Thursday, May 30, 2013
Monday, May 27, 2013
Marriott and India - Twain shall never meet...
When Bill Marriott chose Arne Sorenson over his son John Marriott to take-over as the 3rd CEO of Marriott International, he broke a tradition of sorts. Marriott group started by Bill’s father had only 2 CEOs in the glorious history of Marriott, spanning over 85 years. Bill has four children and he had a wish that one of his children takes-over the reins of this hospitality empire, although not all his progenies were running for this position. Besides the fatherly wish and expectation that his child leads the group after he calls it quits, he also felt that a 'Marriott' would perhaps perceptually convey the promise that Marriott makes to its guests and other stakeholders better.
His eldest son John Marriott came closest to donning this role. However in the end Bill found Arne Sorenson, who worked for the group as the COO, to be fit for the role given his ‘big-picture’ approach and razor-sharp strategic mind. Merit gave way to family tradition and parental affection. Bill Marriott chose an employee over his son as his successor who could best secure the interests of the stakeholders.
His eldest son John Marriott came closest to donning this role. However in the end Bill found Arne Sorenson, who worked for the group as the COO, to be fit for the role given his ‘big-picture’ approach and razor-sharp strategic mind. Merit gave way to family tradition and parental affection. Bill Marriott chose an employee over his son as his successor who could best secure the interests of the stakeholders.
Cut to India, according to a study by proxy advisory firm IIAS, around 25% of BSE-100 companies , which are largely promoter-driven , have the highest pay packages. In fact, for family-owned businesses where multiple family members are on the board, their combined remuneration tends to be on the higher side and in one case constituted almost 70% of the total staff costs.
The study also reveals the high variation between average employee salary and CEO pay (average of 285x and median of 85x). An analysis of the five highest salary paying companies in BSE-100 shows that in the last few years, many of the larger firms such as RIL and L&T have been replaced by smaller ones. Most of these top-paying firms are run by promoters themselves. IIAS find this as a worrisome trend since the CEO remuneration levels should be comparable, irrespective of whether the CEO represents the promoter or is a professional. According to the study, increasingly, controlling shareholders have used the company to steer personal interests sacrificing the interests of the company, mostly through abusive related-party transactions and remuneration.
Clearly the trend in India seems to be opposite to the one that Marriott has chosen. Professionalism seeks to be overshadowed by personal-interest in most of the Indian promoter-run companies. Family and self-interest takes precedence over merit and larger interests of stakeholders.
Is it surprising that if engagement of stakeholders also takes antithetical poles?
Thursday, May 23, 2013
Why people falter on the altar of morality?
When Rich and powerful, famous and iconic in some way, fall on the altar of morality we often wonder why? Sreesanth, Phaneesh Murthy are recent torch bearers of such homo sapiens. Why do they risk everything? Why do they play with fire, when they do not need to and knowing well that the same fire could annihilate everything else that they have built worth by any measure?
Sridevi KR in her ET article 'Why Icons Fall. It's the Power, Stupid'. attributes such behaviours to intoxication of Power. Power gives them a feeling of invincibility and also makes them more adventurous. In other words, those suggesting this theory seem to state that power creates a feeling within the person a certain sense of ‘I can get away with this, even if something goes wrong!’
Is this only power that corrupts the mind of the likes of Sreesanth and Phaneesh? In that case cases of immorality like gambling and misconduct must only be attributed to rich and powerful. No commoner should fall prey to such vice. But the real world presents a much different reality. Vices such as gambling and moral misdemeanors have been prevalent randomly across the social strata.
With charges still to be proved against both Sreesanth and Phaneesh, it may not be right to reach a conclusion that they wronged but assuming for some time that such charges are true, then can their acts be only attributed to them being rich, powerful, famous and iconic?
In fact, it may be a mistake to look at Sreesanth and Phaneesh case in the same light. While the case of Phaneesh seems to be inkling closer to the opinion of the experts. He enjoyed super power status within the company by the virtue of his CEO position. He was in an advantageous position rather a disadvantaged one. Plus there is no instance of him being wronged by anyone. Phaneesh may have taken advantage of his power and position.
However I feel that Sreesanth’s case gives an impression of high degree of Vulnerability of his state of mind. This is not to absolve him of the alleged mistake that he has done or to portray him as a victim. That vulnerability of his state of mind came from a variety of factors. Incidents like ‘slapgate’, him being treated indifferently in the dressing room all added to his vulnerability. It appears that his feeling of being ‘wronged’ by his team mates was very high. Probably it was also Sreesanth’s low ability to self-regulate his own self, as has been clear from his public behaviours on and off the ground. In fact some reports have suggested that bookies targeted him after watching him weeping uncontrollably on television after being slapped publicly by Harbhajan Singh. Hence unlike Phaneesh, Sreesanth had the perception of being ‘wronged’ and also unlike Phaneesh, Sreesanth did not enjoy any powerful position. He was neither captain of any team, nor a senior player, nor had a very successful run as a bowler on a consistent basis.
