Human Resource Management PDF

 Human Resource Management Pravin Durai Associate Professor St Joseph’s College (Autonomous) Tiruchirappalli Durai_FM.indd i...

 Human Resource Management Pravin Durai Associate Professor St Joseph’s College (Autonomous) Tiruchirappalli Durai_FM.indd i 10/17/2011 12:56:21 PM  To My Parents Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Licensees of Pearson Education in South Asia No part of this eBook may be used or reproduced in any manner whatsoever without the publisher’s prior written consent. This eBook may or may not include all assets that were part of the print version. The publisher reserves the right to remove any material present in this eBook at any time. ISBN 9788131767832 eISBN 9788131798737 Head Office: A-8(A), Sector 62, Knowledge Boulevard, 7th Floor, NOIDA 201 309, India Registered Office: 11 Local Shopping Centre, Panchsheel Park, New Delhi 110 017, India Durai_FM.indd ii 10/17/2011 12:56:22 PM  Contents Preface vii Limitations of Job Design 54 About the Author ix Recent Trends in Job Design 55 PART I HUMAN RESOURCE MANAGEMENT— 3 Human Resource Planning 60 A CONCEPTUAL FRAMEWORK 1 Introduction 61 Characteristics of Human Resource 1 Introduction to Human Resource Planning 62 Management 1 Significance of Human Resource Introduction 1 Planning 62 Meaning of Human Resources 2 Factors Affecting Human Resource Uniqueness of Human Resources 3 Planning 65 Objectives of HRM 4 Human Resource Planning Scope of HRM 5 Process 67 Functions of HRM 6 Requirements for Effective HR HRM and Personnel Management Planning 78 (PM) 10 Benefits of HR Planning 78 HRM as a Profession 11 Barriers to the HR Planning Process 79 Qualities of an HR Manager 13 4 Recruitment 83 Line Versus Staff Authority of HRM 14 Introduction 84 The Future Role of HRM 16 Definitions of Recruitment 84 Features of Recruitment 84 PART II HR PROCUREMENT 22 Recruitment Policy 85 2 Job Analysis and Design 22 Recruitment Organization 87 Introduction 23 Recruitment Process 88 Features of Job Analysis 23 Steps in the Recruitment Process 88 Important Terms in Job Analysis 24 Sources of Recruitment 90 Goals of Job Analysis 25 Recruitment Practices in India 98 Job Analysis Process 29 5 Selection 102 Techniques of Data Collection in Job Analysis 32 Introduction 102 Differences Between Recruitment Job Description 37 and Selection 103 Job Specification 39 Phases of the Selection Process 103 Challenges Affecting the Effectiveness Employment Application Forms/ of Job Analysis 41 Blanks 105 Job Design 43 Selection Tests 107 Environmental Influence on the Job The Selection Interview 112 Design 44 Strategy for an Effective Interview Critical Components of Job Design 48 Process 115 Durai_FM.indd iii 10/17/2011 12:56:22 PM  iv CONTENTS Weaknesses of the Interview Assessing Training Needs 161 Method 116 Scope of Training 163 Reference Checks 117 Steps in an Employee Training Physical Examination 117 Process 164 Job Offer 118 Methods of Training 167 The Selection Process in India 118 Audio-visual Aids in Training 172 6 Orientation, Socialization and Evaluation of a Training Placement 122 Programme 172 Introduction 123 Design of Evaluation Studies 173 Purpose of Employee Orientation 124 Effects to be Measured in Evaluation 174 Types of Orientation 125 Process of Orientation Programme Issues in Training 174 Development 127 Conditions Necessary for an Effective An Effective Orientation Training Programme 175 Programme 129 E-learning—An Overview 176 Problems in Orientation 131 9 Management Development 182 Socialization 132 Introduction 183 Differences Between Orientation and Significance of Management Socialization 133 Development 184 The Socialization Process 133 Goals of Management Dimensions of Organizational Development 184 Socialization Strategies 135 Steps in a Management Development Placement 136 Process 185 Methods of Management Development 186 PART III HUMAN RESOURCE Evaluation of the Development DEVELOPMENT 140 Programme 191 7 Career Planning and Guidance 140 Management Succession Planning 192 Introduction 140 Features of Career Planning 141 PART IV HR EVALUATION AND COMPENSATION 198 Objectives of Career Planning 142 Important Terminology Used in Career 10 Performance Evaluation and Job Planning 142 Evaluation 198 Process of Career Planning 144 Performance Evaluation: An Responsibility for Career Planning and Introduction 199 Development 148 Performance Evaluation: An Merits of Career Planning 149 Overview 199 Performance Management: An Limitations of Career Planning 151 Overview 200 Measures to Improve the Effectiveness of Objectives of Performance Career Planning 152 Evaluation 200 Career Guidance 154 Uses of Performance Evaluation 201 8 Employee Training 158 Determining the Criteria for Performance Evaluation 204 Introduction 159 The Process of Performance Significance of Employee Training 159 Evaluation 205 Durai_FM.indd iv 10/17/2011 12:56:22 PM  CONTENTS v Selection of the Evaluator for Conducting the Performance Evaluation 207 PART V HR MAINTENANCE AND Performance Evaluation Methods 209 MOTIVATION 296 Issues in Performance Evaluation 221 13 Employee Well-Being 296 Steps to Overcome the Problems in the Introduction 297 Evaluation Process 223 Objectives for Providing Employee The Post-performance Evaluation Safety 297 Interview: An Overview 223 Steps in an Employee Safety Job Evaluation 224 Programme 298 Characteristics of Job Evaluation 225 Need for Employee Safety 300 Objectives of Job Evaluation 225 Essentials of an Effective Safety The Job Evaluation Process 225 Programme 301 Methods of Job Evaluation 227 Statutory Provisions Concerning Benefits of Job Evaluation 231 Employee Safety and Health 303 Limitations of Job Evaluation 232 Behaviour-based Safety Management Measures to Enhance the Effectiveness of and Approach 304 Job Evaluation 233 Industrial Accidents 305 Employee Health 310 11 Compensation Administration 238 Stress 311 Introduction 239 Stress Management 315 Objectives of Compensation Administration 239 14 Employee Welfare and Social Types of Compensation 241 Security 320 Theories of Compensation 243 Introduction 321 Concept of Wages 245 Features of Employee Welfare 321 Pay Structure 246 Objectives of Employee Welfare 322 Factors Influencing Compensation (Wages Types of Welfare Measures 323 and Salary) Administration 250 Employee Welfare Responsibility 326 Steps in Compensation Theories of Employee Welfare 328 Administration 254 Merits of Welfare Measures 330 Challenges in Compensation Limitations of Welfare Administration 256 Measures 331 Executive Compensation 258 Social Security 332 12 Incentives and Benefits 267 15 Workers’ Participation and Introduction 268 Empowerment 341 Objectives of Wage Incentives 268 Introduction 342 The Wage Incentive Planning Features of WPM 342 Process 269 Objectives of WPM 343 Prerequisites for a Good Incentive Levels of WPM 344 Scheme 271 WPM Methods 344 Types of Incentive Schemes 274 Achieving WPM 345 Evaluation of Wage Incentive Essential Prerequisites for Schemes 288 Effective WPM 349 Fringe Benefits 290 Significance of WPM 350 Durai_FM.indd v 10/17/2011 12:56:22 PM  vi CONTENTS Obstacles Faced by Effective WPM 351 Douglas McGregor’s Hot Stove Rule of Employee Empowerment 352 Discipline 413 Code of Discipline 413 16 Job Rotations 360 Introduction 361 19 Employee Grievances 417 Characteristics of Promotion 361 Introduction 417 Objectives of Promotion 362 Characteristics of Grievances 418 Sources of Grievance 418 Criteria for Promotion 362 Techniques of Grievance Kinds of Promotion 365 Identification 420 Essentials of a Sound Promotion The Grievance Procedure 422 Policy 366 Essentials of a Good Grievance Demotion 367 Procedure 426 Transfer 369 Benefits of the Grievance Redressal Employee Separation 371 Procedure 427 Statutory Provisions Concerning the PART VI HR INTEGRATION 378 Grievance Redressal Procedure in India 428 17 Industrial Relations 378 The Model Grievance Procedure 428 Introduction 378 Characteristics of Industrial PART VII HR SPECIAL TOPICS 432 Relations 380 20 Ethical Issues in Human Objectives of Industrial