live project

2 MBA/ PGDM students are needed who have completed their first year for a live project of a industry. Stipend would be paid. Interested one can write back @ rk.singal58@gmail.com

Wednesday, August 28, 2013

ATTENTION - Pay For Performance: Innovation Killer

Pay For Performance: Innovation Killer

Pay For Performance: Innovation Killer
Frank Kalman | Talent Management

As pay for performance - linking employee compensation to effort or productivity - is increasingly accepted as a way to ensure employees are maximizing output amid an increasingly competitive economy, one study reveals the model is actually detrimental to another highly sought-after organizational goal: innovation.

Pay for performance is effective for employees in operational roles, such as a painter painting houses or a salesman hitting quotas. But when it comes to employees responsible for finding creative solutions to problems, the model is ineffective, said Gustavo Manso, co-author of a 2012 study published in the July issue of Management Science.

This is because a straight pay-for-performance model does not have a tolerance for early failure, a component essential to innovation, said Manso, an associate professor of finance at the University of California at Berkeley. Innovation is a "trial and error process," Manso said. "You have to try things that you don't know if they're going to work."

Manso and the study's co-author, Florian Ederer of the University of California at Los Angeles, argue that the perfect compensation structure for innovation is one that provides security of early failures while rewarding for long-term success.

To prove this, the authors used a lab environment with the premise of managers conceiving a lemonade stand. The study tasked three groups with coming up with all the strategic components of setting up a stand - price, location, mix of sugar and lemon. Each group was compensated under separate models: The first group would receive a fixed wage, the second group a pay-for-performance model, and the third group a hybrid "exploration" model.

The authors' hypothesis: The group operating under the hybrid model would explore more and be more likely to find superior strategy than the subjects in the two other compensation models.

The results proved just that. The subjects in the hybrid, exploration compensation model ended the experiment with the best location for the lemonade stand 80 percent of the time. Meanwhile, the subjects in the fixed wage and pay-for-performance model ended up in the best location 60 percent and 40 percent of the time, respectively.

"The problem is the subjects in the standard pay-for-performance model [are] too worried from the beginning to get it right," Manso said. "They don't try to explore a lot.

"Subjects under the fixed-wage model experiment a lot because they don't have any consequence. However, they are not keeping track of what they're doing.

Manso said the third compensation scheme ended up most successful because the group was not afraid to explore and fail early in the process. While the experiment moves along they became motivated by the prospect of being rewarded for long-term success, in turn narrowing the early exploration findings into new and more creative solutions.

In the real world, Manso said some of the most innovative companies have adopted similar schemes. This is seen most commonly with executives through the use of rewards systems built on managerial entrenchment, golden parachutes and option pricing - linking a company's long-term performance directly with an executive's compensated equity stake.

Other innovation- and creativity-driven firms have adopted similar schemes, according to the study, with some systems not only tolerating early failure but also rewarding it.

Still, the percentage of firms that properly identify and apply this kind of hybrid innovation-driven compensation structure is small, said John Bremen, managing director of talent and rewards at human resources consultancy Towers Watson.

What's important, Bremen said, is for companies to create a culture that recognizes and rewards innovation properly through compensation. He said the hybrid model showcased in the study is valid, but not enough companies properly apply it, instead creating a one-size-fits-all model where every employee is expected to spur innovation.

"It doesn't mean pay for performance isn't valid," Bremen said. "I would argue it's a different pay for performance," where employees in operational roles are rewarded for short-term results while those with long-term, transformation duties are rewarded in a longer view.

[About the Author: Frank Kalman is an associate editor for Talent Management magazine.]

Monday, August 26, 2013

Bajaj Auto strike analysis- Don't Compromise on Business Vaues and Being tough pays sometime

