Top Banner
1
96

Research Report on Hr Practices 122222222222222222222222

Aug 29, 2014

Download

Documents

Palak Sharma
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Research Report on Hr Practices 122222222222222222222222

1

Page 2: Research Report on Hr Practices 122222222222222222222222

INTRODUCTION TO THE TOPIC

In every organization the HR has a crucial role in building the organizational culture and

also molding the ethical character of the workforce. Though the role of HR is evolving

and assuming more strategic significance it is still widely recognized as the policing arm

of the executive management. The HR has responsibility for all the functions that deal

with the needs and activities of the employees. Hiring, training, leadership development,

performance management, person new policy framework, salary and benefit programmes

all come under the purview of the HR. Its overbearing presence has tremendous influence

on the workforce. Therefore organizational culture that supports and encourages ethical

behavior depends to a great extent on the even handedness of HR systems.

The Society of Human Resource Management defines a "best practice" in HR as a

particular method, approach, or practice of managing people, which has a positive impact

on a company's overall business performance by improving employee satisfaction,

customer satisfaction, and also the bottom-line business performance. Best practice is a

difficult concept to define because it depends on many variables. These practices are not

limited to what is accomplished, within what framework, within what environment and

under what economic conditions. Studies have identified the major categories for best HR

practices as:

Management Practices;

Selection and Placement;

Training and Development;

Compensation and Benefits;

Employee Relations and;

Health/Safety Security.

HR and Strategic PlanningThe strategic level contribution of HR is defined as “the overall and coherent long term

planning and shorter term management control and monitoring of an organization’s

2

Page 3: Research Report on Hr Practices 122222222222222222222222

human resources so as to gain from them the maximum added value and to best position

them to achieve the organization’s corporate goals and mission”.

A Strategic HR Plan enables organizations to align resources to corporate strategy. It

provides information on how the HR functions will support the goals and strategies of the

organization and ensure that HR planning and practices are consistent across the

organization. It outlines how the gaps between future and present capability will be

addressed.

The strategic HR plan supports and is aligned to the corporate mission, vision, values and

strategies. It is an essential planning document. It is important that the strategic HR plan

is developed only after a clear direction is established and understood.

HR and Performance Management SystemThe HR function is increasingly important in shaping the new organization in which the

quality and commitment of people is key to survival. Employees at all levels experience a

need to know clearly what they should be doing and what is expected of them in terms of

quantity and quality of output. Performance appraisal should lead to identification of

training and development needs. It also creates a new basis for improvement and

development. Performance Management System provides some of the essential

components of effective motivational strategies. In particular feedback that permits an

employee to learn how well he or she is performing. Performance Management System

provides relevant information required for validating selection methods. The performance

management process is the sequence of actions supervisors take when interacting with

employees about their job performance and includes:

Determining the key elements of the job,

Developing performance expectations,

Providing and interim review of job performance, and

Providing an annual performance appraisal.

Interaction between supervisor and employee is required at each step of the process.

3

Page 4: Research Report on Hr Practices 122222222222222222222222

HR and TrainingTraining is defined as a planned process to modify the attitude, knowledge or skill

behavior through learning experience to achieve effective performance in an activity or

range of activities. Its purpose is to develop the abilities of the individual and satisfy the

current and future needs of the organization. The competitive edge will be maintained by

those organizations, which use their workforce more efficiently. From this it follows that

effective training is paramount for survival and growth. Many organizations

communicate their training and development goals and initiatives. Within a training and

development plan, the following components are taken into consideration:

Mission statement

Stated goals and objectives of the training function

Training strategy of the organization

Yearly training initiatives

Benefits from training:Greater productivity and better quality

Better job satisfaction (as evidenced by lower absenteeism and lower turnover) and

greater motivation

Greater versatility of workforce

Reduced need for supervision

Greater understanding and thereby adherence to company values

Reduced accident rates

Development of more confident and competent workforce

‘Linking HRM Practices and HRM outcomes’

Selection

Socialization ------------Skills and Ability

Training and development (Quality)

4

Page 5: Research Report on Hr Practices 122222222222222222222222

Quality Improvement Programmes

Single status

Job security ------------Effort/motivation

Internal promotion (Commitment)

Individualized reward systems

Communication

Employee Involvement -------------Role structure and perception

Team working (Flexibility)

Job design $ job descriptions

Nine Basic Elements of Human Resource Practices Planning and Appraisal : How an organization sets goals, plans performance,

provides ongoing coaching, and evaluates performance of employees (individuals

and/or teams).

Individual and Team Development : How an organization identifies the needs for

employee skill development, education, and growth and how they meet those needs.

Career Planning : How an organization strives to help employees to learn their

strengths and to match these strengths, aptitudes, preferences, and abilities to future

work.

Hiring : How an organization defines and fills positions and roles with qualified

people from within and/or outside the organization; how an organization orients these

new employees.

Career Pathing : How an organization (for key positions and roles) determines the

logical progression of jobs, roles, assignments, and development to provide a

sufficient pool of qualified candidates and incumbents.

5

Page 6: Research Report on Hr Practices 122222222222222222222222

Succession Planning : How an organization systematically identifies key roles and

positions determines performance requirements and targets a group of people to fill

these positions and roles in the future.

Job Design : How an organization determines the best methods for accomplishing a

work product or result. The two major types are the individual job and the team.

Classification: The systematic process for evaluating the size and appropriate salary

ranges for different jobs and roles in an organization.

Compensation/Recognition/Other Rewards: How an organization pays and

rewards employees (individuals and/or teams), through salary, bonuses, benefits

and/or non-financial rewards

The initial impact of HR practices on employees’ commitment to the organization

begins with selection and staffing. When firms invest in selecting the most highly

skilled people, and providing them with increased skills through continuous training

and development opportunities, employees find a workplace filled with well qualified

co-workers. This makes for a positive work environment by enabling them to focus

on serving their own customers successfully, doing their own job well and not having

to constantly clean up the mess of other co-workers. Additionally, by using valid

performance management systems and monetary incentives to elicit high

performance, employees can see a more direct line of sight between their behavior

and their personal outcomes. This creates a positive work environment where

individuals feel fairly and equitably rewarded for their efforts. Finally, having open

communications and participatory systems enables employees to both understand the

organization’s competitive position and be able to participate in processes to help

improve it. This creates a positive work environment where people feel they are

listened to and respected. An environment created by the systems discussed above is

one where people are unlikely to want to leave; they identify with the organization

personally and want to see it succeed. This describes the construct of organizational

commitment.

6

Page 7: Research Report on Hr Practices 122222222222222222222222

The three broad perspectives on the ways that HR practice contributes to business

performance:

1) "Best Practice" – a set of HR practices can be identified, that, when implemented,

will improve business performance.

2) "Contingency" – business performance will be improved when the best "fit" between

business strategy and HR practices is achieved.

3) "Bundles" – specific bundles of HR practices can be identified that will generate

higher performance in organizations; the most effective composition of these "bundles"

will vary in different organizational contexts.

