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CROSSROADS

Monkey Matters

The author overheard the conversation at the sheriff’s office during the crucial hours when the monkey thief was lost and found

Sheriff: “Could have the monkeys he stole freed the monkey thief?”

Aide: “But the monkeys are all caged ready to go back to zoo as far as I know Sir”.

Sheriff: “Are you sure they are going to put up there?”

Aide: “You mean….”

Sheriff: “Think about it …that zoo is worse than our jails...”

Aide: “You bet”

Sheriff: “Yeah…I even heard the meat meant for the tigers and lions are used to make curry for the keeper”

Aide: “No wonder the poor things have become so thin…But sir…how do we get back to the trail of the monkey thief?”

Sheriff: “Elementary, Son.”

Aide: “Oh?”

Sheriff: “See…that monkey thief and the monkeys must be having something in common. Or else why would those monkeys give in to him?”

Aide: “Oh…Like?”

Sheriff: “See monkeys never forget their roots….Me sure this monkey thief will be go back to the place where we nabbed him.”

(At this moment, news breaks in that the monkey thief has been re-caught)

Aide: “Sir…you were so very right…..”

Sheriff (blushing): “Count on experience son….we also count”

Aide: “Sir, people are asking why the thief was in an AC coach”

Sheriff: “What is the problem with these people…you treat someone well there is a problem…you treat him bad…they say its 3rd degree …”

Aide: “Right Sir!”

Sheriff: “Think about it…this poor man has been traveling in crowded trains all his animal life….sometimes standing all night with monkeys breathing hard behind him. All we wanted to do was to give the poor chap a little joy ride”

Aide: “I know Sir…this place is so mean…they doubt every good intention.”

Sheriff: “No problem dear…we must stand up and count…err… I mean get counted.”

Offline - Greater Impacts (September 2009)

CROSSROADS

RAJIB KUMAR

Will the service business in India lose out to the service experience?

Despite the phenomenal growth of the service industry in India over the last some years, the basic awareness of service management among the people resource of sector affiliates is dismal.

Each of us has had our share of murky experiences with our service providers: be it cellular services, restaurants, banking services or tour operators and on a full range of issues: problem assessment, abnormal lead times for execution of requests, and erroneous billing to name a few.

Service Providers in India operate bereft of the basic commandant that services should not just aim to meet customer expectations but must also exceed the same. Alas, service providers in India -even those with “high brand equity” barely end up with service levels of 70% on a consistent basis.

World over, the intangibility and other service characteristics like direct organizational-customer relationship and high perishability of service products make achieving a consistent and competitive service difficult.

Further, services being a people centric model, cultural issues in the country stifle efforts to realize our full potential in the industry. On the contrary, the across-the- board systems approach in the West facilitates the process of making service measurability easier to implement and therefore offers service providers a framework akin (if not exactly) to quality control tests of a manufacturing unit.

While Service Quality and its assessment continue to be an elusive construct in view of variables like customer perception and expectation in the judgement (along with both an objective and subjective component involved) services can still be measured by the levels of interaction, customisation and labour intensity.

Indian service providers need to do considerable work of educating its people resource and equipping them with relevant skills in this regard. Academic Curriculum has in recent times responded to this dynamic but the gap is as phenomenal as the growth of the sector. Before consumers reinforce their paranoid about anything connected to “service” to an irreversible paradigm, its time industry decides to stand up and get counted.

The service business in India might just lose out to the service experience otherwise

Of Color

CHITRA JHA

Ever wondered how different colors evoke different reactions from you? Colors influence our mood and emotions. Is it any wonder they are used to shift the energy in life? The following color tips and remedies to help you turn your life around!
What are you waiting for? Go ahead - play with colors.

Red
This color is not used for nothing as a warning! Red is known for attention grabbing and is known to increase brain activity. This color is great for spaces that need an activity enhancement. Add this color to create drama (ever notice how theatres use red curtains and carpets?) and a party atmosphere. Also associated with passion, adding a little red to your bedroom will SURELY spice up your love life. Here is another tip: add red to a room that is not so inviting or comfortable and see the difference it makes. Also, if you are depressed or frequently tired, add a dash of red décor to your bedroom; this stimulating color will add energy and boost positive vibes. Only, be moderate and don’t overdo it. Too much red leads to overwhelming emotions, aggression and restlessness. Avoid using this color if there are emotionally hyper people around.

A Red Dislike: Know someone who has an aversion to red? Notice carefully: this person may be over-active, too impulsive, hot-tempered, aggressive and egocentric, or have difficulties with people with such characteristics. It can also symbolize deeply hidden fears and rejection of a person’s own assertiveness.

Purple
Purple is an intensely purifying color, also known as the psychic color linked with activities such as meditation and healing. It's often the preferred color of mediums and those who are in touch with their spiritual side. It's, therefore, a great color for a spa or retreat. Did you know it aids in reducing blood pressure? And, that’s not all! Here’s a very simple tip for you if you are an outgoing sort of a person and need to channelise your energy inwards: add purple to your bedroom as it has a very calming and restorative effect and encourages introspection which is key at night time when your energy needs to be focused inwards. Use purple or violet shades if you feel emotionally drained and desire a more stable work-life balance.

A Purple Dislike: A person who has a dislike for purple may have a very serious attitude towards life; and may find it difficult to give dreams, fantasies, vague fears or memories a place in it. He/she might also have a tendency to rejecting everything they regard unrealistic.

Yellow
Yellow stimulates mental ability and concentration, and aids detachment. Here is an easy tip: if you feel cluttered in your mind, use yellow- wear yellow clothes, add yellow to your bedroom. Yellow is a great color that has the power to lift spirits, raise energy levels and dispel negativity. So, if you have been feeling nervous or sad, include yellow around you. You can use yellow in kitchens, hallways, living rooms, play rooms and offices but again avoid bedrooms as it may prove too energetic and intense.

Yellow is particularly good for focusing the mind and encouraging intellectual progress and performance. Did you know this color helps cure depression? How? It awakens an enthusiasm for life. It awakens greater confidence and optimism. Color therapists use yellow when working with illnesses such as jaundice, arthritis, immobility, depression and skin problems.

A Yellow Dislike: A person who has a dislike to yellow may be emotionally disappointed and bitter. This person might also have a tendency to rationalize feelings, or to avoid the depth of life by often changing relationships, many superficial relationships and/or constantly changing activities.

Orange
Orange is a high energy color that promotes happiness. Orange is a stimulating color and is often associated with enthusiasm, sociability and optimism. This makes it the ideal color for a dining room or any space where you receive visitors or entertain. Orange is a welcoming color for hallways which can often be dark or north-facing rooms that need warming up. Orange has traditionally been used by color therapists to reduce tiredness, depression and pain and help with disorders such as gout, constipation and alcoholism. Here is a tip if you feel you need to unblock your emotions and create a sense of joy in your life: add orange to your bedroom décor or wear orange teemed with blue.

However, here’s a caution tip: avoid too much orange in the bedroom as it can over stimulate but don't be frightened to use orange in other areas. Avoid overly bright orange. Also, it should be used along with tones of blue-green.
An Orange Dislike: A person who dislikes orange may have suppressed sexual feelings or other difficulties with sensual enjoyment of life. Alternately, their attitude can also be over-sensual, indulgent, or too materialistic.

Pink
Pink is the color of nurturing and love. It conveys compassion and love. Did you know wearing pink makes you more approachable? It's great for creating a sense of calmness and has sedative qualities if you have hyperactive children or are facing sleeping difficulties. Here’s a tip if you have a tendency to feeling neglected or angry: add pink to your bedroom décor or start wearing pink. Did you know this color can ease the stresses of the immune system? It also alleviates loneliness, despondency, oversensitivity, and vulnerability.
Pink is great if you are recovering from a divorce or need to move beyond relationship troubles.

A Pink Dislike: Know someone who dislikes pink? Notice that this person who has an aversion to pink may have a challenge with expressing their soft, tender, and more intuitive side.

Green
Green is a calming, reassuring color and promotes feelings of safety. Is it any wonder why it is used as the color of the international safety code?
It balances our energies, and it can be used to increase our sensitivity and compassion. The balancing, nourishing and restful qualities in greens make it perfect as a natural color choice for bedrooms, living rooms and places of retreat. It's also a great color to use if you are experiencing people who seem out of balance on an emotional level.
Color therapists generally use green to reduce stress, ease headaches, migraines and gastric ulcers or balance mood swings.
Although a restful color, green also represents growth (be it financial or personal). If you choose a bright green it can bring abundance to you and urge you to take positive action. Green is the color favored for decorating the South East corner.

