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Transcript of Hr Planning - Bhel[1] Prateek3
INDIAN INSTITUTE OF PLANNING AND MANAGEMENTNEW DELHI
HR PLANNING AT BHEL
UNDER THE GUIDANCE OF
MR. A.K. AJMANI
SUBMITTED TO
PROF. SUMANTA SHARMA
SUBMITTED BY
PRATEEK KUMAR ALUMINI ID: DF/08/10-H-180
PGP/FW/2008-10
HR PLANNING AT BHEL
ABSTRACTHuman Resource Planning is the process by which a management determines how an
organization should move from its current manpower position to its desire manpower
position.
A study of pointed out that the crucial problems which makes HR planning ineffective
BHEL do not have adequate records and information on HR planning. Due to this lack
of information its too difficult to fit HR plan with overall objective of BHEL. The
current technologies and knowledge in respect of HRP is not put to use optimally.
Such practically inevitably lead to ineffective HRP.
To compound the problem further there are unpredictable external influences on
Human Resource planning such as changes in labour market conditions, economic
cycles, change sin social and economic value, political changes etc. In such a scenario,
it becomes difficult to forecast the personnel available with in BHEL at a future data.
While vacancies caused by retirements are predicted accurately in BHEL but other
factor like resignations, turnover, death competitive attractions are difficult to forecast.
This problems becomes mainly accurate in respect of important personal especially at
the middle and top level because their replacements cannot be arranged in a short span
of time.
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THESIS TOPIC APPROVAL
----- Forwarded Message ----From: "[email protected]" <[email protected]>To: Prateek Kumar <[email protected]>Sent: Sun, 6 June, 2010 9:14:15 PMSubject: Thesis Topic Approval (H) FW 08-10
Dear Prateek Kumar,
This is to inform that your thesis proposal on “HR Planning at BHEL”, to be conducted under the guidance of Mr. A.K.Ajmani is hereby approved and the topic registration id number is DF/08/10-H-180
Make it a comprehensive thesis by ensuring that all the objectives as stated by you in your synopsis are met using appropriate research design; a thesis should aim at adding value to the existing knowledge base.
You are required to correspond with your internal guide Prof. Dipti Sharma at [email protected] Ph.-0124-3350713 by sending at least four response sheets (attached along with this mail) at regular intervals before 30th June 2010 last date for thesis submission.
Regards,Prof .Sumanta SharmaDean (Projects)[email protected]: +91 0124 3350701 (D)+91 0124 3350715 (Board)
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THESIS SYNOPSIS
HUMAN RESOURCE PLANNING AT BHEL
INTRODUCTION
Human Resource Planning is the process by which an organization ensures that it has
right number of people, right kind of people, at the right places, at the right time,
capable of the right places, at the right time, capable of effectively and efficiently
completing those tasks which will help the organization to achieve its overall
objectives as well as goals. Human Resource Planning then, translation the
organization’s objectives and plans into the number of workers needed to meet those
objectives. Without clear-cut planning, estimation of organization's human resource
need is reduced to more guesswork.
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Recruitment forms the first stage in the process which continues with selection and
ceases with the placement of the candidates. It is the next step in the procurement
function, the first being the manpower planning. Recruitment makes it possible to
acquire the number and types of people necessary to ensure the continued operation of
the organisation. Recruiting is the discovering of potential applicants for actual or
anticipated organisational vacancies. In other words, it is a linking activity bringing
together those with jobs and those seeking jobs.
A case study of BHEL pointed out that the crucial problems which makes HR
planning ineffective BHEL do not have adequate records and information on HR
planning. Due to this lack of information its too difficult to fit HR plan with overall
objective of the organisation. The current technologies and knowledge in respect of
HRP is not put to use optimally. Such practically inevitably lead to ineffective HRP.
To compound the problem further there are unpredictable external influences on
Human Resource planning such as changes in labour market conditions, economic
cycles, change sin social and economic value, political changes etc. In such a scenario,
it becomes difficult to forecast the personnel available with in BHEL at a future data.
While vacancies caused by retirements are predicted accurately in BHEL but other
factor like resignations, turnover, death competitive attractions are difficult to forecast.
This problems becomes mainly accurate in respect of important personal especially at
the middle and top level because their replacements cannot be arranged in a short span
of time.
OBJECTIVE OF THE STUDY
To find out the factors critical to Human Report Planning at BHEL
To find out the measure for making HRP effective at BHEL
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To know the factors which influence the determination of human resource
requirements
To know the required level of skill and competency, matching present and future
needs at BHEL
To recommend the factors that will make HRP at BHEL of commerce more
effective
METHODOLOGY
Research Design
Depending upon the objective of the research the most suitable research design is “
Exploratory Research” . Since in the past there has been hardly any study done on
Human Resource Development on BHEL, so the “ Exploratory Research” is the best
method suited for the purpose.
Data Collection :- All the information will be collected first hand and no secondary
data will be used. I went to the Manager, Chief Managers and other high authority of
BHEL and took a structured as well as direct interview and the verbal responses to the
questions will be recorded.
Sampling Methodology
Sample Size of the Survey will be 50 employees of BHEL
Sampling Technique will be Convenient Sampling
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Justification for choosing the topic
Effective utilisation of manpower resources is the key note of manpower management.
Ever since the factory system, production managers have devoted a great deal of time
and effort to the physical organisations of the industry. During the nineteenth Century
the average employer in their efforts to reduce costs centralised their attention upon
management of men and machines. Man management is basically concerned with
having right type of people available as and when required and improving the
performance of the existing people to make them more productive on their job.
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ACKNOWLEDGEMENT
I would like to take this opportunity to express my sincere and heartfelt thanks to Prof.
Sumanta Sharma and Prof. Vijay Kumar Boddhu whose nurtured and guided this
study at every step with infinite patience, wisdom and compassionate understanding.
I would also like to take this opportunity to express my sincere gratitude towards
Mr. A.K.Ajmani for his able guidance and help provided for the completion of this
thesis.
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TABLE OF CONTENTSABSTRACT ii
SIGNATORY PAGE iii
THESIS TOPIC APPROVAL LETTER iv
THESIS SYNOPSIS v
ACKNOWLEDGEMENT viii
TABLE OF CONTENTS ix
INTRODUCTION 1
OBJECTIVE OF THE STUDY 3
RESEARCH METHODOLOGY 4
COMPANY PROFILE 7
LITERATURE REVIEW 13
DATA ANALYSIS AND FINDINGS 63
CONCLUSION AND RECOMMENDATIONS 69
BIBLIOGRAPHY 73
ANNEXURE 74
QUESTIONNAIRE
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INTRODUCTION
Human Resource Planning is the process by which an organization ensures that it has
right number of people, right kind of people, at the right places, at the right time,
capable of the right places, at the right time, capable of effectively and efficiently
completing those tasks which will help the organization to achieve its overall
objectives as well as goals. Human Resource Planning then, translation the
organization’s objectives and plans into the number of workers needed to meet those
objectives. Without clear-cut planning, estimation of organization's human resource
need is reduced to more guesswork.
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Effective utilisation of manpower resources is the key note of manpower management.
Ever since the factory system, production managers have devoted a great deal of time
and effort to the physical organisations of the industry. During the nineteenth Century
the average employer in their efforts to reduce costs centralised their attention upon
management of men and machines. Man management is basically concerned with
having right type of people available as and when required and improving the
performance of the existing people to make them more productive on their job.
Recruitment forms the first stage in the process which continues with selection and
ceases with the placement of the candidates. It is the next step in the procurement
function, the first being the manpower planning. Recruitment makes it possible to
acquire the number and types of people necessary to ensure the continued operation of
the organisation. Recruiting is the discovering of potential applicants for actual or
anticipated organisational vacancies. In other words, it is a linking activity bringing
together those with jobs and those seeking jobs.
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It’s purpose is to pave the way for the selection procedures by producing, ideally the
smallest number of candidates who appear to be capable either of performing the
required tasks of the job from the outset, or of developing the ability to do so within a
period of time acceptable to the employing organisation. The smallest number of
potentially suitable candidates can in theory, of course, be any number. The main
point that needs to be made about the recruitment task is that the employing
organisation should not waste time and money examining the credentials of people
whose qualification do not match the requirements of the job. A primary task of the
recruitment phase is to help would be applicants to decide whether they are likely to
be suitable to fill the job vacancy. This is clearly in the interest of both the employing
organisation and the applicants.
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OBJECTIVE OF THE STUDY
To find out the factors critical to Human Report Planning at BHEL
To find out the measure for making HRP effective at BHEL
To know the factors which influence the determination of human resource
requirements
To know the required level of skill and competency, matching present and future
needs at BHEL
To recommend the factors that will make HRP at BHEL more effective
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RESEARCH METHODOLOGY
Research Design
Depending upon the objective of the research the most suitable research design is “
Exploratory Research” . Since in the past there has been hardly any study done on
Human Resource Development on BHEL, so the “ Exploratory Research” is the best
method suited for the purpose. Moreover, ‘Exploratory Research” looks for
hypotheses and since my research has also hypotheses and since my research has also
hypotheses, so according to me the method best suited for my purpose is the
“Exploratory Research”.
First work I have done is that I decide on what are the BHEL I am going to make the
project. Then, I went to the respective authority to collect different information of the
subject which I have selected. The purpose of exploratory research is to extract new
insight into the problem.
