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INTRODUCTION TO THE TOPIC

In every organization the HR has a crucial role in building the organizational culture and also molding the ethical character of the workforce. Though the role of HR is evolving and assuming more strategic significance it is still widely recognized as the policing arm of the executive management. The HR has responsibility for all the functions that deal with the needs and activities of the employees. Hiring, training, leadership development, performance management, person new policy framework, salary and benefit programmes all come under the purview of the HR. Its overbearing presence has tremendous influence on the workforce. Therefore organizational culture that supports and encourages ethical behavior depends to a great extent on the even handedness of HR systems. The Society of Human Resource Management defines a "best practice" in HR as a particular method, approach, or practice of managing people, which has a positive impact on a company's overall business performance by improving employee satisfaction, customer satisfaction, and also the bottom-line business performance. Best practice is a difficult concept to define because it depends on many variables. These practices are not limited to what is accomplished, within what framework, within what environment and under what economic conditions. Studies have identified the major categories for best HR practices as:

Management Practices; Selection and Placement; Training and Development; Compensation and Benefits; Employee Relations and; Health/Safety Security.

HR and Strategic Planning

The strategic level contribution of HR is defined as the overall and coherent long term planning and shorter term management control and monitoring of an organizations human
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resources so as to gain from them the maximum added value and to best position them to achieve the organizations corporate goals and mission. A Strategic HR Plan enables organizations to align resources to corporate strategy. It provides information on how the HR functions will support the goals and strategies of the organization and ensure that HR planning and practices are consistent across the organization. It outlines how the gaps between future and present capability will be addressed. The strategic HR plan supports and is aligned to the corporate mission, vision, values and strategies. It is an essential planning document. It is important that the strategic HR plan is developed only after a clear direction is established and understood.

HR and Performance Management System

The HR function is increasingly important in shaping the new organization in which the quality and commitment of people is key to survival. Employees at all levels experience a need to know clearly what they should be doing and what is expected of them in terms of quantity and quality of output. Performance appraisal should lead to identification of training and development needs. It also creates a new basis for improvement and development. Performance Management System provides some of the essential components of effective motivational strategies. In particular feedback that permits an employee to learn how well he or she is performing. Performance Management System provides relevant information required for validating selection methods. The performance management process is the sequence of actions supervisors take when interacting with employees about their job performance and includes:

Determining the key elements of the job, Developing performance expectations, Providing and interim review of job performance, and Providing an annual performance appraisal. Interaction between supervisor and employee is required at each step of the process.
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HR and Training
Training is defined as a planned process to modify the attitude, knowledge or skill behavior through learning experience to achieve effective performance in an activity or range of activities. Its purpose is to develop the abilities of the individual and satisfy the current and future needs of the organization. The competitive edge will be maintained by those organizations, which use their workforce more efficiently. From this it follows that effective training is paramount for survival and growth. Many organizations communicate their training and development goals and initiatives. Within a training and development plan, the following components are taken into consideration: Mission statement Stated goals and objectives of the training function Training strategy of the organization Yearly training initiatives

Benefits from training:

reater productivity and better quality G Better job satisfaction (as evidenced by lower absenteeism and lower turnover) and greater motivation Greater versatility of workforce Reduced need for supervision Greater understanding and thereby adherence to company values Reduced accident rates Development of more confident and competent workforce

Linking HRM Practices and HRM outcomes

Selection Socialization ------------Skills and Ability Training and development (Quality)
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Quality Improvement Programmes Single status Job security ------------Effort/motivation Internal promotion (Commitment) Individualized reward systems Communication Employee Involvement -------------Role structure and perception Team working (Flexibility) Job design $ job descriptions

Nine Basic Elements of Human Resource Practices

Planning and Appraisal: How an organization sets goals, plans performance, provides ongoing coaching, and evaluates performance of employees (individuals and/or teams). Individual and Team Development: How an organization identifies the needs for employee skill development, education, and growth and how they meet those needs. Career Planning: How an organization strives to help employees to learn their strengths and to match these strengths, aptitudes, preferences, and abilities to future work.

Hiring: How an organization defines and fills positions and roles with qualified people from within and/or outside the organization; how an organization orients these new employees.

Career Pathing: How an organization (for key positions and roles) determines the logical progression of jobs, roles, assignments, and development to provide a sufficient pool of qualified candidates and incumbents.

Succession Planning: How an organization systematically identifies key roles and positions determines performance requirements and targets a group of people to fill these positions and roles in the future.

Job Design: How an organization determines the best methods for accomplishing a work product or result. The two major types are the individual job and the team. Classification: The systematic process for evaluating the size and appropriate salary ranges for different jobs and roles in an organization. Compensation/Recognition/Other Rewards: How an organization pays and rewards employees (individuals and/or teams), through salary, bonuses, benefits and/or nonfinancial rewards The initial impact of HR practices on employees commitment to the organization begins with selection and staffing. When firms invest in selecting the most highly skilled people, and providing them with increased skills through continuous training and development opportunities, employees find a workplace filled with well qualified co-workers. This makes for a positive work environment by enabling them to focus on serving their own customers successfully, doing their own job well and not having to constantly clean up the mess of other co-workers. Additionally, by using valid performance management systems and monetary incentives to elicit high performance, employees can see a more direct line of sight between their behavior and their personal outcomes. This creates a positive work environment where individuals feel fairly and equitably rewarded for their efforts. Finally, having open communications and participatory systems enables employees to both understand the organizations competitive position and be able to participate in processes to help improve it. This creates a positive work environment where people feel they are listened to and respected. An environment created by the systems discussed above is one where people are unlikely to want to leave; they identify with the organization personally and want to see it succeed. This describes the construct of organizational commitment.

The three broad perspectives on the ways that HR practice contributes to business performance: 1) "Best Practice" a set of HR practices can be identified, that, when implemented, will improve business performance.

