HUMAN RESOURCES

MANAGEMENT
END TERM SUBMISSION

SUBMITTED BY: GURNOOR KAUR AND THAHLIYA ZUMAN C M

  
Reliance telecommunications LTD
Reliance telecommunications LTD is an Indian telecommunication company founded by Anil
Ambani in 2004.The headquarters of the company is in Navi Mumbai India. Reliance
telecommunication is the 15th largest telecommunication provider in the world with 150
million subscribers and the second largest telecommunication provider in India. The company
has segments like wireless and broadband in telecommunication industry.
The company achieved a high growth in telecommunication industry from the beginning
stage itself. Customer satisfaction and good company policies made them too competitive
with other companies. Reliance communications follows good human resource policies and
procedures even though it has some draw backs.
Vision of the company- Providing information, communication, entertainment services and
being the benchmark in customer experience, employee centricity and innovation is the main
vision of the company.
Mission of the company- meeting beyond customer needs and wants with a segmented
approach, relentless offering of services and products that are value for cash and stimulate
customers, offer a network experience that is best in the communication industry, make
reliance into an international brand which is an iconic brand by others and lead industry in
target to purchase and faithfulness.

RECRUITMENT AND STAFFING

The recruitment and selection (also recruitment and staffing) belong to value added HR
Processes. The recruitment is about the ability of the organization to source new employees,
keep the organization operating and improving the quality of the human capital employed in
the company. The quality of the recruitment process is the main driver for the satisfaction of
managers with the services provided by Human Resources.
The main goal of the recruitment and selection is about finding the best recruitment sources,
hiring the best talents from the job market, and keeping the organization competitive on the
job market. The recruitment and selection process are about managing high volumes of job
resumes and the ability to choose the right candidates and pushing them quickly through the
organization. The recruitment process usually needs a strong support by the dedicated
recruitment software solution. It can be provided externally, or the software can be run
internally. Many vendors provide the recruitment software solution, but the organization must
carefully choose the right solution to meet its needs.
The recruitment process needs a complete process description. It is not possible to solve the
job candidates individually. HR Recruiters must follow the process, and they must keep the
candidates flowing to right managers to achieve the consensus, and decision about the hire
quickly. The described process helps to set and achieve the right limits. The performance of
the recruitment process must be measured, analysed, and new, innovative recruitment
solutions must be implemented.
The recruitment is the expensive HR Process, and it eats a large proportion of the HR budget.
The recruitment is about time to hire and the cost of hiring in most organizations. The HR is
responsible for the proper management of the process to improve the performance of the
recruitment process to keep the managers satisfied.

The competitive HR management always starts with the competitive recruitment process. The
organization builds the competitive advantage with its employees. The recruitment process
must determine the best sources on the job market. The HR Recruiters must utilize the
recruitment sources and managers must make the right and quick hiring decisions. This is the
basic set-up of the competitive recruitment process.

The main sources of recruitment in Reliance communications are internal and

external recruitments.
Internal sources of recruitment are:
Promotion-This is a normal source of recruitment, which means providing higher position,
salary, and responsibilities to the employee. So, the position of the job vacancy is filled by
promoting the suitable employee within the organisation.
Transfers-It means transferring one employee to the other organisation without change in
salary and position, so the vacancy can be filled by transfer.
Advertising internally-Here the job vacancy is advertised within the organisation so the
existing employees in the organisation can apply for the post. So, the recruitment is taking
place inside the organisation.
External sources of recruitment are:
Selective recruitment through job boards-This is a major source of recruitment. To ensure
most appropriate qualified candidates are being applied for the major position. The agency
considers the following details for every position’s junior, intermediate, senior, Level of
education degree, diploma etc. Using these details the company determines which job boards,
communication channels, and advertisement strategies are suitable for attract the right skilled
candidates to apply for the job positions.
Management consultants-For the vacancies in the higher positions in the company,
management consultants are used to find the qualified and skilled employees. They act as a
recruiter on the behalf of the company.
Advertisement for public-The Company advertises the vacancy in internet, newspapers,
Television etc. And this will provide the details of the company, job and the qualification
required for the position.

