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realising business strategy through people Vol.19 No. 4 September 2015

®

INTERVIEWSimpson D’souzaHead, BSH

HR PRACTICEDriving your careerADP, India

56 PERSONAAshu MalhotraHead-HR, Jabong.com

6822

CONTENTSSEPTEMBER 2015 VOLUME 19 ISSUE 4

14 To do or not to do - ethics in question!Being ethical does not come easy to all but HR can not only

inspire people to be fair at all times but create a culturewhere doing the right thing becomes the way business isdone!

COVER STORY

22 Celebrating people businessHuman Capital in an exclusive chat with Simpson D'souza,

the Head of HR with BSH Household AppliancesManufacturing, the largest manufacturer of home appliancesin Europe and one of the leading companies in the sectorworldwide. He discusses about BSH Household Appliance'stalent management framework, its outlook on making it adiverse and inclusive organization and importantly, why BSHshould be an employer of choice. D'souza further elaborateson the critical people challenges in the Durables sector andhow BSH is geared to tackle them with all might.

26 Be assertive, not demeaningMany a times, communication takes the shape of aggression

instead of assertion. We must know that being assertive isonly a reflection of security because one doesn't needanother person's fall in order for to rise!

30 A vision of future recruitmentGood or bad hiring decisions seal the fate of manyorganizations. Over the years, the recruitment landscape hasundergoing a fundamental seismic shift. Traditional recruitmentstrategies have given way to evolving recruitment trends andsocial media hiring is definitely a step forward….

FEATURES

34 Cultivating ‘ready now’ leadersIn the last decade, the need for a comprehensive succession

strategy has found favour within companies. However, inspite of growing acceptance, the actual implementation isstill not widespread, with only a handful investing the timeand effort needed to build a potent succession strategy.

40 Every bit countsTesco's focus on health and fitness, environment

conservation, and empowerment through skill building isdriven by the belief that collectively they can make a lot ofdifference to communities where they operate.

42 From creativity to innovationThe finest way to make an innovative and effective organization

is to disperse leadership and empower each employee all theway through training so that they become creative andeffective leaders themselves.

46 What makes a company great place towork?There is an array of organizations that range from great

places to work to no so great places to work. A greatworkplace is defined not by the salary or vacation time itoffers, rather its all about the culture, prospects for upwardagility, and the training provided to employees.

48 What ails the pharma industry…The underlying challenges of the pharma industry are retaining

employees, dealing with multi-dimensional manpower andthe ever increasing attrition rate. Hence, it is imperative forHR managers to find the right talent management model forthe near future, not to mention the long term.

www.humancapitalonline.com ■4 � September 2015

52 Tackling good times quandariesFor HR mangers, the scenario of cyclical upswing as opposed

to down cycle, it's a challenge of a different kind as innovativeways need to be devised to ensure talent retention, points out

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This magazine contains 76 pages including cover

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6 Editorial

10 Research

12 On the agenda

33 Debate

72 Law at work

REGULARS

68 The Multi-faceted LeaderAshu Malhotra, the Head of HR for Jabong.com, is a man

who has braved myriad changes to reach where he is today.A down to earth person, he believes in being rooted withoutlosing the zing to go for the stars.

PERSONA60 The pangs of employee attrition

Employee retention is a top priority for organizations globally.

In this highly competitive world, the cost of employeeturnover turns out to be not only very steep, it also reflectsstrongly on the fact that organizations are probably notinvesting adequately in their people

CASE STUDY

COLUMNS

8 Food for thought by Dileep Ranjekar

36 Gen-Y speak by Sudipta Kumar Gogoi

51 Guest column by Navneet Garg

54 Psychology at work by Manavi Pathak

67 Guest column by Rohit Aggarwal

www.humancapitalonline.com■ September 2015 � 5

56 Driving your career busADP's career development program 'Driving Your Career' is

all about being in the driver's seat and steering one'sprofessional journey in a positive direction. It's about knowingwhen to stay the course, take a turn, or set off into a wholenew trail.

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September 2015 ● Volume 19 Issue 4

To our readers

MUKESH JAIN

Human Capital’s September issue brings to you a bouquet of thought-provoking reads. The cover story “To do or not to do – ethics inquestion!” explores the ethical quotient of organizations. Without doubtethical values form the basis of business establishments geared toachieve success and sustainability, but much depends on who calls thetune and steers the rudder.

The article seeks answers to a few vexing questions – Who steers thewheel: Is it the Csuite or the HR department? Who ensures that theethics set by an organization are abided by all, down the various levelsof decision-making and who is accountable for controlling anyunethical behaviour or practices? How does one ensure these valuesare embedded in the organization’s culture and form the basis of eachone’s code of conduct and any decisions taken?

In the interview section, Human Capital is in conversation with Simpson D’souza, t he Head of HR with BSH Household AppliancesManufacturing, t he largest manufacturer of home appliances inEurope and one of the leading companies in the sector worldwide. Hediscusses about B SH Household Appliance’s talent managementframework, its outlook on making it a diverse and inclusiveorganization and more importantly, why BSH should be an employerof choice.

In the L earning & Development section, Geethaa Ghanekar, Director &CHRO, Lifestyle Business, Raymond Limited in her article “ B eingassertive without being demeaning” delves into how many managerstend to shy away from sharing not so positive feedback with his/herteam fearing a backlash. And, many a time, this communication takesthe shape of aggression instead of assertion. Managers should knowthat being assertive is only a reflection of security because one doesn’tneed another person’s fall in order to rise.

In the HR Practice section, we have A DP’ s career managementprogramme “Driving your career.” T he program i s all about being inthe driver's seat and steering one's professional journey in a positivedirection. It's about knowing when to stay the course, take a turn, orset off into a whole new trail.

In the P ersona section, we have profiled A shu Malhotra, Head ofHR, Jabong .com. We see him as a man who has braved myriadchanges to reach where he is today. A down to earth person, he stillbelieves in being rooted without losing the zing to go for the stars.


We've got mail!We've got mail!MAILBOX

*If you want to let us know, what you think of India's premium HR magazine, then please mail across your valuablefeedback at [email protected]

Human Capital has an excellent way of puttingacross the latest trends in HR areas, and the workthat is done. I was going through the National SkillsPolicy ( July, 2015 issue; pages: 38-40). I am sure, thetargets of 500 million, with 5000 Skill DevelopmentCenters what is planned, will be a reality with thisPolicy, if all look towards thiswith the same vision.

Since I am a Research, PhDGuide and HR Professor, theissue was great support formy teaching and Research.

Congrats to bringing thisissue and the theme.

Get connected!!

M M BAGALIPhD, Prof.of HRM, Head, Research in Management,Jain University

A trendsetter!

I would like to state that I have read DileepRanjekar's article entitled "Mind is the King" whichhas been published in Human capitalMagazine, July 2015. From thisarticle, I gained valuableknowledge especially folksinger story (82 years old),happiness of life, don'texpect anything fromanybody, etc.

Also I would like to stateI am the regular onlineand printing subscriber ofHuman capital magazine.

N R SAHASRANAMANScientist - C, NIC Audit Informatics Division, Officeof Comptroller and Auditor General of India

An ardent fan

I have always looked forward to the cover story eachmonth. I also enjoy reading about all the eminentpeople in the HR industry. It goes without saying thatinformation about the best practices in the tradeproves to be valuable. All in all, it is a very usefulmagazine for HR professionals.

SWATI BURMANAssistant Manager, Ernst&Young

Keep it up…

I appreciate the efforts of your team in bringing outa purposeful publication. I would like to suggest thatyou add a monthly HR quiz, probably aboutdepartment HR concepts. Also, it would beinteresting to know about global trends and practicesthat will sooner or later create an impact in ourcountry as well. In addition, I would also love to readmore on creative employee engagement practices.

VIJAYA SINGHLead HR, Etisalat, India

The more, the better…

Though your magazine provides a lot of informationabout senior leadership roles, I think there should bea column that pertains to mid- management levels,and ways to deal with their day to day problems.

S R GANESANReader, Mumbai

Guiding towards solutions…

Human Capital has always producedcommendable content. I would like to read morearticles on Gen- Y and about innovative changes

in HR strategies, which are highlyrelevant in today's volatileeconomic scenario.

ISHA ARORAHR ExecutiveAdecco India Pvt. Ltd

Gen -Y ready


T

The condescendingupper classBY DILEEP RANJEKAR

he front page headline ofleading newspapers screamed- "Bag Seller's Son Tops APIMT(All India Pre-Medical

Entrance Test) Examination". I was,for the umpteen number of time -not amused. Especially with theoperative part of the headline - "bagseller's son". While the newspapercan easily argue that they wanted tohighlight the fact that a personcoming from an adverse situationachieved success - despite suchadversity, knowing the general psycheof the society powerful class weknow the underlying message.

It reminded me of our visit to areasonably good and large school inRajasthan - run by an organizationthat is committed to justice andequity in society. The Principal ofthe school was giving an elaboratepresentation of the unique activitiesin the school and the non-traditionalnature of such activities. ThePrincipal in his enthusiasm - rangthe bell and called the "peon" forcalling a particular student and hisfather. After a few minutes, both thestudent (8th standard) and his fatherappeared in the room. The fatherwas humbly standing in the cornerof the room and no attempt wasmade to request him to sit on one ofthe chairs. The Principal - proudlydeclared "this is the student who hastopped a state level examination andhe is the son of our sweeper". Thestudent's father (sweeper)awkwardly greeted us and thestudent too was found shuffling his

feet. My colleagues and I were leftfeeling very uncomfortable. In ouropinion, the Principal could havesimply introduced the student to usfor his achievements.

"Why was it necessary to mentionthat the student is a sweeper's son?Was it not adequate to state - 'hereis a bright student from our schoolwho has performed very well at aState Level competitiveexamination'? If it was that necessary(my belief is, it was not) could thePrincipal not have said 'so and so isan employee in our school anddespite his own educational status -he has contributed to his son'sacademic performance? Why did thePrincipal not offer him a seat?"

It is not about the Principalalone. It is a general mindset in thesociety. Especially of people whodon't come from that part of thesociety that is perpetually remindedof their status in the society.Invariably, such reference getsjustified as an act of felicitatingadversity and bringing home thepoint that despite the adversebackground a person has achievedso well.

A quick review of the people inthe room - revealed - that all otherpersons in the room were eithereconomically well off and/orbelonged to the upper caste. Noneof them had any idea of what it islike - to be a sweeper or sweeper'sson and what it is like beingreminded so often as to who youare.

FOOD FOR THOUGHT

There are several issues involvedin such references - which may beknowingly or unknowingly"condescending". People who oftenclub people's work or achievementswith their socio-economic status areeither constantly aware of such statusor don't leave an opportunity toreinforce the lower status of others.In their mind, there is a clear socio-economic hierarchy in the society.Apart from reminding people of theirlower status, such references alsotake away the purity of the joy ofachievement / success.

Another area where the so calledpowerful class tends to becondescending is "Gender".

While pompously terming a girlchild as the real wealth of the family("Lakshmi") - blatant discriminationsare made while making choices ofthe school, birthday gifts, highereducation, etc., for the same girls.The boys often get the superior deal.There are of course exceptions andin some progressive families, the girlsare exercising equitable choices forthemselves.

A superficial respect is oftenaccorded to women in society or athome - without changing the socialfabric in a significant manner. Sopublicly, we eulogize women, givethem the status of goddess and usevarious patronizing expressions. Butour respect is just speech-deep andnothing beyond. Incidentally, thewomen detest this - they see throughthe double standards and know thateventually it is completely a male


dominated society. Especially in working couples,the women invariably ends up giving up their careersor getting dragged to the location where theirhusband is transferred. Women are also expectedto hold both the work and family front with élan.Typically, when a man comes home from hisworkplace, he is expected to relax, while a workingwoman is expected to make a quick transition andattend to all the household chores, withoutcomplaints. The performance parameters for menand women are quite inequitable.

Most women detest this pompous attitude ofthe society. The other day, in a TV news channeldebate - a politician referred to the victim ofmolestation as "meri beti" (my daughter) andimmediately retorted "don't call me your daughter- I have my own parents and I love them". Shemight have sounded rude - but we know that it isa result of bottled up emotions.

There are many men who grow up in familieswhere most decision making is centred on malepower. In public, they may feign respect to womenaround them without giving an inch of decisionmaking to women in the family. The importantcontribution that the women make to thefunctioning of the family affairs is never valued andwomen are taunted for not earning. The mostcomplex job of raising a child, which includes, thepregnancy, child birth, child rearing while being innot so good condition and being a punch bag to thechildren, is all considered very natural ("all womendo it"). Whereas men get full credit for their job,their hard work simply because that job earns themmoney. Many educated, capable women sacrificetheir career to raise children - which is not valuedand such women are often taken for granted.

At the workplace, lip service is provided to payattention to women's convenience without factoringcertain sensitivities around women specific issues.The men who decide the policies at the workplaceapply different standards when it comes to womenat home and women at the workplace. Supervisorsand organizations are often not adequately sensitiveto the pre and post-natal care that women need.Pregnancy and maternity requirements are seen asdisruption of work and a risk in general.

Our constitution provides for equal rights tohuman beings of all caste, creed, gender andeconomic status. There are no citizens that aremore equal than others. It is a right of every citizento be treated in an equitable manner and nobodyis doing any favour by helping the weakersections……..whether socio-economic or genderbased.

Dileep Ranjekar, Chief Executive Officer of Azim Premji

Foundation, is also a passionate student of human behaviour.

He can be contacted at [email protected].

FOOD FOR THOUGHT

HC


Nearly 80% CEOs globallyexpect to increase hiring overnext 3 years

In a major new study released by KPMG International, whichtracks insights on the coming three years, chief executives ofglobal businesses said they are confident about the ability oftheir companies to grow over the next three years and areexpressing confidence about the prospects for the globaleconomy.

According to the 2015 KPMG CEO Outlook Study of 1,278CEOs, 69% of CEOs in Europe, 66% in Asia Pacific and 52% inthe US are more confident than they were last year aboutgrowth and the global economy in the next three years. Inassessing their own company's growth prospects, 70% ofEuropean CEOs, 68% of Asia Pacific CEOs and 19%t of USCEOs indicated they are more confident than a year ago. Mostimportantly, CEOs globally are set to hire, with 78% ofrespondents indicating they are expecting to be in hiring modethrough mid-2018.

"The overall message we've gotten from CEOs around theglobe, is that they are positive about their prospects over thenext three years, and importantly that they are looking to hiremore people," said John Veihmeyer, Global Chairman of KPMGInternational. "There is a more positive change in confidenceversus the prior year, in Europe and Asia compared to the US,which is in part reflective of the US being in a more advancedstage of the economic recovery."

According to the KPMG study, CEOs are grappling withescalating competitive pressures. In order of importance: 86%

are concerned about the loyalty of their customers; 74% areworried about new market entrants; 72% are worried aboutkeeping pace with new technologies; 68% are concerned abouttheir competitors' ability to take business away from them; and66% are concerned about the relevance of their product orservice in the next three years.

Leadership rolessee an increase of 28%women applicants

The year 2015 will witness more andmore women at leadership roles inboardroom meetings. All set to take onmore responsibilities, the womenbrigade is aiming for senior positions inthe industry. Their aspiration tocontribute significantly to building greatbrands, not only benefits recruiters whoare always in search of good talent, butalso boosts the much needed equality inthe employment sector.

According to a survey conducted byiimjobs.com, the largest onlinerecruitment portal for premiummanagement jobs, there has been asignificant increase of 28% of womenapplying for senior positions withexperience levels between 11-15 yearsas opposed to 15.3% in 2014 and amere 10% in 2013. This number is alsosignificant in the 7-10 years and15+years of experience levels.Maximum number of applications(15+years of experience) is for HR &Industry Relations jobs, followed bySales & Marketing followed byConsulting and lastly Banking andFinance.

This increasing number ofapplications clearly indicates thatdiversity in organizations, especially inleadership roles, is the need of the hour.Diversity helps to promote inclusivenessin the work culture, contributingsignificantly to women empowerment. Todiscuss such sensitive and importantorganizational issues, iimjobs.comorganizes events and panel discussionson a regular basis with influential peoplein the industry.

RESEARCH


RESEARCH

India's businesscommunity feeling buoyant

India's business community is feeling buoyant, according to the latestglobal survey of finance professionals. The economy is benefittingfrom low oil prices - being highly reliant on fuel imports - and haveseen balance of payments improvements in recent months.

Finance professionals responding to the Global EconomicConditions Survey (GECS) organised by ACCA (the Association ofChartered Certified Accountants and IMA (the Institute of

Management Accountants) expect greater investment ininfrastructure under Prime Minister Modi's reform program, andIndia is set to grow at a faster rate than that of China over the comingfive years-edging above 7% growth just as China slips below it.

However, despite the growing confidence, the survey showed thatthere is still unwillingness among businesses to invest in either capitalor human resources. Meanwhile, the global economy is facing aperiod of volatility and major readjustments, according to the survey.

The second quarter of 2015 saw an abortive rise in oil prices,several expected and unexpected rate cuts by central banks, arebound in Western consumer sentiment and a stock market crash inChina. These events led to business confidence levelling off in thesecond quarter of 2015 following six months of improvement,according to the latest GECS).

Nearly half of those surveyed expected to see governmentspending increase over the next five years, while 35% expected adecrease. The survey also shows that firms remain quick to cut staffwhen faced with uncertainty. In the past quarter, 41% of businesseshave cut staff or ceased recruitment - nearly twice the number whichhave increased staff levels over the same period.

The major global concern was a rise in costs, with 46% ofrespondent worried about the impact, while foreign exchangemovements were cited as a problem by more than a third of largerbusinesses which have cross-border supply chains.

Strong growth trendsfor mobile learning inIndia

Skillsoft, a global leader in learningand talent management, released itsresearch report, The State of MobileLearning in India, which highlights keyinsights into the availability of andpreferences for mobile learning, aswell as challenges and concernswhich impact the implementation ofmobile learning in organizations in AsiaPacific broadly, as well as specificallyin India. The research report includesnumerous unique insights fororganizations in India addressing thechallenges of learning and developmentin the mobile-enabled age.

The regional study collected 545responses from decision makers(individuals who manage a budgetwithin an organization for HumanResources or Learning & Development)and learners (individuals who do notmanage Human Resources or Learning& Development budgets and receivetraining in any form) across 16countries in Asia Pacific.

Key Findings from the Report:1. 27% of the organizations represented

by the respondents have alreadyadopted mobile learning

2. 80% majority of respondents believemobile learning is likely to increasetheir level of engagement with theircorporate learning programs

3. 59% of the users and potential usersseek leadership development andtraining, while 55% desire skillstraining towards industry recognizedcertifications

4. 47% of the adopters' companiessupport tablets; 60% of intenders desirefor tablets to be used for mobile learning

5. 64% of intenders wish to havecompany issued laptops for mobilelearning access

6. 80% of all respondents indicate thatmobile learning increases their levelof engagement with a learningprogram


Effective Trade Union Management

Location: Hyderabad

Dates: 7 Sep, 2015

ASCI HyderabadAdministrative Staff College of IndiaBella VistaRaj Bhavan Road, Khairatabad,Hyderabad -500 082, IndiaTel: +91-40-66533000E-mail: [email protected]: www.asci.org.in

General Management

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Leadership skill development

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Dates: 3 August, 2015


Organizational Behaviour (OB)

Personality Development

Location: Ahmedabad

Dates: 21 Sep, 2015


HR Management


3TP: Emerging Leaders' Program

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Dates: July 26-August 22, 2015

General Management

Doing Business Abroad

Location: Ahmedabad

Dates: August 19-21, 2015


Business PolicyGLOBAL DIARY

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Leadership AgilityOrganizer: NTLWhen: Sept 16-18, 2015Where: DC MetroFees: $1,950Details: www.ntl.org

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ON THE AGENDA


Digital & Social Media Marketing and

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General Management

How Leaders Bring Change

Location: Bangalore



General Management

We invite you to join the Azim

Premji Foundation Fellowship

Program (2015–17). Azim

Premji Foundation is a not-for-

profit organization working to

improve quality and equity of

school education in India. Our

vision is to contribute to a

just, equitable, humane and

sustainable society.

The Fellowship is a two-year

full-time program beginning

December 2015, during which

you will get to understand

and experience the realities of

rural Government schools. It

has 22 months of fieldwork

based at any one of our

District Institutes, and will

include a long stint of guided

classroom teaching.

You should have at least 3 to

6 years of work experience,

with a post-graduate or a

professional degree in any

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people from a variety of

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The Fellowship carries a

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Azim Premji Foundationannounces Fellowship

Program 2016

ON THE AGENDA

COVER STORY

To do or not to do -

ethics in question!- by Lipi Agrawal Khandelwal

14 � September 2015

COVER STORY

Potter Stewart, an Associate Justiceof the United States SupremeCourt, quoted long ago, "Ethics isknowing the difference betweenwhat you have a right to do andwhat is right to do". Well, it standstrue today and will hold its impor-tance in various contexts forever.Even as businesses are concerned,the rudder that ensures an organi-

zation keeps moving in the right direction is -ethics!

Ethics form the most vital aspect of businessesthat seek to be successful and sustainable, yet it alldepends on who controls the steering for thisrudder and the way they drive it. Is it the C-suiteor the HR department? Who decides the gover-nance norms and who propagates them further?Who ensures that the ethics set by an organizationare all abided by, down the various levels and whois accountable for control-ling any unethicalbehaviour or practices?How does one ensurethese values are embed-ded in the organization'sculture and form the basisof each one's code ofconduct and any decisionstaken? The answers to allthese questions may bemanifold, however, onecommon thread that runsthrough each is - HumanResources! HR need notbe policing around forkeeping checks on employees, however, throughvarious unique and innovative practices, HR canensure that organizational ethics don't just remaintheoretical concepts but truly become a part of thecore governance of the organization.

Even research suggests that HR and ethicsshould go hand in hand. In a Conference Boardsurvey of ethics and compliance and humanresource professionals from 214 global companies,77 per cent of respondents said they "would like tosee a more collaborative approach between the twofunctions than their company is currently taking."To make this collaboration work effectively organi-zations need to ensure HR is a part of the ethicsinfrastructure right from the beginning to managingit for the longer run. As Prashant Bhatnagar, VP -Hiring and Staffing, SapientNitro India says, "Ethics

and values are the foundation on which a com-pany culture and practices are built. HR is thefacilitator that gives shape to this intangible andenables individuals to understand expectations onbehaviour/ actions even when no one is watching".Such an outlook from HR and the organization,and a perseverant approach towards nurturingthose values can surely go a long way in creatingand sustaining a truly ethical workforce.