Relations 380 Resource Management 432 Major Players in Industrial Introduction 432 Relations 381 Types of Ethics 434 Approaches to the Study of Industrial Relations 383 Ethics and Human Resource Management 434 Industrial Relations Trends 388 Need for Ethical Policies and Codes 435 Factors Influencing Industrial Relations 390 Approaches to Ethical Issues in Organizations 436 Essentials of Effective Industrial Factors Influencing Ethical Behaviour at Relations 391 Work 438 18 Discipline and Disciplinary Role of HRM in the Development of Action 394 Ethical Behaviour 440 Introduction 394 International Business Ethics 443 Characteristics of Employee Guidelines for International Business Discipline 395 Organizations on Ethical Issues 444 Objectives of Discipline 396 Ethical Dilemma in Global Wage Payment 445 Types of Discipline 398 Symptoms and Causes of Miscellaneous Topics 448 Indiscipline 402 Human Resource Policies 448 Types of Disciplinary Action 406 Cost-Benefit Analysis of Recruitment Steps in Establishing a Disciplinary Sources 449 Action Procedure 408 Employee Mobility 450 Essential Steps to Enhance the Employee Attrition 453 Effectiveness of Discipline Meetings 410 Case Studies 457 Elements of a Good Disciplinary System 411 Model Question Papers 475 Durai_FM.indd vi 10/17/2011 12:56:22 PM  Preface During the course of my teaching and research career of more than twenty years, I have seen the emergence of a workforce that is a well-informed, dynamic and diverse entity. To be successful in effectively handling such a workforce, employers, managers and supervisors need to be up to date with the current trends as well as possess a strong theoretical foundation of human resource practices. The contents of Human Resource Management have been developed, therefore, to provide students as well as practicing managers with all- inclusive, multifaceted information in a highly readable and understandable form. Besides adopting a user- friendly format, each chapter in the book has several unique real-life examples to support its theoretical discussion and help readers understand the subject matter easily. Organization This book has 20 chapters to enable readers gain complete insights into the different domains of HRM. Based on the role and responsibilities of HR managers, these chapters are divided into seven parts. The parts and their purposes are: Part I—Human Resource Management—A Conceptual Framework familiarizes the reader with the elements of human resource management. Part II—Procurement provides an insight into the topics connected with recruitment, selection and placement of human resources in the organization. Thus, this part includes job analysis, HR planning, recruitment, selection and placement, orientation and socialization. Part III—Development focuses on the topics relating to employee training and management development. The areas of discussion under this part are career planning and development, employee training, man- agement development. Part IV—Evaluation and Compensation comprehensively deals with the core and critical areas of HR man- agement such as employee performance evaluation, compensation administration, and incentives and benefits management. Part V—Maintenance and Motivation discusses matters relating to employee motivation and retention. This part covers employee well-being, employee welfare and social security, workers’ participation and empowerment, and job rotations. Part VI—Integration offers an insight into the activities that foster employer-employee relations. This part thus includes chapters on industrial relations, discipline and disciplinary action, employee grievance. Part VII—Special Topics discusses in detail the emerging areas of human resource management such as ethical issues in human resource management and international human resource management. Miscellaneous Topics discusses assorted topics such as human resource policies, cost-benefit analysis of recruitment sources, employee mobility and employee attrition. Each part in this book received equal weightage in terms of treatment and coverage. Thus, the readers will find an elaborate discussion even on newer areas of human resource management. Durai_FM.indd vii 10/17/2011 12:56:22 PM  viii PREFACE The Teaching and Learning Package A full range of resources that support teaching and learning is available on the companion Web site of this book. PowerPoint lecture slides provide the outlines and key topics of each chapter Feedback To share your feedback on this book, readers can write to me at [email protected] ACKNOWLEDGEMENTS I express my deep sense of gratitude to everyone who helped me in their own way in writing this book. I gratefully acknowledge all institutions like Ashok Leyland, Dorling Kindersley, Infosys, Mind Tools Limited, the Ministry of Labour of the Government of India, Political and Economic Risk Consultancy, Tata Services Limited, the Reserve Bank of India, and Tube Investments of India Limited for their permission to use information pertaining to them in this book. I also thank Ankush Gupta for his permission to utilize excerpts from his article in Chapter 19 of this book. Similarly, I am indebted to all the reviewers for their feedback and valuable suggestions. I sincerely thank the Jesuit management of St. Joseph’s College (Autonomous), Tiruchirappalli, for pro- viding me with a supportive work environment that enabled me to write this book. I have no words to express my gratitude to my wife, Pramila Pravin, who painstakingly ensured that I was not troubled by my family commitments while writing this book. I would like to express my appreciation for my children, Ashwin and Sherine, for their love and affection. Finally, I express my gratitude to Pearson Education for publishing this book. Amarjyoti Dutta and Jonaki Ray deserve a special mention for their sustained interest and worthy suggestions in the manuscript develop- ment. I welcome any critical reviews and feedback from readers, and would consider those as the real reward for writing this book. Pravin Durai Durai_FM.indd viii 10/17/2011 12:56:22 PM  About the Author Pravin Durai is Associate Professor, Department of Commerce at St. Joseph’s College (autonomous), Tiruchirappali. He is also a visiting faculty at the Tiruchirappalli branch of Southern India Regional Council of Institute of Chartered Accountants of India (ICAI) and St. Joseph’s Institute of Management, Tiruchirappalli. He is a mem- ber of the board of studies for M. Com. Courses at the Bharathidasan University. He is also a member of the one-man commission of the Bharathidasan University for granting recognition to M.Phil and PhD programmes of its affiliated colleges. He is the coordinator of the Micro Quality Assurance Cell (MQAC) at St. Joseph’s College, Tiruchirappalli. Dr Durai has received master’s degrees in commerce and business administra- tion as well as a Ph. D. in organizational behaviour. He has more than twenty years of teaching and research experience and has published many articles in reputed journals. He has produced three doctorates and over 25 M.Phil Graduates. He has success- fully completed a UGC sponsored research project on the problems of Handloom Weavers in TamilNadu. He is one of the authors of a custom book- Management-II for Gujarat Technological University (GTU) published by Pearson Education. Durai_FM.indd ix 10/17/2011 12:56:22 PM  PART I: Human Resource Management — A Conceptual Framework CHAPTER Introduction to Human 1 Resource Management CHAPTER OBJECTIVES After reading this chapter, you should be able to: 1 Understand the meaning of human resources 2 Define the objectives, scope and functions of human resource management (HRM) 3 Differentiate between HRM and personnel management 4 Enumerate the qualities of HR managers 5 Discuss the future role of HRM Infosys Technologies has been adjudged the best performance of employees in a scientific manner employer of the year by a number of leading through a competency-mapping system and human resource (HR) surveys for its outstand- (iv) using a variable compensation