Executive Summary 80

Executive Summary 80

Introduction

          Organizations in the modern day are increasingly looking at the human resource (HR) function as an asset that can facilitate competitive advantage. The rapid changes in the business environment have led to the growing importance of managing employees in the right manner. Some of these trends include the growth of globalization, improved focus on global talent, corporate culture, changing workforce demographics, and technological advancement. In this situation, a highly-administrative HR function loses its relevance by failing to provide the business with the competitive advantage needed for survival. Strategic HR management is a process that links the department with the organizational objectives to improve the performance. HCL Technologies’ Employee First, Customer Second’ policy integrates all the activities to provide the company with a substantial competitive advantage in the consulting industry. The strategy demonstrates the benefits of an employee-focused company, such as reducing turnover, keeping the workforce engaged, and improving overall communication. Thus, there is a need for companies to utilize the HR function in establishing a competitive advantage over others in the same industry.

HR Strategy

          HCL Technologies adopted a framework that built a strong engagement culture and employee-led innovation to accomplish the overall objectives. According to Markos and Sridevi (2010), a positive working environment encompasses favorable working conditions to deliver effective and efficient services to the customers. Moreover, the initiative creates work-life conceptualized by the needs, preferences, and satisfaction of the employees. The presence of high-performance management at HCL Technologies aimed to make an impact on the performance of the company after the 2000 -2005 era. During this period, the business lost its competitive advantage in the industry and experienced high employee turnover. However, the management implemented a strategy that allowed staff to forget the economic impact of the era. Instead, the company’s HR function focused on employee improvement areas such as productivity, quality, and satisfaction. The strategy allowed HIC Technologies to establish a strong engagement culture where the workforce developed most of the initiatives. Shuck and Wollard (2010) refer to them as employee-focused practices where organizations focus on the development of employees to enable a collaborative environment. Thus, the company managed to turn employees away from past failures and concentrate on a better future.

There is a strong connection between the success of an organization and the presence of a trust culture. According to Park and Blenkinsopp (2011), businesses with high levels of transparency tend to influence employees in producing high-quality products and services at less cost. Moreover, organizations are more likely to enjoy their duties, which is a component of a highly motivated workforce. HCL Technologies established a culture of trust by opening their books, sharing information across the firm, and allowed everybody to question each other. This approach energized the workforce to make their decisions, innovate, take risks, and embrace the company’s goals. As a result, HCL leaders were left free to perform other tasks essential in establishing and maintain a competitive advantage over top rivals such as Tata Consultancy Services. According to Shuck and Wollard (2010), when the management creates partnerships with employees, they build a work environment driven by a commitment to the overall goals. In addition, such organizations that decentralize the decisions throughout the workforce tend to deliver better service to customers. Thus, HCL technologies developed a strong organizational culture by eliminating all the status barriers, training by commitment, and treating them with respect.

Modern HR management strategies emphasize on communication and accountability as key components to satisfied employees and successful organization. According to Sikora and Ferris (2014), corporate managers are making more demands within the departmental heads to establish and maintain high levels of employee engagement. Moreover, HR professionals work on several strategies to get every executive to involve in the continuous process of employee engagement. HCL Technologies used this approach by ensuring supporting functions such as Finance and HR are accountable to the employees. Specifically, the firm implemented a strict policy that encouraged employees to list their needs on the company’s website. HCL Technologies used technology to promote new methods of bottom-up communication throughout the organization. The effective accomplishment of communication objectives is effective in achieving cohesiveness and accountability within the company. Both the management and employees need to have a solid understanding of the company’s expectations. According to Park and Blenkinsopp (2011), organizations must establish clear policies that promote the motivation and behavior of the staff. Notably, HCL Technologies worked on the communication skills of the management functions to promote transparency and accountability to the employees.

The quality of employees is an essential aspect of the success and failure of any organization. According to Ederer (2010), one of the significant strategies to enhance the development of the workforce is to receive ratings from bosses, teammates, and subordinates. Most organizations use this approach, known as 360-degree feedback, in both leadership development and employee engagement programs. Proper implementation of the model can lead to organizational growth and individual improvement. According to Campion (2015), one of the important benefits of establishing and maintaining a 360-feedback program is an enhancement of awareness throughout the organization. Through this approach, all members are given a complete report that includes all the strengths, weaknesses, and areas of improvement. The program gave employees and managers at HCL Technologies insight into their behavior and how others perceive them. Moreover, the feedback model provided a well-rounded view of the skills and practice of everyone at the company. 360-feedback also facilitates innovation and the creation of personalized development plans, thus encouraging accountability within a business.