Sreesanth taking money for spot-fixing can be seen as any other employee committing a fraud in a company (Rajasthan Royals). In effect, many stakeholders, including the viewers, may have felt cheated. But Sreesanth intentional crime instead of being a case of power-play adventure like that of Phaneesh, is his vulnerable state of mind falling prey to larger sharks with larger ambitions and evil desires.
In short, while ‘Power ‘may create a feeling of invulnerability in the beholder, being ‘wronged’ and being ‘disadvantaged’ (lack of power to change the circumstances) may create a vulnerable state of mind among the beholder. Both can set-up a person to falter on the altar of morality.
Sridevi KR in her ET article 'Why Icons Fall. It's the Power, Stupid'. attributes such behaviours to intoxication of Power. Power gives them a feeling of invincibility and also makes them more adventurous. In other words, those suggesting this theory seem to state that power creates a feeling within the person a certain sense of ‘I can get away with this, even if something goes wrong!’
Is this only power that corrupts the mind of the likes of Sreesanth and Phaneesh? In that case cases of immorality like gambling and misconduct must only be attributed to rich and powerful. No commoner should fall prey to such vice. But the real world presents a much different reality. Vices such as gambling and moral misdemeanors have been prevalent randomly across the social strata.
With charges still to be proved against both Sreesanth and Phaneesh, it may not be right to reach a conclusion that they wronged but assuming for some time that such charges are true, then can their acts be only attributed to them being rich, powerful, famous and iconic?
In fact, it may be a mistake to look at Sreesanth and Phaneesh case in the same light. While the case of Phaneesh seems to be inkling closer to the opinion of the experts. He enjoyed super power status within the company by the virtue of his CEO position. He was in an advantageous position rather a disadvantaged one. Plus there is no instance of him being wronged by anyone. Phaneesh may have taken advantage of his power and position.
However I feel that Sreesanth’s case gives an impression of high degree of Vulnerability of his state of mind. This is not to absolve him of the alleged mistake that he has done or to portray him as a victim. That vulnerability of his state of mind came from a variety of factors. Incidents like ‘slapgate’, him being treated indifferently in the dressing room all added to his vulnerability. It appears that his feeling of being ‘wronged’ by his team mates was very high. Probably it was also Sreesanth’s low ability to self-regulate his own self, as has been clear from his public behaviours on and off the ground. In fact some reports have suggested that bookies targeted him after watching him weeping uncontrollably on television after being slapped publicly by Harbhajan Singh. Hence unlike Phaneesh, Sreesanth had the perception of being ‘wronged’ and also unlike Phaneesh, Sreesanth did not enjoy any powerful position. He was neither captain of any team, nor a senior player, nor had a very successful run as a bowler on a consistent basis.
Sreesanth taking money for spot-fixing can be seen as any other employee committing a fraud in a company (Rajasthan Royals). In effect, many stakeholders, including the viewers, may have felt cheated. But Sreesanth intentional crime instead of being a case of power-play adventure like that of Phaneesh, is his vulnerable state of mind falling prey to larger sharks with larger ambitions and evil desires.
In short, while ‘Power ‘may create a feeling of invulnerability in the beholder, being ‘wronged’ and being ‘disadvantaged’ (lack of power to change the circumstances) may create a vulnerable state of mind among the beholder. Both can set-up a person to falter on the altar of morality.
Friday, May 17, 2013
Talent Trumps Job Security
Despite the fact that for most Indian employees’ job security has emerged as the number one priority this year, ‘Talent’ is still reigning. Finding by Mercer Consultants show that talent is still not easy to retain.
“Employees are less happy with their jobs and the task to retain key performers is tougher than before", research by consulting firm Mercer confirms.
In other words, a valuable talent still does not need to worry about job security. They are secure in themselves, in their competencies.
At Microsoft, the talent strategy is built around two key stakeholders — high potentials (4% of the employees) and key talent (another 16% of employees).
In fact it is the companies that are insecure about their talent and are doing their best to retain them.
