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Managing Environment in Human Resource

Introduction to HRM

Employees are the most important assets of an organization. In todays competitive global

business environment, hiring good professionals have become not only a difficult but an expensive

process as well. Training them about the values and skills they need to succeed, ensuring they

understand the organization's mission and strategy, and keeping them productive is the most

important priority of any management institution. Human Resource Management

involves recruiting personnel and their training, salary administration and

handling union management relations. Because of such a dynamic scope in

any organization, Personnel

management or Human

Resource Managementsurfaced as a lucrative career

option for those qualified in

managing the human

resources for any

organization.

Every organization is

composed of people and

utilizing their services, developing their skills, motivating them to enhance

their levels of performance and ensuring that they remain committed to the

organization are essential for the accomplishment of organizational

objectives. This is true for all types of organizations - government, business,

education, health, recreation or social action. Organizations that can do this

will be both effective as well as efficient. Inefficient or ineffective

organizations face the danger of stagnating or going out of business.

The emphasis on proper and effective Human Resource

Management has increased in the recent times. It has come to be identified

as an important factor in the successful management of an organization.

With the growing importance of knowledge workers to organizations and the

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rising expectations of employees, it is essential to have a good human

resource management system in place.

It is also important that all the different processes in an organization, like

finance, HRM, marketing and operations align their objectives and strategies

to those of the organization and work in harmony with each other.

Human Resource Management (HRM) consists essentially of four

functions acquiring, developing, motivating and retaining human resources.

The acquisition function starts with planning for the number and categories

of employees required, and end with staffing. The development function has

three dimensions employee training, management development, and

career development.

The motivation function includes identifying the individual motivational

needs of employees and finding ways to motivate them. The retention

function is concerned with providing a conducive work environment to the

employees and nurturing them to make them feel committed and attached

to the organization. Traditional approaches to personnel management

emphasize command and control. These have now given way to new

approaches characterized by greater freedom and support to the employees.

Many successful companies today empower their employees to manage

most aspects of their work.

Though an organizations physical assets are major factors in

determining its success, it is now believed that its employees or human

resources are equally critical assets. The successful management of an

organizations human resources is an exciting and dynamic task, especially

at a time of increasing competition, when companies are facing newer and

more complex challenges.

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Development of HRM

Awareness regarding HRM was felt during the industrial revolution

around 1850 in Western Europe and U.S.A. Only during the beginning of 20th

century, it was felt in India. Since then, to the present era. The development

ofHRM may be classified as follows:

Trade Union Movement Era

The conditions of workers in the aftermath of factory system as anoutcome of industrial revolution were very pathetic. The First World War

worsened the situation. The Royal Commission of Labour in India in 1911,

under the chairmanship of J.H. whitely, recommended the abolition of the

Jobber system and the appointment of labour officers in industrial

enterprise to perform the recruitment function as well as to settle workers

grievance. Workers also started forming trade unions. The Trade Union Act,

1926 was passed in India. The basic object underlying trade union was to

safeguard the workers interest and to sort out of their problems such as use

of child labour, long hours of work and poor working conditions. These unions

used strikes, slowdowns, walkouts, picketing, as weapons for the acceptance

of their problems. These activities of trade unions gave rise

to personnel practices such as collective bargaining, grievance handling

system, arbitration, disciplinary practices, employee benefit programs and

sound wage structure.

Social Responsibility Era

In the beginning of 20th century, some factory owners, employers started

showing humanistic approach towards the workers. Robert Owen, a British

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industrialist, reformer and humanitarian is considered to be the first to adopt

humanistic approach towards workers. He viewed that the principal social

and economic environments influence the physical, mental and psychological

development of workers. Hence he felt that to improve the productivity, it is

necessary to improve conditions of employees by removing them from the

adverse environment to a congenial atmosphere with the availability of

satisfactory living and working conditions. The philosophy in Owens patriatic

approach was that workers are just like children and the owner is just like a

father. Therefore the owner should take care of the workers, just like a father

looks after his children. Owen himself implemented this philosophy in his

cotton mill in Scotland by introducing facilities such as shower baths, toilets,

rest rooms and increased minimum wages and housing scheme.

Scientific Management Era

The concept of scientific management was introduced by F.W.Taylor in

the USA in the early part of 20th century as on alternative to the prevailing

system of management by initiative and incentive based on his shop floor

job experience.

Taylor developed four principles of scientific management

1. Development and use of scientific methods in setting work standards,

determining a fair day, work, and best way of doing work.

2. Scientific selection and placement of workers best suited to perform the

various tasks and provision of their training and development for maximum

efficiency.

3. Clear cut division of work and responsibility between management and

workers.

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4. Harmonious relationship and close cooperation with workers to achieve

performance of work in accordance with the planned jobs and tasks. In the

scientific theory, Taylor viewed men and workers as one driven by fear of

hunger and search for profit.

Accordingly, if economic reward is tied up with the efforts put on the job, the

worker will respond with his maximum physical capability. Taylor also

developed several techniques to introduce his scientific ideas in

management. They were

i. Time study to measure the time taken to each job and each operation

and to standardize the operations of the job.

ii. Motion study to study body movements in workplace and to reduce

wasteful motions.

iii. Standardization of tools, equipments, machinery and working condition.

iv. Incentives wage plan with differential piece rate for efficient and

inefficient workers.

Human Relations Era

During the years 1925 to 1935, experts expressed their opinions towards

the human aspects of organisation activities. Hugo Munsterberg in his book,

Psychology and Industrial Efficiency, suggested the use of psychology in

selection, placement, testing and training of employees in an organisation.

Elton Mayo and his associates conducted a series of experiments from 1924

to 1932 of the Hawthone plant of the Western Electric Company in the USA.

The main findings of Hawthorne Experiments were as follows:

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i. Physical environments at the work place do not have any material impact

on the efficiency of work.

ii. Favorable attitudes of workers and psychological needs had a beneficial

impact on the morale and efficiency of workman.

iii. Fulfillment of the workers social and psychological needs had a beneficial

impact on the morale and efficiency of workmen.

iv. Employee groups based on social interactions and common interests

exercised a strong influence on workers performance.

v. Workers cannot be motivated solely by economic rewards. More important

motivators are job security, recognition, right to express their opinion on

matters related to them.

The findings have stated that the relationship between the superiors and

subordinates should relate to social and psychological satisfaction of the

employees. Employee, satisfaction is the best means of making the

employee productive.

Behavioral Science Era

Important elements of behavioral approach to HRM are as follows:

i. Individual behavior is linked with the group behavior. For example, a

person may resist changing his behavior as an individual. But he or she

will readily do so if the group to which he or she belongs, decides to

change its behavior.

ii. Informed leadership rather than the formal leadership of manager is

more effective in influencing people to achieve standards of

performance. According to their view, democratic leadership style of

the manager is more acceptable to the subordinates and hence more

effective.

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iii. By nature, people do not dislike work. Most people enjoy work and

one is motivated by self control and self development. In fact job itself

is a source of motivation and satisfaction to employee. Expanding

subordinate influence, self control and self direction can improve

operating efficiency.

