November 2011
HR MESH Special Edition S C M H R D ,
P U N E
Volume 4
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Table of Contents
Page No.
Social Networking & Technology: Crucial Challenges for HR
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Metrics in HR: Are they re-defining HR Function?
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Social Networking & Technology: Crucial Challenges for HR
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Metrics in HR: Are they re-defining HR Function?
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Social Networking & Technology: Crucial Challenges for HR
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Metrics in HR: Are they re-defining HR Function?
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Aditi Bansal and Varun Vij, PGDM-Business Design (2010-12), Principal L.N.Welingkar Institute of Management Development & Research, Mumbai
Venna Naveen and Rakesh Sharma, 2nd year HRM & LR,(2010-2012), Tata Institute of Social Sciences
Arunima Krishnan and Viral Panwala, MBA, Narsee Monjee Institute of Management Studies
Arivazhagan GD & Anandh Sundar, PGP (2010-12), Indian Institute of Management, Ahmedabad
Mohit Bagga:PG-HR, 2nd Year, Management Development Institute, Gurgaon
Sonam Bhargava & Kumari Sonia: PGDM, 2 year, Indian Institute of Management Kozhikode nd
Social Networking & Technology: Crucial Challenges for HR
Sunny Lekhraj Telang: Sydenham Institute of Management Studies, Research & Entrepreneurship Education (SIMSREE), PGDM 2011-13
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Editor’s Note Greetings from the HR Forum!
Welcome to the HR Mesh Special edition!
Editorial Team
They say words are witnesses which often speak louder than documents. The
Rosanne Mathias Varun Chandar Arpit Chaturvedi
Corporate world today, is unthinkable without words such as ―Competency‖,
Designed By
function has become and is recognised as an indispensible organ for any
Varun Chandar
business entity.
―Best Practices‖, ―Work-culture‖, ‖Acculturation‖ , ―Employee Engagement‖ etc. And all these words are a standing witness to the fact that the HR
Just as the corporate world is constantly manoeuvring to cope up with the rapid political, social, economic, and cultural changes, so is the HR Function striving to gain better ground in dealing with the uncertainties of the time. The most obvious and logical means to achieve these ends are two – Growthmonitoring and Technology. Therefore this issue of the Special Edition throws light upon the two following themes – Metrics in HR: are they redefining the HR Function? Social Networking & Technology: Crucial Challenges for HR We hope that this issue of the Special Edition will enhance the readers‘ understanding of these subjects and also the applicability of the discussed tools and techniques. As always we are eager to hear your remarks, suggestions and comments about the articles and above all to catch up with you! So feel free to write to us at: hrforum@scmhrd.edu And until we see you next....Happy Reading!!
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Social Networking for HR I n s i d& e Technology: S t o r y H Crucial e a d l i Challenges n e It is the third time Nalini has called out loud from the kitchen to her 19 year old son Tejas, for dinner own articles, or include a calenfinished writing your newsletter, conand every time Tejas would replyyour back with a new name with whom he was chatting after long. She dar of upcoming events or a special vert it to a Web site and post it. One benefit of using your newsletter wondered how it would feel to meet up or chat with of her school friends now. When she left offer that promotes a newsome product. as a promotional tool is that you can school shefrom knew that these people beresearch left behind reuse content other marketing Youwould can also articlesinorthe findmemory lane as there was no media to keep insuch touch withreleases, such a large batch. But now Tejas has something apt and powerful to build up materials, as press “filler” articles by accessing thegot World market studies, and reports. Wide Web. You can write about a varinetworks and maintain contacts. The web and mobile have made a person omnipresent and has given ety of topics but try to keep your artiWhile main goal of distributing riseyour to omnipotent, powerfula interactions. cles short. This story can fit 150-200 words.
newsletter might be to sell your productWhile or service, the keythe to aadvantage successful Captionrealizing describing picture or graphic. newsletter is making it useful to your reported to her in office on readers.
Much of the content you put in your wandered back to the cases that were of these tools her mind constantly newsletter can also be used for your Friday. AnMicrosoft employee had bashed Web site. Publisher offers a the company reputation on a social networking website while anothersimple had way leaked out confidential to convert your newsletterinformation about a high profile client, A great way to add useful content to to a Web publication. So, you’re putting his isstatus as ―Did Rs.5 crores deal with Mr when Abhyankar‖. The scandalous behaviour of the your newsletter to develop and write “To catch the reader's attention, place an employee scandalized the client and he broke off all ties with the organization. The fate of these two interesting sentence or quote from the story I n s i d e S t o r y H e a d l i n e here.” cases was to be decided upon by Nalini as the Vice President-HR.
This iscan onefit among similar cases haunting thecan present day new organizations. Social media This story 100-150the innumerable If the newsletter is distributed rial. You also profile words. internally, you might comment employees or top customers or has moved beyond a medium of social interaction and has formed a larger superset thus changing the upon new procedures or imvendors. The subject matter that apway of communication between individuals, groups, professionals and organizations. Ubiquitously provements to the business. pears in newsletters is virtually accessible and scalable communication Sales figures or techniques earnings will have changed the speed of information flow. It has endless. You can include stoshow how your business is given birthontocurrent a parallel ries that focus tech- world where people air their feelings be it personal or professional. It is the growing. nologies innovations your latter or that hits theincompanies. It‘s not that the impact is always negative but the way of usage makes field. Some newsletters include a social media a double edged sword. As per a Nielsen survey on Facebook, there are approximately 800 column that is updated every You may also want to note million users of Facebookissue, aloneforand these instance, an users advice spend approximately five and half hours a day on business or economic trends, column, alone. user hasa book 130 review, friendsa letter and they increase at the rate of 8/month. The user is orFacebook make predictions forAverage your from the president, or an editocustomers clients. there onorthe site 40 times a month with each visit lasting 23 minutes approximately creating 90 pieces of content per month. He is on an average connected to 80 community pages. Facebook generates a staggering 770 billion page views per month. Thus this clearly indicates that companies can either fear Caption describn sori leverage d e S t platforms o r y for H eclient a ddevelopment, l i n e recruiting, branding and other business away Ifrom such ing picture or graphic. purposes. But before making any use of such a blessing, a company policy is indispensible. This story can fit 75-125 This might seem like words.
Microsoft Publisher includes
domesticating orclip policing people but the HR department of the company has to thousands of art images specify the code of conduct that employees must adhere to. This is because that not only improper from which you can choose Selecting pictures or graphics andmedia import into of technology and social dentyour thenewsletcompany‘s reputation but also pose serious legal threats. is use an important part of adding ter. There are also several content to your newsletter. For e.g. Houston‘s, a nationwide restaurant chain discovered a private MySpace page created by tools you can use to draw Think about your article and employees to vent aboutshapes management. and symbols.The manager on discovering the same terminated the ask yourself if the picture supemployees responsible. The employees sued an theim-restaurant chain but the jury ruled in favour of the Once you have chosen ports or enhances the mesplace it close artiemployees that theage, employer hadto the violated the employees‘ privacy and the federal Stored sage you’re tryingsaying to convey. Avoid selecting images that appear to be out of context.
cle. Be sure to place the caption of the image near the image.