Dear Friends,
The fifty day long workers strike at Chakan plant (Pune) of Bajaj Auto ended on 13 August 2013 with the workers union unconditionally calling it off and deciding to go to work from 14 August 2013. Around 80% workers reported for work next day. Workers union called for strike on 25 June 2013.
It can be termed as a case where to resolve the industrial relations stalemate created by workers union on certain unrealistic issues far from economic reality, if you take a tough stand; it is bound to bring results due to conviction to the cause.
In management-labour stand off, resolving the issues may be easy, but selling the solution to workers is by and large difficult. This has happened in Bajaj Auto case where union leaders pushed themselves to a wall from where there was no exit, but to surrender by withdrawing the 50 day long strike unconditionally.
Strike has never brought win-win situation in labour management relations. This should be properly understood by workers and their union leaders. Union leaders in this case made mistakes one after another and the consequences are catastrophic for workers, because they did not get anything and have lost 50 days wages. 22 workers are subjected to disciplinary proceedings. It is not loss of salary but also a loss of self respect and pride for workers. Union leaders have made the workers laughing stock. On the other hand management also lost sale of around 20,000 units in June alone.
This is the first strike at the Chakan plant of Bajaj Auto in its 16 years of operations.
Management and workers union executed an agreement in March 2010 for 9 years which lasts till 2019 with a clause that provides wage revision in three years. This wage revision was due in March-13. But union arbitrarily terminated the agreement and raised demands on the management. According to labour department workers demanded an annual hike of Rs. 10,000/- with an additional correction of Rs. 5,000/- apart from benefits of variable dearness allowance. The union had then submitted separate list of 37 demands which also seek clarity on the company’s promotion policy, eligibility for a housing loan of Rs. 5 lakh, education loan of Rs. 2 lakh and marriage loan of Rs. 50,000/-. Union also separately demanded a work study at the site to measure how much production is possible in 480 minutes.
Over and above union made audacious demand of allotting 500 shares of the company to each worker at Rs. 1/- only. The point here is to analyze what inspired workers union to raise such a absurd demand. Probably due to leading perception amongst workers that automation and improvement in productivity has resulted in a significant growth in profitability of the company and the benefits are not being shared equitably by the management, union without giving a serious thought raised the demand and gave workers a false hope.
Management moved to Industrial Labour Court against the workers union by filing unfair labour practice complaint and declaring the strike illegal. Union had no moral courage to face the court and avoided to take the notice. In the mean time management shifted the production to Aurangabad and Waluj plant and also kept Chakan plant running through trainees to some extent. From the very beginning management strategy was to be tough on the issue of discipline and share demand and make workers hiring. Further Bajaj Auto M.D. statement that the company will not agree to the demand to allot shares to employees even if the strike goes to for 500 days as even the top management has not been allotted shares, built further pressure on workers and union leaders.
Actually employees’ stock options have never been offered to blue collar employees’ in Indian manufacturing industry. This practice has only been with few IT Organisations. Tata Motors and Mahindra & Mahindra allotted shares only to top management in the R&D division and not to workers. In manufacturing culture loyalty of the employees cannot be bought by giving shares to them. Moreover, the ESOP has never been a part of union negotiations in Indian industry. It can be said that Mr. Bajaj has done a good job by rejecting this demand firmly from the day one. His stand has insulated the entire manufacturing sector of the country from such absurd demand of unions. In future workers unions will think twice before raising such demand.
Side by side management also suspended 22 workers who were found involved in various issues of indiscipline and go-slow.
At the end, workers union could not get even a face saving medium. Suspended workers have not been taken back and management only assured that suspension cases would be considered “objectively and sympathetically”. The cause as well as timing of the strike was wrong. They had to call off strike without any of their demands-including substituting new wage agreement-met.
The lesson from Bajaj Auto case is clear-management should never compromise with their basic business values and principles. In labour management conflicts, opting for short term peace will surely breed long term problems that develop in to more complex relationship and lastly workers unions should demonstrate enough maturity while raising demands. Being tough in IR is not bad always.
source :

Friday, August 23, 2013

IT Jobs for B.Tech & MCA

HR Experienced Job

Monday, August 5, 2013



Why IT firms will hire fewer techies this year

India’s IT sector might add to the nation’s woes of unemployment. Increase in automation and low attrition in the information technology sector may be hindrance for job seekers.

Job opportunities in this sector is expected to come decline by up to 17 percent to 1,50,000 in the current fiscal, according to Nasscom, a trade association of Indian information technology and business process outsourcing industry.

The $108-billion Indian IT-ITeS sector provides employment to about 3 million professionals.

When asked about the hiring environment, Nasscom President Som Mittal told PTI, “I think we will have net additions of 150,000-180,000 this year. Last year it was about 180,000.”

Explaining the declining job market, he added: "It might be less than last year, as it is getting non-linear and lower-end jobs are getting automated. The profile is changing and we need more Domain experts."

As against the industry average of 20 percent, attrition levels have also come down to around 14-15 percent. Mittal also mentioned that campus hiring may drop significantly due to change in hiring patterns.

"Campus hiring may be 60 percent of what it was last year," he said, pointing to the fact that employers are now focusing more on soft skills and leadership qualities when compared to technical skills.

Analysis showed that three years ago 80 percent focus for hiring professionals in the IT sector was based on technical skills.  "But now only 40 percent focus is on technical skills and the rest is on soft skills and Domain," Mittal assured.

India's four largest IT companies hiring data suggested a decline by over 60 percent in the April-June quarter of this year, according to media reports.

PTI reported that the top four IT services exporters made net additions of about 4,100 to their workforce during the quarter this year, against around 10,900 in the year-ago period.

