Session 1-2

Strategy: is about understanding your environment and making choices about what you
will do. Think, if you like, of where and how to play. The formulation of organizational
objectives, competitive scopes, as well as action plans for gaining advantage.
- The plan for how an organization intends to achieve its goals
- Strategy gives us what of the organization i.e. what to achieve
- But if suppose it is not having the back up support system of implementation which comes
with a plan, then strategy will be just a dream statement.
- Strategy Intent: A declaration of intent Strategic intent: A tangible corporate goal; a point
of view about the competitive positions a company hopes to build over a decade
- Hierarchy: It may not be the case that Strategy is at the top level & plans at the bottom
level. Strategic plans are designed with the entire org. in mind & top level managers will be
involved.
- Is it always Long Term: Strategic plans may look ahead where the org. may want to be
there in 3,5,7 years of span. We also have to be rationale. Strategy cannot be long term
always (like 20years) because within these 20 years there might be havoc changes. With
business changing 5 years could be long term, 3 year’s mid-term & below 2 that could be
short term.

Planning: Is about making choices about how to use the resources you have and the actions
you will take to achieve the choices made inside your strategy.
Strategic planning: The systematic determination of goals and the plans to achieve them

Hierarchy/ Levels of Plans:

1. Strategic + Plan: It is the overall plan.

- Achieving growth
- Improving productivity & profitability
- Increasing return on investments

2. Tactical Plans: (Departmental plans)

Tactical plans support strategic plans by translating them into specific plans relevant to a
distinct area of the organization. • Tactical plans are concerned with the responsibility and
functionality of lower-level departments to fulfill their parts of the strategic plan.
• Operations Department: Assessing, ordering and stocking inventory; • Finance
Department: Creating a monthly budget; • Marketing Department: Developing a
promotional advertisement for the quarter to increase the sales of a certain product • HR
Department: Outlining employee's performance goals for the year.

3. Operational Plans:
- Operational plans sit at the bottom; they are the plans that are made by frontline, or low-
level, managers. •
- All operational plans are focused on the specific procedures and processes that occur
within the lowest levels of the organization.
- Managers must plan the routine tasks of the department using a high level of detail.
These all are integrated with each other’s. If suppose operational plan fails, then it is also
going to touch upon the tactical issues & strategic plans.

BALANCED SCORECARD:

The balanced scorecard acts as a structured report that measures the performance of
company management. The management team can be evaluated against Key Performance
Indicators (KPIs) to show their contributions to the strategy and attainment of the targets
set forth. Success is measured against the specified goals or targets to determine the rate at
which the business is growing and how it compares to its competitors.

Step 1: The balanced scorecard is anchored on four perspectives, which include financial,
business process, customer, and organizational capacity.

1. Financial perspective

Under the financial perspective, the goal of a company is to ensure that it earns a return on
the investments made and manages key risks involved in running the business. The goals
can be achieved by satisfying the needs of all players involved with the business, such as
the shareholders, customers, and suppliers.

2. Customer perspective:

The customer perspective monitors how the entity is providing value to its customers and
determines the level of customer satisfaction with the company’s products or services.
Customer satisfaction is an indicator of the company’s success. How well a company treats
its customers can obviously affect its profitability. The balanced scorecard considers the
company’s reputation versus its competitors. How do customers see your company vis-à-vis
your competitors?

3. Internal business processes perspective:

A business’ internal processes determine how well the entity runs. A balanced scorecard
puts into perspective the measures and objectives that can help the business run more
effectively. Also, the scorecard helps evaluate the company’s products or services and
determine whether they conform to the standards that customers desire. A key part of this
perspective is aiming to answer the question, “What are we good at?” The answer to that
question can help the company formulate marketing strategies and pursue innovations that
lead to the creation of new and improved ways of meeting the needs of customers.

4. Organizational capacity perspective/ Learning and Growth:

Organizational capacity is important in optimizing goals and objectives with favorable
results. The personnel in the organization’s departments are required to demonstrate high
performance in terms of leadership, the entity’s culture, application of knowledge, and skill
sets. The learning and growth perspective looks at your overall corporate culture. Proper
infrastructure is required for the organization to deliver according to the expectations of
management. For example, the organization should use the latest technology
to automate activities and ensure a smooth flow of activities. Technology also plays a major
role in learning and growth.