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Communications Act. The decision came with a heavy price - Over $9,000 to the employees and a pending claim for $120,000 to cover the plaintiffs‘ attorney fees. This has also happened with a giant like Google wherein a fresh recruit was giving away information about Google‘s training programs, new product launches etc on his personal blog. The firing of the budding blogger attracted media attention thus putting Google in a tight spot. An organization exists due to transactions that take place between people (internal & external). These transactions whether it is physical or verbal have to take place in a controlled environment suitable for the organization and the people working in it. HR has the onus of making sure these transactions happen under certain conditions that are conducive to the organization and its image. HR sets these conditions in the guise of policies. Policies help in clarifying to the employee as to what are the acceptance criteria from the organization point of view. A good policy should also encompass the limits to which the organization interferes with the employee‘s usage of the social space and other technological platforms. For e.g. A policy giving a clear understanding to the employee if he or she is bound to promote the company and its products legally, without mentioning the employer relationship or not. According to a 2005 survey by the Society of Corporate Compliance and Ethics and the Health Care Compliance Association, nearly 25 per cent of employers have disciplined employees for improper use of online social networking tools but only 50 per cent of employers have an employer policy for use of social networking sites. This clearly shows that employers are ignoring the opportunity posed by such powerful tools. Also policies are not like an epic once written. The guidelines need to be made, communicated and re-examined every now and then considering the ever evolving scope of technology. For e.g. In the spring of 2005, IBMers used a wiki to create a set of guidelines for all IBMers who wanted to blog. The primary objective of the guidelines was to provide helpful, practical advice to protect both IBM bloggers and IBM. In 2008 and again in 2010 IBM turned to employees to re-examine the guidelines in light of ever-evolving technologies and online social tools to ensure they remain current to the needs of employees and the company. These efforts have broadened the scope of the existing guidelines to include all forms of social computing. This will however also help the HR department to promote the employer branding initiatives safely. For e.g. Impact99 is a revolutionary movement in Canada with a bold vision, which is to be the catalyst that drives Human Resources in Canada to embrace and integrate social technology into the workplace, creating higher engagement and stronger business performance. Thus one may conclude that while technology and social help the HR professionals promote the organization and tap the talent but it comes with its own set of challenges. The only way to strike the balance is to have a clear policy in place but at the same time giving employees an inner space to breath, share and express. For e.g. Google has its internal social networking site where employees can
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share their views on professional and personal topics . The HR department guards the prestige of the organization but at the same time it should provide the employees with ‗an internal parallel world‘ with guidelines. Thus HR has to marry the worlds of enabling and policing to take on the next generation technology revolution. Article Contributed By: Aditi Bansal and Varun Vij, PGDM-Business Design (2010-12) Principal L.N.Welingkar Institute of Management Development & Research,Mumbai References:
Is Your Social Media Policy Clear?- By Jackson Lewis HR Guide to Social Networking Policy- By Merisa Heu-Weller, Davis Wright Tremaine Enterprise: List of 40 Social Media Staff Guidelines- ByLaurel Papworth SHRM talk on Social media and HR challenges
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Metrics in HR: Are they re-defining HR Function? Globalization and the current business scenario are posing a huge potential test to many businesses. What has been a cake walk earlier is now a difficult task especially in the areas where cost is involved. The recent buzz word is Cost-Cutting (as many employers wrongly feel that this is an effective way to increase profits and margins). As a result of which an atmosphere was created where in each department had to prove its worth to the organization as to how efficient they are in bringing about the targeted profits. In order to be accountable, most departments have devised various mechanisms or metrics which positively show the increased ROI of the activities undertaken by various departments. It was since then metrics had their share of importance in the business. Metrics The definition of any metric is ―an agreed indicator of a process or outcome‖. Metrics are indicators which are often achieved as a result of combination of two or more variables which are directly captured by the organizations for a variety of reasons. These captures variables are generally the independent variables which alone may or may not bear any meaning to decision making. For example, number of hires in the current year may not add much value to the decision maker but whereas cost per hire which is a combination of total number of hires and the total cost involved in hiring that number of hires may add a lot of value to the decision maker. Hence, metrics are a combination of two or more independent variables which when brought together using some formulae or function become more meaningful to the decision maker, thereby making the decisions quite rational. It is worth noting that the metrics so defined only use the data which is captured, which means the data of the event which already took place and is documented. Hence, metrics reveal only the past data and based on this the decision makers‘ aid their future decision. The underlying theme of the term metric as mentioned in the book HR Scorecard by Dave Ulrich is that ‗what gets measured, gets managed.‘ Most departments have indeed been more successful in knowing what to measure to show their relative worth than HR department as a result of which HR has always been under limelight by the top management. This is evident from some major companies like Nissan, Bharti Enterprises, etc. have outsourced HR practices with an aim to cut cost. This leads to the assumption HR is a cost centre. The reason for HR being under the constant limelight in terms of contributing to the firms overall success is due to the difficulty in measuring the HR of an organization which is due to the fact that HR deals with intangible assets which pays off at a later date and not immediately and also because of the difficulty in quantifying the role of HR in improving these intangible assets is generally taken to be a cost centre by the top management (Dave Ulrich, Becker & Huselid; HR Scorecard). For example; one cannot immediately measure the effectiveness of training received by the employee on behavioural aspects.
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Many HR managers were in a dilemma of what to report to the management in order to buy in preference for HR. Adding to the dismay, many of these managers were also not trained statisticians to analyse the raw data which might have emerged out of daily business transactions into some insights which are really worthy looking at by the top management. We would like to quote the words of George, G. Blake, graphic shorthand as an aid to Managers, Harvard Business Review, March-April 1978, ―Of all the frustrations of the business life, surely and one of the most aggravating and persistent is the flood of paper.‖ Adding to this, Oracle data sheet which is made available online mentions that the reason why the decisions made by the top management are unable to bring the entire success as per their plan. The reason being firstly being the complexity of the data, which makes it difficult to select the right data for the use of making decisions and secondly being the unavailability of this complex data at the right time have both led to poorer quality of decisions. Advent of Human Capital Measures Over the years the growing concern among the HR fraternity, inter alia, to give HR its due of being a part at the table, has enabled HR take on futuristic vision and look its various functions from macroscopic perspective. The voice that, ultimately it is the employees which is a source of sustainable competitive advantage for an organization, is finding a huge support from all business quarters. This has led to reclining faith on HCM (Human Capital Measures). HCM refers to the knowledge, competencies, experience, and creativity of the workforce as well as their attitudes and motivations. Proper structuring of its management and sharing of knowledge pave way to provide a sustainable competitive advantage to the organization which is difficult to imitate. The HCM embarks upon non-traditional non-financial performance measure which has the capability to measure and control the organizations internal performance drivers. HCM addresses one of the major concern of the HR professionals that earlier compelled them to confine their roles to the administrative levels and not to the strategic level. Research demonstrates a direct positive correlation between the advancement of the organization in implementing HCM with the higher performance of the organization (Gates & Langevin, 2009). Further adding to this Ramanujam & Venkataraman (1986) have further stated that organizations which traditionally have circumscribed themselves to only financial performance have over the years are engaging in broader conceptualization of business performance which includes business performance (financial performance+ operational performance) and organizational effectiveness. The linkage of HCM with the Performance Management System of the organization provides for the alignment of business goals to the individual goals by breaking up the business goals into individual shares of employees, and thus serving larger interest of the organization. Evidently, the new rules of business demands HR to think from a holistic perspective of what to contribute, how to contribute and how to develop an elaborate system to measure its deliverables. These rules necessitate HR to score well on a scorecard that is integrated with the business scorecard. With this view the value of HR metrics finds an increasingly greater importance with each passing day.
