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AN INTRODUCTION TO DIFFERENTIATED LEARNING TOOLS

Participants in flexible learning programs have limitations on the nature of the time they can spend on learning. Typically they are employed fully or partially, pursuing higher studies or have other social and familial responsibilities. Availability of time is a great constraint to these students.

To aid the participants, we have developed four unique learning tools as below:

  • Bullet Notes  :   Helps in introducing  the important concepts in each unit

of                                                                                                           curriculum,  equip  the  student  during                                                                                                            preparation  of                                                                                                                               examinations  and

  • Case Studies :   Illustrate the concepts through real life experiences
  • Workbook   :   Helps absorption of learning through questions based on real life nuggets
  • PEP Notes :Sharing notes of practices and experiences in the Industry will help the student to rightly perceive and get inspired to learn concepts at the cutting edge application level.placementinterviews
Why are these needed?· Adults  learn  differently  from  B.  School  or  college  going
 
 students who spend long hours at campus.
 · Enhancing analytical skills through application related learning
 kits trigger experiential  learning
 · Availability of time is a challenge.
 · Career  success  increasingly depends  on continuous  learning
 and success

What· makes it relevant?

·

How· is it useful?

·

·

Where· does this lead to?

  • Easier to move ahead in the learning process.
  • Will facilitate the student to complete the program earlier than otherwise.Helpsstay motivated and connected.

When· is it useful?

·

Case Studies:

Human Resource

Management

  • The ICFAI Foundation for Higher Education (IFHE), Hyderabad, April, 2015. All rights reserved

No part of this publication may be reproduced, stored in a retrieval system, used in a spread sheet, or transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without prior permission in writing from The ICFAI Foundation for Higher Education (IFHE), Hyderabad.

Ref. No. CS – HRM – IFHE – 042015

For any clarification regarding this book, the students may please write to The ICFAI Foundation for Higher Education (IFHE), Hyderabad giving the above reference number of this book specifying chapter and page number.

While every possible care has been taken in type-setting and printing this book, The ICFAI Foundation for Higher Education (IFHE), Hyderabad welcomes suggestions from students for improvement in future editions.

ii

CONTENTS

1.Employee Relations @ Infosys5
2.Holacracy – Zappos Business Model  for Knowledge-based Economy7
3.Hyper Attention – A Performance Hurdle9
4.Outplacement Services for VRS Optees of Nokia10
5.Job Analysis at Narayana Health11
6.A Good Recruitment Policy – BGR‟s Case13
7.Selection through Academic Tie-Ups14
8.On Boarding – Search Model for Employee Potential16
9.Career Counselling at Accenture17
  1. KPMG‟s Performance Management Strategy: From Forced Distribution to
 Immediate Feedback19
11.Pratt & Whitney‟s Training Center at Hyderabad – A Growth Path21
12.Compensation Mechanism to Encourage Research and Development22
13.Lifestyle Management – The PepsiCo Way24
14.Army Veterans Grievance Handling Portal (AVGH) – Initiative to 
 Resolve Grievances at a Click of Button26
15.ARLI‟s Zero-tolerance Policy to  Address On-the-job Behavior28
16.Unite‟s Democratic Support for the Workers Cause in UK30
17.Role of Government in Maintaining  Industrial Relations – A Case of Bosch31
18.Google, Inc.: Providing Quality Work Life32
19.Role of Education in Successful Implementation  of Quality Circles33
20.Zions‟ Technique to Improve Employee Engagement35

iii

Introduction to the Case Study

Participants in ICFAI University Programs are eager to apply theory into practice. They realize that application orientation can enhance their learning and subsequent usage of management precepts and practices. Picking out the principle behind real world events is critical to this learning.

To fulfil this objective the institution has introduced the Case Study methodology as a learning tool. A one page case is developed for learning a concept/topic from an illustration of a real world occurrence. The case illustrates a situation pertinent to an individual/a company/an industry or an economy in relation to a concept or issue covered in the curriculum. The illustration is specific to the point being discussed.

The case depicts the knowledge which can be applied as illustrated in the practice of the real world. These experiences can be distilled to look at a core principle at play by the participant. While there could be multiple principles at play, the illustration of each case helps in its better understanding of the concept at a very fundamental level.

The learning outcomes expected are:

  1. Real world is illustrated and connected back to one concept/topic for better theoretical understanding.
  • Application based approach, which significantly enhances absorption and retention.
  • Exposure to specific business situations and developments improves perspective.

It may be used for Assessment.

iv

 1 Employee Relations @ Infosys
   
    

Infosys, an India-based global consulting and IT services firm was co-founded by Narayana Murthy, Nandan Nilekani and 5 other engineers in 1981. The company was headquartered at Bangalore, Karnataka. In 2014, Infosys clocked revenue of $ 500 billion. It employed more than 160, 000 employees in the same year and had a market capitalization of about $34 billion.

Vishal Sikka took over as the CEO of Infosys in 2014. Sikka steered the company‟s focus towards improving employee relations and employee engagement (Refer Chart 1).

Chart 1: Measures to Enhance Employee Relations

Revised Promotion s Policy to Accelerate

  • Comprised of representatives from
  • all the countries Infosys operated in. Improved diversity based on nationality, differently- abled and genderCreatedaGlobal Diversity Council

Set-up a rapid reaction team – The SWAT

team
üTracked employee feedback
ücontinuously
Took immediate action on the same
üComprised of 12 employees and was
üheaded by a business leader
Had representatives from diverse
 functions including Finance, HR, IT,
üetc.
Had resolved 11 issues in November
 and 10 issues in October 2014.
üExamples of Problems Resolved:
Extended the benefits of the 

„InfyGold+‟ program to familymembers allowing them to avail discounts across hotel bookings,

  • retail, etc.

Hassle-free extension of maternity leave by one month on valid medical grounds, etc.

“Sikka’s

Initiatives

to

Improve

Employee

Relations”

Prospectsü for Career Growth From 2014, employees were promoted on a quarterly basis instead

  • of a bi-annual basis.

Between April-September 2014,

19,000 „Infoscions‟ (Infosys employees) were promoted

Leadershipü Program for Infoscions Partnered with The Stanford

  • Graduate School of Business Planned to enroll 200 Infoscions into a one-year, part-time leadership
  • program in March 2015 Infoscions would participate in batches of 40 over a span of 3 years

Initiatives to Encourage Innovation

  • An employee engagement program
  • called „Murmurations‟ was introduced

Encouraged over 160,000 Infoscions to share innovative ideas directly with the top management

Adapted from: “Infosys CEO Vishal Sikka Okays 5000 Promotions to Improve Employee Morale”, Varun Sood, The Economic Times, August 8, 2014

The company had renewed its focus on employee relations to:

  • Improve its „employee utilization‟.
  • Improve „employee productivity‟. This was predicted to be the key factor for propellingInfosys back as an industry leader according to Angel Broking, a reputed stock-broking and wealth-management Indian company.
  • Reduce „employee attrition‟ and boost employee morale.

5

Experts had voiced the following concerns over the company‟s endeavors of improving employeerelations:

  1. Keeping the young employees engaged. The average age of Infoscions was 28 years. Keeping these young employees emotionally connected with the company would not be an easy task.
  • The „professional‟ attitude of the contemporary workforce had made talent retention achallenge. In June 2014, the company reported an attrition rate of 19.5%. Competitors, Cognizant and Wipro ITS witnessed 14.5% and 16.3% attrition rates respectively in Q4 2013.

„Employee Relations’ involves developing relationships between employees, their managers and the organization with the aim of improving the organizational performance. Under Sikka‟s leadership Infosys renewed its focus on improving the company‟s relationship with its employees. Infosys

introduced several initiatives in order to enhance employee engagement and thereby boost employee morale and lower employee attrition.

Discussion Questions:

  1. Discuss the measures taken by Infosys to improve its employee relations.

(Hints: Global Diversity Council-The „SWAT‟ team-leadership program for Infusions)

  • What reasons prompted the company to re-focus on its relationship with its employees?

