XpressHR_July2013

7/28/2019 XpressHR_July2013

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Xpress HRA newsletter reborn

It has been a while since Xpress HR hit the press.

Around three months to be precise. In the mean-

time a lot has happened in the world of Human Re-

sources Management.

Additionally, the old cluttered layout is replaced by a cleaner

one with a focus on mini

What this issue is all about:-

A PwC Research Brief on Total Rewards in India

Two articles on the theme of last month: From workers to owners: re-

shaping the thought process to create an effective workforce.

An article on sustainable development from the perspective of a new

age HR manager

Some glimpses of HR news and a statistic repository!

Monthly newsletter of SAPPHIRE July 2013


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shapes up and responds to this challenge. It might also be an opportune

me to assess the Indian rewards scenario and derive learning which might

help HR leaders shape the future of total rewards in India.

The India Opportunity:

India is today

the second

most populous

country in the

world with a

populaon of

1.21 bn (17.5

% of world

populaon).

Interesngly

more than

50% of this populaon is below the age of 25 and more than 65% below the

age of 35. It is expected that, in 2020, the average age of an Indian will be

29 years, compared to 37 for China and 48 for Japan, thereby making India

the country with the largest and youngest employable populaon in the

world. With more and more young employees joining the workforce India

Inc. is faced with the daunng task of customizing their people pracces to

sasfy the needs of this diverse talent pool. Research has shown that the

engagement drivers of the Millennians is very dierent from the older

employees. Hence approaches to simultaneously aract and retain the

young and the experienced will be a constant challenge that Indian business

and people leaders will connue to grapple with.

However, we would be fooling ourselves if we thought that the

generaon divide is the key element of employment diversity in India. TheXX% of the Indian populaon in the organized sector, are employed by a

wide array of industry and sectors namely telecom, IT, ITES, banking,

insurance, nancial services, manufacturing, construcon etc. The talent

and capability requirement for companies in each of these sectors is as

diverse as the kind of career and life opons that each of them oers.

The general literacy and educaon levels in India has improved

substanally in the last 2-3 decades. This has led to increasing number of

Graduates and Post Graduates seeking employment today. Add to this the

fact that over the last 2 decades due to aggressive eorts made by the

Indian Government to empower and educate the girl child, increa

number of women are joining the Indian workforce.

However all this does not seem to have addre

the demand-supply dis-balance between la

market needs and the skilled manpower availab

fulll them. 81% of Indian CEOs connue to see

availability of key skills as the biggest threat t

growth prospects and 53% of Indian employers

that a skill shortage is a key reason for entry l

vacancy. (Source: PwC 16th Annual CEO Sur

McKinsey on Society, 2012)

This level of diversity in the workforce requ

organizaons to look for more innovave mean

staying relevant to dierent talent segments, e

with their disnct set of expectaons from their employers. Thus a one

-ts-all model will not suce. Required is a exible HR strategy/appro

which lends itself for customizaon to meet the requirement of die

target groups.

It is here that the Total Rewards Philosophy ts the requirem

of India Inc. to a T. Total Rewards not only takes into account

tradional reward elements like Fixed Pay, Benets, Short Term and L

Term Incenves and Rerals but also looks at the intangibles which re

the Employee Value Proposion that the organizaon has to oer. Th

EVP elements can encompass aspects like growth and developm

opportunies, internaonal exposure, exible work opons, work

balance etc.

Thus, Toward Rewards (if suitably ne tuned) has the poten

sasfy diverse needs. It can be designed to movate the entry

employee who is looking for a high xed compensaon to repay

educaonal loan as much as the experienced manager who is looking

comfortable life post rerement. It can address the needs of the wo

employee who has recently rejoined the workforce and is looking for m

exibility to manage both the professional and personal fr

simultaneously, and also the aggressive mid-level sales employee, wh

looking for larger rewards for the s targets he is willing to take on. It

be used to aract both the highly qualied resource who is looking

beer avenues to apply his knowledge, display his potenal and in so d

grow in the organizaon, as well as, the campus recruit who is looking

workplace which will help him hone and develop his skills and make t

relevant and value adding to the organizaon.

We feel that the opportunity for implemenng Total Rewards in India is

immense. If eecvely leveraged it is a powerful instrument in the hand

the Indian HR leaders which he can eecvely use to address aracon

retenon and development challenges across the dierent life stages of

employee.


