netrashetty
Netra Shetty
Human Resource Management of General Electric : The General Electric Company, or GE (NYSE: GE), is an American multinational conglomerate corporation incorporated in the State of New York.[5] The Company operates through five segments: Energy Infrastructure, Technology Infrastructure, NBC Universal (NBCU), Capital Finance and Consumer & Industrial.[6] In 2010, Forbes ranked GE as the world's second largest company (after JP Morgan Chase [7]), based on a formula that compared the total sales, profits, assets, and market value of several multinational companies.[8] The company has 304,000 employees around the world.
The role of human resource management has evolved in recent decades. HRM no longer just
encompasses a supportive administrative function, relating to the organization’s human resource
transactions that are essential to its day-to-day operations. HRM is also, in many organizations, a
strategic function, where human capital is explicitly and prominently factored into the organization’s
corporate planning and strategy decision-making processes. With this comes increasing recognition that
senior HR professionals need to engage in corporate strategic discussions, as advisor and partner of the
executive management team.
At the same time, it behaves HR professionals to ensure that human resource transactions are completed
competently and efficiently, in accordance with organizational policies.
Ulrich identifies four roles in a modern and service-oriented HR function, whereby HR professionals
ensure that
Line manager-friendly systems and procedures are available to help management staff execute their
people management role (i.e., technical-professional and service role of HR);
Line management is equipped to work within the various labor relation laws and codes of conduct
that govern the relationship between staff and management in the workplace (compliance role of
HR);
Each business unit has an overall people management (HR) strategy in place that increases the value
of staff in meeting the overall objectives of the institute (strategic role of HR);
HR systems and procedures are run at optimal cost (financial management role of HR).
For analytical purposes, this Good Practice Note groups these various HR roles into the following
functions or activities:
HR strategic planning
HR metrics
Organizational design
Change management
Diversity management
Recruitment, hiring and orientation
Performance management
Staff development
Codes of conduct
Remuneration and rewards
Benefits administration
Exit procedures
RISKS AND OPPORTUNITIES IN HUMAN RESOURCES
Taking a broader view of HR management that encompasses strategic issues facilitates the consideration
of people as a key element to be considered in the management of a Center’s risks and opportunities.
The key objectives of human resource management are pursued to achieve the following;
That right skills are brought to bear at the right time to implement the Center’s business plans
That Center staff stay motivated and committed to the Center’s mission
That Center effectively taps the talent of its diverse human resources
The former State Compensation Plan was a graded salary plan
consisting of 23 pay grades with a 56% range spread between the minimum and
maximum of each grade. Within each pay grade were 21 fixed pay steps that
increased in a uniform percentage of 2.25%. Each of the 1,650 job
classifications was assigned to specific pay grade.
Pay Bands
The new Salary Structure in the Compensation Management System
consists of 9 pay bands. The first eight bands have a range spread of
approximately 105% between the minimum and maximum salaries. There is a
30.6% difference between the minimum salary in each pay band except
between pay band 2 and 3. The pay bands are “stepless”; that is there are no
incremental steps within the band. The 9th pay band specifically addresses
Mental Health physicians that serve as either Facility Directors or Medical
Directors. The maximum salary of the 9 th pay band is based on the market for
these positions.
3
The transition from a graded salary plan to the pay band structure is
the result of a comprehensive analysis of the class specifications and a review
of best practices adopted by other public and private organizations with similar
pay banding structures and alternative pay practices. The review included an
in-depth analysis and grouping of the classifications that had similar duties and
responsibilities, as well as knowledge, skills, abilities and qualifications.
Based on this review, the most logical grouping across various
occupational areas resulted in the consolidation of 3 former pay grades into
each pay band with the exception of pay band 2 that only grouped 2 former
pay grades (4 and 5). An additional 10% (with the exception of pay band 2
which was increased by 20%) was added to the maximum salary of each pay
grade resulting in approximately 105% range spread for each new pay bands.
he knowledge economy suggests that a new lens is needed for the HRM function in most organizations. People are at the heart of value creation in the knowledge economy, but the conventional ways in which many HRM professionals have viewed people is not focused on the types of contributions that will be crucial in this context. Many of the practices and perspectives traditionally found in HRM units are well suited to matching people to jobs and jobs to strategies, to motivating people to make a variety of contributions to value creation expertly and efficiently, and to responding to a firm's strategic intent. But, the knowledge economy requires a different kind of human resource management in which human resource (HR) professionals take the initiative in designing value creation options for their organizations. The focus of HRM in the knowledge economy should emphasize making it possible for people to leverage other types of resources to create capabilities, and to nurture core competencies within a context that rewards both consistency and innovation and values both persistence and flexibility. The knowledge economy will have two important effects on HRM. First, HRM should not remain confined to its conventional activities of staffing, training and development, performance management, and so on (Burke & Cooper 2004).
As with all other functional areas, HRM activities will be expected to demonstrate how they contribute to value-creation, create organizational capabilities that enable the firm to thrive in a fluid economy, and leverage the other activities and resources of the organization. HRM in the knowledge economy includes activities that overlap with other traditional business functions. HRM in the knowledge economy also includes new activities, such as knowledge management, that do not fit into one of the previous functional areas of HR concern (Lee & Stewart 2004).HRM poses challenges to a knowledge economy company. It includes additional cost to adjust to changes, wide range of reorganization that leads to reduced motivation and forced engagement to employees. HRM creates a need for a knowledge economy company in recession to introduce changes that they think may benefit the knowledge economy company as a whole. This will generate additional cost for a company during a difficult time of recession. Having such challenge can be more complex if the firm has limited knowledge of recession and its fundamentals.
