HR CENTER OF EXCELLENCE
HR MESH AUGUST 2011
Editor’s Note INSIDE ISSUE:
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Greetings from the HR Forum! Welcome to the August issue!
Factors influenc- 1 ing the choice of company and sector by Bschool students The Employer of 3 Choice Knowledge Network Analysis
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On a lighter note 6 Personality of the Month
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The commencement of the new academic session at SCMHRD, brought with it a new spirit to understand the HR world and a firm resolve to strengthen the tradition of keeping our readers updated with the latest happenings in the HR field. We take the opportunity here, to introduce to you the Junior HR Forum Team. Welcome aboard guys! This edition of the HR Mesh throws light on topics like Employer brand image and analysis of knowledge networks. We have also added a new section called „Personality of the Month‟ where we will be showcasing a prominent personality who is making waves in the world of Human Resource Management. It is a constant endeavor of the HR Mesh to serve as a platform of active dialogue between us and the readers. So it is always a pleasure hearing from you. Please write to us about your views, opinions and suggestions at: hrforum@scmhrd.edu As we always say, until the next edition, Happy Reading!!
Factors influencing the choice of company and sector by B-school students Situation 1: Ashok is the HR Head of Banking Division of a leading conglomerate. He looks worried as yet again one of his top performing analysts has submitted his resignation within 2 years of joining. This is the 4 th instance this month. Situation 2: Praveen is the placement coordinator for a leading B-school. He has his head in his hands as he just got off the phone with one of his prime recruiters. They have declined to visit the campus for final placements as the former students from the same college either refused to take up the offer or resigned within one year of joining is reluctant to apply.
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Situation 3: Priya has just left the hall after attending a pre-placement talk with one of the leading companies in the country. Though everything seems good, she is reluctant to apply.
“The problem however is, each new wave of graduates expects different things from their careers.”
What exactly do you think is the common thread linking the three situations? In all the above cases, Ashok, Praveen and Priya are facing the classic problem of person-job fit or job dissatisfaction. Every human being is different; has different needs, desires, aspirations and perceptions. And this is one of the prime reasons why HR exists! Understanding these perceptions and aspirations requires scientific research and skill besides a knack for observation and knowledge of behavioral science.
Coming back to the example mentioned above, we need to examine what an organization can do to understand the factors influencing the choice of company and sector by B-school students today, especially during campus placements. There are over 2,000 management and PGDM schools approved by the All India Council for Technical Education (AICTE). Management graduates from the top ranking institutes are offered big pay packets during their campus placements. However, monetary offerings are not the sole criteria for accepting a job offer. According to a study by Rynes and Boudreau (1986), Fortune 500 companies spend almost 15% of their human resource budget on campus recruitments. These high costs make it is vital that the turnover rate remains low. The problem however is, each new wave of graduates expects different things from their careers. According to Peterson and Devlin (1998), students during the 1950s pursued high salaries, job security and opportunities for promotion. In the 1960s, they sought a sense of social responsibility, resolution of social problems and meaning in life. Anderson et al. (1992) point out that this changed in the 1970s and 1980s with largescale office automation and computerization, when students shifted their goal orientation towards individual achievement and reward through careers. Students in the early 1990s appeared to be refocusing on a combination of job attainment, job security and self-improvement efforts designed to improve one's status in a profession (Anderson et al. 1992). The students today have a strong desire to be promoted more quickly, want immediate results and care less about the company. They are driven by a need for “instant gratification” (Blancero, DelCampo, and Marron 2008). A study by McGinty and Reitch (1992) revealed that students are not interested in salary alone but they also look for interesting job, favorable location, social responsibility of the company and favorable location to be posted. Job security, type of work, advancement opportunity, company characteristics, and pay are just a few of the many factors that are weighed in a person's decision to accept or reject a job offer (Jurgensen 1978, Judge and Bretz 1992). Also, initial job choice decisions are highly correlated to the image of an organization held by potential applicants (Gatewood, Gowan & Lautenschlager, 1993). A study by O‟Reilly and Caldwell, 1980 concluded that intrinsic factors tend to lead to higher attitudinal commitment than extrinsic factors. These studies provide insights on the perceptual differences about various job characteristics in final year students. But they may not help to design tests of causality for future research as the preferences keep changing.
