Credit Cards
When applying for a credit card it is always a good idea to know your personal credit score, since this will affect your ability to negotiate beneficial terms for your credit. If your credit score is poor – e.g. due to unpaid bills, a habit of paying your bills to late or an earlier filing for bankruptcy – you will most likely end up with a high interest credit card, if your application is accepted at all. If your credit card score is poor, it is therefore advisable to try to rebuild you credit score.
You might already have received a lot of different credit card offers through the mail, on the Internet or from credit card promoters in malls or on campuses. Simply choosing the credit card company that has the flashiest online commercial or the one that is handing out balloons at your local mall every Saturday may however not be the wisest decision. Always compare several credit card offers before you make up your mind. The credit card that is ideal for you friend might be highly unsuitable for you, your financial situation and your lifestyle. Do not only choose among the credit card companies that shower you in commercials and promotional gift. Instead, you should always contact your bank and ask about their credit card offers for long time customers. By applying for a credit card from a bank that knows your financial history and current economical situation you might be able to negotiate a better deal. This is however not a strict rule, and you should always compare the offer from your bank with offers from other credit card companies.
The credit card application will usually be sent to you by ordinary mail, since you need to sign it. Today, there is also the possibility to apply online or over the phone. Be very careful when you fill in a credit card application, regardless of if it is to be mailed, transmitted online or over the phone. You will share highly personal information in your application and you do not want this information to end up in the wrong hands. There are many examples of dishonest websites gathering personal information from unsuspecting individuals. This information is then used for fraudulent undertakings and can seriously harm your financial situation. In cases of severe identity theft, you could even face charges and it can take a long time to establish that you are in fact innocent and that someone else have been using your name, address, social security number etcetera.
Only fill out credit card applications for credit cards that you actually need. Filling out applications as a “test” or to get some promotional gizmo is unadvisable since each application will be noted on your personal credit record. Having a large amount of different credits can make creditors perceive you as a high risk person. Having a lot of different credit cards is also generally a bad idea, unless you know from experience that you are a very neat and organized person that will keep track of all your different debts regardless of how many credit cards you use. Only use several credit cards if you actually gain something from it.
Thursday, September 27, 2007
Resume for a job
Resume for a job
While one page resumes are surely nice to see, they are not always a rule. Once you’ve had one or two jobs, coupled with your credentials, education, professional affiliations, and so on, you’re easily on two pages. This is perfectly acceptable and very much the norm.
While you succeed in cramming more content in less space, you’re compromising on the readability of your resume and overloading the reader with too much information. If you have trouble reading your own resume, recruiters too will. A 12 – point type size and a one-inch margin all around is the norm. For extra space, you can slightly reduce the top and bottom margins or reduce the volume of information but never reduce type size or font.
Just about any resume even one used with success before can benefit from careful scrutiny and periodic revision. Your resume mirrors your career graph and should evolve as you do. In addition to acquiring new skills, experiences, and accomplishments, you may have shifted in your professional focus or interests. Perhaps you have gained insights into what employers are really looking for in your line of work.
Above all, your resume should be revised so that it is tailored to the employer who will receive it. Even if you have little to add in the way of content, you can always improve your resume by refocusing it on the specifics of the position you are seeking, and by strengthening its wording and overall appearance.
Objectives are fast becoming a thing of the past. Why? Because everyone’s objective says almost the same thing: "Looking for a position where I can use all my skills and experience in a challenging environment with opportunities for advancement where I can deliver high quality work"?. The sentence is vague and meaningless. And even if you provide specifics, you will need to modify your resume every time you look for another type of job. Mention your particular interests in your cover letter instead.
This is another interesting item that many of us seem to be attached to. In truth, if prospective employers want references, they will ask. Usually, it is understood that you will have references, which you will provide if asked. Eliminate it as a way to un-clutter your resume.
Don’t let misconceptions come in between your resume and your next important job opportunity. Much of resume writing style is based on hearsay rather than expert advice.
While one page resumes are surely nice to see, they are not always a rule. Once you’ve had one or two jobs, coupled with your credentials, education, professional affiliations, and so on, you’re easily on two pages. This is perfectly acceptable and very much the norm.
While you succeed in cramming more content in less space, you’re compromising on the readability of your resume and overloading the reader with too much information. If you have trouble reading your own resume, recruiters too will. A 12 – point type size and a one-inch margin all around is the norm. For extra space, you can slightly reduce the top and bottom margins or reduce the volume of information but never reduce type size or font.
Just about any resume even one used with success before can benefit from careful scrutiny and periodic revision. Your resume mirrors your career graph and should evolve as you do. In addition to acquiring new skills, experiences, and accomplishments, you may have shifted in your professional focus or interests. Perhaps you have gained insights into what employers are really looking for in your line of work.
Above all, your resume should be revised so that it is tailored to the employer who will receive it. Even if you have little to add in the way of content, you can always improve your resume by refocusing it on the specifics of the position you are seeking, and by strengthening its wording and overall appearance.
Objectives are fast becoming a thing of the past. Why? Because everyone’s objective says almost the same thing: "Looking for a position where I can use all my skills and experience in a challenging environment with opportunities for advancement where I can deliver high quality work"?. The sentence is vague and meaningless. And even if you provide specifics, you will need to modify your resume every time you look for another type of job. Mention your particular interests in your cover letter instead.
This is another interesting item that many of us seem to be attached to. In truth, if prospective employers want references, they will ask. Usually, it is understood that you will have references, which you will provide if asked. Eliminate it as a way to un-clutter your resume.
Don’t let misconceptions come in between your resume and your next important job opportunity. Much of resume writing style is based on hearsay rather than expert advice.
TRAINING AIDS AND ADVANTAGES – EMPLOYEE TRAINING
TRAINING AIDS AND ADVANTAGES – EMPLOYEE TRAINING
Films, Slides, Projectors, Movies, Stills
Charts, Graphs, Flash Cards, Flannel Boards, Pictograms
Pamphlets, Brochures, Handbooks, Manuals
Libraries and Reading Rooms
Teaching Machines, Closed Circuit TV.
Exhibits ,Posters and Displays.
Notice Boards, Bulletin Boards, Enlarged Drawings.
Cartoons, Comic Books, Books.