Systems Approach Era

A system may be defined as a set of interdependent parts forming an

organized unit or entity. The system is defined as an organized and complex

whole: an assemblage or combination of things or parts forming a complexunitary whole. The parts, also known as sub-systems, interact with each

other and are subject to change. These subsystems are inter-related and

inter dependant. Three broad sub-systems are

i) Technical sub-system - The formal relationships among the members of an

organisation

ii) Social sub system - Social satisfaction to the members through informal

group relations.

iii) Power sub systems - Exercise of power or influence by individual or

group.

The system approaches is characterized by the following features:

a. A system is a group of inter related elements which are separate

entities / units.

b. All the elements are inter related in an orderly manner.

c. There is the need for proper and timely communication to facilitate

interaction between the elements.

d.The interaction between the elements should lead to achieve some

common goal.

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At the heart of the systems approach is a Management Information

System(MIS) and communication network for collection, analysis and flow

of information to facilitate the function of planning and control. Modern

thinkers consider HRM as a system that integrates activities with an

objective to make the best use of resources which are always scarce.

Contingency Approach Era

Contingency Refers To The Immediate Circumstances. Contingency

Approach Believes That There Is No One Way Of Managing That Works Best

In All Situations. According To This Approach, The Best Way To ManageVaries With The Situation. Hence This Approach Is Called As Situational

Approach. There May Not Be One Universal Way Of Managing In All

Situations. A Particular Approach May Yield Fruitful Results In One Situation

But May Drastically Fail In Other Situation. Therefore Managers Are To

Analyze Different Situations And Then Use The Best Approach Suitable In

That Particular Situation.

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The HR department therefore aids:

In planning, drafting, and implementing policies, rules and procedures

regarding recruitment, promotions, benefits, retrenchment, conducting exit

interviews, rehiring and firing, etc. In planning, organizing, and conducting

inductions, orientation programmes, refresher and training & development

programmes and seminars. The management in taking key decisions, and

help them utilize and maximize the in house pool of talent.

In recruitment and selection, the human resource department devises

and frames policies to recruit the best-suited personnel for the requisite

departments. They screen shortlist, interview and select probable candidates

for the relevant posts. In training, they map employee and management

needs, and conduct the necessary workshops to upgrade skills, identify

latent talents and provide the necessary training. The Human Resource

Department also monitors and enables promotions and transfers. They act

as links between the management and the employees. They keep employees

informed of the happenings in the organization.

Maintaining employee relations are a key aspect in Human Resource

Management. Boosting and motivating employees to perform well is also a

part of the human resource personnel's schedule. Human Resource

Personnel help solve disputes and conflicts between the management and

employee unions/employees. Through counseling, they also help redress

employee grievances and help them map their professional growth in the

organization. They also deal with employee reallocation.

Qualifications

As one of the more popular study options, there are various courses

available in Human Resources, ranging from a diploma to a postgraduate

degree. Some of the better-known institutes are National Institute of

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Human Resource Development, Academy of Human Resources

Management, Administrative Staff College of India and the IIMs.

Institutes such as the Bharatiya Vidya Bhavan also offer a diploma in

industrial relations and personnel management. However, an MBA (HR and

personnel management) is usually the first requirement to carve a career in

HR. Other qualifications or experience in fields such as social work etc are

also considered. Knowledge of industrial and labour law is essential.

Growth and remuneration

The hierarchical growth pattern in the human resource department is

similar to other departments in an organization. The hierarchical growth

pattern begins as Executives / Management Trainees, who can later man

posts of a Manager / Asst Manager, General Manager HR/personnel/ I.R.

/Admn and Director HR / Vice President HR. Compensation are location,

industry and institute specific. However as a beginner one can expect an

initial monthly salary that ranges from a minimum of Rs.8, 000 to 15,000.

Career clues

Managing human resources is an art and skill that can be acquired. Most

aspirants wishing to make it big in HR have relatively no idea how important

some very simple skills can be:

i. Compatible skills to the job (right employee for the right job)

ii. Ability to hit the ground running

iii. Multi tasking, high energy levels and excellent inter - personal skills

iv. Effective communication skills and ability to be a team player

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v. A positive attitude and a burning desire to learn more and grow

vi. People oriented

vii. High levels of empathy

viii. Willingness to learn

ix. Not be tempted to misuse power over people

Additionally, technological awareness is important in the present day set-

up. Therefore, knowledge of the latest software packages (MS word 2001,

MIS, etc) comes handy.

Problem solving and conflict resolution are the most important skills to

possess. Good Human Resource Personnel must be knowledgeable about

labour and industrial laws, and their application in the workplace.

The future

Human resource management is fast becoming as enduring a field as

banking. Research, education and teaching, consultancy, and even public

relations are other employment avenues. HR personnel can be partners inbusiness, taking strategic business decisions along with the top management

to ensure optimum utilization of the human resource talent.

For a person passionate about HR, recognizing young talent, nurturing it

and seeing it grow, training and developing individuals, counseling, guiding

and appraising the performance and deciding compensation reviews etc, are

more than just perks.

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EEmerging Trends in Managing

Human ResourcesIf we trace back the history of business environment, in the early

years, trading patterns and markets were stable, technology was static,

customers were passive, speed in getting to market was secondary,

competition was limited to sectors and regions, and hierarchies were

generally accepted in all walks of life. No more, since 1960s, America and

much of the rest of the world has been almost continually buffeted by

change. Customers demand that businesses do it better, faster, cheaper;

employees want to control more than the Stop button on the assembly

line.

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individuals. Today work itself is centered around projects, which have virtual

teams working on them. This work structure has led to a culture of flexi time,

round the clock accessibility to the workplace. Also catching up fast is the

trend of workstations at home, remote access, video-conferencing and

reporting by exception. To stay one step ahead of the aspirations of their

people, companies are continuously striving to provide an intellectually

stimulating environment. Few examples being, in-house libraries, continuous

up gradation of knowledge and skills, knowledge sharing, building

relationships with academia thus enabling knowledge workers to pursue

multiple careers within a single company. Coming times will see sabbaticals

forming part of the organization culture, corporate universities dotting the

new horizon, competing companies bunching together to setup knowledge

networks.

Companies today are constantly striving towards enhancing the quality

of work life and also the personal life of its employees and this does not stop

with the employee buts gets extended to his / her family as well. In-house

health clubs, yoga and meditation centers to relieve stress, sports andcultural activities, employee get-togethers with invitations to come over with

families, day care centers and many of the like are being provided by

companies. With the increasing size of the companies, the top down

communication model of yesteryears has been replaced by bottom up, cross

level communication thereby encouraging people to voice their opinions and

feelings. Open house sessions, mentoring, online chats on the intranet have

emerged to be the communication enablers.

The new economy has given rise to a culture of working in teams.

Today no job in the knowledge industry can be performed in isolation. Since

working in teams is not a passing fad, companies are now designing

compensation structures, which reward team performance in addition to

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individual performance. To conclude, change is here to stay, and we need

to understand that all the practices that are working today may not

necessarily work tomorrow. Customers expectations, market changes and

strategic decisions will derive the tools to managing the human assets.

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Top 5 HR Challenges for Indian

Organizations

- A Current Perspective

Clearly HR departments are evolving in our country. From an administrative

perspective, the focus is now on a strategic outlook where talent HR

professionals look at improving the work environment and plan out human

resource needs. Though it is a reflection of what is happening in the western

context, the Indian work force and industrial climate is changing. This short

article looks at five major challenges that we facing in terms of human

resources and human resource management.