(Hints: employee attrition – productivity – improve employee efficiency)

Course Reference: Concept-Employee Relations/ Unit-Introduction to HRM/ Subject-HRM Sources:

  1. `Sangeetha Chengappa, “Infosys to Connect More Deeply with Staff,” Business Line, December 5, 2014
  1. Varun Sood, “Infosys CEO Vishal Sikka Okays 5000 Promotions to Improve Employee Morale,” The

Economic Times, August 8, 2014

  1. “Indian IT Sees High Attrition as Market Rebounds,”www.cxotoday.com, February 27,2014

Other Keywords: Organizational Behavior

6

 2

Holacracy – Zappos Business Model

for Knowledge-based Economy

Zappos, an online retailer based in Las Vegas was founded by Nick Swinmurn in 1999.Zapposproduct list included shoes, handbags, eyewear, accessories and clothing. It was acquired by Amazon in November 2009 for $1.2 billion.

In 2014, Zappos planned to transform itself from traditional hierarchical structure to a more flat structure, a structure that had no specific job titles as employees played multiple roles, with transparency throughout the company and with increased personal accountability. In simple terms what the CEO Tony

Hsieh called it as “Holacracy”. Holacracy was derived from the word „holarchy‟, named by Arthur Koestler. According to him, holarchy was a hierarchy of self-regulating units/ holons.

In Holacracy, there were no leaders; leadership was represented by organizing different circles and distributing the power throughout, as under:

·

·     Distributed authority: Each person was a leader and follower of others

Processing  tensions: Set up clear processes for “governance” and                                                                                                                    “operations” to reduce

  • tensions
  • Governance Meetings: Gave clarity on accountability, authority and limitations

Operations and tactical meetings: Planned the next-actions and aimed for outcomes

Zappos planned to adopt Holacracy to empower its employees and to create transparency and accountability by overcoming the limitations (Refer Table 1).

Table 1: Benefits and limitations of Holacracy:

Benefits

  • Promoted teamwork
  • Provided flexible work structure with autonomy
  • Providedstress free environment
  • Encouragedemployee commitment with clarity of roles
  • Offeredfuturistic orientation
  • Developed psychological ownership

Limitations

When speedy and effective decisions were needed and seniors could handle them, decision making would be time-consuming and delayed, if

· delegated

When the supervisor had valuable local knowledge to make the decisions, delegation was not

  • necessary

When decision making involved more resources and efforts to

coordinate them, senior executives could make the decisions

Adapted by the author from the source: Nicolai J. Foss and Peter G. Klein, “Why Managers Still Matter”, MIT Sloan Management Review, September 16, 2014

Zappos adopted flatter operating structure in 2014. It was trying to empower all its 1,500 employees by organizing them in to 400 different circles that were playing multiple roles.

Many consumer-centric „organizations’ have replaced vertical functional departments that had tall hierarchies with flat and horizontal cross-functional „structures’ to reduce redundancy and enable

free flow of ideas and information. The employees of such organizations feel empowered leading to employee development. The exceptional performance of Zappos‟ employees led to a new business

model with flat structure – Holacracy.

7

Discussion Questions:

  1. Define Holacracy model of leadership.

(Hints: delegating authority – clarity on governance- focus on outcomes)

  • Why did Zappos plan to adopt Holacracy?

(Hints: autonomy-role clarity-effective decision making)

Course Reference: Concept- Organizational Structure and Human Resources /Unit- Organizational Structure andHRM/ Subject- Human Resource Management.

Sources:

  1. Nicolai J. Foss and Peter G. Klein, “Why Managers Still Matter”,MITSloan Management Review, September

16, 2014

  1. Lisa Wirthman, “Is Flat Better? Zappos Ditches Hchy To Improve Company Performance”, Forbes, January 7,

2014

  1. John Bunch, “Leadership in Holacracy”, Zapposinsights, January 13, 2014

Other Keywords: Organizational Behavior, Organization Development.

8

 3 Hyper Attention – A Performance Hurdle
   
    

In 2014, China was predicted to emerge as a consumption superpower overtaking Japan, with private consumption of 8% of the total world consumption. McKinsey reported that urbanization was also adding to the increase in Chinese consumption. The growth was anticipated to reach 27 trillion yuan by 2020. E-commerce market was also expected to reach $540 billion.

While China‟s consumer market was seen growing and firms were expected to flourish, managers andexecutives in Chinese subsidiaries felt that visits by the executives from headquarters (Europe/US) hampered their performance rather than adding value to business. 55 Interviews conducted on global branch managers of various industries producing products and services revealed the truth. The issues that

were believed· to have influenced the performance were:

Frequency of visits: Each visit consumed the subsidiary manager and staff‟s time in making preparations for the meeting such as planning schedules, preparation of agendas, business reviews. At times staff was forced to spend their weekends to make the visit

  • successful.

Extra workload: Executives from Headquarter disturbed the business flow by demanding

  • more information and reports to support their decisions, after the visit.

Failing to understand the Chinese market: Headquarter managers were perceived to

have understood the potential of Chinese market and had unrealistic expectations.

To add value to the subsidiary business and to build a constructive relationship between the managers of

Headquarters and subsidiaries, the study recommended certain guidelines (Refer Chart 1):

Chart 1: Guidelines recommended for Headquarters and Subsidiaries

Guidelines

Understand the local subsidiary business by

  • intHeadquartersractingwith customers and staff Act as entrepreneur (subsidiary) and
  • consultants (headquarter)

Spend qualitative time to understand the subsidiary manager‟s priorities

  • Postpone or discourage the visits
  • Say “no” to unrealistic goalsSubsidiaries Convert headquarter executives to advocate by focusing on the priority issues of subsidiary


Adapted by the author from the source: Cyril Bouquet et al, “The Perils of Attention From Headquarters”, MIT Sloan Management Review, November 5, 2014

Chinese customers being more aware of global outlook were expected to be the potential customers for consumer markets. The guidelines recommended by the study might help the firms that entered or planned to enter the Chinese market in understanding the priorities of subsidiary firms.

Global firms should adopt „polycentric approach’ to foster their growth in foreign market by allowing the subsidiaries to focus on local systems .Polycentric approach views the world as a differentiated marketplace where varying needs have to be catered to. They adopt customized strategies, products, policies, and systems.

Discussion Questions:

  1. Explain the implications of polycentric approach in performance management. (Hints: customization-relationship-quality time to prioritize)
  • List out the recommendations made by the study to build a constructive relationship between managers of headquarters and subsidiaries.

(Hints: limit the number of visits -realistic goals –prioritization)

Course Reference: Concept- Approaches to IHRM –Polycentric approach/ Unit- International Human ResourceManagement/ Subject- Human Resource Management.

Sources:

  1. Cyril Bouquet et al,”The Perils of Attention From Headquarters”, MIT Sloan Management Review,

November 5, 2014

  1. Mianyang and Shaghai, “Going it their way”, The Economist, January 25, 2014

Other Keywords: International Human Resource Management.

9

 4 Outplacement Services for VRS Optees of Nokia
   
    

Nokia, a one of the leading mobile phones manufacturer in India was forced to shut down its Chennai plant from November 1, 2014. Nokia had a market share of 80 percent but could not sustain in the market

with the emergence of smart phones from competitors like Samsung, Apple, Sony and Panasonic. Consequently, Nokia‟s global devices and services business were acquired by Microsoft for$7.2 billion

on April 25, 2014.

As the Sri Perumbudur plant was not taken over by Microsoft, Nokia suspended the operations at the plant from November 1, 2014. This left 6,700 employees jobless at the Chennai Nokia plant.

Trade unions and political parties tried their best to save the livelihood of workers but could not succeed. Finally, in April 2014, Nokia announced layoffs by offering VRS scheme. While 5,000 employees opted for it, the remaining employees were expected to opt later. This was perhaps the largest VRS ever offered in India.

