Introduction to HRM

1 HUMAN RESOURCE MANAGEMENT

HRM: Human Resource Management refers to the management of an organization’s workforce or employees. It is responsible for attraction, selection, training, assessment and rewarding of employees while overseeing organisational leadership and culture and ensuring compliance with employment and labour laws.

HRM is a part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organisation of the employees who make up enterprise and having regard for the wellbeing of the individual and working groups, to enable them to make their best contribution to its success.

Functions of HRM

Manpower Planning: It is a process of forecasting the future demand for and supply of the right type of people in the right number.

 Job Analysis: It is process of studying and collecting information relating to the operations and responsibilities of a specific job. The result of job analysis is job description and job specification.

Recruitment and Selection: Recruitment is a process of stimulating the candidates to apply for jobs. Selection is a process of identifying the most eligible candidate for a particular job.

Orientation and Placement : Orientation is a socializing the process by which the organisation seeks to make the employee comfortable at the workplace. Placement is about matching the requirements of the job with the qualification of the candidate.

Training and Development: Training is imparting specific and necessary skills to an employee in order to perform a particular job/task at present; whereas development of an employee is all about giving opportunities to employees to acquire relevant knowledge to equip him/her towards the future job.

Performance Appraisal and Job Evaluation: Performance Appraisal is the systematic evaluation of employees against the set standard of expected performance. Job Evaluation is a systematic technique to determine the worth of the job. It is rating a job and not an individual employee performing the job.

Compensation and Benefits: It is a process of developing and operating a suitable wage and salary program as compared to the other players in the industry.

Motivation and Communication: Motivation is the process of channeling an employee’s inner drive towards accomplishing the goals of an organisation. Communication is the process managing transparency in the ideas, information, orders, instructions and messages from management to the employees and vice versa.

Welfare, Safety and Health Measures: The organisation implements various welfare, safety and health measures for the betterment, security and satisfaction of the employees. Some of the measures are workers compensation who are involved with accidents, maternity benefit, medical and sickness benefit, disablement and dependent benefit and retirement benefits such as provident fund, pension and gratuity.

Healthy Industrial Relations: It is the relationship among the employer, trade union and the employee. The HR function strives to maintain a cordial and peaceful relationship between all the three parties.

Objectives and Significance of HRM

  • To implement fair method of employing people in the organisation.
  • To transform the knowledge, skills and abilities of the employees.
  • To engage and retain employees who contribute continuously towards the organisational development.
  • To establish such HR Policies in the organisation which makes the company as the best place to work.
  • To maintain HR practices which will help the employees to ensure a work life balance
  • To ensure a culture of trust, mutual bonding and team spirit among the employees and among the departments
  • To implement monetary and non- monetary rewards which will help in recognizing the employees
  • To aim in overall development of employee through regular training, encouraging employees to participate in knowledge sharing seminars.
  • To motivate the employees to work towards efficient utilization of their skills.

Evolution and Development of HRM

Period before Industrial Revolution: It was primarily an agriculture economy with limited production where trade was usually carried out within a village or community.(Note: Industrial Revolution: The Industrial Revolution was the transition to new manufacturing processes in the period from about 1760 to sometime between 1820 and 1840)

Period of industrial revolution (1750 to 1850): Economy from agriculture based got transformed ton industry based. A department  was set up to look into workers wages, welfare and other related issues. This led to emergence of Personnel Management with the major task of managing worker’s wages and salaries, worker’s record maintenance and worker’s  housing facilities and health care.

Establishment of Labour Union (1790): During this phase the working condition was long working hours with very less wages due to which labour unrest began hence workers across  the world started to protest. Personnel Management department started managing politics and diplomacy in the organisation which lead Industrial relation department to emerge.

Post  Industrial revolution – After 1850: Various studies were released  which gave HRM altogether a new meaning.

For example Frederick W. Taylor- principles of scientific management (1857 to 1911) studied on worker’s training, maintaining wage uniformity, focus on attaining better productivity. Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940) which studied on increasing worker’s productivity to increasing worker’s efficiency through greater work satisfaction. Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s Hierarchy of needs ( 1954) also emerged.

Due to these studies transition from the administrative personnel management approach transformed to a more dynamic Human Resource Management approach which considered workers as a valuable resource and HRM became increasingly line management function which got linked to core business operations.

