Group 1

Dhruv Budhiraja C016 Twiga Dua F012 Sahil Kukreja F029

Pavan GVS G049 Kanhaiya Maheshwary I034

Table of Contents
Real Estate in India Sector Overview..................2
Company Investors Clinic..................................3
ORGANIZATION OVERVIEW............................................4
STRATEGY.....................................................................4
Impact of PESTEL on HR Practices........................5
IMPACT OF POLITICS AND REGULATIONS........................5
IMPACT OF TECHNOLOGY...............................................7
Identification and Analysis of Core Position..........8
REASONING..................................................................8
ANALYSIS......................................................................8
ROLES AND RESPONSIBILITIES OF A BDE.................................8
DESIRABLE SKILLS....................................................................9
HIERARCHY............................................................................. 10
PAY STRUCTURE.....................................................................11
SALES PROCESS.....................................................................11
PROBLEMS FACED BY BDEs.................................11
Developing an HRM System................................13
Real Estate in India Sector Overview
The real estate sector is one of the most globally recognized sectors. In India, real estate is the
second largest employer after agriculture and is slated to grow at 30 per cent over the next
decade.

The real estate sector comprises four sub sectors - housing, retail, hospitality, and commercial.
The growth of this sector is well complemented by the growth of the corporate environment and
the demand for office space as well as urban and semi-urban accommodations.

The construction industry ranks third among the 14 major sectors in terms of direct, indirect and
induced effects in all sectors of the economy.

It is also expected that this sector will incur more non-resident Indian (NRI) investments in both
the short term and the long term. Bengaluru is expected to be the most favored property
investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and
Dehradun.

The Indian real estate market is expected to touch US$ 180 billion by 2020. The housing sector
alone contributes 5-6 per cent to the country's Gross Domestic Product (GDP).

In the period FY2008-2020, the market size of this sector is expected to increase at a Compound
Annual Growth Rate (CAGR) of 11.2 per cent. Retail, hospitality and commercial real estate are
also growing significantly, providing the much-needed infrastructure for India's growing needs.

Private Equity (PE) investments by domestic and international investors in the Indian realty
market declined 30 per cent year-on-year to US$ 2.5 billion across 48 deals during January-
September 2016.

Over April-June 2016, India's office space absorption grew 46 per cent year-on-year to over 10.2
million sqft, primarily led by Delhi National Capital Region (NCR) and Bangalore, which
accounted for almost 50 per cent of the total space take-up. On the supply front, over 7 million
sqft of fresh office space was added during April-June 2016, led by Hyderabad and Mumbai,
accounting for more than 65 per cent of the total supply of fresh office space across leading cities
during the quarter.@

Mumbai is the best city in India for commercial real estate investment, with returns of 12-19 per
cent likely in the next five years, followed by Bengaluru and Delhi-National Capital Region
(NCR). Sectors such as IT and ITES, retail, consulting and e-commerce have registered high
demand for office space in recent times.

The market has been hit by low world economic sentiments and the demonetization in India but
not to the extent of being irreparable, so it will bounce back and to the levels being predicted.

Real estate contribution to Indias GDP is estimated to increase to about 13 per cent by 2028.
The market size of real estate in India is expected to increase at a CAGR of 15.2 per cent during
FY2008 2028E and is estimated to be worth USD853 billion by 2028.

Increasing share of real estate in the GDP would be supported by increasing industrial activity,
improving income level & urbanization.

The government also launched 10 key policies for real estate sector in 2016, namely:

1. Real Estate Regulatory Act

2. Benami Transactions Act
3. Boost to affordable housing construction
4. Interest subsidy to home buyers
5. Change in arbitration norms
6. Service tax exemption
7. Dividend Distribution Tax (DDT) exemption
8. Goods and Services Tax
9. Demonetization
10. PR for foreign investors
11.

Company Investors Clinic

ORGANIZATION OVERVIEW
On December 7, 2006, Honey Katiyal a sought after name in realty today; penetrated into the
real estate retail arena with a full bang and launched Investors Clinic a real estate consultancy
firm. With a 250 sq. ft. office, 25 professionals, Rs 60 lakh revenue, 3 developers and 5 projects
in hand, the stage was set to revolutionize the real estate arena.

