Human Resource Audit - Meaning,

Phases and its Advantages

Human Resource Audit is a comprehensive method of objective and
systematic verification of current practices, documentation, policies
and procedures prevalent in the HR system of the organization. An
effective HR audit helps in identifying the need for improvement and
enhancement of the HR function. It also guides the organization in
maintaining compliance with ever-changing rules and regulations. HR audit,
thus, helps in analyzing the gap between ‘what is the current HR function’
and ‘what should be/could be the best possible HR function’ in the
organization.
Though HR auditing is not mandatory like financial auditing, yet,
organizations these days are opting for regular HR audits in order to
examine the existing HR system in line with the organizations policies,
strategies and objectives, and legal requirements. HR auditor can be
internal or external to the organization. Generally, HR consulting firms
render the service of external HR auditors.
It is necessary for the top management to establish the terms and scope of
the audit clearly before the external firm to make the audit successful. This
includes defining the exact purpose of audit, viz. examining compliance
with legal requirements and organization’s policies, identifying problem
areas to avoid crisis situation with appropriate planning, analyzing ways to
better serve the needs of relevant parties – employees, partners or society,
measuring the work processes, seeking HR related opportunities available
within the organization, dealing with situation of merger and acquisitions,
etc.
Primary components of the HR system which are generally audited include
– documentation, job descriptions, personnel policies, legal policies,
recruitment and selection, training and development, compensation and
employee benefit system, career management, employee relations,
performance measurement and evaluation process, termination, key
performance indicators, and HR Information Systems (HRIS).
The entire process of HR auditing is broadly segmented in following
phases ֫ pre-audit information, on-site review, records review, and
audit report.
The first three phases involve extensive collection of quantitative as well as
qualitative information. The method for collection of information depends
upon the size of the target audience, availability of time and type of data to
be collected. The pre-audit information phase includes a review of the
organization’s policies, HR manuals, employee handbooks, reports, etc.
which form the basis of working in the organization. The next phase of on-
site review, involves questionnaires, interviews, observation, informal
discussions, surveys, or a combination of such methods to get the
necessary inputs from the members of the organization. The records
review phase requires detailed scanning of current HR records, employees’
files, employee absenteeism and turnover statistics, notices, compensation
claims, performance assessments, etc.
Utilizing the data so collected, the HR checklist is completed which is the
widely used method for carrying out HR audit. In the checklist method, a list
of all the system particulars under audit, viz. the policies, procedures, or
practices, is created in a sequential manner. Against each particular item,
the actual practice as followed by the organization is mentioned. The
defined practice and the actual practice are then compared to determine
compliance between the two as well as analyzing the deviation from
compliance. On the basis of this analysis, the final audit report is complied
with appropriate conclusions and recommendations highlighting the
strengths and weaknesses of the HR function along with the necessary
improvements as required.
HR audit, thus, contributes towards the best possible use of internal
resources and maximizing the effectiveness of human capital in the
organization. At the same time, it is useful in streamlining the HR
processes and practices with the industry best practices and standards.

HRM: Hiring in the Shadow of

Stagnating Growth
How the times have changed for potential recruits

There was a time in the late 1990s and early 2000s when the software
companies were hiring anyone with some basic computer skills. A popular
joke that did the rounds was about a leading software company having the
message of “Trespassers would be recruited”. Such was the demand for
software professionals that graduate from all fields were eager to join the
bandwagon. The situation now is completely different with stringent entry
norms, raising the skills bar, and paying the minimum salaries instead of
large pay packets and associated benefits.
Indeed, there is a sea change from the time when candidates used to
take calls from other companies when the interview for a particular
company was going on. This is an indication of the change from the
exuberant times in the 1990s and the early 2000s to the present where the
overall mood is of stagnation and low growth.
Hiring Strategies in a Low Growth Economy

The hiring strategies have similarly changed with the change in the
economic scenario. Earlier, the HR function used to be given a target of the
number of employees to be recruited in a specified period and their
performance and the bonuses were measured in terms of how well they
met these targets. The present scenario is one where the HR function is
given qualitative limits instead of quantitative limits. What this means is that
quality matters more than numbers and companies are no longer tolerating
low skilled or low quality candidates. This has increased the pressure on
both the recruiters as well as the HR functions. Whereas in earlier years,
the pressure was on finding the high number of people required, now the
pressure is on finding the right candidate.
Some Strategies for fresh graduates

These trends have implications for those who are graduating now and
those who have graduated in the last couple of years. The best bet even
now remains campus interviews and targeted placements as these
avenues of recruitment are still numbers driven. The other aspect is that
the fresh graduates have to invest their time and effort in upgrading their
skills and learning more skills as that would make them stand out from the
competition. The key aspect here is that one must be distinctive in order to
score over the competition and as the hiring now is tougher and based on
finding the fit between the employee and the role, it is advisable to study
the requirements of the role thoroughly and then prepare for the test and
the interview accordingly.
Closing Thoughts

Finally, when times are tough, the tough get going and so, the hiring of
those with mental toughness and the ability to work under pressure is the
norm. Apart from this, the fact that the hiring is more location based
because of various factors means that proximity to the major cities would
be an added advantage. The recent encouragement of the development of
Tier Two cities means that candidates who are not near to the cities can
still benefit if they are located in these up and coming cities.

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Similar Articles Under - Human Resource Management

 OSHA Safety Manual

 HR Challenges
 Human Resource Audit
 The Challenges of Managing Attrition
 Employee Separation Process

of Managing Attrition in
Contemporary Organizations
The Reasons for Attrition
In recent months, there has been a spate of news items about how attrition is taking its toll on many
organizations in Asia and especially in the IT sector in India. Whereas in the west, because of the
recession and the gloomy economic conditions, attrition is no longer an issue and instead, layoffs
are the order of the day, in relatively better performing Asian countries, attrition has come back to
haunt the companies. There are many reasons for attrition and usually research has shown
that the most cited reason is that the employee is unable to get on with his or her manager.
The adage that employees leave managers rather than organizations is a favorite catchphrase
among management experts and organizational behavior theorists. Having said that, it must be
remembered that attrition is also because of other factors like employees being unhappy with their
salary or the raise that they get after the appraisal period. Further, attrition can also be because
employees perceive that the current organization is not doing well and hence, they are on the
lookout for better performing peers and competitors. Apart from this, attrition is also because
employees find jobs in other companies that are more fulfilling and match their skill sets and profiles.

The Red Lists and Risk Management

After analyzing the reasons for attrition, it is time to look at how companies and the HR managers
can manage attrition. In many organizations, managers are asked to identify potential cases of
attrition before the employee actually puts in his or her papers. For instance, many multinationals
have the practice of asking their managers to prepare lists of potential employees who are likely to
quit. This “red list” is then sent to the managers’ supervisor and the HR manager so that when the
employee actually quits or even does not quit, the organization is prepared for the quitting event or
counseling the employee against quitting. The latter scenario happens when the employee is
deemed valuable to the organization and the manager identifies such attrition as being a loss to the
company. Further, attrition is also managed by the HR department organizing periodic one-one
sessions with the middle management and the managers having the same one-one session with
their employees. The rationale for such sessions is that the employees would vent their frustrations
or lack of comfort with the manager or with the organization and hence, ways and means can be
found to address the employees’ concerns.

Some Real World Case Studies

Attrition has become a challenge for companies like the Indian IT major, Infosys that has seen
unprecedented attrition among its employees in recent months. The situation has deteriorated to the
extent that the company is having to address investor and analyst queries about this issue and has
had to come up with a plan to tackle the same. The point here is that attrition in well-known
companies affects their brand value and their brand image and considering the fact that companies
like Microsoft and Unilever as well as P&G are respected globally for their HR practices, attrition in
these companies dents the carefully crafted image of being people friendly. This is the reason why
the blue chip companies take attrition seriously and to the point where Steve Balmer (the former
head of Microsoft) is reported to have gone through all the exit interview forms of the employees.

Concluding Thoughts
Finally, attrition is also economically damaging to the organizations as the replacement employees
have to be hired at a cost and trained again at a cost. Further, losing employees who are well versed
with the organizational culture can mean a loss of valuable resources that lead to a situation where
the organization stands to miss the potential value adding activities of the employees. It is for this
reason that HR managers and organizations take attrition seriously and consider ways and means to
curb the same.