Follow –up
The final step in most training procedures is that of follow-up .When people are involved in any problem or procedure,it is unwise to assume that things are always constant.Follow-up can be adopted to a variable reinforcement schedule in the discussion of learning principles .The follow-up system should provide feed-back on training effectiveness and on total value of training system shown below
Advantages of Training
The contribution of imparting training to a company should be readily apparent .The major values are:
1.Increased Productivity: An increase in skill usually results in an increment in both quality and quantity of output. However, the increasingly technical nature of modern jobs demands systematic training to make possible even minimum levels of accomplishment.
2.Heightened Morale: Possession of needed skills help to meet such basic human needs as security and ego satisfaction .Collaborate personnel and human relations programs can make a contribution toward morale ,but they are hollow shells if there is no solid core of meaningful work down with knowledge , skill and pride
3.Reduced Supervision The trained employee is one who can perform with limited supervision. Both employee and supervisor want less supervision but greater independence is not possible unless the employee is adequately trained.
4.Reduced Accidents: More accidents are caused by deficiencies in people than by deficiencies in equipment and working conditions. Proper training in both job skills and safety attitudes should contribute toward a reduction in the accident rate.
5.Increased Organizational Stability: The ability of an organization to sustain its effectiveness despite the loss of key personnel , can be developed only through creation of a reservoir of employees. Flexibility , the ability to adjust to short-run variations in the volume of work requires personnel with multiple skills to permit their transfer to jobs where the demand is highest.
Films, Slides, Projectors, Movies, Stills
Charts, Graphs, Flash Cards, Flannel Boards, Pictograms
Pamphlets, Brochures, Handbooks, Manuals
Libraries and Reading Rooms
Teaching Machines, Closed Circuit TV.
Exhibits ,Posters and Displays.
Notice Boards, Bulletin Boards, Enlarged Drawings.
Cartoons, Comic Books, Books.
Follow –up
The final step in most training procedures is that of follow-up .When people are involved in any problem or procedure,it is unwise to assume that things are always constant.Follow-up can be adopted to a variable reinforcement schedule in the discussion of learning principles .The follow-up system should provide feed-back on training effectiveness and on total value of training system shown below
Advantages of Training
The contribution of imparting training to a company should be readily apparent .The major values are:
1.Increased Productivity: An increase in skill usually results in an increment in both quality and quantity of output. However, the increasingly technical nature of modern jobs demands systematic training to make possible even minimum levels of accomplishment.
2.Heightened Morale: Possession of needed skills help to meet such basic human needs as security and ego satisfaction .Collaborate personnel and human relations programs can make a contribution toward morale ,but they are hollow shells if there is no solid core of meaningful work down with knowledge , skill and pride
3.Reduced Supervision The trained employee is one who can perform with limited supervision. Both employee and supervisor want less supervision but greater independence is not possible unless the employee is adequately trained.
4.Reduced Accidents: More accidents are caused by deficiencies in people than by deficiencies in equipment and working conditions. Proper training in both job skills and safety attitudes should contribute toward a reduction in the accident rate.
5.Increased Organizational Stability: The ability of an organization to sustain its effectiveness despite the loss of key personnel , can be developed only through creation of a reservoir of employees. Flexibility , the ability to adjust to short-run variations in the volume of work requires personnel with multiple skills to permit their transfer to jobs where the demand is highest.
Indian stock market
Indian stock market
The working of stock exchanges in India started in 1875. BSE is the oldest stock market in India. The history of Indian stock trading starts with 318 persons taking membership in Native Share and Stock Brokers Association, which we now know by the name Bombay Stock Exchange or BSE in short. In 1965, BSE got permanent recognition from the Government of India. National Stock Exchange comes second to BSE in terms of popularity. BSE and NSE represent themselves as synonyms of Indian stock market. The history of Indian stock market is almost the same as the history of BSE.
The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex is compiled based on the performance of the stocks of 30 financially sound benchmark companies. In 1990 the BSE crossed the 1000 mark for the first time. It crossed 2000, 3000 and 4000 figures in 1992. The reason for such huge surge in the stock market was the liberal financial policies announced by the then financial minister Dr. Man Mohan Singh.
The up-beat mood of the market was suddenly lost with Harshad Mehta scam. It came to public knowledge that Mr. Mehta, also known as the big-bull of Indian stock market diverted huge funds from banks through fraudulent means. He played with 270 million shares of about 90 companies. Millions of small-scale investors became victims to the fraud as the Sensex fell flat shedding 570 points.
To prevent such frauds, the Government formed The Securities and Exchange Board of India, through an Act in 1992. SEBI is the statutory body that controls and regulates the functioning of stock exchanges, brokers, sub-brokers, portfolio managers investment advisors etc. SEBI oblige several rigid measures to protect the interest of investors. Now with the inception of online trading and daily settlements the chances for a fraud is nil, says top officials of SEBI.
Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark was crossed in June and the 8000 mark on September 8 in 2005. Many foreign institutional investors (FII) are investing in Indian stock markets on a very large scale. The liberal economic policies pursued by successive Governments attracted foreign institutional investors to a large scale. Experts now believe the sensex can soar past 14000 mark before 2010.
The unpredictable behavior of the market gave it a tag – ‘a volatile market.’ The factors that affected the market in the past were good monsoon, Bharatiya Janatha Party’s rise to power etc. The result of a cricket match between India and Pakistan also affected the movements in Indian stock market. The National Democratic Alliance led by BJP, during 2004 public elections unsuccessfully tried to ride on the market sentiments to power. NDA was voted out of power and the sensex recorded the biggest fall in a day amidst fears that the Congress-Communist coalition would stall economic reforms. Later prime minister Man Mohan Singh’s assurance of ‘reforms with a human face’ cast off the fears and market reacted sharply to touch the highest ever mark of 8500.
India, after United States hosts the largest number of listed companies. Global investors now ardently seek India as their preferred location for investment. Once viewed with skepticism, stock market now appeals to middle class Indians also. Many Indians working in foreign countries now divert their savings to stocks. This recent phenomenon is the result of opening up of online trading and diminished interest rates from banks. The stockbrokers based in India are opening offices in different countries mainly to cater the needs of Non Resident Indians. The time factor also works for the NRIs. They can buy or sell stock online after returning from their work places.
The recent incidents that led to growing interest among Indian middle class are the initial public offers announced by Tata Consultancy Services, Maruti Udyog Limited, ONGC and big names like that. Good monsoons always raise the market sentiments. A good monsoon means improved agricultural produce and more spending capacity among rural folk. The bullish run of the stock market can be associated with a steady growth of around 6% in GDP, the growth of Indian companies to MNCs, large potential of growth in the fields of telecommunication, mass media, education, tourism and IT sectors backed by economic reforms ensure that Indian stock market continues its bull run.