2) "Contingency" business performance will be improved when the best "fit" between business strategy and HR practices is achieved. 3) "Bundles" specific bundles of HR practices can be identified that will generate higher performance in organizations; the most effective composition of these "bundles" will vary in different organizational contexts. Seven characteristics that identifies as the core practices that "characterize most if not all systems producing profits through people". These seven characteristics are: An emphasis on providing employment security The use of self managed teams Decentralization of decision making; and extensive training Selective hiring of new personnel reduced status distinctions and barriers Extensive provision of training Compensation linked to performance. HR practices have a direct impact on employee skills, motivation, job design and work structures. These variables elicit certain levels of creativity, productivity and discretionary effort, which subsequently translate into improved operating performance. This has an impact on profitability and growth, which in turn have a direct impact on the firms market valuation.

Employee outcomes deal with the consequences of the practices on employees such as their attitudes and behavior, particularly behaviors such as absenteeism and turnover. Organizational outcomes focus on more operational measures of performance such as productivity, quality, and shrinkage, many or all of which would be precursors to profitability.

HR practices are an important tool for organization profitability and productivity.

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The initial impact of the HR practices on employees commitment to the organization begins with selection and staffing. When firms invest in selecting the most highly skilled people, and providing them with increased skills through continuous training and development opportunities, employees find a workplace filled with well-qualified co-workers. This makes for a positive work environment by enabling them to focus on successfully serving their own customers and doing their own job well, and not having to constantly clean up other co-workers messes.

An environment created by the systems is one in which people are highly unlikely to want to leave. They personally identify with the organization, and want to see it succeed. This describes the construct important lever driving this type of attitude profitability. Employees who are committed to an organization should be motivated to (a) Exhibit higher quality in-role behaviors, (b) Exhibit a greater volume of positive extra-role behaviors, and (c) Engage in less counterproductive behavior relative to those who are not committed. These role behaviors likely impact a number of operational performance measures. For instance, committed employees following safety rules (in-role) are less likely to be injured and are unlikely to either exploit minor injuries or make spurious or fictitious injury claims (counterproductive) compensation claims for the business. resulting in fewer workers

Businesses with committed employees

experience higher productivity as their

employees seek to better execute required behaviors, go beyond the job to devise more efficient ways of working (extra-role), and are not likely to shirk or free-ride (counterproductive). Todays innovative companies are replacing independence with integration, transforming best-effort mentalities into a truly results-driven culture and using performance management to effectively reward high performers and directly target poor performers for improvement or termination.

Organizational culture supporting HR practices:

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Communication: the openness and effectiveness of communication systems within and between levels. e.g. Important information is often not communicated to people. Performance feedback: the extent to which information about job performance is fed back to employees. e.g. People usually receive feedback on the quality of work they have done. Concern for employee welfare: the extent to which employees feel valued and trusted. e.g. This Company is considerate towards its employees. Supervisory support: the extent to which employees experience support and understanding from their immediate supervisor or manager e.g. Supervisors show an understanding of the people who work for them. Formalization: the degree to which rules and formal procedures govern the way things are done e.g. Everything has to be done according to the book. Autonomy: the degree of freedom employees are given to do their jobs without Consultation. e.g. People are given adequate scope to do their jobs properly. Quality: the level of importance placed on producing quality products and services e.g. Quality is taken very seriously here. Effort: the degree of effort and enthusiasm employees put into their work. e.g. People are prepared to make a special effort to do a good job. Pressure: the extent to which there is pressure on employees to produce. e.g. People here are under pressure to meet targets.
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Vision: the extent to which employees understand the company vision and long-term aims. e.g. People have a good understanding of what the organization is trying to do. Efficiency: the degree of importance placed on efficiency and productivity at work. e.g. Poor scheduling and planning often results in targets not being met. Tradition: the extent to which traditional, established ways of doing things are valued e.g. The way this organization does things has never changed very much. Innovation: the level of interest in new ideas and innovative approaches e.g. There is a lot of support for new ideas here. Flexibility: the extent to which the company can adapt to change e.g. Management here is quick to spot the need to do things differently. Skill Development: the extent to which employees are encouraged and supported in learning job-relevant skills e.g. People are strongly encouraged to develop their skills. Outward focus: the degree to which management looks outside for market opportunities and the degree of importance placed on providing a high level of service for the customer e.g. This organization is quite inward looking; it does not concern it with what is happening in the market place. Reviewing objectives: the extent to which organizational members take action in changing objectives, strategies or team processes in order to achieve successful outcomes e.g. In this organization, time is taken to review organizational objectives

Dimensions of HR practices for evaluating organization performance

Selection and recruitment
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Induction Training Appraisal Skill flexibility Job variety Job responsibility Team working Communication Quality improvement teams Harmonization Comparative pay Incentive compensation systems

PERFORMANCE IMPROVEMENT PROCESS FOLLOWED IN THE ORGANISATION

I. Informal Communication Coaching and Counseling Step 1: Identify Areas of Improvement Determine the specific areas that the employee needs to improve. Be specific and be prepared. For example, does the employee need improvement in the area of knowledge of the job, required skills, ability or behavior to successfully perform the job? Also dont lose sight of the areas in which the employee is performing successfully. This can be used as encouragement for the employee and identifies strengths to build on the employees weaknesses. It also provides a more well-rounded view of the employees performance.

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Step 2: Informal Communication Process Identify the expectations of the position and discuss with the employee the issues that are cause for concern. Also discuss what is needed to improve the employees performance and any extenuating circumstances, such as training and development, family issues, interpersonal work relationships, etc. Identify available resources to assist the employee: Human Resource Development IMPACT Employee Assistance Program and Work / Life Program Employee Relations

Together develop a written Action Plan, that includes the: Performance improvement needs, Performance expectations, Evaluation measures, Training and Development requirements and available resources, Timeline for improvement and Date and Time for follow up meeting.

The action plan is documented, signed and dated by both the supervisor and the employee. Throughout this period provide verbal feedback to the employee praising success but also identifying situations and suggesting how they could have been handled differently for a more successful resolution.

Step 3: Follow Up Meeting

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Review the employees performance over the review period. Again identify successful performance and areas that may still need improvement. Be specific and honest. Ask the employees opinion of his/her performance and if there are any other methods, resources that will be helpful to the employees performance.