NEED AND IMPORTANCE OF STAFFING

Keep space with new development-new developments are happening every day. A business
will have to keep phase with new changes. This will be possible only if competent persons
are employed who can adjust as per the new situation.
Manpower Development-manpower planning will have to be done in advance. The future
requirements of personnel will be estimated quite in advance. The new staff will be recruited,
people will be prepared for talking up higher responsibility jobs, and all this will be possible
with a well-planned staffing function.

PURPOSE & IMPORTANCE OF RECRUITMENT

 Attract and encourage more and more candidates to apply in the organization.
 Create a talent pool of candidates to enable the selection of best candidates for the
organization.
 Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
 Recruitment is the process which links the employers with the employees.
 Help increase the success rate of selection process by decreasing number of visibly
under qualified or overqualified job applicants.
 Help reduce the probability that job applicants once recruited and selected will leave
the organization only after a short period of time.
 Meet the organizations legal and social obligations regarding the composition of its
workforce.
 Begin identifying and preparing potential job applicants who will be appropriate
candidates.
 Increase organization and individual effectiveness of various recruiting techniques
and sources for all types of job applicants.

RECRUITMENT AND SELECTION PROCESS OF RELIANCE

The recruitment and selection are the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the strategic
advantage for the organizations. Recruitment process involves a systematic procedure from
sourcing the candidates to arranging and conducting the interviews and requires many
resources and time. A general recruitment process is as follows:
1. Identifying the vacancy:
The recruitment process begins with the human resource department receiving requisitions
for recruitment from any department of the company. These contain:
• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
2. Preparing the job description and person specification.
3. Locating and developing the sources of required number and type of employees.
4. Short-listing and identifying the prospective employee with required characteristics.
5. Arranging the interviews with the selected candidates.
6. Conducting the interview and decision making.
The candidates who have got minimum 60% aggregate over all eight semesters are eligible
for the recruitment of Reliance Company.
Selection procedure of Reliance Company consists of 3 processes. They are,
Written test (Aptitude)
Technical written test
Technical and HR interview
Candidate type required: Engineers (graduates/postgraduates) of Chemical / Mechanical /
Electrical / Instrumentation / Civil / Production / Industrial Engineering.
1. Written test (Aptitude)
In written test the number of questions is 75 and time limit for those questions are 35
minutes. The questions are from several topics like ratio, simple logics, comparisons, analogy
etc. The cut off marks for this round is 60%.
2. Technical written test
In this round number of questions are 50 and time limit are 25 minutes. Technical questions
are from electronics, networking subject. One must be strong in his/her subjects to clear this
round. For this round the cut off marks is 50%.
3. Technical and HR interview
After clearing both written test the final round is technical and HR interview. It will take 1
hour and based on National merit test. In this round some technical questions will be asked
and in HR round the questions will be asked about the company, projects, hobbies etc.
Candidates are required to produce original mark sheets/ certificates for verification during
Interviews.

