Beruflich Dokumente
Kultur Dokumente
A Report
by
Genpact
Acknowledgements
The successful completion of this project depended on certain people I would like to thank for their
support and encouragement in course of my internship.
To begin with, I would like to thank the Placement Cell of IMI New Delhi that provided me with the
opportunity to intern with Genpact. I would also like to acknowledge the role of my faculty mentors,
formally and informally so but undeniably a source of unending support, Mr. R.P. Ojha and Dr. Afsha
Dokadia, whose ideas and expectations kept me motivated to achieve and deliver my best for the project.
My industry mentor, Mr. Rajiv Arora, Human Resources Leader, Mercer GOSS, India helped me prepare
and put in place preparatory work plans beforehand, which gave me great confidence on my first day of
internship to begin with. Touching base with him helped me stay grounded to industry expectations and
honing my approach to the work assigned.
Most importantly, I would like to thank my team at Genpact, the Global Compensation and Benefits team,
every member of which helped me gain better understanding of subject matter involved as well as tips to
improve the project output. My organizational guide, Ms. Aarti Sharma, Assistant Vice President- Global
Compensation and Benefits provided me with the phenomenal balance of autonomy in work design and
providing direction as and when sought by me. Assistant Vice Presidents, Mr. Sudhanshu Bhatnagar and
Mr. Viral Bansal also employed an open door policy wherein I could approach them with queries or
concerns whenever I felt the need. The global teams, especially Ms. Laura Draghici and Mieke
Hellingman De Roode, Sindhu Varghese, Latika Pandey, Anchita Bhatnagar, Maggie Wu and Bingbing
helped me with regional data and understanding pay structures in their offices. Last but not the least, my
Buddy Ms. Ankita Sharma, and a great source of analytical thought, Mr. Amit Bansal, helped me in
adjusting with the Genpact working style, alongside a nurturing and friendly environment that really
made me appreciate the culture at Genpact.
Thank you all for showing confidence in me, it has led me to explore my capabilities in greater depth.
Confidentiality Clause
The project findings include internal data of Genpact for which permission has
been strictly refused. To that extent, the findings of the project cannot be shared.
Broad directional outcomes may be presented .
Executive Summary
Compensation and Benefits forms 70% of Genpacts revenue base and Genpacts rapid expansion both
organically and via acquisitions has increased complexity in pay structures and practices. Thus, it is
imperative to study each region and entitys pay structure and practice to analyze scope for both
standardization and cost saving.
The project aimed to create a central repository of compensation and benefits practices of Genpact offices
and acquired entities across the globe.
Post collation, inter-country comparisons and high cost item identifications would follow in order to make
recommendations on potential cost savers and to achieve standardization.
Thus, output would be country-specific documents detailing nuances and legal provisions, one-pager
country profiles for quick comparisons and a global overview document, followed by an impactfeasibility graph that plots pay components against the extent to which they can be restructured
(i.e.feasibility) depending on whether they are mandated by local law, driven by collective labour
agreements, promoted by industry practice, country tax practice or by Genpact voluntarily.
The process began with an introduction to me and the project on a global announcement mail and global
call, followed by an email requesting documents and subsequent rounds of calls for clarifications and
filling in missing information. This was matched against a checklist of questions prepared for the call
interviews.
While the results pertain to the companys internal data and cannot be disclosed, a broad outline
can be shared, as below:
Europe
Benefits were high cost as well as high feasibility in European nations i.e. they were not
mandated and were mostly best industry practices
In some European regions, allowances had a higher cost/base pay percentage, i.e. they
were costlier than benefits and while some of these were either mandated or for expats,
many others were best industry practices or promoted by country tax practices and to that
extent voluntary.
