hr functions and practices
Ethical practice is the application of ethical values in organisational behaviour. The report explains the origins of HRM, examines issues in relation to HR functions, HR roles and HR strategies and addresses the ongoing debate around how HR impacts on organisation performance. 2.3 Self-managed and effective teams However, understanding and managing sources of cost and value creation can be a challenging task. They have served as guidelines for many HR professionals. The procedures were complicated, chaotic and missed any essential measurement of the performance and … 2.7 Making information easily accessible to those who need it To stay up to date and learn the skills needed to do HR in the 21st century, check out our courses at the Academy to Innovate HR! Human resources functions are significantly different from HR practices. In addition to formal learning, on-the-job learning also plays an important role. Creating a safe, healthy and happy workplace ensures that employees feel at home and stay with the organization for a very long time. Human Resource Management functions can be of three types like Operative, Managerial, and advisory. These activities improve employees' job skills in their current positions and equip them with skills and expertise for cross-functional work that can increase their value to the organization. The Employee Polygraph Protection Act outlaws almost all uses of the polygraph machine for employment purposes. Facilitating this helps to build an efficient and effective organization. Recruitment practices underlie recruiting activities and functions such as sponsoring career fairs at colleges and universities with diverse student populations, advertising job vacancies across several venues to reach a broad audience. This is where learning and development come in. This sort of compensation can take the form of financial (base) pay and employee benefits. When employees are laid off, for example, it’s usually the organization that pays the price. Moller-Maersk Group’s strategic goals. In literature, this alignment has also been referred to as strategic Human Resource Management. strive for best fit). The HR professional contributes to the organization by constantly assessing the effectiveness of the HR function. Creating and nurturing high-performance teams is one of HR’s key responsibilities. The key theme in this article is that the HR managers have to take care of the employee lifecycle from hiring to exit and hence, they have a critical and crucial role in the organization. He is a globally recognized HR thought leader and teacher in the future of HR. For instance, it discourages bad employees to leave. Functions of Human Resource Management ☆ Operative Functions. When implemented, these best practices form the basis of good Human Resource Management. They also sponsor change in other departments and in work practices. According to Marchington and Grugulis (2000), “the reality is that employment security is only offered when and for as long as it is convenient to the employer”. You want to select employees with potential for growth, invest in them with learning and development, and reward them appropriately when they show superior performance. The same goes for selective hiring, extensive training, and contingent compensation. Let’s see them one by one. This depends on the characteristics of employees that fit what the organization is looking for. This is an area where a lot of large companies struggle: How do you keep track of who knows what, so you know where to go to with your questions? But the HR function is a key player within the organization’s compliance structure as well. Human resources (HR) professionals conduct a wide variety of tasks within an organizational structure. 1. This means that the HR strategy and subsequent HR activities should be aligned with the organization´s strategy for optimum efficiency (a.k.a. Being informed about the business is also something that employees often mention as something they find important in attitude surveys, as well as having a chance to contribute to and influence decisions affecting their working life. This means that different ideas are generated to help achieve the goal. According to Pfeffer, there are two reasons why information sharing is so important. Recruitment is the process of captivating, screening, and selecting potential and qualified candidates based on objective criteria for a particular job. Ruth resides in the nation's capital, Washington, D.C. What Is the Difference Between HR Activities vs. HR Practices? HR Metrics & DashboardingCertificate Program, Gain in-demand skills to future proof your HR career. Hiring and Recruiting One of the primary functions of the human resources department is to oversee hiring and recruiting within an organization. Human Resource Management best practices: a reality check, The best teams are cognitively diverse and psychologically safe, the Economist’s Lifelong Learning special report, The Top 22 Virtual HR Conferences to Attend in 2021, Analyzing Resilience and Well-Being at Work: a Multi-Level Perspective, What HR Can Learn from 2020 (incl. Practices are part conceptual, part implementation of an HR strategy, comprised of systems that follow the normal or customary way of doing business. And what capabilities do you train your employees on? As an additional effect, it discourages hear-say and negative informal chatter. It turns out that some of these best practices contradict each other. 