Download - Pandey keynote address

Transcript

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1

CCMC Corporate

Comprehensive Management Consultants

“People Drive the Process of Excellence”

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Competency Based HR Practices in India: Yesterday and Tomorrow – Lessons for South Africa

Competency Based HR Practices in India: Yesterday and Tomorrow – Lessons for South Africa

Dr. S. Pandey

Corporate Comprehensive Management Consultants

India, Bombay

18th March, 2011

Key note Address at the Annual Conference of ACSG, Stellenbosch- South Africa

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Scope and ObjectiveScope and Objective

Scope:Current Business Environment in this

emerging economyOpportunities & challenges of

Enterprises in general and specially Consulting organizations including Management Consulting Firms

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Scope and Objective (contd.)Scope and Objective (contd.)

Objective:Insights for HR-Professionals and

Enterprise owners based on macro level secondary data and ethnographic approach

Ideas about setting up business in India specific emerging Industries

Ideas about specific business opportunities for AC-professionals and Management consulting in general

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IndiaIndia

Region: South Asia Income category: Lower middle

income Population: 1,185,347,678 GNI per capita (US$): 1200

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India Business witnessed some critical events recently

India Business witnessed some critical events recently

Pre-liberalization era (prior to 1990s)

Supply of fresh air in Auto and Manufacturing (post 1991-93)The advent of IT (post 1992-93) Speculative bubble covering roughly 1995–2000 (with a climax on

March 10, 2000 the dot-com bubble burst) The Call center’s entry to India, maturing to serious BPO business

(ITES – technology driven). End 1999-2000 The rise of emerging markets; following Y2K, the IT-service

business in many domains, KPOs The recent economic meltdown (2007-8) The recognition of economic growth engines along with some of

the developing countries in Africa, Asia, and South-America since the middle of 2009.

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Graphs are for representational purpose onlyGraphs are for representational purpose only

Pre 1980s

1980s 20102005

200019901995

AC

Mark

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Mon

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Su

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The story of Competency based HR practice in Indian Business organizations

Ethnographic Domain: Selected 30 significant Competency design & implementation projects selected in western, southern, and north India; over a period of about 15 years.Research and consulting assignment of a group of early practitioners of competency based work that the author had opportunity to see from inside

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1994-2000 [large numbers; lower to middle level; long duration; all but 1 had critical issues1994-2000 [large numbers; lower to middle level; long duration; all but 1 had critical issues

No. Year Project Company

1. 1994-97 Start-up Assessment Center: Design, Development and Implementation

General Motors (India) Ltd. Halol, Gujarat

2. 1994-97 Development Center – InstitutionalizationAssessor Training

Castrol India Ltd. HO: Mumbai

3. 1998 - 2000

Development Center for Marketing and Sales Personnel; Assessor Training

Kirloskar Brothers Ltd. Dewas, Indore

4. 1996 AC for the Selection Center for civil aviation Pilots Jet Airways (I) Ltd. Mumbai

5. 1996 Internal Selection Center Design & Implementation for International Safety Rating Group- Assessment Centre for Selection of Safety Engineers

Oil & Natural Gas Co. (ONGC)

6. 1999* Competency Assessment of Middle ManagementPsychological testing and competency assessment of middle level executives

Jindal Iron & Steel Co. Ltd. Mumbai,Tarapur and Vasind

7. 1999-2000 1. Assessment Center: Promotion and Development Center for Sales Personnel2. Internal Assessor Training

Colgate-Palmolive India Ltd. HO - Mumbai

8. 1996* Selection of Top Managerial Positions, including Managing Director

SPACO Carburetors(I) Ltd. Automobile Ancillary Pune and Vadodara

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2001-2005 [Strategic areas, deep interest; institutionalization2001-2005 [Strategic areas, deep interest; institutionalization

No Year Project Company

1. 2001 Design and Implementation of Software Engineers Selection System Patni Computer Systems (PCS) - Mumbai

2. 2003 Design, development and implementation of a series of Assessment Centres for the identification of Future Business Leaders.