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FedEx comes to mind when you are looking for a rm with agreat employee culture at work but sll stays on top of its business.

FedEx has a very casual

style of working where the

work force feel a sense of

pride in signing in to the

oce every day. Started by CEO Fred Smith, it had the least ideal of starts

with several blunders at the incepon stage, but it was the passion and

hard work of his employees who never felt inmidated or resigned to

behaving as slaves that kept them rolling. If the workers instead felt a

sense of dislike, it is fair to assume that FedEx would not be where it is

now today. Thus, it is vital to create a posive work culture where you

share successes, involve employees in decision making, have clearexpectaons and focus on what is right.

Human Resource professionals denitely play a crucial role in

bridging the vast gulf in an employees percepon of his role in an

organizaon. Focus should be on making the workforce realise that they

are an important and integral

part of the organizaon and not

corporate slaves who toil day and

night for boosng the rms

prots. The need then is to tackle

the concept of a corporate slave

like feeling in the mind of

every employee and make

employees experience and feel

like equally-important family

members in the corporate

structure. The divide can be

migated or reduced by a

number of measures, which if

implemented properly would also indirectly lead to beer working

condions which is top-most in the minds of the workforce.

Art, communicaon and culture have been around since

memorial. But the Corporaon is a relavely newer concept. Ever s

man embarked on the journey to produce material things, Corpora

became an integral part of human social development. Individuals

the Corporaon, but when seen as a single enty it can be inmida

With the populaon growing everyday and newer markets b

captured, the corporate machine is on an unstoppable roll.

imperave to consider the extent to which the workforce can

controlled and made to labour purely for the corporate master s bo

line. One must consider the mindset

the employee as he or she walks in

the drab cubicle which has become

synonymous with corporate slavery.

Curiously, even hospitals are runakin to a large company or factory,

but there is very lile negavity

associated with the job.

To compete and win in todays economy, the organizaon m

be able to realise the full potenal of

employees. In order for the employer

thrive and deliver increased value,

employees too need to move away from

noon of corporate slavery and willi

develop their capabilies. In an employ

perspecve, the ability to compete,

in some cases even survive, depends o

loyal and engaged workforce who will

value to each day that they report in for w

This is only possible if the emplo

recognizes and genuinely connects to

organizaon in a way akin to that of ho

Merely providing career resources and lea

it to the employees to make a choice will not have far -reaching ee

An eecve strategy here will include a career development pro

eort involving both employer and employee. The company leader

Article Writing Competition Winner

Vinoo Kurien Thomas, XLRI

Theme: From workers to owners: reshaping the thought

process to create an effective workforce.

When employees nd a sense ofmeaning in their work, they work

harder at it. What would otherwise

be a normal acvity takes on much

more when there is a sense of

meaning associated with it, like at a

restaurant or in a movie.


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will need to take an acve role towards this eort and career

development starts right from the rst iniaon of an employee into the

work space.

I would like to draw a parallel to the movie The Matrix, where

a society remarkable similar to the exisng one is portrayed. The purpose

of the lms message was in part to alert everyone to the already

established characteriscs of dominant rule. When employees nd a

sense of meaning in their work, they work harder at it. What would

otherwise be a normal acvity takes on much more when there is a sense

of meaning associated with it, like at a restaurant or in a movie. The

enre emoonal appeal of the event gives it a heightened sense of

meaning.

Just like we keep our homes clean, at its most eecve,

ownership gives employees not just a nancial reason to perform but a

reason to belong. The power of strong, supporve personal relaonships

cannot be stated enough. Just as family and friends create a meaningful

personal life, supporve relaonships at work enabled by a change in the

thought process from considering workers as parcipants to considering

CLC Report, Q1 2013


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The ChallengeWe as humans are unique in that we don t as much live in a world

governed by the laws of nature as we do in a world governed by the laws

of economics. It is the marketplace that denes our lifestyle without

considerable regard to the impact our acons have on the world at large.

However, it is important to realize that there is only so much that the

spaceship earth can tolerate. There is a limit to which we can exploit

nature before it decides to retaliate and takes maers in her hands to set

the balance right.