Data Collection:- All the information has been collected first hand and no secondary
data has been used. I went to the Manager, Chief Managers and other high authority
of BHEL and took a structured as well as direct interview and the verbal responses to
the questions has been recorded.
Field Work
I went to different branches, regional office and head offices of BHEL and took direct
interview. I then record verbal responses to question. I did not hire any people to help
me while doing the research.
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TYPES OF DATA USED
Basically there are two types of data which are used in marketing research process
1. Primary Data: The methods of collecting primary data are as follows,
A: Observation
B: Interview
C: Telephone Interview
D. Mail Survey
Interview: Interview is one of the chief means of collecting data in research process.
Interview may be defined as a systematic conversation initiated for a specific purpose
and focus on certain planned content areas. It is not a simple two-way conversation
between an investigator and an informant.
Surveys: There are three main types of surveys, depending upon the method of data
gathering used: personal interview surveys, telephone surveys and mail surveys.
Advantages of survey: Following are the main advantages of mail surveys:
1. Wider Distribution
2. Less Distribution Bias
3. Thoughtful Reply
Recruitment
BHEL take people at a variety of levels and need a variety of skills, the recruitment
network which must be maintained is wide and varied.
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LIMITATIONS OF STUDY
Every study conducted may have certain shortcomings and unfortunately mine is also
a similar case. A few errors have crept in despite our best effort to avoid them but it is
expected that still my study and findings are very much relevant.
An error may have been due to the samples taken not conforming to the actual
population; this is because the sample is a convenience sample.
Personal bias or personal error of the interviewer might also have crept in;
some cases, while interpreting the respondents.
Certain questions which are not properly responded by the respondents.
Some of the respondents have not responded totally.
Biases might have crept up on the part of the management while giving
answers.
Absolute sanctity of data can be a cause of concern as many respondents didn’t
ponder much over giving points, ranks etc.
The sample size was small due to time constraint which might not be true
representative of entire population.
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COMPANY PROFILE
Bharat Heavy Electricals Limited (BHEL) was set up by the Government of India
in the sixties with the objective of meeting the domestic needs of power generation
and industry sector equipment and achieve self reliance within the country.
Its first plant was set up at Bhopal in 1956 under technical collaboration with M/s
AEI, UK followed by three more major plants at Hardwar, Hyderabad and
Tiruchirapalli with Russian and Czechoslovak assistance. These plants have been at
the core of BHEL’s efforts to grow and diversify and become India's leading
engineering company.
The company now has 14 manufacturing divisions, 9 service centres and 4 power
sector regional centres, besides project sites spread all over India and abroad and also
regional operations divisions in various state capitals in India for providing quick
service to customers.
BHEL manufactures over 180 products under 30 major product groups and meets the
needs of core-sectors like power, industry, transmission, transportation (including
railways), defence, telecommunications, oil business, etc. Products of BHEL make
have established an enviable reputation for high-quality and reliability.
Bharat Heavy Electricals Limited (BHEL) is today the largest engineering enterprise
of India with an excellent track record of performance. BHEL entered into various
collaborations to produce turbines, generators, boilers, brakers, industrial products and
other various types of equipment and over the years. It became the leader in the
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domestic market with a high degree of reputation. It is a profit making firm since
1971-72 and a dividend paying company since 1976-77.
VISION:
A world-class, engineering enterprise committed to enhancing stake holder value.
MISSION:
To be the leading Indian Engineering Enterprise providing quality products, systems
& services in the fields of energy, transportation, industry, infrastructure and other
potential areas.
Values:
Strike adherence to commitments
Foster learning, creativity and team work.
Ensure speed of response
Respect for dignity and potential for individual
Loyalty and pride in the company
Zeal to excel and zest for change
Integrity and fairness in all matters
Most of them have been rephrased.
"Zest for change" has been added as change has been integral with success and the
rate at which change is needed is very high compared to earlier period.
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OBJECTIVES
GROWTH
To ensure a steady growth by enhancing the competitive edge of BHEL in existing
businesses, new areas and international operations.
PROFITABILITY
To provide a reasonable & adequate return on capital employed, primarily through
improvement in operational efficiency, capacity utilization & productivity and
generate adequate internal resources to finance the company’s growth
CUSTOMER FOCUS
To build a high degree of customer confidence by providing increased value for his
money through internationals standards of products quality, performance and superior
customer services.
PEOPLE ORIENTATION
To enable each employee to achieve his potential, improve his capabilities, perceive
his role & responsibilities and participate & contribute positively to the growth and
success of the Company. To invest in human resources continuously and be alive to
their needs
IMAGE
To fulfill the expectations which stakeholders like government as owner, employees
and the country at large have from BHEL.
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Bharat Heavy Electricals Limited (BHEL) is today the largest engineering
enterprise of India with an excellent track record of performance
BHEL offers a wide spectrum of equipment, systems and services in the field of
power, transmission, industry, transportation, oil & gas, non-conventional energy
sources and telecommunication.
The product profile of BHEL can be viewed from the point of “three” distinct set of
categories namely; Power sector, Industrial sector and Systems & Services. Herein we
reproduce a compendium of the diverse set of products/services of BHEL:-
POWER SECTOR
Generation & Transmission
- Steam Turbine Generator Sets & Auxiliaries
- Boiler and Boiler Auxiliaries
- Hydro Turbine Generator Sets & Auxiliaries
- Min. /Micro Hydro Generator sets
- Gas Turbine Generator sets
- Waste Heat Recovery Boilers
- Heat Exchangers
- Electrostatic Precipitators
- Distributed Digital Control for Power Stations
- Valves, Pumps, Piping System
- Power, Distribution & Instrument Transformers
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- Switchgear, control gear
- Rectifiers, Condensers, Porcelain Insulators
INDUSTRY SECTOR
Industries / Transportation / oil & Gas / Telecommunication / Renewable Energy
- Industrial Turbine & Generator Sets
- Gas Turbine & Generator sets
- Diesel Engine Based Generators
- Industrial Heat Exchangers
- Reactors, Columns
- Pressure Vessels
- Industrial Fans
- Seamless Steel Tubes
- AC / DC Motors, Variable Speed AC Drives
- Electronic Control Gear & Automation Equipment
- Power Devices, Energy Meters
- Transformers, Switchgear
- Capacitors, Insulators
- Battery Operated Passenger Van
- Oil Rigs And Oil Field Equipment
- Digital Switching Systems
- Wind Electric Generator
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- Solar Powered Water Pumps, Solar Water Heating Systems
SYSTEMS & SERVICES
- Turnkey Utility Power Stations
- Captive Power Plants
- Co-Generation Systems
- Modernization & Renovation of Power
- Stations and RLA Studies
- Switchyards and Substations
- Power System Analysis
- Erection, Commissioning and Operation
- Consultancy Services
Customers & Projects
BHEL’s customers include State Electricity Boards, Central Power Utilities
Companies such as NTPC, DVC, ONGC, Independent Power Producers such as
Powergen, Reliance etc., Railways; in addition to the now tapped foreign companies
and governments.
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LITERATURE REVIEW
OBJECTIVES, FUNCTIONS AND RESPONSIBILITIES OF HR DEPARTMENT
OBJECTIVES
The primary objectives of the HR department are to:
(i) Design and develop an organisational structure with well defined relationships
commensurate with the business plan and corporate strategies.
(ii) Promote and develop cooperative attitude amongst employees by fostering
harmonious relation at all level and inculcate sense of belonging.
(iii) Evolve progressive and pragmatic personnel policies, procedures and practices
and ensure its uniform interpretation and judicious implementation.
(iv) Develop the capability and proficiency of employees and their advancement
through appropriate training and continuous knowledge updation to face
corporate challenges and new technologies.
(v) Promote and inculcate the culture of employee's participation in management.
(vi) Ensure compliance of social and statutory obligations and government
directives and
(vii) Inculcate productivity consciousness amongst employees.
The HR department will direct its activities through three channels
1. Service to workers:
To motivate workers to develop sense of responsibility, goodwill and commitment
towards the organisation and promote good relations between one another.
2. Service to the supervisory personnel:
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To assist this group to understand personnel practices in order to provide leadership
and to maintain and develop good relation with the workers. Service through advice is
the keynote and it is expected that the normal line of authority will not be interfered
with.
3. Service to management
To assist the management in the development and formulation of sound policies
relating to personnel matters in the organisation as a whole, to interpret the
organisation's personnel policies, to ensure the uniform application of personnel
practices by all departments and to coordinate the practices of different sections, to
organise training facilities for personnel work and generally to keep the management
informed of all current developments in regard to measures that are to be complied
with as a matter of legal obligation and other measures useful for promoting good
management. The primary functions at this level will be to provide information and
generally to assist in the development of social skills of the managerial class with
emphasis on the human aspect in industry.
FUNCTIONS
(a) Planning manpower requirements
- Estimating vacancies
- Recruitment to seek and attract qualified applicants to fill vacancies
(b) Organising the manpower resources
- Organisational planning to determine the organisational structure and manpower
needed to effectively meet the company objectives.
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- Selections
(c) Classification of employees
- Induction
- Transfers and promotions
- Manpower development
- Training
(d) Motivation
- Job analysis
- Recreation
- Communication
- Collective bargaining
- Employee discipline
- Performance evaluation
- Employee counselling
- Safety
- Medical services
- Precaution and security
- Personnel research
- Grievance handling
Responsibility
It will be responsibility of HR department at R&P, HQ, to formulate under the overall
direction of D (R&P), the R&P division. Personnel policies and programmes and to
communicate the same to the units. HR department at R&P HQ and P&A department
at each unit shall provide assistance and councel to other departments on personnel
matters.