With Investors Clinic, Honey Katiyal practically transformed the face of the real estate industry
in India by bringing professionalism in this sector. Strongly perceptive and instinctive in
business, Mr. Katiyal understood that the buyers as well as builders were craving for a reliant
professional channel to connect and conduct business. There was a major gap between the two
when it came to real estate service providers. Buyers wanted someone whose guidance they
could trust and builders wanted someone to sell and market their projects so that they could focus
on building projects. Property brokers were the only option for buyers at the time, but definitely
not the best.

Honey Katiyal realized the dire need of reliant real estate professionals and not just mere brokers
to bridge that space between buyers and sellers. These professionals were to address the queries
and apprehensions of buyers, serve them with a property catalogue, guide them through the
available options, offer them the best price and deals on behalf of accredited builders, and
facilitate the process of buying and acquiring property while safeguarding buyers interests.

Since then, Investors Clinics milestones are evident from the impressive performance statistics
that it has achieved. It is a known fact that Investors Clinic is a frontier settler amongst the
professional real estate consulting companies in India. As per the latest reports, Investors Clinics
brand value is reckoned at more than 2000 Cr with a turnover of Rs 200+ Cr. The company is
also known to be the highest tax payer in the primary real estate services industry. With a strong
network of 34 offices across India, more than 1.5 lakh sq. ft. of office space and global foray
with international presence in Dubai and Singapore, Investors Clinic is strengthening its reach
and presence very rapidly.

Investors Clinic has a proven track record of working with more than 200 leading developers.
The company is committed to providing best-in-class customer service through world-class
technology, processes and response mechanisms. They provide up-to-the-minute updates from
property value appreciation to new property launches.

STRATEGY
Customers are readily provided with relevant information, best options, enticing deals, practical
solutions, as well as expert service professionals to deal with their loan requirements, plus Vastu
experts to answer their property related apprehensions and provide solutions.
Loan Clinic, a subsidiary of Investors Clinic, is a team of Home Loan professionals who assist
customers on their home loan queries and help them to get competitive deals on their home loan
requirements. As an initiative that was started to serve buyers and clients better, Loan Clinic
offers various loan related solutions. Investors Clinics is associated with all leading banks and
financial institutions like Axis Bank, ICICI Bank, HDFC Bank, LIC HFL, PNB HFL, India
Bulls, DHFL, Tata Capital

Vastu Clinic, a joint venture by Investors Clinic and Panchtatwa - the law of creation, is a
super specialty entity offering answers to buyers Vastu related queries, subsequent advice and
solutions. It offers Vastu facts and remedies for all properties, be it residential or commercial.

Investors Clinics Prop-Fest is a property carnival which has come to be a rhythmic event,
organized by Investors Clinic across the country as well as overseas in Singapore and Dubai. The
biggest property show with all big, reputed and accredited real estate developers showcasing
their projects under one roof where buyers can avail discounts up to Rs. 20 lakhs. Property
options varying from Rs. 20 lakhs to Rs. 10 crores are showcased here attending to all kinds of
realty needs. Also its counterpart Budget Fiesta which is inclined towards catering to the needs of
affordable homes, provides more than 50 property options under 50 Lacs by accredited
developers.

Impact of PESTEL on HR Practices

IMPACT OF POLITICS AND REGULATIONS
Recently in 2011, the lawmakers in our country introduced the Real Estate Regulation Act,
which has impacted the way consultancies (like the one we have chosen) function and make
money. These legislations and bills have called for brokers and consultants to get officially
registered, thereby including them in the ambit of real estate along with builders. We will analyze
the impact of the Real Estate Regulation Act (RERA), and The Real Estate (Regulation and
Development) Bill, 2016 in particular, and their impact on HR practices.