structure, which ing HR practices. It is one of the few companies considers the collective performance of the indi- that succeeded in greatly influencing the attitude vidual, the team and the organization as a whole and behaviour of the employees and the perfor- for fixing the employee-compensation packages. mance of the organization through creative HR To sum up, its HR philosophy, policy, practices and practices. management have played a pivotal role in making The HR policies of Infosys include: (i) focus- Infosys a $2billion company today. ing on the learnability of candidates in recruitment; The success story of Infosys is a proof that HR (ii) emphasizing continuous learning through management (HRM) can be a definite competitive employee training. For this reason, it has devel- advantage for a firm and can make a real difference oped a world-class training centre called the Global not only to the fortune of the organizations but also Education Center at Mysore to train fresh recruits to the individuals as well. Keeping this success story and an Infosys Leadership Institute to develop in mind, let us first learn the basics of HRM in this future leaders of the companies; (iii) evaluating the chapter. Introduction Every organization is essentially a combination of physical and human resources (HR). Physical resources refer to materials, money and machines pre-arranged by the organization for production or trade. Human resources, on the other hand, refer to the knowledge, education, skills, training Durai_Chapter 01.indd 1 10/17/2011 12:38:13 PM  2 HUMAN RESOURCE MANAGEMENT and proficiency of the members of the organization. All organizational resources are important for achieving the objectives of an organization. In fact, the effectiveness of an organization lies in the judicious blending of the two resources to achieve optimum competency. However, for a long time, it was felt that the efficient utilization of physical resources was primary for developing an organization. This was so because the acquisition of physical resources resulted in a huge outflow of funds and those assets carried a definite value. On the contrary, it was felt that hiring employees never cost anything substantial for a firm and it was also quite easy to replace them. This made human resources less important for employers. But, in the past decade, employers have realized that intellectual capital is critical to business success. The main reasons for this change are due to the understanding that 1. Product innovation and marketing strategy, which are crucial for market survival and growth in a competitive environment, are possible only when a good and creative workforce is present. 2. The challenge, opportunities and even disputes of creating and managing organiza- tions arise mostly from people-centred problems. 3. People are not alike and they cannot be treated identically. They differ physically and psychologically. These differences require individual attention in order to achieve the optimum productivity. Indian organizations are no exception to this change in understanding. They realize that tech- nology by itself cannot triumph in the market and that technology coupled with a workforce is essential for the success of an organization. The growing importance of HR in Indian orga- nizations is best reflected in their mission statements. The mission statements of a few Indian organizations, which emphasize the significance of human resources, are presented in Table 1.1. Meaning of Human Resources Organizations are managed by people and through people. Without people, organizations can never exist. Indeed, people who make up the human resources of a company are unique and they can make or break an organization, depending upon their level of commitment, contribu- tion and cooperation. Hence, it is relevant to know the intricacies of the term human resources first, before we discuss HR management (HRM) in detail. Different people have defined human resources differently. Box 1.1 showcases the various definitions of human resources. Table 1.1 Mission Statements of a Few Organizations To develop ICICI Bank into an organization that is empowered by bright and talented individuals, work- ing in teams and riding on the backbone of world-class technology. –ICICI BANK To be a globally respected corporation that provides the best-of-breed business solutions leveraging technology delivered by the best-in-class people. –INFOSYS To deliver superior value to our customers, shareholders, employees, and society at large. –ADITYA BIRLA GROUP To ensure anywhere and anytime banking for the customer with the latest state-of-the-art technology and by developing effective customer-centric relationships and to emerge as a world-class service pro- vider through efficient utilization of human resources and product innovation. – ALLAHABAD BANK Durai_Chapter 01.indd 2 10/17/2011 12:38:13 PM  INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 3 Box Definitions of human resources 1.1 Human resources are “a whole consisting of inter-related, “From the national point of view, human resources are inter-dependent and interacting physiological, psycho- knowledge, skills and attitude obtained in the population; logical, sociological and ethical components.”1 while for individual enterprises, they represent the total –Michael J. Jucius of the abilities, knowledge and skills of its employees.”2 –Leon C. Megginson We would define human resources as the collection of people and their characteristics at work. These are distinct and unique to an organization in several ways. Uniqueness of Human Resources The distinct features of human resources are: 1. Human resources are the only assets that appreciate over a period while physical resources just depreciate with years. 2. Further, human resources alone can produce an output larger than the input. This is possible due to the creative skills of humans. Creative thinking is the process of pre- dicting, envisioning and then inventing an idea, concept or insight along innovative and alternative lines. People in the organization are the only basis for such creativity and there is no obvious limit to their imagination. 3. Organizations require human resources of different types to operate all physical resources. Thus, they provide utility value to each one of the physical assets. In fact, the real worth of a physical asset depends on the quality and calibre of the people working with it. An incompetent workforce will spoil the physical resources available to it. 4. There is a growing realization that the flexibility of an organization depends more on people than on any technical factors. Modern equipment may ensure quality and cost- competitiveness but the operational flexibility, which is core to product modification and innovation, is provided only by the employees. This is so since humans alone could grasp the situation adequately and respond suitably. The effective utilization of human resources is a complex task. It requires greater fore- sight and strategic consideration on the part of the management. For instance, attracting the most qualified employees, matching them to the jobs for which they are best suited and retaining them within the organization are significant for the success of an organization. But this calls for closer coordination and better understanding between the employers and the employees. However, many enterprises are too large to permit close contact between the top management and the employees. This is where HR managers act as a crucial link between the management and the employees. HRM, as a field of study, makes a sincere effort to provide knowledge, skills and ability for managing human resources more effectively. The basic task of HRM is the selection of the right person for the right job at the right time to carry out the activities of an organization in the most efficient way. It also aims to enhance the satisfaction, morale and productivity of employees, control labour turnover, and help organizations increase their performance by providing the