a bumpy ride—leveraging human resources

by sharon pande

Riya Pande looked up from the stack of papers before her and gazed out of the French windows
in the conference room. She was waiting for her team to arrive for an emergency meeting. Part of
the core team at Nebula, she had been promoted twice and was due for another review in the
next six months. An ambitious professional, Pande enjoyed the challenges that arose as the
company expanded.

Founded in 2003, just before the retail boom, Nebula Hypermart had capitalized on its early
mover advantage and expanded rapidly. In a span of four years, it had become one of the largest,
most successful retail chains in the country. A family-owned company, Nebula was now run by
Mihir Bani, a management graduate from Stanford. Although Bani was relatively young, he was
respected by all—his employees, customers and competitors. In fact, many viewed him as a
visionary, given Nebula’s growth curve since he had taken control of the company in 2004.

All in all, it had been a smooth ride till the recession when customers started cutting back on their
purchases, keeping a tight rein on their wallets, be it cash or credit. That was just the beginning of
their problems. At the time, they responded by trying out several new things. For starters, they
introduced discounts on several products, especially those that were really fast moving. They
organized training workshops for the customer-facing teams to help them effectively tackle the
dwindling customer demand. The sales team were offered special incentives to encourage them
to come up with out-of-the-box ideas to step up consumer demand. They had even revisited their
entire system of human resource management and introduced changes wherever necessary.
However, by then, the sub-prime crisis had grown into a full-blown recession, with its tentacles
spread across the length and breadth of the globe. It looked as if footfalls at Nebula were never
going to come back to its previous levels. The problem progressed, embedding itself deeper and
deeper, with dipping sales revenues, reduced sales incentives, dwindling numbers in customer
facing teams and very low employee morale.

Something had to be done, and soon. Hence, today’s emergency meeting. But what was the way
ahead, the strategy to be employed?

Pande pulled herself out of her reverie, attempting to focus on what lay ahead. Should it be a cut
in salaries? In any case, that would be better than ruthlessly retrenching staff. Oblivious to all of
this, her team had gone ahead with the cake cutting to celebrate the boss’s anniversary. After all,
Nebula had had a great innings thus far.

human resource strategy

building the team : Pande’s first mandate as Chief Strategy Officer had been to put together the
management team. Under her guidance, Human Resources drew up a list of veterans in the
industry, tied up with niche headhunters and hired the first batch of key personnel. The objective
was to put in place an accomplished team who could get it right the first time. Only people with
prior retail experience were chosen. Most senior personnel came on board because they thought
this was their big chance to create something new, unencumbered and fun. At the same time,
they had their feet planted firmly on the ground. They knew that there is a world of difference
between vision and reality. Also, that success in the start-up phase was no guarantee of
continued high performance, as was obvious from the many that had enjoyed early success only
to come apart as they grew.
Nebula first concentrated on major metros, later moving to Tier I/II cities.

the ‘value wheel’: While other companies shouted about their mission statements, the big guns
at Nebula felt that these were like empty vessels: all noise and no substance. Instead, they
believed that values form the bedrock of an organization—its activities, policies and practices,
decision making, management styles, et al. After much deliberation, they came to a consensus
around seven core values: ethics, integrity, enthusiasm, entrepreneurial spirit, a world
beater mindset, fun and innovation. These would form the basis of all that Nebula stood for, the
‘Value Wheel’, the Holy Grail for all recruitments.

recruitment, induction and training: The team paid strict attention to the recruitment process
for each position that had to be filled. In order to ensure that the right people (whose core values
were the same as Nebula’s) got the job, candidates were asked questions with respect to their
past behavior. Applicants were encouraged to recall incidents in previous assignments where
they had enforced certain decisions and also to explain the consequences of their actions. Their
answers were the key to whether they would uphold Nebula’s values.
There were multiple levels of interviews for the positions that needed to be filled.

Further, induction programs were conceptualized keeping the various functions in mind. For
instance, sales and customer facing teams had an almost two-week orientation. Additionally,
buddy programs were introduced as part of the evaluation process where employee feedback
was invited for the first ninety days.

Indeed, over the past two years, they had managed to rope in SAP HR, succeeding in getting all
their HR systems automated.

talent management : A robust performance management system tends to cut through the clutter
of complex issues that threaten the success of modern retail, i.e. international sourcing,
pressures on pricing, multi-channel operations, reduced predictability in the market, power of the
Internet and complicated overseas markets.

Not surprisingly, Pande had, in the initial stages itself, introduced the popular system of Balanced
Score Card.

Parameters evaluated included the ones typically reviewed as well as those that corresponded
with the ‘Value Wheel’. Challenging yet realistic objectives were set, and the first two years went
off very well, with almost all employees falling within the Bell Curve. However, come the third year
and the mid-year review reflected a sorry state, with the Bell Curve largely skewed and over 60%
of the employees not even meeting average expectations.

It was the same story with respect to compensation. They had started off benchmarking
themselves with the best in the retail industry, subsequently introducing reimbursements to help
employees save tax. They had also modified their sales incentives to match the best in the
industry. ‘A-raters’ were introduced to stocks. Plans for profit sharing had been in the pipeline, but
the recession had put a spoke in the wheel. It was Bani who decided to withhold this measure.

“Congratulations and celebrations….” once again Pande’s daydreaming was interrupted by the
chorus of voices. The cake cutting was over and it was time to get down to some hard facts. She
threw a quick glance around the conference room to check if everyone was present.

Akhil Batra was there; he was tinkering away on his BlackBerry. He had about ten years’
experience in the retail sector in the US when Nebula brought him over to India to start their new
retail venture. Once Batra was in India, he spent two years living out of a suitcase, traveling the
length and breadth of the country, meeting channel partners, suppliers and farmers who had land
to spare.

Ashok Venkatraman, Head of Operations, was engaged in a whisper session of sorts with Ram
Kumar, Head of Finance. Yogesh Desai, Head of Retail Sales; Ram Paranjape, Head of Quality;
Sanjay Parekh, Head of Credit and Collections and some senior HR team leaders were also
present.

“They must be thinking that I have decided to throw in the towel,” thought Pande. After all, this
was the first emergency meeting she had called. After a brief pause, she started, “I have called
the team to discuss a pressing issue, which, if left to its own devices, is going to boomerang in
our faces in the coming months. It is crucial that we all put on our thinking caps and zero in on a
strategy to tide over this situation gracefully.

“As we all know, the recession has affected all business domains globally and we are definitely
no exception to this. Retail giants such as Cesco and Tall Mart have started shutting down
outlets, retrenching staff mercilessly. Sheer panic has stopped almost all retail chains in the
US and European markets from making investments.”

“Are you saying Riya that we too are contemplating shutting down outlets? Surely, we are not in
such bad shape, or are we?” Venkatraman butted in.
“We all agreed to do some serious cost cutting in our verticals and functions and, we have
actually managed it. So now what is left to be done?” asked Paranjape.
“But the sales figures over the last two quarters tell a different story,” Pande asserted.

All eyes turned to Desai. Of late, his team seemed to be the target of gyaan by all and sundry.
Then again, if it wasn’t the sales team, it was the customer-facing team taking the flak. “Are you
saying that Sales is not delivering as per the agreed targets? If that’s the case, why don’t we just
sack the existing team and recruit a new team?” Desai’s voice was high-strung to say the least. “It
isn’t fair to pin the problem on sales and customer-facing teams alone. We are all sailing in the
same ship, so if the ship sinks, we all do,” he continued in a high pitch.

“I have analyzed our output in the last four quarters, and there are a few things we need to do,”
Riya broke in. She didn’t want one of those interdepartmental rows that had become the norm
these days. “We are just two years old; the first year was the project phase and the last one year
has been a joyride. So far, the going has been good because consumers have been generous
with their purse strings. Unfortunately now, they are tightening their belts, and we are feeling the
pinch. However, my contention is that even in these tough times, we can win new customers and
gain customer loyalty by focusing on those who aren’t our best customers—and by making sure
we only offer what customers really value.”

Finally, Pande had managed to grab ears. She continued with newfound confidence, “Hereon, we
should apply five rules to gain market share.

▪ We should focus on customers who are loyal neither to us nor our competitors.
▪ We should seek to continually close the gap between customer needs and what we are offering
currently.
▪ We should attempt to reduce ‘bad costs’–costs that produce benefits that customers won’t pay
for.
▪ We should form clusters of our stores based on similarity of customers’ needs and purchase
behaviors.
▪ We should actively adopt retooling processes—customer research, merchandise planning,
performance management—so as to better position Nebula to apply the first four rules.

In addition, we should look at tying up with major retail chains across the country to have a
common supply chain and warehouse for stocking goods. Unfortunately, most retailers don’t
work in this manner. Usually, they track the items that have been sold, the demand for these
items and sometimes, they can even pin down the customers and the time of the purchase. And
while this information leads to greater efficiency in inventory management and purchasing, it also
allows retailers to stock up on what’s selling well and pare down on what’s not. This leads to a big
gap between what the retailer is offering and what the customer really wants. We need to avoid
falling into this trap if we are to get back our market share.

“However all these strategies can be implemented and will work only if our employee productivity
is at an optimal level. The latest appraisal forms indicate a lack of focus and demoralization
amongst employees across teams. I would also like to add that the management is toying with
the idea of suspending the distribution of incentives and pay raises till the economy improves and
footfalls start increasing. ”

your question
Given this situation, come up with strategies to boost employee morale and productivity in Nebula
Hypermart’s workforce.

Q) Can PMS or Performance appraisal be carried out without pay increase?

Ans. Due to recession many companies have stopped doing appraisals as they cannot afford to give the
merit pay increases and hence not conducting performance appraisals. Is it the right way? If this happens
how will the organisational goals be achieved without communicating to the employees?

Appraisal
Perfomance appraisal it dosent mean that its for Salary increase. Appraisal is done to know about each
employee how he works and what is needed for him to improve his efficiency(Training,Posting to other
depat., Better working atmosphere) and ofcourse incetives.

Q) Can PMS or Performance appraisal be carried out without pay increase.

Ans. In my opinion it sounds good to conduct performance appraisal for training identification, motivation of
staff, and transfer from one department to other etc but without giving money everything goes in vain. Pay
hike must be given to the deserving candidate or else the long term goals will be affected. Also you will have
high attrition rate.

Performance Appraisal
mostly performance appraisal carried out vary from company to comany as per policy,through performance
appraisal to identify employees KRA and achievement of result consistently contribution for improvements of
the organisation.geting suggestion to imrove the system/quality management/cost reduction etc.

PMS aligned with organization objectives

Performance Appraisal is just a part of entire Performance Management System. PMS, according to me, is a
process wherein efforts are made to ensure that employees' activities are compatible to attainment of overall
organizational objectives and goals. PMS start with the day an employees joins the organization and ends
when an employee leaves the organization. PMS includes Planning the performance and setting the
objectives, Monitoring the Performance, Supporting the development of an employees so that he
contributes, Reviews of performance and rewards.