Before analyzing the impacts on HR practices in the real estate sector, we will examine the
salient features of these two legislations

1. Mandates maintaining books The latest legislation makes it compulsory for real estate
brokers and consultants to maintain book of accounts, in order to maintain transparency
and reduce trust deficit.
2. Setting up a code of conduct for agents Real estate brokers and consultants will not
have to abide by a code of conduct, which means that if theres any complaint of mis-
selling against them, the broker will be liable for receiving punishment.
3. Right to know the status of various approvals This bill grants brokers and
consultants the right to ask builders what is the status of various clearances and
permissions.
4. Sale of flats on the basis of carpet area Real Estate Brokers and Builders have long
followed the practice of selling property on the basis of super built up area. The current
bill mandates sale of property only on the basis of carpet area.
5. Preventing real estate brokers from getting obsolete These acts and laws are in fact
helping real estate brokers and consultancies in fighting competition from e-commerce
portals which deal with renting and selling of property. Once brokers and consultants start
abiding by these new practices, they will automatically upgrade.

So what are the potential impacts on HR practices?

1. Inclusion of newer parameters for KRA Mis-selling and corruption are rampant in
the real estate industry. However, with lawmakers enforcing stringent laws, it is now
important for real estate brokers to stay free from dubious practices, else they can attract
a huge fine and/or penalty. HR can include this in the KRA of business development
executives and other sales people that the number of complaints of mis-selling filed by
the companys customers can have a direct bearing on their commission and appraisal.
2. Development of Information Systems HR, which is responsible for knowledge
upgrade of employees, will now have to develop information systems which will contain
all the information about the status of various approvals and permissions that have been
obtained by the builders who are their clients.
3. Designing adequate pay structures Real Estate Brokers and Consultancies are often
known to hide their actual income in order to save tax. This also results in lower
remuneration for employees, as the real revenues of the company are never known. Since
the new bill mandates maintaining book of accounts, HR can design adequate pay
structures for various employees.
IMPACT OF TECHNOLOGY
Work-Life Balance:
Implementing flexible work schedules, providing employees with telecommuting options and
training supervisors to spot signs of workplace stress suggests the organizational culture supports
employees achieving work-life balance. Managing scheduling logistics, modifying technology
for remote access and conducting training sessions are essentially transactional functions.
However, these functions ultimately create a results-oriented work environment because they
enable greater efficiency and, thus, increase the time employees have to devote to family
obligations and personal endeavors.
How Mobility has impacted HR practices:
Technology has made it easy to forget the importance of face-to-face meetings.
The problem that real estate professionals cite most frequently today is losing touch with their
customersa real struggle in a people-centered business.
This expansion into mobile technology is just the latest in the ever-growing real estate toolbox. It
wasnt that long ago that the real estate business was almost exclusively paper-based.
The office administrator enters new assignments into the Web platform, and then each of the
concerned employees can access it with a browser and communicate with their office
administrator and clients over that platform. Smartphone browsers are completely compatible
with Web platform, so the appraisers can do all these status updates from the field. They are not
tethered to a specific geographic location nor a particular computer. Any device with Internet
access and a modern browser will put them in business.
It has become clear that consumers are using mobile devices and tablets to search properties and
get real estate information. Mobile traffic has grown from 10 percent last year to over 50 percent
in 2015. Since many consumers start their search for real estate online, they have to leverage
technology for maximum exposure of their listings to the market.
Hence the HR practices in this industry have changed to BYOD (Bring your own device) where
the employees can their own devices to work and have their work applications and data stored on
it and carried along which was not the case earlier.
How Social Media has impacted HR practices:

Social media presents a great opportunity to increase exposure and garner top-of-mind awareness
for real estate and relocation professionals from a sales standpoint if used properly, so most
companies have Facebook pages, social media policies for their employees, blog sites, etc. In
addition to public use, companies use social media to connect their various subsidiaries, offices
and many other associates in various countries for internal business and 24/7 networking. They
use it to generate business, promote agents, and post articles and market reports. Recently
companies have been using YouTube to create marketing videos for major cities and posting
them online.

At the corporate level, Social Media helps promote the brand, interact with our agents, help our
recruiting efforts, as well as distribute market trends to online friends, fans, and followers.
And then because social media is inherently relational, agents use it to stay connected to the
spheres of influence and leverage their online relationships for lead generation and marketing.

Hence, in this industry once when social media websites were blocked quoting that it adversely
affects the productivity of sales agents. Now the policies have been shaped in such a way that
employees leverage Social Media to generate leads and convert them into successful sales.

