aspects of TQM include customer-driven quality, top

    management leadership and commitment, continuous improvement, fast

    response, actions based on facts, employee participation, and a TQM culture.

    Customer-driven quality:

    TQM has a customer-first orientation. The customer, not internal

    activities and constraints, comes first. Customer satisfaction is seen as the

    company's highest priority. The company believes it will only be successful if

    customers are satisfied. The TQM company is sensitive to customerrequirements and responds rapidly to them. In the TQM context, `being

    sensitive to customer requirements' goes beyond defect and error reduction,

    and merely meeting specifications or reducing customer complaints. The

    concept of requirements is expanded to take in not only product and service

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    attributes that meet basic requirements, but also those that enhance and

    differentiate them for competitive advantage.

    Each part of the company is involved in Total Quality, operating as

    a customer to some functions and as a supplier to others. The EngineeringDepartment is a supplier to downstream functions such as Manufacturing and

    Field Service, and has to treat these internal customers with the same

    sensitivity and responsiveness as it would external customers.

    TQM leadership from top management:

    TQM is a way of life for a company. It has to be introduced and led

    by top management. This is a key point. Attempts to implement TQM often

    fail because top management doesn't lead and get committed - instead it

    delegates and pays lip service. Commitment and personal involvement is

    required from top management in creating and deploying clear quality values

    and goals consistent with the objectives of the company, and in creating and

    deploying well defined systems, methods and performance measures forachieving those goals. These systems and methods guide all quality activities

    and encourage participation by all employees. The development and use of

    performance indicators is linked, directly or indirectly, to customer

    requirements and satisfaction, and to management and employee

    remuneration.

    Continuous improvement:

    Continuous improvement of all operations and activities is at the

    heart of TQM. Once it is recognized that customer satisfaction can only be

    obtained by providing a high-quality product, continuous improvement of the

    quality of the product is seen as the only way to maintain a high level of

    customer satisfaction. As well as recognizing the link between product quality

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    of performance with competitors. The TQM approach is based on the use of

    objective data, and provides a rational rather than an emotional basis for

    decision making. The statistical approach to process management in both

    engineering and manufacturing recognizes that most problems are system-

    related, and are not caused by particular employees. In practice, data iscollected and put in the hands of the people who are in the best position to

    analyze it and then take the appropriate action to reduce costs and prevent non-

    conformance. Usually these people are not managers but workers in the

    process. If the right information is not available, then the analysis, whether it

    be of shop floor data, or engineering test results, can't take place, errors can't

    be identified, and so errors can't be corrected.

    Employee participation:

    A successful TQM environment requires a committed and well-

    trained work force that participates fully in quality improvement activities.

    Such participation is reinforced by reward and recognition systems which

    emphasize the achievement of quality objectives. On-going education and

    training of all employees supports the drive for quality. Employees are

    encouraged to take more responsibility, communicate more effectively, actcreatively, and innovate. As people behave the way they are measured and

    remunerated, TQM links remuneration to customer satisfaction metrics.

    A TQM culture:

    It's not easy to introduce TQM. An open, cooperative culture has to

    be created by management. Employees have to be made to feel that they are

    responsible for customer satisfaction. They are not going to feel this if they areexcluded from the development of visions, strategies, and plans. It's important

    they participate in these activities. They are unlikely to behave in a responsible

    way if they see management behaving irresponsibly - saying one thing and

    doing the opposite.

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    Product development in a TQM environment:

    Product development in a TQM environment is very different to

    product development in a non-TQM environment. Without a TQM approach,

    product development is usually carried on in a confliction atmosphere whereeach department acts independently. Short-term results drive behavior so

    scrap, changes, work-around, waste, and rework are normal practice.

    Management focuses on supervising individuals, and fire-fighting is necessary

    and rewarded.

    Product development in a TQM environment is customer-driven

    and focused on quality. Teams are process-oriented, and interact with their

    internal customers to deliver the required results. Management's focus is oncontrolling the overall process, and rewarding teamwork.

    Summary:

    Doing it right 1st

    time

    Customer centric- Philips, TELCO, BHEL, Pidilite

    Continuous Improvement a way of life

    Build Team work & Empowerment

    ***Race without finishing line (TQM is a never-ending activity)

    2. BenchmarkingBenchmarking (also "best practice benchmarking" or "process

    benchmarking") is a process used in management and particularly strategic

    management, in which organizations evaluate various aspects of their

    processes in relation to best practice, usually within their own sector. This then

    allows organizations to develop plans on how to adopt such best practice,

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    usually with the aim of increasing some aspect of performance. Benchmarking

    may be a one-off event, but is often treated as a continuous process in which

    organizations continually seek to challenge their practices.