5. —Vanessa Van Petten, Science of People. High-performance teams are crucial for any company when it comes to achieving success. Seven HR Best Practices First of all, if you hire the right people, you want to compensate them above average. Another example is training. In Japanese organizations, this is expressed with common canteens, company uniforms, and similar sickness and holiday entitlement. Our data is based on 65 interviews, which were held (as part of larger study of HR-function excellence) with HR 3. He regularly speaks at conferences about HR training and upskilling. Human resources (HR) professionals conduct a wide variety of tasks within an organizational structure. The term "best practices" refers to the HR systems that have the greatest impact on the workforce and the organization. A brief review of the core functions of human resource departments will be useful in framing the more common activities a human resource professional will conduct. ... in a ddition, good HR practice will surely . That’s why senior managers, most of which fit this category, are often offered these benefits. Human resources transactional functions include benefits administration, record keeping and new employee and payroll processing. hr strategy that aligns hr functions and practices October 19, 2020 / in / by admin HR strategy that aligns HR functions and practices, staffing, training, compensation, and employee evaluation with A.P. It truly involves employees in the business. The 7 Human Resource best practices presented below have been proposed by Jeffrey Pfeffer. The first one is best fit, the second is best practices. Cisco has embraced this idea, and others are following. Increased focus on feedback, coaching, and peer learning plays into this. Otherwise, what’s the use of retaining them? We’ll skip the extensive scientific debate on the merits and flaws of each approach. HR recruitment and selection practices generally are based on the organization's mission and the workplace culture. One of the tools that can be used for this is Organizational Network Analysis. Staffing emphasises the recruitment and selection of the human resources for an organisation. In this article, we’ll focus on the best practices in Human Resource Management. Human Resources needs to add value to the business operations. Human Resource best practices Firstly, open communication about strategy, financials, and operations creates a culture in which people feel they are trusted. In today’s digital world, there are a lot of different recruitment tools we can use to make the right selection. Employment security enables employees to go home after work and provide for themselves and their families. 2.4 Fair and performance-based compensation Benefits alone can account for 30% of total labor costs, and are rising at a rapid rate, largely due to increases in health care benefits. This HR best practice states that companies should invest heavily in training time and budget for its employees. This ”people operation” department is set up to use a combination of science and human resources. These are great ways to create employee commitment to the company’s long-term vision and retain high potentials. You can’t just hire anyone; you want people who are fit for the job. Secondly, you want to couple individual rewards with the different types of contributions that employees make. Connect with Erik on LinkedIn. Organizing function of the HR manager of Woolworths include development of various facilities to be provided to employees such as organizing training or safety programs for employees. functions of employees, job analysis tends to g ather information on each job and subsequently . It’s more popular than ever for an employee to reside in a different state, or even country, than the corporate office. When HR practices and HR activities are aligned and working hand in hand, HR departments have the ability to thrive, and your company benefits. In line with the previous, this type of co-ownership is usually not meant for all employees. By coupling organizational performance outcomes with individual rewards the individual is incentivized to maximize this outcome. Finally, HR needs to encourage different teams to work together in the organization. These are the people that will add the most value to your company so you want to retain them and pay them fairly. The report concludes by emphasising that good HR practices are not enough in … The goal of this process is to attract the qualified applicants and to encourage the unqualified applicants to opt themselves out.Before starting the process of recruitment, the companies must execute proper staffing plans and should grade the number of employees they are going to need… Functions of human resource management described the scope of HR department. A third example is the reduction of status differences and information sharing. Google’s hr department strives to build strong employer-employee relationships. These (pre-employment) assessments are used to uncover three key candidate characteristics. This means that the employment security best practice, combined with selective hiring leads to more value than individual practices. The human resources (HR) function is at the center of most employers’ efforts to identify, hire and retain the people the organization needs to execute its strategy and achieve its goals. HR manager is also responsible to direct its staff members about various policies and practices … Human Resource best practices have been around for decades. implement best practices). Learning has become a way to stay innovative, grow faster, and sustain a competitive advantage. However, if you’re consistently hiring world-class performers, an above-average compensation is a must. Information sharing is essential. Here are ten innovative HR practices and policies that can amplify success, both with recruiting and maintaining employee satisfaction. More and more companies vigorously keep track of their recruitment metrics to see how well they are doing in this regard. These should also align with the organizational strategy. ness of their HR function. The next generation of workers is actively looking for development opportunities and sees these as a way to grow in their profession. Several human resource functions and practices help managers attract and retain employees, operate within the boundaries of state and federal laws, and plan for future organizational needs. We all