 HR Challenges
 Human Resource Audit
 Hiring in Shadow of Stagnating Growth
 Employee Separation Process
 Tips for Pursuing a Career in HRM
  

Human Resource Management

 H R Management - Introduction
 Importance of HRM
 Scope of HRM
 Various Processes in HRM
 What is Human Resource Planning ?
 The HRM Function
 Functions of a Human Resource Manager
 Staffing Role of the HR Manager
 Role of HRM in Leadership Development
 Role of HR in People Empowerment
 Talent Management and HRM
 Management of Contractors
 Performance Management as a HR Management Concept
 Successful Performance Management
 Hiring Strategies
 Social Media Profiles for Hiring Decisions
 Importance of Background Checks
 Retention Strategies
 Strategic HRM
 Global HRM
 Personnel Management vs HRM
 Managing Employee Performance
 Performance Appraisal Process
 Performance Appraisal Interview
 Managing Employee Relations
 Employee Rewards and Recognition
 Variable Pay
 Diversity in Organizations
 Managing Workforce Diversity
 Workplace Health and Safety
 Workplace Safety Programs
 OSHA Safety Manual
 HR Challenges
 Human Resource Audit
 Hiring in Shadow of Stagnating Growth
 The Challenges of Managing Attrition
 Employee Separation Process
 Tips for Pursuing a Career in HRM
 Role of HRM in Recessionary Times
 People Manager vs. Project Manager
 Use of Contract Staff & Temp Workers
 The Necessity of Drafting Proper and Foolproof Employment Contracts
 Importance of Vacation Planning
 Hiring & Firing of Workers: Perspectives
 What to do if You are Laid Off from Job
 Termination and Outplacement
 Emotional Intelligence for Professionals
 Assigning Key Responsibility Areas (KRAs) to Employees
 Role of HR in Performance Appraisals
 HR Policies and Procedures Manual and Employee Handbook
 Managing Downsizing in Organizations
 Managing Attrition in Organizations
 Rise of the Temp Jobs and the Freelance/Sharing Economy
 What is Blind Hiring and Its Implications for the HR Profession
 How Human Resource Managers should Manage Ethical Issues and Ensure Compliance ?
 Issues Related to Human Resource Management in the Hospitality Sector
 Human Resource Management in the Times of Emerging Digital Economy
 Human Resource Management in the Age of Acceleration
 How to Manage Star Performers and High Achievers
 Actualizing a High Trust Organization
 HRM Strategies for an Increasingly Complex, Uncertain, and Volatile World
 How Human Resource Managers can deal with Difficult Employees
 Why Human Resource Management Must Change for the Coming Robotics Revolution
 How Silicon Valley Firms are Implementing Innovative Human Resources Policies
 Effective HRM Strategies to Smoothen and Sweeten the Downsizing and the Layoff Process
 How HR (Human Resources) Function Can Save Time by Automating Routine Tasks
 How HR Managers Can Help Employees Avoid Burnout and Manage Stress
 Human Resource Management Strategies to Diversify the Workforce
 What is an HR Scorecard and How it Helps Contemporary Organizations?
 How Using the HR Scorecard Creates Long Term Value for Organizations
 How Technology Can Help in Collection of Metrics for the HR Scorecard
 HR Scorecard: Aligning People, Strategy, and Performance
 How Using the HR Scorecard Can Address Organizational Dysfunction
 Human Resource Management Best Practices in Contemporary Organizations
 Using HR Scorecard with Analytics to Actualize Next Generation Performance
 How the HR Scorecard Helps Actualize Cross Functional Excellence in Organizations
 How the HR Scorecard can Help Gig Economy Firms to Manage Freelancers Better
 How the HR Scorecard Helps Organizations to Actualize Change Management Initiatives
 How Innovative HR Policies boost Employee Productivity and Organizational Effectiveness
 Changing Recruitment Strategies of Corporates and Tips to Get Hired
 What is Social Mirror and How it Determines Individual Success in Career and Life
 What Do Hiring Managers Look for in Applicants when Making Hiring Decisions
 Why the Future of Work is Virtual, Gig Based, and Cognitive and its implications for HR
 Why HR Managers Must Enforce Data Security and Information Protection Policies
 Why Corporates Must Have Wellness Managers as well as HR Managers
 What is Employee Ghosting and How HR Managers and Organizations Can Deal with it
 The Increasing Popularity of Corporate Wellness Programs and What HR Can Do
 What Experienced HR Managers Watch Out For When Recruiting Candidates
 The Importance of Data Driven Analytics and HR Scorecard Dashboards for Corporates
 What Hiring Managers Look Out For During the Recruitment and Selection Process?
 The Growing Popularity of Flex Work and HR Strategies to Deal with It
  What the Case of Amazon�s AI Powered Recruitment Tool Means for Other Corporates
 Pay Cuts vs. Lay-Offs
 Game Changers or Slave Drivers? Human Resource Managers in the Gig Economy Firms
 Preparing for the Workplace of Tomorrow: Some HRM Strategies for the Digital Age
 The Managerial Challenge: Using Early Warning Systems to Spot Signs of Trouble
 Top HR Trends for 2019: Technological Convergence and Smarter HR Management
 How Should HR Managers Deal With Occupational Hazards at the Workplace?
 How HR Managers Must Deal with Legal and Regulatory Challenges in Organizations
 How HR Managers Must Address the Pay Disparities and Pay Gaps in Organizations
 How HR Managers can Make the On-boarding Process more Pleasant and Effective
 Why HR Managers Must Treat the Exit Interviews as Feedback and Learning Experiences
 The Importance of Due Diligence in Human Resource Management Processes
 The HRM Challenge: Managing the Millennials Entering the Workforce
 The Future of Human Resource Management in an Agile Driven and Automated World
 The What, Why, and How of the Difficult Decision to Fire Employees in Organizations
 How Using Blockchain Can Transform the HR Function and Change the Way it Works
 Corporate Corruption and the HRM Function: Legal, Ethical, and Moral Perspectives
 How Predictive Analytics Helps HR Managers Make Better Hiring Decisions
 Skills that the HR Professionals Need to have to be Successful in the Present Times
 The HRM Challenge: Promoting Diversity and Inclusivity in Illiberal and Charged Times
 Role and the Importance of Human Resource Managers in Recessionary Times
 How Blockchain can Help Human Resource Managers in Efficient Management
 HR Professionals and the Law: The What, Why, and How of Awareness of Laws
 Is the European Model of HRM Better than the American Model? Some Perspectives
 The Staffing Challenge in MNCs: Expatriates or Locals in Overseas Locations
 The HRM Challenge: Managing Opinionated Employees in Polarized and Divisive Times
 Why Auditing of the HR Function is Necessary and Important in the Present Times
 The Role of the HR in How Corporates Can Win (and Lose) the Global Race for Talent
 The Changing Nature of Employment and Impact on Professionals and Societies
 Fixing Fraud and Biases in the Recruitment Process and Making it Fair and Transparent

Employee Separation Process

Employee Separation is the process of ensuring that an employee who quits the company is exited
in a structured and orderly manner. The process of employee separation is taken quite seriously by
many firms and there is a dedicated department to handle employee exits from the company. In this
article we discuss the process of employee separation and the differences between voluntary and
involuntary exits.
Voluntary and Involuntary Separation
Employee separation can be voluntary as well as involuntary. The former is when the employee
quits the company on his or her own accord. This is the most common form of employee separation
though in these recessionary times, involuntary separation or the act of asking the employee to
leave by management is quite common. This form of employee separation where an employee is
asked to quit is called involuntary separation. The difference in these two forms of separation is that
for voluntary exits, the employee stands to get most of the benefits and perks due to him or her
whereas when an employee is asked to leave, he or she might get a separation package or in
instances where disciplinary or performance related exits take place, the employee might not get
anything at all.

Components of the Employee Separation Process

The employee separation process starts from the time the employee gives notice to his or her
employer about the intention to quit. This is usually called “putting in one’s papers” because in earlier
times, an employee was required to submit a formal resignation letter, though in recent times, this is
being done by email. Once the employee gives notice, all the financial transactions and records of
the employee are “frozen” by the HR department and the employee’s manager is tasked with the
process of ensuring proper handover and closure of work tasks allotted to the employee. Usually,
the notice period ranges from a month to two to three months depending on the level at which the
employee is working. Further, there has to be a well defined handover plan drawn up by the
employee’s manager that covers all aspects of closing out on the work that the employee is
performing.

Participants in the Employee Separation Process

Typically, the employee separation process proceeds along two parallel tracks. One involves the
employee and the manager and is concerned with the handover of work and other tasks. The other
track is by the separations team and deals with the employee benefits accruing as a result of
separation as well as other benefits like PF (Provident Fund), Gratuity (If applicable) etc. The HR
manager is needed at all steps of this process and in the final exit interview that is conducted to
assess the reasons for the employee leaving the company and taking the employee’s views on work
and the company in general as well as any “de-motivating” factors that might have caused the
employee to resign.