    A process similar to benchmarking is also used in technical producttesting and in land surveying.

    Advantages of benchmarking:

    Benchmarking is a powerful management tool because it

    overcomes "paradigm blindness." Paradigm Blindness can be summed up as

    the mode of thinking, "The way we do it is the best because this is the way

    we've always done it." Benchmarking opens organizations to new methods,ideas and tools to improve their effectiveness. It helps crack through resistance

    to change by demonstrating other methods of solving problems than the one

    currently employed, and demonstrating that they work, because they are being

    used by others.

    Types of Benchmarking:

    Competitive benchmarking

    Some authors call benchmarking "best practices benchmarking" or

    "process benchmarking". This is to distinguish it from what they call

    "competitive benchmarking". Competitive benchmarking is used in competitor

    analysis. When researching your direct competitors you also research the best

    company in the industry (even if it serves a different location).

    Collaborative benchmarking

    Benchmarking, originally invented as a formal process by Rank

    Xerox, is usually carried out by individual companies. Sometimes it may be

    carried out collaboratively by groups of companies (eg subsidiaries of a

    multinational in different countries). One example is that of the Dutch

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    Summary :

    Competitive benchmarking is the first requirement to effective TQM

    Striving to be the best of the best in one's area of operations.

    It aims at continuous improvements.

    Complacency may be suicidal.

    It is a measurement of gaps between the practices of two companies so as

    to uncover significant differences.

    It can be applied to products, services, practices, processes and methods.

    Therefore, Benchmarking is a systematic investigation, a fruitful learning

    experience which ensures that the best of industry practices are uncovered,

    analyzed, adopted and implemented.

    The objective of benchmarking is to meet rising expectations of customers

    in their respective areas.

    3. Re-engineering Work Processes

    When organizations require a drastic, quantum change in order tosurvive a fiercely competitive market, the managers have to search for

    solutions elsewhere, beyond TQM and Benchmarking.

    Re-engineering takes place when more than 70% of the work

    processes in the organization are evaluated & altered. It demands

    organizational members to rethink what work shall be done, how it should be

    done, and how best to implement these decisions. The focus is on simplifying

    the operations and making them more efficient and more customers focused.

    Re-engineering TQM

    Looks for quantum leaps in

    performance

    Seeks incremental

    improvements

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    Re-engineering TQM

    Driven by top management

    when it is complete , work place

    is self-managed

    Relies on bottom-up

    participative decision-making in

    both planning & execution of

    TQM programme.

    There is a risk that the employee

    may continue to be with the

    organization or not.

    There is no immediate & sudden

    risk to the employee.

    Key elements:

    Start with a clean piece of paper (Start afresh & encourage brainstorming)

    Identify distinctive competencies.

    Assess core processes.

    Reorganize around Horizontal Processes.

    e.g. TISCO, TELCO, L&T, Ranbaxy & Crompton Greeves.

    Commandments of Re-engineering

    Give people a mission, a clear view of how to achieve that mission.

    Either serve the customer superbly or don't even try. Change the way of life. It is not a process. It is a value.

    Technology is never really a problem, but the problem is how to use

    technology effectively.

    The wrong answer rarely kills you. What it does is waste of time.

    The weak link in engineering is Willingness.

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    Once people catch on to Re-engineering, you cannot hold them back. It is a

    lifetime opportunity.

    4. Flexible Manufacturing System:

    A flexible manufacturing system (FMS) is a manufacturing system

    in which there is some amount of flexibility which allows the system to react

    in the case of changes, whether predicted or unpredicted. This flexibility is

    generally considered to fall into two categories, within which are numerous

    other subcategories.

    The first category, machine flexibility, covers the system's ability tobe changed to produce new product types, and ability to change the order of

    operations executed on a part.

    The second category of flexibility within an FMS is called routing

    flexibility, which consists of the ability to use multiple machines to perform

    the same operation on a part, as well as the system's ability to absorb large-

    scale changes, such as in volume, capacity, or capability.

    The whole FMS is commonly controlled by a central computer.