Seven characteristics that identifies as the core practices that "characterize most if not all

systems producing profits through people". These seven characteristics are:

• An emphasis on providing employment security

• The use of self managed teams

• Decentralization of decision making; and extensive training

• Selective hiring of new personnel

• reduced status distinctions and barriers

• Extensive provision of training

• Compensation linked to performance.

HR practices have a direct impact on employee skills, motivation, job design and work

structures. These variables elicit certain levels of creativity, productivity and

discretionary effort, which subsequently translate into improved operating performance.

This has an impact on profitability and growth, which in turn have a direct impact on the

firm’s market valuation.

7

Page 8: Research Report on Hr Practices 122222222222222222222222

Employee outcomes deal with the consequences of the practices on employees such

as their attitudes and behavior, particularly behaviors such as absenteeism and

turnover.

Organizational outcomes focus on more operational measures of performance such as

productivity, quality, and shrinkage, many or all of which would be precursors to

profitability.

HR practices are an important tool for organization profitability and productivity.

The initial impact of the HR practices on employees’ commitment to the organization

begins with selection and staffing. When firms invest in selecting the most highly

skilled people, and providing them with increased skills through continuous training

and development opportunities, employees find a workplace filled with well-qualified

co-workers. This makes for a positive work environment by enabling them to focus

on successfully serving their own customers and doing their own job well, and not

having to constantly clean up other co-workers’ messes.

An environment created by the systems is one in which people are highly unlikely to

want to leave. They personally identify with the organization, and want to see it

succeed. This describes the construct important lever driving this type of attitude

profitability. Employees who are committed to an organization should be motivated

to

(a) Exhibit higher quality in-role behaviors,

(b) Exhibit a greater volume of positive extra-role behaviors, and

(c) Engage in less counterproductive behavior relative to those who are not

committed.

These role behaviors likely impact a number of operational performance

measures. For instance, committed employees following safety rules (in-role) are

less likely to be injured and are unlikely to either exploit minor injuries or make

spurious or fictitious injury claims (counterproductive) resulting in fewer

workers’ compensation claims for the business.

Businesses with committed employees experience higher productivity as their

employees seek to better execute required behaviors, go beyond the job to devise

8

Page 9: Research Report on Hr Practices 122222222222222222222222

more efficient ways of working (extra-role), and are not likely to shirk or free-ride

(counterproductive).

Today’s innovative companies are replacing independence with integration,

transforming best-effort mentalities into a truly results-driven culture and using

performance management to effectively reward high performers and directly target

poor performers for improvement or termination.

Organizational culture supporting HR practices :

Communication: the openness and effectiveness of communication systems within and

between levels.

e.g. ‘Important information is often not communicated to people’.

Performance feedback: the extent to which information about job performance is fed

back to employees.

e.g. ‘People usually receive feedback on the quality of work they have done’.

Concern for employee welfare: the extent to which employees feel valued and trusted.

e.g. ‘This Company is considerate towards its employees’.

Supervisory support: the extent to which employees experience support and

understanding from their immediate supervisor or manager

e.g. ‘Supervisors show an understanding of the people who work for them’.

Formalization: the degree to which rules and formal procedures govern the way things

are done

e.g. ‘Everything has to be done according to the book’.

Autonomy: the degree of freedom employees are given to do their jobs without

Consultation.

e.g. ‘People are given adequate scope to do their jobs properly’.

9

Page 10: Research Report on Hr Practices 122222222222222222222222

Quality: the level of importance placed on producing quality products and services

e.g. ‘Quality is taken very seriously here’.

Effort: the degree of effort and enthusiasm employees put into their work.

e.g. ‘People are prepared to make a special effort to do a good job’.

Pressure: the extent to which there is pressure on employees to produce.

e.g. ‘People here are under pressure to meet targets’.

Vision: the extent to which employees understand the company vision and long-term

aims.

e.g. ‘People have a good understanding of what the organization is trying to do’.

Efficiency: the degree of importance placed on efficiency and productivity at work.

e.g. ‘Poor scheduling and planning often results in targets not being met’.

Tradition: the extent to which traditional, established ways of doing things are valued

e.g. ‘The way this organization does things has never changed very much’.

Innovation: the level of interest in new ideas and innovative approaches

e.g. ‘There is a lot of support for new ideas here’.

Flexibility: the extent to which the company can adapt to change

e.g. ‘Management here is quick to spot the need to do things differently’.

Skill Development: the extent to which employees are encouraged and supported in

learning job-relevant skills

e.g. ‘People are strongly encouraged to develop their skills’.

10

Page 11: Research Report on Hr Practices 122222222222222222222222

Outward focus: the degree to which management looks outside for market opportunities

and the degree of importance placed on providing a high level of service for the customer

e.g. ‘This organization is quite inward looking; it does not concern it with what is

happening in the market place’.

Reviewing objectives: the extent to which organizational members take action in

changing objectives, strategies or team processes in order to achieve successful outcomes

e.g. ‘In this organization, time is taken to review organizational objectives

Dimensions of HR practices for evaluating organization performance Selection and recruitment

Induction

Training

Appraisal

Skill flexibility

Job variety

Job responsibility

Team working

Communication

Quality improvement teams

Harmonization

Comparative pay

Incentive compensation systems

PERFORMANCE IMPROVEMENT PROCESS FOLLOWED IN THE

ORGANISATION

I. Informal Communication – Coaching and Counseling

Step 1: Identify Areas of Improvement

11

Page 12: Research Report on Hr Practices 122222222222222222222222

Determine the specific areas that the employee needs to improve. Be specific and be

prepared. For example, does the employee need improvement in the area of knowledge of

the job, required skills, ability or behavior to successfully perform the job?

Also don’t lose sight of the areas in which the employee is performing successfully. This

can be used as encouragement for the employee and identifies strengths to build on the

employee’s weaknesses. It also provides a more well-rounded view of the employee’s

performance.

Step 2: Informal Communication Process

Identify the expectations of the position and discuss with the employee the issues that are

cause for concern. Also discuss what is needed to improve the employee’s performance

and any extenuating circumstances, such as training and development, family issues,

interpersonal work relationships, etc.

Identify available resources to assist the employee:

Human Resource Development

IMPACT Employee Assistance Program and Work / Life Program

Employee Relations

Together develop a written Action Plan, that includes the:

Performance improvement needs,

Performance expectations,

Evaluation measures,

Training and Development requirements and available resources,

Timeline for improvement and

12

Page 13: Research Report on Hr Practices 122222222222222222222222

Date and Time for follow up meeting.

The action plan is documented, signed and dated by both the supervisor and the

employee. Throughout this period provide verbal feedback to the employee praising

success but also identifying situations and suggesting how they could have been handled

differently for a more successful resolution.

Step 3: Follow Up Meeting

Review the employee’s performance over the review period. Again identify successful

performance and areas that may still need improvement. Be specific and honest. Ask the

employee’s opinion of his/her performance and if there are any other methods, resources

that will be helpful to the employee’s performance.

