HResonance

Air India and the Game of Chess

2012-05-27T18:38:00.000+05:30

There is a striking parallel between the battle of supremacy between Vishwanath Anand and Boris Gelfand, and between the Air India pilots and the Airline.

Neither player could win any game. Then Gelfand struck. In the next game Anand hit back with vengeance.

There was a kind of stasis in Air India for long. The pilots were difficult to manage, they had their grievances. Merger between Air India and Indian Airlines became messy; actually it practically did not happen as far as HR matters are concerned. The Airline was living with the problems and awaiting solutions from Dharmadhikari report.

Then pilots struck. They struck work. 1 – 0.

Air India derecognized the union, and dismissed more than 100 pilots. 1 -1.

It looks like the game might go in for a ‘sudden death.’ The High Court has already served contempt of court notices. The Airline has declared its intention to recruit new pilots. It will not be easy for them to do it. Pilots are not unskilled workers that a labour contractor can bring in large numbers.

And now Air India has declared a VRS to clean up the executive cadre. Hopefully that Airline will have cash to pay dues of the retiring employees.

The employees are having unenviable choices: join the striking pilots or voluntary retirement.

I wonder if this 'sudden death' would bring in privatization.

Vivek

Photo: Courtesy Google

Privatization of Air India and Ajit Singh

2012-05-13T23:46:00.002+05:30

Ajit Singh is talking about privatization of Air India. This is what he said in the interview:

Karan Thapar:Quite right, in retrospect we can say that it hasn't worked out . Second even if after five years, the two airlines operate as separate entities under the single name. For instance you have two sets of pilot, you have two sets of cabin crew, you even have two directors of engineering. No real effort has been made over five years to implement the merger?

Ajit Singh: See, what I have come to know is about 70 per cent what should have happened in merger has taken place. ITs and many areas marketing force has been merge but that key area, different pilot cabin crew, engineers working on this to different airlines, HR area basically hasn't yet been merged and that's why the Dharmadhikari committee was appointed.

Karan Thapar:In which case minister, the obvious question is this. Do you believe the time has come for the Government of India, to boldly and bluntly say that our ultimate intention is to privatise Air India? And all the revival plans were putting in the place today, are with a view to eventual privatisation. Because the government has no business running an airline.

Ajit Singh: See, first we have to put Air India on right track, make it viable. And then when you look around you note the days of national carrier are gone. Any country you look at, those days when national carrier was reality, are no longer there. So those facts are with the government, we all know that but our priority was, our whole effort is to make Air India, a viable entity.

It looks like he may have seen the hate mail on internet. Here is a glimpse:

“I don`t understand why Air India still exists, when there are enough private airlines to do the job Just shut down the airline and dispose of all assets to repay government for all the taxpayer money these people have wasted over the years.”

“It’s so distressing to witness this whirlpool of selfishness - the pilots, the management and the government, none seems to care about the plight of Air India I hope the airline is sold away - it’s the only way we can prevent crores and crores of tax payers’ money going down the drain.”

“The blame for this sorry state of affairs of AI rests squarely on the politicians and bureaucrats who have been milking the airlines and treating as their private taxi service. Employees not getting their due salaries on time and the government blames these vulnerable employees Handover the airlines to private sector and see the same enterprise with the same people turnaround in no time.”

Will privatisations help? It is anybody’s guess; Mallya’s Kingfisher Airways is nose-diving in a sea of red like a kingfisher bird nose-dives into waters.

Let us watch how the story unfolds. Let us see whether Ajit Singh is doing sabre-rattling or is he serious. With 71 pilots already out of jobs, pressure must be building up on pilots.

But the mood of the customer and tax payer is reflected in the comments. They want privatisation.

If it happens, out goes Ajit Singh, the Aviation Minister, along with the pilots! Phew!!

Vivek

The Central Issue in Industrial Relations and The Leadership

2012-05-10T13:38:00.001+05:30

It is important for us to appreciate what the central dilemma in Industrial Relations is. Essentially it is Control vs. Commitment. This goes to the root of the issues; nay, actually it is the root of the issues!

As IR managers we exercise ‘Control’ element to the highest level. ‘If you don’t do this, you will entail that’ is the language of many settlements between managements and unions. Workmen must give the stipulated output else they will not get the incentive, or they will invite disciplinary action; such are the common clauses. We do not have to feel sorry for having to include such clauses in the settlements because they get operational only in the case of certain eventualities. Those actions must be taken in the long term interests of good order and smooth work flow. A manager is paid to manage things and ‘controlling’ is inseparable part of his job.

And we IR managers know that controlling is only half of the story when it comes to building a good, productive workplace. The other half on which happily increasing emphasis is being placed in post liberalization period, is building ‘Commitment.’ We have heard stories of how Toyota built a loyal workforce, how Tatas did it at Jamshedpur and so on. There is something gracious and magnanimous about it which is so attractive, appealing, dignified and something that we sorely miss in our daily work life.

Most of the jobs in organisations are not supervised closely; we work largely in unsupervised environment. If we do not allow use of discretion we will lose the game. It calls for promoting commitment, which cannot be promoted by close supervision. Perhaps the only exception is when the supervised person is very new to the job, and such phases are transitional. A manager is paid to get the best performance from his team members and that can be done when he promotes commitment. Promoting commitment, like controlling, which we discussed earlier, is an inseparable part of his job.

So a manager must control as well as promote commitment, both! He is at all times torn between these polarities. And nowhere is it more visible than in managing Industrial Relations!! We can change the words of Donald Murray’s quote [“You can command writing, but you can’t command good writing”] to say “You can command performance, but you can’t command good performance.”

How to manage the polarities? Obviously there is no ready-made solution; if there was any, life would have been simpler. First step would be to understand that Control is synonymous with Power, and Commitment is with Trust. So this is a power and trust game. A friend made an insightful statement in his training program - he asked the participants what the opposite of ‘Trust’ was. He proceeded to answer it by declaring that in an organisational set up, the opposite of ‘trust’ was ‘power.’

Essentially this means that when we ‘control’ people, we are using power which in turn erodes the trust levels. The dilemma is that trusting means that allowing people to make choices of actions. It also includes not choosing certain actions. This is extremely difficult for a manager to accept.

We understand the situation better when we realise that the space between the continuum of Control and Commitment is really ‘Influencing.’ Our effectiveness will be determined by how well we influence people.

Mr HT Parekh, the then Head of HR at L&T published a booklet called ‘The Sun Rises in the West.’ It was a collection of the circulars he published and letters he wrote to employees. Those circulars and letters were very imaginatively written capturing certain developments in the industry abroad. He was effectively pointing out to employees that increasing productivity and proactive change are the two things of highest priority for them. The message was sometimes direct, sometimes subtle. What stood out was that the message was reaching continuously! The circulars were published with regularity.

Asian Paints publishes a magazine ‘Tutari’ which is exclusively devoted to education of workers. It does not publish stories that a typical house magazine would publish. Tutari captured the prolonged strike and lockout at Hindustan Lever in the late eighties very imaginatively. It picked up the propaganda material of both Management and Union and published it as a special Tutari issue. The workers got a case study in hand. Tutari is published for forty years now!

The catchwords are imaginative communication and continuous communication. We often tend to reach out when an ‘event’ occurs or is on the anvil. We try to reach out when there is a dispute or when we are going for a settlement. Such messages do not make impact because they are seen as communication advancing management’s agenda. The best way to communicate and influence is to place the facts and raise questions and leave it to employees to draw conclusions. [Managers with excessive ‘controlling’ style are uncomfortable at this suggestion!] The best part in influencing is to get people to think on an issue and if possible generate a discussion on it. I have been often surprised by the balanced and mature view that people take on industrial relations issues in such cases.

We were discussing productivity in a training program when one employee pointed out that the employment in their factory was reducing as the productivity increased. The trainer asked them to give information of employee strength. He pointed out that the old factory was employing less number of employees, true it was, but the company had set up two more factories in the recent past adding to the overall employment in the organisation. He also pointed out that more jobs were created in white collar segment than in blue collar. The employees attending training reflected on this as one of them, an operator, observed that it was not a bad trend as their children will be seeking and getting a job in white collar segment only. For those who have worked in factories where reduction in number was talked about in hush-hush tone, the response was a surprise.

While the most important rule in influencing is respect and honour, the two not-so-frequently-used rules are addressing fear of the other party and expressions with openness and candour. The difference between good manager and good leader is, to my mind, highlighted by their practice of these two rules.

You would have heard of IT/ITES companies which reduced the employee strength during the downturn so cruelly that when they wanted to reappoint them at the turn of fortune, nobody wanted to join them. Bijoy Sahoo, the Chief of HR of Reliance explained at the Thane HR Group’s seminar how Reliance made every effort to manage redundancy with open communication and dignity and fairness.

Influencing gains high importance because unattended conflicts can snowball into unmanageable situations. There is no better example of this than the current Air India pilots’ strike. Their grievances following the merger of Air India and Indian Airlines were voiced long back and have not been addressed. This is a luxury that a public sector unit, oblivious of its social responsibilities can afford. Managers in private organisations must act immediately. A friend was told by his employer: “You are not paid for running a factory, but for anticipating issues. You are paid not just for anticipating issues, but for responding to them quickly. And you are paid not just for responding to issues quickly, but for influencing employees positively.”

Influencing employees positively requires dealing with equal hand and a sense of fairness. In an organisation this is not easy to ensure. There will be lapses notwithstanding declarations in policies. I have often quoted this approach of Toyota as I find it very practical and I am tempted to quote them again.

[Quote] “In a sense, Toyota agrees with the argument of the union advocates that fair and consistent management is essential and managers of work groups cannot be counted on to always act in a fair and consistent way. There needs to be mechanism for all employees to be heard. Being heard is the foundation of the Toyota culture of continuous improvement. So, Toyota sets up mechanisms through the HR department to allow team members to be heard.

We saw that even the HR department can be viewed as biased. The counter measure was to set up a separate “I” team representing a cross section of the plant to investigate employee issues.” [Unquote] [See ‘Toyota Culture’].

In final analysis it is the leader who leaves his stamp on Industrial Relations. The way Rusi Mody managed industrial relations in difficult era is inimitable because he did it his way. In sharp contrast to Mody and Tatas, there are other large corporations where leadership style is ‘feudal.’ Unfortunately they outnumber the enlightened. We saw some unfortunate examples of this during the infamous textile strike. The textile strike story is replete with cases of broken promises to workers and depriving them of legal dues to make a quick buck.

So we have to make a choice as a leader at every moment. While finding answers to control and commitment [in some cases commitment to one’s own principles and values] we have many options; it depends on what we want the history to tell the next set of managers.

Vivek

This represents essentially what I spoke at the ITC’s HR Meet on April 30. I have, however, elaborated some points.

Siemens Union's Training Facility: Indrayani Cottage

2012-04-18T17:24:00.003+05:30

I visited 'Indrayani Cottage' which is a training facility of Siemens Workers' Union at Malavali near Lonavala. Simple but elegant. No frills, very functional. Here are some snaps!

Vivek

Kingfisher: Vijay Mallya Writes But Employees Fight.

2012-04-02T14:55:00.000+05:30

Dear Colleague,

Further to my earlier mail and media statement, I am pleased to advise you that the formalities of un-freezing our bank accounts was completed yesterday following our payment of Rs 44 crores to the Income Tax and Rs 20 crores to the Service Tax authorities before March 31st.

