03/15/11 Dr B Ratan Reddy, RGBS 1

STRUCTURE

STRATEGY SYSTEMS

SHARED
VALUES

SKILLS STYLE

STAFF

03/15/11 Dr B Ratan Reddy, RGBS 2

03/15/11 Dr B Ratan Reddy, RGBS 3
 Vision
(Why we exist)

SHARED VALUES Core values

= (What we believe in)
Mission
(What we want to be)

03/15/11 Dr B Ratan Reddy, RGBS 4

 Vision
A brief
Statement
statement of Based on the simple
what the organization premise that you must
wishes to contribute to know where you are
the world and how it going. No one can follow
wishes to be seen you if you do not know
where you are headed
‘Would you tell me, please, which way I ought to go from here?’
‘That depends a good deal on where you want to get to,’ said the
Cat’.
‘I don’t much care where…’, said Alice.
‘Then it doesn’t matter which way you go,’ said the Cat
Alice’s Adventures in Wonderland – Lewis Carroll
03/15/11 Dr B Ratan Reddy, RGBS 5
 Core Values
The set of cherished
notions and beliefs that
guides every move a
Company makes
When the values are
shared by all employees,
it provides control for
guiding behavior

The practice of values across the board becomes

institutionalized when employees observe that they
are followed by the top management. They follow the
lead by observing what is practiced, not what is
preached

03/15/11 Dr B Ratan Reddy, RGBS 6

 Mission
Statement
A statement of intent of When
what a company wants
to create, and through
which lines of business
the Mission is
shared by all employees,
it provides focus for
driving strategy

Without a clear, quantified and focused description of

how people, time and money are to be used, you don’t
have a strategy, just an intent

03/15/11 Dr B Ratan Reddy, RGBS 7

 Building a Vision: Stage I
The Organizational Debate

FOR M GROUPS & TRAIN CONDUCT OPEN

FACILITATORS FACILITATORS SESSIONS

CREATE CONDUCT VALUE

TASKS SESSIONS

ORGANIZE TASK
SESSIONS

ALIGN SYSTEMS CRAFT VALUES TEST FOR

TO VALUES STATEMENT READINESS

03/15/11 Dr B Ratan Reddy, RGBS 8

 Building a Vision: Stage II
The Top Management Preparation

CONDUCT BEST
PRACTICES
SESSION

CONDUCT
STUDY OTHER LEADERSHIP &
ORGANIZATIONS TEAM BUILDING
SESSIONS

CONDUCT
VALUES
SESSIONS

VALIDATE SET TOP

AGAINST VALUES MANAGEMENT
STATEMENT OBJECTIVES

03/15/11 Dr B Ratan Reddy, RGBS 9

 Building a Vision: Stage III
The Strategic Search

EXPLORE AND ANSWER THE

EXPAND CRITICAL
CONTEXT QUESTIONS

WHAT DO WE
INDUSTRY WANT TO BE?

WHAT DO WE
TECHNOLOGY WANT TO BE
KNOWN FOR?
COMPETENCE

CONSUMERS WHY DO WE
EXIST?

WHAT DO WE
COMPETITION WANT TO
CONTRIBUTE
AND TO WHOM?
03/15/11 Dr B Ratan Reddy, RGBS 10
 Building a Vision: Stage IV
The Formal Construction

SELECT CROSS-
CRAFT CRITICAL PRESENT THE
HIERARCHICAL
ANSWERS INTO STATEMENT TO
& CROSS-
COMPELLING THE
FUNCTIONAL
STATEMENT ORGANIZATION
TEAM

SELECT PREPARE
IMPLEMENT THE
COMMUNICATION COMMUNICATION
ROLL-OUT
MEDIA PLAN

SET DATE FOR RULE OUT SCAN

REVIEWING THE OPTIONS THAT BUSINESS
STRATEGIC CONTRADICT OPPORTUNITIES
INTENT VISION

03/15/11 Dr B Ratan Reddy, RGBS 11

 Building a Vision: Stage V
The Follow Up

TRANSLATE CREATE
VISION INTO MILESTONES
GOALS CRAFT
STRATEGY

COLLECT
INPUTS

QUANTIFY
STRATEGIES
TRANSLATE
INTO
RE-ORIENT
SECTIONAL, SCAN
RE-ALIGN
APPRAISAL
DEPARTMENTAL, BUSINESS
PROCESSES
SYSTEM OPPORTUNITIES
AND INDIVIDUAL
TARGETS

SUPPORT VISION
WITH DECISIONS

03/15/11 Dr B Ratan Reddy, RGBS 12

 Some Vision Statements
RALLIS INDIA BATA
To provide the farmer To achieve success and
with a package of become the biggest and
inputs and services for most skilful multiple
optimum utilization of retailing and
balanced primary plant distributing
nutrients; micro- organization with a
nutrients; plant dynamic, flexible and
protection chemicals; market responsive
water; seeds; post- approach
harvest services; and
to develop a genuine
partnership with the
farmer a
03/15/11 Dr B Ratan Reddy, RGBS 13
 Lies, damned lies and Statistics

Companies with Vision Statements : 53%

Proportion of CEO’s who feel
Vision statements are necessary : 98.4 %
Proportion of employees who feel
Vision statements are necessary : 87.5 %
CEO’s choice of area most benefited
by Vision statement : Product
quality
Employees’ choice of area most
benefited by Vision statement : Growth
Source: Business Today-Gallup MBA
Survey, December 1996
03/15/11 Dr B Ratan Reddy, RGBS 14
 Lies, damned lies and Statistics
Areas Considered greatest
ITEM beneficiaries
SENIOR MIDDLE JUNIOR OTHERS
MANAGERS MANAGERS MANAGERS
FINANCIAL 9.8% 4.8% 13.1 % 10.1 %
PERFORMANCE
MARKET 14.8 % 14.5% 19.7 % 18.1%
PERFORMANCE
PRODUCT 19.7% 25.8 % 21.3% 13.1 %
QUALITY
SENSE OF 8.2% 6.5% 6.6 % 7.5 %
BELONGING
ORGANIZATIONA 23.0 % 16.1 % 18.0 % 20.5 %
L GROWTH
STRATEGY 13.1 % 14.5 % 6.6 % 0
FORMULATION

Source: Business Today-Gallup MBA

Survey, December 1996
03/15/11 Dr B Ratan Reddy, RGBS 15
 The Continuum

No Vision Vision led

Fashion
statement

03/15/11 Dr B Ratan Reddy, RGBS 16

 The Fashion statement
A Mission statement is defined as “a long
awkward sentence that demonstrates
management’s inability to think clearly”. All good
companies have one.

If for some reason the Company’s Mission

statement does not cause a turnaround in
profitability, you might need a Vision statement.
In stark contrast to the detailed road map
provided by a Mission statement, a Vision
statement is more of a “high level” guide for the
Company.

03/15/11 Dr B Ratan Reddy, RGBS 17

 The Fashion statement

The first step in developing a Vision Statement

is to lock the Managers in a room and have
them debate what is meant by a ‘Vision
Statement’ and how exactly it differs from a
‘Mission Statement’ or a ‘Business Plan’ or
‘Objectives’. These are important questions,
because one wrong move and employees will
start doing ‘vision things’ when they should be
doing ‘mission things, and before long it will be
impossible to sort it all out.

03/15/11 Dr B Ratan Reddy, RGBS 18

 The Fashion statement

The debate over the definition of ‘vision’ will

end as soon as the participants become too
tired and cranky to enjoy belittling each
other’s intelligence. At that point somebody
will start suggesting various visions just to get
the meeting over with. All good Vision
Statements are created by groups of people
with bloated bladders who would rather be
doing anything else.

03/15/11 Dr B Ratan Reddy, RGBS 19

 The Fashion statement

You know you have a rockin’ Vision Statement

when it inspires the employees to think of
themselves as being involved in something much
more important than their pathetic underpaid
jobs, when they feel part of a much larger
plan – something that can shape the society
they live in.