Conclusion
In recent years, with the high levels of attrition in the service sector, it has become imperative for
firms to have a structured separation plan for orderly exits of employees. Of course, the concept of
“pink slips” or involuntary exits are another matter altogether and involve some bitterness that results
because of the employee losing his or her job. In conclusion, it is our view that employee
separations must be handled in a professional and mature manner and though attrition is a fact that
concerns everyone in the industry, once an employee decides to leave, the separation must be as
smooth as possible.

Human Resource Management

(HRM) - Definition and Concept
We often hear the term Human Resource Management, Employee Relations and Personnel
Management used in the popular press as well as by Industry experts. Whenever we hear these
terms, we conjure images of efficient managers busily going about their work in glitzy offices.

In this article, we look at the question “what is HRM ?” by giving a broad overview of the topic and
introducing the readers to the practice of HRM in contemporary organizations. Though as with all
popular perceptions, the above imagery has some validity, the fact remains that there is much more
to the field of HRM and despite popular depictions of the same, the “art and science” of HRM is
indeed complex. We have chosen the term “art and science” as HRM is both the art of managing
people by recourse to creative and innovative approaches; it is a science as well because of the
precision and rigorous application of theory that is required.

As outlined above, the process of defining HRM leads us to two different definitions. The first
definition of HRM is that it is the process of managing people in organizations in a structured
and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and
perks setting and management, performance management, change management and taking care of
exits from the company to round off the activities. This is the traditional definition of HRM which
leads some experts to define it as a modern version of the Personnel Management function that was
used earlier.

The second definition of HRM encompasses the management of people in organizations from
a macro perspective i.e. managing people in the form of a collective relationship between
management and employees. This approach focuses on the objectives and outcomes of the HRM
function. What this means is that the HR function in contemporary organizations is concerned with
the notions of people enabling, people development and a focus on making the “employment
relationship” fulfilling for both the management and employees.

These definitions emphasize the difference between Personnel Management as defined in the
second paragraph and human resource management as described in the third paragraph. To put it
in one sentence, personnel management is essentially “workforce” centered whereas human
resource management is “resource” centered. The key difference is HRM in recent times is
about fulfilling management objectives of providing and deploying people and a greater emphasis on
planning, monitoring and control.

Whatever the definition we use the answer to the question as to “what is HRM?” is that it is all about
people in organizations. No wonder that some MNC’s (Multinationals) call the HR managers as
People Managers, People Enablers and the practice as people management. In the 21st century
organizations, the HR manager or the people manager is no longer seen as someone who takes
care of the activities described in the traditional way. In fact, most organizations have different
departments dealing with Staffing, Payroll, and Retention etc. Instead, the HR manager is
responsible for managing employee expectations vis-à-vis the management objectives and
reconciling both to ensure employee fulfillment and realization of management objectives.

In conclusion, this article has briefly touched upon the topic of HRM and served as an introduction to
HRM. We shall touch upon the other topics that this field covers in other articles.

Following are the important concepts of Human Resource Management:

 Importance of HRM
 Scope of HRM
 Various Processes in HRM
 What is Human Resource Planning ?
 The HRM Function
  Functions of a Human Resource Manager
 Staffing Role of the HR Manager
 Role of HRM in Leadership Development
 Role of HR in People Empowerment
 Talent Management and HRM
 Performance Management as a HR Management Concept
 Hiring Strategies
 Retention Strategies

Scope of Human Resource

Management
Human resources are undoubtedly the key resources in an organization,
the easiest and the most difficult to manage! The objectives of the HRM
span right from the manpower needs assessment to management and
retention of the same. To this effect Human resource management is
responsible for effective designing and implementation of various policies,
procedures and programs. It is all about developing and managing
knowledge, skills, creativity, aptitude and talent and using them optimally.
Human Resource Management is not just limited to manage and optimally
exploit human intellect. It also focuses on managing physical and emotional
capital of employees. Considering the intricacies involved, the scope of
HRM is widening with every passing day. It covers but is not limited to HR
planning, hiring (recruitment and selection), training and development,
payroll management, rewards and recognitions, Industrial relations,
grievance handling, legal procedures etc. In other words, we can say that
it’s about developing and managing harmonious relationships at workplace
and striking a balance between organizational goals and individual goals.
The scope of HRM is extensive and far-reaching. Therefore, it is very
difficult to define it concisely. However, we may classify the same under
following heads:

 HRM in Personnel Management: This is typically direct manpower

management that involves manpower planning, hiring (recruitment
and selection), training and development, induction and orientation,
transfer, promotion, compensation, layoff and retrenchment,
employee productivity. The overall objective here is to ascertain
 individual growth, development and effectiveness which indirectly
contribute to organizational development.

It also includes performance appraisal, developing new skills,

disbursement of wages, incentives, allowances, traveling policies and
procedures and other related courses of actions.

 HRM in Employee Welfare: This particular aspect of HRM deals with

working conditions and amenities at workplace. This includes a wide
array of responsibilities and services such as safety services, health
services, welfare funds, social security and medical services. It also
covers appointment of safety officers, making the environment worth
working, eliminating workplace hazards, support by top management,
job safety, safeguarding machinery, cleanliness, proper ventilation
and lighting, sanitation, medical care, sickness benefits, employment
injury benefits, personal injury benefits, maternity benefits,
unemployment benefits and family benefits.

It also relates to supervision, employee counseling, establishing

harmonious relationships with employees, education and training.
Employee welfare is about determining employees’ real needs and
fulfilling them with active participation of both management and
employees. In addition to this, it also takes care of canteen facilities,
cr�ches, rest and lunch rooms, housing, transport, medical
assistance, education, health and safety, recreation facilities, etc.

 HRM in Industrial Relations: Since it is a highly sensitive area, it

needs careful interactions with labor or employee unions, addressing
their grievances and settling the disputes effectively in order to
maintain peace and harmony in the organization. It is the art and
science of understanding the employment (union-management)
relations, joint consultation, disciplinary procedures, solving problems
with mutual efforts, understanding human behavior and maintaining
work relations, collective bargaining and settlement of disputes.

The main aim is to safeguarding the interest of employees by

securing the highest level of understanding to the extent that does not
leave a negative impact on organization. It is about establishing,
growing and promoting industrial democracy to safeguard the
interests of both employees and management.
The scope of HRM is extremely wide, thus, can not be written concisely.
However, for the sake of convenience and developing understanding about
the subject, we divide it in three categories mentioned above.

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Similar Articles Under - Human Resource Management

 H R Management - Introduction
 Importance of HRM
 Various Processes in HRM
 What is Human Resource Planning ?
 The HRM Function
 Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and