necessary training and development opportunities, suitable working conditions and appropriate career growth to employees. Durai_Chapter 01.indd 3 10/17/2011 12:38:13 PM  4 HUMAN RESOURCE MANAGEMENT Box Definitions of HRM 1.2 “Personnel management, or say human resource man- “Human resource management is concerned with the agement, is the planning, organizing, directing and people dimension in management. Since every orga- controlling of the procurement, development, com- nization is made up of people, acquiring their services, pensation, integration, maintenance and separation of developing their skills, motivating them to higher levels human resources to the end that individual, organiza- of performance and ensuring that they continue to main- tional and social objectives are accomplished.”3 tain their commitment to the organization are essential to –Edwin B. Flippo achieving organizational objectives. This is true, regard- less of the type of organization—government, business, “Personnel management is that part of management (which education, health, recreation, or social action.”5 is) concerned with people at work and with their relation- –David A. Decenzo and Stephen P. Robbins ships within an enterprise. Its aim is to bring together and develop into an effective organization the men and women “Human resource management is a series of integrated who make up an enterprise and, having regard for the well- decisions that form the employment relationship; their being of the individual and of working groups, to enable quality contributes to the ability of the organizations and them to make their best contribution to its success.”4 the employees to achieve their objectives.”6 –Institute of Personnel Management (IPM) –George T. Milkovich and John W. Boudreau Though different authors have defined HRM differently, they have all emphasized the effective utilization of the workforce for accomplishing the organizational and individual goals and objectives. Some of these definitions of HRM are mentioned in Box 1.2. To sum up, we can say that HRM is concerned with policies and practices that ensure the best use of the human resources for fulfilling the organizational and individual goals. Objectives of HRM The primary objective of HRM is to take care of the work life of the employees from the time they join the organization to the time they leave it, while ensuring their best possible coop- eration in achieving the organizational goals and objectives. This broad objective of HRM can be classified into the following specific ones: 1. To act as a liaison between the top management and the employees 2. To arrange and maintain adequate manpower inventory, which, in turn, ensures the smooth working of the organization 3. To offer training as a way of developing skills, enhancing productivity and, most impor- tantly, increasing individual and organizational performance to achieve the desired results 4. To devise employee benefit schemes for improving employee motivation and group morale and enhancing employer–employee cooperation 5. To ensure and enhance the quality of work life, which refers to the employees’ perception of their physical and psychological well-being at work 6. To help keep up ethical values and behaviour amongst employees both within and outside the organization Box 1.3 describes the HR objectives of the Tata group. Durai_Chapter 01.indd 4 10/17/2011 12:38:13 PM  INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 5 Box HR Objectives of the Tata Group 1.3 A Tata company shall provide equal opportunities to all maintaining a work environment free of all forms of its employees and all qualified applicants for employ- harassment, whether physical, verbal or psychological. ment without regard to their race, caste, religion, colour, Employee policies and practices shall be administered ancestry, marital status, gender, sexual orientation, age, in a manner consistent with the applicable laws and the nationality, ethnic origin or disability. other provisions of this code, respect for the right to pri- HR policies shall promote diversity and equality in vacy and the right to be heard, and that in all matters the workplace as well as compliance with all local labour equal opportunity is provided to those eligible and that laws, while encouraging the adoption of the best inter- decisions are based on merit. national practices. Adapted from: http://www.tata.com/aboutus/ Employees of a Tata company shall be treated with articles/inside.aspx. dignity and in accordance with the Tata policy of Scope of HRM The scope of HRM is extensive and exhaustive. An understanding of HRM is important to anyone who is employed in an organization. HR issues become important wherever there is a group of workers. Staffing is performed by all the managers as a managerial function, either directly or indirectly through the HR department. All managers are, in this way, HR managers since they get involved in HR activities like choosing, training, inducting, compensating and motivating the employees along with industrial relations activities. Thus, they must under- stand the scope and application of the personnel policies of their organization in order to ensure that their everyday personnel actions are consistent with those policies as any violation of such policies may get them into confrontations with their subordinates. Further, knowledge of the basics of HRM is important even to non-managerial employ- ees as they may be keen to know the impact of the personnel policies of their organization on their own compensation, training and career growth aspects. Thus, the personnel aspects of management run through the entire organization. The Institute of Personnel Management (IPM)7 has mentioned the scope of HRM as follows: Personnel or Labour Aspect The first aspect deals with manpower planning, recruit- ment, selection, placement, transfer, promotion, training and development, lay-offs and retrenchment, remuneration, incentives and productivity. Welfare Aspect This aspect is concerned with the working conditions and with amenities such as canteen, crèches, rest- and lunch-rooms, housing, transport, medical assistance, educa- tion, health and safety, and recreation facilities. Industrial Relations Aspect This aspect pertains to union–management relations, joint consultations, collective bargaining, grievance and disciplinary actions, and settlement of disputes. In the last decade, there has been a realization amongst managers that good plans, effective organizational structures, impressive plants and modern technologies may not guarantee the success of the organization unless they hire the right persons, train them suitably, appraise them properly, and constantly motivate them to get the desired results. This new understanding Durai_Chapter 01.indd 5 10/17/2011 12:38:13 PM  6 HUMAN RESOURCE MANAGEMENT showed the way for further research in the field of HR aspects, resulting in the development of new techniques and styles of HR management. This has further widened the scope of HRM. Functions of HRM HRM functions (also called processes) are carried out by the HR managers to fulfil the goals and objectives of the organization. As illustrated in Figure 1.1, they perform two sets of func- tions, namely managerial functions and operative functions. The managerial functions are the basic functions performed by the HR managers in their capacity as managers or heads of their own departments. In fact, all managers, irrespective of their departments, perform these functions. The operative functions, on the other hand, are specialized activities per- formed exclusively by the HR managers, usually for all the departments. We shall first discuss the managerial functions. Managerial Functions Functions like planning, organizing, staffing, directing and controlling constitute the core managerial functions of an organization. The specific activities performed under each of these functions are explained as follows: Planning It is an effective tool to deal with the future. It involves the process of pre- determining the