03/15/11 Dr B Ratan Reddy, RGBS 20

03/15/11 Dr B Ratan Reddy, RGBS 21
 Peter F Drucker

“To organize the

way work is done, you have to
begin with the specific job, then the
information input, and finally the
human relationships
needed to get the
job done.”
03/15/11 Dr B Ratan Reddy, RGBS 22
An organization’s degree of complexity,
formalization and centralization is called its
organization structure

Complexity = extent of
differentiation
Formalization = extent the organization relies
on rules and procedures to direct the
behaviour of employees
Centralization = concentration of decision making
authority at the top
03/15/11 Dr B Ratan Reddy, RGBS 23
 Organization
structure

Mechanistic Organic
structure structure

Complexity, Complexity,
Formalization, Formalization,
Centralization - Centralization -
HIGH LOW

Simple/Matrix/Network/
Functional/Divisional
03/15/11
Taskforce/Committee
Dr B Ratan Reddy, RGBS 24
 A Functional structure is one
that groups similar or related
occupational specialties
together;
A Divisional structure is one
that is made up of autonomous
self-contained units
A Simple structure is low on
complexity and formalization
but high on centralization;
A Matrix structure is one that
assigns specialists from
functional departments to work
on one or more projects that
are led by a project manager;
03/15/11 Dr B Ratan Reddy, RGBS
A Network structure is a
small centralized
organization that relies on
other organizations to
perform its basic business
functions on a contract basis;
A Taskforce structure is a
temporary structure created
to accomplish a specific,
well-defined, complex task
that requires the involvement
of personnel from other
organizational subunits;
A Committee structure is
one that brings together a
range of individuals from
across functional lines to
deal with problems
25
 Functional Departmentalization: Grouping
activities by functions performed
Product
Departmentalization: Grouping activity by
product line
Customer
Departmentalization: Grouping activities on the
basis of common customers
Geographic
Departmentalization: Grouping activities on the
basis of territory
Process
Departmentalization: Grouping activities on the
03/15/11 basis of product DrorBcustomer
Ratan Reddy,flow
RGBS 26
 FUNCTIONAL STRUCTURE

President

Vice Vice Vice Vice

President - President - President - President -
Manufacturing Marketing Finance HR

03/15/11 Dr B Ratan Reddy, RGBS 27

 DIVISIONAL STRUCTURE

Chairman

Director - Executive
Director Director -
Agri-Group Energy
Group
Corp
. Plg
CEO CEO Corp. CEO CEO
Agrichem Fin Thermal Hydel
Seeds
Corp
CEO CEO HR
FE
Corp
Urea
Legal

03/15/11 Dr B Ratan Reddy, RGBS 28

 SIMPLE STRUCTURE

Nargis

Sharmila Madhuri Aishwariya

Rekha Sridevi
Tagore Dixit Rai

03/15/11 Dr B Ratan Reddy, RGBS 29

 MATRIX STRUCTURE

Manufacturing Marketing Finance Human Resource

Urea

Seeds

Agrichem

FE

03/15/11 Dr B Ratan Reddy, RGBS 30

 NETWORK STRUCTURE

Contract Franchisee
Manufacturing Sales
facility agencies
CORPORATE
EXECUTIVE
GROUP

Commissioned Independent R
Outsourced
After Sales & D and
transaction
Services Consultancy firm
processing

03/15/11 Dr B Ratan Reddy, RGBS 31

 The One Thing That Seems
Constant Is Change
. . .AND THE MOST IMPORTANT
THING ABOUT CHANGE IS . . .

. .THE RATE OF CHANGE

03/15/11 Dr B Ratan Reddy, RGBS 32

anage change, the world is moving towards st

That deliver results with speed

That deliver results with efficiency
That make business sense

03/15/11 Dr B Ratan Reddy, RGBS 33

 HOW?
By creating IT enabled structures where:
Information flow is through internet/intranet
Work flow is through intranet
Transaction processing takes place online & in real time
By pushing decision-making to the employee closest to the customer
Where decisions can’t be pushed down, reducing the time for decision-making by:
De-layering
Increasing the span of control
Outsourcing to specialists
Reducing flab
At the same time addressing organizational interests & employee aspirations
through:
Job enlargement
Multi-skilling
03/15/11 Dr B Ratan Reddy, RGBS 34
 Structural Revolution….
FROM PYRAMIDS TO PLANES TO WEBS

P R E S I D E N T & C E O

P R E S I D E N T
V P V P V P
C O M M E R F C I NI A A L N C EM A R K T . P R O C E S S O W P NR EO RC E S S O W P NR EO R C E S S O W N E R
O R D E R F U L L FO I RL MD E RN T G E N P E R R O A DT I U O C N T D E V E L O P

03/15/11 Dr B Ratan Reddy, RGBS 35

FUTURE ORGANIZATION -
how would it look like?

• Flatter Structure
• Change from function based to process based
• Customer -centric structure
• Flexible roles - Ameoba structures
• Need for multiskilling
• Lateral promotions for breadth of knowledge
• Constant upgradation of competencies, skills
& knowledge
• People focus - the key driver

03/15/11 Dr B Ratan Reddy, RGBS 36

 20th Century Organization
of the Workplace

• Linear sequence
• Success depends on
the stability of each
R & Development
stage of production
Manufacturing
• Non-performing Marketing
units effect entire Sales
effort Service

03/15/11 Dr B Ratan Reddy, RGBS 37

 21st Century Organization
of the Workplace

• Flexible linkages
• Success depends on
R & D (U.S.)
the dynamic Engineering
exchange between (India)
units Marketing Customers

• Non-performing
units are more easily Manufacturing
(Asia)
replaced
Sales Service

03/15/11 Dr B Ratan Reddy, RGBS 38

 The Shifting structures of
Success
20th Century 21st Century
• Centralized • Decentralized
• Linear • Webbed Linkages
• Closed Boxes • Feedback Loops
• Discrete Identities • Convergence
• Stable • Self-correcting
• Competition • Coopetition
• Body of • Always Learning
Knowledge

03/15/11 Dr B Ratan Reddy, RGBS 39

03/15/11 Dr B Ratan Reddy, RGBS 40
 COMPETENCY DEFINED

It is a
combination of critical
behaviours, traits, motives, knowledge, skills and
applied thought which lead to excellence in performance
or which distinguishes superior
performance from average
performance

03/15/11 Dr B Ratan Reddy, RGBS 41

 THE ELEMENTS OF COMPETENCY

KNOWLEDGE & INSIGHT: Refers to

KNOWLEDGE
&
INSIGHT
MOTIVES
TRAITS
facts, procedures and technical
information possessed by the individu

COMPETENCY MOTIVES: The underlying need patter

which drives the individual to
learn and perform
BEHAVIOUR SKILLS
THOUGHT TRAITS: The general disposition of th
person or response characteris
to various needs and demand

BEHAVIOR: The manner or conduct of the individual to the process o

learning.
THOUGHT: In this context refers to process of idea generation and
imagination
SKILLS: The demonstrated ability of carrying out an activity or a
procedure - a practiced ability
03/15/11 Dr B Ratan Reddy, RGBS 42
 INDIVIDUAL CONTEXT OUTCOMES SITUATION
• Aptitude • Org. structure • Applications
• Skills & Abilities • Hierarchic • Staffing
al levels
• Knowledge • HR
• Roles Planning
• Physical • Behaviours
competencies • Team
• Effective/
• Styles • Org. building
Ineffective
environment • Performan
• Personality • Observable/
• Life cycle ce
• Principles, values, Non-
appraisal
attitudes, beliefs, • Culture observable
spirituality • Training
&
• Interests Developm
ent

03/15/11 Dr B Ratan Reddy, RGBS 43

 APTITUDE

• VERBAL • MECHANICAL
• NUMERICAL • ARTISTIC
• SPATIAL • BUSINESS
• PHYSICAL • TECHNICAL

03/15/11 Dr B Ratan Reddy, RGBS 44

 SKILLS & ABILITIES

• SELF-
• THINKING MANAGEMENT
• INTERPERSONAL • CUSTOMER-
ORIENTATION
• ORGANIZATIONAL
• BUSINESS
• TECHNICAL/
OPERATIONAL • HUMAN
RESOURCE
• COMMUNICATION MANAGEMENT
• LEADERSHIP

03/15/11 Dr B Ratan Reddy, RGBS 45

 THINKING INTERPERSONAL

RESPECTING OTHERS
•IDENTIFYING LINKS • SHARING
• STRATEGIC THINKING INFORMATION
•GENERATING • BEING A TEAM-
CREATIVE IDEAS PLAYER
•ANALYZING • NETWORKING
PROBLEMS • INFLUENCING
•APPLYING COGNITIVE • NEGOTIATING WIN-
CAPABILITY WIN SITUATIONS
•COMMITTING TO • DIPLOMACY
ACTION
03/15/11 Dr B Ratan Reddy, •RGBS
RESOLVING CONFLICT 46
 ORGANIZATIONAL TECHNICAL/ OPERATIONAL

• WORK PLANNING • DEMONSTRATING

TECHNICAL/OPERATIO
• RISK-TAKING
NAL EXPERTISE
• RESOURCE
• WORKING WITH
MOBILIZATION
INFORMATION
• GETTING THE JOB TECHNOLOGY
DONE • USING EQUIPMENT &
• DEALING WITH TOOLS
CRISES
• MEASURING
PROGRESS
03/15/11 Dr B Ratan Reddy, RGBS 47
 SELF-MANAGEMENT
COMMUNICATIONS

• ACTING WITH
• ORAL
CONFIDENCE
COMMUNICATION
• INITIATIVE
• LISTENING
• MANAGING OWN
• WRITTEN
LEARNING
COMMUNICATION
• DEMONSTRATING
• SELLING THE
FLEXIBILITY
MESSAGE
• BEING SELF-
• COMMUNICATING IN
MOTIVATED
ONE’S SECOND
OFFICIAL LANGUAGE