II. Formal Communication (Discipline Process) If the Informal Communication Process has not resulted in improved performance that meets performance expectations and achieved satisfactory performance measures, the Formal Communication Process is implemented. This is the beginning of the formal discipline process. Step 1: Verbal Warning The verbal warning identifies the performance issues that have not been brought up to the appropriate level and the employee is notified that: 1 2
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this is a verbal warning; he or she will be subject to the formal disciplinary process; and His/her job may be in jeopardy if performance does not improve

by a specific date. The verbal warning is documented and retained in the supervisors file. Step 2: Written Warning Performance is identified that has not improved within the appropriate time frame or the employee has not followed through with the training and development or the assistance counseling in an effort to improve performance. The written warning is documented, dated, signed by both the supervisor and the employee and retained in both the supervisors and employees file. If the employee declines to sign the warning, the supervisor should indicate that the employee has refused to sign.

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Contact Human Resources, Employee Relations and Development, for assistance in writing the written warning. A pre-disciplinary hearing may be requested for classified employees. This process may result in a job reassignment, suspension (classified), paid or unpaid leave, termination for cause or notification of the end of an appointment (unclassified).

Theoretical Framework for Human Resource Management MANAGERIAL

COMPETENCIES HR Professional Competence Business -related Intervening variable ORGANIZATIONAL CONTEXT VARIABLES Strategic 14 Firm size ORGANIZATIONAL Human Resource Level of Technology Practices Union CoveragePERFORMANCE

Technical

Independent Variables Variable

Dependent

Moderating variables

WHAT IS "BEST PRACTICE" IN HR?

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There is no single best practice to which all organizations should aspire. Each firm has a distinctive HR system that represents a core competencies required for the survival and sustainability for that particular organization. "Best practices" in HR are subjective and transitory. What is best for one company may not be best for another. What was best last month may not be best for today. The concept of "best" is highly subjective and non-specific. "Best practice" is not a set of discrete actions but rather a cohesive and holistic approach to organizational management. However some factors which constitute best practices in HR are: Communications: The "best practice" companies have the most intense communications which are broad-based, continuous and involve multi-directional employee contact. Communications with employees is "a given" and is a formal, focused and on-going responsibility. Communications are not done as an "extra". Continuous Improvement: The best companies are never satisfied. They focus not only getting it right but doing it better. They are intensely dependent on feedback from all sources as the prime basis of their continuous improvement philosophy. Culture Consciousness: The best companies are all sharply focused on their culture and are conscious of how culture shapes systems and behavior. Customer Focus & Partnering: In the best companies, customer focus is proactive and not reactive. They are out in the market-place to anticipate changing customer needs and to build on relationships on a faceto-face basis. They get totally focused on the customer and think and talk business rather than HR. Interdependence: Many organizations are a conglomeration of fiefdoms with each department "protecting its own turf". Commonly, these organizations have a "silo mentality". By contrast, the best companies make a conscious and deliberate effort to add to and reinforce each others contribution. This encourages openness and trust that are essential for effective teamwork. There is constant cross-functional cooperation and communication.

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Value Focus: Focus on values must be looked at from two perspectives: Value-Added and Values-Driven. Value-Added means a sharp and constant effort on adding to the bottom line. When changing a HR policy, practice or process the companies should ask questions such as "What difference does this make, ultimately, to the customer? Will it mean that the company can get a product out, or provide a service, better, cheaper and faster? Will it serve our customers better? How will our customers benefit?" If its not ultimately valuable to the customer, then it is not valuable to the company. Values-Driven means that everything the company does is motivated by a set of values and qualities that asks questions such as "What are we here for? How do we treat our employees? How do we relate to our customers?" Companies should ask these questions as part of their conscious operating philosophy and not assume in the subconscious that this thinking is pervasive throughout the organization.

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INTRODUCTION OF THE COMPANY

Hero Honda Motors Limited, based in Delhi, India, is the world's largest manufacturer of motorcycles. Hero Honda is a joint venture that began in 1984 between the Hero Group of India and Honda of Japan. It has been the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year. Hero Honda's Splendor is the world's largest selling motorcycle. Its 2 plants are in Dharuhera and Gurgaon, both in India. Third plant at Haridwar, Uttranchal is also under commissioning stage & will start production by April, 2008. It will have world class production facilities like Lean Manufacturing concept, more flexible lines & Stream line material flow, within & proximity (Planning to set vendors in nearby locating constituting HHML Park). It specializes in dual use motorcycles that are low powered but very fuel efficient

COMPANY PROFILE
Hero is the brand name used by the Munjal brothers in the year 1956 with the flagship company Hero Cycles. The two-wheeler manufacturing business of bicycle components had originally started in the 1940s and turned into the worlds largest bicycle manufacturer today. Hero is a name synonymous with two-wheelers in India today. The Munjals roll their own steel, make freewheels and other critical bicycle components and have diversified into different ventures like product design. The Hero Group philosophy is: To provide excellent transportation to the common man at easily affordable prices and to provide total satisfaction in all its spheres of activity. In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of Hero Honda Motors (HHM), headed an alliance between the Munjal family and Honda Motor Company Ltd. (HMC). This alliance became one of the most successful joint ventures in India, until the year 1999 when HMC had announced a 100% subsidiary, Honda Motorcycle & Scooter India (HMSI). This announcement caused the HHM stock price to
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decrease by 30 percent that same day. Munjal had to come up with some new strategic decisions as HMSI and other foreign new entry companies were causing increased intensity of rivalry for HHML.

GROWTH
Hero Honda experienced great growth throughout its early days. The Munjal family started a modest business of bicycle components. By 2002 Hero Group had sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of nine different models of motorcycles available. It holds the record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 million bikes in the year 20052006. Recently it has also entered in scooter manufacturing, with its model PLEASURE mainly aimed at girls. HUNK is the latest offering from the HHML stable

Just-in-Time Manufacturing
The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-time manufacturing. The Group boasts of superb operational efficiencies. Every assembly line worker operates two machines simultaneously to save time and improve productivity. The fact that most of the machines are either developed or fabricated inhouse, has resulted in low inventory levels.