Defining KRA, KPA and KPI

Key Result Areas (KRAs) are a set of Objectives which, when achieved by individuals in the Organization,
result in achievement of business goals. It is important to understand that routine job responsibilities ("daily
management") are not KRAs. The intent of KRA's is to capture the things which drive those outcomes. One
role may target three or more KRAs. An important use of KRAs is in the segregation of duties. Every
employee in an organization is given specific KRAs for which he/she is exclusively responsible. KRAs help
prioritize activities, and therefore improve time/work management. Now, KPAs or Key Performance Areas
are set when the key results area is large. It helps managing and evaluating the KRAs well. Further, KPIs or
Key Performance Indicators enable managing and evaluating each KRA and KPA separately. For Example:
Suppose the CORPORATE OBJECTIVE for an organization is -improve the company competitive
positioning and productivity by 10%. HR department OBJECTIVE for the period is -Improve the productivity
10%. This means; KRAs, KPAs and KPI [shown in brackets ] for HR. KRA 1 -RECRUITMENT/ SELECTION
KPA 1- RECRUITMENT [KPI= average time taken for recruitment per employee = 2 months] KPA 2
-SELECTION [ KPI = average cost per new employee = Rs.10,000/-] Therefore, it can be understood that
KRA, KPA and KPI are not separate elements or procedures; rather all three are relevant in managing
overall performance in an organization. Thus, these can also be represented as under: Objectives → KRAs
→ KPAs → KPIs

KRA's/ KPA's both are similar where in its is the area either results or performance
going to be evaluated through KPI . Example: If Recruitment is the KPA and KPI will be lead time taken for
completetion of recruitment.
Eg: KRA - Productivity (Obvious in most business cases) Key Processes - Broadly Performance
Management, Specifically one may consider processes including Job Support, Mentoring.. KPI - Employee
Engagement Levels, HR ROI

Q) Explain applicable criterion of employee’s peformance appraisal in the senior managemnt level?
Ans. Some Hints on EPA
between supervisors and subordinates to identify strengths and weakness especially in the following areas:
a. Compliance to the Job Description; b. Competence of discharging designated duties; c. Ability and
understanding of the given tasks; d. Adherence to policies, procedures and system; e. Quality standards;
and f. Personal characteristics and discipline. This discussion should indicate where the employee
performed his duties to achieve the corporate objectives of the company as well as areas for improvement
and constructively criticise any act, which may result in weakness.

EPA
Employees Performance Appraisal (EPA) is the systematic process by involving employees in measuring
the individual contributions towards the corporate achievements as well as it is an indicator to improve
organizational effectiveness in the accomplishment of corporate goals. EPA is the best tool to assess an
employee’s success in fulfilling designated tasks to the best of his ability and to determine areas require
improvement. It is a discussion between supervisors and subordinates to identify strengths and weakness
especially in the following areas: a. Compliance to the Job Description; b. Competence of discharging
designated duties; c. Ability and understanding of the given tasks; d. Adherence to policies, procedures and
system; e. Quality standards; and f. Personal characteristics and discipline. This discussion should indicate
where the employee performed his duties to achieve the corporate objectives of the company as well as
areas for improvement and constructively criticise any act, which may result in weakness.

Q) Why is behavioral analysis central to the development of an organization and its people ?
Ans. When an organization is under performing against management expectations, it is common for the
managers to cite deficiencies in employee behaviors as the underlying cause. A simple examination of the
company’s performance may even seem to support this view. But how likely is it that a whole body of staff
has suddenly ‘gone bad’? How often is it more a case of misunderstanding and misalignment?

We need to examine how an individual’s behavior is ‘constructed’.

At the center is our Cultural Heritage (CH). This is the frame of references that our particular country, race,
or regional area has developed over time. These are passed down through the generations and are
ingrained most deeply in our subconscious. The effect of our cultural heritage is very difficult to change and
that is why it is placed at the center.

The next layer is our Unconscious Behavior (UB). This describes how we naturally react to stimuli when we
don’t have time to think or prepare a reaction. It is known that this behavior is formed very early in life but the
precise factors that determine our unconscious behavior are not known. Again, it is very difficult to change
one’s unconscious behavior. It can be done, but it is usually the result of a very major change in one’s life.

The very outer layer is our Conscious Behavior (CB). This is the behavior that we want, or feel we have to,
exhibit as a conscious decision. It is most obviously affected by our work environment.

The difference between our unconscious behavior and our conscious behavior are the Behavioral Filters
(BF). The behavioral filters are things like our experience, skills, attitudes, knowledge, expectations, values,
and our physical and mental health. These, together with our environment, determine how we consciously
adjust our unconscious behavior.

It is possible to influence the behavioral filters, but you cannot enforce opposite values to the ones that
people naturally possess. Therefore, the key is to understand the unconscious behavior of the people in
your organization.

The role of behavioral analysis in organizational development is central to the three-part structure of any
development program:

1. Know what you want

2. Understand what you have

3. Plan to utilize what you have & develop what you need

To return to the question “Why is behavioral analysis central to the development of an organization and its
people?”

If we don’t understand what we have, how can we use it effectively or make it into what we need?
(adapted with permission from Extended DISC International)

For a detailed understanding of how Extended DISC Assessments can help your organisation feel free to
visit our website : www.extendeddisc.com/india or write in to us on mumbai@extendeddisc.com

A Scorecard based approach to Human Resources

‘You get what you measure’. Its an approach that the business operations part of companies have been
following for decades, but is only recently become predominant in Human Resources. What started out as
simply in-process measures for HR systems is evolving into direct indicators of business results and
employee engagement. A practical, business-linked, metrics-based approach to Human Capital
management is fast becoming the norm rather than the exception.

The purest form of this metric-based framework of performance assessment is the Balanced scorecard – it
started as a holistic approach to measuring business and organization performance, via a structured report
with a broader mix of measures i.e. Financial, Customer, Internal Business processes, and Learning/Growth.
The framework originated in the United states and was popularized by reputed authors like Kaplan and
Norton (their book ‘The Balanced Scorecard’ till today remains a popular read), and used in a large number
of US/European companies during the late 1980s and 90s. Today, the Balanced Scorecard has many
versions / interpretations across organizations, and is much more flexible to the varying needs across
industries. In that sense, no two organizations will have the exact same balanced scorecard, and even fewer
use it in its purest form.

Simply put, a scorecard approach is nothing more than having a dashboard of measures across the different
facets of a business, which are directly linked to the strategy of the company, and can be tracked and
renewed on a going basis. Therein lies the HR challenge, which is twofold: (1) Identifying the most critical
indicators (2) How to make the linkage come alive in the work of each and every individual in the
organization. HR practitioners today must be skilled in designing and facilitating a process which cascades
the scorecard-based approach, right from leadership to the newest hire, and ingrains it into the DNA of the
organization. Inherent in that is ‘we must practice what we preach’ – what is the right scorecard approach
within HR which can link back to the overall business strategy and goals of a company.

In my experience, we are moving away rapidly from ‘internal’ HR measures like ‘# of Training man-days, # of
people hired, Training budgets as a % of business budgets’ to more relevant ‘outcome-focused’ measures
like ‘Enrollment Productivity, Business-Critical skill gaps closed by training, Retention of top talent, Bench-
strength for critical positions, % improvement on Employee Engagement metrics’ etc. While exact choice of
metrics may differ across organizations, as a general principle, fewer and bigger measures are always
better! The scorecard then needs to be integrated into the Performance Management and review process for
the HR team – accountability must be clear for each metric on the scorecard, and performance reviewed
and rewarded vs the same. There is no bigger crime than creating a scorecard for ‘management’ purposes
but not linking it to the performance management process – in such cases, the scorecard will die a natural
death! Neither does the ‘one size fits all’ approach work – your HR teams scorecard MUST reflect your
business and organization strategies, so that the linkage to final results are crystal clear and visible.

Aligning HR Processes with Strategy and CEO's BSC

Dear Sonali, Good Observation and Suggestion. I suggest the process for this alignment as below: Critical
analysis of existing HR processes/sub-processes, their desired/expected output and to identify the potential
performance measures. Then analyse these measures to asses impact/ linkage to SMs(Strategic
Measures)/KPIs in CEOs BSC. By selecting the measures that have high impact on SMs/KPIs of CEOs BSC
the HR draft BSC shall be prepared. Again the HR Dept. has to check for the gaps in their BSC and identify
new processes/KPIs in their Dept. and prepare final HR Scorecard. This process will help in aligning existing
HR processes with present day Strategy and also in identifying new processes/activities to meet the present
strategy. Ajay Gupta

Overlaps with Operations scorecard

Dear Sonali, Thank you for sharing such fantastic and relevant insights and conceptually I think all of these
would resonate with many of us. Maybe it would help to outline HOW can one effectively make this a reality.
I mean a lot of these 'Outcome' measures are linked with the Line Operations - Enrollment producitvity
cannot happen if Line Managers do not become productive in their selection, Retention is not possible in
isolation of the Line Managers (infact they are the ones who cause retention issues), bench-strength and
Critical positions are also driven by operational needs and cost consideratrions. So in such cases of
overlaps how can one create an HR scroe card which is completely in control by HR and yet aligned and
linked, as you have rightly mentioned, to the business needs and business goals. Maybe you can elaborate
this point in your webinar tomorrow.Thanks

Dashboard measures across the different facets of a business, which are directly linked to the
strategy of the company
Dear Sonali, Thank you so much for your valuable message and knowledge sharing. Dashboard measures
across the different facets of a business, which are directly linked to the strategy of the company, this is
exactly true, Dashboard will helps to know where we stand and where we need to go and plan the objectives
and take the plan of Action (POA) then this will helpful to every one to grow in thier career curve. "
Commitment unlocks the doors of imagination, allows Vision and gives us the right stuff to turn our Dreams
in to Realty" We are following the same procedure in Six Sigma Quality approches on weekly/monthly/yearly
Dashboards. Thank you, Thirupal Neeraganti Six Sigma Quality Green Belt, The First American
Corporation(www.firstam.com) Hyderabad.

Score Card for Technicians

Dear Sonali, Thanks for you excellent presentation during the webinar on the captioned subject. In this
context, I understood that all 1900 employees, including technicians, of P & G are more or less covered by
score card in one form or other. It will be appreciated if you can share the salient features of score-card for
the technicians. Thanks & Regards, Debanjan

Enhancing Performance
Performance Management has its origin ever since the man started living competitively.Great performers
always outshone themselves and were appreciated and rewarded to keep them motivated and going. The
necessity to have a metric(s) arises due to a) lack of personal information about each individual b) absence
of supreme authority to decide c) fear of backlash in the event of wrong choice and d) accountability of the
whole process. Balance Score Card (BSC) is the latest entrant in this whole process which provides a tool
through which line managers can review the performance of the subordinates objectively and HR managers
can identify the areas needed to be improved upon and suitably organise trainings in consultation with LMs.
As regards the issue of drifting away from the time tested methodologies of enhancing performance and
concentrating on outcome focussed measures , there is no harm so far the basic principles of increasing
human capital are not compromised with and the management centric policy or ideologies are not practised.
The thought process on the issue raised is praise worthy and I whole heartedly complement Ms Sonali for
the same. An excellent effort to keep the issue burning..

HR Score card for deploying HR Strategy

HR score card is inevitable in today's business scenario.My approach with my experience for more than a
decade in score card and HR metrics is possible when there is long term as well as short term HR
strategy.A clear HR strategy which aligned to business to create the business results.Unlike balanced score
card perspectives like finance/customer/internal process/learning & growth. In HR score card typically these
perspectives will change in to HR deliverable s / HR Engagement /HR processes /HR competencies. Use S-
GOTMI methodology to build the score card which means Strategic Goal -Objectives-Targets-Measures-
Initiatives to achieve the results.

Some thoughts on performance management

Performance Management (PM), the term that is most referred to in the context of any discusion, debate
and dialogue around organizational development, talent management and people development. History
traces the origin of this particular term PM, back to 1970s when it was coined by Dr Aubrey C Daniels to
refer to the system of managing both behavious and results, the two critical elements of performance.
Performance which is the sum of behaviours and results is the outcome of effective management

PM is still the core element of talent management as it has the single most significant role to play in driving
employee behaviours and hence results. PM as a process has evolved significantly over the past 3 decades
to now become a well understood and articulated science. The principlesof PM are derived from the science
of behaviour analysis( psychology of learning) and are deeply related to organizational culture and
leadershipstyles.