Managing Knowledge Workers

Essentially, here we are looking at different kind of people who does

not obey the principles of management for the traditional group. This

boils down to higher educational qualifications, taking up

responsibilities at a lesser age and experience, high bargaining powerdue to the knowledge and skills in hand, high demand for the

knowledge workers, and techno suaveness. The clear shift is seen in

terms of organization career commitment to individualized career

management. Managing this set of people is essential for the growth of

any industry but especially the IT, BPOs and other knowledge based

sectors.

Managing Technological Challenges

In every arena organizations are getting more and more

technologically oriented. Though it is not in the main run after the

initial debates, preparing the work force to accept technological

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changes is a major challenge. We have seen sectors like banking

undergoing revolutionary changes enabled by technology. It is a huge

challenge to bring in IT and other technology acceptance all levels in

organizations.

Competence of HR Managers

As it is more and more accepted that lot of success of organizations

depend on the human capital, this boils to recruiting the best,

managing the best and retaining the best. Clearly HR managers have a

role in this process. Often it is discussed about lack of competence of

HR managers in understanding the business imperative. There is now

a need to develop competent HR professionals who are sound in HR

Management practices with strong business knowledge.

Developing Leadership

It is quite interesting to note that there is less importance given todeveloping leadership at the organizational level. Though leadership is

discussed on basis of traits and certain qualities, at an organizational

level it is more based on knowledge. The challenge is to develop

individuals who have performance potential on basis of past record and

knowledge based expertise in to business leaders by imparting them

with the necessary "soft skills".

Managing Change

Business environment in India is volatile. There is boom in terms of

opportunities brought forward by globalization. However this is also

leading to many interventions in terms of restructuring, turnaround,

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mergers, downsizing, etc. Research has clearly shown that the success

of these interventions is heavily dependent on managing the people

issues in the process. HR has a pivotal role to play here.

Pest Analysis

Understanding "Big Picture" Forces of Change

(Also known as PESTLE, PESTEL, PESTLIED, STEEPLE and SLEPTAnalysis)

PEST Analysis is a simple, useful and widely-used tool that helps you

understand the "big picture" of your Political, Economic, Socio-Cultural and

Technological environment. As such, it is used by business leaders

worldwide to build their vision of the future.

It is important for these reasons:

First, by making effective use ofPEST Analysis, you ensure that what

you are doing is aligned positively with the powerful forces of change

that are affecting our world. By taking advantage of change, you are

much more likely to be successful than if your activities oppose it;

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Second, good use ofPEST Analysis helps you avoid taking action that

is doomed to failure from the outset, for reasons beyond your control;

and

Third, PEST is useful when you start operating in a new country orregion. Use ofPEST helps you break free of unconscious assumptions,

and helps you quickly adapt to the realities of the new environment.

How to use the tool:

PEST is a simple mnemonic standing for Political, Economic, Socio-Cultural

and Technological.

To use this tool, follow this three stage process:

1. Brainstorm the relevant factors that apply to you;

2. Identify the information that applies to these factors; and

3. Draw conclusions from this information.

The following factors may help as a starting point for brainstorming (but

make sure you include other factors that may be appropriate to your

situation):

Political:

Government type and stability

Freedom of press, rule of law and levels of bureaucracy and corruption

Regulation and de-regulation trends

Social and employment legislation

Tax policy, and trade and tariff controls

Environmental and consumer-protection legislation

Likely changes in the political environment

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Economic:

Stage of business cycle

Current and project economic growth, inflation and interest rates

Unemployment and labor supply

Labor costs

Levels of disposable income and income distribution

Impact of globalization

Likely impact of technological or other change on the economy

Likely changes in the economic environment

Socio-Cultural:

Population growth rate and age profile

Population health, education and social mobility, and attitudes to these

Population employment patterns, job market freedom and attitudes to

work

Press attitudes, public opinion, social attitudes and social taboos

Lifestyle choices and attitudes to these

Socio-Cultural changes

Technological Environment:

Impact of emerging technologies

Impact of Internet, reduction in communications costs and increased

remote working

Research and Development activity

Impact of technology transfer

Figure 1 below shows this in diagrammatic format:

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Figure 1: PEST Analysis in Diagrammatic Format

Other forms of PEST - PESTLE, PESTLIED, and STEEPLE and SLEPT:

Some people prefer to use different flavors of PEST Analysis, using other

factors for different situations. The variants are:

PESTLE/PESTEL: Political, Economic, Sociological, Technological,

Legal, Environmental;

PESTLIED: Political, Economic, Social, Technological, Legal,

International, Environmental, Demographic;

STEEPLE: Social/Demographic, Technological, Economic,

Environmental, Political, Legal, Ethical; and

SLEPT:Social, Legal, Economic, Political, Technological.

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Example:

Were going to avoid giving an example here, because of the huge

potential for causing offense: few societies seem perfect to outsiders, and

there are few things as irritating as having an outsider criticize one's own

country...

However, a broad principle is that things that make activity more

difficult for people or organizations raise the cost of doing business: business

is either stopped altogether, or costs more as people spend time and moneycircumventing difficulties. The higher the cost of doing business in a region,

the more project profitability is squeezed or eliminated. And given that

businesspeople normally have at least some level of intelligence, businesses

and projects that could otherwise operate are never launched - meaning that

less economic activity takes place. (The lower the amount of economic

activity, the poorer and less capable societies tend to be.)

Another broad principle is wherever there is rapid or major change in

an area, there are likely to be new opportunities and threats that arise.

Smart people and companies will take advantage of the opportunities and

manage the threats. And do remember that few situations are perfect: it is

up to us to make the most of the situation in which we find ourselves.

Key Points:

PEST Analysis is a useful tool for understanding the big picture of

the environment, in which you are operating, and the opportunities and

threats that lie within it. By understanding your environment, you can take

advantage of the opportunities and minimize the threats.

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PEST is a mnemonic standing for Political, Economic, Social and

Technological. These headings are used firstly to brainstorm the

characteristics of a country or region and, from this, draw conclusions as to

the significant forces of change operating within it. This provides the context

within which more detailed planning can take place to take full advantage of

the opportunities that present themselves.

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Swot Analysis

Is a planning tool used to understand the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business. It involvesspecifying the objective of the business or project and identifying the

internal and external factors that are supportive or unfavorable to

achieving that objective. SWOT is often used as part of a strategic planning

process.

SWOT is an acronym for Strengths, Weaknesses, Opportunities, and

Threats

There are several ways of graphically representing this on an analysis

matrix or grid. Several versions are shown on this page - use the one which

is best suited to your application and preferred style.

While at first glance this looks like a simple model and easy to apply, I

can say from experience, that to do a SWOT analysis that is both effective

and meaningful, requires time and a significant resource. This cannot be

done effectively by just one person. It requires a team effort. The

methodology has the advantage of being used as a 'quick and dirty' tool or a

comprehensive management too, and that one can lead to the other. This

flexibility is one of the factors that has contributed to its success.

The term "SWOT ANALYSIS" is in it an interesting term. Many believe

the SWOT is not an analysis, but a summary of a set of previous analyses

even if those were not more than 15 minutes of mini-brainstorming withyourself in front of your computer. The analysis or more correctly

interpretation comes after the SWOT summary has been produced.

