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Emerging trend in dynamic HR Practice : Style followed by popular equipment manufacturer multinationals
Jagannath Ghosh
BE (Mech Engg), MBA (Marketing & HR), M.Phil (Management), Ph.D Faculty, Bengal Institute of Science and Technology (under Sidho Kanho Birsa Univ)
Guest Faculty, Acharya Prafulla Chandra College (under West Bengal State University)
Abstract: Modern H R Management motivates, develops and manages people effectively through recruitment, promotion, compensation, training, appraisal etc in flexible and caring style for their best performance and support.
Ideal HR policy should be a formal statement of HR principles on employment that organization’s members must follow as guidelines to achieve departmental objectives and enhance productivity. This exploratory research argues about role of effective HR practices in contemporary company’s prosperity. The descriptive paper elucidates the formulation and implementation of fruitful HR guidelines of two leading durable equipment manufacturer MNC brands named Voltas (World’s premier AC, Refrigerator, Textile & Construction equipment, Water cooler) and Schindler (World’s top Elevators, Escalators &
Engg service) for benchmarks themselves. The paper produces Schindler’s values, leadership principles, Employee Safety and health policy, people development, employee motivation, Work/life balance, remuneration, industrial relations, human resources, function, ownership implementation. Again the paper focuses on Voltas company’s commitment on merit based employment, employee respect, work atmosphere, company principles on communication, support decisions, ethics, integrity, company compliance, employees’ multiple growth paths, career opportunity, culture of freedom etc. Thus the study acts a motivating means of present industrialists and academicians to rethink the role of proper HR principles for fostering success and to redesign their HR Process.
Keywords : Employee, Growth, Implementation, HR Policy, HR Practice,
INTRODUCTION
Former chairman and CEO of Honeywell, Lawrence Bossidy says, “I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not on strategies.”
Human resource management is a tool nurtured by companies that is practised to get maximum employee contribution for fulfillment of management’s strategic objectives. Human Resource is basically related to handling people in a concern, concentrating on organizational personnel policies and legal framework of labour management. Contemporary manager’s most urgent work is to get things effectively through people.
He should organize the whole system by balancing between his concern for peoples’ satisfaction and organization’s objective fulfillment. Work force are heterogeneous in term of background, value, attitude, need, competence etc. So an HR manager’s job is to
manage workforce by proper motivation, growing their loyalty and their satisfaction with development. A company can not have effective financial or operational performance unless there is a healthy relation between management and employees. So to put the proper one in proper work is necessary Human Resource section however pursue a range of jobs as recruitment, selection, training and development, compensation, performance appraisal, benefit, promotion, job enrichment, quality of work life, dispute resolution and many more. Human Resource practice additionally ensures industrial relations necessary for tuning corporate policies with demands of employees with a mutually benefiting win- win play ground. Human Resource practice is outcome of the human relations movement during 20th century while efforts were given to produce business value by strategic handling of personnel. It secures best from people by winning their cooperation. HR practice is individual oriented as well as people oriented where as development oriented and action oriented. It is pervasive in nature and has integrating mechanism. Hence American human resource consulting firm Robert Half comments, “Time spent on hiring is time well spent.”
LITERATURE REVIEW
Evidences show corporate cases for strategic HR management and alteration in business platform as per la Andrew Carnegie and John Rockefeller. Lla Sidney, Franklin D. Roosevelt and Beatrice Webb argued that efficient public policy had modified relation of recruiter- recruitee. Chartered Institute of Personnel and Development has been established in 1913 in England and latter has been renamed as Institute of Industrial Welfare Workers after about 10 year and consecutively renamed as Institute of Labour Management after 1930s.
First workplace studies institution in US as School of Industrial and Labor Relations has been set up at Cornell University in 1945. The biggest HR association named as Society for Human Resource Management has been established in 1948. After 1950, workforce management was growing its persuasion to workplace. Consecutively the terms “Industrial and labor relations” and “Personnel administration” came into discussion in United States.
Many current HR practices can be traced to the needs of companies in the 1950s to develop and retain talent.
During 1970s, improvement in communications assisted human resource mobility and collaboration where
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companies started considering employees as assets and brought the concept of Human resources management.
In 1998, Society for Human Resource Management (SHRM) came into existence.
OBJECTIVE OF THE STUDY
This present research can be treated as a descriptive research as well as a case study. This is an example oriented paper in which one organization is analyzed in- depth in order to identify formulation and implementation qualities that are universally true and represents the proper HR practice of it’s kind. In this research, Voltas and Shindler are taken as benchmark and their working style have been analyzed for better understanding present trend of strategic HR practice.
