Strategic Human Resource Management In Hyundai

Strategic Human Resource focusing In HyundaiStrategic serviceman resource management is the process of linkingthe kind resource agency with the strategic objectives of the organization in order to improve performance.If a global company is to function successfully, strategies at different levels need to inter-relate.An organizations human resource management policies and practices must t with its strategyin its competitive environment and with the immediate bank line conditions that it faces.The human resources-business strategy alignment bay windownot necessarily becharacterized in the logical and sequential manner suggested by or so writers rather, the design of an HR system complex and iterative process1.2.The Purpose of strategic Human Resource Management activities in HyundaiOver the past decade, HR researchers and practitioners feel focused theirattentionon separate important questions. First, what determines whether an organization bosomsa strategic approach to HRM, and how is HR strategy formulated? Of busy is whichorganizations atomic number 18 most likely to adopt a strategic approach to HRM. Is there, forexample, a positive association with a given setof external and internal characteristicsor contingencies and the adoption of SHRM? Another atomic number 18a of interest concerns thepolicies and practices making up different HR strategies. Is it possible to identify acluster or bundle of HRpractices with different strategic competitive models? Finally,much research productivity in recent years has been devoted to examining the rela-tionship betwixt different clusters of HR practices and physical compositional performance.Does HR strategy really matter? For organisational practitioners who are looking forship canal to realize a competitive advantage, the implication of HR strategic choices forcompany performance is certainly the key factor.1.3.contributions of strategic Human Resource Management to the achievement of Hyundai repels Ob jectivesManagement PolicyIn 2000, Hyundai Motor and Kia Motors merged to form the Hyundai Automotive Group and implemented a horizontal management system in September 25 of that year. The horizontal managementsystem gives departmental teams lengthy power to carry out corporate policies and implement their own action plans based on those policies. The horizontal management system is guided by common chord principles 1) Trust-Based Management 2) Site-Intensive Management 3) Transparent Management. These principles, to hold outher with the environmental policy mentioned later in this report, give direction to the management strategies that drive our business. In 2003, we realizeed 4 objectives to be met in the mid- to long-term strategies 1) enhance product value, 2) establish a global production system, 3) increase brand power, 4) improve environmental management systems.2.1.the business factors that underpin human resource planningAccording to company officials, Hyundais six asse mbly plants with a yearly production capacity of 1.65 million vehicles, were operating at sole(prenominal) 40 percent of their capacity. In May, 1998, Hyundai reacted to this grim situation by announcing plans to target off 27 percent of its 46,000 workforce in South Korea and to arise pay bonuses and benefits in a bid to save 230 billion won.Unfortunately for the management of the company, Hyundai had one of the most powerful and militant unions. The decision of the company to lay off workers sparked off agitations not only in Hyundai but in other companies too. The unions were particularly offended at the governments approval of Hyundais decision.In a materialization in Ulsan, where Hyundai has its biggest automobile plant, 32,000 employees participated in rallies. All across South Korea almost 1,20,000 employees from just about 125 companies participated in demonstrations against Hyundai and the governments decision. The government had to deploy nearly 20,000 riot guard to control the demonstrators2.2. assessment of human resorce requirementsHyundai Motor Co., form in 1967, was a part of the large South Korean Chaebol the Hyundai Group until the group split in September 2000. In the last four decades, Hyundai managed to establish itself all over the world as a company producing reliable, technically sound and stylish automobiles.In the 90s, the company started aggressive overseas expansion programs. By the late 90s, when Southeast Asian crisis struck, the company like all the other chaebols, faced serious pecuniary problems. To survive, it had to cut its labor force. The company offered various hideaway schemes, unpaid leave for two years, etc. to workers, and expressed its inability to support its entire workforce in the slack period.The unions refused to compromise and the management too held its ground. Finally, the government intervened to force a negotiated settlement between the union and the management.2.3. Human Resorce Plan in HyundaiHyu ndai Motor Co., formed in 1967, was a part of the large South Korean Chaebol the Hyundai Group until the group split in September 2000. In the last four decades, Hyundai managed to establish itself all over the world as a company producing reliable, technically sound and stylish automobiles.In the 90s, the company started aggressive overseas expansion programs. By the late 90s, when Southeast Asian crisis struck, the company like all the other chaebols, faced serious financial problems. To survive, it had to cut its labor force. The company offered various retirement schemes, unpaid leave for two years, etc. to workers, and expressed its inability to support its entire workforce in the slack