03/15/11 Dr B Ratan Reddy, RGBS 48

 CUSTOMER-ORIENTATION BUSINESS

• USING FINANCIAL
• WORKING WITH INFORMATION
CUSTOMERS • WORKING WITHIN THE
• DELIVERING PRODUCTS & SYSTEM
SERVICES • MAKING BUSINESS
• FOLLOWING UP WITH DECISIONS
CUSTOMERS • GENERATING REVENUE
• CREATING RELATIONSHIPS • USING BUSINESS ACUMEN
• BUILDING PARTNERSHIPS
• MARKETING PRODUCTS &
SERVICES
• COMMITTING TO QUALITY

03/15/11 Dr B Ratan Reddy, RGBS 49

 HUMAN RESOURCE
MANAGEMENT LEADERSHIP

• MAKING A TEAM
• MANAGING CHANGE • DEVELOPING A VISION

• ENCOURAGING • PLANNING THE FUTURE

PARTICIPATION • FACILITATING SUCCESS
• ASSIGNING WORK • LEADING CHANGE
• MOTIVATING THE TEAM • PROMOTING A HEALTHY
• BUILDING A TEAM WORK PLACE
• DEVELOPING TALENT • INSPIRING

• MENTORING • USING ORGANIZATIONAL

KNOW-HOW
• PROVIDING PERFORMANCE
FEEDBACK
• VALUING DIVERSITY
• TAKING CARE OF TEAM Dr B Ratan Reddy, RGBS
03/15/11 50
MEMBERS
 KNOWLEDGE

• JOB-SPECIFIC
• GENERAL KNOWLEDGE KNOWLEDGE
• PROFESSION-SPECIFIC • LEVEL-SPECIFIC
KNOWLEDGE KNOWLEDGE
• ORGANIZATIONAL
KNOWLEDGE

03/15/11 Dr B Ratan Reddy, RGBS 51

 PHYSICAL COMPETENCIES

PHYSICAL
PROFICIENCY PSYCHOPHYSICAL
CAPACITIES
• STRENGTH
SENSORY
• STAMINA
• COORDINATION ACTIVITY
• RESISTANCE TO
• EQUILIBRIUM • VISUAL
STRESS
• DEXTERITY • AUDITORY
• ENERGY
• FLEXIBILITY • TACTILE
• HEALTH
• PRECISION • OLFACTORY
• VIGILANCE
• STATURE • TASTE
• SELECTIVE
• REACTION TIME ATTENTION
• ENDURANCE
03/15/11 Dr B Ratan Reddy, RGBS 52
 FOR FOR
LEADERS/MANAGERS SUBORDINATES

DIRECTIVE RECEPTIVE
• DELEGATIVE • SELF-RELIANT
• PARTICIPATIVE • COLLABORATIVE
• CONSULTATIVE • INFORMATIVE
• NEGOTIATIVE • RECIPROCATING

03/15/11 Dr B Ratan Reddy, RGBS 53

 PERSONALITY

• SOCIAL ORIENTATION
• EMOTIONAL ORIENTATION
• RELATIONSHIP ORIENTATION
• GOAL ORIENTATION
• EXPERIENTIAL ORIENTATION

03/15/11 Dr B Ratan Reddy, RGBS 54

 PRINCIPLES, VALUES,
BELIEFS, SPIRITUALITY

PRINCIPLES BELIEFS
Empowerment Notions about reality which help individuals
Encouragement, Humility, Integrity,
make sense of their environment and help
Excellence Potential, Quality,
define casual links, such as control over the
Fairness, Service,
environment
Growth, Human Trustworthiness
Dignity, Honesty,
Patience

VALUES SPIRITUALITY
Justice, Order, Sense of
Productivity, accomplishment, The search for meaning, being and purpose
Security, Sincerity, Relationships, in all facets of life, including work
Truth, Wealth, Development of
Fame, Respect, talent, Effort,
Learning Generosity

03/15/11 Dr B Ratan Reddy, RGBS 55

 INTERESTS

• OCCUPATIONS DEALING WITH THINGS

• OCCUPATIONS DEALING WITH FACTS
• OCCUPATIONS DEALING WITH AESTHETICS
• OCCUPATIONS DEALING WITH PEOPLE
• OCCUPATIONS DEALING WITH PERSUASION
• OCCUPATIONS DEALING WITH
ADMINISTRATIVE MATTERS

03/15/11 Dr B Ratan Reddy, RGBS 56

03/15/11 Dr B Ratan Reddy, RGBS 57
 Manpower Planning is the process
by which management ensures that
it has the right number and kinds of
people at the right places and at the
right time who are capable of
effectively and efficiently
completing those tasks that will
help the organization reach its
overall objectives

03/15/11 Dr B Ratan Reddy, RGBS 58

 The manpower planning process comprises
three basic steps:
• Assessing current manpower
•Assessing future manpower requirements
•Developing a programme to meet the
future manpower requirements

03/15/11 Dr B Ratan Reddy, RGBS 59

 Current manpower can be assessed through:
•Manpower/ Skills inventory
•Job analysis
Manpower/skills inventory tells the management
what individual employees can do; job analysis
defines jobs and the behaviours necessary to
perform them (job analysis can also be used to
determine future manpower requirements)

03/15/11 Dr B Ratan Reddy, RGBS 60

 XYZ LIMITED
QUESTIONNAIRE FOR ORGANIZATION STUDY
0 11. TO WHOM DO YOU REPORT

NAME JOB TITLE

INSTRUCTIONS: FOR VISISHT’S USE ONLY

1. Please read the questionnaire carefully

2. Fill the questionnaire giving PRECISE, CLEAR AND
COMPLETE DETAILS.
3. Fill it in your OWN HANDWRITING
4. You may use additional sheets wherever necessary 12. WHO REPORT TO YOU
5. Kindly return the completed questionnaire in a
SEALED ENVELOP to OFFICE OF V.P. HRD NAME JOB TITLE

PERSONAL DATA

1. NAME

2. AGE

3. DESIGNATION 13. DESCRIBE IN BRIEF THE NATURE OF WORK PERFORMED BY YOUR

DEPARTMENT / SECTION
4. DIVISION / DEPARTMENT

5. SECTION

6. LOCATION

7. QUALIFICATION

YEARS MONTHS

8. LENGTH OF SERVICE BEFORE

JOINING THE ORGANIZATION

9. LENGTH OF SERVICE WITH

ORGANIZATION

10. LENGTH OF SERVICE IN THE

PRESENT POSITION

03/15/11 Dr B Ratan Reddy, RGBS 61

 1 3. M E N T IO N IN D E T A IL T H E N A T U R E O F Y O U R W O R K IN T H E 14. THE TASKS YOU PERFORM PERSONALLY ON A REGULAR BASIS FOR CARRYING
OUT YOUR RESPONSIBILITIES. ALSO PLEASE INDICATE THE APPROXIMATE TIME
D E P A R T M E N T , S E C T IO N IN T E R M S O F : SPENT ON EACH OF THE TASK
TASKS
T H E F O C U S A R E A S / P R IO R IT IE S / S U C C E S S F A C T O R S R E L A TDAILY
ED TO
YO UR JO B

Y O U R D IR E C T R ES PO N S IB IL IT IE S

WEEKLY

MONTHLY
D IR E C T R E S P O N S IB IL IT IES O F S U B O R D IN A T E S R E P O R T IN G YO U

03/15/11 Dr B Ratan Reddy, RGBS 62

QUARTERLY ANY SPECIAL TASKS YOU PERFORM FROM TIME TO TIME?

HALF YEARLY

KINDLY INDICATE THE KEY RESULT AREAS (KRA’S) / OBJECTIVES / TARGETS / GOALS
ASSOCIATED WITH YOUR JOB. MENTION QUANTITATIVE FIGURES WHEREVER
POSSIBLE

ANNUALLY

03/15/11 Dr B Ratan Reddy, RGBS 63

 11. LIST THE JOB TITLES INTERNAL TO YOUR ORGANIZATION, BESIDES
YOUR SUPERIORS AND SUBORDINATES, W ITH W HOM YOU ARE IN 11. LIST THE MEETINGS / COMMITTEES YOU ATTEND AS A ROUTINE
REGULAR CONTACT IN DISCHARGING YOUR W ORK INDICATING THE INDICATING THE PURPOSE OF THE MEETING, YOUR ROLE IN IT AND
PURPOSE AND FREQUENCY OF COMMUNICATION THE FREQUENCY

JOB TITLE PURPOSE FREQUENCY MEETING / PURPOSE ROLE FREQUENCY

COMMITTEE

12. LIST THE REPORTS YOU RECEIVE, THEIR PURPOSE FREQUENCY

12. LIST THE AGENCIES / BODIES / ORGANIZATION EXTERNAL TO YOUR
COMPANY, W ITH W HOM YOU ARE IN REGULAR CONTACT IN AND DISTRIBUTING DEPARTMENTS
DISCHARGING YOUR W ORK INDICATING THE PURPOSE AND
FREQUENCY OF SUCH CONTACTS. REPORT PURPOSE FREQUENCY DIST.
DEPARTMENT
AGENCY/ORGANIZATIONPURPOSE FREQUENCY

03/15/11 Dr B Ratan Reddy, RGBS 64

11. LIST THE REPORTS YOU PREPARE, THEIR PURPOSE, FREQUENCY
AND DISTRIBUTION
11. KINDLY INDICATE DETAILS OF DELEGATION OF FINANCIAL,
JOB TITLE PURPOSE FREQUENCY DISTRIBUTION
FUNCTIONAL ADMINISTRATIVE AND OTHER AUTHORITY FOR YOUR
POSITION, EITHER APPROVED OR AS PRACTICED.
(Eg. Purchase order approvals, Manpower/Recruitment approvals, Departmental
Expenditure, Capital/Revenue expenses, Leave sanctioning, Travel approval,
Material Rejection approval etc.)

