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HRM Case Study HCL Technologies
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1. Introduction
1.1 Company Background and Summary of Department/Function/Role
HCL Technologies Limited is an Indian multinational technology corporation based in Noida, Uttar Pradesh, India. This is an HCL enterprise affiliate. In 1991, when HCL became a software services firm, it was initially a research and development unit and was an autonomous entity. Applications, infrastructure, engineering and R&D are the services offered by HCL (Madhavan, 2017). It has its subsidiaries worldwide in 32 nations. The corporation has offices in the United Kingdom, United States, France, and Germany with an international grid of R&D, “innovation labs” and “delivery centres”, over 159,000 employees and its customers include 250 of the Fortune 500 and 650 of the Global 2,000 businesses. It works across aerospace and defence, automobile, finance, capital markets, chemical and manufacturing segments as well as the energy and services industry, health care, media, tourism, industrial engineering, consumer products, insurance companies, the life sciences, the internet and entertainment industry etc.
Like many other multinational corporations, HCL also emphasis on the standardisation of employees and focus on their wellbeing first (Madhavan, 2017). Employees are considered the foundation and given the utmost respect and prioritize their requirements accordingly to safeguard their benefits and professional adaptability while being conscious about their interests. The HR department is essentially strategic as it operates a huge bulk of employees. The HR department of HCL is competent enough and put forward the necessity to create a structure of reliance and transparency to ensure the seeding of further transformation. The HR authority implies the employee first and customer second strategic philosophy to enable the employees to create the optimum value compatible with the company objectives.
1.2 Overview of HRM in the Organisation
Being an internationally recognised brand, HCL can manage and allocate its resources appropriately which will allow the brand to perform in its competitive market (Goud, 2013). The goals of the companies are expected to be accomplished by the compliance and strength of their values regarding their operational and management strategies. the company focus on the development and maintenance of values such as keeping employees at the first of their priority list, faith, transparency, flexibility and value-centricity. The fundamental approach of the HR department of the company is to provide a quality professional environment to its employees so that they can dedicate their credibility and motivation to enhance the company profile (Kar and Misra, 2013). They put their staffs at the core of the company's value zone and expect their growth to be a specific element that can act and derive further values for sustainable existence and operational standards for the company.
The HR authority pays attention to the facilities and required benefits of the employees to ensure of keeping them motivated towards their professional responsibilities and create a sense of reliance and transparency among the employers and employees (Chattopadhyay and Pandit, 2021). It is aware of the importance of employees and even tries to provide them with policies that Include clinical facilities to keep them and their families healthy. Even in this pandemic situation, the company has chosen to keep its Indian business operations restricted as other geographies are recovering with advanced vaccination so the 30% of the workload has been shifted to foreign offices to keep the Indian clients and others stakeholders secured.
1.3 Choice of Aspect(s) of HRM
The context of HCL represents the value that it inherits in respect of its employees and how the policies are compatible with the organisational attempts to facilitate the employees with utmost benefits (Rana and Kapoor, 2020). though the company has been structuring its policies with regards to its employees yet the extent of employee commitment is somehow weak towards its professional duties as evident from the given framework. The report will illustrate the critical aspects of employee dedication and how this can lead to strategic alignment within the company.
1.4 Reason for Choice
The aspect is selected as professional commitment is the core factor that determines a corporations quality of output which can lead to further advanced business opportunities (Rana and Kapoor, 2020). It is perhaps the most essential factor to reach the strategic pinnacle and compete within the competitive market dimension. A multinational company such as HCL must focus on the elevation of its strategic prospects to accomplish its targets prominently within the determined time frame.
1.5 Brief introduction to following sections
The report will outline and elaborate on the notions concerning the aspects of HRM and how the models selected can be applied within the company context to assure strategic standards with a critical evaluation. It will incorporate personal reflection and highlight the importance and impact of HRM on the company context.
2. Models and Concepts
2.1 Key Concepts
The HRM comprises a broader field of roles and areas of significance than merely managing staff, handling salaries, conditions, compliance and grievances; the growth and retention of key staff are increasingly at concern for HR managers. To this end, as per Sutherland and Canwell (2004), new development aims to recognise and comply with their preparation and organisational behaviours as well as their awareness of the position their employees play in the broader sense and the criteria of such employees. There are two ways that the concept of HRM can be categorised, such as the concept regarding the definition of HRM and the concept regarding various functions of HRM.
