xpress hr - september 2012
DESCRIPTION
the September edition of "Xpress HR" - the monthly HR Newsletter published by Sapphire XLRI. In this edition of "Xpress HR", we have research article on "The Breakdown of industrial relations" by Raspal Singh and Sidharth Panigrahi from Tapmi, Manipal and an interesting insight on Transformational Leadership by Bhavika Sareen from XLRI. You would "News and Blurbs" and "Humour Corner" as interesting and fun. The correct entries of the HR Crossword from last edition find a mention in our newsletter. It also features an article on ‘Will the Four Day Workweek Ever Work in India?’ which was floated as a competition. The winning article is by Shubham Kochar - many congratulations to him! The competition received great response , we thank everyone for their enthusiastic participation!! The editors for the newsletter are Krishna Chaitanya, TCA Lakshminarasimhan and Manisha Dalan. Hope you enjoy reading this edition of "Xpress HR"!! We look forward to hearing from you!TRANSCRIPT
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
TRANSFORMATIONAL LEADERSHIP AND BEYOND 1
HR CROSSWORD 3
THE BREAKDOWN OF I NDUSTRIAL RELATIONS 5
NEWS AND BLURBS 8
HUMOUR CORNER 8
XPRESS HR—WINNING ARTICLE : WILL THE FOUR DAY WORK-
WEEK EVER WORK IN INDIA?
9
Inside this issue:
September Edition SAPPHIRE’s Newsletter on Human Resources 16/09/2012
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
Xpress HR
The third edition of Xpress HR brings some
thoughts on Flexible Work Timing and
Transformational Leadership. Also, an ex-
cellent write-up on the last issue’s main
theme, as a follow up!
Also, the winners of last month’s HR
CROSSWORD as well as a new one for this
month!
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
To lead people, walk behind them
-Lao Tzu
In times of increasing uncertainty, work groups
want to be inspired and empowered to ever higher
levels of morale and motivation. This calls for a
process of change and transformation that delves
into the emotions, values, and long-term goals of
individuals; it seeks to redesign perceptions and val-
ues, while in its path transforming expectations and
aspirations. The underlying aim is to induce owner-
ship at each level while inspiring all parties to be
leaders in the organisation.
This exceptional form of influence that moves em-
ployees toward ever higher levels of achievement
resonates closely with the concept of transforma-
tional leadership introduced by Burns. However,
Burns (and later Bass who extended the work of
Burns) always spoke of transformational leadership
as one in which the leader transforms and moti-
vates followers through his/her idealized influence
(or charisma), intellectual simulation and individual
consideration. The aim of the leaders is to encour-
age followers to come up with novel ways to chal-
lenge the status quo and to alter the environment
in order to be successful. Yet, the focus of the the-
ory always seems to revolve around the role of a
certain “leader” who inspires “followership” in an
attempt to “empower” the individual. However, in-
stead of being shackled by the traditional categories
of a leader and a follower, it is important that we
redefine the boundaries within which the two play-
ers operate. It is also imperative that we look be-
yond the role of a leader as the only one inducing
the ownership spirit in the organization.
The focus of the theory of Transformational Leader-
ship is almost exclusively on the charismatic and
affective elements in the leader (i.e., his personality
characteristics and behaviors). Yet, there are a mul-
titude of ways in which the organization can breed a
sense of ownership and leadership on a macro
scale. We will look at some of these ways in the pre-
sent article. Thereafter we will also consider some
of the basic ideas of Burns theory and see how they
can lay the bed for a culture of inspired ownership
in the organization.
Transformational Leadership and Beyond
Inspiring Employees to Claim Ownership | Bhavika Sareen | HRM 2011-2013
“The aim of the leaders is to
encourage followers to come
up with novel ways to
challenge the status quo and
to alter the environment in
order to be successful”
Page 1
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
At this juncture I want to emphasize that by no
means do I attempt to undermine the validity of the
concepts elucidated in Burns theory. His theory has
drawn considerable empirical research and has
been the scope of much praise as well as certain
criticism. However, the aim is to look beyond the
set boundaries of the theory and explore other
mechanisms that inspire employees to claim owner-
ship.
We must understand that ownership is not some-
thing that organizations can demand – employees
choose whether to own their work, and in so doing
progress toward greater assumed leadership. The
methods that promote these practices cannot be
described as occasional or periodic, but they occur
at every moment in the workplace. These methods
are embedded in the culture of the organization; in
the manner the workplace operates.