Satyam Computer Services Ltd. Hyderabad, Bangalore, Chennai

3. 2003 Design, development and implementation of a series of Assessment Centres for the identification of Future Software Technical Architects

Satyam Computer Services Ltd. Hyderabad, Bangalore, Chennai

4. 2003 Internal Capability building through development of an Internal pool of Assessors

WNS Global Services (P) Ltd. (Subsidiary of British Airways) a BPO Bombay, Pune

5. Ongoing Since March 2004

1.Design and Implementation of Organization Wide Competency based Development Centres. 2.DC for all GMs & VPs3. Internal Capability building through development of an Internal pool of Assessors4. Training of all HOD and Sectional heads in Performance Coaching.5. Technical Leadership Framework : Competency Model Design & Development

Reliance Industries (3

locations)

6. 2005 Development Of Competency Based Systems For End User Sales Personnel & Sales And Marketing System Audit

PCS Industries Ltd. Mumbai

7. 2004 Organizational Diagnosis: With Special Reference To OCIL’s Readiness To Implement A Competency Framework Based People Management System

Owens Corning India Limited

8. 2005 1. Behavioural Leadership Excellence Model & Design and Implementation

of Assessment cum Development Centre for Services Group2. Behavioural Leadership Excellence Model and Design and

Implementation of Assessment cum Development Centre for Product Group

Sasken Communication Technologies Limited

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2006- 20072006- 2007No. Year Project Company

1. 2005 1. Design and Implementation of Competency based Assessment Centres &

2. Internal Capability building through development of an Internal pool of Assessors

TeleTech-India

2. 2006 Design, development and implementation of organization wide Competency based Assessment Centres

WNS Global Services (P) Ltd. a BPO Bombay, Pune

3. 2007 Technical Expert for NAC – NASSCOM for Assessment of Competence. With primary responsibility to Lead all Technical initiatives of TEC (Technical Evaluation Committee).

NASSCCOM (National Association of Software &Services Companies)

4. 2007 Behavioral Competency Certification of Delivery Group: The process review and Augmentation

Infosys Technologies Limited(Infosys Leadership Institute)

5. 2007 Behavioral Leadership and Technical Leadership Framework: Competency Model Design & Development and deployment facilitation.

Flextronics Software Systems (Aricent Technologies Holdings Ltd.)

6. 2007 Design And Development Of A Competency Framework For Lead Analyst, Senior Analyst & Analyst in WIPRO-UBSSupplementary Selection Tool Development based on Psychometric Testing for Entry level

WIPRO-UBS BPO

7. 2007 Technical Leadership Framework : Competency Model Design & Development

Sasken Communication Technologies Limited

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2008- Onwards 2008- Onwards No. Year Project Company

1. 2008 1.Fresher Selection System Design2. Workshops On Competency based interviewing skills3. PMS for freshers based on PR Attributes4. Competency based Training programmes

Flextronics Software Systems (Aricent Technologies Holdings Ltd.)

2. 2008 1. Behavioral Leadership and Technical Leadership Framework: Competency Model Design & Development and deployment facilitation.

2. Development Centre for all General Managers and VPs

Varroc Group-

3. 2009 Design and Implementation of Development Centres for a Select group of Middle-management employees

Indian Oil Corporation Limited.

4. 2009 1. Competency based Organization Structure and Development of Job descriptions 2. Design and Implementation of Competency based Performance Management System.

Varroc Group

5. 2010 1. Design and Implementation of Competency Framework and Competency based selection centre for Entry Level Pilots.2. Assessor Training Programmes for Pilot- Commanders – Internal Capability building for Implementation of Competency based selection centre for Entry Level Pilots3. Assessor Training Programmes for Managers – Internal Capability building for Implementation of Competency based selection centre for Entry Level Pilots

Jet Airways India Ltd.