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Human Resource Management

 H R Management - Introduction
 Importance of HRM
 Scope of HRM
 Various Processes in HRM
 What is Human Resource Planning ?
 The HRM Function
 Functions of a Human Resource Manager
 Staffing Role of the HR Manager
 Role of HRM in Leadership Development
 Role of HR in People Empowerment
 Talent Management and HRM
 Management of Contractors
 Performance Management as a HR Management Concept
 Successful Performance Management
 Hiring Strategies
 Social Media Profiles for Hiring Decisions
 Importance of Background Checks
 Retention Strategies
 Strategic HRM
 Global HRM
 Personnel Management vs HRM
 Managing Employee Performance
 Performance Appraisal Process
 Performance Appraisal Interview
 Managing Employee Relations
 Employee Rewards and Recognition
 Variable Pay
 Diversity in Organizations
 Managing Workforce Diversity
 Workplace Health and Safety
 Workplace Safety Programs
 OSHA Safety Manual
 HR Challenges
 Human Resource Audit
 Hiring in Shadow of Stagnating Growth
 The Challenges of Managing Attrition
 Employee Separation Process
 Tips for Pursuing a Career in HRM
 Role of HRM in Recessionary Times
 People Manager vs. Project Manager
 Use of Contract Staff & Temp Workers
 The Necessity of Drafting Proper and Foolproof Employment Contracts
 Importance of Vacation Planning
 Hiring & Firing of Workers: Perspectives
 What to do if You are Laid Off from Job
 Termination and Outplacement
 Emotional Intelligence for Professionals
 Assigning Key Responsibility Areas (KRAs) to Employees
 Role of HR in Performance Appraisals
 HR Policies and Procedures Manual and Employee Handbook
 Managing Downsizing in Organizations
 Managing Attrition in Organizations
 Rise of the Temp Jobs and the Freelance/Sharing Economy
 What is Blind Hiring and Its Implications for the HR Profession
 How Human Resource Managers should Manage Ethical Issues and Ensure Compliance ?
 Issues Related to Human Resource Management in the Hospitality Sector
 Human Resource Management in the Times of Emerging Digital Economy
 Human Resource Management in the Age of Acceleration
 How to Manage Star Performers and High Achievers
 Actualizing a High Trust Organization
 HRM Strategies for an Increasingly Complex, Uncertain, and Volatile World
 How Human Resource Managers can deal with Difficult Employees
 Why Human Resource Management Must Change for the Coming Robotics Revolution
 How Silicon Valley Firms are Implementing Innovative Human Resources Policies
 Effective HRM Strategies to Smoothen and Sweeten the Downsizing and the Layoff Process
 How HR (Human Resources) Function Can Save Time by Automating Routine Tasks
 How HR Managers Can Help Employees Avoid Burnout and Manage Stress
 Human Resource Management Strategies to Diversify the Workforce
 What is an HR Scorecard and How it Helps Contemporary Organizations?
 How Using the HR Scorecard Creates Long Term Value for Organizations
 How Technology Can Help in Collection of Metrics for the HR Scorecard
 HR Scorecard: Aligning People, Strategy, and Performance
 How Using the HR Scorecard Can Address Organizational Dysfunction
 Human Resource Management Best Practices in Contemporary Organizations
 Using HR Scorecard with Analytics to Actualize Next Generation Performance
 How the HR Scorecard Helps Actualize Cross Functional Excellence in Organizations
 How the HR Scorecard can Help Gig Economy Firms to Manage Freelancers Better
 How the HR Scorecard Helps Organizations to Actualize Change Management Initiatives
 How Innovative HR Policies boost Employee Productivity and Organizational Effectiveness
 Changing Recruitment Strategies of Corporates and Tips to Get Hired
 What is Social Mirror and How it Determines Individual Success in Career and Life
 What Do Hiring Managers Look for in Applicants when Making Hiring Decisions
 Why the Future of Work is Virtual, Gig Based, and Cognitive and its implications for HR
 Why HR Managers Must Enforce Data Security and Information Protection Policies
 Why Corporates Must Have Wellness Managers as well as HR Managers
 What is Employee Ghosting and How HR Managers and Organizations Can Deal with it
 The Increasing Popularity of Corporate Wellness Programs and What HR Can Do
 What Experienced HR Managers Watch Out For When Recruiting Candidates
 The Importance of Data Driven Analytics and HR Scorecard Dashboards for Corporates
 What Hiring Managers Look Out For During the Recruitment and Selection Process?
 The Growing Popularity of Flex Work and HR Strategies to Deal with It
  What the Case of Amazon�s AI Powered Recruitment Tool Means for Other Corporates
 Pay Cuts vs. Lay-Offs
 Game Changers or Slave Drivers? Human Resource Managers in the Gig Economy Firms
 Preparing for the Workplace of Tomorrow: Some HRM Strategies for the Digital Age
 The Managerial Challenge: Using Early Warning Systems to Spot Signs of Trouble
 Top HR Trends for 2019: Technological Convergence and Smarter HR Management
 How Should HR Managers Deal With Occupational Hazards at the Workplace?
 How HR Managers Must Deal with Legal and Regulatory Challenges in Organizations
 How HR Managers Must Address the Pay Disparities and Pay Gaps in Organizations
 How HR Managers can Make the On-boarding Process more Pleasant and Effective
 Why HR Managers Must Treat the Exit Interviews as Feedback and Learning Experiences
 The Importance of Due Diligence in Human Resource Management Processes
 The HRM Challenge: Managing the Millennials Entering the Workforce
 The Future of Human Resource Management in an Agile Driven and Automated World
 The What, Why, and How of the Difficult Decision to Fire Employees in Organizations
 How Using Blockchain Can Transform the HR Function and Change the Way it Works
 Corporate Corruption and the HRM Function: Legal, Ethical, and Moral Perspectives
 How Predictive Analytics Helps HR Managers Make Better Hiring Decisions
 Skills that the HR Professionals Need to have to be Successful in the Present Times
 The HRM Challenge: Promoting Diversity and Inclusivity in Illiberal and Charged Times
 Role and the Importance of Human Resource Managers in Recessionary Times
 How Blockchain can Help Human Resource Managers in Efficient Management
 HR Professionals and the Law: The What, Why, and How of Awareness of Laws
 Is the European Model of HRM Better than the American Model? Some Perspectives
 The Staffing Challenge in MNCs: Expatriates or Locals in Overseas Locations
 The HRM Challenge: Managing Opinionated Employees in Polarized and Divisive Times
 Why Auditing of the HR Function is Necessary and Important in the Present Times
 The Role of the HR in How Corporates Can Win (and Lose) the Global Race for Talent
 The Changing Nature of Employment and Impact on Professionals and Societies
 Fixing Fraud and Biases in the Recruitment Process and Making it Fair and Transparent

Processes in Human Resource

Management
Each organization works towards the realization of one vision. The same is
achieved by formulation of certain strategies and execution of the same,
which is done by the HR department. At the base of this strategy
formulation lie various processes and the effectiveness of the former lies in
the meticulous design of these processes. But what exactly are and entails
these processes? Let’s read further and explore.
The following are the various HR processes:

1. Human resource planning (Recruitment, Selecting, Hiring, Training,

Induction, Orientation, Evaluation, Promotion and Layoff).
2. Employee remuneration and Benefits Administration
3. Performance Management.
4. Employee Relations.

The efficient designing of these processes apart from other things depends
upon the degree of correspondence of each of these. This means that each
process is subservient to other. You start from Human resource Planning
and there is a continual value addition at each step. To exemplify, the PMS
(performance Management System) of an organization like Infosys would
different from an organization like Walmart. Lets study each process
separately.
Human Resource Planning: Generally, we consider Human Resource
Planning as the process of people forecasting. Right but incomplete! It also
involves the processes of Evaluation, Promotion and Layoff.

 Recruitment: It aims at attracting applicants that match a certain Job

criteria.
 Selection: The next level of filtration. Aims at short listing candidates
who are the nearest match in terms qualifications, expertise and
potential for a certain job.
 Hiring: Deciding upon the final candidate who gets the job.
 Training and Development: Those processes that work on an
employee onboard for his skills and abilities upgradation.

Employee Remuneration and Benefits Administration: The process

involves deciding upon salaries and wages, Incentives, Fringe Benefits and
Perquisites etc. Money is the prime motivator in any job and therefore the
importance of this process. Performing employees seek raises, better
salaries and bonuses.
 Performance Management: It is meant to help the organization train,
motivate and reward workers. It is also meant to ensure that the
organizational goals are met with efficiency. The process not only includes
the employees but can also be for a department, product, service or
customer process; all towards enhancing or adding value to them.

Nowadays there is an automated performance management system (PMS)

that carries all the information to help managers evaluate the performance
of the employees and assess them accordingly on their training and
development needs.

Employee Relations: Employee retention is a nuisance with organizations

especially in industries that are hugely competitive in nature. Though there
are myriad factors that motivate an individual to stick to or leave an
organization, but certainly few are under our control.

Employee relations include Labor Law and Relations, Working

Environment, Employee heath and safety, Employee- Employee conflict
management, Employee- Employee Conflict Management, Quality of Work
Life, Workers Compensation, Employee Wellness and assistance
programs, Counseling for occupational stress. All these are critical to
employee retention apart from the money which is only a hygiene factor.
All processes are integral to the survival and success of HR strategies and
no single process can work in isolation; there has to be a high level of
conformity and cohesiveness between the same.

1. What is Human Resource

Planning ?
Human Resource Planning (HRP) is the process of forecasting the
future human resource requirements of the organization and
determining as to how the existing human resource capacity of the
organization can be utilized to fulfill these requirements. It, thus,
focuses on the basic economic concept of demand and supply in context to
the human resource capacity of the organization.
It is the HRP process which helps the management of the organization in
meeting the future demand of human resource in the organization with the
supply of the appropriate people in appropriate numbers at the appropriate
time and place. Further, it is only after proper analysis of the HR
requirements can the process of recruitment and selection be initiated by
the management. Also, HRP is essential in successfully achieving the
strategies and objectives of organization. In fact, with the element of
strategies and long term objectives of the organization being widely
associated with human resource planning these days, HR Planning has
now became Strategic HR Planning.
Though, HR Planning may sound quite simple a process of managing the
numbers in terms of human resource requirement of the organization, yet,
the actual activity may involve the HR manager to face many roadblocks
owing to the effect of the current workforce in the organization, pressure to
meet the business objectives and prevailing workforce market condition.
HR Planning, thus, help the organization in many ways as follows:

 HR managers are in a stage of anticipating the workforce

requirements rather than getting surprised by the change of events
 Prevent the business from falling into the trap of shifting workforce
market, a common concern among all industries and sectors
 Work proactively as the expansion in the workforce market is not
always in conjunction with the workforce requirement of the
organization in terms of professional experience, talent needs, skills,
etc.
 Organizations in growth phase may face the challenge of meeting the
need for critical set of skills, competencies and talent to meet their
strategic objectives so they can stand well-prepared to meet the HR
needs
 Considering the organizational goals, HR Planning allows the
identification, selection and development of required talent or
competency within the organization.

