People Management- Miss-stakes!

What not to do when the times are tough…

Key learnings:

1. Business heads too are human, and prone to committing errors
2. They need to avoid certain mistakes to be able to survive tough times
   

Often, it is what you don’t do that impacts success, rather than what you do. Quite a few business heads have undone their good work with a few slip-ups here and there. Unfortunately, the condition of the economy hasn’t supported them. Mistakes that could have easily been ignored in good times appear bigger and uglier during a recession. Expecting the top brass to be error-free is both unfair and unrealistic. But there are certain mistakes that must be avoided to survive the tough times. Here is what business heads must be wary of:

Look before you leap

Difficult times compel individuals to take difficult actions. But what is tough to fathom is why those actions appear more desperate than deliberate. In this downturn too, managements have made quite a few impulsive and copycat decisions, which they will regret once the economy bounces back. Decisions have to be made diligently, particularly during tough times. Right from evaluating the source of information to a critical analysis of the worth of the decision, due-diligence should be the guiding principle.

Power corrupts

When in trouble, the more the number of friends and advisors one has the better the chances of surviving. Even though everyone agrees that networking, both social and professional, can help bail out individuals, business heads are chary of networking with their rank and file. Although the reverse should be the case, managements become more guarded and cloistered when times turn bad. Here is what can help correct the mistake:

1. Involve everyone, right from a shop-floor worker to a C-level executive, in generating ideas, innovative methods and short-cuts
2. Continue to delegate as before
3. Be transparent

Also, do what US President Barack Obama does! Obama’s team hosts discussions on the internet to invite suggestions and opinions from different people. In addition to generating ideas, the responses enable them to evaluate public sentiments.

Hasty decisions

“No one ever downsized their way to greatness,” says a business analyst. Yet, most belt-tightening initiatives have been so severe that the possibility of bouncing back to normalcy when the economy rolls out is bleak. In trimming flab, organisations have cut so deep that some of the muscle has also been hacked. Getting back top performers, who have been treated poorly, is almost impossible. Another equally hasty action is implementing strict recruitment freezes.

A downturn is an excellent time to pick up good talent at competitive wages. Once this opportunity is lost, the ugly practice of poaching, and paying through one’s nose, will return! Also, in organisations where layoffs have been extensive, those who stay will be grateful only for a few days! Soon employees will realise that they must now shoulder the workload of those laid off. Their disappointment and dissent will be just the beginning of troubles to follow! An effective way out is to try different alternatives to laying off.

Expansion

With organisations reducing the numbers on their rolls, meeting the needs of customers will be a huge task. So, however tempted managements may be to pick up the competitors’ ‘uncared for’ customers, a downturn is not an opportune time to expand business. With fewer employees, there is no guarantee that customers, who shifted loyalty because they have been treated poorly, will receive any better treatment. Moreover, expecting teams with reduced manpower to be enthused about new business is irrational. A better way would be to treat existing customers with extra care. When customers stand testimony to how well an organisation took care of them despite the downturn, there can be no better advertising than that.

Do what can be done

The ‘more with less’ frenzy is such that managements stretch their fewer resources over heavy tasks without recognising that every work team will have only limited elasticity. A business consultant observes, “I have found that much of the ‘more’ is work that provides no value at the end of the day.” Business heads must scrutinise every task and determine its ROI, and only those with good returns should be retained, refitted into the workflow and delegated. Moreover, an employee performing five meaningful tasks will not feel as overworked as someone handling fewer, but non-contributory tasks.

Everyone makes mistakes, even business heads. But making the above-mentioned ones is more than a slip-up.

Ref: TheManageMentor.

Recruitment and Retention - Move It!

Internal job rotation has come of age… ......

Key learnings:

1. The second-generation internal movement systems are more strategic than the first- generation prorammes
2. The second-generation methods shun the legacy system of the past, and are more competitive in nature

Employee retention is one of the most critical concerns of corporate leaders, especially in times when ‘buying talent’ does not appear viable. Organisations are reeling under immense pressure to develop and hone the talent that they already have, opening up internal movement options like job rotation, stretch assignments and taking employees to newer levels.

Economic downturns present a good opportunity to reflect on an organisation’ s employee development and succession planning initiatives. Most organisations are facing talent woes as they have failed to get their retention act together by creating a promising development plan for their staff. However, the present downturn may well be the turning point for organisations working towards employee development and retention. Before organisations incorporate an internal movement strategy in their retention plans, it is important to ascertain the goals.

Objectives

The internal movement strategy can help organisations attain the following objectives:

Enhanced employability:

Internal job movements through job rotations and stretch assignments help increase the employability of workers. These initiatives giver workers the right kind of exposure and expand the scope of their expertise, resulting in both vertical and lateral growth .

Improved morale:

Internal movement makes the job more interesting and challenging, thereby enhancing employee engagement and morale. Employees also feel driven and motivated, as the new jobs test their abilities and help them realise their real potential.

Leadership development:

Job rotation is also used as an instrument for leadership development. When internal movement is planned and employees are moved up the corporate hierarchy, the intention is to develop potential leaders for future organisational requirements.

Better skills:

Internal movement helps employees build on their skills, as job rotation and stretch assignments require them to expand their kitty of skills.

To meet the demands of the new age, the internal movement systems too have undergone change.

The second-generation systems, as they are referred to, are pretty much the same as the first-generation internal movement systems; the difference, however, lies in the strategic component. While the first-generation systems are largely operational, the new generation systems are more strategic. In addition, there are other significant differences too. Understanding these differences will help organisations deploy their resources effectively.

Integration and differentiation

While most second-generation strategies are an improvised version of the earlier strategies, and therefore, are integrated through a common framework, differences lie in the approach and execution. As mentioned above, the second-generation systems are more strategic, as compared to the earlier more operational systems. In addition, they are also:

1. Broader in their approach, and cater to a number of internal movement channels by creating attractive opportunities
2. More proactive in creating opportunities for growth, which is unlike the first generation systems that are largely reactive
3. More competitive, with better opportunities to nurture top talent, as compared to the first-generation programmes that are more of a legacy, lacking in quality

Job shifts can be temporary under the second-generation systems, unlike first-generation systems where job shifts are more like a permanent posting.

Understanding these differences will help HR leaders chart their course carefully. However, it is important to note that internal movements have to be deliberate, as they do not happen naturally.

The reason is simple: Most people hesitate to leave their comfort zones for something they are not sure of. Managers too fear losing their best men to jobs that may not suit them. In addition, HR policies too do not support random job movements. Despite the impediments, experts believe that leaders can leverage the potential of internal movement systems for boosting retention and development efforts.

Ref: TheManageMentor.

FAILURE IS OPPORTUNITY

History is full of people who were either blind to their faults and mistakes or refused to acknowledge them, and their pride was their down fall. How different things could have turned out if they would have been humble enough to admit when they were wrong.

What about you? Do you hide your mistakes? Or you take the courageous path of owning up to them? Believe me, most people will respect you more if you do. Sure, some people may rub it in or try to use your humbling for their own advantage, but that’s their problem and does indicate a weakness in your own character.

In the long run, character determines your worth. It’s not the easy successes that prove your mettle, but how you pick yourself up after a fall and try again. By acknowledging and going on in spite of your failures, you’ll also inspire others to not give up.

Failure is a step forward when you learn from it. Failure prepares the way for success by causing you to look hard at your plans and methods. If all those who had eventually succeeded at what they set out to do had stopped at the first failure, we’d still be back in the Stone Age! Aren’t you glad others took the advantage of their failures? Won’t you do the same?

Reference: Hari Nair

Sabbatical Saga- People Management

Taking time off or unpaid leave is now looked upon as a relief variation to the ongoing layoffs

Key Learnings:

• Layoffs have become more of a norm today, and both the employers and employees are finding the entire process agonising


• Sabbaticals and programmes like unpaid leave offer benefits to both the employer and the employees


• The current economic slow turn has seen an increase in the number of employers opting to offer sabbaticals as opposed to layoffs

According to the website yoursabbatical. com, a sabbatical can be defined as "a planned job pause - paid or unpaid - whereby an individual takes time to rest, travel, volunteer, learn a new skill, or fulfill a lifelong dream before returning to work. Eligibility and benefits will also vary from company to company."