Step 2: Stacking the Perspectives

Over time, however, people began to discover that these perspectives affect each other in
surprising ways. It turns out that the way we order them matters. Modern balanced
scorecards show how each perspective builds on the previous one.
i) Learning and Growth: If you train your employees and build a culture of information
sharing...
ii) Internal Processes: They'll make your company run more smoothly.
iii) Customer: A better running business takes better care of its customers.
iv) Financial: Happy customers buy more of what you’re selling.

Step 3: Choosing the right Strategic Objectives:

The next step in creating a balanced scorecard is to choose several strategic objectives for
each perspective.

Step 4: Putting it together

After you’ve chosen several strategic objectives for each perspective, the next step is to
layer them on top of the perspectives like this.

Step 5: Creating a Strategic Map

The final step in creating a strategy map is to draw arrows between your strategic objectives
that show the cause and effect chain.

Step 6: It matters what you measure

Every strategic objective should have one or two things that you measure to determine how
it’s performing. These measures need goals and should be measured on a regular schedule.
If the strategic objective were “Increase Employee Expertise,” a good measure might be
“Total Departmental Training Hours.”
Reality of the Strategic Process
- Intended Strategy: The agreed-upon strategy arrived at through the formal planning
process
- Emergent strategy: Created from new ideas and conditions – Potential to develop
into a better outcome
- Discarded strategy: Deemed inappropriate due to changing circumstances – Initial
strategy discard and taken a new one
- Realized strategy: The implemented plan; what actually happened
Business strategy: Is concerned with how we should compete, whereas corporate strategy
is concerned with which businesses we should compete in.
Business strategy: Tata Steel, Tata Motors, Tata Salt. Its all about making choices. How
should we compete? Tata Steel will talk about how we should compete Jindal or SAIL. Tata
Motor will talk about how to outperform a Maruti or Hyundai.
Competitive strategy word can be only be used when we are taking about business strategy.
Corporate strategy is at a bigger level.

Corporate strategy:
- The action plan for a single line of business to gain competitive advantage. Tata Group,
corporate who are into multi business. This will focus on Steel, Software or Salt. Secondly,
how to manage the portfolio, whether we should take the money from software & give it to
steel & acquire Corus.

I. Growth:
- Incremental growth: Can be attained by expanding the client base, increasing
products/services, changing the distribution networks, or using technology
- International growth: Can be attained by seeking new customers or markets by expanding
- Internationally Acquisition: The purchase of one company by another Merger: Two
organizations combine resources and become one

II. Maintenance of Status Quo (Stability)

III. Restructuring:
i) Turnaround strategy: An attempt to increase the viability of an organization
ii) Divestiture: The sale of a division or part of an organization
iii) Liquidation: The termination of a business and the sale of its assets
iv) Bankruptcy: A formal procedure in which an appointed trustee in bankruptcy takes
possession of a business’s assets and disposes of them in an orderly fashion.

There are various competitive forces that Michel Porter has spoken about. Porter’s 5 Forces:

1. Bargaining power of buyers

2. Bargaining power of suppliers
3. Threat of substitutes
4. Threat of new entry
5. Competition in the industry
Critics of forces:
- Regulatory aspects like government policies, taxes are not considered here.

Here, HRM is the functional strategy like IT, finance, Marketing etc, with essential idea is to
serve the organization. They are supposed to support the business strategy.

At the corporate level when we are thinking of growth/ expansion, it is not a day to day
activity. Difference Between Organizations (Geographically):

1. Domestic: When a company's economic dealings take place entirely within the country's
borders, it is considered to be domestic.

