Challenges of Industries
Globalization: Many Indian firms are compelled to think globally, something which is difficult for managers who were accustomed to operate in vast sheltered markets with minimal or no competition either from domestic or foreign firms. 2. Changed Employee Expectations: Employees demand empowerment and expect equality with the management. Previous notions on managerial authority are giving way to employee influence & involvement along with mechanisms for upward communication and due process.
If we look at the workers’ unions of Otis, Hindustan Lever, ICI, TOMCO, Blue Star, Webel Electro, and Central Bank. They rewrite their agenda to include quality and better customer service and are even accusing the management of malpractices. So every time there is need to redraw the profile of the worker and discover new methods of training, hiring, remunerating and motivating employees. 3. Outsourcing HR Activities: The trends towards outsourcing have been caused by several strategic and operational motives.HR departments are divesting themselves from mundane activities to focus more on strategic role.
Outsourcing has also been used to help reduce bureaucracy and to encourage a more responsive culture by introducing external market forces into the firm through the biding process. It is a big challenge before the HR manager to prove that his/her department is as important as any other functions in the organization. The relevance of HR is at stack. 4. Changing Workforce Dynamics: Frequently, physical relocation is required.The increasing number of dual-career professionals limits individual flexibility in accepting such assignments and may hinder number of dual-career professionals limits individual flexibility in accepting such assignments and may hinder organizational flexibility in acquiring and developing talent.
Some demographic changes in the workforce having their own implications to the HR managers are: a. Increasing number of working mothers b. A steady decline of blue-collar employees who are giving way to white-collar employees c. Increasing awareness & education among workers.
5. Balancing Work-life:Balancing work & life assumes relevance when both husband and wife are employed. Travails of a working housewife are more than a working husband, thus balancing it is becoming a major challenge for HR manager. So a programme aiming balancing work-life is required and are supposed to include: Childcare at or near the workplace, Job Sharing, Care for sick children and employees, On-site summer camp, Training supervisors to respond to work and family needs of employees, Flexible work scheduling, Sick leave policies, Variety of errands from dry cleaning, dropping children at schools, making dinner reservations etc. nd many more like the same or other. 6.
Making HR activities ethical: Hiring ethical strong employees is only the beginning. The need to institute mechanisms to ensure ethical conduct of employees is increased a lot with the passage of time. The HR manager needs to carefully screen applications for jobs, weed out those who are prone to indulge in misdemeanors and hire those who can build a value driven organization. 7. Organizational Restructuring:Peter Drucker prophesies in his book (The New Realities) is showing its color and many big companies has reduced their number of management grades, elimination of layers, & redrawing reporting lines within their organization. ITC, HLL, Godrej & Boyce, RPG Enterprises, Raymond Woolen Mills, Shaw Wallace, Ballarpur Industries, Compton & Greaves are some of the companies that are doing so.
Changes are required particularly during the time of Acquisitions and Mergers also during the bad whether of the firm. This is of need to keep people with and working effectively and efficiently.These are done according to the changing character of competition, as major companies operate through complex web of strategic alliances of varying degrees of permanence. 8.
Managing Diversity: Its value is getting more important issue because of: Increase in the number of young workers in the work-force, increase in the number of women joining the work-force, increase in the proportion of ethnic minorities in the total work-force, increase in mobility of work-force, international careers & expatriates are becoming common, international experience as a pre-requisite for career progression to many top-level managerial positions.Organizations that can manage diversity better trend to be more flexible because they have broadened their policies are more open-minded, have less standardized operating methods and have developed skills in dealing with resistance to change. 9. Attitude towards Unions: Unionization is preferable because to remain union-free costs the organization heavily.
Pay raises, out of turn promotions, generous perks & other benefits need to be doled out frequently to appease workers. General perception of managers is to avoid unionization but it is very beneficial to the organization.It provide a mean for workers to express before the management conditions prevailing in the workplace. But at the same time because of voice mechanism or the instrumentality role, unionized firm have lower turnover rate and encourage organization to provide more rational and professional management. So the work of HR mangers gets tough here to decide whether is should be there in the organization or not and if yes then how to control it.