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Personnel management essentially being a staff function, HR department role will be
that of a staff department, with emphasis on its advisory character in all matters
connected with personnel activities except in respect of the promotion of welfare
measures which will be the executive responsibility of this department. HR
department shall also be responsible for ensuring compliance with the provisions of
various labour laws and other statutes.
Organizational structure
The BHEL electronics division comes under the director of industrials groups
and units.
BHEL EDN has one unit head and four GM for commercials, operations,
engineering, HR and one AGM for finance.
The GM commercials heads the marketing and project management and
commercials department
The GM engineering head the engineering and design departments.
The GM operations head the production, PCB subassembly and system testing
departments.
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EDN HEAD
GM Commercials
GM Engineering
GM Operations
GM HR & Factory service
AGM Finance AGM
Quality service
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The GM HR heads the human resource an factory service departments
The AGM finance monitors the whole finance related activities in the BHEL
EDN.
HUMAN RESOURCE DEVELOPMENT
Human Resource Development was introduced in BHEL with the objective of making
people effective by enabling them to acquire skill and capabilities. It has been
identified as a key area providing the cutting edge to BHEL in its endeavor towards
competitive excellence. There are Human Resource Committee set up in the corporate
office, is in place, in BHEL for reviewing and approving various areas of personnel
policies in order to bring about an integrated management perspective. Human
Resource Development (HRD) is specially viatal in BHEL, which is wrought with
over staffing and a large degree of inefficiency.
The slow down in the economy has forced organizations to give HR a new look. Lean
structures, with just the right number of employees and right kind of training is crucial
for the operational efficiency of an organisation.
Human Resource Management (HRM) performs the key process of recruitment,
training and performance management in BHEL. These processes are linked to the
business plan and the overall business process of BHEL.
MANPOWER PLANNING
Manpower planning is the planning for the selection and recruitment, development,
utilisation and maintenance of an organisation’s workforce. Once an organisation has
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determined its functions and aims, it then has to decide on what people it needs in
order to carry out those functions. Manpower planning is concerned with that part of
the organisation and how it decides on such things as the number and the skill
requirement of the people it employees.
THE INDIAN SCENARIO AND HUMAN RESOURCE MANAGEMENT
In the 50s, there was a strong belief that employees were recruited not to question
‘why’ but only ‘to do –and die’. In the 60s, terms like manpower, staff and personnel
came to be used and instead of controlling the employees, it became more and more
acceptable to manage personnel as studies revealed that productivity of the workers
could be improved if they were organized at work. And in the late 70s, people realized
that beyond a point, productivity depended on people. Also, workers started
demanding whatever they expected from the employers over and above their salaries;
‘Personnel came to be called as ‘Human Resources’ sharing the global thinking,
Indian managers and behavioral scientists accepted and introduced such theories,
models and concepts as theory X/Y/Z, Two Factor Theory of Motivation, Contingency
model, Social Comparison processes, Socio-Technical system, Job Enrichment,
Managerial Grid, Participative Management, Quality of Work Life, Total Quality
Management etc.
At the same time, experts observed that there were some strategic challenges of
current times such as accelerating rates of changes in all aspects of business-
increasing competition, globalization of business, technological change, changing
work culture, resource constraints, transition from industrial to information society,
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unstable markets owing to economic condition, increasing demands by corporate stake
holders, and a complex psychological environment.
Hierarchy, status, authority, responsibility, and accountability are structural concepts.
But in the Indian context, emotions, feelings, empathetic perceptions, impressions and
effective components have influenced people more than anything else. The
subordinates expect that the boss should have integrity, higher performance skill,
commitment, accessibility, wider vision, sense of empowerment and credibility. On
the other hand, the boss expects that his subordinate should have a commitment to job,
integrity, competence, reliability, initiative, loyalty to the organization, self discipline,
and good sense of accountability and job involvement. Human resource management
refers to a balanced interaction between these two sets of expectations.
RELEVANCE OF HUMAN RESOURCE MANAGEMENT IN PRESENT
SCENARIO
Human resource management is more relevant in today’s context due to the following
compulsions:
1. Change management: Today, terms such as ‘Learning Organization,
Managing organizational changes, Change Agents etc. are increasingly
associated with change management. An organization can survive in today’s
socio economic environment only if it is proactive to environmental changes.
2. Competence: It is said that ‘Give a man a job that he excels at and he would
not have to work’. In the organizational context, it may not be always flexible
to allocate tasks to individuals at which each one excels, but surely we can
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enhance competence of individuals for specific tasks through well designed
training programs. It is equally important to take note of the interests of the
individuals. It is much easier to train him or her in tasks closer to his inherent
liking.
3. Commitment: The extent to which the employees are committed to their work
and organization has a bearing on organization performance. Transparently in
organizational functioning, employee’s perceptions of various HRM policies,
channels of communication and role models played by superiors strongly
influence employee commitment.
4. Congruence of Objectives: Even well qualified and committed employees
could pursue goals at variance to the organizational objectives. It is, therefore,
essential that all newcomers to the organization are properly socialized into the
existing community and are made aware of the organizational values, work
ethos, customs and traditions. They should know what the organization stands
for and what it wants to achieve and in the process, what is expected from each
individual.
5. Motivation: One of all aspects of human behavior is the employee’s
willingness to work and the desire to constantly improve his performance.
People want to contribute to meaningful goals and most of them can exercise
far more creativity, self direction and self control than their present jobs
demand. It is, therefore, important to create an environment in which all
members can contribute to the limits of their ability.
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Managerial Functions
The human Resource Manager is a member of the management. So he must perform
the basic managerial functions of Planning, Organizing, Directing and Controlling in
relation to his department. These functions are briefly discussed below.
1. Planning: To get things done through his subordinates, a manager must plan
ahead. Planning is necessary to determine the right course of action for the
achievement of the desired results and accomplishment of the goals. Effective
managers recognize that a substantial part of their time should be devoted to
planning. For a Personnel Manager, planning means the determination, in
advance, of personnel programs and policies that will contribute to the goals
established for the enterprise i.e. anticipating vacancies, planning job
requirements, job descriptions, determination of the sources of recruitment,
providing information on succession and development plans etc. The process
of personnel planning involves three essential steps. Firstly, supply and
demand forecast for each job category is made. This step requires knowledge
of both labour market conditions and the strategic posture and goals of the
organization. Secondly, net shortage and excess of personnel by job category
are projected for a specific time horizon. Finally plans are developed to
eliminate the pre cast shortages and excess of particular categories of human
resources.
2. Organizing: Once the personnel manager has established objectives and
developed plans and programs to reach then he must design and develop
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organizational structure to carry out the various operations. The organizational
structure basically includes the following.
Identification of personnel activities required for achievement of objectives
and implementation of plans.
Grouping of personnel activity logically into functions or positions.
Assignment of different groups of activities to different individuals.
Delegation of authority according to the tasks assigned and responsibilities
involved.
Co- ordination of activities of different individuals.
3. Direction: The plans are to be put into effect by people. But how smoothly the
plans are implemented depends on the influence, motivation and supervision of
employees. The direction function of the personnel manager involves
encouraging people to work willingly and effectively for the goals of the
enterprise. In other words, the direction function is meant to guide and
motivate the people to accomplish the personnel programs. The personnel
manager can motivate the employees in an organization through career
planning, salary administration, ensuring employee morale, developing cordial
relationships and provision of safety requirements and welfare of employees.
The motivational function poses a great challenge for any manager. The
personnel manager must have the ability to identify the needs of employees
and the means and methods of satisfy those needs. Motivation is a continuous
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process as new needs and expectations emerge among employees when old
ones are satisfied.
4. Controlling: Controlling is concerned with the regulation of activities in
accordance with the plans, which in turn, have been formulated on the basis of
the objectives of BHEL. Thus, controlling completes the cycle and leads back
to planning. It is the observation and comparison of results with the standards
and correction of deviations that may occur. Controlling helps the personnel
manager to evaluate and control the performance of the personnel department
in terms of various operative functions. It involves performance appraisal,
critical examination of personnel records and statistics and personnel audit.
Operative Functions
The operative functions are those tasks or duties which are specifically entrusted to the
personnel department under the general supervision of personnel manager. These are
concerned with employment, development, compensation, integration and
maintenance of personnel of BHEL.
1. Employment: The first operative function of personnel department is the
employment, of right kind and in right number, of persons necessary to achieve
the objectives of the organization. This involves recruitment, selection,
placement, etc. of the personnel. Before these processes are performed. It is
better to determine the manpower requirements both in terms of number and
quality. The requirement and selection cover the sources of supply of labour
and the devices designed to select the right type of people for various jobs.
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Induction and placement personnel for their better performance also come
under the employment or requirement function.
2. Development: Training and development of personnel is a follow up of the
employment function. It is a duty of management to train each employee
properly to develop him/her for the higher jobs in BHEL. Effective
development of personnel is necessary to improve their skills of doing jobs and
to satisfy their growth needs. For this purpose, the personnel department has to
device appropriate training and development programs. There are several on-
the- job and off-the-job methods available for training purposes. A good
training program should include mixture of both types of methods. It is
important to point out that personnel department arranges for training not only
of new employees but also of old employees to update their knowledge in the
use of latest techniques.