The working of stock exchanges in India started in 1875. BSE is the oldest stock market in India. The history of Indian stock trading starts with 318 persons taking membership in Native Share and Stock Brokers Association, which we now know by the name Bombay Stock Exchange or BSE in short. In 1965, BSE got permanent recognition from the Government of India. National Stock Exchange comes second to BSE in terms of popularity. BSE and NSE represent themselves as synonyms of Indian stock market. The history of Indian stock market is almost the same as the history of BSE.
The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex is compiled based on the performance of the stocks of 30 financially sound benchmark companies. In 1990 the BSE crossed the 1000 mark for the first time. It crossed 2000, 3000 and 4000 figures in 1992. The reason for such huge surge in the stock market was the liberal financial policies announced by the then financial minister Dr. Man Mohan Singh.
The up-beat mood of the market was suddenly lost with Harshad Mehta scam. It came to public knowledge that Mr. Mehta, also known as the big-bull of Indian stock market diverted huge funds from banks through fraudulent means. He played with 270 million shares of about 90 companies. Millions of small-scale investors became victims to the fraud as the Sensex fell flat shedding 570 points.
To prevent such frauds, the Government formed The Securities and Exchange Board of India, through an Act in 1992. SEBI is the statutory body that controls and regulates the functioning of stock exchanges, brokers, sub-brokers, portfolio managers investment advisors etc. SEBI oblige several rigid measures to protect the interest of investors. Now with the inception of online trading and daily settlements the chances for a fraud is nil, says top officials of SEBI.
Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark was crossed in June and the 8000 mark on September 8 in 2005. Many foreign institutional investors (FII) are investing in Indian stock markets on a very large scale. The liberal economic policies pursued by successive Governments attracted foreign institutional investors to a large scale. Experts now believe the sensex can soar past 14000 mark before 2010.
The unpredictable behavior of the market gave it a tag – ‘a volatile market.’ The factors that affected the market in the past were good monsoon, Bharatiya Janatha Party’s rise to power etc. The result of a cricket match between India and Pakistan also affected the movements in Indian stock market. The National Democratic Alliance led by BJP, during 2004 public elections unsuccessfully tried to ride on the market sentiments to power. NDA was voted out of power and the sensex recorded the biggest fall in a day amidst fears that the Congress-Communist coalition would stall economic reforms. Later prime minister Man Mohan Singh’s assurance of ‘reforms with a human face’ cast off the fears and market reacted sharply to touch the highest ever mark of 8500.
India, after United States hosts the largest number of listed companies. Global investors now ardently seek India as their preferred location for investment. Once viewed with skepticism, stock market now appeals to middle class Indians also. Many Indians working in foreign countries now divert their savings to stocks. This recent phenomenon is the result of opening up of online trading and diminished interest rates from banks. The stockbrokers based in India are opening offices in different countries mainly to cater the needs of Non Resident Indians. The time factor also works for the NRIs. They can buy or sell stock online after returning from their work places.
The recent incidents that led to growing interest among Indian middle class are the initial public offers announced by Tata Consultancy Services, Maruti Udyog Limited, ONGC and big names like that. Good monsoons always raise the market sentiments. A good monsoon means improved agricultural produce and more spending capacity among rural folk. The bullish run of the stock market can be associated with a steady growth of around 6% in GDP, the growth of Indian companies to MNCs, large potential of growth in the fields of telecommunication, mass media, education, tourism and IT sectors backed by economic reforms ensure that Indian stock market continues its bull run.
Organizations must be family friendly
Organizations must be family friendly
Employees today are asking for a workplace that helps them balance the demands of their work and family lives, rather than forcing them to choose one over the other. Organizations have also accepted that among the many other aspirations of employees, the most important is one that seeks to be able to ‘provide well’ for their families Amongst the many schemes that organizations have introduced for their employees, having special schemes for their children is the latest addition. While some are offering various schemes like scholarships, medical benefits, and training some young kids to accompany their mothers to work. Many organizations boast of instances where they have gone out of their way to extend special help to the child of a particular employee.
At NIIT, one would witness various examples of how these commitments have been actually put into practice. Little NIITian is a special name given to the kids of NIITians (read: employees), who are a special part of NIIT. The company’s ‘calendar’ is dotted with many fun activities which encourage active participation from these little ones. No matter what the occasion, if it touches and concerns a NIITians or his / her family, the company tries to be a part of it. Amongst the many schemes which the company offers towards employee welfare, the one which was found most special was the one wherein on the birth of a little NIITian, the company contributes a sum as investment in the name of the new born. NIIT also has schemes like ‘Little NIITian Care Leave (LNCL)’ under which, the NIITians can avail half time working hours on half pay, to take care of a child at home. The leave can be utilized for a maximum of six months period for half days till the child is one year old.
High expectation levels, increasing attrition rates and increasing demand for work life balance has forced organizations to look beyond run of the mill HR interventions. Objective is to create ‘Home away from Home’, an atmosphere where the basic needs of employees are met and they don’t have to be bothered about the daily routine tasks. Under the ‘Child Care Support’ scheme that the company offers, crèches, workplace nurseries, out-of-school care, holiday play schemes and after school clubs are included Similarly, Cellebrum proposes to have scholarship programs, wherein the child of a meritorious and tenured employee with good academic records will be given scholarship fees based on the company’s policy. “Cellebrum has already initiated tie ups with various schools / institutes to take care of the child’s admission at the time of relocation. There is also a ‘Career Counseling Cell’ which provides in-house career counseling options for children of employees.
Amongst the various schemes that 24/7 Customer has initiated for the families of its employees, some of the most prominent ones include ‘Family insurance Scheme’, ‘Employee Welfare Fund’,’ Family Oriented Reward Program’, ‘Reward & Recognition,’ ‘Parents Day’ and ‘Daycare Centre’. 24/7 Customer is the only BPO in India to provide extended insurance to the employee and their families (employee plus four dependents). Under the ‘Employee Welfare Fund’, employees in any kind of medical emergency or need can avail it as a loan. There are instances when one of the family members of an employee had to undergo a major surgery and the amount from this scheme proved to be very helpful. Every month, on Parents Day, the family members of employees are invited to spend a day with their children/spouse/sibling.
Employees today are asking for a workplace that helps them balance the demands of their work and family lives, rather than forcing them to choose one over the other. Organizations have also accepted that among the many other aspirations of employees, the most important is one that seeks to be able to ‘provide well’ for their families Amongst the many schemes that organizations have introduced for their employees, having special schemes for their children is the latest addition. While some are offering various schemes like scholarships, medical benefits, and training some young kids to accompany their mothers to work. Many organizations boast of instances where they have gone out of their way to extend special help to the child of a particular employee.