Labor relations

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In Hero Group there is no organized labor union and family members of employees find ready employment within Hero. The philosophy with regard to labor management is "Hero is growing, grow with Hero." Hero workers receive a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits include medical checkups not just for workers, but also for the immediate family members. For the majority of the production workers, who are hired through contractors, these benefits are out of reach. This and other problems lead to a strike and factory occupation by 4,000 temp workers in the Gurgaon plant in spring 2006.

HERO HONDA'S MISSION

Hero Hondas mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders.

HERO HONDA'S MANDATE

Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status.

Human Resources Best Practice

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Hero Honda seeks to promote the development, implementation and sharing of good practice to improve service delivery to users. It supports members in planning for future service needs by identifying trends and issues for information services such as personalization, collaboration, space, management and skills. Any organizations success will depend largely on whether its employees perform well. It is recognized that library and information services exist, in the main, as part of a larger organization that will have its own human resource management policies and practices. Hero Honda members have responsibility to work with human resource practitioners to understand and shape policies and practices, and adapt specific human resource management interventions to suit the organizational culture.

Strategies to improve the performance of the organization

1. Business Strategy 2. Learning and development strategy 3. People management strategy 4. Leadership and management strategy

Action to improve the performance of an organization

5. Management effectiveness 6. Recognition and reward 7. Involvement and empowerment 8. Learning and development

Evaluation of the impact on the performance of the organization

9. Performance measurement 10. Continuous improvement

Recruitment practices that result in the selection of excellent staff

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 Accurate advertisements, job/role descriptions and person specifications and context information Appropriate selection tools and mechanisms Timely hiring Well planned induction

Viable and attractive benefits and compensation packages

Equitability of treatment/Relativities between individuals and work groups Appropriate for the market

Employee performance management

Individual staff objectives linked to business plans Regular feedback as well as formal appraisal Up-to-date job descriptions/roles Staff development and training that meets workplace requirements and individual needs; based on competencies required and developmental needs Skills audit/inventory

Workforce continuity and Succession planning

Monitoring of absence and resignation data Monitoring age profiles Appropriate maternity and paternity leave provisions Identification of single person/critical dependencies Knowledge sharing systems Mentoring Shadowing Job rotation Job exchanges Documentation/expert systems Exit interviews and management of knowledge handover

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Conformance with legal obligations

Discrimination Diversity Privacy Health and Safety Freedom of Information Equal Opportunity

Positive workplace culture

Value defined and driven work environment Change orientated, flexible culture Effective communication Plans, policies, guidelines available to all staff Positive encouragement/support for Innovation and continuous quality improvement Recognition and reward systems Engagement with work groups and union representatives Management of major change procedures Monitoring staff satisfaction

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The literature review regarding various HR practices like human resource planning, job analysis, recruitment, selection, placement, socialization, training and development, performance appraisal, compensation and benefits, career management, and other contemporary HR practices (work-life balance, attitude surveys, workforce diversity, and human resource information system) is presented in the following paragraphs. Job analysis is the process of obtaining information about jobs i.e. information about the tasks to be done on the job, as well as personal characteristics (education, experience, specialized training) necessary to do the tasks. Job analysis in many ways is the first personnel activity that affects commitment and performance. The process of analyzing and identifying the need for and availability of human resources for organization to meet its objectives is human resource planning. It ensures that human resource requirements of an organization are identified and plans are made for satisfying those requirements. Recruitment is a form of business competition. It demands serious attention from management because any business strategy will falter without the talent to execute it (Cascio, 2006). It is a process of attracting a pool of high quality applicants so as to select the best out of them. Recruitment and selection occupy attention of employers since these activities involve: (a) addition of manpower and hence (b) additional cost (Prasad, 2005). Top performing companies devote considerable resources and energy to creating high-quality selection systems. The step immediately succeeding the selection is placement. Placement refers to the actual procedure wherein an individual is assigned with a job. It also involves assigning a specific rank and responsibility to an employee. Decision is taken after matching the requirements of a job with the qualifications of a candidate (Jyothi and Venkatesh, 2006). Socialization is the process of orienting new employees to the organization or the unit in which they will be working. Socialization can make the difference between a new workers feeling like an outsider and feeling like the member of the team. A good orientation program can improve productivity and reduce turnover. Companies must develop customer-oriented workforce to deliver service quality. After hiring the right people with the right attitude, companies must train them for the purpose. Service quality is being perceived as a tool to increase value for customer and as a means of positioning in a competitive environment. For providing quality service, employees need ongoing training in the necessary technical skills and knowledge, and interactive skills. Training might take a variety of forms in organizations
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but all must view it as an important investment for future success (Zeithmal and Bitner, 2004). The strategized training provided to employees is a wise investment of organizational resources. Companies need to provide comprehensive training to the agents in the ways to narrow the gap between clients and agents i.e. trust building training. Unlike product knowledge that can be comprehensively taught in lessons, trust-building training is an art and should be learnt through on-the-job training. Performance is defined as the record of outcomes produced on a specified job function or activity during a specified time period. However, appraisals are done once a year and are based on stereotype, perceptual, and subjective judgments of supervisors which make people believe performance appraisal process is unsuccessful. Therefore, effective managers need to incorporate performance review and feedback as part of their day-to-day communications with employees, not just a once-a-year assessment. Employee performance appraisal has been practiced by numerous organizations since centuries. Though performance appraisal system has been debated by many, however, overall, it is viewed that performance appraisal is an inseparable part of organizational life (Islam and Rasad, 2006). Performance management as a complex problem and it involves various kinds of judgments about which performance measure to use. Compensation is all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. An effective set of choices about compensation systems plays a major role in determining firm performance. A fringe benefit is an indirect reward given to an employee or group of employees as a part of organizational membership which affect performance and retention of employees. On account of their enormous costs and the financial commitment which is made for the future, benefits planning has become a critical component of HR planning processes. The application of skill or competence leads to performance and performance is the criterion for evaluating effectiveness. Therefore, a pay-for competence program enhances productivity and product quality, reduces absenteeism, turnover, and accident rates (Jyothi and Venkatesh, 2006).