SOURCES OF RECRUITMENT
Every organization has the option of choosing the candidates for its recruitment processes
from two kinds of sources: internal and external sources. The sources within the organisation
itself (like transfer of employees from one department to other, promotions) to fill a position
are known as the internal sources of recruitment. Recruitment candidates from all the other
sources (like outsourcing agencies etc.) are known as the external sources of recruitment.
Internal Sources of Recruitment
1. Transfers
The employees are transferred from one department to another according to their efficiency
and experience.
2. Promotions
The employees are promoted from one department to another with more benefits and greater
responsibility based on efficiency and experience.
3. Others are Upgrading and Demotion of present employees according to their performance.
4. Retired and Retrenched employees may also be recruited once again, in case of shortage of
qualified personnel or increase in load of work. Recruitment such people save time and costs
of the organizations as the people are already aware of the organizational culture and the
policies and procedures.
5. The dependents and relatives of Deceased employees and Disabled employees are also
done by many companies so that the members of the family do not become dependent on the
mercy of others.
External sources of recruitment
1. Press Advertisements
Advertisements of the vacancy in newspapers and journals are a widely used source of
recruitment. The main advantage of this method is that it has a wide reach.
2. Educational Institutes
Various management institutes, engineering colleges, medical Colleges etc. are a good
source of recruiting well qualified executives, engineers, medical staff etc. They provide
facilities for campus interviews and placements. This source is known as Campus
Recruitment.
3. Placement Agencies
Several private consultancy firms perform recruitment functions on behalf of client
companies by charging a fee. These agencies are particularly suitable for recruitment of
executives and specialists. It is also known as RPO (Recruitment Process Outsourcing).
4. Employment Exchanges
Government establishes public employment exchanges throughout the country. These
exchanges provide job information to job seekers and help employers in identifying suitable
candidates.
5. Labour Contractors
Manual workers can be recruited through contractors who maintain close contacts with the
sources of such workers. This source is used to recruit labour for construction jobs.
6. Unsolicited Applicants
 Many job seekers visit the office of well-known companies on their own. Such callers are
considered nuisance to the daily work routine of the enterprise. But can help in creating the
talent pool or the database of the probable candidates for the organization.
7. Employee Referrals/Recommendation
Many organisations have structured system where the current employees of the organization
can refer their friends and relatives for some position in their organization. Also, the office
bearers of trade unions are often aware of the suitability of candidates. Management can
inquire these leaders for suitable jobs. In some organizations these are formal agreements to
give priority in recruitment to the candidates recommended by the trade union.
8. Recruitment at Factory Gate
Unskilled workers may be recruited at the factory gate these may be employed whenever a
permanent worker is absent. More efficient among these may be recruited to fill permanent
vacancies.

FACTORS AFFECTING RECRUITMENT

The recruitment function of the organizations is affected and governed by a mix of various
internal and external forces. The internal forces or factors are the factors that can be
controlled by the organization. And the external factors are those factors which cannot be
controlled by the organization. The internal and external forces affecting recruitment function
of an organization are:
Internal factors affecting recruitment.
1. Recruitment policy: The recruitment policy of an organization specifies the objectives of
recruitment and provides a framework for implementation of recruitment programme. It may
involve organizational system to be developed for implementing recruitment programmes and
procedures by filling up vacancies with best qualified people.
2. Human resource planning: Effective human resource planning helps in determining the
gaps present in the existing manpower of the organization. It also helps in determining the
number of employees to be recruited and what qualification they must possess.
3. Size of the firm: The size of the firm is an important factor in recruitment process. If the
organization is planning to increase its operations and expand its business, it will think of
hiring more personnel, which will handle its operations.
4. Cost: Recruitment incur cost to the employer; therefore, organizations try to employ that
source of recruitment which will bear a lower cost of recruitment to the organization for each
candidate.
5. Growth and expansion: Organization will employ or think of employing more personnel if
it is expanding its operations.
External factors affecting recruitment.
1. Supply and Demand: The availability of manpower both within and outside the
organization is an important determinant in the recruitment process. If the company has a
demand for more professionals and there is limited supply in the market for the professionals
demanded by the company, then the company will have to depend upon internal sources by
providing them special training and development programs.
2. Labour market: Employment conditions in the community where the organization is
located will influence the recruiting efforts of the organization. If there is surplus of
manpower at the time of recruitment, even informal attempts at the time of recruiting like
notice boards display of the requisition or announcement in the meeting etc will attract more
than enough applicants.
3. Image/goodwill: Image of the employer can work as a potential constraint for recruitment.
An organization with positive image and goodwill as an employer finds it easier to attract and
retain employees than an organization with negative image. Image of a company is based on
what organization does and affected by industry. For example, finance was taken up by
fresher MBA’s when many finance companies were coming up.
4. Political social- legal environment: Various government regulations prohibiting
discrimination in hiring and employment have direct impact on recruitment practices. For
example, Government of India has introduced legislation for reservation in employment for
scheduled castes, scheduled tribes, physically handicapped etc. Also, trade unions play
important role in recruitment. This restricts management freedom to select those individuals
who it believes would be the best performers. If the candidate can’t meet criteria stipulated by
the union but union regulations can restrict recruitment sources.
5. Unemployment rate: One of the factors that influence the availability of applicants is the
growth of the economy (whether economy is growing or not and its rate). When the company
is not creating new jobs, there is often oversupply of qualified labour which in turn leads to
unemployment.
6. Competitors: The recruitment policies of the competitors also affect the recruitment
function of the organisations. To face the competition, many a times the organisations have to
change their recruitment policies according to the policies being followed by the competitors.