3. Compensation: This function is concerned with the determination of adequate
and equitable remuneration of the employees in the organization for their
contribution to the organizational goals. The personnel can be compensated
both in terms of monetary as well as non-monetary rewards. Factors which
must be borne in mind while fixing the remuneration of personnel are their
basic needs, requirements of jobs, legal provisions regarding minimum wages,
capacity of the organization to pay, wage and salary levels adopted by the
competitors etc. For fixing the wage levels, the personnel department can make
use of certain techniques like job evaluation and performance appraisal
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4. Maintenance (Working conditions and Welfare): Merely appointment and
training of people is not sufficient. They must be provided with good working
conditions so that they may like their work and work place and maintain their
efficiency. Working conditions certainly influence the motivation and morale
of the employees. These include measures taken for health safety, and comfort
of the workforce. The personnel department also provides for various welfare
services, which relate to the physical and social well being of the employees.
These may include provision of cafeteria, rest rooms, counseling, group
insurance, education for children of employees, recreational facilities, etc.
5. Motivation: Employees work in the organization for the satisfaction of their
needs. In many of the cases, it is found that they do not contribute towards the
organizational goals as much as they can. This happens because employees are
not adequately motivated. The personnel manager helps the various
departmental managers to design a system of financial and non-financial
rewards to motivate the employees.
6. Personnel Records: Personnel department maintains the records of the
employees working in the enterprise. It keeps full records of their training
achievements, transfer, promotion etc. It also preserves many other records
relating to the behavior of personnel like absenteeism, labour turnover and the
personnel programs and policies of the organization.
7. Industrial Relations: These days, the responsibility of maintaining good
industrial relations is mainly the responsibility of the personnel managers. The
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personnel managers can help in collective bargaining, joint consultation and
settlement of disputes, if they arise. This is because personnel executives have
the working knowledge of various labour enactments. The personnel manager
can help to a large extent in maintaining industrial peace in the organization as
he is deeply associated with various committees or disciplines like labour
welfare, safety, grievance, dispute settlement etc. He helps in laying down the
grievance procedure to redress the grievances of the employees. He also gives
authentic information to the trade union leaders and conveys their views on
various labour problems to the top management. In this way he keeps the gap
between the two parties at bay.
8. Separation: Since the first function of personnel management is to procure the
employees, it is logical that the last should be the separation and return of that
person to society. The organization is responsible for meeting certain
requirements of due process in separation, as well as assuring that the returned
person is in as good shape as possible. The personnel manager has to insure the
release of retirement benefits to the retiring personnel in time.
Advisory Functions
Personnel/Human resource manager has specialized education and training in
managing human relations. He is an expert in his area and so can give advice on
matters relating to human resources of the organization. He offers his advice to.
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1. Top Management: Personnel manager advises the top management in
formulation and evaluation of personnel programs, policies and procedures. He
also gives advice for achieving and maintaining good human relations and high
employee morale.
2. Departmental Heads: Personnel manager offers advice to the heads of
various departments on matters such as manpower planning, job analysis and
design, recruitment and selection, placement, training, performance appraisal
etc.
HUMAN RESOURCE PLANNING
Human Resource planning also referred to as manpower planning, has been defined as
the process of “getting the right number of qualified people into the right job at the
right time”. It is the process of matching the internal (existing employees) and external
(those to be hired or searched for) supply of people with job openings anticipated in
the organization over a specified period of time.
HRP involves projecting and forecasting present personnel functions into the future.
Setting up an employee plan involves anticipating the future patterns of an
organization and of the business environment and then relating human resource
requirements to the conditions. Both the internal factors of labour demand and skills
assessment and the external factors of establishing labour market conditions must be
considered during HRP endeavors.
There is a growing mismatch between the new jobs that are emerging and the people
that are available to fill them. The labour pool is changing as a result of rapid
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technological advances and increasing globalization of economies. As a result HRP
is being increasingly recognized as an important activity. Basically, all organizations
engage in HRP, either formally or informally.
HRP should go hand in hand with an organization’s strategic planning- which requires
consideration of both the external and internal environment. According to a survey of
top level executives, the best methods of improving quality and overall productivity
are directly related to human resource issues revealing the absolute necessity for
integrating HRP into a firm’s strategic plans. After organizational strategic plans have
been formulated, human resource planning can be undertaken.
The rapidly accelerating pace of industrial development and its impact of growing
pressure for change on the organization has made ‘Human Resource Development-
HRD’ or ‘People-oriented approach’ the need of the hour for today’s organizations.
Manpower planning is a critical function because it provides management with
information on resource flows which is used to calculate, along with the other things,
the recruitment needs and succession and development plans. Hence, the importance
of manpower planning in reducing shocks in the form of unexpected labour shortages,
inefficient and costly surpluses, and needless redundancies and disturbances within the
employment patterns of large organizations is quite evident. In order to maintain
numerically stable employment over time, management requires data on when, where,
and how many employees need to be recruited and this is where manpower planning
comes in handy. Only through detailed observation and planning of many variables
both internal to the organization and external in the wider political, social, economic,
management can ensure a reconciliation of labour supply and demand such the
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difficult unexpected situations are avoided. Hence, the focus of HRP should be on
constant change in products, production techniques, sales and quality in order to meet
the rapidly changing demands of the ‘customer’ .Through strategic and careful human
resource planning the individual and the organization can be integrated in such a way
that there remains no distinction between the two.
Human Resource Information System (HRIS)
One of the newer devices for providing skills inventory information is the Human
Resource Information System (HRIS).An HRIS is an integrated approach to acquiring,
analyzing, and controlling the flow of information through out an organization. An
effective HRIS is crucial to nearly all HRM functions. This system is designed to
quickly fulfill the personnel informational needs of the organization with almost no
additional expenditure of resources. It typically employs computer and other
sophisticated technologies to process data that reflect the day-to-day operations of a
company, organized in the form of information to facilitate the decision-making
process. An HRIS should be designed to provide information that is timely, accurate,
concise, relevant and complete.
The database required for the purposes of making forecasts of manpower at the macro
level and micro level are given below:
Forecasting at Macro LevelDatabase for demand forecasting Database for supply forecastingI. Population Statistics I. Age at entry and exitII. Economic parameters II. Annual enrolment and out turnIII. Existing technologies III. Attrition ratesIV. Emerging technologies IV. Retirement V. Migration
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VI. Mortality VII. Labour force participation ratesRetrenchment
Many organizations today are facing a very different environment- one of decline.
Thus retrenchment carries with itself different implications for HRP. Human Resource
planning tends to ignore issues resulting from managing in a declining organization.
Going bankrupt, divesting holdings, or eliminating unprofitable product lines are
activities that are not prevalent in growing enterprise. As such, these activities have a
major impact on the employee population. HRP, accordingly, must take a different
focus.
Intense global competition, rapid technological change, and apprehensions caused by
recent workforce reductions have also led to organizations increasing their use of part
time workers, subcontractors, and independent professionals in response to changing
demands. Using these kinds of employees gives an organization far more flexibility in
dealing with temporary shortages or surpluses of labour than does maintaining more
traditional full time employees for all jobs.
Action decisions in surplus conditions when comparison of employee demand and
supply indicates a surplus are some of the most difficult decisions that managers need
to make because employees who are considered surplus are seldom responsible for the
conditions leading to surplus or decline in the organization. This is where
retrenchment takes its toll. Under retrenchment, certain HRP activities like recruitment
and selection become irrelevant. Finding the most productive candidate for critical
jobs becomes a problem. Many candidates rule out the possibility of joining the
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sinking company. Thus, at a time when the best employee is needed, a declining
organization is in no position to be leading the industry in recruiting efforts.
The solutions to deal with the declining phase, under retrenchment, are Outplacement,
Layoffs, Attrition, Early retirements, Demotions, and Terminations. Most
organizations avoid layoffs first by such means as attrition, early retirement, and work
creation. Many organizations can reduce workforce simply by not replacing those who
retire or quit. Sometimes this approach is accelerated by encouraging employees close
to retirement to leave early. Another variation to this approach is work sharing. The
organizations ask all employees to work fewer hours than normal and thus share wok.
Many unions favor this approach. In layoffs, employers take the surplus employees off
the payroll temporarily to reduce the surplus. If the layoff is likely to be permanent, it
is in effect a termination and usually results in the payment of severance pay as well as
unemployment compensation.
Hence when an organization experiences retrenchment, human resources are going to
be affected. Events surrounding the managing of a decline should be of concern to
those conducting human resource planning.
RECRUITMENT
Recruitment makes it possible for us to acquire the number and type of people
necessary to ensure the continued operation of the organization. Recruiting is the
discovering of potential candidates for actual or anticipated organizational vacancies.
The ideal recruitment effort will attract a large number of qualified candidates who
will take the job if it is offered. The process of recruitment begins with an attempt to
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find employees with the abilities and attitudes desired by the organization and to
match them with the tasks to be performed.
Various government regulations prohibiting discrimination in hiring and employment
have a direct impact on recruiting practices. For example the Government of India has
introduced legislation for the reservation in employment for Scheduled castes,
Scheduled tribes and physically handicapped persons. A certain percentage of seats
have been reserved for them by the Central and State Governments for all categories
of posts. As a result the recruitment efforts of government departments and central and
state government organizations are influenced.