With so many layoffs happening, experts urge more and more organsiations to use sabbaticals as an easier alternative to 'distressing layoffs.'

Carol Sladek, a principal in Hewitt Associates' work/life consulting practice, says, "It's a longer-term solution than just saying, 'OK, today we're in trouble. We need to eliminate jobs.' Sabbatical is a good alternative- especially in an economic downturn."

Why sabbaticals?

Apart from doing away with layoffs, the benefits of offering sabbaticals are many. Employers look at it as one way of retaining their valued employees, re-engaging them, reduced turnover and no re-hiring costs. Despite the downturn, employers are optimistic of better days ahead. And keeping in mind this optimism, employers are in support of sabbaticals.

Sadly, many organisations are still unaware of all the benefits a sabbatical programme has in store. According to Hewitt Associates, 'only 4% of employers offer unpaid sabbaticals'. The primary reason for these dismal figures is the refusal to let go, whether it is leave or the employees. Also, many fear the loss of star performers. Will they ever return back or look for greener pastures?

To state, sabbaticals are an essential part of work/life balance and understandably helpful in the grim economy too. Hiring new set employees is financially precarious as the cost of replacing an employee is almost twice the salary. Given these restraints, employers are opting for unpaid time offs also known as sabbaticals. Sabbaticals initiate and promote 'cross training' amongst the rest of the employees. For instance, replacing the employee who has taken off implies that another employee assumes more responsibility and new learning of the job.

Sharon Klun, director of work/life initiative, Accenture, sabbaticals like the ones at her firm "could be a tool to help get companies through a bumpy economy."

Companies that offer sabbaticals

It is not surprising that most companies that offer sabbaticals have been featured on 'companies we want to work for', 'fortune 500 companies' and the 'best places to work for'.

Accenture has been one of the forerunners in espousing 'sabbaticals' as a great way to rejuvenate, reconnect and retain employees. With already a large number of work/life programmes in its kitty, Accenture came up with sabbaticals or unpaid leave after an employee survey revealed a massive appeal for the same. 'Future Leave' as the sabbatical programme is known at Accenture offers 'time off' that can extend up to three months and can be availed once in every three years.

The upshot of this programme is employees use this time off to learn new things, dedicate time to family, volunteer to help the needy or some even take a trip to the Himalayas. Rejuvenating is the key here. Since, the entire programme is unpaid for, the employees set aside some amount from their salaries every month. Once they have sufficient amount to fund their 'sabbatical' they take time off. The employees are enthusiastic about funding their sabbaticals. In addition to this, Accenture conducts 'personal engagement surveys' to comprehend how well these initiatives work in ensuring a fair and commendable existence.

At Deloitte, sabbaticals can be extended up to five years and during the unpaid leave period the employees have access to mentoring, small work projects and training at low costs. This is to ensure that the employees are not completely detached from the organisation. They believe that with these initiatives the "highly valued individuals, can re-enter the workforce and we would be at the top of their list to get them back, rather than leave the firm, get disconnected and not come back."

Sabbaticals, what it offers the employer and the employees'?

Let us list in short the benefits of a sabbatical to the organsiations:

• Talent pool: Since the high performing employees stay on the payroll, the organisation retains talent, knowledge, expertise and also cuts re-hiring costs.


• Attracts future talent: Organsiations with work/life balance initiatives are almost on every talented individual's wish list. Thus it helps in attracting potential talent.


• Fulfilled workforce: The entire workforce is happy with such initiatives and the cross training involved is a learning process for employees.


• Since it is seen as an alternate to layoffs employees, future employees and clients are happy. The repute of such organsiations are higher especially during tough times.


• An encouraging workplace attracts and retains talents, commands greater credibility amongst clients and stakeholders and is seen as a whiff of fresh air in the market.

Sabbaticals for the employees:

Helps them rediscover themselves , relearn and paves way for deeper introspection

With this kind of awareness and refreshment, employees are better equipped mentally and physically to take on challenges at work once they resume work.

With sabbaticals, the commitment and loyalty of the employees towards the organsiations are deepened

The benefits of a sabbatical are manifold, from new passion for work, better creativity, and most importantly higher commitment of the workforce. Taking a sabbatical needn't be treated with trepidation; it is just another way to learn.

Kathie Lingle, Director of a global human resources association sums up the response to pressurising work environments as "Smart organisations are looking at how to keep people whole and sane with them."

Sabbaticals maybe the answer!

Reference: TheManageMentor.

Tips to Keep Your Job during a Recession

The state of our economy is in demise. People’s current financial situation is unpredictable and tentative. Every time one watches the news or looks at the headlines in the newspaper, it seems as though there is more and more bad news concerning the recession. Even large, prosperous companies have experienced serious downturn. Employees suddenly find themselves jobless or with reduced hours without inviting the situation. People who previously considered their jobs secure are now faced with possible lay-offs.

If the company you work for is slipping significantly, there is not too much you can do to alter the situation. However, many companies, although they have to make cuts, will survive and endure. If you want to be amongst those chosen to keep the boat afloat, then there are several things you can do to help your chances.

Go through extra effort at work. With many companies, layoffs are unavoidable. However, some companies can use the occasion to eliminate difficult or under-performing employees.Here are a few things you can do to improve your chances of keeping your job during a recession: (The resources for these tips can be found at the end of this article)

1) Take Credit For Your Accomplishments.

This does not mean that you have to brag to let management know that you are doing a good job. It simply means that you should keep them in the loop. You can do this by creating a paper trail. CC your boss on appropriate emails that relate to the progress of specific projects and important deadlines. Also, make sure to forward short updates and summaries of ongoing projects to your supervisor intermittently.

2) Avoid Asking For a Raise.

If you are aware that your company is making cuts and know that their budget is tight, do not ask for a pay increase. By asking for a raise in such times, you can put yourself at the top of the lay-off list.

3) Do Extra Work.

Stay busy. If you have some free time, ask your boss if there is any way you can help out and if there is additional work to be done. This will increase your visibility and value to the company. Although volunteering to do extra tasks is a great way to keep your job, do so only if you can complete it in a timely manner and if it does not deter you from your original tasks.

4) Be Visible.

Enhance your visibility by attending and participating in meetings, offering creative, new ideas and taking part in company outings. Be sure to let people (preferably those in higher positions) within your organization are aware of your existence. Moreover, do not make your boss have to look for you. This is the wrong time to take an extended vacation. When you return, your position could be eliminated. Also, do not come into work late, that is negative visibility as people will notice.

5) Build Up a Relationship With Your Boss.

Talk to your boss, your boss’s boss, and their boss. Get to know your boss, preferably on a work-related basis. Build up and maintain a strong relationship with them, and make sure they know about all your contributions to the company and the valuable work that you do.

6) Be Conscious of the Company.

Make sure you know what and how your company is doing. Keep your eyes and ears open. It is important for you to stay abreast of events within your company, your industry and nationally. By being well informed, you will advance your personal worth.

7) Avoid Gossip.

Gossiping can possibly end up getting you into trouble. Make sure to stay happy and positive. At times like these, people can become unhappy and despondent. Misery loves company and you can generally find huddles of groups talking themselves into a group melancholy. It is best to avoid them as nothing good can come from it. Keep your sunny and positive attitude and boost the morale of others.

8) Come Up With New Ideas.

Be creative and conjure up new ideas on ways your company can make money or be more efficient. Become a part of the solution by helping your company develop ways to cut costs. Furthermore, possibly mentor someone in the organization who may be experiencing difficulties. Your time will not be in vain.

9) Update Your Skills.

Keep up-to-date of all the latest technologies, trends, and other skills related to your work. Educate yourself. Think of ways to complement and enhance your current degree. If you do not have a degree, strive to get a degree or at least a certification of some sort. Make sure your boss is aware of your intent to continue or develop your education. Companies dispose of people whose skills are outdated and replace them with people who have more relevant and modern training. The benefits of enhancing your education and skill set are two fold. Firstly, it can make you indispensible at your current job. You may even be asked to take on more responsibility. Secondly, if you lose your current job, it will be easier to find a new one.