It is, therefore, suitable on the part of the organization to opt for HR

Planning to prevent any unnecessary hurdles in its workforce needs. An
HR Consulting Firm can provide the organization with a comprehensive HR
assessment and planning to meet its future requirements in the most cost-
effective and timely manner.
An HR Planning process simply involves the following four broad
steps:

 Current HR Supply: Assessment of the current human resource

availability in the organization is the foremost step in HR Planning. It
includes a comprehensive study of the human resource strength of
the organization in terms of numbers, skills, talents, competencies,
qualifications, experience, age, tenures, performance ratings,
designations, grades, compensations, benefits, etc. At this stage, the
consultants may conduct extensive interviews with the managers to
understand the critical HR issues they face and workforce capabilities
they consider basic or crucial for various business processes.
 Future HR Demand: Analysis of the future workforce requirements of
the business is the second step in HR Planning. All the known HR
variables like attrition, lay-offs, foreseeable vacancies, retirements,
promotions, pre-set transfers, etc. are taken into consideration while
determining future HR demand. Further, certain unknown workforce
variables like competitive factors, resignations, abrupt transfers or
dismissals are also included in the scope of analysis.
 Demand Forecast: Next step is to match the current supply with the
future demand of HR, and create a demand forecast. Here, it is also
essential to understand the business strategy and objectives in the
long run so that the workforce demand forecast is such that it is
aligned to the organizational goals.
 HR Sourcing Strategy and Implementation: After reviewing the
gaps in the HR supply and demand, the HR Consulting Firm develops
plans to meet these gaps as per the demand forecast created by
them. This may include conducting communication programs with
employees, relocation, talent acquisition, recruitment and
outsourcing, talent management, training and coaching, and revision
of policies. The plans are, then, implemented taking into confidence
the mangers so as to make the process of execution smooth and
efficient. Here, it is important to note that all the regulatory and legal
compliances are being followed by the consultants to prevent any
untoward situation coming from the employees.
Hence, a properly conducted process of HR Planning by an HR Consulting
Firm helps the organization in meeting its goals and objectives in timely
manner with the right HR strength in action.

The HRM Function and its Role in

Organizational Processes
The Changing Role of the HR Function
Of all the support functions, the HRM (Human Resource Management) function is a critical
component of any organization. Apart from finance, which serves as the lifeblood of the
organizational support functions, the HRM function more than any other support function, has the
task of ensuring that the organizational policies and procedures are implemented and any
grievances of the employees are taken care of. For instance, it is common for the HRM function in
many organizations to combine hiring, training, providing assistance during appraisals, mentoring
employees, and deciding on pay structures and grades. This means that the HRM function has its
task cut out wherein it has to take care of the “people” side of the organizational processes.
Considering the fact that the ascent of the services sector (IT, Financial Services, BPO) has meant
that people are the key assets for organizations, the importance of the HRM function has grown by
leaps and bounds thanks to the preponderance of the services sector. This has given impetus to
many aspiring HR professionals to try and make a career for themselves in the HR field thanks to
the burgeoning demand for HR professionals.

Change in Conception from Reactive to Proactive

Many people think of the HR manager as someone who attends to complaints from employees,
appears at the time of appraisals, and generally is useful only when there is a genuine need for him
or her. This is the classic old world thinking wherein HR managers were confined to these activities
alone. The reason for such conceptions is that most of us are used to our parents and other older
generation people referring to HR managers as labor officers whose sole function is to take care of
payroll and disputes. However, times have changed and in the recent decades, the HR function
has emerged as a key function in itself wherein the HR professionals are proactive and
preemptive in nature. What this means is that HR managers anticipate the crises and preempt
them from happening instead of waiting for the crisis to appear and then resolve it.

Further, unlike in earlier generations where there were chances of strikes and lockouts of the
organizations in the manufacturing sector, the services sector does not have any place for these and
hence, the role of the HR professionals have evolved to a point where they have moved from
reactive mode to proactive mode. This means that in many multinationals, the HR professionals
regularly have what are known as one-on-ones or individual meetings with the staff to try and
understand their grievances, seek feedback, and overall focus on how to prevent any kind of crisis
from happening.
The HR Professionals and Demand for HR courses
Indeed, apart from hiring, training, and payroll, which still have lot of importance to the HRM,
function, the addition of the activities mentioned above has lent a touch of glamour to the otherwise
staid and dull profession. It is no wonder that in institutes like XLRI have seen a surge in demand for
their courses in HR. Moreover, even in other management institutes, there is an increase in the
number of graduates who are choosing HR as their specialization. All these trends point to the
conclusion that the HR profession is now well sought after and something that is not relegated to the
sidelines.

HR Professionals Have Fun as Well

The changing role of the HRM function is especially visible in the IT and BPO sector where they are
also engaged in organizing offsite events, which are held in a resort or in a hotel and which provide
the employees with a chance to brainstorm about issues in a relaxed and slow manner outside of the
confines of the office. This trend has made the HRM function very busy because a lot of planning
goes into organizing these events and indeed, in multinationals like Fidelity, this is now handled by
dedicated HR staff apart from the regular staff.

Typical Functions of a Human

Resource Manager
Introduction: The Typical Functions of a HR Manager
Until now, we have discussed how the HRM function in organizations works and the role of the
function in organizational processes. We have also discussed the changing nature of the HRM
function in recent years and how with the introduction of enterprise software, an entirely new
dimension has been added to these functions.

This article discusses the typical functions of a HR manager and analyzes how he or she can
make a positive contribution to the organization and add value to the process. First, the HR
manager has to juggle between hiring, training, appraisals, and payroll among other things. This
means that a typical function of the HR manager would encompass the end to end management of
the employee people lifecycle which means that the HR manager would have to take care of
everything that is concerned with the people aspect right from the time the employee enters the
organization till the time the employee quits or retires from the organization. Hence, the lifecycle of
an employee’s time in an organization has to be managed and this means that the HR manager is
responsible for the hiring, training, appraisals, payroll, and exit interviews.

Entry to Exit: Managing the Employee Lifecycle

If we take each of these activities in turn, we find that hiring is done in conjunction with the line
managers who put out their requirements periodically on the kind of recruits they want and the
number of recruits they want. Once the request reaches the HR manager, he or she has to scour the
market for potential recruits. Usually, the HR manager does not personally do this and outsources
this function to a placement consultancy. The next step is the interview stage after the shortlists are
done and this is an activity where the HR manager either delegates the task of assessing the
potential recruits to the staffing team or does the job personally.
In large organizations like Fidelity and Microsoft, there are dedicated teams for each of these
activities and this is something we would be discussing in detail in subsequent articles. After the
interview stage is over, the important task of fixing the salary and benefits of the successful
candidates has to be done. This is usually the time when the HR manager plays a critical role as he
or she has to determine the fit between the role and the candidate and decide on the quantum of
salary and benefits that is appropriate to the role and after examining the budgets for the same.

The Appraisal Process and the Exit Interviews

After these activities, the HR manager is also involved in conducting the last stage of appraisals or
evaluating the appraisals. In recent years, the trend is more towards the latter where the HR
manager in charge of the business unit evaluates the appraisals instead of participating in the
process directly. This is done in a manner to determine the quantum of pay hike or bonuses keeping
in mind the same principles that were discussed in the hiring activity. What this means is that the HR
manager has to work closely with the line managers to get this done.

In many organizations, employees can take their grievances to the HR managers in case they are
not satisfied with their pay hikes or the quantum of benefits. They can also complain against their
managers in a confidential and private manner.

The last activity that the HR manager is involved in is conducting the exit interviews when
employees leave the organizations. This is usually done on the last day of the employee’s stay in the
organization and this process consist of a free and frank discussion on what the employee feels
about the organization and why he or she is leaving the organization. The exit interviews offer
valuable sources of insights into organizational behavior as the employees can vent their feelings on
what works and what does not work in organizations.

Staffing Role of the HR Manager:

Strategic Workforce Planning
Staffing and Recruiting during the Boom Years
One of the key areas that the HRM unit works with is the staffing function. Hiring and on boarding of
employees’ remains a critical activity that many HR managers are yet to master. This is mainly
because of the unevenness of the demand and supply in the market for talent. For instance, during
the heady years of the IT boom in the early years of the last decade, it was common for many
division heads and line managers to walk into the HR manager’s office and give him or her target of
employees to be recruited over the next three months in the quarter.