Some companies have prior agreements with recognized unions to give prior
consideration to relatives of deceased, existing or retired employees, if their
qualifications and experience are suitable for the vacancies. This not only restricts
management freedom to select those individuals who it believes would be the best
performers if the candidate cannot meet the criteria stipulated by the union, but the
union also requirements can also restrict recruiting sources.
The employment conditions in the community where the organization is located also
influence the recruiting efforts of the organization. If there is labour surplus at the time
of recruitment, even informal attempts at recruiting will probably attract more than
enough applicants. However, when full employment is nearly reached in an area,
skillful and prolonged recruiting may be required to attract any applicants that fulfill
the expectations of the organization. Also, an organization’s recruitment efforts must
favorably with its competitors. The Human Resource department of the organizations
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must realize that it is competing with other organizations in the local area for the same
good job applicants.
At the same time it has become important for the organization to analyze the
composition of its workforce. The demographic shifts in the workforce are having an
impact on the recruitment strategies utilized by employers. The reality is an aging
workforce which has fewer young people entering the job market to replace retirees,
and of those new entrants 83% are women, members of minority group, or immigrants
( Bureau of Labour Statistics, Blacharczyk) the demographic and economic conditions
in today’s society require employers to utilize more flexible and innovative recruiting
methods.
Success in recruitment is a result of careful and strategic thinking. The position sought
to be filled must be seen not only in the context of the current business situation but
also where the business would be in the medium to long run. For instance, a
diversified transnational company may set up a country office in India with an
intention to set up several joint ventures in the course of time. Initially, business
development skills are important for the company’s success. However, once the joint
ventures have been set up this skill would be less relevant and general management
skills would be more critical. Therefore, at the outset, the company should hire a
business development person who is capable of moving to one of the joint venture
companies at general management level.
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Vaccant Position in the Orgn.
Application Short-List
Call for Evaluation
Evaluation Process
Offer Letter to selected Candidates
DirectRecruitment
Requisition ProcessManpower requisitionRequisition approval
ResumeDetails
ApplicantData Blank
Rejection/Hold
No Requisition
HR PLANNING AT BHEL
RECRUITMENT PROCESS
A combination of Internal and External sources are used by most organizations for
generating a sufficient number of applicants. Internal recruitment involves generating
an interest among current employees to cause them to formally indicate an interest in a
given position. Some of the internal recruitment methods include Personnel Records
and Skills, Job Posting and Bidding, Grapevine, Inside Moonlighting, etc. When an
organization has exhausted its internal supply of applicants, it must turn to external
sources to supplement its workforce. External recruitment sources include Direct
Applications, Employee Referrals, Professional or Trade Associations, Employee
database available online, Media advertisements (Newspapers, Magazines,
Directories, Television, Radio, etc.), Executive Search Firms- Head Hunters, Campus
recruitment etc. But there is no single combination of resources and methods that will
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work well for all organizations, or for that matter, across all types of jobs and labour
market, or even within a labour market.
The Applicant Databank is A Central Repository of Applicant related information.
The Recruitment Process has different options- Direct and Through Requisition
Direct: The Candidate required for a vacant position in the organization is
searched from the applicant Data Bank and given offer.
Through Requisitions: The Requisition Process (an official written demand)
comprises of Manpower Requisitions from the organization.
After Approval of the Requisitions the Applicants are short listed from the Applicant
Data Blank based on the position, Experience, skill set, Qualification as required from
the Requisition.
The Short Listed Applicants are then called for an evaluation process that is based on
pre-defined steps for the respective positions.
After clearing the evaluation process an offer letter is given to the selected applicants.
If the Applicant is rejected or on Hold during Evaluation process, the Applicant goes
back to the Applicant Data Bank with appropriate status.
In today's rapidly changing business environment, organizations have to respond
quickly to requirements for people. Hence, it is important to have a well-
defined recruitment policy in place, which can be executed effectively to get
the best fits for the vacant positions. Selecting the wrong candidate or rejecting
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the right candidate could turn out to be costly mistakes for the organization.
Selection is one area where the interference of external factors is minimal.
Hence the HR department can use its discretion in framing its selection policy
and using various selection tools for the best results. These case lets discuss the
importance of having an effective recruitment and selection policy.
They discuss the importance of a good recruitment and selection process that
starts with gathering complete information about the applicant from his
application form and ends with inducting the candidate into the organization.
Norms of BHEL recruitment
BHEL mainly recruits Engineer Trainees, Supervisor Trainees and Artisans, whenever
vacancies for these positions are sanctioned. Once vacancies are sanctioned, the
recruitment for these positions is conducted according to the process which will be
described in detail in open advertisement issued. You may look out for such
advertisements in the “Employment News”, and also at this website, where it will also
be hosted when issued. However, some broad features are given below:
1. For the positions of-
a)Engineer Trainees
b)Supervisors Trainees
Normally above two recruitments are centrally conducted for various units of BHEL
and detailed advertisement, containing no. of vacancies, job-specifications, selection
process etc., is published in National Dailies.
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For these positions, generally recruitment is conducted leveraging technology, which
requires submission of applications ‘on-line’ only. The broad job-specifications are as
under:
JOB SPECIFICATIONS
a) For Engineer Trainees
Full time regular Bachelor’s Degree in Engineering or Technology from a recognized
Indian University/Institute in the relevant discipline with minimum 60% marks in the
aggregate of marks of all years/semesters.
b) For Supervisor Trainees
Full time regular Diploma in engineering in the relevant discipline with minimum
60% marks in the aggregate of marks of all years/semesters (relaxable to 55% for
SC/ST candidates) from a recognized Indian university/institute.
Upper Age Limit
Engineer Trainee- 27 years for Graduates
29 years for Post-Graduate
Supervisor Trainee-27 years
The selection process involves on All India based written test followed by interview.
The process by which the candidates, who apply, are shortlisted for inviting for written
test and interview, is described in detail in the advertisements issued.
2. For the position of Artisans
The recruitment for these positions is conducted by concerned unit only, whenever
vacancies are sanctioned to them. The detailed advertisement, containing no. of
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vacancies, job -specifications, selection process etc., is published in Employment
News and hosted on BHEL website. Window advertisement is, however, published in
Local Dailies.
JOB SPECIFICATION
Matric/SSLC + National Trade Certificate (NTC) in the relevant trade plus National
Apprenticeship Certificate (NAC) with not less than 60% marks for Gen and OBC
candidates and not less than 55% marks for SC/ST candidates in both NTC and NAC.
Upper Age Limit- 27 years for General Candidates Relaxation in upper age limit for
various categories in all the above positions is as per Presidential/ Govt. Directives on
reservations.
The selection process involves written test followed by interview. The process by
which the candidates, who apply, are shortlisted for inviting for written test and
interview, is described in detail in the advertisements issued.
Note:
1. The above mentioned job-specifications are broad in nature. As such, it
is advised to refer to the details of concerned recruitment, whenever conducted.
2. Applications for jobs are to be submitted against specific recruitment
advertisement only and as prescribed.
3. Occasionally BHEL recruits persons at levels other than described
above. Any advertisements issued in this regard will also be hosted at the site.
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4. Unsolicited applications will neither be entertained nor responded.
Hiring Alternatives
In recent years, employers have increasingly sought alternatives to the recruitment and
selection of permanent new employees. They are willing to pay a premium to escape
the legal responsibilities, paper work, and commitment required in the hiring of
additional employees. Therefore the organizations are using alternative to recruitment
which safeguards the organization from the cost and permanency recruiting
individuals. Some of these alternatives are:
1. Overtime: On a limited and short tem basis having the employees to work
overtime may be an alternative to recruitment. It is a temporary increase in
staff and helps organization avoid the cost of recruiting and having additional
employees.
2. Temporary Help: One of the outcomes of downsizing and skill shortage has
been dramatic rise in the use of temporary employees. Today, these employees
can be found staffing all types of jobs in the organizations, including
professional, technical, and higher executive positions. This is less costly since
the organization does not have to provide fringe benefits, training or a career
plan. Thus, the organization enjoys flexibility in responding to changes in
demand for workers.
3. Employee Leasing: also called “staff sourcing” involves paying a fees to a
leasing company that handles payroll, employee benefits, and routine HRM
functions for the client company. The leasing company is the legal employer of
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the leased employee. This is especially attractive to small and midsized firms
that might not otherwise be able to afford a full-service HR department.
4. In House Temporaries: instead of relying on the outside agencies to fill a
temporary position larger employers may operate an in-house temporary
service. The employer recruits a pool of part time and full time workers who
are kept available to departments who need to fill a position temporarily due to
a regular employee’s vacation, illness, or other reason.
5. Moonlighters: Who work part-time and are especially useful if the organization
can provide flexible work hours. For example, Godfrey Philips has been hiring
unemployed men and women as part-time associates to market yet-to-be
launched range of products.
6. Former Employees: those executives who resigned and left in search for
greener pastures may be reemployed by the organization should they want to
come back. They are offered bigger and better jobs. Today, many companies
are actively seeking out their former best and trying to woo them back.
