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.
Thursday, September 27, 2007
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.
Wednesday, September 26, 2007
Interview questionnaires
Interview questionnaires
When a wide geographical coverage is required and a large number of people have to be contacted, the most efficient and convenient method is to collect data through mail/web questionnaires. The Researcher or Surveyor (RS) can send thousands of questionnaires at a comparatively low cost. Since RS cannot seek further clarification as in the case of interviews, RS should take utmost pains in preparing the questionnaire.
The following hints will be of help:
When a wide geographical coverage is required and a large number of people have to be contacted, the most efficient and convenient method is to collect data through mail/web questionnaires. The Researcher or Surveyor (RS) can send thousands of questionnaires at a comparatively low cost. Since RS cannot seek further clarification as in the case of interviews, RS should take utmost pains in preparing the questionnaire.
The following hints will be of help:
- Each question should be clearly framed and should seek to elicit the information related to the topic of RS report.
- It should be precise and not vague. For example, if RS askS, “Do you see films regularly,” RS’s respondent will not understand what RS means by ‘regularly’. And suppose he says ‘yes’ how will this answer help RS? But if RS says, “How often in a month do you see a movie?” he will understand what RS wants to know and his answer will be precise and useful.
- Avoid leading questions – questions which suggest or anticipate answers and thus conditions or prejudice the respondent’s mind. For example. “Do you read The Hindustan Times?” is an attempt to lead the respondent. A better question to ask would be, “Which daily newspaper do you read?
- As in the case of interviews, do not ask any questions which may embarrass the respondent. Questions about sex habits, religious beliefs, personal income etc are better avoided. When RS have to write a report touching on such matters, obtain the consent of the respondent beforehand if possible and keep the information secure and confidential. In all situations avoid asking questions which may hurt the respondent’s self respect pride or ego.
- Since RS are making a demand on the time of strangers, ensure that questions are easy to answer and the questionnaire is brief and convenient to handle. Leave plenty of space in it for answers. It would be irritating for the respondent to find that he cannot write what he wants. Often questionnaires remain unanswered because of this defect.
- Arrange RS’s questions in a logical order and get them cyclostyled or printed neatly. Mail the questionnaire in an attractive envelope along with a covering letter, courteously seeking the respondent’s cooperation and help. In many respects this letter should be similar to a sales letter. It should be able to attract the respondent’s attention, make him feel important and induce him to fill in the questionnaire and return it to RS promptly. Courtesy demands that RS should enclose a postage paid envelope for reply.
BPO Policies: 5 Emerging Trends
BPO Policies: 5 Emerging Trends
Watch out for the next three years! A turbulent phase of global consolidation and aggregation should see Indian BPOs and KPOs emerge bigger and stronger. Some may even become MNCs and global industry leaders. Human resources will, however, be the key challenge at the industry level as well as for the individual HR professional. Successful HR managers will have to be prepared for five emerging trends.
Deepak Wadhwan, consulting advisor, KPMG, points out in an article in The Economic Times a few key trends which he claims may get overlooked. The top five are:
HR managers who are better prepared to handle these trends are more likely to perform rather than perish. That means, they must be prepared for:
Not that all factors will be applicable to all organisations in BPO/KPO space. Each business will have its own strengths and opportunities and weaknesses and threats. The individual HR manager too has to asses what his/her organization specifically needs. A proactive manager will try to outguess the board and keep some plans ready even before they are actually asked for.
An M&A human resource impact study keeping in mind any one/several possible victims/predators in mind is a good example. M&As are complex and traumatic affairs from a HR point of view. In case one’s organization has any chance of becoming a participant in any M&A event in the near future, a little early planning can prove to be a big help.
Similarly, being all ready to ramp up overnight, as it were, due to some early preparation on your part, can only earn you kudos from the guys who matter. The same can be said about each of the other big trends such as the possibility of talent war or multicultural and multinational operations. The key issue is to correctly asses which way your own organization is headed and then to be specifically prepared for it.
Some companies will not bother much about brand building – either because they don’t need it or care for it, for some reason or the other – but most others would do so. That would mean an additional set of headaches for HR professionals. Apart from the many intangible values that add up to create robust brand equities, some very necessary and tangible aspects are getting certifications of various kinds, following industry best practices and maintaining/improving delivery standards. Achieving these goals will require constant development of HR systems and processes. In plain English that simply means more work for the HR professionals.
Managing human resources in an HR and knowledge intensive BPO/KPO industry was never easy, but with a period of turbulence about to set in, its just going to get tougher! But then being forewarned is being forearmed – just ride out the storm.
Watch out for the next three years! A turbulent phase of global consolidation and aggregation should see Indian BPOs and KPOs emerge bigger and stronger. Some may even become MNCs and global industry leaders. Human resources will, however, be the key challenge at the industry level as well as for the individual HR professional. Successful HR managers will have to be prepared for five emerging trends.
Deepak Wadhwan, consulting advisor, KPMG, points out in an article in The Economic Times a few key trends which he claims may get overlooked. The top five are:
- The next three years will see a lot of mergers and acquisitions in BPO space worldwide.
- Most new voice/data BPOs will be at least 1000 seaters while KPOs serving any specific domain, 100 seaters.
- Attrition will rise in the middle and top levels leading to a talent war.
- Most top Indian BPO/KPO companies would have multicultural/multinational operations/workforce.
- Bottomline: Those who focus on brand building will perform, others will perish.