In terms of definition, the traditional aspect states that HRM is the process of managing individuals in organizations in a structured and systematic way. This includes the areas of recruiting people, the retention of employees, the set-up and management of pay and benefits, management of performance and organisational change, and exit management of the business (Management Study Guide, 2021). Another interpretation includes managing individuals from a macro viewpoint in organisations, such as managing staffs as a group connection between managers and employees. Such definitions highlight the difference between the management of staff as specified in the former definition and the management of human resources mentioned in the latter one. In one word, personnel management is centred on "workforce", while management of human resources is centred on "resource".
Alongside, from the aspect of various functions, as per Ahammad (2017), the major concepts of HRM are:
This involves hiring new hires, employer and termination of employment contracts in full-time or part-time terms.
New employee embarkation and continuous development capabilities are a crucial commitment for organisations, and HR is committed to sustaining an established human resources development strategy.
Wages and benefits are also covered by the administration of human resources. It requires recognizing suitable offsets based on their position, performance and legislative considerations.
Effective and good practises in different sectors require careful consideration of workers' safety and health issues.
It is also a key responsibility of the human resources department to defend employees' interests, to coordinate and to mediate differences between the organisation and its resources.
2.2 Chosen Models (with justification)
Harvard Framework of HRM
Managing people in the workforce of an organisation has evolved significantly and is supported by theories and is governed by law, whether by managers, administrators or ranks and files of the company (Stewart and Brown, 2019). For the present report, the Harvard Framework of HRM has been selected, considering the notion of the HRM from the employee commitment towards organisation and external stakeholders, and its relation with employee engagement. Michael (2019) has stated that HRM's Harvard architecture is a five-component HR model:
- On the left, the model begins with interest among stakeholders. They include managers, shareholders, staff groups, government and much more. The HRM policies characterise such interests.
- Situational factors affect such interests at the very same time. Such factors include the features of the workforce, unions and all the other considerations mentioned in this model of HRM.
- The HRM policy affects the situation and stakeholder interests. Such policies include core human resources practices such as recruiting, training and rewarding.
- HRM strategies, when done effectively, lead to good HRM performance. These are consists of retention, economic efficiency, commitment and competencies.
- Such positive HRM developments have long-term implications. They can be personal, organisational and social.
A more holistic approach to HR is taken by the Harvard framework, including various degrees of the result. Boxall (1992) has stated that the benefits of using his model are:
- Integration of recognition of a range of stakeholder interests
- Identification of the significance of trade-offs between the owners’ interests and the same of workers and between different groups of interest, either implicitly or explicitly
- Broaden the HRM's context to include "employee influence", working organisation and the related supervisory style issue
- Recognizes a wide variety of contextual effects on the strategy option of management, which indicates a blending of product and socio-cultural reasoning
- Stresses strategic decision, as it does not rely on the determination of situation or the environment
The Harvard model poses a significant effect on the theory and practices of HRM, especially in emphasising that HRM is not the staff but the general concern of the management. According to Agyepong et al (2010), the framework is founded on the assumption that only when managers develop a perspective on the way they want people engaged and developed by the company and on which HRM policies and procedures can accomplish these objectives, the historical personnel management issues can be resolved. The authors said that HRM will probably continue to be an autonomous series of operations, each led by its own practise tradition and that there is no guiding philosophy or strategic vision, which only general managers can deliver.
3. Analysis of HRM
3.1 Application of Model
3.1.1 Application of the Harvard Framework for HRM within HCL
HCL is a globally known corporation which deals with more than 1,50,000 employees and targets the accomplishments of its predefined goals (Rasheed, 2020). Stakeholders are the primary concern and properties for the growth of the company.
Stakeholder Interest
Stakeholders’ interests are the biggest concern for HCL. To reach the desired outcome, HCL must focus on the strategies which can assure stakeholders interests and align them with the specific contexts of the operations (Kaushik, 2020). The brand is aware of its employee concerns and put them first but it is also necessary to ensure that the interests of the external stakeholders are being accomplished by the actions and performance of employees (Choudary, 2020). Shareholders, management, government etc. are the stakeholders which influence the internal operations of a company. The HRM policies must be compatible with the interests of the stakeholders.
Situational Factors
Situational factors are also important elements that need to be considered by the company. Situational factors can include employee traits, external market factors etc. To maintain the stakeholder interests, the company needs to evaluate the situational influences to establish a more holistic approach for better determination of its output and quality of that result (Rout and Satpathy, 2020). For instance, for HCL it is currently difficult to manage the Indian operations as the pandemic crisis is increasing gradually. It is a significant situational factor that can influence the operational and strategic management of human resources. Now the company has shifted its operational pressure to diverse locations to assure proper operational consistency and health of its Indian employees (Bandyopadhyay and Srivastava, 2020). Now HCL will have to govern its global HR practices in a more critical manner o ensure that the clients and other stakeholders get the appropriate outputs within the desired time without any inconvenience.