In fact the world’s first management book, “ARTHASHASTRA” (250 AD) covered 3 areas which are public policy, administration & utilization of people and taxation and accounting.

Human Resource Environment: It is the environment in which the employees works. So it is the environment under which the organization is carried on. The HR function is responsible is create, manage and improve the work environment as per the requirement of business needs and objective which is possible by crafting HR employee friendly policies, providing the healthy work life balance to the employees, maintaining diversity at workplace and integrating the HR functions with the latest technology, providing freedom for employees to innovate, take initiative and  engage the employees to their work and the organisation.

Strategic HRM: Strategic HRM defines the organization’s intention and plans on how its business goals should be achieved through people. SHRM constitutes a set HR decisions and HR plans that helps an organisation to differentiate from the competitors by aligning individual goals and objectives with corporate goals and objectives.

It gives direction on how to build the foundation for strategic advantage by creating an effective organisational structure and design, culture, employee value proposition, an appropriate communication strategy and preparing the organisation for a challenging landscape.

SHRM is the means of aligning the management of human resources with the strategic content of the business.

Organisational and Human Resource Strategies

Human resource strategies are linked to the orgnisational strategies by aligning the HR practices with specific aspects of the external environment and secondly by providing HR services to business units within the firm. This alignment is possible in three ways which are by building a culture of high performance, high commitment and high innovativeness.

High Performance Culture:

  • Rigorous recruitment and selection procedures
  • Extensive and relevant training
  • Management development activities
  • Incentive pay systems
  • Transparent performance management systems

High Commitment Culture:

  • Development of career ladders
  • Emphasis on trainability
  • Employees commitment
  • High level of functional flexibility
  • Potentially rigid job descriptions
  • Reduction of hierarchy system
  • Ending of status differentials
  • Heavy reliance on team structure
  • Enhancing problem solving capabilities
  • Building quality circles
  • Innovative forms of assessment and compensation systems

High Involvement Culture

  • Effective information sharing between managers and members
  • Developing values
  • Focus towards organization’s objectives
  • Achieving mutual understanding
  • Providing framework for managing
  • Developing people

HR as Distinctive Competitive Advantage

The human resource function can be built to gain a distinctive competitive advantage by the following ways:

  • Making changes in the organisation structure based on the culture of the organisation
  • Building a culture of innovation and high performance
  • Increasing the organisation effectiveness
  • Matching the resources to future requirements by transparent career planning and effective succession planning
  • Developing the distinctive capabilities through competency mapping
  • Developing the knowledge management culture
  • Preparing and motivating the employees to accept changes and excel in the changing environment
  • Developing the process capabilities through people friendly HR processes
  • Developing the ability to get things done effectively by becoming a employee champion, gaining the trust of the employees and making them believe in the organisational vision.

Qualities of HR Manager

 Communication Skills: A HR manager needs excellent written and oral communication skills to delegate responsibilities to her subordinates. The HR manager must relay the ideas and information in a clear and understandable manner to management and all levels of employees.

Analytical Ability: A good HR manager promptly deciphers the issue at hand, determines its importance and resolves it accordingly. He recognizes and separates trivial matters from those of real significance. He uses facts, logic and scientific thinking to arrive at sound observations, hypotheses or theories.

Compliance: The HR department ensures the company stays in compliance with labor laws, which means the HR manager needs deep knowledge of those regulations to properly implement and manage them. A strong understanding of laws pertaining to employee benefits, wages and hours, health and safety and hiring and termination is essential to this position.

Objectivity and Impartiality: The HR manager serves as the middleman between management and employees and must remain fair in his dealings with all sides. He must have an objective and impartial mindset to so he can accurately assess a situation. He should also be a rational thinker with sharp negotiation skills. This is particularly important when solving employee disputes or conducting salary negotiations.

Emotional Intelligence: The HR Manager must be emotionally mature and resilient to help her cope with high-stress situations on the job. He should also exercise discretion and work to win the trust of her colleagues and subordinates.

Leadership: A successful HR manager embodies the qualities of a true leader. He should be assertive, responsive, confident and optimistic. He should also have exceptional organizational skills and a unique visionary style to strategically plan for the future. Through reward and recognition, he motivates employees into improving their performances.

Problem solving ability: In order for businesses to function at their best, the HR department must ensure that individuals with different personalities can work together and accomplish company goals. The HR professional have to be skilled at conflict management and combative situations.