RECRUITMENT POLICY OF THE COMPANY

In today’s rapidly changing business environment, a well-defined recruitment policy is
necessary for organizations to respond to its human resource requirements in time. Therefore,
it is important to have a clear and concise recruitment policy in place, which can be executed
effectively to recruit the best talent pool for the selection of the right candidate at the right
place quickly. Creating a suitable recruitment policy is the first step in the efficient hiring
process. A clear and concise recruitment policy helps ensure a sound recruitment process.
It specifies the objectives of recruitment and provides a framework for implementation of
recruitment programme. It may involve organizational system to be developed for
implementing recruitment programmes and procedures by filling up vacancies with best
qualified people.
Components of the recruitment policy
• The general recruitment policies and terms of the organization
• Recruitment services of consultants
• Recruitment of temporary employees
• Unique recruitment situations
• The selection processes
• The job descriptions
• The terms and conditions of the employment
A recruitment policy of an organization should be such that:
• It should focus on recruiting the best potential people.
• Unbiased policy.
• To aid and encourage employees in realizing their full potential.
• Transparent, task oriented and merit-based selection.
• Weight age during selection given to factors that suit organization needs.
• Optimization of manpower at the time of selection process.
• Defining the competent authority to approve each selection.
• Abides by relevant public policy and legislation on hiring and employment relationship.
• Integrates employee needs with the organizational needs.

PROCESS OF RECRUITMENT AND SELECTION

The Recruitment & selection process starts with the function of Human Resource Planning.
Recruitment Techniques
Recruitment techniques are the means or media by which management contracts prospective
employees or provides necessary information or exchanges ideas or stimulations them to
apply for jobs. Management uses different types of techniques to stimulate internal and
external candidates.
Techniques useful to stimulate internal candidates are:
a) Promotions: Most of the internal candidates would be stimulated to take up higher
responsibilities and express their willingness to be engaged in the higher-level jobs.
b) Transfers: Employees will be stimulated to work in the new sections or places in
management wishes to transfer them to the places of their choice.
Techniques useful to stimulate external candidates are:
a) Recommendations of present employees: Management can contact, persuade the outsiders
to apply for job in the organization through the recommendations to the candidates by the
present employees.
b) Scouting: Scouting means sending the representation of the organizations to various
sources of recruitment with a view to persuading or stimulating the candidates to apply for
jobs. The representatives provide information about the company and exchange information
and ideas and clarity the doubts of the candidates.

MODERN SOURCES AND TECHNIQUES OF RECRUITMENT

Several modern recruitment sources and techniques are being used by the corporate sector.
They are:
• Walk-In
• Consult-In
• Business Alliances
• Tele-Recruitment
The selection process consists of seven steps:
1. Initial screening interview
2. Completion of the Application form
3. Employment tests
4. Comprehensive interview
5. Background investigation
6. Physical examination and
7. Final employment.
Each of these steps represents a decision point requiring some affirmative feedback for the
process to continue. Each step in the process seeks to expand the organization’s knowledge
about the applicant’s background, abilities, and motivation, and it increases the information
from which decision makers will make their predictions and final choice.
1. Initial Screening
As a culmination of our recruiting efforts, we should be prepared to initiate a preliminary
review of potentially acceptable candidates. This screening is, in effect, a two-step procedure:
i. The screening of inquiries.
 ii. The provision of screening interviews.
2. Completion of Application Form
Once the initial screening has been completed, applicants are asked to complete the
organization’s application form. The application form gives a synopsis of what applicants
have been doing during their adult life, their skills, and their accomplishments.
3. Employment Tests
Organizations historically relied to a considerable extent on intelligence, aptitude, ability, and
interest tests to provide major input to the selection process. Even handwriting analysis and
lie detector tests have been used in the attempt to learn more about the candidate-information
that will supposedly lead to more effective selection.
4. Comprehensive Interview
These individuals who are still viable applicants after the initial screening, application form,
and required tests have been completed are then given a comprehensive interview. The
applicant may be interviewed by personnel department interviewers, executives within the
organization, a potential supervisor, potential colleagues, or some combination of these. It is
designed to probe into areas that cannot be addressed by the application form or tests.
5. Background Investigation
The next step in the selection is to undertake an investigation on those applicants who appear
to offer potential as employees. This may include contacting former employers to confirm the
candidate’s work record and to obtain their appraisal of his or her performance, contacting
other job-related and personal references, and varying the educational accomplishments
shown on the application.
6. Physical Examination
The last step prior to the final “go-on-go” decision may consist of having the applicant take a
physical examination.