My only focus now is to start paying your seriously overdue salaries.

All junior staff will be paid before Easter ie on Wednesday April 4th. All Pilots and Engineers will be paid on Monday April 9th and Tuesday April 10th.

For your kind information, we have 3 Bank holidays this coming week - April 2nd/5th and 6th.

We have managed to keep the lights on in our days of darkness with adversity from every conceivable direction.

The freeze of our accounts and consequent IATA suspension, the resultant loss of the BSP booking platform, the adverse media blitz and the loss of customer confidence are all serious challenges that we have survived.

All the credit goes to each one of you who have gone to great personal sacrifice for the best interests of your Company and your guests.

We need to re-build confidence and earn the trust from our guests back again. I have been overwhelmed with emotion to receive several mails from our King Club members expressing continuing loyalty and wishing that we quickly regain our position as India's single largest Airline. This will not be possible without your continued efforts, commitment and goodwill towards your Company.

Any flight disruptions and guest inconvenience will destroy all our efforts which is exactly what our competitors want and I suspect the media wants as well so as to satisfy their breaking news headlines. I appeal to you not to play into their hands.

Starting this week, I am going to be personally available at each major station for one day a week to listen to the concerns of all staff at all levels.

Despite all my other commitments to UB Companies, I am personally passionate about and committed to your Airline.

Please stand by me and strengthen my hands.

Let's fly with confidence. Let's not become fodder for media and competition to feed off. After all, we have pride and self respect.

I look forward to your continued commitment for which I am truly grateful.

Warm Regards,

Vijay Mallya

Member of Parliament, Chairman and Managing Director,

KINGFISHER AIRLINES LIMITED

A UB Group Company

Employees Respond:

To
Dr.Vijay Mallya
Honorable chairman
Kingfisher Airlines Ltd.

Dear Sir,

With reference to your mail sent on 1st April , 2012 all the undersigned KFA employees have come to a point where operations have become unsafe due to stress caused by our financial constraints.

In the past we have received similar E-mailsassuring us that salary would be paid on certain date. However, none of the assurances have been met. The resulted salary payments being overdue for four months has left employees feeling cheated and deceived resulting in non-believing your latest mail.

Now we appeal you to pay Two months’ salary(Dec‘11 and Jan ’12) on the 3rd April 2012 latest by2000 Hrs and the balance of our dues to be paid latest by 20th April 2012(Feb’12 & Mar’12).

We are not currently in a mental state to undertake any duties and doing so would jeopardize the safety of our aircraft and more so ever our valuable guests.

All the employees have stood by you during this crisis and will continue to do so provided our personal welfare is also given due consideration

By All Employees

A Question of Propriety: Divorce Case

2012-04-01T14:05:00.000+05:30

When she called up I was surprised and shocked. I had not imagined that the situation could be so bad. She was seeking a meeting with me, and said that her son was just a few months old. She wanted to make sure that when she travels a long distance to meet me, I will give her adequate time to hear her case.

She said there was no choice left then, she was expecting her husband, an employee, to file a divorce petition soon. She wanted to meet me in that matter, she sought my help. I used a small pause to gather myself. Obviously there was a conflict between an employee and his wife, and I was getting drawn in it somehow. ‘Limits are placed by one’s official role;’ I explained her, adding ‘I will not be able to transgress those limits.’ I also told her that as an HR manager my first responsibility is to my employees, not to others.

She said she understood my position, but politely pointed out that I was taking a stance before hearing her. She was articulate, persuasive and spoke fluent English. Something inside me told me that the situation was serious and I must exercise caution.

When it became clear by evening that I will have to travel to Hyderabad, I wondered at the synchronicity. She had called up from Hyderabad and she was going to travel all the way to Mumbai to meet me. And work demands that I go to Hyderabad the next day!

I called her up and mentioned my travel plan. I invited her to meet me at my hotel. She was welcome to join me for a breakfast meeting, I advised her, with her father. She came there with her father and uncle. She introduced herself, she was well qualified, a post graduate. Her marriage was arranged through some known persons. The young lady was not even thirty. Her husband was placed abroad for work and had a three year contract. She travelled with him. Not a happy marriage, she said. They fought bitterly. He treated her badly. The two year old marriage was on the rocks.

It was a dowry case!

The young lady was surprisingly well composed and did not make a melodrama of her story. Attempts to reconcile had failed. He was now shifted to India and she did not know his salary at all. He was giving her no money, and did not even come over to meet his son.

She said that he would present wrong information to the court about his salary which would affect her claim for alimony adversely. I should help her by giving her his salary details, she said, so that she could file a justified claim for maintenance.

Discreet enquiries led me to conclude that the facts explained by her were essentially correct, although I could not ascertain whether it was a dowry case. She called up later gave exact details of income mentioned by him. It was clear that he was misleading the court.

Normally salary details of an employee are never given to anyone except in some cases to banks. I wondered what I should do in such a case.

What would you suggest? Would you give it to her if you were in my position?

Vivek

Meru, Air India and Kingfisher – Sleeping Regulators, Greedy Managers and Cunning Politicians

2012-03-22T15:53:00.000+05:30

There are three news reports about strikes. When read individually, those may sound as very routine stories, but when read together they present a terrible picture of our society.

The first story is of Meru. They have done pioneering work in establishing Radio Taxis in India. The drivers enter into a contract with Meru and it is a contract for service and not contract of service. There is actually nothing new which Meru has done. Such Radio taxis exist almost all over the world and all follow similar if not same contracting with drivers.

This means that Meru is not the employer of the drivers. The drivers are actually ‘contractors.’ As a consequence, the drivers are not workmen and do not enjoy protection of the Industrial Disputes Act. But given the psyche of drivers who are usually not well read, they cannot see anything else than an employer-employee relationship. The political leaders however understand the difference. And certainly the foreign educated son of Narayan Rane who leads Swabhiman understands this aspect. But they have a vested interest in fomenting trouble for political gains. Most of the drivers are not locals, they belong to the North belt and so out went MNS and Shiv Sena unions which had organised the drivers earlier under their unions. Nitesh Rane is cleverly recognised this opportunity to build a political base.

And adding fuel to the fire is the MMRTA or Mumbai Metropolitan Region Transport Authority which is notorious for not deciding the Auto-Taxi fares quickly after any price rise. This invariably leads to strikes which Mumbaikars have got used to. Whether they are accountable and to whom is another story, but it is a story of simple neglect and dereliction of duty. Since they have not revised the fares, one would have expected that Swabhiman would take up the issue with MMRTA. But no! This is what the new report says....

K K Tiwari, president of the Swabhiman Taxi Rickshaw Union, said: "Drivers have to pay a fee to Meru every day. Either the fare be revised by Re 1 per km or the charge levied by the management be reduced to help the drivers reduce their losses. The strike will continue till our demands are met."

If Meru discontinues its operations, which I hope they will not, it will be the insouciance, and vested interests of political ‘leaders’ and the negligence of MMRTA which will have to be blamed.

The second case is that of Air India whose pilots have threatened to go on strike if their salaries are not paid immediately. Actually many have not been reporting for duty. The Air India story is too well known. No salary for three months is a bad situation indeed. Corruption at all levels, not just in Air India but also including their bosses in New Delhi, complete mismanagement of merger of the two airlines are factors that have led to this situation. Who is really responsible? Air India employees presume that the airline will not be closed down. Given the vested interests that are involved, and also political considerations, they may be right in their assessment. So taxpayers will finally pay for the greed of who’s who in Air India and in the Government of India. Greed, vested interests of political leaders and neglect are the factors that are bringing down this airline.

Air India plans to have smaller companies to handle various operations. This means that many employees will be moved to different companies. While such a move may be justifiable on commercial grounds the ability of Air India to manage any change is a big suspect. It will also cause untold worries and hardship to employees who are already worried about the future. The average age of Air India is quite high meaning there are many who are in the higher age groups. Impact on them at this juncture of their life is going to be an unbearable hit.

Kingfisher Airlines is a classic story of mismanagement. This is what Anjuli Bhargava says in her story on Kingfisher “Kingfisher Airlines chairman Vijay Mallya, of course, pointed to the various negative factors that his airline was battling. What he seems to ignore is that all these factors apply to the other airlines as well. Sure, oil prices have risen, but they have risen for all the airlines. Taxes on air turbine fuel remain an issue, but every other airline in India pays the same. And foreign direct investment has not happened for any of them. So, if he finds himself in a unique situation, he has only himself to blame.

Mallya has confused business models — low-fare and full service — time and again, and he has paid the price for that. He has never had a proper management team or chief executive in place (and if rumours are true, Sanjay Aggarwal, the CEO who joined in 2010, will be with Mallya only up to March). Instead of focusing on making his operations more efficient, Mallya has — without any compunction — relied on his political clout and influence to convince Indian banks to bail him out. No matter what he says, it is a bailout that he has got. No banker in his right mind would agree to fund his unviable and inefficient company unless it happens to be a government-run bank such as State Bank of India. Can anyone tell me how much exposure Standard Chartered or HSBC have to this airline? How come they are not losing sleep over keeping Kingfisher flying?........

.....And no one should look at the Directorate General of Civil Aviation for steps such as cancelling the airline’s scheduled operator permit and so on. In a country like India, he will be kissing goodbye to his job (and his career) if he starts taking strong, decisive steps like this. It is not even up for discussion.”

The management practices of Vijay Mallya’s companies are not written about because he has both - money and power! But his views on managing a company are gulped down with a smile on face. Greed plays a part there too and corruption is not a monopoly of the babus in New Delhi. The only smart move Vijay Mallya is making is not investing in his own airline in spite of having literally tonnes of money. Captain of a sinking ship goes down with it but not of an airline – he perhaps will fly higher!

What is happening to the pilots and other staff of Kingfisher? Many left and joined Indigo. But Indigo has stopped recruitment. So others have no choice but to wait for their luck to favour them. And some pilots have threatened to go on a strike. It will not help. There is a big fall in social status for Kingfisher employees, though the same can not be said of Vijay Mallya.

Greedy, irresponsible people have caused a great damage. MMRTA and DGCA will not act. Nitesh Rane can hold Mumbaikars to ransom. Mallya is having a great time, and all Aviation ministers have behaved as if they owned the airline. And nobody is listening!!

Vivek

Captured by Corruption

2012-03-10T13:02:00.000+05:30

The trouble with studying in good management institutes is that the students very often do not understand what it means to work in industry. They dream of working for Infosys, Wipro, Tatas and such good companies, but the masses work in small organisations. The stories of exploitation and hard life the workers lead are usually not visible to the students.

This has a fallout. Many students do not understand why the Government makes such silly laws like the Factories Act. They do their summer placements, usually their first serious work in a factory, in good organisations which comply with the legal stipulations. Sometimes they offer better than what the law prescribes. But a law is really made for the contingency of its breach. Small enterprises and ‘make-a-quick-buck-entrepreneurs’ merrily flout the legal provisions. And a corrupt bureaucracy helps them too. We understand the purpose of law making when we see this reality.