But the term PM in the current day context is often thought to refer to structures and processes of Human
Resources Management (compensation, appraisal, selection, retention, competencies, and so on). While
these are important elements of a well-designed workplace, but most often they are only systems,
processes, and procedures designed in isolation without knowledge of behavior and the organizational
culture required to drive the desired behaviour. They often suppress or overlook the ways in which
motivational factors can be built into the workplace to produce accelerating performance for the right
objectives, done the right way, for the right reason.

And organizations more often than not seem to opt for the cookie cutter approach - implement the Industry
best practices in PM for managing and driving their teams. This is being done in isolation taking little or no
cognizance of the fact that the science of driving the desired behaviour and results is predominantly a
function of the culture and maturity in the organization, the role and the profile of the individual that we are
talking about motivating

Having moved to the HR function from a strong operational background, I have had the benefit of not being
strongly influenced by formal HR frameworks, methodologies and practice of PM. And this non-HR approach
has often led me to deliberate on some fundamental issues about PM. I would like to put forth these issues
to the forum and invite professions from the Industry to share their perspectives on the same - am sure we
will all benefit from this exchange of perspectives

1. Should the performance management be linked to bonuses at all?

2. Can there really be standard KRAs for a role irrespective of the profile of the person playing a role ?

3. Why does PM have to be a formal annual process - shouldn't managers do this every day as part of
managing their teams

4. Are managers always skilled to hold performance related conversations with their teams

5. Are Bell curves and forced normalization still relevant in today's business models ? Are there
alternatives ?

6. What role do HR and Line play in the PM process ? Is there complete clarity on the same for both

And I would like to add that I am personally a great believer in the power of a process that is strong in
concept and equally strong in implementation and adoption but at the same time agile enough to stay tuned
to the purpose and objective. So these views of mine do not in anyway take away the need for an effective
PM process for organizations to attract, develop and retain talent. They, however, do take us back to the
basics.

HRM and organizational performance

A study conducted by Huselid (1995) provided evidence that the use of high performance work practices
(such as comprehensive recruitment and selection procedures, incentive compensation, performance
management systems, extensive employee involvement and training) resulted in better organisational
performance. Lengnick-Hall and Lengnick-Hall (1988, p. 468) concluded that “organisations which engage in
a strategy formulations process that systematically and reciprocally considers human resources and
competitive strategy will perform better over the long-term”. Pfeffer (1998) found the need for consistency
among seven HR practices to achieve effective performance with these seven HR practices being: (1)
employment security; (2) selective hiring; (3) self-managed teams; (4) high compensation contingent on
performance; (5) training; (6) reduction of status differentials; and (7) sharing information. Katou and
Budhwar (2006, p. 1241), in their research based on a sample of 178 organisations in the Greek
manufacturing sector, concluded that “managers should recognise that changes in employee skills, attitudes
and behaviour that are caused by HRM policies precede changes in organisational performance”.
Selvarajan et al. (2007) investigated the role of human capital philosophy in promoting firm innovativeness
and performance by analysing data from 246 companies in Ireland. Selvarajan et al. (2007, p. 1467)
concluded that “[. . .] the results of this study provide reasonably strong support for the role played by firms’
employment-oriented human capital philosophies in promoting firm innovativeness and performance”. In his
exploratory study, Liao (2006, p. 716) concluded that “empirical results from 93 firms reveal that the
appropriate use of HRM control systems was a contributing factor to firm performance”. From a survey of
124 Turkish firms, Kaya (2006, p. 2084) found that: HRM practices (which emphasise behaviour and
attitude, extensive training on job skills, written instructions and procedures, team activities, training in
multiple functions, incentive to meet objectives, communication of strategy, interaction facilities and
feedback on performance) are important for enhancing firm performance. Such literature provides evidence
of a link between HRM and organisational performance

Performance Management : A Continuous Process

Thanks Prameela for raising fundamental issues related to Performance Management. My viewpoint is
specifically against issue raised in point no. 3. I strongly believe that performance management is a
continuous informal process, that needs to be done day-in and day-out, to ensure incremental improvements
in performance of individual & hence that of the team, on sustained basis. This needs to be complemented
by formal process, carried out annually/semi-annually, whereby the results of such formal process have
bearing on compensation and career progression of the individual concerned.

KRAs for talents and assessing behavioral competencies

Let me try nos. 2 and 4.. #2: Standard KRAs for a role: or for that matter standard role-design for every
individual - if we are talking of talent management it is clear that we're looking to establish unique individual
capabilities in a person and that needs to translated into the role-design and KRAs for a given period.
Successful team-sport teams coaches and captains do this regularly. You plan with who you get, don't you?
even when you have the luxury of getting whomever you want! #4 Are managers suitably capable to hold
perf-related conversations with their teams or that matter assess performance - since performance is seen
as behaviours and results ...maybe on the result allocation side in many cases they would be.. but i'll put my
money on inadequate skills in holding behaviour or quality-of-efforts related conversations..that's from 24 yrs
+ experience in diverse roles in an MNC. There have to be concerted efforts by HR to ensure objectivity and
transparency in behaviour observation, record, evaluation and developmental-focus, a process essentially
carried out by line managers while appraising their reportees A vibrant continuously validating behavioural-
competency based approach is a must

Fairness and Transparency in the process - who is accountable for this

Thanks Agna, Deebanjan and Nikhil, for your thoughts and inputs on the subject Fairness and Transparency
in the process - my team and I deal with this subject during and after every appraisal process While we wrok
to bring more transparency to the process, the larger issue is about fairness in the process Who is
accountable for fairness - the line manager or HR ? and that takes me to a more fundamental question - who
is the first HR manager of a team ? I am a strong believer of the fact that the most effective people manager
is the line manager - Who knows the team the best in terms of the skills, capabilities and competencies of
each of the team member ? - Who knows the team members' aspirations, goals and expectations ? - Who
knows what motivates and drives performance from each member ? Isn't it the line manager who works with
the team rather than the HR manager who has a peripheral view of the team mostly from the various HR
data points collated from the various HR practices So then, isn't it the line manager who can bring fairness
to the process by sharing with the team the criteria used for relative ranking and banding - this will help
teams to better understand who their performance is assessed beyond the KRA linked resulrs and hence
will help them work towards meeting both the explicit and implicit expectations from them in their roles Rgds

Some Thoughts on Performance Management

You have raised some interesting questions in your thread. Having been a professional HR person for the
last 28 years, and having worked in several different industry segments - manufacturing (automobile and
non automobile sectors), Financial Services, ITS, Retail etc, I have come to believe that Performance
Management System is a very conviniently used flexible strategy to reward those whom you want to, and to
show the stick to those whom you want out. This is all the more unclear and uncertain in many of the Family
Owned businesses where the bulk of the rewards are still decided by the "halo" effect at the top
management. In my own organisation, I have been trying to change the concept and introduce some
element of certainty and metrics into the process. While, the acceptence is there, the implement leaves a lot
to be desired. Consequently, schedules are not adhered to and at times, we complete the "appraisal
process" over a three - four month period. This I dare say, is becuase of the culture that has been in the
organisation over the past couple of decades, and also for the want of a person with a strong assertive role
at the top, who would want to drive the entire process. The point I am trying to make out of this is that while,
HR is looked at as people related function, it is hardly ever given the freedom to practice what it should be
doing. Let me reiterate once again, I am limiting my observations to my current organisation and am not
making a general statement. Dr T V Rao who had also visited us, informed the senior members that
Performance Appraisal is not the job of HR - it is the Line Function that has to ensure performance. Again,
performance management is not a one year once a time excercise. Every day is a performance
management activity - your daily meetings, your weekly / monthly / quarterly / half yearly meetings etc are all
activities on which you would ultimately base your performance of the department / organisation. In fact,
there have been to my knowledge several persons, who say do away with the KRA at lower levels. Why to
want KRA to tell us if a staff is doing is daily / routine jobs well? Is that really a Key Result Area? At the
middle management and onwards, where decisions can affect the organisation top and bottom line, defining
the KRA's becomes a fruitful excercise, provided your metrics are clearly defined. We have at times an
obsession to "benchmark" with others without considering the elements that make "that" organisation better
than "Ours". Several factors like "a distinctly different energy", "a distinctly different talent management
system", " a distinctly different strategic thought process" etc are elements that differentiates between
organisations. While, benchmarks are useful in setting the standards, the ability to edge up to these
standards depends on the organisation's seriousness and ability / capabilty to emulate and finally, on the
hunger of the management. Finally, any process that cannot be measured will not have any value. There is
a frequent feeling that "shared services" cannot be quantified. Nothing can be further from truth as Dave
Ulrich and others have shown us in their seminal works. While, in the past, it has been convinient to push
papers and look important, the forthcoming years are going to be a bigger challenge to HR professionals for
several reasons, including and mainly building a credibility to the oft repeated statement of "HR being a
strategic / business partner"

How much of the talent management process should we allow technology to take over and automate
?
Venkateshwaran has raised a question which is very often brought up in HR discussions - isn't performance
management a continuous process where employees are getting constant and regular feedback from their
managers ? My view is that while continuous feedback is good to enable employees to constantly work on
the feedback, a formal discussion has its own merits. It allows both the manager and the employee to
discuss the expectations from the role, the high and lows in performance of the employee during the period
of assessment period and also gives the employee an opportunity to share with the manager, his/her own
expectations from the manager in terms of guidance, support and inputs This formal conversation also
allows both of them to align their expecatations. Having such formal conversations atleast once a quarter is
a good practice as it gives the employee ample time and opportunity to work on any feedback With
technology driving HR and organizations becoming more and more global and virtual, we see many
organizations moving to high levels of automation of the entire performance appraisal process My personal
view is that while leveraging technolgy is required to manage the process for distributed and virtual teams,
we should not allow technology to replace the essential face to face interaction between the manager and
the employee. So while the rest of the process (KRA setting, self appraisal, normalisation and banding etc)
can be automated , the critical part of the entire process which is the feedback giving and taking and
discussion on career aspirations and expectations should not be automated This brings us to another
debate on how much of the talent management process should we allow technology to take over and
automate ?

Performance Management: More Than Meets The Eye

After reading the thought provoking views of members of this community, some thoughts have emerged in
my mind as well and I would like to share these thoughts with the esteemed members of this community.
Performance management, as I see it, should be a way of organizational life. It’s a not a question of “either
or” rather it’s a must. Thankfully, corporate organizations have realized it and therefore are making earnest
attempts, in their own manner, to manage performance for optimal success. The problem, as Mr
Venkateshwaran has pointed out, arises in the manner of implementation which is often subject to all kinds
of errors, biases, and distortions. Now, as long as these distortions are not deliberate one doesn’t mind.
Let’s accept the fact that despite all those matrices, scorecards, and other empirical measures, some
amount of human error remains in the process. However, trouble starts when the process of performance
management is either carried out casually or selectively to reward a few. Many a times, it is observed that
management has good intentions towards evolving and executing a performance management system.
However, because of poor implementation this intention does not translate into reality and fails to create the
desired impact. Sometimes, it may even boomerang and prove to be counterproductive. This implies that
those who are responsible for implementing PMS have a dual responsibility. One of designing and
implementing the PMS in an objective manner and the other of ensuring that it is perceived as a fair,
transparent, objective and useful practice to those for whom it has been designed and implemented. And
this would take us to more fundamental and complicated process of organizational culture and practices.
Another issue that could be worth considering is the fact that more often than not performance management
becomes synonymous with talent management. And loosely it degenerates into management of star
performers. Thus, the message that one gets is only stars perform and rest of the employees are mere
spectators. This fallacious notion must give way to the fact that every human working in the organization is
truly a resource, an asset, and in the ultimate run everyone’s performance counts. Therefore, when we talk
about managing performance we do not only talk about managing a handful of star performers’ performance
but of all the employees who constitute the organization. But therein lies the bigger problem, largely because
of the diverse workforce that a typical organization usually possesses today. There are widespread
differences in people’s attitudes, aptitudes, abilities, potential, and performance. This makes it difficult to
have an all encompassing PM strategy. It means that performance management as a philosophy could be
one but when it comes to operationalizing it we have to have different strategies. All said and done, despite
the confusions, controversies, problems and challenges, I sincerely feel that performance management is
the ultimate way of creating and developing a healthy organization which offers a win-win situation for all.
There is tremendous scope of experimentations and innovations in this field to make the system more robust
and fruitful. Rituraj Kumar

Lets reach out to "Performance Enhancement"

Hi Friends, With due respect to your views, i would like to put forth a different approach towards PMS. I
believe as one visualizes, perceives things, so do we like them to be... when we say "Manage" it means that
something is either not in order or needs to be aligned towards a expected outcome. How about put things in
this way, we have recruited the guys & gals with all the due care and assessment, they have the talent /
skills so they are ofcourse an assesst, they have the potential which we guessed during our interactions,
they joined us because they aspire to be successful .... now why manage performance ? why not to create
such a environment which can unleash their talent... now that is what managers are for, ins't it ? My idea to
create a facilitative environment wherein people understand that the only way forward is thru organisational
growth and my role is to put forth my best efforts towards it... each day when i wind up for home, i must
answer one sincere question... What has been my contribution today ? will this make my organisation better
poised against the challenges it is facing or may have to face ? We always say this is a knowledge age, if it
is true then, i feel we must now change the approach from PMS to Performance Enhancement System.