03/15/11 Dr B Ratan Reddy, RGBS 65

 FORMATFORJOBDESCRIPTION
JOBDESCRIPTION HEROHONDAMOTORSLIMITED
JOBTITLE COMPANY HHML

REFERENCE DEPARTMENT

SECTION

A. PURPOSEANDSCOPE

B. DUTIESANDRESPONSIBILITIES

C. DIMENSIONSOFTHEJOB

D. AUTHORITY

E. WORKCONTACTS
♦ INTERNAL:
♦ EXTERNAL:

F. REPORTINGRELATIONSHIP

G. SUPERVISORYRESPONSIBILITIES

H. WORKCONDITIONS

I. MINIMUMREQUIREMENTS

J. KEYRESULTAREAS(KRAs)

03/15/11 Dr B Ratan Reddy, RGBS 66

 Programmes to meet future manpower
needs include recruitment, downsizing,
and training

03/15/11 Dr B Ratan Reddy, RGBS 67

 Manpower
Sourcing
Requisition

Socialisation Screening

Placement Interview

03/15/11 Dr B Ratan Reddy, RGBS 68

 Manpower
Requisition

•As per GENERAL INFORMATION JOB SPECIFICATIONS/

structure Designation, Grade, Section/Department, PERSON PROFILE
Location, Designation of person to whom Qualifications: Essential/Desirable
•As per the incumbent will report, Designations of Experience: Duration/Nature
budget persons who will report to the incumbent Specific Exposure
•Value JOB PROFILE/ DESCRIPTION/KEY RESPONSIBILITIES
addition
•At present Three years from now

COMPETENCIES PROFILE
Behavioral Technical Managerial

VACANCY PARTICULARS •Is it provided for in the approved budget

• Is this a new vacancy/replacement, • If it is a replacement, name and
designation of the person against whom the
• If it is a new vacancy, the benefit/value
replacement is sought
addition that would accrue to the Company
by its value-addition • How was the vacancy caused
• Is it provided in the approved structure • By what date is the vacancy to be filled
03/15/11 Dr B Ratan Reddy, RGBS 69
 Sourcing

•Internal Sourcing from within; transfer; spiral-growth; stigma of being unwanted;

search turf mentality; maturity required
•Internal Sourcing from within; transparent; turf mentality; maturity required
advertisement
•Data bank Unsolicited and solicited applications

•Referrals Unsolicited and solicited referrals

•Placement
Cost and time element; functional/industry specialization
agencies
•Head- Focused; time consuming; high degree of analytical skills; ethicality;
hunting selling skills

•External Cost; time; 97% trash

advertisement
•Internet Cost/time-effective; low penetration; good for high-tech positions

•Employment Mandatory
exchange
03/15/11 Dr B Ratan Reddy, RGBS 70
 Objective:
Screening To induct the best talent to meet business requirements keeping in view a long-term
perspective matching competencies with positions.

•Within Policy Statement:

policy
To achieve the objective, the Group shall:
framework
• Consider candidates who have a consistently good academic record from
•As per institutions known for their high standards.
MPR
• Consider candidates who have relevant experience and a consistently good track
•Technical record.
competence • Other things being equal, at the Commercial/Technical staff level, give priority
•Aptitude to candidates belonging to or domiciled in the states that the SBU operates in.
• Except as warranted by the nature of work and obligations under law, not to
•Group discriminate on the basis of gender or any other consideration.
Discussion
• Other things being equal, not to bar the employment of relatives of existing
•Prelim. employees. (The number of relatives that can be employed shall be restricted to one;
relatives shall be considered for employment only in another SBU)
Interview(s)
Consider re-employment of ex-employees on merit of each case with vetting by
•Medical Group HPD Chief and specific approval from Group Chairman. (Re-employment
shall be considered only if he/she had left due to career stagnation)

03/15/11 Dr B Ratan Reddy, RGBS 71

 Competency Description

Interview Achievement Likely to display high sense of personal responsibility for

Motivation achievement of results
Job Knowledge: Possesses sound technical and conceptual knowledge of area
•Multiple of work

•Layer-wise
Problem Solving Likely to quickly locate, identify and resolve the real issues
•Competencies behind apparent problems

Planning: Likely to set appropriate objectives and goals, determine

•Growth action plans to achieve the same and utilize resources
potential judiciously for achievement of targets

•Strengths Communication/ Conveys thoughts, feelings and viewpoints in a clear,

Expression concise, logical and accurate manner
•Weaknesses
Assertiveness Likely to exert influence appropriately without being
•Value aggressive/dominating
addition
Team Spirit: Likely to participate willingly and cooperate wholeheartedly
•Retainability with other members of the team
Objectivity Likely to take a rational and logical approach to all issues,
without bias and prejudice
Openness Likely to share and accept suggestions, ideas and opinions in
a frank and candid manner
Self development Committed to personal growth – likely to consistently make
03/15/11 Dr B Ratan
effortsReddy,
to growRGBS
and develop 72
 Placement

•Grade
Mis-alignment leads to :
•Salary  Under / Over employment

•Equity  Burnout

•Hi-talent  Frustration / Gossip

•Flexibility

Price the incumbent

right.
 Under-Pricing gives you a
rolling stone.
 Over-Pricing sets others
rolling.
03/15/11 Dr B Ratan Reddy, RGBS 73
 Socialisation

•Joining The ‘RC’ syndrome

report
•Joining The ‘RC’ syndrome repeated
formalities
•Induction Facilitate acceptance
Get - Set - Go
 Get set : HR/ Line responsibility
 Go : Incumbent's responsibility

Office timings
9.00 to 17.00
Off days on Sun
2nd & 4th Sat

03/15/11 Dr B Ratan Reddy, RGBS 74

03/15/11 Dr B Ratan Reddy, RGBS 75
 DEFINITION

Style or Culture conveys the assumptions and

norms governing , values, activities and goals.
It tells employees how things should be done
and what is important. It determines what they
see and how they respond to their world. It
impacts all the other six ‘S’s’.It is reflected in
dimensions like individual initiative/authority,
risk tolerance, direction, integration,
management support, control, identity, reward
system, conflict tolerance and communication
patterns
03/15/11 Dr B Ratan Reddy, RGBS 76
 ITS FEATURES

• Culture is to an organization as personality is to an

individual
• Culture is a perception
• The perception lies in the organization, not in the
individual
• Irrespective of background or level, individuals tend to
describe culture in similar terms
• Culture is concerned with how employees perceive the
organization, not with whether they like it or not. It is
descriptive rather than evaluative
03/15/11 Dr B Ratan Reddy, RGBS 77
 TWO SCHOOLS OF THOUGHT

• Member identity - job or organization

• Emphasis - individual or group • Openness
• Focus - task or people • Confrontation
• Unit integration - independent or
• Trust
interdependent
• Control - loose or tight • Authenticity
• Risk tolerance - high or low • Proactivity
• Reward criteria - performance or • Autonomy
others
• Collaboration
• Conflict tolerance - high or low
• Experimentation
• Orientation - means or ends
• Systems
03/15/11 focus - internal orRatan
Dr B external
Reddy, RGBS 78
 WHAT THE TERMS MEAN

• Member Identity: Degree to which employees

identify with the organization as a whole rather
than with their particular work group or field of
professional expertise
• Group Emphasis: The degree to which work
activities are organized around groups rather
than individuals
• People Focus:The degree to which management
decisions take into consideration the effect of
outcomes on people within the organization
03/15/11 Dr B Ratan Reddy, RGBS 79
 WHAT THE TERMS MEAN

• Unit Integration: Degree to which units within

the organization are encouraged to operate in a
coordinated or interdependent manner
• Control: The degree to which rules, regulations,
ad direct supervision are used to oversee and
control employee behaviour
• Risk tolerance: Degree to which employees are
encouraged to be aggressive, innovative and risk
seeking

