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HR Practices in India

In this global marketplace, understanding of other cultures and their HR practices is invaluable. This learning module provides students with information about HR practices in India. It includes background information about India’s culture, HR practices and applicable federal HR laws. It is divided into three 50-minute classes and includes activities and quizzes for each class session. Click below link to access the PowerPoint files with teaching notes

Rao India HR Practices To Post

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Professional Etiquette

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Professional Etiquette

Is HR at Its Breaking Point?

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Some companies are choosing to do away with traditional HR departments and divvy up the duties to other departments, but not everyone agrees that’s such a good idea.

Three years ago, Toronto-based G Adventures held a funeral for its human resources department.

“We had a company function where I put up crossbones and skull with the title ‘Death of HR,’ ” says Bruce Poon Tip, founder of the adventure-travel company, which employs 1,500 people.

Poon Tip took the drastic action after spending a year looking for a veteran of the field to

become vice president of human resources, which would have been a new position overseeing the five-person department. He received 600 rèsumès and spent months interviewing candidates.

“Every meeting I had, I couldn’t wait for it to end,” he says. “It seemed like HR was the art of oppression. I knew I didn’t want that in my company.”

The debate over HR’s shifting function and format continues, but it is apparent that as executives shift their corporate priorities, HR is following suit. Some companies have chosen to outsource their HR functions; others have shifted responsibilities to front-line managers in efforts to transform HR leaders into business leaders; and some, like G Adventures, have no HR department whatsoever.

Poon Tip moved administrative tasks into the finance department and created two new departments. The so-called “talent agency” focuses on recruiting and talent management. The “culture club,” where everyone has the title “karma chameleon”—named after the hit 1980s song sung by Boy George—organizes everything from fundraisers for the company’s nonprofit foundation to holding celebrations whenever G Adventures wins an award.

Poon Tip’s approach wouldn’t work for many organizations, but a growing number of companies are reimagining their HR structures along with who executes their people strategies. Almost 45 percent of organizations indicated that they will change their HR structure by the end of 2013, according to Towers Watson & Co.’s 2012 HR Service Delivery Survey, up from 28 percent in the previous year’s survey.

Jac Fitz-enz, founder of the consulting firm Human Capital Source, says it’s time for the C-suite to forget tradition. Organizations should pull apart HR departments and place pieces where they fit naturally. “We have patched together a function that isn’t working very well,” Fitz-enz says.

If it’s the sunset of HR as we know it, the new era’s dawn can’t come soon enough for Robert Bolton, a partner in KPMG’s HR Transformation Center of Excellence. The field has “relentlessly pursued best practices and generic models” with a blind eye to business strategies or even industries. “If people are significant for your organization in relation to achieving a competitive advantage, and if you are trying to steal a march on your competition, then that calls for a differentiated HR function, not one that looks like everybody else’s,” Bolton says. This never-ending chase of best practices and copycat models has put HR in a “doom cycle,” he says. “To my mind,” he says, “HR has got to break out of that or die.”

Deerfield, Illinois-based Beam Inc. might be a bellwether of how larger organizations can branch out. The maker of Pinnacle vodka and Maker’s Mark bourbon is midway through reinventing its approach to HR and talent management, a process that began 18 months ago.

In October 2011, Beam became a stand-alone spirits company after Fortune Brands Inc. split up its three enterprises. Fortune Brands sold its golf business, best known for its Titleist golf balls. It then spun off Fortune Brands Home & Security, whose brands include Moen faucets. The remaining business, which includes the Jim Beam whiskey brand, became Beam Inc. It has 3,400 employees.

At the new Beam, executives wanted a culture that encouraged managers to think and act more like entrepreneurs. Based on that concept, they thought about what entrepreneurs do.

“If I’m an entrepreneur running a small business, the first thing I don’t do is go out and hire an HR person,” says Steve Molony, Beam’s director of people strategy and solutions. “If I’m starting a small business, I should be making all these decisions. Big companies get bloated with bureaucracies and these big, huge back offices that remove the business leaders from making some of these decisions. We wanted to reverse that trend when we were still lean and nimble enough to do this.”