A Green Dislike: A person who dislikes green may be more interested in independence and self-development than in a warm family-life. This person may prefer to keep a certain distance in (sexual) relationships.

Blue
Blue is the ultimate soother. This color is the final name in giving serene, tranquil vibes. Blue can, and does, reduce stress and tension and is useful to calm negative emotions when tempers are running high.
Blue is also associated with effective communication and clear thought and is great for focusing the mind and intellect. Is it any wonder most corporates prefer blue clothing? However, too much blue can be cold and depressing so avoid it
if you are prone to moodiness and low mood swings.
Color therapists tend to use blue to fight against hernias, back problems and muscular defects. It is also said to lower your blood pressure and heart rate.

A Blue Dislike: Know anyone who hates blue? Observe carefully and you’ll see that this person may be severely regimented, a strong career person, with an aversion of restrictions. He/she may have charted out a clear direction for their life and would never want to deviate from it.


Chitra Jha is a Life Skills Coach and Past Life Regression Therapist. She can be reached at chitrajhaa@gmail.com The views expressed in this article are the author’s own and do not necessarily purport to constitute an official position of Offline or Material World

IN LIGHTER VEIN

"A young guy was returning home on his two seater car after a late night party. There was hardly any public transport visible on the road. He then noticed an old, frail lady standing at the bus stop. She barely managed to stand and needed immediate medical attention. The young guy then realized that she was not alone. There was a beautiful young lady as well as a young man at the stop. Infact, he recognized the young man - he was an old friend who delivered an act of kindness more than once.

Our guy was in a dilemma…who would he help? The old lady or was it time to pay back the kindness of his friend.

After a seconds' thought the young guy walked out of his car and handed over the keys to his friend and asked him to take the old lady to the hospital. He then held the hand of the young girl and started a long walk home. "

This is thinking differently and thinking for the future:

(Source: Mr. Firdose Vandrevala, CMD, Hiranandani group -Heard at the Indian Chamber of Commerce AGM Meet on 27/6)

Micro Finance Institution and Poverty Alleviation – A case study

DR. MUKUL MITRA

The author explores the plausibility of micro finance as an effective tool for poverty alleviation

“We can in a process create a society, create a community totally free from poverty. Nobody should suffer from poverty because he does not have to. It is not part of human condition, human civilization. It is simply imposed on us. It is artificial thing imposed on us and we can throw it out.” – Mohammad Yunus

Abstract
India has been shining with an average 8.8 % growth in GDP in last four years. At the same time in the other India, 200 million people are living below poverty line. The approach paper to the Eleventh Plan indicated that the absolute number of poor is estimated to be approximately 300 million in 2004-05. Despite phenomenal growth in Banking system, 58% of household does not have any bank account. To supplement Government’s intervention, a large number of NGOs, Self Help Groups (SHG), Civil Society Organizations (CSO) and micro finance institutions (MFI) are making relentless effort to bring these teeming millions in the fold of inclusive growth. Bandhan is one such organization whose success in a short span of six years is noteworthy. This case study aims to understand functioning of this micro finance institution.

Introduction

Microfinance can change the lives of the poor. There may not be a quantum jump in the income but it is possible still to ensure a reasonable rise in the income of the poor

(Rangarajan, 2005). Asian development Bank- ADB (2000) has defined microfinance as the provision of a broad range of financial services such as deposits, loans, payment services, money transfers, and insurance to poor and low-income households and, their micro-enterprises. Microfinance services are provided by three types of sources:
i) Formal institutions, such as rural banks and cooperatives;
ii) Semiformal institutions, such as non-government organizations; and
iii) Informal sources such as money lenders and shopkeepers.
Institutional microfinance is defined to include microfinance services provided by both formal and semiformal institutions. Microfinance institutions are defined as institutions whose major business is the provision of microfinance services. In India, RBI (2007) has defined micro credit (or finance) as the provision of thrift, credit and other financial services and products of very small amount to the poor in rural, semi-urban and urban areas for enabling them to raise their income levels and improve their living standards. Micro Credit Institutions are those, which provide these facilities.
M-CRIL’s data on the performance of Indian MFIs show that these have been expanding at about 30–50% per year in terms of clients and 50–60% per year in terms of portfolio. As a result, India now has a microfinance outreach that is as high as that in Bangladesh - perhaps over 18 million in July 2007. Contrary to the usual experience of microfinance sectors in other countries, however, this growth has been fuelled neither by large inflows of grants nor by a particularly high level of interest charged to clients. Indian microfinance institutions have seen dramatic improvements in efficiency which has resulted in decline in effective interest rates being paid by microfinance borrowers and it is among the lowest in the world. (Sinha, 2007). Despite these efforts, the annual supply-demand gap of credit is still in the range of Rs.2,234 – Rs.4,629 billions. Further, the World Bank estimates that the Indian microfinance activity currently reaches only 4% of the poor (CMF,2006).
According to All-India Debt and Investment Survey (AIDIS), 2002 of the National Sample Survey Organization (NSSO), share of non-institutional sources of credit for the cultivator households had declined from 92.7 per cent in 1951 to 30.6 per cent in 1991. However, it had increased to 38.9 per cent in 2002, mostly due to increase in moneylenders’ share. In this situation, all the agencies including Government, banks and microfinance institutions are expected to play greater role in eradication of poverty. Bandhan is one of the large microfinance institutions in the country and in the case study, their functioning has been examined.
Background Note
Bandhan was established by Mr Chandra Shekhar Ghosh in 2001 as an NGO. In the words of Mr. Ghosh, “Over the years, we have realized that microfinance is not the last word for the development of the poor. Therefore, we took an innovative initiative to design a program for the poorest of the poor with an objective of graduating them to the mainstream microfinance program. A health-education program was also introduced and is being run in a sustainable manner. We plan to address the other pressing issues of the society as well viz. child education and the like”. Bandhan Financial Services Pvt. Ltd. (BFSPL) was set up in 2006 as an NBFC with employees are the major stakeholders. Presently Bandhan is operating under two entities – as a Society and as an NBFC with its Head Office at Salt Lake, Kolkata. The NBFC unit is concentrating more on financial services and the parent Bandhan society continues with micro finance and development activities.
Bandhan’s mission
Reduce economic and social poverty significantly through providing client focused, quality, and cost effective, sustainable financial services.
Vision
A world class financial institution serving two million clients by March 2010.
Values
Bandhan deeply believes in its values and they are manifested through the day-to-day behavior of its team members. These values “CREATE” strong principles where:-
C- Cost effective and sustainable
R- Respect for all
E- Exemplary governance
A- Accountability, professionalism and discipline
T-Transparency and integrity
E- Effective team work and commitment
Growth of Bandhan in a short span is significant. Forbes (2008) magazine’s first-ever listing of the World’s Top 50 Microfinance Institutions out of 641 microfinance institutions operating globally; it has occupied the second position just after ASA of Bangladesh and 15 positions above “Grameen Bank”. It has received the prestigious “Skotch Challenger Award” in 1998 for contribution to financial inclusion. The Government of Afghanistan and the World Bank have approached them to facilitate development of micro credit at the strife torn country (The Hindu, 2008). Like many other MFIs, Bandhan focuses on poverty alleviation through increasing family income through women which in turn gradually increases the status of the woman in the family as well as in the society and ultimately leads to women empowerment.

Table 1: Bandhan – performance highlights as on April 2009
Area of operation 11 States
No. of districts covered 51
No. of branches 720
No. of staff 4277
No. of groups 65046
No. of members 1628551
No. of borrowers 1498808
Cumulative loan disbursed (in crores) 2359.47
Loan outstanding (in crores) 734.82
On time repayment rate 99.96%
[Source : www.bandhanmf.com]
Micro Finance Products
Bandhan provides micro loans to the poor women mostly through the group-based lending model developed by Bangladesh’s Association for Social Advancement (ASA), which has been suitably modified by Bandhan to suit the local requirements. The model focuses on simplified operations, and enhanced credit approval and loan-monitoring mechanisms. First, a group of 10-20 poor women is formed and then loans are given to individual member on the recommendation of the group. However, to get a loan, a member must have to attend minimum two successive weekly group meetings. Before sanctioning of loan field staff visits applicants’ houses and makes assessment of project as well as the applicants. The loans are finally sanctioned by Branch Manager on the basis assessment of field staff.

