hrm project rajni shah nmtybms tahaab rais

8/7/2019 HRM Project Rajni Shah NMTYBMS Tahaab Rais

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NARSEE MONJEE COLLEGE OF COMMERCE & ECONOMICS

B.M.S

SUBJECT: HUMAN RESOURCES MANAGEMENTPROFESSOR-IN-CHARGE: PROF. RAJNI SHAH

SUBMITTED BY:NAMRATA ARYA 122

RAJESHREE PARSANA 139RIDDHI PATEL 140HARDIK PATWA 143TAHAAB RAIS 147KIRAN RAYMANGIA 150HARDIK SANGHVI 154PRIYESH SATARDEKAR 157UNNATI SHAH 165NIKITA THAKKAR 174


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N.M.B.M.S WORLD CLASS ORGANIZATIONS

TOPIC

Highlight the critical attributes of a 'world-class' Organization. How'good' companies transform themselves into 'great' companies? Give

examples of a few Indian companies who have made it to 'world-class'

status, as also Strategies that you would recommend to remain 'world-

class' Organizations.

INDEX: TABLE OF CONTENTS

INTRODUCTION PAGE 3

HUMAN RESOURCES MANAGEMENT: A PRIMARY ENABLER PAGE 5

WORLD-CLASS INFRASTRUCTURE .VS. MEDIOCRE INFRASTRUCTURE PAGE 8

CHARACTERISTICS OF A WORLD-CLASS ORGANIZATION PAGE 9

STRATEGIES FOR DEVELOPING A WORLD-CLASS ORGANIZATION PAGE 13

GOOD TO GREAT COMPANIES PAGE 16

ETHICAL ISSUES AT GOOD COMPANIES PAGE 20

LARSEN & TOUBRO LTD. PAGE 22

INFOSYS TECHNOLOGIES LTD. PAGE 26

THE ADITYA BIRLA GROUP PAGE 30

STATISTICAL FINDINGS & VIEWPOINTS PAGE 35

CONCLUSION PAGE 37

HUMAN RESOURCES MGMT. PROF. RAJNI SHAH2


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INTODUCTIONWhen the rules of a game change, the player's strategies and actions must also change

so as to win in that game. The same goes for business. On the eve of the 21st century

the nature of doing business has tremendously changed.

Global competition is characterized by networks that bind countries, the phenomenon

of an increasingly borderless world, and intense pervasive changes have pushed the

limits of business excellence to new frontiers never seen before.

For organizations, good is no more good enough, and excellence has lost its meaning

to a new phenomenon called "world class organizations". World class organisation

status is a new ideal relentlessly pursued by ambitious and daring organizations

worldwide because this status alone is a status which promises maximum rewards and

the victor's stand. Let us thus demystify this new phenomenon and analyze certain

viewpoints which could be useful for developing world class organizations.

What Is A World Class Organisation?

A world class organisation can be defined as "an organisation which has acquired

the position of best of the best in the world in its given business and continuously

strives to beat its own standards so as to retain that position" .

This definition gives us some pointers which can be rightly called some of the traits of

a world class organisation:

Certain Basic Traits of a World Class Organisation:

1. Best of the best:

A world class organisation is like a world champion having beaten all business

champions throughout the world. Additionally such an organisation possesses some

level of strategic and operational excellence, which is not matched by any other

organisation in the world.

Classic examples of best of the best organizations include Motorola, Federal Express

and Microsoft.

2. Continuous improvement:

The second most important trait of a world-class organisation is the importance it

attaches to continuous improvement. These organizations do not rest on their laurels

but rather continuously indulge in self-reinvention process.

It is rightly said that "success is a journey and not a destination" and for successful

companies improvement is a continuous journey. Those organizations, which practice

continuous self-improvement, live longer, while those who become complacent and

forget about it ultimately end up with closures.



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3. Relentless focus on customer satisfaction:

In the game of business, umpires are customers and winning thus lies in their

satisfaction. In this era customers have become increasingly demanding, asking for

the best quality, cheapest possible price, and superior service back up. So to win the

hearts of their customers, globally acclaimed companies satisfy customers and in mostof the cases delight them by offering fabulous quality, charging surprisingly lowest

possible prices and providing angel-like service. It must be mentioned here that

excellent organizations develop excellent relations with their clients and treat them

with respect and high esteem.

Here, we would like to mention a case of a Malaysian company called "First

Training". First Training is a video training company, which sells and rents out

management and educational videos and multi-media programmes. It's a small

company consisting of half a dozen employees and managed by an excellent manager

named Thomas Teo can be rightly called as a world class company when it comes to

customer satisfaction. Customers, after visiting their office just a couple of times,were indeed treated like kings. After finishing his meeting, a certain customer had to

attend another meeting and when he asked for the direction to the place of his next

meeting, he was extremely touched when Teo told him that he would guide him there

and asked the customer to follow his Jeep. That particular customer said, I can never

forget this kindness as a customer! and frankly who wouldn't if treated like that by

any company.



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HUMAN RESOURCES MANAGEMENT:

A PRIMARY ENABLER

A world-class HR departmentis a primary enabler in transforming a Company fromGood to Great. Hence, an organisation must formulate its HR Policies to complement

its Vision.

The future of any company hinges on its ability to:

* Attract & Retain Talent

* Evolve Performance Parameters with respect to key result areas

* Manage Expectations

* Robust Performance Appraisal & Reward System

* Competency Mapping for building Leadership

* Train & Upgrade skill sets

* Succession planning

Let us elaborate on some of these points:

Attraction & Retention:

Organizations have recognized that campuses are the new hot spots where you put

your best foot forward and present your best brand-building armoury. Campuses are

like the gold mines that can supply top-class manpower. There is tremendous

competition for attracting the best talent.

The lateral recruitment is the other side of the coin and perhaps even tougher. This is

because one is looking for the right talent not just within India but globally. Cultural

and socio-political factors across continents and nations need to be addressed, making

it a complex game. One must be flexible enough to adapt quickly and have the ability

to learn continuously. HR, especially, in the case of the IT arena, needs to hone up the

recruitment engine in view of the high attrition rate. This is one of the key success

factors in this industry.