Ethics - the real pictureIn spite of having code of conduct, variouspolicies, organizational values and beliefs laid downmeticulously, it is common to witness numerouscases of lapses in workplace ethics. Such lapses canhappen at any level in the organization. It could bea fraud in accounting or stock trading, involvementin a conflict of interest, a case of sexual harass-ment or a simple case of misusing office propertysuch as stationery, photo copier, etc. Most unethi-

cal practices may not beat the senior levels or ofsuch great intensity so asto affect the overallwork environment,however big or small,such behaviours orpractices need to bechecked. This is why it iscrucial for organizationsto ensure that ethicsdon't just remain atheory rather become aday to day reality for theentire staff. In line withthe same, R Nanda,

CHRO and Chief Ethics Counsellor, Tata ChemicalsLimited, says, "Rather than leaving ethics assomething that resides only in posters and book-lets, HR can play an important role in making itboth 'seen' and 'felt' within the organization". Hereare five tricks HR can deploy for making ethics apart of life.

The earlier the better: There are various keyprocesses under the umbrella of HR that can playa crucial role in spreading the message of ethicsclear and loud. From recruitment, to training anddevelopment to appraisals and exits, HR can be astrong agent in embedding organizational ethics inthe entire employee life cycle. Needless to say, thesooner it begins the better it is, as ethics can betaken into account right at the time of recruitmentand interviewing. Accentuating the same, Bhatnagar

Being ethical does not come easy

to all but HR can not only inspire

people to be fair at all times but

create a culture where doing the

right thing becomes the way

business is done!



From culture to commitment: Organizationalculture forms the basis of how people act in differentsituations and the degree to which the employeesembrace the culture, mostly results in a commitmentto being fair and ethical. Suri shares, "Anorganization's culture is a powerful determinant ofbehaviour. It defines social norms and more simplyput 'the way things are done'. Culture resemblessocial norms, in that it exerts strong influence inways people interact; making it harder for individualsto display unethical behaviour and easier to do theright thing". HR plays a critical role in monitoringhow well the ethical values are embedded. The HRprocesses that can provide such valuable informationare surveys, appraisals and exit interviews. Theseprocesses also enable ways to evaluate how the ethicsprogramme is working and whether the company isliving up to its values in practices, thereby revealingthe level of commitment across levels and hierar-chies.

Reward and reinforce: Despite the belief thatethics need to be embedded deep in the culture andpeople's day to day behaviour and conduct, it goeswithout saying that even the smallest of ethicalmoves/acts need reinforcement to strengthen thebelief further. This implies that HR needs to con-sciously make efforts to recognize and reward

COVER STORY

shares, "Integrating ethical values throughout organi-zational processes is key to creating the culture. Forinstance, evaluating and interviewing candidates onsuch situations and understanding how they respond/react goes a long way".

Don't preach - teach: Nishchae Suri, Partner andHead of People and Change Advisory, KPMG, says,"Theoretical existence of values can be transformedinto core governance by translating what is preachedinto actions and living the values. HR has a role toplay in the stewardship of ethics, how they aremirrored in policies and reinforced in daily interac-tions". Clearly, ethics can never be inculcated bymere documentation of policies and making themavailable to people but by making ethics a part ofthe workplace culture and lifestyle. This implies thatHR in forms of onboarding processes, inductions,trainings, etc., can ensure these values are integratedamongst them right from the start and continue tobe reinforced through later learning and developmentsessions. As rightly put by Nanda, "HR shouldincorporate this into the induction and onboardingprocess and make new joinees aware as to what theyneed to do when they are faced with unethicalissues, as well as showcase stories where employeeshave demonstrated ethical behaviour even underdifficult conditions".


practices that encourage ethical values.Sharing the importance of providing suchimpetus to worthy employees, Nanda says,"HR could propose having awards/acclamation for employees who exhibitethical values while working towards theorganizational goals".

Punish or banish: Living up to theethical values is not always as easy as itseems and even more challenging is,dealing with situations where ethics havebeen violated. Tough calls need to be takenalong with strict measures to control thesituation while identifying and punishingthe ones at fault. Such acts should nevergo unnoticed or ignored, leaving anychance for the wrong messages beingconveyed across the organization. "HR should laydown a clearly articulated policy guideline coupledwith areas on which there would be a "zero toler-ance" approach adopted" says Nanda. Similarly, nomatter how challenging it is to take calls againstunethical practices, Bhatnagar states, "The true testof establishing and upholding the culture comeswhen there is time to take action, especially if againstsenior/powerful individuals. HR and the organizationwill lose face if they fail to act based on the personas opposed to circumstances".

Empowering the guardians of ethicsA well-established fact - since HR professionals areinvolved in various processes right from recruitmentto appraisals to exit interviews, they are in a uniqueposition to influence organizational culture andvalues. In this regard, Steven D. Olson, director ofthe Center for Ethics and Corporate Responsibility atGeorgia State University in Atlanta, says, "They are -or should be-both guardians and champions of theethical culture in their organizations. As guardians,they have a duty to protect their organizations'employees, customers and clients from unethicalconduct. As champions, they can help their organiza-tions flourish by promoting ethical values in dailyoperations and by building trust"*. So, as the guard-ians of ethics and values HR undoubtedly has a greatresponsibility to handle.

Now, as the famous dialogue from the movieSpiderman goes, 'With great power comes greatresponsibility', it also reflects how power can enableone to handle greater responsibilities well. It impliesthat organizations need to realize that a certainamount of power if not authority, vested in HR canequip them to be the efficient guardians of theirculture and values. Bhatnagar says, "HR needs to beempowered to follow through when organizationvalues and ethics are violated. In addition, HR needsto take the lead and design policy/ practices in linewith changing needs of people and business". Rightlyput, as an involvement in framing policies and

COVER STORY

*Source: http://www.shrm.org/publications/hrmagazine/editorialcontent/2014/0414/pages/0414-ethical-workplace-culture.aspx

practices also impacts the way HR inspires andinfluences people for always being focused on doingthe right things. It also enables wise decision makingin times of any acts of violation. Moreover, for suchcritical decisions, Nanda suggests, "HR should haveeasy access to senior leadership including at theBoard level to take up any issues that need to beaddressed for resolution".

On the other hand, while Suri believes that HRneed not be a power centre but an enabler forstrengthening an ethical culture, he says, "Their roleis to provide guidance to organizations for effectivedecision-making. However, they should be able toidentify instances where there has been a violationand act as a coach where needed".

Conclusion'To do or not to do' is an ever haunting dilemmamost individuals face at one or the other point oftime in their professional lives. This decision howeverdifficult is critical in deciding their own and theirorganization's demeanour. One may not be necessar-ily good or bad in deciding to go against their ethicsbut it is that one moment of slippage that triggersthe domino effect - one that crumples the entirefaith of the staff in organizational values, leaving alenient impression about the guardians of ethics,affecting productivity and overall growth. On thebrighter side of things, such acts or situations can belargely kept at bay provided HR, in collaboration withthe leadership, facilitates a culture of ethics. Throughcarefully planned initiatives HR and organizations canensure that their ethics are not only understood andimbibed but lived. As the guardians of ethics, HR cannot only inspire people to be fair at all times butcreate a culture where doing the right thing becomesthe way business is done!


HR plays a crucial role in bringing ethicsinto reality from its theoretical form.Through processes such as ongoing

training and learning programs re-iteratingbelief in organizational values, institutionalizingrewards/recognition programs etc. ethics andvalues can become a part of the coregovernance. In addition to this, integrating thesevalues throughout organizational processes isthe key to creating a culture based on ethics.For example, evaluating and interviewingcandidates on such situations andunderstanding how they respond/react goes along way. Similarly, new hire orientationprograms can cover organizational values andstand on such things as also ongoing training isa sure way to reinforce. For example, atSapient, we discuss our purpose and values aspart of new hire orientation and everyindividual has to mandatorily complete thecode of ethics training every year. Similarly, we

have recognition programs thatreward and recognize

individuals who display suchbehaviours at team, office andcompany level.

Safeguardingorganizational valuesEstablishing ethics comeseasy, upholding them isaltogether a different matter,as HR cannot do it alone. Atthe highest level, any ascribedvalues/behaviours must be

central to organization'soperating philosophy and

constantly reinforced throughmechanisms described above.

Lack of leadership buy-in oractive support will lead to

this being viewed asmere statementslacking substance.For example, in awell-respected firmeveryone knew thatthe head of salesran a culture ofmicromanaging andburning people outthat contradicted

with organization's stated values. However, noone spoke up including HR, for the fear ofkilling the golden goose. Only when theindividual left on his own, did everyone expresstheir displeasure terming the exit as "goodriddance".

The true test of establishing and upholdingthe culture comes when there is time to takeaction, especially if against senior/powerfulindividuals. HR and the organization will loseface if they fail to act based on the person asopposed to circumstances. The role of HRbecomes even more vital when such values orethics are violated by senior/powerfulindividuals and also how they are dealt with.HR helps define non-negotiables that arenecessitated by law (for e.g., safe workenvironment for people of all gender) orcompany culture (for e.g. being open to newideas regardless of seniority of people) andestablishes processes to oversee them. Somechallenges in upholding ethics may also typicallyarise when acquiring or merging with othercompanies who may have different practices.

Influence - not authorityUndoubtedly, HR is the conscious keeper andthe one responsible for creating andmaintaining a values driven environment. Likeleadership, HR has to operate through influenceand not direct authority in order to achieve thisoutcome, and should lay out operationalprocesses and practices that clearly outlineexpectations and consequences in any givencircumstance where they are violated. Given theneutral nature of their role, they are themediators in times of conflict and must actfairly without any prejudice. It calls for anoffice environment with a collaborative culturethat enables parallel communication and needsevery individual to contribute and work in syncwith the HR. Team leads/managers are equallyresponsible for upholding the values of anorganization and should ensure the same isfollowed as we go down the hierarchy.

In today's world, someone is powerful notbecause they hold authority but because ofinfluence. In addition to powers required underthe law of the land, HR needs to buildinfluence across length and breadth of thecompany starting from the top - the board, formatters beyond compensation and recruiting. �

COVER STORY

HR - the conscious keeper of ethics

PRASHANT BHATNAGAR

Vice President - Hiring and StaffingSapient Nitro India


Ethics define the difference between theright to do something and the right thingto do!

However, the guiding norms - ethics, cannotbe considered effective in a mere theoreticalexistence. The theoretical existence of valuesand ethics can only be transformed into coregovernance by translating what is preached,into actions and living them on a day to daybasis. HR has a major role to play in thestewardship of ethics, how they are mirroredin policies and reinforced in daily interactions.Here are a few practices that can help HRaccomplish the same:Build a strong culture of ethics: Anorganization's culture is a powerfuldeterminant of behaviour. It defines socialnorms and more simply put "the way thingsare done". Culture exerts strong influence onthe ways people interact; making it harder forindividuals to display unethical behaviour andeasier to do the right thing.Exemplifying ethics: Values statements are notsupposed to be isolated, but need to bepractical and pervasive. Leaders and managerscan, to a great extent, create an ecosystemthat supports and reinforces the ethics andvalues. To begin with, it is imperative that theybuild a culture of awareness and acceptancerather than fear, such that doing the rightthing is a guiding force and not just a forcedprotocol. In situations where employees getmixed signals from leadership they tend totake that as the way things are done in anorganization and HR needs to keep a closecheck on that.Reinforcing ethics through performancemanagement: While engaging in performancediscussions, it is essential for organizations toconsider means to an end rather than just theresult. This may help in offsetting ethicalviolations on account of business pressures.Often, a need opportunity emanating frombusiness makes it easier for individuals torationalize ethical violations, which HR shouldbe able to differentiate between and controlaccordingly.Showcase the right practices: Ethicsstatements usually define what not to do whilemissing out on highlighting cases of practices/behaviours of exemplary compliance to ethicsand values. In addition to defining compliance

risks, it is important that organizations callout the actions that stand for ethicalpractices. Doing so can come handy toemployees when in a business dilemma ofdoing something for or against theorganizational ethics.Strengthening systems,processes and policies:While building a cultureof commitment is vital,an organization'sgovernance structurecan act as a goodfoundation. Tangiblemeasures such as codeof conduct documents,audit policies, ethicshelpline, standard practicesand checks and balancesbuilt in organizationstructures can facilitate astrong moral fabric.

Even with all the above inplace, since ethical guidelines aresometimes grey, they can be easilymisinterpreted to suit self-interest. HR therefore, has arole to play in upholdingconscience in spirit. Theycan help ensureconsistency is applied ininterpretation of ethicsand that the guidelinesremain true to form.Additionally, when thegoing gets tough,circumstances can getthe worst out of employees. HR, here, holdsthe responsibility to uphold the moral fabricof the organization. In doing so, while HR canplay the role of a conscience keeper, theresponsibility to enforce a strong moral fabricand ethical governance is also everyone'sresponsibility. Ethical practice is a commondenominator of sustainable success, making itimperative for the ethic initiative to be abusiness owned activity, driven and facilitatedby HR. Decision making on ethical violationsshould be delegated to appropriateauthorities, while keeping HR involved in theprocess. HR should not be a power centre,but a strong enabler! �

COVER STORY

HR - the enabler for ethics

NISHCHAE SURI

Partner and Head of People andChange Advisory, KPMG

R NANDA

CHRO and Chief Ethics CounsellorTata Chemicals Limited

would be a "zero tolerance" approach adopted.Internal forums for communications should

be deployed to seek feedback on theconsistency in deployment and approach so thatthe process is strengthened. Appropriate trainingof executives who are responsible for managingthe ethical framework in the organizationshould also be carried out as a capabilitybuilding initiative. Such proactive measuresfollowed by post deployment initiatives go along way in determining and furtherstrengthening the stickiness of ethical programs.

Understanding people issuesNow, all of that is not an easy job, as the mostcommon challenge that lies ahead is in ensuringconsistency - ultimately it is people who makeup the organization and each individual isunique. Thus HR needs to comprehend thechallenges beforehand and proactively gear upwith relevant actions to help people align withthe culture and values. Also, when people jointhe organization from different backgrounds,the adaption process to the new organization'sculture and values can be difficult for some andneeds to be managed sensitively and carefully.In addition to this, ensuring that managers havea common understanding of the ethicsframework is also equally important so thatwide disparities are eliminated.

Holding the batonSince HR is ultimately responsible for managingthe employee life cycle, it has a very significantrole and responsibility in the entire process. Italso implies that HR has an edge over the linemanagers when it comes to helping them adaptto the organizational values and environment.They can be the facilitators for establishing aculture of trust and ethics. However, they neednot be the sole carriers of the cross. Enlistingthe support of other key functions likeCommunications, Legal and Compliance wouldhelp ensure that there is a multi-prongedapproach in building the culture of ethics andintegrating it into the DNA of the organization.When it comes to cases of violations, HRshould also have an easy access to seniorleadership including at the Board level to takeup those issues that need to be addressed forresolution. HC

COVER STORY

Making ethics 'seen' and 'felt

As more and more organizations realizethe importance of having a strong ethicalframework in place, researchers have also

established the fact that ethical workplacecultures make good business sense. Whencompanies value ethical performance,misconduct is substantially lower. In recentyears, only 20 percent of workers reportedseeing misconduct in companies where ethicalcultures are "strong," compared with 88 percentwho witnessed wrongdoing in companies withthe weakest cultures, according to the NationalBusiness Ethics Survey (of 6,420 employees)from the Ethics Resource Center. It alsorevealed that 45 percent of employees havewitnessed ethical misconduct at work, and 13percent say they are feeling pressure to bendthe rules or even break the law. Such pressurescan easily make even wise people succumb tothem, in lack of a strong culture of ethics - onewhere people don't just know about it but liveit as a part of their profession.

Ethics need not be confined to itsdocumented form - it is something that can be

both 'seen' and 'felt' within theorganization, provided HR takes

appropriate steps to establish thesame. HR should actively work

with the senior leadershipand line managers to

constantly bring the topicof ethics and ethicaldilemmas in theconversations they havewith their teams,making sure that it isaligned with thestrategy and desired

culture of theorganization. Moreover,

people relate much betterto what they witness as

actions being taken by theorganization when an

ethical issue needs to beresolved. Hence, it

becomes critical thatHR should lay downa clearly articulatedpolicy guidelinecoupled with areason which there


INTERVIEW

Bfactories in 13 countries in Europe, the USA, LatinAmerica and Asia. Together with a global network ofsales and customer service firms, the BSH family istoday made up of about 70 companies in 46 countries,with a total workforce of nearly 43,000 people. It had aturnover of 9.073 billion EURO in 2010.

HC: You have been with BSH Household Appliancesfor a while now and have witnessed the consumerdurables industry mature in India with time. Tell ushow this sector has opened up as a great careerdestination for youngsters. What kind of careeropportunities does BSH offer?SD: Consumer durable industry is going through a goodphase right now. Spending power has increased andmindsets have changed. Also people today connect witha product or brand and attribute the brand's value andpositioning to themselves. People are also aspirationaland thus want a certain set of kitchen appliances, acertain dishwasher, prefer German engineered productssince it's considered one of best; and that is drivinggrowth. Even the youth today want to own high endproducts and have the monies to spend. As far asopportunities are concerned, the youth are risk takers Ibelieve. They want to take up projects which excitethem and BSH Household Appliances Manufacturing isalways on the forefront when it comes to offeringexciting opportunities to its employees. We also offer alot of project based work. Due to the presence of ourfactory in Chennai and R&D centre at Pune, the

osch & Siemens Home Appliances (BSH) Groupstemmed from a joint venture set up in 1967between Robert Bosch GmbH (Stuttgart) andSiemens AG (Munich). Today, BSH operates 41

Human Capital in an exclusive chatwith Simpson D'souza, the Head ofHR with BSH Household AppliancesManufacturing, the largestmanufacturer of home appliances inEurope and one of the leadingcompanies in the sector worldwide.He discusses about BSH HouseholdAppliance's talent managementframework, its outlook on making ita diverse and inclusive organizationand importantly, why BSH should bean employer of choice. D'souzafurther elaborates on the criticalpeople challenges in the Durablessector and how BSH is geared totackle them with all might.

people businesspeople business

Celebrating

- by Sannita Chakraborty Saha


INTERVIEW

Q&A

Simpson D’souzaHead of HR, BSH Household Appliances Manufacturing

Why should BSHbe an employee'schoice?� International exposure &

career

� Career path

� Learning & Development

� Work life balance

� Flexible working hours

What BSH offersits employee� Medical insurance for

parents & spouse

(including children)

� B goods to employees

free of charge

� Birthday vouchers


INTERVIEW

employees get a lot of factory ledexposure. Also we offer flexiblemovement within the organization.Also employees get factoryexposure, for instance, a personwho works in a sales subsidiarycan move to the factory to learnnew skill sets and keep re-exploring themselves. This willenable them to grow holisticallyand not just within the function ororganization. We have internshipprograms and projects to engageand encourage new talent &competence based trainingprograms.

HC: In times when there is araging war on talent, how doesBSH ensure that it attracts theright talent to the organization?SD: We have a global talentmanagement framework in place.When an employee joins us, wehave a defined role andresponsibility for them. We alsohave certain metrics for the kindof people who we'd like to be apart of our organization. This isbased on a basic competencemodel. We frame the jobresponsibility, not on the personbut on the role. This role isaligned with our vision and addsup to the bigger picture. Once wefigure out exact the role, weappoint people who fit into therole and also most importantly, fitto the culture of the organization.

Our talent managementframework also manages aninternal pool, which majorlyidentifies two kinds of people- thefirst one being the highly potentialtalent who are critical to the roleand second, people who have thepotential for development. Whenwe look at a high potentialemployee, we look at how theycan move within the organization,either vertically or horizontally ortry putting them on new projects,as we are a growing organization.We also are cognizant aboutpeople who have the potential butcannot make it to the next level.In such cases we spend timeunderstanding, how can we helpthem channelize themselves better.

For an important role, wereview hiring from a businesspoint of view. Once this is done,we look into further elements, vizbonus, incentives and so on. Thisframework has been a greatsuccess and helped in attractingtop talent into our organization.

HC: The consumer durablessector in India is poised forgrowth as disposable incomegrows. What kinds of recruitmentstrategies does BSH have inplace to meet the demands?SD: Since we are a globalorganization, our jobsopportunities are also posted onour global sites. This is veryimportant because we also lookout for people who want to comeback to India. This adds a lot ofvalue to our organization. Some ofthe key factors that holdimportance are, firstly, we look athow diverse they are in terms oftheir skillsets and secondly thewhole bank of rich experiencethey bring on board. This will helpfacilitate sharing of expertiseacross different regions and isvery important for an organizationlike ours. We also recruit peoplenot only from the consumerdurable sector but also hire fromother similar industries withsimilar experience. Suchemployees bring fresh ideas to theorganization and have a high

learning capacity. Since we haveinnovation as one of ourcompetence, all our people addup to the over-all value of theorganization.

HC: What according to you aresome of the critical peoplechallenges in the consumerdurables sector? How have youdealt with them?SD: I think one of the keyattention areas are motivation andcreating an enterprisingenvironment. We tackle this byjob rotation, within theorganization including the factoryand the R&D center. This helpsthe employee to look at the biggerpicture. Though the role is thesame, the challenges are different.This helps the employee get betterclarity about his/her role andcareer. This is something thatworks positively for us. It alsoincreases communication channels,involving employees in changeprocess and experiential learningprograms.

HC: What kinds of interestingand innovative employeeengagement initiatives does BSHhave to encourage retention ofemployees?SD: We do this in three ways,vertical movement, internationalpools and coaching.

In vertical movement, weconstantly encourage the potentialemployees to take biggerchallenges that will enable them togrow within the organization. Wealso spend time understandingwhat the key things that BSH areas an organization can do to helpthem make this journey.

We have three internationalpools here, first one being juniorexcellence program for the middlemanagement, for the seniormanagement we have the strategicmanagement review and finally wehave the international executivepool for the higher management.We appoint people into thesepools on a year on year basis andconduct development centerprograms to understand

What makes agreat workplaceculture� Town halls

� Inter department

communication meetings

� CEO meets, wherein

company goals & objectives

are shared & also the next

steps

� Open door culture� Festive celebrations

� Social causes

� Inter-region sports events


opportunities and challenges thatthe employees face to move tothe next level.

In terms of coaching, we coachemployees constantly and haveone-on-one training for them. Thisensures that whenever there is avacancy, employees are promoted.We also have an employee surveyand the results of which are usedto organize department-wisetraining programs.

HC: What is the gender ratio inconsumer durables industry?How do you ensure there isgender diversity at work?SD: The gender ratio at BSHwould typically be 60 per centmales and 40 per cent females.Our endeavor to enhance genderdiversity at BSH is not just limitedto India; in fact we globally wantto be known as a fair and diverseorganization that strongly believesin inclusivity. We recentlyemployed a female candidate fromEurope. She is not from BSH butwas hired from an externalsource. We hired her since webelieved that she has the expertiseand international experience whichcan further enhance thedepartment and the organizationat large. It will also help gettingIndian standards at par with theglobal standards. We also sendpeople from India to Germany.These are some of the things wedo to ensure we have not onlygender diversity, but also have thebest possible talent within theorganization. Moreover, genderdiversity is a subject which wediscuss periodically with ourHeadquarter at Munich.

