Wall Focus-128

(News collection for Management studies)

Volume: 02           Issue: 128         23-April, 2011 – Saturday         Pages:9

FOCUS – Need for Multi-Dimensional skills

Firms today are realizing that compensation is not always the only way of attracting motivating and retaining talent. An employee needs something more. So, firms are using skills development to build the organization’s culture. Organizational skills development is a function of business demands coupled with the employees’ aspirations for professional development and this is becoming an inherent need for the success of an organization today.

An organization’s success depends highly on how well it can get the best out of its employees. For this, they need to find out what the employee expects from his job – What’s in it for me?

It has been often found that employees value intangible offerings a lot. For instance, greater depth and diversity of roles and growth driven organizational culture. All this depends on skill development.

Today, in the IT industry, careers are built on more than just coding skills alone. Companies provide solutions to business problems by leveraging on technology rather than mere technology capability. Because of this, employees are expected to specialize early in Technology, Industry (Domain), Program / Project Management or consulting. So, as an employee there is a requirement for you to understand the working of various industries or domains and marry domain knowledge with technological excellence. But, you also have to have a flair for a host of other areas ranging from behavioral, communication and presentation skills, to team dynamics and cross cultural adaptability.

What is skills Development?

Skills development is largely about identifying the skill sets required for your job role. This will enable you to identify and maintain skill levels based on your own schedules and catalyze career related goal setting with continuous skills improvement.

To help employees grow well, companies offer them a broad array of knowledge coupled with skill and personal development programs. It is important for you as an employee, to use any of these programs as a platform to unlock your hidden potential.

These programs also offer key benefits to the firm such as increased efficiency and productivity, which ensures greater employee affinity towards the organization. This helps in strengthening the bond between the organization and the employee.

Skills development programs are usually instrumental in encouraging responsibility commitment and excellence among employees especially in client appreciation, industry certifications and increased personal effectiveness. As employee you should try to understand your company’s business vision, and align yourself with the help of these programs for achieving organizational goals.

For most global organizations, the biggest challenge is to ensure that the training needs and requirements of the employee is not hindered by the logistical implications of distributed workforce in multiple time zones. To sort this issue, companies invest a lot in setting up both physical and virtual infrastructure such as e-learning live meetings and virtual classrooms. Another challenge is to ensure the availability of experienced and passionate trainers based on employee demand. Many times, companies look for knowledge within the organization. The senior management in most large organizations contributes to training. In areas where the senior management does not have the time or experience to teach, quality professionals or training agencies are hired.

Today, most businesses have started viewing skills development as key lever of business performance. They are tracking metrics that measure the impact of learning key business performance parameters and are adding them to the performance score cards.

With the increasing population of Gen Y* learners there is bound to be a shift in the type of learning – the new age learning will focus more on collaborative and extended learning programs where a handshake with the learner is not limited to classroom interaction alone. With growing signs of stabilized demand for global and IT business services after a period of economic challenges, the IT industry is looking forward to greater opportunities. Sustained skills development is indeed the way to go if opportunities have to be tapped. So, it is important that as a worker you tune yourself to be an alert learner at all times to grow to be a good professional.

SPECIAL FOCUS

Employee Brand

Companies, today are resorting to unique ways to foster their brand image. And how are they doing it? Through large hoardings? Unique tie ups? Celebrity endorsements? No. Why spend on external resources when they can look internally for help, that too for free. Meet the new brand ambassador. YOU, the employee. Here is how you can play a significant role towards building a successful employee brand.

You are making an airline ticket booking for your next trip. And what exactly influences your decision making process while choosing a certain airline company over the rest? Would you opt for an airline that gives you full advantage of baggage allowance (after all, you do intend to carry a lot of souvenirs back home for loved ones)? Does the safety rating matter (all airlines companies undergo audits and you obviously want to steer clear of an airline that has had a history of skidding on the runway, right?) Or you simply would like to have some eye candy in the form of attractive stewardesses? The above parameters depict a few ways through which companies formulate their brand perception strategies in order to ensure a definite impact on its clients / customers both current and prospective that plays a vital role in influencing their future buying decisions. However, experts point out that in today’s turbulent scenario, the best way to foster a company’s brand image is by looking internally and by allowing employees to serve as brand ambassadors for they can, in ways more than one, contribute immensely towards building a successful, living employee brand. Therefore ask yourself, are you an efficient brand mule? Here we explore your role as an employee towards ensuring a flawless employee branding exercise.