Do organizations of tomorrow need a separate HR function ??

Hi, Am just back from being on a Panel for the HR series that the Times Group is hosting in different cities
and we discussed some very interesting issues related to the subject of finding and developing the right 'fit'
talent for organizations I thought I should share some discussion threads that came up during this session
as these related to what Malik put forth. Moving away from performance management to enhancement We
were discussing the need for line managers to be better equipped and trained to handle talent management
- organizations need to invest in HR for Line - help them identify the development needs of their teams and
find ways to motivate, engage and inspire their teams rather than leave the job to HR to do One participant
came up to me post the session and remaked that he sees HR coming a full cycle - he has been in the
industry for a long time and was talking about the times when companies did not have HR departments and
the entire job of managing teams was that of the line managers. They only had personnel departments
which took care of salaries and associated benefits This got be thinking - Would the future organizations
need a separate HR department if Managers took over the function of people engagement, motivate,
mentoring, career planning and the functions of payroll and training were outsourced ?? A thought worth
debating indeed !

Do organizations of tomorrow need a separate HR function ??

YES!!! A thought Worth Debating Indeed!!!!!!!!!! This Posting reminds me my books which says all Line
Managers are HR Managers and they have to act as HR Manager so if every Line manager becomes a HR
manager then why we need a HR Department as a whole??/ If Every Line Manager Becomes a HR
manager, then who will guide the Line Manager, Who will Motivate the Line Manager, Who will see the
Career Planing of the Line Manager!! This arguments has a metaphor of a Story of Dog & Donkey!!! Where
in it gives that a person who is specialized in a area can effectively perform then the non-specialized Every
time the stone is targeted towards HR, why can't it be in case of Finance, Inspection, Inventory Management
Cell etc. When Line manger is little trained in these areas he can also perform these Functions Can't
He??? .

Do organizations of tomorrow need a separate HR function ??

Performance Management of any employees starts from the day one of his joining. An HR professional is a
person, who has the knowledge to facilitate the performance management process in a proper streamlined
manner. Line Managers are there are to bring business to the org. We need to accept the fact. Now whether
one uses KRAs, KPIs, Normalisation or dosen't use them that does not affect Line Managers, beacuse
measuring Performance is their function and not Performance Management. Counter offers still exist. What
would Performance Management do in that. How would one link performance rating with increments then. A
matter of fact that ...... there should be a good HR facilitator.... that's it.

Whats the Difference?

First ask the question, who is responsible for the output, efficiency ? HR or the shopfloor team? Can a
person who has never played cricket be the HR person for the cricket team? The next gen HR person will
have to be part of the cricket team, who can captain, bowl, bat, keep wickets etc as required! And also
mentor, train, solve problems. Visible or invisible, dipending on the situation. Let us come out of the frog in
the well syndrome! Ratnakar Misra, VP, Patna Chapter

Do organizations of tomorrow need a separate HR function ??

According to my experience in the HR field, HR is a neutral function without any vested interests or
obligations to any other function and in that capacity, it cannot be done away with. Although it is the function
of HR to train line managers to effectively manage capability and develop their teams in the best possible
manner, it can never absolve itself of being an involved party in the system, with goals and metrices of the
function it belongs to. HR on the other hand, has a very strong role to play in employee advocacy. Who will
give a strong neutral opinion when it comes to choosing between the employee and his supervisor, in case
of cases of partiality / harassment? Who will ensure the implementation of say the PM process is
transparent and fair? Who will ensure that the line managers are not only focusing on the star performers
but also on the people who do routine tasks to keep the daily Business-As-Usual going strong? To my mind,
the answer to all of these and many more questions on Change Management, Employee Advocacy,
Commitment and Capability Building is HR since HR professionals are trained to do these jobs well and are
experts in the filed - something that we can hope to inculcate into the line managers but at the end of the
day, it is not their top priority.

“Are Bell Curves and forced normalization still relevant in today’s business models? Are there
alternatives?”
Apropos the issue raised by Ms. Prameela at point No. 5 vide her posting dated 26.10.09 which reads “Are
Bell Curves and forced normalization still relevant in today’s business models? Are there alternatives?”, I
have some comments to proffer: 1. This is one of the most controversial issues concerning Performance
Management and most of the line executives detest this singular aspect of Performance Management
Process. Many even take this as HR’s ‘Bull Curve’ and not really Bell Curve. 2. Yet the fact remains that this
is a procedure which is followed by the best known companies the world over and is largely prevalent in
companies across the sectors, whether it is Manufacturing or IT or BPO/ITES or Finance. 3. The critics of
the Bell Curve criticize it as being unethical, speculative and unsuitable for small teams and as creating a
dysfunctional work environment. They mention that sometimes when it is strictly applied to individual
department or team or function, there is a good chance that the poor performer in a high performing group
would be rated low on performance, whereas he/she may be better than the best in another average
performing group. 4. However, my experience in Talent Management in the last 22 years, both in the Public
and Private sectors, suggests that there hasn’t been any better mechanism devised as yet for minimizing the
errors involved in Performance Measurement viz. measures of central tendency, halo effect and biases etc.
5. The objective of any Performance Management System is to create and foster a performance-oriented
and learning culture, provide a sense of direction and challenge to the employees and establish linkage
between Performance and Reward. Thus, the quintessence of a successful Performance Management
System is equitable individual differentiation based on scientific data of performance and the success of a
PMS pre-supposes a kind of “Normalization” to bring about “Relative Ranking” among different employees
within the same population. It may be reiterated that it is only through individual differentiation that an
Organisation can reward Top Performers, promote a culture based on achievement-orientation, and identify
it’s crucial talent and nurture them. 6. It has been empirically tested, observed, and found that in any normal
population, the distribution of performers in different brackets is such that its Statistical Chart automatically
forms a kind of a “ Bell Curve /Shape ”. Thus, there can not be a different methodology which can be used
as substitutive to bell curve. 7. However, Bell Curve per se, used in isolation, cannot bring out the objective
of scientific performance measurement. This needs to be implemented in synch with other tools like setting-
up of the objectives, periodic review, transparency of the system, empowerment and provisioning of
resources for fulfilling the objectives and a competency framework and competency mapping in the
organization, for bringing in scientific performance and potential appraisal. Paritosh Mishra
http://www.linkedin.com/in/paritoshmishra

Introducing... Tomorrow's HR function :-)

Hi friends ! As like any other professional, I have been always contemplating upon what would be the future
of my profession look like ? what role i would be expected to perform ? I sincerely believe that in near
furture, rather we can say it has already started... HR as a function will undergo a re-engineering process
and evolve as a Systems Integration & Development (SID) function. Our role would be to identify / visualize
opportunities for system integration and development so as to facilitate better organisational performance...
especially in terms of knowledge, skills and innovation base.... something inline with what has already
happened in IT & ITES industry. We would be basically doing R&D kind of activities on a BOT (Build,
Operate & Transfer) platform, most of the transactional operations would be taken care of by softwares or on
call service providers. Probably, future qualification of HR Professionals would be a PhD.

The Illusion of Pay for Performance

Is anyone out there who doesn't believe in rewarding employees for the work they do? But how many
advocates actually walk the talk? How many companies really differentiate reward levels on the basis of
individual performance? Unless you're on the verge of being fired, managers are reluctant to penalize
employees with low or no increases, and the differential between what a high performer receives and that
granted to an average employee is remarkably narrow. Why is this? Is it because managers want to be the
"good guy or because merit budgets tend to be so tight that managers can't afford to pay their high
performers while still granting average increases to everybody else?
Provide basis for Bell curve & Increment grid to line managers to support them while explaining
ratings to their subordinates
In order to create a pay for performance culture- companies have introduced a concept of variable pay/
performance bonus - % of which increases as a person moves up the ladder. At the time of annual
increment, HODs will rank his subordinate on the basis of KRA achievement and relative ranking will be
assigned keeping bell curve %s in mind. As HR managers, our responsibility to ensure that transparent
feedback is provided to an employee and is communicated that at the end of the day, pay is based on his
own performance & which is relative to his colleagues. Clear instructions as to Bell Curve & rationals should
be provided to line managers so as to support them while explaining the ratings to his subordinates. - Nilesh
Puri

Performance Management
The 2nd pay revision committee for PSUs has recommended implementation of a performance
management system in all PSUs. I wonder if any PSU has a working model which could be used by other
PSUs

Performance Management
I would be interested in todays world of seeing if there is any corelation between Individual Performance and
Organizational Performance. As an examle let us consider Citibank, General Motors and a hst of other
companies where Individual Performance has been of a very high order with best business parctices. Yet
the organizations have either become bankrupt or virtualy so. Makes you think doesnt it.

Compensations are startling

The recent news about planned hikes for Senior Management are startling. How does one judge
performances of senior management executives vs the performance of middle and lower level management
vs the organization performance?

Rewarding at right time & place is a reinforcement

Rewarding right employees for their performance at right time & place is an effective reinforcement. It not
only motivates to perform or perform better but establishes a culture of high performance across. In the
context of performance pay, many organizations do have differential reward levels. But as you rightly said,
the difference in the pays of high performer and average performer is not significant. Response to your
question, “Why is this (narrow difference)?” should because there are many factors to it. It can beϑ have to
be tricky discussed in a long debate. Still the answer can be put in one line that the disparity you have
questioned comes from the efforts management put to maintain parity in organization. Yes of course, to
protect the image of manager, budget/manpower cost etc.are also in the list of exhaustive factors that
contribute to the narrow difference in pay between high performer and average performer. So, it is always
advisable to educate the line people/project people about what goes into Rationalization/Bell curve. More
the awareness and transparency, lesser disagreement there would be. In this difficult web, we can see a
savior i.e., Reward & Recognition program. It has no link to pay but it certainly has a good scope to build a
culture of positive motivation and reinforce good performance, thus, leading to high level of engagement.
ROI of employee engagement initiatives is something worthwhile.