Sometimes NGOs highlight the plight of the exploited workers. I recently read the report called ‘Captured by Cotton.’ [Link]. It is a report on how dalit girls are systematically exploited by garment makers in Tamil Nadu who make goods for European and US markets. The report sums up the situation in its introduction:

In India, in the southern state of Tamil Nadu, girls and young women are recruited and employed on a large scale to work in the garment industry. The promise: a decent wage, comfortable accommodation, and, the biggest lure: a considerable sum of money upon completion of their three-year contract. This lump sum may be used to pay for a dowry. Although the payment of a dowry has been prohibited in India since 1961, it is still a general practice in rural India for which families often incur high debts. The recruitment and employment scheme – the Sumangali Scheme – that is the subject of this report is closely linked to the payment of a dowry. The Tamil word Sumangali refers to a married woman who leads a happy and contented life with her husband with all fortunes and material benefits. The reality of working under the Sumangali Scheme however, stands in sharp contrast to the attractive picture that is presented to the girls and young women during the recruitment process. Excessive overwork, low wages, no access to grievance mechanisms or redress, restricted freedom of movement and limited privacy are part and parcel of the working and employment conditions under this scheme. The promised end-of-contract sum is not a bonus, but part of the regular wage that is withheld by the employer. Often women workers do not even receive the full promised lump sum. Without exaggeration, the Sumangali Scheme in its worst form has become synonymous with unacceptable employment and labour conditions, even with bonded labour.'

Countries which thrive on outsourcing are easy exploitation grounds by their unscrupulous employers and also by MNCs who prefer to turn a Nelson’s eye to it. The ILO has published an ‘ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy.’ This is a step in the right direction but nevertheless the exploitation continues.

We know the story of Foxconn which came in focus because of its high profile customer Apple. There are several reports available on how Foxconn works and all are, without exception, shocking. Watch this video to get a glimpse [Video Link].

The NY times article ‘The Dilemma of Cheap Electronics’ points out a very real problem. It says:

‘Nobody wants to see workers exploited, and if Apple can pressure Foxconn to clean up its act, it should...... In other words, what assurance would the Apples and Dells and Panasonics have that if they forced their Chinese contractors to adopt American-level wages and conditions, their competitors would all do so simultaneously?...... The issue is complicated. It’s upsetting. We, the consumers, want our shiny electronics. We want them cheap, yet we want them built by well-paid, healthy workers. But apparently, we can’t have both.’

And see this video too [We shop, who pays?].

The assumptions behind these statements are faulty and do not indicate what we want. It is okay if the workers are paid above minimum wages, but they must be paid! In many cases they are denied what is due to them. The unacceptable working conditions must be done away with. And all this can be mandated and implemented by the Government. Relying on the ILO convention is enough. If bonded labour persists in spite of the convention, then obvious conclusion is that things will not improve without rigorous implementation of labour standards by the Government.

And it also means that workers have to free themselves from the vice like grip of the corrupt bureaucracy.

Vivek

[Picture courtesy: Captured by Cotton]

Every Closed Eye Is Not Sleeping, And Every Open Eye Is Not Seeing!

2012-03-08T00:12:00.000+05:30

“Where are you Lulu?” I called out to talk to my parrot, Lulu.

“Here, right above your head on this small branch,” he responded. I had difficulty spotting Lulu hidden in green foliage of the mango tree. “I was watching you yesterday speak to a girl student. It appeared to me that she was visually challenged.”

“Never knew you follow me, Lulu. Yes, she was visually challenged.” I said. “She was appearing for placement interviews. She said that some of the interviewers showed insensitivity in interviews. The mere recollection brought her to tears; it must have hurt her deeply.”

“And I saw tears in your eyes too! Men become sensitive only when they grow old!!”

“May be you are right. People always thought of me as a man with the heart of a solid rock! My children now laugh when they see me crying while watching a movie.”

“Crying? So what did you discuss with her? Did you offer her a job?” Lulu asked.

“I am no longer employed, Lulu, you know that very well. She had several questions on her mind. The reluctance of organisations to offer her a suitable job was finally taking toll, her confidence was eroding.”

“Hmmm.......it is unfortunate, and I hope she gets a good job soon. But I have seen visually challenged persons working with speed on their laptop. Don’t your fellow professionals know that they use software called ‘Jaws? It literally talks to them.’”

“Life would have been different if HR managers were so well informed! But I can’t really blame them. I too did not know about the software and that they do not have a handicap when it comes to working with laptop.”

“Is being visually challenged really a handicap? I remember what happened when you screened a movie for your students. The most insightful observations were made by a visually challenged student who actually ‘heard’ a movie.” Lulu wondered.

“I remember that day. I was actually shocked to hear him raise some questions and observations. I was then so moved ....I had to search for words. Good that he did not see my moist eyes.”

“So visually challenged persons can understand the intricacies of human emotions. I guess they might be better than others at that.”

“Yes, I would agree.”

“Is rational thinking affected if you are visually challenged?” Lulu asked.

“Not at all. The two are not connected. I mean some may be better at it and others not so, but it has nothing to do with their being visually challenged.”

“Interesting.”

“What?”

“You human beings believe that you see with your eyes. The fact is that it is your brain that “perceives” what you think you see.” Lulu said.

“I agree Lulu.”

“You have to make an effort to see things....to perceive them and that too correctly. Remember perception is intentional.”

“Sometimes that is not enough. There is also a question about the safety of visually challenged people in the minds of recruiters.”

“Nonsense.” Lulu shot back.

“What?”

“I wonder why you just don’t see what goes around. People actually are more protective of a visually challenged person in open spaces and on streets. And so they do in offices.”

“Hmmm.....let me think what you are saying.....are you saying that it is all about being socially conscious and inclusive?”

“That is right, but it is such a cold and inert statement. I like what Bill Cosby said.”

“What was that?” I asked.

“Every Closed Eye Is Not Sleeping, And Every Open Eye Is Not Seeing.” Lulu quoted him as he perched on my laptop and looked at me meaningfully.

Vivek

Bajaj Auto Union: First Steps On a Road Less Travelled

2012-03-01T20:48:00.000+05:30

Arvind Shrouti of Option Positive, the advisor to 100+ unions in the Pune – Chinchwad belt invited me to join a very novel project. If it is not the only one o fits kind, it is surely one of the rare projects in India.

Vishwa Kalyan Kamgar Sanghatanadecided to shape its and its members’ future proactively. It invited Arvind Shrouti to help its members define it and prepare plans for future.

Vishwa Kalyan Kamgar Sanghatana [VKKS for brevity] has a very interesting history. Bajaj Auto closed down its Akurdi plant on 29^th Aug 2007 abruptly. The intention was to move production to Uttaranchal plant which offered advantages in terms of labour cost and financial benefits. Shiv Sena union seems to have helped Bajaj in this closure. VKKS stepped in and got the Shiv Sena union derecognised, and fought lone battle against Bajaj Auto. Finally a settlement was arrived at. Broadly speaking, as per the new terms of contract, each worker was to be paid upfront Rs 5.75 lakh in cash in hand and the remaining Rs 12 lakh would be paid in monthly instalments of Rs 10,000 for the next 10 years.

VKKS then organised the workers at the Chakan Plant of Bajaj Auto. This history is important. The immediate concern of its members appears to be how to protect them from a possible loss of job in future. They are aware that the vicissitudes of economy can hit them before they are ready for it. Their long term vision is a reflection of their desire to keep happiness and wellness, not just physical wellness but psychological too, as priorities, while preparing for future shocks, if any. And they are aware that unions have earned a bad name in recent times, they want it to have a positive image for their union.

The one day workshop generated a lot of ideas and enthusiasm. It was preceded with some work on delegates working in groups, preparing collage to convey their dreams with pictures. Interesting thoughts had gone behind making collage. Emerging strongly were concerns of children’s education, social security and empowerment of women. They showed heightened social awareness stating that they must play a part in preventing female infanticide! One group emphasised the need to listen actively, while another group emphasised the need to make their union vice-free. One delegate narrated how he had helped an employee to give up the habit of chewing tobacco [I saw his sms to this delegate thanking him for it!]. A lot of new thoughts and a renewed dedication to take charge of their own lives - this is what made this event so energising.

Establishing meaningful livelihood is everybody’s goal, it should be. It means having enough money to provide for oneself and family and ‘acceptance of his sense of worth.’ If deliberations are any indication, VKKS delegates are undoubtedly marching in that direction.

I was fortunate to be a part of this endeavour. I wish them success.

Alvin Toffler said, “For the first time in human history, virtue is a condition of effective work.” Yes, people are listening Mr Toffler.

Vivek

PS: The photographs show Arvind Shrouti leading the discussion and the delegates involved in a group exercise.

Preparing For Future

2012-02-26T21:00:00.000+05:30

I delivered this address at the Seminar of the National HRD Netwrok’s South Gujarat Chapter on Feb 25, 2012 at Bharuch. This is an edited version.

Peter Drucker said it all: Create Learning Organisations

To begin the discussion, let me say that Peter Drucker’s Theory of Business holds good even today. Just in case I sound very academic to you, let me mention what Peter Drucker said. He said ‘every organisation is built and run on a set of assumptions about markets, customers, competitors, value perception and so on. When those assumptions are in harmony with the external reality there are conditions for growth and success. When there is a mismatch, the seeds of crisis are sown.’

The message is clear. If you want to run your business successfully, first reflect on your assumptions about everything in business, have clear understanding of the reality and ensure that there is a match between the two. Everybody knows that this is easily said than done.

Peter Drucker just stopped short of saying that the organisations need to be ‘learning organisations’ in order to be successful. Peter Senge coined that word. We know that a learning organisation has the capacity to adapt and change. It actually takes Drucker’s thought forward. It is important because it also shows us a way of how to prepare our organisations for future.

Learning Organisations Create a Shared Vision

The first hallmark of a learning organisation is a shared vision. Much has been said on this subject so I am not going to talk about it except pointing out some wonderful exercise done by State Bank of India’s Chairman Mr OP Bhatt.

Mr Bhatt screened the movie ‘The Legend of Bagger Vance’ for his employees. Now you will notice that the word Bagger Vance is phonetically so close to the word Bhagwan. This is not without reason. This is a story based on Bhagwad-Gita itself. This movie is about two persons - one is a golfer but he has lost his swing, or in cricketing terms, he is out of form, and the other is his caddy, who doubles up as a guide. Mr Bhatt used this effectively to convey the point that State bank of India is out of sync with business requirements and needs to get its act together. That was a very interesting way to share the reality and share a vision to get people to subscribe to it.

Learning Organisations Create Opportunities for Reflection and Dialogue

The second hallmark of a learning organisation is that the people discard old ways of thinking which they use for solving their problems. I am reminded of the report in the Times of India on Jan 7. I will read out a part of the news report. It has the statements of two MDs of auto companies, Maruti Suzuki and Toyota. I invite you to listen carefully and note the difference.

So here we go - ‘Maruti Suzuki which lost 83,000 units in sales - worth around Rs 2500 crore - due to the labour unrest that hit its operations last year, is clear that part of the problem was a communication gap between the workers and the management. "I hope the workers in Manesar understand that an internal union better represents their interests," said Maruti MD Shinzo Nakanishi. While the strike hit Maruti's sales and profitability, its parent was clear in how it viewed the problem. "Suzuki has a lot of experience handling strikes in Japan and elsewhere," said Nakanishi. "If a market is growing these problems are not possible to avoid and every company will face this kind of situation. How quickly you handle the issue is important." Remember what Peter Drucker talked – he talked about assumptions about everything including how to manage conflicts. Do the remarks of Maruti Suzuki’s MD show that he has learnt anything from the two strikes that happened in succession?