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The SWOT Matrix Model

Positive

InternalNegativeor

potentialto benegative

Strengths Weaknesses

Opportunities Threats

External

An Alternative Matrix


Opportunities

Offensive -make the most of

these

Defensive -watch

competitionclosely

Threats

Adjust -restore strengths

Survive -turn around

DEFINITION

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Classify them by their seriousness and probability of occurrence.

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OVERVIEW MATRIX:

POSITIVE/ HELPFUL

to achieving the goal

NEGATIVE/ HARMFUL

to achieving the goal

INTERNALOriginfacts/ factors of the

organization

Strengths

Things that are good now,maintain them, build on

them and use as leverage

Weaknesses

Things that are bad now,remedy, change or stop them.

EXTERNAL Originfacts/ factors of the

environment in whichthe organization

operates

Opportunities

Things that are good for thefuture, prioritize them,capture them, build on

them and optimize

Threats

Things that are bad for thefuture, put in plans to manage

them or counter them

Aim of a SWOT Analysis

Reveal your competitive advantages

Analyze your prospects for sales, profitability and product development

Prepare your company for problems

Allow for the development of contingency plans

A SWOT analysis is a process to identify where you are strong and

vulnerable -- where you should defend and attack. The result of the

process is a 'plan of action', or 'action plan'.

The analysis can be performed on a product, on a service, a company or

even on an individual.

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Done properly, SWOT will give you the BIG PICTURE of the MOST

IMPORTANT FACTORS that influence SURVIVAL and PROSPERITY. As

well as a PLAN to ACT ON.

POSSIBLE STRENGTHS

S W O T Analysis - Possible Strengths

Tangible Strengths Intangible Strengths Processes & Systems

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Assets includingplant andequipment

Your business

locationDo you have long-term contracts?

Are your productsunique or marketleading?

Have you gotsufficient insuranceresources to fundany changes you

would like to make?

Do you have anycost advantagesover yourcompetitors?

Do you use superiortechnology in yourbusiness?

Is yourbusiness highvolume?

Can your scale up ifyou need to?

Do you have a strongrecognizable brandor do you stockstrong brands

Your reputation - areyou considered amarket leader? Or anexpert in your filed?

Do you have goodrelationship with yourcustomers?(Goodwill)

Do you have strongrelationships withyour suppliers

Do you have apositive relationshipwith your employees

Do you have anyunique alliances withother businesses?

Do you own anypatents orproprietary

technology?

Do you have aproven advertisingprocess that workswell?

Do you have moreexperience in yourfield?

Are you managers

highly experienced?

Do you have superiorindustry knowledge?

Are you involved withindustry associations?

Is your businessInnovative?

Remember - Strengths internal to your business; characteristics or qualities of yourbusiness/ organization that make you better than your competitors. Add any additionalstrength that are unique to your business.

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POSSIBLE WEAKNESSES

S W O T Analysis - Possible Weaknesses

Tangible Strengths Intangible Strengths Processes &

Systems

Is your plant and

equipment old or

outdated?

Is your product line

too narrow?

Have you got

insufficient

insurance

resources to fund

any changes you

would like to

make?

Do you have a high

overall unit cost

relative to your

competitors?

Do you use inferior

technology in your

business?

Do you have low

volume and are

restricted in your

ability to scale up?

Do you have a weak

or unrecognizably

brand?

Do you have a weak

or unrecognizable

image?

Do you have a poor or

impersonal

relationship with your

customers?

Do you have a poor

relationship with your

suppliers?

Do you have a poorrelationship with your

employees?

Is your marketing

failing to meet

objectives?

Are your managers

inexperienced?

Do you have low

R&D?

Do you lack

industry

knowledge?

Do you lack

innovative

skills?

Remember - Weaknesses internal to your business/ organization;

characteristics or qualities of the way you work that make you less

competitive than your competitors. Add any additional weaknesses that are

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unique to your business/ organization.

POSSIBLE OPPORTUNITIES

S W O T Analysis - Possible Opportunities

Industry/ Sector Opportunities External Opportunities

Expand your product line

Diversify your business interests

Expand into your customer's

field

Expand into your supplier's field

Expand your customer base

(Geographically or through new

products)

Do you have placid competitors?

Are there any export

opportunities?

Will your market grow?

Changes to legislation

Changes to import/export

constraints

Good economic outlook

Favorable cultural shifts such

as to greener products

Changes in use of technology

opening up opportunities for

your business to utilize these

technologies such as

Ecommerce or Internet sales

Remember - Opportunities are external to your business. They exist either

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within your industrial sector or outside of your sector. Add any additional

opportunities that are unique to your business.

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POSSIBLE THREATS

S W O T Analysis - Possible Opportunities

Industry/ Sector Opportunities External Opportunities

Will low cost imports impact

your business?

Do consumers have a choice to

use a substitute product?

Are substitute product sales

increasing?

Is your market in slow growth or

in decline?

Growing power of customers or

suppliers to set price

Changing needs of buyers

Foreign exchange rate changes

affecting imports/exports

Changes in demographics

Increasing regulation

Remember - Threats are external to your business. They exist either within

your industrial sector or outside of your sector. Add any additional threats that

are unique to your business.

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The Promising Field Of Insurance

Starting from being an open competitive market to nationalisation and

finally to a liberalised market again, the Indian Insurance sector has indeed

witnessed a 360-degree turn. At the helm of mind-boggling growth,

insurance has emerged as one of the most promising sectors in the country.

Before 1956, there were about 170 insurance

firms after which the Indian govt. nationalised all and

brought them under the gamut of LIC. However, in

1999, the Govt. set up IRDA and liberalised this

sector. Thereafter, growth was witnessed with the

entry of various private players.

Shedding light on the growth graph of this sector, R. Mahajan, head HR

& training, SBI Life says, The Indian insurance industry has grown

significantly in last six years with the entry of new private players which

contributed immensely to the growth of the sector. It is one of the fastest

growing sectors in the country. Judhajit Das, chief - HR, ICICI Prudential life

Insurance gives a comparative view, Last year, the Indian Insurance

industry witnessed 100 per cent growth and this graph is likely to continue in

the years to come.

The insurance sector has two broad categories - life and non-life.

Talking about the money the sector generates, B. Anant, head - HR, ICICI

Lombard notes, Life Insurance segment generates about Rs. 70,000 crores

while non-life segment accounts for Rs. 30,000 crores. The life Insurance

industry accounts for 4.1 per cent of Indias GDP. Mahajan adds, Currently

Indias share in the world life insurance market is 1.68 per cent as against

1.02 per cent of the previous year.

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The sector today provides employment to over 185,000 individuals.

There are over 20 lakh insurance agents who sell insurance products across

the country. The multi-channel distribution approach adopted by most life

insurance players provides a lot of employment opportunity in the urban,

semi-urban and rural areas. Elaborating on the opportunities that the sector

has created not only in urban areas but in semi-rural areas too, Anant says,

There are a range of insurance products for the rural poor as well like

insurance for cattle, weavers, weather etc.

For the same, weve employed many from the rural and semi-rural

segments. In fact out of 250 offices that we have in the country there are

about 175 offices in semi-rural & rural markets.