03/15/11 Dr B Ratan Reddy, RGBS 80

 WHAT THE TERMS MEAN

• Reward Criteria: The degree to which rewards

such as salary increases and promotions are
allocated according to employee performance
rather than seniority, favouritism or other
nonperformance factors
• Conflict tolerance:Degree to which employees
are encouraged to air conflicts and criticisms
openly

03/15/11 Dr B Ratan Reddy, RGBS 81

 WHAT THE TERMS MEAN

• Means-ends orientation: The degree to which

management focuses on results or outcomes
rather than the techniques and processes used to
achieve those outcomes
• Open-system focus: The degree to which the
organization monitors and responds to changes
in the external environment

03/15/11 Dr B Ratan Reddy, RGBS 82

 THE CULTURE CONTINUUM

Member identity
Job Organization
Group emphasis
Individual Group
People focus
Task People
Unit integration
Independent Interdependent
Control
Loose Tight
Risk tolerance
Low High
Reward Criteria
Performance Other
Conflict tolerance
Low High
Means-ends orientation
Means Ends
Open-system focus
Internal External
03/15/11 Dr B Ratan Reddy, RGBS 83
 CASE DISCUSSION ONE
XYZ is a Urea manufacturing firm. There are extensive rules and regulations that
employees are required to follow. Every employee has specific objectives to achieve in
his job. Managers supervise employees closely to ensure that there are no deviations.
People are allowed little discretion in doing their jobs. Employees are instructed to
bring any unusual problems to their superior, who will then determine the solution. All
employees are required to communicate through formal channels. The management has
little confidence in the honesty or integrity of its employees and hence imposes very
tight controls. Managers and employees alike tend to be hired by the organization early
in their careers and rotated into and out of various departments on a regular basis. They
are generalists rather than specialists. Effort, loyalty, cooperation, and avoidance of
errors are highly rewarded
What impact will the above have on What impact will it have on employee
its business strategy? productivity?
How will it impact the organization Are employees likely to be committed?
structure?
What impact will it have on cost of
How will it impact the skills and production?
competencies of employees?
What impact will it have on creativity?
Are there likely to be any problems
in hiring and retaining talented What will employee morale be like?
03/15/11employees? Dr B Ratan Reddy, RGBS 84
 CASE DISCUSSION TWO

ABC is a Urea manufacturing firm. There are few rules and regulations. Employees are
seen as hard-working and trustworthy, and supervision is loose. Employees are
encouraged to solve problems themselves but are free to consult their superiors when
they need assistance. Top management downplays authority differences. Employees are
encouraged to develop their unique special skills. Interpersonal and interdepartmental
differences are seen as natural occurrences. Managers are evaluated not only on their
department’s performance but also on how well their department coordinates its activities
with other departments in the organization. Promotions and other valuable rewards go to
the employees who make the greatest contribution to the organization, even when those
employees have strange ideas, unusual personal mannerisms, or unconventional work
habits.
What impact will the above have on What impact will it have on employee
its business strategy? productivity?
How will it impact the organization Are employees likely to be committed?
structure?
How will it impact the skills and What impact will it have on cost of
competencies of employees? production?
Are there likely to be any problems What impact will it have on creativity?
in hiring and retaining talentedDr B Ratan Reddy,
03/15/11 What will employee morale be like?
RGBS 85
employees?
 CASE ANALYSES – SOME POINTS
Element XYZ Limited ABC Limited

Strategy •Entrepreneur led; harps on •Manager led; harps on internal

external reality – where is the reality – what resources do I
opportunity,how do I capitalize on control, what structure determines
it,what resources do I need,how our relationship to the market, how
do I gain control over them,what do I minimize the impact of others
structure is best? on my ability to perform, what
•Functional level strategy based opportunity is appropriate?
on perception of what ‘owner’ •Functional level strategy based on
will like perception of what is best for the
•Turf mentality organization
•Cross-functional

Structure •Multi-layered •Possible to have flat structure

•Empire building •Possible to have organic structures
•Generally mechanistic •Low formalization
•High formalization •Low complexity
•High complexity
03/15/11 Dr B Ratan Reddy, RGBS 86
Element XYZ Limited ABC Limited
Skills •Jack of all trades, master of none •In house experts available
•High degree of politicking •Greater camaraderie

Staff •Several non-professionals present •Mainly professionals present

•Several non-value adding
positions created

Style •Bureaucratic •Informal

•High on accountability •Tendency for low accountability

Systems •Standing orders/Code of •Emphasis on communication

Discipline •Heavy investment in training
•Performance evaluation •Performance management
•Rewards for loyalty •Self review and reporting
•Review systems
•Elaborate security
03/15/11 Dr B Ratan Reddy, RGBS 87
03/15/11 Dr B Ratan Reddy, RGBS 88
 WHAT IS PERFORMANCE APPRAISAL

The
evaluation of
an individual’s work performance
in order to arrive at
objective personnel
decisions

03/15/11 Dr B Ratan Reddy, RGBS 89

Purpose of Performance Appraisal
Findings of a study

Asia (%) West (%)

Compensation 90 71
Promotion 47 25
Performance Feedback 21 30
Training 19 10
Documentation 21 11
Transfers 0.7 8.0
Human Resources Planning 2.0 6.0
Dismissal 1.2 2.0
Research - 1.5
Retrenchment - 0.3
Performance Improvement 26 55

03/15/11 Dr B Ratan Reddy, RGBS 90

 Methods of Performance Appraisal:

•Written Essays: Descriptive pen pictures of strengths & weaknesses

•Critical Incidents: Evaluating behaviors that result in effective & ineffective job
performance
•Graphic Rating Scales: Ratings on a 1-5 scale on factors such as quantity,
quality, loyalty etc.
•Behaviorally Anchored Rating Scale: A cross between Critical incident &
Graphic rating scale
•Multi Person Comparisons:
•Group Order Ranking: Quota system, I.e. 5% Outstanding, 10% Superior,
20 % Above Average etc.
•Individual Ranking: Ranking system used in schools
•Paired comparisons: Comparison of each employee with every other
employee with ranking based on number of superior ratings an individual
achieves
03/15/11 Dr B Ratan Reddy, RGBS 91
 PERFORMANCE APPRAISAL TYPES

• MANAGEMENT BY OBJECTIVES 42%

• GRAPHIC RATING OF TRAITS 74%
• RANKING 15%
• FORCED CHOICE 18%
• WEIGHTED CATEGORY LIST 12%
• CRITICAL INCIDENT ANALYSIS -
• ESSAY EVALUATION -
• BEHAVIOURALLY ANCHORED RATING 27%
• PAIRED COMPARISON 7%
• QUESTIONNAIRE METHOD 3%
• WORK PROFILING 7%
• COMPETENCY BASED ASSESSMENT 23%
03/15/11 Dr B Ratan Reddy, RGBS 92
 WHY APPRAISAL SYSTEMS FAIL

• The appraisal system is used to decide pay

• ‘Appraisal’ means ‘the form is filled out’
• Employees think that appraisal system belongs to
‘management’ and managers think it belongs to HR
• The interview happens only once a year
• They both hide behind rigid mechanistic scales and
numbers
• The appraiser’s subjective feeling about the
appraisee

03/15/11 Dr B Ratan Reddy, RGBS 93

 DO WE NEED PERFORMANCE APPRAISAL?

03/15/11
NO Dr B Ratan Reddy, RGBS 94
 WHY?

PERFORMANCE APPRAISALS ARE LAG

INDICATORS; THEY REPORT ON THE
CONSEQUENCES OF PAST ACTIONS

SO, WHAT IS REQUIRED?

A SYSTEM THAT FOCUSES ON LEAD
INDICATORS, THE DRIVERS OF FUTURE
PERFORMANCE, THE KEY PERFORMANCE
AREAS

03/15/11 Dr B Ratan Reddy, RGBS 95

 WHAT ARE LEAD INDICATORS?

They are the drivers of performance

They are what ‘actualize’ profits

03/15/11 Dr B Ratan Reddy, RGBS 96

 Performance Management System

Performance Review

Potential Development
Assessment Needs

03/15/11 Dr B Ratan Reddy, RGBS 97

 PERFORMANCE APPRAISAL VS POTENTIAL APPRAISAL

• Expressed Abilities • Innate abilities

• Tangibles • Intangibles

• What one has done • What one can do

• Where one is • Where one can go

• What one is • What one can be

• For reward • For advancement

03/15/11 Dr B Ratan Reddy, RGBS 98

 The Performance
Value Chain
Individual - the processFunction
Team of / Dept. Organization’s
Performance Performance Performance Performance
performance accrual
  
 
  
 
  


Supporting Vision, Mission,

Strategy, Strategy,
KRA/KPI/KPA MOPs
Dept. KRA Objectives,
Turnover etc.,

Defining Communicating
03/15/11 Dr B Ratan Reddy, RGBS 99
rformance goals have to be
SPECIFIC
MEASURABLE
AGREED (and ACHIEVABLE)
REALISTIC (and RELEVANT)
TIMED
03/15/11 Dr B Ratan Reddy, RGBS 100
CHARACTERISTICS OF A GOOD APPRAISAL

• Making strengths of people productive and

weaknesses inconsequential to organizational
performance
• Take into account psychology at work
• Openness
• Clear goals / targets and standards of
performance
• Post appraisal counseling
• Follow-up action with special emphasis on
development
03/15/11 Dr B Ratan Reddy, RGBS 101
 REVIEW OF APPRAISAL INTERVIEW

• Have you achieved your objectives ?