Table 2: Products of Bandhan
Products Micro loan product Micro enterprise loan Emergency loan
Loan amount Rural:– Rs 1000 -7000
Urban – Rs 1000 -10000 Rs. 20000
Rs.50000 Rs 1000-5000
Loan duration 1 year 1 year 1 year
Interest rate (flat) 12.5% 12.5% 10 %
Repayment frequency Weekly Weekly Weekly or monthly
Membership fee Rs.10 Rs. 20 NA
Insurance fee 1% on loan amount 1% on loan amount
Security deposit 10% on the loan amount 5% on the loan amount
Bandhan usually extends credit for agriculture, zari work, embroidery, animal husbandry, agriculture, crafts work, small cottage industries, small trading, vegetable vending, fishing, poultry, rice husking, horticulture, manufacture of surgical instruments, pottery, small services, small businesses etc.
Micro loans are given to landless and asset less women belonging to a family of five members with monthly household income less than Rs. 2,500 in rural areas and Rs. 3,500 in urban areas. The loans are also granted to individuals owning less than 50 decimal (1/2acre) of land or capital of its equivalent value. Quantum of the first loan is between Rs.1,000 - 7,000 for the rural areas and between Rs.1,000 - 10,000 for the urban areas. The subsequent loan is Rs.1,000 - 5,000 more than the previous loan. Though the loans repayment period is weekly, it offers 7 weeks grace period in deserving cases.
In 2007, the MFI launched health loan scheme to address the emergency health needs of the poor and their families. The applicant, her husband and her children can avail the loan. However, the loans are granted to members who have completed two loan cycles and past record as well as behavior and relationship with other group members is satisfactory.
Finance charges
Earlier Bandhan used to charge an interest rate of 17.50%. In May 2006, consequent upon increase in revenue and reduction in cost of operation the rate has been reduced to 12.50% flat which, in fact, translates into 23.56% annualized and this includes cost of borrowings (12% annualized), operation cost (9%), margin, risk gradation etc. Bandhan also charge 1% as processing fees and 10% upfront refundable loan security deposit on the principal loan amount at the time of disbursement.
New initiatives of Bandhan: Targeting the Hardcore Poor:
According to the MFI, hardcore poor as those who lack confidence to avail and repay loans or take the risk of initiating a business of their own and their desperate condition requires more than just micro credit. “To reach out to the invisibles of mainstream society and uplift their economic condition so that they can feed themselves and graduate into mainstream microfinance program”, Bandhan has introduced Chartering into Unventured Frontiers- Targeting the Hardcore Poor (CUF-THP) programme. The process involves tracking the poorest of the poor and developing their skills appropriate to the management of a local enterprise. Once the identification is made grant is given in the form of assets. Depending upon proper utilization of assets for income generation, these people become eligible for joining mainstream microfinance programmes. The prize money that Bandhan received from Consultative Group to Assist the Poor (CGAP) for the “Pro-Poor Innovation Challenge (PPIC)” award, is being utilized for the programme.
Bandhan’s Education Programme (BEP) – Non Formal Primary Education

With the stipend being received by Shri Chandra Shekhar Ghosh, Founder & CEO, Bandhan as Senior Ashoka Fellow, education programme has been launched. The scheme is meant for drop-out children and those who are not going to school in the age group of 8-14 years and belonging to poor families. Its objective is to ‘create a low cost educational model with 100% attendance of students and no dependence on private tuition’. Presently it has established 60 schools under the programme.

Performance:
In India, Credit Rating Information Services India Limited (CRISIL) rates the MFIs in a scale of mfR1 to mfR8, the former being the highest one. It’s rating for Bandhan in 2008 was mfR3 which according to CRISIL “reflects the MFI’s proven track record in scaling and sustaining its microfinance operations, its good assets quality and experienced governing board and senior management as well as its diversified funding portfolio. The MFI is one of the top ten micro finance institutions of the country” (CRISIL, 2008). The audited financial results throw light on significant growth in performance of Bandhan in the last three years.

Table 3: Highlights of financial performance of Bandhan
(Rs.in crores)
As on March 31 2008 2007 2006
Interest income from loans 44.62 18.19 5.24
Interest on investment/ bank deposits 0.58 0.23 0.02
Total fund based income 45.20 18.42 5.26
Total fee based income 6.54 2.59 0.16
Total income 51.74 21.01 5.42
Total interest on borrowing & finance charges 17.77 6.14 1.36
Gross spread 27.43 12.28 3.89
Gross profit 33.97 14.87 4.06
Expenses – Personnel 13.73 4.22 1.42
Expenses – Administrative 6.47 2.60 1.45
Write of loan losses 0.52 1.78 0.73
Net surpluses 12.81 6.20 0.25
Net worth 21.45 8.64 2.09
Long term borrowing 283.00 100.29 28.86
Short term borrowing /deposits /security of members 45.77 20.83 8.17
Total loans and advances 278.27 126.13 37.11
Total current liabilities 54.38 26.85 9.51
Total current assets 77.07 8.92 3.06
Total assets 358.95 136.12 40.47
Operational self sufficiency 132.39% 141.33% 104.87%
[Source: CRISIL MFI rating report July 2008]

The data in Table 3 indicate that there has been substantial growth in 2008 largely because of infusion of substantial funds by way of borrowing from financial institutions. The total borrowing including both long term and short term ones, increased from Rs 37.03 crores in 2006 to Rs.328.77 crores in 2008. During the same period, loan disbursement has gone up from Rs.37.11 crores to Rs.278.27 crores and income from Rs.5.42 crores to Rs.51.74 crores. Consequently net surplus rose from 0.25 crore in 2006 to Rs 12.81 crores in 2008.

HR Practices

An effective HR practices is essential for growth. As on 31st March 2008, out of Bandhan’s total employee strength of 2415, 1776 were credit officers each handling around 428 borrowers. In the organization, the employees receive fixed pay and promotion is performance based. The recruitment process is swift and the training is on the job under the supervision of a senior. Role and responsibility and growth path for each employee is clearly laid down. The staff at the Head office and Regional offices are to visit the branches regularly so that they can understand operations at the grass root level. Effective monitoring at each level has resulted in 99 % recovery rate over the years. In 2008, the employee attrition rate was only 7.79% as compared to 5.17% and 8.13% of 2007 and 2006 respectively.

Management Information System

MIS is viewed as one of the important tools for reduction of cost of operation and for improvement of operational efficiency for MFIs. As on 2008, in Bandhan data was maintained at branch level manually which delayed the process of consolidation at the Region and Head office level. However, the MFI is presently working with Bangladesh Rural Advancement Communities (BRAC) to develop a customized software which is likely to be implemented in 2009.

Conclusion

Success of Microfinance Institutions, pioneered by Grameen Bank of Bangladesh, has proved that it is a good business proposition too as is evident from the financial statement of Bandhan. However, paucity of capital is a major hindrance for growth of MFIs. The Reserve Bank of India has brought financing of MFIs by Scheduled Commercial Banks under the purview of Priority Sector Lending norms. The Banks too are finding quite it strategically attractive because of very high rate of recovery and wide spread reach of MFIs. In view of the performance and the growing reach of Bandhan, a large number of financial institutions such as SIDBI, ICICI Bank, HDFC Bank, AXIS Bank, ABN AMRO, Standard Chartered, Citi Bank, State Bank of India, UCO Bank, UBI, Yes Bank, BNP Paribas, IDBI Bank, Indian Bank, Bank of India and LIC, have extended their financial assistance by way of loans. However, concentration risk is quite high for Bandhan as 93.85% of its total loan portfolio is in West Bengal only. A socio economic and political changes and growing competition may pose serious challenge to them. Incidentally ASA, the mentor of Bandhan has also started operation in West Bengal. Therefore, to achieve its goal of reaching out to two million poor by March 2010 and thereafter to add one million members each year, Bandhan will have to strike an appropriate balance between cost of borrowings and cost of operation. By increasing scale of operation through innovation, technology initiatives and strategic partnership may be effective in the process of its sustainability and further growth.

References:

1. ADB (2000): Finance for the poor: Micro finance development strategy, ADB,
2000
2. CMF (2006): Microfinance in India – Current trends and challenges, Centre for microfinance, Institute for Financial management and research, October, 2006
3. CRISIL (2008): Bandhan: MFI Grading report, July 2008.

