Q1)Delineate the efforts of Harley-Davidson Motor Company (H-D) in order to bring about improvements in its Human Resource (HR) functions and to encourage greater employee participation and Performance. Also, discuss the importance of HR Strategies for Performance improvement with respect to the above case?

Ans1)

Introduction

The major step taken by Harley Davidson to improve HR function and to encourage employee participation and performance is that they implemented the Accenture Human Capital Development Framework (HCDF).

Now let us discuss in brief what Accenture Human Capital Development Framework is:

The Accenture Human Capital Development Framework basically is Assessing, Measuring and Guiding Investments in Human Capital to Achieve High Performance

Accenture Human Capital Development Framework' (HCDF) is implemented in order to bring improvements in its human resource (HR) functions and circle organization was adopted to encourage greater employee participation and collaboration. The reason behind creatingsuch circles was to come out of the command-and-control leadership style of management and foster teamwork among the employees.

H-D took these initiatives after the company's newmanagement realized that in order to survive in a highly competitive market in the long run, it was essential to make the company a continuous learning and improving organization where there was free and open communication between all levels of the employees. Each and every employee, it felt, should be able to comprehend their roles in the company and the consequence of their roles to the company.

Now what Accenture has done for HD is that they have come up with 2 basic fundamentals :

1. Intellectual capital2. intellectual property

Intellectual capital: intellectual capital is knowledge. Where Intellectual capital of a company includes employees ‘expertise, unique organizational systems. Intellectual capital is the collective knowledge in the organization. The knowledge a company‘s employees have about its products and services and about its organizational systems.

Intellectual property: While intellectual property means trademarks, patents and copyrights, and intellectual property make up its intellectual capital.

Performance Improvement Strategies Used in HD :

These are the actual strategies which used by Harley Davidson to improve their performance:

1. Align skill development with organizational objectives.

2. Extend accessibility and training reach with e-Learning

3. Recruiters and trainers are business partners in employee selection, training and outplacement.

4. Mentoring and coaching is a catalyst to performance improvement.

5. Employee suggestions.

Q2. Explain in detail the various HR Strategies based on various components of HRD like Compensation, Performance Appraisal, and Training and Work environment.

Ans2)

Introduction:

HR Strategy is aligning the goals of Human Resource to the goals or strategy of your organisation. Recruitment, retention and termination are a small part of it.

In developing a strategy two critical questions must be answered.

What kinds of people we need to manage and run your business to meet our strategic business objectives?

What people programs and initiatives must be designed and implemented to attract, develop and retain staff to compete effectively?

In order to answer these questions four key dimensions of an organization must be addressed. These are:

Culture: the beliefs, values, norms and management style of the organization Organization: the structure, job roles and reporting lines of the organization People: the skill levels, staff potential and management capability Human resources systems: the people focused mechanisms which deliver the

strategy - employee selection, communications, training, rewards, career development, etc.

COMPENSATION:

Compensation is the recompense, reward, wages or salary given by an organization to a person. In return a person or a group of persons rendered service or made contribution towards the accomplishment of organizational goal.

It is the prior responsibility of HR manager to formulate policies and the strategies to establish a enumeration system acceptable, equitable and adequate for every employee.

The level of pay assigned to various jobs is important to the organization because of its impact on morale, retention and the ability to attract capable employees. Compensation levels determine employee’s life style, status, self-worth and attitudes towards the organization.

The goals of compensation system can include:1. Attraction and retention of employees2. Cost efficiency3. Legal compliance4. Equitable salaries for all employees5. Motivating employee performance

Companies generally will move to design a fair compensation system, which will consist of the following elements at a time: Competitive pay: Sufficient pay for jobs to attract and retain the number and quality of people needed to run the company and achieve reasonable enterprise goals.

HR strategies related to TRAINING:

Training and development of employees is attracting increasing attention. The literature of recent years has stressed the importance of tying training to strategic business planning.Strategy linked training is essential to the success of firms challenged by increasing external and internal changes of organizations. Instead of being activities peripheral to the achievement of corporate objectives, the human resources of the organisation are seen as a vital factor in corporate planning, and training and development as able to make an important contribution to the achievement of business success.

There are four strategic purposes for training and development:

First many organisations have got to the point of recognizing that training and development is a strategic priority rather than a tactical. A common conception of strategic training and development is to see it as a means to access and address skill deficiencies in the organisation.

Second strategic purpose of Training and Development is to act as a catalyst for change. This approach is frequently associated with organisation leaders seeking to orchestrate cultural change amongst their workforce.

Third and most strategic purpose of training and development is an attempt to give the organisation a competitive edge, both through the content of such activities and the way in which they are delivered.

Fourth strategic purpose of training and development is that of encouraging a learning climate in the organisation. The focus here is on the learning needs of individuals, guided by organisational goals and undergirded by the belief that within each member of staff lies a latent talent waiting to be tapped.

Last but not the least,development of high potential workers with the support of continuous training and retraining is seen as a core element in the development of competitive advantage of the organisations. Training is a prime instrument in human resources and plays a vital role in securing organisational goals. Companies that, for whatever reasons, are inclined to treat their employees simply as a cost or commodity, and consequently fail to invest in training and development activity cannot meaningfully be said to be practicing human resource management.

HR strategies related to PERFORMANCE APPRAISAL:

Performance appraisal is the backbone of an effective Human Resource System. It provides the information needed to make fully informed strategic decisions by assessing the fit between current Human Resource System and those systems required by a change in strategic direction. Performance measurement is crucial for business. When it is done well, it transcends the numbers and becomes a powerful communication tool that can bring the strategy and action in tune. A development-oriented performance appraisal approach includes establishing performance goals and standards, monitoring progress, reviewing actual performance, comparing actual performance with the pre established goals, tying rewards to performance, establishing developmental plans, and agreeing on future performance goals and standards. Performance appraisal is typically seen as having two purposes:

Administration comprising such action as determining job assignments, raises, promotions and terminations.

Development consisting of providing feedback, coaching and identifying training needs.

Following are the primary reasons for implementing performance appraisal system in the organisation:

1. Compensation2. Performance Improvement3. Feedback4. Documentation5. Promotion6. Training7. Transfer8. Discharge9. Lay-off10. Personnel Research11. Manpower Planning

1) HR Strategies related with Work environment : -

THE WORK ENVIRONMENT

It makes sense that people that are happy within their working environment will work far more effectively and happily than those who are uncomfortable: it therefore makes sense to consider certain aspects of your employee’s workspace quite carefully.

Noise

Ventilation

Temperature

Lighting

Work environment is also important in motivating the employee to perform effectively. If the physical environment of work is improved then two things might happen :

1) There is a changed environment; and there is a response to change in general.

2) The second is often also called the Hawthorne effect. This means that a change in physical environment brings about a temporary improvement in morale, leading to increased productivity.

Further, lighting and noise are two important factors that determine satisfaction with the office/plant environment. The salutary working conditions motivate workers to sacrifice for organisational needs.