    The main advantages of a FMS are its high flexibility in managing

    manufacturing recourses like time and effort in order to manufacture a new

    product.

    The best application of a FMS is found in production of small sets of products

    that are likely but not equal that those from a mass production, otherwise

    production cost of small sets of products will cost a lot in relation with mass

    production cost.

    Advantages and disadvantages of FMSs implementation:

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    Advantages:

    Faster, lower- cost changes from one part to another which will improve

    capital utilization

    Lower direct labor cost, due to the reduction in number of workers

    Reduced inventory, due to the planning and programming precision

    Consistent and better quality, due to the automated control

    Lower cost/unit of output, due to the greater productivity using the same

    number of workers

    Savings from the indirect labor, from reduced errors, rework, repairs and

    rejects

    Disadvantages:

    Limited ability to adapt to changes in product or product mix (ex. machines

    are of limited capacity and the tooling necessary for products, even of the

    same family, is not always feasible in a given FMS)

    Substantial pre-planning activity

    Expensive, costing millions of dollars

    Technological problems of exact component positioning and precise timing

    necessary to process a component

    Summary:

    It is the ability of computerized machines to perform a variety of

    programmed functions. It is the integration of computer-aided design,

    engineering & manufacturing to produce low volume products at mass

    production costs.

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    FMS requires fewer employees, but employees with more training and

    higher skills.

    Each one is required to do a greater variety of task.

    They are supposed to keep away from inter-departmental competition,

    conflict & politics & get along with other members as teammates.

    Cross-functional Team Work is required in factories, where engineers have

    to design products by working hand-in-hand with market research &

    manufacturing specialists.

    Use of robots and less people.

    4. Six Sigma:

    Chances are you've heard of Six Sigma, perhaps in connection with

    General Electric, the company that made it popular in the 1990s. You may

    even know that Six Sigma uses statistical techniques to improve processes in

    both manufacturing and service industries. But did you know there is an

    important role for Human Resources (HR) in this sophisticated process

    improvement approach? Or those Six Sigma initiatives are unlikely to succeed

    without HR's help?

    HR professionals with the right skills can contribute to a Six Sigma

    initiative at both strategic and tactical levels. This article describes the areas inwhich HR should play a role in Six Sigma and discusses how HR

    professionals can increase their chances of being included in Six Sigma

    decision-making and implementation.

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    To appreciate the important role HR has in Six Sigma, it is

    important to begin this discussion by having an understanding of what Six

    Sigma is, all the roles played by others in a Six Sigma implementation, and the

    factors critical to a successful implementation.

    Six Sigma Defined:

    The term "Six Sigma" is widely used to refer to all of the

    following:

    A structured method for improving business processes. This method, called

    DMAIC (define, measure, analyze, improve, and control), is supported by

    an assortment of statistical tools.

    A statistical measurement of how well a business process is performing. A

    process that performs at "Six Sigma" produces only 3.4 defects out of every

    million opportunities to produce a defect. Processes that perform at lower

    sigma levels (such as one sigma or four sigma) produce more defects per

    million opportunities. It is possible for a process to perform at an even

    higher level (and thus have even fewer defects), but Six Sigma has become

    popular as the standard for excellent process performance.

    An organizational mindset in which people make decisions based on data,

    look for root causes of problems, define defects based on customer rather

    than internal requirements, seek to control variation, track leading

    indicators of problems to prevent them from happening, etc.

    Six Sigma Roles:

    Six Sigma has a martial arts convention for naming many of its

    professional roles. The chart below describes how these roles are typically

    defined.

    Six Sigma Roles And Responsibilities:

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    SponsorSenior executive who sponsors the overall Six

    Sigma Initiative.

    Leader Senior-level executive who is responsible forimplementing Six Sigma within the business.

    Champion

    Middle- or senior-level executive who sponsors a

    specific Six Sigma project, ensuring that resources

    are available and cross-functional issues are

    resolved.

    Black Belt

    Full-time professional who acts as a team leader on

    Six Sigma projects. Typically has four to five

    weeks of classroom training in methods, statisticaltools, and (sometimes) team skills.

    Master Black Belt

    Highly experienced and successful Black Belt who

    has managed several projects and is an expert in

    Six Sigma methods/tools. Responsible for

    coaching/mentoring/training Black Belts and for

    helping the Six Sigma leader and Champions keep

    the initiative on track.