Collective labour agreements usually governed topics like paid leaves, retirement (in
countries where it wasnt mandated), disability insurance terms and even involved agebased increments in some cases
It was observed that in certain pockets of Europe, benefits were not non-cash components
and could infact be encashed by employees in the form of vouchers, coupons and tickets
US
In the US, paid leaves and retirement benefits were high on cost but low on feasibility
since employer value proposition in US determined by the number of voluntary benefits
it provides to its employees
In the US, it was found that acquired legal entities had similar structures but depending
on the nature of the business, there were certain differences with regards to negotiations
on wages and benefits
Latin America
Gautemala has highly regulated pay norms wherein 13th month bonus (payable in
December), 14th month bonus (payable in July) and monthly bonus (Q250 per month
across bands) are mandated by state. Even paid leaves and severance pay are predetermined by the state
Mexico is not as heavily regulated and follows a slightly different structure wherein
weekly bonus, shift bonus and production bonus are provided to certain bands of
employees
South Africa
Follows 3 salary structures owing to expatriates and acquired entities over and above
Genpacts existing pay structure
Asia
Social security contributions by employer are mandated in China and Philippines mainly.
13th month bonus is also provisioned in both these regions.
Singapore is more or less aligned to its Indian entity in structure although costs for
insurance are very high owing to expatriate packages which can now be changed due to
favourable local hiring opportunities
Globally, consolidating to include fewer insurance vendors would mean us giving them greater
bulk of clientele and hence greater discounts to the company.
Conclusions & Recommendations
Allowances and benefits are many and voluntary. They complicate the structure of pay in
Europe especially when certain benefits become encashable since that is a higher cost to
company
US entities are many and follow different structures. Standardization may help attain
greater centralization although business-specific nuances should be allowed to exist
Latin America pay provisions are heavily regulated in some countries but low cost
arbitrage still exists
South Africa follows three different salary structures but they do not differ greatly except
for one or two components
Benefits in China and Philippines have high rigidity since many of them are mandated.
India and Singapore are more flexible. Singapore has a number of allowances and
benefits for expatriates which are high cost and can be restructured since local hiring
conditions have become favourable
Table of Contents
1. Chapter 1: Introduction9
1.1. Introduction to the company.9
1.2. Introduction to the project..10
1.3. Problem Formulation & Research Rationale..10
1.4. Literature Review .11
1.5. Theory.19
1.6. Research Objective(s).23
1.7. Research Question(s)..23
1.8. Hypothesis..23
2. Chapter 2: Method....24
2.1. Sample....24
2.2. Measures (Questionnaire)..24
2.3. Procedure (Data Collection)..24
4. Chapter 4: Conclusion.33
4.1. Conclusions & Recommendations...33
References...34
Chapter 1: Introduction
1.1 Introduction to the company
Genpact is a global business process outsourcing firm present across 23 countries with a
workforce of 62,000+ employees across the world and a revenue of $2B (2012). It was founded
in 1997 as a business unit of General Electric as a beta site for applying and offering Six Sigma
in Services.
Genpact has undergone 6 generational journeys thereafter:
Gen 1 (1997-2003): Beta site for Six Sigma in services
Gen 2 (2003-2005): Movement from Captive (GE clients) to Independent Clients
Gen 3 (2007): Provision of Reengineering and Business Process Management Solutions (BPMS)
Gen 4 (2008): Adoption of End-to-end thinking, expanding reengineering beyond piecemeal
processes
Gen 5 (2009-11): Generating Business Impact through Lean Six Sigma Processes
Gen 6 (2012 onwards): Transformational Journeys- Business transformation by innovating Six
Sigma processes
Cost
Management
Driven by
cost
advantage
Transactional
Services
Project
Management
Driven by
cost,
quality and
delivery
BPMS
Application
Driven by
technical
skills
BPMS
Innovation
Driven by
competency
BPMS
Leadership
Driven by
innovation
Transformation
Services
10
For example: Acquired entities in India follow a different pay structure and practice from
Genpact although efforts are being made to align the two- this is only possible once an indepth
study of both structures has been carried out to understand the cost implications as well as
company-specific practices that have been carrying on for a long time and may affect employee
reception.
Similarly, European countries follow a very different pay structure than India owing to
differences in external environments, local best practices in both regions. However, how much
the structure can be simplified and aligned to Genpact India again requires an understanding of
how the prevailing pay structures came into being.
The application of these studies is depicted below:
Individualism
11
In less individualistic countries, seniority, intrinsic rewards and internal equity are
more likely.