Contribution by Average Performer

I am a strong votary of not having an artificially large differential between merit increase in compensation of
high performer vis-a-vis that of average performer. This is because, as the tough recessionary times through
which all of us are passing now amply demonstate, the current survival of the Organization is critically
dependent on unglamorous, tedious slog-work largely performed by the loyal work-horses lumped as
average performer rather than fashionable, high profile assignments which are the preserve of the "here
today gone tomorrow" cadre of the high performer. Hence, average performer also needs consideration at
the time of compensation review.

Beware of Pay Gap

Merit pay increases do not address the growing compensation inequity between top performers or the
average performers when one was paid below their worth at the time of hire. If Employee A was hired at a
position’s minimum annual salary of $60,000 and Employee B at $66,000 and they both get a 5.3 percent
merit increase every year, the gross earning gap between the two will be $33,000 after five years and
$77,000 after 10 years. If Employee A is truly a top performer, it’s important to compensate them at or ahead
of the market if you want to hold on to them – even in an economic recession.Therfore the three essential
tactics which an organisation must always go with are : 1.Target the salary that is warranted by the
employee’s competency, performance, and potential. 2. Determine the gap between the current salary and
target pay. 3.Make adjustments in salary based on gap analysis and budget constraints. Ultimately special
attention is always to be given to the newer hires who are learning and growing professionally at a rapid
rate. It’s important to compensate them appropriately for their greater and greater contributions.

Rewarding employees for the work they do after actual assessment

PA is not only a tool to motivate to perform or perform better but it also establishes a culture of high
performance across. It clearly draws a line between a high performer and an average performer. PA sows d
seed of competition among employees but being an hr person one should ensure that this system is
transparent enough. Otherwise it can demoralize the person trying his hard that happen often bcoz of biased
behavior of managers.

Differently disabled people

KOLKATA: A few years ago, PepsiCo tried a unique experiment on its assembly line. The company put a
hearing-impaired person on a job that required visual inspection. They found this was actually a boon; with
no aural disturbance to hinder concentration, the employee’s performance was outstanding, compared with
his peers.

Nearly 300 differently-abled people are currently working across the company’s 13 plants. “We are looking
to fill managerial positions with such recruitments. As we scale up, we will undertake special audits, through
third-party organisations, to address issues regarding office design that limit the productivity of the
differently-abled,” says PepsiCo India executive director (HR) Pavan Bhatia.

PepsiCo’s experience is not unique to the private sector, which began hiring differently-abled people as a
CSR initiative some years ago. In a radical departure from a decade ago, when people with disabilities
comprised only 0.3% of large private firms’ workforce (according to a recent World Bank study), many of
them are now finding mainstream jobs.

For companies, it’s a plus in terms of finding a dedicated talent pool and getting an image boost. “At
companies like Mindtree , Infosys and Tata Group , some recruits have gone on to become business heads,
GMs or VPs, which also builds the employer’s brand,” says MaFoi Randstad director E Balaji.

He’s referring to people like Souman Lal, who is set to become a shift manager from his present job as
customer services assistant at an outlet of Costa Coffee in New Delhi — the first-ever hearing-and-speech
impaired shift manager at the coffee chain. "He fully deserves this because the commitment to work he has
shown, is unmatched," says Santhosh Unni, CEO of Costa Coffee. Lal adds, through sign language: "I want
to grow in this company and tell others like me that nothing is impossible." In fact, companies are offering
the differently-abled senior-level jobs mainly because, as Meenu Bhambhani of MphasiS puts it: “Team
leaders say their performance has been on par with that of other employees. They are also more
hardworking and dedicated than others.”

It’s the private sector that holds out some promise for people with disabilities since — despite a 3%
reservation — government jobs are not readily available. Of an estimated seven crore people in India with
disabilities, only one lakh have been gainfully recruited in the past five decades. Fortunately, private
companies are now making concrete plans for hiring them. Standard Chartered plans to have 200 people
with disabilities in its workforce, from the current 24, by 2013. “We are in talks with some organisations to
develop programmes for them,” says Madhvi Lall, regional head of HR (India and South Asia).

There is at least one KFC outlet in Hyderabad, Bangalore, Delhi, Chennai and Kolkata, in which about 70%
of the employees are hearing-and-speech impaired. "Operating profits at these stores are among the
highest in our system, and we hope to increase the number of special employees at outlets," says Niren
Chaudhary, India MD of Yum Restaurants which owns the KFC chain. Yum, which first hired hearing-and-
speech impaired people three years ago at its Kolkata KFC store, won the Helen Keller award (along with
Lemon Tree Hotels) this year for its initiative.

Employers and HR people say the main issue is because disabled people usually do not possess the
requisite educational qualifications. “Skill gap is an issue with the entire working population but yes, it is very
sharpened in the case of disabled people,” says Anubhuti Mittal, founder, Anubhuti–HR Consultants for the
Differently Abled. Experts say the solution lies in having an inclusive education system and vocational
training. “The differently abled are divorced from mainstream education because of our education system,”
says Mittal.

A disempowered workforce

Mumbai–based Hari Raghavan, 30, works for IBM India as a specialist in banking and financial services and
helps companies in these businesses find technology solutions to business problems. In some ways,
Raghavan is the typical software services employee. He works five days a week, up to eight hours a day;
most days, he is in by 10am and starts his day by using Google alerts to scan for news related to his areas
of interest. But Raghavan, who has an MBA from Mumbai's Narsee Monjee Institute of Management Studies
(NMIMS), is different in one way: he is visually impaired.

Companies such as IBM India Pvt. Ltd, Shell companies in India, HSBC India, E.I. DuPont India Pvt. Ltd,
Tata Steel Ltd, Hindustan Unilever Ltd and Dr Reddy's Laboratories Ltd started hiring disabled people as
part of their human resources policy of being an equal opportunity employer and increasing diversity in the
workplace. The trend has since grown to include several other companies.

Lal says the initiative is part of the company's corporate social responsibility programme, but that, “along the
way, we realized it made business sense. People with disability exhibit higher degree of focus and
concentration,” Lal adds.

Pepsico India Holdings Pvt. Ltd's executive director in charge of human resources, Pavan Bhatia, agrees.
“In 2006, we tested some hearing impaied people for bottle inspection and found very good results. They
were able to concentrate better and detect any foreign body in the bodied employees,” he says. Today,
across seven plants, the company employs 150 disabled people and it is looking to increase the number by
another 100 in 2008.
Sound business sense.

HR managers say there are several benefits to hiring disabled people. They cite higher retention rate and
greater value in certain roles. “Most often differently abled employees are more loyal to an organization,”
says Bhatia.

Diversity, say companies is also good for the workplace because it increases productivity and creativity,
brings in new skills and a new approach to solving problems. “To bring in innovation and greater customer
understanding, it's important to have a diverse workforce,” says Melita George, who is designated India
diversity, people with disabilities leader, IBM India & Asia Pacific. “Also, a diverse and inclusive workforce
completes your image as an employer of choice,” adds George.

Technology makes it easier for organizations to employ disabled people and for such people to contribute
their best to the company. IBM, for instance, developed a Braille printer in 1975. It also has a talking
typewriter and computers with a talking display terminal.

The company has a special needs systems group that develops technologies that assist people with
disabilities. The group recently developed the Home Page Reader tool, a selfvoicing web browser. Cisco
Systems has Cisco Unity voice messaging system that offers adjustable playback speed for messages and
adjustable response times for people who need more time to respond to system prompts.

For people who have difficulty pressing keys, Cisco offers a communications system that can be operated
through voice commands.

Still, companies, hiring disabled people need to invest in making their workplace accessible, and train and
sensitize other employees. It's worth the effort and money. “Companies which don't see the long–term
returns on this investment are losing out on a good resource pool,” says Bhatia.

Training and sensitization is critical since the awareness level of normally abled people on disabilities is low.
“Most of us don't know how to deal with differently abled,” says Pamela Bhagai, head education and ability,
Confederation of Indian Industry. “We either are patronizing or just ignorant.”

Companies hiring disabled people usually use professional agencies to hire such people, and also to help
them understand what else they need to do.

Pepsico took the help of Ali Yavar Jung National Institute for the Hearing Handicapped, an autonomous
organization under the ministry of social justice and empowerment that deals with various aspects of
rehabilitation of hearing handicapped, and Anubhuti–HR Consultants for the Differently Abled, a human
resource solutions firm that specializes in finding jobs for the disabled. Yum sought the services of not–for–
profit organization, Silence. And IBM works with non governmental organizations that helps it recruit
disabled people.

Employers and HR people say the main issue is because disabled people usually do not possess the
requisite educational qualifications. “Skill gap is an issue with the entire working population but yes, it is very
sharpened in the case of disabled people,” says Anubhuti Mittal, founder, Anubhuti–HR Consultants for the
Differently Abled. Experts say the solution lies in having an inclusive education system and vocational
training. “The differently abled are divorced from mainstream education because of our education system,”
says Mittal.

Companies may be forced to play a part in helping change the status quo as they face a talent crunch and
an ageing workforce, all at once.

Mittal who has placed around 120 disabled people thus far in 2007, is now looking to expand her focus to
women and senior citizens and says that she will be happy if, five years from now, there is no need to place
a specialist consultant to place or hire disabled people because companies realize what they are missing out
on.

“It's not the disability but the environment, which is disenabling,” says Raghavan.

Recruiting a deaf workforce

This has always been the most difficult part for Lakra. Recruitment companies, job websites and HR
stalwarts are of no use for him. Lakra started the outfit by scouring every place he was told he would find
deaf people in Mumbai, from street corners to NGOs and following leads given by people in the know-how.
After Lakra got his initial set of people, the later recruits approached him on their own and thus started the
young man’s unusual tryst with social entrepreneurship.

After meeting people, Lakra conducts a round of interviews with his prospective employees. It’s important for
Lakra, as soon as he is handed over a resume, to do a thorough background check on the candidate’s
family background and the places he has worked at before. “The employee’s background should be good
and also his past employers should have a good opinion about him. It’s very important for me in this
profession,” said Lakra. Once the background is checked into, an interview follows. Here Lakra gives good
attention to the candidate’s appearance and confidence his personality exudes. It’s important for Mirakle
Courier employees to feel good and automatically like looking good for the job. A check is made whether the
prospective employee likes to display a neat and clean appearance. Once the candidate passes this stage,
he is recruited. The same goes for the female deaf employees who work in the office. Many come from
troubled backgrounds and this company has come like a whiff of fresh air for them, as many have earlier
been known to forcibly take up jobs at artificial jewellery-making and other such small units.

When PaGaLGuY.com spoke to Lakra, two of his employees had left the company all of a sudden. For both,
their families did not want them to work as courier boys. They would rather have them sit at home or choose
softer career options like making candles. For Lakra, this is the biggest challenge. “Not only the public at
large but even with families of deaf people, the urge is to sympathize with the disability. Families prefer that
the deaf sit at home rather than work. The fear of putting them in society is major,” said Lakra.

A workday, Key Result Areas

Punctuality, speed and concentration on work are some of the prime attributes Lakra expects from his staff.
“They have to report on time to work and that means they would report to their destinations too on time,”
said Lakra. Speed plays a big factor for the courier company and it is because of the speed proposition that
the company has bagged lucrative bulk orders from corporate clients, including a recent one from Vodafone
which is keeping the little company on its toes right from 10 am to 6.30 pm at one stretch. While the men
have to work in top speed on the field, the women have to keep up with the pace at the office while sorting
the packages. The company delivers packages between Churchgate to Borivali on the western corridor,
CST (VT) to Mulund on the central corridor and CST (VT) to Mankhurd on the Harbour Line (all suburban
local railway lines in Mumbai). For nearby areas such as Nariman Point, CST (VT) and Churchgate, the
Mirakle boys tread on foot. While for suburban areas, the train is the travel mode.