2. International: An international business is one that conducts business with multiple

countries throughout the world. International companies are importers and exporters, they
have no investment outside of their home country. If India is the HQ, it will continue to be
the Headquarters, irrespective of its global existence. International meaning company has
started taking baby steps, they have started importing, exporting, establishing offices, but
idea is that how they are making the delineation. Idea is that they are offering almost same
standard products/ offerings when you are in the international sphere. E.g. there is a car
manufacture, there will be differences in the way we drive in India & the way it is
internationally (Japan or US), but if there is no major change offerings in terms of the service
offerings i.e. commitment part of the org. is still quite less, this means it will be
international. Like sometimes back Colgate was called as International but now it has moved
into multinational category. Thus if you are offering the same standard level of offerings,
that you were using in your domestic base, not major change, then you are still an
international org. (obviously considering other elements also). Here control from the HQ is
necessary because otherwise you will not be able to maintain that standardized outcome.
Here the entire financial decision lies with one country & export-import is happening.

3. Multinational companies: They have investment in other countries, but do not have

coordinated product offerings in each country. More focused on adapting their products
and service to each individual local market. Here the major part is that of adaptation in the
local market. E.g. Mc Donalds. When it came to Indian context they had to come up with Mc
Aloo Tikki (compared to earlier what they started offering in India). Here, adaptation
becomes a primary aspect. HQ will remain the same, like Infosys will still remain as HQ in
India. Here you have to give flexibility to the country heads because organization has to
think about the taste & preferences of nations consumers & acting as if you are the
nationalized company, e.g. Hindustan Lever. MNC means decentralization, flexibility, loosely
coupled system, so it gives its subsidiaries tremendous flexibility so that they can come up
with local customization. E.g. Colgate

4. Global companies: They have invested and are present in many countries. They market
their products through the use of the same coordinated image/brand in all markets.
Generally one corporate office that is responsible for global strategy. Emphasis on volume,
cost management and efficiency. Either marketing or sourcing wise you are not able to
touch the entire globe. There is supposed to be tight control because then only they can
maintain the standardization.
5. Transnational companies: These are much more complex organizations. They have
invested in foreign operations, have a central corporate facility but give decision-making,
R&D and marketing powers to each individual foreign market. When marketing or sourcing
wise you have exhausted all the possibilities then you are called as transnational. E.g. Harley
Davidson manufacturing was only located at US & they were marketing world wide basis.
Thus manufacturing was limited, marketing was unlimited. Another E.g. Gap earlier were
marketing only in the US segment but sourcing from all over the places where they were
getting cheap labour (but later they also moved). It demands that you are offering a
standard offerings at every nook & corner of the world. E.g. Coke, a standard product
offering due to having the same secret formula. In transnational it is like a cob-web
structure, complex coordination, integrated network, here nobody is controlling the
subsidiaries then only can they serve the demand of the entire globe.

Restructuring Strategies:

1. Turnaround strategy: An attempt to increase the viability of an organization (technically

we can use this term only when the decline is for more than one year).
2. Divestiture: The sale of a division or part of an organization. For e.g. Tata Steel earlier had
a cement division also, later this division went to Lafarge, Tata realised that cement is not
related to their core area of steel, as a result of this they sold their cement division. So
thinking of what will happen to the commitment level of employees after this division is
sold, they came up with certain understanding with Lafarge that they will have to come up
with certain ideas & planning & Lafarge will have to ensure certain benefits for lower level
staff members & all.

A golden parachute is an agreement between a company and an employee (usually an

upper executive) specifying that the employee will receive certain significant benefits if
employment is terminated. These may include severance pay, cash bonuses, stock options,
or other benefits. Most definitions specify the employment termination is as a result of a
merger or takeover.

Golden handshakes are upgraded versions of the golden parachute. They include better
incentives and cover a lot more scenarios unlike the golden parachute where incentives are
given only in the case of a merger or acquisition

3. Liquidation: The termination of a business and the sale of its assets

4. Bankruptcy: A formal procedure in which an appointed trustee in bankruptcy takes

possession of a business’s assets and disposes of them in an orderly fashion

Stability Strategies:
These are maintenance strategies where companies do not wish to see their companies
grow and so their strategic HRM practices remain constant. These can be called – status quo
– neutral – do-nothing strategies

Miles & Snows model of strategy:

By Miles & Snow: If you want to judge the HR strategy of the organization you need to
understand for whom you are working:

a) Defenders: These organizations are less prone to change, bureaucratic organization, they
are rigid, either because of the institutional or regulatory requirement they are defender or
by choice. If you are having knowledge of SHRM & you are working for defender, you will
not be able to bring change, you will always bring friction in working. So you need to
understand what category of worker you are working for. HR system will be bureaucratic HR
processes, because I don’t want flexibility or any loophole, no discretion to the employees,
everything has to go through the standard process. For everything rules & regulations are
there. Most of the PSU’s used to come under this category. Here role of HR is Administrative
expert & employee champion, you serve the employee & in some cases if required act as a
strategic partner but not always. E.g. Narrow skill set is required, skill specialization.

b) Prospectus: They always thrive to change, they favour strategy or product market
development, innovation, career path will be broad, creative people will be hired, flexibility
of HR. These type of org. always go for new product line, expansion to the new geography.
In such cases HR has lot of discretionary practices. E.g. Start up. Here decentralised
processes.
Skill sets: Covid has put everyone into Prospectus category, you all are thriving for change &
competitive advantage will go with those who will identify those workable competencies.
HRM requirement: Skill flexibility, innovation is requirement, multiple product lines are
there. No need to develop if there is new skill requirement, making new skill will take time
so they will buy it.

c) Analyzer: Seek to match new venue with present business set up, these firms are
followers, the ventures are not new to the market only new to the firm, they are the
monitors, so they see how this practice has been implemented in other industry, in this or
other industries. They do the cost benefit analysis. If it is tried & trusted these analysers will
go for that. They will go for change but not as a prospector, they will not innovate but mimic
the best practices. Here you have shades of both defender & prospectus, both centralized &
decentralised structure. Here you can have matrix, flat or double routine.

d) Reactors - inconsistent; lacks coherent strategy; respond or react to changes or other

environmental factors; unclear chain of command.

Case Study:

MOD Pizza – Suppose an organization is willing to scale up so it will take the expansion
strategy. Here they are talking about when organization is considering expansion, they will
think about what are the task in hand, org. structurally what all changes will come, etc. This
is the org. in the case study, which treats its employees well, they are giving 2 nd chance to
drug addicts, or those were sentenced as prisoners. They give min. wages as per act.
Employees are allowed to be themselves, if they feel to give certain customer someday a
free pizza, they are allowed to give them a free pizza. There is no formal dress code for
employees. Currently org. is thinking of multiple outlets & expansion.

Is giving employees autonomy to give customers free pizza a good idea in this case study:
- It could be as it gives employees an autonomy & ownership
- Helps to build better connect with customers
- Customers delight & satisfaction/ loyalty
- Consumerization for employees/ customer – giving them the experience
(need to refer recordings for discussion)
 SESSION 3-4

Difference between Job Description & Specification:

Job analysis relationship with planning:

- We can also see that job analysis forms part and parcel of the HR planning process. It gives
one a clear understanding of the nature and requirements of the post to be filled. In its
simplest terms, job analysis is a systematic process for gathering, documenting and
analysing data about the work required for a job.

Critically evaluating the Job description form given in course material (Page 85):
- Reporting relation is not clearly mention
- Location: Vague way of writing the location
- In job description working condition is mentioned in a more pessimistic manner, ideally JD
should not be your job advertisement, they are not making here any differentiation
between JD & Job advt., but if the job demands that on a regular basis they have to clean
the area & then start work thereafter, then it should be made clear to the prospects
beforehand only in order to avoid any ruckus later.
- Shift timings: For this particular job if you have elongated shift hours then you can mention
it, but if it’s a regular shift time, you need not put it. Common element should not be
included.
- Sales target: Usually it is not mentioned in JD, but here is it mentioned because to highlight
the viable part, also word like ‘at least’ should be added before the sales target.
- Aspects like ‘sense of humour’: Whatever you have displayed in the draft, you should be
able to measure it, but here it is mentioned because it is a sales executive role which is a
vital requirement.
- Min. 2 years working with a competitor need not be mentioned as it shows poaching.
- Knowledge of our system: Candidate will not know what system exists in the your org.
- Driving license

Some Tools:

1. Qualitative techniques:

a. Job Analysis:
i) Repository Grid technique:
- Here idea is about what are the things required to make the job better
- Another thing you can ask people to write diaries what are the things they follow while at
work

ii) Critical Incident technique:

- Can you describe certain situations where you felt good/ bad about your job.