Search for New Talents
Attracting talent is the biggest challenge for HR professionals today. It is imperative to
know exactly who you want to avoid expensive mistakes. Some of the most frequently
sought attributes are a track record in the industry, team orientation, the ability to
contribute to the business immediately, a global view i.e. the ability to see the big
picture, the energy and enthusiasm . More and more companies are choosing people
who possess cross-functional or general management skills. People who can
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preview and understand the interaction between all the aspects of the business. The
skill and capabilities requirement for a vacancy should neither be narrowly defined nor
broadly specified as this may lead to many hiring mistakes.
Lack of imagination is a common mistake in providing the talent considerations.
Stereotyping the image of the yet to be found executive would narrow the search
process considerably and would result in sub optimal selection. Knowing where the
talent exists is of course the next logical step. Networking is a key skill required of HR
professionals. “The best way is to have the most extensive network possible and get all
your people to be part of it. This ensures prior approval of the people you are enrolling
and it saves a deal of interview time and recruiting cost”, said an HR executive.
Getting out the meeting people need not be the way of life for business development
people alone, HR executives too, need to develop their network and keep a tab on
emergence and movement of talent.
Executive Search firms, already the most preferred means of search in the developed
countries, are being increasingly used in India. Most international search firms have
followed their international clients to India and now have a healthy client base even
among Indian companies. Many Indian companies are now willing to pay hefty
amounts for the search of Mr. Appropriate. Several Indian and Multinational clients
have retained search firms to identify potential talent. A head-hunter’s job is to help
the clients to find the right candidate (as they may even know who the hidden players
are and not just the obvious players).
Important consideration In Recruitment
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Planning is essential for the success of the recruitment process. The HR Head must
understand the external environment and the need of the organization. The challenge
of building a large organization in a new industry, say telecom, is different from that
in a well-established industry. Further, he must be capable of sharing this
understanding with the other department heads and employees. This would ensure that
everyone has a common understanding of recruitment issues and has realistic
expectations. The structure of an organization dictates the specific skills required. The
pace at which the company is trying to grow is an important consideration. The skill
set required in a company with steady manpower requirement is different from a
company that is trying to grow very fast in a short span of time.
SELECTION
With the prevalence of severe unemployment, finding a job is a critical need of a large
segment of persons in India. Although an effective recruitment program can provide
numerous job applications, there still remains a crucial problem of selection of the
most suitable person with a view of placing them in vacant positions in the enterprise.
Whatever the reasons may be for dissatisfaction with the job and irrespective of where
lies the fault, it is an unfortunate and dishearting situation, in which both the
individual and the organization are losers. And this situation emphasizes the
importance of employee selection principles and practices.
Selection is the process of securing relevant information about an applicant to evaluate
his qualifications, experience and other qualities with a view to matching these with
the requirements of a job. It is essentially a process of picking out the best suited men
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for the organization. The process of selection begins with the understanding and
definition of the job by those involved in selection. These are then converted into job
specifications which are made public. The selection process involves seven
steps ,according to Yoder and others, (1) preliminary screening of applicants, (2)
review of application blank, (3)checking references, (4) physical examination, (5)
psychological testing, (6) employment interview, (7) evaluation of the programme.
Selection helps to generate only relevant applicants through self selection process on
the part of the potential applicants, saving time and money. Though proper selection of
new entrants it is possible to build a desirable culture and desirable norms in the
organization. Proper selection also ensures high degree of satisfaction among
employees resulting into high morale, higher levels of commitment and productivity.
In today’s highly complex and competitive situation, choice of right personnel has far
reaching implication for an organization’s functioning. Employees well selected and
well placed would not only contribute to the efficient running of the organization but
offer significant potential for future replacement. Hence, building and maintaining an
effective human organization becomes the most important management function.
THE SEARCH PROCESS
The organization can choose between the search and selection based on a number of
factors. The first is the availability of the skill required. Some skills are more than
others at a point of time For instance, a legal secretary with experience of structuring
mergers and acquisitions or joint ventures is not easy to come by. In this situation
directed and focused search is the solution. Now the availability exceeds demand both
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because of downturn in the industry as well as increased availability of this skill. In
nascent industries, it is difficult to get people with relevant experience. Telecom
industry is an example.
The second criterion is the mission criticality of the position. Among other positions,
mission criticality would depend upon the skill required most for a company’s growth
strategy. For instances, business development skills in a power company and the R&D
skills in a technology driven company are critical. In some instance the very survival
of a company may depend upon a particular skill set. Currently distribution and
logistics skills are critical in the Tyre industry. A particular skill may be mission
critical at the time of the launch of a project or a business.
The third factor is the skill need versus a company’s attraction capability. A company
that is not performing very well, or one that is new to a county, may not be able to
attract the right talent. Search may be an answer in such cases. The maturity of an
industry is also an issue.
The Assessment Center
Employees are not contented just by having a job. They want growth and individual
development in the organization. ‘Assessment center’ is a mechanism to identify the
potential for growth. It is a procedure that uses various techniques to evaluate
employees for manpower purpose and decisions. The assessment center is a popular
method of selection that places applicants in a stipulated job situation so that their
behaviour under stress can be observed and assessed. It was initiated by American
Telephone and Telegraph Company in 1960 for line personnel being considered for
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promotion to supervisory positions. Till today, AT&T is using the most widespread
campaign. It is using sixty assessment centers located through out the Bell telephone
system, the company assigns six or seven managers for six months of duty at the
centers.
Assessment centers usually involve six to twelve candidates at a time who are
evaluated as they work through a series of exercises over several days. Candidates
may be given psychological tests and are interviewed extensively, but most of the time
is devoted to exercises designed to stimulate the problems of high level jobs.
The in basket contains the typical problems, questions, and directives that managers
would find when they returned to work from vacation. The applicants must process
this material in a fixed period of time. After the exercise, the applicants may be
required to justify their decisions in personal interviews with the assessors. In the
leaderless group discussions, the applicants meet as a group to discuss an actual
business problem. In the oral presentation exercise, candidates are given a packet of
information on some aspect of a company’s operations. The candidates must organize
this material and present it to the group. In the role-playing exercise, the candidate
must act out or play the role of a manager in a stimulated real life situation from work.
Assessment centers can be a target of resentment and complaints particularly from
those who perform poorly in the exercises. Active participation becomes an important
criterion in the evaluation. The second criterion on which the ratings are based is
organizing and decision making ability.
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Studies have shown that those persons selected to managerial jobs by the means of
assessment centers or promoted from within the organization to higher level jobs,
perform as much as 50 percent better that those selected by traditional techniques.
The assessment centre experience is also a training exercise for the candidates. Their
management and interpersonal skills are refined by the feedback they receive from the
assessors. They are not open to the charge of irrelevance, as is the case with some
psychological test and application blank information. The exercises are clearly job
related.
TRAINING AND DEVELOPMENT
Training, according to the dictionary refers to “giving teaching and practice in order to
bring them to a desired standard of behaviour’. According to Decenzo, “Training” is a
learning experience in that it seeks a relatively permanent change in an individual that
will improve his or her ability to perform on the job. Training is always in context of a
specific job. It aims at making the subject reach a desired standard of behaviour in a
particular type of work. Training in industry has been defined as “the formal
procedures which a company utilizes to facilitate learning so that the resultant
behaviour contributes to the attainment of the company’s goals and objectives”.
Training is used for the purpose of turning abilities, knowledge, and experience into
particular job skills in a particular organization.
TRAINING PROGRAMMES IN BHEL
BHEL follows the philosophy to establish and build a strong performance driven
culture with greater accountability and responsibility at all levels. To that extent the
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Company views capability as a combination of the right people in the right jobs,
supported by the right processes, systems, structure and metrics.
The Company organizes various training and development programmes, both in-house
and at other places in order to enhance the skills and efficiency of its employees.
These training and development programmes are conducted at various levels i.e. for
workers and for officers etc.
VARIOUS TRAINING PROGRAMMES ORGANISED FOR THE WORKERS IN BHEL:-
S.no Training Programmes Duration Conducted by
1 ISO 9000 and ISO 14000 refresher programme
1 day Worker teachers
2 Personality development 2 days Worker teachers
3 Worker teacher’s day 1 day Worker teachers
4 ISO 14000 awareness ½ day Worker teachers
5 National safety day 1 day Worker teachers
6 Fire fighting ½ day Security officer
7 Worker’s participation in management
3 days Central board of worker’s association
8 Educational trip to Nainital, Rishikesh, Dehradun
7 days Worker teachers
9 Gemba- Kaizen workshop 5 days Kaizen institute
10 Security and fire fighting 1 day Worker teachers
11 Positive approach 1 day Worker teachers
12 Vipassana meditation 2 days Vipassana Sadhna Sansthan
13 Worker’s children- Workshop for young people, personality development
1 day Shakuntala Anand
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TRAINING IN BHEL
BHEL provides training to all its employees as per the policy of the organization.
PURPOSE OF TRAINING: To ensure availability of trained manpower.
SCOPE: All categories of employees
FLOW CHART OF TRAINING PROCEDURE
Fig: - The training procedure
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Identification of Needs
Preparation of Training Plan
Imparting Training
Feedback
Induction Training
Training Effectiveness
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IDENTIFICATION OF NEEDS
MANAGEMENT STAFF
The Performance Appraisal form of the organization has a section in which the
training and development needs are filed up. The person whom the concerned
employee is reporting fills the Performance Appraisal form annually. Such person may
be a branch head or department head.