Like many courier companies which make their mark in specific types of packages, Mirakle Couriers hopes
to be the best at ferrying fragile packages. Keeping in mind the nature of its employees and that closely-knit
nature of the setup, Lakra thinks that they will be best suited to transport packages which require extra care.

Training

Training is an ongoing process at Mirakle Couriers and not restricted to annual programmes like at other
companies. Since Lakra believes that his company is not a charity and has to compete with some of the
more known companies in the courier business, one has to be on the ball at all times. Training for proper
body language, using the right walking shoes, coming back with delivery reports, wearing clean clothes is an
everyday matter with the company. Keeping nails short and fingers clean is also an important must with the
company. After all it is the fingers and nails of a courier boy that one notices first when a delivery is made or
when he hands you over a pen to sign on the delivery report. The courier boys are also trained to close and
open lifts fully since they are unable to hear lift chimes and may spend precious minutes just waiting for a lift
to start. Since competition is tough, speed is also an issue that the company works very hard to keep up
with.

For Lakra, it is daily habit to make sure that his staff look presentable and are clean in their appearance.
Delivery reports are checked everyday and any discrepancy is dealt with immediately. Earlier, the company
used to have daily meetings but since they took up precious time, they were done away with and work starts
as immediately as when the boys walk in at 9.30 am.

Increments

How does Lakra recognise a good employee from a yet-to-learn type? “We have parameters for them to
function with. Speed, delivery reports, number of packages delivered in a time-frame are some of the
parameters on which they are checked,” said Lakra. Increments are doled out accordingly. Mirakle Couriers
pays the minimum wages. Lakra has a proper conversation (in sign language) with his employees when he
thinks they need to perk up in any sphere. In the courier business, even one wrong move can mean a client
switching sides forever. Hence it is a daily task to keep the machinery oiled and working at all times.

Stress factors

One would think that such a systematic setup would leave Lakra with hardly any stress, but that’s a far cry.
The competitive environment in which his company functions and his urge to make companies and people to
realise the potential competence of hearing-disabled people is what keeps Lakra thinking deep at nights,
hiring new staff being his first concern. Since inception, word-of-mouth has helped. But societal pressures
and over-protective families make hiring difficult from time to time. The company also has to strive hard to
make sure its courier boys are treated like any other and that on the field, their disability goes unnoticed.
The idea is for them to provide such high level of service that the clients do not even realise that their courier
boy is deaf (this is something that the reporter in this story can vouch for, since she spent a few hours with
one of the courier boys and at no point did any of the clients suspect the disability or was there any kind of
wrangle because of it).

Common interview questions

• Why have you applied to Citi?

• What attracts you to Citi?
• What do you know about our business/the financial services industry?
• What qualities/skills do you have which make you suitable?
• Describe your ideal position within our company.
• What are your future goals?
• Who else have you applied to and why?
• What degree classification/GPA are you expecting?
• Why did you choose to study at ________ university/college/business school?
• What have you learned at university/college/business school which you can bring to this position?
• Tell me about your involvement in _________ (e.g. student society, sports team).
• Can you give me an example of working in a team?
• Please tell me about a time when you were under intense pressure.
• Give me an example of a time when you handled a major crisis or problem.
• Give me an example of where you demonstrated leadership.
• What are your strengths/weaknesses?
• What did you gain from your previous work experience/internship(s)?
• What do you do in your spare time?
• Do you have any questions to ask me?

HRD Practices in Bank:

I Staff Meetings

• Staff Meeting aims at group synergy, team building, open culture, family feeling and talent
recognition which individually and cumulatively benefit the organizations.

• Goals/Targets set for the unit/Bank is discussed in the monthly Staff Meetings conducted at all
branches/units and action plan is drawn in achieving them.

• The forum is being effectively utilized for harmonious functioning of all the branches and
administrative units through greater involvement and collective contribution of all staff members.
II Brain Storming Sessions

• This is a technique for generating ideas and suggestions on topics of relevance and also to provide
alternate solutions to problems by simulative thinking and imaginative power of cross section of
employees.

• Corporate Topics are selected for each quarter and BSS are conducted in administrative offices/
braches on the topic during every quarter.

• Worthy implement able suggestions emanated are circulated for necessary action.

III Study Circle

• Concept of Study Circle aims at self development of employees by kindling the desire to
acquire/update knowledge, information and experience.

• Guest lectures/ Power Point Presentation / Group Discussions, etc are arranged on topics of
general interest by inviting experts in the field.

• Study Circle Meeting are conducted once in two months in administrative offices and once in a
quarter in braches

IV Quality Circles

• It is a time tested tool of Total Quality Management (TQM) which promotes team spirit, cohesive
quality work culture, commitment and involvement of employees.

CHALLENGES FACED BY THE BANKS:

 1. The real challenge of this sector is the “Indian companies”, how to transform into global
corporations without losing the positive values and culture that they have developed.
2. As most part of the jobs in this industry is monotonous/repetitive and routine, the HRD Department
has to empower, engage and energies employees to create effectiveness & efficiency through
motivation organizational structures, systems & procedures are facilitators of these, and there is a
need to focus greater attention on these aspects by the industry.
3. However, the emergence of a core and peripheral workforce in many organization has presented
new challenges for HR managers public & private sector organizations are fast becoming diverse
communities for core workers, flexibly employed casual and part-time workers, consultants,
contractors & business partners.
4. Certain rigidities have also developed in HRD within this banking system itself because this
industry is largely in the public sector.

SUGGESTIONS:

Following suggestions are very essential to adhere for effective Banking Administration:

1. HR functions to be linked to corporate goals.

2. Shift from Industrial relations manager to Business manager or Commercial manager.
3. Team work is another important and essential soft skill that is necessary in this industry.
4. The HR Professionals have to introduce &improve the adaptability of their structure that will be able
to absorb, draw and retain the best.
5. As people are primary asset, it is essential not only to invest in them, but also to ensure that the
supporting elements for this asset are such that it can provide the maximum value on a sustainable
basis.
6. HRD is to be regularly reviewed against business outcomes as part of strategic and operational
planning.
7. To overcome the public sector’s hierarchical structure, which gives preference to seniority over
performance, is not the best environment to attract the best talent from among the young.

RECOMMENDATIONS

1. It is worthwhile to consider broad-basing the courses conducted in these institutions among other
higher –level educational institutions, so that specializations in the area of banking and financial
services becomes an option in higher education curricular.
2. There is a need to adopt global best practices in financial sector regulation and supervision and
adapt them to the domestic environment. This largely depends on the functioning and policies of
public institutions, such as the RBI as it is increasingly subject to public discussion and debate.
3. This calls for greater transparency more effective communication, and a high degree of
professionalism in the bank’s staff, are the need of the hour.
4. Continuous up gradations of human resources management strategies with a view to enhancing
the level of knowledge, sharpening skills are and also to important the necessary and work culture
must be installed.
5. There is a pressing need to develop work practices which encourage efficiency in this banking
sector.
6. Incentive structures need to be conceived, supported by appropriate training and motivations,
which aligns the employee’s goals and orientations with the core competencies and strategic
advantages of the institution
7. This service sector has to explore the feasibility of entering into collaborative arrangements with
universities and other institutions in India and abroad to identify and provide specialized training in
the financial services industry with an ongoing flow of emerging training packages.
8. Information technology is an area where human resources development is critical fortunately,
Indian professionals are world leaders in this area and spirit of co –operation and partnership
between them in banking industries will result in a strong and modern financial system comparable
to the best in the world.
9. This committee recommended a system of recruitment from open market, including lateral
induction of experts.

Conclusion:
In a nutshell, it is felt that, the changing environment, the forces of globalization and liberalization and the
advances in information and communication technology have major HR implications for the RBI as well.
Financial products are becoming increasingly complex and diverse, while the markets in which they trade
get progressively deregulated. It also possesses both opportunities & threats particularly for this public
sector banks.

HRD in the banking sector PRACTICES NEED for the effective administration
Posted on April 17, 2010 by

should be the primary coverage of the bank, in order for proper integration of human resource management
strategies with business strategies. It should work faster unified team and create commitment to improve the
efficiency of its human capital. More than the operational capabilities are now calling for banks that these
“soft skills” to attend to the needs and requirements of the customers at the counter. Banks must understand
that the capital-and technology-replicable than the main pillars of the banking system, but not human capital,
which are regarded as a valuable resource for the attainment of competitive advantage must. The long-term
vision for India’s banking system may be sound from a national to a global scale to transform to present far-
fetched. To the industry to the heights of international excellence requires a combination of new
technologies and better processes of credit and risk assessment, treasury management, product
diversification, internal control, external regulations and human resources on the most. The main challenges
faced by banks in our country, the role of financial instruments in various stages of the business cycle, the
emerging compulsions of the new prudential norms and benchmarking the Indian financial system against
international standards and best practices gained. There is a need for the introduction of new technologies,
building skills and intellectual capital formation. The most important need in this service industry is of course
the HRD. During the early phase of development banking in India after independence, opportunities for
employment were the educated man-power relatively limited. This sector was the preferred employer for the
educated people in the country in addition to public services. In recent years this position has changed
dramatically. Some have also developed rigidities in HRD within the banking system as the system of the
public sector. The hierarchical structure of the preference to seniority over performance, and it is not the
best environment for attracting the best talent from the ranks of young people. How well the challenges are
addressed and mainly on the extent to which the banks depend on their primary assets i. e., HR use in the
context of the changing economic environment for business. Many literature surveys show that a paradigm
shift taking place in the role of the HR function in these organizations. There is a real danger that the
function is outsourced, even in most companies. The danger comes with the following changes: The line
manger treat increasingly relevant even to the questions. The government is really serious about
privatization and that leads to a state-protected system to an environment where it is about market forces
and large companies with significant brand equity and also follow very different HR strategies and practices
are presented. Technology is the elimination of paper routine activities. Virtual organizations are to follow.
HRD Practices in Bank: I aim Staff Meetings Staff Meeting-group synergy, team building, open culture,
family feeling and talent recognition, individually and cumulatively for the benefit of the organizations. Goals /
Targets for the unit / bank is in the monthly staff meetings in all branches / units and the Action Plan is to
achieve them are discussed drawn out. The forum is effective for a harmonious functioning of all branches
and administrative units through greater involvement and use collective participation of all employees. Brain
Storming Sessions II This is a technique for generating ideas and suggestions on topics of relevance and
also to alternative solutions to problems which by means of simulative thinking and imaginative power of the
cross-section of employees. Corporate issues are selected for each quarter and BSS conducted in the
offices / Braches on the subject in every quarter. Worthy to implement proposals have emerged, brought the
necessary steps in circulation. III Study Circle concept of self-Study Circle is aimed at development of
employees by kindling the desire to acquire / update knowledge, information and experiences. Guest
lectures / Power Point Presentation / group discussion, etc are arranged on topics of general interest by
inviting experts in the field. Study Circle meetings are conducted once in two months in the offices and once
a quarter in Braches IV Quality Circles to foster a time tested tool of Total Quality Management (TQM), team
spirit, cohesion culture of quality work, commitment and participation of workers , is. Challenges of the
banks, the real challenge in this sector is the “Indian company”, as in global enterprises, without turning to
the positive values and culture they have developed. Since the bulk of the jobs in this industry is
monotonous / repetitive and routine, the HRD department to strengthen participation, create energy and staff
to the effectiveness and efficiency through motivation organizational structures, systems and procedures are
mediators of these, and there is the need for greater attention to these aspects focus by the industry.
However, the emergence of a central and peripheral workers in many companies has created new
challenges for HR managers presented public & private institutions are quick to different communities for
core workers, flexible, and used occasional part-time workers, consultants, contractors and business
partners. Some have also developed rigidities in HRD within the banking system itself, because this industry
is largely in the public sector. SUGGESTIONS: Following suggestions are very important to hold on for the
effective administration banking: human resource functions are tied to business objectives. Relocation of the
industrial relations manager to Business Manager or Commercial Manager. Teamwork is an important and
essential soft skill that is necessary in this industry. The HR professionals have to introduce and improve the
adaptability of their structure, which will be able to absorb, draw and retain the best. Since people are the
most important asset, it is important to not only invest in them, but also to ensure that the main elements of
that asset is that they will provide the maximum value on a sustainable basis. HRD is regularly against the
business results as part of the strategic and operational planning are reviewed. To overcome the public
sector hierarchical structure that gives priority to seniority over performance, is not the best environment to
attract the best talent from among the young. RECOMMENDATIONS It is worthwhile to consider the broad-
based courses in these institutions including higher-level educational institutions carried out so that
specializations in the field of banking and financial services is an option in higher education curriculum. It is
necessary to adopt global best practices in financial sector regulation and supervision and their adaptation
to the home environment. This depends largely on the functioning and policies of public institutions such as
the RBI, as is increasingly the subject of public discussion and debate. This calls for greater transparency,
more effective communication and a high degree of professionalism among the employees of the bank, the
need of the hour. Continuous up gradation of human resources management strategies in order to improve
the protection of knowledge, sharpen skills and also important that the necessary work and culture must be
installed. There is an urgent need to develop the work practices to promote efficiency in the banking sector.
Incentive structures designed to be supported by appropriate training and motivation, the employee’s
objectives and orientations in the core competencies and strategic advantages for the establishment of this
service sector to explore the feasibility of entering into partnerships with universities and other institutions,
aimed India and abroad to identify and provide specialized training in the financial services industry with a
continuous flow of future training packages. Information technology is one area where the development of
human resources crucial Fortunately, Indian professionals worldwide leader in the field and the spirit of
cooperation and partnership between them is in the banking industry in a strong and modern financial result
comparable to the best in the world. This recommended a system of recruitment by open market, including
lateral induction of experts. Conclusion: In a nutshell it is assumed that the changing environment, the forces
of globalization and liberalization and progress in information and communication technology major
implications for HR RBI were good. Financial products are increasingly complex and diverse, while the
markets in which they trade are deregulated gradually. In addition, she holds both opportunities and risks for
this particular public banks.