At NIIT, one would witness various examples of how these commitments have been actually put into practice. Little NIITian is a special name given to the kids of NIITians (read: employees), who are a special part of NIIT. The company’s ‘calendar’ is dotted with many fun activities which encourage active participation from these little ones. No matter what the occasion, if it touches and concerns a NIITians or his / her family, the company tries to be a part of it. Amongst the many schemes which the company offers towards employee welfare, the one which was found most special was the one wherein on the birth of a little NIITian, the company contributes a sum as investment in the name of the new born. NIIT also has schemes like ‘Little NIITian Care Leave (LNCL)’ under which, the NIITians can avail half time working hours on half pay, to take care of a child at home. The leave can be utilized for a maximum of six months period for half days till the child is one year old.
High expectation levels, increasing attrition rates and increasing demand for work life balance has forced organizations to look beyond run of the mill HR interventions. Objective is to create ‘Home away from Home’, an atmosphere where the basic needs of employees are met and they don’t have to be bothered about the daily routine tasks. Under the ‘Child Care Support’ scheme that the company offers, crèches, workplace nurseries, out-of-school care, holiday play schemes and after school clubs are included Similarly, Cellebrum proposes to have scholarship programs, wherein the child of a meritorious and tenured employee with good academic records will be given scholarship fees based on the company’s policy. “Cellebrum has already initiated tie ups with various schools / institutes to take care of the child’s admission at the time of relocation. There is also a ‘Career Counseling Cell’ which provides in-house career counseling options for children of employees.
Amongst the various schemes that 24/7 Customer has initiated for the families of its employees, some of the most prominent ones include ‘Family insurance Scheme’, ‘Employee Welfare Fund’,’ Family Oriented Reward Program’, ‘Reward & Recognition,’ ‘Parents Day’ and ‘Daycare Centre’. 24/7 Customer is the only BPO in India to provide extended insurance to the employee and their families (employee plus four dependents). Under the ‘Employee Welfare Fund’, employees in any kind of medical emergency or need can avail it as a loan. There are instances when one of the family members of an employee had to undergo a major surgery and the amount from this scheme proved to be very helpful. Every month, on Parents Day, the family members of employees are invited to spend a day with their children/spouse/sibling.
Multinational Corporations
Multinational Corporations
Multinational corporations (MNCs) have their headquarters in one country but their operations are in many countries. Of the ten largest multinational industrial corporations, ranked by 1985 sales, eight are American. The ten are (1) General Motors, (2) Exxon, (3) Royal Dutch / Shell Group (Dutch-English), (4) Mobil, (5) British Petroleum (English), (6) Ford Motor Company, (7) International Business Machines (IBM), (8) Texaco (9) Chevron, and (10) American Telephone and Telegraph.
In its early stages, international business was conducted with an ethnocentric outlook; that is, the orientation and type of operation was based on that of the parent company. The polycentric attitude, on the other hand, is based on the notion that it is best to give foreign subsidiaries, staffed by local nationals, a great deal of managerial freedom. It is assumed that nationals have the best understanding of the local environment. Region-centric orientation favors the staffing of foreign operations on a regional basis. Thus, a European view may be composed of British, French, German, and Italian influences. The modern multinational corporation has a geocentric orientation. This means that the total organization is viewed as an interdependent system operating in many countries. The relationships between headquarters and subsidiaries are collaborative, with communication flowing in both directions. Further more key positions are filled by managers of different nationalities. In short, the orientation of the multi-national corporation is truly and goes beyond a narrow nationalistic view point.
Multinational corporations have several advantages over firms that have a domestic orientation. Obviously, the MNC can take advantage of business opportunities in many different countries. It can also raise money for its operations throughout the world. Moreover, multinational firms benefit by being able to establish production facilities in countries where their products can be produced most effectively and efficiently. Companies with worldwide sometimes have access to natural resources and material that may not be available to domestic firms. Finally, the large MNCs can recruit management and personnel from a world wide labor pool.
Despite the increasing competition and the cost advantages of some foreign corporations, a number of US companies have done very well in the international environment.
Fortune studied a number of large companies that earn more than 20% of their revenues from overseas operations. The reasons for the success of these firms differ greatly. IBM’s size makes it possible to dominate the market. Coca-Cola is very adept at opening up new markets rather rapidly. McDonald’s on the other hand, does not rush into the market but carefully assesses the potential for success. Hewlett Packard and Boeing bring foreign managers to the United States to expose them to their organizational culture.
The MNCs that were studied structure their organization very carefully to suit the needs of each individual country. In addition, these firms are flexible in their product design and marketing. It should also be noted that the operations abroad were largely managed by foreign nationals.
Managerial Functions in International Business:
Evidence shows that management fundamentals may be applicable in different countries. However, the practice of carrying out the managerial functions of planning, organizing, staffing, leading, and controlling differs considerably in domestic and international enterprises.
Planning requires setting objectives and then selecting strategies, policies, programs, and procedures for achieving them. A critically important activity for the MNC is the assessment of opportunities and threats in the external environment. This is a complex task even for a domestic enterprise, but it becomes much intricate when many different, ever changing world markets must be scanned.
External threats and opportunities must be matched with the internal strengths and weakness of the firm. For example, a poor educational system makes it difficult to find qualified personnel. Similarly, cultural orientation towards time will affect planning. Specifically, cultural attitudes that emphasize a short time perspective will not be conducive to long range planning. Finally, political and economic instability in a country makes it difficult to forecast and will discourage long term commitment of resources.
Multinational corporations (MNCs) have their headquarters in one country but their operations are in many countries. Of the ten largest multinational industrial corporations, ranked by 1985 sales, eight are American. The ten are (1) General Motors, (2) Exxon, (3) Royal Dutch / Shell Group (Dutch-English), (4) Mobil, (5) British Petroleum (English), (6) Ford Motor Company, (7) International Business Machines (IBM), (8) Texaco (9) Chevron, and (10) American Telephone and Telegraph.