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The introduction of HR metrics in the HR armoury has made intangible and tacit knowledge defined in the gamut of Human Capital as tangible and explicit. The advent of HCM as a performance measure for HR has proved the traditional financial measure as laggard, backward looking and short-term indicator, ill-suited to determine HR impact domains. According to Boudreau and Ramstad (2003) the traditional financial measures so far has evaluated the efficiency of HR while the effectiveness defined in terms of competence, motivation and attitude of the workforce has been ignored completely. Similarly, the impact measures of HR initiatives on the business performance have also been undermined, and all this has been possible because of the HR metrics which is constantly changing the HR landscape by providing a tool to measure the Human Capital. These metrics act like monitoring systems which constantly bring the ground data to the notice of the management in order to monitor the practices of HR being undertaken. These metrics are not present in silos but are integrated into management tools such as a balanced scorecard, scorecards, dashboards, etc. Balanced Scorecards have been in use since more than a decade. Balanced Scorecard runs across 4 main functions (Financial, Customer, Internal process and HR/learning) as identified to be important by its developers, Kaplan and Norton. This was and still is a very important tool for HR to continuously monitor its activities so as to reach its desired outputs. This tool received much impetus from the then organization which wanted to improve accountability and performance of individual stakeholders involved and also to majorly align the activities of various departments to the central main line of business (Kaplan and Norton interview with SC). HR scorecards have received much impetus after Dave Ulrich and his companions explained the need for such a tool in order to align the activities to the main business line. The issues in the past and the solutions like balanced scorecards and HR scorecards have always portrayed HR to lack alignment with the main business strategy. The solution in the recent times is not just about aligning of HR with the business but also in contributing to the firms‘ financial performance as is evident from the emergence of Analytical HR (Data Oriented HR) and Business intelligence systems.
HR Analytics
Graphical Representation of the Business Intelligence Model taken from Google
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The business intelligence systems which turn raw data into actionable insights have broadened the knowledge of HR thereby securing a safe place for HR at the board room table. This has enabled HR to be present with volumes of data that can be converted into actionable data as per the needs of the decision makers. As shown in the graph, dashboards measure what has happened and thereby provide the management with timely data of the functioning of any Department. It is used for monitoring purposes. The advantage which a dashboard has over the other tools is that a Dashboard is used to align the department with its business. It shows what is valued by and is vital to the business. The second reason would be to know whether those vital measures are working effectively or efficiently or not. Whether the organizations are achieving the above mentioned or not, can be shown through a thorough and updated dashboard. A third reason could be to increase intra and inter departmental communication and transparency. And lastly a dashboard can be automated as per the needs of the end users. According to the six sigma theory, efficiency of an organization comes when variations in any processes are reduced, thus leading to increased performance and Dashboard precisely aims at reducing such variations by giving the user a timely and at a glance view of the variations. Dashboards serve this very purpose in achieving six-sigma. The second level of business intelligence maturity provides the reason for the presence of such low/high data with respect to a particular metric on a dashboard. This is basically the drill down approach and lies at a higher end of the BI maturity than dashboards. The third and the final level of BI maturity is the Predictive Analytics‘ which generally answers the question of ‗What is going to happen?‘ Predictive Analytics‘ in the future shall be used as a source of competitive advantage over the competitors (Davenport & Harris). Predictive Analytics can be used to predict the outcomes of HR activities using a wide array of past data and pre-informs the management about any consequence occurring thereafter. Jean Cash, HR Direction of a mid-sized US firm ‗In-Transition‘ stated that metrics will help HR professionals build credibility with the business, but there is a need to be measuring the right things. Predictive analytics will allow HR to better calculate ROI and demonstrate their impact on the organization‘s overall success. Conclusion From the discussion made above, it can be inferred that HR has now taken a very active role supported by various metric tools proving HR efficiency and effectiveness. Over the years much of the research has proved on how investing in HR leads to long-terms effects. Many companies now have a strong HR team as HR is now able to prove the worth of its activities with its impact on the firms‘ performance. It has moved from a complacent administrative department to a more proactive strategic department aligning itself to the goals of the business. Times where the customer was perceived as the first person initially is now changed to employee as the first person. Attracting and retaining talent in this kind of an open market situation has proved to be extremely challenging for the HR department in an organization. In the recent times HR cannot be looked as being a support function to the various business
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departments but as an important business driver that has a direct linkage with the financial performance of the company. HR‘s role since the advent of analytics has been more of strategic than transactional. Some responsibilities which HR Analytics has posed to HR is in (Bhaskar Das, 2008)
Supporting the Organizational Strategic Planning Identifying opportunities for HR impact Prioritizing HR investments and actions Enabling managers in making objective decisions regarding workforce management Better aligning HR strategy with corporate strategy
All these changes over the years have made HR strong enough to rise to the level of other departments or even surpass them. From the above discussion, it is quite evident that HR has undergone a lot of transformation as per the needs of the business and metrics have played their part in helping HR prove its worth to the organization. With most organizations adopting Analytics, HR metrics have further strengthened the role of HR in re-defining HR from transactional to transformational in nature. Article Contributed by: Venna Naveen and Rakesh Sharma 2nd year HRM & LR,(2010-2012) Tata Institute of Social Sciences
References: Boudreau, J. and Ramstad, P. (2003), ―Strategic HRM measurement in the 21st century: from justifying HR to strategic talent leadership‖, in Goldsmith, M., Gandossy, R.P. and Efron, M.S. (Eds), HRM in the 21st Century, Wiley, NY, 79-90. Das B (2008); HR Analytics‘ and Tools from Information to Insight; Annual Conference at Cognizant Technology Solutions Davenport T. H & Harris J. G (2006) Competing on Analytics: The New Science of Winning Gates S & Langevin P (2009) Human Capital Measures, Strategy and Performance: HR Managers Perception; Accounting, Auditing and Accountability Journal: 23(1), 111-132. Oracle Human Resource Analytics retrieved from Google. Ramanujam V & Venkataraman N (1986) Measurement of Business Performance in Strategy Research: A comparison of Approaches; The Academy of Management Review: 11(4), 801-814. Ulrich D, Huselid M and Becker B; HR Scorecard.