Not only does this sector provide with a vast number of opportunities

but it also has a whole range of job options from specialist profiles in the

domain of product development and actuarial, underwriting, claims and

policy servicing to generalist functional profiles like sales and marketing, HR

& training, information technology and finance.

The qualifications and the skill sets needed depend on the work profileone is interested in. For marketing and sales, an MBA qualification from a

reputed institute is preferable. Graduates with the right aptitude and the

aggression to meet stiff sales targets often are well sought after for this role.

In addition, product knowledge and the ability to drive a team of insurance

intermediaries is a must. While for actuarial functions the candidate should

have the required qualification from the Actuarial Society of India and should

be very good at mathematics. For all other operational roles apart from the

specific skill sets required for that particular function such as finance and

accounting, legal and compliance, basic knowledge on the life insurance

industry is a must.

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With the sector moving at a fast pace, industry experts feel theres

going to be an increase in demand of specialist jobs. Also Indian customers

would look for better customer service, product innovation, value for money

products which would further fuel the demand for high quality manpower.

More and more new and innovative products would emerge in the market

and there would be a constant need of talent up-gradation. For the same

reasons, many forward looking firms are stepping up and taking initiatives

with the govt. and the academia, Anant notes. Talking further on the same,

Mahajan points out, With the level of demand in the insurance sector,

companies are investing a lot of time and resources towards employee

training and development.

Clearly, theres a challenge but if seen differently the same challenge can be

treated as an opportunity to build a great workforce and boost this sector

further.

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Human Resource S.W.O.T.

Analysis

With many smaller sized organizations not having a full-time in-house

Human Resource representative, the choice may be to outsource this

function to an HR Consultant. Choosing to go this route is a wise investment.

But how does one know where to start in terms of the organization's human

resource requirements? Well, complete an S.W.O.T. Analysis, of course!

S.W.O.T. Analyses have been conducted by many organizations over the

years. What's it stand for? S.W.O.T. is a tool used to understand an

organization's:

Strengths - focusing on the elements that make the organization

what it is

Weaknesses minimizing/correcting areas that leave the

organization vulnerable

Opportunities - maximizing prospects and valuing change

Threats - ensuring awareness of risks or perils to the organization

Strengths and Weaknesses are typically internal while Opportunities and

Threats are external. A S.W.O.T. Analysis can be performed on an entire

organization, but it can also be used to focus on specific divisions such as

Human Resources. In choosing to outsource the human resource function,

this process can prove to be a key element in achieving strategic goals in

this area.

Making It Work

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An individual can complete a S.W.O.T. Analysis on their own but it is

recommended to involve as many people as possible in evaluating these

criteria. It's suggested that two S.W.O.T. Analyses be conducted one with

management and one with employees. The cross referencing of feedback

from management and employees may reflect differing opinions and

perspectives. In a larger organization it may be beneficial to select a group of

people from each department to participate in the process. This will assist

the facilitator on keeping everyone focused on the task at hand.

So what are the next steps in completing a S.W.O.T. Analysis on the HR

requirements?

Consider the following questions:

a. What practises and policies are already in effect and working

efficiently?

b. What practises and policies are not working well and need to be

reviewed?

c. What trends are occurring in hiring, employee retention,

technological changes, government regulations, etc?

d. What does the organization offer employees that the competition

doesn't and vice versa?

e. What is the opinion of customers, suppliers or vendors when they

interact with employees and management?

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f. Do the human resource weaknesses leave the organization

vulnerable to employee relations issues, voluntary resignations,

succession concerns, etc?

g. What do employees have to offer in the way of skills and

qualifications?

h. Are the right people in the right roles?

Ask as many questions as possible in relation to the organization's Human

Resource Strengths, Weaknesses, Opportunities and Threats. If customer

satisfaction surveys are conducted, use the information collected from that

tool to add insight, as the customer's opinions are equally as important asthe organization's internal personnel.

Put the Results to Use

An outsourced HR Consultant will work within the groups to record

responses and then openly discuss the results with the parties involved. The

next step is to work through each point made, prioritize and rank them. Then

determine what can be done to maximize the Strengths and Opportunities

and minimize the Weaknesses and Threats. Evaluate and assign a level of

importance from 1 to 10 to aid in creating action plans for each item,

delegating responsibilities for each. Regular follow up by the HR Consultant

and management on the progress of each item is critical, remembering to

maximize all resources during the process. It's important to review these

areas on a quarterly basis to re-asses and create new action plans if

necessary.

S.W.O.T. Analysis can assist in identifying areas of weakness and

potential threats to the organization's HR. Therefore, be honest and

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realistic in determining each element - deal with the weaknesses and threats

head on rather than avoiding them. There's no point in finding out later that

the competition is ahead of the game because complete honesty wasn't

applied to the process. It's better to be realistic now than having to face the

pitfalls later on. When considering the opportunities, take a look at what is

occurring today as well as what could occur in the near future.

Conclusion

When determining the Strengths, Weaknesses, Opportunities and Threats

of the Human Resource needs, consider where the organization is in terms

of the following:

Employee and management hiring and retention levels

Economic and market changes

Physical working environment

Technological trends and changes to the industry

Government regulations and political changes

Customer and employee satisfaction

Honestly and openly evaluating the organization's Human Resource

requirements will help the business stay ahead of the competition, while

maintaining and striving towards the overall strategic goals. Remember to

take time to maintain strengths, correct weaknesses, take action on

opportunities and deal with potential threats.

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competencies get deployed will differ from how another person with similar

competencies will behave in a similar role.

This is where a SWOT analysis (Strengths, Weaknesses, Opportunities, and

Threats) of the individual can help make a difference. The SWOT gives a

good snapshot of the individual's approach as well as her competencies.

Moreover, unlike other methods of competency mapping that require high

degree of expertise and skills, a SWOT is relatively easier to implement and

can deliver value at almost any level.

STEPS TO DRAW UP A SWOT in INSURANCE SECTOR

The first step is to look at the Strengths and weaknesses of the individual.

Strengths

1. We can get an indication of strengths while considering questions such

as:

2. What does the person like to do?

3. What areas of the roles does the person do well?

4. In what areas of the role does the person naturally get into more

detail, often exhibiting an innate understanding of the technicalities of

the work?

5. What unusual skill/s does the person bring to the job?

6. What unique resources does the person draw on?

7. What are others likely to see as strengths?

8. What particular needs of the organization are met?

Each individual is unique and has her strengths. Studies have shown

repeatedly that those employees who enjoy doing what they do; they are

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more likely to be working in business units with lower employee turnover.

Companies that have focused on employee strengths have seen time and

time again, increase in productivity and employee loyalty.

Weaknesses

Similarly, personal areas of weaknesses can be deduced by asking questions

such as:

1. What does the person dislike?

2. What areas of the role does the person perform poorly?

3. What areas of the role does the person prefer to either work at a task

level, or prefers to remain at a high level?

4. Where does the person have fewer resources than others?

5. What are others likely to see as weaknesses?

Weaknesses like fear can result in a self-fulfilling prophecy. Keep your mind

on them, and that's what you get. It can result in creating poor self-image,

negative attitude and consequently poor performance. Working on improving

a weakness may at best prevent failures, but it's only in developing

strengths that success can be attained.