A Human Resource Information Systems (HRIS) is basically a data base system that offers important information about employees in a central and accessible location that, when needed, could be retrieved and used to facilitate human resources planning decisions. HRIS
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is an integrated system designed for providing information used in HR decision making (Mathis and Jackson, 2004). HRIS information could be used, first, for administrative purposes which reduce costs and time and, second, for the more analytical decision support. A career is a sequence of positions held by a person during the course of a lifetime. It comprises of series of work related activities that provide continuity, order, and meaning to a persons life. Career planning is a deliberate attempt by an individual to become more aware of his or her, own skills, interests, values, opportunities, constraints, choice, and consequence. It involves identifying career-related goals and establishing plans for achieving those goals. Career management includes both organizational actions and individual efforts aimed at setting career goals, formulating and implementing strategies and monitoring the results. Diverse workforce (diversity) refers to the co-existence of people from various socio-cultural backgrounds within the company. Diversity includes cultural factors such as race, gender, age, colour, physical ability, ethnicity, etc... Dynamic companies look for people who are different from us because the diverse workforce may bring different talents, interests, and viewpoints. The basic concept of managing diversity accepts that the workforce consists of a diverse population of people. The companies can succeed at diversity if the initiative to create and manage the diverse workforce has the full support from the top management. Work-life balance is a state where an individual manages real or potential conflict between different demands on his/her time and energy in a way that satisfies his/her needs for well being and self-fulfillment. Work-life balance policies define how the organization intends to allow employees greater flexibility in their working patterns so that they can balance what they do at work with responsibilities and interests they have outside work. Attitude surveys are valuable ways of involving employees by seeking their views on matters that concern them. Attitude surveys can provide information on the preferences of employees, give warning on potential problem areas, diagnose the cause of particular problems, and compare levels of job satisfaction, commitment and morale in different parts of the organization.

WHY HR IS NOW BECOMING INCREASINGLY IMPORTANT?

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Organizations in India have changed significant aspects of their employment policies during the 1990s. The role of trade unions has declined, bargaining about employment conditions and wages has shifted to the enterprise level and increasing numbers of organizations are introducing techniques to communicate directly with their employees. There has been a growth in pay for performance schemes, flexible employment practices, training, performance appraisals and broader job structures. These developments imply an emphasis on improving employee performance while at the same time increasing the flexibility of labor. Recent literature in the late 1990s places strong emphasis on the need for highinvolvement work practices, greater employee participation in decision-making and control over how the work is performed and increased flexibility and actualization of the workforce. In contrast to its traditional emphasis on personnel administration, HRs future role will be supporting a companys competitive advantage by providing high quality people and by helping business managers to strategically plan the functions of those people within the organization. HR must shift from being an administrative support function to becoming a business partner in charting business strategy. This requires transforming the HR function into a strategic business partner that will positively affect a companys earnings in a climate which will become more fiercely competitive for intellectual capital required for corporate sustainability.

MAJOR CHALLENGES FACING INDIAN ORGANIZATIONS

Organizations now need to concentrate more on highly value-added products and services produced by a skilled and motivated workforce. This requires that Indian organizations need to take a more "strategic" approach to HR that will enable them to cope with the challenges resulting from rapid changes in technology and globalization.

HR PRACTICES WHICH ARE CRITICAL TO ECONOMIC SUSTAINABILITY

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Employment security assumes flexibility and means that employees are not quickly laid-off for reasons such as economic downturns or the strategic mistakes of senior management, over which employees have no control. The policy focuses on maintaining total employment and not on protecting individuals from the consequences of their individual behavior or incompetence on the job, Selective hiring of new personnel. Firms need to build long-term commitment to retaining their work force. This can be achieved through more rigorous recruitment and selection and greater investment by firms in training and developing their work force. Many organizations need to change their philosophy to regarding people as assets rather than costs. Employment security policies need to reflect more careful staff selection and leaner hiring. Leaner staffing can result in a more productive work force with fewer people doing the work, increased flexibility and employees working closer to the customer. People are often happy to be more productive if they know they have a secure long-term job with a career. More importantly, firms need to take a long-term strategic view to HR resources rather than a short-term operational costcutting approach.

Self-managed teams and decentralization of decision-making There is considerable literature providing case studies and empirical evidence that workers in self-managed teams enjoy greater autonomy, flexibility and discretion. Employees have more opportunity to use their wider skills. This translates into intrinsic rewards and job satisfaction resulting in teams out-performing traditionally supervised work groups (Pfeffer, 1999). High compensation contingent on organizational performance The level of salaries sends a clear message to the firms work force if they are regarded as truly valued and valuable to the organization. Compensation can take many forms such as pay increases, share ownership, stock options, profit sharing, paying for skills acquisition and individual or team incentives. If compensation takes the form of promotion, it should

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be based on skills and competencies and not on the position which the employee or manager occupies in the hierarchy. When employees are owners, they are more inclined to act and think like owners. Ownership schemes without training, information sharing, and the delegation of responsibility will have little effect on performance because even if people are more motivated by their share ownership, they dont have the skills, information, or power to do anything with that motivation. Paying for skill acquisition encourages people to learn different jobs and thereby become more flexible. In principle, any compensation system should be aligned with organizational strategy. Extensive training and development Training is an essential component of high-performance work systems because these systems rely on front-line employee skill and initiative to identify and resolve problems, to initiate changes in work methods, and to take responsibility for quality. This requires a motivated work force that has the knowledge and capability to perform the core tasks. The fundamental principle of high-performance management systems is that organizations perform at a higher level when they are able to tap the ideas, skill and effort of all of their people. But neither individuals nor teams will be encouraged to contribute their minds and physical energy to the organization unless people receive signals that they are both valued and valuable. In order to help make all organizational members feel important and committed to enhancing organizational operations, therefore, most high-commitment management systems attempt to reduce status distinctions that separate individuals and groups and cause some to feel less valued. This can be accomplished through the use of language and labels, physical space, and dress, and secondly by reducing the organizations degree of wage inequality, particularly across levels. Trust between management and employees at all organizational levels. The first prerequisite of teamwork is trust. The delegation of operating authority and the sharing of
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sensitive performance and strategic information requires trust. It is important that if the work force is to provide quality service to its customers, then they must be given the opportunity to use their ideas, initiative and knowledge. This involves decentralizing decision-making and permitting people at all levels to exercise substantial influence over organizational decisions and processes. All this requires trust that is markedly different from hierarchical organizations where the emphasis is on control. Trust develops as part of the process, as it will rarely be there from the start e.g. the Olympic Games. Faced with the challenge of upgrading employee skills, talents, and leadership capabilities enterprise-wide, companies are using modern technology to support broadly expanded recruitment and training processes. The processes now cover all or most employees, positions in all functions and wherever the company does business, and an escalating array of developmental activities all defined by the human resources competencies that the company needs today and in the years ahead (Nardoni, 1997).