In its early stages, international business was conducted with an ethnocentric outlook; that is, the orientation and type of operation was based on that of the parent company. The polycentric attitude, on the other hand, is based on the notion that it is best to give foreign subsidiaries, staffed by local nationals, a great deal of managerial freedom. It is assumed that nationals have the best understanding of the local environment. Region-centric orientation favors the staffing of foreign operations on a regional basis. Thus, a European view may be composed of British, French, German, and Italian influences. The modern multinational corporation has a geocentric orientation. This means that the total organization is viewed as an interdependent system operating in many countries. The relationships between headquarters and subsidiaries are collaborative, with communication flowing in both directions. Further more key positions are filled by managers of different nationalities. In short, the orientation of the multi-national corporation is truly and goes beyond a narrow nationalistic view point.
Multinational corporations have several advantages over firms that have a domestic orientation. Obviously, the MNC can take advantage of business opportunities in many different countries. It can also raise money for its operations throughout the world. Moreover, multinational firms benefit by being able to establish production facilities in countries where their products can be produced most effectively and efficiently. Companies with worldwide sometimes have access to natural resources and material that may not be available to domestic firms. Finally, the large MNCs can recruit management and personnel from a world wide labor pool.
Despite the increasing competition and the cost advantages of some foreign corporations, a number of US companies have done very well in the international environment.
Fortune studied a number of large companies that earn more than 20% of their revenues from overseas operations. The reasons for the success of these firms differ greatly. IBM’s size makes it possible to dominate the market. Coca-Cola is very adept at opening up new markets rather rapidly. McDonald’s on the other hand, does not rush into the market but carefully assesses the potential for success. Hewlett Packard and Boeing bring foreign managers to the United States to expose them to their organizational culture.
The MNCs that were studied structure their organization very carefully to suit the needs of each individual country. In addition, these firms are flexible in their product design and marketing. It should also be noted that the operations abroad were largely managed by foreign nationals.
Managerial Functions in International Business:
Evidence shows that management fundamentals may be applicable in different countries. However, the practice of carrying out the managerial functions of planning, organizing, staffing, leading, and controlling differs considerably in domestic and international enterprises.
Planning requires setting objectives and then selecting strategies, policies, programs, and procedures for achieving them. A critically important activity for the MNC is the assessment of opportunities and threats in the external environment. This is a complex task even for a domestic enterprise, but it becomes much intricate when many different, ever changing world markets must be scanned.
External threats and opportunities must be matched with the internal strengths and weakness of the firm. For example, a poor educational system makes it difficult to find qualified personnel. Similarly, cultural orientation towards time will affect planning. Specifically, cultural attitudes that emphasize a short time perspective will not be conducive to long range planning. Finally, political and economic instability in a country makes it difficult to forecast and will discourage long term commitment of resources.
Overcoming Office irritations
Overcoming Office irritations
Employees of some companies have to face unfortunate situations to be working in a company where on the pretence of providing a better work life, all the employer does is serve a birthday cake or allows a 15 minute break in the recreation room daily.
Well, practices may not be bad, but they will definitely not turn ones workplace a place where one wants to be for a long time. If one loves what he is doing and want to continue in the same place for a long time, then here are few things one can try to make to be happy at work.
An employee must get himself assigned to a project. He can go to his boss and suggest a project of his interest and which will further enhance company’s progress as well. If one loves talking to people, a research project can be suggested.
An employee can tell the employer that to keep ahead of competitors he wants to do research and find out the need of customers and solution to solve their problems. This will give a chance to step out and speak to people and the employee can interact with people on line or simply get busy on the telephone or go and meet them.
Sometimes it is just not the day when one feels like going to work. If that’s the case and if ones work permits then all one has to do is work from home. Do the work in the same fashion as watching TV or play with ones child and send in reports twice in a day. If ones boss resists, explain that this style of working is helping him get the work done efficiently and could not attend work because of minor health problem.
Jump into multi tasking: If one does not like some aspects of his job, then he can try to find out if one can exchange his assignments with a colleague with mutual consent and employer’s permission. Weakness of an individual can be someone else’s strength and vice-a-versa. By exchanging job assignments the work is done efficiently while both the colleague and the employer can be happy with the results.
An individual’s colleagues at work must know that he enjoys listening to others and likes to help them. One will find that there are many at his workplace who will appreciate an ear where they can unburden their worries and take a breather. This will enable him to get a whole hearted cooperation from all his colleagues at the work place and he can discharge his duties not only successfully but much faster.
One never knows but he may end up making a close friend in the deal and find himself enjoying at work. Take the newfound friend to lunch or catch up for a drink after work. This will help one unwind and relax.
Change work environment makes an employee feel more like home and he will enjoy working at his desk or cubicle for eight hours. Adding colors, pictures or favorite items to work-desk energize him and give positive vibes, helping to do the job to the best of ones ability.
And, if after doing all this one is still unhappy at work maybe it’s time to look for a new job.
Changing a job is possible up to certain age and beyond that companies may not be in a position to absorb experienced people until and unless they are being considered for a top management positions. If a senior person is having professional reputation he can soung a few consultants indicating his desire to change that too it becomes essential. Otherwise a senior management person must have the art of getting along under all circumstances in the work environment. Otherwise he would not have reached that position at all. The organization under normal circumstances would not like to lose any top level person say a General Manager or Executive director. But for the junior and middle management cadres we have suggested tackiling the problems in the above paragraphs.
Employees of some companies have to face unfortunate situations to be working in a company where on the pretence of providing a better work life, all the employer does is serve a birthday cake or allows a 15 minute break in the recreation room daily.
Well, practices may not be bad, but they will definitely not turn ones workplace a place where one wants to be for a long time. If one loves what he is doing and want to continue in the same place for a long time, then here are few things one can try to make to be happy at work.
An employee must get himself assigned to a project. He can go to his boss and suggest a project of his interest and which will further enhance company’s progress as well. If one loves talking to people, a research project can be suggested.
An employee can tell the employer that to keep ahead of competitors he wants to do research and find out the need of customers and solution to solve their problems. This will give a chance to step out and speak to people and the employee can interact with people on line or simply get busy on the telephone or go and meet them.
Sometimes it is just not the day when one feels like going to work. If that’s the case and if ones work permits then all one has to do is work from home. Do the work in the same fashion as watching TV or play with ones child and send in reports twice in a day. If ones boss resists, explain that this style of working is helping him get the work done efficiently and could not attend work because of minor health problem.
Jump into multi tasking: If one does not like some aspects of his job, then he can try to find out if one can exchange his assignments with a colleague with mutual consent and employer’s permission. Weakness of an individual can be someone else’s strength and vice-a-versa. By exchanging job assignments the work is done efficiently while both the colleague and the employer can be happy with the results.