personnel programmes that are necessary to attain the organizational goals. In this context, accurate forecasting is vital to the success of any plan. Planning is such a crucial function for an organization that it is the key to all other managerial functions. The steps involved in planning are Establishing goals and objectives to be achieved Developing rules and procedures Determining plans and forecasting techniques Functions of HRM Managerial Functions Operative Functions Planning Procurement Organizing Development Staffing Compensation Directing Maintenance and motivation Controlling Integration Industrial Relations Figure 1.1 Functions of HRM Durai_Chapter 01.indd 6 10/17/2011 12:38:13 PM  INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 7 Organizing Once the plans are formulated, the next step is to organize the men and material in order to accomplish those plans. Organizing is a process through which the firm establishes its structure and determines the authority, responsibility and accountability of each member in relation to the job. Thus, organizing involves Giving each member a specific tasks Establishing departments and divisions Delegating authority to the members Establishing channels of authority and communication Creating a system to coordinate the works of the members Staffing This function deals with the creation and maintenance of human resources through employment, compensation, benefits, training and development, and industrial relations measures. It aims to put in place HR policies in order to deal with wage fixation, working conditions, and promotional opportunities for prospective employees. The steps involved in the staff function are Determining the type of people to be hired Recruiting prospective employees and selecting the best ones from them Compensating the employees Training and developing the employees Setting performance standards and evaluating the employees’ performance Counselling the employees Directing Directing is the sum of several activities like communication, leadership and motivation. Directing, as a function, aims at securing willing cooperation from the individuals and the groups to achieve the predetermined goals. It includes the following activities: Getting work done through subordinates Ensuring effective two-way communication for the exchange of information with the subordinates Motivating subordinates to strive for better performance Maintaining the group morale Controlling Controlling is the process of checking the efficiency of the individuals and the groups in fulfilling the plans and goals through follow-up measures. It is essential for continuous improvement in the managerial activities. The processes involved in controlling are Establishment of standard performance Measurement of actual performance Comparison of actual performance with the standard one to find the deviation Initiation of corrective actions, if there are any deviations Next, let us look at the operative functions. Durai_Chapter 01.indd 7 10/17/2011 12:38:13 PM  8 HUMAN RESOURCE MANAGEMENT Operative Functions Staffing is one of the managerial functions. But this function is normally performed by the HR managers for all the departments of the firm. In most organizations, the HR depart- ment establishes personnel policies and coordinates the HR functions of all the departments. This function is also called the operative function or HRM function. It includes, amongst others, the processes of hiring, training, compensating, appraising and retaining employees, and attending to their labour relations, health and safety, and equality concerns (see Fig. 1.2). Andrews8 has carried out a detailed study on the functions of HRM and commented: In most organizations, the personnel or HR department establishes policies and coordinates functions such as job analysis, personnel planning, the recruitment and selection of employees, training and development, performance appraisal, compensation and employee benefits, labour relations, employee discipline and control, and occupational health and safety. We shall now discuss the operative functions of HRM. Procurement Procurement refers to a series of activities undertaken by the HR manag- ers for filling the present and future vacancies of the organization. The activities include job analysis and designing, HR planning, recruitment and, finally, the selection of suitable employees. Here, job analysis refers to both the determination of specific tasks and responsi- bilities connected to a job and identifying the skills, knowledge and abilities required for the job holder. HR planning involves choosing and placing the right person at the right job and Operative Functions of HRM Procurement Development Compensation Maintenance Integration and Motivation Job analysis and Career planning Job evaluation Industrial design and development Performance Employee well- relations Human resource Workers’ evaluation being Discipline planning training Wages Social security Grievance Recruitment Executive administration Workers’ redressal development participation Selection Incentives and Dispute Organizational benefits Motivation settlement Placement development Job rotation Collective Orientation bargaining Socialization HR records, research, and audit HR information system Figure 1.2 Operative Functions of HRM Durai_Chapter 01.indd 8 10/17/2011 12:38:14 PM  INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 9 at the right time. Recruitment involves gathering a pool of applicants from which suitable employees may be selected. Lastly, selection involves screening, testing, interviewing and hiring the most suitable employees for the organization. Development Development here refers to both employees’ training and management devel- opment. HR managers are responsible for conducting and supervising training and develop- ment programmes for employees. The purpose of a training and development programme is to increase the employees’ competencies in their job by improving their knowledge, skills and abili- ties. Training and development is widely accepted as a method for enhancing the employee skills, increasing the individual and organizational performance, improving the employee morale, and achieving the business growth and success. Compensation Compensation refers to the determination of the pay scale and other ben- efits for the employees. Establishing and maintaining the pay system of an organization is one of the principal jobs of the HR managers. They must devise ways to ensure fair and equitable pay rates. In addition, HR managers should regularly manage the performance evaluation system of the organization, and continuously design reward systems such as performance- linked incentive plans and bonus and flexible work schedules. Box 1.4 outlines the flexible schedules offered by companies like IBM. Maintenance The maintenance function aims at retaining efficient and experienced employees in the organization. This calls for creative HR practices. In this regard, HR manag- ers are responsible for offering a wide range of HR programmes covering occupational safety, health promotion and physical fitness, canteen facilities, recreation activities, transportation programmes, employee suggestion schemes, career counselling and growth for creating a positive work environment. Box 1.5 highlights one of the HR policies of Infosys. Integration It consists mainly of industrial relations and aims at ensuring good relations between the management and the employees. HR managers have to implement industrial relations programmes that would ensure ethical and fair treatment in disciplinary action, grievance redressal, and career management processes. They should also counsel the employees and the management to prevent and, when necessary, resolve disputes over labour agreements or other labour relation issues. It is to be understood here that the functions of HRM can vary widely from one orga- nization to another, depending upon its nature, size, and objectives. For instance, a smaller organization may follow a shorter HRM process