The study targets academicians and entrepreneurs to encourage for more innovative HR practice benefiting organization and employees both in long term. The industrialists, researchers, policy makers etc can conceptualize the contemporary styles fostered by present company’s HR departments for their idea generation and managerial activity. This research introduces the significance and changing role of proper HR approach. The article consequently introduces two leading MNCs in durables and equipment manufacturers and showcases their unique and fruitful HR mechanism.
In addition, the study proposes how the Indian corporations can grow their competence and win in long run by implementing appropriate HR techniques.
SCOPE OF THE STUDY
The present research is useful for academicians and researchers for conducting further research on Human resource development and Human resource planning.
Also the paper will give documentary support for policy makers in industrial field. Again the study will be helpful for present industrials for nurturing their work force. This would be entrepreneurs would also refer this paper for formulating their HR philosophy and implementing HR practices. The research will be of use for gaining knowledge of the contemporary leading Equipment makers as well as HR field in general. The study will remind the changing role of HR policies and trend of innovative HR mechanism in recent age.
RESEARCH METHODOLOGY
This research is based totally on secondary data. The data is acquired from printed materials as available literatures in form of text books, journals, reports etc and from electronics media as internet. Care is taken to make this study objective oriented. The basic HR related data for case study of Voltas and Shindler is gathered from their corresponding company web sites. The basic aim is to explore the essence of proper human resource practice in the light of effective human resource policy, which makes this an exploratory research. The study also proposes some idea how the contemporary organizations can prosper by emphasizing good HR principles, which makes it a suggestive paper. The cases of Voltas and
Schindler have been illuminated in this regard. This company can be treated as a world wide benchmark for establishing healthy HR philosophies. In this context the paper could be understood as a case study. It could be known as informative research because the article provides some productive information for future academic purpose as well industrial purpose. The paper is textual in nature and a descriptive study as it describes HR practice in present age in benchmark making.
BACKGROUND OF THE STUDY
Democratic Party politician and United States Senator who represented the state of Virginia, William Belser Spong, Jr. says, “There Are Few, If Any, Jobs In Which Ability Alone Is Sufficient. Needed, Also, Are Loyalty, Sincerity, Enthusiasm And Team Play.” Human Resource practice is intended to foster organizational climate and organizational leadership. Effective Human Resource practices also comply with labor laws. Human Resource practice caters as organization’s liaison with the employee where employees are involved with collective bargaining agreement. Also Human Resource puts lobbying activity with governmental agencies through representatives. HR practice helps the company to set goals. It employs competencies of employees most efficiently. Strategic HR approach includes assimilating Re-designing organization processes, Human Resource and business strategy, Employees counseling, Human Resource auditing, Human Capital management, Managing change and so on. This provides company well motivated and trained staffs. HR practice also renders mobility and support function for organization, assisting cost cutting and removing uncertainty. It fosters employee’s job satisfaction and quality of work life. Human Resource mechanism consists of fundamental functions as recruitment-selection, training for employee development, motivation for making employees productive and maintenance of employees' commitment and loyalty. American writer, publisher, artist, and philosopher Elbert Green Hubbard says, “One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man.”
SIGNIFICANCE OF THE STUDY
Swedish organizational theorist, Professor at the University of Lund and consultant Leif Edvinsson says,
“The only vital value an enterprise has the experience, skills, innovativeness and insights of its people.” Proper HR approach caters many benefits. It forms guidelines for managing the concerns. It prepares climate for training and orientation programs. It fosters smooth communication between management and staffs about employment. It makes means for developing the employees’ documentations. It makes base on which changes can take place. It incorporates a sound appraisal system. It creates a backbone for treating all staffs fairly.
HR philosophies should be productive for creating and maintaining good organizational climate. Effective HR policies could assist company to fulfill needs for ethics,
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loyalty and diversity. It focuses on training and overall development and in addition obtains commitment from employees with respect to corporate governance and legality. Setting up good HR mechanism meets standard and obligations while rendering decision making frameworks based on equity of treatment for employees.
Thus American psychologist and creator of Motivator- Hygiene theory Frederick Irving Herzberg says, “True motivation comes from achievement, personal development, job satisfaction and recognition.”
COMPANY OVERVIEW OF CASE STUDY
Voltas, based in Mumbai, is biggest air conditioning company of India and among world’s leading provider of engineering solutions as well as project having large service network and service centers in all major cities.