HC: To keep employees motivatedand also to live up to its brandimage, how does BSH ensure apositive workplace culture?SD: As I mentioned earlier, peopleare our most valuable asset andwe strive hard to keep themengaged and motivated. We engagewith our employees via town halls,to ensure that the entireorganization is on the same pageand the employees are aligned to

the company's vision and mission.We have inter-departmentcommunication meetings to shareexperiences, learnings andmilestones. We organize CEO/CFOmeets wherein company goals andobjectives are shared and futuresteps are discussed. We follow anopen door culture at BSH, whereemployees have the freedom tocommunicate with their managers.In order to ensure there iscamaraderie across regions, wehave inter-region sports days.

We celebrate human centricdays such as women's day,birthdays and ensure we celebrateat least one festival across religionsto keep parity. We also celebrateteam achievements andcommunicate it to all ouremployees through newsletters,mailers, etc. Essentially, wecelebrate people. BSH also engagesin social causes. For instance, wesend our B goods, goods that arefunctionally perfectly fine but havea scratch and can't be sold in themarket, to the old age homes andorphanages. These appliances areinstalled for free. We recentlycontributed towards helping theNepal Earthquake victims as anextension to our philanthropicendeavors.

HC: Has there been a shift intrend from 10 years to now interms of the number of disabledpeople employed and do youthink this number will keep onimproving? What is BSH doing interms of adding specially-abledcandidates in to the workforce?SD: We currently have a physicallydisabled employee and we areopen to employing many more.We are an open organization anddo not have any bias whileemploying specially-abled. Theonly criterion for recruitment forall employees remains merit. Webelieve in equality and also upholdan individual's self-respect. Thusto keep it fair, we only employpeople on the basis of merit.

Most importantly, at BSH, wedo not believe in treatingemployees differently. We have

development programs as per thecompany policy and they are openfor all our employees. Some ofthe development programs thatare running successfully internallyare as follows. At the managerlevel, we have developmentcentres, coaching; competencebased training programs andleadership workshops both locallyand internationally. At theleadership (CXOs) level, we haveinduction programs that areconducted at the Munich HQ orat the regional office at Singapore.

HC: What are your plans for thefuture? How do you plan tomake 'BSH' a preferred employerof choice in the consumerdurables segment?SD: To sustain our HR policies;wherein employees live thecompany values & build a greatculture to work for all employees.Provide employees with aninspiring place to work where theycan learn and grow is rewardingto people both personally andprofessionally. Also enhanceemployee's appreciation programswithin the organization & Diversityprograms. We also have plans toapply for Great places to work orTop Employer Institute in thefuture.

INTERVIEW

HC

Salary &compensationtrends in theconsumer durableindustry� Variable pay based on

individual performance is

the norm

� Organization performance

also is factored in while

structuring salary increases

� Benchmarking against

organizations

� Non-taxable benefits, which

increased the net "take-

home" of an employee


Oprofessionals who show early potential arebeing mapped to management positions. Whilethis is good news and heralds a way forwardfor the organizational framework in a youngnation, there are some real challenges.

Let me attempt to elaborate on what I meanby this -1. Irreverence to established processes: Inmy experience, young managers many a timesare criticised for not following in line with theestablished processes of the organisation. Theyare prone to challenge status-quo and arefearless in their curiosity. This could be seenas unhealthy and experienced as serious dis-comfort if the organisation is not geared tomanage it.2. Inexperience: Maturity cannot be equatedwith age. Therefore even as I say this I amconscious that maturity is a function ofexperience and not that of age. Sometimeswhen young professionals move intomanagerial roles they may demonstrate a lack

rganizations today are gettingincreasingly comfortable to tradeexperience for youth, energy andcreativity. As a result young

Many a times, communication takes the shape of aggression instead

of assertion. We must know that being assertive is only a reflection

of security because one doesn't need another person's fall in order

for to rise! - by Geethaa Ghaneckar

LEARNING & DEVELOPMENT

of understanding and maturity in dealing withcomplex matters or people related decisions.3. Acceptance: A young manager willstruggle with acceptance in his team for awhile till he is able to establish credibility.During this period his ability to contributeand support will decide how much liberty theteam allows him to challenge.

Given this scenario, it becomes imperativeto support a young manager as he transitsfrom individual contributor to a manager role,or moves into a leadership position ahead oftime. To start with, he/she will need tounderstand that the above challenges are realand should be ready to accept this reality. Ifthey come with the thought that they knowit all and the irreverence plays up more thanit should then the chances of his success inthe new role will reduce. But if he is sensitisedto some of these challenges early-on and givenreal support in developing some keycapabilities it is possible to avoid major pitfallsthat may come in the way.

Key capabilities for a newmanager:1. Managing team: Building credibility, using


Be assertive,notdemeaning


skill sets of team members appropriately,giving and receiving feedback.2. Creating an enabling performanceenvironment: Building trust, providingsupport, managing roadblocks, negotiating forresources.3. Delivering results: Setting the right goalsand priorities, creating review mechanismsand working on contingency plans.4. Organisational conduit: A manager is thepivotal link between the team and theorganization and it is vital for her to recognisethat responsibility early on. Upholding theorganizations culture and value system, beingan advocate for organizational processes andrepresenting the leadership well are all part ofthis role.

In the way the role is described above themost critical differentiating capability of ahighly effective manager as compared to anaverage manager is his ability to be 'Assertive'!

Aggression can be misconstrued asassertiveness…especially by young leaders.The difference is not even subtle. Aggressionis prompted by ego arising out of insecurity,fanned by an inflated image of self and rootedin complete lack of empathy. Aggressionleaves the individual feeling distanced andthe receiver deeply disconnected, widening

the emotional gap.Assertiveness on the other hand is a key

indication of emotional intelligence arising outof conviction yet rooted in empathy. It isabout stating what needs to be stated withoutjudgement and without feeling the need torun down the other person. Assertiveness isa reflection of security because you don'tneed other person's fall in order for you torise!

While these may sound far more profoundthan what can be understood by an averagemanager, the practical application of this issimple and doable. Let's explore a fewinstances where this could play out in the lifeof a manager -Giving and receiving feedback: This is anart that manager's learns over a period oftime. However, the learning curve on this canbe shortened significantly if some simpleprinciples can be applied religiously.1. Feedback is never right or wrong: It isperception and needs to be understood asperception. When giving feedback thereforeit is important to state behaviours, experiencesthat enable the receiver to understand whatone means.2. Feedback is not judgement: It isimportant to make the distinction that




Geethaa Ghaneckar, Director – CHRO

Lifestyle Business (Textiles, Apparel,

Retail and Garmenting) has a career

spanning over 22 years. She has been

associated with Raymond for more

than five years and has contributed

significantly in her role both as Head

of Corporate Learning & OD team and

as CHRO for Lifestyle business. An

Economics graduate with an MBA in

Marketing, she started as a marketing

professional with Aptech Limited. She

has also worked with MANFORD

(Management Foundation for

Organizational Research and

Development), RPG group and AIG

before joining Raymond in 2009.

Geethaa GhaneckarDirector – CHRO Lifestyle Business

Raymond Limited

feedback is not judgement andshould focus on changeablebehaviours rather than sweepingjudgements about the individual.3. Feedback shouldn't be one-way: Managers tend to believe thatthey have the right to give feedback,but forget that they are alsoresponsible for the experience andhence need to accept feedback too.Having a feedback conversationwithout setting it up as a two-wayprocess could be damaging.4. Timely feedback: Feedbackdelayed is feedback denied. If thetime gap between action andfeedback is extended then theimpact is lost and the realisation isdiluted making the feedbackineffective.Dealing with non-performance:Non-performance is an outcomeand already puts the person on thedefensive. Therefore a conversationon dealing with non-performanceneeds to be carefully managed suchthat the motivation to turn aroundis re-kindled yet the message onperformance is conveyed withoutdilution.1. Focus on the issue not theperson: It is easy to link allperformance issues to capability ofthe individuals involved rather thanlooking at it holistically. If theconversation can remain focusedonly on what could have been done

differently rather than how theindividual is, then the outcome willmobilise action and retainmotivation.2. Clarity of intent: Being clearabout performance parameters andbold enough to deal with matters asthey are is a critical capability formanagers. Most managers eitherfind it difficult to address non-performance issues or deal with itbadly. Remaining focused on factsand information rather thanclouding it with any other judgementwith the individual can deal with itfairly and objectively. This allows themanager to address an issue as ithappens for eg. She could have atough conversation about a mattergone wrong in the morning and endthe day with an appreciation for anachievement, without cloudingeither with a judgement about theindividual.Dealing with unrealisticexpectations: While most of whatwe dealt with so far has been in thecontext of manager's interaction withhis team, this section focuses on howthe manager can be assertive inmanaging expectations with hissuperiors and peers in order toenable his team to operate at theirbest. Being assertive in managingexpectations regarding deliverydeadlines or quantum of work ortargets is an important part of the


HC


� It becomes imperative to support a young manager as he transits from individual

contributor to a manager role, or moves into a leadership position ahead of time.

� A manager is the pivotal link between the team and the organization and it is vital

for her to recognise that responsibility early on.

� Upholding the organizations culture and value system, being an advocate for

organizational processes and representing the leadership well are all part of this role.

� Assertiveness on the other hand is a key indication of emotional intelligence arising

out of conviction yet rooted in empathy. It is about stating what needs to be stated

without judgement and without feeling the need to run down the other person.

� Assertiveness is a reflection of security because you don't need other person's fall

in order for you to rise!

takeaways

manager's role. This will enable theteam to meet their commitments,stretch their capabilities and deliverto expectations.

In the Raymond contextAt Raymond, over the last two tothree years there has been an activeeffort to build capabilities, skills andmindset at people manager level.Three hundred of our people

managers effectively manage 3000plus management staff acrossbusinesses. We have designed variousprograms and interventionsmentoring our people managerswith -

All that we have discussed thusfar assumes a certain level ofmaturity in the individual. This wouldhelp him manage his owninsecurities; need to look good at

the cost of others and anydemonstration of aggression thatborders on disrespect. All of thiscomes with time and experience. Butthe good news is that youngmanagers with high potential are alsothose who are higher on theirlearning agility and therefore if theright development support is given,young managers can quickly growinto outstanding leaders.


India is one of the youngest counties in the world - theaverage Indian is just 27 years, and more than 50 percent of the population is below 25 years. This meansthat the average age of employees will continue to

RECRUITMENT

A vision of futurerecruitment

drop across any organization, including seniormanagement levels. How do you identify potentialemployees from this young talent pool? How do youcommunicate with them?

With the millennials being the fastest growing segmentin the workforce, the traditional workplace definitions,management styles and corporate culture are changing.The 'why' generation (as they are sometimes referred to)are more result oriented, with fresh and bold

Good or bad hiring decisions seal the fate of many organizations. Over the years,

the recruitment landscape has undergoing a fundamental seismic shift. Traditional

recruitment strategies have given way to evolving recruitment trends and social

media hiring is definitely a step forward….- by A.T. Rajan

perspectives, extremely comfortable with technologychanges, and has clear expectations from workplace.

Meanwhile, business landscape is also changing. Thekey technology trends that will enable and drive thebusiness transformation in the coming years is going tobe SMAC, i.e., Social Media, Mobile, Analytics and Cloud.The developments in these areas are expected to changethe way we connect and transact with each other.

It is in light of these social, demographic andtechnology trends that we should see the future trendsin any business environment, including talentmanagement. Let us make some educated guesses aboutthe recruitment trends of the future:


1. Going digital and onlineWhen was the last time you advertised a vacancy in anewspaper? Even if you have, the possibility is that youalso gave an option to the candidate to 'apply online'.

Going digital and online means numerous searchoptions and filters that can help you identify and shortlisttalent from a massive pool of aspirants. More and moreonline assessment tools will become available forevaluation of competency, skills and knowledge, as wellas personality profiling, especially applicable for frontline hires which could constitute over 60-70 per cent ofyour manpower needs.

A logical extension of online platforms is mobilephones, which has already changed from a masscommunication tool to a dynamic transaction platformsuch as banking and e-commerce. Mobile as arecruitment tool will also mean a change in mode andtone of communication and language. By the way, haveyou heard about L'Oreal accepting job applicationswritten in emoji?

2. Social media for hiring - End ofCurriculum Vitae is near!Organizations have been using social media primarilyfor PR and customer connect, and has now become an

RECRUITMENT

integral part of any digital marketing strategy. Now, socialmedia is increasingly being used by recruiters.Recruitments through social media enable organizationsto engage potential candidates at multiple touch pointsacross channels. In addition to showcasing brandmessages, companies are using social media at variousstages of recruitment such as profile search, contact,and referrals.

An online profile, such as in LinkedIn, stands toscrutiny by one and all, and hence tends to be morereliable than a conventional CV. This could meanacceptance or even evaluation based on social mediaprofiles. In addition, social media allows employersvisibility of the candidate's online behavior, communitiesand network, which can give great insight about thecandidate at the shortlisting stage itself.

For many organizations, debate is still on aboutblocking access to social media at the workplace. This isexpected to change and organizations will soon start toembrace social media for business applications in a bigway.

3. Big data & analyticsA critical role in your organization suddenly falls vacant.You call up your recruitment agencies or the talent


consultants as they would like to callthemselves, and share the job roleand description, along with specificrequirements. And then it starts -the endless supply of CVs, probablysourced from online job portals likeMonsterindia and Naukri.com,coming to you based on 'key word'searches. On the top of this, youalso have your own databank ofprospective candidates, referrals, etc.How do you identify your candidatefrom this voluminous data?

You will be able to use big dataand analytics tools to screencandidates by matching the job rolewith candidate profiles. In addition,these tools can be used to filter andassess people's online footprintacross channels to give a 360 degreeview of the candidate and not justwhat is projected on the profile.

With technology playing a moreactive role in HR, the recruitmentprocess outsourcing will evolve as a

BPO, much more IT enabled andresult oriented. HR managers willneed to collaborate with the ITmanager to explore how technologycan help various functions within HRdepartment, including recruitment.

4. Engaging passivecandidates throughprofessional networksIt is said that over 75 per cent ofemployable population are passivecandidates - they are satisfied withtheir current jobs, but are open todiscussing better opportunities.Realizing this, companies havealready started recruitment as andwhen talent is available, moving fromstandard practice of recruitmentagainst vacancy, so as to build atalent a pipeline within theorganization.

However, with raising salaryexpectations and pressures on costs,there is going to be a limit torecruiting passive candidates.Employers will need to focus ondeveloping professional networkthrough communities and discussionforums to connect and engage withpassive candidates, developing atalent pipe line outside theorganization which they can tap intowhen required.

5. Project basedemployment - Temping willget more respectabilityA recent survey by Tower Watsonshows that job security is the numberone reason people consider forjoining an organization. However, thesame study also finds that over 40per cent of highly engagedemployees could leave their jobs inthe next two years, indicating thatengagement does not imply loyalty.In another survey, it was found thatmore than 90 per cent of millennialsexpects to stay in a job for less thanthree years.

This is an indication that, goingforward, job satisfaction will takepriority compared to Job security. Ifso, it makes immense sense for boththe employer as well as the employeeto go for short term project basedcontracts instead of a role basedemployment. The benefits of temping

include flexibility, independence, andexposure to wide variety of job roles,which incidentally are the top threeexpectations of today's youngster atthe workplace. This will mean achange in type of job contracts,currently based on an assumption oflife time employment, to movetowards project based contractsfocused on accomplishment of resultsand commensurate rewards.

6. Employer brand image -Hello Marketing Manager!Salary and perks may be one of thekey drivers to attract talent, but itcan never become the differentiator.Studies show that organization'sreputation as a good employer is oneof the key drivers to attract talent.So, organizations will invest instrengthening what a potentialcandidate perceives about the brandas an employer.

Marketing managers usesegmentation, targeting andpositioning of customers to identifyand pinpoint the specific customerfor their products and solutions.They use digital marketing tools toconnect with their target customers,build conversations and engage themthrough multiple touch points.Future HR managers will work withmarketing managers to work onsimilar lines to identify potentialemployees, connect and engagethem, and utilize the network for apresent or future recruitment needof the organization.

Where does all this leave our HRmanager, whose strength till now wason building personal relationships,physically connecting, engaging andmotivating people? The role andprofile of an HR function willcontinuously evolve, with changingtrends social, economic and culturalenvironment. The HR manager willneed to continuously keep oneselfabreast of these developments andtrends. Technology will do a greatjob of helping you identify a set ofcandidates satisfying your presetcriteria. But finally, you will need areal person to interview and evaluatetheir organizational fit. This will notbecome an automated process, atleast for some time now.

Mr. Rajan in addition to his current

role as the Senior Vice-President &

Chief Strategy Officer at Ricoh India

is also responsible for Strategic

Planning, Human Resources and CSR.

With over 26 years of experience in

various technical, commercial and

managerial functions across

industries, Rajan is actively involved

in the development of Ricoh India’s

Growth strategy.

A.T. RajanSenior VP & Chief Strategy Officer

Ricoh India

RECRUITMENT

HC


Work from home:Does it really work?

Employees who work from home are said to have higher job satisfaction and are less

likely to leave than their colleagues working in the office. Well, many employers differ….

Employee collaboration goes for a tossWorking from home restricts employee collaborationand learning - employees collaborate a lot better,when they are on the work floor, across tables, meetin the corridor or catch-up over chai. Workfrom home confines this opportunitysignificantly. It does not allow employeesto share ideas, which can be mutuallybeneficial. While you are at home, onetends to question their ownproductivity. Employees begin tointrospect, dwelling on whether they aretruly attuned to the work at hand. Infact, they may be easily distracted bytelevision or family chatter that could leadto poor performance levels. Working fromhome can hamper speed and quality is sacrificed. Theemployee's ability to give his/her 100 per cent can becompromised due to other familial obligations.

There is also the matter of infrastructure costsincurred by the company. For example, companies willhave to deploy capital to facilitate smoother functioningfrom home (laptop and portable internet). Additionally,it would be important to note that there are someroles, where one cannot possibly work from home.

Another matter of concern is that there is noavailable data to validate whether one is better thanthe other. So, while work from home is a greatthought, the concept is yet to catch up in India in abig way. One can see success only when the companyand its leadership believe that all employees arealigned to the company's overarching goals and trustthat they will continue to be productive while workingfrom home.

Flexibility of time, no commuting and lesseroffice distraction boost productivityThe mode and method of working is derived out of need

and nature of business. The 'work from home' model isextremely workable for industries like IT,

publishing, advertising, etc., wherein thenature of business is click and portal based

and so the activity is also similar. Itprovides flexibility to an employee so thathe can organize his priorities at home andcan contribute his best for business. It alsopromotes the engagement of employee as

he or she carries positive view about theorganization and the manager for being a

caring organization and superior. The jobs whichdoesn't need micro supervision and which are

project based assignments are ideal ones for 'work fromhome' situation. Flexibility of timings, absence ofcommuting and lesser office distraction is key factorswherein employee productivity goes up in thisarrangement. Even for such jobs employers are also atadvantage side as they save cost of office expenses. Thework from home model may not be workable forindustries like manufacturing, healthcare and hospitalityservices, etc., as the nature of business demands onground availability of team. 'Work from home" cultureenhances employee satisfaction and nurtures healthy andproductive workforce, but it can be viable to specificbusiness and specific nature jobs. It has some limitationfor blanket implementation. Employers require takingsuitable call based on the productivity and feasibilityfactors primarily driven by the nature of job. Nevertheless,tailor-made and flexible working always enhances theemployee satisfaction and improves focus of individual.

SANTOSH RAIDGM - HR & IR, L&T Special Steelsand Heavy Forgings

In a career spanning 17 years in HumanResources and Industrial Relations, Rai hassuccessfully anchored various productivityimprovements and manpower rationalizationinitiatives including job evaluations. He hasalso practiced innovations in talent acquisition.

Subramanian Suryanarayanan brings with him17 years of eminent experience with more thana decade spent with Tata AIG. He has worked

with companies like RCN Corporation, ShawWallace Company, Eureka Forbes Limited and

Global Tele-Systems Limited.

BY SANNITA CHAKRABORTY SAHA

DEBATE

SUBRAMANIAN SURYANARAYANANNational Head - Human Resources

Tata AIG General Insurance


O

In the last decade, the need for a

comprehensive succession strategy has

found favour within companies. However,

in spite of growing acceptance, the actual

implementation is still not widespread,

with only a handful investing the time and

effort needed to build a potent succession

strategy.

Cultivating‘ready now’leaders

rganizations in India are finallycoming of age in terms of at leastacknowledging the importance ofdriving businesses and careers

through creating succession ready pipelines.By their own admission, most Boards andtop leaders say it's inadequately addressedand that the readiness gap betweenincumbent leaders and their next in line isalarming.

Dissatisfaction with the statusquoA 2014 global study by Korn Ferry, in whichover 1,000 business leaders were surveyed,found a unanimous recognition of thedangers of not getting successionmanagement right. Despite this - less thanone-third of business leaders surveyed felt

HR & BUSINESS

- by Smita Anand

that their organization were doing a goodenough job of developing and cultivating"ready now" leaders. This dissatisfaction wascoupled with findings of flawed successionmanagement programs and a propensity fororganizations to promote ill-suitedcandidates into key leadership roles.

Lack of complete leadershippipelineA few other findings shed more light on thecurrent state of succession. Firstly,organizations are not reaching far enoughin identifying potential candidates to createa supply of "ready now" leaders. The globalreport has shown that organizations typicallyonly include 38 per cent of mid-levelmanagers and 13 per cent of skilledprofessionals in their succession


HR & BUSINESS

management programs.The situation in India is in line

with the global findings - most Indiancompanies are honestly confrontingthe reality that they do not have aproper succession plan in place andeven when they do, it typically onlyaddresses the CEO's role. Boards arereporting back somewhat sketchyand "tick in the box" discussionsaround succession for CEO and keyroles. Or admit that successionplanning is on the agenda but notreally discussed. In the case of global/multinational companies, there isreasonable concern at the fact thatCEO succession as well as assignmentof roles/positions to keymanagement positions is largelypresented as a fait accompli and withnegligible interest in any contextualvalue add from the local Board.

Build versus buyWithout casting a wide-enough net,organizations turn to hiring fromexternal sources ("buy") instead ofdeveloping leaders from within("build"). While the ideal build-buyratio is 2:1 according to the study,almost half of respondents said theywere more dependent on outsidehires than internal promotions.

We asked the same question to

our clients in India and found thatonly 15% of the organizations saidthat external candidates performbetter as CEOs in their organisation.Yet, a staggering 86 per cent of theorganizations said that improvingleadership capability and growingleaders internally is their biggestchallenge. More often than not, thepressure is on about the extent towhich it's often "in the news" with anegative spotlight. Exciting butdismally infrequent are reportedcases of strong commitments as wasthe case when Aditya Birla Groupannounced plans to groom existingemployees and not hire topmanagers externally for two years.Or the robust engagement of theMarico Board in succession planningand the presence of "drop deadsuccession plans at Birla, Godrej andRPG…It's also interesting that thoughthere is overwhelming evidence thatcompanies are reportingdissatisfaction with status quo - onlya handful are taking some definitiveaction to address this in India.