Firstly, let’s define an employee brand? The employee brand is an image of the organization presented to an organization’s customers and other relevant stakeholders by its employees. And in the employee branding process, the employee starts talking the employer brand lingo and simply put, becomes a brand ambassador for he employer. Employee branding is an indirect branding process where you as employees internalize the culture, spirit and the values of the organization and project it to the outside world through their behaviors, attitudes and actions. It is a much deeper process than employer branding. It is a measure of the value that you gain during your employment and how you project yourself to the outside world, through interactions with customers, vendors, institutions and other organizations. The advantages of this are many. Managers of such organizations are respected in the market. You are highly motivated and engaged to be associated with a strong employee brand an you aren’t among those whom quit for just monetary gains. Employees begin to behave in ways that are aligned with the organization’s desired brand message.

Here’s how employees can gain through employee branding even during tough times.

1) Prospective job seekers look forward to such organization as a model employer capable of creating champions. Would not you take pride in being associated with such a company?
2) An employee who leaves the organization and becomes successful outside, indirectly enhances the erstwhile company’s brand value – they always remain brand ambassador, a title to be proud of and
3) It also enhances your own market value.

The employee should be willing to not only enjoy the limelight of being a brand within the organization but also should be ready to shoulder equal responsibility. You should acknowledge the efforts of the employer and sustain the image. You should go beyond their usual definition of work and be willing to go an extra mile to bring sustained success to the organization.

An employee actively involved in the employee branding process is an asset to the company for he / she isn’t just an employee working for it, but someone enhancing it as well. Wouldn’t you like to be that asset?

1) It gives you more visibility, hence increased access to more opportunities as organizations don’t want to miss out on a great employee who contributes towards building the employee brand. This means that you can actually have a choice, even in this environment.
2) This also means that you will have good references from employers impressed by your employee branding strategies, which increases your chance to get a job in a competitive market.
3) You can leverage your contribution towards building the employee brand for better compensation and benefits, location, etc.
4) If an organization is retrenching an actively involved employee will not feature in that list. So, your job is much safer.

DAY FOCUS  ( Collected  by Sanjeeva Reddy, 09D61E0053)

Goldman Sachs cuts GDP growth estimates to 7.8%

According to Goldman Sachs latest report, recent spike in core prices suggest that the food and fuel shocks have been passed through and inflation may remain elevated in 2011. 

Global investment banking giant Goldman Sachs has slashed India’s growth forecast for this fiscal to 7.8 per cent on account of rise in interest rates and an uprising inflation forecast at 7.5 per cent during the period.

The estimate is way below the Government’s forecast of 9 per cent growth in 2011-12.

“We reduce our GDP growth forecasts for FY12 to 7.8 per cent from 8.7 per cent due to the impact of higher rates...,” Goldman Sachs said in its latest issue of Asia Economics Analysts.

The bank had earlier forecast that the Indian economy would expand by 8.7 per cent, while the inflation would hover around 6.7 per cent in 2011-12.

It says the environment remains challenging, with inflationary pressures persisting into the economy.

According to its latest report, recent spike in core prices suggest that the food and fuel shocks have been passed through and inflation may remain elevated in 2011.

“We are raising our inflation forecast for FY12 to 7.5 per cent from 6.7 per cent due to the recent large upside surprise in core prices,” Goldman Sachs said.

Headline inflation has remained above 8 per cent since February 2010. Overall inflation in March stood at 8.98 per cent, much above the Government’s projection of 8 per cent.

Food inflation remained in double digits for greater part of last fiscal, though it has shown signs of moderation since March.

The Prime Minister, Dr Manmohan Singh, had admitted that inflation, especially of food items, is a matter of concern for the Government.

The bank expects RBI would continue with it tight monetary policy this year to staunch the inflationary pressures.