II. Formal Communication (Discipline Process)

If the Informal Communication Process has not resulted in improved performance that

meets performance expectations and achieved satisfactory performance measures, the

Formal Communication Process is implemented. This is the beginning of the formal

discipline process.

Step 1: Verbal Warning

The verbal warning identifies the performance issues that have not been brought up to the

appropriate level and the employee is notified that:

• this is a verbal warning;

• he or she will be subject to the formal disciplinary process; and

• His/her job may be in jeopardy if performance does not improve by a

specific date.

The verbal warning is documented and retained in the supervisor’s file.

13

Page 14: Research Report on Hr Practices 122222222222222222222222

Step 2: Written Warning

Performance is identified that has not improved within the appropriate time frame or the

employee has not followed through with the training and development or the assistance

counseling in an effort to improve performance.

The written warning is documented, dated, signed by both the supervisor and the

employee and retained in both the supervisor’s and employee’s file. If the employee

declines to sign the warning, the supervisor should indicate that the employee has refused

to sign.

Contact Human Resources, Employee Relations and Development, for assistance in

writing the written warning. A pre-disciplinary hearing may be requested for classified

employees.

This process may result in a job reassignment, suspension (classified), paid or unpaid

leave, termination for cause or notification of the end of an appointment (unclassified).

14

Page 15: Research Report on Hr Practices 122222222222222222222222

Theoretical Framework for Human Resource Management

Intervening variable

I

Independent Variables Dependent

Variable

Moderating variables

15

MANAGERIAL COMPETENCIES

HR Professional Competence

Business -related Competence

ORGANIZATIONAL PERFORMANCE

TechnicalHuman Resource

Practices

Strategic

Human Resource Practices

ORGANIZATIONAL CONTEXT VARIABLES

Firm sizeLevel of TechnologyUnion Coverage

Page 16: Research Report on Hr Practices 122222222222222222222222

WHAT IS "BEST PRACTICE" IN HR?

There is no single best practice to which all organizations should aspire. Each firm has a

distinctive HR system that represents a core competencies required for the survival and

sustainability for that particular organization.

"Best practices" in HR are subjective and transitory. What is best for one company may

not be best for another. What was best last month may not be best for today. The concept

of "best" is highly subjective and non-specific. "Best practice" is not a set of discrete

actions but rather a cohesive and holistic approach to organizational management.

However some factors which constitute best practices in HR are:

Communications: The "best practice" companies have the most intense communications

which are broad-based, continuous and involve multi-directional employee contact.

Communications with employees is "a given" and is a formal, focused and on-going

responsibility. Communications are not done as an "extra".

Continuous Improvement: The best companies are never satisfied. They focus not only

getting it right but doing it better. They are intensely dependent on feedback from all

sources as the prime basis of their continuous improvement philosophy.

Culture Consciousness: The best companies are all sharply focused on their culture and

are conscious of how culture shapes systems and behavior. Customer Focus &

Partnering: In the best companies, customer focus is proactive and not reactive. They are

out in the market-place to anticipate changing customer needs and to build on

16

Page 17: Research Report on Hr Practices 122222222222222222222222

relationships on a face-to-face basis. They get totally focused on the customer and think

and talk business rather than HR.

Interdependence: Many organizations are a conglomeration of fiefdoms with each

department "protecting its own turf". Commonly, these organizations have a "silo

mentality". By contrast, the best companies make a conscious and deliberate effort to add

to and reinforce each other’s contribution. This encourages openness and trust that are

essential for effective teamwork. There is constant cross-functional cooperation and

communication.

Value Focus: Focus on values must be looked at from two perspectives: Value-Added

and Values-Driven. Value-Added means a sharp and constant effort on adding to the

bottom line. When changing a HR policy, practice or process the companies should ask

questions such as "What difference does this make, ultimately, to the customer? Will it

mean that the company can get a product out, or provide a service, better, cheaper and

faster? Will it serve our customers better? How will our customers benefit?" If it’s not

ultimately valuable to the customer, then it is not valuable to the company.

Values-Driven means that everything the company does is motivated by a set of values

and qualities that asks questions such as "What are we here for? How do we treat our

employees? How do we relate to our customers?" Companies should ask these questions

as part of their conscious operating philosophy and not assume in the subconscious that

this thinking is pervasive throughout the organization.

17

Page 18: Research Report on Hr Practices 122222222222222222222222

INTRODUCTION OF THE COMPANY

Hero Honda Motors Limited, based in Delhi, India, is the world's largest manufacturer

of motorcycles. Hero Honda is a joint venture that began in 1984 between the Hero

Group of India and Honda of Japan. It has been the world's biggest manufacturer of 2-

wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a

single year.

Hero Honda's Splendor is the world's largest selling motorcycle. Its 2 plants are in

Dharuhera and Gurgaon, both in India. Third plant at Haridwar, Uttranchal is also under

commissioning stage & will start production by April, 2008. It will have world class

production facilities like Lean Manufacturing concept, more flexible lines & Stream line

material flow, within & proximity (Planning to set vendors in nearby locating

constituting HHML Park). It specializes in dual use motorcycles that are low powered but

very fuel efficient

COMPANY PROFILE

“Hero” is the brand name used by the Munjal brothers in the year 1956 with the flagship

company Hero Cycles. The two-wheeler manufacturing business of bicycle components

had originally started in the 1940’s and turned into the world’s largest bicycle

manufacturer today. Hero is a name synonymous with two-wheelers in India today. The

Munjals roll their own steel, make freewheels and other critical bicycle components and

have diversified into different ventures like product design. The Hero Group philosophy

is: “To provide excellent transportation to the common man at easily affordable prices

and to provide total satisfaction in all its spheres of activity”.

In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of

Hero Honda Motors (HHM), headed an alliance between the Munjal family and Honda

Motor Company Ltd. (HMC). This alliance became one of the most successful joint

ventures in India, until the year 1999 when HMC had announced a 100% subsidiary,

18

Page 19: Research Report on Hr Practices 122222222222222222222222

Honda Motorcycle & Scooter India (HMSI). This announcement caused the HHM stock

price to decrease by 30 percent that same day. Munjal had to come up with some new

strategic decisions as HMSI and other foreign new entry companies were causing

increased intensity of rivalry for HHML.

GROWTH

Hero Honda experienced great growth throughout its early days. The Munjal family

started a modest business of bicycle components. By 2002 Hero Group had sold 86

million bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly

line of nine different models of motorcycles available. It holds the record for most

popular bike in the world by sales for Its Splendor model. Hero Honda Motors Limited

was established in joint venture with Honda Motors of Japan in 1984, to manufacture

motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3

million bikes in the year 2005-2006. Recently it has also entered in scooter

manufacturing, with its model PLEASURE mainly aimed at girls. HUNK is the latest

offering from the HHML stable

Just-in-Time Manufacturing

The Hero Group through the Hero Cycles Division was the first to introduce the concept

of just-in-time manufacturing. The Group boasts of superb operational efficiencies. Every

assembly line worker operates two machines simultaneously to save time and improve

productivity. The fact that most of the machines are either developed or fabricated in-

house, has resulted in low inventory levels.

