netrashetty
Netra Shetty
American International Group, Inc. (AIG) (NYSE: AIG) is an American insurance corporation. Its corporate headquarters are located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in La Défense, Paris, and its Asian headquarters office is in Hong Kong. According to the 2008 Forbes Global 2000 list, AIG was once the 18th-largest public company in the world. It was listed on the Dow Jones Industrial Average from April 8, 2004 to September 22, 2008.
AIG suffered from a liquidity crisis when its credit ratings were downgraded below "AA" levels in September 2008. The United States Federal Reserve Bank on September 16, 2008 created an $85 billion credit facility to enable the company to meet increased collateral obligations consequent to the credit rating downgrade, in exchange for the issuance of a stock warrant to the Federal Reserve Bank for 79.9% of the equity of AIG. The Federal Reserve Bank and the United States Treasury by May 2009 had increased the potential financial support to AIG, with the support of an investment of as much as $70 billion, a $60 billion credit line and $52.5 billion to buy mortgage-based assets owned or guaranteed by AIG, increasing the total amount available to as much as $182.5 billion.[3][4] AIG subsequently sold a number of its subsidiaries and other assets to pay down loans received, and continues to seek buyers of its assets.
Technological Factors:
Just as necessity is the mother of invention competition and other reasons are responsible for the rapid technological changes and innovations. As a consequence of these changes, technical, personnel skilled workers, computer operators and machine operators are increasingly required. Hence procurement of skilled employees and their increase in numbers to match the changing job requirements has become a complicated task.
Changing demand of employees:
The information technological revolution and neck to heel marketing competition of most of the organization due to globalization demand that the existing employees adopt to the ever changing work situations and learn new skills and knowledge, etc., to cope up with the new changes.
Employees' organization:
These organization constitutes one of the power blocks in many countries.
Customers:
Organization depends upon customers for their survival and growth. Customers revolt against employees, if the services rendered are less qualitative. Hence HR manager has to take the customers' attitude towards employees in HRM, particularly on service Industries and enable the employees to maintain relations with customers.
Social Factors:
Social environment consists of class structure, mobility, social roles, nature and development of social institutions, caste structure and occupational structure socially forward and backward sections, traditions, religion, culture and etc., these factors influence the HRM of an organization viz., its Human Resources.
Economic Factors:
These factors affect HRM of an organization by influencing its operations. Eg-economic system, economic policies, national income /per capita income, wage level and structure, distribution of income and wealth and etc., Hence, these factors influence the wage and salary levels of an organization.
Political Factors:
Splits in and amalgamation of existing parties affects the trade union in an organizations results in intra and inter union rivalry, new trade union formation, splits in and amalgamation of existing trade union and etc., These changes in trade union complicate the taste of HRM.
Recruitment and Selection
The recruitment and selection is one of the problematic areas at High Air. The recruitment and selection process is not aligned with the goals and objectives of the company. The recruitment and selection process fails to provide the company with competitive and qualified employees. The growing dissatisfaction of the employees with the recruitment and selection process must also be considered.
The recruitment and selection process cannot be a success if the job analysis is unclear and not updated. Job analysis is important for recruitment and selection because it is a systematic process for collecting information on the work-related aspects of a job (Gatewood and Field 2001, p. 285). An important part of job analysis according to Sims (2002), is to collect information on the characteristics of a job that differentiate it from other jobs. The categories of information usually obtained in job analysis include work activities, interaction with others, performance standards, financial and budgeting impact, machines and equipment used, working conditions, supervision given and received, and knowledge, skills, and abilities needed (p. 74). Job analysis is the foundation of recruitment and selection and other HR processes. Job analysis can be used in the following:
1. HRM Planning – Job analysis is very important in HRM planning. HRM planning involves the analysis of the organization’s human resource needs. Accurate information about the levels of skills that the organization needs is very significant. Job analysis provides fundamental input to the HRM planning process by helping planners understand exactly what kinds of work must be performed. Job analysis helps define for managers the kinds of general work and specific jobs that the organization will be relying on in the future (Sims 2002).
2. Recruitment – The job analysis specifies the staffing required in completing the job duties. Job analysis can help the HRM specialists generate a higher-quality pool of job applicants by making it easy to describe a job in classified ads in a way that more precisely targets qualified job applicants. Job analysis helps recruiters screen job applicants because it tells them what tasks, duties, and responsibilities the job entails (Sims 2002).
3. Selection - Human resources selection deals with identifying the most qualified applicants for employment. To identify which applicants are more qualified, it is first necessary to determine the tasks that will be performed by the individual hired and the knowledge, skills, and abilities the individuals must have to perform the job effectively. Job analysis information can also be used to choose or develop the appropriate selection devices (Sims 2002).