“With inflation remaining the dominant macro concern, we think that the RBI will keep liquidity tight in order to pass through the policy rate hikes to bank deposit and lending rates...

We now expect RBI to hike policy rates by another 125 bps in 2011, significantly higher than the market expectations,” it said.

The central bank has already hiked key policy rates eight times since March 2010, totalling around 200 basis points, to drain out liquidity from the system.

Goldman Sachs, however, said that real interest rates have actually fallen by about 100 basis points since November 2010 on account of higher inflation expectations.

“We think system liquidity may remain tight due to government borrowing, a high credit-deposit ratio and a weaker balance of payments... Recently recommended changes to the central bank’s operating procedures also state the intention of keeping system liquidity tight, and banks in borrowing mode,” it said.

It noted that from the production side, the main slowdown in growth momentum comes from the industry due to rate increases.

“Agriculture should suffer from a high base from FY11,” it added.

According to the report, the country’s fiscal deficit is likely to be 5.2 per cent of GDP in 2011-12, higher than the budget estimate 4.6 per cent.

“Fiscal policy may be unable to contract sufficiently due to the subsidy burden of higher oil and fertiliser prices. If higher oil prices are not passed through, the fiscal deficit will likely be higher than the budget estimates...the RBI would need to contain second-round effects of food and energy shocks,” it said.

Global crude prices have soared above $120 per barrel as supplies from Libya, an OPEC member and key exporter, have dried up on account of fighting between the Government and rebel forces.

India imports three-quarters of its oil and gas, and the prices of diesel continue to remain regulated.

Maruti Suzuki planning 7th plant at Rohtak on extra land

 

Mr Shinzo Nakanishi , MD and CEO of Maruti Suzuki during the launch of KB Engine plant at Gurgaon, in New Delhi.

Maruti Suzuki, which sells almost half the cars in the country, could use the additional land adjoining its Rohtak research facility for its seventh plant. This is to help shore up capacities to touch 25 lakh units by 2015.

Still in its early stages, the plan could entail investments of about Rs 3,500 crore, senior officials told Business Line, though a complete strategy would emerge in a year.

Maruti would need extra annual capacity of five lakh units by 2015 to meet its projections. The car-maker expects to clock 19-20 lakh units a year by 2012-13, for which additional capacities are already being set up.

“The car market is expected to touch about five million units by 2015 and to maintain our market share, we would have to sell around 2.5 million (25 lakh) units a year. There is no extra land available at Gurgaon for expansion and Manesar can only take partial expansion beyond the two additional plants that are already being built. However, we have enough land at Rohtak, which we may use. It is feasible because a new expressway being laid will ensure that Rohtak will only be 45 minutes away from Manesar,” said an official.

A full plant would mean setting up welding, paint and assembly shops, for which a plant with an annual capacity of five lakh would not be possible at Manesar, the official added.

At present, Maruti has an annual production capacity of about 14 lakh units across three plants in Gurgaon and another one at Manesar. On a combined investment of Rs 3,625 crore, work is progression on at two more plants at Manesar, which by 2012-13 would take its total capacity to 19-20 lakh units.

At the Rohtak site, which has a research and development facility and a test-track, about 100 acres of the total 700-odd acres reian un-used.

“We will need a new plant location to meet our growth projections. After the current expansion phase, the Manesar plant would have about 100 acres left. But this is good for only 2.5-3 lakh additional annual capacity, so we will look elsewhere. However, it is still early and the final planning is expected to happen by next year,” added another senior company official.

For any such large investment, Maruti Suzuki would also need to seek approval from the Japanese parent, Suzuki Motor Corporation, which has over 50 per cent stake in the domestic carmaker.

Exports of leather garments up

India’s share in global exports of leather garments has increased between 2005—2009, even though the size of the world trade suffered due to the recession of 2008—09, according to government data.

India’s exports of leather garments went up from $ 33 million in value terms in 2005 to $ 428 million in 2009.

As a share of world’s imports the country’s contribution jumped from 8.68 per cent to 12.73 per cent in these four years.

However, the global imports of these products declined from $ 3.84 billion to $ 3.36 billion during the period, the official data showed.