• Were the interviews open?
• Were the discussions constructive ?
• Have you gained a greater understanding of
your subordinate ?
• Are the future targets of individuals
clearer ?
• Have your subordinates’ expectations been
met ?
03/15/11 Dr B Ratan Reddy, RGBS 102
 Effective Counseling

•Empathy
•Warmth
•Respect
•Concreteness
•Genuineness
•Self disclosure
•Confrontation
•Immediacy of relationship
03/15/11 Dr B Ratan Reddy, RGBS 103
 Sequential Process of Performance
Counseling

•Rapport Building
•Listening / feeling concerns, problems
•Empathy
•Exploration
•Problem Identification
•Diagnosis

03/15/11 Dr B Ratan Reddy, RGBS 104

 What is a 360 degree process

"It is the systematic collection and feedback

on behavioral traits and performance of an
individual or group, derived from a number
of stakeholders associated with their job
aimed at improvement in their performance
standards.”

03/15/11 Dr B Ratan Reddy, RGBS 105

 Devpt. Needs
Other’s Perception
Bad Bad
News; News;
Surprisin Not
g Surprisin
g
Good Good
Strengths

News; News;
Not Surprisin
Surprisin g
g
Strengths Devpt. Needs
03/15/11 Dr B Ratan Reddy, RGBS 106
Your Perception
03/15/11 Dr B Ratan Reddy, RGBS 107
TRADITIONAL VS. CONTEMPORARY APPROACH
Traditional Approach
• Region-cum-industry
• Internal equity sole
consideration
• Pay scales linked to grade
• Grade-based annual
increments
• Increment-based reward
• Largely fixed pay
03/15/11 Dr B Ratan Reddy, RGBS
Contemporary Approach
• Based on external, internal and
individual equity
• Salary-broadbanding linked to
level
• Mix of fixed and variable pay
• Increments limited to inflation-
proofing
• Rewards based on individual,
functional/departmental and
company performance
• Cafeteria approach
108
 Impact of strategic goals of the organization
STRATEGIC GOAL IMPACT ON COMPENSATION

Set up the Plant within 18 months Pay what will attract the Key
members of the Project team

Break-even within 24 months ofPay the least possible

commencing commercial production

20 % growth, compounded over thePay between the 40th . & 50th percentile
next 3 years of the industry average

To become India’s # 1 within 3 years Top performers to receive industry

best

To become World’s # 1 within 3 years Build in scope for dollar payments

03/15/11 Dr B Ratan Reddy, RGBS 109

 Impact of structure on Compensation

• When there is a high degree of complexity, there will be several

grades and salary bands
• When there is a high degree of complexity, there are likely to be
several components in the compensation structure
• Where there is geographic departmentalization, there are likely to be
multiple compensation structures even for a single grade
• Depending on the extent of complexity, it is possible, even desirable
to have varying philosophies of compensation

03/15/11 Dr B Ratan Reddy, RGBS 110

 Impact of the External Environment

• At what levels do you induct freshers

• From which institutes/ colleges
• Where do you attract experienced talent from
• To whom do you lose talent and why
• Are those organizations in India or abroad
• The Region-cum-Industry equation
• Compensation Clubs
• The basket of comparators
03/15/11 Dr B Ratan Reddy, RGBS 111
 Impact of the Internal Environment
• Is the organization task-focused or people-focused or is it a
combination of both
• Does the organization favour interdependence or independence
• What is the basis of employee rewards
• Does the organization face conflict head-on or does it buy its way
through
• Does it have an open-system focus, i.e. consciousness about the
external environment
• Is it socialistic in its approach or does it favour differentials

03/15/11 Dr B Ratan Reddy, RGBS 112

 Impact of the nature of Staff

• If the organization requires Specialists, compensation

levels will reflect this
• The supply-demand position for these Specialists will
determine if the compensation levels are high or low
• Where demand exceeds supply only in the short-term,
the compensation philosophy of the organization is likely
to reflect this
• Run of the mill staffing patterns will generally result in
run of the mill compensation patterns
03/15/11 Dr B Ratan Reddy, RGBS 113
 PWC Model
BU Performance
Key
Team Projects,
Contributor
eg New Business
bonus
Development

Individual Team
Incentive Incentive

Fixed Compensation
•Rate for the job
•Market Value of individual
03/15/11 Dr B Ratan Reddy, RGBS 114
 What When How How much

Position Organization Industry Cycle Evaluation •Pay for position

evaluation Committee
•Annual increase

Person Person Person Cycle 90 degree to •Potential of

evaluation 360 degree person
•Market value of
person

Performance Business •Pay for

Business Cycle Annual performance
evaluation Planning
workshops & •No merit increase
evaluation •No promotion

03/15/11 Dr B Ratan Reddy, RGBS 115

 External Equity : Focus on Organizational position vis-à-
vis the industry
Internal Equity : Focus on dimensions of culture
Individual Equity : Employee profile
Hot skills
Performance-linked pay
Individual
Team
Company

03/15/11 Dr B Ratan Reddy, RGBS 116

 PERFORMANCE LINKED PAY

Level Individual Team Company

Junior 70% 20% 10%

Middle 50% 30% 20%

Senior 10% 20% 70%

03/15/11 Dr B Ratan Reddy, RGBS 117

 Compensation and the Law
• Thou shalt not pay less than the statutory minimum wage
• Thou shalt pay thy employees their remuneration by:
•The 7th .If thou employest less than 1000 employees
•The 10th if thou employest more than 1000 employees

• Deductions from salary shall not exceed 75%/66.67%

• Salaries shall be paid in cash
• All employees shall be issued a salary slip
• Particulars of salaries paid shall be maintained in a
Payment of Wages Register
03/15/11 Dr B Ratan Reddy, RGBS 118
 Compensation and the Law
•Thou shalt deduct PF @ 12% of the basic+DA and remit the
same by 15th
• Thou shalt deduct ESI as applicable and remit the same by
25th
• Thou shalt pay service compensation if thy Office is in AP
• Thou shalt pay Gratuity @ 15 days wages for every
completed year of service
• Thou shalt deduct Professional Tax and Income Tax as
applicable and remit the same by the 5th and 7th respectively
• Thou shalt make payment
03/15/11
to the Labour Welfare Fund
Dr B Ratan Reddy, RGBS 119
03/15/11 Dr B Ratan Reddy, RGBS 120
 REWARDS

INTRINSIC EXTRINSIC

Participate Opportunities Non

More Direct Indirect
in decision for personal financial
responsibility Compensation
making growth rewards Compensation

Greater job More Diversity of Preferred Impressive Basic Perks &

freedom & interesting activities Office titles benefits
discretion work furnishings salary

Assigned Performance
parking Preferred Pay for time
bonuses
spaces lunch hours not worked

Business Preferred Stock

Cards work options Protection
assignments programmes

Own Overtime &

Secretary holiday
premiums

Profit
03/15/11 Dr B Ratan Reddy, RGBS Sharing 121
 ANNUAL INCREMENTS OVERTIME
Copied from the You scratch my back and I’ll
Government/Public Sector scratch yours
No linkage to Strategy Sudhakar Reddy syndrome
implementation
Nandu Bhayya syndrome
Motivator ??