b. Delphi Method:
- The Delphi method is a process used to arrive at a group opinion or decision by surveying a
panel of experts.
- Experts respond to several rounds of questionnaires, and the responses are aggregated
and shared with the group after each round.
- The experts can adjust their answer each round, based on how they interpret the "group
response" provided to them.
- The ultimate result is meant to be a true consensus of what the group thinks.
- Experts are not meeting each other.

c. Nominal Group Technique:

- Experts are there they are going to meet, but they will not brain storm, before they sit
together you have to give them relevant critical documents, so that they can take informed
critical decisions.
- You can use booths where the voting

d. Scenario planning:
You are not depending on any past data, you are free on your own, but just to make it
concrete you might have a 2/2 matrix. Scenario can be multi-dimensional. Instead of 2/2
you could take more dimensions, but trouble is human mind cannot process lot of
information. So generally in org. 2 critical imp. dimensions like profit, sales growth,
manpower supply, competence level, etc so taking only two dimensions at a time to make it
easy to process.

2. Quantitative:

a. Manpower Inventory Analysis:

It is essentially the employee database, DOB, retirement date, past performance, their
transfer possibility/ availability, compensation, it’s the database.

b. Productivity analysis:
a ratio between the output volume and the volume of inputs. In other words, it
measures how efficiently production inputs, such as labour and capital, are being
used in an economy to produce a given level of output. Productivity Analysis
is conducted to identify areas for potential productivity improvement projects
based on statistical data collected during the analysis. The analysis also
pinpoints areas of delays and interruptions that cause loss of productivity.

c. Time study/ Motion study:

Ideally MS should be carried out before TS, Method study for e.g. if want to calc. what will
be the time required that we can refer & through that we can do analysis. There is ILO
document in that they have conducted pre-determined time & motion study. You can use
these studies. HR critical role will be to make people understand that employees need to
cooperate during this study, you will also have to take the help of an industrial engineer,
they are trained to understand what would be the standard time required in a job.
In the e.g. shared by Prof. there are 3 task given:

These 3 task suppose is done by any Secretary & you are supposed to do analysis of this job.
The 1st task would be to break down the task into manageable elemental parts.
The more minor skill level you go the more detail will be your time study. The credibility of
your industrial engineer will be critical because on the basis your workers salary/ perks will
be determined as a result of which the union negotiation will happen.

Example from Slides:

Here in this case Prof. has taken only 5 rounds of observation, more observation the better
it would be, if higher number of sample sizes we have more robust study will be derived out
of it. In these 5 rounds, in the 4th one you see 21 fig. which seems like an outlier value, so
you can take remaining 4 observations like 8,10,9,11. So when you are choosing the
secretary, you will look for a standard operator will a normal speed level, not too fast not
too slow.

Performance rating factor: the speed with which the person is performing the duty the
speed is critical, if is a normal time then it is 100% i.e. person is at par, if above than 100
person is above par & if below 100% then person is below par. (Bench mark of 100% should
be pre-decided by an industry specific industrial engineers).

Average cycle time: After this step, average is calculated, in 1st case 8+10+9+11=Total/4.
Thus, 9.5 min.

Compute normal time for each:

For A = Average cycle time*Performance rating
= 9.5min*120%=11.4 mins.

Total Normal time:

Normal time=A+B+C=11.4+2.31+1.65=15.36min.

Standard time:
=Total Normal time/(1-Allowance factor)
=15.36/(1-Allowance factor)=18.07 mins.
*Note: Allowance factor: It is a negotiable normal/ personal time that you will give to your
operator. Based on industry average sometimes you are giving 4% or 5% extra time for
example.