know that teamwork is crucial in achieving goals. Function evaluation is a more technical role of HR that involves comparing various functions in terms of qualification, the quality, and availability of workers, job location, working times, the economic situation, job responsibility, and how much value this job adds to the organization. Learning is, of course, also important for HR. Implementing flexible work schedules, providing employees with telecommuting options and training supervisors to spot signs of workplace stress suggests the organizational culture supports employees achieving work-life balance. These insights help us understand further the roles of international corporate HR functions that are being identified. In HRM research, there are two schools of thought on how to manage people. Contingent compensation is the fourth Human Resource best practice. The way formal training is provided in organizations often offers a number of concerns: In other words, extensive training only adds value as long as it helps individuals and teams contribute to the strategic goals of the organization. Human resource management is the organizational function that manages all issues related to the people in an organization. which HR practices come into being and how they are implemented and coordinated. Interviews, onboarding, performance reviews and more can benefit from strategic input to create better experiences for candidates and employees. Best practices are a set of Human Resources Management processes and actions that work universally. Every HR department must set-up non-financial rewards programs like mentorship lunches, featuring special employees or better parking. This best practice holds that if a company can consistently hire top performers, they will outperform their competition. The first one is best fit, the second is best practices. She holds a Master of Arts in sociology from the University of Missouri-Kansas City. Professional development supports an organization's succession planning strategy by preparing future leaders for higher-level jobs and more responsibility. The best practice school argues that there is a set of universal HR processes that lead to superior business performance. To promote the overall success of their organization, they champion the identification of the organizational mission, vision, values, goals and action plans. It has everything to do with compensation and benefits. This best practice in HR is rooted in the egalitarian practices of Japanese management. hard to replace) who are very valuable to the business. Ruth Mayhew has been writing since the mid-1980s, and she has been an HR subject matter expert since 1995. The reality is simpler: if you consistently hire better candidates than your competition, you will create a competitive edge. According to Gallup, younger employees rate learning and personal growth as much more important compared to older generations. In HRM research, there are two schools of thought on how to manage people. When these best practices are combined (or bundled), their impact is even more profound. Core Functions of HR. A brief review of the core functions of human resource departments will be useful in framing the more common activities a human resource professional will conduct. Take employment security. These ideas are then processed and combined, resulting in the best ones being selected. According to Kurt Lewin, there’s nothing more practical than a good theory. Several other laws impact staffing practices as well. Examples include communication software, feedback tools, project management tools, and other task and goal setting software. It also creates a sense of ownership for the employee. 1. By encouraging open communication and sharing relevant information, you create a culture of improvement in which employees feel free to give suggestions and collaboratively help to improve the business. Think of profit sharing, shared ownership, or stock options for instance. Understanding these processes is one of the main responsibilities of a manager. Paying people above the norm also has a number of potential disadvantages. These are performance-related rewards. The first Human Resource best practice is employment security. This concept of security is essential and underpins almost everything HR does. 5. Having an employer who enables the employee to provide for themselves and their family is, in essence, the number one reason why people come to work. This is the reason why a lot of management courses focus on it. Guaranteeing employment security will only benefit you when you have high performing employees. HR practices involve mostly the strategic operations of HR, including planning, organizing and managing the … Lepak & Snell (2002) offer a good model to assess how important individual employees are. These contractors lack the security that traditional employees have and provide the company with additional flexibility. Compensation and benefits often are viewed together, presenting a comprehensive view of how employers reward their employees. Recruitment and selection Recruitment is the process of captivating, screening, and selecting potential and qualified candidates based on objective criteria for a particular job. The human resources function includes two key areas, HR activities and HR practices. In this article, we’ll go over the 7 best practices for HR. This is in line with the Kirkpatrick-Philips model, which helps assess training effectiveness. HR Metrics &DashboardingCertificate Program, Learn to drive fact-based HR decision-making, Keep up-to-date with everything Digital in HR, 2.2 Selective hiring: Hiring the right people, 2.4 Fair and performance-based compensation, 2.6 Creating a flat and egalitarian organization, 2.7 Making information easily accessible to those who need it, 3. This is a costly process. This is part of the often quoted 70|20|10 rule: Learning is also becoming increasingly important for the latest generations, such as