10) Observe The Job Market.

You should always have a backup plan. Passively look for jobs so that you have a head start if you are laid off. Network with previous employers or colleagues so that you can contact them in you ever need to. Update your resume, return agency' phone calls, and start picturing where else you might like to work just to be on the safe side.

11) Become Indispensable.

Become a specialist at some aspect of your companies business. If you have acquired knowledge or skills that your colleagues do not possess, it makes you more valuable, important and irreplaceable to your company. Be an asset to your company.

12) Become a "Can Do" Employee.

Employers like it when they can give you a problem or task and know that it will be undertaken promptly and resourcefully. Your bosses will notice this, and your value within the company will grow.

13) Stay Put.

Evade the thought of moving to a new employer unless you are totally confident that your present company has no future. No matter how good the job is or may sound, being the new member of the team makes you highly vulnerable in these economic slumps.

14) Stay Smart.

Make extra efforts to go into the office smartly dressed. Do not let your standards drop. It may sound hard to believe, but being a smart individual could mean the difference between keeping and losing your job.

15) Don’t Be a High Maintenance Employee.

Be easy to work with. Avoid complaining. Make sure to uphold your professionalism at all times. Furthermore, avoid taking too many sick days, arriving late to work, or taking excessive vacations. Be as efficient and accessible to your boss and coworkers as possible.

16) Get to Work Early & Stay Late

This does not mean that you have to work until midnight. However, try to avoid being the first one out the door when the clock strikes five. With the current economic storm, putting in a few extra hours is an investment in your future.

17) Minimize Personal Activity.

Keep personal calls, emails and text messaging to a minimum during the workday.

18) Give Your Leaders a Break.

As much as we may find objectionable certain actions of bosses, it is important to realize that they really do not take pleasure in having to lay off their people. Endeavour to ease the leader’s load and help them protect and preserve your department.

19) Stop Complaining.

A good attitude goes a long way. At times like these, management is looking people who can boost morale. In addition, happy, positive workers are less likely to get laid off than people who seem to have an aversion to what they do.

20) Be Likable.

It is not easy to be light-hearted when financial situations are rocky. However, research by Tiziana Casciaro and Miguel Sousa Lobo published in a 2005 HBR article, "Competent Jerks, Lovable Fools, and the Formation of Social Networks," found that when people need help with getting a job done, they would typically opt for a friendly and pleasant co-worker rather than a more competent one.

Ref: http://www.hr.com/

Hiring Practices During a Recession

During a Recession, hiring practices generally don’t change, but companies are much more careful in evaluating the need for additional staff — be it executive or otherwise. When possible, they tend to look more closely before adding outside hires. In many cases, companies consolidate responsibilities and do more with less staff. Early signals of this are when companies don’t replace positions left vacant by normal attrition. As business trends continue in the manner that they have during the last two quarters of this year, and into 2009, companies feel the pressure to reduce overhead expenses. This could be reduction in facilities (more virtual employees), reduction in workforce, accompanied by increased responsibilities and reduction in compensation packages. Of course, companies still seek the right executive talent to manage “the new order” going forward.

Companies Hiring Right now

Currently, we are seeing some hiring in the public sector, technology, alternative/green energy and life sciences/medical sectors. To a lesser extent, there are some midcap companies in the industrial sector that are continuing to grow as larger concerns exit markets, leaving a void for lower cost, higher value options. Indicators also point to a resurgence in finance & accounting roles across industries.

From Entry-Level to Executive

Right now, it’s tough for both executives and entry-level employees, but particularly challenging for executives to match employment opportunities that exist in better times. Generally speaking, the higher the price tag, the longer the job search. Revenue producers, at all levels, are highly coveted in this business environment. As for entry-level job seekers, there are still opportunities for the determined.

Strategies

Flexibility to the needs of the prospective employer would be advised. What the prospective employee can contribute to the bottom line is the key to success in a job search during these times. The use of one’s business and personal network should be a vital strategy—get the word out. Be aware of current events in the industry or sector being sought—the volatility of business is at a high point. There is no excuse to be unaware with so many communication tools at one’s disposal.

Trends in the Current Employment Markets

Retention of current, valued employees has taken a greater importance. In many companies downsizing has already occurred. As business units operate with leaner teams, every member of the team takes on a more important role in the organization. The loss of top performers is highlighted even more in tough times, as productivity could experience a decline, along with adding the cost of replacement. Some might say that with crisis comes opportunity.

(About the Author: Juan Morales is managing director of the Miami office of Stanton Chase International. The 450-member organization conducts local, regional and international executive search campaigns for many top companies worldwide. Stanton Chase currently has 66 offices in 41 countries. There are 12 offices in North America. For more information, visit www.stantonchase.com)

HR Strategy: From Execution to Influence

To be effective leaders in their organizations, HR executives are going to need to successfully move the function from executing strategy to influencing it before decisions are made. The HR function has evolved over the past few decades, with each decade having a guiding paradigm that was interrupted by periods of economic recession.

The '70s were the decade of compliance, a time when HR's role seemed to focus on being the cop that kept managers from making discriminatory employment decisions. The '80s saw the emergence of strategic HRM, but from a siloed perspective as each aspect of the function (staffing, compensation, training, etc.) attempted to tie its activities to the firm's strategy. The '90s were characterized by the "strategic partner" paradigm, a time when HR's role was focused on aligning all of the function (processes, policies, etc.) in order to execute the strategy.

The present decade has been the decade of talent, with HR focused on creating the processes to attract, develop and retain the talent critical to organizational success. In each decade, the value of human resources increases, but each of these paradigms shares one thing in common: They all view HR's role as the executor of strategy. While HR's role in strategy execution is critical to both its internal credibility and the business' success, the emerging responsibility -- something we hopefully will see a lot more of in the next two or three years -- is to move from executing strategy to influencing it.

How HR leaders do this depends on whether their firm's strategic decision-making is characterized as a rational process or a process plagued by human frailty.

A Rational Process

The "rational" model suggests that strategy is a linear, goal-oriented, decision-making approach that entails gathering all of the relevant information and then making the decision what maximizes the relevant outcomes for the firm. This is usually the subject of the offsite "strategic planning" meetings and are reflected in the "strategic plan."

This approach assumes that all those involved in the decision share the same goals, but maybe not the same perspective or the same information. Thus, by getting them together to discuss their different perspectives and share their different information, consensus around what constitutes the "right" decision can be gained.

It is largely this model that has guided some of the work suggesting that HR can influence strategy by being "at the table" when these decisions are being made. Many decision-makers have functional blinders that limit how they define a problem. In addition, due to the pressures exerted by the financial community, decision-makers are prone to focus on the financial outcomes of a decision while ignoring other potential outcomes (corporate reputation, legal risk, customer reactions, employee engagement, etc.). These limitations to the decision-making process may result in decisions that provide maximum short-term financial payoffs, but simultaneously begin a set of processes that may threaten long-term viability.

In this model, the role of the HR executive is to ensure that these "unintended consequences" are all discussed and addressed before the decision is finalized. HR executives achieve this best not by telling, but rather by asking. Because HR executives may lack a reputation for deep knowledge of all areas of the business, they may not be viewed as a credible source of suggested strategies. However, because HR leaders are at the table, they can ask important questions. For instance, in the case of a downsizing or layoff, they might ask:

a) "If we decide to downsize by 10,000 will we be able to maintain our ability to provide customers with what they want from us?"
b) "What are some of the legal risks that we might incur if we engage in this layoff?"
c) "How will this impact our reputation as a socially responsible company?"
d) "Will this layoff be a negative signal to our talent that encourages them to start looking elsewhere?"

The economics of the business may dictate that laying off 10,000 employees is necessary. However, forcing the discussion may lead to either a different decision (Can we cut back hours and pay across the board instead of a layoff?) or to a better way to implement the same decision (How can we communicate to our talent that we value them so they do not begin looking outside?).