period.The unions refused to compromise and the management too held its ground. Finally, the government intervened to force a negotiated settlement between the union and the management.2.4.Human Resource Plan contribute to stomach Hyundai objectivesCompany strategies and Government policies e ach arise from the decision-makers views of their own talk terms strengths and those of other relevant actors, as well as their assessments of opportunitycosts and their go awayingness to forego any dishings with the other party. Among the many actors that are relevant to policymaking, TNCs take a shit a particularly significant group, since they affect employment, generate and distribute income, alter thebalance of payments, assist in regional development, create technology and impinge on other policy areas.Governments are crucial in affecting company strategies, since they set the rules of the game. These conditions lead to the bargaining relationship between TNCs and Governments. That relationshipcan be viewed as a jointmaximizing (or mini-max) problem as in the theory of games with each side seeking to pursue its goals constrained by its resources, its dependence on the other party and its relationships with other actors.3.1. The Purpose of Human Resource Management Policies In Ashok Leyland.Human resource management policies are vital for organizations that are serious about resolving personnel issues and finding hr solutions. HRM policies are intended to help maximize the beliefiveness of your Human Resources function. HR should ensure that HRM policy you wipe out consistent, well-written court-ordered policies and procedures. HRM policy should provide hr advices for the organizations needing help with specific HR-related issues Individuals and organizations who are serious about human resources should understand the bottom-line importance of job evaluation, job descriptions and effective policies.Types of HRM Policies attendance Policy Attendance Policy Recruitment Policy Recruitment Policy Leave of Absence Policy Leave of Absence Policy Performance figure and Evaluation Performance Probationary Period Compensation Compensatory Leave Overtime Leave Annual Leave Educational Leave,3.2. The Impact of regulatory requirements on human resource poli cies in Ashok LeylandThe Human Resources regulatory contour arena continues to be a myriad of ever ever- changing state and federal mandates. The cost of ensuring compliance continues to climb with each new regulation however, in many cases, small and medium sized businesses simply cannot keep up.AlphaStaff provides Human Resources Regulatory Compliance turn that control costs, systematically address key compliance issues, and provides legal liability protection.AlphaStaffs unique approach developsa Human Resources regulatorycompliance foundation and tailorsit to meet your business needs.ConclussionHR Audit Unsure if you are in regulatory compliance? We leave review your hiring practices, record keeping, policies and past practices and make recommendations.HR Posters, Forms Handbooks We will supply regulatory compliance posters, provide forms (hard copies and online) and develop customized employee handbooks thatensureyour compliance.Hiring Assistance We will assist with job des criptions,interview tuition,handle background and drug viewing and post your jobs.Administration Tired of records retention? Let us do it all personnel files, verifications of employment, unemployment responses, FMLA and your EEOC reports and charge answers.HR Consulting Services Call us with your employee issues and we will provide creative solutions that best fit your needs but maintain your compliant Human Resources foundation.Training We can provide online or classroom training on Human Resources business issues ranging from Diversity to Management Training to Dealing with the Difficult Customer.EPLI You will be protected from discrimination, wrongful termination and harassment suits with our premier Employment Practices Liability Insurance coverage.EAP Employee Assistance Programs that provide counseling and guidance to your employees available 24/7 done an 800 hotline.REVIEWING HUMAN RESOURCE guidance4.1.Analyse the impact of organizational expression on the management of human resourcesOrganizational design and structure.As we mentioned earlier, modifying the organizations basic structure may be a way of changing the actual norms, and hence the culture. For example, a culture of mistrust between the leaders and the members of an organization may be exacerbated by a line structure that discourages vertical communication.Organizational systems and procedures.The simplest definition of culture is thats the way we do things around here. Routines or procedures can become so embedded that they become part of the culture, and changing the culture necessitates changing those routines. We can all recollect of organizations where a weekly or monthly meeting takes on a life of its own, becomes more formalized, lengthy, and elaborate, and becomes the only way information moves within the organization. Changing the culture to improve communication may only be possible by changing the meeting procedures or eliminating the meetings altogether.Design of physi cal space, facades, and buildings.The impact of the design of buildings on culture can easily be illustrated by considering the executive perks in an organization. Which organization do you think will have a more open and participative culture, one where top executives have reserved parking spaces, top floor offices, a special ski lift and an executive dining room, or one where the executive offices are not separated from the rest of the company