What Does a Human Resources Manager, Generalist, or Director Do?

Human Resources Generalists, Managers, and Directors, depending on the size of the organization, may
have overlapping responsibilities. In larger organizations, the Human Resources Generalist, the Manager,
and the Director have clearly defined, separated roles in HR management with progressively more authority
and responsibility in the hands of the Manager, the Director, and ultimately, the Vice President who may
lead several departments including administration.

HR directors, and occasionally HR managers, may head up several different departments that are each led
by functional or specialized HR staff such as the training manager, the compensation manager, or the
recruiting manager.

Human Resources staff members are advocates for both the company and the people who work in the
company. Consequently, a good HR professional performs a constant balancing act to meet both needs
successfully.

The Changing Human Resources Role

The role of the HR professional is changing. In the past, HR managers were often viewed as the
systematizing, policing arm of executive management. Their role was more closely aligned with personnel
and administration functions that were viewed by the organization as paperwork.

When you consider that the initial HR function, in many companies, comes out of the administration or
finance department because hiring employees, paying employees, and dealing with benefits were the
organization's first HR needs, this is not surprising.
In this role, the HR professional served executive agendas well, but was frequently viewed as a road block
by much of the rest of the organization. While some need for this role occasionally remains — you wouldn’t
want every manager putting his own spin on a sexual harassment policy, as an example — much of the HR
role is transforming itself.

New HR Role
The role of the HR manager must parallel the needs of his or her changing organization. Successful
organizations are becoming more adaptable, resilient, quick to change direction, and customer-centered.

Within this environment, the HR professional, who is considered necessary by line managers, is a strategic
partner, an employee sponsor or advocate and a change mentor. At the same time, especially the HR
Generalist, still has responsibility for employee benefits administration, often payroll, and employee
paperwork, especially in the absence of an HR Assistant.

Depending on the size of the organization, the HR manager has responsibility for all of the functions that
deal with the needs and activities of the organization's people including these areas of responsibility.

Strategic Human Resources: Avoiding Circular Conversations

We’ve been talking about making Human Resources strategic for decades, but organizational readiness,
resistance to change, and complicated and expensive technology issues continue to get in the way.

When you are at a conference, there are moments when you truly relate to a speaker. You understand
exactly what the person is saying, almost as if they were using your organization as a model. The topic may
be strategic human resources, general business strategy, the impact that technology can have in the
workplace, or how efficiencies can drive more money to the bottom line. You, as a sitting HR professional,
have a larger challenge in front of you following the conference; choosing your moment to bring these
strategic human resources thoughts forward in your company.

I know how you feel. You’ve been through this more than once. You start a conversation with the "C" people
(COO / CEO / CFO) upon returning from a conference, or you’ve been asked to "clarify" your request for a
budget increase to cover HR expenses. What you get is the chance to focus on the two big Rs: Recruitment
and Retention. If you’re lucky, you may even get to talk about, dare I say it? Succession Planning.

Then as you walk back into your office, reality smacks you in the face as if you had forgotten to open the
door when you turned the corner. You realize you were given lip service - again. The reality is - nothing has
changed. Bummer.

Now, what can you really do to make a strategic human resources difference? How about making a plan?
Maybe even issuing a challenge to yourself? Now you are truly committed to making the strategic process
move forward, rather than in circles. Let's use a technology solution as an example.

Strategic Human Resources: The Hurdles

• Hurdle One: WIIFE (What’s In It For Everyone). You attended the training session, got the
materials, and did a walk through on the presentation. Your COO is still thinking, "Yea, but what
does this have to do with me and my people. Just get out there and recruit the talent I need."
• Hurdle Two: A simple and affordable technology solution is critical to managing the employment
life cycle. You need to demonstrate how technology facilitates the "transactional" side of the
business so you can implement the "developmental side." This is the work that creates value
because it contributes to the corporate bottom line.

The package – the what – is the retention tool. The process is the how and directly impacts
retention (just ask your Generation X, Y and Z people).

• Hurdle Three: Communicate the solution in terms executives understand – dollars and cents. Let’s
start by showing some turnover costs:
 Sample Turnover Costs

Employee Salary: $7/hr.

HR Salary: $35,000

Training Manager Salary:$10.00 per hour

Days to 100% Trained: 90 days

Total Turnover Cost: $6,440

More Sample Turnover Costs

Employee Salary: $75,000

HR Salary: $50,000

Training Manager Salary:$50,000

Days to 100% Trained: 90 days

Total Turnover Cost: $27,290

Currently, I am working with a unique hospital in a rural community. They employ about 300 people
and admit to an annual 10% turnover rate. So let’s run some conservative turnover numbers to
create a simple example:

10% Turnover Scenario for One Month

100 nurses, turning 10 nurses at $30,000 annually - $136,250

5 Kitchen/Custodial Staff - $32,200

3 Mid-level Managers - $46,815

1 Director - $27,290

1 Executive - $34,925

Total Turnover Cost - $277,480

These numbers are based on filling positions within 30 days with 15 days of training. (Quit
laughing, we have to start somewhere.) Here is the calculator if you want to use bigger numbers. If
I put in big numbers to start, you would not keep reading and neither would your executives.

So now that we have identified the hurdles and the data, let’s identify the solutions.

Strategic Human Resources: The Solutions

• Solution One: Prepare typed notes and handouts only as backup to the hard data listed above.
Numbers, charts, and “beans,” are the WOW factors that show impact to the bottom line – and the
bottom line affects everyone.
 • Solution Two: Identify your technology partner. Few providers offer a single source solution, but
they’re out there. All-in-one, integrated technology gives you the tools to facilitate every aspect of
the process and gives employees self-service access to information (freeing you to work on the
package).

As examples, to select better people, you can screen out those that don’t fit and those who will not
stay. You can communicate with the employees to address concerns before they become
problems. When people leave, you can identify trends and adjust internal systems, aiding in
retention and productivity.

• Solution Three: Talk the language and let the numbers help you prove your case. Even if your
timing is off, the facts will speak for themselves.

Three hurdles. Three solutions. Now you have the basis for a real strategic and forward-moving
conversation. This conversation will not be based on enthusiasm or simply reporting on what you learned at
a conference. This conversation will be based on hard data that affects all aspects of the organization,
including bonuses, raises and compensation packages. These issues affect everyone, especially those you
want to keep (including ourselves).

Set your goals, do the research and formulate your strategy. Use your prospective service provider as a
partner to keep the process moving forward. Being strategic requires bottom-line thinking. Transforming the
role of HR as a strategic partner means communicating your potential and focusing on one objective –
increased profitability. Reaching this common goal is unifying and optimizes the total work experience for
everyone.

The Indian retail industry is accelerating rapidly. The rising consumerism and increased disposable
income have propelled the growth of Indian retail sector at a rate of 30 per cent annually. In addition,
according to a McKinsey report, with the rise of Indian Consumer Market, retail industry in India is estimated
to grow four times by 2025.

The above statistics highlight the fact that retail industry in India is going to witness a challenging task of
managing its HR practices.

Since retail industry is highly manpower oriented, its HR practices require deep analysis. HR means
managing the employees and includes all the management decisions and practices that directly affects or
influence the people working for the organisation. Moreover, the emergence of international retail players in
India has also driven the need for a better HR strategy in place.

Sharing his views about the challenges of HR in retail industry in India, Deepanshu Khurana, CEO, i360
says, “The attrition rate of retail industry is very high and the working culture of the industry is very stressful,
thus to overcome these challenges, organisations must incorporate innovative HR practices. For example,
monetary benefits should be given to the employees from time to time, motivating them continuously,
communicating them with encouraging words, will help them retain for longer period of time.”

Challenges of HR in Indian retail industry

Before figuring out the measures of improving HR practices in India, let us have a look at some of the
challenges in HR practices.

Unskilled manpower: The organised retailing is a massive man power oriented industry that recruits a large
pool of employees. However, there is a huge scarcity of skilled retail professionals. This can be attributed to
the fact that retail has never been considered as a prominent profession in India as there were very few
retail professional courses till few years back. Retail has always been considered to be a family business
which one generation passes on to another. However, retail has achieved the status of a profession and
some courses are now available for retail profession aspirants.

Stressful working culture: Retail being a very stressful profession very few people aspire to make a career
out of it. Khurana shares, “Retail industry has a stressful working environment; employees work on
weekends without any breaks, so employees must be given a weekly or monthly off to help the employees
rejuvenate.” Providing some facilities and benefits might attract some more people towards this profession.

Providing basic facilities: It is strange that most of the retailers do not get the basic needs right. Like the job
of a sales man is physically exhaustive and draining. The HR practices must take care of the basic needs of
such employees who are up on their feet from nine to six or more. Providing restrooms, proper canteen
service, recreation rooms to the staffs is a must. However, when a retailer ensures proper hygienic sanitary
facility for employees, help efficient employees commit to the organisation for long period of time. For
example, leading global retailer, Marks & Spencer when appoints a new supplier, it’s managers first check
the staff toilets and dining facilities.

Down top communication: Retail job involves 80 per cent of communication and 20 per cent of business.
Effective communication involves top-down, down top and lateral interaction among employees. However,
when an open communication is encouraged from lower level employees to the upper level, it motivates the
employees to share their insights too which at times can be quite helpful for organisational success. Since in
retail, floor managers who are in direct contact with the consumers can convey the experience and demands
of the consumers directly to the top level management without any dilution of the actual message.