My work in studying HR leaders over the past three years reveals that forms of this process often take place outside of the normal "off-site" meeting. Members of the top management team may disagree with the direction a powerful CEO is pushing, but may be unwilling to express their disagreement openly.In this case, the HR leader's role is to try to surface those areas of disagreement confidentially, and then be the conduit to confront the CEO with these conflicting perspectives. This confrontation may take place in the CEO's office or at the executive leadership team meeting itself. Either way, HR executives are influencing the decision-making process when they take the responsibility for ensuring that all perspectives are recognized before a decision is reached.

Certainly, HR leaders can state a point of view, and, if grounded in a deep knowledge of the business, their opinion is often valued by other decision-makers. So the influence can be gained by persuasion as much as by questioning. In either case, the HR leader does not have the authority to make the better decision, but an effective HR executive will always make the decision better.

Plagued by Human Frailty

One hopes that the rational decision-making process characterizes all, or at least most, of the strategic decisions. However, has anyone ever seen a top management team? Too many "teams" are really made up of a group of individuals with their own ambitions, egos, desires and agendas.

A successful CEO may have become so blinded by his or her own success that dangerous levels of hubris begin to emerge. Or, either overtly or covertly, members of the team who hope to ascend to the CEO position may opportunistically seek to undermine the CEO and/or his or her potential competitors for that role. In essence, members of the top management team, like every other human being, can be subject to human frailties, and those frailties can severely impact the strategic decision-making process.

First, what are human frailties? These are universal characteristics of the human condition that, under the right circumstances, result in individuals making decisions that put self over others. While they are not limited to these, I like to focus on two that encompass most of the dysfunctional activities.

Hubris refers to excessive pride, or a belief that one's self is so good, intelligent, etc., that one can do no wrong. Every decision is the right one, and when others disagree, it is only because they do not possess the same level of capability. For instance, when retail industry novice Bob Nardelli, chairman and CEO of Home Depot, argued with longtime retail industry analysts that same-store sales was not a good metric for judging performance, he was displaying hubris.

Opportunism refers to self-interest seeking with guile, or having such a focus on achieving one's own ambitions or desires that one is willing to do whatever it takes, regardless of the consequences to others. The road of failed strategies is littered with leaders overcome by human frailties such as Ron Allen of Delta Air Lines, Jean-Marie Messier of Vivendi Universal or Phil Condit of Boeing. These are not evil men who sought to do harm to their organizations, but rather leaders blinded by their own weaknesses, which led them to pursue strategies that failed their firms.

In a process plagued by human frailties, HR executives may not find themselves in a position to influence at the table, but rather in the hallways; outside of the normal decision-making process.

Looking ahead, what do HR executives who find themselves in positions to influence decisions need to do? Here are several suggestions:

a) Be vigilant in identifying the first signs of human frailties. Business leaders who become isolated, unwilling to harbor disagreement, abusive or exhibit behavior that suggests they are above the rules are those suffering from frailties. If they are to succeed, the HR leader must step in.

b) Erect the guardrails that prevent human frailties. Executive coaches, 360-degree appraisals, employee-survey feedback and other feedback mechanisms can provide information business leaders will find difficult to ignore. My work with CHROs suggests that one of their major roles is to be the person who provides the hard feedback of how a leader is being perceived by others. Whatever the source, such feedback can keep egos in check and make leaders aware of their unrecognized opportunistic tendencies.

c) Create the controls that minimize the impact of human frailties. Some leaders may be overcome with frailties, yet still be effective decision-makers. For instance, much has been written about Steve Jobs, chairman and CEO of Apple, and his ego, tantrums and abuse of employees.

However, his intuitive grasp of the industry provides him with unique insights that have enabled Apple to emerge from the proverbial dustbin of the information- technology industry to become one of the most admired companies in the world. To the extent that his board and those around him ensure that he cannot make all decisions unilaterally, his frailties can live on while their impact is controlled.

Be ready to put your badge on the table. Most HR leaders can tell at least one story about the time they had to put their job on the line.

Randy MacDonald, senior vice president of HR at IBM, suggests that all good HR people will risk being fired at some point in their careers when they have to stand up for what they believe in. Sometimes it was having that hard conversation with the business leader about his or her weaknesses. Sometimes it was going before the board to report to them the business leader's weaknesses.

Regardless of the situation, the effective HR leader has a fiduciary responsibility to the shareholders to ensure that the most effective leader is in place, and sometimes that means replacing the present one.

Our emerging research on HR leaders suggests that the most effective ones successfully oversee the implementation of business strategies through human capital decisions and HR processes. But it also suggests that those who stand out are the ones who can expertly influence strategic decisions before they are made, be that at the table or in the hallway.


Ref: Patrick M. Wright
[About the Author: Patrick M. Wright is the William J. Conaty GE Professor of Strategic Human Resources and director of the Center for Advanced Human Resource Studies in the School of Industrial and Labor Relations, Cornell University. He has published more than 40 articles in journals such as Academy of Management Journal, Academy of Management Review and Strategic Management Journal, and has co-authored two textbooks: Human Resource Management: Gaining Competitive Advantage and Management of Organization. Wright previously held positions in the College of Business at Texas A&M University and the College of Business at the University of Notre Dame.]

Rewards & Recognition: Time to Pay Up...And Fast

Given today's economic and demographic challenges, HR practitioners will be narrowing the focus of recognition while expanding the scope.The nation is in an economic downturn that experts believe will be with us for the next few years, if not longer. No matter the industry or the region of the country, more and more companies are being forced to do more with less.

Consumers are buying fewer products and services and putting off nonessential purchases. Capital expenditures by businesses are being reined in and, in some cases, cut altogether. Every expense is being scrutinized, because savings go right to the bottom line.

Organizations are changing their business strategies to align with the new marketplace realities. In the "old days," when customers requested "better, cheaper, and faster," companies would respond with "pick two." Today, it's a business requirement for these same companies to accomplish all three.

There has been an unexpected positive consequence of this new reality: A greater number of business leaders outside human resources better understand that customers buy products from companies, but form relationships with people.

And it's these same people -- the employees -- who have the ability to create and enhance the kind of customer loyalty and retention required for survival in today's rocky economic times. Most CEOs understand how the Pareto Principal relates to their bottom line -- 80 percent of sales come from 20 percent of the customers.

More of these same senior leaders realize a new truth; that 80 percent of business outcomes can be directly traced to the efforts of 20 percent of the employees. These "A & B players" and "high performers" are being counted on more than ever to meet and exceed customer expectation.

Narrowing the Focus

The ultimate goal of reward-and-recognition approaches is to find, keep and motivate employees through a variety of organizational interventions. These can include tangible and intangible rewards, cash compensation, benefits, recognition approaches and employee-involvement and motivation strategies. But when it comes to allocating resources to fund these rewards programs in 2009, companies will need to narrow the focus while, at the same time, expand the scope of recognition.

All employees want to be rewarded for their performance, no matter how much, or how little, they actually contribute to the success of their organization. But "C" players (who can make up as much as 75 percent of the employee base) often do acceptable -- or minimally expectable -- work and are often happy to have and keep their job, let alone receive additional rewards.

Pay-for-performance requires companies to differentiate between their superstars and their under-performers. And based on recent national research on employee satisfaction, engagement and retention, most companies have a long way to go.

According to the 2008-09 Employee Hold'em National Workforce Engagement Benchmark, 50 percent of self-identified "superstar" employees are fully engaged with their organizations. These hard-working employees are ready, willing and able to go above and beyond customer requirements and plan to stay with the company if they're offered a little more money to go somewhere else.

Why? Because they are more likely to believe they are fairly rewarded and recognized for their contributions to the company's success, feel that excellent performance gets rewarded in their organization and believe their manager ensures the best employees receive the greatest rewards. Another study recently conducted by Leadership IQ indicated that 47 percent of high performers are actively looking for new jobs by posting and submitting their resumes and even going on job interviews. Companies need to "pay up" with alternative forms of rewards and recognition.