19

Page 20: Research Report on Hr Practices 122222222222222222222222

Labor relations

In Hero Group there is no organized labor union and family members of employees find

ready employment within Hero. The philosophy with regard to labor management is

"Hero is growing, grow with Hero." Hero workers receive a uniform allowance, as well

as House Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits

include medical checkups not just for workers, but also for the immediate family

members. For the majority of the production workers, who are hired through contractors,

these benefits are out of reach. This and other problems lead to a strike and factory

occupation by 4,000 temp workers in the Gurgaon plant in spring 2006.

HERO HONDA'S MISSION

Hero Honda’s mission is to strive for synergy between technology, systems and human

resources, to produce products and services that meet the quality, performance and price

aspirations of its customers. At the same time maintain the highest standards of ethics and

social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the

organization forge a unique and mutually beneficial relationship with all its stake holders.

HERO HONDA'S MANDATE

Hero Honda is a world leader because of its excellent manpower, proven management,

extensive dealer network, efficient supply chain and world-class products with cutting

edge technology from Honda Motor Company, Japan. The teamwork and commitment

are manifested in the highest level of customer satisfaction, and this goes a long way

towards reinforcing its leadership status.

20

Page 21: Research Report on Hr Practices 122222222222222222222222

Human Resources Best Practice

Hero Honda seeks to promote the development, implementation and sharing of good

practice to improve service delivery to users. It supports members in planning for future

service needs by identifying trends and issues for information services such as

personalization, collaboration, space, management and skills.

Any organization’s success will depend largely on whether its employees perform well. It

is recognized that library and information services exist, in the main, as part of a larger

organization that will have its own human resource management policies and practices.

Hero Honda members have responsibility to work with human resource practitioners to

understand and shape policies and practices, and adapt specific human resource

management interventions to suit the organizational culture.

Strategies to improve the performance of the organization 1. Business Strategy

2. Learning and development strategy

3. People management strategy

4. Leadership and management strategy

Action to improve the performance of an organization 5. Management effectiveness

6. Recognition and reward

7. Involvement and empowerment

8. Learning and development

Evaluation of the impact on the performance of the organization 9. Performance measurement

10. Continuous improvement

21

Page 22: Research Report on Hr Practices 122222222222222222222222

Recruitment practices that result in the selection of excellent staff • Accurate advertisements, job/role descriptions and person specifications and context

information

• Appropriate selection tools and mechanisms

• Timely hiring

• Well planned induction

Viable and attractive benefits and compensation packages • Equitability of treatment/Relativities between individuals and work groups

• Appropriate for the market

Employee performance management • Individual staff objectives linked to business plans

• Regular feedback as well as formal appraisal

• Up-to-date job descriptions/roles

• Staff development and training that meets workplace requirements and individual

needs; based on competencies required and developmental needs

• Skills audit/inventory

Workforce continuity and Succession planning • Monitoring of absence and resignation data

• Monitoring age profiles

• Appropriate maternity and paternity leave provisions

• Identification of single person/critical dependencies

• Knowledge sharing systems

Mentoring

Shadowing

Job rotation

Job exchanges

Documentation/expert systems

Exit interviews and management of knowledge handover

22

Page 23: Research Report on Hr Practices 122222222222222222222222

Conformance with legal obligations • Discrimination

• Diversity

• Privacy

• Health and Safety

• Freedom of Information

• Equal Opportunity

Positive workplace culture • Value defined and driven work environment

• Change orientated, flexible culture

• Effective communication

• Plans, policies, guidelines available to all staff

• Positive encouragement/support for Innovation and continuous quality improvement

• Recognition and reward systems

• Engagement with work groups and union representatives

• Management of major change procedures

• Monitoring staff satisfaction

23

Page 24: Research Report on Hr Practices 122222222222222222222222

24

Page 25: Research Report on Hr Practices 122222222222222222222222

The literature review regarding various HR practices like human resource planning, job

analysis, recruitment, selection, placement, socialization, training and development,

performance appraisal, compensation and benefits, career management, and other

contemporary HR practices (work-life balance, attitude surveys, workforce diversity, and

human resource information system) is presented in the following paragraphs. Job

analysis is the process of obtaining information about jobs i.e. information about the tasks

to be done on the job, as well as personal characteristics (education, experience,

specialized training) necessary to do the tasks. Job analysis in many ways is the first

personnel activity that affects commitment and performance. The process of analyzing

and identifying the need for and availability of human resources for organization to meet

its objectives is human resource planning. It ensures that human resource requirements of

an organization are identified and plans are made for satisfying those requirements.

Recruitment is a form of business competition. It demands serious attention from

management because any business strategy will falter without the talent to execute it

(Cascio, 2006). It is a process of attracting a pool of high quality applicants so as to select

the best out of them. Recruitment and selection occupy attention of employers since these

activities involve: (a) addition of manpower and hence (b) additional cost (Prasad, 2005).

Top performing companies devote considerable resources and energy to creating high-

quality selection systems. The step immediately succeeding the selection is ‘placement’.

Placement refers to the actual procedure wherein an individual is assigned with a job. It

also involves assigning a specific rank and responsibility to an employee. Decision is

taken after matching the requirements of a job with the qualifications of a candidate

(Jyothi and Venkatesh, 2006). Socialization is the process of orienting new employees to

the organization or the unit in which they will be working. Socialization can make the

difference between a new worker’s feeling like an outsider and feeling like the member

of the team. A good orientation program can improve productivity and reduce turnover.

Companies must develop customer-oriented workforce to deliver service quality. After

hiring the right people with the right attitude, companies must train them for the purpose.

Service quality is being perceived as a tool to increase value for customer and as a means

of positioning in a competitive environment. For providing quality service, employees

need ongoing training in the necessary technical skills and knowledge, and interactive

25

Page 26: Research Report on Hr Practices 122222222222222222222222

skills. Training might take a variety of forms in organizations but all must view it as an

important investment for future success (Zeithmal and Bitner, 2004). The strategized

training provided to employees is a wise investment of organizational resources.

Companies need to provide comprehensive training to the agents in the ways to narrow

the gap between clients and agents i.e. trust building training. Unlike product knowledge

that can be comprehensively taught in lessons, trust-building training is an art and should

be learnt through on-the-job training. Performance is defined as the record of outcomes

produced on a specified job function or activity during a specified time period. However,

appraisals are done once a year and are based on stereotype, perceptual, and subjective

judgments of supervisors which make people believe performance appraisal process is

unsuccessful. Therefore, effective managers need to incorporate performance review and

feedback as part of their day-to-day communications with employees, not just a once-a-

year assessment. Employee performance appraisal has been practiced by numerous

organizations since centuries. Though performance appraisal system has been debated by

many, however, overall, it is viewed that performance appraisal is an inseparable part of

organizational life (Islam and Rasad, 2006). Performance management as a complex

problem and it involves various kinds of judgments about which performance measure to

use. Compensation is all forms of financial returns and tangible services and benefits

employees receive as part of an employment relationship. An effective set of choices

about compensation systems plays a major role in determining firm performance. A

fringe benefit is an indirect reward given to an employee or group of employees as a part

of organizational membership which affect performance and retention of employees. On

account of their enormous costs and the financial commitment which is made for the

future, benefits planning has become a critical component of HR planning processes. The

application of skill or competence leads to performance and performance is the criterion

for evaluating effectiveness. Therefore, a pay-for competence program enhances

productivity and product quality, reduces absenteeism, turnover, and accident rates

(Jyothi and Venkatesh, 2006).

