Notes

5P model for linking strategic business needs & strategic HR management activities.

Human Resources PhilosophyThis is a statement of how the organization regardsIts human resources, what role the resourcesPlay in the overall success of the business,And how they are to be treated andManaged. This statement is typically very general,Thus allowing interpretation at more specificLevels of action within an organization. AFirms HR philosophy can be found in its stutementOf business values. For example, one of theFour value statements used at the Forest ProductsCompany (FPC) describes the companysPhilosophy of what employees mean to theCompany.Human Resources PoliciesAll of these statements provide guidelines foraction on people-related business issues andfor the development of HR programs andpractices based on strategic needs. The termHR Policy, as used here, does not mean HRP&y Manual. While a policy manual maycontain statements of general guidelines, employeesoften perceive the manual as a rulebook prescribing very specific actions permittedin very specific situations.HR ProgramsShaped by HR policies, HR programs representcoordinated HR efforts specifically intendedto initiate, disseminate, and sustainstrategic organizational change efforts necessitatedby the strategic business needs. Theseefforts may begin at the top of the organizationand filter down, or they may begin elsewhere.They may even begin in two places atthe same time. For example, Fords early-1980s strategic decision to emphasize qualityevolved at the top-management level and theplant level simultaneously, a serendipitousdevelopment. Human Resources PracticesOne useful way to approach this componentof HR strategy is from the framework of roles.Generally speaking, the roles that individualsassume in organizations fall into three categories:leadership, managerial, and operational.In each case, behaviors associated witha given roPe sh ould support strategic needs.HR ProcessesThis area deals with how all the other HRactivities are identified, formulated, and implemented.Thus, it is a significant strategichuman resources management activity. In theFPC situation, the process for establishing the

Leadership Institute and the HR programswas accomplished through a great deal of interactionamong the director of strategic educationand the line managers.

Q . the seven common misconceptions for Human Resource

1. Conscientiousness is a better predictor of performance than intelligence.2. Companies that screen job applicants for values have higher performance than those that screen for intelligence.3. Integrity tests dont work well in practice because so many people lie on them.4. Integrity tests have adverse impact on racial minorities.5. Encouraging employee participation is more effective for improving organizational performance than setting performance goals.6. Most errors in performance appraisal can be eliminated by providing training to managers on how to avoid them.7. If employees are asked how important pay is to them, they are likely to overestimate its true importance.

Q- Explain in brief different guidelines for effective Human Resource Outsourcing in the organization.

Based on the recommendations of Dubisky, the following seven steps have been identified in order to achieve success in HR Outsourcing: 1) Planning Initiatives: The first step is to announce initiative after the assessment of risks. Project team is to be formed, and advisers are to be engaged to train the team. Other resources are to be acquired and issues like resource management, information management and project management need to be addressed. Accordingly, objectives then be set. 2) Exploring Strategic Implications: The second step is to understand the organizations vision, core competencies, structure, transformation tools, value chain and strategies. Thereafter decision rights, contract length and termination date need to be determined. Aligning initiative should follow. 3) Analyzing Costs and Performance: The next step in the process is to measure activity and project failure costs. Existing and future performance is then to be measured along with the estimation of the cost of poor performance. It is also very important to benchmark costs and performance. Specific risks, asset values, make total costs, pricing models and final targets need to be determined. 4) Selecting Providers: The next crucial step is to select providers. For this purpose, the organizations need to first set qualifications and evaluation criteria. Providers are then identified and screened. An RFP is drafted. Proposals are then evaluated based on the qualifications and costs and the provider is finalized. 5) Negotiating Terms: Negotiations are then to be planned after addressing high level issues and deal breakers. Accordingly, term sheets are to be prepared. The contract then need to be negotiated based on the scope, performance standards, pricing schedules, and terms and conditions; and the relationship be announced. 6) Transitioning Resources: The next important step is to adjust team roles and to compare/merge transition plans. The transition issues like communication, human resources, and other production factors are to be addressed. The employees need to be taken into confidence. The organization and the provider are to meet them, make offers/termination, and provide counseling. 7) Managing Relationships: The last but the most vital step is to adjust management styles, set up oversight council, and communicate. Meeting agendas, meeting schedule and performance reports need to be defined and designed. Poor performance is to be confronted and problems, if any, are to be solved. The ultimate effort is to build the relationship.