HCL Technologies - Assignment PDF

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HRM8340 Human Resources Business Strategy

Assignment 2

Mr. George Vandermey

Igwe Chukwuemeka

Student ID: 8101214

Due Date: 23/08/2018

EXECUTIVE SUMMARY. HCT technologies was founded in 1976, although initially a computer hardware company, it now provides holistic, multi-service delivery in such industries as financial services, manufacturing, consumer services, public services, and healthcare. During the 1990s, the company had tremendous success in gaining revenue, but later on, it implemented a new business strategy, after the company lost its competitive advantage in the market as a result of the high rate of employee’s turnover for a period of 5 years (2000-2005). We have to conduct a sound research as to why the company implement this new business strategy and provide insightful answers to different questions asked about the new business strategy, “Employee First, Customer Second”. I have to provide relative answers as to what this new business strategy means to HCT technologies in moving forward, what models will be suitable in selecting the HR strategy for the company, give insight to the global trends that could affect the HR department when implementing the new strategy and recommend ways/solution when addressing these global trends.

HR STRATEGY OF “EMPLOYEE FIRST, CUSTOMER SECOND” POLICY. HCL Technologies was initially a computer hardware company that was founded in India in 1976, since then, the company had flourished with an excellent success within the 1990s. However, the company has seen its competitive advantage drop significantly, thanks to high rate of turnover throughout a period of 5 years, from 2000-2005. HCL technologies fell to fifth place behind Tata Consultancy Services (TCS), Infosys Technologies, Wipro Technologies, and Satyam

Computer Services, this was due to the high rate of turnover over the 5 years period, as it was also trying to compete with other organizations in the market, and it also affected the success of the company it had attained during the 1990s. Because of the vulnerability of its success, HCL technologies decided to approach a new dimension in the way the company operates. HCL technologies decided to move from a low cost high volume business and adopt a business strategy that ascend the value chain by getting closer to existing customers and better meeting their unique needs. The new business strategy that HCL technologies decided to adopt would be called “Employee First, Customer Second” policy. The company’s reason for adopting the new business strategy was to focus on formulating and spreading the unique value that the strategy entails towards customers, as well as creating a competitive edge for HCL technologies, and also encourage its employees in giving their absolute best for the company. The “Employee First, Customer Second’ approach the company has taken in conducting its business reflects a powerful belief within the power of each systems and an underlying purpose beyond creating revenue for the organization. Although the company’s former strategy/policy recommended that its clients/customers be placed first, the new business strategy says otherwise by putting its employees first before customers. The business strategy ensured that the management were being accountable for their employee, and it also ensured that every employee was placed at the forefront of transformation, empowering them with knowledge, resources and infrastructure in a workplace that nurtures innovation. Since the implementation of this strategy, the company was awarded

a recognition in the separation occasion, and it has also seen it revenue rise, especially in the US and Europe markets. The company decision to change its business strategy to the “Employee first, customer second” policy has made the company become one of the world’s quickest growing and most efficient and profitable organizations within the IT business. The new business strategy will enable the company’s employee align with the organization’s goals and objective both in the short and long run. It will also give HCL technologies the opportunity to utilize its employee’s engagement by providing means/platforms for its employees specify their innovative concept, which will in return help the company in making decisions towards the effectiveness and productivity of the organization. This in return will help form a realization and commitment of the employees towards the organization, that the company values the insight of its employees just as much as its customers/clients, and also that their inputs are valued in making important managerial/business decisions for HCL technologies. The new strategy will also improve its employee’s engagement towards an effective customer service and customer relations for the organization.

MODELS THAT WILL BE USEFUL IN ANALYSIS THE CASE OF HCL TECHNOLOGIES. A model from Chapter 7 of the text that would be insightful in analyzing the case of HCL technologies is the Mooney’s model. In Mooney’s model for HR strategy, the profitability of the HR strategy is represented by the horizontal axis, while the strategic importance of people in

product/service offered is represented by the vertical axis. Mooney’s model for HR strategy consist of four different models in developing HR strategy content. There are; 

Vocational Model: This model would be important for HCT technologies if the low level of the business gain is aligned with the high level of strategic importance of people in product/service offered. (Truss, 2012, p. 126)



Professional Model: This model would be important for HCT technologies if a high level of each the aspects of the matrix that are the extent of strategic importance of individuals in product or service offered and therefore the level of business gain. (Truss, 2012, p. 126)



Lean Model: This model would be important for HCT technology in a situation where there is an occasional level of trade profit and also the level of strategic importance of individuals in product or service offered is additionally low. (Truss, 2012, p. 126)



Social Model: This model would be important for HCT technology in a situation where there exists high profitableness of business and therefore the level of strategic significance of individuals in product or service offered is high too. (Truss, 2012, p. 126)

From the four different types of Mooney’s model, the model that will be helpful in analyzing the case on HCT are the vocational and professional model. The vocational model is helpful to the case because of the turnover rate the organization was facing from 2000-2005, and the vocational need of talented employees by the company to keep up its competitors in the market. The professional model was helpful in the case because after HCT had observed the high rate of turnover from 2000-2005, the company decided to change its business strategy to the “Employee First, Customer Second”. This was implemented to develop high competency

rate and commitment of top notch employees towards the organization, and also improving its customer service quality and customer relation with the organizations. (Truss, 2012, p. 125)

