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Group Project
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Project Title: High Performance Human Resource
Practices
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IndexIndex
Introduction
Data Analysis Construct Wise
High Performance HR Practices
Comparative Analysis
Conclusions & Recommendations
Appendix
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Organization Overview
4 Organizations were selected for administering the survey and analyzing the results in order to
arrive at strong inferences and conclusions on the relationship between High-Performance HR
Practices and Organizational performance.
Indian MNC (1)
Indian Trust (1)
Foreign MNC (2)
Media (1)
NGO (1)
Telecom(2)
A diverse blend of companies was selected based on their legal entity, nature & size of business,
Business type.
Hence this ensured that the results
a) of the analysis was an holistic, relative assessment of the relationship between High
Performance HR Practices & Organizational Performance
b) true representation of the Indian Industry
(Respondent Company Mix)
(On the basis of
Legal Structure)
(On the basis of
Industry)
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Respondent Mix
38% of the Respondents comprise of Senior
Managerial Personnel; 42% at Middle Managerial
Levels and 12% at Junior Managerial Levels
Hence it can be surmised that 61% of the sample
size of respondents are the beneficiaries of the
High Performance Practices adopted by their
respective organizations and 39% have played a
strong role in framing these Practices
Tenure of Respondents
65% of the respondents are 10 years
Functional Level Mix
No. of years
Range Junior Middle
Senior
Managerial
Grand
Total
0-5 12 16 11 39
6-10 9 9 18
>10 3 3
Grand Total 12 25 23 60
100% of the Junior Level pool is < 5 years old,
which gives a good flavor of HR practices at the
ground level.
56% and 37% of the ML and SL from the pool are tenured at < 5years and 6 to 10 years old, clearly indicating that
a higher % of employees have been externally sourced instead of growth from the ranks. Further analysis of the
survey will help in understanding if there is a strong relationship of external hiring to organizational performance
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Selective Staffing
Extensive Training
High Performance HR Practices
Internal Mobility Employment Security Clear Job Description Result Oriented Appraisal Incentive Rewards Participation
Analysis Construct wise
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Constructs
Selective Staffing
Extensive Training
The selection and recruitment process is fairly rigorous and the general perception in the industry
seems to be that, considerable importance is given to ensure right candidate selection. Recruitment
process is scientific and keeps the long term strategic requirements of the organization into
consideration.
However, a depth study of all variables of the Selective staffing process reveals that the respondents
feel that although the recruitment process is stringent and great care is taken to find the right fitment
for a role, long term employee potential is one variable which can be worked upon and improved.
Employee Training is at the core of high performance and effectivity for organizational growth. On the
job, onboarding and periodical training are the different types of trainings offered by organizations to
ensure the skills of employees are in convergence with market requirements.
Periodical training to brush up skills of existing employees is adequate but training in a formal
program, on the job training and customized training based on job design and analysis is perceived to
be very low in the industry
But the degree of dissatisfaction seems with respect to inadequate training is highest at the NGO
which is quite expected as they are performing in an unorganized setting.
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Constructs
Internal mobility is a function of the policies and framework adopted by organizations to create a culture
of growth and high performance orientation. The ability of organizations to skill and re skill employees in
diverse business environments, to maximize effectiveness and to adapt to changes in the external and
internal environment. This ability builds confidence in the employees with respect to future career
growth in the organization which eventually reflects into high performance of the organization.
Majority of the employees falling under the NGO and the Media sector perceive no future growth in their
existing organization; whereas employees in the Telecom sector seem to have a clear career path in
place. The dissonance in the NGO sector can largely be attributed to low direct impact and long
gestation cycle for success and fulfillment of their goals and for the Media sector this could be on
account of volatile nature of the business coupled with high levels of competition which takes a huge toll
on the margins of this business, hence intense work pressure for employees.
Meanwhile, the telecom sector is capital intensive and owing to the size of the business, its imperative
for companies in this industry to have clear career development goals for its employees.
Internal Mobility
Employment Security
Job Security is strongly linked to the culture and policies of an organization. Majority of the employees in
the industry seem to be satisfied with the level of job security in their current organization.
Only Respondents from the Telecom sector perceive risk of long term employability. This could be
because of strong performance management processes in the telecom sector. As companies grow
larger, processes are built in to ensure high performance in all functions and hence low performers will
perceive insecurity in jobs
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Constructs
Clear Job Description
Majority of the respondents perceive the performance appraisal process to be fair and objective.
Respondents agree that the performance management system is objective and quantifiable
although they feel that the appraisal process does not factor or take into account the long term
achievements of employees. Clearly points out that organizations in the industry stress on short
term and consistent results from employees
Respondents are positive about the job descriptions and role requirements. Industry dynamics
and size of the companies in an industry also play a big role. 2 of the companies used for the
survey are Multinational Companies in the Telecom business viz. organized players.
The other 2 companies (NGO and Media) though unstructured in comparison to the telecom
business, generally tend to hire experienced professionals. They tend to rely highly on expert
power on account of the nature of their business. Experienced professionals are generally clear
about their roles and in fact need more freedom and flexibility to perform effectively.
Result Oriented Appraisal
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Constructs
Commissions or incentives are not linked to group performance or profitability. Rather they are
based completely on individual performance. Group Performance or profitability based incentives
are typically drawn out for Leadership team members and not at the business managerial levels
Incentive Rewards
Participation
Employee Participation in decision making is encouraged in the industry. Majority of the
respondents perceive to have open communication lines within the organization and team
structure and believe that the management is open to listen to new ideas and allow them to
implement good suggestions in their day to day business.