INCENTIVE SCHEMES
Traditionally created by Industrial Engineers
Misses the human element in most cases

03/15/11
Salary for attendance, incentive for work
Dr B Ratan Reddy, RGBS 122
 PROMOTIONS
Promote for potential, not for
performance
People grow to the level of
their incompetence
PERFORMANCE
BONUSES/ESOPS Idiots get promoted to
Management
Align with Strategy
implementation MISS
Recognise individual as well WORLD/UNIVERSE
as team
High people orientation
Likely to build long-term
Flatters the ego
commitment
Possibility of missing the wood
03/15/11 for the
Dr B Ratan Reddy, trees
RGBS 123
 TEAM Vs
INDIVIDUAL
JOB SCULPTING
Don’t talk team and reward
individual Aligns job to the
individual
Balance between team and
individual Takes care of need for
achievement
BRIBERY
Employee retention tool
One upmanship
Non monetary reward
Enlightened self-interest
“VRS” syndrome
03/15/11 Dr B Ratan Reddy, RGBS 124
 LONG SERVICE
AWARDS

RETENTION
TOOL

03/15/11 Dr B Ratan Reddy, RGBS 125

03/15/11 Dr B Ratan Reddy, RGBS 126
 WHAT ARE WE GOING TO LOOK AT

• Discipline in an Organizational Context

• Discipline Vs. Creativity
• Discipline and the law
• Standing Orders
• Conduct, Discipline and Appeal Rules

03/15/11 Dr B Ratan Reddy, RGBS 127

 WHAT ARE WE GOING TO LOOK AT

• Domestic Enquiry
• Enquiry Officer &
• Handling issues of Presenting Officer
discipline • Procedure – Charge,
• Determine what is examination, cross-
examination, documents
right
• Enquiry report
• Reporting indiscipline
• Speaking orders
• Charge sheet
• Communication of
• Issuing punishment
communications
• Suspension-pending
enquiry

03/15/11 Dr B Ratan Reddy, RGBS 128

DISCIPLINE IN AN ORGANIZATIONAL CONTEXT

“Discipline” has too many meanings:

• The training of people so that they will obey orders and control
their own feelings and behavior
• Training expected to to produce a specific type or pattern of
behavior, esp. training that produces moral or mental improvement
• A state of order based on submission to rules and authority
• Punishment intended to train or correct

•Discipline refers to the norms of behavior that

organizational members are required to conform to in order
that the strategic goals of the organization are achieved
efficiently and effectively
03/15/11 Dr B Ratan Reddy, RGBS 129
 DISCIPLINE VS. CREATIVITY

•Does conformity to norms of behavior affect creativity?

•What is the purpose of norms of behavior?
•Is the purpose of the organization that of achieving its strategic
goals or that of encouraging creativity?
•Which is more important:
•Creativity?
•Achievement of strategic goals?
•Which is more important:
•Norms of behavior?
•Creativity?
03/15/11 Dr B Ratan Reddy, RGBS 130
 DISCIPLINE AND THE LAW - STANDING ORDERS

•Standing orders are essentially norms of behavior

expected from ‘workmen’.
•The Industrial Employment(Standing Orders) Act calls
upon ‘industry’ to prepare such norms of behavior in
consultation with the employees concerned and to have
them certified. Standing Orders typically cover:
• Work timings • Misconducts
• Methods of marking • Punishments
attendance
• Disciplinary procedure
• Shift rotation
• Procedures for lay-off,
03/15/11
• Leave procedures Dr B Ratan Reddy, RGBS
etc. 131
DISCIPLINE AND THE LAW – CDA RULES

• Those who are not ‘workmen’ are sometimes covered

by ‘Conduct, Discipline and Appeal Rules’.
• More often than not, they are left to the mercy of their
employer and ……God
• Conduct, Discipline and Appeal Rules generally cover:
• Motherhood statements of • Misconducts
employer expectations
• Punishments
• What an employee can do
and what he cannot • Disciplinary procedure
• Whose permission he • The fact that he can appeal
requires to do what to the employer and..God
03/15/11 Dr B Ratan Reddy, RGBS 132
HANDLING ISSUES OF INDISCIPLINE

•Indiscipline falls into two categories

•Acts of ignorance
•Acts of defiance

•Indiscipline will not go away if ignored for a sufficiently

long time
•It will become a habit
•Old habits die hard
•It is tough to bring in attitudinal change
•You will be forced to …..S A C K
03/15/11 Dr B Ratan Reddy, RGBS 133
HANDLING ISSUES OF INDISCIPLINE

Indiscipline has to be:

•Nipped in the bud
•Handled head-on
•Dealt with firmly
•Dealt with fairly
•Do not use a sledge hammer to push a fly
•Do not use a fly to push a sledge hammer

03/15/11 Dr B Ratan Reddy, RGBS 134

HANDLING ISSUES OF INDISCIPLINE

•What is important is what is right, not who is right

•what in relation to achievement of the

strategic goals of the organization
•Ascertain facts in a non-threatening way
•Give feedback, supported by facts, in a non-threatening way
•Advise •Warn
•Advise •Warn
•Reprimand •Warn

•S A C K, only if appropriate
03/15/11 Dr B Ratan Reddy, RGBS 135
 HANDLING ISSUES OF INDISCIPLINE -
PROCESSindiscipline:
Reporting
•State what actually happened
•Not what you think happened

•Be specific:
• On what day • What exact words did the
• At what time person use

• What did the person do, or • Who all were witness to

the incident
• What is it that he/she had been
told to do but did not do
• Do not make judgments
• Do not pre-judge guilt
• Do not attempt to analyze why the person behaved in
03/15/11 an undisciplined manner
Dr B Ratan Reddy, RGBS 136
 HANDLING ISSUES OF INDISCIPLINE -
PROCESS
Chargesheeting

Get the Charge Sheet drafted by an expert

• States what is alleged to have happened
• States which clause/s of the Standing Orders the act/s
violate/s
• Advises the person to submit a written explanation within
a specified time-frame
• Advises him about the consequences of not submitting a
written explanation

03/15/11 Dr B Ratan Reddy, RGBS 137

 HANDLING ISSUES OF INDISCIPLINE -
PROCESS
Chargesheeting

•Issuing the Charge Sheet and subsequent

communications
•If physically present
•Issue in front of witnesses
•Take written acknowledgement of receipt
•Incase of refusal to accept, read out charges
and take signature of witnesses

03/15/11 Dr B Ratan Reddy, RGBS 138

 HANDLING ISSUES OF INDISCIPLINE -
PROCESS
Chargesheeting

•If not physically available

•Follow procedure laid down in Standing Orders
•Put up on notice board
•Send by registered Post A/D and Under certificate of
Posting
•Publish in local, widely circulated newspaper

03/15/11 Dr B Ratan Reddy, RGBS 139

 HANDLING ISSUES OF INDISCIPLINE -
PROCESS
Domestic Enquiry

•Get the Enquiry conducted by an expert – Enquiry

Officer
•Get an employee, who is not a trained advocate, to
present the case on behalf of the Management –
Presenting Officer

03/15/11 Dr B Ratan Reddy, RGBS 140

 HANDLING ISSUES OF INDISCIPLINE -
PROCESS
Domestic Enquiry
•Process
•Ascertain if Charge sheet has been received
•Ascertain if the written explanation is what is
available on record
•Read out the Charges
•Ask if person pleads guilty or not guilty
•If pleading guilty, ascertain if person wishes to
make statement in defence

03/15/11 Dr B Ratan Reddy, RGBS 141

 HANDLING ISSUES OF INDISCIPLINE -
PROCESS
Domestic Enquiry
•If pleading not guilty, ask Presenting Officer to
present the Management case
•Presenting Officer ‘examines’ every witness
•Charge sheeted person ‘cross-examines’ all
Management witnesses
•Charge sheeted person is given an opportunity of
‘examining’ his witnesses
•The presenting Officer ‘cross-examines’ them

03/15/11 Dr B Ratan Reddy, RGBS 142

 HANDLING ISSUES OF INDISCIPLINE -
PROCESS
Domestic Enquiry
•Charge sheeted person and Presenting Officer
make final statements
•Proceedings are recorded in writing and signatures
taken
•Copies of proceedings are given to CS person and
PO

03/15/11 Dr B Ratan Reddy, RGBS 143

 HANDLING ISSUES OF INDISCIPLINE -
PROCESS
Domestic Enquiry

Enquiry report
Speaking orders
Show cause
Inflicting punishment
Suspension pending enquiry

03/15/11 Dr B Ratan Reddy, RGBS 144

03/15/11 Dr B Ratan Reddy, RGBS 145
 WHAT IS ER?

•ER is a sophisticated name for IR – Industrial

Relations
•ER covers relationships between:
• unions and employers
• unions and employer
• union and employer
• unions and unions
• union and unions
• employees and unions
• employees and union
that have a bearing on the terms and conditions of
employment or non-employment
03/15/11 Dr B Ratan Reddy, RGBS 146
MANAGERIAL PERCEPTIONS

• Union is a bad word

• Unions are an insult to management
• Management has been cheated; you can never trust workers
• Serves X or Y right!
• There is a ‘foreign hand’; it is an act of cross border terrorism
– the CIA, the ISI, the KGB, the LTTE
• Our goodness has been taken to be a weakness
• It is ‘karma’; it had to happen
• It is normal
• It is abnormal
• We have a lousy HR guy – S A C K
03/15/11 Dr B Ratan Reddy, RGBS 147
WHY DO EMPLOYEES FORM UNIONS?