Identification of training need is done at the Executive Office (EO) level for the
managers through the Performance Appraisal forms annually and the records are
maintained at the Executive Office. Managers are nominated for the various training
courses by the Executive’s Office. Managers may also be nominated to certain
training programmes from the branch if the subject’s covered are found to be of
interest or if they offer a learning opportunity in some emerging areas of knowledge.
Training needs for the department through their Performance Appraisal forms
identifies the officers, which are filled in by the department head. The Performance
Appraisal forms thus give the emerging training needs. This exercise is carried out
annually.
STAFF AND WORKERS
Training needs for staff and workers are identified based on:
- Company’s strategy and policy.
- Organizational Thrust Areas.
- New Emerging Areas.
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This together gives the consolidated system of needs that is prepared by the Personnel
Officer and approved by the Department Head.
PREPARATION OF TRAINING PLAN
On the basis of identified training needs, the annual training calendar is prepared by
the Personnel officer and approved by the Personnel Head. Annual Training Budget is
prepared by Branch Personnel Head and is approved by Executive Office. This gives
the final list of training activities in a particular year. It is attempted to carry out all the
programmes to fulfill the identified needs. The Head of the Personnel Department
monitors the actual training conducted vis-à-vis the identified training needs on a
monthly basis.
IMPARTING OF TRAINING
Actual training is imparted with the help of in-house and outside agencies. The
selection of these agencies is done on the basis of reputation; programmes offered by
them, past experience and feedback received from the earlier participants.
Training is also imparted by nominating the concerned employee for an external
training programme. All records of the training are maintained at branch as per Record
of Training in the Personnel folder and the same is intimated to the Executive Office
Personnel through the Monthly Personnel Report.
FEEDBACK
A feedback is taken from the participants through a questionnaire on the programme
and their impressions in order to further improve upon the same. There are three such
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questionnaires available and one of these is used depending upon the nature of the
training programme and the level of participants. Also, a person from the personnel
department sits through the final session of the programme and takes the verbal
feedback about the programme.
INDUCTION TRAINING
STAFF/ OFFICERS/ MANAGERS
This is carried out as the very first step for any new entrant into the branch at the Staff/
Officer/ Manager level. The department prepares a schedule for the employee as per
which he is required to spend specific time in each department. During such period, he
is reporting to the respective department head. The objective of the induction
programme is to familiarize the participant to the function of different department. The
copies of the same are sent to the General Manager and all concerned. At the end of
the induction, the trainee has to submit a report to the Personnel Department.
WORKERS
In the case of a new entrant, he is called in General shift for 2 days for training under a
senior worker to familiarize him with the welfare facilities like card punching,
canteen, public conveniences, rules and regulations, standing orders, shift timings,
spell outs, medical facilities, leave procedures etc. After two days of training, he is
deployed in the concerned department. The Personnel Officer organizes this.
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MANAGEMENT TRAINEE’S TRAINING
Management trainees are given a fortnight of induction programme. Corporate HR
advises it as per Management Trainee Training programme designed by them.
Thereafter, a detailed training programme is carried out whereby the incumbent is to
understand in depth of working of each department at various locations as per the
programme given by the Corporate HR. Corporate HR maintains all relevant records
pertaining to Management Trainee’s training at Bangalore.
TRAINING EFFECTIVENESS
For each training programme conducted in-house for BHEL Delhi branch personnel, a
training brochure is developed. The brochure developed consists of the following
information:
Programme objectives: Need of the training and what are the objectives that this
training aims to achieve, what likely outcomes are expected to come out of impact of
this training.
Programme content: Topics being covered during the training.
Methodology adopted.
Programme faculty.
Personnel to be covered.
Training methodology.
Training effectiveness criteria and scale.
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The training effectiveness is measured by measurement of the achievement of the
objectives. This lists down the measurement indicators, achievement of which will
ensure that programme objectives are achieved.
A person gets nominated for the training programme in the following two ways:
a) Training programme flowing from the training needs.
b) Training programme for testing out the training/ increased awareness/ general
information/ omnibus training types etc.
TRAINING PROGRAMMES FLOWING FROM TRAINING NEEDS:
The programmes are divided into three broad categories:
Functional
Behavioral
General/ Omnibus programmes
1. Functional: The outcome of the training is measured by comparing the data
pre-training and post-training. A scale is developed for measuring the
effectiveness of training based on the % achievement of the objectives.
2. Behavioral: The effectiveness of the training of this nature is measured
annually. This is seen through the training need identification for the coming
year for the employee. If the training need is repeated there, then the training
provided is taken as ineffective. If the training need is repeated but with focus
on a part of the need, then the training is partially effective. If not repeated,
then the training is effective.
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3. General: These are the training needs flowing directly from the organizational
needs. Examples of these can be ISO 9000 training, ISO 14000 training and
any awareness training. These are omnibus training programmes, which are
run for a large number of employees.
The effectiveness of the training is measured by:
Achievement of those organizational objectives within the time lines.
Number of audit issues raised on the areas covered in the training.
Any other such thing as defined in the training brochure.
The effectiveness of the outside training programme is measured on the same line as
above. However, no detailed brochure is prepared for the same. The measurement
criterion for the programme is defined in the beginning of the programme and
effectiveness measured against the same.
A consolidated effectiveness report of the training programme is prepared at the end of
the year. The programmes that are found to be ineffective are reworked.
Training programme for testing out the training
Also there are training programmes, which are not flowing directly from the training
needs measurement of effectiveness of the training is not needed to be measured.
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TRAINING OF AN OFFICER
Fig. Flowchart for Training of an Officer
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Identification of Training needs
Consolidation of Training needs
AnnualTrainingCalendar
Approval from the Personnel Department
AnnualTrainingBudget
ImpartingTraining
CollectingFeedback forFurther Improvement
Monitoring of Actual Training vis-a-vis the Identified needs
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TRAINING OF A WORKER
Fig - Flowchart for Training of a Worker
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Organizational Thrust Areas
Company Strategy and Policy
New Emerging Areas
Identification Of Training needs
Consolidation Of Training needs
AnnualTrainingCalendar
Approval from the Personnel Department
AnnualTraining foreign institutionalInvestors
ugtMUTUAL FUNDS AND UTI
PRESIDENT OF INDIA
5%a22%g2%a5%n66%gYEAR 2006-07
PIE CHART SHOWING SHAREHOLDING PATTERN OF BHEL FOR THE
Collecting Feedback for Further Training
Monitoring of Actual vs the Identified Training needs.
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STAGES OF CAREER DEVELOPMENT
Hig
h
Exploration Establish
ment
Mid-career Late career Decline Pe
rfor
man
ce
Lo
w
5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
1. Exploration: Many of the critical choices individuals make about their careers
are made prior to their entering the work force on a paid basis. Factors
determining an individual’s decision to choose a career are the careers of their
parents, their interests, their financial background, their schools, colleges, or
universities etc. this stage ends for most of the individuals in their mid twenties
as they make transition from school to work.
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2. Establishment: The establishment stage begins with the search for work and
includes getting the first job, being accepted by the peers, learning the job, and
gaining the first tangible evidence of success or failure in the “real world’.
3. Mid career: Most people do not face their first severe career dilemmas until
they reach the mid career stage. This the time where individuals may continue
their prior improvements in performance, level off, or begin to deteriorate. At
this stage mistakes carry greater penalties.
4. Late career: For those who continue to grow in their mid career stage, the late
career usually is a pleasant time, when one is allowed the luxury to relax a
built and enjoying playing the part of the elder statesman. At this stage
individuals are no longer learning nor are they expected that they should be
trying to outdo their levels of performance from previous years. For those who
have stagnated or deteriorated during their previous stage, the late career
brings the reality that they will not have an everlasting impact or change the
world as they had once thought
5. Decline: the final stage in a career is difficult for everyone but, ironically, is
probably hardest on those who have continued successes in the earlier stages.
This is time for retirement. Adjustments will have to be made regardless of
whether one is leaving a sparkling or a dismal career.
Organizations have an obligation to improve the “quality of work life” of its
employees. Though the ‘quality of work life’ refers not just to things like working
conditions or pay but also to the extent to which each employees is able to utilize fully
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his or her abilities, engage in interesting jobs and obtain the training and guidance that
allows the person to move to jobs and obtain the training and guidance that allows the
person to move up to jobs that fully utilize his or her potential. One way this trend is
manifesting itself is in the increased emphasis many managers are placing on
CARRER PLANNING AND DEVELOPMENT, an emphasis, in other words, on
giving employees the assistance and opportunities that will enable them to form
realistic career goals and realize them.
Career Development is the planning of one’s career and the implementation of career
plans by the means of education, training, job search and acquisition and work
experiences.
(i) Career planning- is a subset of a career development. It is the personal process
of planning one’s work life. This includes evaluating one’s abilities and
interests, examining career opportunities, setting career goals and planning
appropriate developmental activities. It can be assisted through career
counseling, career workshops, and dissemination of information about jobs,
within and outside the organization.
(ii) Career management- is another subset of career development. It focuses more
on open plans and activities done by the organization. In career management
the management of the organization matches employee career plans with the
organizational needs and implements programmes to the entire process.
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Succession Planning
Succession planning and management development remains as central activities of
human resource planning. It is now frequently necessary to encompass middle and
lower level management along with the senior positions. Succession planning, which
involves planning, continuity, or replacement analyses and development strategies
among other activities, serves as a “centre point” for management development.
