87

6

5

4

3

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Group Project

PGCBM 26 Group 17

Project Title: High Performance Human Resource

Practices

Saiprasad Savant

SMS ID 2229571

Shivkumar Menon

SMS ID 2229464

Rajesh Malkani

SMS ID 2229463

Mahesh Parab

SMS ID 2229582

IndexIndex

Introduction

Data Analysis Construct Wise

High Performance HR Practices

Comparative Analysis

Conclusions & Recommendations

Appendix

Organization Overview

4 Organizations were selected for administering the survey and analyzing the results in order to

arrive at strong inferences and conclusions on the relationship between High-Performance HR

Practices and Organizational performance.

Indian MNC (1)

Indian Trust (1)

Foreign MNC (2)

Media (1)

NGO (1)

Telecom(2)

A diverse blend of companies was selected based on their legal entity, nature & size of business,

Business type.

Hence this ensured that the results

a) of the analysis was an holistic, relative assessment of the relationship between High

Performance HR Practices & Organizational Performance

b) true representation of the Indian Industry

(Respondent Company Mix)

(On the basis of

Legal Structure)

(On the basis of

Industry)

Respondent Mix

38% of the Respondents comprise of Senior

Managerial Personnel; 42% at Middle Managerial

Levels and 12% at Junior Managerial Levels

Hence it can be surmised that 61% of the sample

size of respondents are the beneficiaries of the

High Performance Practices adopted by their

respective organizations and 39% have played a

strong role in framing these Practices

Tenure of Respondents

65% of the respondents are 10 years

Functional Level Mix

No. of years

Range Junior Middle

Senior

Managerial

Grand

Total

0-5 12 16 11 39

6-10 9 9 18

>10 3 3

Grand Total 12 25 23 60

100% of the Junior Level pool is < 5 years old,

which gives a good flavor of HR practices at the

ground level.

56% and 37% of the ML and SL from the pool are tenured at < 5years and 6 to 10 years old, clearly indicating that

a higher % of employees have been externally sourced instead of growth from the ranks. Further analysis of the

survey will help in understanding if there is a strong relationship of external hiring to organizational performance

Selective Staffing

Extensive Training

High Performance HR Practices

Internal Mobility Employment Security Clear Job Description Result Oriented Appraisal Incentive Rewards Participation

Analysis Construct wise

Constructs

Selective Staffing

Extensive Training

The selection and recruitment process is fairly rigorous and the general perception in the industry

seems to be that, considerable importance is given to ensure right candidate selection. Recruitment

process is scientific and keeps the long term strategic requirements of the organization into

consideration.

However, a depth study of all variables of the Selective staffing process reveals that the respondents

feel that although the recruitment process is stringent and great care is taken to find the right fitment

for a role, long term employee potential is one variable which can be worked upon and improved.

Employee Training is at the core of high performance and effectivity for organizational growth. On the

job, onboarding and periodical training are the different types of trainings offered by organizations to

ensure the skills of employees are in convergence with market requirements.

Periodical training to brush up skills of existing employees is adequate but training in a formal

program, on the job training and customized training based on job design and analysis is perceived to

be very low in the industry

But the degree of dissatisfaction seems with respect to inadequate training is highest at the NGO

which is quite expected as they are performing in an unorganized setting.

Constructs

Internal mobility is a function of the policies and framework adopted by organizations to create a culture

of growth and high performance orientation. The ability of organizations to skill and re skill employees in

diverse business environments, to maximize effectiveness and to adapt to changes in the external and

internal environment. This ability builds confidence in the employees with respect to future career

growth in the organization which eventually reflects into high performance of the organization.

Majority of the employees falling under the NGO and the Media sector perceive no future growth in their

existing organization; whereas employees in the Telecom sector seem to have a clear career path in

place. The dissonance in the NGO sector can largely be attributed to low direct impact and long

gestation cycle for success and fulfillment of their goals and for the Media sector this could be on

account of volatile nature of the business coupled with high levels of competition which takes a huge toll

on the margins of this business, hence intense work pressure for employees.

Meanwhile, the telecom sector is capital intensive and owing to the size of the business, its imperative

for companies in this industry to have clear career development goals for its employees.

Internal Mobility

Employment Security

Job Security is strongly linked to the culture and policies of an organization. Majority of the employees in

the industry seem to be satisfied with the level of job security in their current organization.

Only Respondents from the Telecom sector perceive risk of long term employability. This could be

because of strong performance management processes in the telecom sector. As companies grow

larger, processes are built in to ensure high performance in all functions and hence low performers will

perceive insecurity in jobs

Constructs

Clear Job Description

Majority of the respondents perceive the performance appraisal process to be fair and objective.

Respondents agree that the performance management system is objective and quantifiable

although they feel that the appraisal process does not factor or take into account the long term

achievements of employees. Clearly points out that organizations in the industry stress on short

term and consistent results from employees

Respondents are positive about the job descriptions and role requirements. Industry dynamics

and size of the companies in an industry also play a big role. 2 of the companies used for the

survey are Multinational Companies in the Telecom business viz. organized players.

The other 2 companies (NGO and Media) though unstructured in comparison to the telecom

business, generally tend to hire experienced professionals. They tend to rely highly on expert

power on account of the nature of their business. Experienced professionals are generally clear

about their roles and in fact need more freedom and flexibility to perform effectively.

Result Oriented Appraisal

Constructs

Commissions or incentives are not linked to group performance or profitability. Rather they are

based completely on individual performance. Group Performance or profitability based incentives

are typically drawn out for Leadership team members and not at the business managerial levels

Incentive Rewards

Participation

Employee Participation in decision making is encouraged in the industry. Majority of the

respondents perceive to have open communication lines within the organization and team

structure and believe that the management is open to listen to new ideas and allow them to

implement good suggestions in their day to day business.