They form unions when:

• they perceive a threat
• Asian Coffee
• they perceive injustice
• Agipi Chemicals
• some political Johnny ‘convinces’ them that they are
being taken for a ride
• Election Reddy
03/15/11 Dr B Ratan Reddy, RGBS 148
RECOGNITION AND NORMS OF BEHAVIOUR –
GETTING RID OF UNIONS

Can you afford the luxury of a Union

• If you can’t, what do you do
• ‘Management’ Union
• Break their legs
• Have the employees throw it out

03/15/11 Dr B Ratan Reddy, RGBS 149

RECOGNITION AND NORMS OF BEHAVIOUR –
GETTING RID OF UNIONS

• If you can, what do you do

• Confirm if they have majority support
• Single Union scenario
• Multiple Union scenario
• Single union, multiple leadership scenario
• Conditional recognition
• Need to maintain representation
• Limited time-frame
• Norms of behavior – treading on each others
foot – unfair labour practices
03/15/11 Dr B Ratan Reddy, RGBS 150
DEMANDS

The Charter of Demands

• Bombastic
• Based on principle of ‘collective bargaining’
• Union trying to ‘collect’ ; Management trying to
‘bar’ the ‘gain’ of the Union
• Counter demands
• A-B-C analysis
•Lay down ground-rules
• Negotiate on Cost to Company basis
03/15/11 Dr B Ratan Reddy, RGBS 151
DEMANDS

• Region cum industry norm

• Don’t negotiate on Management Prerogatives
• Keeping some demands in abeyance – plusses
and minuses
• Time factor
• Duration of settlement
• 18(1); 18(3)

03/15/11 Dr B Ratan Reddy, RGBS 152

DEMANDS

Mini Demands:
• Come under the guise of so-called Grievances
• Often arise out of political considerations
• Use of pending demands
• Come under the guise of ‘non-financial’ demands
• Meeting them results in a multiplier effect
• Political one upmanship
• Calls for ability to read between the lines
• Genuine issues to be tackled judiciously
• Have them taken up
03/15/11
under Charter of Demands
Dr B Ratan Reddy, RGBS 153
SOME POINTS •Threats in ER
•Gherao
• Non-cooperation
•Dealing with the Banshee/s
•Jeedimetla
• Raghurami Reddy •Luther
• the Volcano principle •Tool/Pen down
• Transactional analysis • Sloganeering
• Ramesh • Preventing persons from
entry
• Result orientation in meetings
• Patancheru
• Agenda in advance
•Preventing despatches
• Coming prepared
• Satwik Drugs
• Bombay Labour Union
• Strike
• Minutes and their re-
confirmation • No work- no pay
• Lock out

03/15/11 Dr B Ratan Reddy, RGBS 154

03/15/11 Dr B Ratan Reddy, RGBS 155
WHAT IS THE PURPOSE OF BUSINESS?

The purpose of
business is to
achieve
sustained/sustainable
competitive
advantage and earn
03/15/11 Dr B Ratan Reddy, RGBS 156
 For A Resource Or Capability To Produce
Competitive Advantage It Must Be:

❂ VALUABLE

❂ RARE

❂ IMPERFECTLY IMITABLE

❂ NON-SUBSTITUTABLE

03/15/11 Dr B Ratan Reddy, RGBS 157

 Traditional Sources of Competitive
Advantage

✌Access to financial Resources

✌Economies of scale

✌Process Technology and

✌Protected or Regulated
markets
03/15/11 Dr B Ratan Reddy, RGBS 158
 Source Is it Is it rare? Is it costly to Is it non-
imitate? substitutable?
valuable?

Financial
Resources

Economies of
Scale

Process
Technology

Protected /
Regulated
03/15/11 Dr B Ratan Reddy, RGBS 159
Markets
 CREATING COMPETITIVE ADVANTAGE
THROUGH HR REQUIRES THAT IT DELIVERS
THE FOLLOWING
✔ IT BUILDS RESOURCES AND CAPABILITIES
THAT CREATE VALUE FOR THE ORGANIZATION
✔ THE RESOURCES AND CAPABILITIES MUST
BE RARE
✔ THEY SHOULD BE DIFFICULT OR TOO
COSTLY TO COPY, AND
✔ THE RESOURCES AND CAPABILITIES
SHOULD NOT BE SUBSTITUTABLE WITH
ANOTHER RESOURCE
03/15/11 Dr B Ratan Reddy, RGBS 160

3
 INTELLECTUAL
CAPITAL

HUMAN STRUCTURAL CUSTOMER

CAPITAL CAPITAL CAPITAL
Creativity Information Depth
systems (Penetration)
Productivity
Laboratories Width
Knowledge (Coverage)
Competitive &
Experience Market Attachment
Emotional intelligence (Loyalty)
Intelligence Market
Channels
03/15/11 Management
Dr B Ratan Reddy, RGBS 161
focus
 WORLD’S BIGGEST LIE

OUR EMPLOYEES
ARE OUR
GREATEST ASSET

03/15/11 Dr B Ratan Reddy, RGBS 162

 THE TRUTH

• EMPLOYEES ARE TREATED AS LIABILITIES

• VERY FEW EMPLOYEES ARE REALLY
ASSETS
• MOST EMPLOYEES ARE “COSTS”
• REDUCE “COSTS” WHERE POSSIBLE
• CONVERT AS MANY “COSTS” INTO ASSETS
AS IS POSSIBLE
03/15/11 Dr B Ratan Reddy, RGBS 163
 Human Capital
Grid
Difficult DIFFICULT TO DIFFICULT TO
Replacement

REPLACE, REPLACE,
LOW VALUE ADDED HIGH VALUE ADDED

EASY TO REPLACE,
Easy

EASY TO REPLACE,
LOW VALUE ADDED HIGH VALUE ADDED

Low High
03/15/11
Value Addition
Dr B Ratan Reddy, RGBS 164
 Human Capital
Grid DIFFICULT TO
REPLACE,
DIFFICULT TO
REPLACE,
Difficult LOW VALUE ADDED HIGH VALUE ADDED
Replacement

CAPITALI
INFORMA (HUMAN CAPITAL)
TE TO REPLACE,
EASY
ZE
EASY TO REPLACE,
LOW VALUE ADDED HIGH VALUE ADDED
Easy

DIFFERENTI
or
ATE
AUTOMAT
E OUTSOURC
Low High
03/15/11
Value Addition E
Dr B Ratan Reddy, RGBS 165
 Human Capital
Grid
• Unskilled & Semi-
EASY TO REPLACE,
skilled workers
LOW VALUE ADDED

• Easily substitutable
Commodity Skills
• Company’s success does
• not specific to any
not depend on them
business
• Easily obtainable • Add no value to the
• of equal value to all
customer
businesses • Reduce
• Typing, cheerful numbers/Automate
telephone manners,
03/15/11
A/C maintenance Dr B Ratan Reddy, RGBS 166
 Human Capital
DIFFICULT TO
REPLACE,
Grid
• Skilled factory workers,
experienced secretaries,
LOW VALUE ADDED Quality Assurance staff,
Internal Auditors,
Corporate
Communications staff
• Don’t add direct value to
customer
• Leverage their skills so
that they add more
information value that
03/15/11 Dr B Ratan Reddy, RGBS 167
benefits customers
 Human Capital
Grid
• People in outbound
EASY TO REPLACE,
HIGH VALUE ADDED logistics, information
systems
Leveraged Skills
• Their work adds a lot of
• not specific to any
value to customers
business
• more valuable to • Outsource expertise that
some businesses than is not proprietary, or
to others
• Use their skills to create
• Largely industry
customized solutions
specific
(Differentiation)
• Company
03/15/11 Law Dr B Ratan Reddy, RGBS 168
specialists Vs. CS’s
 Human Capital
DIFFICULT
TO REPLACE, Grid
• Research Chemists, top
Sales Executives, Project
HIGH VALUE ADDED Managers, Movie stars
Proprietary Skills • Their talent & expertise
• Company specific attract customers
skills • Invest in these “assets” and
• In some cases, bases make sure they stay with
of IPR’s you
• McKinsey’s expertise • Their talent can be
in strategy, Bose’s leveraged to charge a
expertise in Audio
premium
equipment
03/15/11
• Creates tough entry barrier
Dr B Ratan Reddy, RGBS 169
 How to Build Human Capital
• Define human capital in terms of what employees must know
to serve customers better
• Develop “Competency Maps” that indicate competencies
require at each stage of the individual career path
• Instead of ‘training’ people, offer them opportunities to learn
skills they can use
• Encourage “Communities of Practice”
• Promote cross-fertilization among high-potential employees
and experts in vital technologies
• Reward improvement in systems and disciplines that are a
part of the Company’s intellectual capital
03/15/11 Dr B Ratan Reddy, RGBS 170
 Road to Sustainable Competitive Advantage

Is it Is it rare? Is it costly to Is it non- Competitive Performance

imitate? substitutable? conseq- implications
valuable? uences

Below
Competitive
No No No No average
disadvantage
returns

Competitive Average
Yes No No Yes/No parity returns

Temporary Average to
Yes Yes No Yes/No Competitive above average
advantage returns

Sustainable Above
Yes Yes Yes Yes Competitive average
03/15/11 Dr B Ratan Reddy, RGBS advantage returns 171
03/15/11 Dr B Ratan Reddy, RGBS 172