They render machine servicing and consultancy in mining and textile area. The Company was established in 1954 and is a component of Tata group. Their shares are traded on the Bombay Stock Exchange having turnover of 5364.35 crore rupees (2011). The company was ranked 39th among India’s most trusted brands as per Brand Trust Report. It is an HVAC, engineering and refrigeration company too. The company also produces equipment for water management, building management systems, indoor air quality and chemicals, engineering solutions, heating, ventilation construction equipment, materials handling. Schindler, set up in Switzerland in 1874, is global creator of elevators, moving walks and escalators. They make, install and maintain escalators and elevators in commercial, residential and high-rise building project. Their environmentally-friendly, creative access and transit system systems serve user friendly mobility service in cities. They are master in mechanical and microprocessor technology products ensuring efficiency, safety, comfort and reliability.
Presence of Voltas is in above 140 countries and gives employment to near 55,000 staffs throughout the world.
The manufacturing units are established in Slovakia, Spain, Switzerland, India, Brazil, China and USA.
Analysis and discussion of case studies Schindler
Human resource development of Schindler is based on employee, his manager as well as HR manager. Several methods for developing staffs are international assignments, performance management, project assignments, coaching, classroom training, on-the-job training, job rotation, E-learning. The company nurtures skills of every staff to ensure performance and motivation and to bring them to their full merit. HR approach of Schindler is to get trained and knowledgeable human resource. Merits and demerits are measured with respect to needed skills and competencies in annual development review that makes development plan with actions. HR development in the company is pursued within Manpower Resource Planning framework. It forecasts future human resources requirement and employee career interests. Effort is
given to identify and grow potentials at each level for responsibility in the company. Schindler believes in the phrase “no promotion without successor”.
They inspire balance between work life and private life to grow motivation. The company supports staffs who assume responsibilities in cultural, professional, civic or charity organizations not making conflicts of interest.
Activities during working hours require approval from management. The company supports flexible working like part-time work, flexi hours, job-sharing and so on.
The company believes in long run relationship with commitment of staffs to attain needs by continuous learning, professional orientation and mobility. The company struggles for environment which protects health as per standards of safety and security. AS an MNC, Schindler offers a range of positions world wide, maximum of which are related to customers and elevators/escalators. They need skill and competence.
The company thinks that motivated staffs make satisfied customers and business prospect. The company organizes time to time staff motivation surveys and formulates action plans as per results to upgrade inspiration level and maintains it.
Schindler’s success depends on the quality of its people.
The company wants to attract, retain and develop proper people having professional skills and competencies like leadership, achievement orientation, people orientation, customer orientation, self-confidence and impact. The company cares for skills and experience and is bias free in term of nationality, origin, race, gender, religion and age. Values and culture of Schindler determine employees behaviour and business relationships that are given special attention. The Schindler values are visible leadership, commitment to people development, create value for the customer, safety and integrity. Schindler leaders manage these values with accountability, commitment to employees, truthful, timely and continuous information, teamwork, clarity and focus, respect, trust, fairness, drive of openness and truthfulness.
The HR managers show communication skills, open- mindedness, Empathy and credibility. HR managers in Shindler are partners of line management and staffs to ensure business success. HR systems and processes in the company support business and do fair treatment of employees. HR department locates and promotes good HR practices and ensures effective communication with all employees; develops HR metrics; supports a multicultural environment with employee diversity;
supports by fostering proper policies and systems and make fair applications and ensures assistance and guidance to select and develop qualified staffs. The company makes freedom of association to its staffs as well as collective bargaining as per regional regulation.
Management oversees all industrial relations at the proper level for long run sustainability of company by interacting with all staffs. The company believes in fair remuneration that comprises of base salary, benefits and
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variable pay. All units maintain group compensation policy for individual performance, profitability, internal equity and market practices. The company offers incentives and bonuses if justified. The management compensates its staffs at per market level by regular market surveys for its competitive positioning.
Voltas
Voltas managers are committed to set up a relation with members which inspire a two way information flow and open discussion of diverse views; to foster leadership by ensuring professional knowledge, integrity and concern for the feelings of others; to ensure fair application of HR policies; to accept responsibility for success of Company’s HR philosophy and procedures and to review them. Voltas believes that success depends on how managers and team members attend their duties and obligations to the company at every level. Their philosophy will not work without confidence and loyalty in staffs and respect for each other. Voltas commitments are to motivate staffs in implementing their full potential, to incorporate enabling, stimulating as well as supportive work atmosphere, to ensure dignity and respect for all staffs with fair and equitable way, to recruit the most competent based on merit. Voltas HR philosophy is that betterment of company and its workforce are interlinked. The company thinks that its most valuable assets are its employees.