Interpersonal Skills: Wearing many hats successfully requires strong interpersonal skills. The HR manager must interact with various types of people on a daily basis. Each time he comes into contact with people, he must relate to them so their questions are properly addressed. He must be a “people person” who likes interacting with others.

Approachable and Compassionate: Employees must feel they can approach the HR manager with their problems. If the HR manager seems unapproachable, the employee will be reluctant to go to her. If the HR manager lacks compassion, the employees won’t trust him with their problem. This is particularly important to employee retention and productivity.

Educated: Most employers prefer a bachelor’s degree that includes a balanced curriculum of English, behavioral sciences, accounting, business and labor law, statistics and economics. Master’s degrees in industrial organization, human resources management, business administration and industrial relations are also acceptable.

Organisation of HRM department

The HRM department is an organisation depends on the industry that an organisation belongs to. For example in an IT company the HR department have been categorized into many sub divisions such as recruitment and selection, induction, talent management, compensation and benefits etc whereas a retail organisation or a manufacturing unit may have a business HR who takes care of end to end HR functions. On a general note a typical HR department will have the following sub divisions.

Recruitment Division: Responsible for sourcing relevant profiles, scheduling interviews, conducting the interviews, offer generation and background verification

Induction: Responsible for employee ID generation, orientation of employees, employment and statutory form filling and opening of bank accounts for the employees.

Training and Development: Generally called Talent Transformation department which is responsible for identifying the training needs, chalking the training calendar, making training modules, conducting and coordinating the training and evaluating the training effectiveness.

Employee Relations: This department is responsible for employee engagement and development of the employees which takes care of staff deployment, transfers, promotions, appraisals, team building, staff health safety welfare, grievance handling, trade union management and maintaining the HR information system.

Compensation and benefits: This department of HR function administers the salary, payroll and benefits of the employees. Also manages the statutory enrollment of the employees

Personnel policies :The human resource policy manual is a companion volume to the employee handbook. It presents HR policies and programmes for a specialized group who have a particular responsibility for communicating and implementing them out. It provides a written expression of policies to ensure their consistent application throughout an organisation. More over it enables a manager to administer his own interpersonal relationships with others at the most desirable level. It also provides HR executives, line managers and supervisors with a systematic approach to administer HR policies and practices.

HRM model : Dave Ulrich’s HR Model

According to this model, a HR has 4 roles which are as follows:

HR Business Partner : HRBP builds a strategic partnership and relationship with dedicated internal customers of an organisation. He represents HR philosophy of the organisation and advertises the HR function. He identifies the key top talents and spreads their knowledge across the organisation. He exchanges honest feedback from the employees and helps to improve the process, procedure and services. He incorporates HR goals into daily agenda which helps to achieve the business objectives. HRBP runs cross functional projects aiming to improve the productivity, support innovations and develop talents. He acts as a coach in difficult moments, facilitates difficult meetings and find win-win solutions.

Change Agent: The HR participates in participates in change management teams and takes the responsibility to communicate the changes with the employees and helps them to transform their job habits. He plans training sessions for employees and helps them to gain new skills and competencies which are required for the changed role. He supports changes and leads initiatives to make change easier for employees.

Administration Expert: It is a transactional role where the HR needs to have deep knowledge of the labour laws, trade union bargaining, dealing with difficult employees and maintain employee welfare, health and safety at workplace.

Employee Advocate: It the core role of a HR which makes him an employee champion protecting their interest, identifying the gaps in corporate culture and managerial practices. He leads initiatives to improve employee experience in the organisation. A HR manages regular grievance and compliance procedure to ensure that employees enjoy fair treatment from the management.

HR PHILOSOPHY : Philosophy in the context of management of an organisation consists of integrated set of beliefs towards managing a particular business. This set of beliefs give shape in terms of vision & mission statement of the organisation. Based on the vision and mission of the organisation, the HR Philosophy is crafted and based on the HR Philosophy the HR policies are developed.

HR Philosophy is a set of core values of the organisation towards its employees which builds the culture of the organisation.

It is about the leadership style of the top management, the corporate culture, values and their approach to work.

The HR Philosophy should be based on the following beliefs:

  • Human beings are the most important assets in the organisation.
  • Human beings can be developed to a great extent as they have creative energy
  • Human beings feel committed to the organisation if they develop belongingness with it.
  • Human beings are likely to develop a feeling of belongingness if the organisation takes care of them and their need satisfaction.
  • Human beings contribute to the maximum if they get an opportunity to discover their full potential.
  • It is the responsibility of the organisation to create healthy and motivating work climate characterized by openness, enthusiasm and trust.