Beam hopes to nurture what Molony calls “holistic managers,” who take on deeper HR responsibilities. “That means they don’t just have their job of operational and financial management of whatever part of the business they’re in,” Molony says. “But their responsibilities are to attract, develop, retain and compensate the people on their team, which are traditional HR roles that would have been done by centralized HR teams.”

Take plant managers. In the past, they would tell HR what role needed to be filled, wait for a list of candidates and then be told the new hire’s start date after making the selection.

In the future, plant managers first will decide whether the job is necessary. If it is, they next would decide whether they have an internal successor or need to look outside. They also would look at market data about salaries, negotiate the pay and onboard the new hire.

The change isn’t happening overnight. It requires training, such as helping managers and other leaders understand what would happen if they paid everyone at the 75th percentile of the market, for example. And they won’t be without help from seasoned HR professionals—just fewer of them.

As part of its transformation, Beam is centralizing its disparate HR departments.

 

It has adapted the business-partner model first championed in 1997 by Dave Ulrich, a business professor at the University of Michigan. His model rests on three pillars: a shared service center, whose centralized staff handles administrative and transactional tasks; centers of excellence, which offer specialized consultants on topics such as training or labor relations; and business partners who advise business-unit leaders on talent strategy such as succession plans.

Beam didn’t adopt Ulrich’s framework wholesale. Its tailored tactic lets the company have a leaner business-services staff and fewer HR business partners, Molony says. In the traditional framework, those HR practitioners would have handled many of the activities Beam envisions managers taking on.

The goal: Develop a better caliber of business leaders that will help Beam outperform its competition. It’s not an HR cost-cutting exercise, Molony says. “We feel like if we give our business leaders these skills, it will differentiate us in the market,” he says.

IN DEFENSE OF HR

The goal of HR leaders becoming business leaders and front-line supervisors taking on more HR-like work remains an aspiration, not a reality, particularly for small to midsize employers. “The HR people are absolutely drowning in many cases in the transactional-type stuff,” says management consultant Susan Heathfield, who covers HR for About.com.

At some companies, talent leaders see the potential for other departments to take over aspects of HR. At digital advertising agency Razorfish, Anthony Onesto, director of technology talent development, has asked his recruiting and marketing teams to get together so they work more closely and think about recruiting as a marketing effort. He acknowledges that recruiting likely will not become part of the marketing department, but he also thinks that much of what an HR department does could be done elsewhere.

“This HR group could be dissolved, and folks could be handed some of the responsibilities, and I think we would be OK,” says Onesto, emphasizing it’s a theory, not a plan. But if it happened? “There would be no need for someone like me,” he says. “I would have to reinvent myself. I’ve done it” before.

Other companies already rely on managers to lead aspects of what an HR department does elsewhere. The Container Store Inc., a Coppell, Texas-based retailer with 58 locations nationwide, holds store managers responsible for career development and employee morale, says Eva Gordon, vice president of stores. The Container Store also is famous for its training—263 hours for full-time employees in their first year.

“We hire fantastic people, we train them really well to understand leadership and communication, so who better to manage careers and guide people and answer their questions than their manager?” Gordon says.

Susan Meisinger isn’t so sure. “You can’t tell me there isn’t somebody who is making sure that no matter how they’re doing their talent recruitment, that it is being done in accordance with law and that they’re reaching a pool of candidates who have a higher likelihood of success,” says Meisinger, a consultant who retired as president and CEO of Society of Human Resource Management in 2008. “You can’t tell me there isn’t going to be some consultation going on when there are performance issues, sort of an adviser somewhere in the corporation to help managers improve performance when there are performance issues.”