Recent business reports show that opportunity for new mothers to secure performance ratings during their six months' maternity leave (Citi India), grooming high potentials by having different benches — the emerging leader bench, leader bench, senior leader bench and executive leader bench (Microsoft India), succession planning, leadership development programmes from institutes like Michigan University and Harvard Business School and six-year long resource intensive "Emerging Leaders Program" for young talent (Mahindra & Mahindra), fostering a culture of idea-preneurship that enables employees to generate creative insights (HCL Technologies) are some of the strategies being put-in-place by companies to engage and retain talent.
A Talent was secure, is secure and will always be secure. Talent trumps Job Security.
“Employees are less happy with their jobs and the task to retain key performers is tougher than before", research by consulting firm Mercer confirms.
In other words, a valuable talent still does not need to worry about job security. They are secure in themselves, in their competencies.
At Microsoft, the talent strategy is built around two key stakeholders — high potentials (4% of the employees) and key talent (another 16% of employees).
In fact it is the companies that are insecure about their talent and are doing their best to retain them.
Recent business reports show that opportunity for new mothers to secure performance ratings during their six months' maternity leave (Citi India), grooming high potentials by having different benches — the emerging leader bench, leader bench, senior leader bench and executive leader bench (Microsoft India), succession planning, leadership development programmes from institutes like Michigan University and Harvard Business School and six-year long resource intensive "Emerging Leaders Program" for young talent (Mahindra & Mahindra), fostering a culture of idea-preneurship that enables employees to generate creative insights (HCL Technologies) are some of the strategies being put-in-place by companies to engage and retain talent.
A Talent was secure, is secure and will always be secure. Talent trumps Job Security.
Wednesday, May 15, 2013
Job Security - Number One priority of an Indian Employee
Job security is the first priority of an Indian employee. A very recent Towers Watson 2012 Global Workforce Study covering a majority of below-30 year olds revealed that job security ranks Number 1 when it comes to drivers of attraction, amongst Indian employees. This, in fact, is a lot more compared to other developing countries in the region. Job security amongst priorities stood at No. 2 in Hong Kong & Singapore, at No. 5 in China & Japan, while in Indonesia job security was not even in the consideration set. The global slowdown, listless economy and uncertain job markets seem to have taken their toll on the mindsets of young India Inc., which is increasingly valuing security above all else in prospective jobs. Other than job security, the top 5 parameters attracting India employees include career advancement opportunities, base pay/salary, learning and development opportunities and reputation of the organization as a place to work.
Why India?
Why is job-security such a major concern in India? Actually other powerful Asian economies are also not far-behind.
1. Slowdown and Looming Layoffs:
As many as four CFOS have put-in their papers and two have shifted to other roles abruptly in ther past few months, according to ET. CFOs leaving suddenly is bad news for investors and a very clear sign of slowdown. The slowdown in Indian economy has started to claim its casualties. One among the first have been the e-commerce companies who have issued marching orders to many of their employees. Among the companies sacking staff are Flipkart and Jabong, which are amongst the biggest in the business. Flipkart alone has cut about 10% of its workforce. Poor performance, cost-cutting pressures, M&As, heavy expenditure in acquiring new customers have been cited as main reasons for the layoffs.
Mutual Fund Industry in India is also hit badly. Some Fund Managers have taken as much as 30% cut in their fixed salary, others have only marginally increased and many have not received their joining bonus. Reliable business sources add that there is a tendency amongst Fund Managers to seek safety, over salaries and bonuses.
Most other industry sectors will follow the suit.
2. Growing economic uncertainty & Reshoring of jobs:
Economic uncertainties have shrunk jobs and in country like India the swarming graduates passing-out every year have not found their numbers matched-up by the number of openings.
Added to this, high unemployment rates and a consequent decline in wages in the US, combined with political pressure to create jobs locally, is pushing a growing number of American companies to reshore jobs (bring back jobs that were once offshored). The Harry Moser, founder of Reshoring Initiative, estimates on his website that 50,000 manufacturing jobs have been reshored to the US since January 2010. A Boston Consulting Group report last year estimated that a manufacturing revival in the US could bring in 5 million jobs by 2020.
3. The burgeoning Generation Y:
A British survey (UK's Office of National Statistics (ONS) has revealed that most Gen Y of the world reside in India. ONS compared UK's 90 and over population with India and China and found that while nearly 800 per 1 lakh population here were above 90 and above, the number stood at just 75 for India and 150 for China. India according to the list prepared by ONS is the youngest nation. A BPW Foundation’s Gen Y study published in April 2011 also noted that by 2025, Generation Y will make up roughly 75% of the world’s workforce. With this many millennial making up the majority of the workforce by 2025 — only 13 years away — employers can’t afford not to take notice.