IMPLEMENTING HR PRACTICES AND POLICIES

When implementing HR practices and policies, managers should note that HR practices: Cannot be "copied" from one organization to another. A set of complementary HR practices that have produced increases in productivity, improved quality of service and given a firm a competitive advantage, will not necessarily produce the same, or even similar results in an organization, or part of an organization, operating in the same industry. Are more effective, and can produce a synergistic effect, if they are complementary to each other. For example, self-managed teams being introduced at the same time as team-based or group compensation incentives contingent on organizational performance. Must be congruent to the long-term strategic objectives and mission statement of the organization if they are to yield returns through increased productivity and ultimately improved customer service. If this congruency is absent, then organizational dysfunctions will result and the attempt to introduce progressive HR practices will rapidly lose credibility among the firms employees.

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KEY FINDINGS AND LESSONS LEARNED

The literature refers to some key findings from research and lessons learned. These include the most striking increases in high-involvement work practices are in the use of on-line work teams and off-line problem-solving groups (e.g. Employee Involvement groups, quality circles). Higher levels of managerial tenure had a positive and statistically significant association with greater increases in the use of high-involvement work practices. The introduction of high-involvement work practices requires significant cooperation, trust, and coordination among different functional groups in each plant, which will be more likely to be present if the managers of those groups have greater experience of working together. The adoption of high-involvement work practices tends to follow the adoption of complementary HR practices. This supports the idea that HR practices may be less difficult to adopt, given that they have less impact on how core tasks are organized. However once adopted, HR practices provide a strong incentive for firms to push further in the direction of high-involvement work practices. High-involvement work practices may represent "competence-destroying" change, which is difficult to implement, and may lead to worsened performance in the short-term. Plants that undergo a major disruption in their operations creating opportunity for various organizational changes - were more likely to adopt high-involvement work practices. Manufacturing technology is necessary but insufficient, without work force commitment to performance. Any competitive advantage will not be sustained without a skilled, motivated, and committed management team and work force. Organizations must enhance work force ability to improve productivity. Technology without a talented work force is an opportunity that has not been utilized enough. Without a focused effort to enhance the talents of a changing work force using rapidly advancing technologies, long-term performance will suffer.
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Organizations must enhance work force motivation to improve productivity. Workers must be encouraged and motivated to develop a customer satisfaction mind set. Organizations need to empower their workers by allowing them greater autonomy and control and to design jobs that are more stimulating. Incentive systems can be used to enhance motivation. Organizations must take a multi-faceted and proactive approach to increasing work force motivation. Organizations must enhance work force support to improve productivity. Technology without effective support produces work force frustration, alienation and withdrawal. Without technology, ability, motivation and support, any organization is destined to fail. If managers are not perceived to be credible and supportive of their employees, any attempt to implement high-involvement HR practices will be regarded with cynicism that could lead to frustration and even a loss in productivity.

IMPLICATIONS FOR MANAGERS

Until recently, the employment policies implemented in India throughout the 1990s were mainly geared to the economic requirements of the organization, rather to designing an organization "fit" for individuals. Employees continue to struggle with the experience of ongoing change associated with the introduction of flexible working arrangements and enterprise agreements in a climate of rapid technological change and globalization There is sound evidence indicating that managers or politicians attempting to implement changes in HR practices will experience less resistance to change if they secure the participation of employees and unions. Unions committed to improved performance can play a vital role in implementing change and can facilitate the change process if they are actively involved in the proposed changes to HR practices.

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OBJECTIV E OF THE STUDY

The main objective of the study was to assess the impact of human resource management practices on employee productivity and on organization performance. To achieve the main objective the following sub-objectives were set:

To study how HR practices can improve company performance. To study the relationship between employees attitude and organization performance. To analyze how HR practices make a difference in performance and which of the practices appear most important.

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For our research study we have collected data by the survey in hero Honda motor ltd. The overall strategy of the survey was to derive the data from the questionnaire filled by the employees to analyze the impact of hr practices on their productivity and also on organization performance.

Research design:
Our research is based on Exploratory study

Universe of the study:

Universe for our research study are the employees associated with Hero Honda

Sample:
Employees associated with Hero Honda Motors at Gurgaon were taken as a sample for our research.

Sample size: 100 respondents were taken (employees of Hero Honda Motors ltd).

Sampling method:
The sampling method adopted for our study is Random sampling for the selection of employees and convenience sampling for selection of area of study.

Hypothesis: Ho: The implementation of HR practices is positively related to organizational productivity H1: The implementation of HR practices is not positively related to organizational productivity.

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APPROACH TO THE STUDYBasically we are adopting the questionnaire method for our research project which is more efficient and practical method. We have to select some questions make a questionnaire on the basis of our research report requirement; so that, we can have the better and reliable data and information for our research project.

DATA COLLECTION METHODSThe collected was of 2 types(1) Primary Data (2) Secondary Data

Different methods were used to collect both primary and secondary data.

1. Primary Data CollectionThe method for this category was:a) Questionnaire

2. Secondary Data Collection- methods used wereCollection of information through internet. Study of recent publication of HRD Journal.
a) Reading of H.R. and Administration Manual.

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IMPORTANCE OF STUDY
This study is conducted to answer the following question: What are the various HR practices implemented in the organization? How it influences working condition and influence organization performance? Which of the factors most influence company performance? How companies raise their performance by implementing HR practices? At what level the employees are satisfied with their work? What is the level of satisfaction of employees regarding performance appraisal system? Is the organization providing sufficient training to their employees?