Nokia   offered the following benefits to the employees who opted for VRS:
 ·Compensating 15 month salary (three months for each year of experience) for employees
 ·with a service of five years or more
 Compensating Rs.100,000 and two times the daily salary for the earned leaves surrendered,
  for employees with a service less than five years
In addition·to these benefits, it also planned to offer bridge initiatives to the employees by providing
 Banking consultancy services
 ·Expert‟s assistance in searching new employment avenues
 ·Training sessions at 40 locations in Tamil Nadu to develop the required skills for new areas
 ·and to educate them on 30 skill development modules
 Certificates for the skills gained
 ·Employment facilities by inviting potential employers
 ·Limited  grant  to  employees  with  more  than  six  years to  fulfil  their  entrepreneurial  or

academic ambitions

The benefits and bridge initiatives offered by Nokia helped the VRS optees in learning new skills required to suit the needs of potential employers invited by the company.

The services provided by the organizations in searching other employment opportunities for their

displaced employees and providing assistance to them in getting new jobs are called „outplacement services’. The Nokia‟s bridge initiative plan stands as an example for the outplacement services.

Discussion Questions:

  1. How does outplacement help displaced employees? (Hints: compensation-consultancy)
  • Explain the initiatives taken by Nokia to outplace its VRS optees.

(Hints: job search-training-employment)

Course Reference: Concept- Outplacement /Unit- Human Resource Planning /Subject- Human ResourceManagement.

Sources:

  1. BS Reporter, “Nokia staff urge Jaya to ensure job security”, Business Standard News, May 4, 2014
  2. TE Narasimhan&GireeshBabu,“5000 at Nokia Chennai unit opt for compensation exit route”, Business

Standard News, May 5, 2014

  1. Anna Isaac, “Nokia shuts down its India plant in Chennai, over 8000 workers lose job”, CNN-IBN Live,

November 1, 2014

Other Keywords: Recruitment, Training and Development.

10

 5 Job Analysis at Narayana Health
   
    

Narayana Health, one of the India‟s largest and World‟s most economical healthcare service providers was ranked 36th among the „World‟s 50 Most Innovative Companies‟ by Fast Company magazine in

2012. It emerged as a global industry model for a one-stop destination for all healthcare requirements. It had 26 hospitals across 16 cities in India with nearly 6,900 bed facility.

In knowledge economy, knowledge and skilled workers were seldom available. A research by McKinsey Global Institute also predicted that by 2020, the shortage of highly skilled workers could reach to 13% of demand. To reduce the gap, companies were redesigning their critical/skilled and proficient jobs by assigning some of the tasks to lower-skill people, internally or to external sources. Narayana Hrudayalaya identified the simple tasks involved in the process of surgery through job analysis (Refer chart 2) and assigned the simple tasks (Refer chart 1) to its junior surgeons and facilitated their surgeons to focus more on specialized tasks.

Chart 1: Narayana Hrudayalaya Cardiac Hospital’s Model

Adapted by the author from the source: Martin Dewhurst et al,” Redesigning Knowledge Work”, Harvard Business Review, January 2013

Chart 2: Process of redesigning high-end knowledge work:

Adapted by the author from the source: Martin Dewhurst et al,”Redesigning Knowledge Work”, Harvard Business Review, January 2013

Process redesigning as a part of job analysis at Narayana Hrudayalaya Cardiac Hospital saved the cost of outsourcing and helped junior surgeons to learn through practical work and also increased their job satisfaction.

11

‘Job analysis’ is the process of determining and recording all the relevant information about aspecific job, including the tasks involved, the knowledge and skill set required to perform the job effectively. Narayana Hrudayalaya model uses job analysis to select the simple and manageable tasks in a high-end knowledge work of senior surgeons and assigns the tasks to junior surgeons.

Discussion Questions:

  1. Define the process of conducting Job Analysis. (Hints: simplification-assignment-restructure)
  2. How did job analysis benefit Narayana Health?

(Hints: cost effective-practicality-increased employee morale)

Course Reference: Concept- Job Analysis /Unit- Job Analysis and Design/ Subject- Human Resource Management.

Sources:

  1. Martin Dewhurst et al, ”Redesigning Knowledge Work”, Harvard Business Review, January 2013
  1. Martin Dewhurst et al, Redesigning Knowledge Work”, The Hindu, January 16, 2013
  1. Narayana Health, Home Page, About us, NH OVERVIEW

Other Keywords: Organization Development.

12

 6 A Good Recruitment Policy – BGR’s Case
   
    

BGR Energy Systems Limited was initially named as GEA Energy System (India) limited when it was run as a joint venture between German based GEA Energie technik GmbH and the Promoter B.G.

Raghupathy in 1985. In 1993, the business was taken over by the family members of Raghupathy and in 2007 it was renamed as BGR Energy Systems Limited. BGR‟s business included two segments – supply

of Systems and Equipment and Turnkey Engineering project contracting.

Edwin B. Flippo, referred recruitment as “a process of searching for prospective employees and stimulating them to apply for jobs in the organization”. The organizational factors such as the reputation

of the organization, the culture of the organization, the channels and methods used for advertising the

vacancy influence the success or failure of a recruitment program. A good recruitment policy should be in accordance with the organization‟s objectives and policies and should conform to the government

policies on hiring and provide maximum employment security.

In 2014, BGR Energy Systems Limited posted a cautionary message in newspapers and its website

asking public to beware of the fake advertisements about job openings in the company.                                                                                                                                                  This initiative

was taken consequent upon some deceptive acts that occurred such as:

·

·     Agencies /persons claimed to be part of the HR team of the company

·     Deceived through email ids similar to that of the company email id

·     Fake advertisements and calls

Collected money in the form of security deposit, reference fees, etc. towards appointment

letters

The company disclosed its well-defined recruitment policy as a precautionary message and to curb the

fraud perpetrated by unscrupulous elements. Such type of cautionary message helped aspiring candidates
in·   Avoiding false mails and calls
 
 ·Saving time and money
 ·Providing a location for genuine recruitment advertisements/notifications

Helped the company to:

·

Get the right talent

·

A good „recruitment policy’ of an organization should be flexible and reflect the company‟s people-policies. The preventive steps taken by the BGR in posting its recruitment policy depicts the strong people-policies.

Discussion Questions:

  1. How is a firm‟s recruitment policy framed?

(Hints: deceptive actions – maintain reputation)

  • Why did BGR take the initiative of disclosing its recruitment policy?

(Hints: caution candidate –genuineness–talent acquisition)

Course Reference: Concept-Recruitment policy/Unit-Recruitment/Subject- Human Resource Management.

Sources:

  1. BGR Energy Systems Limited, Home Page, About Us
  1. BGR Energy Systems Limited, Home Page, Careers
  1. BGR Cautionary Advertisement, The Hindu, page 18, October 18, 2014

Other Keywords: – Recruitment, Training and Development.

13

 7 Selection through Academic Tie-Ups
   
    

ICICI Bank was founded in 1994 by ICICI Limited (a wholly-owned subsidiary). It used to offer only project finance up to 1990. From 1990 it started offering a range of products and services to different

financial services group. Its primary goal was to offer financial services to medium-term and long-term projects throughout India. As on March 31, 2014, the bank‟s profit after tax was Rs. 98.10 billion ($

1,637 million). It had 3,845 branches with 12,012 ATM centers throughout India.

In 2000, When ICICI planned to expand its retail business; it searched for the requisite talent. It could not find the right talent and introduced some training programmes to the existing employees. The program was found time consuming and affected the productivity of employees. ICICI then decided to develop an ecosystem for itself for the supply of professionals.

Further it approached Business Schools to introduce vocational education by adopting their syllabus in to the curriculum. As the approach failed, it planned to go for tie-ups with academic and training institutions. It tied up with different institutions for supply of different professionals. Its association with NIIT University met the staffing needs for middle managers, National Institute of Securities Markets for executives in treasury and investment functions, ITM group for sales officers and Manipal Global Education for probationary officers. These institutions offered different programs by designing their curriculum in tune with the requirements of ICICI Bank.