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Social Networking & Technology: Crucial Challenges for HR
Why does HR need Social Media? Earlier, organizations could have easily survived without social media as a powerful tool but modern organizations need to utilise the full potential of these online tools. HR in any organization should use social media to hire, engage, motivate , strategize and influence opinion makers in social media and communities around them. The HR and Social Media is about reaching the right audiences influencing HR issues internally and promoting the job brand name externally. It is not just about having the right Facebook/LinkedIn page but to have the right content on it to involve the right audience. These days, the active social networking sites are more trusted than the company websites! That is the power of social networking. As social media becomes more defined in the business world, human resources professionals will have a significant opportunity to leverage this powerful medium in many aspects of the business. The job brand name is not about HR initiatives and the huge advertising budget. Today, the presence in the social media can build a strong, competitive advantage in areas of the recruitment, talent development and career management and employee engagement. When human resources begins to include employee involvement using social media in their corporate strategy, it also mean creating a culture that supports this change. While using social media tools provides human resources professionals convenience, establishing appropriate metrics to measure results will be key. Human resources professionals are learning what social media tools are available and how they can be leveraged in the workplace. Many of the rules regarding what works and what doesn‘t haven‘t been tested yet. But one thing is certain: Human resources professionals understand that social media is the easy answer. The challenge is integrating a cohesive, relevant and an effective strategy at every level of the organization.
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Utility of Social Media in Modern Organizations as HR tool Employee Connect Social Media networks have communities that comprise of current as well as former employees. Often the discussions show the current mood of the employees and it is very important for HR as a function to monitor them and respond to them as well. Sometimes employees are reluctant to bring their issues to their management but are more open to venting it in front of peers and the community. HR can use this aspect of social media networking to know what‘s wrong in their organization and devise programs to improve the condition. Recruitment Employers can use the social networking sites to post new job openings or browse through communities where people register themselves for employment opportunities.
Employee Engagement Collaboration technologies can help to make people more productive. There is an opportunity for employees to share ideas, replacing the old style suggestion boxes with a more interactive process, which is being used by many organizations now a days.
Learning/Training
There is a fundamental shift in the way both training and working is happening in organisations. Social media revolution means that now everyone can have access to the Social Web and a wide range of services and applications to support individual as well as their team's learning, performance and productivity. Knowledgeable videos or data is shared online, job related queries are resolved in such intranets and extranets. This clearly shows the use of social media as a tool for improved productivity.
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Source: NHRD ppt on Social media Employer Branding The below figure clearly shows how effectively the networking sites can be used for employer branding. Successful use of social media has had a positive impact on employer brand equity for companies such as Starbucks, Cisco, Coca-Cola, Microsoft etc. 
Recommendation on LinkedIn Company pages Any new activity or product of a company like a webinar/trade show etc can be recommended by many people to increase its awareness and credibility. The mentioned example shows how it can be done: 
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Innovation Social media has resulted in decentralised, participatory and user-led communication processes. Employees can be encouraged to come up with innovative business ideas which will lead to co-creation and Ideation. The following is an example of Dell:
Crucial challenges of HR Information Gold Mine v/s Litigation Battle Field
Sure the social media has opened up an information gold mine, leaving very little chance for the employers to be surprised in their Tête à tête with the candidate; however it also opens up a Pandora‘s Box of issues unheard of in the era gone by. Certainly the usage of social media leads to the Holy Grail of more savings than ever anticipated for the humble staff function but the path is full of land mines, ready to explode and destroy more than that could be salvaged over a number of years. Recruitment Increasingly Facebook and more so Linkedin are used as recruitment tools to good effect, the perceived impact being cost savings. The social media revolution has unleashed a torrent of new employer tools to obtain information about applicants and this is the centre of all legal activity which the organization maybe making itself vulnerable to in the future. The credibility of the information available is uncertain and the lack of guiding Social Media Laws make usage of the information available anything but tricky.
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Background checks The employer needs to be aware of its own state laws with regards to usage of the information available in the public domain for recruitment. Frequently the information on these sites maybe eulogies by a third party or an acquaintance which would shroud the reality of the person‘s background. This defeats the very purpose of the procedure and casts more than a ghostly probability of selecting the wrong candidate. In most cases the usage of Social Media information for background checks is not explicitly specified and thus makes the employer vulnerable to legal action.
Privacy Issues Social media once again raises the eternal debate of ‗public‘ v/s ‗private‘ information. With the ‗if you have it flaunt it‘ attitude people are less prone to adjusting their privacy settings making personal content (videos, photos, comments) available only to a select few. With everything in public domain the HR is well within his/her rights to mine for such information before signing on the dotted line. This however can go pear shaped easily—some laws requiring only information ‗relevant‘ to the nature of the job to be used as basis for selection, the picture gets hazy as definitions of ‗what is relevant‘ might be borne out of individual mental models and organizational values. Certainly there would never be a one size fit all type of definition that would clear the air.
On the other hand if the potential/ current employee does tinker the privacy settings it becomes a horse of a different color since accessing the information without prior permission would be illegal and if the HR accesses information under the guise of becoming friends but instead uses the false identity to gain information about the applicant, they may be subject to liability. This also constitutes a violation of the ―terms of use‖ conditions typically applied by all the social sites and reinforces the ―relevance to the job‖ argument for E.g. Someone who spends most nights at the bar can be genius at work when it comes to product development or creating an ad. Most definitely an innocuous comment in the past can cause more trouble in the future than hiring an unknown entity as an employee. Anti Discrimination ‗A picture is worth a thousand words‘ and the applicant search can unearth an ocean of snaps and videos which would definitely influence the hiring decisions for the organization. This is a manifestation of the biases the HR or the recruitment manager would have with regards to race, ethnicity, gender, or any other protected classifications. The issue of factors ‗relevant‘ to the job crop up again, and the HR would be in a tricky situation to quantitatively explain the subconscious reasoning. As an employer each organization strives to be amongst the ‗Great Places to Work‘ and would thus strive to be non-discriminatory in their hiring process. Effective Talent acquisition entails obtaining more information to make sound hiring decisions which paradoxically leads to discrimination. The recruiters are in a conundrum—whether to go by the information mined out of the social media and risk losing the talented candidate to a less curious competitor or ignore the information and thus question the very
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the search process. Discoveries made through facebook or tweeter or even you tube need to be verified in order to be protected against law suits filed in case of non-hiring; this however is extremely difficult if not impossible in today‘s day and age of technology diffusion. Being able to prove with certainty that a certain rejection was not based solely on the information available in the public domain proves to be the Achilles heel for the HR. The savior in this case can be having a social media policy which clearly details the various rules a company would follow with regards to the information usage. Corporate HRs however haven‘t yet kept pace with the rate of social media penetration. Employee Engagement Considering the pervasive nature of social media in human lives, many organizations are looking at using it to improve employee engagement. This however turns out to be a tough nut to crack. Ironically many IT companies and media houses are increasingly facing employee resistance to increased usage of the social media for developing a sense of belongingness and employer branding. The success of these programs lies in proactive usage of the initiatives by the employees; however ‗mandatory‘ usage for employees succeeds only in amplifying disregard for such initiatives. In such a scenario social media usage becomes a catch 22 situation for the HR.