HRM Policies
Situational factors often influence strategic policies. Such as if there is a certain skill that is required to enhance the professional efficiency within the company which can facilitate all the stakeholders, that can only be possible if the company alters or modifies its existing recruitment and skill development policies (Harney and Collings, 2021). Especially in the time of covid-19, it is a challenge for the company to be consistent with its performance while eliminating a major work unit due to the threat of the pandemic. The company will have to redesign its HR practices and strategies to assure that the employees can perform proficiently while being consistent with stakeholder satisfaction (Bogi?evi?-Miliki?, 2020). It will also help the company align the strategic approaches with its stakeholders’ interests and open up wider business opportunities for the company.
HRM Outcomes
Having a strategic HRM policy restores the efficiency of an organisation which further influences the positive performance and educational outcomes. The application of strategic HRM practices leads to a set of benefits for both the company and its employees (Paauwe and Farndale, 2017). As mentioned, and elaborated above, the extensive modifications can reinforce employee motivation and professional capabilities which will lead to better performance and integration. If it is to exemplify, then it can be explained that if an organisation requires a definite skill relevant to the industrial need, then the policy-wise alteration of skill development methods can increase employee capacity which can lead to extreme job retention, enhanced professional calibre, increased professional dedication and most importantly company performance (Bogi?evi?-Miliki?, 2020).
For HCL also, adapting to the new strategic approach to reduce the operational responsibilities from the Indian workforce to allocating them to the foreign employees will have a significant influence on the employee motivation as the operations will be conducted appropriately and the employees will get more committed towards their employers when they are given necessary flexibility (Paauwe and Farndale, 2017). Employee retention, commitment, and competence will also increase to assure long term consequences for the company.
Long-Term Consequences
The systematic application of positive HR practices during the pandemic will allow the employees to regain their competence and will contribute to the company more committedly (Paauwe and Farndale, 2017). It will lead to prolonged consequences which can impact the entire organisation including the employees, external stakeholders, shareholders and society as well.
Though there are some real advantages which can be derived from the application of the framework within the company yet the focus on stakeholder interests can adversely impact employee motivation (Rout and Satpathy, 2020). Because this framework employs a hard HRM approach which can negatively harm the existing employee potentials by pushing them to cater to stakeholders' interests for a longer period.
3.2 Critical Review of HRM
HCL is a responsible and target-oriented company that focuses on the improvement and wellbeing of its employees. The company has a policy that enables the organisational hierarchy to proceed with the practices that might cater for the individual as well as organizational requirements simultaneously to meet the intended outcomes (Madhavan, 2017). The corporation emphasis on multiple areas of concerns and incorporates each of them within their strategic practices. These are manpower management, performance appraisals, recruitments and selection, training and development, promotion, transfer, demotion, resource allocation, welfare management etc. The company provides medical and life insurance, leave encashment, superannuation, bonus and allowances, maternity and paternity leave, gratuity and appraisal mechanisms to keep the employee motivation intact (Chattopadhyay and Pandit, 2021). The company also conducts extended recruitment programs to ensure the right selection of candidates. Both internal and external recruitment methods are utilised along the campus interview process.
Another factor that plays a crucial role in the organisation is an attempt to conduct a proper HR audit to assure that the HR policies are properly aligned with the organisational objectives and deliver the desired results while assuring employee interests. The corporation uses audit observations to advise systemic or person-based improvements (centralisation of the contracting role), changes in the development of processes (creation of quality assurance measures for consistency within teams), or relevant technological changes (automating a procedure). Audits take place in the enterprise at various stages (Madhavan, 2017). People self-certify their efficiency on an individual basis. Several operations and quality standards are measured at the fundamental level. There is a service management structure at the corporate level, which includes several process evaluations and process design audits.
3.3 Importance and Impact of the HRM on the Organisation
Advanced and strategic human resource management practices have a significant impact on organisational performance within HCL (Chattopadhyay and Pandit, 2021). The company has a strategic vision which is accomplished by the implementation of multiple HRM policies. These policies help the company to intensify its measures of control and drive profitability accordingly.