Chart 1: The selection process of candidates through such programs were:

Adapted by the author from the source: M Saraswathy, Banking jobs up for grabs, Business Standard News, March 13, 2014.

These programs not only helped ICICI Bank in reducing its attrition rate and training costs but also helped candidates in becoming successful professionals at ICICI Bank. These officers were also given opportunity to pursue further education. HDFC Bank, Syndicate Bank and many other public and private banks followed suit.

The selection process’ in an organization depends on the strategy and objectives of the organization,the tasks and responsibilities associated with the job, the qualification required, and characteristics required in an individual. ICICI Bank developed its own manpower supply system associating itself with different institutions to fill up the talent gap with the requisite qualification and skill sets.

14

Discussion Questions:

  1. Why were banks tying up with educational institutes to fill their talent gaps? (Hints: manpower planning – cover talent gaps)
  2. Explain the selection process adopted by ICICI Bank?

(Hints: invitation – selection – placement)

Course Reference: Concept- The Selection Process – Unit – Selection – Subject – Human Resource Management Sources:

  1. “Syndicate Bank Recruitment 2014 through Post Graduate Diploma in Banking”,I ndia Today, November 6,

2014.

  1. “Banking Sector May Create Up To 20 Lakh New Jobs”, The Hindu, Business Line, February 9, 2014.
  1. M Saraswathy, “Banking jobs up for grabs”, Business Standard, March 13, 2014.
  1. BeenaParmar, “5–7 lakh banking jobs in the offing”,Business Line, June 30, 2014.

Other Keywords: Recruitment, Training and Development

15

  • 8                                          On Boarding – Search Model for Employee Potential

Red Hat Corporation, a US based public company founded in 1993, offered software solutions in 5 key technology areas: cloud, middleware, operating platform, storage, and virtualization with a subscription model. In 2014, it had about 6,100 employees working around the globe at 80 offices in 35 countries, with headquarters located at Raleigh, North Carolina.

Companies observed onboarding process as an opportunity to create long term employee engagement and growth while employees observed it as a reflection of company‟s workplace culture. In the initial days of

employment, if people were not given special attention, they would feel disappointed. However, Red Hat explored onboarding process as a new model for identifying employee potential.

Onboarding·process of Red Hat:
 New hires were taken to the Raleigh headquarters for exhaustive multiple-day program
 ·Employees were asked to go through their culture practice – brand book (called as „Bible‟)
 ·Introduced to the program inductors
 ·Provided Red Hat uniform and red cap as a symbol of team building
 ·Engaged with employees and provided challenging opportunities

To retain the talented people selected through vigorous pursuit and to strengthen and add value to the recruitment policy, organizations should improvise their HR policies to make the onboarding experience a cherished moment for the employee. The precautions that needed to be taken to seek employee engagement as a part of successful onboarding included the following steps.

  1. Emphasize team building: Organize the process through teamwork and reiterate company’sobjectives
  1. Gave a personal touch: Assign a mentor to each new hire to help and suggest them inattaining the skills required for smooth transition
  1. Accentuate employer brand: Reflect the brand and factors of reputation in to onboardingto confirm their existence
  1. Permit to use personal brand: Encourage them to use social media to strengthen employerbrand
  • Ensure the process with check-ins: Ensure proper onboarding through feedback usingpersonal interactions, surveys and conversations with each mentor

Red Hat on boarding experience reflected the organization culture and helped in adding value to the company through long-term employee engagement and employee growth.

Organizational socializing, or ‘onboarding ’new employees in the right way at the time of their joining, yield good results. Red Hat moved a step ahead perceiving onboarding as a model to identify employee potential.

Discussion Questions:

  1. Explain the measures to be taken for successful onboarding.

(Hints: building teams- acquiring skills –collecting feedback through personal interactions)

  • Explain the onboarding process of Red Hat.

(Hints: introducing to organizational culture-inclusion in teams-allocating challenges)

Course Reference: Concept- Onboarding /Unit- Socialization/ Subject- Human Resource Management.

Sources:

  1. “The Onboarding Experience Matters To Your Future Employees”, www.forbes.com,Leadership,June 1, 2014
  1. Carly Guthrie, “Employee Onboarding at Startups Is Broken – Here‟s How to Fix It”, First Round.com
  1. REDHAT, About us, Company details

Other Keywords: Recruitment, Training and Development.

16

 9 Career Counselling at Accenture
   
    

Accenture, a leading international provider of management consulting, outsourcing and technology services was founded in 1989. Its revenue for the year ended August 31, 2014 was $30.0 billion. It had an employee strength of about 305,000 working in more than 200 cities located across 56 countries with Its headquarters situated at Dublin, Ireland.

Organizations were motivating their employees by helping them in building their career path and by identifying their competencies and providing them with the right opportunities. In 2014, a study conducted by Tower Watson on what employees expected from the companies and how companies perceived the employee needs, one of the HR expert of Accenture expressed the following initiatives taken by them to reduce the mismatch:

Initiatives taken by Accenture to develop employee career paths:
·Every employee was assigned with a career counselor and mentor
·Counselors  and employees met every quarter
·Counselor was either a superior or manager
·Employee‟s future plans were discussed in the sessions
·Counselors set individual development plan in tune with the individual‟s goals
·Employee was given an opportunity on acquiring new skills, whenever a job opportunity
·comes
Career  counsellors  played  an  important  role  at  Accenture  (Refer  chart  1)  to  develop

employee career paths.

Chart 1: Career counselor’s role at Accenture:

Career

Counselling at

Accenture

Adapted by the author from the source: http://careers.accenture.com/in-en/your-future/training-counseling/Pages/index.aspx

In 2012, Accenture was working hard to retain its talent through external tie ups. Several talent management initiatives were taken such as collaborating with XLRI to build HR talent, and with ISB to develop middle management and with IGNOU to develop the talent in BPO sector. Its focus was continuously on being a learning organization and as such it had focused on internal development.

In organizations, the supervisor counsels the employee through „career counseling’ regarding the available opportunities, the employee‟s aspirations, and their competencies and helps them in building

career planning program. The initiatives taken by Accenture management helped its employees in building their career plans by getting continuous guidance from the counselors assigned.

17

Discussion Questions:

  1. What do you understand by career counselling?

(Hints: competency mapping – employee perception -career building)

  • How is career planning done at Accenture?

(Hints: clarity on job specifications-continuous support-open feedback)

Course Reference: Concept- Career Counseling – Unit – Managing Careers/Subject – Human ResourceManagement

Sources:

  1. Chanpreet Khurana, “The Clarity Principle”, LiveMint, November 30, 2014
  1. Goutam Das, “Accenture Inida‟s HR head on its policies”, Business Today, February 14, 2012
  1. Accenture, Home Page, Your Future, Training and Career Counselling

Other Keywords:  Recruitment, Training and Development

18

   KPMG’s Performance Management Strategy: From
 10 
  Forced Distribution to Immediate Feedback
    
    

KPMG was formed in 1987, as a result of a merger between Peat Marwick International (PMI) and Klynveld Main Goerdeler (KMG), with its headquarters situated at Amstelveen, Netherlands. It started operating in India in 1993 and had its branches located in Ahmadabad, Bangalore, Chandigarh, Chennai, Delhi, Hyderabad, Kochi, Kolkata, Mumbai and Pune. It offered advisory services in the areas of risk management, financial and business, tax and regulatory, internal audit and corporate governance across nations. In 2014, its employee strength was 162,000 with a turnover of $24.82 billion.