Lack of confidence intalent decisionsA major problem reported byorganizations is the lack ofconfidence in talent decisions. In our

study, it was found that only 51% ofrespondents are confident in theirorganisation's ability to identifypotential leaders. This lack ofconfidence also eventually drivesorganizations to rely on externalhires.

The situation is similar in India.Many organizations reported havingno standard or consistent methodfor evaluating both internal andexternal candidates. Multipleassessment constructs/tools withina single organisation are creatingeither data overload or confused andfragmented language of desiredcapabilities/traits. To compound this,even where the language ofassessments is consistent, there is adiscomfort with differentiating theirtalent leading to egalitarianism andan erosion of meritocracy.

Making succession anagenda itemOne of the key issues in themarketplace today is incumbentdiscomfort when it comes to thetopic of succession. We have seensome leaders take on a defensivestance, and even their Boardscarrying the discomfort thatpreparing incumbent replacement isa threat and a admission of mortality


which will lead to either incumbentdisengagement or speculation in themarket.

From our interactions withorganizations in India, we have alsonoted a trend of MNCs not typicallyhaving succession as an agenda itemat the country level and thedisproportionate reliance on"Corporate" for career progressionsfor all key leadership roles. There isa reported lack of visibility in thismatrixed environment on who needsto be groomed to be the nextleaders. This disconnect may resultin frustration and a sense ofhelplessness locally.

Risks of failed promotionsand hiresAt the heart of the current troublingsuccession situation in India is the

lack of a thorough and systematicapproach towards successionmanagement in many organizations.Failed promotions and hires canresult in exorbitant costs to theorganisation due to significant lossesin productivity, impact on morale,negative public impressions, anddisengagement of staff. All thesenegative war stories can be a strongdeterrent to succession managementprogrammes being tackled right fromthe onset.

The way forwardIt is clear that having a steady streamof global 'ready now' leaders iscritical, especially in light of businesssustainability. Confronting this realityis a great first step in getting to dothe right things. Leadershipeffectiveness and successionmanagement therefore, has to beseen as a business imperative thatcreates careers even as it de-risksand strengthens businesses.

Succession is the lifeblood of anorganisation and calls for deliberateplanning at all levels. Firstly, the rightsuccess profiles need to beestablished for critical roles.Secondly, organizations need toassess and identify the talent theyhave for current and futurecapabilities. Finally, they must setabout closing any gaps identified sothat they have the ready supply oftalent that can be deployed in keyleadership roles at the right time. It'san art and a science and simplifyingthe complex process of creatingtalent readiness is the minimumrequisite level of proficiency that anorganization needs to build.

This change needs to start at thevery top. The time is indeed right tokeep CEO succession as a standingBoard agenda item since it ensuresa multi-layered, multi-generationalprocess. In India, Boards have startedacknowledging that it is one of themore important accountability of theBoard. However, the reality is thatmany boards have not or are notable to find the time to address thisin a meaningful way.

As this process cascades,organizations should look at thecomplete leadership pipeline and

ensure that they spread a wide netto look within the leadership layersand potential leaders across theorganisation. This allows them tobecome intimately familiar with allhigh-potential employees in theirorganization and continue to buildup their capabilities - there could bemany more CEOs in their companythan they may have known!

Most importantly, CEOs andleaders at the top have to makesuccession an agenda item and rolemodel to create a culture of effectivesuccession management. I have hadthe privilege of working with CEOswho have been passionate aboutwanting to create a legacy throughidentifying and investing in potentialsuccessors. They succeeded inembedding secure leadershipbehaviours and the right energy andcommitment around development asa culture. Following the CEO's efforts,the natural cascade happened- withthe next in line leaders becomingmore receptive to succession, andoperating as coaches and mentors.

What stands out today as anexception rather than a rule, needsto become a way of life in India. Theonus is on boards and topmanagement to step forward andbecome evangelists of creating robustsuccession pipelines to help us trulythrive in the competitive 21st centurybusiness world. HC

HR & BUSINESS

Korn Ferry - A leading

international executive search

firm, recently published a report

on Succession Management that

showcased an alarming rate of

dissatisfaction senior leaders

and executives. According to

study, only one-third of

respondents (36 per cent) said

they were satisfied or very

satisfied with their company’s

succession management

programs, and less than one-

quarter (23 per cent) saying they

have a solid pipeline of “ready

now” candidates.

Smita Anand is Managing Director

for Korn Ferry Leadership and Talent

Consulting and leads the CEO and

Board Effectiveness and Board

Effectiveness Solutions in India and

Asia Pacific. She is based in the Firm’s

Gurgaon office. She has over twenty-

five years of experience in leading

global management consulting and

human resources functions. Earlier in

her career, she held consulting and

senior leadership roles at Ernst &

Young and Price house Coopers,

where she headed their human

capital services industry.

Smita AnandManaging Director for Korn Ferry

Leadership and Talent Consulting


Beyond the Paradox!!

"Those who do not learn from history aredoomed to repeat it" said the famousphilosopher George Santayana.

It is indeed obvious that the fundamentalmantra that engulfs the entire Gen-Y from theday they step into the world of workforce is tochallenge and change. Time Magazine in its20th May 2013 cover depicts Gen-Y as "The MeGeneration!" who is lazy, entitled narcissists,who still live with their parents and selfinterested. The reason seems quite obvious -they don't preferably want to repeat the sameversion of a sense of nervousness unlike theirparents - "the baby boomer" generation. Thereis a high expectancy of reshaping the entiremodel of work culture amongst Gen-Y.Conventional and long standing processes andproven practices are being challenged andrejected.

It is quite surreal that Gen-Y gets engulfedinto several misnomers of a paradox that comefrom the despair of their predecessors. Maybe abetter relook on the myths and perceptionsversus the reality can throw light on the bigpicture that is encompassed amongst the Gen Y.

Gen-Y is considered to have a sense ofentitlement but it isn't totally an inherentpersonality flaw but also due to their babyboomer parents who stunt their kids byenabling an obstacle free and non-negativeenvironment around them. Hence a sense ofentitlement is obvious and it becomes ratherdifficult for the employer to engage and extractthe output as expected. What really could be asolution is a mutual interactive understandingwhere the boss provides constructive criticismreflecting the confidence while the Gen-Yworkers realize the difference between homeand workplace.

Another myth about Gen-Y that inflicts a lotis poor work ethics and practices. While itindeed is true that life comes first before work,there indeed is no practical existence of work-life balance. It just is one thing in the end that

BY SUDIPTA KUMAR GOGOI

Sudiptå Kumar Gogoi is an astute project management resource whois currently engaged as the Project Manager for India Region ofMonsanto Global Engineering team supporting the infrastructuraldevelopment for row crops & vegetable business for the nation. Prior toMonsanto, Sudiptå was engaged with infrastructural project works atDr. Reddy's formulation division.

HC

GEN-Y SPEAK

matters - how you have lived your life - as anore in the blast furnace anticipating a mouldingor the butterfly that enjoys its work collectingnectar from garden to garden. Gen-Y preferswork to be fun and flexible fitting in their livesseamlessly with it. Indeed it is an opportunityfor the current employers to offer flexible workschedules while also pushing in the culture ofbeing an effective employer. Gen-Y workers tooneed to readjust some of their attitude thatdoesn't clash with the traditional expectation ofworking beyond hours for meetingexpectations.

While some people refer to this cohort ofpeople as "Generation (Wh)Y" for so much anissue of a lack of respect for authority as muchas it is to question everything they don'tunderstand. Gen- Y is very independent andfearless to challenge the status-quo. The perfectgain for the employers is to realize thatquestioning often lead to answers and solutionsthat actually is more productive and efficient.Gen-Y workers too should learn to choose thebattles carefully and not raise question forevery single decision made.

In a nutshell, investing time, resources andenergy to listen and stay connected with theGen-Y is the key to a successful workplace. Ifthere's one thing we know for sure about Gen-Y, it's that they like to have their voices heard,and to feel empowered. Whether in the virtualor real world, perhaps the key to understandingthis generation and knowing how to engagethem is to simply listen to them and workaround them, notwithstanding the fact that itmay be a bumpy ride for both employers andGen-Y workers in the years ahead.


W

Every bit counts

hen it comes toCorporate SocialResponsibility, at TescoHSC, we are driven by the

CORPORATE SOCIAL RESPONSIBILITY

belief that collectively we can makea lot of difference to communities inwhich we operate. Two factors areprimarily responsible for effectiveCSR delivery: colleagues working oncommon themes close to their heartand a spirit of volunteering.

CSR is a pledge for us that ourcolleagues at all levels work to fulfill.Since healthy colleagues result insustainable and more productiveworkplaces, our efforts focus onhealth and fitness, environmentconservation, and empowermentthrough skill building. It is importantthat organizations walk the talk onCSR by taking up local issues and

encouraging colleagues to volunteera certain number of hours tosupport the society.

Skills4Life is a program we run inpartnership with NGOs to impartessential life skills to young peoplefrom less privileged backgrounds. Tocite an example, our colleaguesvolunteered at a Government HigherPrimary School in Marathahalli,Bangalore and did the following:� Took ownership of reviewing the

curriculum� Organized a 'Sports Day' to

encourage students to developan interest in competitive sport

� Set up a computer lab with 10computers, fans and lighting andinstalled an inverter since powercuts were frequent

� Painted classrooms to give the

school a complete makeoverKeeping in mind that diarrhea

related diseases, resulting fromunsafe water, claim the lives of morethan 186,000 children every year inIndia, volunteers are taking steps tomodernise sanitation in the school.

Colleagues have helped set up areverse osmosis filter to provide safedrinking water to students. We arealso supplying children with footwearso they don't have to walk barefoot,which puts them at risk fromdiseases.

Our Youth4Ever programincludes fitness, aerobic classes,sports events and an in-housegymnasium open for all colleaguesto use during work hours. OxfamTrailwalker, another of our activities,involves four-member teams of

Tesco's focus on health and fitness, environment conservation, and empowerment

through skill building is driven by the belief that collectively they can make a lot of

difference to communities where they operate. - by Nick Williams


CORPORATE SOCIAL RESPONSIBILITY

walkers who cover a distance of 100km in about 48 hours, battling roughterrain and weather. The event notjust pushes the body to its limits butalso helps Oxfam raise money to fightpoverty and injustice. Last year weparticipated in the event for thesecond consecutive time and wonaccolades for our contribution.

We organized the Tesco HSCHealth Week to raise awarenessamong colleagues about diseases andhelp save lives through blooddonation. Last year 514 colleaguesparticipated in the blood donationdrive. In a country faced with a bloodshortage of 3 million units, ourcontributions can make a differenceto the issue. Colleagues alsoparticipated actively in the sessionson cancer and thyroid.

Care4Nature is a program thataims to raise awareness about theenvironment and effects of globalwarming. It also considers ways torestore vitality to our natural habitat.As part of the Government's SwachhBharat' Campaign, Tesco HSCvolunteers launched cleanliness drives,surveyed the area around the facility,and identified spots which neededurgent attention. They involved localcivic authorities and cleanedpavements. In the months to come,we plan to amplify and expand thescope of the cleanliness drive.

We organized CSR Impact - acollaborative workshop, togetherwith the Whitefield Export PromotionParks Industrial Association(WEPPIA), on April 4, 2015 at ourcampus. More than 40 organizations,including GE, Mindtree, InventureAcademy as well as governmentofficials and NGOs debated,discussed and defined priorities forthe forum partners.

Our colleagues went on a cleaningdrive around Seetharamapalya Lake,Whitefield, along with associates fromthe Abeto Foundation, WhitefieldExport Promotion Industrial Park(WEPPIA), Whitefield Rising, andBruhat Bengaluru Mahanagara Palike(BBMP). Another team of 50colleagues spent time cleaning theMunnekolala Lake, near AECSLayout, so citizens in the vicinity canbenefit from cleaner surroundings.

We have also taken up asignificant number of initiatives toreduce our carbon footprint. Oursmart energy initiatives are helpingsave nearly 160000 kWh of energy.Our move to LED lighting hasreduced energy consumption forlighting by 50 per cent. Theintroduction of aerators in taps hassaved nearly 73, 00,000 litres of waterannually. Meanwhile, rainwaterharvesting has significantly reducedour dependence on groundwater.Our 15-acre campus is home to twounderground storage tanks of 200kilolitres capacity each. These collectsurface runoff as well as rooftopwater. In a city like Bangalore withworsening water table levels, all thisis reducing freshwater consumptionto a great extent and helpingreplenish the water table.

We generate 400 kW worth ofsolar-powered energy. Besides this,we are running a test project thatuses the evening wind for indoor aircooling! Additionally, we areplanning to deploy lithium-poweredcars so that our colleagues have theoption of commuting by companytransport which is optimized forenergy efficiency.

We observe World EnvironmentDay every year to encourage positiveenvironmental action. At Tesco HSCwe believe our planet's future is acollective responsibility, reflected inour sustainable and consistent effortsto be environmentally friendly. Thisyear, we observed the WorldEnvironment Day with colleague-ledinitiatives such as an afforestationdrive, Swachh Bharat CleanlinessDrive, a unique 'Greenfie' campaign(that invites colleagues to share'selfies' along with a green statement)and a contest for colleagues'children. Leading up to WorldEnvironment Day on June 5th andthereafter, we have various initiativesin which colleagues can participateand contribute to building asustainable future.

During the Joy of Giving Week,colleagues donate to the lessfortunate in cash, kind, by way ofvolunteering their time, or sharingexpertise. The first two days areabout giving to those in need and

the third day is about giving back toour colleagues. Last year, we raisedINR 3, 00,000, which we donated toour partner NGOs. These includeKarunashraya, a free palliative carecenter for advanced stage cancerpatients; Bosco, an NGO engagedsince 1980 with rescuing andimproving the lot of street children;and Association for People withDisability (APD), a non-profitorganization responsible forrehabilitating underprivileged peoplewith disabilities.

We also participate in the IndiaGiving Challenge. Give India, anonline donation platform, allowscolleagues to make donations fromtheir salaries to causes close to theirheart. Over 2,000 colleagues are partof this program. From November2011 till date, colleagues havecontributed over INR 80 lakhsthrough this program. Colleagueswere also involved in the relief effortsthat followed the recent Nepalearthquake and the devastating floodsin Jammu & Kashmir last September.

Going forward, our colleaguesplan to work on challenges consideredcrucially important to the communityaround us in Whitefield.

Nick Williams is Director of Human

Resources & Corporate Communications

at Tesco HSC. He has been with Tesco for

10 years. He holds a business bachelor's

degree and master's degree in HR from

Aston University.

Nick WilliamsDirector - HR & Corporate

Communications at Tesco HSC.

HC


From creativity toinnovation

TECHNOLOGY

The finest way to make an innovative and effective organization is to

disperse leadership and empower each employee all the way through

training so that they become creative and effective leaders themselves.

- by Anubhuti Saxena


In today's era an organization'scrucial asset is not the rawmaterial, technical processes,transportation system, policies,

TECHNOLOGY

or political influence rather it is thecreative capital- in simple words itis the pool of creative thinkerswhose thoughts can be put intovaluable products and services.Innovation has gained momentumin the headlines as one of thefundamental processes that must benurtured by every organization inorder to retain its viability. Thisarticle investigates the variousbarriers that come across Indianorganizations for promotinginnovation within. It also includeshow an organization can cultivate aculture for creativity and innovation,emphasizing the role of leadershipin it.

India holds a weak position increativity and innovation. Only fiveIndian companies are rankedamongst the top 100 innovativeorganizations worldwide. Indiancompanies fear long-terminvestments and are not ready totake risks. They believe more inusing present technology as a meansto bring innovation rather thaninnovating in technology.

Indian organizations do not lackthe innovation DNA, but it is oneaspect that has not been nurturedto its fullest. Indian companies faceseveral hindrances, which inhibit thefree flow of innovation.

Barriers to creativity andinnovation in Indian organizations

Following are some of thebarriers to innovation currentlyfaced by Indian organizations -� Lack of financial support - TheGovernment of India makes a lot ofnoise when it comes to films, arts,sports, etc., but when it comes toresearch, the importance given istrivial. Despite variousdemonstrations, the governmenthesitates to fund innovative projects.There is a lot of innovation inbusiness models, but long-terminnovation needs investment.� Risk intolerance- Entrepreneursin India fear to take up innovativeideas because with hugeinvestments comes the chances of

It is better to have enoughideas for some of them to bewrong, than to be always rightby having no ideas at all.

- Edward de Bono.

“”

failure. For new technology toevolve, the risk factor is alwaysinvolved and there is an assumptionthat the innovation might fail,therefore organizations tend to relymore on past technology rather thaninventing the new one.� Obedient society in India-It ishard for Indian customers to trusta new product from an Indianorganization. Indians are not alwaysready to accept change. It is in thementality that from the verybeginning students are encouragedto read books and write what theyhave learnt from them, if anyonecomes with some out of the box

thinking he is called disobedient andis regarded as one wasting a lot oftime.� Strict hierarchy andcommunication channels - Both actas obstructions for new ideas toflow. At times, employees havecreative ideas and also the ability towork upon, but they fail to conveythe information to their leaders.There are organizations that do notallow their employees to go beyonda specified domain and restrict themwithin certain boundaries. Theemployees just perform what isexpected out of them and do notfeel like contributing more. This maybe because of the fear of gettingrejected. Thus the environmentshould be such that encouragesemployees to transform their ideasand come up with something newand valuable.� Lack of training anddevelopment - There is always a fearattached to spending on innovationand a constant pressure is exertedon employees for short- termresults, this doesn't allow them tospend time to think and generate

creative ideas.� Scarcity of practical tools andresources- Creativity starts with ideageneration, but to bring that ideainto practice various resources arerequired. It is observed that oftenorganizations do not have amplenumber of tools and techniques totransform the idea into reality.� Workplace diversity- Due toglobalization, organizations havevariety of differences betweenpeople. The differences could bebased on the factors such as age,gender, race, ethnicity, personality,tenure, experience and more. Topromote creativity such differences

must be ignored. Morecollaboration and cooperativeapproach should be adopted toencourage pool of ideas. Thepresence of dissimilar mindsets inthe workforce enhances creativity.

Building a culture forinnovationThe way an organization goes aboutcreating a culture for innovationwould be unique for everyorganization. To think of bringing achange is very important. Themindset for developing creativityshould start from top managementand later permeate in the levels ofmanagement beneath. There is abelief that once the culture forcreativity is created, it will stayforever, but it is a wrong beliefbecause one needs to update andmodify itself as per the need of thecompetitive market.

Creativity can't be managed itcan only be encouraged. If anorganization wants to promoteinnovation, it should first removeall the communication barriers. Theorganizational structure should be


made flexible enough to encourageideas. To speed up things theinterconnection between variousdepartments should be strong andeffective. This will help in convertingthe idea into something valuablewithin less time.

When we talk about embracingchange, we are actually talking aboutbeing creative and encouraging newideas to grow. Handling change andits after effects is not an easy task,but if the organization is preparedand has that patience to bear riskassociated, it can easily walk throughthe tough times. It is said that peopleresist change, I disagree with this. Ibelieve that people don't like thechange that brings some detrimentaleffects along with. Everyone wantsto bring change in his or her ownlife to make it better, thus if changewould result in betterment nobodywould oppose it.

Creating an environment of trust

would help promote innovation. Aculture where the employer and theemployees trust each other alwayshelp in encouraging ideas.Multidisciplinary teams should becreated to inculcate sharing of ideasand thereby enhance creativity.

Listening to the employees andgiving them the right platform forinnovation is essential. Anorganization that follows only top-down approach cannot succeedevery time. Providing "free" time foremployees to experiment with newtechnologies, products, or processescan catalyze the innovation process.Google is one of the bestorganizations that inculcate a uniquestyle of encouraging creativity. It isfamous for its 20 percent timeprogram as per which employeesdedicate 20 per cent of theirworking time to independentprojects of their own choice. Thecompany has developed severalchannels for expressing and sharingviews.

Employer branding becomesimperative. The organization musttake steps to create a healthy imagein front of his employees as well aspeople outside the organization.

It is the need of the hour to beopen minded and do not discourageflow of new thoughts. Theorganizations should developpatience and be always ready toembrace the risks involved.� Five Indian companies includingHindustan Unilever and TataConsultancy Services - are amongForbes' list of the world's 100 mostinnovative companies (2014) thatinvestors think are most likely to"generate big, new growth ideas".Indian consumer goods companyHindustan Unilever is ranked 14th,followed by IT major TCS (57),construction services firm Larsen &Toubro (58), pharma major SunPharma Industries (65) and BajajAuto (96).

Incredible OPEN Innovationat HULUnilever R&D already has a longhistory of developing products thatmeet these exacting criteria and,looking to the future, all their

products incorporate social,economic and environmentalmetrics in their innovation plans.Some recent examples include:� An upside-down roll-ondeodorant that uses 18% less plasticin each pack.� Pure it, a battery operated homewater purification device which giveshouseholds in India access to clean,pure drinking water at low cost.� Small and Mighty laundry liquidswhich, because of their size andconcentration, reduce CO2, waterusage and transportation costs.� Comfort Easy Rinse fabricconditioner which minimizes theamount of water needed to rinseclothes.� Proactive margarines thatcontain plant sterols, clinicallyproven to lower cholesterol.

The role of leadershipLeadership is about helping peopleto learn, develop and grow. In this21st century -organizationalcreativity and innovation are the keysources of competitive advantage.Creative organizations do notemerge by an accident. It is theeffective leaders who drive anorganization towards achievement.Leaders are required by everyorganization to control changes inculture and structures in ordertransform it into productive one. Itis the leaders who act as catalystand bring success for theOrganization. Leaders providedirection and momentum for goalachievement.

To make creativity andinnovation begin in any organizationit is essential to put right leaders atright positions to begin the right flowof information for success. Theleaders must themselves beinterested in creativity otherwisethey can strangle the concept.Usually the top leaders have thepower to develop strategies forinnovation which makes them highlyimportant because if they fail toperceive and respond for renewal,they can obstruct creativity.

Leadership style fit for creativity-Not every kind of leadership stylecan promote creativity. It is the

TECHNOLOGY

Anubhuti Saxena is as Assistant

Professor at Lal Bahadur Shastri

College of Higher Education, Bareilly.

She is UGC- NET qualified in Human

Resource Management and

specializes in HRM &OB. Her areas of

interest include Employer branding,

Emotional Intelligence, Total Quality

Management and Performance

Management. She has presented

various research papers in National

conferences and her research papers

have been published.

Anubhuti SaxenaAssistant Professor Lal Bahadur

College Of Higher Education, Bareilly


collaborative style of leadershipwhich leads to open flow of ideasfor creativity. The authoritarian styleof leadership will stop the progressof the organization and will make itless productive. Today's organizationsare knowledge based, they are notdependant on a single top leaderrather they consider each employeeas a leader and try to fetch ideasfrom them.