The first step in any initiative that aims to promote
such a culture is to make sure that the employees
understand the bigger picture in what the organiza-
tion is trying to achieve. It is also important to give
due regard to the incentives that employees receive
that drive them to go beyond their work. Although
such incentives are not directly related to the own-
ership of employees, but they do play an important
role in according the right recognition to them.
From that point of view, incentives work to push
employees for more and improved results.
It is also imperative for businesses to let employees
know the reasons behind the company’s decisions.
Further, companies must be willing to collaborate
with employees on all corporate goals/decisions.
The resultant effect of all these actions would be a
greater buy in from every part of the organization.
This will drive an inherent feeling of ownership in
the employees and lead the company toward
greater success.
These initiatives can be very helpful in creating the
desired culture in the organization. However, like all
new cultural initiatives, they require a fundamental
change in the behavior of the organization for an
extended period of time. Toward this end, we can
emphasize the importance of the existing leadership
of the organization and many of the tenants of the
theory of transformational leadership proposed by
Burns can lay the foundation for driving the best
practices described above.
A transformational leader can use his inspirational
motivation to share the company’s vision with the
employees and to make sure that their behaviour is
aligned towards that vision. By using intellectual
motivation, transformational leaders can drive em-
ployees to go beyond the company norms. This
freedom can push employees to be creative in their
ideas. Finally through the demonstration of indi-
vidualized consideration, transformational leaders
show that they care for their employee’s wellbeing.
All these practices go a long way in convincing em-
ployees to work hard, thereby increasing their own-
ership and commitment toward the company.
Thus, by understanding and adapting to the needs
and motivations of employees, a transformational
leader is able to create a workforce of “owner
minded” employees. Such employees are then free
to further explore their capabilities. They habitually
step outside their role and move toward becoming
leaders in their own right; innovating and improving
processes; and assuming ownership to take the or-
ganization forward. Such companies adapt faster to
change and are able to develop innovative ideas
that exploit new product and market opportunities.
“Employees choose whether to
own their work, and in so doing
progress toward greater assumed
leadership.”
Page 2
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
HR Crossword Send in your entries to [email protected] for a chance to collaborate with SAPPHIRE!
Across
1. A manager who assists and
advises line mangers
4. Specific guidelines that regu-
late and restrict the behavior of
individuals
7. Condition in which the physi-
cal well-being of people is pro-
tected
9. A security benefit voluntarily
offered by employers to em-
ployees who lose their jobs
12. A one-time payment that
does not become part of the
employee’s base pay
14. Fitting a person to the right
job
15. The process through which a
job applicant receives an accu-
rate picture of a job [acronym]
16. Effort directed toward pro-
ducing or accomplishing results
17. An indirect reward given to
an employee or group of em-
ployees as a part of organiza-
tional membership
21. Extent to which a test actu-
ally measures what it says it
measures
22. A process whereby people
acquire capabilities to aid in the
Page 3
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
achievement of organizational goals
24. Indication of employee dissatisfaction
25. Customary methods of handling activities
26. Performance appraisal tool that uses a list of
statements or words that are checked by raters
Down
2. Process in which employees leave the organiza-
tion and have to be replaced
3. Compensation computed as a percentage of sales
in units or rupees
5. A dynamic condition in which an individual is con-
fronted with an opportunity, constraint, or demand
related to what he or she desires and for which the
outcome is perceived to be both uncertain and im-
portant
6. Behaviors that job incumbents are expected to
display
7. Something that causes stress in an individual
8. A development activity in which a manager takes
an active role in guiding another manager
10. Process that uses a neutral third party to make a
decision
11. An unauthorized and illegal strike that occurs
during the terms of an existing contract
13. Time spent in the organization or on a particular
job
18. Payments directly calculated on the amount of
time worked
19. The total depletion of physical and mental re-
sources caused by excessive striving to reach an un-
realistic work-related goal
20. The series of work-related positions a person
occupies throughout life
23. Significant dysfunction tension resulting in no
effort being made
Winning Entries for last month’s Crossword!
1. Prateek Seth, XLRI - HRM
2. Praneeth P , XLRI - HRM
3. Pranav Pandey, XLRI - HRM
4. Rachita Chandra, XLRI - HRM
Congratulations! Look out for an email from
[email protected] coming your way soon!
Last Month’s Solved Crossword!
Page 4
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
A labor dispute at the famous Manesar plant of Ma-
ruti Suzuki claimed life of HR Manager Awanish
Kumar Dev. The incident may not be new in the fra-
ternity of manufacturing industry, but has once
again underlined the possible disparities in industry.