In 2014, there was a growing competition for talent and plenty of opportunities were available for talented people in the market. As such, to protect its talent and recruit the best talent, KPMG had planned to revise its policies (Refer Chart 1) on employee engagement, performance management and recruitment strategies. It planned to launch the new policy from April 1, 2015 on a pilot basis. KPMG was following the conventional forced distribution performance appraisal system. The challenges that forced it to reframe its performance management policy were:

  • Categorizing employees on ranking system
  • Understanding and executing properly
  • Rating people on a scale of 5
  • Building  internal competition between employees
  • Focus on individual performance rather than team work
  • Hampering the performance culture

The revised policies were expected to benefit KPMG (Refer Chart 1):

Chart 1: KPMG’s modified Performance Management Strategy

  • Motivate employees to share their experiences on business and communities
  • Arrange inspirational and business leaders speech
  • Provide regular feedback
  • Giving high bonus for high performers
  • Clearly distinguishing theHigherPrupose


KPMG

  • Form small groups across the organization
  • Encourage team work
  • Eliminate internal competition
  • Adopt job rotation
  • Grow high performance culture
  • Promote value discussion on performanceConnect


Adapted by the author from the source: Rica Bhattacharyya “KPMG tweaks employee engagementprogrammes to retain, recruit the best”, ET Bureau, November 4, 2014

KPMG was experimenting with the new system to ascertain whether this would work well and to shield its talent and to fill the talent gaps.

KPMG faced challenges with the conventional performance appraisal system. The three commonly used methods of ranking are alternation, paired comparison, and „forced distribution’. Forced

distribution is used where there is large number of employees. In forced distribution method, employees are categorized as „Top‟, „Standard‟, and „Bottom‟ and are placed under a forced-

distribution curve. KPMG is experimenting to preserve and recruit the best talent by replacing forced distribution method of performance management through reformed strategies.

Discussion Questions:

  1. Why do organizations conduct performance appraisals?

(Hints: motivate – increase employee engagement- manage performance)

19

2.  In what ways is the new policy of performance appraisal expected to benefit KPMG?

(Hints: distinguishing high and low performers-eliminate internal competition-value addition)

Course Reference: Concept- Forced distribution – Unit – Performance Appraisal – Subject – Human ResourceManagement

Sources:

  1. Rica Bhattacharyya, “KPMG to move away from bell curve–based performance appraisal”, ET Bureau,

Economic Times, December 19, 2014.

  1. Rica Bhattacharyya, “KPMG tweaks employee engagement programmes to retain, recruit the best”, ET Bureau,

Economic Times, November 4, 2014.

  1. “How Cos like InMobi, KPMG, Godrej & others are redesigning appraisals”, ET Bureau, Economic Times,April 11, 2014.

Other Keywords: Business Environment and Law.

20

   Pratt & Whitney’s Training Center at Hyderabad –
 11 
  A Growth Path
    
    

Pratt & Whitney (P&W), the aerospace manufacturing subsidiary of United Technologies (an innovative company serving commercial aerospace, defense and airlines) was set up in 1925 by Frederick Brant Rentschler- a man who believed in integrity, product quality and shared vision as core principles and practices. The company had 31,500 employees working for about 11,000 customers in 180 countries across the world. Its total revenue in 2013 was $14.5 billion.

In 2014, around 300 aircrafts in India used P&W and International Aero Engines (a joint venture with major stake holding by P&W). Further GoAir and IndiGo ordered 72 and 150 A320 new planes and Air Costa ordered 150 E-2 jets that use P&W engines. During the same period, in a press release, the Managing Director of Pratt & Whitney said that India has largest growth potential in aviation market after US and China. He believed that the growth of annual passenger traffic from 50 million to 150-160 million in the last decade would reach 400 million and above in seven to eight years.

He also assumed that the expected growth can be met only with continuous supply of talent. To achieve the objective, Pratt & Whitney planned to set up a training center in Hyderabad at GMR International airport, its third centre after the US and China. The objective of setting the training center was to train the aircraft engineers and technicians in current and new engine models as well as to adapt to the technological changes. As part of training, aircraft engineers were offered class-room and on-job training to match the skill set required to perform their jobs and to improve effectiveness. They had to pass the examination to get the endorsement on their licence from the DGCA (Director General of Civil Aviation).

The benefits·of locating centre at Hyderabad were:
 Growth of aviation sector in the country
 ·Training center for engineers, technicians and instructors at home country
 ·Saving training costs for airlines
 ·Bridging the talent gap

Setting up a training center at Hyderabad could facilitate serving the clients at home country than sending them to locations in far off geographies for training purpose. People from Middle East and South Asia were also expected to participate in the training programme.

„Skill-based training’ helps employees to improve their job effectiveness and ability to adapt to the technological changes. Launch of Pratt & Whitney‟s training center at Hyderabad could help the

company enhance the skills of engineers, technicians and instructors thereby fostering the growth of aviation industry.

Discussion Questions:

  1. How does providing skill based training to aircraft engineers help the aviation industry? (Hints: development of industry-development of skills – reducing talent gap)
  • Why did Pratt & Whitney plan to open the training center at Hyderabad?

(Hints: location benefits – saving costs – supplying trained manpower)

Course Reference: Concept-Skill-based training/Unit-Employee Training and Management Development/Subject-Human Resource Management.

Sources:

  1. BS Reporter, “Pratt & Whitney setting up training centre in Hyderabad”, Business Standard News, October 16,

2014

  1. Aneesh Phadnis, “P & W to develop engine training centre at Hyderabad”, Business Standard News, March 17,

2014

  1. United Technologies, Our Company, Key Facts

Other Keywords: Recruitment, Training and Development, Organizational Development.

21

 12 Compensation Mechanism to Encourage Research and
  
  Development
    
    

Research and Development (R&D) plays a vital role in the development of a country. It helps country to prosper through innovations. The Government of India significantly invested in Research and Development by establishing universities, technological Institutions and research centers. However, the top spenders on Research and Development (R&D) were from private sector companies such as Ranbaxy

Laboratories, Dr Reddy‟s Laboratories, Tata Steel, Mahindra & Mahindra and Cadila. With full support from the government, the R&D sector was expected to grow at a CAGR (Compound Annual Growth Rate) of 14 percent i.e. $42 billion by 2020 as against $ 14.7 billion in 2012.

In 2014, India had about 100,000 research scholars. While encouraging young and talented boys and girls to pursue research was the need of the hour, the existing scholars were protesting for the revision of their

stipend  amounts.· The reasons for the protest were:

·     Lack of mechanism for regular evaluation of stipend

·     Absence of online fellowship disbursement mechanism

·     Leave travel allowance was not given for research scholars to visit home

·     Scholarship was inadequate to support the rising prices

·     Fellowship was not matching with fee hikes

Payment of stipend was irregular

In October 2014, The Union Minister of State for Science & Technology announced the hike in honorariums and also recommended instituting a mechanism (Refer Table 1) for regular evaluation of scholarships. But the hike had a mixed reaction from scientific community. Some academicians and research scholars recommended more reforms. The reforms needed were:

Table 1: Reforms recommended

Reforms

  • Gradual increase in stipend
  • Adequate shcolarship to support rising prices
  • Sanction of Medical coverage to research shcolars
  • Timely disbursement of stipend
  • Allocating funds for laboratory requirement Sanction of annual contingency for books

Adapted by the author from the source: Mehta Nikita, “Research stipends hiked by over 50%”, Livemint,

October 22, 2014 & Gandhi Divya, “Not Everyone is happy with hike in research fellowships”, The Hindu, October 21, 2014

It was opined by academicians that people need decent income to undertake research as a career. Hike in the fellowships announced by the Government of India was expected to attract more people with inclination for research.

‘Compensation administration’ is a system of compensating employees in a fair manner andmatching the expectation of the employees. Honorarium hike announced by the government matched some of the expectations of research scholars in meeting the increasing cost of living and improving quality of work life.

Discussion Questions:

  1. Explain the objectives of compensation administration.

(Hints: quality of life –attracting to pursue research – respects the profession)

  • What were the reforms required in the compensation offered by the government to research scholars? (Hints: matching rising prices-avoid delays in disbursement-sufficient funds for extra benefits)

22

Course Reference: Concept- Compensation administration /Unit- Compensation Management/ Subject- HumanResource Management.