In wake of this realizaon, the biggest challenge faced by corporate today

is to change their nexus from that of exploitave growth to that of

sustainable development. To inculcate sustainability oriented values is

the imposing task cut out for the new age HR for change can only be

brought about through a two pronged approach targeng both the top

management as well as the lower rung of employees to ensure that the

ideas of sustainability is integrated in the very fabric of the organizaon.

However, before such iniaves are taken the HR in itself should be able

to understand and appreciate the gravity of the situaon and be aware of

the impact of these decisions. Yet, it is not uncommon to see HRs lacking

competencies in the broader realm of sustainability, with even well

intended iniaves failing to create a ripple.

The InnovaonTo ensure that an organizaon treads on the path of sustainable

development, it is imperave that the route be ingrained in the DNA of

the organizaon modelled by the HR. The same maybe aained by:

Recruitment: The primary imperave is to develop a pool of employees

conscious to the needs of the society. This would be achieved through:

Integrang sustainable development issues in the recruitment

process

Monitoring the long-term competency requirements for the

company

Providing new employees with informaon about sustainab

development policies and iniaves

Incenves: A mix of rewards ranging from nancial security to bonuse

promoons and peer recognion needs to be incorporated to mova

the employees to commit to the path of sustainability. This may b

actualized through:

Incorporang social and environmental consideraons within th

performance appraisal system

Supporng adequate work-life balance

Encouraging employees to parcipate in corporate communi

involvement programmes

Competency Development: To ensure that the company progress on thright path it is imperave to inculcate the right competencies in the wo

force. Augmentaon of a sustainable development perspecve wou

inuence crical business decisions to be in line with the long term goa

of the organizaon. Crical competencies could be developed through:

Including social and environmental issues within employee traini

and development programmes

Ensure training programmes take into account the business risks an

opportunies from sustainable development and ways

idenfy them

Separate training programmes at separate levels of seniority

target the gamut of employees and management

Corporate social-environmental performance is strongly associated wi

marketplace success. One of the most potent reasons points to be

branding. Companies that are socially and environmentally consciou

strike a chord with the public, hence maintaining beer brand value. Th

in turn enables them to aract and retain beer talent because tale

wants to work with the best companies.

Leading the Path to Sustainable Development

Gaurav Sharma & Rahul Ranganathan

The shift towards Sustainable Development requires organizational change and cultural change at its core

brought about under the stewardship of the new age HR manager


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Between capitalist and communist society there lies the

period of the revoluonary transformaon of the one into the other.

Corresponding to this is also a polical transion period in which the

state can be nothing but the revoluonary dictatorship of the

proletariat- Karl Marx.

The leaders of the Russian revoluon were inspired by such

propaganda of great communist thinkers which in turn led to an

autocrac rule in the communist USSR. Eventually though, this led to

the fall of Communism. The thinkers had a fore vision on the proletariat

dictatorship but they failed to foresee the system or the polical checks

and balances that would sustain through ll the transformaon. On the

other hand, many propagated anarchism as a soluon to the class

struggles during those mes. But,

complete freedom without anycentralised authority would also not

sustain over a long me. The logic

behind anarchism is free associaon

which means individuals are no

longer deprived of access to means of

producon enabling them to freely

associate (without social constraint) to

produce and reproduce their own

condions of existence and full their

individual and creave needs and

desires. So, it was assumed that when individuals are given completefreedom they freely associate with each other and work towards

sasfying their needs and desires. But, this basic assumpon in itself

does not hold good. A very good example for this could be the failure of

the agrarian industry in Zimbabwe aer the land reforms measures in

2000. Amongst many reasons, the disinterest of new land owners in

farming is also argued as one of the reasons for failure of the land

reforms. So, it is evident that free associaon is not always possible.

Transfer of power from one authoritave group to another

authoritave group is not the soluon for class struggle in organisaons.

Neither is the complete breakdown of authority. Chris Argyris, a

management thinker, proposed

the mature-immature connuum

theory in which he suggestedthat individuals always strive to

move from immaturity to

maturity and mostly the

authoritave or centralised

organisaon structure is built in

such a way that it prevents this

development in individuals. Thus,

he proposed a non-hierarchical

organisaon structure in place of

the pyramidal structure. But, as we saw

in the failure of Anarchism, individuals donot always work towards moving from

immaturity to maturity. But, we have

several other advantages of having a non

hierarchical organisaon structure in

place. Especially in todays business

scenario where ideas could transform th

whole image of the company, it is

necessary to have a non-hierarchical

structure which would enable the

employees to come forward with such

ideas. But, this again at mes could lead to a herd-

like mentality.Moving to a non-hierarchical structure from a hierarchical one therefor

has its pros and cons.