Finding Alternatives

Employers cannot afford to lose their best workers, who get the job done on time, on target and on budget. The best workers are given the toughest assignments because they have shown an ability to get the job done. They work on the hardest accounts due to their abilities in handling difficult clients. And they're often asked to "learn on the job" due to their ability to swim while others sink.

How do most companies reward these vital resources, these assets with feet? By giving them a performance increase that is only 2 percent or 3 percent bigger than the marginal employee sitting in the cubicle next to them received. Seniority pay, merit pay, incentive pay, team-based pay, skill-based pay and outcomes-oriented pay just don't cut it, especially when companies can barely afford their cost-of-living increases.

That's why more and more companies are going to be looking at alternatives to compensation and spot bonuses to reward their best and most dependable workers. Providing training and development, work/life balance and opportunities for advancement are three of the effective rewards for today's and tomorrow's hardest-working employees.

Going forward, consider this: You should be training the best employees so they can leave, or else they'll leave. That's right. Train them so they can leave, or else they'll leave. They're going to leave anyway. The average employee has 13 to 15 jobs over the course of his or her career, seven by the time they are 30 years of age.

However, when companies provide training and development opportunities on a consistent basis, these superstars will stay longer, work harder and recommend the organization as a great place to work. And aren't those exactly the kinds of behaviors that a pay-for-performance system is supposed to elicit from top employees?

Whether it's a result of the expectations of their managers or the demands they put on themselves, high performers in an organization know through experience that they won't be working only 40 hours in a week. They show up when they are needed, and stay until the job is completed. They're willing to give up some personal time in order to satisfy the needs of the job. But they expect payback as well.

Managers who want to keep their top performers retained and engaged will need to recognize the importance of their personal and family life and be flexible when the pendulum swings to the family side of the question. Managers will need to ensure that top performers are given the freedom to balance work and family responsibilities without hindering their career progression. And they'll need to be sensitive to the needs and problems of these employees when they arise.

Employees will continue to want the ability to move up and move over or they're going to move out. Many front-line supervisors and managers are reticent to let their best employees transfer to another division or department. The reason is understandable; the supervisor's performance review (and pay) is often based on the productivity or throughput of their direct reports.

More and more companies will be training their supervisors to be "engagement agents" for these top performers, providing career mentors throughout their employment. In the past, companies have pigeon-holed their best employees into the jobs they were "hired to do." When half of these workers are open to job offers from other companies, or are actively looking for them, this practice has to end. It's time to pay up. And fast.

Expanding the Scope

And finally, a few words about expanding the scope of recognition. Believe it or not, many companies still think about recognition in terms of the anniversary card hand-signed and delivered by the senior executive, the "five-year pin" given out at the annual awards luncheon or the gift catalogue the 10-year employee chooses from as acknowledgment of his or her continued tenure. Granted, these are worthwhile endeavors that all employees share in, even the three-quarters who are "C" players in the typical organization.

So, how are the best companies taking this one step further? They're doing it by recognizing the importance of daily satisfaction and ethics, diversity and safety. Companies that understand employees quit a boss and not a company are working hard to ensure that employees have a good relationship with their immediate supervisor. They're attracting talent by making certain there is a good fit between the applicant's skills and interests, and their job. And they are making sure that each job provides a feeling of personal accomplishment.

Today, companies better understand the critical nature of ensuring an ethical environment for their workers. Employees are less willing to cut ethical corners for short-term profits or modest improvements in a company's stock price. They are less willing to look the other way regarding issues of favoritism or unfair treatment of employees.

And today, providing a safe and secure workplace is no longer a "nice to have," but is more like a standard table stake in poker. Employees understand that, although compliance and ethics may lead you to the same place, compliance is based on things you have to do, while ethics are things you want to do. The difference in one verb makes all the difference in the world.

The year 2009 is going to be a difficult one for an increasing number of businesses. Decreasing revenues, shrinking profits, pressure from shareholders and competition from new and emerging markets are going to test the mettle of even the most solid companies.

Companies must continue to narrow the focus of their rewards programs to target the employees they count on most while expanding them beyond the typical merit-pay and spot-bonus programs many used to rely on. And by recognizing the importance of daily satisfaction and ethics to all employees, companies can improve the performance of all employees.

It's the old Fram Oil Filter commercial, with a twist: "Pay me now or pay up later."You make the choice ... or your employees will make it for you.

Ref: Marc Drizin
[About the Author: Marc Drizin is founder and chief instigator of Noblesville, Ind.-based Employee Hold'em, which provides talent-retention solutions and corporate training services. He is the author of Workforce Engagement: Strategies to Attract, Motivate, and Retain Talent, and a second book, Employee Engagement Fundamentals: A Guide for Managers and Supervisors. ]

Motivation mantra for tough times

‘When the going gets tough, the tough get going’. This realisation is dawning upon India Inc as many firms go whole hog in boosting the morale of employees during tough times

How much does it take to say a few words of appreciation or simply saying ‘You Care’? Not much, isn’t it? Motivation lessons, personalised letters from the CEO, advisory sessions, learning workshops etc are an entirely new chapter which India Inc is incorporating to boost the morale of employees in the slowdown scenario.
Companies across sectors are leaving no stone unturned in motivating their employees and keeping up productivity levels. In today's context, it is absolutely imperative to create an atmosphere of trust, understanding and cooperation between various groups within an organisation to sufficiently motivate the employees. It is also necessary to provide a platform for them to discuss the impediments, both subjective and objective, to maximise team performance. Such an approach in organisations will help motivate the employees to develop action plans to circumvent the obstacles and focus on business propositions.

“Motivated employees have a very high degree of desire to excel and take great pride in their performance. In short, a group of highly motivated employees make the difference between success and excellence,” notes VT Gopinath, executive vice president, Actis Biologics, a Mumbai-based biotech firm.

SumTotal Systems, a global provider of talent development solutions recently celebrated its annual event called ‘Synergy ‘08’ which allowed employees to come in direct contact with the CEO. The event saw a gamut of one-on-one discussions taking place between them. “Employee engagement is the core focus at this point. Simply giving employees a feeling that everything is perfect is half the race won,” says Lekha Sishta, VP - HR & talent management, SumTotal Systems – India.

“What added value to the event was that we had one-third of the company involved in it. Such factors not only help in keeping up productivity levels of employees but also keep them engaged,” adds Sishta.

Adding further to this, Shekhar Aggarwal, MD, Surya Food & Agro says, “In the present scenario where companies across sectors are retrenching their employees, we conduct regular motivation workshops for them. These workshops have far reaching ramifications on the employees that further tend to boost their morale and productivity.”

Ambience Group, a Delhi-based realty firm believes in standing by its workforce during tough times. “During this slowdown, the management understands how difficult it is for the marketing people to meet the targets. Keeping this in mind, the company sends out personalised emails from the MD stating the good contribution by the employees,” notes Ramesh Shah, strategic advisor, Ambience Group.

“We also hold motivation workshops as it helps build the spirit of the team,” adds Shah.
In order to build confidence among employees and battle with the economic slowdown, Dr. Verma, director, HR & Management Support, LG believes that the manager should be a rational thinker. “Boom and recession are both the features of an economy and hence follow each other,” adds Dr. Verma.

The company has initiated ‘Ask the MD’ where an employee is free to post a suggestion which is directly addressed by the MD himself. “We conduct standing meeting where the MD addresses the entire staff and asks for suggestions etc.,” adds Dr. Verma.

We cannot deny the fact that an organisation’s greatest asset is its employees. Keeping the workforce intact during tough times is the biggest challenge companies are facing these days. Pats on the back, showing concern, giving personal attention etc are some of the methods that firms are adopting to beat the blues.

Ref: Sheetal Srivastava

Dilemma of talent development in an economic downturn

“Pay packets to shrink as slowdown dents growth”; “Worst is still to come….”; “Salary cuts of between 15% and 25% on the cards for…..”

These are just some of the headlines screaming out of leading newspapers. So what does an organization do about talent development in such tough economic times – should it be treated like other operational levers which are pulled to reduce costs?