It must be evident now that India industry is consis-
tently battered by ongoing labor problems. On fur-
ther introspection, we see a possible gap widening
between workforce and management. Gone are the
days, when the likes of Russi Modi, the ex-CEO of
Tata Sons, focused on Human Capital instead of Fi-
nancial Capital. Modi focused on developing rela-
tionship with employee and identified human capi-
tal. Unfortunately, many management writers were
critical of his approach.
Companies today have lost patience to invest in hu-
man capital. Why? Because, investing in human
capital is a zero profit game. The input to this black
box is loads of efforts, discussions and constant in-
teraction with employees. The output is intangible,
immeasurable and uncertain degree of soft skills,
work approach and motivational kick. Investment in
human capital, unfortunately receives less attention
today, owing to the fact that the results cannot be
directly attributed to the initiative (for instance, a
financial improvement cannot be directly mapped
to improvement in employee communication, feed-
back, etc). On the other hand, corporate projects
for all other departments (information systems, op-
erations, marketing and finance) had clear and tan-
gible return (commonly referred as ROI or Return
on Investment). Thus, HR managers often find it dif-
ficult to convince the board to invest in human
capital management.
Maruti Suzuki is not single organization to be im-
pacted by the worker revolt syndrome. Joining it are
notable companies such as Coal India Limited, Dha-
nalaxmi Bank, Dunlop and others. While Coal India
Limited strike plagued by worker demands of bonus
hike and pay revision, Dunlop witnessed a clash due
to pending payment to workers. Dhanalaxmi Bank
witnessed a similar taste of bitterness when em-
ployees objected to the company policy of stalling
transfers across north India. The nature of strike
also varied across the companies. On one hand
where union was integrated in the case of Coal In-
dia Limited, a series of disintegration, internal fights
and blame-shifting was observed in Dunlop union.
Ironically the issue at Dhanalaxmi Bank underlines a
greater need of industrial relation in service sector.
These incidents raise question whether investment
in human capital is given due diligence, or is the
management self-constrained by focus on financial
capital, profit and shareholders. Is the role of HR is
confined to strategic management and improving
managerial competence? It is no secret that we
have paid the price for sacrificing Industrial Rela-
tions.
The Breakdown of Industrial Relations
Raspal Singh & Sidharth Panigrahi | TA Pai Management Institute, Manipal
“Companies today have lost
patience to invest in human
capital. Why? Because,
investing in human capital is
a zero profit game.”
Page 5
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
Expert and commentators attribute this paradigm
shift to evolving industrial focus from manufactur-
ing to service industry. The paradigm shift also un-
derlines the belief that the leadership team today is
focused on preserving shareholders values, rather
than focusing on internal hygiene. Manufacturing
industry, unlike service industry, is labor intensive.
Therefore we cannot expect manufacturing indus-
try to have the same approach/though process as
that of service industry. So, when we say “TCS has
outdone ONGC to claim 2nd position in the capital
share”, we are actually comparing apple with or-
anges. In fact, it is not only the industry, but we as
society who are also plagued by the stereotype of
comparing disparate entities and hence putting
pressure on management to ‘create’ shareholder
value(i.e. profit).
The scenario of dent in industrial relations is not
only common in India, but also other nations-Japan,
China and Indonesia, where the shop floor assign-
ments are on decline.
Analyzing the issue using the Dunlop’s model, we
see that there was a clear link of strained relation-
ships between the three actors(i.e. management
organization, workers and government).
Figure 1: The link between the three actors was
strained in the Maruti Suzuki saga
Employer
From employer perspective, two changes have
taken place:
Shinzo Nakanishi assumed the position of MD
from Jagdish Khattar. Erstwhile director RC
Bhargava was made the chairman. However
media reports suggest that despite having
Indians leaders at the top, the company is
dictated by the Japanese voice in the crucial
decisions.
Intensifying competition, rise in cost of raw ma-
terials coupled with not so encouraging
sales have resulted in increased challenges
for Maruti Suzuki. Apparently one way to
respond to this challenge was to sell more
volumes. This has led to pressure on work-
ers to improve their productivity.
Labor Union
“Improve the productivity” says company. But
where is incentive to motivate workers? The lack of
incentive, combined with the surging prices of land
and cost of living is speculated to be the reason be-
hind workers dissatisfaction. However the reason is
yet to be confirmed, as the investigation is carried
out currently. The labor union has pointed fingers
to government and company management for the
debacle.