“The students today have a strong desire to be promoted more quickly, want immediate results and care less about the company. “
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This knowledge would be valuable to recruiters who are trying to market their job openings. In seeking to find what initially attracts the present generation, managers may also wish to know what motivates them to be satisfied, committed, and willing to stay with the organization. Doing so will allow for a low employee turnover rate, which is important considering the costs of hiring a new employee. Also, if an organization can successfully adapt their job characteristics to cater to people looking for jobs, they will have a much better chance of finding the bestfit candidate. The Universities can also inform and modify their marketing and admissions enrolment management strategies and processes to serve the diverse needs of today's multigenerational students while meeting their fiscal responsibilities and fulfilling their mission. References: Agrawal Rakesh Kumar, S. P. (n.d.). Effect of employer brand image on application intentions of B-school undergraduates. Vision. Borchert, M. (2002). Career choice factors of high school students. Stout: The Graduate College University of Wisconsin. Dutta Andrew, P. E. (2010). Factors affecting choice of first employer: A study of Indian management graduates. Global Business Review, 435-448. M., C. D., & B., T. D. (2001). Establishing the dimensions sources and value of job seekers' employer knowledge during recruitment. Research in Personnel and Human Resources Management , 115-163. Mehta, D. J. (2011). An empirical study on job prospects in BPO: Indian perspective. UTMS Journal of Economics , 29–35. Siena College. (2009). The impact of intrinsic and extrinsic motivation on job choice in generation Y. 4th Annual Siena College Student Conference in Business. London. Sonawane, P. (2008). Non-monetary rewards: employee choices & organizational practices. Indian Journal of Industrial Relations. Stack, S. J. (2009). Informing graduate enrollment management: marketing and admissions through students‟ perspectives. Colorado: Colorado State University (Contributed by Mohit Gupta and Shakti Singal, Students SCMHRD, 2010-2012)
The Employer of Choice In today's fast, growing and volatile business environment, what distinguishes one organization from the other is undoubtedly its Human Capital Asset. For an organization to reach its true potential, it needs to be guided by people with experience, vision, savvy and rigorous leadership qualities. The fact is that people drive organizational performance and play a role in leading the organization. It thus becomes a mandate that organizations should employ people who leverage the available resources and drive the organization through their immense zeal and passion. But the question here is, how do companies find such people? How do companies ensure that once they get such talent, they stay with them and contribute to the growth? One aspect of looking at it is to have a strong employee branding mechanism in place that is efficient enough to attract people to the organization. The other technique could be to become an „employer of choice’ which can attract the best people and also retain them so that the people are themselves willing to work for your organization rather than the competitor.
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Now to become an employer of choice, organizations need to understand that every person has different reasons for working. These reasons are as individual as the person himself. We all work to obtain something that we need. That something obtained from work impacts morale, employee motivation, and the quality of life. To create positive employee motivation, organizations should treat employees as if they matter - because employees do matter. These ideas will help satisfy people's wants and create employee motivation. Now to become an employer of choice and to keep people motivated enough to stick to an organization a recommended strategy would be - RIFT. R-Rewards and Recognition I-Involvement F-Fairness and Equity T-Training and Learning
These four elements work together to help an organization become an employer of choice. “ To create
positive employee motivation, treat employees as if they matter because employees matter .”
Rewards and Recognition induce a „feel good‟ factor in the employees. When an individual feels that his work has been appreciated, he feels a greater connect with his work and it thus increases the organizational commitment of an individual with the organization. The second element is Involvement. People who are involved with their jobs are proud of what they do and have a personal sense of ownership and responsibility for the quality of their work. This is similar to commitment. However, commitment is identification with the organization. Involvement is identification with one's job. Involvement includes a sense of personal accountability for one's work.