Opportunities

Now, once these Strengths and Weaknesses have been defined, the next

step is to look at opportunities. Opportunities come out of the specific

strengths of the individual as well as the role that the person is expected to

play. Some pointers that help identify opportunities are:1. Considering the strengths, what areas of the current role, and other

related roles can the person play well?

2. Are there other processes in the business model where the individual's

strengths can be leveraged?

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3. What trends can the individual help the organization take advantage

of?

When deciding the performance targets for the individual, stretch goals that

centre on a person's opportunities which are likely to energize and excite the

individual.

Threats

When looking at threats, ask:

1. What areas of the current role are likely to be compromised if the

individual is put under stress?

2. What skills is the employee lacking?

3. What are the impediments to gaining more skills?

4. What trends could cause harm?

For areas that are potential threats, ensure that clear acceptable minimum

targets are set, so that the individual does not compromise performance

below these levels under any circumstances. Threats can also be used to

examine and modify the employee's profile, so as to add value to the

business vision and objectives. A possible likelihood and a potential benefit is

that these threats can be converted into opportunities, since they are

identified well in advance.

Analysis of SWOT findings

A SWOT analysis is always done with regard to an objective and is neverobscure. Therefore the gathering of the Strengths, Weaknesses,

Opportunities and Threats is only half the job done. The next step is to

analyze the gathered details & create strategies for success both for the

current situation and for the future.

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This can be done by analyzing the four quadrants of the SWOT matrix:

QUADRANT 1

SO (Strengths-

Opportunities) strategies

QUADRANT 2

ST (Strengths-Threats)

strategies

QUADRANT 3

WO (Weakness-

Opportunities) strategies

QUADRANT 4

WT (Weakness-Threats)

strategies

1. Match internal strengths with external opportunities, and record the

resultant SO (Strengths-Opportunities) strategies. These strategies

focus on leveraging current opportunities with the available strength.

2. Match internal strengths with external threats, and record the resultant

ST (Strengths-Threats) strategies. These strategies focus on

vulnerable situations that require awareness.

3. Match internal weaknesses with external opportunities, and record the

resultant WO (Weakness-Opportunities) strategies. These

strategies focus on constraints that can be converted to opportunities,in the near future.

4. Match internal weaknesses with external threats, and record the

resultant WT (Weakness-Threats) strategies. These strategies focus

on problems that need immediate address.

Benefits of a SWOT

It is simple and encourages collaboration among employees

It is both cost and time effective

It explores and integrates information both from internal sources and

from external sources and is highly flexible

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Most businesses are efficient in analyzing their internal strengths

and weaknesses but are not efficient with analyzing the external

opportunities and threats and where they stand in relation to it. It is

here that SWOT analysis is useful. It causes businesses to look beyond

and to strategize accordingly

It presents information about the industry in a structured manner, and

aids in the formulation of effective strategies

Helps focus effort on areas that give competitive advantage

Gives an insight with regard to threats and how to react proactively to

them and to convert them into opportunities

SWOT analysis also helps to leverage team dynamics because when

building a team of people with identical roles, it helps to have people

with complementary SWOT profiles; thus providing for team synergy

as well

It is a great team-building tool, since it involves every member of the

team in the planning process.

Conclusion

A well managed SWOT will help a business see the overall picture. It will

help isolate key issues and facilitate a strategic approach to address them.

SWOT is highly recommended because of its ease of use and its ability to

scope the entire setting (playing field) i.e. both internal and external

factors (environments), its ability to match between the two and because of

its ability to chart out sound strategies thereafter. Businesses can use a

SWOT to position themselves to take advantage of opportunities, defend

themselves against any threats and consequently ensure long-term success.

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HDFC Standard Life

Insurance

Introduction

HDFC Standard Life Insurance Company Limited is one of India's

leading private insurance companies, which offers a range of individual and

group insurance solutions. It is a joint venture between Housing

Development Finance Corporation Limited (HDFC Limited), India's

leading housing finance institution and a Group Company of the StandardLife Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and

Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity

in the joint venture, while the rest is held by others.

Our Key Strengths

1. Insurance Expertise

As a joint venture of leading insurance services groups, HDFC Standard

Life has the insurance expertise required to manage your long-term

investments safely and efficiently.

2. Range of Solutions

We have a range of individual and group solutions, which can be easily

customised to specific needs. Our group solutions have been designed to

offer you complete flexibility combined with a low charging structure.

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3. Track Record So Far

Our gross premium income, for the year ending March 31, 2008 stood at

Rs. 4,859 crores. As of31 December, 2008 our new business premium

income stood at Rs. 1,839.70 Crores.

The company has covered over 812,811 lives as on December 31,

2008.

Why HDFC Standard Life?

HDFC Standard Life believes that establishing a strong and ethical

foundation is an essential prerequisite for long-term sustainable growth. To

ensure this, we have concentrated our focus on expansion of branch

network, organizing an efficient and well trained sales force, and setting up

appropriate systems and processes with optimum use of technology. As all

these areas form the basic infrastructure for establishing the highest

possible customer service standards.

Our core values are drilled down to all levels of employees, as these are

inviolable. We continue to promote high integrity in business practices and

shun short cuts and unethical practices, as we wish to be perceived as an

institution with high moral standing. Since our inception in 2000, when the

Indian insurance space was opened for private participation, we have

consistently focused on setting benchmarks in all aspect on insurance

business. Being the first private player to be registered with the IRDA and

the first to issue a policy on December 12, 2000, our differentiators are:

A. Strong Promoter

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HDFC Standard Life is a strong, insurancely secure business

supported by two strong and secure promoters HDFC Ltd and

Standard Life. HDFC Ltds excellent brand strength emerges from

its unrelenting focus on corporate governance, high standards of ethics

and clarity of vision. Standard Life is a strong, insurancely secure

business and a market leader in the UK Life & Pensions sector.

B. Preferred and Trusted Brand

Our brand has managed to set a new standard in the Indian life

insurance communication space. We were the first private life insurer

to break the ice using the idea of self-respect instead of death to

convey our brand proposition (Sar Utha Ke Jiyo). Today, we are one

of the few brands that customers recognize, like and prefer to do

business. Moreover, our brand thought, Sar Utha Ke Jiyo, is the most

recalled campaign in its category.

C. Investment Philosophy

We follow a conservative investment management philosophy to

ensure that our customers money is looked after well. The investment

policies and actions are regularly monitored by a formal Investment

Committee comprising non-executive directors and the Principal

Officer & Executive Director.

As a life insurance company, we understand that customers have

invested their savings with us for the long term, with specific

objectives in mind. Thus, our investment focus is based on the primary

objective of protecting and generating good, consistent, and stable

investment returns to match the investors long-term objective and

return expectations, irrespective of the market condition.

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D. Need-Based Selling Approach

Despite the criticality of life insurance, sales in the industry have been

characterized by over reliance on tax benefits and limited advice-

based selling. Our eight-step structured sales process Disha

however, helps customers understand their latent needs at the first

instance itself without focusing on product features or tax benefits.

Need-based selling process, 'Disha', the first of its kinds in the

industry, looks at the whole insurance picture. Customers see a plan

not piecemeal product selling.

