1

HR PRACTICES

2

HR PRACTICES

Business Strategies

• Differentiation v/s Low Cost

• Global v/s Multi-domestic

• Innovation v/s Disruptive Innovation

• Customer Focussed

• Operational Excellence

3

• In a Global market, where the competition is intense and customers demand continuous improvement, we must vigorously compete to get “Top Talent”.

• Products and Processes could be copied rapidly and Technology is everywhere, in such a scenario, competitive advantage is determined by people with “Right Skills”.

• Demand for skilled employees now exceeds the supply.

• So, being there first with a Great Brand and Features is where the margins are….

The Change …

HR PRACTICES

4

In Conclusion, Talent becomes a critical resource because…

• Innovation…..Comes from people.

• World Class Processes are developed by World Class people.

• World Class Brands are built by Top Marketing Talent.

• World Class HR Practices are required in order to win the

“War for Talent”.

The Change…

HR PRACTICES

5

HR PRACTICES

How has Human Resources Progressed

• Labour Management

• Policy Administration

• Service Provider

• Resourcing & Learning Management

• Strategic Partner

6

HR PRACTICES

What are the various Domains of Capability Required for HR in Alignment to the Business

7

HR PRACTICES

What are the various Capabilities Required for HR

in different Domains of Business Scenario

8

Building the Strategy on Human Resources

Long Term Plan

BG / SBU Business Strategy

Human Resources Internal scrutiny

Business Environmental Scan

Human Resource Strategy

2 Year Action Programme

HR PRACTICES

9

Elements of HR Strategy

•Organization Structure & Head Count Modeling

• Capability Building

• Performance Management

• Employee Engagement

• Employer Branding

• HR Service Excellence

– Compensation & Benefits

– Shared Services Model

– Transactional Excellence

HR PRACTICES

10

• Organization Structuring & Head Count Models

– Key Challenge is to manage the current performance and facilitate

Innovation for future growth !

How does your Organization Structure facilitate both these aspects?

– How do you pay premium salaries and remain cost competitive at the

same time ?

Does your Head count Model address these issues ?

HR PRACTICES

11

• Capability Building

–What is the Process for early identification of Talent and Developing the

Leadership Pipeline ?

– How do you facilitate Learning in the Organization ?

– How do you develop Professional Skills ?

• Competency Based Approach…

HR PRACTICES

12

Competencies are a clear specification of individual knowledge, skill and attitude requirements which will help an individual do well on a job leading to the attainment of short term and long term business objectives for the organisation.

They define the “HOW” part of performing any task in the organisation

Knowledge

Skills

Social Role

Self image

Traits

Motives

Identify and Train for

Select For

%

%Visible

Invisible

What are Competencies..

HR PRACTICES

13

Capability Building - Thermax Leadership Development Process

HR PRACTICES

PMSCriteria for Selection to

participate in DC

Competency FrameworkProvides the Requirement

for present position

OMRCareer Movement

Possibilities in Future

INPU

TS

FOR

TLDP

DC’s Provides Competency

Gaps

Gap Analysis & Futuristic

Perspective

Development Action Plans

Coaching / Mentoring

Training Calendar

Exposure to new dimensions

All Top Quadrnt get 1deg

change in Job

Programs in Premier Mgmt

Institutes tailored to Company Need T

L D P

14

Performance Management System

Performance Planning/

Goal setting

Performance Review

Performance Monitoring

Coaching & mentoring, Feed back & Developmental actions

Mission

Performance Outcomes

Vision

HR PRACTICES

15

9 Block Matrix

High

Low

Low High

PERFORMANCE

Medium

POTENTIAL

Medium

HR PRACTICES

16

The Evolution of Employee Surveys

EngagementEngagement

SatisfactionSatisfaction

How much I likelike things

here.

CommitmenCommitmentt

How much I wantwant to

improve our business results

How much I wantwant to and actually doand actually do

improve our business results

HR PRACTICES

17

Concept of Engagement

STRIVESTRIVESTRIVESTRIVE

33

Exert extra effort and engage in work that

contributes to business success

STAYSTAYSTAYSTAY

22

Have an intense desire to be a member of the organization

SAYSAYSAYSAY

11

Consistently speak positively about the organization to co–workers, potential employees and, most

critically, customers (current and potential)

Engagement is defined as the‘State of emotional and intellectual involvement in a group or organization’

Three key behaviors that exemplify strong engagement are:

HR PRACTICES

18

HR PRACTICES

19

Employer Branding

Employment Branding is an “Image / Perception ” management program.

“The Organization is a highly desirable place to work”

Spreading this word proactively through employee word-of-mouth and

media.

Employment Branding - A Differentiator between your employment

offering from that of “Talent Competitors”.

…Contd

HR PRACTICES

20

Building an Employment Brand

Brand Pillars :

What do you want the Organization to be known for ?Or

The Management practices your potential applicants would like toknow about.

• Growth & exciting careers.

• Open and Transparent Work Culture.

• Learning Organization.

• High Performance Organization with a Human face.

• Creativity & Innovation.

• Social Commitment.

• Cutting edge Technology.

HR PRACTICES

21

Every company has an Employment Brand

…..Employees Talk….

It is a long term recruiting and retention strategy.

Employer Branding

HR PRACTICES

22

HR Service Excellence - Compensation

Terminology

Base Salary (Basic Salary Plus Dearness Allowance if existing)

Guaranteed Cash

• Annual Base Salary plus Conveyance Allowance, House Rent Allowance, Leave

Travel Allowance, Medical and other Guaranteed Allowances

Total Cash

• Annual Guaranteed Cash plus the variable component of the salary ( STIP)

Total Cost To Company or CTC

• Annual Total Cash plus all perks & benefits, including superannuation, EPF &

Gratuity and LTIP

HR PRACTICES

23

HR PRACTICES

24

HR PRACTICES

Compensation Implications for Different Business Strategies

25

HR PRACTICES

Compensation Implications for Different Business Strategies

26

HR PRACTICES

Compensation Implications for Different Business Strategies

27

HR PRACTICES

HR Service Excellence - Shared Services - Model

SharedServices

RecruitmentTeam

RecruitmentTeam

Transactional Team

Transactional Team

Line HR MngrLine HR Mngr

28

HR PRACTICES

HR Service Excellence - Shared Services - Communication Flow

Divisional Head

HR Managers

Shared Services Team

Consultants /

Service Providers

29

Human Resources - Model for the Future

Core Deliverables

Extent of Return

Rel

atio

nal E

xper

ienc

e

Creating Advantage

Avoiding Disadvantage

Basic

Services

Solutions for

Current Needs

New Platform offering for Future Business Strategy

HR PRACTICES

30

Thank You

HR PRACTICES