There is rampant poaching for key talent. This has to be met with excellent HR

initiatives. Having attracted the top talent the more difficult task of retaining

commences. Hence, good organizations focus on talent retention even before talent

acquisition. A company must have the mechanisms to put the "right people" with the

"right experiences" at the "right place" and at the "right time".



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The Company should create an environment, which provides growth opportunities to

employees and creates a competitive work environment for them. Career plans for the

employees need to be drawn that is tangible and shows what the employee could

achieve if he were to perform. Once the employee is able to align his individual goals

to the career plan drawn for him then he works selflessly towards achieving the

organizations goals. This ensures a sense of belonging in him as he is secure in theknowledge that his career will be looked after.

Managing Expectations:

In today's complex and competitive landscape, HR will have to play a crucial role in

balancing the expectations of the employees' vis--vis the demands and constraints of

the organisation. The departmental and functional heads would have to be trained to

give accurate feedback to the subordinates dovetailing the positive as well as the areas

of improvement. They will have to master the fine art of walking the tight rope. This

is because excessive positive feedback raises the expectation of the employee to anunrealistic pitch, which the organisation cannot fulfill due to its limitations. A

negative feedback can cause untold harm to the employee morale and his confidence

level.

One way could be to encourage employees to pick up diverse skill sets, so that it

increases his chances of growth within the organisation. It will have to be made

abundantly clear that organizations seek and promote people who have acquired

additional expertise in varied fields.

Performance:

Organizations need to promote a performance driven culture with a differential

reward structure. It necessitates moving ahead in its journey towards building a

culture of differentiation. To meet this challenge, organizations need to have a strong

performance ethic and a common performance theme, like EVA Airways, around

which everybody rallies.

Evolving a robust performance measurement system specifying the key result areas

for all employees is a complex but an essential task for HR. This system should help

in separating the star performers from the average and poor performers. However,

these parameters cannot be developed in isolation but need a greater degree of

involvement and interaction with the line functions across the business units.

HR needs to understand the complexities of each business unit and should be

sensitized to the environment in which it operates. A single solution that will fit all

business units or line functions is a sure recipe for failure. Innovative schemes need to

be drawn to compensate and reward the employees. HR needs to be aware of the

external environment and the market forces.

Appraisal:

An appraisal system must be simple, transparent, and fair, and ought to be conducted

as often as possible. The objective of a performance evaluation system is to be able to



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track promises facilitating a meaningful dialogue between superiors and subordinates

and establishing a clear linkage between performance and rewards. We also believe

that performance evaluation must be conducted across all levels in the organisation.

One must be able to stand scrutiny for one's own performance before judging

someone elses performance in the workplace of the organization.

Succession planning, Competency Mapping, Training & Grooming:

Today's executives are tomorrow's business leaders. Succession planning is a must in

order to ensure that the organisation has the right leaders in place to face future

challenges. The hunt for tomorrow's leaders should begin today. The potential talent

must be tapped and their competencies ought to be mapped. Their strengths & areas

of improvement need to be identified. Mentoring and coaching processes should be an

essential element of grooming future leaders. Appropriate training must be provided

keeping in mind that tomorrow's world would be more complex than ever before.

What the Future beholds:

All this requires a strong, knowledgeable and innovative HR Department, which

understands the pulse of the organization.

WORLD-CLASS INFRASTRUCTURE

.VS.

MEDIOCRE INFRASTRUCTURE



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World-Class Infrastructure Mediocre Infrastructure

1. Totally supported by executivemanagement

1. Little or no support from executivemanagement

2. Meaningful metrics analyzed, not justcollected

2. Convenient metrics (not necessarilymeaningful) collected, not analyzed

3. Proactive approach to problem solving,change management, availability,

performance and tuning, and capacityplanning

3. Reactive approach to problem solving,change management, availability,

performance and tuning, and capacityplanning

4. Help desk involves call management,not just call tracking

4. Help desk focuses on call tracking, not callmanagement

5. Employees empowered to makedecisions and improvements

5. Employees empowered very little, or notat all

6. Standards well developed and enforced 6. Standards poorly developed, with little orno enforcement

7. Employees well trained 7. Employees poorly trained

8. Employees well equipped 8. Employees poorly equipped

9. Processes are designed with robustness 9. Processes designed with little or norobustness

10. Technology used effectively toautomate streamlined processes

10. Technology applied inappropriately, if atall

11. Integration of systems-managementfunctions

11. Little or no integration of systems-management functions

CHARACTERISTICS OF A

WORLD-CLASS ORGANIZATION

1: Executive Support



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Executive support is one of the primary prerequisites for implementing a world-classinfrastructure. Executive support doesn't mean merely approving budgets forhardware, software, and human resources (executives in many firms with mediocreinfrastructures readily approve budgets); it means an IT executive who activelyparticipates in the planning, development, and decision-making processes of systems

management.

Active participation by executives can take on many forms. It may involve executivestaking the time to understand the challenges and obstacles of providing soundinfrastructures. It may consist of managers helping to prioritize which functions ofsystems management are most important to their firms. It may result in executivesbacking up their staffs when negotiating reasonable (rather than unrealistic) servicelevels with customers. Finally, it may be the CIO or his representative ensuring thatother departments within IT, notably applications development, actively support andcomply with established infrastructure policies, procedures, and standards.

2: Analyzing Meaningful Metrics

One of the most common characteristics that differentiate well-managed from poorly-managed infrastructures is their use of metrics. One of the first distinctions in thisregard is the difference between collecting data and establishing truly meaningfulmetrics derived from this data.Most companies today collect some type of data aboutoutages to their online systems, regardless of whether the systems are hosted onmainframes, client/server systems, or the Internet. A typical metric measures thepercent uptime of a particular system over a given period of time and establishes atarget goal; for instance, 99% uptime. The data collected in this example may includethe start and end times of the outage, systems affected, and corrective actions taken to

restore service. The metric itself is the computation of the percent uptime on a daily,weekly, or monthly basis for each online system measured.

Compiling the outage data into a more meaningful metric may involve segregating thepercentage uptime between prime-shift and off-shift, or reporting on actual systemdowntime in minutes or hours, as opposed to percent availability. A meaningfulavailability metric may also be a measure of output as defined by the customer. Forinstance, a purchasing officer may request measuring availability based on the numberof purchase orders that the purchasing staff can process on a weekly basis.