    Green Belt

    Part-time professional who participates on a Black

    Belt project team or leads smaller projects.

    Typically has two weeks of classroom training in

    methods and basic statistical tools.

    Team Member

    Professional who has general awareness of Six

    Sigma (through no formal training) and who brings

    relevant experience or expertise to a particular

    project.

    Process OwnerProfessional responsible for the business process

    that is the target of a Six Sigma project.

    HR's Role in Six Sigma:

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    As with any major organizational initiative, many factors contribute

    to success. Some of these factors will fall within HR's area of responsibility,

    such as those discussed below.

    Black Belt Selection and Retention

    Having the right people in the Black Belt role is critical to the

    success of a Six Sigma initiative. The training investment is substantial for this

    pivotal role. Further, Black Belts are the visible "face" of Six Sigma. They

    help shape the organization's impression of Six Sigma, and, consequently, the

    willingness of many to embrace the initiative. Therefore, you want to pick

    Black Belts very carefully. (Some organizations only select Black Belts from

    among those who have already been identified as "high potentials.").

    HR professionals can help the Six Sigma Leader find the right

    people for Black Belt roles and ensure they remain in those positions for the

    typical two-year rotation. Potential HR contributions in this area include:

    Building a competency model that will help identify candidates

    with the right mix of technical, team, and leadership skills and abilities.

    Creating job descriptions that help candidates fully understand the

    position and expectations prior to signing on.

    Developing a retention strategy that will help ensure Black Belts

    complete their rotation and the organization recoups its investment in training

    and development.

    Rewards and Recognition

    Rewarding and recognizing Black Belts and Six Sigma teams is

    more complex than it may appear. Black Belts join the Six Sigma initiative

    from various places in the organization where they are likely to have been at

    different job levels with differing compensation arrangements. Determining

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    whether and how to make appropriate adjustments in level and compensation

    now that all these individuals are in the same role is both tricky and critical.

    Similar complexities are involved at the project team level. Six

    Sigma projects led by Black Belts typically result in savings in the hundreds ofthousands of dollars. Deciding how the team should be rewarded and

    recognized and who should get credit for what is not easy. Yet ignoring these

    issues can result in resentment, reluctance to work on Six Sigma projects, and

    the potential failure of the overall initiative.

    HR professionals can help the Six Sigma Leader tackle the

    challenge of establishing the right rewards/recognition. Potential HR

    contributions in this area include:

    Analyzing existing compensation arrangements to identify the

    extent to which those arrangements will support the Six Sigma initiative.

    Creating a strategic compensation plan that will better support Six Sigma.

    Developing a non-monetary reward program for Six Sigma teams.

    Project Team Effectiveness.

    The work of Six Sigma is done mostly at the project team level by

    a Black Belt leading a small team through the steps of the DMAIC method. If

    the team itself does not function well or does not interact effectively with

    others in the organization that ultimately have to support and carry out the

    process changes, the project probably will not be successful. Given the typical

    project's potential payback, failure can be expensive.

    HR professionals can help the project teams work together more

    effectively. Potential HR contributions in this area include:

    Ensuring team leaders and members get training and/or coaching in

    teamwork, conflict management, communications, dealing with difficult

    team members, and other team effectiveness skills.

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    Providing teams with tools that allow them to diagnose their own

    performance and identify when and where they need help.

    Acting as a resource for Black Belts who encounter team-related challengesthey cannot surmount.

    Creating a Six Sigma Culture

    Many Sponsors, Champions, and Leaders look to Six Sigma as a

    way to change an organization's culture to one that is more data-driven,

    proactive, decisive, and customer-oriented. But they often have little idea

    about how to achieve successful culture change.

    HR professionals can help executives approach culture change in a

    way that addresses the underlying business goals without creating

    organizational resistance. Potential HR contributions in this area include:

    Working with Six Sigma Sponsors, Leaders, and Champions to

    identify elements of the culture that might hinder the achievement of Six

    Sigma goals. Advising on change plans that will target those specific culturalelements. Identifying how Six Sigma can be rolled out in a way that works

    with, rather than against, the current culture.

    Change Management and Communications

    Introducing Six Sigma into an organization is a major change that

    will have a profound effect on a broad group of stakeholders. Managers and

    employees at many levels of the organization will be asked to engage in newbehaviors. In many cases, those leading other initiatives will see Six Sigma as

    a source of competition for resources, executive attention, and organizational

    power. Others may see it as an indictment of their past performance. Many

    will be confused about how Six Sigma fits with the large number of other

    ongoing organizational initiatives.