4. Rangarajan (2005):“Microfinance – the road ahead” Inaugural Address, April 12, 2005, New Delhi
5. RBI (2007): Circular no. RBI/2007-08/38 RPCD. MFFI. BC.No.08 / 12.01.001 / 2007-08 July 2, 2007
6. Sinha, Sanjay (2007) : Efficiency with Growth: The Emerging Face of Indian
Microfinance, ADB Quarterly News letter, Finance for the poor, Sept.2007,
Vol 8, no.3.
7. http://www.bandhanmf.com
8. http://www.cgap.org/p/site/c/template.rc/1.26.1453
9. http://www.forbes.com/2007/12/20/microfinance-philathropy-credit-biz-cz_ms_1220microfinance_table.html
10. http://www.mospi.nic.in/nss_502_press_note_16feb06.htm _______________________________
Dr. Mukul Mitra is Professor, International School of Business & Media (ISB & M), Kolkata. He can be reached at mitra.mukul@yahoo.com ALL RIGHTS RESERVED

Downturn as a Challenge: HR imperatives

JHILMIL DAS

Organizations should evaluate their business; their strategy, their financials and their people and internal structure before randomly cutting down on redundancies

In the fall of 2008, we all were stung by the collapse of the world financial markets that hit the economy so badly. However, it should be mentioned that in events of such avalanche in past, every time our history has witnessed a new savior which came along promising a quantum leap into a new land of sustained profitability, dotcom for example. Sustained success is the key behind organizational growth and survival amidst this upheaval and HR managers today are really caught in a whirlwind that is wreaking havoc at every level. Counter-intuitively, some organizations have actually been positively affected by the recession. The same cannot be said for most businesses however, many of whom have been forced to lay off staff and to re-evaluate and re-structure their businesses. The major challenges before the HR today are contribution to a company’s long-term success as well as its short-term survival. It strives to provide solution through addressing to the major concerns based on integration and predictability based on the following –

a) Manage risk against talent surprises and preparation for risk mitigation
b) Proven and effective talent management services from hiring through compensation, support and development
c) Support & guidance to line managers in retention of key human capital
d) Provide assistance in business functions to succeed through workforce and structural optimization

The additional prerogatives of the HR managers also encompass managing the operational effectiveness through internal process efficiency and maximization of human capital investment returns.

The initial step towards this effort consists of planning, which includes alignment of employee goal with organizational goals. The other necessary step obviously is a well-designed succession planning program focused on capabilities. The next step is deliverance based on optimization through cost-effective techniques, resulting in quality staffing or retention. Integration is another effort towards synchronization of HR deliveries through hiring, paying, developing and engaging programs. This increases efficiency and return on investment and creates transparency and confidence among employees. The last word is prediction, which involves measuring the past performance and future expectations. These lagging indicators fall into five categories: cost, timeliness, quantity, quality and human reactions, such as customer satisfaction or employee commitment. These are necessary to evaluate how the organization does against established objectives and goals. Leading indicators are derived by analyzing current events with future implications, for ex. leadership, readiness, engagement, culture, brand, reputation and retention.

In order to improve talent management and performance over the long term, they should also revamp and realign their function, policies and services, as well as seize other opportunities created by the downturn. As an alternative for reduction of redundancy owing to additional headcount, we can take recourse and only eliminate jobs that represent excess capacity, non critical or one that does not fit any longer with the strategic direction and structure of the company. Rather, focus can be aimed at building critical capabilities and key leadership development initiatives. Also reduction of service costs can be initiated in the form of outsourcing, offshoring and renegotiating vendor contract.

A profound talent review can be devised in order to maximize productivity and performance of the workforce, segregating the performers and non-performers and improving bench strength. Initiatives can be taken on energizing and rejuvenating the existing employees through building on employee trust, productivity and commitment.

Workforce today has become leaner, the reason being the driving budget cuts and layoff owing to the recession. During this time, the quality and effectiveness of organizational talent no longer serves simply as a competitive differentiator - it becomes a bottom-line necessity. Each person counts.

Yet, companies looking to employ the best and brightest have their work cut out for them, as the current climate introduces a variety of hiring challenges, for ex. the context of the interview has changed quite dramatically. Earlier candidates had the pick of a lot of different jobs. There was a lot of pressure on the interviewer to sell the job, to sell the company and to attract the right candidate. But today, with the economy the way it is, there are more candidates than jobs. There's a different set of pressures to be able to vet the candidates and make a decision. That increased competition - and in some cases, desperation - among applicants to get noticed can put a strain on interviewers and may require newer tools and techniques of interviewing. Further, companies can encourage candidates to self-screen by improving the accuracy of job descriptions. Also in order to save time and resources, organizations can consider panel interviews rather than the more traditional series of one-on-one interviews.

As companies tighten their belts in response to tough economic times, HR managers has also changed the way training used to be done and are finding new ways to make learning and training more effective and efficient by designing programs that maximize value while minimizing cost.

Most learning organizations rose to the challenge by taking advantage of then-new technologies such as video discs and computer-based training to decrease classroom time and cram as much nonessential content into pre-and post-work as they could, saving only the most valuable content for the classroom. Best-practice organizations also focused on more clearly defining performance objectives tied to training. In many ways, the ability to link learning interventions to a company's strategic objectives represents the epitome of training's aspirations. If HR can point to the metrics that show training's impacts on those objectives, so much the better - for both his budget and people.

If an organization has goals to increase customer retention by 20 percent this year, for example, it has the ability to communicate this goal within a talent management system, which can then automatically communicate the same to every employee, typically by job function. As the process filters down, the goal's components become more specific and actionable, and goal components are embedded into each one’s performance and development plans.

The employee performance goals can be systematically aligned with department goals, which in turn can be aligned with higher-level organizational objectives. This means that organizational goal alignment not only occurs on a top-down basis, but from a bottom-up perspective, too. Employee performance plans within such systems provide associates with an opportunity to share their plans and goals with managers and supervisors. These systems also provide tools and mechanisms designed to encourage employees to work with their managers to align individual goals to both departmental goals and to organizational initiatives and critical success factors. This creates a two-way reporting mechanism that allows all employees to see how they are doing individually and as a team in relation to achieving the company’s objectives. Such transparency not only helps everyone within the company better understand how their work contributes to the overall good of the organization - a key driver of employee engagement and the creation of a high-performance culture.

Amidst several challenges created by the downturn, it also has harbored opportunities if implemented successfully. Companies can reposition themselves to emerge with a higher performing workforce, differentiated capabilities and a great leadership bench.

Recession has forced businesses to take an honest view, and to realistically assess in light of market trends and operational costs, what they need to do safeguard their businesses for the future. In some cases it has lead to redundancies, in others they simply have emerged in able to engage in heightening staff engagement and productivity levels. In some cases it is a mixture of both approaches. Whatever the decision, the people of an organization are at the core of their strategy and it is imperative that the organizations treat them appropriately for the mutual benefit of both parties. HR is the domain that can and should advise on these issues. As a profession we need to be progressively more involved in these discussions and decisions and we must be seen to take the lead with innovative and cost effective solutions that support the businesses in which we work.

It is imperative that organization should take an evaluative look at their business; their strategy, their financials and their people and internal structure before randomly taking decision to cut down on redundancies. With a view to surviving for the long term, organizations must take considered action which sees them optimizing organizational structures and resources with a view to maximizing efficiencies, while at the same time optimizing employee engagement and productivity going forward. When the decision is being taken to go down the route of redundancy, it is important to act quickly. Legal parameters must be adhered to, and staff must be treated with respect and consideration. To this end, they must be met with individually and have explained to them the reasons and consequences of the decision that has been made. All questions should be answered swiftly and as comprehensively as possible and within the constraints of their organizational realities, employers should attempt to provide as much transitional support for the employee leaving their organization, as possible.
Individuals who are faced with redundancy typically go through emotional upheavelment on hearing the news of losing their job. Coupled with this there are practical considerations which they must deal with, both in terms of financial considerations and the need to source new employment. In managing this group and in sourcing or providing in-house outplacement services for them, holistic approach should be taken, which takes account of both the human and practical sides of redundancy, equipping individuals with the skills to move forward. Outplacement help is the new option that companies are offering to their laid off staff. The idea behind the service is to provide the employees with ample counseling and suggestions, and help them prepare better for a new job.
An important benefit of offering outplacement services is the positivism it brings to an employer-employee relationship. The laid off employee goes through classes-either online or internally at the company-to comprehend and present his skills better to potential employers. Also referred to as 'career transition services', they include a wide range of assistance. The service helps the displaced employee with counseling to make him: Understand and cope with the job loss
• Understand job markets
• Initiate job search
• Present skills better on paper and during interview
They also help in keeping the existing staff morale high and positive. Layoffs bring with them damaged morale, fear, reduced productivity, negative emotions and diminishing confidence. But, the practical and comprehensive approach of the outplacements services help in making career transitions easy. Most importantly, organizations are optimistic of improved market conditions and would want to take their talented employees back. Recruiting new employees is a costly affair, and also the talent and skills lost to a competitor are difficult to replace. In India, TCS, IBM, Motorola and Microsoft are some of the organizations to employ outplacement agencies to help their laid off employees.
There is no doubt that we are operating in challenging times and for many people the situation can seem desperate. Now more than ever we must deal with our people with respect, recognizing the impact and consequence that our business decisions can have. When employees are made redundant it is so important to deal with the situation humanely.