The same news report also quotes Mr Vikram Kirloskar, Vice Chairman of Toyota Kirloskar. Remember that Toyota also had their share of the labour strife. Here is the relevant part – ‘Said Vikram Kirloskar, Toyota Kirloskar Motor vice chairman: "We're trying to improve communication with team members and instil ownership in the company. When we started out, we ended up with fresh hands and failed to understand their demographic and personal requirements. That's why we had labour problems in the first plant but the second plant the going has been smooth. We have promoted career development and ensured a mix of experienced and new people." Don’t the remarks of Toyota Kirloskar’s Vice Chairman show that his organisation has learnt something new?

That is the big point about a learning organisation. People must examine their ways of thinking, and assumptions; they must discard old ways of thinking which they use for solving their problems. Toyota seems to have got it right, Maruti Suzuki is yet to learn. At this stage you might ask me how to get people to examine their ways of thinking, and assumptions; and make corrections? This is a valid question. Let us discuss some answers to it.

There are two aspects about any change which are so vital – the first is about the culture. You are aware that Toyota faced a big crisis in Aug 2009. A Toyota Lexus went out of control and resulted in death of a family. That resulted in recalling several thousand vehicles and tremendous cost to Toyota. The book ‘Toyota Under Fire’ recounts this story and culls out lessons for managers. This is what the authors say, I am quoting them:

‘The chief questions to ask yourself about how your company will respond in a crisis are not about contingency plans and policies, but about your culture and your people. Have you created a culture that rewards transparency and accepts responsibility for mistakes? Have you created a culture that encourages people to take on challenges and strive for improvement? Have you created a culture that values people and invests in their capabilities? Have you created a culture that prioritises the long term? Most attempts to change during a crisis fail.’

The culture will promote or prevent learning and adapting. We as HR managers must focus on developing culture. That task is not easy. It is now clear that the language determines the culture. That is one of the ways to change it. We have to examine what language we use at work place. Is it a language of complaint or is it a language of commitment? Is it a language of blame or is it a language of personal responsibility? And to rephrase the point of Peter Drucker that a business is built on assumptions about everything – Is it a language of assumptions that hold us or it is a language of assumptions that we hold?

We discussed three cases – Those of State Bank of India, Maruti Suzuki and Toyota Kirloskar. I leave it to you to conclude what language their managers were speaking – did we hear a commitment or a complaint, and what assumptions which they held were revealed in their remarks.

Change the Language to Create Desired Culture

The language of complaint is counter-productive because it is easily expressed, and it says what we can’t stand. It generates frustration, it is non-transformational, and it is energy sapping. On the contrary, the language of commitment is spoken not casually but intentionally, and it expresses what we can stand for. It generates vitalising energy and is transformational. The language of personal responsibility has similar characteristics.

The issue then is how can we promote a different language, a culture-changing language, within our organisation? The answer, to my mind lies in what we speak to ourselves and how we can create opportunities for meaningful dialogues.

We must reflect on events in our work life, our interactions with people to understand what meaning we make. It determines how we see the world around us and how we act in it. How we talk to ourselves determines how we act. This does not happen automatically but it must be done intentionally.

The interpersonal talk on the other hand must show greater empathy. You will recall that the 5^th habit of the famous seven habits of successful people is ‘Understand first and then seek understanding.’ We are discussing ‘Preparing for Future.’ Ladies and Gentlemen, my submission is that we must focus on the language we speak in our organisations and arrange dialogue between various groups that would lead to better appreciation of each others’ view point. Seamless organisation is another characteristic of a learning organisation, and it is achieved by promoting dialogues.

I am now going to talk about one more hallmark of a learning organisation. I am acutely aware that the time is short, and this is the last session, so I will conclude after speaking about this aspect.

Organisation Citizenship Behaviour is promoted through Institution Building

The magazine Frontline published a story in September 2010. The caption is ‘Poisoned Ground.’ It is subtitled ‘Hindustan Unilever is avoiding its responsibilities to its workers exposed to mercury in the thermometer factory it owned in Kodaikanal.’ It alleged death of 23 workers due to mercury poisoning and several others are affected. The article said that the 360 Kgs of mercury was spread over the factory site. But the company that is Hindustan Unilever denies all this. In case you think it was sensational journalism, let me tell you that the Frontline cover story was very well researched with 102 references!

In other words we have a case of a corporation which is accused to have negligently caused harm to its own employees.

I am sure that you would have read that when fire broke at AMRI Hospital in Kolkata, the staff fled the scene! [TOI Dec9, 2011].

And here is another story. Contrast it now.

We have watched with horror the terrorists’ attack on Taj hotel in Mumbai. While Taj Hotels did a splendid job of helping the victims and employees, it probably received world-wide attention after an article was published in Harvard Business Review. The story is titled ‘The ordinary Heroes of The Taj’ and is sub-titled ‘How an Indian hotel chain’s organizational culture nurtured employees who were willing to risk their lives to save their guests.’ We are aware of the story, and all here are aware of how the ordinary waiters and bail boys moved to save lives of their guests.

In one case the organisation is allegedly responsible for their workers’ death and in another case the employees are willing to die for it! In one organisation staff runs away on sighting fire, and in another organisation the employees work three days incessantly in spite fire and firing by terrorists! What a contrast!!

What makes the employees willing to place the organisation’s interests before their own lives and their interests? This cannot be achieved through training or clauses in contracts. Only organisation’s culture can create this magic. This perhaps is the highest point of a learning organisation.

This is all about ‘Preparing for Future.’ We must create a learning organisation in our quest for building an institution, not just an organisation. As one book has put it ‘Institutions are more enduring than organisations, have capacity of continuous growth, ability to cope and adopt under diverse pressures and pulls to make thrust into the future, in addition to having an impact on the society or community in which they exist. They perform services and functions which are valued in the community or society and also play the roles of a change inducing, a change-protecting agent within the community.’

I beg to submit that ‘Preparing for Future’ is all about institution building.

Vivek

Maruti Suzuki: The Arrogance of Success

2012-01-24T17:07:00.002+05:30

In Ramayana, Maruti or Hanuman is depicted as a strong, loyal, and a follower of Prabhu Ramachandra sans ego.

But look at the Maruti executives. They seem to be arrogance personified. Here is the statement of Maruti’s MD Shinzo Nakanishi: “I hope the workers in Manesar understand that an internal union better represents their interests.” [TOI Jan 7, 2012]

There are several issues with this statement – Firstly the underlying assumption is that an internal union serves workers’ interests better than external union. There is no basis for making this statement. There are several organisations where external unions have represented their employees and without much problem. So Mr Nakanishi’s statement only discloses his bias and not a fact.

Secondly, the statement may be true if he means that ‘an internal union better represents their interests as far as the Maruti management is concerned,’ one must appreciate his audacity to say it. The newspaper reports have captured in detail how Maruti handled the recent strike and promoted an internal union. Such unions are called ‘puppet unions’ and obviously not without reason.

Even so, Maruti MD’s statement only smacks of arrogance and a tendency to ‘manage environment.’ Those who followed the strike will recall the rumours that Maruti actually paid Rs 1 Crore to its worker leaders for taking separation. Mr Nakanishi’s statement can only make people believe that the rumour is true.

A mature statement came from Toyota Kirloskar which too experienced labour strife. [Quote] Said Vikram Kirloskar Toyota Kirloskar Motor vice chairman: "We're trying to improve communication with team members and instil ownership in the company. When we started out, we ended up with fresh hands and failed to understand their demographic and personal requirements. That's why we had labour problems in the first plant but the second plant the going has been smooth. We have promoted career development and ensured a mix of experienced and new people."[Unquote]

The language discloses your thoughts. In the case of Maruti, those are far from encouraging. “Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow” said William Pollard more than a hundred years ago.

It stands true even today.

Do you get me Mr. Nakanishi?

Vivek

Photo Courtesy EcoTimes

What's Happening at Bandra HR Forum

2012-01-23T17:59:00.000+05:30

There was a sense of guilt with which I went to attend a meeting of the Bandra HR Forum. They had actually invited me to meet them in December and like an old man [‘like’ because I do not think I am one, J] I forgot about it. So I made it up by going there in January.

Bandra HR Forum is a small group of HR professionals who meet once in a month. The idea is to interact with like minded people and gain some new thoughts and perspectives. That is very laudable. Sujata said that they are not there for ‘networking.’ Nobody gave me their visiting card [and I did not give mine too]!

It was not a formal meeting, we chatted for a good ninety minutes. At Eat Around The Corner at Bandra. They serve good breakfast, but it appears that the HR fraternity in Bandra is very calorie conscious so they were not eating much. That is okay, that is the problem of the restaurant owner. The restaurant owner is obviously a shrewd businessman who understands that this crowd can only swell, so he did not object.

The discussion focused on industrial relations [what else, with me there?]. I have always said that I am an IR person to the core, and the world seems to agree. But later our discussion later veered around careers, practising fairness in all dealings as the most important value. I picked up some good thoughts; it was a very interesting meeting.

In case the readers of this blog post with to join this group for their meetings, which I strongly recommend, get in touch with Anurag Shrivastava, or any friends seen in the photographs.

Keep the good work going...

Vivek

Revisiting Some Thoughts And Some Issues in HR & IR

2011-12-30T20:11:00.000+05:30

A glimpse of some posts and thoughts. It will refresh our memory about some events and also help us rethink on some issues in HR and IR. All this work in 2011. Click on links to read full posts.

The union has established a medical trust. The approach is that they should be self reliant to the extent possible. It has also persuaded management of Thermax to extend financial support to at least three students, workers’ children, studying in USA and Germany.

Thermax Union has participated in several major cost reduction studies and projects. It was interesting to note that they always ask for ‘facts first’ before talking of solutions. They talk the language of RFT, TPM, Kaizen [on an average each workman has done 30 Kaizen projects] etc. They claim that they have saved over 18 crores in inventory and have improved productivity several times. And they talk about it with ‘facts and figures.’

http://hresonance.blogspot.com/2011/01/industrial-relations-thermax-union-way.html

I spoke to one of them who stood close to me. “This struggle is very long drawn, you must have suffered,” I said to initiate conversation. “We used to work twelve hours every day. Yes they paid us overtime, but it was paid only on basic wage and they kept it very low. The allowances were high” he said. Another joined the conversation, “They employ contract labour. They must be employing ten contract workers for every permanent worker. They don’t pay any attention to our grievances. It does not matter now whether the Press runs or closes down, but things must change.”

http://hresonance.blogspot.com/2011/02/untold-thomson-press-story.html

The predominant experience with cooperation in our society consists of having a group of people work together in order to defeat another group of people. The group may be a basketball team, a company, or, in its most dangerous incarnation, an entire country. While some activities featuring a blend of intra-group cooperation and intergroup competition, such as sports, are widely acclaimed precisely on the basis of promoting teamwork, the most salient lesson they actually teach is that the ultimate reason to cooperate is to defeat a common enemy. Such a message is mixed at best and exceedingly damaging at worst.

http://hresonance.blogspot.com/2011/03/dance-of-inclusion-and-exclusion.html

Wikipedia mentions the rules and regulations for the ‘Singapore Girl’ of Singapore Airlines, here are some: [Picture courtesy Wikipedia] [Quote]

The airline requires stewardesses and stewards to colour their hair black or dark brown. The airline does not allow for stewardesses or stewards to use highlights. Acceptable shades of hair colours are black or dark brown. Stewardesses with long hair are to coil their hair into buns or French Twists. Stewards are to sport short hair above their collar lines and sideburns no longer than the ear lobes. Fringes (bangs) of Stewards do not touch eyebrows.