Issues with this method:

- Time could vary on day to day basis, outlier values may be connected to the situation or
industry.
- Hawthorne effect: Usually when someone is getting observed, you will try performing at a
speed which might not be normal.

d. Forecasting

HR Forecasting Process
Determining HR Demand
Ascertaining HR Supply

Case 2:
(Time 1.55): Mahanada Mittens Case discussion:

Facts:
Per day: 8 hrs per shift
Efficiency level: 0.86
Total days for 3 quarters: 26*3=78 days
Absenteeism is there, thus no. of days directly cannot be taken as 30 or 26

- On the quarterly basis you have to calc. what would be the number of hands that would be
required. Monthly how many days would be there. Considering 4 days w/off take 26 days
pm.
- Quarter 4 has the highest production. If we produce more in a particular quarter then
inventory carrying cost would increase because they are planning to bring down the
inventory.
- There is a variability problem in the production schedule, there is a line balancing problem
with quarter 4 being the highest & quarter 3 is least. Also if we produce in quarter 3 & keep
it in our warehouses, there is an issue of inventory carrying cost that is objectionable in the
case.
- Calculation:
New Microsoft Excel Worksheet (2).xlsx
Q1
Q1 Schedule Time/Unit 2.50%
5551 0.33 1831.83 1878.8 3.0
5551 0.33 1831.83 1878.8 3.0
16653 0.4 6661.2 6832 10.9

3629 0.33 1197.57 1209.667 1.9

3629 0.33 1197.57 1209.667 1.9
13131 0.4 5252.4 5305.455 8.5

4296 0.33 1417.68 1439.269 2.3

4296 0.33 1417.68 1439.269 2.3
8400 0.4 3360 3411.168 5.5

Case 3:
Powertech:
Session Recordings
SESSION 5-6

Work Sampling:
For repetitive jobs which are quite predictable in nature, there we can use time study, like
we discussed about performance rating factor might have subjective biases, but it is done by
industrial experts who are supposed to rate the speed with which these jobs are carried out,
but keeping it aside it more or less give us some rationales.

But for jobs which are not very predictable typically critical managerial, so here we can
make use of work sampling, here you have to think about that you are going to observe
certain individuals at certain time intervals. At certain time intervals you are observing
certain job/ individual activities, it can be self-report based or observation based. For e.g.

Here to back the observation, an individual has to do the categorisation that whether the
person is on a client call or a personal call. Idea behind this is to ascertain what is the work
load or may be in certain creative activities you have to increase the idle time. Thus Work
sampling helps us to understand the work situation & can help us to work further.

Time Series:
If the historical data are restricted to past values of the variable to be forecast, the
forecasting procedure is called a time series method & the historical data are referred to
as a time series. A time series is a sequence of observations on a variable measured at
successive points in time or over successive periods of time. Measurements may be taken
every hour, day, week, month, or year or at any other regular interval. The pattern of the
data is an important factor in understanding how the time series has behaved in the past.
Using the historical data to predict the future & on that basis we are trying to predict the
future, planning meaning is dealing with uncertainty, so in order to reduce this uncertainty
we can use certain techniques depending upon the situation. We are dealing with
uncertainty & we are thinking that the past data will help us to replicate new data, we try to
understand the pattern. But the limitation is that in certain cases there might not be any
benchmark like in case of Covid-19.

To identify the underlying pattern in the data, a 1st step is to construct a time series plot.
This plot is a graphical presentation of relationship between time & the time series variable,
with time on horizontal axis & the time series values on vertical axis.

Horizontal Pattern:
A horizontal pattern exists when the data fluctuate around a constant mean.

Trend Analysis:
Although time series data generally exhibit random fluctuations, a time series may also
show gradual shifts or movements to relatively higher or lower values over a longer
period of time. If a time series plot exhibits this type of behaviour, we say that a trend
pattern exists.
- Study a firm’s past employment needs over a period of years to predict future needs.
- Changes in Productivity
- There will be seconds, minutes, year or day, some frequency of happiness/ sadness or a
hard core sales data depending on time,

Parts:
Trends: We can observe here there is an increasing pattern, so we call it trend, in certain
cases it can be static, declining, aberration.
Moving average: If it is a 3 years moving average it’s a very straight case, taking summation
of 500, 600, 800 & taking out its average. It will lie somewhere between 600. Then if you
want to calculate average between 1995 to 1998, then the data point should be between
1996 to 1997. So here the average is continuously moving.

Seasonal Pattern:
The trend of a time series can be identified by analysing multi year movements in historical
data. SP are recognized by seeing the same repeating patterns over successive periods of
time. E.g. a manufacturer of swimming pools expects low sales activity in the fall & winter
months, with peaks sales in spring & summer months.
Aspect gets completed within one year. A seasonal behaviour is very strictly regular,
meaning there is a precise amount of time between the peaks and troughs of the
data.