The next one lies in treating the employees with Fairness and Equity. It should be no surprise that people want to be treated fairly. Key areas that demand fairness are workload, promotions, pay, rewards and recognition. Many organizations feel that the more they pay employees, the longer they will stay. This is a rather simplistic approach. Research data suggests that once people's basic needs are met, the feeling that they are paid fairly is much greater in explaining their reactions to the workplace than any simple effect for the amount they are paid. The last element is Training and Learning. For many people, not learning amounts to boredom. Managers and employees are justifiably proud of gaining new knowledge and skills. Learning can involve importing information from outside the organization thus representing "new technology" to the organization while learning can be the acquisition of "known" information by employees in the case of cross-training or newhire training. Thus, if the concept of RIFT is followed, an organization can be an „employer of choice’, retain the best talent and move towards the path of progress and sustained growth. (Submitted by Chavi Jain, Student SCMHRD, 2010-2012)
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Knowledge Network Analysis In life, whichever be the path you choose to accomplish your goal, all you want to know is whether you are moving in the right direction or not. Which option would you take if you faced a roadblock? Run a Google search on the Internet or Ask a small question to your peer- “Hey, can you tell me where to go?”. The fact is that, when you need specific information about your work and about your company, you will turn your chair to your colleague rather than a computer, because, in the world of Google your organization and work-based information is obscure. Even though, in an organization the information people need might be stored in computer databases, previous record files and other tangible resources, it is always easier and handy to seek information from others around us. This tacit network of relationships used by people is generally overlooked. Knowledge Network Analysis (KNA) allows managers to visualize and understand the plethora of relationships that can either aid or hinder knowledge transfer and information flow. While the formal hierarchical system answers questions like- „who works where‟ and „who reports to whom‟, Knowledge Network Analysis (KNA) offers answers to „who knows who‟ and „who shares information with whom‟. Many people refer to KNA as an „organizational x-ray‟ which illustrates the real network that exists under the veneer of a formal system. In today's dynamic and challenging market, every member's innovative potential and creativity plays a cardinal role. It is imperative for a firm to preserve the knowledge which each distinguished person possesses. Proper utilization of knowledge and learning demands a blend of learning culture and technology. Even though explicit information can be coded and saved in databases, the real edge lies in the grey matter of each person who is not tapped. The context-sensitive knowledge which is not written down anywhere, resides in a competent person's mind. KNA helps to track this fluid intelligence and channelize it so that it flows in the most appropriate manner. KNA helps to excavate the industry related data which can facilitate identification of those key influencers who can provide proper direction and inputs. To illustrate this point, let us take an example. When a pharmaceutical company wants to market a new product, the biggest hurdle it faces is to seed the product into a customer's mind. The good part is that it need not convince all its customers, since the patient's decision depends on the doctor's. In turn, the physician will rely on healthindustry peers with greater awareness about a drug. KNA would now help to identify these people who are influencing a major customer base. KNA finds other applications in identifying the key people whose knowledge has been the driving force in the organization. It would help to retain the knowledge when such people leave the organization- knowledge of not just what they know but who they know, which can prevent any knowledge crisis from occurring. Simply put, we cannot simply replace an experienced employee with someone having similar expertise without taking into account the surfeit of formal and informal networks the former person had! Simultaneously, KNA brings out who are the K-genies who are emancipating knowledge in an organization and have the influencing powers. It also spots the knowledge brokers or gatekeepers who transport the knowledge from one department to the other.
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“KNA also helps to identify the people who are losing out on their efficiency by getting involved in unnecessary knowledge and information transfer. “
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KNA also brings to the surface people who are central in the network and those who are at the periphery. While those in central position learn faster, perform better, and are more committed to the organization, the peripherals are disengaged and much likely to turnover. Every analysis is based on the connections formed in and around a node. It is the pattern in which the relationships are revealed that makes all the difference. It is important to make a system more network rich without having too many direct ties. KNA also helps to identify the people who are losing out on their efficiency by getting involved in unnecessary knowledge and information transfer. This tool helps to plan out the path ahead. It brings out the loopholes present in the system, thus suggesting a better network that can be formed. It would help to save time by developing better network connections, by laying out a framework for the new joinees about whom to approach and for what. It also distributes the network load if any one person is getting overburdened.