An individual’s colleagues at work must know that he enjoys listening to others and likes to help them. One will find that there are many at his workplace who will appreciate an ear where they can unburden their worries and take a breather. This will enable him to get a whole hearted cooperation from all his colleagues at the work place and he can discharge his duties not only successfully but much faster.
One never knows but he may end up making a close friend in the deal and find himself enjoying at work. Take the newfound friend to lunch or catch up for a drink after work. This will help one unwind and relax.
Change work environment makes an employee feel more like home and he will enjoy working at his desk or cubicle for eight hours. Adding colors, pictures or favorite items to work-desk energize him and give positive vibes, helping to do the job to the best of ones ability.
And, if after doing all this one is still unhappy at work maybe it’s time to look for a new job.
Changing a job is possible up to certain age and beyond that companies may not be in a position to absorb experienced people until and unless they are being considered for a top management positions. If a senior person is having professional reputation he can soung a few consultants indicating his desire to change that too it becomes essential. Otherwise a senior management person must have the art of getting along under all circumstances in the work environment. Otherwise he would not have reached that position at all. The organization under normal circumstances would not like to lose any top level person say a General Manager or Executive director. But for the junior and middle management cadres we have suggested tackiling the problems in the above paragraphs.
Interviews can reveal candidates’ market value
Interviews can reveal candidates’ market value
Interviewing for a new job can reveal the true market value of an individual’s skills and experience—if he is well prepared to negotiate his salary
Everybody loves a good pay hike. Since he is highly unlikely to get as many increments in a year as he may like, he might consider switching jobs. He may figure that a new employer would value him more, and send off a resume. How well prepared will he be when it’s time to talk about money?
The interview is going the individual’s way, and he is able to impress everyone. Then the human resource (HR) manager shoots the big question: how much remuneration he is expecting? Usually, money is discussed only when the interview reaches the negotiation stage.
The candidate’s answer to that question can make or break the deal. HR managers believe it’s a loaded question. During the negotiation stage, managers rate him for individual personal qualities on the basis of the remuneration he demands. While the individual is justifying his demand, the managers are assessing his mindset towards money, as well as rating his knowledge, self-assurance and understanding of the current demand-supply scenario for jobs in the industry.
How much to ask for? In most people-oriented industries where retaining employees is tough, a hike of 25-30% above an individual previous salary is acceptable. Yet HR managers are not necessarily put off by interviewees who ask for more than the industry norm.
It is expected the interviewee to have given good thought about how much his paycheck should be. People should be asking for remuneration according to their abilities, liabilities and future goals. Their salaries should help them move forward in life.
Their demand will not always be in tandem with industry standards, but that should not deter them from asking what they think they deserve. Lying about an individual’s previous salary is not at all recommended in fact prohibited. Many people resort to this, since the higher salary at the new job would be based on the previous salary. Not only is lying legally and morally unacceptable, but it is also unlikely to work if he is seeking to switch to a reputed company. For most companies, it is now the norm to ask for an individual previous salary slip, Form 16, and reference letters from people in the individual’s field of work.
Some multinationals in fields like real estate, where salaries are sky-high, even hiring a third party investigator to check on the credentials of new recruits. In such a scenario, an individual’s best option and one that is legally unimpeachable is to switch jobs after getting an increment at his old job. Salary structure today is decided on a “cost to company” basis. This means companies look at the total expenses they would incur on an employee which include medical expenses, leave travel allowance, and sometimes even office space.
Trying to decipher exactly how much cash will actually flow into an individual hands may seem confusing at first glance, as he run down the list of sub-heads like car fuel, entertainment, attire, and other allowances. It is, of course, a good idea to make the effort to understand the salary structure. But if he really wants to save all the fretting, let the new employer know the “take home” that he would like each month.
Leave the fine tuning to the accounts department. Tax benefits Interaction with the accounts department, however, is inevitable, because a candidate needs to know the tax implications of his salary. Employees are often so engrossed in their jobs that they forget to inform the accounts department about their investments, home loans, and so on. Then they get a surprise when they see the tax deductions in their first paycheck.
When a individual joins a new company, he needs to declare the tax benefits he is eligible for. Proof of those investments can come later, so long as it is before the end of the financial year. Cash in hand depends on ones ever growing needs— a house, a car, a better lifestyle. Having more cash in hand is becoming an imperative, leading to a new trend among employees to prefer cash in hand, rather than gratuity and provident fund (PF) contributions by the employer.
Employee stock ownership plans have lost some of their allure, because of the fringe benefit tax on the profit, starting from this year. This is paving the way for higher take-home salaries.
There is more good than bad in going for interviews. Interviews that reach the monetary negotiations stage enable one to know his market value. Some interviewees may go ahead and accept the offer for a new job. And others will use their new-found market value to get that elusive pay hike from their existing company.
Interviewing for a new job can reveal the true market value of an individual’s skills and experience—if he is well prepared to negotiate his salary
Everybody loves a good pay hike. Since he is highly unlikely to get as many increments in a year as he may like, he might consider switching jobs. He may figure that a new employer would value him more, and send off a resume. How well prepared will he be when it’s time to talk about money?
The interview is going the individual’s way, and he is able to impress everyone. Then the human resource (HR) manager shoots the big question: how much remuneration he is expecting? Usually, money is discussed only when the interview reaches the negotiation stage.
The candidate’s answer to that question can make or break the deal. HR managers believe it’s a loaded question. During the negotiation stage, managers rate him for individual personal qualities on the basis of the remuneration he demands. While the individual is justifying his demand, the managers are assessing his mindset towards money, as well as rating his knowledge, self-assurance and understanding of the current demand-supply scenario for jobs in the industry.
How much to ask for? In most people-oriented industries where retaining employees is tough, a hike of 25-30% above an individual previous salary is acceptable. Yet HR managers are not necessarily put off by interviewees who ask for more than the industry norm.
It is expected the interviewee to have given good thought about how much his paycheck should be. People should be asking for remuneration according to their abilities, liabilities and future goals. Their salaries should help them move forward in life.
Their demand will not always be in tandem with industry standards, but that should not deter them from asking what they think they deserve. Lying about an individual’s previous salary is not at all recommended in fact prohibited. Many people resort to this, since the higher salary at the new job would be based on the previous salary. Not only is lying legally and morally unacceptable, but it is also unlikely to work if he is seeking to switch to a reputed company. For most companies, it is now the norm to ask for an individual previous salary slip, Form 16, and reference letters from people in the individual’s field of work.