E. Risk Control Framework

HDFC Standard Life has fully implemented a risk control framework

to ensure that all types of risks (not just insurance) are identified and

measured. These are regularly reported to the board and this ensures

that the company management and board members are fully aware of

any risks and the actions taken to ensure they are mitigated

F. Focus on Training

Training is an integral part of our business strategy. Almost all

employees have undergone training to enhance their technical skills or

the softer behavioral skills to be able to deliver the service standards

that our company has set for itself. Besides the mandatory training

that Insurance Consultants have to undergo prior to being licensed, we

have developed and implemented various training modules covering

various aspects including product knowledge, selling skills, objection

handling skills and so on.

G. Focus on Long-Term Value

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HDFC Standard Life does not focus in the business of ramping up the

topline only, but to create maximization of stakeholder's value. Today,

we are extremely satisfied with the base that we have created for the

long-term success of this company.

H. Transparent Dealing

We are one of the few companies whose product details, pricing;

clauses are clearly communicated to help customers take the right

decision.

I. Strict Compliance with Regulations

We have initiated and implemented many new processes, some of

which were found useful by the IRDA and later made mandatory for

the entire industry. The agents who successfully completed this

training only, were authorized by the company to sell ULIPs. This has

now been made compulsory by IRDA for all insurance companies

under the new Unit Linked Guidelines.

J. Diversified Product Portfolio

HDFC Standard Lifes wide and diversified product portfolio help

individuals meet their various needs, be it:

Protection: Need for a sound income protection in case of your

unfortunate demise

Investment: Need to ensure long-term real growth of your money

Savings: Save for the milestones and protect your savings too

Pension: Need to save for a comfortable life post retirement

Health: Cover for health related exigencies

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Our Parentage

HDFC Limited

HDFC Limited, Indias premier housing finance institution has assisted

more than 3.3 million families own a home, since its inception in 1977 across

2400 cities and towns through its network of over 250 offices. It has

international offices in Dubai, London and Singapore with service associates

in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own a

home back in India. As of December 2008, the total asset size has crossed

more than Rs. 95,000 crores including the mortgage loan assets ofmore than Rs. 82,800 crores. The corporation has a deposit base of Rs.

17,551 crores, earning the trust of more than 9, 00,000 depositors.

Customer Service and satisfaction has been the mainstay of the

organization.

HDFC has set benchmarks for the Indian housing finance industry.

Recognition for the service to the sector has come from several national and

international entities including the World Bank that has lauded HDFC as a

model housing finance company for the developing countries. HDFC has

undertaken a lot of consultancies abroad assisting different countries

including Egypt, Maldives, and Bangladesh in the setting up of housing

finance companies.

Standard Life Group (Standard Life plc and its

subsidiaries)

The Standard Life Group has been looking after the insurance needs

of customers for over 180 years. It currently has a customer base of

around 7 million people who rely on the company for their insurance,

pension, investment, banking and health-care needs. Its investment

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manager currently administers 125 billion in assets. It is a leading pensions

provider in the UK, and is rated by Standard & Poor's as 'strong' with a

rating of A+ and as 'good' with a rating of A1 by Moody's. Standard Life

was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at

the Money Marketing Awards, and it was voted a 5 star life and pensions

provider at the Insurance Adviser Service Awards for the last 10 years

running. The '5 Star' accolade has also been awarded to Standard Life

Investments for the last 10 years, and to Standard Life Bank since its

inception in 1998. Standard Life Bank was awarded the 'Best Flexible

Mortgage Lender' at the Mortgage Magazine Awards in 2006.

Our Vision & Values

Our Vision

'The most successful and admired life insurance company, which means that

we are the most trusted company, the easiest to deal with, offer the best

value for money, and set the standards in the industry'. 'The most obvious

choice for all'.

Our Values

Values that we observe while we work:

Integrity

Innovation

Customer centric

People Care One for all and all for one

Team work

Joy and Simplicity

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HUMAN RESOURCE MANAGEMENT

{At HDFC STANDARD Life Insurance}

The company attributes its success to the contributions made by its

employees. We believe that our strength is our people, so our endeavour is

to surpass their expectations and give them the best possible work

environment and benefits that match the best in the industry.

Talent management initiatives in HDFC Standard Life are driven by a

set of organizational core competencies (Mantra 10) as well as position-

specific competencies. The competency set includes knowledge, skills,

experience, and personal traits (demonstrated through defined behaviors)

based on the bedrock of sharp vision and strong values ofHDFC Standard

Life.

In this endeavor of shaping and nurturing our talent pool, HDFC

Standard Life adopts a four-step model:

a. Acquiring and Retaining Talent

HDFC Standard Life believes in building capability for superior

performance leading to a superior shareholder value. We have a bouquet of

people processes like Assessments, Potential Review, Defined Career plans

that identify and invest to create effective leaders.

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Our path breaking career progression progamme Front line Assessment

and Growth Program (FLAG) -- for the retail channel is designed towards

achievement orientation. It recognizes achievers through fast track career

progression coupled with attractive remuneration.

The above is true for all levels as we believe that providing opportunity to

employees is the key to motivate them to aspire for higher responsibility. As

HDFC Standard Life is a performance-driven organisation, achievers move

up the career ladder, effortlessly.

b. Competency Mapping and Developing Capability

Competencies are the desired business behaviors, which enable an individualto contribute towards organizational growth. We have a set of identified core

competencies, which help employees to imbibe and achieve a consistent

business performance. We have branded our competency model as Mantra

10.

We believe in integrating our HR processes on the basis of Mantra 10, to

create a competency driven culture.

c. Engaging Talent

In todays environment, employee engagement has become a business

imperative. Capturing employee insights as to the strengths and concerns of

the organization is the starting point of the Engagement journey.

HDFC Standard Life partners with reputed global organisation such as

Gallup to assess employee perception on critical engagement dimensionsthat consistently correlates to business outcomes. These findings help us to

prioritize areas for employee engagement action across the organization and

specific to various departments. Through concerted efforts at the

organizational, functional and work group level, together we strive towards

attaining the goal of making HDFC Standard Life a great workplace.

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d. Rewarding and Nurturing

We believe that raising the bar of performance keeps employee challenged

and the generation enjoys the stretch. We have robust employee recognition

programs in place for employees who achieve above & beyond.

We take pride when we talk about learning opportunities we offer to

employees. We have set the trend in Learning & Development in the

Insurance space. We have training plans for employees at all levels and for

our insurance consultants, we have created a training infrastructure with 3

training centers of our own at Delhi, Bangalore and Lonavala (Mumbai).These temples of learning provide a unique learning environment to

employees to hone their skills & capabilities through our internal trainers in

Sales, Behavioral Sciences and E- Learning.

e. Compensation & Benefits

Well-being of our employees is our utmost objective. The compensation and

benefits offered are best in the industry and are aimed at not only attracting

but also retaining the best talent. Rewards for each position are based on

performance, potential, and market value.

We offer other benefits as well, such as provident fund, gratuity and a

hospitalisation insurance coverage program that covers not only the

employee but his/her family as well. The employees, who complete two yearsof service, can avail of housing and education loans facility at discounted

rate. We encourage our employees to go for further education. For our

employees convenience all common processes like compensation details,

reimbursement, leave applications, travel planning, updating personal

information, etc. are automated through the extensive use of technology.

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f. Management Trainee Program

The key objective of this program is to nurture business leaders of tomorrow.