Uncertainty
avoidance
Variable pay/incentives, decentralized pay-setting and external equity are more likely
in low uncertainty avoidance countries. Individual performance-based pay more
likely.
Fixed pay (e.g. base salary), centralized pay-setting and internal equity play a greater
role in high uncertainty avoidance countries. Compensation based on seniority more
likely.
Masculinity
Short term/Long
term orientation
Differential pay policies that allow inequality in pay, promotions and so forth based
on gender as well as paternalistic benefits intended to be geared primarily toward
women are more likely in countries lower in masculinity. E.g. Maternity leave,
flexible benefits, workplace childcare and career-break schemes likely.
Short term incentives such as performance bonuses and fast track career path
accompanied by merit pay and promotional pay increments for countries inclined to
results in the short term, depending on economic urgency.
Long term incentives such as equity options, restricted stock units (RSUs), seniority
pay and recognition for countries inclined to long term orientation.
Source: Based on studies by Gomez-Mejia and Welbourne (1991), Schuler and Rogovsky (1998)
Gregorio Sanchez Marin (2008) adds to Barry Gerharts theory in his article National differences in
compensation and cultural context in the book Global Compensation: Foundations and Perspectives
(Global HRM). He brings to fore the high variable pay percentage for sales in the USA, role of collective
bargaining in Germany, influence of governmental norms for employer contribution to social security
schemes and the importance that seniority pay assumes in China.
A few points propagated for USA and China are shared below:
USA
State laws limited to minimum wages, dismissals, discrimination, equal opportunities, social
benefits, safety and health
Strict control of salary costs, not through state intervention but by linking these to individual or
group performance
Unegalitarian salaries with high difference based on performance, also driven by external market
conditions owing to strong competitiveness
12
Special attention paid to levels of variable pay and incentives rather than fixed salary
o
Performance based compensation is the main form of variable pay, mainly of two kinds:
o Bonus plan for the individual
o Profit sharing and gain sharing systems
Voluntary social benefits by the employer is the differentiator among preferred employers
o Paid time off work (holidays, leaves, free days)
o Insurance and medical benefits
o Pension schemes and saving plans
China
Doing Business in China Guide (2014) by ECOVIS further provides income tax slabs corresponding to
income ranges as well as contributions required for social security:
Employer to contribute 20% of base payroll to state sponsored retirement scheme
Employer to contribute to medical insurance fund, maternity insurance, unemployment insurance,
work-related injury insurance and housing
Total employer contribution can go up as high as upto 40% of employees monthly basic salary
Milkovich and Newman (2005 edition) in their book Compensation describe various benefit plans in
USA and related Acts, further supported by SHRMs GP-HR certification material on:
Legally required: Workers compensation, social security, unemployment insurance, Family and
Medical Leave Act (FMLA), Consolidated Omnibus Budget Reconciliation Act (COBRA),
Health Insurance Portability and Accountability Act (HIPAA)
Intermediate (IPC) Course Taxation Practice Manual, ICAI (2013) provided an in-depth view on taxation
implications on various salary components. Some examples are shared below:
1. Housing Rental Allowance (HRA): Exemption shall be available on the least of the following13
HRA received
Rent paid less 10% of basic pay
40% of basic pay (50% in case of Mumbai, Chennai, Delhi, Kolkata)
Charles H. Fay (2008) further highlights in his article on Moving towards Global Convergence in the
book Global Compensation: Foundations and Perspectives (Global HRM) as to how despite the cultural
differences, there is a convergence of compensation structures across countries due to internal forces of
similar organizational structures and expanding footprint of MNCs with expatriates being sent to run the
startups, as well as external forces of globalization and increased labour mobility.
Armstrong and Murlis (2004) of Hay Group in the book Reward Management: A Handbook of
Remuneration Strategy and Practice speak of the trends in Reward Management that are emerging
globallyEngaged Performance
Attaches importance to relational awards associated with work environment and learning and
development rather than transactional rewards
Aims at what employee values most in the shape of rewards: reputation of the organization,
recognition and communication in addition to growth & career advancement opportunities
Pressing the lever of performance related pay is not sufficient for driving organizational success,
however it can be used as a tool to drive culture change
For example: In the GE case study done in Compensation & Reward Management course at IMI, pay of
CEOs got linked to target based performance instead of the erstwhile provision of equity options that led
to manipulation by business leaders in order to make short term gains at the cost of a volatile business
scenario
Job Evaluation
Written off in 1990s as irrelevant stating that the market rules, okay?