and executives park and eat in the same prepare as their employees?Stories about important events and people.This is a way that culture is perpetuated in an organization, in that it helps define and solidify the organizations identity. By what events and stories they emphasize, leaders allure that identity.Formal statements of organizational philosophy, creeds, and charts.This is the way leaders most often try and influence their organizations, and encompasses the vision or mission statement and statements of the organizations (or the lea ders) values and philosophy. By themselves, however, formal statements will have little effect on the organizations culture. They must be linked to actions to affect culture.4.2. Analyse the impact of organizational polish on the management of human resources wherefore is culture so important to an organization? Edgar Schein, an MIT Professor of Management and author ofOrganizational Culture and Leadership A Dynamic View,suggests that an organizations culture develops to help it allot with its environment. Today, organizational leaders are confronted with many complex issues during their attempts to generate organizational achievement in VUCA environments. A leaders success will depend, to a large extent, upon understanding organizational culture.Schein contends that many of the problems confronting leaders can be traced to their inability to analyze and evaluate organizational cultures. Many leaders, when seek to implement new strategies or a strategic plan leading to a new vis ion, will discover that their strategies will fail if they are inconsistent with the organizations culture. A CEO, SES, political appointee, or flag officer who comes into an organization prepared to shake the place up and institute sweeping changes, often experiences resistance to changes and failure. Difficulties with organizational transformations arise from failures to analyze an organizations existing culture.WHAT IS ORGANIZATIONAL CULTURE?There is no single definition for organizational culture. The topic has been studied from a variety of perspectives ranging from disciplines such as anthropology and sociology, to the applied disciplines of organizational behavior, management science, and organizational communication. Some of the definitions are listed belowA set of common understandings around which action is organized, . . . finding expression in language whose nuances are peculiar to the group (Becker and Geer 1960).A set of understandings or meanings shared by a group of people that are largely tacit among members and are distinctly relevant and distinctive to the particular group which are also passed on to new members (Louis 1980).A system of knowledge, of standards for perceiving, believing, evaluating and acting . . . that serve to relate human communities to their environmental settings (Allaire and Firsirotu 1984).The wakelesser level of basic assumptions and beliefs that are learned responses to the groups problems of survival in its external environment and its problems of internal integration are shared by members of an organization that operate unconsciously and that define in a basic taken -for-granted fashion in an organizations view of itself and its environment (Schein 1988).Any kindly system arising from a profits of shared ideologies consisting of two components substance-the networks of meaning associated with ideologies, norms, and values and forms-the practices whereby the meanings are expressed, affirmed, and communicated to members (Trice and Beyer 1984)..4.3.the effectiveness of human resources management is monitored in organisationCultural forms function as the linking mechanism by which networks of understanding develop among employees. (Trice, 1988) The cultural forms shown in the table on pages 293-94 act as a medium for communicating ideologies, values, and norms. Cultural forms enable leaders to get messages about desirable culture to influence thinking and ways of behaving. Cultural forms also address the emotional aspects of organizations that are commonly referred to as cohesion or camaraderie. Organizational scholars Janice Beyer and Harrison Trice elaborate on this pointCultural forms not only aid sensemaking through the meanings they convey they also aid the sensemaking process through the emotional reassurances they provide that help people persist in their coping efforts. Forms provide a concrete anchoring point, even if the meaning they carry are undefined and only imperfectly transm itted.Also many cultural forms involve the expression of emotion and, by this venting of emotions, help people to cope with stress.Federal agencies are take in with cultural forms that serve these purposes. However the challenges facing strategic leaders of these agencies involve creating and orchestrating cultural forms that can foster change and have longevity beyond their tenure.Cultural forms that have longevity by their nature such as rites and ceremonies reaffirm the organizations core ideologies, values and norms.4.4. Recommendation to improve the effectiveness of human resources management in an organisationStrategic leadership needs to be transformational if it is to serve the organization. Transformational leaders must operate from a foundation of high morality and ethical practices andCulture is deep seated and difficult to change, but leaders can influence or manage an organizations culture. It isnt easy, and it cannot be done rapidly, but leaders can have an effect on culture. Schein outlines some specific steps leaders can employWhat leaders pay attention to, measure and control.Something as simple as what is express or measured, over time, can