The Singapore Girl marketing concept has been criticized as being sexist - apart from the inaccuracy of the term "Girl", the concept has been accused of being a stereotype of Asian women as being desirable and subservient to white males.[Unquote]

http://hresonance.blogspot.com/2011/05/recruiting-for-looks.html

The first of these night classes started with a trek to the roof of the YMCA building and a question. Participants were asked to look at the sky and to tell the instructor what they saw that aroused their curiosity. The amateur astronomer jotted down a series of items that were of interest to the group. On returning to the classroom, he used this "curriculum" in a relaxed, straightforward way, avoiding the didacticism that had initially alienated class members from a subject in which they had a deep interest. At the end of the session, he invited them to his home for the next class where they could view the stars from the comfort of his private observatory. By the second meeting the group membership had mushroomed from a dozen into eighteen.

Knowles had found the model of an effective teacher for his institution and for his own developing image of what an adult educator and adult education ought to be.

http://hresonance.blogspot.com/2011/06/how-not-to-make-learning-boring.html

The real threat that managers feel, with a union at the door step, is of losing ability to influence their employees. If the processes are created around reaching employees then the need for unions may be obviated to some extent, at least in a small set up. My experience is that many organisations begin the exercise of 'reaching out' to employees after receiving a letter from union.

http://hresonance.blogspot.com/2011/07/responding-with-responsibility.html

There is an interesting duel which is going on for decades – it is between the Employers and the Judiciary. The unscrupulous employers are giving narrow interpretation to provisions of labour legislation and the judiciary is reacting with expanding its scope!

http://hresonance.blogspot.com/2011/09/subjective-rules-and-sacred-principles.html

This way of introducing coaching essentially creates a situation in which a [prospective] coachee makes a choice of coaching; it does not come as a result of HR’s initiative. It also does not come as a result of a mechanical procedure which says ‘arrange coaching inputs for all those who have been promoted or are likely to be promoted.’ Essentially it recognises that coaching will succeed where the need is felt and where the manager makes a choice voluntarily.

http://hresonance.blogspot.com/2011/10/coaching-making-it-work.html

Vivek

"Uncorking The Mind": Thane HR Group's Annual Event

2011-12-09T20:44:00.001+05:30

The Annual Event of Thane HR Group which was held today was a big success. Over 130 participants attended the event.

The theme of the event was Uncorking The Mind. Mr Ajit Joshi, MD of Croma explained what innovation in HR was not and then proceeded to explain how innovations in HR must strike at the basic issues to make the any organisation a place where people will experience good values and growth.

Mr HN Srinivas of Taj Hotels Group [Tata] explained how Taj dealt with the traumatic situation created by the terrorist attack was handled by the organisation. He explained vividly how the organisation practised, without any pomp and publicity, sound human values to address the distress and trauma. The role of leadership which contributed to leading and raising the commitment levels to welfare of those who suffered, or those whose families faced bereavement was inspiring.

Mr Jayesh Pandey of Accenture spoke regarding Workforce of One and had clear message for HR managers on the new realities.

Mr. Jivan Bhatt, CEO of TechNova Imaging Systems spoke on Organisation renewal. He explained the concept and then shared his experience. A highly evolved understanding of renewal leads the organisation to take a very mature and evolved stance on many organisational and employee relations issues. TechNova Imaging which was started by Dr Jagdish Parikh, the Harvard Professor, has not lost a man-day to employee relations issues in the last thirty years so far.

Dr Krishnamurty shared his thoughts on the current Industrial Relations scenario as well as changes that are happening. He covered the new forms of employment contracts which are being introduced. He explained how the younger workforce is thinking differently and should be managed.

During the panel discussion on the M&A issues, Mr Sharad Gangal [Thermax], Mr VJ Rao [Suzlon] and Mr Jagdish Acharya [CEO, Asian PPG] several HR issues were discussed. Mr Acharya said that arrogance must be avoided at all cost by the acquirer to ensure the success of the acquisition. Mr Gangal said that the communication of overall business plan creates trust and confidence among the employees of acquired companies. Mr VJ Rao shared his experience and said that communication, openness and shunning 'mine is better than yours' attitude holds the key to success of M&A. Vivek Patwardhan facilitated the panel discussion.

Mr Prashant Karmalkar conducted quiz and his witty remarks enlivened the atmosphere. Mr Suresh Ogale proposed the vote of thanks.

Thane HR Group is an informal group of HR professionals in Thane. They organise guest lectures of eminent personalities for the benefit of HR professionals. Their events are free and open to all. Their annual event is usually held in December every year.

Vivek

Placement Interview : From Many Angles

2011-11-18T19:21:00.001+05:30

Recently a student sought a meeting with me to discuss the dos and don’ts in a placement interview. Here is a record of my discussion with her – you can easily make out that the name is changed to prevent identity; but this record of our discussion is true.

I then circulated the draft of this post to some of my students for their comments. Yashaswini and Naveen responded with brilliant observations. Those are insightful. [I am reproducing their views with their permission.] I trust this entire post will be useful to many. Do not hesitate to place your comments; I am sure that you must have a point or two to add.

Madhuri: Hello Sir, I am going to appear for a placement interview and I have a lot of questions on my mind so I sought this meeting.

Vivek: Tell me what those questions are, let us discuss.

M: I am quite nervous about facing the panel in the first place.

V: You should not be nervous about it, all MBAs get placed and surely those with your talent get placed on the first day. And nobody stays in the organisation till his or her retirement, so joining a good company is only a good head-start.

M: yes, but I get nervous facing the panel....

V: It is natural for a young person to be nervous at that stage, but there is a simple trick that you can follow. When the interviewer asks you a question please hear him carefully and then repeat it in your words.

M: Why?

V: If the interviewer knows that you have understood the question well, it reassures him that you are an active listener. But this can’t be applied to small and direct questions when he asks about your hobbies.

M: So give me an example.

V: If the interviewer asks you as to how you will increase market share of a certain product by 2%, please say “I heard you say that I should talk about the strategy I will use to improve market share of product X by 2% in next one year, right?” This is a simple trick that does two things, firstly it allows you some additional time to prepare your answer simultaneously, and secondly it reassures the interviewer that you got the question right.

M: Interesting.

V: How will you answer it?

M: Well, I will talk about increasing number of dealers......

V: Stop there. The interviewer is interested in knowing how you think more than specifics of the answer.

M: So?

V: The way to answer such questions is to disclose your thinking....first talk about what the drivers of market share are, and then talk about how you will handle each one....share of preference, voice and distribution. Remember to move from basics to specifics. That will tell an interviewer how you think.

M: May be I must practice answering such questions......it is interesting. Tell me how should I answer when they ask “what are your strengths and weaknesses?”

V: As an interviewer I was always amused by answers to this question. Students know this question will be asked without fail, so they come very well prepared. They tell strengths disguising them as weaknesses – “When a job is given to me I become very impatient and cannot rest unless it is over” is passed as a weakness! Ha ha!!

M: I too feel that it is so funny. How should I answer it?

V: I have always felt that a good many people do not know their own strengths and weaknesses. I too fall in that category. Moreover there are people who believe that strengths and weaknesses are context specific.

M: Yes....

V: The interviewer wants to know you as a person to come to a conclusion whether or not you are suitable for a job he has in hand.

M: Yes....

V: Then why no tell him how you have changed over last six or seven years; let us say since you passed your 12^th.

M: You mean how I have developed as a person. And I should lead the discussion to my development ....

V: Yes. That is the point. Tell the interviewer that it may help him to understand you better as a person. Then tell the interviewer that you have a greater awareness of social problems as a result of your training in the last two years, or that your interactions with union leaders made you aware of different reality, or that some books have made a mark on your mind. And there is a technique of telling this to others.

M: Really? Tell me.....

V: Make a statement first, give example and then explain the point you made. Three steps.

M: Tell me how.....

V: Hmmm.....For example, you may say that a certain book, say Ayn Rand’s Fountainhead, or Viktor Frankl’s Man’s Search for Meaning or the famous book Tuesdays With Morie, - and I am naming these books because these are read by a large number of students – left a mark on your mind. Then step two – explain which book you read and what is the subject of the book – and then step three - tell the interviewer crisply what it did to you or what appealed to you most. You can do this mentioning an event too.

M: I am now clear about how I should prepare for an interview. One more question....What is one thing I must avoid.

V: Just be your natural self, authentic. Any mask that you put on is easily seen by others and it does not make a good impression. Do not be anything but authentic.

Vivek

Dear Sir,

It was a very good read. Infact it took me to my interview preperation days. I loved the paraphrasing bit.

As far as a critique is concerned.

If you want your conversation with Ms.M to be posted, you can surely go ahead and post it. However, if you are thinking of posting something which will be useful for students to prepare and attend interviews, then you will have to add some more bit.

For me, The Interview is like a movie, the interviewer is the audience and interviewee is the director. For the movie to be impressive, efforts director puts behind the screen is as important as how he presents it to the audience.

I was hit hard in my summers because I did not prepare for it. I did not want to make the same mistakes in finals. I had devised a plan for my preparation. I hope my preparation helps you in helping other students in preparation.

There are three types of questions any interviewer might ask.

1. General Life and Self questions

eg. Tell me about your self, Strengths and weaknesses, Achievements etc..

2. Resume Based questions

eg. Projects done, people met, competitive participations, key achievements on resume.

3. Academic questions

eg. Questions related to Law, Comp and Benifits, PMS, OB etc....

The strategies for answering these three types of questions is quite different.

1. General Life and Self questions

These questions are usually asked to find more about the person. Most of the questions are already known. Tell me about yourself is surely a starter question. However, the difference one can make is through his/her clarity of what is said and the effectiveness of the tone and the speed at which we say. The answers for these questions should not be too long neither too short. There should be a clear message at the end of answer.

One key point is to make the answers our own. If I dont feel that something is my strength then I can never feel comfortable saying this to others. Hence, even though we say something, We would have told them I didn't really meant what I say.

When I started my preparation, I collected few of these questions (First got a collection of 20 questions from the net). Selected, 5 questions out of it (Considering my laziness at that time :P). Wrote answers for each of the questions. Got it vetted by my mentor (Snigdha our senior). Incorporated her inputs and rewrote it again.

When I started practicing it, I could find that it was not easy to put things written in spoken. There was a lot of tweaks that had to be done. I virtually used to go on a walk with the paper with these answers written in it in my hand. Imagine a interviewer, Imagine his reactions when i answer each one of the question and practiced my tone, facial expression, speed and even body language.

Finally, when I was in a position to answer all these 5 questions. I could find my self to have understood me better. I was more confident and clear in what I said.

2. Resume Based questions

eg. Projects done, people met, competitive participation, key achievements on resume.

These questions are asked to understand what the person has done in past. Indirectly saying I want to know What you have done not who you are or what the company is doing. I spoiled couple of my interviews in summers with these kind of questions, by mixing things up and not answering the what part properly.