Identification and Analysis of Core Position

Position: Business Development Executive
REASONING
A Business Development Executives role is to assist their companies acquire new customers and
sell additional products or services to existing ones; for a company that is primarily into sales of
property or promoting reality, it is a critically important function as the BDEs are the face of the
company and they have to link the customers to the company, have knowledge of the margins,
pass on discounts, undercut competition, look at bargains and convert customers while
generating leads along the way.

This is the function that has most pressure and the highest attrition rate in the organization.
Hence, the perspective of a BDE tells us about how the customers are buying, how much are
they researching, how is the competitor to be benchmarked, what are the current deals, how
should the company strategize.

A BDE can also provide information about who is performing what function in the organization
and is less organization biased.

What will the managers reaction to what strategy, how will the organization fare w.r.t a
particular HR practice, also BDEs are the most in number, easily approachable and every deal
has to pass their table before going ahead.

ANALYSIS

ROLES AND RESPONSIBILITIES OF A BDE

Meeting channel partners(CPs) spread over different localities
 Pitching, clarifying and empanelling the CPs with the company
Differentiating commercial and residential projects
Maintaining regular follow-ups with brokers
Building relationships with CPs and brokers
Help in designing marketing activation strategies to increase sales
Assisting clients on site visits and trying for closing of deals
Doing the collection of sites/properties being booked
Long term relationship building
Elaborate plan(upto 2 hours) for prospective clients involving AV, prototype
demonstration and tablet touch tour followed by site visits
15-20 minutes AV
30 minute model demonstration
15-20 minutes tablet touch tour
Client Site Tour Dependent of client Anything upto 45 60 min
Site usually has description label at entrance with specifications of each room/segment
where closing manager accompanies to facilitate the client journey

DESIRABLE SKILLS
Skill 1: Networking

If a BDE never meets anyone new, he/she will never have anyone new to sell to. Whether he
encounters them for the first time in person, online, or over the phone, getting one-on-one with
them in a conversation about their needs is critical. People buy from people they like. Having the
ability to connect with the clients and making them trust the sales agent is very important in Real
Estate sector.

Skill 2: Negotiation

Bringing others together and trying to reconcile differences. The most skillful agent will never
narrow negotiations down to one issue. Prior to negotiating you should establish criteria by
asking enough questions to find out the primary objectives and goals of the buyer and seller.

Skill 3: Social Perceptiveness

It means being aware of others' reactions and understanding why they react as they do. The most
important of todays sales skills is simply understanding the buyer. Its the foundation of
effective selling. Its about identifying the experience that the buyer wants to have as they
consider making a purchase.

Skill 4: Persuasion

It is the ability to persuading others to change their minds or behavior. The sales executive
should be able to persuade the client without being pushy.
Skill 5: Service Orientation

Sales managers be actively looking for ways to help out their clients in whatever manner
possible. Buyers dont want to be closed; they want to be helped. Thats why Always Be Helping
(ABH) is the new always be closing. ABH is more of a mindset than a skill.

Skill 6: Following Up on Every Lead

Follow-up is a big area where agents fail. Working every lead until it either closes or is clearly
not a lead anymore is critical to building the solid pipeline that's required to keep the business
continually producing.

HIERARCHY

Director

Vice
President

Assistant
Vice
President

Manager

Team
Leader

Senior BDE

BDE

PAY STRUCTURE
SALES PROCESS
The Sales Force is segmented on the basis of geography. IC operates in 28 cities across India.

The process comprises of the following steps:

1. Lead generation: The key to leads generation in real estate is to diversify lead
generation across different levels of barriers to entry. IC uses the following 3 methods for
lead generation.
a) MIS - IC uses Oracle for lead generation. The BDEs are allotted leads from the
database, which need to be followed up within 2 days. In case of any delay, the leads
are allocated to some other BDE.
b) Cold calling: BDEs have a cold call script that is used to generate leads.
c) Personal Leads: these include personal contacts of the BDE and depends on the
BDEs network.
2. Meeting: Post lead generation, a meeting is arranged with the prospective client to pitch
the property. This meeting can be either at the clients location or at the IC office.
3. Booking
4. Document completion and verification: The required set of documents including ITR,
latest payslips, PAN card, photographs among others are collected and verified.
5. Sale login at builder
6. Sale completion: Once the documents are verified and the builder notified, the sale is
said to be completed.
7. Commission received by IC: IC receives commission for the sale from the client.
8. Commission paid to BDE as incentive: A part of the commission is paid to the BDE.
The percentage is decided on the basis of the revenue generated for the company.