Instituting meaningful metrics helps improve the overall management of aninfrastructure, but their ultimate use involves analyzing the metrics to reveal trends,

patterns, and relationships. This in-depth analysis can often lead you to the root causeof problems and a more proactive approach to meeting service levels.

An example from an aerospace client illustrates this point. This firm was runninghighly classified data over expensively encrypted network lines. High networkavailability was of paramount importance to ensure the economic use of the costlylines, as well as the productivity of the highly paid specialists using the network.Intermittent network outages began occurring at some point but proved elusive totroubleshoot. Finally, the data was trended and experts noticed a pattern that seemedto center around the afternoon of the third Thursday of every month. This monthlypattern eventually led them and the suppliers to uncover the fact that the telephone



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carrier was performing routine line maintenance for disaster recovery on the thirdThursday of every month. The switching involved with this maintenance wasproducing just enough line interference to affect the sensitivity of their encryptedlines. The maintenance was consequently modified for less interference and theproblem never recurred. The analyzing and trending of the metrics data led them

directly to the root cause and eventual resolution of the problem.

3: Proactive Approach

World-class infrastructures employ a proactive approach to identify and preventpotential problems impacting performance and availability. Marginal infrastructuresare forced to take a more reactive approach toward problem solving. For example, aproactive strategy may use the analysis of meaningful utilization metrics to predictwhen an out-of-capacity condition is likely to occur. Armed with this information,technicians can then decide whether to add more capacity or to reschedule or reduceworkloads to prevent outages or performance problems. A reactive approach allows

no time to identify these conditions and make proactive decisions. Other performanceand capacity indicators such as memory swaps and bandwidths can similarly beanalyzed to proactively identify and prevent bottlenecks and outages.

4: Call Management

Well-managed infrastructures do far more than simply log problems in their callcenters. Technicians in these environments track, age, and escalate calls; they pinpointroot causes; solicit customer feedback; and analyze trends, patterns, and relationshipsbetween problems, changes, and other factors. Call management is really thecornerstone of a sound problem-management philosophy. Marginal infrastructureorganizations often don't see or understand the integrated relationships betweenproblem management and those of change management, capacity management,performance management, and service-request management.

5: Employee Empowerment

Many firms are reluctant to empower their employees. Some managers believe thatonly supervisory-level staff is capable of making technical decisions or personneljudgments. Others may feel employees are not capable or well-trained enough to bedecisive. Still others fear that granting employees more authority will result inrequests for more compensation. Progressive infrastructure organizations tend tomitigate these empowerment issues with communication, training, empathy, and

support.

The issue of management support can be the key in determining an employeeempowerment program's success or failure. Employees are bound to make anincorrect judgment on occasion when empowered with new decision-makingauthorities. Supportive managers who show the interest and time to understand andhelp the employees as regards their decision-making, can help to a great extent indeveloping and honing employee-talent and self-confidence.

6: Well-Developed Standards



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Standards can apply to virtually every aspect of IT, from versions of desktop softwareto mainframe operating systems; from dataset-naming conventions to passwordconstruction; from email systems to network protocols. When properly applied,standards can simplify maintenance, shorten deployment times, and ultimately reducecosts. But, proper application requires that standards be thoroughly developed and

effectively enforced. Many shops develop only those standards that are simple todeploy or easy to enforce. In this sense, these companies are similar to those thatcollect only the metrics that are simple to implement or easy to measure. In bothcases, the real value of these activities is compromised.

World-class infrastructures, on the other hand, usually identify all stakeholders of aparticular standard prior to its development, and invite them to participate in itsdesign, implementation, and enforcement. These stakeholders typically consist ofrepresentatives of user groups most affected by the standard, including internal andexternal customers and suppliers. Their participation goes a long way toward ensuringbuy-in, support, and compliance to the standards.

7: Well-Trained Employees

World-class infrastructures invest heavily in training their staffs. This training maytake the form of on-the-job-training, onsite classroom instruction, offsite courses atlocal facilities, out-of town classes, or bringing vendors in to conduct customizedtraining. Top-rated infrastructures often employ a buddy system, or a one-on-onementoring program in which experienced senior-level technicians share both thecontent and the application of their knowledge to junior-level staff. Cross-trainingbetween infrastructure departments such as operations and networks, or systemadministration and database administration, is another effective method used by well-

managed organizations to optimize employee training.8: Well-Equipped Employees

An attribute of world-class infrastructures that parallels well-trained employees isensuring those employees are also well-equipped. Less-sophisticated shops sometimessacrifice hardware and software tools in the name of cost savings. This is often a falseeconomy that can drag out problem-resolution times, extend the length of outages,occasionally duplicate work efforts, and eventually frustrate key staff members to thepoint that they seek employment elsewhere.

While budget items need to be justified and managed, top-rated infrastructures usually

find the means to provide the tools that their technicians need. These tools mayinclude pagers, cell phones, personal assistant palmtops, laptops, at-home high-speednetwork connections, and specialized software for desktops.

9: Robust Processes

World-class infrastructures know how to develop, design, and maintain robustprocesses. A robust process is one that is developed with a clear objective as to whatthe process is intended to dochange management, capacity planning, disasterrecovery, etc. This is sometimes referred to as the effectiveness of a process, and canbe quantified with service metrics. After development, a robust process is then

designed with more detail and contains specific inputs and outputs. The process is



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streamlined at this point to remove any nonvalue-added steps that may have creptinto the design. Robust processes designed like this are easily maintained to keepthem current and compatible with other infrastructure changes.

10: Effective Use of Technology

Managers of highly regarded infrastructures understand that the best application oftechnology, especially automation, comes only after processes have been designedwith robustness and then streamlined. Mediocre shops often rush to automate prior tostreamlining. This almost inevitably leads to chaos brought about by processes thatare highly automated, but poorly designed.

11: Integrated Systems-Management Functions

World-class infrastructures go beyond just having well-designed systems managementfunctions. The leaders of these organizations know how to select and integrate anynumber of these disciplines. There are several pairs of these processes that naturally

go together. Problem management and change management is one pair;performance/tuning and capacity planning are another, with storage management anddisaster recovery a third.