Strings of the union are required to be checked time to time for better performance in the firm. CHALLENGES FACED BY VARIOUS INDUSTRIES TATA CONSULTANCY SERVICES AND THEIR HRM PROBLEMSCompany Profile of TCS Tata Consultancy Services is an IT services, business solutions and outsourcing organization that delivers real results to global businesses, ensuring a level of certainty no other firm can match. With a vision of being in top 10 companies by the year 2010. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Mode, recognized as the benchmark of excellence in software development.
TCS has over 120,000 of the world’s best-trained IT consultants in 42 countries. CHALLENGES IN TCS 1. MAINTAIN WORKFORCE DIVERSITY:The future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a strategic organizational asset if an organization is able to capitalize on this melting pot of diverse talents. With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, especially in the global arena which must be one of the important organizational goals to be attained.More importantly, if the organizational environment does not support diversity broadly, one risks losing talent to competitors.
Since TCS has offices in more than 40 countries, the challenge for hrm is to maintain the proper ratio between foreign and Indian origin employees. 2. THE MANAGEMENT OF WORKPLACE DIVERSITY: In order to effectively manage workplace diversity, a HR manager needs to change from an ethnocentric view (“our way is the best way”) to a culturally relative perspective (“let’s take the best of a variety of ways”).This shift in philosophy has to be ingrained in the managerial framework of the HR Manager in his/her planning, organizing, leading and controlling of organizational resources. TCS deals with this challenge by conducting mentoring programs.
3. LARGE WORKFORCE: There is a big challenge of maintaining large work force consisting of 1. 3 Lac employees for TCS. 4.
MANAGING EIS: (Executive Information System) As information is the basis of decision-making in an organization, there lies a great need for effective managerial control.A good control system would ensure the communication of the right information at the right time and relayed to the right people to take prompt actions. When managing an Executive Information System, a HR manager must first find out exactly what information decision-makers would like to have available in the field of human resource management, and then to include it in the EIS. This is because having people simply use an EIS that lacks critical information is of no value-add to the organization. In addition, the manager must ensure that the use of information technology has to be brought into alignment with strategic business goals.
. CONTROL AND MEASURE RESULTS: A HR Manager must conduct regular organizational assessments on issues like pay, benefits, work environment, management and promotional opportunities to assess the progress over the long term. There is also a need to develop appropriate measuring tools to measure the impact of diversity initiatives at the organization through organization wide feedback surveys and other methods. Without proper control and evaluation, some of these diversity initiatives may just fizzle. 6.
LEADING THE TALK: A HR Manager needs to advocate a diverse workforce by making diversity evident at all organizational levels.Otherwise, some employees will quickly conclude that there is no future for them in the company. As the HR Manager, it is pertinent to show respect for diversity issues and promote clear and positive responses to them. He must also show a high level of commitment and be able to resolve issues of workplace diversity in an ethical and responsible manner. 7.
HOW TO KEEP THE SAME LEVEL OF RECRUITEMENT EVEN IN RECESSION: The biggest challenge for HR is to maintain the company reputation, which it gained over the period by recruiting a large number of new employees every year. 8. HOW TO ABSORB ALL RECRUITEES:Though there are recruitments in large scale, they do not have enough projects to absorb all the new recruited employees. In order to tackle this situation, they are calling the new recruited employees in small batches rather than 2-3 large groups. 9.
HOW TO MAKE MORE PROFIT WITH SAME REVENUE: As per Economic times, TCS is planning to decrease the variable pay of executives by 10-15% and keeping the gross same for middle management and developers. 10. HOW TO MOTIVATE EMPLOYEE The development of an appropriate organizational reward system is probably one of the strongest motivational factors.This can influence both job satisfaction and employee motivation. The reward system affects job satisfaction by making the employee more comfortable and contented Motivational factors in an organizational context include working environment, job as a result of the rewards received.