The role of human resource management has evolved in recent decades. HRM no longer just
encompasses a supportive administrative function, relating to the organization’s human resource
transactions that are essential to its day-to-day operations. HRM is also, in many organizations, a
strategic function, where human capital is explicitly and prominently factored into the organization’s
corporate planning and strategy decision-making processes. With this comes increasing recognition that
senior HR professionals need to engage in corporate strategic discussions, as advisor and partner of the
executive management team.
At the same time, it behaves HR professionals to ensure that human resource transactions are completed
competently and efficiently, in accordance with organizational policies.
Ulrich identifies four roles in a modern and service-oriented HR function, whereby HR professionals
ensure that
Line manager-friendly systems and procedures are available to help management staff execute their
people management role (i.e., technical-professional and service role of HR);
Line management is equipped to work within the various labor relation laws and codes of conduct
that govern the relationship between staff and management in the workplace (compliance role of
HR);
Each business unit has an overall people management (HR) strategy in place that increases the value
of staff in meeting the overall objectives of the institute (strategic role of HR);
HR systems and procedures are run at optimal cost (financial management role of HR).
For analytical purposes, this Good Practice Note groups these various HR roles into the following
functions or activities:
HR strategic planning
HR metrics
Organizational design
Change management
Diversity management
Recruitment, hiring and orientation
Performance management
Staff development
Codes of conduct
Remuneration and rewards
Benefits administration
Exit procedures
RISKS AND OPPORTUNITIES IN HUMAN RESOURCES
Taking a broader view of HR management that encompasses strategic issues facilitates the consideration
of people as a key element to be considered in the management of a Center’s risks and opportunities.
The key objectives of human resource management are pursued to achieve the following;
That right skills are brought to bear at the right time to implement the Center’s business plans
That Center staff stay motivated and committed to the Center’s mission
That Center effectively taps the talent of its diverse human resources
The former State Compensation Plan was a graded salary plan
consisting of 23 pay grades with a 56% range spread between the minimum and
maximum of each grade. Within each pay grade were 21 fixed pay steps that
increased in a uniform percentage of 2.25%. Each of the 1,650 job
classifications was assigned to specific pay grade.
Pay Bands
The new Salary Structure in the Compensation Management System
consists of 9 pay bands. The first eight bands have a range spread of
approximately 105% between the minimum and maximum salaries. There is a
30.6% difference between the minimum salary in each pay band except
between pay band 2 and 3. The pay bands are “stepless”; that is there are no
incremental steps within the band. The 9th pay band specifically addresses
Mental Health physicians that serve as either Facility Directors or Medical
Directors. The maximum salary of the 9 th pay band is based on the market for
these positions.
3
The transition from a graded salary plan to the pay band structure is
the result of a comprehensive analysis of the class specifications and a review
of best practices adopted by other public and private organizations with similar
pay banding structures and alternative pay practices. The review included an
in-depth analysis and grouping of the classifications that had similar duties and
responsibilities, as well as knowledge, skills, abilities and qualifications.
Based on this review, the most logical grouping across various
occupational areas resulted in the consolidation of 3 former pay grades into
each pay band with the exception of pay band 2 that only grouped 2 former
pay grades (4 and 5). An additional 10% (with the exception of pay band 2
which was increased by 20%) was added to the maximum salary of each pay
grade resulting in approximately 105% range spread for each new pay bands.
he knowledge economy suggests that a new lens is needed for the HRM function in most organizations. People are at the heart of value creation in the knowledge economy, but the conventional ways in which many HRM professionals have viewed people is not focused on the types of contributions that will be crucial in this context. Many of the practices and perspectives traditionally found in HRM units are well suited to matching people to jobs and jobs to strategies, to motivating people to make a variety of contributions to value creation expertly and efficiently, and to responding to a firm's strategic intent. But, the knowledge economy requires a different kind of human resource management in which human resource (HR) professionals take the initiative in designing value creation options for their organizations. The focus of HRM in the knowledge economy should emphasize making it possible for people to leverage other types of resources to create capabilities, and to nurture core competencies within a context that rewards both consistency and innovation and values both persistence and flexibility. The knowledge economy will have two important effects on HRM. First, HRM should not remain confined to its conventional activities of staffing, training and development, performance management, and so on (Burke & Cooper 2004).
As with all other functional areas, HRM activities will be expected to demonstrate how they contribute to value-creation, create organizational capabilities that enable the firm to thrive in a fluid economy, and leverage the other activities and resources of the organization. HRM in the knowledge economy includes activities that overlap with other traditional business functions. HRM in the knowledge economy also includes new activities, such as knowledge management, that do not fit into one of the previous functional areas of HR concern (Lee & Stewart 2004).HRM poses challenges to a knowledge economy company. It includes additional cost to adjust to changes, wide range of reorganization that leads to reduced motivation and forced engagement to employees. HRM creates a need for a knowledge economy company in recession to introduce changes that they think may benefit the knowledge economy company as a whole. This will generate additional cost for a company during a difficult time of recession. Having such challenge can be more complex if the firm has limited knowledge of recession and its fundamentals.
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