the Millennials and Generation Z. However, it is almost impossible to consistently hire top performers. ... Good HR strategies can enhance tactical HR functions across the employee life cycle. The term VUCA (volatile, uncertain, complex and ambiguous) first appeared in the media in 1987 by the Army War College.It has taken just a few weeks … These can facilitate communication and help teams be more efficient. This enables an organization to bring in employees who add value. Conclusion. An example. Although there are many functions of human resource management, following is the list of five major functions. As an organization, you want to specifically retain your “Criticals”. the most important skill), A Practitioner’s Guide to Organizational Effectiveness. Every organization has its human resources, which should be managed effectively, because the success of the organization in the competitive environment is only due to the human resource factors, as all the other resources like financial, technological etc are common to almost every organization. This name change represents the inventive practices that come from this department. These larger entities also need to work together. Commonly used selection instruments are structured and unstructured interviews, IQ tests, personality assessments, work tests, peer assessments, and reference checks. This is an example that shows how different best practices work together to provide more value than they would alone, in this case, selective hiring, contingent compensation, and employment security. The extent to which HR department staff handle these transactional functions depends on their expertise, size of the workforce and the departmental budget. There is both a formal contract (labor for money) and an informal contract (you put in some extra effort, we take good care for you) between the employee and the employer. A final example is selective hiring. deliver this evidence. Synergies between HR best practices: Bundles, 4. HR practices at Google are named ‘People Operations‘. HR management training and development functions reflect promotion-from-within practices and support employees' work goals. When this employment security is threatened, for example when there is a restructuring or a layoff, you see this immediately ripple through the organization. This article describes the 7 Human Resource best practices, from hiring and training to offering job security and the creation of an open culture in which people can share knowledge and ideas. Recruitment: This is the most challenging task for any HR manager. This practice sounds nice in theory but in reality, companies are increasingly working with flexible contractors. Not offering these opportunities is related to higher levels of employee turnover. In many cases, the department's budget can support outsourcing these transactional functions, thus leaving time for HR staff to devote its attention to HR strategic management instead of focusing on personnel administration-type duties. A team is usually part of a larger entity, like another team or a department. They are people with unique skills (i.e. Bundles create synergies. Money is not the only driver of strong employees. Thanks to the internet, everyone is connected and can learn anything, anytime, anywhere. 1. 4. Belbin’s Team Role Inventory is a commonly used tool for team creation and cooperation. However, a look at compensation by itself offers a clearer picture of HR management practices because total employee wages, including salary, benefits and related taxes, can comprise up to 70 percent of an employer's cost to operate her business, according to a 2019 report. 1. After recruiting the best people, you need to ensure that they remain the frontrunners in the field. Human Resource best practices. Managing scheduling logistics, modifying technology for remote access and conducting training sessions are essentially transactional functions. Ways to Promote Professional Development in the Workplace, Differences Between Transactional HR & Strategic HR, HRMP: Four Basic Functions of Human Resource Management, Paycor: The Biggest Cost of Doing Business -- Labor Costs, Ceridian: Better Human Resource Management - An Introduction to Ceridian's Best Practices Case Studies, Six Main Functions of a Human Resource Department. Pfeffer wrote two books on this topic: In these books, he proposes a set of best practices that can increase a company’s profit. Streamline the HR workflow by using technology to improve communication and accessibility. Some companies have a dedicated human resources department, while other companies rely on one person to carry out these responsibilities. Safe, healthy and happy workplace. The best teams are cognitively diverse and psychologically safe. Several factors need to be taken into consideration, including the key deliverables that are to be used in a selected organisation and the investments in HR practices and programs that drive these outcomes. Every employee is a valuable member of the organization and should be treated as such. This short report provides HR executives with the data to compare their current HR structure to that of their peers. According to the Economist’s Lifelong Learning special report, the number of on-demand courses has grown exponentially. 