Resume preparation(which includes preparing yourself based on resume) becomes the most important trick. Everything in our resume and every word we say based out of that resume should be known to ourselves. {am hinting that if we don't know something or not confident about something, we should not put that on resume.}

1. Make sure redundant data is not part of your resume

2. Make information as specific as possible.

3. Structure resume based on your strength [Highlighting is a way to invite questions...]

I had framed answers for each and every project I did. A simple trick here is to relate each project with something which you have read or worked on. During my fieldwork days, I used to apply leadership theories, in a training model I created. I used expectancy theory in the Summer project working on compensation restructuring. Relating things builds a lot of confidence and gives the interviewer a taste of our application orientation. In other words we tell the interviewer, I not only know things but also can apply based on requirement.

3. Academic questions

eg. Questions related to Law, Comp and Benifits, PMS, OB etc....

I was weak in this section, These questions are asked to test the knowledge level of the candidate. Usually the consulting company prefers these questions. FMCG might be more concentrating on law questions.

all my days in TISS, it was more of a experiential learning. So, I had to really sit with the books. My approach was to take project i have done in the past. Read all the theory related to the project, so that I can relate each other. Once that is done and feel confident I used to read other chapters of the subjects.

Say, If interviewer asks what is expectancy theory, then I will tell him the definition, how i used it, how is it useful otherwise. With this approach, I had selected only few subjects (Law, Comp & OB) I had taken a risk by not reading all the subjects, however I thought my resume which is in front of them will rule the interview more than the subjects which I have read. Even if they had asked something on which I don't know or I have not worked on, I was prepared to say "Sorry I don't know" {After all you also got to tell them that you are honest ;) }

Sir, hope it helps.

Thanks

Regards

Naveen Keshava

Dear Sir

This was a great read... got me reflecting on my days as an interviewee, dreading the campus placements. And then in the last 2.5 years have been on the other side of the table. I have been to a couple of campus interviews, watching as student after student comes in each carrying so much hope.

There are some things that struck me in this...

The first is your last statement about authenticity. I have been in interviews where I have said “I don’t know” so many times and yet got selected. Where I have been pulled into a discussion where I took a stand and eventually had in the course of the discussion was made to see a different point of view and say “Yes you are right and I am wrong. Your way makes more sense”. But I still got through. I never understood why till I actually stood on the other side and was a listener. I realized it doesn’t matter what u do or don’t know today. What matters is how transparent you are. You need to stop thinking about what they want to hear and think more about what you need to say. I find that the more you think about the former the more you tell yourself that that IS YOU. And then you end up coming across very strange in the interview. The Pen picture of you that an interviewer draws up is incomplete.

So I was glad to read about that piece on authenticity. I don’t know if it is possible for you to elaborate on that further. But it would be great if you could point out how. Everyone tells a student to “be themselves” but it is so hard to capture how.

Also that thing about weaknesses. So many interviewers ask that. The most charming one I have heard (we hired this girl) was “Oh I get so angry at times with people. I have a nasty temper, very low tolerance and can get extremely impatient and when that happens I am highly ineffective and very displeasing to be with”. I wish people would just say it – I can’t plan my time or I am not a good multi tasker or I am not a very good team player, I like to work on my own… an organization that can’t accept or allow weaknesses can’t be a very real place to work in can it?

Finally, almost every time I go to campus, this happens – we interview someone, find him/her highly unsuitable. But we hear in a bit that some other company (usually quite a good one) has picked him/her up. I always used to wonder in the beginning how they could have done so when the drawbacks were so obviously clear. Today, reading this post, it came to me. That one interview with Nokia is NOT who the person is. Nor are the many “bad” interviews. Every interview is a confluence of the moment and the person and the panel and then the biggest of all – chance! All four come together to make the interview a good one. The moment might be wrong and the student may be nervous and trip up. The panel might be a particular kind and not like particular kinds of students. You might have revised Pay for Performance but they asked you about Employee Engagement surveys. Someone told you they grill you on acads but you faced what was an out and out behavioural interview. You never know and no matter how hard you prepare you can never foretell what might happen in that room. So at some level, students need to stop over preparing for interviews and learn to go with the flow. When you go with the flow there is no good or bad interview. This is so much easier said than done and often can only be said by someone NOT going through the process themselves.

I would really like to know your thoughts on this too...

Warm regards

Yashaswini Vishwanathan

Creating A Helping Organisation

2011-11-12T02:38:00.001+05:30

Ganesh Chella made a brief speech at the publication of his book ‘Creating A Helping Organisation - 5 Engaging Ways to Promote Employee Performance, Growth and Well being.’ As always he spoke a few words, came to the point directly but his message has the characteristic clarity and insight.

As a coaching practitioner, Ganesh’s research led to three discoveries, one of which was “I discovered that employees had several other pressing needs beyond performance and development which were affecting their well-being and for which they required other forms of helping relationships. ....This led me to understand the entire range of helping needs of employees including their psychological well being and explore the kind of relationships that can make a difference.”

The book goes on to explain in detail the five layers of help – Community Help, Barefoot help, Qualified Help, Professional Help for Executive Coaching and Professional Employee Assistance with the help of specific case studies. A quick browsing has convinced me that it is a book that must be read by HR managers.

The book was formally published [Tata McGraw Hill, Rs ] at the hands of Ms Mala Ramadorai and Mr R Shiram, the founder of Crosswords yesterday.

In his brief talk Ganesh expressed his concern about scant attention paid to mental health of employees and asserted that this situation must change; and that the organisations had a role to play in providing support.

Ganesh is a thinker, teacher and a prolific writer. He has promised to write more books; one of which I expect to be on Employee Relations.

Vivek

Coaching: Making It Work

2011-10-24T18:29:00.002+05:30

Dear HR Manager,

I would like to share a few thoughts on launching Coaching program in your organisation.

Before we launch a coaching program in an organisation, it is desirable to have some discussion with the prospective coachees about what coaching is. There are many definitions of coaching; I like the way Sir John Whitmore defines it. “Coaching is unlocking a person’s potential to maximise their own performance. It is helping them to learn rather than teaching.”

It is also necessary, for success of the coaching program, that it is seen as a tool available to those who wish to use it. It should not be mandated. It should not even be suggested! What we need to do is to make people aware that HR is ready to make a good coach available if one requires it.

Let me explain. When we advise a manager that [s]he can undergo coaching if so desired, the concerned manager does not think that a choice is available. The manager will say ‘yes’ to coaching. Getting in to coaching situation when a manager has not felt the need for it, is one of the reason why coaching does not deliver to the fullest.

Moreover, is it not our common experience that whenever a manager is nominated for any behavioural program he asks ‘Why me?’ The coachee opting for coaching with a suspicion in mind is the worst situation to begin coaching.

We ought to appreciate the need for voluntary choice in coaching.

One way to launch the coaching program keeping these basics in mind is to explain to a group of managers that HR can make good coaches available for coaching in case anyone would like to opt for it. You can perhaps share profiles of coaches who HR proposes to engage. This avoids making specific suggestion to anyone and yet makes them aware that the organisation is making a resource available. It avoids making suggestion about coaching as well as the choice of a particular coach. This procedure surely makes a prospective coachee very comfortable.

Usually a very small number of managers opt for it in the beginning. Some others, who are curious, watch whether coaching is beneficial to them. They enter when they discover that it helps. The number swells over a period of time. The best aspect about it is that it is driven by managers who realise that it helps. They come in with more realistic expectations. This also helps in building a very effective coach-coachee relationship.

This way of introducing coaching essentially creates a situation in which a [prospective] coachee makes a choice of coaching; it does not come as a result of HR’s initiative. It also does not come as a result of a mechanical procedure which says ‘arrange coaching inputs for all those who have been promoted or are likely to be promoted.’ Essentially it recognises that coaching will succeed where the need is felt and where the manager makes a choice voluntarily.

I wish you success in your development efforts.
Thanks,
Vivek

Driving Positive Work Ethos

2011-10-23T10:01:00.000+05:30

The recent Meru strike brings forth interesting issues – one of the nature of contractual relationship and the other of providing leadership. The strike has ended and Meru cabs will be plying now but I will not be surprised if it is an uneasy truce.

An interesting fact which Mumbaikars perhaps do not know is that Meru does not ‘employ’ drivers. There is no employer-employee relationship between Meru and Drivers – the drivers are actually independent contractors who have hired a Meru asset – cab – on rent. If we appreciate this nature of relationship we will also realise that the regular route of dispute settlement under The Industrial Disputes Act 1947 is not available to them.

A driver or DSE as he is called in Meru parlance is probably unable to conceive of any other mode of relationship with an organisation like Meru. So there are demands like ‘weekly holiday’ which just do not fit into the scheme of things because a Meru driver can ply his cab as and when he likes.

The driver’s perceptions can be understood considering their level of education, but what about their leaders? This is what the news reports said, “Swabhiman Sanghatna, led by industries minister Narayan Rane's son Nitesh, which is heading the section of the drivers, is adamant. "The drivers will remain on strike till the company absorbs the terminated drivers without any conditions," said KK Tiwari, president, taxi-auto wing of the organisation.” Would it be unreasonable to expect the foreign MBA degree holder Nitesh Rane to appreciate the business realities and legal framework?

The radio taxi service is unfortunately not declared as an ‘essential service’ but its importance should not be lost on anybody, much less to the leaders. A responsible leadership must strive to find solutions within the framework of accepted principles. Employing violence to garner public and political support is an age old tactic which the public is tired of. Issuing threats has become a favourite pastime of self styled leaders. It gets tolerated because the Government of Maharashtra is choosing to ignore it, both out of nepotism and timidity. What otherwise explains the fact that miscreants who have damaged dozens of Meru cabs have gone scot free?

Violence is the easiest option to solve a dispute, and the easiest option is often not the right choice. We need leaders, not just educated, but learned and who can resolve differences without transgressing the bounds of law. Encouraging a positive work ethos is the need of the hour; the society will pay a heavy price for ignoring it.

Vivek

The Era of Advantage for Unfair Employers is Finished

2011-10-21T21:57:00.001+05:30

Mr Visty Banaji addressed the Summit and introduced the theme. His address has, as usual, the mark of clarity of his thought, insights, concise but precise in delivery and his inimitable style. Mr Banaji is one of the most respected HR professionals who has left indelible mark on the culture of the organisations he worked for - Tatas, Godrej and Alsthom. He is an avid reader, an author with a distinctive style and a wonderful person to know. His address is given here, with his permission, enjoy reading....

Introducing the Theme of the Summit
(National HRM Summit 2011 Organized by EFI on "Fair Employers Finish First" on 20 - 21 October 2011 at Hotel Taj President)

1. Honourable Minister for Labour & Employment, Government of India, Shri Mallikarjun Kharge, Mr. Damodaran, Ms. Staermose, Mr. Dubey, Mr.Patil, ladies and gentlemen, it gives me great pleasure to introduce the theme of this summit to you.