have an effect on an organizations culture. unmatched example of this is an emphasis on form over substance. If leaders pay more attention to form, an organizational culture can develop where people start to believe that the substance of a recommendation is less important than the way it is presented. whizz can recall when more attention was paid to the format of viewgraphs used in a briefing than what was said what we characterize as eyewash.Where do you think people will focus their effort once it becomes accepted that a slick presentation is what the leaders are looking for? How could you go about changing that aspect of the organizations culture? Consider cultural assumptions and beliefs underlying a zero defects organizational mentality. You must always be perfect mistakes arent allowed. If this a ssumption reflects a dysfunctional aspect of an organizations culture, how would you go about changing that perception?Leader reactions to critical incidents and organizational crises.The way leaders react to crises says a lot about the organizations values, norms and culture. Crises, by their nature, bring out the organizations underlying core values. Often, this is where rhetoric becomes homely. Reactions to crises are normally highly visible, because everyones attention is focused on the incident or situation. Disconnects between actions and lyric will usually be apparent, and actions always speak louder than words. Additionally, a crisis not only brings a great deal of attention, it also generates a great deal of emotional involvement on the part of those associated with the organization, particularly if the crisis threatens the organizations survival. This increases the potential for either reinforcing the existing culture, or leading to a change in the culture. Such a crisi s can provide an opportunity for a leader to influence the organizations culture in either a positive or a negative way. reach role modeling, teaching, and coaching.Nothing can take the place of leaders walking their talk. The personal example of a strategic leader can send a powerful message to the members of an organization, particularly if it is ethical and consistent. Reinforcing that example with teaching and coaching will help others to internalize the desired values.Criteria for allocation of rewards and status.The consequences of behavior-what behavior is rewarded and what is punished-can significantly influence culture. If the organization reacts to new ideas by ridiculing the ideas and those who propose them, it wont take long before people believe that new ideas are not welcomed or desired. One belief of perceived organizational culture is reflected in the statement Dont raise questions or suggest improvements, because nothing will come of it and you will just get in trou ble. If you were in an organizations strategic leader, what steps could you take to alter the reward system to change this aspect of the culture?Criteria for recruitment, selection, promotion, retirement and excommunication.One of the powerful ways of changing an organizations culture is through the type of people brought into, retained, and advanced in the organization. You should be able to establish a desired culture base in an organization by bringing in and advancing individuals with the values you want, and eliminating those with undesired value bases.1. Dont oversimplify culture or confuse it with climate, values, or corporate philosophy. Cultureunderliesand largelydeterminesthese other variables. Trying to change values or climate without getting at the underlying culture will be a indolent effort.2. Dont label culture as solely a human resources (read touchy-feely) aspect of an organization, affecting only its human side. The impact of culture goes far beyond the human sid e of the organization to affect and influence its basic mission and goals.3. Dont assume that the leader can manipulate culture as he or she can control many other aspects of the organization. Culture, because it is largely determined and controlled by the members of the organization, not the leaders, is different. Culture may end up controlling the leader rather than existence controlled by him or her.4. Dont assume that there is a correct culture, or that a strong culture is better than a weak one. It should be apparent that different cultures may fit different organizations and their environments, and that the desirability of a strong culture depends on how well it supports the organizations strategic goals and objectives.5. Dont assume that all the aspects of an organizations culture are important, or will have a major impact on the functioning of the organization. Some elements of an organizations culture may have little impact on its functioning, and the leader must distingui sh which elements are important, and focus on those.CONCLUDING THOUGHTAn understanding of culture, and how to transform it, is a crucial skill for leaders trying to achieve strategic outcomes. Strategic leaders have the best perspective, because of their position in the organization, to see the dynamics of the culture, what should remain, and what needs transformation. This is the essence of strategic success.ReferncesBooksBook ace Author.Adler, N.J. 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(1997, January 20th). Rise of the baby-boom bosses.Business Review Weekly, 28-34.Annual Report.Western Australia Police Service. (1999).Western Australia Police Service Annual Report 1999. Perth, Western Australia.Corporation/Institution as Author.World Bank. (1994).Averting the old age crisis Policies to protect the old and get on growth. Washington DC World Bank and Oxford University Press.