Regardless of whether redundancy is a feature in every organization, most employees will be frustrated and or concerned about their job security. These feelings will have a negative effect on motivation and commitment, and consequently performance levels. Organizations must first and foremost recognize this and begin to take active steps to actively listen to their people and to use this time as an opportunity to develop stronger relationships built on mutual responsibility and trust. It is only in this way that we can re-energize that component of our businesses that is so critical to us – that of our Human Resources.

The author is Regional Manager-HR, Aditya Birla Group Financial Services Ltd. The views expressed in this article are the author’s own and do not necessarily purport to constitute an official position of Offline or Material World ALL RIGHTS RESERVED

Commissioned Acquisition

RAJIB KUMAR

The Election Commission validates that acquisition for acquisition ain’t a
bad thing…and how

A couple of days ago I got a shock of my life when I visited one of the campuses I
am associated with.
A huge caravan of matadors, trucks and buses were waiting there to greet yours
truly. For once, I thought my job at this institute was at stake: the promoters have
perhaps logged onto the transport business to beat the recession mode I thought.
My trance was broken in a moment as I soon started getting glimpses of signs neatly
stuck on the front glass of the vehicles in loud red graphics: “On Election Duty”
The very same day as I take the trek from my base at Wellington Square to a
destination in Barrackpore, I see static cues of public transport over a 2 km stretch
on BT Road (the full hog: Kolkata’s very own and dreaded “blue line” buses,
minibuses, the white ones which proudly purports in writing and deed to be “under
the state surface transport corporation-Govt of WB undertaking” and of course the
taxis. Our taxi driver tells us they are on election duty. His assertion is validated: White Paper Signs with red text.
Now, the word “acquisition” isn’t a dirty word anymore. Forget about its usage with
its antonym “merger”; even within the organization HR functionaries looking after
recruitment flaunt their visiting cards with “Head-Talent Acquisition” encrypted.
Some may even argue acquisition was never a bad word after all. Didn’t the HR
definition from times immemorial promulgate the equation: Acquisition, Preservation
etc. etc.?
But all said and done the naked vehemence of acquisition by the Election
Commission reminds you of an imperialist war.
We have been reading the acquisition stories of the EC at the National Library,
Kolkata in the media. However, since I hardly visit the National Library, in the age of experiential learning, the story remained a story.
The execution of the might of Election Commission would put any dictator in any part
of the world at shame. Few of the SBI branches in the city aren’t functioning. The
Grievance Cell at Lalbazar is non functional. Pensioners in Post Offices are having a
harrowing time. As I write, public transport in the city is steadily embarking on the
road to oblivion (on election duty actually). You name it. And what’s more: each of
the above declares proudly why they have disabled itself from public interface. The
Kolkata Police website regrets the inconvenience caused by the ineffectual
Grievance Cell. Less tech savvy establishments like Post Offices hang shabby
looking hand written signs. “Hang the Sign & the Public” seem to be order of the day,
folks.
Question is: all this for what? A popular email forward doing the rounds for sometime
gives us a gruesome fact: The cost to company (I mean country) per MP is Rs. 32 L
p.a.! But obviously the cost involved in their acquisition is anybody’s guess.

The views expressed in this article are the author’s own and do not necessarily purport to constitute an official position of Offline or Material World

(Offline…SPECIAL-GREATER IMPACTS May 2009)

CROSSROADS-No Requiem for Non Believers

RAJIB KUMAR

Is this divine vengeance against satanic designs? An absurd philosophy’s (and its fiery execution) bluff has been called.

The refusal to sing an Islamic requiem for the terrorists killed in the Mumbai encounter is the strongest statement the world has seen till date in the war against terrorism. Of course, it comes from the Muslim clergy, the authorized interpreters of God’s words.

The Mumbai mayhem has evoked a spontaneous response and the expanse of the response is a wonderful case in 360 degree. The most damning of the appraisals for the terror philosophers have of course come from none other than the clergy.

The decision of every Indian to stand up and get counted in this war against terrorism is a rhythmic response bereft of any mobilization by political outfits.

That India has changed since the 1992 blasts could be seen, felt, and heard virtually everywhere. Whether its Mr. Shah Rukh Khan declaring on TV that he’s a practicing Moslem and would be too glad if anyone can point out anything in the scriptures even vaguely justifying terror or Ms. Priety Zinta leading a peace march…. its written large on everybody’s face: We’ve Had Enough.

Blogs, Orkut & Facebook, mailers, SMSes…. The new age tools of communicating and networking have been put to successful use in combating terror…. in the mind. Well George Bush and Rudy Giuliani led the American people to a state sponsored battle against terror post 9/11; Since political members of our class were too busy promoting Terror Tourism to in-house film makers an apolitical forum- with everybody on board-filmstars, singers, painters, teachers, businessmen and women, corporate executives, students…. you name it …got into the act.

The media facilitated the germination in a big way setting new standards of maturity in the process. Complaints of “release of strategic information” were countered by validating that the commando operation was telecast on the delayed transmission mode. Serious, No-Nonsense people weren’t taking anything lying down…if you are combating…you got to be get into the “combative mode” in the first place-plain and simple-it’s India’s brand of the war against terrorism.

Even if India ain’t shining as our economists and many of us would vouch post globalization, we got to atleast give those two words credit for facilitating the process of creating an empowered, networked and bonded young at mind India who would give a damn to what a certain fella had to say about who is a Mumbaikar and who’s not and rather get the job done. This only happens in India…. indeed. …

The views expressed in this article are the author’s own and do not necessarily purport to constitute an official position of Offline or Material World

(Offline-Special, Greater Impacts, Volume-5, No- 5, December 2008)

Rajib Kumar's Speech at the Fresher's Welcome Programme of Annex College, Kolkata

My dear students, I am glad that you have chosen management as a career and Annex College as your institute.

Young friends, today we are living a global environment where there are certain issues beyond the academic curriculum and which you must start developing in you from day one to be successful. I shall spend sometime on these:

Cross Cultural Communication:

A global environment implies business models based on supply or value chains, models resulting from acquisition, mergers and restructuring. This scenario naturally necessitates that we appreciate diverse cultures in our workforce and acquire necessary skills to deal in cross-cultural communication.

With a whole lot of new sectors coming into the fold India today has a lot for opportunities for young professionals like you than a few years back. This again poses a problem for future managers like you. As ladies and gentleman managing functions, retaining your team is going to be the greatest challenge in the years ahead. You must appreciate this isn’t just a problem for the HR fraternity ---its everybody’s problem now.

Infact every business model today necessitates that executives be skilled in the HR and Marketing functions because anyways you shall be managing people and your success shall lie in success of those you manage. Again out of pure business need every entrepreneur explicitly or implicitly desires that you market the brand both internally and externally.

Multitasking

Business today also demands that you get into the multi-tasking mode. Instead of cribbing about limited or unavailable resources modern managers are expected to make do with available resources and make do in the best possible way.


Networking

The importance of networking was never so underscored as it is now. From being frowned upon or being branded as “unethical”, managers who are effective in networking at the personal and professional level are not just admired or respected but are undoubtedly in huge demand.

Good Human Being

I believe if you wish to be liked and admired by everybody in the circuit you need to be a good human being. Humility, Compassion, Sense of Humor, Empathy and Honesty – these eternal values are gaining more importance ironically in an age where the human being is often reduced to a robot. Perhaps that is the reason why a good human being in blood and flesh is in great demand. Therefore, as you take a giant leap in your life today with your decision to get into management education please also endeavor to become a good human being along with a good manager and I tell you in the years ahead there wont be much of a difference between the two.

As members of the academia we would like to see to you grow in leaps and bound. We want that you become the agents of an intellectually challenging community setting benchmarks that others can follow.

I shall leave you with these lines from the poem Hills to Climb:


Hills To Climb


Throughout my day let there be hills to climb
There is scant zest in mastering the plains
For loitering, for rest, there will be time
When daylight wanes.