Inference

All of these 11 criteria represent characteristics most often found in robust, world-class infrastructures. Not every criterion may be exhibited to its fullest extent, buthaving the majority of these attributes present in some manner typically puts aninfrastructure on the path to excellence.

STRATEGIES FOR DEVELOPING

WORLD-CLASS ORGANIZATIONSWorld-class organizations do not emerge by chance. People build them by design.

They are created by visions, nurtured by ambitions and perfected by actions. For

reaching the zenith of excellence, companies need to carefully formulate strategies

and deliberately implement them so as to arrive to the desired destination.

The following are some of the few strategies, which are instrumental in developing

best of the best companies.

1. Knowledge of global economy:

The first requirement to venture into this journey is to acquire knowledge and

understanding of global business environment. It is like swimming - it is one thing to

swim in a swimming pool, and another to swim in deep sea. As such, any business,

which wants to be a global player, must know the nature of the global marketplace. A

sound knowledge of different countries and their economies, managing cross cultural



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teams, predicting global market upheavals and getting prepared for forecasting them

are some of the things which a business firm must understand, without which it will

be impossible to succeed.

2. Obsession with quality:

A lot has been said about quality and thousands of volumes have been written about

this subject, but no matter how much is said and written quality can never be over

emphasized. Quality is a dynamic state associated with products, service, people

processes, and environments that meet or exceed customer's expectations. In today's

market place, quality is one of the greatest weapons which determine winning.

Apex companies, no matter what business they're into, are fanatically obsessed with

improving the quality of their products and services. They continuously work on

improving the quality of their products and services, which indeed is one of the keys

to attain a universal status.

3. Developing the most professional employees:

The quality of an organisation depends on the quality of its people and their level of

professionalism. One of the best practices of winning organizations is developing the

most professional employees through continuous training and development. One of

the biggest misconceptions commonly held by mediocre organizations is that training

and development of employees is a non-productive cost.

However, experience proves otherwise. One study by Robert Zemesky of the

National Centre of Educational Quality and the Workforce found that education

produced productivity gains twice as big as did investment in plant or machinery.

Although corporate training and education programmes do not come cheap, an ill-

trained workforce can prove even more expensive. A very healthy trend pioneered by

world-class organizations like Motorola, Solectron, and Microsoft, is to have their

own training and development centres, which they call universities. These universities

not only train their employees but also award them with formal certificates and

degrees, which helps in enhancing employees' self esteem as well as their

employability.

4. Innovation and reinvention:

In his book Mission Possible: Becoming World-Class Organizations While

There's Still Time, Ken Blanchard defined a world class organisation as "an

organisation that is working effectively, not just on one curve, or the other, but on

both at the same time and learning from them." The two curves described in this

definition refer to both the present as well as the future improvement initiatives

undertaken by a company. Needless to say that a company should strive to

continuously improve its present performance.

But, at the same time, it should also use deliberate strategies so as to reinvent the

organisation in the time to come. Thus, the end of the present declining curve gets



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connected to a new curve of new products, services, systems and structures which

propel the organisation to growth. In a dynamic business environment, a reinvention

exercise is the only way to avoid demise and obtain eternal organizational life, as

practiced by most of the top companies in the world.

5. .World Class Leadership:

The success of every world class organisation without fail can be traced back to a

visible or invisible leader who possessed world class leadership qualities. Honda

Motors, the Japanese automaker, is one of the companies gifted with world class

leadership. Of all the Japanese automakers, Honda Motors has achieved excellent

international presence due to the company's dynamic leadership. Honda defined

products with the intention of gaining success not only in Japan, but across the world,

Honda was the first Japanese company which started an international manufacturing

facility in Belgium by manufacturing mopeds in that country.

Today, Honda Motors has earned itself a formidable placing in the auto-makingindustry. This success of Honda Motors can be directly traced to the visionary

leadership of Mr. Honda, the founder of the company. The often repeated and usually

mentioned theme "globalization" of today's business world is not just a fashionable

word but a hard reality which businesses throughout the world, whether small or big,

must learn to live with.

And to successfully live with this reality, companies must raise their standards from

domestic to international levels; strive for excellence not only in their own industry

but in other industries as well. This stature and standard is known as world class

standard. For any organisation to be truly called a world class organisation, it must

have the desire, will and above all, the strategies for reaching that position.

Thorough knowledge of the global economy, fanatic obsession with quality increased

focus on employee professionalism, practice self reinvention, and above all

possession or acquisition of global leaders are some of the strategies which can give

birth to thoroughbred companies, rightly known as world class organizations.



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GOOD TO GREAT COMPANIES

While considering the enduring great companies, one sees substantial evidence that

their leaders follow good to great frame work i.e. they do so as entrepreneurs in

small, early stage enterprises trying to get off the ground, rather than as CEOs trying

to transform established companies from good to great.

In an ironic twist, one sees Good to Great not as a sequel to Built to Last, but as a

prequel. To create sustained great results, as a start-up or an established organization,they follow the following path to go from great results to an enduring great company.

Established

Company

or Start-up

+

Good to

Great

Concepts

Sustaine

d

Great

Results

+

Built

to

Last

Conce

pts

Endurin

g Great

Compan

y

To make shift from a company with sustained great results to an enduring great

company of iconic stature, apply the central concept of Built to Last: Discover your

core value and purpose beyond just making money (core ideology) and combine this

with the dynamic of preserve the core/stimulate progress.

CORE IDEOLOGY: The Extra Dimension of Enduring Greatness

The Extra Dimension that helps elevate the companies to the elite status of an

enduring great company is a vital dimension for making the transition from good to



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great to built to last. That extra dimension is a guiding philosophy or a core

ideology which consists of core value and a core purpose (reason for being beyond

just making money). This resembles the principle never perfectly followed, but

always present as an inspiring standard and an answer to the question of why it is

important that we exist.

Enduring great companies dont exist merely to deliver returns to shareholders.