PROBLEMS FACED BY BDEs

1. Compensation Incentives are low related to the sale value as it is high ticket price item, the
employee is always in a quandary over the fact that he can make a personal sale and earn all of
the money by himself. So, it is anybodys game that would he like to earn 10% of the
commission on ticket price by the company or earn all the commission by acting as a private
agent for the builder.
2. Motivation Employee motivation is very low as even on garnering bookings at the start of
the month that are sufficient for their monthly target, they are pushed so as to make even more
sales and there is no respite in pressure from the employees immediate boss. Due to this,
employees hide bookings from their bosses till the end of the month when they think they have
done enough for their salary and commission and this leads to tremendous revenue losses due to
too much egging.

3. Training Training is a major loophole in the company as fresh graduate recruits and
property dealers on the rolls are trained on the same benches and with similar guidelines, to
which the fresh graduates think low of the job and holding no experience leads to a major
disadvantage for them as plans, layouts and property nature is something they are unaware of.

4. Synchronization There is no coordination among different functions of the organization

such as loan clinic and investors clinic whereby the buyer has to approach both functions
independently and this leads to a wastage of time and resources for both parties and there is no
everything under one roof kind of classification for the company.

5. Internal competition - Cannibalization is rampant as everyone wants commission on their

palette and hence knowledge and information is not shared among two competing business
functions of the organization such as fresh sale category and resale category.

6. Attrition Very high attrition rate due to company policies and pressure built up by the
compensation and salary structure whereby the company doesnt have a problem with the
percentage pegged at 63 due to a minimum of 1 sale made by a BDE per month whereby the
company continues to earn its regular moolah.

7. Talent Management Talent management is poor as the company has no rating parameters
for employees so that it comes to know who has contributed what and has done what towards
development of the company. In the process it cannot hone leaders for tomorrow.

8. Work Culture Overall culture of the company is lackluster due to casual employees and the
HR not embodying a professional vibe throughout the organization whereby foul language is
used, no discipline in timings and no exhibition of courtesy.

9. Gender Diversity No gender diversity as the sector is considered male-dominated and

women are shown the door in terms of bargain-ability and late night office hours discourage their
presence in this sector. Unethical practices such as collaborating with competition are also
rampant and information does not stay within the organization.

10. Resource Function The IT system is very strong in the backend but it does not convert
into front end strength for the overall structure, it has been outsourced to Oracle but has not been
optimized.
Developing an HRM System
HR role in the company should get evolved from protector and screener, to planner and change
agent. He should be made in charge of a heterogeneous collection of strategic roles. HRs KRA
should be Talent development, promotion of organizational learning, succession planning and
dissemination of knowledge

Key HR contribution is an approach to organizational alignment with a systems perspective on

HR practices like:

Designing organizational structure

Staffing role that created measurable improvements in retention

Leadership development

Intellectual capital utilization

Work process efficiency, and total quality

We have designed a complete HR strategy to overcome the problems related to this position in
the organization -

1. Staffing

The success of any organization if inherently linked with its human capital. To start with,
if the employees are not competent enough in terms of their functional skills, the
company cannot generate more business. In fact, it may lose its existing business too.
Thats why hiring the right kind of people is very important. Since HR is a fairly new
function as far as the real estate sector is concerned, there arent enough practices to get
the best talent on board. We have some suggestions for hiring the right business
development executives.

How to attract talent?

Advertising: Advertising is an important tool to invite applications. Putting up posters at

relevant institutes, online advertising, and buying space in real estate sector related
magazines, and using popular online portals will help in spreading word that the company
is looking for new employees.