with a greater emphasis on functions like Box Mobile Working at IBM 1.4 One of the ways companies retain their employees is by support services so that even if they work from home, offering them flexible work schedules and the option of they stay connected. Be it downloading files, checking working from home. A company that has consistently and replying to mail, or linking to the electronic library, been appreciated for this benefit is IBM. Some of IBM’s IBM workers can dial into the IBM network and get workplace flexibility programmes include individual- connected. People can opt to work at home in case of ized daily work schedules, flexible (or compressed) personal emergencies as well. In India, IBM has offered work-weeks, regular part-time, remote/mobile work mobile work options since 2003. options and mobility allowances. Employees are offered Adapted from: www.ibm.com./innovation/in/hr. Durai_Chapter 01.indd 9 10/17/2011 12:38:14 PM  10 HUMAN RESOURCE MANAGEMENT Box HR and the Well-being of Employees 1.5 One of the HR policies really appreciated by employees levels have substantially risen over the years, in tune is that pertaining to their families’ health and safety. with the overall Infosys social security and employee Increasingly, companies are providing life insurance benefit initiatives. In 2008, the coverage amount was and accident coverage that will help reassure their a record-breaking Rs. 240,000 million. As Mohandas employees and give them a sense of security. Infosys is Pai, the HR head of Infosys, said, “Infosys believes in a good example. Starting from 2002, it has a tie-up with providing adequate life, accident and medical insur- the Life Insurance Corporation of India that provides ance cover to its employees in a holistic measure.” adequate coverage for all its employees. The coverage Adapted from: www.rediffmail.com. procurement and compensation and little or no priority for activities like training and development and industrial relations maintenance. On the contrary, large organizations may pursue a longer and more comprehensive HRM process to meet the requirements of both the management and the workforce. Box 1.6 shows the HR statements of select companies. HRM and Personnel Management (PM) The difference between HRM and PM is a subject of discussion amongst HRM experts. They do not hold identical views about the similarities and dissimilarities between HRM and PM. According to Lowry,9 for example, PM and HRM are the successive stages of the same con- cept without any difference in the concept. In his words, “Human Resource Management is just the continuing process of personnel management – it is not different.” Box Relevance of HR Statements 1.6 HR statements of a company are viewed by the present Human Resources at Voltas employees and the prospective candidates for future HR Philosophy jobs in that company largely as an indication of the The HR philosophy of Voltas is based on its strong belief management’s preference, desire and attitude vis-à-vis that the well-being of the company and that of its people its human resources. The HR statements of BHEL and are interdependent; and that the company’s most valu- Voltas have been presented as instances of this. able assets are its people. HR Policies Human Resources at BHEL To employ the most competent on the basis of HR Purpose merit Development of a committed and motivated workforce To ensure that every employee is treated with setting new benchmarks in terms of productivity, quality dignity and respect, and in a fair, consistent, and and responsiveness. equitable manner HR Process To create a stimulating, enabling and supportive Every employee is given an equal opportunity to develop work atmosphere himself and grow in terms of his career through continu- To aid and encourage employees in realizing their ous training and retraining, career planning, a positive full potential work culture, and participative style of management. Adapted from: www.bhel.com and www.voltas.com. Durai_Chapter 01.indd 10 10/17/2011 12:38:14 PM  INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 11 But another HR expert differed with this contention and identified major differences between HRM and PM in the areas of management’s responsibility, skill acquisition, reward management, planning perspective, conflict perception, and so on.10 Let us look at the similarities first. Similarities between HRM and PM The basic elements common to HRM and PM are as follows: Business Strategy Both form the basis for the evolution of HR and PM strategy. Matching People Choosing the right people for the right job and developing them to achieve their maximum level of competence remain the priority of both HRM and PM. Prominence of Line Authority HRM, similar to PM, recognizes that the primary responsibility for managing people stays with line managers. Identical Core Elements Techniques like selection, training, development, compensa- tion and performance management are common to both HRM and PM. Emphasis on Communication and Participation HRM and PM provide equal importance to the communication process and workers’ participation in decision making. We shall now discuss the differences between these two concepts. Differences between HRM and PM The differences between HRM and PM have been given in detail in Table 1.2. HRM as a Profession Not long ago, personnel managers were often assigned the “people functions” in an organiza- tion because they did not have the talents to work in production, finance, marketing or other important areas.11 The ability to get along with people was considered as the major quali- fication for appointing a person as a personnel executive. Companies often staffed the HR department with managers who did not have professional training or college education. However, HRM functions now occupy a much more important position in most orga- nizations. Many universities, colleges and business schools offer a variety of HRM courses. Slowly but surely, HRM is emerging as a profession. Let us now discuss how HRM fares as a profession in fulfilling the following criteria. An Organized Body of Knowledge HRM now has well-defined principles, concepts, theories and practices. There has been a tremendous increase in the knowledge about HRM in recent years. An HR manager cannot perform his job effectively without proficiency in these concepts and principles. Formal Education and Training Several schools of thought and institutes of management have emerged to provide formalized education and training to the aspirants in HRM. For instance, the National Institute of Personnel Management (NIPM) at Kolkata is one such institute with several regional councils and a large number of members. It endeavours to promote professionalism amongst its members. Durai_Chapter 01.indd 11 10/17/2011 12:38:14 PM  12 HUMAN RESOURCE MANAGEMENT Table 1.2 Differences between HRM and PM 1. HRM is proactive in nature. It is not only concerned with PM is mainly reactive in nature. It satisfies itself by the present organizational conditions but foresees future ensuring peaceful labour–management relations in the necessities and then acts appropriately. present. 2. HRM, as a resource-centred activity, focuses more on the PM, which is basically employee-centred, aims at hiring, managerial aspects, in terms of delegating the responsibility training, compensating and maintaining the existing of HRM to line authority and management development. workforce of the organization. 3. HRM emphasizes open-ended contracts, which can be PM emphasizes the strict observance of defined rules, modified depending upon the demands of the business. procedures and contracts that govern the relationship Management assumes the responsibility to motivate the between the workforce and the management; for exam- employees and constantly inspires performance based on ple, collective bargaining and employment contracts. team spirit. 4. HRM is based on the principle that better performance PM considers job satisfaction and morale as a source of itself is a cause of job satisfaction and morale. better performance. It works on the foundation that a contented worker is a productive worker. 