MAJOR HR ISSUES FACED BY RELIANCE COMMUNICATION

1.CASH AND COMPENSATION ISSUES:
Cash and compensation issues is a major problem faced by HR managers in reliance
communications. There is more pressure on HR function to pay more incentives and basic
pay for the employees. However, reliance paying basic salary to each individual employees
the company faces more pressure to meet the employee benefits.
2.EMPLOYEE RETENTION ISSUES:
Most of the companies face the same problem of employee lay-offs. So, the organisation
must prevent the issue by retaining the employee by providing good working condition and
benefits whichever the employees need. In reliance industries there are so many employees
leave the company due to lack of co-ordination between workers. The organisation tries to
check the issue but fails sometimes.
3. POOR HR POLICIES:
The policies and practices adopted by the HR managers regarding their networking sector is
an important example. They brought some new plans in mobile networking sector like low
call rate for mobile users, low internet browsing charge. Etc., but the competitors like
AIRTEL communications, BSNL network, VODAFONE facilitated some more exciting
offers than the reliance. In that situation the Reliance communication hesitated to change
their HR policies and techniques.

SUGGESTIONS TO OVERCOME THE HR ISSUES

If the company has no good HR strategies the company cannot exist in the highly competitive
world. Reliance communication is facing some HR issues as mentioned above, to overcome
this problems company must do some good HR restructuring process in the company. The
first main issue is:
Cash and compensation issues- As it is a major problem the company must find a good
solution to overcome this issue, the suggestion to solve this problem is to pay cash and
compensation based on the experience of the employees. As mentioned above the company is
paying a basic salary to everyone, first the company must change this basic payment method,
and the compensation and benefits must be paid according to the experience and skills of
everyone. So, the company can reduce the cost of labour so the company can meet the
compensation and benefits of everyone according to the profit earned by the company.
Employee retention issues– Retention of employees is another HR issue faced by the
company, nowadays a lot of employees are leaving the company due to high pressure of work
and lack of co-ordination between employees are the main employee retention issues faced
by reliance communication, to reduce this problems reliance must provide good working
environment to reduce the pressure of work, communication is another way to overcome this
problem good communication between the management and staff will make a good
understanding between the employees and management, this will increase employees
confidents and reduce the work pressure. A high rate of employees resigning their job and
going to other companies who offer better working environment. Better co-ordination is
another way to improve employee retention-ordination will improve better relationship
between employees and management. And this will result increase employee’s confidence
and work efficiency.
Poor HR policies- Due to high competition in communication industry lots of companies
introducing new HR techniques to improve their company goodwill. Reliance communication
is following the traditional HR policies and plans so the company is facing high market
competition from other companies, to exists in the competitive market company must
improve their HR strategies and policies. Nowadays companies are providing good offers to
the employees so the company must realise the problems and try to overcome such issues.
REASONS BEHIND SUCCESS OF HR PRACTICES.
Businesses rely on human resources departments to handle key functions associated with
employee hiring, compensation and relations. To add value and support the success of the
company, HR professionals must understand the business, develop, and execute functional
competencies, and serve as internal consultants to management. Key areas supported by HR
departments involve workforce planning and staffing, managing direct and indirect
compensation schemes, employee relations, performance management, training, and legal
compliance.
Sourcing and Consulting
The correct job placement is a big part of any company's success. Hiring talented individuals
is only part of the equation. Placing the right person in the right position is important as well.
Screening and recruiting qualified employees are a core responsibility of the HR department.
To properly identify potential candidates, HR professionals must understand the needs of the
organization. This means your business should create accurate job descriptions and identify
the skills, knowledge, and experience level of the required personnel. The HR department's
job is to maximize company funds by recruiting new hires and assisting line managers in the
evaluation of current staff for promotions and lateral movement.
Competitive and Equitable Compensation
Employee recruitment, retention and overall morale depend on sound compensation practices.