Flourishing in 2000s, although in support capacity rather than a driver for grade decisions
Driven by internal equity and equal pay considerations
14
Equal Pay
Acts on Equal Opportunity Employment has increased pressure to introduce analytical job
evaluation but also to conduct equal pay reviews/audits. While organizations appear to be
reluctant but the pressure to do so will no doubt increase
Broadbanding
Two questions emerged in the 1990s and early 2000s regarding broadbanding:
o Whats the point of broadbands if they simply consist of spot rates?
The answer given by broadband devotees to this is that there is atleast some overall
structure within which spot rates could be managed.
o
Whats the difference between, say, a four-banded structure with three zones per band
and a 12 grade structure?
The answer to this was that as roles develop, movement between zones could be dealt
with more flexibly.
However, none of these arguments are particularly convincing and disillusion with the
broadbanding has increased since it has been found that it is harder to manage broadband
structure than narrow-graded structures despite the original claim that they would be
easier- they make considerable demands on line managers as well as HR. Broadbanding
can build employee expectations of significant pay opportunities, which tend to be
mismanaged rather than managed. It can be difficult to explain people how broadbanding
works and how it will affect them, and they may be concerned by the apparent lack of
structure and precision. Decisions in movements within bands can be harder to justify
objectively than in other types of grade and pay structures.
The trend is therefore for organizations to develop broad-graded structures, i.e. structures with 6
to 10 grades, which are managed in the same way as traditional narrow-graded structures using
reference points, zones and compa-ratios.
One of the most significant developments is the use of career and job families.
o A career family structure is one in which separate job families are identified and defined
but a common grade and pay structure applies to all families. Job families may contain
separate market groups, each with its own graded pay structure but career family provides
an overall range.
o Thus career family structures define career paths between and within families, and
because this can be treated as an integrated approach to human resource management, it
is perhaps their most important feature.
15
Contribution-related Pay
The concept of contribution-related pay was only introduced as an alternative to performancerelated or competence-related pay in 1999 by Duncan Brown and Michael Armstrong.
Contribution-related pay rewards people for both their inputs (competence) and their outputs
(performance). It does not simply concern itself with the achievement of objectives without
considering how they were achieved and how performance could be improved.
A further reason for its increasing popularity is that the term contribution resonates with people.
They feel that this is what working in organizations is all about- we are here to contribute to the
achievement of organizational and team objectives, not just to perform or display competence.
Flexible Benefits
For reward managers the question isnt should we or shouldnt we? but what should it look like
for us?
The theory of flex is to find out what employees want through surveys and employee relationship
management systems and to tailor rewards accordingly. However, there needs to be balance to
ensure that employee needs are aligned to employer values. For example, pension benefit is rarely
highly valued among young employees. Nevertheless, pension remains a core benefit with no
cash alternative or opt-out option because the message it gives is one of a responsible employer
thinking of the future welfare of its people.
More responsibility for pay decisions should be delegated to line managers. But in doing so, the
issue of capacity of line managers to make decisions fairly, consistently and in accordance with
policy guidelines has been questioned.
This means that in planning of reward initiatives it is essential to devote time in a programme for
educating and training line managers and to ensure that continuing guidance and help are
provided by HR as required.
Total Reward
16
Hay Group (2008) proposes a total rewards framework, as available on their website.This framework
takes strategy as a starting point, with considerations of both employee and organization needs, including
every cash and non-cash components. This is further tied to a strong implementation plan that translates
into bottom-line results.
World at Work (2007) also follows a similar total rewards model that ties in business strategy and culture
with cash and non-cash rewards, ultimately translating into results.
17
Aon Hewitt in its report Total Rewards Survey (2007) covers greater depth in defining rewards as
everything an employee gets from the employer that they find rewarding i.e. compensation, benefits,
learning, development and environment.