Sunday, August 4, 2013

Major HR Challenges in Indian KPO Industry

Major HR Challenges in Indian KPO Industry

India possesses the world’s second largest pool of English proficient resources in information technology, engineering, medical and financial services. Building on these abundant human resources, the Indian BPO/KPO industry, has expanded rapidly over the last decade. Despite the availability of talent, HR managers in KPO companies still face various challenges such as talent crunch, need for continuous training, high intellectual drainage, pay parity issues, etc. Having worked in the manufacturing industry, IT and Telecom industry for years, I had to find ways to tackle these daunting challenges during my early days of KPO experience.
A typical HR life cycle starts from identifying a position, filling the position, managing the compensation of employee, training the employee, apprising the employee and managing the exit while doing so some of challenges which HR face in KPO is :
Converting service level agreement into KRA/KPI:
KPO organization are committed to delivering work with utmost quality, and within tight deadlines, and considerable challenge HR face is how to convert the service level agreement in to KRA/KPI, the situation also aggregates when each individual is working for multiple clients across industry verticals, and the challenge HR faces is how employees performance can be assessed scientifically with no subjectivity involved.
Learning and Development:
Trainings are focused mainly on improving the Quality of workforce since the contribution of each employee reflects in the final product. Training programme like English Writing, Email Writing and Telephone etiquette, Introductory programme in cultural sensitivity is the norm for many of the KPO's, apart from this management some time sponsor or encourage employees to take higher educational certifications like e-MBA, Chartered Financial Analyst (CFA) and Association of Investment Management Research (AIMR) programmes are encouraged for high potential employees.
Challenge for HR is to design the customized training modules and the challenge are when training programme has to designed for specific projects like if any financial project for a particular country is taken then employee needs to know the laws of that country.
Knowledge Management
Employees are intellectual assets of any KPO. When employees exit, intellectual asset of the organization diminishes causing high intellectual drainage, now the Challenge of HR is how the tacit knowledge of the employee is captured and creating infrastructure for capturing the tacit knowledge.
Managing Stress of Workforce:
Stress of the workforce is something, which cannot be ignored by the HR, and today it is rampant in any industry, and KPO is not left out from that, today employees has to deal it with effectively but stress arising from monotonous and repetitive nature of job is a challenge not only for HR but employee itself. This can be addressed by initiating HR programmes like mediation/Yoga course from Art of living, arranging recreational activities periodically.
Working in Different Time Zones:
Employees need to work on different time Zone, and these sometime impacts their health, and over all well-being of the employee. This situation put HR in the challenging task of ensuring the security and safe being of female employees.
Instilling Integrity as Value System in Employees:
KPO requires a higher level of data confidentiality and data security; the challenge of HR is not policing the employee but having a watchful eye and challenge of bringing relevant HR policies and periodically sensitizing employees and project invisibly integrity as a value system.
Maintaining Internal Parity in Compensation:
In KPO there is crunch for talent and most of the time its war for the talent, KPO is a specialized field, and requirements will also be typical, now the biggest challenge is getting the right talent and paying him, but maintaining pay parity is a challenge since every year the cost of talent available in the open market is increasing. Maintaining pay parity is critical in KPO since employee morale has to be maintained
Talent Acquisition and HR Brand Equity
India is the second largest pool of English proficient resources in Information Technology Engineers, doctors, Managers but still we face the talent crunch since many of the qualified candidates have reservations about considering KPO as a career.
India is a diverse country and talent is widespread across the country, and many of time after many rounds of interviews and offer negotiations candidates backup at the last moment, citing relocation issues since India is a country where we would like to be near with family and friends. The Talent is not uniformly distributed across; sometimes it becomes a challenge for HR to scout talent.
Unlike other industries in KPO recruitment is complex focused on multiple round of interviews focusing on a different aspect of evaluation like domain expertise, analytical and data mining skillset, conceptual knowledge, verbal and written communication skills in alignment towards domain expertise and evaluating on softer skill set like working in the Team and working under pressure, Challenge for HR is to balance – a) Aspiration of candidate, organization and cultural fitment.
For maintaining this HR need to act as a consultative needs analyst for the candidate and organizations rather than acting like a sales person who sells the Job description to the gullible candidates.
KPO employees are knowledge workers, so they expect a quick response to their queries and issues, and sometimes it becomes a challenge for HR since many of the time request comes regarding infrastructure and new policy related which immediate response HR might not be able to give.
The HR challenge also lies in creating HR Brand equity and improving employee’s perception of HR as a credible business partner.
Retention Management:
Attrition is another challenge faced by HR professionals. Attrition kills the productivity and at the same time destroys the morale of the employees. Challenge for HR is to control the attrition of high performance employees who are rated at 4 and 5 in the appraisal cycle and identifying high potential employees who are rated at 3 in appraisal cycle. Grooming them through assigning a suitable mentor and implementing succession management with clear differentiating with replacement management, in succession management employees should let know whom he or she will be replacing, and a coach/mentor should be assigned, and a periodic evaluation and assessment to be done.
Job Rotation :
KPO is a highly specialized field, and it is exceedingly difficult to provide job rotation to employee unlike in other industries. Challenge is how best HR can do the job sculpting and provides job rotation to employees.
Career Path :
Employee is recruited for a particular project but by the time employee joins, due to business reasons client withdraw the project, and at that time biggest challenge for HR is to manage the disappointment, frustration of the employee and same do apply when suddenly client withdraw the running projects and employees are left out with no work.
This is a challenging situation of HR and HR should try to fix how best the talent can be utilized and reallocation of resources based on skill set.
Challenge for HR is to interact with the senior management and create a clear career path for employees, and in a graphical way it should be explained to employees, and they should be made aware what career path they can join.
HR need to design retention programmes like work oriented learning and development programs, judicial approval of working from Home, providing an opportunity to employees for global exposure, Flexi timings and creating a challenging job profile in alignment to each individual employees aspiration. Reward and recognizing employee’s contribution.
Final Thoughts:
All well and said crucial Challenge for HR is proactively identifying what is the need of the employees and providing them without their asking.
Characteristics of the work force is changing, and employers has to foresee and see employees as growth drivers of the company and give them respect for their contribution, and opportunity to self-discover their strength, which they can offer to employers, and this is the biggest challenge for HR to help the employee self-discover his or her new strengths in the workplace and identifying this and providing an opportunity to work on newly discovered strengths.
This article is also been published @ www.vinayravindran.com