Now greater demands are made of management development planning. This is needed
to fulfill successfully human resource strategic plans, the main thrust of which is
succession. Due to the fact that senior positions, highly rated succession candidate and
high potential people are involved, the source of information and utilization of these
for strategic purposes are more complex than for lower level positions. The area is also
highly sensitive to political matters.
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CAREER DEVELOPMENT
CAREER PLANNING
Appraise one’s self: Skills,Interest, Value, Strengths,Weaknesses
Identify opportunities within and outside the organisation.
Set goals: short term, Intermediate, Long-term
Prepare plans Implements plans
CAREER MANAGEMENTIntegrate with Human Resource PlanningDesign career paths, Disseminate career Information.Publicise job openings.Assess employees .Career counselling.Work experience for development.Supportive boss.Education and training New Personnel policies.
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In succession work, the most complex and highest order of analyses usually involves
attempting to systematize and draw inference from the results of performance
management. The succession planning system also frequently includes capabilities for
the identification and nurturing of high potential people. “High Potential” are those
seen as promo table for atleast two levels and whose creative abilities and leadership
contribute heavily to organizational continuity, growth and renewal.
Career development too is firmly embedded in succession processes. Succession
planning and development of managerial resources seek to stimulate, guide and
integrate individual career needs. Career development moves will need to be seen as
fulfilling important and valued career objectives and motivational requirements to
maintain the personal interest, drive and even affiliations. Personnel involved in
succession planning processes play, potentially, a central role in the success of the
organization’s career management activities.
Career Counseling and Career Workshops
In today’s changing business environment, where organizations are choosing for de-
layering, downsizing, and retrenchment, there is an increasing need felt for career
counseling and workshops so as to save the employees from career related blues.
Various organizations are resorting to these techniques so as to maintain the
commitment of their employees.
Career counseling is considered to one of the most logical parts of career
development. This can appropriately be made part of an individual’s annual
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performance review. The four elements that the dialogue between the career counselor
and employee should contain:
a. the employee’s goals, aspirations, and expectations with regard to his her own
career for the next five years or longer
b. the manager’s view of the opportunities available and the degree to which the
employee’s aspirations are realistic and match up with the opportunities
available
c. identification of what the employee would have to do in the way of further self
development to qualify for new opportunities
d. Identification of the actual next steps in the form of plans for new development
activities or new job assignments that would prepare the employee for further
career growth.
Thus, the final outcome should be a mutual understanding between the employee and
the manager as to the realistic expectations the employee should hold about a career
within the organization.
Management is considering the value of career workshops to facilitate career
development. By bringing together groups of employees with their supervisors and
managers, problems and misperceptions can be identified and, it is hoped, resolved.
Entry workshops are being offered to new entrant alongwith the orientation and
socialization activities. Mid career workshops are helping individuals to assess their
career development in the organization. These workshops frequently include self
diagnostic activities for employees, diagnosis of the organization, and alignment of the
separate diagnosis to identify potential mismatches.
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DATA ANALYSIS AND FINDINGS
What are HR current trends in BHEL?
CHALLENGES 30
OPPORTUNITIES 15
BOTH 5
The trends provide organization with challenges.
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Whether the existing HRP policy is linked to productivity?
Do you feel that manpower recruitment has been rationalised by way of automation?
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Do you feel that job evaluation and job analysis helps in HRP in BHEL?
Are you satisfied with the existing HRP system of BHEL?
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Factor behind changing trends
1 GLOBALIZATION 20
2 RAPID TECHNOLOGICAL CHANGES 5
3 TOUGHER COMPETITION 3
4 CHANGE IN WORKFORCE COMPETITION 14
5 ORGANISATION CHANGES LIKE ALLIANCES 8
The main factor behind changing trend is Globalization.
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Tackling change by changing HR strategies in BHEL
Yes 30
No 20
Yes organization tackle changes by changing HR strategies.
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Activities for Success of HR management in BHEL
STRONG HR LEADERSHIP 20
ACUTE FUTURE ORIENTATION 30
FLEXIBILITY & CREATIVITY 5
JOB ROTATION 5
Acute future orientation lead to success of human resource management.
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CONCLUSION & RECOMMENDATIONS
Increasing organizational size and its complexity, transition from traditional to
professional management, changing social and cultural norms, globalization of
industry and availability of information technology are constantly changing the profile
of HRM functions. Therefore, the HRM’s role should be more flexible, innovative and
constantly responding to the challenges of the environment. Hence the new HR’s role
has to be responsive to the human hopes and aspirations and situational changes both
within and outside BHEL.
There are certain measures which helps BHEL the making Human Resource planning
effective. Top management of BHEL should place the HR department at a level equal
to other functional departments in BHEL hierarchy and give importance to HR
mangers at par with other functional managers in working, finance etc. Top level
mangers of BHEL usually prepared plans by human resource division in consultation
with other corporate heads. So, BHEL all level managers should be creative and
adaptive. They should act as change agents rather than confining themselves to
conventional roles of officers, specialists, clerical etc.
In the light of above analysis the human resource manager has to take some new roles.
Making the shift to a new HR role will raise unique issues for every HR group that
attempts it, but there are some common steps and activities that will increase the
likelihood of success.
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Some of these steps and activities are:
Strong HR leadership. As with any major change effort, a strong leader can
develop a clear vision, motivate others to share that vision, and help them work
toward achieving it. In order to change the role of HR in BHEL, the HR leader will
need to work both within the HR group and with the organizational leaders to
reshape everyone's expectations of what HR can and will deliver.
Acute future orientation. One of the ways that HR can provide value is to
understand how changing environmental, organizational, and workforce factors
will likely influence the business, anticipate the associated HR needs, and be
prepared to deliver appropriate solutions to meet those needs.
Flexibility and creativity. Responsiveness in the changing world of work will
require being flexible-as the organizations change, so will their needs and
priorities. In addition, traditional activities and processes may not be sufficient to
meet the unique needs of the future-HR leaders will likely rely on creativity of
their groups to achieve effective results. Increasing globalization of the market will
create a need for both flexibility and creativity as businesses try to succeed in new
locations, with a new workforce, and with new customers.
Delivering value. Although this is not a new challenge for HR, it remains a
critical one. HR is still perceived by many within today's organizations as simply a
non-revenue generating function. It is important to make apparent the value
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provided by working with the management team to hire the right people, manage
them well, pay them appropriately, and build a working environment that
encourages success.
Business unit assignment. Some companies are assigning HR employees to
specific business units as a way of enabling them to develop a focused relationship
with a small part of the business. This relationship can be enforced when the HR
person has a direct reporting relationship with the leader of the business unit.
Centers of excellence. As organizations grow, they often find themselves with
multiple HR groups. These can be duplicative or complementary. When they are
duplicative, they can be subject to (painful) downsizing and consolidation, leaving
behind a department that is unable to serve all areas of the business which can, in
turn, undermine the credibility of HR. An effective response to this issue is to
utilize the multiple HR groups differently. One approach that seems to work well
is to develop "centers of excellence," where the HR groups in different parts of the
company develop their expertise in a particular area and serve the needs of the
larger company in that area-HR groups operating within this model can see each
other as resources rather than competitors, and the company benefits from high
levels of expertise in a number of areas.
Consulting model. A number of HR departments have adopted a consulting
model of providing service. They view their internal customers as clients, learn
consulting skills, and take their client satisfaction as a measure of their success.
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Job rotation. One way to bring the perspective of the business into HR-and vice
versa-is to rotate line managers into the HR function for periods of time. These
individuals often serve as reality checks for the HR group, and then bring an
increased understanding of the value of HR back to their line function when the
rotation is over. Sending HR people into other areas of the business can serve a
similar purpose.
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BIBLIOGRAPHY
Armstrong M: Strategic Human Resource Management, Kogan Page, 2006.
Aswathappa K, Human Resource and Personnel Management, 2nd Edition, McGraw-
Hill Publishing Company Ltd., New Delhi.
Dessler, G., Human Resource Management, Prentice-Hall of India, 2007.
Monappa, Arun, Managing Human Resources, Indian Institute of Management, 3rd
Edition, Tata McGraw Hill Publishing Company, New Delhi, 2005.
Rakesh K. Chopra, Management of Human Resources, V.K. Publishing House
www.theconnectinglink.net/meet_staff.html.
http://www.businessworldindia.com
http://www.ciol.com
www.hrlinks.com
www.bhel.com
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QUESTIONNAIRE
Q1. What are HR current trends in BHEL?
CHALLENGES OPPORTUNITIES BOTH
Q2. Whether the existing HRP policy is linked to productivity?
Yes No Can’t say
Q3. Do you feel that manpower recruitment has been rationalised by way of automation?
Yes No Can’t say
Q4. Do you feel that job evaluation and job analysis helps in HRP in BHEL? Yes No Can’t say
Q5. Are you satisfied with the existing HRP system of BHEL?
Yes No Can’t say
Q6. Factor behind changing trends
GLOBALIZATION RAPID TECHNOLOGICAL CHANGES TOUGHER COMPETITION CHANGE IN WORKFORCE COMPETITION ORGANISATION CHANGES LIKE ALLIANCES
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Q7. Tackling change by changing HR strategies in BHEL
Yes No
Q8. Activities for Success of HR management in BHEL
STRONG HR LEADERSHIP ACUTE FUTURE ORIENTATION FLEXIBILITY & CREATIVITY JOB ROTATION
Q9. Any suggestion to improve the effectiveness of HR planning at BHEL
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