My opinion? Now is the best time to invest in talent development.
Sounds insane? No. Here’s why-

1. When things are going well, people are ‘too busy’ or ‘too successful’ to take the time to pursue a learning initiative, leave aside apply the learning at the workplace. Today staff are far more focused on up-skilling.

2. A large number of people have grown through the organizational hierarchy as a result of their technical skill base, less so as a result of their ‘conceptual’ and ‘human skills’. Now is the time to pause and implement a range of talent development strategies focused on these gaps as ‘minds may be more open’

3. Investment in talent development in these times has long term ramifications in terms of building company loyalty since the support and investment is available when it is most needed.

4. An objective assessment of individual capability is far easier since the historical perspective becomes less relevant as the focus is towards building a “new order.”

5. To create a new order, a ‘back to basics’ approach must be adopted where the fundamentals rather than experience play a larger role. Learning initiatives are key to refreshing these business fundamentals.

Of course the question that must be answered is “where will the funds come from since now is the time for some short term fixes”. To quote Ramsay Clark, “Turbulence is life force. It is opportunity. Let's love turbulence and use it for change”. While a number of today’s success stories may be form a part of the ‘successes gone bust’ section of management reading of the future, and others may be in panic and cutting costs indiscriminately to survive, now, when the rules of the past no longer hold true, is the time to invest in building talent for the future and sustaining the cutting edge as far as human resources is concerned.

A – Z OF CUTTING COSTS

At this point of global meltdown, recession all are tightening belts to battle the economic squeeze. Most companies have implemented to cut cost. Lets join hands together to implement. Here are some tips to follow up.

Air travel…. - Flying has become too much of a luxury even for the well heeled. Corporate honchos have been forced to downgrade from the luxuries of business class to humble economy. Go in for Video Conferencing and reduce your travel.

Bonus down…. – Compensate staff by non-monetary incentives, such as paid time off.

Car drop has become drop car for major companies. Refrain from all the luxuries of hiring taxis.

Downsizing. Reduce number of junior staff. Rather try to combine work.

Energy Conservation. .- Switch off the lights when not in cabins or wherever you find it lighting unnecessarily. Usage of “sleep” function in computers to save computing power.

Fax …..- Curb the costs on messages to be delivered through fax instead use emails for all communications.

Guest Entertainment ….-.Say good bye to five star hotels as company guest houses are in. Don’t impress clients by expensive dinners and leaving the company to pick up the tab.

Hit the classroom. Instead of hiring permanent staff when you need more hands on deck, tap local colleges and universities for interns.

Inventory…Say no to fresh inventory. Rather try to utilize the existing inventory to the maximum.

Join forums and stay updated with latest events and trends in the market rather than going in for expensive conferences, training sessions.

Keep your pockets tied, not only the professional way but on personal front also. Say no to extravagancies, partying, entertainments.

Look for free software. Try hundreds of application through trial downloads, freeware and even limited versions of the full product

Man power suppliers cost…..- Try to reduce hiring from manpower consultants.

No hangovers, get together, partying at companies cost.

Overtime – Invest more in planning to prevent situations in which employees must work overtime to complete projects.

Put forms online. Make frequently used documents accessible on an internal server to avoid having to reprint them each time.

Quantum cuts in perks and salaries. Get ready to forgo your LTA, reimbursements for petrol and cell phones.

Recruitment - may be stopped for a while. Recruitments, if necessary can be done through employee referrals.

Scale back on costly team-building events. Rather, consider volunteering as a group. This will boost morale and offer employees the chance to give back during tough times.

Telephone - usage is also down by encouraging Voice Over Internet Protocol.


Utility cost – Reduce utility costs like gas, electricity, DG sets etc.

Video conferencing has replaced travel in leading firms.

Wastage is banned. Be it food wastage, electricity, stationery etc.

Xerox machines are vanishing from offices. Impose restrictions on the number of photocopies and printouts.

Yes to more responsibilities, multitasking.

Zero … the size of your bonus this year, that’s if you still have the job.

Ref: HR Funda

Boost Engagement in a Financial Crisis: Tell the Truth

The recent turmoil on Wall Street appears to carry more than just financial implication: It may be lowering employee productivity and engagement, as well.

In a new survey by Workplace Options, a work-life consulting and training company, half of respondents said they are experiencing stress because of financial concerns, and nearly the same amount said that stress makes it hard to perform their jobs.

"It's a critical issue because the first reaction is to hunker down, play it safe and try to not stick out," said Jim Haudan, CEO of Root Learning and author of The Art of Engagement: Bridging the Gap Between People and Possibilities.

"When fear, uncertainty and doubt reign supreme, people begin to get on the [anxiety] train," Haudan explained. "They look at turf control, they begin to catastrophize what's going on, and they begin to worry if [they're] next. All of these emotions are very real, and all of these emotions are exactly what you don't need at a time when you want people to unify, align, change and be agile.

"To help get employees back on track and to leverage workers' capabilities to the fullest, Haudan said talent managers should advise leaders to do the following:

1. Convey the reality of the situation.

Above all, leaders must be frank with employees. "People are amazingly resilient and able to deal with the downside, but the unknown is paralyzing," Haudan said. "The leader's job is to bring the facts into focus and create a perspective.

"To do that, leaders must engage in two specific behaviors: tell the truth and show the bigger picture. "[When leaders tell] the truth, people actually becoming more trusting," Haudan said. "It's when you're not thinking you're being told the truth that you become less trusting.

"There's a very emotional connection, too," he explained. "Telling the truth also conveys that we, leaders, understand the predicament our people are in in such an empathetic way it creates a connection [that allows us] to go forward rather than stay where we're at.

"But leaders also should be sure to convey the bigger picture to employees. Haudan said employees often complain they only receive bits of information that can often give them a haphazard view of what's going on, like disparate jigsaw puzzle pieces.

"They said, 'Why don't [executives] just send the cover of the box across to the puzzle, so we can see how it all fits together and then realize that some of these parts that seem to be in conflict may have their appropriate places?' I think more than ever in these turbulent times, getting people to see the 'box top' of the business and the state of the business is absolutely essential to tap into their capability," Haudan said.

2. Communicate the "score.

"When the financial crisis began to unravel, many employees were glued to their computers, constantly clicking for updates."I've never seen so many [people] check the market so many times in one day," Haudan said. "Human beings, in times of turmoil, want to know what the score is. There's never been greater curiosity about the score; use and leverage that curiosity to not only [get employees to] understand the business but to keep everybody in the game. The urgency can either tear us apart or be a catalyst to bring us together."

3. Prioritize.

Employees are likely to feel overwhelmed in turbulent times, and when upper management unwittingly leads them to believe every initiative is urgent or important, they're more apt to just give up. Leaders should focus on keeping things simple and direct to improve engagement.

Ref:Agatha Gilmore

Creative Alternatives to downsizing

News of downsizing spreads like wild fire and organisational mercury levels rise with the apprehensions that abound. It definitely is bad news for employees. Though downsizing is a common strategy adopted by organisations to cut costs, during recession it becomes a requirement. Research proves that the primary objective of downsizing, of cutting costs, is not met often, since most companies rehire.

To keep an organisation afloat managements either have to cut costs or increase revenues. They choose the easy way and downsizing happens. But there are organisations that think otherwise. They use some creative ideas instead of downsizing to cut costs. HR should be aware of the alternatives to apply them to their company.

Silver lining

Some organisations claim to have adopted techniques that could cut costs without resorting to downsizing. At Charles Schwab the top management took a 50% pay cut as an example to the other employees.

Rhino Foods, an ice cream manufacturing company in Vermont, sought employees' suggestions on the issue. One strategy that proved successful was to lend employees to their suppliers and other companies during off seasons. This way they cut costs without downsizing their employee strength.

Cisco is another company that does not believe in downsizing. During the depression its employees are allowed to work with non -profit organisations for 20-30% of their actual salary. Called the ' warehousing strategy ', it helps retain employees even during tough times.

Similarly Lincoln Electrical, Ohio, has not laid off any employees since 1930. During a sales slump they retrained their shop floor employees who were not more than high school graduates. They were expected to identify unexploited markets so that the company could leverage it. This done now Lincoln gets $800 million as revenue from the market the employees identify.