18
1.5 Theory
Compensation is defined as any form of payment made to an individual for services rendered as an
employee for an employer. Components of compensation can be defined by the 4 Dimension Model,
which divides compensation into base wage & salaries, add-on components such as allowances on base &
gratuity of salary, incentive payments and benefits.
Compensation
System
Incentive
Payments
Benefits and
Services
Short term
incentives (bonus)
& Long term
incentives (equity)
Insurance,
Retirement,
Severance Pay, Paid
leaves etc.
This is the classification that has been used further on in the project during documentation and analysis of
global compensation and benefits practices at Genpact.
Just as Incentive payments are classified as short term and long term incentives, Benefits and Services
can further be classified as:
Further constructs for country-specific data were framed on the basis of studying Genpact Indias
Compensation Policy document, alongside documents pertaining Benefits, Reward programmes and Paid
leaves.
The following basic constructs were formed:
19
Band 5
Band 4
Band 3
Band 2
Band 1
Comments
($x-$y)
($x)
($x-$y)
($x)
($x-$y)
($x)
($x-$y)
($x)
($x-$y) included
Allowance (2)
Allowance (3)
(x%)
(x%)
(x%)
(x%)
(x%)
(y%)
(y%)
Mandated 100%
employer contribution
FIXED PAY
Base pay
Allowance (1)
VARIABLE PAY
Annual
performance
bonus
Variable
Incentive
Component
BENEFITS
Provident Fund
x% of base
Medical
Insurance
OTHER REWARDS
Other rewards &
recognition
20
The comments section for Benefits include details on whether the contributions are made by employer or
employee or both, and further analyzed based on their nature:
In addition, promotions and increment guidelines were also outlined in a detailed section of the
report.
Legal provisions for each of the components of compensation, benefits and other rewards were to
be studied and stated in a detailed document, especially for salary components with tax
exemptions or heavy tax implications. Apart from tax, certain social security contributions are
mandated and these are also to be captured under the Legal Provisions section.
In the end, a best market practices and upcoming changes section was also added in order to
report any changes that the regional office was considering and the best market practices
employed in their region for their labour markets.
Components
Details and Legal provisions
Increment Guidelines
Promotion Guidelines
Components
Details and Legal provisions
Paid Leaves
Severance Pay
21
Salary Components
Region
Basic
HRA
Medical
Cash Component
India
USA
Europe
Conveyance Allowance
Special Allowance
Location Allowance
Annual Performance Bonus
Variable Pay
Retirement Benefits
Gratuity
PF
Personal Accident Insurance
Insurance
Other Benefits
Leased Accomodation
So far the theory applied for documentation and inter-country comparisons of Compensation & Benefits
practices.
The theory for analysis arose later once all the information was in place. It was observed that certain
allowances and benefits were mandated or driven by collective labour agreements, some other promoted
voluntarily or as a best practice. Thus, the extent to which these components could be altered varied in
degrees (i.e.
feasibility), due to which the
following
classifications were made:
The downward arrow depicts increasing extent to which benefits can be altered or restructured, with green
being most flexible and red being most rigid.
Post classification, the idea is to plot costs against these classifications of feasibility to get an ImpactFeasibility graph:
22
In this figure, benefits that have high cost and high feasibility are least desirable and to that extent require
restructuring or alterations. Low cost with low/high feasibility is ideal in both cases, and high cost and
low feasibility (i.e. mandated or driven by collective labour agreements) cannot be changed and hence
remains status quo. A sample exhibit is viewable in the Results section.
To document compensation and benefits structures and practices across offices and entities of
Genpact globally
To identify departures of other country pay systems from that of Genpact India and suggest
recommendations for standardization
To identify potential cost saving areas
1.8 Hypothesis
23
Chapter 2: Method
2.1 Sample
Country offices with headcount greater than or equal to 100 employees were considered.
3 legal entities were considered, owing to their presence in important customer markets:
Capital Market Services, ITO and Jawood
Employee bands 1,2,3,4,5 were included
Fixed pay, variable pay, benefits, paid leaves, increments and severance pay were included
24
A broad outline of identified processes for data collection are shown in the project timeline on the next
page.