Some of the HR Philosophies from leading organisations are discussed below:

HR Philosophy of TATA

“Employees are our capital and our job is to grow that”

“People are the greatest assets of any great company. And ensuring their well-being and their continuing development is its greatest priority.”

HR Philosophy of Jindal Power

“Creating competitive advantage for all stakeholders through effective people management”

HR Mission

  • To attract, nurture and retain the best talent by inculcating a culture of learning, performing, developing creativity and team work.
  • To build an excellence focused, development oriented, value driven and people sensitive organisation.
  • To enrich the quality of life of employees and develop their potential.
  • To develop employee engagement, mutual trust, co-operation and openness through empowerment, recognition and rewards.

HR Philosophy of SAMSUNG SDI

The talent Samsung SDI pursue is a man of nature and systemizing personnel who is well aware of his world task being as a member of the international society; paying regard to one’s personality and individuality, giving full scope to his/her creativity and capability to carve out his/her infinite future and ultimately contribute to human development.

Integrity

A man of humanity and morality who can cooperate others and fills his/her responsibility and roles as a member of a society living in concert with others

Personnel who lives by the rules and basics, being honest and positive, having sound value system and corporate value with leadership and teamwork capability.

It signifies that we value a courageous person who tries to correct errors openly, a warm-hearted man who can work side by side with others, a man who can encourage and lead others without group & individual egoism showing true understanding and companionship.

Leadership

Having firm belief to take the initiative leading the 21st century

A creative and defiant talent to open up one’s life to fulfill the goal with strong will, enthusiasm and confidence

A talented man with individualistic characters, flexible mind, abundant imagination, challenging and pioneering spirit

That is a man of creativity improving one’s future based on creation and cooperation; with enterprising spirit who constantly seeks for his/her improvement and leading changes accepting new ideas openly and who gives vitality and freshness to the organization and society.

Global Competency

A man ready to receive diversity and having international attainments thinking and acting as a global citizen

A personnel with linguistic skills who can adapt him/herself to other cultures and admit variety observing global standards

We treasure human resources who can live out in this open era of infinite competition based on his/her capability and competency realizing one’s stereoscopic and international position.

Specialty

A man of professional skill to cope with the digital revolution

Equipped with professionalism and learning with expertise satisfying specialty coping with changes

We value personnel who exerts the utmost ability in the specialized field of him/herself with wide array of knowledge and flexible way of thinking to view an object in diversified perspectives; who tries to understand other areas by embracing them.

 

HR Philosophy of Antalis

Our HR philosophy

“Attracting, developing and retaining the best people and leaders is a critical factor in achieving our business goals.”

We will deliver a joined up approach to Resourcing, Learning and Development, Performance Management, Talent Management and Leadership whilst creating a business partnering approach for HR. Creating an energising environment will enable and empower employees to work together to deliver the changes needed for future success. We will continue to develop a strong team based culture with the right values and behaviours where employees health and wellbeing as well as their personal development are supported.

Delivering our People and Environment themes in an increasingly challenging market will require HR to be operationally excellent. HR will develop the systems, processes and capabilities to ensure the delivery of operational excellence.

HR Philosophy of Scope International

(http://www.scopeknowledge.com/HrEmphasis.aspx)

“Scope’s human resource philosophy is to provide and nurture a congenial organizational work culture, to help Scopians strive for growth and excellence in operations, to ensure client satisfaction.”

HR Policy: Our people are the core of our operational expertise. We place great emphasis on recruiting, training and retaining the right people who come from diverse cultures and educational backgrounds. This diversity enables us to achieve our goals through brainstorming of “minds at work” in a customer – driven work environment. Rewards and recognition schemes are oriented to grooming high performers for larger opportunities.

Work Culture: Scope boasts of a youthful and vibrant work culture, complemented by a work environment that promotes teamwork and obtains the best from each employee. A strong emphasis is laid on the “Learn, Share and Grow” policy. Consistent information sharing across various levels of the organization is promoted through effective channels of communication such as communication teams and open houses. Fun activities include get-togethers, picnics, etc.