Let my horizon ever to be a hill
Which I must reach although the trail be steep;
Up, up to climb with energy and will
Before I sleep

For when I reach the summit on a hill
I’ll find my dreams guarding the topmost peak
The sun will set, the air be calm and still,
And God will speak

Not in a valley let me end my day;
I would have heights to gain a clearer view:
Therefore for hills I pray and strength to climb
Dear God to you….


God Bless You; God Bless Annex

Material World Anniversary Debate 2008 Reports

A “less competitive” debate

Perhaps the overpowering presence of academia in the Material World Anniversary Debate Panel this year saw an unconventionally “less competitive” debate with speakers complementing each other in their deliberations. Coincidentally, every member of the entire panel including the Chair is or has been attached to educational institutions as faculty.

*
Imageries galore

If DP Chattopadhyay of Globsyn Business School (the only panelist who did not refer to any paper for his deliberations) with his captivating extempore and a very stylish accent used human anatomy to highlight the importance of peaceful coexistence of the hard and soft skill, RP Yadav, CMD of Genius Consultants resorted to poetry…

“Song Without Music
Ice cream Without Ice & Flavor
Food Without Salt & Spices”

*
Brotherhood too….

Such was the feeling of bonhomie that Prof Chattopadhyay turned down the Chair’s (Mr. Biswajit Matilal, Veteran Media and PR Personality) offer to refute the opponents’ views in the second round. “I would neither counter the views of the opponents’ nor reinforce the views of my colleague,” he asserted.

*
For Debate’s sake…

It was left to Rajib Kumar, CEO, Material World and Jt. Secretary, National HRD Network, Kolkata and Dr. Subhashis Majumder, Principal, Bhavan’s College of Communication and Management to fight out in the end. Kumar’s views appear above; Dr. Majumder underlined the poor state of hard skills training in institutions.
*

Balance, Equilibrium and other stories…

In the end everybody was talking the need to balance though…Dr. Majumder’s opinion of the need to find equilibrium between hard and soft skills was welcomed by Kumar. But then he asked…who decides on that equilibrium? Education after all is a business today.
*

Family Business…

And the light mood continued when Kumar responded to Yadav’s family example with “Yes…we sure need soft skills training in the family. All married men know that.” The audience and the panel burst into laughter. Even the somber Mr. Matilal couldn’t help grinning and chipped in ”I can see Mrs. Kumar’s face. Mr. Kumar should remember he has to return home after this.” True to the general mood the debated ended on a tie.

Dimples, Spirits and Cricket in Summer

RAJIB KUMAR

At the very outset I sincerely apologize to readers who do not give a damn about cricket or/and IPL. I hope my indulgence, two times in a row isn’t a case of OCD; infact that I have NOT been bitten even an inch by the IPL bug can be validated: though a life member of the ill-fated Cricket Association of Bengal I didn’t care to pick up a ticket for a single match; I have managed to watch just two on TV thus far, that too more under compliance of group behavior than personal choice.

So why IPL again? Well, simply because I feel that we are at the crossroads, thanks to IPL, on how sports and business are going to relate to each other in India in the years ahead- something which cannot be given a miss in a journey toward an intellectually challenging knowledge India:

a) The Vijay Mallya and Rahul Dravid tango: Welcome to the coming of the “owner” in Indian sports. Mr. Mallya’s much touted “interference” is but a natural

By product of the system. In the West, some team owners are “less interfering”, leaving the job for professional managers and there are others “more interfering” types. It is just a coincidence that good old Rahul with the public image of a quiet, quintessential guy has the high spirits of Mr. Mallya for company.
b) ICL Vs IPL: As the original cricketing cry child (long, long ago before Shreesnath and minus the slap) Mr. Dev (sometime the Harayana hurricane) has lamented that the ICL was not just better organized, the 22 yards track was not meant to be a bowler’s crematorium (unlike in its “P” version). Yet BCCI accreditation was missing; what’s more, the media too was distinctly indifferent. While Mr. Modi, the brainchild behind IPL would have us believe that all the money spinning efforts shall in essence be neutralized as everything shall swirl back for…you guessed it…for the benefit of the game while the rogue call Subhash Chandra wanted only profits for himself. We believe you.
c) Wrong headlines: Slapped Affront; Black or White; Bare or Not to Bare; Cop Under Cover… the silver lining has been the all dimples, Shah Rukh. Shah Rukh has epitomized everything about the new young India. He has never kept his emotions concealed yet he has displayed a high level of maturity of taking things in the right spirit and treating a game as just as a game despite the stakes involved. The picture of an elderly lady fixated in his bosom and generously picked up and flashed in the dailies has done a world of good as an epitome of warmth and humility. He is indeed a manifestation of everything positive of the young and empowered India- rich and wealthy; popular yet ain’t flashy; smart and witty and again compassionate and caring and managing time effortlessly at all this.

Shah Rukh Khan is the one bright spot in the IPL’s troubled life.

(Offline,Volume-5, No- 3, May 2008)

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CROSSROADS

RAJIB KUMAR

Will events like IPL bid adieu to the age-old policy of marginalizing the states?


Ever Since India attained independence, union governments have implicitly and explicitly worked towards weakening individual states. The philosophy behind this “official line” was empowered states were a threat to the center. The public position was of course that this would augment thoughts of secession from the Indian state.

The dreaded article # 356 of the Indian Constitution (or as some would say a section in the Indian Penal Code!) has been freely used over the years to teach errant states a lesson.

This was quite in contrary to the way of life in, say, America, where you would observe the same vociferous support in Chicago for the Bulls as for the US soccer team and with undiluted official sanction.

Perhaps the realization that stronger states mean a stronger nation came to India managers only post globalization.

Events like the Indian Premier League which has caught the nation’s imagination (including the most wanted men and women of Bollywood) might just give the much-needed fillip to greater feelings of federalism.

It is silly that thus far this was scorned upon. In Chicago, Illinois you would spot banners of Bulls happily fluttering alongside the stars and stripes just like those of Phoenix Suns would in Phoenix, Arizona.

I take the American example because of the synonymity with the Indian Example: Both are huge countries (America huger ofcourse and both have a huge number of states (America 50, India, not too far behind… 28 and 7 so called “union territories”) The American citizen’s loyalty to his state and country is equal and mutually exclusive. Thanks to market forces we get to see the celebration of the “state” in the lanes and bylanes of Kolkata…. Kolkata Knight Riders banners fluttering all over the place. The next obvious question is: when shall we get to fly the tricolor atop our apartments?


The views expressed in this article are the author’s own and do not necessarily purport to constitute an official position of Offline or Material World. The author’s write up is based on an entirely personal reflection and is bereft of any intention of a personal tirade against any individual or group or section of society

(Offline,Volume-5, No- 2, April 2008)

Designing A Corporate HR Plan

INDRANIL BANERJEE



As the business year has completed and the industry and the stakeholders are anxiously waiting for the results, the corporate world hardly has time to take rest, rather the honchos are gathered to develop new strategy to chalk out the corporate plan for new financial year. The corporate plan whether involving issues ranging from creation of a new image building drive or setting up of a new division or outsourcing of some non-core activities involve vital inputs from its HR department. To offer meaningful inputs in the business process of organization value chain during recent time the role of HR became noteworthy. HR just cannot remain isolated or behave like a mere headcount in the Corporate Think tank team. In order to ensure proper assimilation of Company objective with the aspiration of its people during recent past the need of a corporate plan for HR department of the organization has strongly been felt. Such plan if developed thoughtfully helps the organization to build its roadmap and thus may act as a useful strategic management tool. The following issues are required to be kept in mind at the time of developing plan to ensure its deliverable value.

· Role expectation of HRM wing :

The general expectation in corporate circles is to let HR perform its support service role, remain busy with people centric issues, maintain industrial peace and so on. Strangely, a good number of HR people are happily carrying out such maintenance role and thus when they look back find difficulty in counting one’s “Key Success Areas”. This issue becomes evident especially when they make self-assessment at the year-end. Finding very little alternative became force to express their performance for the preceding years only on generic terms. It is true that service role is important; rather it is the foundation on which business houses are built upon. But out of absolute volatile nature of stability of the business houses in this era of competition it is the need of the hour to look after the detail of deliverables rather than remain happy with doables only.

· Culture related issues :

HR often attributes lack of appropriate culture as the stumbling block for them to extend strategic support to the organization. They find difficulty in generating support whenever they come out with any proposition of change. Unless the Organization harness the HR philosophy how could one deliver? But rather than expecting somebody else to clear the path it would be better if HR itself shoulder this role. Definitely it is easy saying than practicing. But then, what is easy in this world – digging a well or opting for a vacation at space. If the organization could be focused with its target to acquire a definite part of pie of market share through its sales organization why not HR team would not strive for achieving desired level of cultural change indices. Even for choicest organization, there is a propensity to opt for professional service for culture survey without analyzing its utility value. If designed properly survey outcome may act as an important source of information but it would be futile if HR is not sincere to solve genuine people issues and mixes with all stakeholders.