25
7,9,10
Apr
Week
0
14Apr
Week
1
21Apr
Week
2
28Apr
Week
3
5-May
Week
4
12May
Week
5
19May
Week
6
26May
Week
7
Genpact Orientation
Department Orientation (India C&B
documents)
Define Scope of Project
Define timelines
Team Introduction
Announcement
Understanding material
requirements
Collating material available
within team
Global Team Call
Reach out for policy documents
Collate country-wise policy
documents
Draft Questionnaire
Set up calls with global teams
(Phase 1)
Collate findings
Set up calls with global teams
(Phase 2)
Collate findings
Final consolidation & review
Done
Work-in-progress
To be done
26
27
Country-specific reports on compensation and benefits practices stating details and legal
provisions pertaining to fixed pay, variable pay, benefits, increments and severance pay
One-pager country profiles for quick comparison that entails provisions made to
employees band-wise, including costing details per band and classification of
components as rigid/flexible (i.e. mandated by law or voluntary). A sample exhibit is
provided on next page.
28
Impact-feasibility graphs that plot cost of pay component alongside its rigid/flexibe
nature. An exhibit it provided below.
29
Cost analysis tool Heat Map: This tool colour codes costs in varying shades of green
yellow and red depending on degree of high spending. Visually, it aids analysis of where
costs are high at a glance. A sample exhibit is provided below.
In the exhibit above, it can be seen that Legal has the most number of reds in its column
and hence it is one of the most highly paid functions. Marketing and Communications has
the most pleasant shades of yellow and greens with barely any orange colourations and
hence, it is one of the lowest paid functions.
Global poster
A creative initiative undertaken to plot all countries on a map and mention the differentiating
nuances on stick-it notes.
A picture of the same is provided below.
30
Benefits were high cost as well as high feasibility in European nations i.e. they were not
mandated and were mostly best industry practices
In some European regions, allowances had a higher cost/base pay percentage, i.e. they
were costlier than benefits and while some of these were either mandated or for expats,
many others were best industry practices or promoted by country tax practices and to that
extent voluntary.
Collective labour agreements usually governed topics like paid leaves, retirement (in
countries where it wasnt mandated), disability insurance terms and even involved agebased increments in some cases
31
It was observed that in certain pockets of Europe, benefits were not non-cash components
and could infact be encashed by employees in the form of vouchers, coupons and tickets
US
In the US, paid leaves and retirement benefits were high on cost but low on feasibility
since employer value proposition in US determined by the number of voluntary benefits
it provides to its employees
In the US, it was found that acquired legal entities had similar structures but depending
on the nature of the business, there were certain differences with regards to negotiations
on wages and benefits
Latin America
Gautemala has highly regulated pay norms wherein 13th month bonus (payable in
December), 14th month bonus (payable in July) and monthly bonus (Q250 per month
across bands) are mandated by state. Even paid leaves and severance pay are predetermined by the state
Mexico is not as heavily regulated and follows a slightly different structure wherein
weekly bonus, shift bonus and production bonus are provided to certain bands of
employees
South Africa
Follows 3 salary structures owing to expatriates and acquired entities over and above
Genpacts existing pay structure
Asia
Social security contributions by employer are mandated in China and Philippines mainly.
13th month bonus is also provisioned in both these regions.
Singapore is more or less aligned to its Indian entity in structure although costs for
insurance are very high owing to expatriate packages which can now be changed due to
favourable local hiring opportunities
Globally, consolidating to include fewer insurance vendors would mean us giving them greater
bulk of clientele and hence greater discounts to the company.