The main factors influencing the HR philosophy in the organization are:

  • Leadership Style
  • Corporate Culture
  • Corporate Values
  • Market Competition

The leadership style is extremely important. The leaders of the organization are the role models for managers and employees. The manager always tries to act as the leader does. The leader sets the basic expectations from all employees and managers. They adjust their behavior to be fully compliant with the leader’s expectations. The HR Management Philosophy is the same story.

The leader is usually the person, who starts the change or the re-design of the HR Management Philosophy. The leader observes the behavior in the organization and requests several changes. The leader usually calls a new HR leader, who is responsible for the leadership in the change management.

The corporate culture and the corporate values define boundaries for the HR Management philosophy. The HR Management cannot be in the conflict with the corporate culture. It has to be a natural part of the culture. In case of the changes in the HR Philosophy, the HR team has to start influencing the corporate culture. It has to be adjusted as well. The change of the corporate culture is the joint effort of the leadership management and Human Resources. It has to be changes by changes of the living examples. The employees will follow the changes naturally.

The external market and the direct and indirect competitors have the influence on the HR Management Philosophy. The competitors define the industry standard. The completely different approach usually builds the organizational weakness. The HR Philosophy has to be better, it cannot be completely different.

HR & BPR( Business Process Re-engineering)

Business process re-engineering is a business management strategy focusing on the analysis and design of workflows and business processes within an organization. BPR aimed to help organizations rethink how they do they improve customer service, cut operational costs, and become world-class competitors.

Business process re-engineering is also known as business process redesign, business transformation, or business process change management.

HR Optimization and HR process re-engineering is about re-thinking work from the ground up in order to eliminate work that is not necessary and to find better ways of doing work that is. HR process Re-engineering eliminates work, not jobs or people.

HR Optimization and HR Process Re-engineering is the fundamental rethinking and radical redesign of business process to bring about dramatic improvements in performance.

There are four key words in this definition:

“Rethinking” : It is the total rethinking. Beginning with proverbial clean slate and reinventing how you would do your HR work.

“Radical”: Means going to the root of the things and not about improving what already exists

“Process”:Group of related tasks that together create a value for internal customers

“Dramatic”

  • Significantly increased labor productivity;
  • Simplify the work;
  • Reduced cost;
  • Rapidly reduced cycle time;
  • Greater accuracy and management of information;
  • Reduce non value-added activity in the organization;
  • Create internal customer and end-user awareness;
  • Increased internal customer satisfaction.

HR’s Role in BPR:

Shaping the process:

Although senior management may lay down the general guidelines and direction the reengineering effort will take, HR often can play a major role in determining whether it will succeed. HR can help to create the selection criteria for members of the major committees. HR also can interview and evaluate candidates. Even as the process filters down through the organization, HR can play a key role in determining how team leaders and team members are selected.

Creating job statements and role descriptions that reflect the new corporate order:

The idea is to write job statements instead of descriptions, to outline roles vs. tasks, and to structure work around the customer rather than a specific function or department.

Working out compensation issues:

Pay scales and rewards must be structured to create the desired results. For example, a company that wants to focus on customer service must measure and compensate the work force based on that criteria. Likewise, HR must think about whether it should pay employees for specific tasks they should perform from 8 a.m. to 5 p.m., or offer skill-based or knowledge-based pay.

Training the new work force:

Experts agree that it’s important to provide plenty of training on specific skills employees will need in the newly reengineered company, but that teamwork, decision making and trust building must also be heavily emphasized over a period of time.

Molding the new corporate culture:

Stories, ceremonies, awards and rituals all have a major impact on how people behave. Caldow insists that human resources can alter thinking by helping form a new ethnography. It must be consistent throughout the organization, and it should be backed by plenty of symbolism. Yet, the change won’t occur overnight. It may take weeks or months before a real breakthrough in thinking takes place.

Facilitate communication in the work force:

Nothing is as frightening to a work force as change, and nothing changes a work force as much as reengineering. Newsletters, videos, letters, E-mail messages, and companywide and departmental meetings are all useful tools in quelling anxiety. Moreover, good communication can help a work force understand how reengineering may benefit it in the future.

New challenges of HRM

Rapid Globalization: Due to globalization, HR function is becoming complex. Workforce is becoming virtual, emergence of HR outsourcing, global HR practices, increased competition, employee retention has become a challenge.

New Technology: Enterprise resource planning software such as SAP, Peoplesoft are becoming popular. Updating the function as per the new technologies is a challenge. Concepts such as six sigma and ISO which are quality related are being incorporated in the HR functions which is making it more complex and challenging.