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Q1.Are HR practices an important tool for organization profitability and productivity?

Completely Agreed Are practices important HR 70 an tool

Mostly Agreed 20

Moderately Agreed 10

Mostly Disagreed

Completely Disagreed

for organization profitability and productivity?

Interpretation: 70% of the respondents are completely agreed with the statement that HR
practices are an important tool for organization profitability and productivity and remaining 20% are agreed while 10% are moderately agreed.

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Q2. Does HR play an important role in formulating the business plan in your organization?

Completely Agreed Do HR plays an 90 important role In formulating the business plan in your organization?

Mostly Agreed

Moderately Agreed 10

Mostly Disagreed

Completely Disagreed

Interpretation: HR plays an important role in formulating the business plan says 70% of the
respondents and 10% of them are moderately agreed.

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Q3. Do Business Plans and policies are communicated to employees at all levels?

Completely Agreed Do Plans policies Business 50 and are

Mostly Agreed 30

Moderately Agreed 15

Mostly Disagreed 5

Completely Disagreed

communicated to employees at all levels?

Interpretation: 50% of the employees are completely agreed, 30% of them are agreed,15% are
moderately agreed while 5% are disagreed with the statement that business plans and policies are communicated to employees at all levels.

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Q4. Is Employee Satisfaction Surveys / Work climate study is conducted periodically?

Completely Agreed Is employee 30

Mostly Agreed 50

Moderately Agreed 20

Mostly Disagreed

Completely Disagreed

satisfaction surveys/work climate conducted periodically? is

Interpretation: In hero Honda 30% of the respondents are completely agreed and 70% are
agreed that employee satisfaction survey is conducted periodically.

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Q5. Does Formal system for redressing employee grievances exist?

Completely Agreed Does Formal system employee grievances exist? for redressing 40

Mostly Agreed 42

Moderately Agreed

Mostly Disagreed

Completely Disagreed 18

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Interpretation: 82% of the respondents are agreed with the statement that formal system for
redressing employee grievance exist in the organization while 18% are disagreed.

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Q6. Do induction training is conducted for all of you?

Completely Agreed Do induction training conducted for all your employees? is 60

Mostly Agreed 30

Moderately Agreed

Mostly Disagreed

Completely Disagreed 10

Interpretation: 90% of the respondents say that induction training is conducted for all the
employees in the organization while 10% are disagreed with this.

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Q7.Product knowledge, specific skills training is the areas of training in the induction training program? Completely Agreed Product knowledge, specific skills training is the areas of training in the induction training program? 60 Mostly Agreed 35 Moderately Agreed Mostly Disagreed 5 Completely Disagreed

Interpretation: 95% of the respondents are agreed that in the induction training program
product knowledge and specific skills regarding the job is given while 5% are not agreed.

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Q8. Are you aware of your career path?

Completely Agreed Are you aware 50 of your career path?

Mostly Agreed 30

Moderately Agreed 15

Mostly Disagreed 5

Completely Disagreed

Interpretation: 95% of the employees are aware of their career path while 5% of them are not
aware.

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Q9.Is feedback and mentoring are used for career planning?

Completely Agreed Is feedback and mentoring are used for career planning? 70

Mostly Agreed 20

Moderately Agreed 5

Mostly Disagreed 5

Completely Disagreed

Interpretation: 95% of the respondents are agreed that feedback and mentoring are the tools
used for career planning of the employees in the organization while 5% are not agreed with this response.

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Q10. Is Performance Management System is linked to your compensation and rewards?

Completely Agreed Is performance 70 management system compensation and reward? is linked to your

Mostly Agreed 10

Moderately Agreed 10

Mostly Disagreed 10

Completely Disagreed

Interpretation: 90% of the respondents say that their compensation and reward are based on
performance appraisal system while 10% are not satisfied. Q11.Do you have the opportunity to be promoted to positions of greater pay and/or responsibility within the company? Completely Mostly Moderately Mostly Completely
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Agreed Do you have 50 to of

Agreed 40

Agreed 10

Disagreed

Disagreed

opportunity to be promoted positions responsibilities within company? the

greater pay and

Interpretation: 50% of the respondents are completely agreed and 50% are agreed that the
organization provide them opportunity to be promoted to the position of greater pay and responsibility. Q12. Is the job performance is the criteria for the increment in your pay?

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Completely Agreed Is the job 80

Mostly Agreed 10

Moderately Agreed 10

Mostly Disagreed

Completely Disagreed

performance is the criteria for the increment in your pay?

Interpretation: 100% of the respondents are agreed with the statement that job performance is
the major criteria for increment in the pay.

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HYPOTHESIS:
Organizations can adopt various HRM practices to develop employee skills. The effectiveness of skilled employees and therefore firm performance will be limited if they are not motivated to perform their jobs. When addressing the impact of HRM practices on firm performance it is important to observe that HRM has evolved from two distinct conceptions of the link between employee motivation and firm-level outcomes. There are two distinct approaches to shaping employee attitudes, the control and commitment approaches which are refer to as the calculative and collaborative respectively. The former seeks to improve efficiency by enforcing employee compliance by rewarding on some measurable criteria. In contrast the latter shapes attitudes by forging psychological links between organizational and employee goals Firm performance is dependent on having in place systems for the regular assessment of individual employee. Coupled to and reinforcing these systems are performance rewards and performancerelated training. Significantly employee behavior influence organization performance Employee influence is contingent on there being processes of mutual influence between management and employees that enables management to comprehend employee interests. Without such processes employee intrinsic motivation is undermined thereby giving rise to employee resentment and distrust which results in unwillingness to take responsibility for the performance of the firm. Rather than one single system of employee involvement techniques, such as employee briefings and work system design, be used. On the basis of the above we propose the following two hypotheses:

Ho: The implementation of HR practices is positively related to organizational productivity H1: The implementation of HR practices is not positively related to organizational productivity

Result of data analysis:

Majority of employees are satisfied with the HR practices implemented by the organization. They are motivated to do their work effectively to increase the production and outcome of the organization.