· Customer orientation of HR :

To ensure that HR deliver on change initiatives processes the HR team is required to be exposed to both internal and external customers of the business house. It is required to act as a glue for cross functional alignment which may range from arranging cross functional meeting on Monday morning to participate Yoga class with all corner to mobilizing fund for marriage gift of employee ward. Other than transact Company policy with employee representative exchanging views on contemporary issues always add value for relationship building thus create a positive atmosphere for acceptance of change initiatives thus works excellently as Salesmanship. This is a phase where HR’ization of organizations’ IR department takes place and is viewed as a launching pad for building a learning and knowledge Organization.

· Alignment of organization goal to HRM function :

At the time of building corporate plan the HR team must be equipped with vital inputs of corporate objectives. Financial statements of the organization as well as its competitor, growth plan along the value chain and demographically, plan for capturing market share are a few illustrations which required being readily available to the top team of HR to work upon. In spite of imparting training on general topics like “Finance for non-finance executives” the top team preferably equipped by imparting industry specific training on “Interpretation of financial statement” and “Financial implication of HR Decision”. This initiative generally builds interest level for active participation of managers to the programme and helps to visualize Industry realities and appreciate issues while framing corporate plan.

· End-to-end architecture of plan :

Generally, Organization plans for setting target. Once the year ends effort of going for another round of target setting drive may turn to be futile if we not look back. It is worthwhile first to study previous years’ Corporate plan, check out the goal set, measure the achievement made, analyze the gap, if any, and cause thereof and once these processes are over then only plan for setting target for next year.

· Measuring Indices :

We all know – if we are not planning for success, we are simply planning for failure. To check out our wards performance we anxiously look for school annual report, before make investment decision look for Company balance sheet. It is time to consider that if measurement process is accepted practice for judging value contribution at every walk of life why the same is relevant for HR. Similarly, if compensation is determined for every additional number of units sold by a salesman why the same analogy is not applicable for HR. Here lies the importance of measurement. However, before we develop a measurement system it is imperative to know what to measure and then derive the inherent how part. These days it has become one significant issue for corporate to address. Whenever we check up for revamping our existing measurement system it should be remembered that Measurement is a key driver for performance and not the Performance itself. Also at the time deriving corporate plan the periodical benchmarking of individual HR process necessarily be aligned to get best result out of the plan. The HR team preferably must develop its own system of measurement and thus needs to be provided with relevant software and desired training for this purpose.

· Transaction approach :

Normally, cascading of management decision run down the hierarchy and thus essentially a Top-down process. There is common grievance of the operating level management regarding unilateral approach of top management of imposing decision to execute without assessing prevailing ground realities and thus advocate for Bottom up approach. Providing democratic platform for operating level Manager to encourage information flow to reach to a decision is welcome but the issues cannot be left to mercy of individual wishes and proposition. A sensible balance of both approach make the corporate plan realistic and contribute significantly not only to express comprehensive mission statement of the HR organization but also act as a control devise.

· Level of specialization :

HR is not administration but definitely has evolved out of administration. The HR started with its welfare role and significantly moved to the direction of employee development for better productivity. At the time of holding corporate plan meeting it is also advantageous to have the generalist people of administration, sharing the corporate objectives and funding issue. Many a time HR thinks due to lack of administrative support the best of plan remained non-implemented. Thus, it is worthwhile to discuss budget constraints and implementation timeline for individual agenda. While handling HR specialization initiatives like Training & Development, it is worthwhile to keep the long-term objectives of the Organization in mind. Similarly, issues related to Compensation & Benefits need to be dealt after comprehensive study of available salary survey of the industry and contemporary HR market. The robust Performance Management linked with C&B and T&D are guiding factors of Talent management practice and thus is helpful as attrition control device. There is a general propensity to undermine the Personnel Service function although it delivers the final product. It is true that now-a-days the companies are forging ahead to reach absolute specialization but what is the use of designing great HR policies if the same is not implemented and the benefit are not passed onto the all stakeholder. The spirit should be acknowledging the contribution of Personnel Service provider at operating level and request for their support for future implementation.

· Conclusion :

If the corporate plan of the organization is considered as part of initiation of scheduling project the same analogy is equally applicable for HR plan too. The process should ideally be started by mid March and finalized by mid April and communicated across the organization in a documented manner, which would work as guiding principle to achieve corporate HR goal. Recently across the corporate corner there is hue & cry to implement Balance Scorecard. More specific HR Scorecard is also floating. The scorecard an internal control devises works as motivator if properly displayed for both internal and external customer. It may have a significant impact for large diversified complex organization. However it would be a prudent step to check up relevancy of same for smaller organization. The experience says much effort on measurement may lead to shift of focus from performance to presentation. The corporate HR Plan as we found is a strategic tool and must have some uniqueness every year. It should reflect seriousness of the HR team to help bottom-line of the organization without being any source of embarrassment for the top management. It should be transparent without any hidden agenda concerning the employees in general. To generate support from all corners and enhance buy-in of the Plan, it should be launched by CEO of the organization.

(Offline, Volume-5, No- 2, April 2008)

Indranil Banerjee is Manager (P&A), WB State Electricity Distribution Co. Ltd. Kolkata. He can be reached at indranil.hr@gmail.com
The views expressed above are the author’s own and does not necessarily purport to constitute an official position of Offline or MW.

One India?

Some months ago a leading newsweekly of the country reported how more and more of India’s young were building their support systems outside the family. The phenomenon is catching on like wildfire all over the place. Networking and support systems have turned a full circle in India today.

While we read gory stories of the unscrupulous landlord from Howrah, (the ex-Sheffield of India), dispersing tenants through Liquefied Petroleum gas; there is another, confident, young India emerging and working on a whole new value system. You will see this young India in departmental stores, malls, and multiplexes… and even on the road. Are we seeing two Indias then making a satire of the much-touted “official” one liner: One India?

I noted with amazement the predicament of a family wherein first cousins (all aged below 25) working with blue-chip companies or into some successful entrepreneurial activity networking among each other while their 50+ fathers tearing each other apart over property issues and sundry.

Again, I know of a “heritage” family of Kolkata with property valued at several hundred crores where one of the guys who went to school with me is refreshingly, not sitting on “Income from Property” and running a successful export business since the past 10 years.

And then there is another instance of a superrich 60+ father who actually wants to see from heaven his two sons “fight it out” for his long list of movable and immovable assets! One of the sons, in his early 30s (and an acquaintance) and his lovely wife (working with a private financial institution and whom he married against the consent of his folks five years back) is going on his own trying to make a mark in real estate business.

As the proportion of the ageing workforce increases by the day and the demand for younger people with new age skills on the rise (in fact the demand is even more because a small section of the young has the requisite skills) intellectual clashes between the redundant oldie versus new skills acquiesced rookie (mind you I am not just talking about IT skills…in the new economy skills like PR and Gab are in as much demand) are growing. The retired and retiring sections are casting aspersions at the fast changing lifestyles of the “knowledge” workforce.

Intellectual alignment with senior members of the family is hard to come by these days. In this changing scenario, India’s young is holding on to friends, peers and colleagues and interestingly…ladies and gentlemen in their age group from the extended family/relative circuit who a decade ago were “out of bounds” in terms of the whereabouts of a person.

There are cries of “injustice/unfair” from sections of the ageing workforce. They are through with their prime- an age where moneymaking was sacrilege both by government and society. It is therefore natural that they would view the spending spree or the lifestyles of the younger folk with contempt. The idea is not to universalize; many are actually coming to terms with demands of the new world order. My hair rose up when a relative (in his late 50s) expressed vehement interest to work in a call center after his retirement, in under two years but such cases are a rarity.

There’s intellectual clash with regards to how warring sections view (even on) compliance to matters of taxation and issues of black and white money. There’s the “corrupt” 40 or 50 something trader in the locality; (interestingly, he too gets benefited by the real estate boom), takes up, “promoting” as a side business, albeit mostly with unaccounted money. His potential customers are of course also products of the old economy who would again buy mostly with unaccounted money.

The professional of new India would instead approach a credible project and seek suitable home loan or put up in company housing.

The confident young man or woman is again sinned for “obnoxious” display of affluence or “opulence”.