Organizational Metrics
Average Quit rate in the industry is 12% and most of the respondents believe that their quit rates
are as good or better than competitors.
Average Absenteeism rate in the industry is 6% and most of the respondents perceive this to be
as good or better than competitors.
With respect to Profitability and sales, majority respondents believe both matrices to be higher
than the preceding 3 years. Employee productivity is considered to be the highest
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Overall Assessment High Performance Matrices
The survey results clearly indicate that industry dynamics and size of the organization play a very
critical role while determining the benchmarks of high performance matrices in the industry. A brief
holistic assessment of all the key High Performance Matrices which have a strong interplay are
shared below.
Organized MNC players in the telecom industry have clear focus on high performance matrices necessary for high growth in their business. Importance to processes in these companies could also be because of the size of the organizations as companies which are capital intensive and have high employee size find building processes as a business imperative not only for growth but even for survival
Hence we have observed that organized players have scored very high on their existing staffing and recruitment, performance appraisal practices, onboarding and training processes and though employees do not have complete job security, there is clarity that high individual performance is enough for career growth and fair rewards
At the same time, the Indian MNC from the Media sector and the company from the NGO segment are clearly not very stringent in their processes. High performance practices are not a norm and employees operate in an unstructured environment on account of which there is a higher level of ambiguity in roles, lack of training and not much guidance in the career development plans of the employees which is a high risk in the long run and sustainability of organizations.
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Comparative Analysis
HighPerformance Matrices
Company M(ChineseTelecom MNC)
Company SA (EuropeanTelecom MNC)
Company SH (Indian NGO)
Company R(Indian Media MNC)
Selective Staffing Highly Agreeable Highly Agreeable High High
Training Neutral Neutral Low as most of the training is on the job and inadequate
Neutral onboarding training is conducted but ongoing trainingpractices for existing employees are weak
Internal Mobility Technology driven business and hence function specific
Technology driven business and hence function specific
Neutral Low as they do not have a strong process and orientation for job rotation and other flexible practices
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Comparative Analysis
High Performance Matrices
Company M(Chinese Telecom MNC)
Company SA (European Telecom MNC)
Company SH (Indian NGO)
Company R(Indian Media MNC)
EmploymentSecurity
Low on account ofless transparency in the culture
High as compared to other players across industries
High as performance appraisal process is not very strong
Low
Clear Job Description
Low on account of lack of transparency
High Low; very ambiguous roles and unstructured
Low ascompared to the MNC companies in the industry
Result Oriented Appraisal
High as marketshare of Chinese companies in the industry is high
Low as compared to other players in the industry. Decision making is also time consuming on account of high reliance on processes
Neutral but performance management process is weak
Low
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Comparative Analysis
HighPerformance Matrices
Company M(ChineseTelecom MNC)
Company SA (EuropeanTelecom MNC)
Company SH (Indian NGO)
Company R(Indian Media MNC)
Incentive Rewards
High High Low as its not a business
Neutral
Participation Low High High Neutral
Profitability and Sales
Low as they focus on underselling and in intensive price war
High as the focus is clearly on nurturing long term relationships with premium customers
NA as its a not for profit business, butquit rate is high on account of low level of impact and high gestation in terms of success ratio
Profitability is low as compared to sales on account of the intense competition in the industry and as performance Management practices are not very robust, productivity is an area of improvement
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Conclusion & Recommendations
Organized large players from the telecom sector distinctly follow high performance practices leading to
sustainability and consistent growth, which needs to be imbibed by the other two companies from the
NGO and Media Sectors
Career development programs, Role ambiguity and Lack of Training with the smaller players are
extremely critical focus areas for improvement as it has a direct impact on long term sustainability and
growth of the organization. Moreover, it also has a strong linkage to productivity of employees which
eventually helps in building a high performance culture
The Indian MNC from the Media sector is in the process of building robust controls and strong
performance management practices which is a business imperative especially for companies in an
intensely competitive market
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Thank You
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Appendix
Respondent Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14
R8 3 2 3 3 2 2 1 1 3 2 4 3 3 4
R1 3 3 3 2 2 3 2 3 2 2 4 3 2 2
R2 4 3 3 4 1.5 NA 1 1 4 NA 2 3
R4 3 2 3 3 2 2 2 2 2 2 2 2 3 4
R6 4 3 4 4 3 4 3 3 4 2 4 3 3 4
R7 3 2 3 3 2 2 2 2 3 2 1 1 1 4
R10 3 3 3 2 2 3 2 3 2 2 4 3 2 2
R11 3 2 4 4 2 - 1 1 3 2 2 3 2 4
R12 5 4 3 3 3 4 2 4 4 1 1 1 4 4
R13 4 4 4 4 3 3 4 4 1 1 1 4 3 4
R3 4 4 4 4 2 2 2 2 4 4 4 2 2 3
R5 3.5 3.5 4 3.5 2 2 2 2 2 1 1 3 4 4
R9 5 3 3 4 2 2 2 2 3 3 1 3 3 4
R14 3 4 3 4 3 2 3 3 2 3 2 2 2 3
R15 5 5 5 5 3 3 2 3 2 1 1 3 3 5
R1 4 4 5 5 3 2 2 2 2 3 4 3 2 3
R2 4 5 4 5 2 2 2 2 2 3 4 3 2 2
R3 4 3 4 5 3 3 2 3 3 2 3 4 2 3
R4 4 2 4 4 2 2 3 3 2 2 4 3 3 3
Selective staffing Extensive training Internal mobility Employment security