HR departments must create, monitor, and maintain company pay scales that are both
competitive and equitable. This begins with job analysis. HR staff should properly categorize
all positions into exempt and non-exempt status in accordance with the Fair Labour Standards
Act. Another key task is to audit salaries to make sure employees are treated equitably and
not discriminated against in any way. HR staff should also help ensure that managers and
salespeople are offered competitive compensation plans to keep them motivated. The HR
department often designs and monitors the administration of these plans.
Performance Evaluation and Training
A manager's role includes motivating and coaching staff, defining the behaviours essential to
support success, and evaluating employee performance. HR professionals help support line
management by creating and implementing performance appraisal systems. As internal
consultants, HR personnel collaborate with managers by reviewing performance issues and
assisting management with performance improvement processes. Additionally, some
companies have HR staff design and deliver training programs that accelerate employee
development.
Overseeing Compliance
Lawsuits, fines, and penalties affect the financial health of a business. Complying with
federal and state labour legislation is mandatory in any successful business. A prime
responsibility of human resources involves creating employee manuals that communicate
appropriate behaviours in the workplace. Educating the workforce on zero tolerance policies
regarding discrimination and harassment enforces the requirement of fair and equitable
treatment of all employees. HR staff must keep abreast of labour laws and continually
monitor and audit the organization’s employment practices.
Budget Control
The HR department develops methods for trimming the costs associated with workforce
management, thus curbing excessive spending, and helping to save the company money in
the long run. These methods may include negotiating better rates for employee benefits such
as healthcare insurance. In addition, the HR department studies and analyses employment
trends, the labour market and salaries based on job functions to ensure the company’s wages
are competitive and realistic. Since some small businesses have strict budgets to which they
must adhere, this function of the HR department is particularly helpful.
Employee Satisfaction
For better or worse, the HR department has the responsibility of determining whether
employees are satisfied, not only with their supervisors but also the job and related duties as
well. Since it can be difficult to measure satisfaction as it is an ambiguous measurement at
best, HR specialists must carefully design employee surveys, oversee focus groups, and
implement an exit interview strategy to determine how the company can improve in relation
to its employees. In other words, the HR department determines the causes and/or reasons
behind employee dissatisfaction for current or previous employees and addresses those issues
in the best way possible to boost morale and motivation throughout the company.
Training and Development
Human resource specialists conduct assessments for the company’s employees to determine
the type of training and skills employees must have to perform their duties properly and
efficiently. Although it is important to ensure that all employees have the qualifications and
skills necessary to meet the demands of a position, new companies or businesses in the
expanding stage may especially benefit from identifying training needs for existing
employees. Companies often task this responsibility to the HR department because it is less
expensive for these specialists to handle training and development than it is to hire more
qualified candidates or additional staff. In addition, this strategy may also improve employee
retention and thus reduce turnover.
Conflict Resolution
There will be conflicts in the workplace, regardless of how satisfied employees are with their
jobs, their managers, and their co-workers. Given the diversity of work styles, personalities,
levels of experience and backgrounds of employees, it’s a given that arguments and
disagreements will happen. An HR manager or specialist specifically trained to handle
relations between employees can identify and resolve these conflicts between a manager and
employee or two employees and thus effectively restore positive working relationships
throughout the organization. In addition, being able to resolve conflicts may increase
employee satisfaction and increase the morale of the workplace.
Performance Improvement
Yet another responsibility of the HR department is the development of performance
management systems. Without a human resources specialist to construct a plan that measures
employee performance, employees may end up in jobs that aren’t suitable for their expertise
and skills. Not only will this contribute to employee dissatisfaction, but individuals who
consistently fall below the employer’s expectations for performance may sneak by on the
payroll, thereby costing the company money on low-performing employees that are not
helping the business to succeed.