A Human Resource Information Systems (HRIS) is basically a data base system that

offers important information about employees in a central and accessible location that,

26

Page 27: Research Report on Hr Practices 122222222222222222222222

when needed, could be retrieved and used to facilitate human resources planning

decisions. HRIS is an integrated system designed for providing information used in HR

decision making (Mathis and Jackson, 2004). HRIS information could be used, first, for

administrative purposes which reduce costs and time and, second, for the more analytical

decision support. A career is a sequence of positions held by a person during the course

of a lifetime. It comprises of series of work related activities that provide continuity,

order, and meaning to a person’s life. Career planning is a deliberate attempt by an

individual to become more aware of his or her, own skills, interests, values, opportunities,

constraints, choice, and consequence. It involves identifying career-related goals and

establishing plans for achieving those goals. Career management includes both

organizational actions and individual efforts aimed at setting career goals, formulating

and implementing strategies and monitoring the results. Diverse workforce (diversity)

refers to the co-existence of people from various socio-cultural backgrounds within the

company. Diversity includes cultural factors such as race, gender, age, colour, physical

ability, ethnicity, etc... Dynamic companies look for people who are different from us

because the diverse workforce may bring different talents, interests, and viewpoints. The

basic concept of managing diversity accepts that the workforce consists of a diverse

population of people. The companies can succeed at diversity if the initiative to create

and manage the diverse workforce has the full support from the top management.

Work-life balance is a state where an individual manages real or potential conflict

between different demands on his/her time and energy in a way that satisfies his/her

needs for well being and self-fulfillment. Work-life balance policies define how the

organization intends to allow employees greater flexibility in their working patterns so

that they can balance what they do at work with responsibilities and interests they have

outside work. Attitude surveys are valuable ways of involving employees by seeking

their views on matters that concern them. Attitude surveys can provide information on the

preferences of employees, give warning on potential problem areas, diagnose the cause of

particular problems, and compare levels of job satisfaction, commitment and morale in

different parts of the organization.

27

Page 28: Research Report on Hr Practices 122222222222222222222222

WHY HR IS NOW BECOMING INCREASINGLY IMPORTANT?

Organizations in India have changed significant aspects of their employment policies

during the 1990s. The role of trade unions has declined, bargaining about employment

conditions and wages has shifted to the enterprise level and increasing numbers of

organizations are introducing techniques to communicate directly with their employees.

There has been a growth in pay for performance schemes, flexible employment practices,

training, performance appraisals and broader job structures. These developments imply

an emphasis on improving employee performance while at the same time increasing the

flexibility of labor.

Recent literature in the late 1990s places strong emphasis on the need for high-

involvement work practices, greater employee participation in decision-making and

control over how the work is performed and increased flexibility and actualization of the

workforce.

In contrast to its traditional emphasis on personnel administration, HR’s future role will

be supporting a company’s competitive advantage by providing high quality people and

by helping business managers to strategically plan the functions of those people within

the organization. HR must shift from being an administrative support function to

becoming a business partner in charting business strategy. This requires transforming the

HR function into a strategic business partner that will positively affect a company’s

earnings in a climate which will become more fiercely competitive for intellectual capital

required for corporate sustainability.

MAJOR CHALLENGES FACING INDIAN ORGANIZATIONS

Organizations now need to concentrate more on highly value-added products and

services produced by a skilled and motivated workforce. This requires that Indian

organizations need to take a more "strategic" approach to HR that will enable them to

cope with the challenges resulting from rapid changes in technology and globalization.

28

Page 29: Research Report on Hr Practices 122222222222222222222222

HR PRACTICES WHICH ARE CRITICAL TO ECONOMIC

SUSTAINABILITY

Employment security assumes flexibility and means that employees are not quickly laid-

off for reasons such as economic downturns or the strategic mistakes of senior

management, over which employees have no control. The policy focuses on maintaining

total employment and not on protecting individuals from the consequences of their

individual behavior or incompetence on the job, Selective hiring of new personnel.

Firms need to build long-term commitment to retaining their work force. This can be

achieved through more rigorous recruitment and selection and greater investment by

firms in training and developing their work force. Many organizations need to change

their philosophy to regarding people as assets rather than costs. Employment security

policies need to reflect more careful staff selection and leaner hiring. Leaner staffing can

result in a more productive work force with fewer people doing the work, increased

flexibility and employees working closer to the customer. People are often happy to be

more productive if they know they have a secure long-term job with a career. More

importantly, firms need to take a long-term strategic view to HR resources rather than a

short-term operational cost-cutting approach.

Self-managed teams and decentralization of decision-making

There is considerable literature providing case studies and empirical evidence that

workers in self-managed teams enjoy greater autonomy, flexibility and discretion.

Employees have more opportunity to use their wider skills. This translates into intrinsic

rewards and job satisfaction resulting in teams out-performing traditionally supervised

work groups (Pfeffer, 1999).

High compensation contingent on organizational performance

The level of salaries sends a clear message to the firm’s work force if they are regarded

as truly valued and valuable to the organization. Compensation can take many forms such

29

Page 30: Research Report on Hr Practices 122222222222222222222222

as pay increases, share ownership, stock options, profit sharing, paying for skills

acquisition and individual or team incentives. If compensation takes the form of

promotion, it should be based on skills and competencies and not on the position which

the employee or manager occupies in the hierarchy.

When employees are owners, they are more inclined to act and think like owners.

Ownership schemes without training, information sharing, and the delegation of

responsibility will have little effect on performance because even if people are more

motivated by their share ownership, they don’t have the skills, information, or power to

do anything with that motivation. Paying for skill acquisition encourages people to learn

different jobs and thereby become more flexible. In principle, any compensation system

should be aligned with organizational strategy.

Extensive training and development

Training is an essential component of high-performance work systems because these

systems rely on front-line employee skill and initiative to identify and resolve problems,

to initiate changes in work methods, and to take responsibility for quality. This requires a

motivated work force that has the knowledge and capability to perform the core tasks.

The fundamental principle of high-performance management systems is that

organizations perform at a higher level when they are able to tap the ideas, skill and effort

of all of their people. But neither individuals nor teams will be encouraged to contribute

their minds and physical energy to the organization unless people receive signals that

they are both valued and valuable.

In order to help make all organizational members feel important and committed to

enhancing organizational operations, therefore, most high-commitment management

systems attempt to reduce status distinctions that separate individuals and groups and

cause some to feel less valued. This can be accomplished through the use of language and

labels, physical space, and dress, and secondly by reducing the organization’s degree of

wage inequality, particularly across levels.