Recruitment is defined by Sims (2002) as the process in which organizations discover, develop, seek, and attract individuals to fill actual or anticipated job vacancies. Recruitment is concerned with finding applicants, communicating opportunities and information and generating interest. It includes interview screening, and selection of most qualified candidates, filling positions through transfer or promotion, and coordinating temporary employment. The aim of recruitment is to identify a suitable pool of applicants quickly, cost efficiently, and legally. Selection on the other hand is the process of obtaining and using information about job applicants in order to determine who should be hired for short-or long-term positions
AIG suffered from a liquidity crisis when its credit ratings were downgraded below "AA" levels in September 2008. The United States Federal Reserve Bank on September 16, 2008 created an $85 billion credit facility to enable the company to meet increased collateral obligations consequent to the credit rating downgrade, in exchange for the issuance of a stock warrant to the Federal Reserve Bank for 79.9% of the equity of AIG. The Federal Reserve Bank and the United States Treasury by May 2009 had increased the potential financial support to AIG, with the support of an investment of as much as $70 billion, a $60 billion credit line and $52.5 billion to buy mortgage-based assets owned or guaranteed by AIG, increasing the total amount available to as much as $182.5 billion.[3][4] AIG subsequently sold a number of its subsidiaries and other assets to pay down loans received, and continues to seek buyers of its assets.
Technological Factors:
Just as necessity is the mother of invention competition and other reasons are responsible for the rapid technological changes and innovations. As a consequence of these changes, technical, personnel skilled workers, computer operators and machine operators are increasingly required. Hence procurement of skilled employees and their increase in numbers to match the changing job requirements has become a complicated task.
Changing demand of employees:
The information technological revolution and neck to heel marketing competition of most of the organization due to globalization demand that the existing employees adopt to the ever changing work situations and learn new skills and knowledge, etc., to cope up with the new changes.
Employees' organization:
These organization constitutes one of the power blocks in many countries.
Customers:
Organization depends upon customers for their survival and growth. Customers revolt against employees, if the services rendered are less qualitative. Hence HR manager has to take the customers' attitude towards employees in HRM, particularly on service Industries and enable the employees to maintain relations with customers.
Social Factors:
Social environment consists of class structure, mobility, social roles, nature and development of social institutions, caste structure and occupational structure socially forward and backward sections, traditions, religion, culture and etc., these factors influence the HRM of an organization viz., its Human Resources.
Economic Factors:
These factors affect HRM of an organization by influencing its operations. Eg-economic system, economic policies, national income /per capita income, wage level and structure, distribution of income and wealth and etc., Hence, these factors influence the wage and salary levels of an organization.
Political Factors:
Splits in and amalgamation of existing parties affects the trade union in an organizations results in intra and inter union rivalry, new trade union formation, splits in and amalgamation of existing trade union and etc., These changes in trade union complicate the taste of HRM.
Recruitment and Selection
The recruitment and selection is one of the problematic areas at High Air. The recruitment and selection process is not aligned with the goals and objectives of the company. The recruitment and selection process fails to provide the company with competitive and qualified employees. The growing dissatisfaction of the employees with the recruitment and selection process must also be considered.
The recruitment and selection process cannot be a success if the job analysis is unclear and not updated. Job analysis is important for recruitment and selection because it is a systematic process for collecting information on the work-related aspects of a job (Gatewood and Field 2001, p. 285). An important part of job analysis according to Sims (2002), is to collect information on the characteristics of a job that differentiate it from other jobs. The categories of information usually obtained in job analysis include work activities, interaction with others, performance standards, financial and budgeting impact, machines and equipment used, working conditions, supervision given and received, and knowledge, skills, and abilities needed (p. 74). Job analysis is the foundation of recruitment and selection and other HR processes. Job analysis can be used in the following:
1. HRM Planning – Job analysis is very important in HRM planning. HRM planning involves the analysis of the organization’s human resource needs. Accurate information about the levels of skills that the organization needs is very significant. Job analysis provides fundamental input to the HRM planning process by helping planners understand exactly what kinds of work must be performed. Job analysis helps define for managers the kinds of general work and specific jobs that the organization will be relying on in the future (Sims 2002).
2. Recruitment – The job analysis specifies the staffing required in completing the job duties. Job analysis can help the HRM specialists generate a higher-quality pool of job applicants by making it easy to describe a job in classified ads in a way that more precisely targets qualified job applicants. Job analysis helps recruiters screen job applicants because it tells them what tasks, duties, and responsibilities the job entails (Sims 2002).
3. Selection - Human resources selection deals with identifying the most qualified applicants for employment. To identify which applicants are more qualified, it is first necessary to determine the tasks that will be performed by the individual hired and the knowledge, skills, and abilities the individuals must have to perform the job effectively. Job analysis information can also be used to choose or develop the appropriate selection devices (Sims 2002).
Recruitment is defined by Sims (2002) as the process in which organizations discover, develop, seek, and attract individuals to fill actual or anticipated job vacancies. Recruitment is concerned with finding applicants, communicating opportunities and information and generating interest. It includes interview screening, and selection of most qualified candidates, filling positions through transfer or promotion, and coordinating temporary employment. The aim of recruitment is to identify a suitable pool of applicants quickly, cost efficiently, and legally. Selection on the other hand is the process of obtaining and using information about job applicants in order to determine who should be hired for short-or long-term positions