6. 2010-2011

Assessor Training Programmes for Sr. General Managers and Assistant Vice Presidents – Internal Capability building for Implementation of Competency based Assessment & Development centrePreparation of Feedback facilitator

Reliance Industries

7. 2011 Competency based 360 Degree Feedback for MD & top management team

Varroc Group

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The summary or Trend analysesThe summary or Trend analyses

1985-1993: Localization (Indianization) of MNC

Competency frameworks (that was designed in EU, Germany, & US parent organizations), preparation of Method bank, AC stationary, supplemental psychometric tests, Assessors training and handholding for deployment

In the form of MDP: Seminars on AC approach, Assessors training program

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The summary or Trend analysesThe summary or Trend analyses

1994-2000: Full blown Competency framework

development for Organization wide use Start-up Assessment Centre design and

implementation for large scale selection

Indian Manufacturing organizations, Large PSUs (specialized project), Civil Aviation (Airlines Pilots)

Approach was mostly problem shooting events

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The summary or Trend analysesThe summary or Trend analyses

2001-2005: Along with Behavioral and Leadership Competency

Models, the Technical competency models construction and deployments

AC approach based interventions in strategic areas, across functions, deep interest, institutionalization

Mostly Indian fast growing Large or very large organizations. Top and middle management level.

Industry: IT (product & service companies), ITES/ BPO/ KPO, Petrochemical, Refineries, Telecommunication software

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The summary or Trend analysesThe summary or Trend analyses

2006-2007 (just before global recession) IT organizations large projects, serious

developmental centers with long drawn interest in overall Human capital approach; use of AC for Merger & Acquisition.

Organization wide deployment of Competency based HR system design and implementation

National level vision for AC (NAC) by NASSCOM (National Association of software and service companies); state Govt.’s Dept of education initiative for standard XII students’ preparation for employment in emerging BPO organization

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The summary or Trend analysesThe summary or Trend analyses

2008-2010Organization wide deployment of Competency based HR

system design and implementation or isolated competency based HR system design e.g.,

Competency based performance management system Competency based promotion system, Competency based Graduate engineers’ on campus

selection system, Competency based Technical & Managerial training

systems

Strategic leadership development as a proxy to ODAirlines Pilot, Cabin crew, Maintenance engineersIn Automobile, Petrochemical and refinery, Petroleum

product marketing company, PSU, Few IT telecommunication

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India Business Environment, Opportunities*

India Business Environment, Opportunities*

Strong Growth Momentum

• Sustained process of liberalization (since 1991): Continuous GDP

growth, Increased openness to foreign trade and investment - declining

tariffs, liberalization of FDI restrictions

• Rapid growth in export-oriented IT, ITES/BPO, & Retail industries

• Manufacturing is a strong base

• Fast growing Automotive sector (India is highest 2-wheeler producer in

the world)

• The above has stimulated Indian industry to restructure for international

competitiveness

• Strong balance of payments - rapid build up of reserves

• Growing portfolio investment

• Cross-party support continued for liberalization in-spite of coalition

Govt.

*Based on International Finance Corporation report, CDC report and other published data]

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But private industry remains underdeveloped

• Private investment only 15-20% of GDP

• FDI flows still low (< 3%)

• Industry contributes < 30% of GDP

• Only 10% of total employment is in the

organized sector

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Remaining Growth Constraints

• High fiscal deficits crowd out public and private investment• Severe infrastructure bottlenecks • Rigidities in labor and land markets• Widespread Govt. ownership of business, dominance in banking• Corruption is wide spread; particularly in Govt. regulatory

institutions (proximity to the government is an enormous source of profitability in India)

• More than 30% of Indians survive below poverty line and India has the second largest number of billionaires, second only to Russia

• Import tariffs, complex tax regimes • Restrictions on FDI in some sectors • Excessive regulation increases costs of doing business

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Investment Climate at a Glance in early 20th century

China India Thailand

% of Sr Mgt time with Govt. officials

9.2% 16%

Share of firms with own 30% 69% - generators

Days to clear imports 12 21 24 (longest)

Cost of Shipping 5.4% 8.5% 6.7%

Paved Roads (% of 88% 56% 97% total)

Cost of Capital 5.85% 12.3% 7.8%

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Opportunity

Large, rapidly growing domestic market.