Managing change: Rapid change in the workforce demography, changing expectations from employees belonging Gen Y & Z, new emergence of technology, increase in women workforce, innovative HR practices implementation and execution has become a challenge.

Cost containing: Quality comes with a cost. With aiming to build a more engaged work environment, innovation has become necessary with the implementation of new technology, new facilities and benefits managing with a budget has become a challenge for the HR function.

Diverse workforce: Globalization is taking place at rapid pace. The outcome has resulted in HR outsourcing due to which diverse work force has emerged at work place. Expatriation has become a trend which has led to diversification of workforce and with this diverse group of employees, the expectations of the employees also have become different. Keeping the expectation of such diversified workforce is a challenge to the HR department.

Skill Shortages: Due the rapid spread of education, the number of young graduates passing out every year has become large and at the same time, the skills in these youth have reduced. Competition have forced the graduates to get a degree rather than knowledge due to which availability of skilled workforce is become scarce which a big challenge to the HR function.

Change in power structures: The emergence of Gen Y & Z has bought a different set of work culture where power structures are becoming more flat than hierarchal. Philosophies like “bring your own device” , flexible work place sitting arrangements, reducing of managerial cabins have become less. Managing such new change in the power structure has become a challenge to the HR function in engaging them to the orgaisation.

Increasing women workforce: Women workforce has been continuously increasing at workplace due to which change in policies, availability of facilities to women employees have raised due to which cost has become higher in managing and engaging the women at workplace which has become a challenge to the HR team.

Knowledge Management: Continuous development of the employees is the need for the hour to keep the employees updated and well trained which has led to the emergence to E Learning at workplace. Implementation of internal social media platforms at workplace has become a regular practice. Coping up with the updated technology in driving the knowledge management culture is a new challenge to the HR department.

Recent Techniques in HRM

Employee for lease:

When an organization depends upon consultancy agencies or individual consultants for obtaining the required number and kind of employees for organization on lease basis, the employee are known as lease employee. These employees will work for the organization. Leasing company will collect the fee & other charges from industries & pay the salaries and provide benefits to the employees. The Leasing Company will pay complete salary and benefits to the employees irrespective of the number of days that the employee is sent to organization on lease. This type of agreement is beneficial to the company is having limited budget as they can utilize the expert advice & service of most competent human resources

Advantages of Leasing Employees:

  • Cost Savings: Employee leasing allows the parent company to save on employee benefits. Fixed monthly salary per leased staff is paid only to the employee leasing company. At times leased employee performance incentives are given in the form of cash if the employee meets or exceeds the target.
  • Reduced Risk and Liability: Employee leasing allows to reduce risk and liability for the parent company, since most employee leasing companies specialize in a particular niche, such as accounting, internet marketing, medical transcription or graphics design, which assures that experts have been hired from the respective areas. These employee leasing companies also have account managers, trainers and quality assurance specialists who support the leased staff. These key people help your leased personnel perform the assigned tasks to the best of his ability through training, feedback, progress reports and even answering whatever work-related questions you may have concerning your leased staff.
  • Avoidance of Paperwork: Many employers feel overburdened by the amount of paperwork involved in recruiting and retaining the employees hence much of this paperwork is avoided when the employees are leased. The leasing company is supposed to manage all the various records and other paper works for the leased employees.
  • Avoidance of Legal Formalities: The parent company is not required to maintain the legal formalities such as creation of PF account, ESI facilities, Payment of Gratuity, annual and monthly returns payment, maintaining the records for the labour laws. All these complexities are managed by the leasing company or the outsourced vendor.
  • No “Audit Stress”: Because the leasing company handles the paperwork, the client does not have to be concerned with reporting payrolls properly to their workers’ compensation insurer, because their “insurer” is already taking care of this, internally.
  • Maintain union-free status: The parent organisation need to bother about the labor unions with regards to the leased employees since the outsourced vendor or the leasing company is the primary employer; it would be the target of any unionization effort.

Moon lighting:

  • Moonlighting simply means working at many jobs or running one’s own business in addition to a primary job. Beside a primary job, many people search out for another part time option for meeting their financial needs.
  • Many companies have adopted this policy as moonlighting can have an adverse effect on employees’ performance in their primary job. Employees are not able to perform well in their primary job.

