Page 273 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Mangement

Notes Our emotions are greatly related to our work performance. We need improve upon our
emotional quotient for professional effectiveness.
Questions

1. Analyze the case and interpret it.
2. Write down the case facts.

15.4 Summary

 Shortage of critical skills is now a global phenomena. While for the developed countries,
this is primarily because of aging population, for developing countries like India, the
problem is absence of proper initiative at the national level. Another important aspect
which deserve attention of HRM is demographic change process. For developed countries,
the problem is aging populations, but for a developing country like India, the problem is
just reverse. Our working population is increasing at the annual rate of 1.09 per cent. By
the year 2015, we will have more population in working age group (15-64 years), which
would be 66.7 per cent of total population against the present rate of 61.2 per cent. Therefore,
we need to concentrate on human resource development in a planned manner, duly
identifying the skill requirement. The increase of global job mobility, recruiting competent
people is also increasingly becoming difficult. The problem is more acute in India.
Therefore by creating an enabling culture, organisations are also required to work out a
retention strategy for the existing skilled manpower. Similarly to attract talent,
organisations need to focus on compensation strategy with enabling work culture.
Fortunately, multi-skill development, even though considered globally not very successful
in other countries and even at times counter productive to them, for India it is very
successful for its obvious root to our age-old social stratification theory. Role of HRM is
now all the more important. The revised Quality Management Standard ISO 9001 and ISO
9004 of 2000 focussed more on people-centric organisation. We will discuss its features in
brief and then delineate how it influences HR issues in an organisation. Another important
emerging HR issue is to build organization in line with capability profile.

 Competencies are attributes, some professional skills, or a combination of skills and
knowledge and behaviours. Competency models suggest integration of business plan of
the company with selecting the right individual for the job.
 To leapfrog ahead of competition in this world of uncertainty, corporate world is
experimenting with one after another processes. From 'Conformance to Standards' to
achieve total quality, the focus has now been shifted to add economic value and practical
utility to both the organisation and the customer. Higher Sigma values indicate better
quality products and lower sigma values represent less quality products. At six sigma
level, products are virtually defect free, i.e., only 3.4 Defects Per Million Opportunities
(DPMO).
 Innovation is a new technique or idea encompassing product/services, process, managerial
styles and even organisational structure. Supply Chain Management (SCM), Business
Process Outsourcing (BPO), Flexible Manufacturing Systems (FMS), Product/Service
customisation, strategic backward or forward integration, synergy through merger or
acquisition, alliances or collaboration, organisational re-engineering TQM or Six Sigma
Practices, new work culture as facilitator of organisational change or any R&D initiative
for value addition, which broadly encompasses innovation; all stem from customers'
explicit or implicit needs.
 A creative process is a balance of imagination and analysis. It involves idea generation,
analysis and evaluation.

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