Employee Monitoring With the advent of technology monitoring procedures have simplified to a click of a button or even just touch. With businesses going global and round the clock operations the boundary between personal and professional time is blurring. Social media is at the forefront in this context, where every action although in a personal capacity may and certainly does impact the brand as a whole. Although the social media eases the traditional difficulties in monitoring it involves a tradeoff with the litigations one may face for intruding the privacy of employees. Also the organization increasingly faces the risk of disclosure of trade secrets & other confidential information in the public domain by an estranged employee. This would require more stress on the developing water tight hiring contracts and thus better able to envision future challenges which would not be a cause for concern in the past or even in the current business environment.
Social Media Opportunities & Best Practices Social Media will yield results if integrated in a careful and judicious manner in the various operations of the organisation. The social media policy should be focused more on empowering employees rather than restricting them. The medium can be best used to share important information as long as the communication is two-way enabled. HR also needs to encourage transparent communication internally. Social media can thus act as a tool for connecting people and thereby foster exchange of cross functional interactions. Employees can be very easily converted into brand ambassadors, by treating the brand
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internally and externally in the same way. The staff function can be involved with the informal modes of communication, which can serve as the basic of having a PR activity via social media and thus build readiness to respond if and when the employment brand is not communicated in the right manner. Social media can be used as an enabler to cultivate collaboration across divisions and management levels within the organization by empowering employees to form groups and open discussions on social networking platforms that focus on solving specific problems or experimenting with new ideas. Social media can also be used to hunt passive talent, i.e. finding people who are not actively looking for a change but might be the perfect fit for your organization. It becomes less cumbersome to maintain an effective employee alumni network with social media. This opens up rehiring opportunities leveraging the diversity of experience. Social media would also aid development of a collaborative learning environment by redefining learning and development within the organization. Article Contributed By: Arunima Krishnan and Viral Panwala MBA, Narsee Monjee Institute of Management Studies References: NHRD presentation on using social media for employee engagement http://www.socialsignal.com/blog/alexandra-samuel/using-social-media-drive-business-innovationinsights-guy-kawasaki-and-targets-michael-axelin http://snurb.info/node/1556 http://www.employerbrandingonline.com/articles/social-media.html http://www.trainingpressreleases.com/404.asp http://www.slideshare.net/mspecht/social-media-employee-engagement http://www.therecruiterslounge.com/2011/05/02/how-to-build-employee-engagement-using-social -media/
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Metrics in HR: Are they re-defining HR Function? In today‘s corporate world, performance based environment in any organization grants responsibility not only to the line managers but also to the human resource managers to present their team‘s performance and the efficiency of the programmes they propose to conduct for the benefit of the human resources. According to a recent survey conducted by the society of human resource management, human resource managers measure their department results mainly in the functions of recruitment and selection, performance management and compensation and least measure in the functions such as corporate social responsibility, work life programs and employment branding. The extent to which the human resource managers have taken serious efforts in defining metrics and measuring them, the more transformation the human resource functions have undergone. Though the fundamental requirement for preparing the metrics is to arrive at ―numbers‖ which is quiet fruitful in the past, effort should be taken that the ultimate objective of the human resource function should not be at jeopardy. Metrics are means used by companies not only to measure the human resource team‘s overall performance but also widely used by the human resource managers to measure the effectiveness of the various HR functions individually. In India, the concept of human resource development (HRD) scorecard was introduced by consultant and former IIM Ahmedabad faculty, Prof.T.V Rao through his popularized learning systems (www.tvrls.com) which was able to measure the maturity of the HRD in an organization on a scale of one to ten for various dimensions such as HRD systems maturity, HRD competence, HRD culture and business linkage. This concept was pioneered by Prof.T.V Rao and Udai Pareek based on their work done in L&T Ltd. in 1974. Now, HR Scorecard process is used to consolidate metrics and to display in digital computers, the measure of HR function and its effectiveness. The end result gives the overall HRD maturity rating which the human resource managers can use for their team‘s improvement. Identifying and applying appropriate metrics have increased the efficiency of the human resource functions. They help the human resource manager to build a measurable and persuasive tool to see how human resource contributes in achieving company‘s strategic goals. Measures such as employee attitude surveys, employee turnover, employee commitment surveys, percentage of employees making suggestions, extent to which employees can describe the company‘s core values and percentage of retention of high performing key employees have helped in assessing employee competencies and behaviours to a large extent.
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Metrics in HR can be classified under four broad functions: metrics used for recruitment and placement functions, metrics used for training and development functions, metrics used for compensation function and metrics for the employee relations function. In recruiting functions, the number of applicants per recruiting source and the number of qualified applicants among them help the HR managers to grade various sources. This metric has changed the way the recruitment used to happen. Most of the companies have found recruitment through internal reference as an effective method as a result of this metric. Metrics of this nature have helped the recruitment team to strategize for the future to recruit from various sources. In training and development functions, number of hours of training per employee per year is the most popular metric developed. It helps the scrutinizer to compare the level of training given and the performance of a particular employee. In case of very less improvement in performance, Ineffectiveness of the training programme or the employee is subject to analysis. In compensation functions, percentage of workforce eligible for merit pay determines the level of performance of the team with respect to the benchmark performance that leads to incentives. Percentage of employees satisfied with benefits helps to determine the employee‘s monetary satisfaction. In employee relation function, the number of grievances per year acts as a good metric to work out the ethical issues. Another example of metrics in action is the use of employee engagement survey, and measuring the trend in the scores. This metric has the changed the way few investment banks used to offer compensation to their CEOs. These banks have begun linking the employee satisfaction survey results to the CEO compensation. Rather than relying on ‗self explanatory metrics‘ like attrition, training etc, the difficult to measure employee satisfaction, is the more reliable way to measure how engaged are the remaining employees feeling. But when used wrongly, the metrics can lead to bad decisions. Metrics are playing key role in projecting ―numbers‖ also has its disadvantages. Human resource managers when aiming to score well in these metrics to show their teams performance are likely to alter the functions of HR leading to inefficiencies. According to the society of human resource managers (SHRM), recruitment and selection functions are the most widely used function among all other HR functions. Cost per hire is the most popular HR metric under this function.