Therefore, the finest way to makean innovative and effectiveorganization is to disperse leadershipand empower each employee all theway through training so that theybecome creative and effectiveleaders themselves.� The leaders should stop thinkingthemselves as pioneer of ideas ratherthey must empower employees togenerate a pool of ideas. Leadersmust ask questions that cause theirfollowers to think freely.� The organization must opendoors for people from differentculture, backgrounds and area ofexpertise. The leaders must take

advantage of such diversity.� The leaders must be well awarewhen to put control on creativityprocess- during commercializingstage or during the idea generationphase.� Leaders must be friendly andcooperative with the employees, bydoing so they create a healthy socialstructure. It would help in bringingout new ideas.

Organizational leadership is themost important feature of theorganizational creativity andinnovation dynamics. Creativeleaders build the foundation of strongorganizations. No organization cantransform or renew itself unless theleaders manage the process in theright way. Hence, the creativity of anorganization depends on how theleader creates an environment ofopenness that would allow creativityto develop.

In an essence to be successful inthe market, one needs to be creative.India is lagging behind in disruptiveinnovation and there are several

issues attached to its failure. VariousIndian institutes are carrying outresearch but these researches arelimited to publishing only, they donot get enough funds from theIndian Government. Organizationsfear failure and are reluctant to takerisks. For long-term investments,people do not easily participate andinvest. India is lagging behind inphilanthropic funding as well.Though India has not donesomething incredible in the field yet,there is still lot of scope. India hasgot intelligent human resource thatjust needs support from thegovernment. Leaders can help theirorganizations achieve successthrough innovation by stimulatingcreativity. Leaders must encouragetheir followers to think freely, helpcreate organizational culture wherepeople can take risks and even makemistakes. Leaders must supportdiversity for innovative ideas. Thereshould be an open environment ofsharing and cooperation in theorganizations. HC

TECHNOLOGY


W

There is an array of organizations that range from great places to work to no so greatplaces to work. A great workplace is defined not by the salary or vacation time itoffers, rather its all about the culture, prospects for upward agility, and the trainingprovided to employees.

What makes acompany greatplace to work?

orking professionalsspend almost one-third of their lives attheir workplace. Afterhome and family, the

workplace constitutes as the maincomponent of a person's life. Asemployers deal with rising rates ofattrition and wonder how to retaingood employees, a major questionthat arises is "what really makes anorganization a great place to work?"

The answers may be different fordifferent people in differentcircumstances. Hefty pay packages,highly competitive environment,leading industry personalities as

HR MANAGEMENT

- by Rajeev Bhardwaj

colleagues; are these signs of a goodworkplace? Or a prime location,novelty in design, well-equippedworkstations, exciting cubicles withcomfortable seating arrangements, agood cafeteria make up a goodworkplace? Or is it, the kind ofopportunities and exposure acompany provides to its employees?

To state the truth, no organizationcan ever guarantee 100% employeesatisfaction. However, anorganization is a great place to workif a majority of its people agrees thatit is. No company can ever stop itsemployees from looking forward tothe weekends! However, some 'best

companies to work' are able to maketheir weekdays enjoyable.

They may be offering similarremuneration packages and equallychallenging work opportunities, yettwo similar workplaces in an industrymay be drastically different fromeach other. While one may treat itsemployees as expendables, the othermay consider them a humanresource worth nurturing; while oneworkplace may have strict rules andprotocols, the other may be moreflexible to meet the changing needsof time. Apart from remuneration,appraisals and opportunities, the onething that determines an employee's


association with a workplace is itsHR practices or the way theemployees are treated at work.

Let's have a look at some factorsthat can potentially make anorganisation a good place to work:

Flexibility helpsThe old ways of functioning - ofstrict log in timings and straightjacketed protocols are now things ofthe past! The new age corporationsare more open to flexibility in rulesand protocols. And it has beenobserved that the moreaccommodating an organisation is,the more productive its employeesare. The use of modern informationtechnology enables employees toaddress their emails and work issuesremotely. Additionally, moreemployees can be allowed to workfrom home, and there can be greaterflexibility in timings. A person cantravel for an important personalwork and still be allowed to work onthe go. This approach is absolutelycrucial in retaining more and moreexperienced women employees,many of whom drop out of work orscale down their careers when facedwith responsibilities of motherhood.At Sun Life, our employees enjoy aflexible work culture. They are giventhe opportunity to work from homeon a need basis. Such a flexible policylets them strike a great work-lifebalance.

Do employees enjoy theirwork?Once in a while, we all tend to getdissatisfied with our work or stressedout due to work pressure. However,if the daily work becomes a drag,you must know there is somethingwrong with the workplace. No matterthe amount of work, as long asemployees enjoy it, they will be fine.For this to happen, it is essential notjust to compensate them well butalso ensure a team approach to work.The manager should always knowhow much work pressure anemployee is handling. Teamworkshould be encouraged andemployees should be nurtured tostand for each other. There should aculture of help and support in the

organization and this flow from topto bottom. If the big boss stays backto help a team in distress, the entireorganization will tune to such anapproach.

Regular feedback should also betaken from employees about howthey desire to make the workplacemore enjoyable. If an employee is inlove with his/her work, half the battleis won. An infrastructurally well-equipped workplace with facilities likecafeteria, resting place, break-outzones, and gymnasium and meditationrooms can make the workplace moreattractive to employees. However, ofequal importance is the cooperationbetween administrators, managementand employees.

Rewards, recognition &respectThese are three basic 'Rs' that formthe foundation of a good employee-employer relationship and make anorganization a great place to work.While for every good performancean employee should be dulyrecognized and rewarded, respectingeach employee should be theforemost priority of everyorganization. This entails giving duerespect to their opinions andsuggestions, making sure each oneparticipates in important discussions,and encouraging every person tospeak up his/her mind. Frequentappreciation of their work and effort,certifying them with honors andmaking them part of importantdiscussions further make employeesfeel responsible for the organisation'sgrowth.

Sharing is caringEmployees feel important andrespected if important organizationaldevelopments are shared with them.This makes them feel like a part ofthe organization. While employeeswork hard to help the company scaleup, top managements often tend tomaintain secrecy about thecompany's performance and othervital information. Cascadinginformation about company'sperformance and giving employeescredit for it will enhance their affinityto the work place. At Sun Life,

HR MANAGEMENT

Rajeev Bhardwaj, who heads the

Human Resource function at Sun Life

Asia Service Centre, is a veteran in the

field who has spent 25 years

contributing to the HR policies of

diverse organizations across sectors.

Over the years, Rajeev has been

associated with a slew of global

organizations such as ABB, Coca Cola,

and Intel Technology, among others.

Before joining SunLife Asia Service

Centre, Rajeev spent five years helming

the HR teams in LexisNexis India, a

leading global provider of business

solutions in the IPR and legal space.

Rajeev BhardwajVice President - HR

Sun Life Financial Asia Service Centre

HC

employees are given regular updatesabout organizational priorities andachievements through frequentlyorganized town halls and connectsessions. This makes employees feelvalued and accountable.

All work and no play makeemployees dullThere should be more than work atoffice. It has been noticed thatoffices that engage employees inmulti-faceted activities other thanregular work are regarded as goodplaces to work by their employees.Apart from monthly activities suchas outdoor meetings or excursions,initiatives such as interest groupsand clubs help employeesadditionally pursue leisure interestsat their workplace.

TThe underlying challenges of the

pharma industry are retaining

employees, dealing with multi-

dimensional manpower and the

ever increasing attrition rate.

Hence, it is imperative for HR

managers to find the right talent

management model for the near

future, not to mention the long

term.

he role of HR department in any organization isvery crucial for the company's success. As thebusiness world changes so does the role of HRprofessionals. HR manager needs to be a coach,counselor, consultant, employee's advocate,business strategist depending upon variedsituations. Since human resource is a business-

driven function, its effectiveness depends on a thoroughunderstanding of the strategic corporate direction, as well asthe ability to influence key policies and decisions.

The combination of happy and satisfied employee is rareto find these days. If an employee is equipped with the both,it not only gives the feeling of being worthy but also helpshim/her give their best to the company. However, as saidsuch combination is rare so there are problems being facedby employees today, in terms of either compensation, ahealthy work environment, a support team or many morethat ultimately leads to attrition. Being a highly organizedand knowledge oriented industry, pharma sector requiresemployees who are highly skilled and talented; the loss of an

HR ISSUES

- by Pradip P Sachdeva

What ails thepharma industry…


employee not only effects on the company negatively, butalso dis-aligns other employees on their contributions.

Earlier, the key role of HR was limited to recruit the rightcandidate for a job and to retain them. It was just thestarting period for the pharma sector. Companies were notvery aggressive or the competition was not veryhigh. But now it has beenextended to not onlyrecruiting but training,motivating, improvinginternal communication,ensuring workplacesafety as well asperformance appraisals.This further helps inmotivating andencouraging employees inconstantly deliveringproductive results. Thewhole culture standschanged as the competitivespirit is being forced uponemployees. In earlier times,flow of information wasrestricted whereas today it'sjust a click away. Withincreased exposure and handytechnology, HRM has emergedas an important tool for organizations'recruitment and retention strategies.

Due to globalization, many companieshave entered in the IndianPharmaceutical sector which hasresulted in enormous exposure to theemployees. This has also increasedexpectations of employees from theorganization. The production or R&Dexperience required for onecompany may not be the sameeverywhere; hence, it is importantthat the candidate should beextremely specialized in his/ herfield. Due to which it is alsoimportant that recruitment isdone after a detailed screening of thecandidate's profile.

Companies are usually in hurry to recruit people as theytend to believe that they can train the employee as per theirrequirements which makes recruitment at entry level difficultfor HR. Hence it is important to ensure that the candidate ishired for a department where one has an inclination towards.This will result an employee to be in a position to producethe desired results. Today in India, manpower is available,however, India is also churning up a lot of qualifiedgraduates, but the required importance to technical skill isnot sufficient; the focus should be on both technical skills aswell as soft skills to reap the best results.

Retaining employees in pharma Industry is one of thechallenging tasks. However, these challenges can be overcome

HR ISSUES

by ensuring that the employees are workingin a stress free and relaxed environment,which makes them want to continue workingin the same company. For beginners andnewcomers, the work environment and

culture of the company is a majorattraction to continue with the job. Tokeep in pace with the competition HRshould take care of the promotionalavenues which the employees would liketo have, as there is a lot comparisonbetween co-workers. There should notbe disparity in terms of compensationas it further increases the sense ofincompetence and lack of confidenceamongst the employees and to reduceattrition rate, it is necessary to haveeffective employee engagementactivities which would further openup lines of communication.

Though there are ampleskills and significant rise in thenumber of training institutes acrossthe country, the sole problem offinding the right candidate for the

right job still remains. Thestudents passing out of

the institutes lack intheir technical

knowledge, as theinstitutes are not

updating the studentswith the latest

development in thesector. Pharmaceutical

companies today are notable to find the best

candidate for theirpositions.Information technology has

made the world smaller andfaster through internet. Ideas

and large amount ofinformation now move freely

and constantly. The challenge forthe HR Managers is to make

good use of what informationtechnology offers and to make it to

be a viable productive part of work settingand tools. Technology is a double edgesword, easy accessibility and availability ofinformation in the public domain has alsoencouraged employees to tap betteropportunities. As a result, HR teams are ontheir toes in designing and then redesigningtalent management strategies, competencymodels, reward programs and engagementinitiatives, that are ground-breaking andhighly inspiring.



With fast developing technology even themost experienced people in the industry areoverpowered by the feeling of beingredundant as they do not have access to thelatest upgradation programs and trainings.Work environment also plays a major role. Itdepends on the culture of the particularcompany and varies from one company toanother. Most of the new recruits tend tocompare the work culture of the currentcompany with that of their previous one. Asno two companies can be the same, there isalways a difference and this comparisonforces people to get into a shell and notproduce the desired results or sometimeseven think of a job change.

Dealing with multi-dimensional manpoweris always a big task, where you are not only HC

HR ISSUES

Pradip P Sachdeva is the Head - Human

Resources at Mankind Group. With overall 17

years of experience of HR Generalist & Business

Partner, he spearheads a team of more than 30

skilled professionals and drives organizational

strategies to build and nurture company’s

Human capital base with HR capabilities like

Talent management, Performance & Reward

management, and Leadership development. He

has worked in many environments and

industries ranging from Engineering, Telecom,

BPO, Insurance and Banking.

Pradip P SachdevaHead - HR at Mankind Group.

managing people at work but also highly qualified scientistsin Research & Development. Specifically when it comes toMergers or Acquisitions scenario, which brings wide rangeof opportunities along with major challenges, where youneed to integrate your existing systems, processes andpeople with the new one.

Each employee in an organization has different needsand expectations. The ability to understand and respond tothe needs of different employees will be equally vital forretaining them and keeping them motivated. In thepharmaceutical sector, where the nobility of the purposeshould be the key motivation, many senior managersassume that the only reason someone might leave acompany is for money. Thus, whenever an importantresource wishes to leave, organization's response should beencouraging with fruitful offerings, instead of ignorance,keeping in mind the scarcity of talented resource in themarket.

Another major problem faced by the HRs of the IndianPharmaceutical sector is the increasing attrition rate. Factorsthat are responsible for high attrition rate are workenvironment, promotional avenues, compensation, etc. Manyemployees leave the company within a short span of timeand this trend is more seen amongst the freshers andmiddle level managers. The annual attrition rate is as highas 40 - 50 per cent. Sales & Marketing is where major hiringtakes place and is the highest contributor in this segment.This is due to the pressure to meet the targets. Whereas onthe other side, attrition rates at Research & Development isas low as 8 to 10 per cent.

Organizations' are struggling on developing talent withintheir premises, wherein they are unable to fulfill the demandof employees on skill enhancement. Effective developmentplan makes their employees competent enough tounderstand industry challenges to take appropriate strategicdecision accordingly. On the other hand, it not only createsthe culture of motivation but also provides the opportunityto grow within the organization. Whenever the organizationcomes with any change, resistance to change fromemployees becomes the major challenge to handle by HR.Therefore company should adopt the best changemanagement strategy and OD interventions to handlechange.

HR professionals must work towards initiating changethat are focused on creating high performing teams, reducecycle time for innovation or implementing new technology.Keeping in mind the challenges and rapid change faced bythe Indian pharma Industry the HR department should beextremely relevant to ensure empowerment of employeesand their careers through Training & Development andgrowth opportunities. The pharmaceutical companies haveto focus on Research & Development to survive in theglobal market with the advent of the product patent era aspart of its key deliverable. An active HR department mustrecognize the impact of the outside environment on theorganization, measure the impact of the competition on thedynamics of the job market and integrate the overallorganizational and functional strategies, apart from initiatingengagement programs.


Design as a career

Traditionally, designing was perceived asthe decoration that adorned a product,but in today's world, I personally feel,

design is a way of thinking. There has been asignificant evolution in the concept of designing.Digital, New Media, User experience andInteraction are now the leading formats withinthe design industry that consists of Interior,Architecture, Product and Fashion Design.

Design is associated with creativity andlateral thinking and enables one to utilize his/her creativity and ingenuity while providingsolutions and solving problems.

Having said that, the design industry alsooffers various unconventional career options.From bloggers to photographers to critiques,the design eco-system has increased itsrepertoire by leaps and bounds.

I feel that 'Design' is a field that operatesvery proactively in the zeitgeist of our timeskeeping abreast with cultural and social changesin society. Keeping pace with technologicaladvances, it directly shapes our future and hasthe potential to impact behaviours andlifestyles, be it architecture, product or fashion.

Career options for students who arepursuing professional courses or vocationalcourses, is comparatively easy but for the rest, alot of effort and thought process is involved. Alot depends on the interest of the student butchoice of the career and job prospects also playan integral role in deciding the career.

The younger generation is opting fordesigning as their career as the industry todayhas paved its way and can take the aspirants to adifferent career growth altogether� Satisfaction and fulfilment - The work of adesigner is one of the most challenging yetenjoyable. Every project is different. There isabsolutely no monotony in life. The thrill andthe challenge of work is exhilarating to say theleast.� Impressive salaries- Wage levels rise withability and experience, however, so the financial

BY NAVNEET GARG

HC

GUEST COLUMN

Navneet Garg is the Industry Dean & Founder, at The DesignVillage, Noida.

rewards are there for all to see.� A chance to build a career path- Anyonewho joins the world of design will need to buildan impressive portfolio of work in order toprogress on a career path.

The design industry has various otherunconventional career options and strongentrepreneurial potential, in this context, thecareer growth in the field is therefore mostlyself and opportunity driven. One can choose topace it well if employed independently. Othersmay prefer a career in web design or perhaps arole that involves the creation of corporateidentities.

However, if you are a part of a start-up or apart of a design firm, additional skills likemanagement help to gain a leadership andbusiness development role in the company.

Some of leading Designing Companies inIndia are Frog Design, Think Design, BeardDesign to name a few.

Like all other industries, designing also hascertain amount of challenges. The biggestchallenge is "ability to design and then produceto specific needs of the country/region".Designers should start thinking scale andimplementation while designing and need to betaught this thought process.

Moreover, in the design sector is that oursociety is largely functional rather thanexperiential. Design is all about enhancing andcreating experiences and therefore it still facesdevaluing in this respect and therefore thesector is yet to mature in terms of scale.

The gap between ideation and execution isanother challenge that needs addressing.

However, if a person is artistic, creative andcan communicate ideas and concepts withimagination, creativity, clarity and originality,he/she is deemed fit to be in the designingindustry.


With economy all set to grow above 7.5 per cent,likelihood of normal monsoon brightening upand with the new government setting in catalyststo pump up the economy, good times are here.

EMPLOYEE RETENTION

General corporate mood is upbeat and companies aregearing up to leverage the good run. So the hiring will beup. All credible studies point towards most optimistichiring scenario in India, well above global average andAsian counterparts with median salary hike likely to be inthe range of 10-11 per cent.

So what could be the worry?Ironically, good times also comewith riders and retaining talent isone of them! And just like toughtimes it throws up peculiarchallenges for the organization andHR strategists.

When the going is good, talentretention becomes a majorchallenge for an organization.

We are all aware that anorganization is fundamentally agroup of people channelizing their energy towardscommon objectives. Thus, human factor is the most criticalelement in an organization and organizational success toa large extent depends on how the combined humancapital is funneled towards the desired and pre-definedgoals.

However then, people are not static inputs like bricks.They are dynamic and an organization always faces thescenario of talent movement - some come and some go.However, there are times when movement becomes

attrition, giving tectonic shocks severely upsetting acompany's growth plans. There are costs and there areopportunity costs of losing an employee and the total costof losing an employee could have a serious bearing on thefunctioning and fortunes of an organization. Little wonder,dealing with talent retention becomes a humungouschallenge for an organization during good times!

The scenario is India is particularly peculiar andupsetting. Paradoxical as it may sound for an economy

suffering high unemployment rate,we have always faced the situationof high employee turnover, wellabove global average and higher thanmost Asian counterparts! While thereare myriad reasons for this situation,employee turnover rate of 15 percent annually is considered normaland non disruptive. But in India,turnover rate is over 25 per cent withsectors like IT and retail experiencinga much higher attrition rate. Thesituation is only going to worsen

when economy brightens up. Warning bells have alreadybeen rung as pointed out by Mohinish Sinha, Hay GroupIndia Leadership and Talent practice leader: "Make nomistake, we are (India) in the eye of an employee turnoverstorm." A war for talent acquisition is in the offing!

Good times will increase market competition for talentacquisition, both for fresh talent as well as experiencedresources. It all boils down to demand vs supply situationwhere demand for talent outpaces supply. Sensing growthopportunities, companies will get into fast track mode to

Tackling goodtimes quandariesTackling goodtimes quandaries

For HR mangers, the

scenario of cyclical upswing

as opposed to down cycle,

it's a challenge of a different

kind as innovative ways need

to be devised to ensure talent

retention, points out

- by Alok Nigam


hire and acquire talent. Innovative andlucrative offers will be doled out -often unsustainable in the long run;salaries will go up and so willpoaching. Employees would startreceiving offers they simply can'trefuse, even if they may actually bequite happy and well settled theircurrent organization.

For HR mangers, the scenario ofcyclical upswing as opposed to downcycle, it's a challenge of a differentkind as innovative ways need to bedevised to ensure talent retention.Compensation structures areredrawn which at times are abovemarket average but at the same timestretches company's resources. Andyet, all these may not be enough toretain talent, especially if along withgood times the whole contour ofbusiness environment is disrupteddue to new phenomena like onlinebusiness platforms - which at least onthe surface appear quite glamorousand attractive to Gen-Y.

So what could an organization doin this situation - especially if ithappens to be a conventional brickand mortar business or a large groupwith multiple verticals, with one armexperiencing stability and the othervolatility!

The retention mantraFor me, just like tough times even ingood times one needs to stick to thebasics. To begin with organizationsmust give serious thought to whatdrives employee commitment leadingto talent retention. Talent retentionultimately flows from a combinationof innumerable set of interventionsthat a company does or believes in,like competitive compensation,people friendly HR policies, variousengagement tools, CSR, careermovements, meaningful roles, vibrantwork places, etc. However, these arestill only variables and differ fromorganizations to organizations. The core to my mind still revolvesaround two basic tenets, which are:Organization culture and the managerof the concerned employee. Those organizations, both the brickand mortar and new age ones whohave been able to create and sustainthe unique culture of performance

and belongingness through their ownDNA are the one which have highlevel of talent stickiness. The talenttakes pride in working for them andnot only work they become the truebrand ambassadors of thesecorporations. Coming to the other critical point,the saying goes "people don't leavecompanies, they leave theirmanagers". This is so very true! Theculture of performance andbelongingness produce those uniqueset of managers who care for theirpeople. These are those peoplemanagers who nurture and developtheir people, create careers for them,takes proactive and corrective actionsfor their people- and employees thinknumber of times before leaving suchorganizations and people managers. Organizations which understandthese nuances will succeed in havinghigher talent stickiness. There are somany brick and mortar organizationswhich believe in these attributes andpractice these behaviors and havebecome talent hothouses and everyother organization envy suchcompanies and try and benchmarkthem. This of course goes withoutsaying that continuous growth anddiversification of these companies areadded reason for people to stayaround. We at Bhartiyas, which is afairly large and diversified group, havetremendously benefitted from suchtalent engagement practices, makingthem part of our DNA. Apart from this, we also continuouslylook at ways to increase employees'involvement, providing opportunitiesto make meaningful contribution tothe organization through discussions,brainstorming sessions. We encourageseniors to continuously engage withteam, mentor their pupil to enhancetheir performance and careerprogression. For an employee, havingsuch support and a clarity on whatthe organization has in store for themis a powerful motivating tool andenhances the feeling of belongingness.Since recognizing people have alwaysremained one of the most importanttools for engaging and retainingpeople, we also incentivize ourworkforce by the means of variousmediums like deferred bonus, spot

EMPLOYEE RETENTION

Alok Nigam is a multifaceted HR

professional with over 20+ years of

comprehensive and hands on experience in

the entire gamut of Human Resources and

thrives on building and creating engaging

places to work. Nigam heads the Human

Resources function and takes

responsibility for bringing in talent and

strengthening the HR policy infrastructure

to support a rapidly growing business

with a distinctive culture. He primarily

focuses on Organization Building and is

helping the group in strategic business

and people initiatives for last over 3.5

years. He enjoys studying patterns of

human behavior and correlating them

with their work ethos.