How would the 2020 nation reconcile these two Indias finally? Is it like Test Cricket vs One Day vs 2020; or ICL vs IPL? In Bangalore there are two kinds of prices for the oldie and rookie for buying fruits and vegetables from the market. Nobody seems to be complaining.

And where does the concept of “One India” in letter and spirit go from here?

As I was adding final touches to this write up I get a whole new dimension to complicate the analysis further: the techie from one of India’s top IT companies killing his wife suspecting her of having an extra marital affair…Reconciling events and issues is becoming tougher by the day in India today with new dimensions being added every other day. Analyses have just begun.

(Rajib Kumar, Offline Vol 5, Issue-1, March 2008)

Text of the MW CEO Rajib Kumar's welcome address at the MW Anniversary Debate 2007

Respected Sheriff of Kolkata, Guest of Honor, Distinguished Speakers, Moderator Sir, Guests, Members of the MW Board of Advisors:

A Very Good Afternoon and a warm welcome to all of you on our 7th Anniversary.
Material World instituted the MW Anniversary Debate in year 2004 in keeping with our vision of a consulting house with a social commitment. Through this annual event along with our other events, our e-zine, our blogs we have endeavored to put forth for discussion issues of industrial and social importance envisaging an audience that would challenge each other intellectually and foster growth through ideas generating therein.
While making available our knowledge to address needs of our varied clientele-be it in areas of executive search and executive value addition along with our recently taken up one umbrella support services for US aspirants in association of the Indus Foundation, USA we have been trying relentlessly to influence decision makers in the circuit so that we can live in an environment which is more intellectually challenging.
MW has neither the dedicated readership base of a publication nor the numbers might of a professional association. In the process of our mission of greater societal and industrial benefit through our services and our vision of influencing decision making we also have to present ourselves a brand which has a profit and loss account to take care of and not surpluses.
Ladies and Gentlemen: Let me dwell on the motion for a couple of minutes, with your permission.
I attained a small part of my higher education in an overseas nation, US, to be specific, in the early 90s…. at that stage the very going to the land of opportunities was an achievement for me.
My take off from the then Dum Dum Airport had a theatric overtone… I was denied visa on Day 1; granted on Day 3 and I was off on Day 4…. I was still shopping in the afternoon on the day I was to board the Air India flight to Chicago.
It was a never-ending flight all of 36 hours what with a bizarre route…. Calcutta to Bombay; Bombay to Delhi; Delhi to London; London to New York; New York to Chicago; Chicago to Toledo…New York to Toledo.
Well Toledo was quite a comedown from the overnight stay in New York City what will dry barren mid western land and huge pick up trucks.
I slit opened the tea bag when it was meant to be dipped; I was perplexed at my American friends addressing the 60 something math professor by his first name and I was curious why my hosts drank their “pop” which was the mid western colloquy equivalent to soft drinks with lots of ice.
Overseas education is a dream of many a student in today’s competitive world. The various benefits, which a student gains through overseas education apparently gives them an edge over others. Overseas education has the potential of transforming lives. The international exposure one gets makes a student competent enough to face the increasing demand of knowledge and skills and present themselves as a complete package for the prospective employers.
Again, that is not to suggest that the decision to opt for overseas education is way out of all woes as perceived by some. Overseas education, with all the associated benefits like better career prospect and a wider perspective of life is also pregnant with the potential of jeopardizing a career if an impressionable mind fails to overcome the stress involved in living life all by oneself in the fast lane.
Again, in an era where international degrees area available right here in India where does overseas education stand?
While trying to make a case for a print media tie up with a leading daily in town, albeit unsuccessfully I was repeatedly confronted by a question as to why we were organizing this debate…
I’ll sign off with an answer to my young interviewers:
We want you to form an independent opinion on this subject and it is our hope that through the deliberations of our distinguished speakers shall aid you in this process.
Phew…aligning this annual debate has always been difficult. Our role as a facilitator well and truly in place.

(Sligted edited from the actual address. The above does not necessarily purport to constitute an official position of the Material World Group)

MATERIAL WORLD ANNIVERSARY DEBATE 2007- A Report

In his welcome address Rajib Kumar, CEO, Material World shared some lighter moments of his stay in the United States. He listed the advantages and disadvantages associated with getting educated overseas. In an era where international degrees are available right here in India where exactly does overseas education stand? Kumar invited the distinguished panel to deliberate on this.

Inaugurating the anniversary celebrations Rathin Datta, Sheriff of Kolkata said he had an “institutional interest” in the topic in light of his association with the Indian Institute of Management.

Guest of Honor Khokan Mookerji, Secretary General, Bengal Chambers of Commerce and Industry said that we (in India) do not have enough good learning institutions and that we desperately needed to upgrade the quality of our higher education.

Dr. Anuradha Das, Principal, Calcutta International School said a large percentage of students from her school go abroad for higher studies. She was therefore speaking from that perspective (and experience). Overseas education gives a lot of flexibility and a greater level of confidence to students with which they can come out as winners in professional and personal life. She mentioned the very admission process in overseas institutions is a lesson in time and stress management.

Prof Ananya Chakraborty, Professor In Charge, Departments of Journalism and Film Studies, St. Xavier’s College countered Das’s assertion. "What is the percentage of population going abroad for education? How many can afford overseas education in India?" she asked. This was essentially a luxury of the elite she asserted. Chakraborty mentioned that he knew people who went abroad for education and experienced immense trauma in their 1st year- “uprooted from their own culture”. They experienced not only geographical alienation but also alienation within the student community she asserted.

Dr. Sushanto Banerjee, Director of the American Center Library at Kolkata countered Chakraborty’s assertion that students get traumatized in foreign nations. Students are given full orientation before they begin their stay he reassured the house. Banerjee mentioned that the demand of getting educated in the US is so high that it is difficult to find a space to sit in the United States Educational Foundation in India. He said, currently, there are about 76,000 students from India in institutions in the US. He cited examples of Prof Amartya Sen, Prannoy Roy and Azim Premji all of who excelled, he said, with the help of the education they attained in overseas nations. Through overseas education one becomes a “complete man” Banerjee opined. Political interference in educational institutions in India was rampant Banerjee said. There are good institutions in India like the IITs, IIMs or ISIs but very few can get in these the ex-ISI noted.

Sushmita Chakraborty, English teacher of La Martinere for Boys analyzing the motion said with the medium of Internet at everybody’s access level- why would one have to venture outside to gain information or know about other cultures? She said though she too spent an extended period of time in the UK for her education she feels it is not a “necessity”. “Its not air, water or shelter” she quipped. Sushmita paralleled overseas education with a mobile phone with “added features”. A mobile phone is a necessity today but a mobile phone set with added features like camera, megapixel, MP3 Player etc and so on is a luxury.

Dr. Das said overseas education empowers the student to choose what he or she wants to learn. She cited the example of the year’s ISC topper who gave the IITs a miss and went to Singapore for higher education. “We must value the decision of a topper,” Dr. Das told the house building a strong case in favor of the motion.

Ananya Chakraborty wondered if overseas education was that great why are medical and business establishments in countries like United States still dominated by Indians and Pakistanis? Where are the “complete” men? Countering Sushanto Banerjee’s example of Amartya Sen, Chakraborty said Sen’s roots are firmly here. “Amartya Sen has not given up his Indian citizenship,” she reminded her worthy opponents. Chakraborty was critical about the American system for international students. The visa fees, fees of TOEFL are exorbitant she opined. The system, she felt was not transparent and all this was a “huge source of income”. She also questioned the justifiability of taking the TOEFL for a Masters in English. “I do not see those long cues in front of the American consulate any more” Chakraborty commented.

Dr. Sushanto Banerjee said gone is the age of Nalanda University. Most campuses in India lack basic technologies like Wi Fi. Contrary to the conventional wisdom and views of his opponents, Banerjee mentioned that many students are going overseas from middle class families with the help of financial aid from US universities and funding agencies. He cited the example of the son of driver at the American center who made it to the US with the help of scholarship assistance.

Veteran PR and Media personality Biswajit Matilal was the moderator.

The House remained divided on the issue. The Motion, therefore, remain open ended.

(Editorial Team, Offline)

MATERIAL WORLD ANNIVERSARY DEBATE 2007

RAJIB KUMAR, CEO, MATERIAL WORLD GROUP DELIVERING THE WELCOME ADDRESS

DR. ANURADHA DAS, Principal, Calcutta International School

BISWAJIT MATILAL with Prof. ANANYA CHAKRABORTI (L), Professor in Charge, Departments of Journalism & Film Studies, St. Xavier’s College, Kolkata during the High Tea