Friday, August 2, 2013

Jobs for MBA Fresher in Finance in Banking

Jobs for MBA Fresher in Finance in Banking

A subsidiary of MNC bank looking for 2 MBA fresher ( F)  for its Loan processing department. Posting will be at Faridabad. This is top urgent requirement. Send your cv to rk.singal58@gmail.com for further processing. Last date is August 6, 2013.

Thursday, August 1, 2013

Workplace of next of decade - Business Manager HR Magazine

Workplace of next of decade - Business Manager HR Magazine

Dear Friends,
The change in the world of work is accelerating. It is moving from industrial age to digital age. The era of working in comfort zone for years together is over. Complexities with uncertainty are the DNA of future workplace and workforce. Organizations that do not adapt, do not read writing on the wall, do not challenge the status quo will be made irrelevant by time.
The workplace of next decade will be transformed by confluence of disruptive forces. Transformation will be generational and cultural. As the technology and information blast has made the world flatter, so will be the workplace. To survive and excel in business, organizations will need to be agile, innovative and demonstrate sustainable practices. The workplace will be comprised of blended workforce with more intensity than of today. There will be nothing like permanent employment. Temps, contractual and outsourced employees will govern the work dynamics where the conflicts will set to rise. Knowledge economy will change the employer employee relationship pattern. At present in industrial sector already the contractual workforce is replacing the permanent kind of workers with speed. It has already occupied the space by about 50%. It is going to increase more. There would be a major shift in expectations of this kind of workforce in the next decade. Organizations will need to develop innovative strategies to keep workplace away from conflicts and manage their fast growing expectations. They would be asking more and more share in business profits.
Technology, hyper connectivity culture, social media, skill deficit and agile working will rule the workplace of next decade. Embracing information technology to the benefit of organization and workforce will be a challenge. Organizations will be requiring the leaders with mindset of managing business and workforce not with yesterday logic but with exploring exciting opportunities and changed thought process. The leadership styles will have to be more collaborative and less authoritarian so that conflicts are minimized. Management will need to reorient itself. Leadership of the organizations have to ensure that status and influence of a person in the organizational hierarchy should correspond to contribution rather than position.
Depicting future is very risky and difficult but at the same time one has to prepare based on current and familiar trends. It becomes probable future. Imponderable future which comes from future events and social economic changes is difficult to predict. BM cover feature on workplace of next decade primarily addresses the probable but also ventures in to imponderable area. We do not attempt to capture every trend but rather to illuminate many of the points currently being discussed. Experts, futurists and management practitioners provide an overview of the subject which is being conversed globally. have shared there thoughts on the topic Rajeev Dubey, Praveen Sinha, Smita Dash Sahoo, Dr. Virendra P. Singh, Githanjali Pannikar, Nalin Kumar Thakur, Rati Diwan, Rashi Mahato, Deepa Chadha, Raghvendra K.

Happy Reading!

Anil Kaushik
Chief Editor,Business Manager-HR magazine
B-138, Ambedkar Nagar, Alwar-301001 (Raj.)

Receive Quality Tutorials and Latest Job Information from Dr. Singhal Straight in Your Inbox by Submitting Your Email ID Below

Your Information Will Never Be Shared.