Cyclical Pattern:
A cyclical pattern exists if the time series plot shows an alternating sequence of
points below & above the trend line lasting more than one year. E.g. many economic
time series exhibit cyclical behaviour with regular runs of observations below &
above the trend liner. Often cyclical component of a time series is due to multiyear
business cycle. For e.g. periods of moderate inflation followed by periods of rapid
inflation can lead to time series that alternate below & above a generally increasing
trend line.

Yt=T*C*S*R (classical/ multiplicative model)

Yt=T+C+S+R (additive model)
Trend
Cyclical
Seasonal
Irregular

Use of seasonality in HR planning:

- Predict HR budget
- Hiring of contract staff

What is regression analysis?

Regression Analysis is a way of mathematically sorting out which of those variables does
indeed have an impact. It answers the questions: Which factors matter most? Which we can
ignore? How do those factors interact with each other? And perhaps most importantly how
certain are we about all of these factors? Example: Suppose you are a sales manager tyring
to predict next months numbers. Various factors like weather to competitors promotion to
the rumour of a new & improved model can impact the number. In regression analysis those
factors are called variables. You have dependent variable the main factor that you are trying
to understand/ predict like e.g. monthly sales. Then independent variables – factors you
suspect have an impact on your dependant variable.

Regression: Relationship between the outcome & its input variable.

- If someone is satisfied with his/ her pay, then the quitting tendency or attrition tendency
might be low, there might be other factors also of course.
- If we are thinking about Attrition intention (outcome is your dependant variable) & pay
satisfaction (input are not dependant on anything), others could be growth opportunities.
Troubles of Regression:
- You are the one who is going to think about the factors & if you miss out on certain factors
then you will not be able to capture it in the analysis.
- Expertise should be there to choose

Wastage Analysis:
Wastage in manpower related situation is-
- Voluntary retirement
- Normal retirement
- Stability Index
- Skills Inventory

Labour Turnover Index:

Labour beginning: 250
Labour end: 230
Labour Turnover = (No. of employees leaving/ average no. of employees employed)*100
Average no. of employees: (250+230)/2 = 240

=> 20/240*100 =8.33%

Skill Inventory
(from the slide page24)

Indian Metal Case: (2:57 mins)

- Realistic Job preview: It is better to tell candidate beforehand that what are the negatives
associated with the organization. We give a traditional preview that sky is the limit but in
actual the reality is something different. If you give them the pros & cons then actually the
people will be ready to accept it.
- You have to create fairness & create a situation where the resource based will not be
lacking, even the mining related circumstances can be improved upon.
 SESSION 7-8

Succession Planning:
Succession planning we view from the role criticality point of view & how do we build the
competencies required by the critical role. In business, succession planning entails
developing internal people with the potential to fill key business leadership positions in the
company.

Sometimes it happens that when a CEO is leaving, along with that person, his/ her entire
network also moves out, for instance when Cyrus Mistry had to resign along with him, his
entire network/ other imp. people also had to move out, so in that case your entire
succession plan goes haywire, in this case even though you had a succession plan but you
are forced to do a replacement plan.

Another option could be we can have a plan A & plan B in this case. E.g. Yes Bank had
shortlisted 5 people to replace Rana Kapoor- 3 internal & 2 external & they finally recruited
an external person. In Axis Bank – P J. Naik created a good market condition for the bank,
but during his departure he refused to give names, so they recruited Shikha Sharma an
outsider. There was one vote that went against Shikha, he kind of created a ruckus, but the
point is that instead of giving so many years to Axis, at the time of leaving he had to be
remembered as someone who was not a good team player/ who could not create a legacy
system that he himself created & gave a bad picture to the media. In L&T’s case split
situation happened where A.M. Naik’s position was split.

How to address these challenges?

How can we create this situation that it remains still at a succession. You have to think
where we are heading, so that we don’t have to rush just to recruit someone.

Replacement planning:
The process of finding replacement employees for key managerial positions
In replacement planning the starting point is the job, whereas in succession management
the starting point is the strategy of the organization.