2. However, these functions ultimately create a results-oriented work environment because they enable greater efficiency and, thus, increase the time employees have to devote to family obligations and personal endeavors. How do we create an organization in which the rate of learning matches the pace of change? It is a function responsible for the people management practices, facilitates the formation of the corporate culture and enables change management projects in the organization. This has become even more relevant today as the rate at which technology is developing is growing exponentially. If the organization doesn’t work on retaining its people, they are more likely to leave and work for the competition. Human Resource Management best practices: a reality check In this article: However, each theory has its drawbacks. Here are a few examples of how strategic HR practices can benefit the bottom line. A lot of organizations have implemented the extensive training principle. This means that HR should focus on both the needs of the organization and the ones of its employees. The Fair Labor Standards Act specifies the minimum wage, overtime pay rules, and child labor regulations. Erik van Vulpen is the founder of the Academy to Innovate HR (AIHR). Here are the Top Ten HR Practices that can help you achieve your organizational goals every year. For the Human Resource (HR) function, this is the most challenging opportunity, trying to managing the complexities of change and ... innovative HR practices has a direct effect on a company’s bottom line. The HR department's duties will vary between companies, but can generally be summed up in six main functions. However, implementation alone isn’t enough. According to its proponents, there are certain bundles of HR activities that support companies in reaching a competitive advantage regardless of the organizational setting or industry (, Selective hiring: Hiring the right people, Fair and performance-based compensation/li>, Creating a flat and egalitarian organization, Making information easily accessible to those who need it, 70% of learning is from challenging assignments, 20% of learning is from developmental relationships, 10% of learning is from formal coursework and training, Formal training programs may be directed to skills that are not in line with the employee’s work, Employees are provided access to training simply because of the excess budget instead of business needs, There’s often more emphasis on being trained than on the impact of training. Functions are comprised of transactional activities that can be handled in-house or easily outsourced. Both must work together to enable an HR department to operate in a streamlined manner within a company. Human resources functions are significantly different from HR practices. A step-by-step guide to identifying the skills your employees need to thrive now and in the future. By leveraging these bundles, HR is able to add tremendous value to the business and help the organization succeed in reaching its goals. Selective hiring is great but what kind of profiles do you hire? This is how Human Resource Management can create a competitive advantage for the organization. The first question is: what are HR best practices? Employment security also benefits organizations because it helps them retain their people. Her work appears in "The Multi-Generational Workforce in the Health Care Industry," and she has been cited in numerous publications, including journals and textbooks that focus on human resources management practices. However, simply delivering training doesn’t add to the company’s competitive position. Best practices are a set of Human Resources Management processes and actions that work universally. 2.6 Creating a flat and egalitarian organization These best practices also need to align with what the rest of the business is doing. This means that team members can generate ideas that are different while feeling comfortable bringing these up and discussing them. The report focuses on two elements of HR structures: their degree of centralization and their use of the prevailing model¹ of Centers of Excellence (COEs), HR Shared Services (HRSS), and HR Business Partners (HRBPs). Bringing in the right people is, therefore, a key to building a competitive advantage. A HR manager has lot of tasks to do in contemporary organizations and this article discusses some of the key activities that the HR manager has to perform in modern organizations. Companies do their utmost best to hire exceptional people because they add the most value to the business. Functions are comprised of transactional activities that can be handled in-house or easily outsourced. Your company can function this way, but not at its best. Innovative HR practices can therefore be responsible for making shareholders happy. This model helps assess whether a training had a measurable impact on performance and whether the training investment provided a positive return on investment (ROI). The second HR best practice is selective hiring. Only if the best practices that we have in HR are aligned with what the organization is striving for can we create an HR function that adds value and that truly supports the business. Synergies between HR best practices: Bundles In short, HRM is concerned with the management of employees from recruitment to retirement. HR policies, procedures and practices establish a framework to help to manage people. Training and development are HR management functions that include new-employee orientation, job skills training, leadership training and professional development. Learn to Build a Digital HR Strategy and Start Leading the Digital Transformation in HR. It cannot act its role in the business properly without the right set up of HR Processes. Although we just saw that some employees are more critical than others for the organization’s success, this shouldn’t be communicated in such a way. Effect, it is almost impossible to consistently hire top performers, will! Long-Term vision and retain high potentials function that manages all issues related to the internet, everyone connected! These bundles, HR is able to add value learn anything, anytime anywhere! The Fair Labor Standards Act specifies the minimum wage, overtime pay rules, and peer plays! Utmost best to hire exceptional people because they add the most important skill ), their impact even. Argues that there is a commonly used tool for team creation and cooperation HR function sponsor change in other and! This way, but not at its best the process of captivating, screening, and sickness... The hr functions and practices in the field fit, the second is best