Sources:

  1. Shounak Ghosal, “Stipend hike cheer for researchers”, The Times of India, October 23, 2014
  1. Nikita Mehta, “Research stipends hiked by over 50%”, Live mint, October 22, 2014
  1. Divya Gandhi, “Not Everyone is happy with hike in research fellowships”, The Hindu, October 21, 2014

Other Keywords: Recruitment, Training and Development.

23

 13 Lifestyle Management – The PepsiCo Way
   
    

PepsiCo Inc., a New York based company engaged in manufacturing, marketing and distribution of snack foods and beverages, was ranked second in “The World‟s Top 100 Food and Beverage Companies of 2013” with a food sales of $65,492 million, in the world. It was established through the merger of Pepsi–

Cola and Frito-Lay in 1965. In 2014, the company had about 300,000 people working worldwide.

PepsiCo adopted a global wellness strategy to keep its associates healthier. The company designed wellness programs for its associates and promoted healthy behaviour so that the associates could lead a quality life. It ensured the minimum employee benefits such as medical, disability, life insurance and retirement benefits to its employees across the globe.

A study conducted by RAND Corp. (a US based, not for profit organization involved in research and

analysis) in 2013 proved that companies offering such wellness programs were able to save disease management costs (Refer Chart 1). PepsiCo‟s wellness program for employees‟ lifestyle management (Refer Chart 1) was referred to as PepsiCo‟s Healthy Living wellness program. PepsiCo also gave

monetary rewards for undertaking wellness programs. It gave incentives of $50 on completing the online wellness program and $100 for phone-based program.

Chart 1: The activities involved and benefits accrued from PepsiCo’s Wellness Program:

Adapted by the author from the source :Japsen Bruce, “Healthy Lifestyle Adoption Push May Not Save Employers Money”, Forbes, January 6, 2014 &www.pepsico.com, Health and Safety, Benefits,

Workplace Wellness, Occupational Health & Safety

The RAND study revealed that the costs of motivating employees to adopt healthy living style were increasing and while wellness programs contributed to reduction in hospital admission for chronic illnesses, they could not significantly reduce healthcare costs and improve savings.

‘Employee wellness programs’ should be conducted by organizations to guide the employees in carrying out their work effectively. PepsiCo‟s wellness programs illustrated their efforts towards

making their workplace, one of the best and great places to work and achieve world-class health and safety performance.

24

Discussion Questions:

  1. How do organizations take care of their employee‟s health?

(Hints: designing health programs –providing benefits – conducting wellness programs)

  • How did PepsiCo benefit from the employee wellness programs?

(Hints: top position-reduced healthcare costs-controlled fitness costs)

Course Reference: Concept- Regular Employee Wellness Programs /Unit- Occupational Safety and Health/ Subject-Human Resource Management.

Sources:

  1. Bruce Japsen, “Healthy Lifestyle Adoption Push May Not Save Employers Money”, Forbes, January 6, 2014
  1. PepsiCo.com, Health and Safety, Benefits, Workplace Wellness, Occupational Health & Safety
  1. “Workplace Wellness Programs Can Cut Chronic Illness Costs; Savings for Lifestyle  Improvements  Are

Smaller”, News for release, RAND Corporation, January 6, 2014

Other Keywords: Organization Development.

25

   Army Veterans Grievance Handling Portal (AVGH) –
 14 
  Initiative to Resolve Grievances at a Click of Button
    
    

In India, the Ministry of Defence, formed under the charge of a Cabinet Minister was headed by its own Commander-in-Chief, post-Independence. In 1955, the Commander-in-Chief was renamed as the Chief of the Army Staff. The Department of Defence co-ordinated the activities of: The Department of Defence Production, The Department of Research and Development and The Department of Ex-Servicemen

Welfare. The policy directions on defence and security issues were framed by the Ministry and its Departments and these departments ensured their effective implementation as per the Government‟s

directives.

In 2014, The Indian Army established a new portal (Table 2) for the ex-servicemen and their dependants. The internet based web portal was developed and designed by National Informatics Centre (NIC) Ltd. It

was established as a part of various initiatives taken by the Indian Army to quickly (Table 1) resolve the grievances of ex-servicemen and „Veer Naris‟ (the widows and mothers of martyrs who had laid down

their lives in the service of the Nation).

Table 1: The benefits of the system were:

Benefits

Ease of contact with the concerned agencies

Taught about the latest policies, regulations, entitlements and benefits

Facilitated easy interaction through web portal

Helped in tracking the grievance resolving progress online

Informed about the status of the case

Subsequently, in Kolkata an Eastern Command Army Veteran Cell was also launched. The cell was established to serve the ex-servicemen by facilitating them in the grant of post-retirement benefits, healthcare and canteen facilities. The ex-servicemen were given a toll free number 1900-325-2477 to contact for resolving their issues. The cell was headed by the widows and mothers of martyrs who had laid down their lives in the service of the Nation a Brigadier-ranked officer.

Table 2: The grievance redressed process through AVGH was:

Steps in the process of AVGH

Veterans were given User ID and Password to login to the web portal www.indianarmyveterans.gov.in

They had to refer the policy/regulations on the latest entitlements and benefits on the web Post the complaints through web login

Track the issues with the concerned offices online

The portal replied through automated response and sent e-mail or message about the progress of the case

The AVGH portal helped the Indian Army in meeting the expectations of the veterans and their dependants. The development of the portal showed the commitment of Indian Army towards the welfare of their ex-servicemen and their dependants by trying to solve their issues faster through the launch of the web portal.

The Indian Army established AVGH, a web portal for „grievance redressal’ to speedily andeffectively resolve the issues related to ex-servicemen. In order to have an effective grievance redressal procedure, certain conditions have to be fulfilled. The grievance redressal procedure should resolve employee grievance immediately, not violating any organizational rules and policies, providing data and information to the employees and resolving at the lowest possible level.

26

Discussion Questions:

  1. How are workplace grievances taken care of?

(Hints: establishing grievance redressal cell – grievance redressal portal)

  • Discuss the AVGH process developed to resolve the veterans‟ grievances by the Army veterans.

(Hints: user id – web login- messages about the status of the issue)

Course Reference: Concept- Grievance Handling – Unit – Effective Grievance Redressal – Subject – HumanResource Management

Sources:

  1. “Army establishes cell for ex–servicemen”, Press Trust of India, August 19, 2014.
  1. “Indian Army launches the Army Veterans Grievance Handling (AVGH) Portal”, Desh Gujarat, June 5, 2014.

III.    Indian Army launches Army Veterans Grievance Handling (AVGH) Portal ,       .i dia ar     y etera s.go .i .

Other Keywords: Business Environment and Law.

27

   ARLI’s Zero-tolerance Policy to
 15 
  Address On-the-job Behavior
    
    

AEGON Religare Life Insurance (ARLI), a joint venture of AEGON (a global company that offered insurance, asset management and pension plans) and Religare (a large financial service group in India)

and Bennett, Coleman and Company (a major media corporation in India) was formed in 2008. It offered a variety of insurance plans for financial planning and life insurance. In 2014, it was awarded „E–

Business Leader‟ by the Indian Insurance Awards under the Overall Insurance Industry Awards group. Its employee strength was about 11,000 with a turnover of more than one billion dollars.

In view of the increasing sexual harassment cases reported in 2013, the Director, International Labor Organization (ILO) worked with employers on changing the workplace attitudes of employees and on the mechanism to address the workplace sexual harassment. In 2014, ARLI had taken some measures (Refer Table 1) to set a safe working environment in the organization. It decided to take up any kind of sexual harassment inside or outside the organization as a breach of human right and business conduct and ethics.