Training and orientation: Training is one aspect of HR that differentiates a successful organisation from
others. Training in areas like problem solving, key skills development, and presentation, effective
communication are of prime importance to gain optimum performance from the employees in retail industry.
Giving proper training to the staff is the best investment in the retail business.

Grooming the staff: Appearance matters a lot. Well groomed professionals are always confident and
appealing to the consumers. Retailers are found to employ visual merchandise and store outlook but they
also must make sure that their sales staffs are presented well to the consumers. Properly ironed crease free
uniforms, clean shaves, right kind and right amount of deodorant, cheerful smiles are the few things about
which employees must be efficiently trained with.

Motivating and counseling: Employees when motivated and stimulated are bound to work beyond their
capacity. For example, Reliance Retail Ltd, believed that when employees are given a suitable environment
to work and are motivated in sync with, are found to deliver their best.

Customer oriented service: Another HR practice of retail industry is to have a customer oriented service.
Sharing his view on this Khurana says, “In retail industry when a customer walks in, he walks on par of the
brands, but once the customer walks into the outlet, then it’s the customer’s experience that matters.
Therefore, other then having a sales kind of an attitude, the employees should be motivated to have a
customer service attitude to help the customers have better experience.”

To conclude, these HR challenges when taken care of by the organisation are bound to make a difference to
the organisational success. Every retail organisation must have a HR manual that would include everything
from clarifying timings, personal care & grooming, appraisal system, and training and practices. Effective HR
practices when in place give that competitive edge required. Apart from these practices, retailers are
required to incorporate innovative HR approaches to help them stay ahead and stay functional.

HR & Legal Issues in IT

The legal department in an organization, perennially plays the Devil’s or Angel’s Advocate, as per
the nature of the case or issue. As such, legal in corporate is bestowed with the very difficult
responsibility of protecting companies from clients and vendors, employees from employers and
also at times safeguarding employee from employee. Even in a traditional organization, where
norms, rules, policies and guidelines are drawn, vetted and implemented, there is an enormous
range of responsibilities for the legal department. In an IT industry, even more so as the IT
employees’ work style, right from work timing to output and measure of performance is very
different.
Legal issues in IT industry are predominantly in the areas of information. Security of information,
copy right issues, warranty and indemnification are the chief aspects that need focus. While this
is in the legal perspective, the HR issues in IT industry, on the other hand, are many.

Resources need constant upskilling with respect to emerging technologies; communication skills
and technical skills seem to be mutually exclusive while sound communication is a must skill for
requirement gathering, project management and people development. Furthermore, IT
companies are bitten more than any other, by the attrition bug. Rain or shine, recession or boom,
IT industry is a high traffic zone for people movement. With so much uncertainty in the market,
HR and Legal join hands to plug or at least control the attrition by placing numerous checks and
balances in the company’s policies. While HR strives to retain people with various benefits and
facilities, Legal monitors employees with the aid of IT systems and also defines the Do’s and
Don’ts at the workplace and beyond with explicit policies and procedures.

Major study has gone into deciding the kind of benefits that HR provides for employees in IT
organizations. The regular benefits include: Provident Fund, Gratuity, Group Mediclaim Insurance
Scheme, Personal Accident Insurance Scheme, subsidized food and transportation, company
leased accommodation and such basic perquisites. In addition, IT companies provide interesting
amenities like:

• Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool
tables, chess tables and coffee bars. Companies also have well equipped gyms, personal
trainers and showers at facilities.
• Corporate Credit Card: The main purpose of the corporate credit card is enable the timely
and efficient payment of official expenses such as travel related expenses.
• Cellular Phone / Laptop: Normally provided on the basis of business needs. The
employee is responsible for the maintenance and safeguarding of the assets.
• Personal Health Care: Some IT majors provide facility for extensive health check-up. For
employees with above 40 years of age, the medical check-up can be done once a year.
• Loans: Employees can avail loans on three different occasions: Medical emergency,
personal needs like wedding expenses, and, for new recruits, interest free loans to assist
in initial settlement at the new location.
• Educational Benefits: Highly critical for IT companies for building the knowledge of their
employees. Reimbursements towards expenses incurred for tuition fee, examination fee,
and even purchase of books. Employees are expected to sign a minimum contract period
with the company in return of this perquisite.
• Performance based incentives: The parameters for calculation are process performance
i.e. speed, accuracy and productivity of each process. The Pay for Performance can be
as much as 22% of the salary.
• Flexi-time: Pretty much prevalent in IT companies, the objective of this policy is to provide
opportunity to employees to work with flexible work schedules based on project needs.
Flexible work schedules are initiated by employees and approved by management to
meet business commitments while supporting employee’s personal life needs.
• Flexible Salary Benefits: Helps employees plan a tax-effective compensation structure by
balancing the monthly net income, yearly benefits and income tax payable. Benefits
cover House Rent Allowance, Leave Travel Assistance, Medical Reimbursement, Special
Allowance and so on.
• Employee engagement: Work Life Balance being the key word to a successful
professional, IT companies are very aware of the pressure employees handle during
project delivery time. Cultural programs are organized in which all the employees are
given an opportunity to display their talents, for instance, in music, art, and dramatics.
Various sport events such as cricket, football, etc at intra company levels and also on
inter organization scale are conducted. Camaraderie, team spirit and expression of innate
skills come into play thereby rejuvenating the individual.
 • Employee Referral Scheme: In several companies employee referral scheme is
implemented to encourage employees to refer friends and relatives for employment in the
organization.

Apart from these benefits, paid days off, maternity/paternity leave, employee stock option plan
are also provided to help employees focus on work without worrying about personal issues.
When there are so many benefits associated with IT industry and so many privileges for the IT
employees why would they even look out for a change of job? With these benefits coupled with
fast track career growth, why is the attrition rate in IT industry consistently high? What prompts an
employee to leave? Why people leave an organization?
The obvious attraction would be salary increase; companies are known to vie with each other to
pay above market value to IT professionals. A contradictory theory, supported by surveys
conducted internationally, opines that quality of the organization and quality of job and tasks
matter to an individual more than pay and benefits. Some possible reasons for wanting to change
jobs would be:

• No growth opportunity/lack of promotion

• Higher education, specially overseas education
• Misguidance and empty promises by the company
• Policies and procedures not conducive
• No personal life
• Physical strains like commuting distance, uncomfortable work stations etc.
• Uneasy relationship with peers or managers

With so much of uncertainty in the market people are trying their best to stop or to at least have a
control on the attrition rate. The key skills that Human Resources professionals need to have to
work on people engagement, employee care and achieve low attrition rate are personal
credibility, sound knowledge of HR practices, strategic contribution, good understanding of the
company’s business and above all, adeptness in HR technology.

Assume that the HR team professes the skills required to handle the entire gamut of HR functions
successfully in the company, what best assessment than the HR audit would prove that it is
indeed true?

Human resource audits are conducted by professional setups on a regular basis; the HR audit
urges the organization’s strategic intent to make an indepth and objective assessment and
evaluation at its HR policies, procedures and practices. This type of comprehensive review of the
company’s current state can help to identify whether specific practice areas or processes are
enough, absolutely legal and very effective. The data obtained from this exercise can aid in
identifying gaps in HR practices, and these gaps can systematically attended to, with the
objective of minimizing lawsuits and blocking any perceived violations.

The legal areas also cover issues like poaching between companies and moonlighting by
employees, overseas work termed as onsite placements and many other areas which need total
compliance to laws and legalities. Blanket agreements may not be possible as issues and cases
that arise due to legal boundaries or the lack of it, may be very unique or specific in nature. But
basic norms are put in place and code of conduct is stressed upon with respect to HR and legal
practices. After all, whether it is the employee or the employer, both should be benefitted by the
company’s practices; neither should be the victim of the same practices that profess neutrality
and objectivity, with stress on HR perspective within legal boundaries.

A thoroughly regulated employee environment is essential in the competitive IT world so that

there is minimum ambiguity on the myriad of HR functions from hiring to exit management.
Employers spend time, effort and money to ensure there is not even a distant possibility of a legal
tangle involving the company and the competition or the company and the candidate. On the one
hand, policies on internet usage, software licence and Intellectual Property are evolved and
implemented with the seriousness that is certainly not inappropriate. The other side of this is that
companies are equally determined to ensure no employee is wronged or deprived. The whistle
blower policy that most companies are now adopting provide a platform to employees to openly
or anonymously record a misdeed/ill treatment/bias by a colleague, boss or even the
management.

Amongst all these dimensions, the web has emerged the winner. Information Technology has
helped HR people and Legal experts to network and share knowledge, expertise, insights and
experiences to deal with the triangular aspects of HR, IT and Legal. As domain and industry
experts post their learning on the World Wide Web, professionals access and benefit from the
high quality research as well as from the happenings and developments in the industry globally.

This, of course, does not take away from what one needs to do in crisis situations. What truly
becomes a HR or legal expert is to leverage on plain wisdom supported with balanced decision
making skills. And, be responsible as well as accountable for the actions and outcome.

STAY INTERVIEW

It’s a new trend to conduct Stay interview in order to avoid an Exit Interview in a business organization

. When job-hopping has become a common practice and when employee retention has become a critical
issue, every company wants to know about those factors that can keep an employee engaged and
committed, and stay interviews help the organisations in gathering these hard facts.

Stay Interview
What do you like about your work?
What would keep you here?
What makes for a great day at work?
Is there anything you would like to change about your job?
Do you feel supported in your career goals?
Do you feel we recognise you?
What kind of recognition do you like?
Stay interviews are becoming a trend and they are used to reinforce good HR practices within the company.
The concept is based on the ‘Hawthorne Effect’, which states that people who are given attention are a
motivated lot. The employee needs to be heard since they feel good about being heard.
Employers have tough time in order to retain their employees. Traditionally, organisations used to hold exit
interviews with employees who were resigning in order to get their perspective on the organisation and the
work culture, it was of not much help to both the employee and the employer.

Listening to the Employees

Exit Interview is aimed at asking employees at the time of quitting why they are leaving. By that time it’s late.
Stay interviews have been used all along but under different nomenclature - in the form of appraisals and
consulting sessions. It is an employee sensing exercise, to detect early warning signals, to know about
compensatory expectations so that the company can make a proactive correction at the right time before the
employee announces that he/she is leaving.
Exit interviews find out why employees leave, while stay interviews

focus on what makes employees stay with the company, and thereby an opportunity for the company to do
more of those things employees like most.
The objective and purpose of conducting stay interview is primarily to listen to the employees’ views,
aspirations
and comfort levels, to identify the areas of improvement and read the pulse that is to map the expectations
of employees. It is a “pull” strategy rather than “push”.

Conducting Stay Interview

A stay interview should aim at sensitivity listening, collecting feedback from employees, identifying the
strengths as well as areas of improvements, developing trust and confidence with the employees and
ensuring freedom of expression and problem sharing.
The concept of stay interviews is in-fact has an empowering approach. Stay interviews focus on what is
going right, rather than what went wrong. Stay Interviews can help in attracting and retaining the right talent.
The need of Stay Interview is felt when the corrective action taken after exit interview is not able to
contribute much on identifying the real cause of attrition. In some of the cases when the decision was
deferred by addressing the significant few reasons of quitting the job, the insignificant many tends to pile up
to backfire. Ther is a need for constant engagement

with employees. Stay interviews help making employees feel appreciated and motivated.
Contrary to exit interviews, stay interviews are conducted to understand the reasons why the employees
wish to continue working for the organisation.
Stay interviews should be conducted once in six months. However, this depends on the size of the
organization.
Stay interviews are more proactive, focus on the positive emotions of people who are enjoying their stay in
the company and are able to point to things that the company is doing and should do more of because they
are very happy about those things.
The huge challenge of retaining talent can be solved to a large extent by adopting the concept of stay
interviews and understanding the psyche and needs of the employees.