A drizzle

Organisations must realise that the alternatives should be developed keeping in view the present and the future needs, which are changing rapidly. The success of options are based on the fact that

• Everyone has to go through cost cutting strategies
• HR plays an important role in easing the strategies

Respite from the heat

Hiring for the future

Organisations should hire its employees with its vision and objectives in mind. HR should design interviews and assess based on their present and future skill requirements. Recruiting people who can meet future challenges will help the organisation in the long run.

Skill mix

An assessment of the skills available in the organisation and future needs will help employees to know skills they need to acquire and those that need sharpening. This also helps HR to identify training needs and provide for them accordingly.

Succession planning

Assessing the skill mix of the organisation helps in succession planning. The organisation can prepare probable candidates for the position and then appoint them when the position falls vacant. Employees need not thus be hired and laid off during recessions.

Opportunities that enhance overall development

Organisations sometimes create opportunities that help employees to innovate and add value to the organisation. Employees create a new line of business or identify untapped markets and help the organisation to exploit the area. However, organisations rarely adopt such options. Ford has done something similar to this. When they planned to sell the name Mustang to another company their engineers wanted to launch a Ford version of the car. The leaders accepted the proposal, on the condition that the new launch meets the quality specifications of Ford. What transpired is history. A cult was created by the Ford Mustang.

Working hours and wages

Sometimes organisations resort to reducing work hours by placing all the employees in flexible work arrangement. Others allow employees to share jobs and the benefits thereof.

Wage reduction is strategy where employees face wage reduction irrespective of their position in the organisation structure. The top management has the highest reduction followed by middle managers and lower level employees.

Alternative placements

When all the other alternatives fail to give expected returns organisations can find an alternative job for the laid off employees. AT&T adopted this option with a difference. The organisation advertised the availability of employees for other organisations. It paid off. Requests from various companies poured in to recruit the employees.

Others

Organisations can explore various other ways to resolve the problem. Some organisations do not downsize but wait for their employees to leave on their own. These positions are not filled immediately so existing employees can be placed there.

Some others offer leave with benefits or part benefits to their employees. When they return from the leave they might be given the same or a different job position. Organisations also use employee buy-outs. The employees buy a business unit that is on the verge of closure and try to revive it on their own.

Few organisations offer the company's equity in lieu of the salary cuts. Although this decision needs strong employee participation the reality is far from it. Employees are hardly involved in any kind of decision- making.

Some of the Japanese companies use all the above alternatives. If one fails they use the next one.

Precision

Organisations should first check the appropriateness of the option chosen. They should visualise future needs and the options available. Organisations should assess their vision and determine whether they have the expertise to realise their vision.

The alternatives should be analysed individually using the questions and then the right mix of skills should be determined. Some questions to be asked before adopting the alternatives:

• The alternative's scope of achieving the vision
• The suitability of the alternative to the company's value
• The costs and risks in using the alternatives
• The impact of the alternatives on the people, their morale and productivity
  

Top managements often forget to recognise the trauma employees undergo when they are laid off. Management must place themselves in the employees' shoes to be able to relate with their distress.

Finally, when the alternatives are being implemented HR should first research the industry and see what competitors have been doing. Involvement of employees and the top management in the implementation of the alternatives eases the process.

Reference:The ManageMentor

Planning for Success!

Succession planning assumes a strategic role as recession hits talent supply...

Tough economic times are not about financial meltdown alone. There is also the collateral damage that comes with it. Economic downturn brings different challenges for different functions. For the human resources function, the challenge lies in the ability of the organisation to maintain a healthy and competent bench strength without digging into the corporate wallet. HR leaders have to try and prevent holes from forming in the talent bench.

Succession planning gains a whole new meaning in recessionary times. Experts say that organisations need to have a robust succession planning strategy so that they are prepared adequately to combat recessionary blues. Succession planning should ideally begin in the hay days when the economy is booming and things are looking good. It is in such times that HR leaders, along with functional heads, can pursue their succession ideas since both the risks and gains are limited. What's more, recruitment managers have the luxury of 'buying' talent when the going is good, while in a downturn it is more about 'growing' talent. A strong succession pipeline makes all the difference here.

Toning talent muscle

Why should organisations focus on succession planning in a downturn? The reasons are many. The most evident and convincing of them is that in a downturn organisations have little to spare and turning inwards for help will be the only option. This, however, would help only if succession planning was tended to as a critical strategic function in good times.

Financial crisis always pushes employees to do a bit more than what they could. Hence, having a competent bench strength can help organisations produce more without pulling purse strings. Despite awareness about the importance of succession planning and its role in a downturn most organisations have a weak succession plan. Organisations pay little attention to their succession strategy and only prepare a vacancy chart to show how one moves up the ladder. Such apathy towards the critical function can spell disaster for organisations in times of recession. .

Organisations, therefore, should analyse closely the need, purpose, objective, process and the desired output encompassing a succession planning programme. The best way to begin working on a function like succession planning is to work backwards from the outcome to the purpose. This is because only when HR leaders are clear about what they expect from their succession planning will they be able to chart out a plan to achieve it. Without a clear understanding about the outcome leaders may fail to do the right things and therefore may not produce the desired results.

A clearly defined purpose will help leaders define parameters to measure their success and will also help in letting others know about the validity and reliability of the exercise.


Defining points

The success of a succession planning programme can be measured by using a scale that assesses the programme on a number of parameters ranging from usage and design to output. To begin the succession planning drive, it is important that the programme has maximum reach and easy accessibility. For this, the succession plan has to be written down and distributed among the people covered by the programme, and also those sitting on the decision making bench. In addition, the plan must have the following attributes:

The succession plan should be more of a 'progression plan', where the emphasis is on an individual's growth and career progression, and not promotion

• Every succession plan should have an individualised career graph that would help employees keep a track of their progress
• Leaders and managers should be open about people who are included in the plan. Clarifying about individual status will help employees get a better perspective to the entire exercise
• The plan should include appropriate rewards for managers following the plan. Managers who help their subordinates make smooth transitions that are in line with the chalked out plan should be rewarded suitably
• Succession planning should be articulate and must ensure that the right job moves are made

Succession planning should not lead to crisis. It should be integral to corporate management and save organisations caught in a downward spiral. However, this is possible only if organisations invest adequately in succession planning and build a robust talent pipeline that can be relied upon in times of need.

Reference:TheManageMentor

Talent Preservation

The party seems to be over in the context of global economic boom. Recession has set in, and for companies there is no escape from the tweak.

A natural reaction in such tough times has been cost-cutting, and the human resources department figures first on the chopping list. Corporates have frozen their recruitment budgets almost instantly and are seeking ways to cut on numbers. While employees are at the receiving end, for organisations there is little else to do to help the situation—if they don’t retrench, others on board too will perish!

Though it is difficult for many companies to maintain the existing staff, leveraging the talent onboard and using it to maximise corporate efficiency can be one of the best bail out plans against recessionary blues. The situation is very complex from a recruiter’s perspective too. The need to have a better talent is at its peak, while the resources have run out. In addition, the target group of passive job seekers too is not willing to shift jobs when everything seems so uncertain. All these factors have turned the recruitment scene dismal, and the focus is only on retention.

Loyalty at a premium When the chips are down the chance to bounce back lies in the perspective of the decision-maker. Recession is as natural to the economy as boom time, and it is the perspective of corporate leaders that matters most in such testing times. While cutting costs is important, diluting internal talent resources and barricading flow of creativity can stifle organisational growth. The way a company treats its employees amidst gloom and doom impacts the loyalty quotient. Employers who harness internal talent in times of economic downturn can hope to see an army of loyal employees standing by them, while those who axe talent and get fidgety with employees fail to earn loyalty. It would not be wrong to assume that employers who show greater loyalty towards their employees during critical times would be better poised to claim a greater market share in fair weather.

Recruitment enthusiasts may argue that even in an economic downswing, it would be worthwhile to keep the talent pipeline active. However, corporate strategists say focussing on existing talent is more important. People with foresight and ability to plan ahead agree that preserving the best talent in critical times will save the agony of employee turnover in future.