Well-qualified management graduates are provided with in-depth knowledge

of insurance sector and business processes. The management trainee

program spreads over a period of 12 months, making it one of the most

comprehensive entry-level programs in India.

HRM Challenges Faced By Managers

At HDFC Standard Life Insurance

Introduction:

The HR Managers of today may find it difficult because of the rapidly

changing business environment and therefore they should update their

knowledge and skills by looking at the organization's need and objectives.The HRM challenges are

Managing the Vision:

Vision of the organization provides the direction to business strategy and

helps managers to evaluate management practices and make decisions. So

vision management becomes the integral part of Man management in future.

Internal environment:

Creating an environment which is responsive to external changes, providing

satisfaction to the employees and sustaining through culture and systems is

a challenging task.

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Changing Industrial Relations:

Both the workers and managers have to be managed by the same HRM

Philosophy and this is a daunting task for the managers.

Building Organizational capability:

Even in the adverse circumstances the employees have to be made to live in

psychological state of readiness to continually change.

Job Design & Organizational structure:

Instead of depending on foreign concepts we need to focus on understanding

the job, technology and the people involved in carrying out the tasks.

Managing the large work force:

Management of large workforce poses the biggest problem as the workers

are conscious of their rights.

Psycho-Social environment:

Nowadays employees participation required not only in performing job but

also in democratizing and humanizing the institution.

Employee Satisfaction:

Managers should be aware of techniques to motivate their employees so that

their higher level needs can be satisfied.

Modern technology:

There will be unemployment due to modern technology and this could be

corrected by assessing manpower needs and finding alternate employment.

Computerized Information System:

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This is revolutionary in managerial decision making and is having impact on

coordination in the organization.

Legal environment:

To meet the changes in legal environment, adjustments have to be made to

the maximum utilization of human resources.

Managing Human Relations:

As the workforce comprises of both educated and uneducated, managing the

relations will be of great challenge.

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SWOT ANALYSIS

{At HDFC Standard Life Insurance}

Criteria Examples for A Manager

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What are my/ yourstrengths?

Examples:Enthusiasm, energy, imagination,expertise in Subject area

Excellent track record in specializedarea

What are my/ yourweaknesses?

Examples:Not good at achieving results throughundirected use of personal energies,

Trouble at expressing themselvesorally and on paper

Management experience andexpertise limited

What are my/ youropportunities?

Examples:More general managementopportunitiesrequiring development of newmanagers

Development of new locations andneed for management

What are my/ your threats?

Examples:De-centralization having the effect ofremoving departments

Elimination of middle managementlayers

ThreatsOpportunities

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Criteria Examples for HRM

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Strengths Weakness

Internal Factors (Company)

What are the strengths of ourHRM?

Examples:

Developed techniques for HRM Innovation culture in the HRM-Team Modern IT-Infrastructure

What are the weaknesses ofour HRM?

Examples:

Poor position in management:Reactive rather than pro-activework No ideas to meet the lack ofyoung, qualified people

What are the opportunities forour HRM?

Examples: New management team wantingto improve business throughorganizational development andcultural development programmes Governmental programmes topromote the qualification of youngpeople

What are the threats for ourHRM?

Examples: Contribution of HRM notrecognized by top management Budget reduction forvocational training and furthertraining Deficit of well qualified peoplein labour market

Opportunities Threats

External Factors (Market, Internal Environment)

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Figure 1 : SWOT Analysis

Figure 2 : Coping Up With Challenges Of HR

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Figure 3 : Impact Of Recession On Organization.

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HRs Challenges in the Insurance

Sector

Turmoil in insurance markets during this economic downturn, haspresented insurance services firms and their human resources functions with

daunting challenges in their approach towards talent. Though the market

downturn is the harsh reality; the severity of this insurance crisis cannot be

over-dramatized by losing focus on strategic human capital systems and

functions which can form means of overcoming the paramount challenges in

the future of the insurance services sector.

Insurance Services sector cant afford to losefocus on people; they are in an

intellectual capital business. It is more important than ever that they connect

their emerging leaders and talent sources with the senior leadership, while

working directly with line managers to equip them with tools for managing

teams during times of unprecedented change.

Even though the insurance services sector is caught in the tough conditions;

the need of top performers is the perennial need. Hence the HRs of allinsurance services firms must look for answers for certain difficult questions:

How can we still attract and retain outstanding people despite tighter

limits on recruiting and compensation?

Is reducing headcounts cutting into our core talent?

Are we making smart decisions or blind mandates about where to

invest and where to cut?

How can we reduce training, development and benefits costs while

continuing to service employees and clients effectively?

How do we sustain performance in the face of cost constraints?

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In the face of these challenges, some distinct trends are sure to emerge in

the desired competencies of HR personnel, the deployment of HR

infrastructure, and the approach to familiar HR issues - such as recruiting,

retention, and talent management It is time that these areas and its

supporting elements are wisely altered to stand ground against this current

volatility in the industry.

The New Role and Set up: Introspect

The role ofHR Generalists must be nurtured by linking them to the business.But this happens the HR-Generalist role becomes critical and depends on the

generalists ability to recognize now more than ever on how they can help

leaders manage in this time of turbulence and ambiguity, even if it requires

asking an organizational development specialist to step in for specific

challenges.

HR generalists who remain close to the business and have sufficient core

business knowledge gain credibility and are in lock-step with business heads,

providing greater value add. At the same time, on boarding and developing

HR professionals with experience in managing across a range of geographies

is important if firms continue or intend to expand globally.

In addition, broadly talented HR professionals who are able to work across

the function should be encouraged. They should be versed with the

importance of lean teams and should be able to contribute towards Lean

management. One way to initiate this is by retraining the existing HR staff

on ways to handle wider set of challenges; keeping the market conditions in

perspective.

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A talent pool of seasoned professionals, who can manage the complexities of

workforce, will always stand limited unless the selection decisions contribute

towards the objective of business purpose.

The need to do more with less has intensified; earlier several service firms

reorganized HR and talent management teams by closely aligning them with

business lines as a means of serving specific internal customer needs. But

today at one end we see firms preferring shared services model to reduce

costs and increase efficiency. While at the other end, we can see some firms

moving toward centralization as a means of creating a leaner function that

serves across business lines.

We are also seeing some discernible HR talent trends in specific industry

segments. For example, many service and private equity firms with

historically lean or non-existent HR functions are taking advantage of

todays buyers market for talent by recruiting human resources

professionals who can bring in the best practices from more institutionalized

firms and industry segments.

Cost containment has become a grave concern in the area of HR, withcompanies taking a hard look at issues such as compensation and vendor

management, implementing more self-managed services and web resources

for benefits and training, fun and benefit programs. During this time, the role

of an HR is to assert its value-add to the organization through stringent

measurement and reporting against metrics that track not only cost, but

efficiency, retention, turnover and performance. This is where reporting and

documentation of critical information plays a vital role.

Recruitment Favorable conditions V/s Challenge

Until recently, many firms shied away from conducting massive layoffs; well,

it was boom time!!!. However, with the economic downturn, firms are being

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forced to let go of staff; more at junior levels while retaining or even

continuing to hire strategic employees at senior levels to prepare the firm for

the future.

Firms somehow believe that they will attain success by finding alternatives

that will enable them to contain costs,

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