What do these different findings, surveys done by organizations of repute, about India mean?
Put two and two together and the picture emerges that of an anxious Generation Y entering and about to enter the workforce in huge numbers. Their anxiety stems from the uncertainties amidst which they have grown-up and that threaten their stability. In fact Generation Y suffers from a strange paradox. They have been brought-up by their parents who have made them to believe that they can do possibly anything and achieve everything that’s worthy on this planet. However as the have approached their redeemable moment, the opportunities have simply vaporized! The result has been an anxiety about stability and sustenance. This has effectively replaced career advancement opportunities (the earlier number one priority) with job-security among Indian employees.
Why India?
Why is job-security such a major concern in India? Actually other powerful Asian economies are also not far-behind.
1. Slowdown and Looming Layoffs:
As many as four CFOS have put-in their papers and two have shifted to other roles abruptly in ther past few months, according to ET. CFOs leaving suddenly is bad news for investors and a very clear sign of slowdown. The slowdown in Indian economy has started to claim its casualties. One among the first have been the e-commerce companies who have issued marching orders to many of their employees. Among the companies sacking staff are Flipkart and Jabong, which are amongst the biggest in the business. Flipkart alone has cut about 10% of its workforce. Poor performance, cost-cutting pressures, M&As, heavy expenditure in acquiring new customers have been cited as main reasons for the layoffs.
Mutual Fund Industry in India is also hit badly. Some Fund Managers have taken as much as 30% cut in their fixed salary, others have only marginally increased and many have not received their joining bonus. Reliable business sources add that there is a tendency amongst Fund Managers to seek safety, over salaries and bonuses.
Most other industry sectors will follow the suit.
2. Growing economic uncertainty & Reshoring of jobs:
Economic uncertainties have shrunk jobs and in country like India the swarming graduates passing-out every year have not found their numbers matched-up by the number of openings.
Added to this, high unemployment rates and a consequent decline in wages in the US, combined with political pressure to create jobs locally, is pushing a growing number of American companies to reshore jobs (bring back jobs that were once offshored). The Harry Moser, founder of Reshoring Initiative, estimates on his website that 50,000 manufacturing jobs have been reshored to the US since January 2010. A Boston Consulting Group report last year estimated that a manufacturing revival in the US could bring in 5 million jobs by 2020.
3. The burgeoning Generation Y:
A British survey (UK's Office of National Statistics (ONS) has revealed that most Gen Y of the world reside in India. ONS compared UK's 90 and over population with India and China and found that while nearly 800 per 1 lakh population here were above 90 and above, the number stood at just 75 for India and 150 for China. India according to the list prepared by ONS is the youngest nation. A BPW Foundation’s Gen Y study published in April 2011 also noted that by 2025, Generation Y will make up roughly 75% of the world’s workforce. With this many millennial making up the majority of the workforce by 2025 — only 13 years away — employers can’t afford not to take notice.
What do these different findings, surveys done by organizations of repute, about India mean?
Put two and two together and the picture emerges that of an anxious Generation Y entering and about to enter the workforce in huge numbers. Their anxiety stems from the uncertainties amidst which they have grown-up and that threaten their stability. In fact Generation Y suffers from a strange paradox. They have been brought-up by their parents who have made them to believe that they can do possibly anything and achieve everything that’s worthy on this planet. However as the have approached their redeemable moment, the opportunities have simply vaporized! The result has been an anxiety about stability and sustenance. This has effectively replaced career advancement opportunities (the earlier number one priority) with job-security among Indian employees.
Tuesday, May 14, 2013
When People do not Work at 'Work'!
Ever wondered what people do at work, when they do not work. Well, a survey by a US jobs website on more than 1000 workers find out what people do at work when they are not actually working.
37% mostly waste time on news sites.
20% never visit non-work related sites.
14% on social media sites.
12% shopping online.
Biggest Distractions
19% - too many meetings.
17% inefficient team members.
17% - Co-workers.
13% - Office Politics.
13% - Busy Work.
8% - The Boss
11% - Others.
How much time wasted per day?
34% - 30 minutes or less each day.
24% - 30 minutes to 60 minutes.
21% - Slack off one or two times per week.
11% Several Hours.
10% Never
Unproductive Time of the Day
7-9 am – 15%
9-11 am – 10%
11 am -1 pm – 13%
1-3 pm – 16%
3-5 pm – 27%
Unproductive Days
Monday – 16%
Tuesday – 3%
Wednesday – 9%
Thursday – 6%
Friday – 43%
Corrective Measures
Almost one-third of respondents said that their boss addressed the issue by blocking access to som personal sites at work. However, more than half (52%) aren’t fazed, and are happy to get around any bans by using their smartphone or tablet.