More tactical, less strategic When it is tough time strategies dictate the course and tactics help ride over it. It is the tactical abilities of leaders that help weather the storm. Hence, leaders and managers have to think ahead in time and leverage the resources available to them. Apart from working towards maintaining optimism at the workplace, leaders have to be concerned over what the employees are thinking about the organisation’s take on the crisis.

Fear is the most dominant feeling in such times, and onus of alleviating fear and pessimism lies with the leaders. Corporate leaders should ensure that employees feel secure and reassured of their jobs. Respecting people’s feelings and giving them their due in critical times is what sets employers apart. Many companies boast of their “zero layoff” record, as they believe it is their approach in tough times that has seen them rank high on the list of most preferred employers.

The example of US steel major Nucor Steel shows how companies that believe in guarding employee interests go the extra mile to save them the agony of a layoff. Nucor Steel has cut on executive perks, and reduced the number of working days instead of laying off staff. Making choices that are more ethical than profitable have proven to be rewarding.

The onus of providing the organisation with the best talent crop lies with human resources professionals. When the going gets tough and vacancies shrink, the responsibility to make a difference and keep the existing talent motivated and inspired also lies with them. HR leaders who understand this go out and prove HR’s worth as a tactical asset.

*Reference: TheManageMentor

Top 25 Careers to Pursue in a Recession

Health Care: People will always get sick — sometimes even more so when they don't have the insurance or money to take preventative measures or eat healthy food.

Energy: Although consumers are likely to cut back, they're not going to stop using energy. In fact, this industry may grow, as companies look for more efficient ways to deliver using less energy.

Education: No matter how dire the economy is, there are always jobs for teachers. Kids will still go to school, and many out-of-work adults may decide to continue their education.

Utilities: Just like the energy sector, it's safe to assume that people are not going to stop lighting their homes. So utility administration, maintenance and other related jobs should remain intact.

International Business: Even when the economy is doing poorly in the U.S., other countries may be doing well. So if you are involved in international business, you can expect your career to stay safe.

Public Safety: Police layoffs are very rare, especially at a time where public safety is threatened by desperate criminals. A career in public safety is almost guaranteed to be secure.

Funerals: Just like people won't stop getting sick, they'll continue to die as well, so as morbid as it is, morticians will always have customers.

Accounting: Death and taxes are a sure thing. In a recession, people and companies are likely to get desperate for more deductions and a hard look at their books.

Federal Government: Most federal-government jobs end only when workers retire. Additionally, government services tend to step up in times of recession, so your chances of getting and keeping a government job are good.

Pharmaceuticals: As long as doctors prescribe them, people are still going to take drugs. So whether you're behind the pharmacy counter or in the lab, you can rest easy.

Sales: As a general rule, anyone who is a source of income for a company will be safe, so salespeople — especially in recession-proof industries — have little to worry about.

Military: The military is always hiring, especially during wartime. Also, consider that most of your living expenses are covered, so cost-of-living expenses are not really a concern.

Gambling: When times get tough, people seek an outlet. One of those outlets is gambling, especially because it offers a chance to turn financial troubles around.

Alcohol: Alcohol is another outlet for troubled times, so distributors and manufacturers in this industry will continue to thrive.

Politics: Even in a recession, public officials are still around earning tidy sums, which are often tied to the cost of living.

Skilled Services: Hair will always grow, and drains will always clog, so you can expect steady work in skilled services like plumbing and hairstyling.

Debt Management: Recessions mean crunch time for debtors, and they're sure to need some guidance.

Consulting: Recessions are crunch times for companies as well, and they're likely to bring in consultants for advice on efficiency and squeezing the most out of their resources.

Bankruptcy Law: It's sad, but true: As companies and individuals go bankrupt, they'll need a lawyer to help them work through it all.

Government Contracting: Despite money troubles, roads must be maintained and schools must be built. Contract your work out for government functions for job security.

Food: People need food to survive, and it's not likely that anyone is going to just stop eating — no matter how bad the economy gets.

Beauty, Health and Erotic Services: Regardless of a recession, people who enjoy being pampered will seldom give up the simple pleasures in life.

Debt Collection: As budgets get squeezed, people will fall behind on payments, and companies will look to debt collectors to recoup their costs.

Ultra luxury Items: If you're in a business that caters to the ultra rich, you can expect to be safe, as this type of consumer is likely to have measures in place to weather the recession.

Multifaceted Careers: If you don't put all of your eggs in one basket, you should be able to ride out a recession by relying on secondary income. So if you juggle a career that involves a regular job, plus other sources like online income, freelancing and investing, numerous failures have to happen before you're really in trouble.

Although today's job market may be bleak, there are some bright spots if you know where to look. While recessions hit some sectors hard, others go on like clockwork — or even experience growth. So whether you're hunting for a job or still feeling ostensibly secure, now is a good time to evaluate your options and consider one of the aforementioned recession-proof careers.

Opportunity in adversity

Staying afloat
In a time when most are feeling the tremors of the global financial meltdown, there are a handful of Indian sectors that are still staying afloat. “If you look at sectors like insurance, healthcare, engineering, you will notice that they are still growing in volumes and value,” notes Ajay Soni, business leader - talent and organisation consulting, Hewitt.

What perhaps is keeping sectors like insurance afloat is the consumer mindset and attitudes. “Unlike developed economies like the USA, savings is in our DNA. In tough times we save even more for the future,” explains N.S. Kannan, executive director, ICICI Prudential Life Insurance.
Industry experts are optimistic and are expecting the private life insurance industry to grow at a 30 per cent rate by FY ’09. “Since core of life insurance is long term savings and protection, these times with sensex crashing will not affect investors’ decisions,” Kannan reasons. “Customer focuses on long term objective and invests over a time period,” he adds. ICICI Prudential has reportedly witnessed 31 per cent growth in its new businesses and 90 per cent growth through renewal premium business in the last six months. “We’ve expanded phenomenally in the last 18-24 months and our bulk expansion has been in the last 6-8 months,” says Kannan.

In fact, from a branch network of 580 offices in FY’07, I-Pru now has 2,055 branches across the country. “We continue to recruit managers and advisory manpower for these new branches that we’ve set up,” Kannan adds.

Sectors galore
Insurance sector is playing an interesting role in the current downmarket scenario. The life insurance industry has pumped in a huge amount in the equity markets. “Firms like ours and other life insurers have been net buyers even in such volatile times," informs Kannan.

Then, there’s healthcare which is also reportedly doing better than most other sectors. “The global financial turmoil has not brought about any major upheavals in the biotech arena,” says Chirag Mehta, head, strategic planning and development, Intas Biopharmaceuticals. Intas Biopharmaceuticals has seen a 100 per cent growth in the FY '07-'08 and is expecting the same for the current fiscal year. “We are on track to achieve this. Our performance this year and in the remaining quarters would be in line with our expectations,” Mehta points out. “We do not see any major business plan change for the near future,” he adds.

This perhaps also implies no major change in the hiring strategy. “We have added over 15 per cent to our manpower base during the last quarter and the trend for the subsequent quarter would remain unchanged,” confirms Dr. Kashmira Pagdiwalla, director, HR operations, Intas Biopharmaceuticals. Elaborating on the areas of healthcare where major hiring is happening, Dr. Pagdiwalla says, “The talent need is growing in the areas of research, manufacturing, marketing and corporate roles.” Of course, these are sectors that aren’t connected to the meltdown. However, even the services sector which has been adversely hit by the recession has pockets of growth. “In the services sector, Telecom is adding to the customer base and reporting continual growth,” Soni points out. One such example is Airtel which has grown at a 30 per cent rate from the last quarter.The way ahead

Soni, like other industry watchers, believes that the way forward is to set the house in order and use this time to create a strong DNA of managing organisation. “This time offers an option of looking at long-term and not just quarterly performances,” asserts Soni. “Forward looking organisations would build themselves for the long term,” he adds.

To put it simply, it’s an opportunity for managers to reflect on their business strategies and plan for contingencies.

Ref: Times Ascent