KNA can also be used outside an organization. It helps in the intersection of diverse information flows and knowledge exchanges. These connections help to gain a clearer picture of the industry which makes an organization aware of the upcoming discoveries crucial for the development, and also warns about any change that may impact the organization. The identification of the key people can help to leverage their creative and innovative bent of knowledge. With mounting complexity of work, growing workforce and introduction of niche technologies, there very little time available for people to develop their knowledge base. Hence, it is important to get exposed to new information from people around you. Nowadays, teachers learn from their students, doctors learn from their patients, Bosses learn from their subordinates. In such an environment it is important for every individual who is part of an organization to keep serving their informational needs. The way the business environment is shaping up, it is necessary to tune the knowledge milieu in the same manner. The focus should shift to the informal networks people develop within and outside organization. We are looking towards a future where the organization structure is flatter, team-oriented and hence interactions among people play an important role. It is necessary to understand the contour of these interactions and define them so that they lead to a more beneficial and efficient network. (Submitted by Sakshi Dadhich, Student SCMHRD, 2010-2012)
On a lighter note...
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Personality of the Month The man behind the transformation of HR practices at ICICI Prudential Life Insurance, Judhajit Das, is one of the proponents of Technology-enabled HR management. In 2005, he joined ICICI Prudential and developed a major change in the way human resources were managed. Under his leadership, ICICI Prudential grew from 5000 employees in 300 points of presence to 30000 employees in more than 2000 points of presence by utilizing communications technology to ensure the smooth growth of ICICI Prudential as an organization. A point of presence is an artificial access point between various communication entities.
Judhajit Das—Chief HR, ICICI Prudential Life Insurance
Career path: Judhajit graduated in Economics from Jadavpur University, Kolkata and completed his post graduation in Human Resources from XLRI, Jamshedpur. He has extensive career experience starting from RPG (RP Goenka) Group in 1995 as a management trainee where he was exposed to several sectors such as Retail, Manufacturing and Telecommunications. Due to his exposure in these sectors, he developed the confidence of problem solving through analysis and practical knowledge. Judhajit then became the Head of HR at Saregama. His tenure provided with understanding of the facets of organizational culture and driving change, as he was involved in re-building the operating culture of the long-established company. He then joined GE Capital where he benefited from the GE values of energizing, creating edge and driving execution. He is currently the Chief HR in ICICI Prudential The Road to success: After taking up his leadership role in ICICI Prudential, he was confronted with a major potential organizational change. The organization was growing tremendously and required an infrastructure that could incorporate human resources to meet the rapid growth. Through meticulous process management and through implementing communications technology within the HR framework, he was able to drive the organizational growth successfully. He believes that the HR policies must be implanted intrinsically within the organization in order to drive organizational change. According to him, “building and securing buy in from all stake holders [is] pivotal as necessarily, the people strategy has to be deeply embedded with the business for it to be effective”. Major Challenges for ICICI Prudential: According to Judhajit Das, recruitment and talent management are the two major challenges for ICICI Prudential. There is limited talent pool available with knowledge of the elements and requirements of the insurance industry. Also, insurance sales as a career is not preferred by today's business students. Sales roles require direct interaction with the customers and require confidence, mastery over the language and maturity in handling the customers. Therefore there is a drive to retain the right people for the job, by offering them employee value proposition alongside extensive learning and growth opportunities and providing them with a supporting organizational culture. (Source – Human Capital - May 2011, People Matters, NHRD)
THE
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FORUM
TEAM
SENIORS
JUNIORS
Aby J Kottukapally
Aastha Dhawan
Aditi Naik
Arpit Chaturvedi
Bibin J Poovathany
Pulkit Mitra
Divya Amarnath
Rosanne Mathias
Isha Chandra
Royston Vaz
Karanbir Singh
Varun Chandar