Voltas, with its leadership in technology markets, offers variety of exciting growth opportunities and career mobilities within Tata group. Career in Voltas makes sense when employees want to stretch themselves and their prospects. There are many ways where employees can boost their experience, skills, knowledge and entrepreneurial capabilities. Each Voltas staff is expected to maintain specific standards to their work, and to represent them as Voltas employees. They will follow organizational policies and procedures;
implement high levels of ethics, integrity and honesty;
accept and support decisions made; interact innovative ideas and opinions to managers and team members.
Voltas people are guided by their commitment as well as passion, and drive to increase their and company’s potential. The company is among the principal companies of Tata group. Individual can absorb Tata culture of integrity, corporate citizenship, global standards, business excellence and human values. Voltas attracts country’s best talents. Here people can be stimulated as well as challenged to prove themselves and flourish. The company culture provides liberty to perform at employee’s best as well as rewards with recognition and incentives. Voltas keeps employees on upward path by raising the bar.
Voltas is made for growth in global business scenario.
They plan on record of global achievement and potential competencies. The company invites to be a part of their global adventure. The company motivates people to take place in a human-potential culture based on restless
learning. The company gives exposure to range of knowledge domains as business planning, project management, manufacturing, marketing, service provision etc. The company serves all-round entrepreneurial experience. Their leadership can reflect on employees. The company has assisted to introduce, innovate and adapt most advanced technologies in India and large projects in over 30 countries overseas.
Recommendations
Human resource approach is nurtured by deciding and taking care of daily issues of organization. HR mechanism should be involved with factors as to evaluate policy to identify areas that need to be altered;
to convey policy adapted to all employees of organization; execution of policy by proper procedure to support policy; to test alternatives where HR policy statement is required; taking feed back and doing revision of policy for changing requirement of organization; diagnosis of each parameters affecting organization’s HR policy and to locate the organizational goal related to HR department. CEO of Microsoft Bill Gates says, “Take our 20 best people away, and I will tell you that Microsoft would become an unimportant company.” To fulfill organization’s objective, HR philosophy must be follow all specific law; particular and transparent but foster flexibility for changing conditions; comply with other company stipulation and be fair approach to each staff. The authority must take care of external forces that affect HR policies. The administrators should take the opinion of staffs, union fellows and managers. The company should evaluate present policies. The management should have clear concept of organizational culture and organizational values. The management should find out any field for which present policies are not enough.
CONCLUSION
Effective human resource practice serves a range of benefits. Well set up HR policy oversees all employees get just relevant treatment under one umbrella of appraisal. Well established HR practice helps sound planning and organizing. Good HR policies foster equal treatment to every staff. Appropriate human resource mechanism arranges for employee welfare and healthy relationship with management. It serves saving of time and cost. Staffs will accept assignments written in HR policies. Good human resource practice caters managers input to take decisions independently. CEO of chemical company Monsanto Robert B. Shapiro says, “If an institution wants to be adaptive, it has to let go of some control and trust that people will work on the right things in the right way.” Human Resource practice is about formulating guidelines and implementing them for managing its work force. It runs as per HR policies and sense of HR mangers on several issues in work place.
This shows company tendencies on several matters of HR management like recruitment, selection, promotion, appraisal, payment, training, collective bargaining etc as
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per organizational value. Thus it deals with decisions made regarding people. However, each company faces different circumstances, thus sets varied types of human resource policies.
REFERENCE
[1] Text Book : B.P.Singh & A.K.Singh; Essentials of management; Excel Books, New Delhi, 2nd Edition, 2002.
[2] Text Book : L.M.Prasad; Principle & Practice of Management; Sultan Chand & Sons, New Delhi [3] Text Book : O.P.Khanna; Industrial Engineering and Management; Dhanpat Rai Publication Pvt Ltd, New Delhi; 1999 Revised Edition
[4] Text Book : Rao V. S. P; Human Resource Management Text and Cases; Excel Books, New Delhi; First Edition. 2000.
[5] http://en.wikipedia.org/wiki/
[6] https://magazine.inc.com/pubs/
[7] http://hrcouncil.ca/about/
[8] http://www.chron.com/
[9] http://www.csb.gov.hk/
[10] http://www.managementguru.net/
[11] http://www.schindler.com/
[12] http://www.voltas.com/