Basic moonlighting policies contain three statements:

  • Interference with the primary job: from this an employer will make sure that an employee will treat their work as first priority.
  • Conflict of interest: This policy helps an employer to ensure that employees don’t start working for his competitors while they’re working for him.
  • Approval of the additional employment: According to this clause, employer makes sure that his approval is important for an employee who is willing for another outside employment.

 Prohibition of Moon Lighting:

  • Employers are free to implement their own policies on employee moonlighting as there is no specific government laws that prohibits employees from simultaneously working for more than one company.

Dual career group

Dual career group represent the pair of young professionals both husband and wife. Dual career group can be defined as a marital couple where both partners are working professionals. In other words both heads of household pursue careers and at the same time maintain a family life together. Dual career group helps in achieving the psychological as well as financial satisfactions.

Dual Career Groups enjoy certain benefits too. Some of the advantages of Dual Career Group are as follows:

  • More committed to work and their personal growth as well
  • High economic rewards
  • Better social status & prestige
  • Provides economic freedom
  • Both the parties maintain their independent lifestyles
  • High levels of career responsibility
  • Personal investment of time and energy
  • Increased career opportunities for the couple
  • Professional autonomy
  • Increased independence due to their lifestyle
  • Increased appreciation of time together because the minimum time that they get to spend together is precious
  • Decreased focus on disagreements since both of them remain busy
  • Decreased frequency of arguments since the couple don’t get time to spend together

Flexi time and its importance in an organization:

  • Flextime means an employee is allowed to work according to his interest. He/she can select the hours he or she will work. In a flextime work schedule, an employee is required to work a specific number of hours in a day, week or month, but can set the start and end times of those hours. Flexible working relates to an organization’s working arrangements in terms of working time, working location and the pattern of working.

Telecommuting: Telecommuting is a work arrangement where the employees do not commute to a central place of work but works from home, making use of the Internet, email and the telephone. It is a flexible work facility availed to the employees.

Flexi work: Flexi work is a program which allows an employee to handle different type of work in various departments of the organization in systematic way. For example, an employee is selected as a recruiter for the organization, and after few months tenure he will be allowed to expand his work in payroll also.

Flexi work helps an organization to increase it productivity as the employee is more satisfied. It increased employee morale, engagement, and commitment to the organization as a result absenteeism and tardiness are reduced. Job skills of the employee are increased. It also inculcates the feeling of belongingness in the employee. Employee is able to explore more job responsibilities and hence his commitment is increased.

Advantages of Flexible Timing Concept in organisations:

  • This concept is introduced in order to suit the convenience of the workers without affecting the organizational functioning. It provides the flexibility to meet family needs, personal obligations, and life responsibilities conveniently.
  • It also helps in increasing productivity of the employee.
  • Increased employee morale, engagement, and commitment to the organization.
  • It helps an employee to maintain a better work life balance
  • Allows people to work when they accomplish most, feel freshest, and enjoy working. (e.g. morning person vs. night person).
  • It helps in decreasing absenteeism.
  • Reduced consumption of employee commuting time and fuel costs.
  • Avoids traffic and the stresses of commuting during rush hours.
  • It helps to main employee wellness
  • Reduces the real estate cost and operating costs too
  • Results reduction in employee turnover & increase in morale.
  • Apart from this, it will decrease the overhead costs.
  • More women workforce can join and continue their work even after child birth.
  • Develops image as an employer of choice with family friendly flexible work schedules.

Disadvantages of Flexible Timing:

  • Not suitable for all types of organisations. For example a manufacturing unit /business that is only open from 9 a.m. to 5 p.m. each day provides little room for an alternative work schedule or for an organisation where employees need to be available for the customer.
  • Scheduling meetings with flextime employees is also difficult.
  • Supervisors who manage flextime employees might end up working during different hours of the day, which can lead to communication problems.
  • Flexible work success requires an extra layer of collaboration, coordination and communication that that needs to be managed and initiated.
  • Not suitable to for the beginners who needs continuous support and guidance from the supervisor

Employee proxy:

Employee proxy is a means of allowing an employee to authorize to work on the behalf of another employee in all or part of their account. This is done when an employee will be unavailable or absent, and some of his work are due, so he can assign a proxy to complete the work on his behalf. In other words, an employee proxy is practice where an employee works on someone else’s behalf. One or more Proxies can be assigned to a single account, and one employee can be assigned as a Proxy for several accounts.

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