3.3. Limitations
Japan, Brazil and Colombia not included in the study although they have headcount
greater than 100 owing to certain business exigencies in their respective regions
Other offices with headcount less than 100 are excluded: UAE, Australia, Morocco
32
Pay and benefit practices for Band 0 (Senior Vice President) were excluded from the
scope of the project
Equity options and retention bonuses were excluded from the scope of the project
Multiple calls will have to be made in order to document more data. It is essential to ask
the right questions for best results and also to verify reports made with the office once
before finalizing it
It is also important to validate documents sent by offices since some of them could be
outdated and changes in policies may have been made in practice
Exclusions from current project scope can be included for further research
Chapter 4: Conclusion
Conclusions & Recommendations
Allowances and benefits are many and voluntary. They complicate the structure of pay in
Europe especially when certain benefits become encashable since that is a higher cost to
company
US entities are many and follow different structures. Standardization may help attain
greater centralization although business-specific nuances should be allowed to exist
Latin America pay provisions are heavily regulated in some countries but low cost
arbitrage still exists
South Africa follows three different salary structures but they do not differ greatly except
for one or two components
Benefits in China and Philippines have high rigidity since many of them are mandated.
India and Singapore are more flexible. Singapore has a number of allowances and
benefits for expatriates which are high cost and can be restructured since local hiring
conditions have become favourable
Note: Impact-feasibility graphs for each country and entity point out exactly which
component of pay is high cost and high feasibility (i.e. can be altered flexibly). Since that
data cannot be shared, the above recommendations are broad outlines of the same.
33
References
Global HRM (2008). Global Compensation: Foundations and Perspectives. Gerhart, Barry.
Routledge Publishing. p.547- 548.
Global HRM (2008). Global Compensation: Foundations and Perspectives. Sanchez, Mario
M. Routledge Publishing. p.15-20.
Global HRM (2008). Global Compensation: Foundations and Perspectives. Fay, Charles H.
Publishing. p. 131-132.
Board of studies (2013). Intermediate (IPC) Course Taxation Practice Manual. ICAI (2013). Pg 1518.
Milkovich, George and Newman, Jerry (2008). Compensation. Tata Mc Graw Hill. p. 137138.
Murlis, Helen and Armstrong, Michael (2008). Reward Management: A Handbook of Remuneration
Strategy and Practice. Hay Group. p. 591-600.
Wang, Lun and Pingwen, Hu (2014). Doing Business in China. ECOVIS.p. 32-34.
34
Appendix 1
Genpact growth story:
35
Is it mechanistic or creative?
o Tasks are creative since Genpact is currently in the Business Reengineering innovation
phase wherein existing client processes can be improved and made better, which although
follows a broad structure in terms of metrics and linkages of sub-processes, still it
encourages creativity on the whole.
What sort of approach is needed to do this work best? Quick? Thorough? Caring? Analytical?
Precise? Enthusiatic? ...
o Analytical approach is required to do this work best.
36
Who interacts to get the work done? Bosses, employees, peers, external stakeholders.
o Bosses, employees and external stakeholders
What are these people's preferences and expectations for compensation, reward, career
progression, recognition, and organizational commitment?
o Peoples expectations are of long term employment, but more importantly growth in the
organization through learning interventions such as certifications and cross rotation
Are there distinct business units or other separations? Regional, functional, by product, by market
o Functional horizontals and industrial verticals across geographies define business
segregations. Functional horizontals include Finance and Accounting, Analytics, Quality,
IT, Marketing/Communications while industry verticals include BFSIs, Retail, Life
Sciences, to name a few
37
Thus, there is a high degree of congruence where organizational performance is driven by Genpact
customer-centric tasks, with an organization structure that promotes learning and aids Genpact in
innovation over and above honing the skill sets of finance & accounting and analytics.
SWOT Analysis
Strengths: Capabilities of Lean Six Sigma, Smart Enterprise Processes & Analytics
Weaknesses: Low pay master, competitors are established brand while it is a developing brand
Opportunities: Macroeconomic conditions in the West and Europe mean that clients are looking
for servicers abroad. Also, for Genpact India there are opportunities up the value chain as
traditional business outsourcing services move to nations with cheaper labour
Threats: Price war erupting through competitors, increasing costs and inflation reducing cost
arbitrage,
Porters 5 Forces
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o
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Genpact has various competitors in the BPO industry which is especially based on cost
arbitrage and thus customer has several options to consider
BPO industry firms offer same nature of services and switching cost is low, therefore,
customers can easily consider changing service providers
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