The        ·following were some of the reasons for framing the policies:

·     Difficulty in describing an act as sexual harassment

·     Lack of clear principles on workplace sexual harassment

·     Change in communication style with the advent of IT and social media

·     Lack of  awareness on workplace conduct

Absence of preventive measures

Table 1: Initiatives taken by ARLI’s to prevent and address the workplace sexual harassment:

 Introduced Zero tolerance policy. All employees including the new
Zero Tolerance Policyrecruits had to read, understand  and acknowledge the policy
 through a digital signature
AccessibilityPolicy was made accessible on the intranet
  
Express YourselfStandard procedure  was set to reach the concerned person for
redressal by keeping it confidential
 
  
Fast ActionComplaints were dealt seriously, investigations were done  and
quick actions were taken
 
  
Intolerance was not toleratedProper utilization of intranet was ensured
  
Disciplinary ActionAny activity of sexual nature was treated as inappropriate at
workplace  and appropriate disciplinary action was taken
 
  

Adapted by the author from the source: AdilSaba, “Erase the grey zones”, Business Line, January 16, 2014

ARLI took the measures to sustain their belief in providing a healthy and safe working environment and to maintain self-respect of its employees.

Under acts of indiscipline, „on-the-job’ behavior of the employee such as carelessness, abuse ofalcohol and drugs, sexual harassment, or fighting with co-workers, which hampers the work of the individual or disturbs the performance of other employees, should be subject to disciplinary action. ARLI‟s zero-tolerance policy to address the workplace sexual harassment was designed to ensurehealthy and safe work environment.

Discussion Questions:

  1. Explain the need for disciplinary action for certain types of on-the-job behavior. (Hints: safe working environment–protect human rights- conduct and ethics)

28

2.  What did ARLI do to prevent and control workplace sexual harassment?

(Hints: zero tolerance policy –accessibility- disciplinary action)

Course Reference: Concept- On-the-job behavior – Unit – Disciplinary Action/Subject – Human ResourceManagement

Sources:

  1. Saba Adil, “Erase the grey zones”, Business Line, January 16, 2014
  1. Head-Talent, “Saba‟s Article on Sexual Harassment in Hindu Business Line”, AEGON RELIGARE LIFE

INSURANCE, Company, Media Center, Press coverage, January 21, 2014

  1. TineStaermose, Director,“India must have zero tolerance for workplace sexual harassment”, International

Labor Organization, Regions, Asia and Pacific, Information Resources, Public information, September 2, 2013.

Other Keywords: Business Environment and Law.

29

16  Unite’s Democratic Support for the Workers Cause in UK

Unite,a trade union established to meet the challenges of the 21st century was Britain‟s biggest trade union with 1.42 million members from around the world. Unite covered industries such as steel-making, foundries, aluminium, production of castings and coils for steel, and precious metals. The organization stood up for equality and fought for the rights of the workers.

Tata Steel‟s European operation that was started in 2007 in Britain could earn operational profits for few years after its inception but it was unable to meet the expected profits due to low demand. As a result, it

announced the sale of some of the units to Geneva based Klesch Group. Though the Chief Executive of Tata Steel‟s European operations guaranteed that the company would consult the staff, stakeholders, trade

union representatives and works councils throughout the process, workers of the units earmarked for sale approached Unite.

Unite intended to play a major role in the deal of Tata Steel Europe and the likely buyer Klesch Group through negotiations. Out of 30,500 employees, 6,500 people were from the units put up for sale. Unite was assessing (Refer Chart 1) the situation based on concerns and benefits of the deal.

Chart 1: Unite’s concern and benefit analysis of the deal

ConcernsBenefits
  
Future of the workersUnderstanding the business model of the likely buyer
  
Job cutsContinuity of steel production
  
Future of the Tata Steel Europe divisionAssessment of buyer requirement
  
Investment plans of manufacturing steel in the UKOperational plans of the buyer
  

Adapted by the author from the source: DivekarAditi, “Tata Steel trade union Unite to meet Tata Steel Chairman Cyrus Mistry on November 15, 2014

Unite planned to reinforce confidence among employees by initiating discussions with the Klesch Group on matters like loss of jobs, job security, future investment plans and understanding business models to influence the outcomes.

Modern ‘trade unions’ are more practical as they consider issues like production problems in the industry and social issues like employment, while putting forward their demands. Unite‟s concern

about the unprofitable units along with the proposed units for sale shows the influence of socio-economic factors on the trade unions.

Discussion Questions:

  1. Explain the role of Trade Unions in fighting for the rights of the workers. (Hints: job security –negotiations-equality)
  2. Why did the employees of the units that were put up for sale approach Unite?

(Hints: trade union-workers future-job security)

Course Reference: Concept- Characteristics of Trade Unions /Unit- Trade Unions /Subject- Human ResourceManagement.

Sources:

  1. Ishita AyanDutt, “Tata Steel faces tough choices in Europe”, Business Standard News, October 27, 2014
  1. Aditi Divekar, “Tata Steel trade union Unite to meet Tata Steel Chairman Cyrus Mistry on November 15”, Business Standard News, October 27, 2014
  1. Unite, Home Page, About Us

Other Keywords: Business Environment and Law, Business Economics.

30

 17 Role of Government in Maintaining
  
  Industrial Relations – A Case of Bosch
    
    

Motor Industries Company Limited (MICO), a Bosch Group company started operations in India in 1951. MICO manufactured spark plugs, filters, nozzle-holders, and elements and delivery valves under technology guidance from Bosch – the largest Indo-German company that supplied technology and services to Automotive, Industrial, Consumer Goods and Energy and Building Technology.

MICO had four manufacturing plants in India – Bangalore, Naganathapura, Nashik and Jaipur. MICO was under the scanner since September 2010 when workers at Bangalore plant went on strike for wage hikes, medical facilities and hospitalization expense reimbursement. Though Bosch reassured its stakeholders about its commitment to business policies and discipline, labor unrest was frequent in the company·.

In March 2010, a tripartite meeting for negotiation was called at Naganathapura plant for salary hikes. Later, in the same month an agreement was made at the Naganathapura plant for the new

  • salary hike.

In September 2011, the MICO Employees Association (MEA) union at Bangalore plant again went on tool down strike without a prior notice against outsourcing some non-core manufacturing and support processes. The strike was called off after sixteen days when the state

  • government referred the matter to the Industrial Disputes Tribunal for adjudication.

In March 2013, MEA went on tool down strike followed by a three months “go–slow” approach

protesting  against  the   suspension   of   a   workman.   This   was   called   off                  after      the   labor

  • commissioner held conciliation and the management subsequently withdrew the suspension.

In September 2014, wage negotiations were on going for three plants other than Nashik plant.

The  union  demanded  an   increase  of  Rs.20,000   /-   in  their  monthly        salaries                  against          the

  • management offer of Rs.17,000/-. Workers went on a strike by giving notice in advance.

The Karnataka government prohibited the strike by issuing an official order under the Industrial Disputes Act, 1947, after negotiations and conciliations between the company management and

  • workmen union and several senior government officials of the State failed.

Finally, on December 8, 2014, Bosch put an end to the strike by entering in to a wage settlement for 2013-2016 with MEA.As per the settlement, the monthly cost-to-company of an average workman rose from Rs.64,000/- to Rs.86,000/- against the condition that the workers meet the industrial engineering standards of 7.5 hours of work in eight-hour shift. It also announced employment confirmation to 100 temporary workmen (out of 370 numbers) with the new

intermediate wage level.

The workers at the plant resumed the production agreeing to stick to the assessment on productivity standards. It was expected that about 2,600 workers would benefit from the wage settlement.

The case of Bosch indicates how the state „government‟ and legal systems can enforce a peaceful industrial environment through negotiation, mediation, conciliation, and adjudication.

Discussion Questions:

  1. Does government have any role to play in maintaining industrial harmony? (Hints: Industrial Disputes Tribunal – Labor commissioner)
  2. What was the role played by the government in the negotiations to resolve labor unrest at MICO?

(Hints: call off strike-negotiations- conciliations)

Course Reference: Concept-Government/Unit-Industrial Relations, Collective Bargaining, and Workers‟ Participation in Management/Subject- Human Resource Management.