At Netflix Inc., recruiting largely is considered the responsibility of the hiring manager. The recruiting team handles transactional aspects, and managers determine the market price for salaries through multiple channels, according to spokesman Jonathan Friedland. He declined to elaborate or comment further.

The video-streaming company raised eyebrows in 2011 when it sought a new HR director. Netflix specified that it wanted someone who “thinks business first, customer second, team and talent third” and did not want “a change agent, an OD practitioner, a SHRM certificate, a people person.”

FRUSTRATIONS WITH THE FIELD

Some observers saw the job posting as a reflection of the C-suite’s frustration with the HR field, which struggles to shed its image as little more than open-enrollment gurus and rule enforcers.

“HR has been for many years scoring on its own score card,” says Dick Beatty, professor of human resource management at Rutgers University.

A recent study suggests Beatty’s right. “Help people grow” was the No. 1 reason HR leaders cited for entering the profession, according the New Talent Management Network, a group of HR professionals started by Avon Products Inc.’s former vice president of global talent management.

“It’s lovely to talk about ‘business partner’ and ‘seat at the table,’ but the challenge for HR leaders is: Do they understand what’s being served at that table?” says Marc Effron, president of the consulting firm The Talent Strategy Group and founder of the network. “It’s a business meal. It’s not an HR meal.”

This gap may explain why CEOs rank talent as a top priority but don’t mention the HR function.

For example, Irv Rothman, president and CEO of HP Financial Services, a wholly owned subsidiary of the Hewlett-Packard Co., keeps talent management as a standing item on his executive team’s agenda. But he doesn’t see it as something the HR department should lead.

“It’s not an HR process,” Rothman says. “It’s a business process because it’s the business that sees people in action. HR has a role. They have a role in creating the environment and creating the infrastructure. For HR

to conduct talent management to me seems a little … I don’t know.”

In his book, Out-Executing the Competition, Rothman recommends that no CEO delegate the cultural implications of a merger to the HR department, which he describes as good at such things as benefits. “If the HR department is delivering that message and achieving that visibility, it’s not the inspirational leadership that people are looking for i

n the aftermath of a merger when just about everybody is as nervous as cat in a roomful of rocking chairs,” Rothman tells Workforce.

Survey after survey continues to find that HR leaders are

viewed as low status and better at transactional tasks than strategic planning. “If we’re doing our job well, people don’t say those things,” Effron says. “It’s very easy for HR to whine that people don’t respect us, but people respect those who deliver results.” The solution? Attract a fresh pool of talent into the field that understands business and wants to maximize profits, Effron says. “In many ways, it’s not: ‘Can we teach those in the field to do it better?’—it’s: ‘Can we get different people in the field who truly understand what it takes to succeed in this area?’ ” he says.

During the recession, many global organizations learned that they could do more with less if they had flatter HR departments, fewer job grades and health plans, and used more self-service tools, says Harry Osle, The Hackett Group’s global HR transformation and advisory practice leader.

The result: Leaner HR departments that add more value for every dollar spent than their peer groups and run by professionals skilled in analytics and consulting. “HR organizations in the future are going to be a lot thinner,” Osle says, “but they’re not going to disappear.”

Meisinger, the former SHRM president, says HR departments historically have become leaner during economic downturns. It’s more efficient to have managers do a better job of managing than wait for people problems to emerge and be pushed over to HR.

But even companies that boast that they have no HR department retain someone with HR expertise to help guide recruitment and talent management, she argues.

Still, technological advances will continue to transform the field. Companies have “dramatically” more self-service tools available now than they did 10 years ago, Meisinger says.

“That’s freeing up HR to focus on what it should be: getting in the right talent and making sure they’re developed appropriately and looking at the strategy of the business—where is the business going and what are the talent needs?” Meisinger says. “There are a lot of folks in HR who grew up in the transactional world who aren’t equipped to operate in the strategic world.”

THE BOTTOM LINES

  • Forward-looking companies use more technology and accomp
    lish more with fewer HR professionals.
  • 

  • Line managers and other functions are taking on responsibilities historically handled by HR departments.
  • 

  • HR leaders, expected to serve more as consultants, will need more business acumen and less traditional HR experience than their predecessors.