According to the data compiled by the Council for Leather Exports, the leather garments exports are expected to cross $ one billion in 2013—14. These exports were estimated at $ 475 million in 2010—11 and are projected at $ 660 million in 2011—12.

As far as the total exports of leather and its products are concerned, Tamil Nadu is the biggest source of supplies accounting for 35 per cent of the country’s total overseas shipments.

Uttar Pradesh is the second largest supplier (28 per cent) followed by West Bengal (13 per cent) and Delhi (9.48 per cent).

Major markets for India’s leather exports include Germany, the US, UK and Italy. The country’s total leather exports are estimated at $ 3.8 billion for the year 2010—11. The major segments of the sector include tanning, footwear, garments, and accessories.

Employing 2.5 million people, the industry is divided into important clusters in Kanpur, Agra, Mumbai, Kolkatta, Chennai and Delhi.

MANAGEMENT TIPS: MEETING DEADLINES

No one will be happy if your team has to rush around at the last minute to complete a project. Follow these tips to make deadlines less stressful for everyone.

Only promise what you can realistically deliver. Don't create deadlines that you know you can't meet. By only promising what you know you can do, you'll be able to finish on time.

Set clear goals. Once you know what you need to accomplish, it helps to know how and when you want to do it. Put your goals down on paper and make sure everyone on your team gets a copy.

Organize a team. Many of your employees will have unique strengths and training that can make them great assets to certain projects. Pick a team that has the right skills to carry out the job.

Delegate tasks. Spread work among your employees in a way that doesn't leave anyone overburdened while also allowing the project work smoothly.

Create milestones. Creating milestones for you and your team will help you keep track of your progress and also give you a sense of accomplishment as you reach each milestone.

Keep communication open. Keeping everyone in touch with the status of the project is key to making sure it's completed on time.

Do it right the first time. Planning ahead will help prevent you from delivering a substandard product. Having to redo something for a client costs money, and, more than likely, future business opportunities.

Stay organized. Staying organized will help keep you from wasting time chasing down important documents and information.

Make sure expectations are clear. Be sure that each member of your team knows what their specific responsibilities are. This will save time and prevent tasks from being overlooked.

Create a plan. Compile your goals and milestones into a comprehensive plan for attacking any project you are given. This way, you can make sure you're staying on schedule and that all of your employees will be clear about how and when things should be done.

FOCUS ON CASE STUDY 

PERSPECTIVES OF MANAGEMENT :

The division manager had recently heard a lecture on management by objectives. His enthusiasm, kindled at that time, tended to grow the more he thought about it. He finally decided to introduce the concept and see what headway he could make at his next staff meeting.

He recounted the theoretical developments in this technique, cited the advantages to the division of its application, and asked his subordinates to think about adopting it.

It was not as easy as everyone had thought. At the next meeting, several questions were raised. ..Do you have division goals assigned by the president to you for next year?.. the finance manager wanted to know.

..No, I do not, ..the division manager replied. ..I have been waiting for the president’s office to tell me what is expected, but they act as if they will do nothing about the matter... ..What is the division to do, then?.. the manager of production asked, rather hoping that no action would be indicated.

..I intend to list my expectations for the division,.. the division manager said. ..There is not much mystery about them. I expect $ 30 million in sales; a profit on sales before taxes of 8 percent; a return on investment of 15 percent; an ongoing program in effect by June 30, with specific characteristics I will list later, to develop our own future managers; the completion of development work on our XZ model by the end of the year and stabilization of employee turnover at 5 percent...

The staff was stunned that their superior had thought through to these verifiable objectives and stated them with such clarity and assurance. They were also surprised about his sincerity in wanting to achieve them.

..During the next month I want each of you to translate these objectives into verifiable goals for your own functions. Naturally they will be different for finance, marketing, production, engineering and administration. However you state them, I will expect them to add up to the realization of the division goals...

(a) Can a division manager develop verifiable goals, or objectives, when the president has not assigned them to him or her? How? What kind of information or help do you believe is important for the division manager to have from headquarters?

(b) Was the division manager setting goals in the best way? What would you have done?

Focus – Day Tip The satisfaction that you derive from rendering services is itself a reward