It is no secret that bargaining power of labor union
is diminishing over the years. Add to it the intense
competition from peer states to grab the project
and milk out development. Things are turning
tougher for workers as they are unable have co-
operation on a domestic scale and thus a refusal at
one site turns to be an opportunity at other site.
Page 6
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
Figure 2: The availability of industrial options di-
minishes the bargaining power of labor unions
Government
The Government has been playing a dicey role in
the incident. While on one hand it condemned the
incident, launching an investigation to look into
the matters. On other end, it asked the company
to cough up Rs 235 crore as compensation to
HSIIDC. Clearly it is a sign that all the three links
between the actors is shattered.
The news on Industrial Relations is gloomy. The
spark of disputes are turning into flame, in form of
strikes, lockouts and disputes; consequently en-
gulfing many corporations across the globe. It is
time that we identify the sparks before the turn
into a forest fire, potentially sweeping out the
whole industrial habitat. Add to it the low interest
within B-schools to cater to industrial relations,
the scenario is turning tougher.
Will this buck of stop anywhere? Would we ever
see a increased bargaining power of union, sense
of understanding between the three stakeholders
and collaborations with each other? A study by
Hewitt shows that stocks of best employers out-
perform the comparable indices and industry per-
formance metrics by over fifteen percent. Hope
the study inspires board rooms to engage in indus-
trial relations, rather than leaving it up late to the
HR.
References:
Shyamal Majumdar: Souring industrial relations.
(2011).Retrieved October 14, 2011, from http://
www.business-standard.com/india/news/shyamal-
majumdar-souring-industrial-relations/452435/
Ghoshal, Devjyot.(2012). Few takers for industrial rela-
tions at B-schools. Retrieved from http://
www.business-standard.com/india/news/few-
takers-for-industrial-relations-at-b-schools/481173/
Ghoshal, Devjyot.(2012). Boardroom-shop floor discon-
nect behind poor industrial relations? Retrieved
from http://www.business-standard.com/india/
news/boardroom-shop-floor-disconnect-behind-
poor-industrial-relations/481186/
Where are the HR CEOs? (2011). Retrieved August 3,
2012, from http://www.business-standard.com/
india/news/where-arehr-ceos/482186/
Power situation may worsen as Coal India Ltd workers
threaten strike. (2011).‘Dunlop has declared a lock-
out’. Retrieved from http://www.thehindu.com/
news/national/article2523592.ece
DHANALAKSHMI BANK EMPLOYERS TO STRIKE. (2012).
Retrieved July 8, 2012, from http://cityjournal.in/
dhanalakshmi-bank-employers-to-strike/
Doval, Pankaj. Maruti union general secretary raises
concerns over management, govt role. Retrieved
August 2, 2012 from http://
timesofindia.indiatimes.com/business/india-
business/Maruti-union-general-secretary-raises-
concerns-over-management-govt-role/
articleshow/15321771.cms
Nigam, Aditya.What set off the violence at Maruti’s
Manesar plant?: Anumeha Yadav. Retrieved July 21,
2012 from http://kafila.org/2012/07/21/what-set-
off-the-violence-at-marutis-manesar-plant-
anumeha-yadav/
Goyal, Malini. Four reasons behind Maruti Suzuki's
Manesar problems. Retrieved July 22, 2012 from
http://articles.economictimes.indiatimes.com/2012
-07-22/news/32777541_1_maruti-suzuki-s-manesar
-maruti-s-manesar-shinzo-nakanishi
Haryana asks Maruti to pay Rs. 235 cr for farmer com-
pensation. Retrieved July 24, 2012 from http://
www.livemint.com/2012/07/24182722/Haryana-
asks-Maruti-to-pay-Rs.html
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STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
"COMPETITIVE SALARY:" We remain competitive
by paying less than our competitors.
"MUST BE DEADLINE ORIENTED:" You'll be six
months behind schedule on your first day.
"DUTIES WILL VARY:" Anyone in the office can
boss you around.
"WHERE EMPLOYEES FEEL VALUED:" Those who
missed the last round of layoffs, that is.
"ABILITY TO HANDLE A HEAVY WORKLOAD:" You
whine, you're fired.
"GOOD COMMUNICATION SKILLS:" Management
communicates, you listen, figure out what they
want and do.
HumouR Corner
News and Blurbs Happenings and other things in the Human Resources World. Links follow!