If bans cannot correct the problem and make them more productive or less unproductive, then what can?
(Data Source: TOI, March 26, 2013, Pg. 15)
Thursday, May 9, 2013
Ego and Self-Respect
There is a thin line that divides ego and self-respect.
Those who are egoistic by nature, do not think twice before trampling on the
self-esteem of others. Conversely, those individuals with high-levels of
self-esteem always uphold the self-esteem of others. Therefore egoistic people
in their actions and words are completely oblivious of the damage that they
inflict on the self-esteem of the people that they deal with, talk with or work
with.
In the event of a boss-subordinate relationship this
equations worsens because now the ego is massaged by power-differential factor.
An egoistic boss is the worst thing that can happen to any employee. The result
is battered self-esteem of employees who report to him/her and severely dented
engagement.
Recently, some Intel workers secretly taped a "KickMe" sign to the back of a co-worker as a prank, then kicked the confused
man a number of times as employees at the Rio Rancho Intel plant laughed
hysterically at the episode. The workers who engaged in such act included a
senior staffer.
The employee who was target of this act reportedly wept on
his way back to home and was so embarrassed that he could not share the
incident with his wife.
Intel commendably swung into action promptly and showed the
erring employee the door. However the psychological damage that they would have
inflicted on the affected individual would be far greater. After all being
kicked by co-workers that includes a senior staffer and being subjected to
public jeering would be confidence-destroying.
The Intel employees, who engaged in this act, may have done
this as an act of vengeance or as a stray act of playing a practical joke, but
for sure their egos blinded them in upholding the self-esteem of their
co-worker.
I have said this before – there is nothing that prevents
anyone to treat an employee decently enough so as not to step-on his/her
self-esteem. While this may be one extreme incident, in many other workplaces,
many such egoistic peers and senior-workers continue to inflict wounds on the
self-esteem of their co-workers by their words and their actions. The dosages
may be smaller and less visible than the Intel incident, and hence may go
unreported or unnoticed. However repeat acts cumulatively inflict similar
damage.
Societies and families are not free from similar egoistic
individuals.
Engagement takes a big blow always!
Wednesday, May 8, 2013
Not the first time, Not the last time!
What happened yesterday has occurred many times before.
Inside the lift of a mall, we reached our destination floor
and as the lift door opened, we tried to step-out. However some 10 people
waiting outside to get into the lift, got the better of us and powered their
way-in before we could get out. With my seven year old son with me, I stood
like a kitten and only when all of them had got themselves inside that we could
step-out.
And I thought, it was an etiquette on part of the ‘boarders’
to let people step-out of the lift first! Isn't it so? Or have I been to the 'wrong school'?
Inside a huge store called Landmark with merchandise that ranged
from books to movie & music discs, Xbox, PS2 games, toys, sports gear,
mobile. We were quietly browsing the stuff that when someone shoved me with his
elbow from behind. I glanced at this casual shopper and serious ‘shover’. But
he was unrepentant. Forget about being apologetic, he did not even bother to
look at me.
Pushing, shoving is so damn common here! No one really cares
to apologize after that, as if it was your fault… and as if the ‘shover’ was
screaming - ’why you numskull why were you in my way? You deserve to get
the knock!
And finally in the lift to get into the parking slot! The
lift was packed and we were near the gate. The lift doors opened and as people
standing in front of me started to de-board, I felt the guy behind pushing me.
I stiffened my body and held my ground till I got a reasonable space to step-out.
People got out of the lift…and they got out in a fashion that I was not able to
locate who was the one who pushed me. Perhaps they all did! That my kid was
with me was also not enough reason for them not to exert their animal instincts!
And these are all supposed to be cultured educated people of
India! I was in a upmarket mall and that is what is generally presumed as
footfall! So I am not being too unrealistic in my supposition or am I? J
On the road, at the Uduppi junction, the signal is red. I
was on the wheels; the signal turned green and as I shifted gear to go,
hundreds of people honked from behind. Wow! Everyone had noticed the signal
turning green! And what split-second accuracy! People can’t even wait for me to
shift the gears, they honk before that!
Hey, how can be it their
fault? Was I not supposed to vanish as soon as the ‘green’ came-on?
What happened yesterday has occurred many times before...And I know all this is going to occur many times more...So its nothing new, but every time it is equally disgusting.
Wonder, why it happens! 'Culture', did I hear this word somewhere!
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