Importance: Being an international conglomerate, HCL has a set of strategic goals which can be accomplished by the application of proper HR function which enhances employee satisfaction and motivates them to dedicate their intellectual property to the growth of the company (Kaushik, 2020). Within HCL, the HR department functions as the integral part which allocates adequate resources to every employee and assures them proper benefits so that they can perform with the requirement of its stakeholders and maintain the alignment of strategies intensively. IT minimises the gaps which usually exists within the operational functionalities and maximises the optimistic probabilities for growth.
Impact: Having a well-constructed HR system enables HCL to gather and retain the best professional who can contribute to the growth of the company positively. It helps the organisation to distribute the resources properly so that the objectives can be attained within a limited time and derive estimated outcomes. Especially conducting an audit helps the company to identify the challenges or downside to perfectly control the entre operational strength (Madhavan, 2017). The audit helps to gain appropriate insights regarding the organizational requirements and how the HR department is functioning to assure sustained performance and operational alignment. In a nutshell, these practices influence and amplify organizational productivity and enhances cultural integration to create a sense of trust and transparency which provides the authority of decision making to the employees as well to keep them engaged and committed with the organizational values.
4. Reflections on HRM of HCL
4.1 Reflection on HRM Practices within Department/Function
The "people" aspects of management concern human resources management. Each organisation consists of people, and the acquisition of their services and the development of their skills are vital to the achievement of the organisation's objectives, as well as to promote them to high degrees of success (Stankevi?i?t? and Savanevi?ien?, 2018). In addition to looking at HRM in the current scenario of HCL, it can be suggested that this is a four-function operation.
The function of acquisition is related to the requirements of human resources. This involves calculating labours' demand and supply. The acquisition also involves employee training, selection and socialisation.
It is visible in three dimensions. The first is training for employees, which focuses on developing skills and improving attitudes among employees. The second dimension is management growth, which is primarily concerned with acquiring information and increasing managerial conceptual skills. Thirdly, career growth is an ongoing endeavour to meet the long-term needs of individuals and organisations. It also has an important role to play in terms of training staff to make changes at all times. As the business scene changes daily, it is vital for an organisation, to adjust the change to survive the competitive market scenario, to be prepared to face the change and consequently change accordingly.
Maintenance is the final task in this process. In contrast to the motivating function which seeks to promote efficiency, the maintenance function provides the required working conditions for workers to sustain their commitment to the organisation.
The motivating purpose starts by recognising that persons are special and motivational approaches must represent each person's needs. In the motivational role of alienation, work satisfaction, performance assessment and systemic strategies to promote worker performance, the motivating function reaffirms the importance of measuring the management of results, compensation and advantage levels, and how to deal with the matter. Due to changes in society, the mindset of the person etc., more focus was placed in recent years on manpower and their motivational points at work. Researchers have identified nine significant areas of HRM, such as training and development, organisation and development, organisation or work design, human resource planning, selection and recruitment, personnel research and information framework, benefits and compensation, assistance for employees and relations with workers or unions.
HCL acquires workforce in a highly systematic way by successful HRM activities for each department (Saikumar, n.d). The Job Analysis, Job Description and Jobs Requirements obtained during the recruitment help to collect the relevant details about the work, roles, and obligations, working conditions, skill effectiveness, training and experiences of a candidate. The company has a separate department of staff which is responsible for effectively and efficiently implementing the different policies, programmes like recruiting, training, etc. It does not take time to diversify into another industry to the point that it is saturated. HCL Management has a very good understanding of business. It takes the requisite measures to resolve the problem at a time of complexity. Now that the HCL's personnel management is in its infancy stage, the department is still being modernised. The tech-giant believes strongly in the employees' role in the company since it knows that all 'Ms' like money, material, methods, machines and motivation collapse if the 'M' for man is absent (Tiwari and Saxena, 2012). All things, including material, money, and machinery, cannot be used properly in the absence of the best candidate. It therefore always systematically recruits people.
4.2 Personal Reflection on HRM Practices of HCL
Based on my experience of more than 13 years working in the HCL Technologies LTD, I have noticed that the company genuinely have an "employee first notion", and focuses on the employee commitment and engagement in the organisational tasks in this employee management process, which is a prime focus of the HRMD of HCL. However, intending to ensure different organisational practices, including HR practices, HCL audits their HR functions as they can provide an experience that makes employees thriving. The audit should not be viewed from a control and adherence point of view, but rather be seen as a mechanism that guarantees the HR work in the company to fulfil its intentions and commitments. The latter notion drives HR audits at HCL. The primary objective of the HR audits is ensuring that the activities, procedures, systems and processes of the company are mature and fulfil their stated function. The overall aim is to provide people with an employment experience that enables them to succeed. Furthermore, considering the organization's size of 105,000+ employee base and reach over 30 countries People Matters Media Pvt. Ltd, 2021), audits help ensure the delivery of the service following special legislative requirements.