REASONS BEHIND THE FAILURE OF HR PRACTICES

Software Requirement
Prior to implementation, many businesses are not clear if they really require HR software or
not. In fact, various implementation projects fail before they could not even start. Most of the
organizations already have HR management software in place but owing to issues in
reporting, efficiency or integration associated with the current system, they are convinced that
investing in a new one would be the right decision. As such, companies bring in large and
expensive software when a simple upgrade or small add-on application such as employee
portal or better reporting can easily solve their purpose.
Lack of Clear Objectives
Before implementing the HR software for business, it is important to be clear about the
expectations. The absence of objectives is one of the most common contributing factors
related to the failure of implementation. Many enterprises undertake a project without well-
defined and measurable goals, which leads to various challenges and consequently
controlling the scope of the software. Clear objectives here mean defining the critical
business processes, deadlines, financial benefits, etc. Even for calling a project unsuccessful,
a company needs to measure the pre-implementation assessments of significant objectives.
Without a certain degree of measurement beforehand, it gets difficult to determine issues for
failure or success of the project.
Improper Planning or Poor Project Management
For any HR tech to do wonders for the business, a strong and detailed plan is an absolute
requirement. Poor planning or improper project management will not just add to the failure of
HR software implementation, but it often leads to staff embarrassment as well as job loss.
When the project management is unrealistic, not detailed, or specific enough, it is bound to
result in failure of the project implementation. It has been seen that companies frame high-
level plans having assumptions at a wide level, but an essential part they underestimate
during this stage is the number of business changes involved. For successful HR software
implementation, businesses need to make logical series of tasks to know the status of the
project as well as determine any loopholes in the process.
Expecting the Software to Fix All the Issues
Most of the businesses forget the fact that HR software is simply a tool or an enabler; it
cannot fix all the problems until and unless the company’s workflow is efficient. Despite how
obvious it may sound, but this is among the most common contributing factors for project
implementation failure. Irrespective of how advanced or robust the HR software is if the data
is outdated and duplicate, you might end up with incorrect automation and data.
Deficiency of Staff Training & Support
Lack of appropriate training and support from the management can ruin a project. The user
adoption rates decline due to multiple issues, but the two crucial reasons are the absence of
training and much-needed support before and after the HR software implementation. What’s
surprising here is that many times, it is not due to insufficient training or support, but because
these are not provided to the staff or employees in the right format. When implementing new
software in business, the workforce needs knowledge along with some new skill set; not
taking the personal development of employees seriously is a quick route to HR software
implementation failure.
Underestimating the Power of Right Resources
Not involving the resources having right skills at the right time is another major reason that
accounts for project failure. It is imperative on the part of business project managers to
conduct skill assessments of employees at the initial phase of the software implementation.
This will help them to understand the intricacies of the project, how to roll it out successfully
and make it a part of other employee’s workloads.
Lack of Communication to Various Stakeholders
Many HR software implementations derail as the project management is more concerned
about the installation and running phase. They forget to communicate the employees about
the new software installed in their systems. For HR software system implementation, the
management expects employees to update their records, access HR advice via new mediums
or even get payslips online. Be it any kind of change in the system, success can only be
achieved when there are two-way communication and proper engagement of core
stakeholders at almost all the levels.
Using & Adding Every Feature of the HR Software Straight Away
This can either attribute to the success or failure of new HR software in a business. It is
recommended to not implement each inherent feature right away. To achieve success, it is
better to adopt a phased approach i.e., have a list of key objectives and work in that direction.
Further, too many customizations, in the beginning, can drag the project down, cost overrun
and keep success away from sight.
Not Keeping Track of Changes
Mostly neglected, lack of tracking changes in the HR software can also fuel up the
implementation failure. Every single change made in the working of the software costs
money and time. It is essential to evaluate every change to determine that the cost of change
implementation does not outweigh the benefit involved with it. For instance, a little change in
the interface of payroll software can have a huge impact on its collaboration with the finance
system.
Insecure Hardware to Support the HR Software