Remodeling the role of the chief executive officer (CEO) gain a competitive advantage by transforming a firm into a self-governing organization. According to Shuck and Wollard (2010), inspirational leaders work alongside the subordinates to identify needed change, establish a vision, and execute the changes with committed members. HCL Technologies CEO accomplished this by transferring the responsibility for change to workers in the value zone. The company was at the forefront in transforming and empowering the employees with the knowledge, infrastructure, and resources that nurtured innovation. In addition, the CEO allowed everyone to participate in key management decisions through opinion polls. This process inspired positive changes through an energetic, passionate, and enthusiastic workforce. Therefore, HCL Technologies fostered a productive working environment with clear values, motivation, innovation, and development of employees.

Global HR trends

          In the modern world, organizations around the globe are becoming more interdependent.  According to Cooke, Liu, Liu, and Chen (2019), globalization has continued to bind economies together through more effective infrastructure trade links and networks. Moreover, with the eased access to the global labor market, firms can now broaden business across locations to protect one or more sectors from failing. This trend creates a risk as negative local events can have far-reaching consequences to companies across the world. Multinationals such as HCL Technologies may use this trend to seek new opportunities in emerging economies since there is an increase in labor migration between countries. The company can prepare and adjust to this trend through several approaches. First, the HRM should understand the goals and objectives of the HCL Technologies strategy, including its supply-chain operations. Moreover, the HR function should establish a common understanding of workplace ethics, security, and confidentiality across all locations. Second, executive management should evaluate the likely political, regulatory, and economic risks in each country to ensure HCL Technologies develops a global continuity plan. Finally, the HR function should assess the technology used worldwide in the organization and look for means to integrate them.

Today, the workforce has become more global, where most of the work is achieved through virtual teams. According to Budhwar, Pereira, Mellahi, and Singh (2019), nearly 40 percent of the Asian workforce holds a job that is compatible with teleworking, while 19 percent telework at some frequency. With the development of innovative technologies, workers can communicate with colleagues even when working in remote locations. Moreover, the innovations have allowed group projects and teams to collaborate across different time zones and borders. This enhanced worldwide connectivity also means employees more around the globe more frequently. In such developments, the nation of origin, ethnicity, or region no longer dictate an employee’s geographical range. HCL Technologies can approach this trend in several ways. First, the organization can offer training programs for workers to work efficiently and effectively in virtual teams. Moreover, the company can establish opportunities for virtual groups to meet face-to-face before commencing a project. Second, the HR function should develop technological-driven plans that foster continuous interaction among its globally-dispersed workforce. Finally, HCL technologies should train all its managers to enhance productivity by establishing clear expectations for virtual team members.

Increased globalization world is creating and enhancing a worldwide talent pool. According to Cooke, Liu, Liu, and Chen (2019), technological advancements and trade liberalization have encouraged businesses to expand internationally and market their products and services on a global magnitude. Notably, the world’s largest organizations have expanded across borders and have more essential operations as well as more employees outside the country of origin. For example, HCL Technologies was found in India in 1976, and by the 2000s, more of its employees were based outside the country. Organizations have the opportunity to target the best talent around the world. In sectors where demand for talented workers exceed labor supply, firms will look outside the borders for skilled individuals. However, company leaders and the HR function should work across cultures to manage the workforce in multiple geographical locations. HCL Technologies can prepare and adjust to this trend by evaluating HR programs and policies to assess which should be adapted to a local area and which should be applied globally. Moreover, HR managers should work with executive management to establish a holistic approach that incorporates cultural leadership capabilities within the company.

With the advancement in technologies and easier travel, both small and large organizations are likely to have a diverse workforce. According to Budhwar, Pereira, Mellahi, and Singh (2019), culture encompasses a broad spectrum of organizational behavior, including how employees communicate to accomplish objectives. Notably, culture refers to the beliefs, values, ethos, style, latest fashion, and customs within a group of people. The cultural components in the workplace guide the thoughts and behavior of the employees as well as influencing everything that happens within the company. According to Cooke, Liu, Liu, and Chen (2019), every employee has a distinct family and national culture, while organizations have their own corporate culture. The mixture between the company and individual culture may create conflict in the working environment. HCL Technologies can prepare to tackle this challenge by clearly defining the organization’s culture and core values. In addition, the HR function should take time to understand a local culture before entering a new society or territory. Notably, the department should gain management’s trust by demonstrating a thorough understanding of world cultures.

Conclusion

The focus and extent of human resource function have evolved over the last decades, from roots in administration to focus on emphasizing strategic practices. Human resource managers need to advance their skills to help businesses align with the overall objectives and achieve a competitive advantage in the market. HCL Technologies’ expansion overseas exposed the company to several challenges that hindered its competitive advantage. The company responded by building strong engagement and development of a strong connection of a trust culture. In addition, HCL technologies emphasized communication, accountability, feedback, and redefinition of the CEO’s role in transforming the company. Some of the global HR trends the company faces include global interdependence, virtual teams, talent across borders, and cultural differences. The higher the risks from these trends, the lower the competitive advantage from the companies.