Organizational Metrics

Average Quit rate in the industry is 12% and most of the respondents believe that their quit rates

are as good or better than competitors.

Average Absenteeism rate in the industry is 6% and most of the respondents perceive this to be

as good or better than competitors.

With respect to Profitability and sales, majority respondents believe both matrices to be higher

than the preceding 3 years. Employee productivity is considered to be the highest

Overall Assessment High Performance Matrices

The survey results clearly indicate that industry dynamics and size of the organization play a very

critical role while determining the benchmarks of high performance matrices in the industry. A brief

holistic assessment of all the key High Performance Matrices which have a strong interplay are

shared below.

Organized MNC players in the telecom industry have clear focus on high performance matrices necessary for high growth in their business. Importance to processes in these companies could also be because of the size of the organizations as companies which are capital intensive and have high employee size find building processes as a business imperative not only for growth but even for survival

Hence we have observed that organized players have scored very high on their existing staffing and recruitment, performance appraisal practices, onboarding and training processes and though employees do not have complete job security, there is clarity that high individual performance is enough for career growth and fair rewards

At the same time, the Indian MNC from the Media sector and the company from the NGO segment are clearly not very stringent in their processes. High performance practices are not a norm and employees operate in an unstructured environment on account of which there is a higher level of ambiguity in roles, lack of training and not much guidance in the career development plans of the employees which is a high risk in the long run and sustainability of organizations.

Comparative Analysis

HighPerformance Matrices

Company M(ChineseTelecom MNC)

Company SA (EuropeanTelecom MNC)

Company SH (Indian NGO)

Company R(Indian Media MNC)

Selective Staffing Highly Agreeable Highly Agreeable High High

Training Neutral Neutral Low as most of the training is on the job and inadequate

Neutral onboarding training is conducted but ongoing trainingpractices for existing employees are weak

Internal Mobility Technology driven business and hence function specific

Technology driven business and hence function specific

Neutral Low as they do not have a strong process and orientation for job rotation and other flexible practices

Comparative Analysis

High Performance Matrices

Company M(Chinese Telecom MNC)

Company SA (European Telecom MNC)

Company SH (Indian NGO)

Company R(Indian Media MNC)

EmploymentSecurity

Low on account ofless transparency in the culture

High as compared to other players across industries

High as performance appraisal process is not very strong

Low

Clear Job Description

Low on account of lack of transparency

High Low; very ambiguous roles and unstructured

Low ascompared to the MNC companies in the industry

Result Oriented Appraisal

High as marketshare of Chinese companies in the industry is high

Low as compared to other players in the industry. Decision making is also time consuming on account of high reliance on processes

Neutral but performance management process is weak

Low

Comparative Analysis

HighPerformance Matrices

Company M(ChineseTelecom MNC)

Company SA (EuropeanTelecom MNC)

Company SH (Indian NGO)

Company R(Indian Media MNC)

Incentive Rewards

High High Low as its not a business

Neutral

Participation Low High High Neutral

Profitability and Sales

Low as they focus on underselling and in intensive price war

High as the focus is clearly on nurturing long term relationships with premium customers

NA as its a not for profit business, butquit rate is high on account of low level of impact and high gestation in terms of success ratio

Profitability is low as compared to sales on account of the intense competition in the industry and as performance Management practices are not very robust, productivity is an area of improvement

Conclusion & Recommendations

Organized large players from the telecom sector distinctly follow high performance practices leading to

sustainability and consistent growth, which needs to be imbibed by the other two companies from the

NGO and Media Sectors

Career development programs, Role ambiguity and Lack of Training with the smaller players are

extremely critical focus areas for improvement as it has a direct impact on long term sustainability and

growth of the organization. Moreover, it also has a strong linkage to productivity of employees which

eventually helps in building a high performance culture

The Indian MNC from the Media sector is in the process of building robust controls and strong

performance management practices which is a business imperative especially for companies in an

intensely competitive market

Thank You

Appendix

Respondent Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14

R8 3 2 3 3 2 2 1 1 3 2 4 3 3 4

R1 3 3 3 2 2 3 2 3 2 2 4 3 2 2

R2 4 3 3 4 1.5 NA 1 1 4 NA 2 3

R4 3 2 3 3 2 2 2 2 2 2 2 2 3 4

R6 4 3 4 4 3 4 3 3 4 2 4 3 3 4

R7 3 2 3 3 2 2 2 2 3 2 1 1 1 4

R10 3 3 3 2 2 3 2 3 2 2 4 3 2 2

R11 3 2 4 4 2 - 1 1 3 2 2 3 2 4

R12 5 4 3 3 3 4 2 4 4 1 1 1 4 4

R13 4 4 4 4 3 3 4 4 1 1 1 4 3 4

R3 4 4 4 4 2 2 2 2 4 4 4 2 2 3

R5 3.5 3.5 4 3.5 2 2 2 2 2 1 1 3 4 4

R9 5 3 3 4 2 2 2 2 3 3 1 3 3 4

R14 3 4 3 4 3 2 3 3 2 3 2 2 2 3

R15 5 5 5 5 3 3 2 3 2 1 1 3 3 5

R1 4 4 5 5 3 2 2 2 2 3 4 3 2 3

R2 4 5 4 5 2 2 2 2 2 3 4 3 2 2

R3 4 3 4 5 3 3 2 3 3 2 3 4 2 3

R4 4 2 4 4 2 2 3 3 2 2 4 3 3 3

Selective staffing Extensive training Internal mobility Employment security