Indeed, in truly great company, profits and cash flow become like blood and water to

a healthy body: They are absolutely essential for life, but they are not the very point

of life. An important caveat to concept of core values is that there are no specific

right core values for becoming an enduring great company. No matter what core

value you propose, we found an enduring great company that does not have that

specific core value. A company need not have passion for its customers (Sony didnt),

or respect for the individual (Disney didnt), or quality (Wal-Mart didnt), or social

responsibility (Ford didnt) in order to become enduring and great. This is one of the

paradoxical findings core values are essential for enduring greatness, but it doesntseem to matter what those core values are. The point is not whatcore values you

have, but thatyou have core values at all, that you know what they are, that you build

them explicitly into the organization, and that you preserve them over time.

This notion of preserving your core values and purpose while their business strategies

and operating practices endlessly adapt to a changing world. This is the magical

combination of preserve the core and stimulate progress

PRESERVE == Core Values CHANGE == Cultural and Operating PracticesCore Purpose Specific Goals and Strategies

To create an enduring great company requires all the key concepts, tied together and

applied consistently over time. Further more, if you ever stop doing any one of the key

ideas, your organization will inevitably slide backward toward mediocrity. Its much

easier to become great than to remain great. Ultimately, the consistent application of

both studies, one building upon the other, gives the best chance for creating greatness

that lasts.

WHY GREATNESS?

Greatness doesnt depend on size. It is no harder to build something great than to

build something good. It might be statistically rarer to reach greatness, but it does not

require more suffering than perpetuating mediocrity. Indeed, if some of the

comparison companies in our study are any indication, it involves less suffering, and

perhaps, lesser work. The beauty and power of the research findings is that they can

radically simplify our lives while increasing our effectiveness. There is great solace in

the simple fact ofclarity about what is vital, and what is not.



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So, the question of why greatness? is almost a claptrap question. If one is engaged in

work that you love and care about, for whatever reason, then the question needs no

answer. The question is not, Why Greatness? but How Greatness? But What

work makes you feel compelled to try to create greatness? If you have to ask the

question, why should we try to make it great? Isnt success enough? Then youre

probably engaged in the wrong line of work.

CRITERIA FOR SELECTION AS A GOOD TO-GREAT COMPANY

The company shows a pattern of good performance punctuated by a transition

point, after which it shifts to great performance. Experts define great performance

as a cumulative total stock return of atleast 3 times the general market for the period

from the point of transition through fifteen years. Represented as {T + 15}. Experts

define good performances as a cumulative total stock return no better than 1.25

times the general stock market for the fifteen years prior to the point of transition.

Additionally, the ratio of the cumulative stock return for the fifteen years after thepoint of transition divided by the ratio of the cumulative stock return for the fifteen

years prior to the point of transition must exceed 3.

The good to great performance pattern must be a company shift, not an industry

event. In other words, the company must demonstrate the pattern not only relative to

the market, but also relative to its industry.

DIRECT COMPARISION SELECTION PROCESS

Here, the objective is to find the companies that could have done what the good-to-

great companies did, but failed to do so, and then ask: What was different? A

systematic and methodical collection and scoring of all obvious comparison

candidates for each good-to-great company, using the following six criteria.

Business Fit: at the time of transition, the comparison candidate had similar products

and service as the good-to-great company.

Size Fit: At the time of transition, the comparison candidate was the same basic size

as the good-to-great company. We applied a consistent scoring matrix based upon the

ratio of the comparison candidate revenues divided by the good-to-great company

revenues at time of transition.

Age Fit: The comparison candidate was founded in the same era as the good-to-great

company. We applied a consistent scoring matrix based upon a calculated age ratio of

the comparison candidate to the good-to-great company.

Stock Chart Fit: The cumulative stock returns to market chart of the comparison

candidate roughly tracks the pattern of the good-to-great company until the point of



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transition, at which point the trajectories of the two companies separate, with the

good-to-great company outperforming the comparison candidate from that point on.

Conservative Test: At the time of transition, the comparison candidate was more

successful than the good-to-great company-larger and more profitable, with a stronger

market position and better reputation. This is a critical test, stacking the deck against

our good-to-great companies.

Face Validity: This takes into account two factors: (1) The comparison candidate is

in a similar line of business at the time of selection into the study, and (2) the

comparison candidate is less successful than the good-to-great company at the time of

selection into the study.

Thus, face validity and conservative test work together: Conservative test ensures that

the comparison company was stronger than the good-to-great company at the year of

the good-to-great companys transition and weaker than the good-to-great company at

the time of selection into the study.

Each comparison candidate is scored on each of the above six criteria on a scale of 1

to 4.

4 = The comparison candidate fits the criteria extremely well there are no issues or

qualifiers.

3 = The comparison candidate fits the criteria reasonably well there are minor issuesor qualifiers that keep it from getting a 4.

2= The comparison candidate fits the criteria poorly there are major issues and

concerns.

1= The comparison candidate fails the criteria.



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ETHICAL ISSUES AT GOOD COMPANIESThe recent studies have proved that more people believe in the fact that ethics help in

increasing the growth rate of the economy in the country. The same applies tocompanies i.e. more ethical an organization, higher is the tendency of company being

a great organizationThe million dollar question is ARE BUSINESSMEN ETHICAL?

Many businessmen do not follow basic ethics. There has been prevalence of unethical

practices in business today. As is too well known, most businessmen are lured by the

fast- buck culture, that is, to earn as much money and as far as possible. Ends justify

the means for these businessmen

Case Study:

IMAGE OF TISCO

.adds Laloo Prasad Yadav is my friend, and right in the beginning I made it clear

what friendship stood for. I said to him: You have your rules and we have ours. We

will do everything by your rules. We will not ask you to give a sales tax benefit here,

or some short cut there. In return, dont ask us for any underhand thing and break our

value system. And to his credit, he has never made an indecent proposal. He asked us

to clean up Patna, which we do as our social responsibility. He wanted a college to be

built in Samastipur. We did that since we encourage education. He asked us to built a



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Tata ward for children in Patna hospital, which was in a very pitiable condition and

we did that. Now we are doing hospital in Hazaribagh. Laloo told somebody: Going

for anything illegal to Tatas is like going to an Udupi restaurant and asking for a

tandoorichicken. Sometimes people come to Jamshedpur with expectations and then

find in a week longer than the Tatas wont give money and they give up. If I find of

any officers has done underhand things, than I sack him instantly. says Irani. Nowonder Irani has earned the sobriquet from some leading politicians of Jharkhand -

the prime minister of Jharkhand.When enquired as to the truth of these assertions from a prominent businessman in

Jamshedpur, who is not burdened by any code of conduct, he said: Of course it is

true. That is why TISCO take three months to get something done from the

government in matters which takes me three telephone calls.CODE OF CONDUCT IN TATA which make it world class organization

For the Company For the Employee

To supply goods and services of the

highest quality standards to ensure total

satisfaction of customers.