Selling:
If the management decided to sell the company to a new firm it would most likely not only
bring with it a new management team, but would also leave existing management without a
say in strategy matters. Many of the organizations which are family-owned businesses &
they are not interested in carrying out the businesses, so selling is the option.

MBO:
Traditionally, Management Buy Outs (MBOs) involved the management wanting to purchase
a controlling interest in the company and working along with financial advisors to fund the
change of control.
Today, MBO activities involve promoters divesting their stake in a firm by selling out to PE
players willing to finance the asking price. The PE players are flexible enough to enter into a
partnering relationship with the existing management. Companies e.g. Nilgiri, Punjab
tractors.
Management Buy In (MBI):
• A management buy in (MBI) is the purchase of a company by an outside
management team. When the valuation of the company at the time when the
outsiders are coming in will be at the lower side. They may not be the real bosses,
but they might like to revive the company & after revival may take the selling route,
at this point the valuation will be high (for profitability). They locate the
underperforming organizations.
• In contrast to a management buy-out, where the purchaser is already working for
the company, the outside management team wants to replace the existing
management.
The Process:
• The management buy-in group usually evaluates several companies searching for an
undervalued business.
• The team leader is usually highly experienced, for example, a (former) board
member of another company.
• By replacing the existing management and applying new strategies to the business,
the management buy-in group intends to enhance the value of the company.

Refer Succession Planning Slides by Prof.

Internal successor:

Troubles with succession mgt.:

Elitism – Crown princess: The person himself/ herself might think that they are in an
elevated position.

Risk of spotlight – Poaching: When you joined an org. probably you aspire to become big,
once the other person’s name becomes big, what are we going to do to with the ones who
are not the chosen ones. So in this case to retain them you need to motivate them, help
them to grow in their own manner if not the fast track way, etc.

Selection bias: SEBI had a guide line that in the corporate board there should be at least one
women who may or may not become the successor of the CEO of the org., do you think
there is any bias. It should be more of a diversity inclusion. Idea should be to help women
grow & not just to fulfil the SEBI or any other mandatory requirement just for the sake. A
women should be helped by creating an inclusive environment, so that this burden of
proving can be handled well. Quota system is just a beginning it’s not a solution.

Unpredictable futures

Relay Succession: (Refer Prof. slides)

Horse Race:
Cons: The person who is not assigned the desired position is either asked to leave or will
resign on own because that person has aspired to reach that level. It is generally not advised
to hold that person back.
Refer Succession Planning Slides by Prof.

Employer Branding is when organization is pushing the brand to the external world, so it is a
company initiated activity. Internal people should be connected to the organization.

Employee Branding it is employees who carry the brand on their own, for e.g. Barkha Dutta
sometimes she is doing outstanding work for NDTV, activities that employees themselves
are doing while other people are observing them.

Self-branding is irrespective of your org. identity, individually you are self-developing, you
are creating a self identity, so that is self-branding. Individual oriented aspect.

All 3 are interconnected.

Kaffer’s Brand Identity Prism:

Physique is the physical part of the brand. The entire body of the tangible part like a logo.

Personality: Brand needs to be conveyed with certain kind of ambassador, could be internal
or external.

Internal side: Culture: Mc Donalds having an American culture from the country of origin.

External side: Relationship part: Like Nike giving a provocating tag line of ‘Just Do It’

Picture of sender: It would be the org. part.

Picture of recipient: It would be the customer side. There is a self-image & reflection quite
connected, e.g. Tata Nano, people who are using it might think that they have moved from 2
wheeler to 4 wheeler segment, but people who are non Nano user are perceiving it as
people buying it are those who do not spend much.

When we are doing employer branding part, all these matter, product or company brand is
also imp. while you are generating the employee value preposition.

APRIL Technique:
April is a probing technique which can be clubbed with the CBI.
 SESSION 9-10

Going Rate:
From India you are putting someone in US as an expatriate, your basic salary will be the
existing prevalent basic salary there in US.

Balance Sheet approach:

When anyone form India are visiting US, their parent company salary that would be the one
which would be the basic salary after that you are going to pad it up with other
components. When someone is coming from developed country to developing country then
also you can think of this approach.

1:54 mins.