Some multinationals in fields like real estate, where salaries are sky-high, even hiring a third party investigator to check on the credentials of new recruits. In such a scenario, an individual’s best option and one that is legally unimpeachable is to switch jobs after getting an increment at his old job. Salary structure today is decided on a “cost to company” basis. This means companies look at the total expenses they would incur on an employee which include medical expenses, leave travel allowance, and sometimes even office space.
Trying to decipher exactly how much cash will actually flow into an individual hands may seem confusing at first glance, as he run down the list of sub-heads like car fuel, entertainment, attire, and other allowances. It is, of course, a good idea to make the effort to understand the salary structure. But if he really wants to save all the fretting, let the new employer know the “take home” that he would like each month.
Leave the fine tuning to the accounts department. Tax benefits Interaction with the accounts department, however, is inevitable, because a candidate needs to know the tax implications of his salary. Employees are often so engrossed in their jobs that they forget to inform the accounts department about their investments, home loans, and so on. Then they get a surprise when they see the tax deductions in their first paycheck.
When a individual joins a new company, he needs to declare the tax benefits he is eligible for. Proof of those investments can come later, so long as it is before the end of the financial year. Cash in hand depends on ones ever growing needs— a house, a car, a better lifestyle. Having more cash in hand is becoming an imperative, leading to a new trend among employees to prefer cash in hand, rather than gratuity and provident fund (PF) contributions by the employer.
Employee stock ownership plans have lost some of their allure, because of the fringe benefit tax on the profit, starting from this year. This is paving the way for higher take-home salaries.
There is more good than bad in going for interviews. Interviews that reach the monetary negotiations stage enable one to know his market value. Some interviewees may go ahead and accept the offer for a new job. And others will use their new-found market value to get that elusive pay hike from their existing company.
BPO policies- what works
BPO policies- what works
The biggest challenge that HR managers working for BPO companies face is that of attrition. How to tackle attrition? Which HR policies work best? To start with, there are no easy answers. Nor should we expect any standard policy package to work for all companies. Each company needs to work out the HR policy package that would work best given the company’s specific character. A few general guidelines can, however, be suggested.
It is first necessary to point out that in the Indian BPO industry, attrition is more of a problem in voice operations and not so much in non-voice operations. Second, most Indian BPO companies operate in the low-end of the information food chain or the low end of the knowledge spectrum and rates of attrition are highest in these firms and, therefore, they pose a problem for HR managers. Attrition is not really a problem in high-end BPOs. Thus, the problem of attrition is most acute in call centres and, therefore, what we really need is a policy package to tackle attrition in these firms.
Many HR managers in such firms believe that high rates of attrition in Indian call centres are a phenomenon peculiar to India. It is not so. Various studies have shown that if the average rate of attrition in Indian call centres is in the region of 30-35 per cent, it is around 25-30 per cent in the US or UK. Moreover, in call centres in other countries competing with India (for example Philippines) the attrition rate is again at least as high as it is in India. Thus, high rates of attrition is a kind of given in the call centre industry around the world.
Studies show that Indian BPO firms which have been able to tackle the problem of attrition successfully adopt policies which can be grouped into two basic categories:
(a) policies that are based on the basic strategy of “learning to live with it”, and
(b) policies that are based on the basic strategy of “learning to tackle it”.
The emphasis in the first group of policies is on constant recruitment and training and not on retention while in the second group of policies the emphasis is on retention rather than on constant recruitment and training.
Studies also show that in call centres, the basic strategy of “Learning to live with it” works best while the basic strategy of “Learning to tackle it” works best for non-voice operations and in firms engaged in high end processes. In call centres, adopting a basic strategy that emphasizes retention can be suicidal because however much HR managers may try, call centres will have high attrition rates. Hence, spending too much on retention will only result in hiking costs and thereby eroding the very cost arbitrage that is the basis of the call centre business while it will not help in reducing the attrition rate appreciably. On the other hand, if the emphasis is on constant recruitment and training, costs can be kept down without affecting operations even if the attrition rate is in the region of 30-35 per cent.
Studies also show that one third of all attrition in call centres are because of high stress levels and the desire to pursue higher education or alternative occupations while two thirds can be attributed to better job opportunities in the industry. In short, a large majority of people quitting go to another call centre. This is the reason why many call centre HR managers fall into the trap of putting emphasis on retention thinking that if they can implement good retention policies then the two thirds of the people going to other call centres for better job prospects would not do so. These HR managers fail to realize that irrespective of the retention policies, two thirds of the people will still leave for better job prospects and that beyond a point spending more on retention would only eat into margins and erode the basic profitability of the business.
In this context some facts are worth noting:
(a) most Indian call centres need no more than graduates and there is no dearth of graduates in India so that there is no basic shortage of manpower as long as the call centre company does not make the mistake of recruiting over qualified people for their operations. Such over qualified people will leave anyway after a few days or weeks once they realize that their expectations do not match with the reality.
(b) Most Indian call centres need to train people for no more than three months to get them to become fully productive as long as the raw recruit had basic English language skills, especially verbal communication skills. Moreover, in many low-end processes where the script is given by the client and agents have almost no discretion, even basic skills of communication in English is not required since almost anybody can be trained to read a prepared script with a certain specific accent and diction. Hence constant recruitment and training is cost-effective even with attrition rates of around 30-35 per cent.
(c) In most Indian call centres, the majority of the agents are in the age group 18-26 and their focus is on the here and now. Such employees prefer to get their entire compensation in cash and not through such rubrics as provident fund, medical cover, superannuation benefits etc. Hence, call centres need to structure their compensation package in a way that most of the benefits go to the employee in the form of cash or through such things as company credit cards, easy car/housing/consumer durable loans, club membership etc. For this reason, proprietory firms have an edge over corporates as it is easier for proprietory firms to structure a pay package with a larger “here and now” cash component.
(d) Since most employees are young they are emotionally less stable than older employees and are prone to switch jobs for the most trivial reasons. Instead of spending a lot through higher pay packages in a bid to retain talent, call centres would do well to concentrate on constant counseling at the workplace to help young employees realize the virtues of patience and the fact that even a call centre job can lead to a long term career.
(e) Again instead of continually increasing the pay package, call centres would do well to try and create opportunities for upward mobility not just through scaling up of operations but also through moving up the value chain in terms of processes handled (this should anyway be a strategic goal for any BPO unit irrespective of whether it is facing a problem of attrition or not).
(f) The usual stress busting mechanisms should be in place – work should be fun – partying, get togethers, sporting events, facilities for yoga and aerobics exercises, good food and cafeteria facilities, etc help in a big way to retain younger people.