Sources:

  1. BS Reporters, Karnataka Govt. prohibits strike at Bosch, Business Standard, October 10, 2014;
  2. BS Reporter, Bosh workers in Bangalore on Strike, Business Standard, September 17, 2014;
  3. BS Reporter, Different articles, Business Standard, November 16, 2013; October 14, 2011 &on March 13, 2010.
  4. Mahesh Kulkarni, “Bosch concludes wage settlement in Bengaluru plant”, Business Standard, December 9,

2014.

Other Keywords: Business Environment and Law.

31

 18 Google, Inc.: Providing Quality Work Life
   
    

Google Inc., an American multinational corporation, known for innovation and collaboration was founded by Larry Page and Sergey Brin in 1998. Google specialized in Internet-related services and products such as online advertising technologies, search, cloud computing, and software.

Google ranked first in the list of “Fortune 100 Best Companies to Work – 2014”. The credibility lied in its philosophy of providing Quality Work Life (QWL) (Refer Chart 1) by “creating the happiest, most productive workplace in the world”. It had proved that workplace design and office interiors had an

immense effect on the productivity and creativity of employees.

Chart 1: Google’s exceptional QWL initiatives

Google’s motivate employees

Adapted by the author from the source: Stewart James B., “Looking for a Lesson in Google‟s Perks”, NYTimes.com, March 15, 2013

In 2014, noted companies such as Zomato and Free Charge were trying to imitate the culture of Google to encourage creativity and improve collaboration and openness among the employees.

The primary objective of „Quality of Work Life (QWL)’ should  be  to  provide  a  healthy work

environment for employees. The study of Ergonomics or Human Engineering stresses the provision of better plant layout and improved equipment design. Google‟s success through innovation and

collaboration demonstrated exceptional quality of work life.

Discussion Questions:

  1. Explain the need for QWL initiatives in modern organizations.

(Hints: keep employees happy – productive workforce – stress free environment)

  • What were the initiatives taken by Google to make their employees happy and productive?

(Hints: connecting employees with brand –autonomy – health consultation)

Course Reference: Concept- Quality of Work Life /Unit- Quality of Work Life/ Subject- Human ResourceManagement.

Sources:

  1. Shonali Advani, “Offices like Myntra, InMobi and others get chic makeover”, Economic Times, November 7, 2014
  1. Mithila Mehta, “Interiors say a lot about your workplace”, The Times of India, April 10, 2013
  1. James B.Stewart, “Looking for a Lesson in Google‟s Perks”, NYTimes.com, March 15, 2013

Other Keywords: Organizational Behavior, Organization Development.

32

 19 Role of Education in Successful Implementation
  
  of Quality Circles
    
    

Government Medical College and Hospital (GMCH), Nagpur, established in 1947, was inaugurated by the first president of India Dr.Rajendra Prasad. Spread across 196 acres of land, the hospital attached to this institute had 1,401 bed capacity. It had a Medical college, Super speciality Hospital, Dental College, Physiotherapy, Occupational therapy and Nursing schools in its premises.

In 2014, Government institutions were given instructions to keep their premises clean as a part of Prime Minister‟s Swaccha Bharat Abhiyaan program. Even before the official order came from the PMO, the

newly appointed Dean at GMCH, Nagpur implemented standard procedures to improve and advance its services and operations. To implement the same, he formed twelve quality circles and launched them on a pilot basis.

The quality circles were related to cleanliness, patient care, bedside environment, plumbing, laundry,

staff behavior etc. As a part of quality circle meant for cleanliness, GMCH could see the following

changes within two months:

·

·     Standard procedure was set  for monitoring process

·     System was developed for measuring outcomes

·     Authorized volunteers felt responsible

·     Developed employee commitment

Improved sanitation in the premises

After launching quality circles, GMCH observed some pre-requisites to successfully implement the program. It conducted a workshop (Refer Chart 1) to give the required inputs to its staff. The workshop by the GMCH included the following activities:

Chart 1 : Activities of GMCH workshop:

Adapted by the author from the source: GwalaniPayal,”Quality circles to bring about better care at GMCH”, The Times of India, November 6, 2014

GMCH‟s efforts of educating the staff resulted in successful implementation of the quality program in avery short span of time. As a part of the cleanliness program, it also took some measures to ensure that private hospital ambulances were not parked in the premises of GMCH, as the staff of these private ambulances were misguiding the patient relatives and damaging the image of government hospitals. GMCH was expected to produce more results through other quality circles.

GMCH planned to install protocol-based systems in the Hospital to improve the services and operations. In the Indian scenario, the lack of leadership skills and pr oper „education‟, acts as a bottleneck in the successful operation of Quality Circles (QCs). Providing necessary training to the leaders of QCs and educating them on the benefits of QCs can help in solving the problem. GMCH conducted workshops to educate the staff, nurses and Class IV workers in identifying the problems and searching for solutions.

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Discussion Questions:

  1. Why do organizations encourage and empower quality circles?

(Hints: standard system developed –employee commitment – improved sanitation)

  • List out the activities of GMCH‟s quality circles.

(Hints: briefing objectives-training – reporting to co-ordination committee)

Course Reference: Concept- Education – Unit – Quality Circles – Subject – Human Resource Management Sources:

  1. PayalGwalani,”Quality circles to bring about better care at GMCH”, The Times of India, November 6, 2014.
  1. PayalGwalani,”Maintaining the newly-achieved cleanliness in GMCH premises a huge responsibility”, The

Times of India, November 5, 2014.

  1. PayalGwalani, “GMCH acts tough against private hospital ambulances”, The Times of India, November 4,

2014.

Other Keywords: Project Management

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20Zions’ Technique to Improve Employee Engagement
  

In 2013, Zions Bank received American Bankers‟ designation of Best Banks to Work For. Zions Bank, a subsidiary of Zions Bank Corporation was operating with more than 500 offices and 600 ATMs in 10 Western states of USA. In Zions Bank, leaders and managers acted as catalysts in change management and in attaining higher employee engagement.

In 2012, George Myers, Executive VP and HR Director adopted a new review system to fully engage his employees by wiping out the standard review process. The features of the new system were

  • Yearly reviews were replaced by weekly mini-reviews and coaching sessions
  • The process included peer accountability
  • Individual contributions were connected to the organization‟s strategy and business results
  • Compensation was connected to the expected behaviors and performances

Efforts   ·put by Myers resulted in:

·     Development of job skills and knowledge for 91% employees

·     Career growth for about 85% employees

Continuous support and recognition from their supervisors for 92% of employees

In 2012, Gallup conducted research studies on the work-unit-level relationship between the employee engagement and the specific performance outcomes. The recommendations of the research included interacting with employees on a daily basis through one-on-one meetings and conducting weekly action-planning sessions to improve their engagement levels. It could be inferred that the best practices in the key areas of performance with special reference to employee engagement, as per Gallup study were reflected in Zions Bank.

„Employee engagement’ is the emotional commitment of an employee with the organization and itsgoals. Organizations can enhance its performance with high employee engagement. Zion‟s technique

to engage the disengaged employees resulted in sustainable growth.

Discussion Questions:

  1. How does employee engagement lead to improved performance in organizations? (Hints: skill development-career growth – motivation)
  2. List out the features of Zions‟ new employee engagement system.

(Hints: mini-reviews-matching organization‟s strategy with business results-behavior change)

Course Reference: Concept-Employee Engagement/Unit-Emerging Challenges of HRM/Subject- Human ResourceManagement.

Sources:

  1. Robyn Reilly, “Five Ways to Improve Employee Engagement Now”, Gallup Business Journal, January 7, 2014
  1. Larry Myler, “Need Higher Employee Engagement? Zions Bank May Have The Answer”, Forbes, November 17,

2014

  1. Zions Bank, Home Page, About Zions Bank

Other Keywords: Organization Development; Strategic Human Resource Management.

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