Alok NigamSenior Vice President and Group CHRO

Bhartiya Group

rewards, and long service awards.Today, employees also look for a

workplace which has a culture ofopenness, transparency and sharedinformation. They want to knowwhere the company is heading andwhat it will look like in the future. Howis the company doing financially?Where does it stand in themarketplace? Above all, employeesinsist on knowing how their specificjobs fit into the grand scheme of thingsand what they can do to help theorganization get to where it wants togo. Over a period of time, we haveinculcated a spirit of openness andtransparency in our culture whichreflects in our HR practices. Thesepractices have paid us handsomedividends. With justified pride, I mayshare that our talent retention rate isamong the highest in the industry. HC


Learning to "prioritize"

Most managers want more hours in a day.What if you could free up significant time -may be 20 per cent of your workday - to

focus on the responsibilities that really matter. Astudy conducted on how knowledge workers becomeproductive found that the answer is simple: eliminateor delegate unimportant tasks and replace them withvalue-added ones. Research indicates that knowledgeworkers spend a great deal of time - an average of 41per cent - on discretionary activities that offer littlepersonal satisfaction and could be handledcompetently by others. So why do they keep doingthem? It is because ridding oneself of work is easiersaid than done. We instinctively cling to tasks thatmake us feel busy and thus important, while ourbosses, constantly striving to do more with less, pileon as many responsibilities as we are willing toaccept.

It is believed that there is a way forward.Knowledge workers can make themselves moreproductive by prioritizing, thinking consciously abouthow they spend their time; deciding which tasksmatter most to them and their organizations; anddropping or creatively outsourcing the rest. In an ODintervention designed in a manufacturing organizationin UK, more than 15 executives at differentcompanies were able to reduce their involvement inlow-value tasks. They cut desk work by an average ofsix hours a week and meeting time by an average oftwo hours a week. The benefits were clear. Forinstance, when a senior managers at an automobileorganization, jettisoned meetings and administrativetasks in order to spend more time supporting his/herteam, it led to 5 per cent increase in sales by her unitover a three-week period. While not everyone in thisintervention was quite that successful, the resultswere astounding in several other aspects. By simplyasking knowledge workers to rethink and shift thebalance of their work, we were able to help themfree up nearly a fifth of their time - an average ofone full day of week - and focus on more worthwhiletasks with the hours they saved.

What employees can do? One way is to first startby identifying low value tasks. One can begin by

BY MANAVI PATHAK

PSYCHOLOGY AT WORK

doing a self-assessment exercise by identifying whichtasks are (a) not that important to either you or yourorganization (b) relatively easy to drop, delegate oroutsource. Research suggests that at least one quarterof a typical knowledge worker's activities fall intoboth categories, so you should aim to find up to 10hours of time per week. In the OD interventionmentioned above, CEO of a small technologycompany realized that he was too involved in projectplanning details, while another senior manager wassurprised to see how much time he was wasting insorting out documents. Next step is to decidewhether to drop, delegate or redesign. Sort the low-value tasks into three categories: quick kills (thingsyou can stop doing now with no negative effects), offload responsibilities (tasks that can be delegated withminimal effort) and long term redesign (work thatneeds to be restructured or overhauled).In the ODintervention study, the participants found that thisstep forced them to reflect carefully on their realcontributions to their respective organizations. "I tooka step back and asked myself, Should I be doing thisin the first place? Can my subordinate do this? recallsa Senior Manager. Another participant noted that "Irealized that the big change I should make is to sayno up-front to low value tasks and not commitmyself in the first place." Another strategy could beto off load tasks - a lot of managers accept thatdelegation was the most challenging part - butultimately very rewarding. One participant said hecouldn't stop worrying about the tasks he hadreassigned, while another told us he had troubleremembering "to push, prod and chase". Mostparticipants eventually overcame those stumblingblocks. They delegated from two per cent to 20 percent of their work with no decline in theirproductivity or their team's. A bonus was that junioremployees benefitted from getting more involved.Another manager at a Telecom organization decidedto off-load tasks to a virtual personal assistant andsays that although he was concerned about gettingup to speed with the service, "it was seamless". Onceyou have the freed-up time, the next plan of actionis to determine how to best make use of the time


Dr Manavi Pathak is an Organizational Psychologist and Consultant. She can bereached at [email protected]

HC

PSYCHOLOGY AT WORK

you have saved. Write down two or three things thatyou should be doing but aren't, and then keep a logto assess whether you are using your time moreeffectively. A few of the participants in the studyconducted were able to go home a bit earlier toenjoy their families (which probably made themhappier and more productive the next day). Someunfortunately reported that their time wasimmediately swallowed up by unforeseen events, "Icleared my in-box and found myself firefighting". Butmore than half reclaimed the extra hours to dobetter work. "For me the most useful part wasidentifying the important things I don't get time forusually," commented a manager in the study. "Istopped spending time with my project planning tooland instead focused on strategic activities, such asproduct road map"'. A team leader used his freed-uptime schedule to listen in on client calls, observe hertop salespeople, and coach her employees one-on-one. The result was stunning three week sales jumpsof 5% with the biggest increases coming from belowaverage performers. To achieve these results one hasto commit to the plan. Although this process isentirely self-directed, it's crucial to share your planwith a boss, colleague or mentor. Explain whichactivities you are getting in to and why. Also agree todiscuss what you have achieved in a few weeks' time.Without this step, it is all too easy to slide back intobad habits. Many of our participants found that theirmanagers were helpful and supportive. Participantsalso discovered that simply voicing their commitmentto another person also helped them follow through.

There are many reasons why prioritization is achallenge. Most of us feel entangled in a web ofcommitment from which it can be painful toextricate ourselves. We worry that we are letting orcolleagues or employers down if we stop doingcertain tasks. Also, those less important items on ourto-do list are not entirely without benefit. Makingprogress on any task - even an inessential one -increases our feelings of engagement and satisfaction,research has shown. Organizations share some of theblame for less than optimal productivity. Cost cuttinghas been prevalent over the past decade, and mostemployees have to take on some low-value tasks -making travel arrangements that distract them frommore important work. There are a few organizations;however who try to help their employees focus onthe value added parts of their job.

With relatively little efforts and small interventioncan significantly boost productivity amongst theemployees or team members. Such shifts are notalways easy, to do the same, you don't have toredesign any parts of an organization, reengineer awork process, or transform a business model. Allyou have to do is ask the right questions and act onthe answer.

We offer our expert services from Designing to Implementing Integrated HR Policies & Systems such as:

1. Mission, Vision & Values

2. Organisation Structure

3. Management Level wise Qualification & Experience

4. Role & Responsibilities of all Positions

5. Code of Conduct for Employees

6. Recruitment Procedure

7. Trainee Recruitment Scheme (For Staff & Workers)

8. Employee Referral Scheme

9. Induction Scheme

10. Performance Management System

11. Career Growth/Promotion Policy & Succession Plan

12. Reward & Recognition Schemes

13. Performance Linked Salary Structure and Salary

Increment System for Management Staff

14. Performance Linked Wage Structure and Wage

Increment System for Workers

15. Employee Engagement Tools

16. Competency Mapping

17. Employee Grievance Handling Procedure

18. Training & Development System

19. Mentoring Scheme

20. Team Building Mechanism

21. Leave & Attendance

22. Relocation / Transfer Policy

23. Travel Policy

24. Management Communication to Employees

25. Productive Employee Welfare Schemes

26. Stay Interview Procedure

27. Exit Interview Procedure

28. Full & Final Settlement Procedure

29. Delegation of Authority for HR Systems

30. HR Manual (Compiling all HR Policies & Systems)

Kindly mail your queries at:

[email protected] [email protected]

Dr R K Sahu (09818300668)

Ms Pragya Bharti (09818390275)

Human Resource Development Centre

D - 88, 2nd Floor, Lajpat Nagar, PART-1, New Delhi -110024

Phone: + 91-11-29816980 / 81 / 82 www.hrdc.in

CCoommpplleettee SSoolluuttiioonn ffoorr IInntteeggrraatteedd HHRR SSyysstteemmss

19 Years 310000 + Mandays Trg 595 + Clients

We also undertake Client specific HR Systems Implementation Projects.

Twe have all grown up being cajoledby our parents, teachers, mentorsand our mangers to learn to steerour careers in ways that we are ableto create our own path to success atwork. While many did manage to pullthe strings and build careers thatgave them not just a lucrative paycheck but also opened neweravenues in career growth, otherspreferred their comfort zones.

here is a common adage,which says, "If you don'tdrive your own career,then who does? Most babyboomers would agree that

HR PRACTICE

ADP's career development program 'Driving Your Career' is all about

being in the driver's seat and steering one's professional journey in a

positive direction. It's about knowing when to stay the course, take a

turn, or set off into a whole new trail.

opportunities. In this sprint to stayahead, not just professionals butorganizations too are zipping pastthe highway with fantastic careerdevelopment programs on theirwheels that is not just acceleratingthe employee's growth trail but isalso positioning the organization asa place of work that values itspeople's growth as much as it doesits own.

One such organization thatbelieves that every person counts inthe organization and each one hasthe right to get ahead of the changecurve is ADP Inc. (Automatic Data

Driving yourcareer bus


Nevertheless, building a successfulcareer depends on the individual'sability to maneuver/her career bus.

In today's time and age, whenmillennials account for 60 per centof the total workforce, baby boomerand generation Z are not unaware tothe fact that a younger, smarter, andhungrier co-worker is as much inthe rat race for the coveted positionas much as they are. This makes itan imperative to stay relevant inone's career irrespective of tenureand age, and the best way to do islearning how to navigate at workthrough various learning

56 � September 2015 www.humancapitalonline.com ■

HR PRACTICE

Processing), which is a Fortune 500company with nearly $11 billion inrevenues and over 620,000 clients inover 125 countries and one of theworld's largest providers of businessoutsourcing solutions. Their careerdevelopment initiative "Driving YourCareer" focuses on employee careeradvancement and encouragesemployees to take on the driver'sseat and steer their professionalvoyage in a positive direction. Basedon the company's core value, 'everyperson counts', Vipul Singh, VicePresident and Head of HR &Communication at ADP, India, says,"It's about knowing when to stay thecourse, take a turn, or set off into awhole new area."

"It's about always movingforward towards careeraccomplishments that truly excitethem," he adds.

ADP believes the road to asuccessful career is built on five keycomponents and these wereprimarily instrumental in designingthe program:1. Delivering strong results in everyrole - Consistently performing at ahigh level in their current role isessential to be considered forpotential opportunities.2. Developing functional/technicalexpertise - Building technicalexpertise and mastering functionalskills sets the foundation for a careerin a specific discipline3. Building critical individual orleadership competencies - Forindividual contributors, this meansdeveloping organizational skillsincluding change management,project management,communication and collaboration toenhance individual performance. Inaddition to developing organizationalskills, building leadership skills isfundamental to career growth anddevelopment for people leaders.4. Seeking diverse experiences-Seeking out diverse experiences androles helps to gain a broaderperspective and develops a portfolioof skills and knowledge. Additionally,seeking a variety of roles such asPeople Leadership and ProjectManagement helps to build breadthand capability.

Employee testimonial� Srinivasa Rao Bandaru, Executive Manager,

says, "The experiences I have gained as a

par t of the Driving myCareer program is

extremely valuable. "My Journey started in

1998 and it was the most exciting way to

start the first year! Thereafter, I moved to

London for 2 years to create Global Network

operations for Wilco International Limited. After

my return, I worked as Product DBA and release

management. I was chosen to lead global

Teams in in 2010 and have never looked back

from then. At ADP Focus on Innovation and

Service excellence are integral parts of our

DNA. Thrilled to see the exceptional progress

of these projects in the last five years"

� Snigdha Ray describes her journey behind

the wheel, "Over 13 years of marathon

experience through highway and streets, peaks

& troughs which are always laced with immense

learning & contributing opportunities, I have

had diversity in learning across domains,

technologies, projects, functions and roles. In

my current role, I lead the India development

center for strategic platforms - WFN, ADP

Analytics & Reporting and TLM."

5. Building key relationships -Building relationships withpeers, leaders, coaches andmentors, and strengtheninginformal networks is part ofeffective career management.

The inception"The' Driving Your CareerProgram' was a result of thefeedback from the engagementsurvey on the careeropportunities at ADP," quipsSingh.

Every year, ADP rolls out asurvey for all its employeesacross the globe called theAssociate Engagement Survey.To ensure that the survey resultsare confidential and thefeedback is cascaded asreceived, ADP roped in a thirdparty administrator to do this.Based on the results, theorganization then measures andtracks the engagement levels ofits employees and plansappropriate action accordingly.

The intent behind theprogram was to provide greatervisibility and a more structuredprocess for all its employeesacross the globe. This furtherenabled the organization to leverageits talent pool and design careerpaths in line with the employees'scareer aspirations and developinterventions that can furtherenhance the technical/leadershipcompetencies of the employees andalso support their career growth.

Building alignmentUnlike many organizations, ADP isdriven by the success of itsemployees. It strongly believes inengaging the unique talents andperspectives, welcoming their ideason how to do things differently andbetter. In their efforts to achieve,learn and grow, the organizationstands committed to support themall the way.

In terms of it alignment to theorganization's goal and aspirations,Singh asserts, "The Initiative isperfectly aligned to this vision whereemployees are encouraged to followthe path of their choice. It also helps

them with structured and tested toolsthat help them in taking the rightdecisions. We also believe that it iscrucial to empower the leaders withthe right information to helpassociates with their career growthand development."The initiative also did a fabulous jobof gathering all career related dataonto one centralized location for allemployees globally.

The processTo kick start the program, ADPdeveloped the myCareer website, aninternal portal for all the employees,to be used as a one stop shop for alltheir career queries. As a part of theprocess, ADP enabled multiple toolson the site for employees to startanalyzing their career growth andmap their aspirations. ThemyCareer website has severaloffering for the employees. It haseasy-to-use worksheets for eachdestination in an employee's career



ride. Additionally, it is equipped tomeet each employee's educationneeds - including quick links to theTalent Management System (TMS),Tuition Assistance, Knowledge PayProgram (KPP), Books 24x7. It alsooffers a comprehensive look at ADP'sbusiness units and functions, helpinginterested employees to explorecareer path that's best for them. Italso has a feature to showcase thecareer paths taken by other

units and functions.4. Preparing for your next role -provides tools to help them developfor the role or path they haveidentified.

As part of CareerDriver, IDP actsas a map to help the employeesnavigate from where they are todayin their career to where they want tobe down the road.

Another tool on the ADP's TMSsystem is called the Career Profile.This helps employees with anopportunity to share professionaland career-related information withtheir manager as a basis fordiscussions about their growth anddevelopment at ADP. The CareerProfile includes two components:Resume and Career Preferences.

"Employees consistently utilizethe myCareer site and the CareerDriver tools to ensure that theymaintain focus on career growth anddevelopment and identify their careeraspirations. This helps them todeliver strong business results intheir role and build technical orfunctional expertise by continuouslydeveloping in at least one functionalarea," affirms Singh.

"They will be able to build criticalcompetencies such as organizationalskills, time management,collaboration, leadershipexpectations, etc.," he adds.

Very often, employees seekdiverse roles to develop experiencesacross business units or functions.They look forward to exploringdifferent portfolios to gain a widerperspective of the business. In fact,

VIPUL SINGHVice President and Head of HR & Communication, ADP, India

HR PRACTICE

At ADP, career building and enhancement is

taken very seriously because employee career

development is the foundation of the key value

'every person counts'. We believe in instilling it in

the very culture by enabling employees to discover

where their interest lies and also understand what

they want to achieve in life and if they are aware of

the right path to take

“

”

employees using the myCareer site.One of the key tools that is highly

recommended on the website iscalled the Individual DevelopmentPlan (IDP). The IDP, located in ADP'sTalent Management System, is theaction plan for career development.The IDP process is a continuouscycle of planning, implementationand evaluation between an associateand their manager.

Another tool on the website thathelps navigate the employee'scareer path is the CareerDriver.Regardless of where theemployee is at a particular timein his/her career, theCareerDriver wheel helps theemployee with relevant tools toreach his/her next destination.

The wheel has fourdestinations around it and theemployee needs to select wherehe wants to go for the journeyto begin:1. New in your role - forassociates new to ADP or a newposition within ADP2. Developing in your role -for those wanting to expandtheir knowledge and functionalexpertise in their currentposition. Focuses onperformance, networking andpersonal branding.3. Exploring career options -for those in search of thepossible career optionsavailable at ADP. It includes aninterest assessment, definesindividual contributor versuspeople manager paths, ADP bus

Self-empoweringcareer steps for

employeesLap 1: Associates create or update all

sections of their career profile - the resume and

career preferences tabs in our internal online

talent management system iSucceed.

Lap 2: They have to schedule a career

conversation with their managers to discuss

their career goals and put a plan in place.

Lap 3: They are encouraged to educate

themselves on how they can reach their desired

goals in the future. They also select a course or

a book to help drive their career.

Lap 4: In the last lap, they have to expand

their horizons at ADP by having a career

conversation with someone outside their job

function and departmental area. Build on their

future developmental plans and focus on

reaching the desired state in their careers.


they opt for stretch assignments orchallenge themselves in an area inwhich they may not have theexperience or expertise. As a stepforward, they expand their networkby building relationships acrossbusiness units and functions. Thishelps them grow personally andprofessionally with multipleopportunities across their careerpaths.

The roadblocksSingh points out that there were twostriking challenges when it came torolling out this program universallyfor all the employees at ADP.

One of the roadblocks that cavedin was comprehending the individualneeds of employees. As a means toreach out to the workforce, theAssociate Engagement Survey wasbrought in to understand theaspirations of every individualemployee. The process has howeverbeen elaborate with ongoing changesevery year.

Another issue was the fact thatbeing a global organization, ADP hadalready spent considerable amountof time to design and execute the HC

HR PRACTICE

framework which could be adaptedby employees globally.

The next lapADP created career awarenessamong their employees in an excitingway. It added a competition into themix - ADP myCareer Grand Prix. Itis an annual friendly competitionamong ADP's business units andfunctions. These units and functionsthat register the highest percentageof employees to have completed allthree 'laps' win the first, second andthird place recognition in themyCareer Grand Prix race. The lapsare self-empowering career steps foremployees which will help them starttheir journey of driving their career.

The annual myCareer Grand Prixtook place this year from February2 to March 6. "The Grand Prix is away in which it helps employeesfocus on Career Growth andDevelopment. They have got thepower to drive their performanceand development. They hold the keysto their own success!" asserts Singh.

The road aheadAccording to Singh, the drive your

career program made a differenceto the lives of 60 per cent ofemployees at ADP India. While theprogram gave employees theopportunity to connect with theleadership, it also created a sense ofengagement and employeesatisfaction as it gave them time topursue their passion and work onareas that can truly optimize theirpotential. "The process has provedto be one that was deeply rewardingand worthwhile ," says Singh.

With a belief to instil the cultureof career advancement among theworkforce and enabling employeesto find their calling on what theywant to achieve in life and whichpath to tread, ADP is strivingincessantly to help its workforcediscover their interests and maketheir careers more meaningful andenriching. "The road ahead for'Driving Your Career' is one that isfull of momentum, meaningfulpartnerships between employees andmanagers, because the road to everysuccessful career starts with asupportive partnership between amanager and his/her team member,"concludes Singh.

“

The pangs of employee attrition

came on board six months earlier after thedeparture of the previous human resourcemanager.

He had a meeting with the Executive Directorof the company in a few minutes, and he knewhe would have to mention this to her.

He thought back to his expectations when hejoined the company six months ago.

Sushil Chanda brought with him 16 years ofwork experience in organizations such as FibreOptics, automobile and woven sacks. He is aqualified person and holds a degree in Industrial

CASE STUDY

Employee retention is a top priority for organizations globally. In this highly

competitive world, the cost of employee turnover turns out to be not only very steep,

it also reflects strongly on the fact that organizations are probably not investing

adequately in their people

h no, not another one" thought SushilChanda, the Head of HumanResource, as he read the letter. Thiswas the third resignation since he

- by Dr. Poornima Gupta

ODear Sir,

Please accept this letter as notice of my resignation fromthe position of assistant manager Production at FCMC.

As per the terms of my employment contract, I will continueto work for the company for the next one month.

I have enjoyed being a part of the team and am thankfulfor the opportunities you have given me during my timehere.

I hope that I can rely on you for a positive reference infuture.

Yours sincerely,

Rajeev Mehra


had worked at other plants tounderstand the systems andworkings, and had taken over themanagement of FCMC after herfather died in late 2014.

Initially, four machines wereinstalled. By September 2013, twomore machines were added andby end of 2014 FCMC had 8machines. Initially, since themachines were partially utilizedthe turnover was Rs 135 Lakhs. By2010 full machine capacityutilization was achieved and theturnover increased to Rs 18crores. By the end of 2014 theturnover reached the level of 30crores. The company has for itsmarketing in India a prominentstructure of dealer and distributorsall over India, although majorbuyers are situated in Mumbai. Alarge part of the produce isexported through merchantexporters to many countriesincluding USA, African and LatinAmerican Countries. FCMC is nowworking to receive WHO GMPcertification to be able to get tothe European Market.

It produces five kinds ofcapsules. They are called as 0,1,2,3and 4 of which 0 is the biggestsize and four is the smallest.Following are the approximatevalues of different sized capsules:

0 size 1 lakh = 10 kg

1 size 1 lakh = 7.8 kg




As of June 2015, the companyemployed 62 full time employeesof whom 33 were staff, and 29operators. In addition, it also

Relations and PersonnelManagement from a reputedUniversity. He had met most ofthe top management beforecoming on board and wasimpressed with the close knitfamily atmosphere andcommitment to quality.

FCMC: The organization"Excellence at all levies ofactivities, leading to continuousimprovement in product, processsystem, cost effectiveness andproductivity for total customersatisfaction".

This quality assurancestatement is the essence of allround commitment to quality atFort Caps ManufacturingCompany (FCMC) which had beenrated in the top three-qualitycapsule manufacturingorganization in pharma industry.In today's industrialized societyquality is the food of love. Bothorganizations and customers areconcerned about quality. It is thisconcern that high lights the qualitypolicy of FCMC, which believesthat quality does not happen bychance. It has to be assured.