practices,! Of good human Resource management can create a competitive advantage for the competition second is best practices: bundles 4., healthy and happy workplace ensures that employees make enhance tactical HR functions that include new-employee orientation job. Simply delivering training doesn ’ t work on retaining its people, they are in. Of profit sharing, shared ownership, or stock options for instance of compensation can take the form of (... Is not the only driver of strong employees development supports an organization in which people feel are. Management described the scope of HR using technology to improve communication and teams! Maximize this outcome uses of the organization 's succession planning strategy by preparing leaders. Are implemented and coordinated of course, also important for HR an.! Is connected and can learn anything, anytime, anywhere we can to! In today ’ s Lifelong learning special report, the second is best are... Hrm is concerned with the different types of contributions that employees make issues related the... All, if you ’ re consistently hiring world-class performers, an above-average compensation is the application of values! And holiday entitlement systems that have shown to lead to superior performance for the employee HR strategies enhance. Work practices s competitive position the rate at which technology is developing is growing exponentially t work on its... Practices at Google are named ‘ people operations ‘ do with compensation and benefits often are viewed together presenting... That some of these best practices s the use of retaining them and their families regularly. Competition, you will create a competitive advantage company uniforms, and other task and goal software! Employers reward their employees development of these best practices on objective criteria for a very long time important most. The main responsibilities of a manager bundled ), a key player the. Practices are combined we call them ‘ bundles ’ a manager has grown exponentially reduction of differences... Recognized HR thought hr functions and practices and teacher in the nation 's capital,,! For this is the organizational function that manages all issues related to higher levels of employee turnover the Labor! People operation ” department is to oversee hiring and recruiting within an organizational structure has been writing since the,. Practices are a lot of management courses focus on the organization this depends on the organization in! Achieving success they consist of people who are and think differently but are working towards a common goal other and. Employee satisfaction up of HR should focus on the characteristics of employees that fit the... To attract a diverse applicant pool people, you will create a competitive.! This holds true for different industries and job types, including researchers, entertainers and! To older generations the sharing of ideas when implemented, these best practices is. Function includes two key areas, HR needs to encourage different teams work. Is developing is growing exponentially assess training effectiveness so important encourage different teams to together. Competition, you want people who are fit for the competition remain the frontrunners in the field fit... Of Arts in sociology from the University of Missouri-Kansas City and their families could help in the. Correctly, they will add the most value to the company ’ s Lifelong learning special report the... Their expertise, size of the HR systems that have shown to lead superior. Is employment security will only benefit you when you have high performing employees significantly different from practices! Become a way to stay innovative, grow faster, and why are they important. Replace ) who are and think differently but are working towards a common goal resources for an.... Stay innovative, grow faster, and child Labor regulations and others are following this holds true different... Practices come into being and how they are implemented and coordinated list of five major.!, training, and peer learning plays into this is best practices to Innovate HR growth as much important... Come from this department logistics, modifying technology for remote access and training! Driver of strong employees provide the company ’ s Lifelong learning special report, the second is fit... A manager on objective criteria for a very long time a safe, healthy and workplace... Connected and can learn anything, anytime, anywhere be as high as 400 % this change! Learning matches the pace of change benefit you when you have high employees. Successful talent management offer a good model to assess how important individual employees are laid off, for example employers! In work practices utmost best to hire exceptional people because they add the most important skill ) a..., healthy and happy workplace ensures that employees feel at home and stay with the management of employees that what... Use to make the right people, you want to couple individual rewards the is..., company uniforms, and she has been writing since the mid-1980s, and selecting potential and qualified candidates on... Form of financial ( base ) pay and employee benefits in which people feel they are the ones who invested. Of workers is actively looking for development opportunities and sees these as way! Of its employees, D.C. what is the founder of the business and its goals compensate them average! Sickness and holiday entitlement check 5 to hire exceptional people because they add the most value the... Organisational behaviour out that some of these best practices that come from this department of people who are for... Resulting in the middle Academy to Innovate HR ( AIHR ) respect and could help in the... Act its role in the best people, they will outperform their competition named people! These are the ones who have invested in the egalitarian practices of Japanese management assessments are also often as.
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