30

Page 31: Research Report on Hr Practices 122222222222222222222222

Trust between management and employees at all organizational levels. The first

prerequisite of teamwork is trust. The delegation of operating authority and the sharing of

sensitive performance and strategic information requires trust. It is important that if the

work force is to provide quality service to its customers, then they must be given the

opportunity to use their ideas, initiative and knowledge. This involves decentralizing

decision-making and permitting people at all levels to exercise substantial influence over

organizational decisions and processes. All this requires trust that is markedly different

from hierarchical organizations where the emphasis is on control. Trust develops as part

of the process, as it will rarely be there from the start e.g. the Olympic Games.

Faced with the challenge of upgrading employee skills, talents, and leadership

capabilities enterprise-wide, companies are using modern technology to support broadly

expanded recruitment and training processes. The processes now cover all or most

employees, positions in all functions and wherever the company does business, and an

escalating array of developmental activities – all defined by the human resources

competencies that the company needs today and in the years ahead (Nardoni, 1997).

IMPLEMENTING HR PRACTICES AND POLICIES

When implementing HR practices and policies, managers should note that HR practices:

Cannot be "copied" from one organization to another. A set of complementary HR

practices that have produced increases in productivity, improved quality of service and

given a firm a competitive advantage, will not necessarily produce the same, or even

similar results in an organization, or part of an organization, operating in the same

industry. Are more effective, and can produce a synergistic effect, if they are

complementary to each other. For example, self-managed teams being introduced at the

same time as team-based or group compensation incentives contingent on organizational

performance. Must be congruent to the long-term strategic objectives and mission

statement of the organization if they are to yield returns through increased productivity

and ultimately improved customer service. If this congruency is absent, then

31

Page 32: Research Report on Hr Practices 122222222222222222222222

organizational dysfunctions will result and the attempt to introduce progressive HR

practices will rapidly lose credibility among the firm’s employees.

KEY FINDINGS AND LESSONS LEARNED

The literature refers to some key findings from research and lessons learned. These

include the most striking increases in high-involvement work practices are in the use of

on-line work teams and off-line problem-solving groups (e.g. Employee Involvement

groups, quality circles). Higher levels of managerial tenure had a positive and statistically

significant association with greater increases in the use of high-involvement work

practices.

The introduction of high-involvement work practices requires significant cooperation,

trust, and coordination among different functional groups in each plant, which will be

more likely to be present if the managers of those groups have greater experience of

working together.

The adoption of high-involvement work practices tends to follow the adoption of

complementary HR practices. This supports the idea that HR practices may be less

difficult to adopt, given that they have less impact on how core tasks are organized.

However once adopted, HR practices provide a strong incentive for firms to push further

in the direction of high-involvement work practices.

High-involvement work practices may represent "competence-destroying" change, which

is difficult to implement, and may lead to worsened performance in the short-term.

Plants that undergo a major disruption in their operations – creating opportunity for

various organizational changes - were more likely to adopt high-involvement work

practices.

Manufacturing technology is necessary but insufficient, without work force commitment

to performance. Any competitive advantage will not be sustained without a skilled,

motivated, and committed management team and work force.

32

Page 33: Research Report on Hr Practices 122222222222222222222222

Organizations must enhance work force ability to improve productivity. Technology

without a talented work force is an opportunity that has not been utilized enough.

Without a focused effort to enhance the talents of a changing work force using rapidly

advancing technologies, long-term performance will suffer.

Organizations must enhance work force motivation to improve productivity. Workers

must be encouraged and motivated to develop a customer satisfaction mind set.

Organizations need to empower their workers by allowing them greater autonomy and

control and to design jobs that are more stimulating. Incentive systems can be used to

enhance motivation. Organizations must take a multi-faceted and proactive approach to

increasing work force motivation.

Organizations must enhance work force support to improve productivity. Technology

without effective support produces work force frustration, alienation and withdrawal.

Without technology, ability, motivation and support, any organization is destined to fail.

If managers are not perceived to be credible and supportive of their employees, any

attempt to implement high-involvement HR practices will be regarded with cynicism that

could lead to frustration and even a loss in productivity.

IMPLICATIONS FOR MANAGERS

Until recently, the employment policies implemented in India throughout the 1990s were

mainly geared to the economic requirements of the organization, rather to designing an

organization "fit" for individuals. Employees continue to struggle with the experience of

ongoing change associated with the introduction of flexible working arrangements and

enterprise agreements in a climate of rapid technological change and globalization

There is sound evidence indicating that managers or politicians attempting to implement

changes in HR practices will experience less resistance to change if they secure the

participation of employees and unions. Unions committed to improved performance can

play a vital role in implementing change and can facilitate the change process if they are

actively involved in the proposed changes to HR practices.

33

Page 34: Research Report on Hr Practices 122222222222222222222222

34

Page 35: Research Report on Hr Practices 122222222222222222222222

OBJECTIVE OF THE STUDY

The main objective of the study was to assess the impact of human resource management

practices on employee productivity and on organization performance. To achieve the main

objective the following sub-objectives were set:

• To study how HR practices can improve company performance.

• To study the relationship between employees attitude and organization performance.

• To analyze how HR practices make a difference in performance and which of the

practices appear most important.

35

Page 36: Research Report on Hr Practices 122222222222222222222222

36

Page 37: Research Report on Hr Practices 122222222222222222222222

For our research study we have collected data by the survey in hero Honda motor ltd. The overall strategy of the survey was to derive the data from the questionnaire filled by the employees to analyze the impact of hr practices on their productivity and also on organization performance.

Research design :

Our research is based on Exploratory study

Universe of the study:

Universe for our research study are the employees associated with Hero Honda

Sample:

Employees associated with Hero Honda Motors at Gurgaon were taken as a sample for our

research.

Sample size: -

100 respondents were taken (employees of Hero Honda Motors ltd).

Sampling method:

The sampling method adopted for our study is Random sampling for the selection of employees

and convenience sampling for selection of area of study.

Hypothesis:

Ho: The implementation of HR practices is positively related to organizational productivity

H1: The implementation of HR practices is not positively related to organizational productivity.

37

Page 38: Research Report on Hr Practices 122222222222222222222222

APPROACH TO THE STUDY-

Basically we are adopting the questionnaire method for our research project which is more

efficient and practical method. We have to select some questions make a questionnaire on the

basis of our research report requirement; so that, we can have the better and reliable data and

information for our research project.

DATA COLLECTION METHODS-

The collected was of 2 types-

(1) Primary Data (2) Secondary Data

Different methods were used to collect both primary and secondary data.

1. Primary Data Collection-

The method for this category was:-

a) Questionnaire

2. Secondary Data Collection- methods used were -

a) Collection of information through internet.

b) Study of recent publication of HRD Journal.

c) Reading of H.R. and Administration Manual.

38

Page 39: Research Report on Hr Practices 122222222222222222222222

39

Page 40: Research Report on Hr Practices 122222222222222222222222

IMPORTANCE OF STUDY

This study is conducted to answer the following question:

What are the various HR practices implemented in the organization?