2. "Fair Employers Finish First" is among the more ambitious themes the Employers’ Federation of India has adopted for its National HRM Summit. I hope I have not been asked to introduce it on the principle that "Lousy Speakers Should Finish First". It is only when I look around at the other august personalities on the stage am I reassured that this could not be the motive of my friend, Sharad Patil, in asking this group to speak first.
In seriousness, though, let me share the thinking that went behind this theme:
· I am sure you have all heard the cliché: "Nice guys finish last". It is sometimes extended to organizations and people say: "Nice companies finish last". Perhaps this was partly true in the time of licence-permit raj, when it was genuinely difficult to survive while remaining above-board – though I would like to believe that two of the Groups that I worked for did a remarkably good job of just that in those difficult years for business integrity. Well, the licence-permit raj is now behind us and, even if we accept that the environment in those years prompted organizations to adopt 'short-cuts', the situation is very different now.
· The public at large – and that includes our customers, investors and, most importantly, present and potential employees – expects the institutions they have to work with and within to be not just ‘functional’ but ‘fair’. We have seen the strong support civic society obtained when it raised issues of governance and probity for the political and bureaucratic machinery of the country. Simply because business and industry have not been subjected to such scrutiny and standards so far, does not mean we will remain permanently exempt from meeting the expectations an enlightened Indian public now has from organizations that operate within the public domain. Even in the US the ‘Occupy Wall Street’ movement is gathering momentum and questions about corporate greed and conduct are being raised in many other developed economies. We would do well to remember that disparities and deprivations are even greater in our country and are sometimes strikingly evident in a single corporation when we include in the reckoning people who work for, but are not on the rolls of, the enterprise.
· In these turbulent times of ever-increasing public consciousness, if we, as employers, do not take it upon ourselves to scrutinize and improve on our record of fairness, we will have no one but ourselves to blame if obtrusive laws and external inspection, interference and oversight bedevil us in greater measure than ever before.
· We felt it fitting that EFI should take the lead insofar as these standards and expectations are about the roles employers should play. That was the origin of the thinking behind the theme for this year’s summit.

3. The question that immediately arose was whether there was a need to take up the theme of employer fairness. Weren’t employers, by and large, fair in any case? A quick examination of how employers have actually behaved (and, of course, there are notable exceptions) did not leave us very optimistic about the general run of employers meeting the higher public expectations of fairness and business ethics:
· The test of fairness comes, not during fair weather, but during difficult times. Here are some of the things otherwise model employers resorted to during the last economic down-turn:
o Mass scale termination of probationers for reasons of business slump rather than individual performance inadequacy.
o Withdrawal or indefinite deferment of firm written offers made on campus to thousands of students.
o Sudden discovery of the magical sound of the 'bell' curve and of vast numbers 'For Whom the Bell Tolls'.
o Termination of large numbers of temporary and contract workers who had been engaged for many years in perennial jobs.
If these practices are less prevalent now, is it because these employers have become more fair or because the economic slowdown has receded?
· It had become fashionable to say that Employee Relations was a capability organizations no longer required; that growing economic development would put an end to union militancy and industrial action. Those of us who feared, that growing disparities between individual workers (often doing the same jobs) would lead to more rather than less unrest, were seen as Cassandras. It is unfortunate that, like Cassandra, we today have to stand by, in mourning, as some of the most respected names in industry fall prey to industrial unrest. While I do not wish to comment on specific cases, we have to cognize the possibility that, where industrial unrest gains mass support, in the minds of the employees there has arisen a perception of unfairness having been practiced by the management, in some way, shape or form.
· Nowhere have the disparities of industrial India and the consequential perceptions of unfairness been more apparent than in regard to contract labour. Events of the last 6-8 months have only confirmed the urgency with which the fairness of dealing with contract workers needs to be addressed.

4. The idea of this summit is not to wag a finger at erring organizations but to demonstrate, through live examples, that being fair, like honesty, is indeed the best policy and that those who adopt it really do rank first. This should not be such a startling discovery for those who have studied industrial development in our country. In India, it is not the robber barons who have survived. Our industrial houses with the greatest longevity are also those which have demonstrated the greatest fairness and concern for employees since their inception. Our industrial history, thus, contradicts the myth that "fair employers finish last". It would be truer, in our case, to say that "fair employers last longest"
For this summit, therefore, most of the organizations that have been chosen to share their experiences, are those that have excelled not only in the fairness of their practices but have delivered remarkable business and financial results concurrently. They are the living proofs of our claim that "Fair Employers Finish First".
For this reason, it is fitting that those employers who have achieved true progress in Employee Relations should be commended at this summit. This is the first time recognition of this nature is being bestowed by the Employers’ Federation of India and we hope that it will be an encouragement and inspiration for more employers to embark on the path of fairness and ER excellence that is not just the theme of the summit but the positioning for EFI going forward.

5. The case studies of organizations that have been successful, not in spite of, but because of being fair employers have been broadly divided into four parts:
· In the first part, we will learn how fair employers deal with employees at the bottom of the pyramid as well as how they develop, consult and value these employees for their individual worth.
· We cannot hope to have sound employee relations without the active cooperation of unions, freely chosen by employees. The second part of the summit, therefore, will give us learnings from fair employers who have partnered with their unions for the prosperity of the enterprise.
· As I have stressed earlier, Contract Workers can be the source of much unfairness and industrial unrest. In part three, therefore, we will share the findings of an EFI / ILO study of best practices in managing contract labour. We will also hear how fair employers are trying to find equitable ways of dealing with this knotty issue as well as the views of union and labour department stakeholders on this burning topic.
· Whether it for reasons of land acquisition, environmental impact or any other, large industrial organizations are more than ever inextricably linked with the lives of the communities in which they are embedded. The fourth part of our summit will present fair employers who have gone far beyond the demands of the law or the clauses contained in their licences or land-acquisition contracts in serving and providing a better way of life to their adopted communities.

6. At the end of the summit, we hope you will be convinced that:
· Not only do "Fair Employers Finish First" but the "Era of Advantage for Unfair Employers is Finished"
and that
· The Employers Federation of India can and must provide leadership to employers to adopt the path of fairness with conviction, passion and speed, which, in turn, will bestow a new sense of purpose to the Federation.
Visty Banaji

Maruti Suzuki Strike: How a Matter of Pride Becomes The Achilles Heel!

2011-10-18T21:53:00.001+05:30

[The strike at Maruti Suzuki has brought into attention many issues in Industrial relations. This is the third post in the series that discusses the issues. Here are the links to the first post and the second post.]

The report appearing in the Economic Times of India [Oct 17, 2011] makes an interesting reading as it addresses to the central issue: What widened the divide between the workers and the management?

Here is an excerpt: “The strategic decision to squeeze out maximum possible efficiency from existing plants didn't trickle down smoothly to the shop floor. Striking workers complain about abusive behaviour and even instances of slapping by supervisors, charges the company denies. Workers say the conditions at the Manesar plant were too stringent, while the management can't seem to comprehend the difficulty as the Gurgaon plant has operated under identical conditions for more than 25 years now.”

The reference to ‘squeezing our maximum possible efficiency’ comes because Maruti Suzuki found that they were in a situation where demand for the cars was outrunning the production capacity. So steps were taken to enhance the production efficiencies. These were resented by workers; but such measures were operational at Gurgaon plant so the management could not understand the resistance of workers.

This raises some interesting issues: Firstly, we have to appreciate that workers, like all of us, have a ‘view’ on how work should be done. So a change needs to be explained and communicated well.

Secondly, the workers of a new plant dislike being compared with workers at the older [or any other] plant. ‘Do this, look they are doing it, why don’t you do it?’ does not work well. The acceptance of such changes is always a problem. The workers want to discuss their work with their supervisors, not somebody else’s work. But usually the managements are in a hurry and do not have time for elaborate dialogue.

Thirdly, almost all new units begin on an excellent industrial relations note; but somewhere along the road the relationships sore. Maruti Suzuki had ushered in a great era of good manufacturing practices. In seminars, speakers often talked about ‘how it happens in Maruti’s plants.’ They brought in a tsunami of ‘Japanese Management style,’ in Indian industry. There are many people who have seen workers of Maruti making excellent presentations at a time when many managers were still learning PowerPoint. There were problem-solving techniques, quality circles, workers visiting plants in Japan and so on. The Maruti way was held in awe by many a people.

It is interesting how these healthy relationships in a new plant sore over a period and what causes them to go bad. This experience, I believe, is not unique to Maruti – it happens almost everywhere.

One of the popular beliefs is that the managers get increasingly arrogant and ‘controlling.’ This needs an explanation – when you set up a factory, you recruit new workers and train them. The interactions are very high and so is [usually] the sensitivity. The new workers have found a job in a good organisation which is a rarity; companies like Maruti train them very well so they see ‘value-add.’ Workers at this stage readily accept the supervision and show willingness to do any task assigned. There is a sense of pride at this juncture which overtakes all negatives. This situation requires very little people management skill. Arrogance and ‘controlling’ gradually grows and frictions start. It is important to note that the workers have complained of ‘slapping’ and ‘abusive’ language. This is not at all an unusual incident. Korean managers of a company were also accused of similar misbehaviour. Workers get labelled ‘union minded.’ The situation is ripe now for a conflict to set equations right.

And when a conflict erupts, both the parties wish to set all seemingly ‘wrong’ things right.

This is not as if the managers are to be blamed entirely for the situation. The point I am making is that a worker is very receptive initially but turns antagonistic later.

When a new plant is commissioned [like Manesar] the HR policies get tested. Where the workers are recruited young, they have boundless energy that can turn against the employer when not given adequate creative channels. Usually this is ignored. Some organisations in the South India have tried to overcome this problem by recruiting as a matter of policy, workers in all age groups up to 35-40 years. The presence of workers in higher age group, according to them, has a sobering effect on the younger workforce. [There is no evidence that this actually happens, but then managers so often follow their own pet theories!]. Such problems are inherent in the policies. Supportive actions have to be taken. But inability to see deeper problems makes managers attribute motives to the other party which is a recipe for dispute.

The entire situation is akin to the relationship between a father and his son – at young age the sons listen, and later they assert their freedom to do a lot of things, and demand space. When a son comes of age, his father is supposed to treat him like a friend.

Hidden in this metaphor is perhaps one of the answers to the problem.

Vivek

What The Maruti Suzuki Strike Exposes - 2

2011-10-14T12:06:00.000+05:30

While teaching at a management institute I mapped the images of a union leader and an HR manager through an exercise. The class and I were surprised to discover that they had used all negative [actually, very negative] words to describe a union leader. One of the students who had some previous work experience was more surprised than all of us – he candidly disclosed in the class that he had met a union leader who was a very conscientious person and a good leader, and yet he had found that the negative words were his immediate recall.

And one more shock came thereafter. I was expecting the MBA-HR students to have all good words for HR managers; I was in for a shock! The students also discovered that they had all described an HR manager in negative terms, hardly any positive!!

Such images in their minds represented how a common man sees them, and it is undoubtedly disturbing.

In the last twenty five years, many MNCs have set us their shop in India or have increased their presence. They come with their HR policies – one of the policies which are unstated yet very explicitly understood is ‘No union here.’

The aversion to unions is everywhere and Indian entrepreneurs are no exception. But perhaps they accept the reality more easily than their foreign counterparts. Even if entrepreneurs accept the fact that the right to association is a fundamental right in this country, they find ways of keeping things under control by playing with the employees’ right of association. With corrupt union leaders this result can be achieved without much problem. And with political leaders [most of them self-styled] who also double as union leaders, the managements can deftly handle the situation. This variety of political leaders cum union leaders and manoeuvring managerial personnel are both available in abundance in the corruption capital of this country.

Maruti Suzuki factories are situated in that region.

What really prevented Maruti Suzuki from dealing with a new union if it was having an effective membership in the Manesar plant? Unit level unions are very common in India. While the employees would do well if they have a common union, and indeed having different unit level unions creates more problems for both the employees and managements alike, it is really a question for them to decide and not for the management. In our society with its strong fissiparous tendencies it may be unavoidable, at least in the short run.