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It helps to determine how a recruiting function can be structured to increase savings and/or reduce cost. But then again, there is a saturation point where overall benefits could decrease when there is too much lavish spending or too much savings. For instance, in the recruitment function for a new hire, certain big players use formalized job analysis before drafting the job description for the role that requires hiring. They conduct structured interviews to their current employees on an equivalent role, use questionnaire and direct observation to analyze the role and draft the most appropriate job description for the same. This process is either neglected or not performed efficiently by many organizations as they are in the process of re-defining HR recruitment functions to save overall costs. Such a move leads to reducing the effectiveness of the recruiting function. Without a proper job description, more leads are expected to be generated which would increase the number of candidates for recruitment tests and interviews and the overall costs are be expected to increase. Wipro for example was able to save employee cost considerably for the company. Their job analysis showed that software engineering did not require aptitude beyond that of a graduate. Hence, with an appropriate job description, they hired applicants with B.Sc degree and trained them with skills to become software engineers. By the time other companies caught up and followed that path, Wipro had built an advantage in that regard. Without compromising on the HR function, they were able to save cost on this regard. In certain cases, companies have fixed budget for recruitment process and has an upper cap on the number of candidates to be called for interview. They also have upper limit on the amount to be spent on various costs such as reimbursement for travel and stay. In these cases, many potential candidates are deemed to be missed out to be called for the interview owing to budget constraints on the upper cap on the number of people interviewed. The same is the case for employee testing where companies tend to be reluctant to spend more than an upper cap figure on testing programmes. Though the metrics such as cost per hire determines HR function effectiveness in recruitment, when held stringent would lead to compromise in quality and opportunity cost of losing potential candidates to the competitors.
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This boils down to an argument that metrics are useful in determining the effectiveness of a team‘s performance and its process efficiency but at the same time, they can‘t be held stringently against the human resource managers because various soft aspects involved in the HR functions cannot be measured but crucial to the success of the organization. Article Contributed By: Arivazhagan GD & Anandh Sundar PGP (2010-12) Indian Institute of Management, Ahmedabad Reference: Varkkey, Biju and Dessler, Gary (2011). Human Resource Management. New Delhi: Pearson Education, South Asia.
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Social Networking & Technology: Crucial Challenges for HR In 2005, an article was written for the fast company magazine. Its title was ―Why we hate HR‖. The article described HR Professionals as not-in-touch, dowdy and risk averse. Six years hence, a new breed of HR Professionals has taken the front seat. They have the capacity to use technology in almost all aspects of HR ranging from Recruitment to Compensation and now they have a direct line of sight from the social networking sites to the organization‘s Corporate Employment Brand. HR Professionals of a company can make use of social media to share information, learn, educate, collaborate and get connected with the world. Social media can take many different forms, including Internet weblogs, social blogs, micro blogging, pictures, forums, wikis, and videos. Social Networking and Technology have become an indispensable part of any organization‘s HR. Its effects have been seen in Recruitments, building relationships, Training & Development, Employee Management, Compensation etc. In case of recruitments, going through the virtual process saves a lot of time. LinkedIn is without a doubt the most important social media tool available to an HR Professional of any organization. Living in an informed world, it is important for the Organization to be easy to find and have a value proposition that is compelling to the prospective employee. On the other hand, it is also useful as well as essential for the employer to conduct a background check of the prospective employee before hiring. It also has a major role to play in building relationships, for instance, an alumni social network allows the current employees to connect with the ex-employees, retirees or long term leave employees. Intranet can be made with the help of Yahoo Pipes or a Facebook page can be created so that Exit Interviews of the ex-employees can be posted and employees can comment there, suggesting ways to resolve the problems. Effective Communication via Social Networking is also an advantage that can be put to use by an HR Professional. For instance, Ernstandyoungcareers is making the best use of its facebook page by publishing current openings and having a tab to share ideas. Instead of sending e-mails they prefer to tag the employee to whom the particular set of information is valid. This kind of communication, for instance, a blog is a very effective way of communication because it allows the reader to give feedback in the form of comments.
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Additionally, the complaints or problems faced by the organization can also be placed directly to HR via this portal. Now, with the advent of social media Training & Development has taken a new stand and there is no need of physical class room trainings. Various micro-training or induction programmes are conducted via social networking tools like Udutu Teach Facebook application, Yammer etc. Another major advantage of such a training programme is that doubts can be easily addressed via instant messaging. Youtube Videos can be developed and shared, which are of great help in the training programmes. All the hassles of Virtual Reporting can be put to a stop with the advent of Social Media. Otherwise it is time consuming for the Manager and the Employee as well. Instead the Managers can focus on the task of formulation of strategy. This way all other employees of the organization can know in what way the other person is contributing to the Business goal. Social Networking Sites also give face and reputation to an organization just like any person. So, it is important for the organizations to maintain corporate brands. Word of Mouth provides the most powerful opportunity for any organization to reach to people and vice versa. So, it can very well contribute to promoting and advertising the organization. The most important advantage of using Social Media for the same is that it is free of charge and it is available 24*7. Till now the focus has been on what can be done with the help of Social Media and Technology. Now, the focus is to be shifted towards what are the challenges that are being faced in accomplishing the same. Issues in hand are whether the organizations are ready for such a radical change despite the people being ready? Firstly, it is very important to identify the purpose for which Social Media is to be used, whether it is to be used for Internal Employees or External Employees. It should be asked to oneself if it really makes sense to the organization. Employee Innovation can be highly boosted with the help of Internal Information Sharing and employees can become the connectors, mavens or the marketers in case of focusing on external potential employees. Social HR Initiatives can also be used for better understanding of the employees, may it be what they expect or what they feel about the Organization as an employee. It can also be used for broadcasting a certain set of Information to the prospective employees. After identifying the purpose it is important to move towards creating a strategy, implementing and diversifying. Other issues include staying up-to-date with current technology since technology is something that is dynamic. Another issue is that once the goals are set it is important to meet those goals. So, a regular monitor progress should be in place.