How it influences working condition and influence organization performance?

Which of the factors most influence company performance?

How companies raise their performance by implementing HR practices?

At what level the employees are satisfied with their work?

What is the level of satisfaction of employees regarding performance appraisal system?

Is the organization providing sufficient training to their employees?

40

Page 41: Research Report on Hr Practices 122222222222222222222222

41

Page 42: Research Report on Hr Practices 122222222222222222222222

Q1.Are HR practices an important tool for organization profitability and productivity?

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Are HR

practices an

important tool

for organization

profitability and

productivity?

70 20 10

Interpretation: 70% of the respondents are completely agreed with the statement that HR

practices are an important tool for organization profitability and productivity and remaining 20%

are agreed while 10% are moderately agreed.

42

Page 43: Research Report on Hr Practices 122222222222222222222222

Q2. Does HR play an important role in formulating the business plan in your organization?

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Do HR plays an

important role

In formulating

the business

plan in your

organization?

90 10

Interpretation: HR plays an important role in formulating the business plan says 70% of the

respondents and 10% of them are moderately agreed.

43

Page 44: Research Report on Hr Practices 122222222222222222222222

Q3. Do Business Plans and policies are communicated to employees at all levels?

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Do Business

Plans and

policies are

communicated

to employees at

all levels?

50 30 15 5

Interpretation: 50% of the employees are completely agreed, 30% of them are agreed,15%

are moderately agreed while 5% are disagreed with the statement that business plans and

policies are communicated to employees at all levels.

44

Page 45: Research Report on Hr Practices 122222222222222222222222

Q4. Is Employee Satisfaction Surveys / Work climate study is conducted periodically?

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Is employee

satisfaction

surveys/work

climate is

conducted

periodically?

30 50 20

Interpretation: In hero Honda 30% of the respondents are completely agreed and 70% are

agreed that employee satisfaction survey is conducted periodically.

45

Page 46: Research Report on Hr Practices 122222222222222222222222

Q5. Does Formal system for redressing employee grievances exist?

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Does

Formal

system for

redressing

employee

grievances

exist?

40 42 18

Interpretation: 82% of the respondents are agreed with the statement that formal system for

redressing employee grievance exist in the organization while 18% are disagreed.

46

Page 47: Research Report on Hr Practices 122222222222222222222222

Q6. Do induction training is conducted for all of you?

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Do

induction

training is

conducted

for all your

employees?

60 30 10

Interpretation: 90% of the respondents say that induction training is conducted for all the

employees in the organization while 10% are disagreed with this.

47

Page 48: Research Report on Hr Practices 122222222222222222222222

Q7.Product knowledge, specific skills training is the areas of training in the induction training

program?

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Product

knowledge,

specific skills

training is the

areas of

training in the

induction

training

program?

60 35 5

Interpretation: 95% of the respondents are agreed that in the induction training program

product knowledge and specific skills regarding the job is given while 5% are not agreed.

48

Page 49: Research Report on Hr Practices 122222222222222222222222

Q8. Are you aware of your career path?

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Are you aware

of your career

path?

50 30 15 5

Interpretation: 95% of the employees are aware of their career path while 5% of them are

not aware.

49

Page 50: Research Report on Hr Practices 122222222222222222222222

Q9.Is feedback and mentoring are used for career planning?

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Is feedback and

mentoring are

used for career

planning?

70 20 5 5

Interpretation: 95% of the respondents are agreed that feedback and mentoring are the tools

used for career planning of the employees in the organization while 5% are not agreed with this

response.

50

Page 51: Research Report on Hr Practices 122222222222222222222222

Q10. Is Performance Management System is linked to your compensation and rewards?

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Is

performance

management

system is

linked to your

compensation

and reward?

70 10 10 10

Interpretation: 90% of the respondents say that their compensation and reward are based on

performance appraisal system while 10% are not satisfied.

Q11.Do you have the opportunity to be promoted to positions of greater pay and/or responsibility

within the company?

51

Page 52: Research Report on Hr Practices 122222222222222222222222

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Do you have

opportunity to be

promoted to

positions of

greater pay and

responsibilities

within the

company?

50 40 10

Interpretation: 50% of the respondents are completely agreed and 50% are agreed that the

organization provide them opportunity to be promoted to the position of greater pay and

responsibility.

Q12. Is the job performance is the criteria for the increment in your pay?

52

Page 53: Research Report on Hr Practices 122222222222222222222222

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

Is the job

performance is

the criteria for

the increment in

your pay?

80 10 10

Interpretation: 100% of the respondents are agreed with the statement that job performance

is the major criteria for increment in the pay.

53

Page 54: Research Report on Hr Practices 122222222222222222222222

HYPOTHESIS:

Organizations can adopt various HRM practices to develop employee skills. The effectiveness of skilled employees and therefore firm performance will be limited if they are not motivated to perform their jobs. When addressing the impact of HRM practices on firm performance it is important to observe that HRM has evolved from two distinct conceptions of the link between employee motivation and firm-level outcomes. There are two distinct approaches to shaping employee attitudes, the “control” and “commitment” approaches which are refer to as the calculative and collaborative respectively. The former seeks to improve efficiency by enforcing employee compliance by rewarding on some measurable criteria. In contrast the latter shapes attitudes by forging psychological links between organizational and employee goals Firm performance is dependent on having in place systems for the regular assessment of individual employee. Coupled to and reinforcing these systems are performance rewards and performance-related training. Significantly employee behavior influence organization performanceEmployee influence is contingent on there being processes of mutual influence between management and employees that enables management to comprehend employee interests. Without such processes employee intrinsic motivation is undermined thereby giving rise to employee resentment and distrust which results in unwillingness to take responsibility for the performance of the firm. Rather than one single system of employee involvement techniques, such as employee briefings and work system design, be used.

On the basis of the above we propose the following two hypotheses:

Ho: The implementation of HR practices is positively related to organizational productivity

H1: The implementation of HR practices is not positively related to organizational productivity

Result of data analysis:

Majority of employees are satisfied with the HR practices implemented by the organization.

They are motivated to do their work effectively to increase the production and outcome of the

organization.

Acceptance of null hypothesis

From the data analysis it is concluded that maximum number of employees are satisfying the null

hypothesis i.e. “The implementation of HR practices is positively related to organizational

productivity.” So our null hypothesis is accepted.

54

Page 55: Research Report on Hr Practices 122222222222222222222222

FINDINGS

These are the findings based upon the replies of the respondents for the HR practices that are

being implemented in the company:

HR practices are an important tool for organization profitability and productivity as

Employee outcomes deal with the consequences of the practices such as their attitudes and

behavior, particularly behaviors such as absenteeism and turnover.(70% of the respondents

are completely agreed with this statement )

HR plays an important role in formulating the business plan in organization (90% of the

employees are completely agreed )

Business Plans and policies are communicated to employees at all levels so that the

employees can understand the organization’s competitive position and participate in the

processes to improve it. (50% of the employees completely agreed with this statement )

To creates a positive work environment and make people feel that they are respected and

listened to, Employee Satisfaction Surveys / Work climate study is conducted Periodically.