5. HRM seeks to develop the competencies of the employees PM is a regular, status quo-based administrative func- on a sustained basis. Skill formation and development are tion: Employees get uniform rewards based on job evalu- recognized as the main characteristics of HRM. ation and job worth. 6. HRM emphasizes autonomous work groups, challeng- PM emphasizes monetary rewards and conventional job ing jobs, and creativity for motivating the people. The designs like job simplification and rotation to encourage management assumes the responsibility to motivate the people to improve their performance. employees and continuously encourage the performance based on unity of goals. Existence of Association The Medical Council of India acts as a regulatory body for medical professionals. Similarly, the NIPM prescribes a code of conduct for personnel managers. The Government of India has established a separate ministry to regulate the activities of HRM institutions. Existence of an Ethical Code Every member of a profession should observe a code of ethics prescribed by his regulatory authority. As far as HRM is concerned, the NIPM sets a code of conduct for its members. The code lays down the duties, ethical norms, dos and don’ts for the members. Charging of Fees The main obligation of a professional is to serve the community. He must not think in terms of personal gain. He must not accept or offer any improper gratification in any form or manner. HR managers are also expected to uphold the honour, integrity and dignity of the profession. Though these developments clearly bring the HRM close to be called a profession, it cannot qualify as one in the full-fledged sense of the term. For, unlike chartered accountants and medical practitioners, an HR professional does not require any definite academic quali- fication to become one. Further, there is no statutory professional body available to regulate the entry of people into the profession. The NIPM has no formal authority to regulate the entry of its members. In the words of Guest and Horwood: Durai_Chapter 01.indd 12 10/17/2011 12:38:14 PM  INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 13 It is tempting but wrong to view personnel managers as homogeneous. Their different backgrounds and fields of operation raise doubts about the value of a professional model and of any attempt to view personnel problems as amenable to solution through a primary focus on professionalism.12 Still, more and more people are taking an interest in HRM and viewing this as a career. Given this scenario, let us look at the qualities of an HR manager. Qualities of an HR Manager HR managers have to perform several roles to discharge their duties and responsibilities. For instance, they have to act as recruiters, placement specialists, training and development specialists, employee welfare experts, employee benefits’ specialists, compensation and job analysis specialists, labour relations experts and human resources information system specialists, apart from being good counsellors. For instance, Armstrong13 points out that HR practitioners have to play the roles of business partners, strategists, interventionists, innovators, internal consultants, monitors and volunteers (proactive role). The successful performance of the diverse HR tasks would require a multi-disciplinary knowledge for the HR managers. It would be good for them to have a working knowledge in the fields of business administration, law, behavioural sciences, industrial psychology, sociology, political science, economics, statistics, engineering, finance and computers. Apart from these, they would require the following personal and job-related qualities and skills to become effective performers. Knowledge Knowledge helps one gain respect. The HR manager must be an expert in his own field to gain the confidence and respect of his subordinates. He must have a comprehensive knowl- edge of concepts, principles and theories relating to HRM and other related fields. But, mere possession of this knowledge is inadequate; the HR manager must have practical exposure to these concepts and principles in real-life situations. Intelligence Intelligence means the mental ability to properly understand the nature of the problem exist- ing in a situation or event which may require a solution. The HR manager should be able to understand the situation quickly and to act decisively before it becomes unmanageable. He should also be able to properly examine the situation to distinguish the real problems from the ones that are merely made to appear important. Communication Skills The role of any manager is to get work done through others. An HR manager is no excep- tion to this. He must have good communication skills to share his ideas effectively with the employees and to persuade them to work towards the organizational goals successfully. Thus, it is essential for the HR manager to have good communication skills to achieve better coop- eration and unity. It is also desirable for him to have a functional knowledge of the languages of the employees to effectively communicate with them. Durai_Chapter 01.indd 13 10/17/2011 12:38:14 PM  14 HUMAN RESOURCE MANAGEMENT Objectivity and Fairness The HR profession is unique. The HR manager has to serve the interest of both the management and the employees. Hence, he should observe strict impartiality and honesty in all his transactions. He is required to act only on the basis of relevant facts and information. Moreover, he has a moral responsibility to protect the rights and privileges of the relatively weak workforce. Leadership and Motivational Qualities To lead is to influence. The HR manager should possess the ability to influence the employ- ees towards the achievement of goals and targets. He should also be a good motivator. He must have the necessary skills to constantly motivate the employees to strive for better performance. Emotional Maturity It is often difficult to predict the responses of human beings. They usually behave differently in different situations. Hence, it is essential for the HR manager to have emotional maturity and tolerance in dealing with the employees. He must show parental care in attending to their needs. He should not have any ill-feelings towards any employee on the basis of his past behav- iour. He should always be rational and not emotional in his approach. Empathy Empathy pertains to looking at events or situations from the others’ point of view. The HR manager should learn to view the issues affecting the employees from their perspective too. He should not only rely on his formal authority in dealing with the employees’ grievances but use his informal relationship as well in settling them. He should honour others’ opinions, sentiments, rights, beliefs and values. In addition to these qualities, the HR manager should have a good character, personality, physical strength, and stamina for effectively discharging his duties. Having seen the notable qualities of the HR managers, we shall now discuss the differences in their duties and respon- sibilities as line authorities and staff advisors. Line Versus Staff Authority of HRM Staffing, which is one of the managerial functions, is generally performed by all managers. This is because the managers are normally involved in the process of acquiring, training and assess- ing the employees of their own department. In fact, line managers handle all aspects of HR activities in small organizations, while in large organizations, the top management normally establishes an exclusive HR department to develop and manage HR programmes and policies. The line managers in these firms seek the advice of the HR department in handling labour- related matters. Gary Dessler classified the line managers’ responsibilities for effective HRM under the following general headings:14 1. Placing the right person on the right job 2. Starting new employees on the organization (orientation) 3. Training the