Recruitment should be two pronged

Screening of Applicants

Interviews

Screening of Applicants Applicants can be rejected on the basis of the following

1. Inadequate experience

2. Inadequate education

Interviews Interviews should be designed well in order to assess some key skills and
competencies. Weve identified a list of traits which are suitable for the role of a Business
Development Executive

Oral Communication
Sales Ability
Patience
Conflict Management
Tolerance for Stress

Interview panel to consist of

HR Personnel
Senior Business Development Executive or Team Lead
VP / Director

Questions to be based on

Career Goals
Favorite courses in school and college
 Why do they want to enter real estate?
Situational questions regarding stress and conflict management
Candidates expectations from the organization

Project specific hiring The project head should be a part of the recruitment need so that
his evaluation is taken into account and since this companys business is vast hence
specific capabilities for every project is required

Project team and Sales team on-boarding done prior to launch

Since getting consistent sales is so critical, project team should define the target
customers, various attributes of the project etc so that both the teams can together work
for great execution of the selling strategy.

Digital media is getting major attention in this sector with new entrants like Tata and
Godrej selling properties online, HR should help the company explore this area with
recruitment from tier 1/ tier 2 colleges.

2. Make the company Goal setting helpful to the business

The plan Goals are personal, as they relate to the business. As they relate to business,
they should be about how a worker can perform better in his job. The plan is to develop
skill assessments for each area and orient the goal setting to improve those skills

What can be done?

The HR head has to lead the change. Over a 3-month period each sales team can define
skills that are part of their daily job. Things like improving call quality, building customer
relations, growing prospects etc. These skills can be rated and marked for improvement
for each sales person.

3. Improve leadership ability within the company

Leadership should be defined by actions. How meetings are to be held, and defining a
feedback system for keeping or removing people from leadership. This plan can be
adopted top to bottom in the company.
Star performers should be given an opportunity for accelerated growth under a special
company program which will nurture future leaders. This will help to increase
performance, and elevate employee satisfaction

4. Help pull the company out of a tailspin

Problem - Employees lack motivation. There are arguments and overall customer
experience is average due to lack in transparency. The management pressurizes the HR
for hiring good sales people and retention is also a major problem. The company has been
a great small company but after the expansion, things have gone downhill.
 Plan The HR manager along with the top management should carve a business model
with instructions written for their company. A Business Process Improvement Guide
should be developed highlighting the communication and directions given to the
employees. User guide may contain following things:
Easily defined steps

Examples for each step so you can see how it is done

Method for contacting the author with questions or comments

Telling the workers what they need to be doing Giving sales people a clear
direction as to what is expected from them, when it is expected and all the little
details that go into the sales process. After this, it should be analyzed that is the
direction clearly given to all sales people equally? Has the HR taken time with
each group to make sure everyone knows what to do and finally HR should make
sure that all the workers responding to the directions in the same way.

5. Attracting and retaining the right talent

Consider environment as well as monetary compensation.

Hold departmental contests with awards and regularly recognize achievements such as
years of service, Salesman of the Year award.

Encourage employee input

According to a study employee survey has a 90% return rate and that is a good tool for
the HR for determining changes needed to drive performance.

Create Total Rewards Package

Other creative ways to compensate employees should be devised like a Wellness
program, or gifting advanced gadgets which are very popular among the young
generation

Pay for performance and understand correct compensation

Each job is unique and should be compensated appropriately. Eg., A person in the
backend whose responsible for handling forms, customer queries should have different
KPIs and hence different incentive schemes.

6. Training

Induction of New Employees

With plethora of experienced as well as fresh graduates joining the company, training
should be separately experienced for both the groups. Further graduates should be
 exposed to intensive training on building sales skills and experienced employees on
new trends emerging in the industry.

E-learning modules
Since a person working in this profile has an unpredictable time schedule, HR should
design modules which may help the employees to hone their skills any time anywhere.

General training: On company values, ethics and business etiquettes while client
dealing.
This is important so that employees develop a particular working style in this profile
which will lead to consistency in performance and fewer conflicts.

Job rotation and global immersion: Through Career Opportunities Program, in

order to gain different cultural perspectives and foreign channel partner insights.

7. Appraisal
Appraisals should be done on the basis of several dimensions which impact the job as
well as the team. Appraisals should be done in the following manner
Establish performance standard with employees

Mutually set measurable goals

Measure actual performance

Compare actual performance with standard

Discuss the appraisal with the employees