GLOBAL HR TRENDS THAT HCL TECHNOLIGIES SHOUD ADDRESS. As the world is changing, HCT technologies has to come up with effective ways or approach when dealing with various global HR trends that the organization could face, and it should also focus on how these global trends impact its HR strategies in HCT technologies globally. In dealing with these trends, the HR department in the organization should endeavor to understand the implications of globalization, work-force diversity, dynamical ability needs, company’s downsizing, contingent workforce etc., that affect the financial aspect of the organization. If HCT technologies is able to address these trends within a given period, it will ensure that the organization’s new business strategy is implemented successfully for the long run. Below are various global HR trends the company should address; (1). Workforce Diversity: Due to the diversity in the workforce, there is no homogeneity in the workforce and this is due to workforce comprising of people with different gender, age, values, religion, language, marital status etc., and as a result workforce diversity is classified as an important aspect of an organization’s strategic direction in today world. An organization having a diverse workforce can benefit from better creativity, decision making and greater innovative ideas from the work-force will could be integral in improving the competitiveness of the organization. This can be achieved by the HCT technologies by providing benefits package to the

workforce with the help of the HR department. Such benefits can include, flexible working schedule, child care etc. The HR departmental in any organization should be instrumental in promoting an effective diverse workforce in today’s world. (Rutaihwa, 2016, para. 4)

(2). Changing Skills Requirement: In today world, organizations strive to improve its competitiveness, productivity, quality of service and have an effective workforce. All these could be achieved if the organization invest in recruiting and developing skill labor work force. HCT technologies could have different job positions that would require an advance educational level than other positions in the company and having a skill labor workforce will come into place. The company with the help of the HR department could provide training to employees that have skill deficiencies and shortages, to improve the skilled labor force. If the company does not address this issue, it could lead to financial losses for the company as a result of low productivity and poor quality of work. (Rutaihwa, 2016, para. 5)

(3). Corporate Downsizing: Why do organizations downsize its workforce? It is to create greater efficiency in the organization. If HCT technology decides to downsize its work force, due to the advancement of technology in the company, the HR department would be required to play a significant role in ensuring that is a smooth implementation of downsizing in the organization. The different ways the HR department can achieve this are; ensuring that employees in the company are informed of the decision by the management, endeavor to create proper communication during the downsizing, minimize the negative effects of rumors that could

jeopardize the ongoing downsizing operation and be part of the body that makes the decision on the downsizing of the company. (Rutaihwa, 2016, para. 6)

(4). Continuous Improvement Programs: This global trend focuses on the long-term well-being of any organization. Both parties at HCT technologies should endeavor on the creation of quality and better foundation when offering its services to its customers. Both parties can also implement continuous program that will help facilitate a better productivity, quality and customer satisfaction in the company. In achieving this, the company can ensure they improve they are involve with; from hiring of talented people, to administrative paper processing, to meeting customer needs. (Rutaihwa, 2016, para. 7-8)

(5). Employee Involvement: In an organization, the employee involvement is an internal aspect of the success of a company. Th employee involvement towards the company can be; participative management, to work in teams, participate in goal setting, employee training etc., and the HR department in the organization would be required to play an important role in ensuring that there is a successful involvement of employees towards the company. This can be achieved through the training of employees in understanding their various objectives with the HR department of HCT technologies. (Rutaihwa, 2016, para. 18)

(6). Family Work-Life Balance: This global trend has been around for a while in the workforce, as employees struggle to get on at work and find time for their families. HCT technologies should endeavor to minimize the effect this might have towards the organization, and also understand that “a happy family is equal to a happy workforce” in the company. With the help of the HR department, both parties should endeavor to reduce the negative impact this might incur by; organizing family day out for the employees and their families and utilizing the company time for days off to enable employees to attend to their family issues (paternity and maternity leave, as required by the employment law). This in return will help motivate employees and lead to higher productivity in the company. (Rutaihwa, 2016, para. 24-26)

CONCLUSION The vital decision for HCT technologies to move away from a low-cost, high-volume business to implementation of the “Employee First, Customer Second” business strategy proved to be successful for HCT technologies as the company was awarded the Financial Times Arcelor-Mittal Boldness in Business Award and the Hewitt Best Employers in Asia Award in 2009. It also helped the company in gain revenue, increasing its productivity, the commitment of employees towards the company. This vital decision proved a turning point for the company after it had experience the challenges of the high turnover rate from 2000-2005.

References

Andrew, R. A. (2016, May 18). 14 Current Trends in Human Resource Management. Retrieved from www.linkedin.com: https://www.linkedin.com/pulse/15-current-trends-human-resourcemanagement-rutaihwa-aristides-andrew

Truss, C., Mankin, D., & Kelliher, C. (2012). Strategic Human Resource Management. Toronto, Canada: Oxford University Press....