The reward system influences motivation primarily through the perceived value of the rewards and their contingency on performance. The challenge which HR is facing is that how to motivate employee without any significant salary hike or promotion.BIRLA SOFT AND THEIR HRM PROBLEMS Company Profile Of Birla Soft: Birla soft is a leading provider of information technology services in both onshore and offshore models to Fortune 1000 as well as mid-sized organizations in banking, financial services, insurance, retail, healthcare, manufacturing and independent software vendors sectors. Birla soft services include application development, support ;amp; maintenance, enterprise application implementation, integration, infrastructure management and quality assurance ;amp; testingCHALLENGES IN BIRLA SOFT 1. Communication: Focusing on establishing effective communication throughout the organization and to ensure that Birlasoftians have the skills and avenues to share information and coordinate activities effectively. 2.
Performance Management: Driving the organization’s and its members’ progress by establishing objectives related to committed work against which performance can be measured, ascertain capability development assistance required to continuously enhance performance. 3. Competency Development:This starts with identification of requisite competencies at the organization level which are ultimately dependent on competencies that are needed to be identified, built or enhanced in the individual Birlasoftian. Enhancing constantly the capability of Birlasoftians to perform assigned tasks and responsibility in turn uplinks to the organization capability building.
4. Training and Development: To ensure that the identified competency requirements are built through a systematic and focused approach. 5. Compensation:To provide all individuals with remuneration and benefits based on their contribution and value to the organization in a fair and transparent manner.
Competitiveness of the compensation offered in comparison with the prevailing markets’ reality is the driving force. 6. Career Development: To ensure that individuals are provided opportunities to develop their competencies that enable them to achieve professional and personal career objectives within the organization’s goals. 7. Participatory Culture: A myopic outlook of utilizing talents of people only in the delivery of ssigned duties has two broad undesirable effects: It prevents people from developing as well rounded professionals; and it denies the organization the readily available multitalented internal resource pool that could potentially contribute to most of the challenges and opportunities facing the organization.
Building a participatory culture enables availability of avenues to harness/give exposure to employees’ full capability by involvement in making decisions and solving problems that affect the performance of business activities. INDIAN TOBACCO INDUSTRY & Their HRM Problems: Company Profile Of Indian Tobacco Company: (ITC)ITC is one of India’s foremost private sector companies with a market capitalization of over US $ 13 billion and a turnover of US $ 3. 5 billion. Rated among the World’s Best Big Companies by Forbes magazine and among India’s Most Respected Companies by Business World, ITC ranks third in pre-tax profit among India’s private sector corporations. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products.
Challenges Faced By ITC 1. ATTRITION: Attrition is the gradual reduction of a workforce by employees’ leaving and not being replaced rather than by their being laid. Reducing attrition rate has been a challenge for HR Managers since many years. Tobacco industry was not much not affected by the problem of attrition, but due to stringency in govt.
policies this problem became a prominent challenge for HR Managers of this industry. The same is the case with HR Manager of ITC, due to stringency in govt. olicies the sales went down and the profits declined. In order to maintain the profit levels employees were pressurized and thereby adding to the attrition rate. Now, HR Managers are working hard to reduce this increasing attrition rate.
2. RECRUITMENT AND TRAINING: As the employees are leaving the organization due to increased work pressures, it has become mandatory for the HR Manager to recruit new employees. And in this liquidity crunch they are spending on the recruitment and training of the new recruits. 3.RETENTION: Retention is a process of continued possession.
Retaining an employee without giving any fringe benefits is although more difficult. In the current scenario when each and every organization is suffering from liquidity crunch it is very difficult for an organization to give tangible or intangible benefits. HR Manager of ITC also is moving in the same boat. He is also facing difficulties in retaining the old employees, as he is not able to motivate them and with the increased pressure the attrition is increasing.