In the US, the situation was that many HR managers were asked to take in as many H1B or
temporary workers to the country on board to meet the critical shortage in staff. In Asia, because of
this very reason where many techies had headed to the US and Europe, hiring became a challenge
for even the most seasoned HR professionals. The implications for the HR manager are many as his
or her appraisal depends on a number of targets including how many they have recruited over the
last quarter or the year.
Strategies to Deal with Shortage of Talent during the Boom Years
The way to deal with such a situation was to ensure that the number of people being taken in was
based on current and future demand scenarios and identify gaps and surpluses in key skill sets. For
instance, in the US, the shortage of those with Java skills was so huge that anyone with an
elementary knowledge of the skill was immediately taken in the companies. This meant that the HR
unit was simply filling up positions without any strategic planning. Hence, many organizations
realized that hiring people without the requisite skills just to fill up positions would do more harm than
good to the companies and hence, a conscious decision was taken by the HR managers in
conjunction with the line managers to have forecasts of how many employees they would need over
a quarter. The point here is that the constant bickering between the HR managers and the line
managers took a toll on organizational efficiency and hence, this compromise was arrived at wherein
the demand for specific skill sets had to be forecasted by the line managers and the HR managers
would then deal with hiring accordingly.

The third aspect of the staffing and hiring activity is that many HR managers during the boom years
advised the line managers to find employees from other divisions who wanted a change in their job
profiles and roles. This internal filling up of positions by inter-division and intra company movement
was effective in many companies like Fidelity. Further, overtime by key resources and hiring
temporary workers were the norm in many companies. Of course, the overtime work was adequately
compensated and employees who were doing so were given additional benefits.

Staffing Strategies during the Ongoing Recession

With the boom years over, the HR managers in recent years are breathing easy as they no longer
have to run around trying to meet recruitment targets. Of course, the current challenge before the
HR managers to manage the downturn and smoothen the downsizing underway in many
organizations. To ensure these objectives in these economically harsh times, HR managers are
resorting to passive measures as the first line of action wherein they indicate to the employees that
they are on PIP or Performance Improvement Plans and this usually results in natural attrition. Next,
instead of downsizing, the HR managers are reducing recruitment so that they do not have to fire
employees and instead, these employees can be accommodated elsewhere in the organization.
These are some of the aspects of the strategic workplace planning within the hiring and staffing
activity that some respected companies follow.

Role of Human Resource

Management (HRM) in Leadership
Development
Leadership Development in Successful Companies

The previous articles have discussed how the HRM function is now seen as
a critical and crucial component of the organizational support functions. In
particular, we have analyzed how effective people management goes a
long way in ensuring better economic performance. Among the
components of people, management that the HRM function does is the
aspect related to leadership development.
Research into the HRM practices of successful companies has shown that
these companies significantly outperform their peers in terms of economic
profitability by following the leadership development practices discussed in
this article. By successful companies, we mean those companies in the
Fortune 100 list that have managed to retain their position in the firms over
a decade. To put this in perspective, it needs to be remembered that many
companies that were in the Fortune 100 list for a few years failed to retain
their positions in subsequent years and hence, the fact that these
companies have managed to stay in the hunt means that they have
outperformed their peers and competitors.
The Components of Leadership Development

The leadership development programs in these companies follow the

philosophy of grounding them in value, the expected contributions from the
leaders are defined, and the organizational culture geared towards inspiring
leaders. Next, the performance management system in these companies is
tied to the company’s business strategy and it includes talent development
activities and leadership objectives that are articulated clearly and
succinctly. In other words, promotions are based on individual performance
as well as people development activities and these in turn are linked to the
business strategy and objectives.
These companies also have a leadership pipeline, which means that the
leadership development is embedded in their strategic workforce planning
which is comprehensive, and longer term oriented. These companies also
ensure that they divide their workforce into job families and the potential
leaders are identified and groomed for higher roles and responsibilities. In
many of these companies, it is common to find lists of potential leaders
known as high potentials who are earmarked for fast track career
progression based on the organizational assessment of the skills and
capabilities of these leaders. Further, the recruitment and training of new
employees is based on longer-term analysis of demand and supply
patterns, which ensure that newer generation of leaders, are hired into the
company to replace those who have made it to the higher levels.
Collaboration between the HRM Function and Senior Management

The HRM functions in these companies work on a collaborative model with

their potential leaders which means that the job of people development is
not left to the HRM function or the leaders alone. Instead, the potential
leaders are identified and then their performance is linked to the enabling
and empowerment of others to move up the chain. In other words, the
ability to spot talent and identify leaders for the future is done by both the
HRM function and the senior management who work in tandem in this
effort.
Research into these successful companies has shown that the people
management in these companies is world class and the contributing factor
that differentiates these companies from others is that the HRM function
plays a critical role throughout the employee lifecycle and not at the
recruitment and training phase alone. The other factor is that the leaders in
these companies are expected to have skill sets that match the need for
adapting to the challenges of the 21st century business landscape. In other
words, these companies groom the leaders of the future right from the
middle management level.
Closing Thoughts

Finally, leadership is a combination of natural abilities and the

organizational nurturing of the employees with those skills. Hence, this
interplay between nature and nurture is what determines the success or
otherwise of the HRM function and the senior management efforts to
develop leadership in these companies.

Role of HR Manager in People

Enabling and People Empowerment
People Enabling and People Empowerment

Until now, we have discussed the role of an HR manager in various

processes related to the HR function. The emphasis was on a general
overview and a description of the various activities instead of specific
details.
This article discusses a couple of the crucial functions that an HR
manager has to perform and those are related to enabling employees
to perform to their potential and empowering the employees to lead
fulfilling careers. In the earlier decades, organizational theory and
practice limited itself to ensuring that employees are well paid and their
benefits and other perks taken care of. There was little by way of ensuring
personal fulfillment and job satisfaction. This was because of the
predominance of manufacturing in the economies of the 1970s and the
1980s which meant that the workforce was to be treated as cogs in the
machine instead of assets that the modern day HRM theory and practice
follows.
With the advent of the services sector, a branch of HRM known as SHRM
or Strategic Human Resource Management grew in response to the
changing profiles of employees and this approach when combined with the
systems approach of management thought meant that the enabling of
employees and the empowerment of employees were the buzzwords for
HR managers.
Specific Aspects of the Twin Objectives

Concomitant with this trend, the HR managers in most firms these days
focus on these aspects by constantly seeking feedback, suggesting
improvements, and providing people support to the employees. in
multinational companies, it is usually the case that the employees above
the team leader level have one-on-ones with the HR staff where all the
issues concerning them are discussed threadbare. These meetings also
provide the employees with an opportunity to articulate concerns and point
to any grievances that they might have with regards to their jobs, work, or
the organization in general.
The team members are usually assigned a people manager who performs
these tasks and ensures that the employees are performing to their
potential. Moreover, the HR function in conjunction with the line managers
conduct periodic trainings in soft skills like communication, personal
relations, and leadership. Indeed, many organizations like Fidelity have
established a set protocol for employees to attend leadership development
trainings that bring out the leaders in them and groom them as future
managers and future CEO’s. Hence, the twin objectives of people
empowerment and people enabling are thus met in this paradigm.
How this works in the Real World

Of course, this does not mean that the whole situation resembles utopia
where employees and the managers along with the HR staff are one big
happy family. On the contrary, in most real world settings, the HR
managers have a tough time convincing the employees that the
organization means well for them and that they ought to look on the bright
side of things instead of complaining and being bitter about issues and
grievances all the time. This is where the HR managers skills and
personality come into the picture as the ability to persuade, enlighten, and if
necessary wield the stick play a crucial role in people management. In
other words, the HR manager has to tread a fine line between giving in to
the employees and following the organizational mandate. This means that
a variety of strategies are usually employed by the HR managers that
include some of the skills listed above in addition to the personal equations
that the HR manager has with the employees.
Closing Thoughts

Finally, people enabling is all about gaining insights into the personalities of
the employees and matching them with the organizational requirements. As
mentioned earlier, by way of understanding the employees and their
motivations and how well these stack up against organizational goals, the
HR managers would be able to perform the critical function of people
enabling that is very much required in contemporary management practice.

Talent Management by Successful

Companies: Insights from Recent
Research
Talent Management by Successful Companies
The previous articles discussed how successful companies develop and nurture leaders and groom
them for higher roles as their career progresses. The role of the HRM function is critical, as there
needs to be excellence all around and not just in one area. In other words, it is not enough if a
company has a brand image in the market that attracts top quality talent but is not doing well once
this talent starts working in the company.

Take for instance, the Indian IT behemoth, Infosys. Though working there is a dream come true for
many graduates, in recent months, the company has been hit with astounding attrition, as the
company is not doing well in terms of retaining and nurturing talent. On the other hand, companies
like Microsoft, Google, and Apple not only attract the best talent in the market but also manage them
well leading to their practices becoming a model for other companies to follow.