Acceptance of null hypothesis

From the data analysis it is concluded that maximum number of employees are satisfying the null hypothesis i.e. The implementation of HR practices is positively related to organizational

productivity. So our null hypothesis is accepted.

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FINDINGS
These are the findings based upon the replies of the respondents for the HR practices that are being implemented in the company:

HR practices are an important tool for organization profitability and productivity as Employee outcomes deal with the consequences of the practices such as their attitudes and behavior, particularly behaviors such as absenteeism and turnover.(70% of the respondents are completely agreed with this statement )

HR plays an important role in formulating the business plan in organization (90% of the employees are completely agreed )

Business Plans and policies are communicated to employees at all levels so that the employees can understand the organizations competitive position and participate in the processes to improve it. (50% of the employees completely agreed with this statement )

To creates a positive work environment and make people feel that they are respected and listened to, Employee Satisfaction Surveys / Work climate study is conducted Periodically. (50% of the respondents are agreed)

Formal system for redressing employee grievances exist in the organization.(42% of the employees are agreed)

Induction training is conducted for all of the employees whenever needed.(60% of them are completely agreed )

Induction training focuses on giving Product knowledge, and specific skills to the employees (60% of the respondents are completely agreed )

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The employees are aware of their career path( 50% of the replies are completely agreed )

The tools used for career planning are feedback and mentoring.(70% of the respondents are completely agreed to the statement)

The Performance Management System is linked to the employees compensation and rewards (70% are completely agreed)

The employees have the opportunity to be promoted to positions of greater pay and/or responsibility within the company(50% of the employees are completely agreed with this statement and 50% are agreed )

The job performance is the criteria for the increment in the pay of the employees.(80% of the respondents are completely agreed and 20% of them are agreed )

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CONCLUSION

HR practices can improve organizations performance by: o increasing employee skills and abilities o promoting positive attitudes and increasing motivation
o

Providing employees with expanded responsibilities so that they can make full use of their skills and abilities.

HR practices are an important tool for organization profitability and productivity as the initial impact of the HR practices on employees commitment to the organization begins with selection and staffing. When firms invest in selecting the most highly skilled people, and providing them with increased skills through continuous training and development opportunities, employees find a workplace filled with well-qualified co-workers. This makes for a positive work environment by enabling them to focus on successfully serving the customers and doing their job well and this ultimately result in the companys profitability.

HR plays an important role in formulating the business plan in organization as the Organizational outcomes focus on more operational measures of performance such as productivity, quality, and shrinkage, many or all of which would be precursors to profitability.

Having open communications and participatory systems enables employees to both understand the organizations competitive position, and to participate in processes to help improve it. This creates a positive work environment where people feel they are respected and listened to. So the company communicates business Plans and policies to the employees at all levels.

Using valid performance management systems and monetary incentives to elicit high performance, employees can see a more direct line of sight between their behavior and their personal outcomes. This creates a positive work environment where individuals feel fairly and equitably rewarded for their efforts.

workers compensation claims, productivity, quality, and shrinkage all directly impact the costs of an organization, by influencing these variables employee commitment impact operating
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expenses. Profitability is largely determined as the difference between revenues and expenses, leading to the conclusion that if commitment impacts operating performance which in turn impacts expenses, then it subsequently relates to profitability.

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SUGGESTIONS AND RECOMMENDATION

1. Senior managers of the company should regularly review objectives, strategies and processes associated with human resource management practices in their organizations and make changes or introduce innovations accordingly. 2. Senior managers should monitor the satisfaction and commitment of employees on a regular basis using standardized surveys. 3. Senior managers need to monitor employee perceptions of the culture of their organizations, examining areas which contribute towards a people-orientated culture (e.g. the extent, to which employees are enabled, supported and equipped to do their work). 4. HR practices should be reviewed across the organization in the following areas: Recruitment and selection Performance Appraisal Training Reward systems Design of jobs (responsibility and control) Communication. 6. Company should provide adequate training and support to the employees and also check whether employees are able to acquire the given skills. 7. The central element of each organizations philosophy and mission should be a commitment to the skill development, well-being and effectiveness of all employees. 8. HR practitioners must take a leadership role in identifying the people issues and opportunities that the organization face and the specific initiatives that will support the business strategy.

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LIMITATION
Though the data collected is proper but still there were certain limitations which were hindrance in making the data more appropriate. The limitations were:1) Employees were engaged with their shutdown jobs and thus were not very readily

available. This would have hampered the flow of input in someway. 2) As the questionnaire method was followed, people were not very comfortable in releasing the information. 3) Many a time, employees were very reluctant in releasing the information, considering it to be confidential. Thus, it was a hindrance in study.

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63

Completely Agreed 1. Are HR an

Mostly Agreed

Moderately Agreed

Mostly Disagreed

Completely Disagreed

practices for organization profitability and

important tool

productivity?

2.Does HR

play an important role in formulating the business plan in your Organization? 3.Do Business Plans and policies are communicated To employees at all levels? 4.Is Employee Satisfaction Surveys/Work climate study is conducted Periodically?
5. Do Formal

system for redressing employee

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Name of respondent: Designation: ..

BIBILIOGRAPHY
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Armstrong, M.A. (2005). Handbook of Human Resource Management Practice, New Delhi: Kogan Page India. Atkinson, J. (1984). Manpower strategies for flexible organizations. Personnel Management, 16 AIMA study. (1998). World Class Management-Benchmark for the Millenium. Business Today. Feb22. AIMA study. (2000). Benchmarking HR- Best of the Best. Human Capital. June. Anderson, G. (2000). Performance Appraisal. Human Resource Manual. London. Blackwell Press.
Kapoor, BM. (2001). HRD should be part of Business Strategy. Indian Management. Bowen, D.E. and Ostroff, C. (2004). Understanding HRM-firm performance linkages: the Role of the strength of the HRM-system. Academy of Management Review. Delaney, J.T. and Huselid, M.A. (1995). The impact of human resource management practices on perceptions of organizational performance. Academy of Management Journal,

www.google.com www.wikipedia.com www.herohonda.com/products.htm auto.indiamart.com/hero-honda

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