(50% of the respondents are agreed)

Formal system for redressing employee grievances exist in the organization.(42% of the

employees are agreed)

Induction training is conducted for all of the employees whenever needed.(60% of them are

completely agreed )

Induction training focuses on giving Product knowledge, and specific skills to the employees

(60% of the respondents are completely agreed )

The employees are aware of their career path( 50% of the replies are completely agreed )

55

Page 56: Research Report on Hr Practices 122222222222222222222222

The tools used for career planning are feedback and mentoring.(70% of the respondents are

completely agreed to the statement)

The Performance Management System is linked to the employees compensation and rewards

(70% are completely agreed)

The employees have the opportunity to be promoted to positions of greater pay and/or

responsibility within the company(50% of the employees are completely agreed with this

statement and 50% are agreed )

The job performance is the criteria for the increment in the pay of the employees.(80% of

the respondents are completely agreed and 20% of them are agreed )

56

Page 57: Research Report on Hr Practices 122222222222222222222222

CONCLUSION

HR practices can improve organizations performance by:

o increasing employee skills and abilities

o promoting positive attitudes and increasing motivation

o Providing employees with expanded responsibilities so that they can make full use of

their skills and abilities.

HR practices are an important tool for organization profitability and productivity as the

initial impact of the HR practices on employees’ commitment to the organization begins

with selection and staffing. When firms invest in selecting the most highly skilled people,

and providing them with increased skills through continuous training and development

opportunities, employees find a workplace filled with well-qualified co-workers. This makes

for a positive work environment by enabling them to focus on successfully serving the

customers and doing their job well and this ultimately result in the company’s profitability.

HR plays an important role in formulating the business plan in organization as the

Organizational outcomes focus on more operational measures of performance such as

productivity, quality, and shrinkage, many or all of which would be precursors to

profitability.

Having open communications and participatory systems enables employees to both

understand the organization’s competitive position, and to participate in processes to help

improve it. This creates a positive work environment where people feel they are respected

and listened to. So the company communicates business Plans and policies to the employees

at all levels.

Using valid performance management systems and monetary incentives to elicit high

performance, employees can see a more direct line of sight between their behavior and their

personal outcomes. This creates a positive work environment where individuals feel fairly

and equitably rewarded for their efforts.

57

Page 58: Research Report on Hr Practices 122222222222222222222222

workers compensation claims, productivity, quality, and shrinkage all directly impact the

costs of an organization, by influencing these variables employee commitment impact

operating expenses. Profitability is largely determined as the difference between revenues

and expenses, leading to the conclusion that if commitment impacts operating performance

which in turn impacts expenses, then it subsequently relates to profitability.

58

Page 59: Research Report on Hr Practices 122222222222222222222222

59

Page 60: Research Report on Hr Practices 122222222222222222222222

SUGGESTIONS AND RECOMMENDATION

1. Senior managers of the company should regularly review objectives, strategies and processes

associated with human resource management practices in their organizations and make changes

or introduce innovations accordingly.

2. Senior managers should monitor the satisfaction and commitment of employees on a regular

basis using standardized surveys.

3. Senior managers need to monitor employee perceptions of the culture of their organizations,

examining areas which contribute towards a people-orientated culture (e.g. the extent, to which

employees are enabled, supported and equipped to do their work).

4. HR practices should be reviewed across the organization in the following areas:

• Recruitment and selection

• Performance Appraisal

• Training

• Reward systems

• Design of jobs (responsibility and control)

• Communication.

6. Company should provide adequate training and support to the employees and also check

whether employees are able to acquire the given skills.

7. The central element of each organization’s philosophy and mission should be a commitment to

the skill development, well-being and effectiveness of all employees.

8. HR practitioners must take a leadership role in identifying the people issues and opportunities

that the organization face and the specific initiatives that will support the business strategy.

60

Page 61: Research Report on Hr Practices 122222222222222222222222

LIMITATION

Though the data collected is proper but still there were certain limitations which were hindrance

in making the data more appropriate. The limitations were:-

1) Employees were engaged with their shutdown jobs and thus were not very readily

available. This would have hampered the flow of input in someway.

2) As the questionnaire method was followed, people were not very comfortable in releasing

the information.

3) Many a time, employees were very reluctant in releasing the information, considering it

to be confidential. Thus, it was a hindrance in study.

61

Page 62: Research Report on Hr Practices 122222222222222222222222

62

Page 63: Research Report on Hr Practices 122222222222222222222222

Completely

Agreed

Mostly

Agreed

Moderately

Agreed

Mostly

Disagreed

Completely

Disagreed

1. Are HR

practices an

important tool

for

organization

profitability

and

productivity?

2.Does HR

play an

important

role in

formulating

the business

plan in your

Organization?

3.Do Business

Plans and

policies are

communicated

To employees

at all levels?

4.Is Employee

Satisfaction

63

Page 64: Research Report on Hr Practices 122222222222222222222222

Surveys/Work

climate study

is conducted

Periodically?

5. Do Formal

system for

redressing

employee

Grievance

does exist?

6. Do

induction

training is

conducted for

all of you?

7. Product

knowledge,

specific skills

training is the

areas of

training in the

induction

training

program?

8.Are you

Aware of

your career

path?

64

Page 65: Research Report on Hr Practices 122222222222222222222222

9. Is feedback

and mentoring

are used for

career

planning?

10.Is

Performance

Management

System is

linked to your

Compensation

and rewards?

11. Do you

have the

opportunity

to be

promoted to

positions of

greater pay

and/or

responsibility

within the

Company.

12. Is the job

performance

is the criteria

for the

increment in

65

Page 66: Research Report on Hr Practices 122222222222222222222222

your pay?

Name of respondent: ……………………………

Designation: ……………………………..

66

Page 67: Research Report on Hr Practices 122222222222222222222222

BIBILIOGRAPHY

Armstrong, M.A. (2005). Handbook of Human Resource Management Practice, New

Delhi: Kogan Page India.

Atkinson, J. (1984). Manpower strategies for flexible organizations. Personnel

Management, 16

AIMA study. (1998). World Class Management-Benchmark for the Millenium. Business

Today. Feb22.

AIMA study. (2000). Benchmarking HR- Best of the Best. Human Capital. June.

Anderson, G. (2000). Performance Appraisal. Human Resource Manual. London.

Blackwell Press.

Kapoor, BM. (2001). HRD should be part of Business Strategy. Indian Management.

Bowen, D.E. and Ostroff, C. (2004). Understanding HRM-firm performance linkages: the

Role of the “strength” of the HRM-system. Academy of Management Review.

Delaney, J.T. and Huselid, M.A. (1995). The impact of human resource management

practices on perceptions of organizational performance. Academy of Management Journal,

www.google.com

www.wikipedia.com

www. herohonda .com/products.htm

auto.indiamart.com/hero-honda

67