Source: http://www.workforce.com/article/20130405/NEWS02/130329989/is-hr-at-its-breaking-point

 

 

 

The Role of Social Media in Recruitment

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It’s been said for some time now that a key component of any job hunt is getting the social media side of things done well. This includes making

sure your LinkedIn profile is up to date, writing a blog and generally getting your name out there online.

I still have my doubts about how potent this approach is, especially for positions that job hunters actively apply for. I suspect that when agents and recruiting managers have a CV to consume they lack the time or inclination to do much research on their interviewees via social media.

New research from North Carolina State University reveals that social networking is incredibly valuable at finding new jobs for people who aren’t necessarily looking for one, which is referred to in the study as ‘informal recruitment’.

This study found that over 1 in 4 of all jobs filled in the US were done so via this form of informal recruitment. Perhaps the most interesting finding is that this ratio increases significantly as the salary of the position rises. In other words, the higher the salary is at stake, the

more likely the position is to be filled informally.

The researchers have broken this down into a ratio. They found that the odds of a job being filled by social networks increased by 2% for every dollar paid per hour for the position being filled.

To put that into perspective, a job paying $100,000 a year is 86% more likely to be filled informally than a minimum wage job paying $14,500 a year.

Of course you will be rightly saying that personal networks have always been valuable. After all, the saying “it’s not what you know, but who you know” wasn’t coined at the dawn of the social media age.

It does serve to reinforce the importance of making sure that plenty of people are well aware of your skills and experience, and networking online is a fantastic way of doing that. So if you’re not currently building up your personal brand, be it offline or online, there’s never been a better time to start than now.

Adi Gaskell is a social media professional and management blogger for Professional Manager.

5 Best Practices for a Successful Payroll System

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35% percent of the average HR department’s time is spent on payroll alone (Sage). In order to maximize the efficiency of your payroll system and prevent errors, you need to follow these best practices for managing your payroll system.

1.      Make Your System Transparent

One of the easiest ways to prevent accidental time theft, mis-classification of employees, underpaid taxes, and other common payroll issues is to produce a pay policy and put it in writing. Post it prominently and provide a copy to every employee.

The policy should lay out:

  • How employees are classified. Wrongly classifying employees as exempt, nonexempt, or contract can put you in violation of the Fair Labor Standards Act and place you at risk of a lawsuit or audit.
  • How wages, salaries, promotions, and raises are calculated; how the pay process works; when changes to payroll go into effect;  nd how the company deals with payroll mistakes.

2.      Avoid Manual Processes

Are you still calculating payroll by hand or in an Excel spreadsheet? The American Payroll Association estimates that error rates from manual payroll processes can cost you 1% – 8% of your total payroll. The more youautomate your payroll system with a payroll services provider or payroll software program, the fewer errors you will have to pay for out of pocket.

  • Simple ledger mistakes are frequent in manual systems due to its reliance on humans to transcribe hours and calculate wages. These systems are also easy for employees to manipulate.

3.      Regularly Audit Your Processes

Whether you utilize a manual timecard system or one that is computerized, you should audit your processes at least once a year. Even automated systems can produce errors. If these are not caught in time, they can wind up costing you. You may overpay an employee due to a math error, incorrectly classify a new employee’s tax status, or fail to increase the pay rate of an employee who was promised a raise.

4.      Prevent Time Theft

Time theft occurs when employees intentionally mis-record their hours, take overly long breaks, spend work hours on non-work-related activities, or use “buddy punching” to check in when they aren’t present.

  • Implement a check-in system that automatically records an employee’s hours when they sign in or swipe their card. You can further decrease fraud by utilizing biometric sign-in hardware such as a fingerprint scanner.