This article analyzes the best talent management practices of successful companies and the
role of the HRM function in nurturing and grooming talent.

Some Aspects in Talent Management

The first aspect for global companies is to not be parochial in their hiring practices and instead,
welcome diversity by recruiting international talent, employees from different backgrounds, and in
general diversify the employee base. Next, is the identification and grooming of high potentials that
would give the organization a pool of leaders from which they can draw upon when faced with a
situation where leaders are needed. Though this is a practice that is followed in many companies,
the successful companies also identify emerging leaders and not only those who have established
themselves. The point here is that successful talent management needs the HRM staff and the
senior management to draw up a list of potential leaders at both ends of the talent
development chain.

In other words, these companies start from the lower levels and go on till the middle and senior
management levels. The third aspect of successful talent management is the provision of both
vertical and horizontal job opportunities for the existing employees. This means that the employees
are provided with a menu of career options that would enable them to shift role and find fulfillment in
the role of their choice. The reason why this aspect is very important is that often many companies
stifle their employees by not providing change of job functions or roles leading to widespread
dissatisfaction among the employees.

Creating a Fulfilling Work Culture

The fourth aspect of successful talent management is that these companies provide their employees
with a change of work location where the reason for such a move is not to simply move talent to
locations where there are shortfalls but also the need for the employee’s personal development is
taken into consideration. The point here is that successful talent management requires that
employees feel privileged working for the company and their needs for self-actualization and
fulfillment be taken care of by the company.

Indeed, successful companies often have people first policies where the focus is on creating a
stimulated and fast-paced environment that encourages and fosters individual growth and the work
environment is much more engaging than a workplace that is solely concerned with profits.

Closing Thoughts
Finally, successful companies often have lower attrition rates even if their compensation practices
match the industry standard but are not higher than other companies. In other words, as mentioned
in the introductory paragraph, successful talent management requires all around excellence in the
realms of leadership development, talent management, and performance management. While the
first two topics have been covered, the performance management in successful companies would be
covered in the next article.
Talent Management by Successful
Companies: Insights from Recent
Research
Talent Management by Successful Companies
The previous articles discussed how successful companies develop and nurture leaders and groom
them for higher roles as their career progresses. The role of the HRM function is critical, as there
needs to be excellence all around and not just in one area. In other words, it is not enough if a
company has a brand image in the market that attracts top quality talent but is not doing well once
this talent starts working in the company.

Take for instance, the Indian IT behemoth, Infosys. Though working there is a dream come true for
many graduates, in recent months, the company has been hit with astounding attrition, as the
company is not doing well in terms of retaining and nurturing talent. On the other hand, companies
like Microsoft, Google, and Apple not only attract the best talent in the market but also manage them
well leading to their practices becoming a model for other companies to follow.

This article analyzes the best talent management practices of successful companies and the
role of the HRM function in nurturing and grooming talent.

Some Aspects in Talent Management

The first aspect for global companies is to not be parochial in their hiring practices and instead,
welcome diversity by recruiting international talent, employees from different backgrounds, and in
general diversify the employee base. Next, is the identification and grooming of high potentials that
would give the organization a pool of leaders from which they can draw upon when faced with a
situation where leaders are needed. Though this is a practice that is followed in many companies,
the successful companies also identify emerging leaders and not only those who have established
themselves. The point here is that successful talent management needs the HRM staff and the
senior management to draw up a list of potential leaders at both ends of the talent
development chain.

In other words, these companies start from the lower levels and go on till the middle and senior
management levels. The third aspect of successful talent management is the provision of both
vertical and horizontal job opportunities for the existing employees. This means that the employees
are provided with a menu of career options that would enable them to shift role and find fulfillment in
the role of their choice. The reason why this aspect is very important is that often many companies
stifle their employees by not providing change of job functions or roles leading to widespread
dissatisfaction among the employees.

Creating a Fulfilling Work Culture

The fourth aspect of successful talent management is that these companies provide their employees
with a change of work location where the reason for such a move is not to simply move talent to
locations where there are shortfalls but also the need for the employee’s personal development is
taken into consideration. The point here is that successful talent management requires that
employees feel privileged working for the company and their needs for self-actualization and
fulfillment be taken care of by the company.

Indeed, successful companies often have people first policies where the focus is on creating a
stimulated and fast-paced environment that encourages and fosters individual growth and the work
environment is much more engaging than a workplace that is solely concerned with profits.

Closing Thoughts
Finally, successful companies often have lower attrition rates even if their compensation practices
match the industry standard but are not higher than other companies. In other words, as mentioned
in the introductory paragraph, successful talent management requires all around excellence in the
realms of leadership development, talent management, and performance management. While the
first two topics have been covered, the performance management in successful companies would be
covered in the next article.

Management of Contractors
In recent times, there has been a marked movement towards outsourcing positions within the
organization to vendors who would supply resources for the said jobs. These positions and roles are
deemed to be those that can be done by resources from outside. And it is here that the contractors
step in to do the job that has been outsourced. The phenomenon of using contractors for regular
positions is gaining traction by the day and it is common to see many of these temporary workers
doing the work that would have otherwise been done by resources employed full time by the
organization.

The examples of organizations using contractors as a significant portion of their workforce range
from the US Defense Department to Microsoft and in India, many IT organizations like IBM employ
contractors to get the job done.

Historical Precedent for Temps

Till recently, the practice of hiring contractors or “temps” was restricted to the Administrative and
Support functions like HR and Infrastructure management. However, it now encompasses the areas
of regular work like project delivery and execution.

The reasons for using contractors range from less overheads to filling a temporary demand
that does not need hiring permanent employees. The organization need not provide health
benefits and pension benefits to the contractors and hence these costs can be saved. Further, on
completion of the project, the contractors can be reverted to their parent organization or the vendor.
This means that the hiring organization is not burdened with excess staff.

Issues with Hiring Contractors

There are several issues that pertain to hiring and management of contractors. Many IT companies
hold significant “bench” strength as a means of having a buffer when new projects come their way.
However, for many mid-sized and small-sized organizations, maintaining bench strength is often a
luxury. So, if they anticipate new projects being entrusted to them, they immediately ask the vendor
to supply them with the resources that are needed for the new projects. Of course, in reality, there is
often a lag between the request for new resources and the resources actually coming on board
because of the time taken to screen the contractors and time taken to bring them up to speed
regarding the work that needs to be done.

Managing the Vendors

Some issues that need to be considered before going in for contractors pertain to the way in which
the liability arising out of non-performance of the contractors is handled, the extent of control that the
managers have over vendors and the payment terms and conditions that organizations have with the
vendors.

It has been found in studies and surveys that contractors and vendors operate in the “grey” areas of
the employer-employee relationship and hence managers need to be on their guard when dealing
with vendors. Liabilities and punitive actions aimed at vendors usually end up being unresolved
because of the way in which the contracts are worded. Hence, it becomes imperative for the
organizations to do their “due diligence” before hiring vendors.

To conclude, the practice of hiring vendors is expected to increase and hence there is a need for
both sides to sit down and discuss the modalities of the contractual relationship before committing
themselves to the same. In this way, disputes over responsibility and accountability can be amicably
resolved if the contracts are worded in such a way that there is little room for ambiguity.

Performance Management as a HR
Management Concept
The very mention of appraisals, reviews and ratings is enough to make
seasoned professionals cringe and rejoice alike. For some, these are
occasions when they would come out smiling out of the review whereas for
others, there is nothing memorable about the whole process. So, what is it
that is so important about performance management? For
starters, performance management is the process of reviewing an
employee’s performance during the preceding year or cycle and
deciding where he or she stands as far as their peers in the same
band are concerned.
The process of reviewing results, arriving at a rating and then deciding
upon the bonus or salary hike is what performance management is all
about. Before we look at the topic sentence, it is important to understand
what goes into the decision making process and who is involved in the
same.
Typically, the process of performance management starts a month or two
before the appraisal cycle ends. The appraisal cycle can be half-yearly or
yearly depending upon the policies of the organization. Further, the
appraisal cycle can be based on the calendar year or the financial year i.e.
it can run from April to March of the following year or January to December
of the same year. In the same vein, it can be half-yearly as well.
There are different rounds to the appraisal process.

1. In the first round, the people who participate in an employee’s

appraisal are the employee and his or her manager. In this round, the
manager gives a frank assessment of the employee’s performance
after giving a chance to the employee to self-assess.
2. The second round consists of the manager and the manager’s
manager. This round is mostly about deciding the band in which the
employee falls post the rating and in comparison with his or her
peers. This process of rationalizing the employee’s performance with
others is called “normalization”. In some organizations, this takes
place in the third round where the HR manager is involved as well. In
any case, the ratings cannot be decided without the HR manager’s
assent to the same. Once these rounds are over, the bonus level or
the salary hike are decided.