Conduct themselves professionally with

honesty, integrity, as well as high moral

and ethical standards. To be fair and

transparent and to be seen so by a third

party.

To engage only in activities beneficial

to the national interest of the country

they operate in.

Not derive any benefit from any

information about the company or group

which constitutes inside information.

To be fully transparent in accounting

and financial reporting standards.

Report to the management any actual or

possible violation of the code or an event

that the employee becomes aware of, that

could affect the business or reputation of

the employees company or any other

company belonging to the Tata group.

To fully strive for the establishment and

support of a competitive open-market

economy and to abhor unfair trade

practice.

Permits employee to pursue an active role

in civic or political affairs as long as it

does not affect the business or interest of

the company or the group.To neither give nor take any illegal

payment, remuneration, gift, donation,

or comparable benefit to obtain business

or favors.

To comply with all regulations

regarding preservation of the

environment.

To be a good corporate citizen and to

actively assist in the improvement of the



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life of the community with the objective

of making it self-reliant. These social

activities are regarded as an integral part

of their business plans and not optional.

To co-operate and share physical,human, and management resources with

other companies belonging to the Tata

group so long as this does not adversely

affects its business interests and

shareholder value.

LARSEN & TOUBRO LTD.

Larsen & Toubro as a World Class Organization

L & T i.e. Larsen & Toubro Limited was incorporated on 7 th February 1946. L & T,a construction, engineering and cement major is among the largest and most reputed

companies in Indias private sector. L & T carries on business as civil, mechanical,

electrical, chemical & agricultural engineers, as manufacturers, as importers &exporters and as contractors. The company represents a large number of overseasmanufacturers, notably manufacturers of tractors, agricultural machinery, dairymachinery, film cooling towers & general industrial & engineering plants and coalmining machinery.



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Its reputation is based on a strong customer orientation, the technologicalsophistication that characterizes its products and projects, and an impressive record ofachievements over six decades.

L & T has initiated a transformation process to ensure that it emerges as aknowledge-based premium conglomerate in the shortest possible time. Its portfolioconsists of an Engineering core, and thrust areas- Cement, Information Technologyand Communications.

The Engineering core compromises Engineering & Construction projects,Construction, Heavy Engineering and Electrical & Electronics. L & T has achieveddominant domestic leadership in each of these industrial and infrastructure relatedbusinesses where technology, innovation and process know-how are critical successfactors.

L & T is Indias cement leader, with over 15 million tones per year of installedcapacity. Each of its plants incorporates state-of-the-art technology. L& T Cement hasstrong brand equity and commands a price premium in most markets due to itsconsistency in making high quality products.

In IT, L & Ts fully-owned IT subsidiary, L & T Information Technology limited hasidentified 5 thrust areas for the global market place financial services,manufacturing, services, communication and utilities with a common e-commerceand ERP focus.

L & T commenced operations as a partnership firm in 1938 set up by 2 immigrantDanish engineers, Henning Holck-Larsen and S K Toubro. These engineers wererepresentatives of SL Smidth & Company. L & T was subsequently incorporated asan Indian company in 1946 and went public in 1951. Over the years the company hasmade significant progress in its core business of engineering and construction.



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Cement is a relative recent diversification. L & T is a professionally managedcompany with no specific identification to any group. Reliance group is the singlelargest private stakeholder. FLS together hold the major stake in the company. TheCEO is Mr. A. M. Naik, who is credited with imparting new focus and shareholdervalue orientation to the company.

It focuses on introducing new products, branding and out sourcing. It followsfollowing three methods

Introduce new products in existing markets.

Introduce new products in new markets.

Introduce existing products in new markets.

Enhance sales of existing product in existing market

Liberalization & Globalization

Liberalization brought an awakening in L & T. according to L & T; globalization is avery good thing for India and Indian customers. Change in economic policies in 1991had a great impact on L & T. but L & T was able to face the global challenge. It stooderect even after change in economic policies, though at the beginning it had face fewshocks but then soon it came out of the depression.

Due to liberalization and globalization, L & T had to face severe competition fromMulti National companies. According to change in policies, custom duties andreduction in various taxes, the price of MNC products came down or went below theprice of L & T. MNC had improved technology so they could afford low cost. L & T,

however, managed to come out of this storm. Before liberalization workers used toput less effort, after liberalization they started putting more efforts.

PERSONALITY ETHIC CHART

FOLLOWED BY L & T SINCE 1930


MANIPULATIVESKILLS AND

INFLUENCINGTECHNIQUES

ACTION TOGET WHAT WEWANT FROM

OTHERS


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Personality ethic solves relationship problems temporarily, the cronic problems

resurface time and again

Future outlook

Looking ahead, the company is well positioned to utilize any upturn in the domesticeconomy. The government of India has committed significant resources to the roadsector. Besides being an opportunity for the E&C division of the company, theseprogrammes will increase consumption of cement and create demand for constructionequipment. There are opportunities in the development of network of cross-countrypipelines, modernization and up gradation of existing refineries as also in oil and gasexploration and production fields. This augurs well for the company. Thegovernments incentive to privatize defence sector has opened up uniqueopportunities for the company. Aerospace and nuclear energy are other areas ofpotential growth considering the skill sets of the company.

Meanwhile, the successful accreditation of the company as supplier of criticalequipment to various global oil majors and EPC companies has opened up interesting

avenues for expanding the companys heavy engineering business overseas. The


PUBLICIMAGE

QUICK CAREERDEVELOPMENT

SUCCESS

.


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companys track record is successful execution of power projects in Oman andSrilanka and many construction projects in Middle East would place the company atan advantage to pursue international opportunities further. They expect, over the next3 to 5 years, the companys revenues to grow from its international business.Thecompany continues to discharge its responsibilities towards society ant the

environment through various programs to promote community health and education.They are committed to contribute their share of profit in the nation-building programthrough excellence, technology, innovations and total customer satisfaction.