Space limitations do not permit a fuller discussion, but some of the basic issues have been covered above. From what has been said so far it should be obvious that what kind of policies a firm must choose to tackle attrition depends a great deal on the kind of processes it is handling. The problem of attrition is highest in the firms engaged in low end processes while those engaged in high end processes do not have so much of a problem. Also, while firms engaged in low-end processes would do well to adopt the basic strategy of “learning to live with it”, firms engaged in high-end processes would do better by adopting the basic strategy of “Learning to tackle it”. For those adopting the second strategy, talent retention policies would tend to be similar to standard policies adopted by most companies such as a fast track promotion policy, frequent hikes in the compensation package etc. For firms engaged in low end processes, the key to success is to realize that emphasis on retention will not work and, therefore, it is better to concentrate on constant recruitment and training.
The biggest challenge that HR managers working for BPO companies face is that of attrition. How to tackle attrition? Which HR policies work best? To start with, there are no easy answers. Nor should we expect any standard policy package to work for all companies. Each company needs to work out the HR policy package that would work best given the company’s specific character. A few general guidelines can, however, be suggested.
It is first necessary to point out that in the Indian BPO industry, attrition is more of a problem in voice operations and not so much in non-voice operations. Second, most Indian BPO companies operate in the low-end of the information food chain or the low end of the knowledge spectrum and rates of attrition are highest in these firms and, therefore, they pose a problem for HR managers. Attrition is not really a problem in high-end BPOs. Thus, the problem of attrition is most acute in call centres and, therefore, what we really need is a policy package to tackle attrition in these firms.
Many HR managers in such firms believe that high rates of attrition in Indian call centres are a phenomenon peculiar to India. It is not so. Various studies have shown that if the average rate of attrition in Indian call centres is in the region of 30-35 per cent, it is around 25-30 per cent in the US or UK. Moreover, in call centres in other countries competing with India (for example Philippines) the attrition rate is again at least as high as it is in India. Thus, high rates of attrition is a kind of given in the call centre industry around the world.
Studies show that Indian BPO firms which have been able to tackle the problem of attrition successfully adopt policies which can be grouped into two basic categories:
(a) policies that are based on the basic strategy of “learning to live with it”, and
(b) policies that are based on the basic strategy of “learning to tackle it”.
The emphasis in the first group of policies is on constant recruitment and training and not on retention while in the second group of policies the emphasis is on retention rather than on constant recruitment and training.
Studies also show that in call centres, the basic strategy of “Learning to live with it” works best while the basic strategy of “Learning to tackle it” works best for non-voice operations and in firms engaged in high end processes. In call centres, adopting a basic strategy that emphasizes retention can be suicidal because however much HR managers may try, call centres will have high attrition rates. Hence, spending too much on retention will only result in hiking costs and thereby eroding the very cost arbitrage that is the basis of the call centre business while it will not help in reducing the attrition rate appreciably. On the other hand, if the emphasis is on constant recruitment and training, costs can be kept down without affecting operations even if the attrition rate is in the region of 30-35 per cent.
Studies also show that one third of all attrition in call centres are because of high stress levels and the desire to pursue higher education or alternative occupations while two thirds can be attributed to better job opportunities in the industry. In short, a large majority of people quitting go to another call centre. This is the reason why many call centre HR managers fall into the trap of putting emphasis on retention thinking that if they can implement good retention policies then the two thirds of the people going to other call centres for better job prospects would not do so. These HR managers fail to realize that irrespective of the retention policies, two thirds of the people will still leave for better job prospects and that beyond a point spending more on retention would only eat into margins and erode the basic profitability of the business.
In this context some facts are worth noting:
(a) most Indian call centres need no more than graduates and there is no dearth of graduates in India so that there is no basic shortage of manpower as long as the call centre company does not make the mistake of recruiting over qualified people for their operations. Such over qualified people will leave anyway after a few days or weeks once they realize that their expectations do not match with the reality.
(b) Most Indian call centres need to train people for no more than three months to get them to become fully productive as long as the raw recruit had basic English language skills, especially verbal communication skills. Moreover, in many low-end processes where the script is given by the client and agents have almost no discretion, even basic skills of communication in English is not required since almost anybody can be trained to read a prepared script with a certain specific accent and diction. Hence constant recruitment and training is cost-effective even with attrition rates of around 30-35 per cent.
(c) In most Indian call centres, the majority of the agents are in the age group 18-26 and their focus is on the here and now. Such employees prefer to get their entire compensation in cash and not through such rubrics as provident fund, medical cover, superannuation benefits etc. Hence, call centres need to structure their compensation package in a way that most of the benefits go to the employee in the form of cash or through such things as company credit cards, easy car/housing/consumer durable loans, club membership etc. For this reason, proprietory firms have an edge over corporates as it is easier for proprietory firms to structure a pay package with a larger “here and now” cash component.
(d) Since most employees are young they are emotionally less stable than older employees and are prone to switch jobs for the most trivial reasons. Instead of spending a lot through higher pay packages in a bid to retain talent, call centres would do well to concentrate on constant counseling at the workplace to help young employees realize the virtues of patience and the fact that even a call centre job can lead to a long term career.
(e) Again instead of continually increasing the pay package, call centres would do well to try and create opportunities for upward mobility not just through scaling up of operations but also through moving up the value chain in terms of processes handled (this should anyway be a strategic goal for any BPO unit irrespective of whether it is facing a problem of attrition or not).
(f) The usual stress busting mechanisms should be in place – work should be fun – partying, get togethers, sporting events, facilities for yoga and aerobics exercises, good food and cafeteria facilities, etc help in a big way to retain younger people.
Space limitations do not permit a fuller discussion, but some of the basic issues have been covered above. From what has been said so far it should be obvious that what kind of policies a firm must choose to tackle attrition depends a great deal on the kind of processes it is handling. The problem of attrition is highest in the firms engaged in low end processes while those engaged in high end processes do not have so much of a problem. Also, while firms engaged in low-end processes would do well to adopt the basic strategy of “learning to live with it”, firms engaged in high-end processes would do better by adopting the basic strategy of “Learning to tackle it”. For those adopting the second strategy, talent retention policies would tend to be similar to standard policies adopted by most companies such as a fast track promotion policy, frequent hikes in the compensation package etc. For firms engaged in low end processes, the key to success is to realize that emphasis on retention will not work and, therefore, it is better to concentrate on constant recruitment and training.
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