Concerning the client contracts, clients sign with HCL through a "Master Services Agreement". To ensure uniformity, the audits that we perform to ensure that the unique tailored conditions for clients or customers listed in the contracts are met consistently. In 2013, Microsoft discontinued its sponsorship of few versions of Windows during my initial process of becoming a leader in a UK insurance project. The delivery manager present during that time, however, did not respond in time. That is why our clients were not satisfied and we lost some new business scopes as well. Our project had a considerable impact on our systems and also respective applications. The matter came to HCL management's attention and all project managers were terminated by them and new managers were appointed. Within three years, the new management team planned to update servers and software. Each of the members of the team worked hard to update the processes under the new delivery head. In this phase, the technological aspects of training programmes were assessed more by HCL Technologies Ltd. In addition to the initial training programmes, project training programmes will be implemented. The competency training initiatives in HR growth have concentrated more on 60-70 workers employed in the company's training and development activities.
4.3 Current Experiences in HCL
As an employee who is working in HCL for 13 years to date, I can say that the company is of utmost sincerity in their HR practices for retention of employees and their development in the process of delivering satisfactory service and products to clients or consumers. I have always seen that HCL take good care of the newly joined candidates and welcome them in all the possible ways. Currently, the company has great teams of talented people working in different departments and projects. Besides, the tech giant has made sure that the environment of the organisation stays productive and flexible. Since the pandemic, the company has given enough flexibility to the worker during the pandemic, in terms of work from home facility, so that employees can stay safe and secured by maintaining social distancing and also can continue their earning process.
4.4 Career Progression
While working in HCL, one lack in their people management noticed by me is in their gap of providing challenging works to the employees. This is directly linked with my development as an employee, as challenging tasks put us in situations that generate a more productive and innovative approach to performing a task. Apart from that, HCL is a dream destination for its employees because of its approach to development in other areas of training, recruitment, retention and employee performance and engagement towards organisation and clients. This has improved and will keep improving the professional attribute within me as an employee.
5. Conclusion
The human resource aspect is perhaps the most valuable part of an organisation. Especially in a constantly developing competitive market, the companies need to be able to create a market value that can enable the company to sustain its operations with utmost prosperity. The market is constantly evolving with the advancements of globalisation. Therefore, the necessity for talented employees has become more prominent across several industries. The companies have recognised the power of human resources and are focusing on the retention and development of their employees so that they can sustain a competitive advantage in the relevant sector. Especially in a service-oriented sector such as IT and software, employee efficiency has been a core aspect that assures these industries to grow sufficiently. Human resources are the pillars of the organisations that contribute their efforts to carry out the operations regularly to meet the objectives set by the companies.
Efficient employees drive the company towards the predefined goals and allow to enhance the profitability accordingly. Having a properly managed and guided workforce can elevate the company profile by standardising the performance level. HRM is the key aspect that correlates with the strategic management of human capital. Human resource management is the domain that is accountable for recruiting, retaining, managing the employee appropriately to provide the employees with the required motivation and professional satisfaction. The department is also liable for developing career opportunities for the employees and aligning employee contribution with stakeholders to meet organizational goals. The present report has been developed to address the importance and relevance of HRM function within the company. Here the report has been established with the company context of HCL, and India based multinational company.
The report has attempted to explicitly identify the core aspects and conceptual notions of HRM and how the concepts are associated with the practices of HRM. The report has been extended in a structured manner that involves a brief knowledge of the company profile with the HRM functional overview of the company. Gradually the report incorporated the explanation of major conceptual understanding of the discipline of HRM. Along with that it also covered an elaborate description of the relevant model of the Harvard Framework for HRM with the proper justification of the model to derive more specific knowledge from the analysis. Further, the report also explained the applicability of the model within the context of HCL to provide more rational insights about the aspects associated.
Eventually, the report also illustrates the importance and impact of these HR practices within the company and how strategic HR functions can influence the performance standards of the employees which help to construct a greater organizational profile with added values. Lastly, the report sums up its wider perspectives on the subject through a specific focus on the personal experience and how the experience of working with HCL reflects the company strategic HRM system. In a nutshell, it can be observed that the entire report has panned a wide range of perceptions to derive a concise conception from a macro to the concentrated spectrum of understanding.
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