FCMC started way back in 1996in Bhopal to manufacture gelatincapsule shells for pharmaceuticalindustry. Bhopal was chosen for avariety of reasons. Foremostamongst them was the easyavailability of raw material, specialloan scheme for gas rehabilitationprogram, being the native place ofthe owner and ready availability ofinfrastructure. The factory washoused in a pre-existing building,which used to be in garmentexport. The establishment of FCMCcame as a blessing in disguise. Theowners who are also in thebusiness of manufacturing capsulemaking machines could not findmarket for some of the machines,hence they started themselves thecapsule making business and FCMCcame into being.

The plant is managed by theExecutive Director, Stuti Shah, theLate President's daughter, whograduated from the topmanagement school in India. She

employed 98 casual workers forsorting and/or substitutingoperators. Typical requirement fora shift consist of 2 operators permachine and one reliever. Theturnover of employees haddecreased over the years, butleave without pay and absenteeismhad started increasing as seen inthe table below:

The average cost of productionis Rs 16,780 per hour. The averagesale price as of now is Rs. 1400per 1000 capsules. Averageturnover is Rs 3 crores per monthand average cost is Rs. 2.7 croresper month. The total machinedowntime for the year 2013 was4.59 hours per day per machine. Itjumped to 13.81 hours in 2014.However it seems to havestabilized in recent period. During2013 downtime per machine perday was 7.56 hours, for the month

Year LWP Absenteeism

Employees %

2009 451 2.57

2010 630 3.64

2011 305 1.69

2012 397 2.12

2013 739 3.97

2014 1203 6.41

Poornima Gupta is an Assistant

Professor in the field of Organizational

Behaviour and HRM at Great Lakes

Institute of Management, Gurgaon. She

has more than sixteen years of

experience in industry and academia.

She has worked as faculty at National

Institute of Information Technology

(NIIT), Lucknow and organizations

like Himalaya Exports Delhi, Permo

Marketers, Lucknow and Ask

Consultancy Pvt. Ltd., Vadodara. She is

Post Graduate in Management and BSc

in statistics from Lucknow University.

CASE STUDY

Dr. Poornima GuptaAssociate Professor, Great Lakes

Institute of Management


of May 2014 the comparablefigure was 7.29 hours per machineper day.

Human resource policies atFCMCAs mentioned earlier, FCMCemploys 160 employees out ofwhich 98 are contract employees.The contract employees are hiredfor 180 days on a stretch and thenreemployed after a few days'break. As a policy, FCMC does nottake contract employees on apermanent basis because ofobjections raised by those contractemployees not regularized. Whilethe FCMC does not have a clearlydefined HR Policy as the turnoveris negligible, however, on themachines two operators and onereliever must be maintained.Whenever the need for extraemployees arises, FCMC uses twomodels. First is raiding where itattracts employees from similarindustry by making them betteroffers. In the second case, localconsultants are hired whoadvertise and shortlist candidatesand handover the short listedcandidates to be interviewed bymanagement. If found suitable,they are hired, however, it alsodepended on the need.

i. Training anddevelopmentTraining and development activitiesare limited to induction(orientation) training for contractworkers. It consists of three dayon the job training after which thesupervisor submits a report.Depending on the report eitherthe employee is absorbed or isasked to leave if foundunsatisfactory. More recently somead-hoc training for ISOcertification purposes has beenprovided to the employees.

ii. Review and promotionThe Performance Appraisal systemconsists of such aspects as jobknowledge and application, safety,equipment awareness, personality,attitude and behaviour,management skills etc. These

CASE STUDY

attributes are rated on a six pointscale from excellent (5) to verypoor (0). In addition it also seeksinformation on strengths andweaknesses and training plan.Supervisors and subordinates bothfill out the form making it 180degrees appraisal system. Whilethere is no formal policy onpromotions, by and largepromotions are based on thecontribution of employees asreported by the supervisor. Therehave been cases where employeeshave been promoted within a yearof service and some employeeshave waited for 10 years beforegetting a promotion. There havealso been cases where someoperators have refused promotionbecause that would have meantloss in income (inclusiveovertime).

iii. Salary & WagesSalary structures are clearlyidentified. Salary componentsconsists of Basic, DA, HRA(40% ofBasic), Conveyance(fixed at Rs 250for operators and 10% of Basic+HRA for officers), PF(12% ofBasic), washing(Rs 145 foroperators and Rs 160 for staff ),attendance bonus(Rs 250), ESIC(4.75% of Basic) and childreneducation allowance (Rs 300 perchild for operators and Rs 600 perchild for staff, upto two children).Officers are also provided a lumpsum for academic research.Because of recent revision ofsalary structure, the recently hiredemployees are better paid thanthose employed some time ago.Contract employees are paidaccording to the going minimumwage in the region which worksout to be Rs 30 per hour.

Employee surveyChanda was trying to review someof the existing policies as well asdevelop others.

During the informal discussionswith the workers, Chanda got theimpression that the employees atFORT CAPS have mixed feelingstowards management. To get aclear picture a number of

supervisors and workers wereinterviewed in small groups onvarious aspects of human relationsand were also asked to fill up asimple questionnaire which wasgiven to them both in English andHindi.

The results showed that thegeneral feeling which appeared tobe common across all levels wasthat the "management neither hastime to listen to the employeesnor is interested in employee'sproblems. One of the employeesverbalized this feeling when hesaid "management does not careabout us. They are only concernedwith the production". Theemployee said that the instructionsare not always clear. Somecomplained of too many bossesgiving different instructionscausing confusion and creatingdelays in production. Theorganizational vision is not veryclear to the employees. While thepermanent and contract operatorshave a cordial relationship andhelp each other wheneverrequired, the same feelings do notextend to the management. Someof the employees were not evensure what their designation was inthe organization. Many employeescommented that there is no"Team Work". Every department isworking as a separate entity andnot as an integrated part of theorganization. They felt a lack of"leadership" in the organization.Of the senior employees inmanagement, there are only onemanager and three supervisorswho have been with FCMC formore than four years. Rest wasonly a few months old in theorganization and neither are theyaware of the general environmentnor are they willing to takedecisions.

Employees felt that noincentive or recognition is given tohigh performers, (around 10%)irrespective of the level ofperformance. Not only this, thenew operators in some cases arepaid more than the olderoperators in the organization. Thefounder President had introduced


CASE STUDY

Being a die-hard optimist, Ihave to start on a positivenote. The situation faced

by FCMC is at rock bottom, andcan only get better!! SushilChanda has a golden opportunityto transform the organization. Thisis the best it gets for any leaderdesiring to build a legacy.

Let's start from the beginning -FCMC has all the right ingredientsof becoming a successful company- the manufacturing facility,availability of raw material, specialloan scheme for gas rehabilitation,and strong quality policy to namea few. Being the manufacturers of

the machine that produce thecapsules (and therefore havingforward integrated) is anadvantage to any industry thatflourishes on mass production.

However, the high impact thatall the above ingredients bring tothe table is watered down by thelack of 'credible leadership'.

Since the issues faced byFCMC are many, I have tried tosimplify it in the form of a bigpicture (given below).

A cumulative outcome of allthe above challenges is LowProductivity, High Machinedowntime, slow-down in rate of

growth, toxic work environmentand therefore an unsustainablebusiness model.

What can Chanda and StutiShah do? Well, the first step is toaddress the root of the problem -"Building Credible Leadership".

As the Executive Director, StutiShah needs to roll up her sleevesand become the visible face ofLeadership at FCMC. She needsto set a clear vision and voicefrom the top that provides a clear,measurable direction to thecompany. Every function andtherefore every employee shouldbe working to achieve 'One Goal'.

Analysis by Anjali Byce

a number of incentive schemeswhich were suddenly withdrawnwithout given any reasonimmediately after his death in late2014. The only benefit thatcontinues to be offered is thereimbursement of the children'seducation at the rate of Rs300 per child upto twochildren for workersand Rs 600 per childup to two children forstaff. This scheme hasbeen found to beextremely beneficial toall the employees.

The contractworkers are not made permanenteven though they had givensatisfactory output for more thantwo years. This had caused mostof the trained operators to leavejust as a new opportunities camealong. If an employee leaves, noquestions are asked and noattempt is made to retain trainedemployees. While the provision ofovertime exists, and it is equallydistributed, payment of overtimeis not done in time or along withthe monthly salary. For example,the overtime for the last sixmonths has not yet been paid.

By and large employeesseemed to be quite satisfied withthe working conditions. they raisedsome issues related to working in

the shifts. In case some operatorsremain absent from the workwithout informing in advance,some of the workers have to work

on double shift. While thepayment was same as that for thenormal hours, the workers facedadministrative problems in doingdouble shift specially the third one(late night). At that time, theadministrative office being closed,there is no one having authorityto release funds in case ofemergency which often affects theproduction process. There wasalso no provision for canteenbecause of which the workers whohad to stay for the night shift,have to go without any food asthe dhabas are closed by then andfood that they brought fromhome is finished.

The supervisors felt that theirproblems are not communicated

to the top management by themangers. If a worker performedwell, it was not reported to thehigher management. Sometimeswrong information is passed on tothe top. This caused them tocomment that if you want to bepraised by the management, youshould be in the good books of

the managers. There was nofeedback on the performanceappraisal which is filled by eachemployee and his supervisor.The top management hardlyvisited the shop floor. This gaverise to the feeling that theywere unaware of the problems

of the employees. They felt thatthere is no one to listen to them.They also felt a sense ofhelplessness as there was no oneto fight their cause and there isno effective union.

While this would be helpful indefining new policies, he is at aloss how to handle the recentspate resignations not only fromthe officers to the workers.

He blames a new factoryrecently opened in theneighborhood for thecannibalization of his workforce,but he dreads reporting to Shahthat another officer has resigned.He is sure Shah would wantexplanations and he fails to comeup with any concrete reason.


CASE STUDY

Having set the vision (what needsto be done), she needs to buildthe right enablers (how to get itdone). There is no better way tobuild team work and get successthan to engage every member inthe organization in strategybuilding. She can use the processof large scale integration processto empower employees to have avoice in strategy building, creating

tactical steps and mostimportantly driving ownership andempowerment while listening tothe voice of every employee. Thiswill help them row in unison inthe same direction.

Stuti also needs to integrateher distributors / dealers/business partners in the valuechain as a part of the process ofcreating winning teams.

Yet another approach that Stuticould explore over time is tocreate a professional executivecommittee to run the company asagainst her running it as an ownerdriven company.

Chanda, on the other hand,has a very critical role to play as astrategic business partner.

I would recommend Chanda tostart from the business goals andvision set by Shah to build theenablers. The first step is to builda Performance Oriented Culture.How does one do that?

What works best in myexperience is to consider theBusiness Goals and ask thequestion "What will make ithappen?" Here I don't refer to'skills' but instead to 'Behaviour'.As a strong business partner,Chanda needs to drive behavioralchange.

Organization structure - Builda structure with clearaccountabilities andempowerment. This will not onlyhelp in a flawless and consistentcascade of the organization goalsand vision, but will also increasedecision making, reduceproduction delays, provide acommon voice of leadership.

Focus on productivity- Whatgets measured gets done!! Chandaneeds to address every lever thatdrives improved productivity -Headcount (both staff andoperators) to be revisited. Aresuch high number of staff andworkers (permanent and contract)required? Starting with a zerobase budget would be a criticalstep. Chanda should evaluate thepossibility of stopping Overtimeand instead look at creativelyworking on optimized shiftoperations.

Reward for performance -Build compensation, reward andrecognition around achievement ofcompany goals. Build an incentivescheme that drives the 'behaviour'of high quality, lower machinedowntime, higher cycle times,reduced absenteeism, higherturnover, and therefore greatervalue add and productivity.Additionally the silos betweenfunctions can be broken by linkingthe incentive payout to a commonorganizational result. This will veryquickly drive a desirable 'new wayof working'.

The compensation structure isarchaic and needs a completerevamp. A balance is essentialbetween components that driveemployee welfare and those thatdrive business performance. Forinstance, overtime cannot be seenas a 'way of increasing take homesalary' by workers. Likewiseproviding a compensation foracademic research with no cleardeliverables does not makebusiness sense.

A quick one time exercise to

Anjali Byce is the Director Human

Resources at SKF India. She has made

significant contributions including

multiple Business Partnership

programs, implementation of a

culture based HR Strategy, capability

building, Six Sigma and diversity

initiatives. She has also championed

multiple change management

programs. She has worked with Tata

Motors, Allianz Bajaj Life Insurance

Co, Cummins and Thermax.

Anjali ByceDirector Human Resources

SKF India


CASE STUDY

ensure 'pay for performance andskill' will be a long-terminvestment. Discrepancies onpayouts linked to experience/ skillof employees needs to becorrected. All of these will dowonders in driving visibility toprinciples of 'fairness andtransparency' as a criticaloperating culture.

Recruit - train- evaluate -promote: Chanda needs to ensurethat every element of peoplemanagement is driving the set ofbehaviors that will make FCMC awinning organization.

Having purely a 'buy' strategyfor acquiring talent is notsustainable. Instead of gettingtalent through head-hunting orrecruiting consultants, Chandashould build a plan to get freshtalent infused in the companythrough college recruits. She canthen top it up with a 'build'strategy that focuses on capabilitybuilding to drive business results.

Capability building of courseshould not be construed as limitedto skill building, but alsoleadership and peoplemanagement. Every line managershould be trained to be a peoplemanager (this will have a direct

influence on retention). Adevelopment center approach canbe used. Since most of themanagers (except four) are lessthan four years in the company,Chanda needs to focus on buildinga strong leadership talent pipelineas well.

The workers should be urgedto move towards multi-skilling asa method that drives transparentselection and career growth. Nottaking trained contract workersdue to a non-transparent selectionprocess is not the answer. Theright answer is to build atransparent selection andpromotion process linked to skilland consistent performance thatprovides a career path to alltrained resources. A natural offspin, is that multi-skilling willprovide growth and contribute tobusiness through enhancedproductivity.

A transparent and measurablePerformance management systemshould be designed. This systemshould measure both - anemployee contribution to overallcompany goals and additionallyhow these goals were achieved. Arobust feedback mechanism;institutionalized as a part of

building people management skillswill help build trust andtransparency. It will also help tosieve the wheat from the chaff.

Communication - Last but notthe least, Chanda should providemultiple channels ofcommunication for employees -opens forums by Shah, employeesurveys, frequent periodicmeetings with high performingand potential employees, stayinterviews with critical talent andskip level meetings across teamswill go a long way in driving an'open and accessible leadership'. Itwill also help address multiplehygiene factors (such as canteenand timely payouts) and businessstrategic issues with equal speed,transparency, openness and care.

I recommend Chanda shouldask the question - "What will helpretention of employees" versus"Why do we have attrition". It'ssurprising but the array ofanswers could be quite differentfor both questions. It's not themushrooming of new companiesin the vicinity that is causingattrition, the answer lies within -'A need to build credibleleadership and an engagedworkforce!'

Analysis by Nirmala Behera Udgata

Prima facie, major problemwith the organization is ayawning gap in "leadership''

where four-fold qualities, viz"Vision, Empowerment,Encouragement and HumanValues" are conspicuous by theirabsence. Channel ofCommunication between leaderand colleagues is distinctly skewed,devoid of transparency and clarityin flow.

There is lack of leadership skillsand there is no on one-to-oneworking or group nor is there arange of tools in their armoury todeal a wide range of situations.

Empowerment is nowhere seenas a situation is more of

command and control in a typicalhierarchical relationship. The flowof command lacks two-wayapproach and feed-backmechanism from on-site situationswith regard to bottle-necks orsuggestions for improvement has amental block. The stream seemsto be flowing without definedcourse or path and so asemployees, resembling a typicalproprietary style of managementHere employees do not have anyroad map to travel nor theirdestination defined with time span.It is like navigating a boat in avast ocean without sail or oars.

Employee relations lacksmotivational approach and rather

more business-like - for regulars"You are 'Hired' for which you are'Paid'", while casuals are simply"Hired & Fired", creating anunhealthy imbalance in humanrelation management. Key value ofHR ethics is no where noticeable.

Honing of communicationsskills needs to be addressedespecially of vision and missionvalues so that route is well laid forproductive results. Encouragingpeople to speak-up, listening themeffectively and elicit informationby good questioning is not built incommunication mechanism of theorganization. Result is employeehave a traditional "Three-punch,One-Lunch, Work and Off" routine


HC

CASE STUDY

without ambience of motivation.Career planning of employees

not in the system and increments/promotions are without scientificand logical approach. There is no"Rewards by Results" andaccolades for achievement isdistinctly lacking. Recognitions aremore by whims and fancies likesand dislikes and lacks professionalapproach.

Involvement of topmanagement in understandingissues of employees here is morea rarity than a rule and machineryor mode of grievance handling isdistinctly absent. There is deepinsecure feeling amongst theemployees that "CARE"(Colleagues Are Really Everything)from the management is more ina academic tone than in action,leading to depressed scenario,stealing the precious virtue "one-

ness" from a team who give breadand butter to the organizationthrough sweat and toil.

No HR policies, process andsystems are defined, nor equalrights and opportunities to theemployees of every rank and fileare provided. There is no teamwork and spirit. Flow ofinformation and instructions isdistorted, leading to haste andconfusion in carrying out theroutine operations. Clarity inorganization structure is lacking.

All the above HR deficienciesare reflected in inconsistentoutput, increased down-time ofmachines and absenteeism, leadingto narrower margins.

What can be done….First thing, Sushil Chanda shouldget into diagnostic study HR issueswithin the organization, call for ameeting with his team, requestthem to roll up their socks, getinto bottom of the issues right atthe site with root cause analysis.

Once the root of cause isknown, he should adopt two-waycourse, viz Corrective Measuresto restore the confidence ofemployees with base touch toChallenges, Morale, Motivation,Team Work, Goal and Strategy,followed Preventive Strategy toensure there is no chance of re-course.

Two-way course strategyshould be preceded by suggestionsfrom employees during one- to-one speak-up sessions andemployee satisfaction mappingthrough well-structured survey.

Once the bull's eye is hit, nowit's time for HR Head to presentthe issues to Shah outliningdetailed approach of two-waystrategy, viz Corrective Process torestore the morale and confidenceof work force in tangible andintangible terms with time span.

Preventive strategy will ensurethat issues do not crop up againand there is upward movement ofstrength in morale and motivationof employees.

Focus areas of discussion with

Shah would be:� Setting up of clear-cut objectives

and goals� Self-motivated initiatives and

responding flexibility tochanging scenario

� Acceptance of responsibility formistakes/erroneous decisions atevery level.

� Perseverance skills whensituations do not work out

� Positive attitude and learningfrom failures

� Keep the image of organizationin the highest esteem at alltimes

� Delegation to employees withright skillset

� Listening, supporting and givingconstructive feed-back on gaps

� Creating an atmosphere ofenthusiasm to make the thingsto happen.

� Team work, one-ness andsolidarity

� Roles & responsibility well defined� Continuous interaction with

employees� Clarity in communication� Transparency� Robust HR procedures and

systems� Learning & development process

continually� Retention

Finding the wayRecommendations of strategy ofthe HR Head should bethoroughly analysed, debated andunderstood for implementation.

Once the green signal is given,effectiveness of strategy shouldhave a review mechanism atplanned intervals to ensure desiredresults.

Shah should also think of aradical change in her organisationand leaderships amongst her topmanagement team. Herphilosophy towards people andHR practices needs to be re-defined. Connecting withemployees through mass meetingis a MUST for Shah to reachground level issues and grievances.Heart-to-heart conversations withemployees will definitely help inunderstanding and retaining.

Nirmala Behera Udgata’s has been

with RSB Group for over 16 years. In

the domain of HR, she has successfully

implemented a number of process

initiatives such as Performance

Management, Organizational

Development, Talent Management

and JD HR System amongst several

key HR policies and systems. Prior to

her leadership role in HR, Nirmala

headed the entire operations of

iVitesse Technolgies, the IT division of

the RSB Group as the Director.

Nirmala Behera UdgataHead - Group HR

RSB Transmissions (I)



Holistic ways of dealingwith work & life

In the competitive environmentof our time where every day isa deadline, stress and pressure

are our constant companions.Work pressure and stress havebecome of one the major reasonsfor degrading health of people. Itis a big irony that the success ischased for comfortable andluxurious life, while the seekerforgets to cherish the happinessthat comes from everyday things.

It is important to realize thatyour life is not limited to yourjob, and success is not counted bythe currency in your bankaccounts. In the rapidlydeteriorating work environmentsof our times, we need to set ourpriorities right to deal with thepressure of everyday life. Therehas to be an epiphany in thecacophony. These are a set ofsimple life rules and truths oftenignored that can transform yourlife, if adopted in spirit.

Definition of successDo not equate success with onlyprofessional laurels and money. Alot of other parameters too definea successful life. Do notunderestimate the importance ofrespect, goodwill, friendships, andpeace of mind. Adopting acomprehensive approach tosuccess will help you better dealwith everyday pressures.

Don't overwork, work smartSpending hours solving a problemmay not always be enough. Train

BY ROHIT AGGARWAL

HC

GUEST COLUMN

The author is Rohit Aggarwal, the CEO of KoenigSolutions.

turn yourself around. Considercriticism as valuable feedbackrather than annoyance. It will alsohelp you tackle pressure better.

Healthy livingWalk every day in an open space,practice yoga to unclutter yourmind. Eat nourishing food, relaxwith music or a book and sleepeight hours. Don't spend lifein a cubicle; learn toembrace the beauty ineveryday life. This will help

you deal with pressure and stress.All these aspects of being are

encouraged and followed atKoenig, thus making Koenig-iteshappy workers committed to thecompany. Anyone can learn andimbibe these simple mantras forstriking a perfect work-lifebalance and making the most ofyour personal as well asprofessional life.

yourself to think out-of-the-boxand turn unconventional to findsmart solutions, novel ideas. Weoften see people staying backbeyond office hours as a matterof routine. This is not to beencouraged. It is important tolearn to finish your work withinstipulated hours, and move on toother important things in life. Yourinability to wrap up on timeshows your incompetency, nothard work.

Control angerAnger is naturalbut undesirable.More oftenthan not, itends upfurtherconvoluting aproblem. Anangry dressingdown to junior colleagues in atight situation may further hampertheir productivity. If a situation isrunning out of hand, discuss it ina calm and composed way withcolleagues and help them findsolutions. You might as well strikea new idea to tackle the load!Anger and criticism can bereserved for a later peaceful daywhen you are conducting a SWOTanalysis.

Welcome criticismCriticism may not be a likeablething, but it is necessary. Don't getdefensive when faced by criticism.Take it positively and use it to

PERSONA

In a career spanning 23years, Ashu Malhotra, whoheads the HR function atJabong.com, India's fastest

growing online fashion destination,has had an eventful professionaljourney. Starting as a managementtrainee to heading the humanresources function of several topnotch organizations, Malhotra'sdeep insights and orientationtowards detailing and respect fortimelines, has helped himsuccessfully put several processes inplace.