Phenomenal increase of disposable income in the

hands of ever growing Middle class (350 million

strong middle class which commands a formidable

spending power)

Large, low cost labor force availability (though

business of labor arbitrage is under pressure but

growing)

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OpportunityOpportunity

World’ largest supply of scientific Man-power (but only 18% of the fresh technical graduates in India possessed the right skills for jobs in IT services companies) Engineering/IT/English language skills

Abundant availability of raw materials Political instability, but consensus on economic

policies Growth in private ports and SEZs (special

economic zones) addresses lack of infrastructure for export-oriented industry

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High Potential Sectors in India

Knowledge based organizations, as for example, Software services, ITES (BPO/ KPO) Autos and components Medium Engineering-based manufacturing Steel Textiles Pharmaceuticals Alternative to China for companies looking to source merchandise globally

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Ideas about specific business opportunities for AC-

professionals and Management consulting in

general

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Knowledge based organizations, as for example, Software services, ITES (BPO/

KPO)

Knowledge based organizations, as for example, Software services, ITES (BPO/

KPO)

1. Behavioral competency is not enough for these Knowledge based organizations. They need complex technical competencies, Techno-behavioral competencies, domain competencies, quality competencies for superior technology transfer, R & D, and superior service

2. Talent supply:Macro level data shows talent availability is in abundance. The ground reality is very different; competencies are not aligned, employability is low. Labor Market supply of competencies do not match the companies’ demand matrix of competencies. Pre-job and post employment competency development is of dire need of the day.

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Knowledge based organizations, as for example, Software services, ITES (BPO/

KPO) Contd.

Knowledge based organizations, as for example, Software services, ITES (BPO/

KPO) Contd.Talent shelf life is decreasing:Commitment to organization has diminished, work

environment is very stressful, retention is serious problem, no patience, employee change job frequently, immediate money is first priority, the younger generation seem to have very different life plans

As knee jerk response, Organizations getting into bonds,

variable pay, pay for performance, mechanism to increase control almost to obnoxious level. Reducing further psychological identification and getting into pure transactional relationships; everything is matrix driven no time for vision or innovation.

Talent supply is critical theme for management: Talent mix strategy is critical success criteriaHow much to buy (lateral hire – often 20-30%)How much to grow internally (entry level hire – typically 70-80%) pushing cost of development higher

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Knowledge based organizations, as for example, Software services, ITES (BPO/ KPO) Contd.

Knowledge based organizations, as for example, Software services, ITES (BPO/ KPO) Contd.

Multi geography HR management challenges (uniform corporate HR policies can not work across nations)

New theme related to Customer priced Competency emerging (competencies for which customer is willing to pay): strict SLA (service level agreement) deployment & delivery competencies are flavor of the day

New theme related to Techno-behavioral competency becoming critical (e.g., configuration management ability, release management ability, technology mentoring ability, Project management ability etc.)

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For Manufacturing and Auto sectorsFor Manufacturing and Auto sectors

Competition is too severe, growth is sudden and at a never seen before level, volume pressure, cost pressure, reducing margins are normal events

Line Mangers (in the upper middle level of the hierarchy) moving up in the hierarchy based on core value chain competencies, organization is heavily dependent on these employees; there is scarcity of supply and it takes very long to develop these talents. Unfortunately they have severe deficiencies in People Management Competency-cluster and Business management Competency-cluster. Both these competencies are too critical to function effectively on the job (external supply from HR service and Finance service proving to be futile)

Salary hike to attract and retain has gone high disproportionately, making cost of Management too high in comparison to compensation to employees in operation. Employee satisfaction index is going for toss.

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The issues from current reality, mentioned above has brought Competency Management, Organization design, OD into the centre stage.

These challenges are opportunities, in near terms, for you my colleague listeners

If you are planning to come to India to set a shop you are going to face these Challenges and consequent opportunities

To the extent Indian scenario matches with business metamorphosis here in South Africa these will emerge as ground reality here too.

Hope the insights will be of some help to you.

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Revisit the Objectives (contd.)Revisit the Objectives (contd.)

Objective:Insights for HR-Professionals and

Enterprise owners based on macro level secondary data and ethnographic approach

Ideas about setting up business in India specific emerging Industries

Ideas about specific business opportunities for AC-professionals and Management consulting in general

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Thank You!