“How HR managers are helping make workplaces better” http://tinyurl.com/XpressHR-Sep-1
A short and sweet article by Shiphony P. Suri of Careers360 on the increasing role of HR in busi-
nesses:-
“Initially, it was restricted to administrative tasks, personal functions and industrial relations, which comprised paying
employees, welfare amenities and keeping track of sick, personal days. But post liberalisation, hiring and retaining high
performing employees prompted companies to adopt sound HR practices. “
————
“Industry wants perfect graduates” http://tinyurl.com/XpressHR-Sep-2
An excellent overview of a management conclave held at TAPMI, written for The Hindu:-
“Requirements from professionals had increased. It wanted perfect people having knowledge of all fields. Engineers had
to come up with business idea, while HR professionals had to have the knowledge of engineering. The things learnt in
colleges were not of much help. ‘Students have to be perfectly trained. But how to do it is the question.’”
————
“Maruti's new HR policy” http://tinyurl.com/XpressHR-Sep-3
And what precisely is this new policy? “Managers authorised to recruit 'trustworthy workers”:-
“The decision on the new strategy for selecting lower staff was taken after the resignations of a few managers from their
job after the July 18 violence. The resignations are not something the top management wanted. Hence, they have pro-
vided power to the management to choose workers of their choice”
{By Manisha Dalan,
HRM 2012-2014!}
Page 8
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
Will the Four Day Workweek Ever Work in India?
Winning Entry for the SAPPHIRE Article Writing Competition | Shubham Kochar | HRM 2012-2014
It all began in Utah, where a four day workweek
was made mandatory for state employees. It was a
part of an experiment which targeted reduced elec-
tricity consumption. And boy was it a hit! Millions of
dollars were saved and the employees loved it ow-
ing to the work-life balance it provided. But will a
similar strategy work in India, where only a handful
of IT companies care about saving energy, and will
they risk the productivity for it?
We Indians spend our Mondays gossiping about
what others did over the weekend and Fridays are
spent planning for the weekend. Comfort zone is a
wonderful thing, and we tend not to foray away
from it. At least our bosses think so! Three-day
weekend might lead us into a holidaying mood
which will continue even during working days. For
us, a four day workweek has to be a strict NO! And
there are plenty of reasons for the same.
Working ten hours instead of eight, may not neces-
sarily mean that our productivity will remain the
same, in fact, the chance of it declining is pretty
high as there is limit to which we can stretch our-
selves. What sounds like a good proposition for em-
ployees may not work out well for organization’s
balance sheet. Hence, the chance of our bosses ac-
cepting any such plan is feeble.
Indians who are already burdened with work over
the weekends will find the concept rather amusing.
Contrary to India, the corporations in the West are
much more sensitive to an employee’s need for a
break. We are in a system where more work hours
is equivalent to better performance, whether an
employee spends that time on work or other activi-
ties hardly matters. This attitude has been passed
from generations and chances of it staying are very
high.
Another factor that may cause the four-day work-
week to fail is the competitiveness among employ-
ees. With the bell curves hurting bellies, an em-
ployee intends to do whatever it takes to show that
he/she is more competent or productive than oth-
ers, so even if one is provided with an extra off day,
he/she would try to take up extra work from superi-
ors to show enhanced dedication towards work.
Sooner or later, others will follow suit. Incase such a
system is flexible and gives an employee the option
to choose the third off-day, who would want to
miss out on important discussions and information?
In India, where average salaries are towards the
lower side when compared to expenditure, if a per-
son is provided with a three day weekend, week
“What sounds like a good
p r o p o s i t i o n f o r
employees may not work
out well for organization’s
balance sheet.”
Page 8
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
after week, he/she is likely to take up some part
time work in order to have a better life, at least, fi-
nancially. So, what could have been a two day stay
at home with family members will then mean even
lesser time for the family.
What is a rage in the West may not have a desired
effect on Indians. It is related to the kind of life-
styles we live in. Western world has a good alterna-
tive for not working for an extra day as for most of
the time the family is involved in finishing tasks re-
lated to home. They do it ‘together’ in the weekend
because most of the family members tend to work
in the weekdays.
Will the Four Day Workweek Ever Work in India?
Winning Entry for the SAPPHIRE Article Writing Competition | Shubham Kochar | HRM 2012-2014
STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,
HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI
CONTACT US
EDITORS
T C A Lakshminarasimhan
Manisha Dalan
Krishna Chaitanya
VISIT US AT:
www. facebook.com/sapphirexlri
http://xlrisapphire.wordpress.com/
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