What we have described in the above paragraphs is the way the system
“ought” to work. However, as any HR professional or Industry magazines
would tell you, the performance management process as it exists in many
organizations leaves a lot to be desired. In fact, surveys and studies have
found that the majority of employee’s who quit organizations do so because
of differences over their ratings. In other words, attrition is in many cases a
direct consequence of the way in which the performance management
process is managed.
The question as to why this happens can be best understood if we
understand the dynamics inherent in the process. For instance, despite
exhortations from HR professionals and experts about letting personal
biases and prejudices affect the process, in many cases, if the manager
and the employee do not see eye to eye on many issues, the appraisal and
the ratings are the place where this difference of opinion comes out into the
open. Further, the organizations are themselves to blame in some cases as
the process of “normalization” means a “winner takes all” approach which
leaves the moderate performers bracketed with the poor performers. The
point here is not to belittle the competitive environment that is the reason
for this. On the other contrary, what is needed is a more holistic approach
towards performance management that takes into account the varying
needs of employee’s and a broader appreciation of differing working styles
and motivations.

Performance Management in
Successful Companies: Lessons
from Cutting Edge Research
Introduction

Continuing with our series of articles on HRM practices in successful

companies, this article examines the performance management practices
of those companies that have managed to be in the FORTUNE “100 Most
Admired Places to Work in” consistently. To put it in perspective, just
twenty odd companies have remained in this list throughout the last
decade.
The research into the HRM practices by the leading business consultancy,
BCG or Boston Consulting Group, has revealed a set of practices that are
followed in these companies with respect to performance management.
The first practice is to link the bonuses and other incentives for the
managers to KPIs or the Key Performance Indicators to ensure that the
managers’ goals and the organizational goals are aligned together.
However, these companies do not stop at this and actualize a well-
constructed and balanced performance management system that motivates
and develops employees. The twin aspects of such performance
management systems are that they institute ac culture of meritocracy and
provide incentives to foster and sustain this culture. Further, the
performance management systems in these companies are fair,
transparent, and reward the employees to promote such a culture.
Establish Clear Norms and Articulate Expectations

Employees need to understand what constitutes superior performance and

what is unacceptable from the organizational perspective. This means that
organizations have to not only not overcomplicate the performance
management systems but also have to articulate what is simply below
average or poor performance that leads to action from the organization.
Further, the research has shown that these companies explain the reward
systems to the employees in a clear and engaging manner so that the
employees are aware of what performance would be rewarded and what
performance would be punished. If these practices are not followed, they
might lead to lack of employee cohesiveness and risk the flight of valuable
talent from the organization.
Follow Global Standards Consistent throughout the Organization

The other aspect of successful performance management is that most of

these organizations follow global corporate HRM practices and standards.
This is done in a manner where the global policies are articulated clearly
and the local units are asked to follow the same practices to have
coherence and consistency throughout the organizations irrespective of
which geographical location the employee is based. Further, the high
performing companies employ state of the art performance management
systems and put in place processes and methods that conform to global
norms and standards throughout the organizations.
Reward Behavior and Promote Openness

The research has also shown that more often than not, these successful
companies reward behavior and not just results, which show the
commitment they have towards actualizing employee fulfillment and at the
same, time inculcating high performance culture throughout the
organizations. Of course, though these companies reward high
performance, they are not overly procedural or bureaucratic in their
approach. Apart from this, successful companies emphasize feedback,
promote a culture of openness, and tend to avoid too much formality and a
culture where cut throat competition kills creativity and innovativeness.

Hiring Strategies followed by

Organizations
People are the lifeblood of any organization. Whether the organization is in the traditional sectors
like manufacturing or it is a “new economy” based one like IT and ITES, it needs to be staffed with
people of caliber and mettle. Hence, the kind of people that an organization hires is critical to the
success of the organization. In this respect, the hiring strategies followed by organizations take
on prominence in the competitive business environment of the 21st century.
Hiring can take place in many ways and at many levels. It can be for entry level positions or
“lateral” hiring where people with experience are taken on board. Further, hiring people can be
based on competitive exams (entry level) and the personal approach favored by HR managers for
senior level positions. In recent times, hiring for the entry level has taken on an entirely new
dimension with the campus recruitment procedures that rely on getting the best talent available from
the campuses for companies wishing to hire for entry level positions. The other way of hiring is
through selective approach where the Staffing department entrusts the placement consultants with
the task of identifying potential employees by picking “profiles” from employee databases and the
consultants own database as well.

As outlined above, the different hiring strategies are for different levels in the organization. The most
niche hiring takes place at senior levels where the essence is discreetness and hence dedicated
consultants or HR professionals approach people at higher levels on a one-one basis.

Whatever be the hiring strategy deployed, the essential components of the process remain more or
less the same. These include choosing from the available candidates, taking a decision as to the pay
and perks, making an offer and finally, getting them “on board”. The hiring process ranges from as
less a month or so to drawn out affairs for niche placement. The strategic imperatives that underpin
hiring depend on the ability of the organization to effectively leverage its reputation, flexibility in the
roles that are available, availability of skilled resources and finally, the package that the organization
is willing to offer.

Most debates in organizations on the hiring process hinge on the length of time it takes to hire a
person for a particular role and the package that the organization is willing to offer. The term
“fitment” is often used as HR jargon which is all about whether a particular person is suitable for the
role that is being filled and how well he or she “fits” the job profile. One of the reasons for attrition in
organizations is the fact that many employees join them with a set of assumptions about their role
only to have their hopes dashed in reality. Hence, in recent times, industry experts have focused on
this aspect of ensuring that people are hired only if they are of the right fit.

In conclusion, hiring people is a key component of a company’s internal strategy and hence

something that needs detailed attention and focus. We have touched upon the hiring strategies and
the overview of the process. In subsequent articles, we would explore the topic further.

Using Social Media Profiles of Job

Applicants for Hiring Decisions
The Advantages of using Information about Job Applicants from Facebook
Profiles

In recent years, there has been a noticeable trend among HR

professionals to check the information supplied by a job applicant by
comparing it with the information available on his or her Social
Networking Websites or SNWs profile. While this trend first become
apparent in the West and in the United States in particular, it is catching on
in the rest of the world as well where recruiters turn to the SNWs profiles of
job applicants to verify and seek information about the candidates. Indeed,
this trend is both welcome and worrisome as there are potential legal and
ethical implications not to mention privacy and security issues. The trend is
welcome because the recruiters have a need to know all the information
about job applicants’ background and suitability especially for sensitive jobs
where the job applicant needs to be totally “clean”. Further, the trend is
welcome because employers can escape the negligent hiring charges that
of late have become common in the US. This means that the recruiters can
glean information from the SNWs profiles of the job applicants and if there
are any serious character or integrity issues, they can spot them right
away.
The Disadvantages of using Information about Job Applicants from
Facebook profiles

However, the trend of using the Social Networking Websites (SNWs)

profiles of job applicants is worrisome, as the recruiters do not have the
legal basis of using such profiles without the consent of the job applicants.
Further, the recruiters run the risk of being unethical in their approach as
well as “lazy” in their recruiting process if they take the information from the
SNWs profiles of the job applicants. Apart from this, the job applicants can
be discriminated on the basis of gender, race, sexual orientation, and other
characteristics.
Moreover, the privacy and the sanctity of information that job applicants
post on their Facebook and SNWs profiles is compromised. There is also
the risk of security as once the recruiters get access to the profiles,
information can be hacked by third parties and leaked which means that
there are many implications to this practice. Therefore, it is in the interest of
all parties if there are proper safeguards that are drawn up to protect both
the parties and this process is followed diligently. This means that the
recruiters cannot access the SNWs profiles of the candidates without their
consent and the job applicants are aware of their rights and disadvantages
of posting personal details on their profiles.
What Recruiters can do and how Job Applicants need to Wary

We have discussed the advantages and disadvantages of recruiters

accessing the SNWs profiles of the job applicants. Taking the discussion
further, it is advisable for job applicants to be aware of the fact that in
the present information age, any details about themselves and their
friends can be accessed by anyone and hence, they must be careful
about the kind of information that they put out on the big bad World
Wide Web.
Further, for many positions in the US, job applicants are required to
undergo a narcotics test, which means that they would be medically tested
for traces of any narcotic substances in their bodies. Therefore, a strong
world of caution to the job applicants is that they better not reveal what they
did last summer especially when they are applying for highly competitive
jobs. For recruiters, the word of advice is that they rely on the traditional
route of background checks by independent agencies and not only on the
SNWs profiles of the job applicants to base their hiring decisions. Finally,
whether the information is private or whether it has been obtained illegally
and unethically, the fact that such information exists in the internet domain
is cause enough for concern.