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    HR professionals can help reduce the uncertainty and anxiety

    surrounding Six Sigma and increase the levels of acceptance and cooperation

    in the organization. Potential HR contributions in this area include:

    Drafting a change management/ communications plan that

    addresses the people side of the Six Sigma rollout.

    5. Economic Challenges:

    External Environmental factors.

    Globalization

    Political factors.

    Social factors: Unions.

    Local & Governmental factors: Legal through multi-cultural

    organization (managing diversity).

    6. Work-force Diversity:

    It implies the composition of employees in terms of diversity as

    regards age, gender, ethnicity, and education.

    Organizations are becoming more heterogeneous in terms of age, gender,

    race, and ethnicity.

    Young, skilled & knowledgeable workforce

    Not fascinated by secure, less paying, routine & standard job (s) offered by

    Public Sector.

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    Private Enterprises offer good attraction.

    Old employees are growing in number due to improved medical & health

    care---their expertise & experience; talent can be utilized to develop newventures.

    Attracting & retaining young brains is a challenge for HR managers.

    So organization (s) need to institute appropriate HR policies,

    supported by attractive compensation offers. Diversity Issues in Indian

    companies are somewhat peculiar owing to differences in social ethos,

    religious origins, cultural differences & regional origins plus constitutional

    provisions give preferential treatment to certain sections of the society.

    HR managers have to deal with issues of Child Labor, Women at Work,

    Specially-able people, etc.

    Changes in Employee Roles & Values----emphasize on Quality of Life,

    Equity & Justice, and Pluralism & Diversity over uniformity & centralism,

    Participation over authority, Personal convictions over dogmas, andindividual over organization.

    Level of Education & Awareness---change in attitudes---retaining these

    people (Knowledge Workers) challenged and satisfied demands more

    responsibility & autonomy on the part of the HR manager & organization.

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    Conclusion

    Finally every organization has some standard human resources

    policies and programs. Organization offer different programs based on their

    culture, size, and the competitive needs. The first step should be to start with a

    checklist of human resources programs and initiatives. Then, a little research

    helps in identifying the different methods followed by competitors and other

    players in the industry. These lists can guide a company through its human

    resources planning process.

    HRD strategy is a process by which an organization ensures that it

    has the right number and kinds of people, at the right places, at the right time

    and that these people are capable of performing their tasks effectively and

    efficiently. This helps the organization to achieve its overall objectives.

    Human resource development planning and strategy is done at

    different levels- corporate, intermediate, and operations levels and also forshort term activities. A proper human resource development strategy exercise

    should utilize the inputs of all the departments in the organization and enjoy

    the support of the top management. A human resource professional would be

    better equipped for human resource development strategy and productivity if

    he has a good understanding of the market dynamics, changes in the economy,

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    organizational processes and technological developments. The process of

    Human Resources Development planning involves three key steps- assessing

    and making an inventory of the current human resources, forecasting the

    organizations human resource needs and matching the demand and supply of

    human resources.

    Case Study

    Facts of the case

    Chemtech India Limited- A Chemical Firm

    Employees 1500

    Mainly in a Manufacturing Company

    Little accent on marketing

    Change in the government policy resulted in increased

    competition

    There was need for aggressive marketing by the company

    Company decided to recruit one sales executive

    Mr.Aparojit Das is the VP-HRD and is responsible for

    hiring interviews

    Two candidates are short listed and they are from same

    company

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    First candidate- Mr.Premsager He is working with

    Chemtech for last 5 years

    Second candidate- Mr.Devejeet- He is working with the

    same company for last one year.

    Solution

    Give promotion to Mr. Premsagar from long term point

    of view and Mr.Devejeet should be given proper increment in order

    to keep him motivated.

    Bibliography

    Human Resource Management and Personnel Management

    Aswathappa. Organizational Behaviour- Stephen Robbins.

    Organisation Behaviour- Fred Luthans.

    Human Resource Management- Irwin McGraw Hill, 6th Ed.,

    2000.

    Human Resource Management- Global Strategies for

    Managing a Diverse Work force, Prentice Hall, 5th Ed.,

    1995.

    www.wikipedia.org

    www.hrresources.com

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