Building a non-hierarchical leadership into an organisaon

that has followed hierarchical leadership and also retaining the pros an

eliminang cons will be the most challenging task. From the design

phase to the implementaon phase and thereaer, eecve monitorin

of the implementaon is a daunng task. However, many organisaons

have successfully done this in the near past and some organisaons

have taken steps towards this. The cultural change that such

organisaons have undergone has beneed them hugely but the

Checks and Balances, Technology in Non-Hierarchical Organisations:

The Solution for Creating an Empowered and Effective Workforce

D P Gokul Kartik

Shaliesh J Mehta School of Management, IIT Bombay

Building a non-hierarchical

leadership into an organisaon

that has followed hierarchical

leadership and also retaining the

pros and eliminang cons will be

the most challenging task.


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Contact UsOur email: [email protected]

Our website: http://sapphirexlri.com

Editors:-

Manisha Dalan

Rahul Ranganathan

TCA Lakshminarasimhan

Thank you for reading!

Glimpses of HR (Click-through to read!)

Crowdsourcing Feedback Provides a MoreAccurate Picture of Employee Performance

A recent survey conducted by Globoforce

and SHRM shows that companies that use

crowdsourced recognition data within

performance reviews have more effective

performance management processes.

Employees Believe Social Tools at WorkHelp Foster Productivity and Teamwork

Nearly half of employees report that social

tools (such as Twitter, Microsoft Lync, and

Facebook) at work help increase

productivity, but more than 30% of

companies underestimate the value of

these tools and often restrict their use.

Global Talent Shortage Continues to HurtCompanies' Performance

A recent survey by ManpowerGroup

reveals that a perennial global talent

shortage is intensifying and negatively

impacting companies' performance.

process behind such a change is always a dicult path to tread on.

Any such change dissipates from top to boom even though the focus

is on elevang the boom to disintegrate the hierarchy. So, while

building a non-hierarchical organisaon, the main focus should be to

design the system with mutual checks and balances that will result in

the paradoxical controlled freedom. One way to bring about this

balance is in thoroughly understanding the fact that non-hierarchical

organisaons are all about collaboraon and right to use of

technology. In the modern era of Informaon technology, eecve

communicaon is one of the ways of achieving collaboraon. IT has

enabled peer-to-peer new communicaon, boom-up communicaon

and much more which helps collaborave decision making, sharin

new ideas etc. These IT systems should be weaved into the func

and divisions of the organisaon instead of acng in isolaon.

Informaon Technology in the form of social media has changed t

way how people work together. Newer technologies like mobile

compung have further increased the proliferaon of social med

todays organisaons. Thus, a proper system design backed with a

appropriate technology, could lead to the creaon of empowered

ecient individuals, at both a societal and an organisaonal level
http://www.globoforce.com/SHRM_Globoforce_Survey_Crowdsourcing_PRhttp://www.globoforce.com/SHRM_Globoforce_Survey_Crowdsourcing_PRhttp://www.globoforce.com/SHRM_Globoforce_Survey_Crowdsourcing_PRhttp://clomedia.com/articles/view/despite-policy-employees-want-social-tools-at-workhttp://clomedia.com/articles/view/despite-policy-employees-want-social-tools-at-workhttp://clomedia.com/articles/view/despite-policy-employees-want-social-tools-at-workhttp://online.wsj.com/article/PR-CO-20130528-903420.htmlhttp://online.wsj.com/article/PR-CO-20130528-903420.htmlhttp://online.wsj.com/article/PR-CO-20130528-903420.htmlhttp://online.wsj.com/article/PR-CO-20130528-903420.htmlhttp://online.wsj.com/article/PR-CO-20130528-903420.htmlhttp://clomedia.com/articles/view/despite-policy-employees-want-social-tools-at-workhttp://clomedia.com/articles/view/despite-policy-employees-want-social-tools-at-workhttp://www.globoforce.com/SHRM_Globoforce_Survey_Crowdsourcing_PRhttp://www.globoforce.com/SHRM_Globoforce_Survey_Crowdsourcing_PR

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