Having an unstable network platform or insecure hardware can pose a threat to the system
integrity that might end up in burying HR software implementation. It is extremely critical in
the case of hosted solutions that offer poor internet connectivity. Prior to implementing
hosted HR software, ensure that that you have reliable and fast internet connectivity.
Too Much Consultant Dependency
Relying too much on a consultant for HR software implementation can also contribute to the
downfall of the system. Most of the projects involve consultants for best practices, expertise,
and extra resources they bring along. Although their involvement seems helpful for a project
there can be a risk of becoming too much dependant on the consultants. Businesses need to
have an explicit plan for imparting the knowledge from the consultant to the company’s
employees as the project unfolds.
Inadequate Testing of HR Software
Insufficient testing of new HR software can doom the project implementation. As it is a
system that consists of employees’ confidential details and may integrate with the payroll
software, a small mistake can impact the entire project adversely. Testing must be seen as a
rectifying stage where you can locate bugs and glitches in the automated system. Neglecting
the testing phase prior to project implementation can increase the risk of software not
performing functions well or dissatisfied end users.
An outdated employee handbook
Every business, no matter how small, should have an up-to-date employee handbook. If you
don’t put the most current dos and don’ts in writing, you’re asking for trouble. In addition,
laws change, which may significantly alter the applicability of your policies. Even a few
pages outlining acceptable and expected behaviour provides employees with tangible
guidelines. The employee handbook should be updated about every two years, and all
employees should sign an acknowledgment form stating that they received the publication
and will abide by its policies.
Failing to document performance issues
Written policies and standard operating procedures are the boundaries that govern employee
conduct. When a violation occurs, it must be accurately and thoroughly documented.
Although it may seem time-consuming to jot down in a file that someone was reprimanded
for repeated tardiness, it’s important evidence that can support a decision to terminate that
individual for unsatisfactory job performance, for example. In addition, when a company is
consistent in its application of performance issues, it’s better able to address potential legal
issues that may arise in the future, such as a discrimination claim.
Incomplete employee files
For compliance reasons, it’s very important to keep records of all the personnel documents
attached to your employees’ work histories. It’s also a good practice to make sure the proper
documents are kept in the employee performance file. Some documents that contain personal
information, such as leave and disability forms, should be kept in a separate folder since these
are personal in nature and aren’t needed to manage an employee’s performance.
Hasty hires and inaccurate job descriptions
Hurried hiring and promotion processes can lead to a host of problems for employers. Before
you even consider hiring someone, take time to flesh out exactly why you’re hiring and what
skills are necessary in the ideal candidate. A few hours spent crafting a solid job description
can prevent countless hours of future hassle. For example, when you’re recruiting a
candidate, they may have impressive skills, but that skill set must also address your needs. A
detailed job description helps you stay focused on exactly what you need in a potential
candidate.
Disregard for training
Taking time to train your employees is a valuable investment in the future of your business.
By including training in the onboarding process, your employees may become more fully
engaged and understand how to use their skills to best benefit your company. Employers who
spend time on training also get training’s indirect benefit: employees who feel like they’re
valuable and capable of doing more for your organization. It’s important that the employee’s
performance, including skills and areas of opportunity and growth, are accurately reflected in
their performance reviews.
Inadequate HR policies
Don’t overlook the importance of an internal HR audit. Set aside time annually to make sure
your HR policies are current and complete. For example, many businesses don’t include a
vacation pay out policy in their handbooks or a complaint process or disaster and workplace
violence plan for the organization. This creates situations where employees may quit with
unused vacation time. If they don’t know ahead of time how that time will be treated, they
will likely complain. Also, sometimes the unthinkable happens and disaster strikes. By
providing clear guidelines on how to respond prior to an incident, you can help minimize the
impact it might have on your employees and your business.
Employment compliance ignorance
Managers must be fluent in employment laws and regulations. In addition, they must have
access to a resource that can keep them up to date in the changing employment environment.
Misclassifying employees as independent contractors when they’re not, or as exempt from
overtime when they shouldn’t be, can be costly oversights. Prevention is key. Take time to
identify what regulatory agencies govern your industry and what laws must be followed.