employees for jobs that are new to them Durai_Chapter 01.indd 14 10/17/2011 12:38:14 PM  INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 15 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the policies and procedures of the company 7. Controlling labour costs 8. Developing the abilities of each person 9. Creating and maintaining the department morale 10. Protecting the employees’ health and physical condition When an organization has separate functional HR departments, the HR managers have to perform the task of line managers for their own department and act as staff advisors for line managers of other departments. We shall first see the meaning of the important terms concerned with line versus staff authority before discussing the role of HR managers in these capacities. Authority The term refers to the right to influence the activities of the subordinates or take decisions concerning them and to issue instructions or orders pertaining to their work. Line Manager Line managers are those who are empowered to direct the work of the people assigned to them. Further, line managers are directly responsible for accomplishing the depart- mental goals and corporate objectives. Examples of line managers are production manager, purchase manager and sales manager. Staff Advisor Staff advisors are those who play an important role in advising and assist- ing the line managers in accomplishing the basic goals. Theoretically, the suggestions given by the staff advisor to the line managers may or may not be accepted by the latter. Figure 1.3 shows the line and staff responsibilities of the HR managers. General Manager Production Sales Staff advisor HR Manager Staff advisor Manager Manager Worker 1 Worker 2 Worker 3 Worker 1 Worker 2 Worker 3 Worker 1 Worker 2 Worker 3 Figure 1.3 Line-Staff Responsibilities of HR managers Durai_Chapter 01.indd 15 10/17/2011 12:38:14 PM  16 HUMAN RESOURCE MANAGEMENT The Role of the HR Manager as a Line Authority The HR managers apply their line authority within the HR departments. In other words, the HR managers direct the activities of the people in their own department towards the accomplishment of specified goals. These managers cannot exert line authority outside their department. The Role of the HR Manager as a Staff Advisor In their capacity as staff advisors, the HR managers counsel the line managers on matters con- cerning labour issues in their respective departments. They assist line authorities in hiring, training, appraising, awarding, counselling and terminating the employees. Whenever indus- trial relations are affected by disputes, grievances and indiscipline, HR managers are called in to play an important role in handling those grievances and in harmonizing the labour relations. HR managers assist in HR-strategy design and execution by helping the top management take a closer look at the personnel aspects of the organizational activities. The HR depart- ment is also responsible for various incentive schemes and benefit programmes. Further, the HR managers educate the line managers about the right ways to treat the employees, including listening to their problems and understanding them, settling their grievances, and making them feel important in the organization. The Future Role of HRM HRM has been expanding in its area of activities ever since the days when management began to include welfare and personnel departments in the organizational structure. Today, the responsibilities of the HR department have grown to be broader and increasingly pragmatic. Moreover, the advent of economic reforms in the form of globalization, liberalization and privatization in our country has changed the very profile of organizations. Today, HR managers have to think beyond traditional activities like personnel planning, welfare mea- sures, and industrial relations. The HR managers of tomorrow need to be familiar with the operational aspects of the organizations such as strategic planning, competitive pressures, return on investment, and cost of production, to name a few, besides their own field. In brief, they must be prepared to function from the higher levels of the management in close coordination with the top management in designing and implementing the HR plans and strategies. We shall now discuss the future role and challenges of HR managers. Change in the Nature of Work Technological developments are changing the very nature of work. Due to technologi- cal advancements, even traditional jobs have become technologically challenging. These changes require the employment of more educated and more skilled workers in these jobs. Further, the service sector, which is fast emerging as the major provider of employment in our country, requires the use of knowledge workers. For HR managers, these develop- ments indicate an increasing importance of human capital and knowledge workers. These new breeds of better-informed employees will expect unconventional and world-class HR practices and systems. HR managers must have plans and strategies to meet the changing Durai_Chapter 01.indd 16 10/17/2011 12:38:14 PM  INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 17 expectations of these new-generation employees. They should also be prepared to handle the emerging work culture, which keeps employees more focused on their individual career prospects. Similarly, due to rapid social transformation, an enhanced access to education and increased labour mobility, the workforce profile of the country has changed dramatically and organizations now represent several heterogeneous groups. For instance, the proportion of women, religious minorities, physically challenged and socially backward people in the workforce has increased dramatically. This is a direct challenge for the HR managers as they now have to deal with culturally and racially diverse work groups. Many firms are now com- pelled to initiate new gender-specific and target-based HR policies to serve the interests of different sections of the employees. Box 1.7 outlines the diversity at IBM. Widening Scope of HR Activities Human resources activities are getting integrated at the global level. Globalization and deregulations have deeply affected the functioning of traditional HRM. Organizations, in their pursuit of new markets and greater cost-effectiveness, extend their sales, production facilities, and supporting services to new destinations in several countries around the world. HR managers must have adequate dynamism and action plans to help these organizations successfully integrate their global HR operations. They must also ensure effective coordination amongst and control over the labour forces working in different countries. Greater Emphasis on HRIS The organizations of the future will be large due to world-wide mergers and acquisitions. The sheer size of an organization may compel the HR department to computerize its HR operations like recruitment, training, appraising and pay-roll preparations. Thus, large companies may require an integrated Human Resource Information System (HRIS) for effectively coordinating their different HR operations. HRIS actually means “interrelated components working together to collect, process, store and disseminate information to sup- port decision making, coordination, control, analysis and visualization of an organization’s Box Diversity Celebrations: An Innovative HR Programme 1.7 Differences in race, gender, geographic origin, cul- in its workforce and made a commitment to provide an ture, lifestyle, age, disability, economic status, marital equal workplace to individuals who are differently able status, and religion make employees an assorted work- and need special care. In this regard, IBM organizes force. This situation requires HR managers to create a several diversity celebrations such as the International business environment that recognizes and leverages Women’s Day, Take Our Kids to Work Day, the Women’s the individual differences amongst employees and Leadership Conference and the World Disability Day. In puts in place target-specific HR practic