"I am a firm believer in the power of HR as a vehicle for change; a tool for transformation.

HR is an integral part of a successful organizations strategy", said A.M. Naik, Chairman

and Managing Director of Larsen & Toubro Ltd. He was delivering the keynote address at

the launch of the BMA Annual HR conference on "CEOs perspective: The HR Agenda"

organized by the Bombay Management Association (BMA), Indias premier Management

Association.

Naik said that the organizations in India, that wish to excel in the global arena must

seamlessly weave HR along with their Vision statement. "A world-class HR department is a

primary enabler in transforming a company from Good to Great." Citing L&T as an example,

Naik said that the future of any company hinged on, amongst others, its ability to attract and

retain people, managing expectations, evolving performance parameters and a robust

appraisal and reward system. "In L&Ts quest to become an Indian MNC, we have had to

face some of the toughest challenges in our entire history of existence. Towards this end, we

realized that HR and IT are the two weapons, two critical enterprise enablers."

Infosys Technologies Ltd. is a leading provider of IT consulting and implementation

services to the worlds finest organizations. Infosys provides complete end-to-endsolutions for technology driven business transformation initiatives.- as partners toconceptualize and realize technology driven business transformation initiatives. Withover 27,000 employees worldwide, they use a low-risk Global Delivery Model(GDM) to accelerate schedules with a high degree of time and cost predictability. TheGDM of Infosys had made global strategic sourcing a reality today, and forms thevery core of Infosys needs to respond to clients on-time and on-budget. By doingwork where it makes more sense, it brings faster, superior quality solutions atminimum risk and optimum cost.



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Infosys provides solutions for a dynamic environment where business and technology

strategies converge. Their approach focuses on new ways of business combining IT

innovation and adoption while also leveraging an organization's current IT assets.

They work with large global corporations and new generation technology companies -

to build new products or services and to implement prudent business and technologystrategies in today's dynamic digital environment.

Infosys combines world-class business and IT consultancy services with domain and

technical expertise. Their ability to bundle services, brings integrated sourcing to their

clients, ensuring that they get the right mix of technology and services appropriate to

their requirements.

Services include:

IT and business consultancy

Product Development

Business Process Outsourcing

Infrastructure Management

Systems Integration and Applications Management

Keeping pace with technology

Infosys invests extensively in technology & domain research to understand how

technology impacts your business as a whole. With expertise, experience and strategic

relationships with the worlds leading companies and partnerships with industry

leaders allows Infosys to stay ahead of the technology curve.

Superior Quality. Excellence in Delivery. Optimum Cost.

Infosys was the first organization in the world to attain the now globally recognized

CMM Level 5 IT Services quality standard (i.e. superior quality and excellent

delivery at the optimum cost).Assignments are managed to comply with this standard,

bringing the level of projects on time and on budget to 96%, 70% more than the

industry average.

World-Class, Secure Infrastructure

Infosys works through of a backbone of resilient, secure infrastructure spread across

multiple locations. Communication links through a number of service providers via

several paths ensures that the clients business is safe under any eventuality.

Ethos of Corporate Excellence



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Infosys is applauded for its excellence in corporate governance, consistently voted as

the leading employer and trusted by globally recognized brands, and setting high

standards has always been the Infosys way of doing business.

Infrastructure

With sustained infrastructure investments over the years, we have created a world

class knowledge-networked work environment from where our employees provide

high quality solutions to clients. These investments enhance employee productivity

and reduce engagement risk for our clients.

A multi-dimensional approach, planned to support growth and technology

advancement, ensures that the solutions we architect for our clients are built in a most

productive and effective manner. Different elements of Infosys' infrastructure

comprise:

The following:

- Development center campuses in India

- Global development centers

- Client connectivity infrastructure

- Information infrastructure

Geographical Extent Worldwide

Today, the business of the company has approximately 21,00 employees worldwide inevery major geography around the world.

http://www.infosys.com/infrastructure/india.asphttp://www.infosys.com/infrastructure/global.asphttp://www.infosys.com/infrastructure/client-connectivity.asphttp://www.infosys.com/infrastructure/info-structure.asphttp://www.infosys.com/infrastructure/global.asphttp://www.infosys.com/infrastructure/client-connectivity.asphttp://www.infosys.com/infrastructure/info-structure.asphttp://www.infosys.com/infrastructure/india.asp


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Alliances

Infosys has selective strategic alliances and go-to-market partnerships. These

alliances are based on complementary capabilities that bring value to clients.

http://www.infosys.com/alliances/microsoft.asp


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Hiring

Infosys conducts hiring programmes the world over and in specific, the

following geographic locations/regions in the world:

The United States of America

Canada

Europe

India

Asia Pacific



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THE ADITYA BIRLA GROUP

Background

The roots of the Aditya Birla Group date back to the 19th century in the picturesquetown of Pilani, set amidst the Rajasthan desert. It was here that Seth Shiv NarayanBirla started trading in cotton, laying the foundation for the House of Birlas. ThroughIndia's arduous times of the 1850s, the Birla business expanded rapidly.

Introduction :

World leader in viscose staple fiber

Among Asia's largest integrated aluminium producers

Fastest-growing copper company in AsiaThe 8th largest cement producer in the worldFourth largest producer of carbon black

World's largest single-location palm oil refinery

World's third largest producer of insulators

The major companies of the Group are Grasim,Hindalco,Indian Rayon,Indo Gulfand Indal, are among India's leading corporates.

The Aditya Birla Group is one of India's largest business houses. Global in vision,rooted in Indian values, the Group is driven by a performance ethic pegged on value

creation for its multiple stakeholders.Worldwide Extent

The Groups operations span 40 companies, straddling 18 countries; to name a few Thailand, Malaysia, Indonesia, Egypt, Canada, Australia and China. Its revenues arein excess of US$ 6 billion and it has a market capitalization of US$ 5 billion. TheGroup has 72,000 committed employees and over 700,000 shareholders.