HR managers who are better prepared to handle these trends are more likely to perform rather than perish. That means, they must be prepared for:
- M&As
- Scalability
- Talent War
- Multicultural Ops
- Brand Building
Not that all factors will be applicable to all organisations in BPO/KPO space. Each business will have its own strengths and opportunities and weaknesses and threats. The individual HR manager too has to asses what his/her organization specifically needs. A proactive manager will try to outguess the board and keep some plans ready even before they are actually asked for.
An M&A human resource impact study keeping in mind any one/several possible victims/predators in mind is a good example. M&As are complex and traumatic affairs from a HR point of view. In case one’s organization has any chance of becoming a participant in any M&A event in the near future, a little early planning can prove to be a big help.
Similarly, being all ready to ramp up overnight, as it were, due to some early preparation on your part, can only earn you kudos from the guys who matter. The same can be said about each of the other big trends such as the possibility of talent war or multicultural and multinational operations. The key issue is to correctly asses which way your own organization is headed and then to be specifically prepared for it.
Some companies will not bother much about brand building – either because they don’t need it or care for it, for some reason or the other – but most others would do so. That would mean an additional set of headaches for HR professionals. Apart from the many intangible values that add up to create robust brand equities, some very necessary and tangible aspects are getting certifications of various kinds, following industry best practices and maintaining/improving delivery standards. Achieving these goals will require constant development of HR systems and processes. In plain English that simply means more work for the HR professionals.
Managing human resources in an HR and knowledge intensive BPO/KPO industry was never easy, but with a period of turbulence about to set in, its just going to get tougher! But then being forewarned is being forearmed – just ride out the storm.
Geeta Saar
This is what Bhagwan Shri Krishna wants to tell you:
Hey Parth (Employee),
Incentive nahi mila, Bura Hua
Salary cut rahi hai, Bura Hua
Extra shift hogi, woh bhi buri hogi.
Tum pichhla incentive na milne ka paschatap na karo,
Tum agle incentive ki chinta na karo,
Bus apni salary main santusht raho....
Tumhari pocket se kya gaya , jo rote ho?
Jo aaya tha sab yahee se aaya.
Tum jab nahi the, tab bhi company chal rahi thee
Tum jab nahi hoge, tab bhi chalegee.
Tum koi experience leker nahi aaye the..
Jo experience mila yahi mila...
Jo support diya company ke liye...
Degree leker aaye the, experience leker chalo.
Jo system aaj tumhara hai...
Woh kal kisi aur ka tha....
Kal kisi aur ka or parso kisi aur ka hoga..
Tum ise apna samajh kar kyo magan ho rahe ho..
Yahi khushi tumhari tension kaa kaaran hai.
Kyo vyarth chinta karte ho, kisse vyarth darte ho, Kaun tumhe nikaal sakta hai.
Policy change company ka rule hai
Jise tum policy change kahte ho, wahi to trick hai.
Ek pal main tum Best performer or Hero no.1 ya Super Star ban jaate ho,
Dusre pal main tum worst performer or target nahin achieve kar paatey ho.
Appraisal, incentive etc. etc. mann se hata do, vichaar se mita do,
Phir company tumhari hai or tum company ke.
Na yeh increment wageyrah tumhare liye hai, na tum iske kabhi ho,
Parantu job secure hai
Phir tum tension kyon lete ho........?
Tum apne aap ko company ko arpit kar do,
Yahi sabse bada golden rule hai,
Jo is golden rule ko jaanta hai,
woh review, incentive,recession ,retirement aadi se sada Ke liye muqt ho jaata hai.
Hey Parth (Employee),
Incentive nahi mila, Bura Hua
Salary cut rahi hai, Bura Hua
Extra shift hogi, woh bhi buri hogi.
Tum pichhla incentive na milne ka paschatap na karo,
Tum agle incentive ki chinta na karo,
Bus apni salary main santusht raho....
Tumhari pocket se kya gaya , jo rote ho?
Jo aaya tha sab yahee se aaya.
Tum jab nahi the, tab bhi company chal rahi thee
Tum jab nahi hoge, tab bhi chalegee.
Tum koi experience leker nahi aaye the..
Jo experience mila yahi mila...
Jo support diya company ke liye...
Degree leker aaye the, experience leker chalo.
Jo system aaj tumhara hai...
Woh kal kisi aur ka tha....
Kal kisi aur ka or parso kisi aur ka hoga..
Tum ise apna samajh kar kyo magan ho rahe ho..
Yahi khushi tumhari tension kaa kaaran hai.
Kyo vyarth chinta karte ho, kisse vyarth darte ho, Kaun tumhe nikaal sakta hai.
Policy change company ka rule hai
Jise tum policy change kahte ho, wahi to trick hai.
Ek pal main tum Best performer or Hero no.1 ya Super Star ban jaate ho,
Dusre pal main tum worst performer or target nahin achieve kar paatey ho.
Appraisal, incentive etc. etc. mann se hata do, vichaar se mita do,
Phir company tumhari hai or tum company ke.
Na yeh increment wageyrah tumhare liye hai, na tum iske kabhi ho,
Parantu job secure hai
Phir tum tension kyon lete ho........?
Tum apne aap ko company ko arpit kar do,
Yahi sabse bada golden rule hai,
Jo is golden rule ko jaanta hai,
woh review, incentive,recession ,retirement aadi se sada Ke liye muqt ho jaata hai.
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