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Another issue is the buy in of the employees, which includes how it will be communicated to the employees, what is the basic training that needs to be given to the employees for the same, how much time it will take etc. But, the biggest hurdle is buy in of the Top Management. The top management asks for tangible results like ROI. In case of HR it is like asking ―what is the ROI of a coffee maker or a phone?‖ A large component of HR professionals believes that social networking can reduce the cost of recruiting, reduce communication costs and improve Opportunities for career management. They just need support for the same. So, conclusion of the above is that Social Media has loads of tangible benefits to an organization because it follows no hierarchy when it comes to Social Networking Organizational Design. All are on the same platform. It is about two basic questions, which are whether the employees are ready to accept the change and whether the Top Management is ready to trust in the HR Professionals. Since the HR Professionals are the gatekeepers of the employee data, it makes them the natural advocates for social networking. Article Contributed By: Mohit Bagga PG-HR 2nd Year Management Development Institute, Gurgaon References: 1. http://dannybrown.me/2011/09/13/social-media-hr-recruiting/ 2. http://www.entrepreneur.com/blog/218710 3. http://humanresources.about.com/od/careernetworking/a/social_media.htm 4. http://blogs.payscale.com/compensation/2009/10/hr-social-networking-policy.html 5. http://birkman.com/news/BMI_WP_SocialMedia2.pdf 6. http://mashable.com/2010/11/08/human-resources-social-media/ 7. http://unbridledtalent.com/2009/09/04/social-networking-what-hr-needs-to-know/
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Metrics in HR: Are they re-defining HR Function? When the whole corporate world talks about their progress in numbers, why do HR managers stay behind? HR Metrics has started coming into the limelight in early twentieth century when the scientific management movement was ascending. Since then it has been gaining attention in almost all the organizations. HR metrics and the measurements have been affirmed to be powerful and effective in showing the managers what there strengths areas are and where they need improvements to comply with the expectations of the organization and its employees. It can also provide meaningful data to assist in making worth decisions for the business and department. But even after setting the standards, are the usage of these metrics re-defines HR functions, still remains a big question. The advantages of HR metrics are enormous, success of which can be attributed to its quantifiable property. Some of the notable HR metrics being used in numerous organizations are turnover rate, health care costs per employee, time to fill open position, cost per hire, workers‘ compensation cost per employee, absence rate etc. All of the above measures provide incredible insight into how cogent the HR function is. It has been usually observed that if efficiency or performance is measured in numbers, it makes people more productive and competitive. Hence we can interpret that when it comes to calculating tangible factors, HR metrics do wonders. But whether they are relatively successful in evaluating intangible factors, to answer this we needs to cogitate a lot. HR metrics are efficacious when they are aligned with the business strategy and organizational goals. Striking balance between HR metrics with corporate strategy also ensures that the evaluation of HR really matters and has an impact on the organization. Moreover, the application of HR metrics is dependent on the size, complexity and nature of industry the particular company is focussing on. In the current competitive world, responsibility of the HR managers is no more restricted to the measuring of just metrics, but stretches far beyond it to analysis of these figures. Once of the biggest mistake many organization do is that they try to implement a large number of HR metrics. An organization need to be cautious that it doesn‘t caught into wild goose chase of employing HR metrics, just because their contemporary and competitors companies are implementing it. HR analytic is another aspect of HR metrics which motivates managers not to blindly trust in the results of various metrics and go beyond the reason to analyse the numbers. To understand this concept better, let‘s take example of turnover rate. In any kind of organization, the increase in the turnover is considered as matter of contention. But if the high turnover is providing a chance to get rid of low performers, then it is real bonanza. HR metrics foster a theory that people can be made more efficient by measuring the time they take to accomplish a task, but it has been observed it‘s over use leads to a competitive and non motivating environment where workers or employees develop a feeling of being considered as a machine. To reduce time to complete a particular task in an organization has always been paramount.
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But in the race of discounting the time, HR managers are compelled to compromise with the quality of the work which in any way won‘t serve purpose. Therefore, a proper counterbalancing between time and quality is required. Various parameters that usually affect time while measure the quality is performance, productivity, working conditions etc. Therefore, numbers obtained through the metrics sometimes overlook these factors There are abundant of HR metrics available for finding the performance of a unit or an individual employee, but it becomes an important responsibility of HR managers to verify if they are fitting with the organization‘s goals. Time has come when HR managers involve the stakeholders from different departments while developing and implementing HR metrics within the company. The metrics should also focus on the broader issues of the organization that influences its performance at any point of time. For example, cost related metrics is of high value, if during recession, an organization is exercising downsizing and refraining from undertaking any kind of research or development related activities. While if an organization follow the growth trajectory can concentrate on metrics directed at creativity and innovation. Many times the intangible factors are ignored in the organization. One reason could be absence of having well defined measuring tools. Also, till now perceptions of the manager about his employees have been extensively used to judge them on these factors. But if HR function is to be redefined, the intangible factors would be kept on top priority. Some of the intangible factors like characteristics of workers, team orientation, working habits, leadership skills, personality, experience, accountability, professional presence etc, allow the organization to optimise its goals and create a healthy environment. Side by side, the study of linking between tangibles and intangibles can foster the HR manager role. For example, if HR manager can analyse the employee engagement and turnover relation, so they can predict what is probability of loosing the talent because of low engagement levels. Further, manager can take strategic action by deciding where and how much to invest to attain the high engagement levels. Instead of running behind the statistical measures for every aspect of development and learning strategies, managers should utilise their effective inert skills like people skills, sharing, co-ordination and understanding the human behaviour and positive reinforcing factors. It will also help them in enhancing business savvy, managerial oversight and internal corporate personality.
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In long term perspective, HR manager as a strategic partner should not be restricted to only measuring the HR metrics, but should also analyse and evaluate the impact or outcome of it. A standard metrics is no more the solution to every organization, as each of them has different perspectives and pressures. Also, as employees are the valuable assets of every unit, it is not possible to predict the value and behaviour of this asset through measurements. In the world of emerging trends and technologies, the opportunity for HR leaders is to move beyond the limits of traditional ―lagging metrics‖ of the past 40 years, and should utilise the upcoming tools such as analytics. Although, the metrics such as ―time on fill‖, ―costs per hire‖, ―turnover‖ etc certainly provide useful data , but they fail in providing the strategic data and information. Metrics do identify costs already incurred, but in fact they do not provide any kind of value-added information. Some organizations still use the traditional data points, which are no longer the exclusive property for analysis. HR Analytics is a better tool for a skilled business leader to gain insights not only on the basis of past results, but also on the forecasts. It extends the limits of what HR managers can measure through cost aspect, as it focus more on the ―why & how‖ aspect rather than on ―what‖ aspect. Therefore, re-defining HR functions is one of the challenging tasks yet to be done; it has to include the amalgam of both the subjective as well as measurable side of all the aspects. Article Contributed By: Sonam Bhargava & Kumari Sonia PGDM, 2nd year, Indian Institute of Management Kozhikode References http://www.zigonperf.com/resources/pmnews/sullivan_hr_metrics.html http://www.therainmakergroupinc.com/blog/bid/91282/More-Flawed-HR-Metrics-VoluntaryTurnover-Rate http://www.gautamblogs.com/2007/06/problem-with-hr-metrics.html http://www.humanresourcesiq.com/metrics/articles/do-we-have-to-measure-everything/
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Social Networking & Technology: Crucial Challenges for HR I would like to begin my article with a quote which I find relevant to our present situation and to the theme of my article. Ronald Reagan once said “Each generation goes further than the generation preceding it because it stands on the shoulders of that generation. You will have opportunities beyond anything we've ever known� Human Resource is an inseparable part of a business. Irrespective of its size, each business relies heavily on its Human Capital, particularly the Innovation driven and manufacturing driven organisations. With changing time the methodologies of doing business have changed commensurately. The changes in these methodologies were mainly driven due to emerging generations within the society. Each business required alterations with oncoming of new generation. Organisations capable of quickly adapting to this change are able to survive while the rest struggle. Changes in the customer behaviour with each new generation was evident to companies, it was also known to them that the same characteristics are being reflected within the organisation, since the new recruits belong to the same generation. Belonging to generation Y, I‘ve seen the differences in the manner of doing business between my generation and the previous generation. Since entire generations of employees are being replaced in regular intervals, it becomes essential for Human Resource Managers to align himself with these changes. A new generation is knocking on the doors of these HRMs, eagerly waiting for an opportunity to prove themselves.