5.      Stay Up-to-Date

IRS tax tables and Federal and state labor regulations change from year to year. It is important that your knowledge of these regulations is current. You can download the latest tax tables from the IRS website. If you use payroll software, make sure that it automatically updates each year so as to keep you in compliance.

  • Pay particular attention to changes in regulations governing: income tax withholding, state unemployment taxes, child support withholding, and fringe benefit calculation and taxation.

The best practices for business payroll center around preventing errors and fraud that are commonly found in manual payroll processes. Transferring your payroll to a specialized software system or third-party administrator can keep your payroll in better shape. Whether or not you choose to go this route with your payroll, make sure that your process is transparent, that you audit it regularly, and that you keep it current with state and federal labor laws.

Bio: An avid business blogger, Megan Webb-Morgan writes for online lead generation provider Resource Nation. You can follow Resource Nation on Facebook and Twitter to get the latest business news and expert advice.

Payroll

In a company, payroll is the sum of all financial records of salaries, wages, bonuses and deductions.

Paycheck

A paycheck is traditionally a paper document issued by an employer to pay an employee for services rendered. In recent times, the physical paycheck has been increasingly replaced by electronic direct deposit to bank accounts.

In most countries with a developed wire transfer system, using a physical check for paying wages and salaries has been uncommon for the past several decades. However, vocabulary referring to the figurative “paycheck” does exist in some languages, like German (Gehaltsscheck), partially due to the influence of US popular media, but this commonly refers to a payslip or stub rather than an actual check. Some company payrolls have eliminated both the paper check and stub, in which case an electronic image of the stub is available on an Internet website.

Pay Slip

A pay stub, paystub, pay slip, pay advice, or sometimes paycheck stub, is a document an employee receives either as a notice that the direct deposit transaction has gone through, or as part of their paycheck. It will typically detail the gross income and all taxes and any other deductions such as retirement plan contributions, insurances, garnishments, or charitable contributions taken out of the gross amount to arrive at the final net amount of the pay, also including the year to date totals in some circumstances.

How Do I Choose the Best Human Resources Careers?

Human resources careers cover a wide range of jobs, ranging from payroll officer to labor relationship management. Human resources is a term used to describe the employment related aspects of every business or organization. A typical type of human resources department is one that is centralized.

In a centralized human resources department, human resources staff is the single point of contact for all existing and potential staff. Employees are contacted to discuss payroll, employment issues, staff discipline, benefits, and related matters. The different positions all have different responsibilities, providing opportunities for a breadth of human resources careers.

To determine what are the best human resources careers, consideration must be given to individual strengths and interests. The most satisfying positions are closely aligned with individual goals and personality. For example, someone who is naturally outgoing will be much more successful and satisfied in a front line position than someone who is introverted.

There are three primary types of human resources careers: client services, operational management, and strategic leadership. Client services positions involve a great deal of interaction with staff. Positions in this category include front line customer service, payroll, and human resources officer. People who are happiest in these positions enjoy working with others, are not interested in pursuing additional education, and are task-oriented.

Operational management positions require more education and training. These positions are responsible for resolving staff conflicts, implementing policies, negotiating contracts with staff, and advising supervisor how to resolve issues appropriately. People who are happiest in these positions enjoy writing and reading. Analytical thoughts and policy considerations are a large part of their day and they are excellent communicators.

Strategic leadership positions include human resources generalists, labor relations staff, and senior management positions. In these positions, there is a greater level of education required. The commitment expectation is markedly higher than in other human resources careers. Staffs in these roles are expected to be subject matter experts, able to diffuse issues and problems, and create solutions that address both current and future issues.

The best human resources careers are ones that provide opportunities to use your strengths while encouraging growth. A career is something that grows and changes over time, as skill sets, interests, and dedication fluctuates over time. Initial positions may require minimal education and be task-oriented. Additional room to grow is essential to maintain interest and enthusiasm. The average working life is 40 years. Find careers that meet your current plans, while providing multiple opportunities for growth and expansion in both salary and skills.

 

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