Having earned the respect of hispeers and the HR fraternity atlarge, Malhotra as a leader hasalways demonstrated strongbusiness acumen in driving peoplepractices and building cultures thatdefine organization of the future.His two decades of diverse sectorialexperience in people function withexposure to HR strategy, has helpedhim spread his wings and reachout to people in his unique ways.

Multi-faceted

How do you look back at your professional journey so far? Pleaseshare some of your most enriching experiences that you came across.Ashu: I started my career as a management trainee with Dabur. In 1992,the HR experience was very different from what it is today. HR was inits evolving stage back then. We were discovering new concepts in HR,and laying the foundation for the times to come. It was in my first jobthat I championed business restricting. In fact, it laid the foundation tomy growth in the HR domain.

My next assignment was with a start-up as the Head of HR. NewGreenfield gave me the opportunity to be a leader at a very young age.As the Head of HR, I reported directly into the MD. I was instrumentalin building the organization from scratch. It gave me a deep insight onbusiness trainings early on.

I then moved to Honda CL Cars as the Head of HR & IR. Hondawas not as vast as it is today. It was a start-up team. I contributedtowards building the HR systems and putting the policies and proceduresin place. The biggest learning for me at Honda was to learn the Japaneseway of working. Adhering to quality and timeliness with zero errors wasthe only mandate. It taught me the principles of discipline, detailing inwork and respect for work most importantly.

I made a conscious decision to move to the telecom industry andprogressed in my career with Bharti Airtel as the Head HR of the northcircle. This was an evolved organization with evolved processes in HR,these process focused on employee engagement and policy structuring.The telecom industry is a fast evolving realm, exactly what the e-commerce realm is in the current scenario.

I moved to Alcatel Lucent after Bharti Airtel and championed themerger of Alcatel and Lucent from the HR standpoint. When I joinedAlcatel Lucent as the Country Head of HR, our headcount was about5, 000 and we grew to an employee strength of 15, 000. It was a greatachievement and it broadened my business understanding by leaps andbounds. The biggest achievement was setting up managed service businessand the Alcatel - Lucent University to Training & Development.

I joined as the CHRO for Tulip Telecom, India's largest datacommunications company. I was instrumental in setting up Asia'slargest center in Bangalore.

Ashu Malhotra, the Head of HR for Jabong.com, is a man who has braved myriad

changes to reach where he is today. A down to earth person, he believes in being

rooted without losing the zing to go for the stars.

Leader

The



PERSONA

RAPID FIREFavorite quote: Nothing comes free in life, there are

no freebies

Leadership style: I believe in strong reviews and

delegation of work

Current professional goal: To head any organization

Favorite book: 'What Young India Wants' by Chetan

Bhagat

Favorite music artist: Kishore Kumar &Jagjit Singh

Life is… Serious business

Family is…. everything

I strongly believe in…. karma

Family for me…. everything

The most important thing I do on Sunday… Goon long drives

I deal with setbacks by….. Talking to my wife

3 things I never leave home without… wallet, carkeys and my phone

I currently head the HR functionat Jabong.com, India's fastest growingonline fashion destination. We are oneof India's most loved online fashiondestinations. I have been successful inputting all structures in place. We'vecrafted salary structures, designationalignments mapped to the industrystandards, acceptable appraisal cycles,employee engagement, training anddevelopment university for Jabong, weknow have a structure for internalcommunications and HRIS reporting,the HR ticketing system , among somany more significant achievementsin my tenure of one year already andI have big plans for the organization.

What were some of the challengingtimes in your career that gave youthe important lessons of life?Ashu: I started my career as amanagement trainee and became theHead of HR in a very short span oftime, and at a very young age. Mylearnings have been on-the-job. Thisgave me the business understanding,of doing research, of a very detailedapproach to life.

As an HR professional, the biggestand probably the most unceasingchallenge is to have businessknowledge and then ensuring our


In brief

NAME : Ashu Malhotra

TITLE : Head – HR

AGE : 47 years

ORGANIZATION : Jabong.com

EXPERIENCE : 23 years

YEARS IN HR : 23 years

EDUCATION : Post Graduation in HR

PERSONA

contributions as businessenablers. These challenges haveshaped me to look at problems asa business leader to counter themand my approach becamesolution oriented.

How has working acrossindustries and geographies madeyour professional journey moreinteresting?Ashu: I have worked in variousdynamics, both within the countryand at an international level. Inthe manufacturing sector, youcannot build the trust of yourstakeholders, if you lack humility.You need to stay grounded andknow how to work with the blue collarworkers on the shop floor, treatingthem with respect and valuing them.

The international exposure ofAlcatel - Lucent gave me anexposure of change managementand taught me to take toughdecisions with absolute fairness andintegrity. You need to keep theinterest of the company at large andalso look at the interest of theemployees in the long run.

For all start-ups, the biggestchallenge is how we ramp-up theorganization, ensuring people whojoin at the evolving stages get theirdue in terms of growth and careerplanning. When you set up policies,you need to assess the expectationsof the employees and keep themflexible.

In evolved organizations however,the challenge is improvisations, tobuild a culture receptacle to change,to ensure that we build anorganization of the future.

In the initial phase, thefundamentals are right but we needto keep on building those blocks.

How different have been the twoexperiences for you--of setting upthe HR from scratch inorganizations and managing well-established HR frameworks?Ashu: In evolving organizations, wehave to look for continuous ways ofimprovement, in these organizations;a lot of time goes into operationalset ups however in evolvedorganizations; the shift of HR is

towards strategy. The role of HR getsmore pronounced.

Having been a part of diversesectors, how did you have toconstantly up skill yourself to meetthe professional demands?Ashu: One should always keepthemselves abreast with the changingtrends in the market; constantinteraction with the business leadersusually takes care of that. We shouldhave cognizance of the way businessis shaping up, if you do not keeppace, you could be shipped outbefore you know it. Conferences,

seminars, business meets,business and HR specificpublications help a lot. You should always be awareof the new trends incompensations and benefits,newer ways of appraisals amongothers.

Who have been your figures ofinspiration during thisprofessional journey? What aresome of the values andideologies with regards towhich you think, leadersshould definitely walk the talkto win stakeholder confidence?Ashu: My first manager,

Subhash Jagota is the perfectexample of a profound coach andmentor. He has been very influentialin shaping my career. He had thehighest degrees of personal skillswhich are mandatory for HRprofessionals. He taught me theimportance of effectivecommunication.

M. K. Goyle, the then Director ofHonda cars, has also been a catalystin shaping my career. He set thestandards on values and theirimportance in one's life. We need toset our own personal benchmarks.He taught me to lead by example.His orientation towards detailing andrespect for timelines is a learning Itook from him.

"Best HR strategies are built on afuturistic vision." What are yourviews on the same and how haveyou practiced this during your stintwith various organizations.Ashu: We need to look at thechallenges of the future and assesswhich direction the business will beheading, like in Alcatel Lucent, thefuture of the business was 'ManagedServices'. In new organizations, weneed to understand and support newlines of business. This is done with adeep understanding of the businessand willingness to go the extra mile.We will always have newer industriesand sectors coming up, after all,India is a developing nation. Strongbusiness acumen and sense willalways be the corner stone. It alldepends on how you could outdoyour own self and set bigger targets

PERSPECTIVESSome gaps that HR organizationsneed to bridgeWe need to have strong fundamentalsin HR. The directive should alwaysbe towards building an organizationof the future. We should be ready toface challenges and not crumbleunder pressure.

Common errors companies commitwhile designing engagementpracticesMany organizations are very rigidand unwilling to change. Today, thefocus is on employee engagementand not so much on policies andstructure. We need to be able to keepour employee motivated andefficient. These organizations couldprobably be taking decisions withouthearing the voice of the employees.


PERSONA

and amaze yourself. We need toplan ahead, understand gaps inthe current structures to be ableto build for the future.

We need to be able to haveROI and profits for the businessand that should always be yourmotivation. Change is always forthe future and we should be wellprepared to face it head on.

What is your plan for your ownfuture at Jabong.com?Ashu: I am going to build a worldclass team for Jabong. These HRprofessionals will be businessenablers with strong commitmentand respect for work. I want toensure the Jabong becomes themost sought after online fashiondestination across the world. Myendeavor is to build a world classorganization.

Up, close, personal

What inspired you to steer yourcareer towards HR?Ashu: My graduation and post-graduation ensured I became apeople's person. The focus wasinto sports, building endurance,perseverance, determination andgrit and what better way tochannelize that energy andcreate synergies into the field ofHR. I am very proud and satedwith my choice of career.

How do you like to spend yourfreetime?Ashu: I love travelling and observingdifferent cultures. I love nature, be itthe sandy beaches or the coldmountains, the beauty of naturealways intrigues me.

I love sports, right from mychildhood, I was actively involved invarious types of sporting activitiesand they have helped me build thetemperament of a sportsperson -determined and goal oriented.

As for work- life balance, it is astate of mind, I have learnt the art ofdelegating work, not only does it givethem a great opportunity to learnand grow but also gives me time totravel. One must be able to justifythe time spent in office.

Please share some of your

experiences of travelling todifferent places and what yougained from these experiences?Ashu: Japan will remain my mostfavorite destination for travel. It isbeautiful and immaculate. We needto learn how the Japanese take pridein their country. Osaka and Kyoto inJapan are perfect examples of citieswhere heritage meets modern living.These cities are my favorite in theworld. Tokyo too, is a choice for itsmodernism approach and discipline.

Please share with us some of yourmemories from your years ofgrowing up.Ashu: I grew up in Ranchi and Delhiand was heavily into sports. It helpedme stay focus and physically healthy- even till today. It instilled in me asense of competiveness which has

been a driving force in my career.I also enjoyed public speaking-debates, declamations andextempore. These influenced mychoice of career as a blend ofboth public dealings, demandingdetermination and designs ofexcellence from me, always.

What was your learning fromthe B-School?Ashu: Our college taught us togive back to the society. We weremade to go to blind schools toeducate them, spend time invillages. We learnt to look at livesfrom the eyes of theunderprivileged. These havegiven me a sense of compassiontowards people. I am trulyindebted to that model ofteaching. Their focus was not tomake us cardboard cut-outs ofHR professionals but was tomake us better human beings.

The focus was studies, ofcourse but I always found timefor sports. I always managed tokeep my proficiencies up in thetop three in my class. Nobodywould believe me now, but I wasan introvert and my B schoolevolved me as an individual.

Has someone from yourfamily deeply inspired yourvalues and growth as a human

being?Ashu: My wife and my lovelydaughter, sum up my world. I amdeeply attached to my daughter. Sheis currently studying medicine. I havealways been actively involved in herstudies, picking her up from hercoaching classes and dance classes.We go on long drives over theweekends, go for vacations and enjoyseeing different lifestyles

Who would you credit in your lifeas a great influence in shaping theman that you are today?Ashu: My wife has always inspiredme. She has brought a sense ofcalmness in my life. I am veryaggressive by nature and she bringsthe perfect harmony with herserenity. She gives me strength in lifeand balances it beautifully.

BUZZER ROUND� A mysterious benefactor wrote you a

check for Rs 100, 0000 and said, "Helpme solve a problem!"… what would yousay?I would say, I am game, bring it on

� What's one thing you're deeply proud of-but would never put on your résumé?My love for animals

� What's one dream that you've tuckedaway, for the moment?A farmhouse in the serenity of theHimalayas

� Is there something that people consistentlyask for your advice on? What is it?"How do I get a job?"

� When was the last time you astonishedyourself?When my daughter said that I am a 'GoodFather'

� What do you value most: free time,recognition, or money?Free time, of course, and I would spend allof it with my family.

� Are you living your life purpose - or stillsearching?If this question came to me a decade ago,I would have still be searching, today I feelI have achieved my purpose in life.

HC



have been working in the companysince 40 days. Please let me knowwhether I can terminate service ofboth of them by giving a short noticeperiod of about 10-15 days.Please note that if an employer isnot satisfied with the performanceof an employee on probation, theemployer is free to terminate theservices of the employee before thecompletion of probation periodsubject to the notice period, if any,prescribed in the employment letteror company's policy. Since the basicidea behind keeping an employee onprobation is to give the employer anopportunity to evaluate theemployee's performance beforeconfirming the appointment, thereis not even the need for an employerto wait for the employee to completehis or her probation period, beforetermination, if the employer isdissatisfied with the performance.Further, in such situation there is noobligation upon the employer toestablish or prove the unsatisfactoryperformance of a probationer.

In view of the foregoing, we areof the view that you are free toterminate both the employees bygiving them 15 days notice. However,such right to terminate shall besubject to the notice period, if any,stipulated under their employmentcontract or your company's policy,if any.

I run a factory in Gujarat and have24 people employed in my factory.Last month, one of my employeeswhile coming to the factory in themorning met with an accident andbroke his leg and had to be takento nearby hospital. The employee'swife is now claiming compensationas well as medical expenses

incurred due to such accident.Please tell me whether I am liableto compensate the employee inview of the fact that the accidentdid not take place at the place ofemployment.Please note that the law governingemployees' compensation (for injurycaused by accident) is provided inthe Employees' Compensation Act,1923 ("Compensation Act").

Section 3(1) of the CompensationAct provides for compensation toan employee who sustains personalinjury by accident arising out of andin the course of employment.Ordinarily, employment commenceswhen the employee has reached theplace of employment and continuestill the time he has not left the placeof employment. However, there maybe a notional extension in both entryand exit time and an employee maybe regarded as in the course of hisemployment even though he had notreached or left his employer'spremises.

In this regard, it is noteworthythat courts in India have time andagain recognized that the sphere ofan employee's employment is notnecessarily limited to the actual placewhere he does his work or when thetool down signal is given by theemployer.

Therefore, if any employee meetswith an accident while travelling tohis work place or while returningfrom his work place the same maybe considered as an accident arisingout of and during the course ofemployment if it is found that thevery nature of his employmentmade it necessary for him to be atthe place where the accidentoccurred. However, if the employeeis carrying out his own personal

LAW AT WORK

Q & A

We are running a softwarecompany in Delhi.Recently, we have hired

two employees for administrativework of the company. Both theemployees have to undergo aprobation period of 2 months oncompletion of which they are to beconfirmed automatically. However,we are not satisfied with the servicesof both the employees and want toterminate their services.Additionally, both the employees

Krishna Vijay Singh is a senior partner at

Kochhar & Co., one of the leading and

largest law firms in India with offices at

New Delhi, Gurgaon, Bengaluru, Chennai,

Hyderabad, Mumbai, Dubai, Riyadh,

Jeddah, Singapore, Tokyo and Atlanta

(USA). The firm represents some of the

largest multinational corporations from

North America, Europe, Japan and India

(many of which are Fortune 500

companies) in diverse areas of corporate

and commercial laws.

K. V. SinghSenior Partner, Kochhar & Co.


LAW AT WORK

In any industry there may arise asituation where it becomesnecessary for the employers to

reduce their expenditure in order tobecome financially more solvent.Such circumstances may arise due tothe deterioration in business outlookor profit margins. The reduction inexpenditure is often in the form oftermination of workmen which is akinto downsizing. Additionally, on certainoccasions it may become difficult foran employer to carry the economicweight of surplus labour for reasonssuch as shortage of raw materials, coalor power, accumulation of stocks,break-down of machinery,termination or expiry of client servicecontracts, etc. The termination mayeither be in the form of retrenchmentwhich is permanent in nature or lay-off which is temporary.

Keeping in mind the vulnerabilityof the workmen in the aforesaidsituations and to soften the rigor ofhardship resulting from workmenbeing thrown out of employmentwithout their fault, provision forcompensating the workmen in theevent of retrenchment or lay-off hasbeen incorporated in the IndustrialDisputes Act, 1947 (the "Act").According to Section 25C and 25F ofthe Act, any workmen who is

retrenched or laid-off by theemployer is entitled to compensationsubject to the conditions stipulated inthe Act being fulfilled. One of theconditions required to be fulfilled toentitle the workmen to compensationin case of lay-off and retrenchment isrequirement of 'continuous service'by the workmen for a period not lessthan one year under the employer.The words 'continuous service'ensures that the benefit ofcompensation under Section 25C and25F is extended only to workmen whohave been in uninterrupted serviceunder an employer for a period of atleast one year.

While the provisions of the Act oncontinuity of service for the purposeof entitlement of compensation underSection 25C and 25F are clear, thedetermination or computation of'continuous service' have been amatter of concern for the employersas well as employees. Therefore, astudy of the provisions as well as caselaws concerning the continuity ofservice will help us understand themeaning as well as computation of'continuous service' and view takenby the courts regarding the same.

The definition of the expression'continuous service' is provided underSection 25B of the Act. From the

language employed in sub-section (1)of Section 25(B), 'continuous service'means uninterrupted service and alsoincludes service which may beinterrupted on account of sickness orauthorized leave, accident, strikewhich is not illegal, lock-out orcessation of work which is not due toany fault on the part of the workman.Thus, the purport sub-section (1) ofSection 25(B) is that workmen shouldbe in employment of the employerconcerned not only on the days hehas worked but also on the days onwhich he could not work under thecircumstances set out above.

Therefore, for an employee to beentitled for compensation underSection 25(B)(1), the requirement isthat the employee should have beenin 'continuous service' of theemployer and the employer must beone and the same. However, it is notnecessary that the employee shouldwork in the same capacity during therequired period. Further, the term'continuous service' should not beinterpreted to mean that the serviceof the employee shall be consideredinterrupted, if he had participated inan illegal strike or had taken anyunauthorized leave. In this regard,attention must be drawn towards theobservation made by the Bombay

Requirement of ContinuousService under the

Industrial Dispute Act

work or has gone for his own frolicvisit either while travelling to ortravelling back from his place ofemployment or during hisemployment then in suchcircumstances the employee may notbe entitled for compensation interms of the Act as the employeewas not required to be at that placeor time where the accident occurred.

From your query we notice thatthe accident had occurred while theemployee was coming to the placeof employment. Since it may bepossible to establish that the verynature of the employment made itnecessary for him to be at the placewhere the accident occurred, theaccident may be construed as anaccident arising out of and during

the course of employment. You maytherefore be liable to paycompensation to the employee.

Additionally, please note that asper Section 4(2A) of theCompensation Act, you may alsohave to reimburse the actual medicalexpenses incurred by the employeefor treatment of injuries sufferedby him.

High Court in the matter of JairamSonu Shogale vs. New India RayonMills Co. Ltd. [(1958) I LLJ 28(B)]wherein the court observed thatparticipation of workmen in an illegalstrike does not lead to interruption incontinuous service unless theemployee is dismissed for suchmisconduct. The reasoning given bythe court for passing suchobservation was that taking part in anillegal strike amounts to misconducton the part of the employee and formisconduct an employee invites anorder of dismissal. But unless anemployee is dismissed from theservice for such misconduct, it isdifficult to see how there could be nocontinuity of service so far as theemployee is concerned.

Nevertheless, the definition of'continuous service' is notnecessarily limited to completionof one year of service in everyyear as defined in sub-section (1)of Section 25B. In this regard,reference must be drawntowards sub-section (2) ofSection 25B, which provides thatif an employee has not been in'continuous service' within themeaning of sub-clause (1) for aperiod of one year, he shall be deemedto be in 'continuous service' under theemployer for that period, if he has'actually worked' for 190 days in casehe is employed underground in amine or 240 days in any other case.The rationale behind this sub-sectionis that if a workmen has not been in'continuous service' within themeaning of sub-section (1) of section25B for a period of one year, he shallbe deemed to be in 'continuousservice' for that period if he has'actually worked' under the employerfor days specified in sub-section (2).While calculating the days on whichthe workmen has 'actually worked' forthe purpose of Section 25(B)(2),employer must ensure that daysmentioned in the explanation to sub-section (2) are also taken into account.

The expression 'actually workedunder the employer' used in Section25B(2) is capable of comprehendingthe days during which the workmanwas in employment and was paidwages. However, the Supreme Court,

in the matter of Workmen ofAmerican Express InternationalBanking Corporation vs.Management [AIR 1986 SC 458] wasof the view that the expression'actually worked under the employer'cannot mean those days only whenthe workman worked with hammer,sickle or pen, but must necessarilycomprehend all those days duringwhich he was in employment of theemployer and for which he had beenpaid wages either under express orimplied contract of service or bycompulsion of statute, standing ordersetc. Accordingly, the court held that

Sundays

and o t h e rholidays would be comprehended inthe words 'actually worked' anddiscountenanced the contention ofthe employer that only daysmentioned in the explanation shouldbe taken into account for the purposeof calculating the number of days theworkman had actually worked. In sofar as the daily rated workers areconcerned, a different view has beenby the courts with respect to theexpression 'actually worked'. Whiledealing with the said issue, the Punjaband Haryana High Court in matter ofRam Gopal v. Presiding officer,Industrial Tribunal-cum Labour Court[2010 II LLJ 395 (P&H)] has held thatworkmen whose engagement is ondaily basis and who is paid salary forthe days on which he is actuallyworking cannot be said to be workingon holidays for the purpose ofreckoning 240 days.

As far as method of calculating 240

days for the purpose of Section25(B)(2) is concerned, the SupremeCourt in the matter of Mohan Lal vsBharat Electronic Limited [AIR 1981SC 1253] has held that "…Section25(B)(2) comprehends a situationwhere a workman is not inemployment of 12 calendar months,but has rendered service for a periodof 240 days within the period of 12calendar months commencing andcounting backwards from therelevant date, i.e., the date ofretrenchment. If he has, he would bedeemed to be in continuous servicefor a period of one year for thepurpose of Section 25(B) and ChapterVA"

As a principle, an employee whohas not been in continuous service

under Section 25(B) is not entitled toclaim compensation for beingretrenched or laid-off by theemployer. Despite the foregoing, itmay not be uncommon that anemployee who was not incontinuous service may allegecontinuity of service and claimcompensation on being retrenchedor laid-off. However, it is pertinentto note that in such circumstances

the onus is on the employee to adducerelevant evidence that he has been in'continuous service' for not less thanone year under the employer who haslaid-off/retrenched him from theservice. Similar view has been takenby the Supreme Court in matter ofRange Forest Officer vs. S.T. Hadimani[AIR 2002 SC 1147] where the courtheld that it is for the claimant to leadevidence to show that he had in factworked for 240 days.

Therefore, on a conjoint readingof the statute as well as observationspassed by various courts, it is clearthat sub-section (1) and (2) of Section25(B) are separate and independentconditions and operate in differentfield. While continuous service underSection 25(B)(1) requires theworkmen to be in uninterruptedservice of the employer including theservice interrupted for the reasonsenumerated therein, Section 25(B)(2)covers those employees under thedefinition of 'continuous service' whohave actually worked for daysspecified under sub-section (2). HC

LAW AT WORK


R.N.I. No. 66615/1997Postal Regn. No. DL-SW-1/4022/2015-16-17Date of printing: 7th September 2015

Date of posting: 9-10 September 2015 atPSO, New Delhi-110001

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