When a union knocks at the door organisations get into ‘Control’ mode. Poor HR managers find themselves in a tough situation because their bosses tend to judge their effectiveness by their ability to keep the union at bay. They adopt some familiar measures:

[a] call employees who have reportedly gone to the union leader and talk to them about how their interests are best served by the current management; how the management is responsive to sorting out all their grievances,

[b] initiate ‘town hall’ or ‘open house’ meetings to reach out to employees. Simultaneously measures are taken to keep the union out by reaching the union people through some intermediaries. The worth of reaching out to employees is well placed but recognised a little too late.

What should be the organisation’s stance on unions? How many make clear statement on it anyway? I have always felt that the most mature statement on an organisation’s stance on unions comes from Toyota. Here it is: [ref The Toyota Culture by Jeffrey Liker and Michael Hoseus, Tata McGraw Hill]:

1. Managing Toyota Way and establishing a Toyota culture is not negotiable.

2. The local management should establish a stance toward labour unions, taking into consideration local culture, laws, labour movements and so on.

3. If the management of the company does have a union, both should recognise that the prosperity of the company is the common objective and both must use thorough communication in order to resolve any differences of opinions and build a healthy relationship of mutual trust.

4. The relationship of mutual trust can ensure the long term prosperity of the company and thereby stabilise employee lives by maintaining and improving working conditions.

In the ‘Summary’ [page 386] the authors state “ In a sense, Toyota agrees with the argument of the union advocates that fair and consistent management is essential and managers of work groups cannot be counted on to always act in a fair and consistent way. There needs to be mechanism for all employees to be heard. Being heard is the foundation of the Toyota culture of continuous improvement. So, Toyota sets up mechanisms through the HR department to allow team members to be heard. We saw that even the HR department can be viewed as biased. The counter measure was to set up a separate “I” team representing a cross section of the plant to investigate employee issues.”

This is beautiful. Toyota recognises that it is essential to be fair and consistent; and that the journey is not easy – there will be lapses. So they have invented processes to overcome those issues. It also essentially recognises the fact that it is unreasonable to expect the organisations to be perfect – but it is essential to have ways to spot and cure deviations immediately before they turn cancerous.

In this journey some organisations will be ahead of others. [Just to set the record right – Toyota has also come under attack – Read here]. And some organisations remain at the extreme where they flout laws, turn a Nelson’s eye to the reality and use extra-legal means to break unions. We have to understand that the organisation’s choice of stance on unions is consciously made. [When organisations declare values, do they really have any choice?] And it is fully evident to the public in the event of strife.

On their part the unions have richly contributed to the image of antagonistic adversaries who exist to serve the personal agenda of their leaders. They do not declare 'values.' There are some exceptions here [See Thermax Story] but those are very few.

Maruti Suzuki strike brings out these aspects in focus once again. Whether Maruti Suzuki episodes will lead to introspections on both the sides is a question.

Vivek

PS: Long back I read ‘The Reckoning.’ Its author David Halberstam writes, “Then one day I was on a book tour and I kept noticing that Chrysler was almost gone, Ford was in trouble, all these great American companies were [gone]. And who was beating them? Japan, which I had last seen when we had, in Winston Churchill's phrase in 1945, “grounded to powder.” And the Japanese were taking cars, which was an American signature, and doing better at them. I didn't see it as a business story. I saw it as a social cultural story. How could this have happened? So, that question became The Reckoning. ...........But the question was, “How did this happen and what does it teach us about Japan? What does it teach us about ourselves?” It was a very big story. In fact, I think the best reporting I've ever done in my life is in that book. It's the story of a strike at the Nissan plant in the early ‘50s and the company crushing it and installing a union made of management people. Which gives you a chance to understand how Japan works in modern society. It was very hard…there's a Japanese intellectual who when he refers to Japan in terms of communication, he says, “It is the black hole of the universe.” A very positive value is placed on the extracting of information and no value at all is placed on the giving of it.”

The strike story of Nissan is very familiar for Indian readers. It is full of events that also happen at the gates of the Indian factories. But Japan has moved on from there.

Fair Employers Finish First

2011-10-13T09:37:00.002+05:30

The Employers’ Federation of India has organised The HRM Summit 2011 which presents an excellent opportunity for us to explore and learn more about how the “Fair Employers Finish First”. Also a high level panel discussion on “Contract Labour” based on a Research Study by EFI in collaboration with the ILO, can provide some thought provoking ideas on how best the deal or not to deal with this subject on your own home ground.

The Seminar is imaginatively organised, and all who’s who will be addressing the gathering. They include Visty Banaji, Ms Tine Staqermose [ILO], Mr Dasanayaka [ILO], Mr Rajeev Dubey, Dr Krishnamurty, Dr. JJ Irani, Arun Maira., Satish Pradhan.

Download the brochure here

http://efionline.in/images/Downloads/hrm_summit_2011.pdf

Where do you stand?

2011-10-11T23:21:00.000+05:30

In the last post I mentioned the issue of contract labour. I am tempted to say more about it before moving to the next issue.

My friend Arvind Shrouti who advises unions under the auspices of Option Positive, Pune mentioned an interesting model to me.

He said that the ‘employed’ persons, managers included, were divided in four categories. These categories are :

Vanchit: [The Deprived] They are at the bottom of the pyramid. These are persons who are waiting at the station or near building constructions to get a day’s job. Very often they do not get work and consequently pay for more than 10 days. They do not mind not being paid minimum wages – but they want steady work and some income. These persons live in abject poverty.

Shoshit: [The Exploited] These persons are contract workers who get paid minimum wages, although they may do the work similar to that done by the permanent workers of the industrial organisation where they work. They have no security of job, they get chucked out easily. Their working conditions are often very poor. They obviously have difficulty in making two ends meet, they find it difficult, [perhaps impossible] to educate their children and provide their families a good life.

Ankit: [The Identified] These employed persons hold permanent jobs but do not share the benefits of the exploitation of the Vanchit and Shoshit.

Sammeelit: [The Connivers] These employed persons, and they may include even workers in ‘high wage island’ companies, enjoy high salaries as well as benefits as a result of the deprivation of others.

While this model might sound very harsh, and academics may find theoretical grounds to attack it, one thing is for sure – that there is more than a touch of reality to it.

Dr Anil Awchat described the plight of the Vanchit in his book MaaNas [now available in English too] and though many would have seen people standing at Mulund station in Mumbai or at Shivaji Chowk in Kalyan in search of work, very few would have known the horrible conditions in which they work and live.

In many public sector enterprises and in some provate sector enterprises too, the permanent workers often rest while contract labourers work when the former are supposedly working overtime and earning double the rate of wages. The service industry, particularly the hotel industry, exploits contract workmen and thrives on it.

There is some hue and cry about the law which may be passed about domestic workers. Singapore has implemented it well. The implementation of it may not be done at all in our country. In India where laws are made but not implemented, one will have to rely on either the employer’s progressive values or on one’s will to wage a battle to earn a need based wage at the bottom of the pyramid!

Vivek

What The Maruti Suzuki Strike Exposes

2011-10-09T10:14:00.000+05:30

So much has been written on Maruti strike. This blog is not an exception too. I was avoiding writing one more post on Maruti - I have already written two – but the strike has highlighted too many nagging issues in Industrial Relations, and it is difficult not to write yet again.

In this series of posts [this is the first one, more to follow] is my list of issues and thoughts:

The widespread employment [and accompanied exploitation] of contract labour is a symptom as well as a disease.

You may ask me ‘If it is a symptom then, what the real disease is.’ The real disease is that the firms are not allowed to resize their operations depending on business exigencies. The Indian Government made changes to the Industrial Disputes Act in the seventies when populist measures were order of the day.

The amendment is preventing employers from downsizing their establishments without permission of the Government which was [then], as a rule, never given, and actually expressly denied. The natural reaction is to engage few workers in permanent cadre and a large number of contract labourers so that they can be removed without much problem. This is not to say that the engagement or exploitation of contract labour was not prevalent earlier. But it would be correct to say that even good employers started acting with great caution [read paranoia], because there was completely irrational, nay idiotic, implementation of the policy of the Government to control retrenchments and closures.

Justice Mr. Rama Jois’s judgement in the case of Stump, Schuele and Somappa [this was later over-ruled] makes good reading in which he has discussed the arbitrary rejection of application for closure.

[To quote: “To make the point more clear, I shall refer to paragraph 25 of the judgment in the case of Excel Wear case (supra). Wherein the Supreme Court posed the following questions:

(i) Is it possible to compel the employer to manage the undertaking even they do not find it safe and practicable to manage the affairs ?

(ii) Can they be asked to go on facing tremendous difficulties of management even at the risk of their person and property ?

(iii) Can they be compelled to go on incurring losses year after year ?

The answer is implicit in the questions, an obvious NO. The further discussion in the paragraph would show that if one of the above grounds constituted the real basis for an application seeking permission for closure, not according of permission would be unreasonable and the fact that closure results in unemployment of workmen would also be not a valid ground to deny the permission.” Unquote.]

The fact is that industrial establishments must be allowed to adjust their size according to business exigencies; the need is now more when the vicissitudes of economies and business environment is the order of the day post-globalisation and liberalisation unlike in the past.

If you employ 99 persons the restrictions do not apply to you [the Chapter V-B of the Industrial Disputes Act applies if one hundred workmen are employed] but if you employ one more, then it does! This is completely irrational. Pakistan has found a better answer to this issue and perhaps we may do well to copy them in this matter. In Pakistan, the permission of the Labour Court is required only if the employer is terminating the employment of more than 50% of the workmen. Now the debate can be about the number, but undoubtedly it makes a better system!

I said that contract labour was a symptom as well as a disease. What’s this disease? It is one of exploitation. With so much unemployment – remember that Maruti was able to recruit workers duringthe recent strike too – unscrupulous employers have been taking advantage and employing contract labour in the jobs where normally permanent employees should be employed. They save money and escape the legal restriction of applying for retrenchments, closures.

You find this so rampant in the industry that unfortunately some HR Managers have stopped thinking of it as a wrong practice. And now we also have another category called ‘temps.’ There are firms that are thriving on this malpractice! They employ literally a million in this way. That is what a firm recently announced.

Added to this is the phobia MNCs have about Indian labour laws [not unjustifiably]. I know of one international hotel chain that has prescribed to its Indian avatar that they will not employ more than 900 permanent staff. But the hotel is doing exceedingly well. Net result – about 600 ‘permanent’ contract employees, this excludes estimated 300 more ‘temporary’ contract employees. If you visit a service industry, you will add to your vocabulary – there are permanent contract employees, temporary contract employees, there are temps and so on.

One inspection visit to Gujarat’s [in]famous industries in Surat and Silvassa will tell you that almost every industry is employing contract labour in the ratio of 1:10. There are reports of engaging child labour.

How does one resolve this extremely complicated situation? The answer, to my mind, lies in making laws which recognise the realities of business and allow them to adjust size. That cannot be escaped. Adopting the Pakistan model is also not a bad idea. And implementing those laws well.

Unfortunately we have reached a situation in which laws seem to be made for the right thinking, conscientious members of the society and enforcement of law is nobody’s responsibility.

Maruti Suzuki strike has brought forth many ills of Industrial Relations in India. More about it in the posts that follow......

But in the meantime, Maruti Suzuki workers are on strike again! It is a different kind of ‘Chakka Jaam.’

Vivek