Generation Z, also known as Generation I, or Internet Generation, and Generation Text, and dubbed Generation @ is the new work force for any organisation. The characteristics of this generation are of vital importance to HRMs, since some of the traditional theories of HR would seem less effective while managing them.
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RECRUITING: According to me the most important aspect while recruiting Gen z employee is to forget the outdated concepts of Degrees and Certifications that symbolized quality. HRMs would want to recruit them on the basis of relevant ideas and methodologies to their business rather than the degrees and certifications they hold. This has been true for ages, right from Henry Ford to Mark Zuckerberg. Imagine what it would be like to miss out on Mark Zuckerberg while recruiting just because you were emphasizing on degrees. Recruitment for the younger generation would require emphasizing on Talent and relevant Innovative Ideas and being lenient on the actual qualification front. Recruitment sources would also require an overhaul. Traditional sources of recruitment such as employment agencies would have to be given less priorities. If there is a Talent available out there, you should be rest assured that the name will pop up on a social networking site more than often. HRMs would have to extremely mobile during recruitment process. Searching techniques have to be broadened to include more of internet localities. Age old written exams and interviews would require new supplements to gauge the employee. Needless to say the process has to be technology driven. Psychological analysis would also play a vital role during assessment. Competitive edge for companies would rely on how they are able to identify younger and younger talent for recruitment. ALIGNMENT: This generation grew up with Yahoo and Google. Internet is their hometown. Search engines, cell phones and now smart phones are extended part of their senses. They communicate through technology, primarily on social media sites and their network of friends is large, much larger than any other generation. As ‗digital natives', they are comfortable sharing their personal lives and private thoughts with a large network of people, many of whom they have not met face to face. They are not focused on developing relationships but rather on the getting immediate responses to their requests. HRMs would have to take into account this peculiar trait. Gen Z is exposed to different kinds of social network over the internet and has the constant urge to communicate with everyone possible. For HRMs it will be essential to manage their work force given the fact that there are multiple ways in which they can get distracted and deviate from the goal. HRMs will have to ensure that the employees are aligned in such a way that they identify themselves with the goal of the organisation and are clear about individual goals set in front of them. As earlier mentioned, Gen Z will have an internet presence far reaching than their physical presence and will not differentiate between their private and professional life when it comes to expressing their thoughts. So it has to be ensured that employees do not communicate classified or sensitive information which could be used for the wrong purpose.
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A good HRM will be able to publicize his organisation through his employee‘s communication channels. A good boss creates a good impression; a good impression gives birth to good thoughts and Gen Z excels in communicating their thoughts through whatever means available. Just imagine what kind of organisational brand can be created through social networking sites if a HRM is able to keep most of his Gen Z employees happy. MOTIVATION: Gen Z would require different sets of motivational techniques within the organisation. Monetary incentives would drive them to a certain point but not all the way. For them, working environment will need to support various forms of technology including the use of personal gadgets and personal social media site participation. Each new technology which is an integral part of their personal lives has to be part of the office environment as well. They will seek out organizations with a large social media presence and understanding of how to use it, creatively, to build and market products and services. Occasionally they will seek help out from others from the virtual world to share ideas, create products, and service customers. Gen Z being very independent, would look for employers who can provide them with self-directed training environments where they can learn without being dependent on others very often. Employees from Gen Z will be bubbling with energy; it would be absolutely critical how their energies are channelled. HRMs would have to ensure majority of it is utilized for the organisation‘s benefits. Social gatherings, cultural events and other employee engagement activities within a company would have to be organised more often since they are integral part of Gen Z‘s lives. Recognising the efforts of employees would be one of the key factors to encourage them. Most of them have set out to achieve high goals and to make it big. It would motivate them if HRMs are able to recognize their efforts. Long time employee retention would not be problem if due recognitions, acceptance of new ideas and greater scope of creativity is provided to them.
Gen Z loves a challenge, wants to be surrounded by bright, creative people, want everything right now. They thrive in multimedia environment and can learn any time anywhere. So it would be absolutely necessary to include majority of their learning process through various forms of multimedia. It can be clearly seen that motivation for the Gen Z would be sets of small efforts which look out for their ―basic social needs‖. If the above mentioned steps are taken care of, they‘ll serve as an extended employee retention program as well.
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Some other motivations could be providing flexible hours, work from home, less or no attire regulation at workplace and encouraging parallel careers for the employees. Gen Z employees would not be leaving organizations rather manager‘s inability to deal with the frustration that comes with managing the younger generation. There is a new breed of players coming into the stadium, players who are in a league of their own, if given an opportunity and guidance are going to redefine the way the game is played. Looking at the present economic scenarios over the world, it‘s not a pretty field we would be handing over to them, probably one of the worst conditions the economies have been through, but the final and the most important characteristic which I forgot to mention was that this generation is Innovative, which has been the driving force behind all the businesses. If this generation as a consumer has been responsible for the drastic changes seen across the globe, across the businesses, we can only imagine how much disruption will be created by their innovations when they ascend within organisations. For my conclusion I would like to quote Bill Gates whose words precisely portray the potential of Gen Z “Generation Z will be able to conceive of the Internets possibilities far more profoundly than we can today. This new generation will become agents of change as the limits of the Internet expand to include educational, scientific, and business applications that we cannot even imagine” Article Contributed By: Sunny Lekhraj Telang Sydenham Institute of Management Studies, Research & Entrepreneurship Education (SIMSREE), PGDM 2011-13 References: 1. For characteristics of the Generation Z: [http://www.smh.com.au/news/parenting/children-of-the -tech-revolution/2008/07/15/1215887601694.html] 2. For Miscellaneous behavior pattern of Generation Z: [http://sparxoo.com/2010/02/23/examining -generation-z-stats-demographics-segments-predictions/] 3. For Traditional HRM Policies deployed in companies: [http://www.shrmindia.org] 4. The newer set of policies required for Generation Z were my personal conclusion from the general personality traits observed amongst the generation. No references were required required for it.
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Acknowledgements The HR Forum Team Senior Team Aby J Kottukappally Bibin Poovathany Divya Amarnath Isha Chandra Karanbir Singh Junior Team Aastha Dhawan Arpit Chaturvedi Pulkit Mitra Rosanne Mathias Royston Carlton Vaz Varun Chandar
Contact Us Email: hrforum@scmhrd.edu Contact no.: 9730008615 Web site: http://sites.google.com/site/hrforumscmhrd/home Facebook page: https://facebook.com/HR.SCMHRD Mbaskool page: http://www.mbaskool.com/pages/hrforum-scmhrd/ Address: HR Forum, SCMHRD, Symbiosis Infotech Campus, Plot No. 15, Rajiv Gandhi Infotech Park, MIDC Hinjewadi, Pune-411057, INDIA
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