The Aditya Birla Group is a dominant player in all its areas of operations:

:: Aluminum, copper, cement, viscose staple fibre, carbon black, viscose filament

yarn, fertilizers, insulators, sponge iron, chemicals:: Branded apparels, insurance and asset management, software, telecom

Global perspective

:: A world leader in Viscose Staple Fibre (VSF):: A non-ferrous metals powerhouse:

:: One of Asia's largest integrated aluminium producers, and among the mostcost-efficient

:: Fastest-growing copper company in Asia. Global-sized and globally

http://www.grasim.com/http://www.hindalco.com/http://www.indianrayon.com/http://www.indo-gulf.com/http://www.indal.com/http://www.grasim.com/http://www.hindalco.com/http://www.indianrayon.com/http://www.indo-gulf.com/http://www.indal.com/


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competitive:: World's largest single location producer of palm oil:: Third largest producer of insulators:: Fourth largest producer of carbon black:: Eighth largest producer of cement, and the largest in a single geography

Beyond business

A value-based, caring corporate citizen, the Aditya Birla Group inherently believes inthe trusteeship concept of management. Part of the Groups profits is ploughed backinto meaningful welfare-driven initiatives that make a qualitative difference to thelives of marginalized people. These activities, important to the Aditya Birla Group arecarried out under the aegis of the Aditya Birla Center for community initiatives andrural development, which is spearheaded by Mrs. Rajeshree Birla.

Vision: To be a premium conglomerate with a clear business focus at each businesslevel.

Mission: To pursue the creation of value for our customers, shareholders, employeesand society at large.

Training programmes

They are classified as:

:

:

Multi-tier programmes aimed at addressing the needs of individuals at differentlevels in the Group and in different functions. Under this category are programmesfor Outstanding Leadership, Emerging Leadership, Young Leaders and GeneralManagement, etc.

:

:

Functional programmes to develop skills in sales and marketing, supply chain,manufacturing and finance.

:

:

Role-specific programmes aimed at developing skills for specific assignmentssuch as unit heads, function and department heads.

:

:

Competency-based programmes which focus on building individual skills andenhancing personal and team effectivness.

:

:

Business-focused programmes to address business needs, issues and practicesspecific to a particular business.

:

:

Outreach programmes, such as performance management programmes and team-building workshops, are conducted on-site.

Group Management Trainee Scheme



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The Group has always been home to great leaders --passionate professionals with a razor sharp focus anda far-sighted vision. They believe in the combination

of leadership of experience and leadership of youth. The average age to occupyleadership positions within the Group has come down because of significant

investments in inducting and developing young talent across the Group.

The Group Management Trainee scheme (GMT) is a way of ensuring that theorganisation is bottom driven through a bunch of young, enthusiastic, contemporaryleaders. The GMT programme focuses on sharpening already fine skills, by taking thetrainees through a systematic process of learning and development. GMTs have beenchampions of change within the Group. They bring youthful exuberance, newknowledge and a new perspective of the world to come, which will take the AdityaBirla Group forward.

The GMTs get the opportunity to experience the practical aspects of our diverse

businesses. The programme includes one year of rotational training, cross businessexposure and corporate function exposure, ensuring that the GMTs gather richexperience within the first year of joining. At each stage of training, a mentor isassigned to the GMT. The role of the mentors, most of whom have been trained inmentoring, is to interact with the GMT on a regular basis, act as a friend and guideand also facilitate his/her overall development.

"I firmly believe that our people provide us with the cutting edge. For

sustainable success, their performance orientation and customer focus is

imperative. In my view, only where people grow, the organisation grows." Mr. Kumar Mangalam Birla, Chairman, The Aditya Birla Group

Driving the growth of the Aditya Birla Group are 72,000 committed employees,spread over18 countries across the globe. The diversity of location, language andculture blends seamlessly into a common work ethos which hinges on fosteringexcellence, recognizing and rewarding entrepreneurship.

They believe in empowerment, delegation and calculated risk taking. Their ongoingendeavour is to create an organizational ambience where talent can bloom. To do so,they strive to make the workplace a source of creativity, innovation and one thatmakes work meaningful.

They ensure that all of their policies, forward-lookinginitiatives and goals are fully communicated to all employeesand that they understand and relate to these. Their commitment

to their people is reflected in the sense of belonging and pride every employee feelstowards the Group and the passion and commitment they bring to their work.

Their human resource policies have won recognition and the Group has beennominated among the best employers in India, in two separate surveys conducted byBusiness Worldand Business Today in 2003.

HUMAN RESOURCES MGMT. PROF. RAJNI SHAH

33


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The Group has been ranked 20th in a study conducted by Hewitt Associates on the'Best Employers in IndiaThe Group has been ranked 16th in India's first ever survey of 'Great places towork in', by Business World magazine. The Group's joint venture (JV) concern,Birla Sun Life Insurance Co Ltd, was ranked ninth in the same study.

Gyanodaya, their Management Learning Centre is ISO 9001:2000 certified75 per cent of their employees are below 40 years of ageTheir attrition rate is 1.9 per cent

STATISTICAL FINDINGS & VIEWPOINTS



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World-Class HR Organizations Spend Less yet Deliver More

World-class HR organizations spend 27 percent less per employee than their peersand operate with 35 percent fewer staff, according to 2004 research into world-classHR performance. At the same time, world-class companies deliver greater value

through better alignment with corporate strategy and lower rates of voluntary andinvoluntary terminations. While technology and outsourcing are key factors inachieving world-class performance in HR, world-class companies succeed withoutspending more money in these areas. World-class companies actually spend nearly thesame amount that median companies do on both technology and outsourcing. Instead,world-class HR organizations achieve their improved efficiency and effectivenessthrough holistic efforts including the use of technology to successfully minimizecomplexity, reduce upstream error rates, and integrate end-to-end HR processes.World-class organizations also use outsourcing on a more selective basis, and morestrategically, as a way to more efficiently scale discretionary services

Gap between Median and World Class Continues to Expand

World-class HR organizations spend $1,390/employee annually, 27 percent lessthan median companies, which spend $1,892/employee. Both world-class and mediancompanies dedicate more than half of their HR spending to labor costs, but lowerspending on labor makes up the lion's share of the gap between world-class andmedian HR organizations. World-class companies spend 31 percent less than mediancompanies on labor ($742/employee versus $1075), and rely on 35 percent fewer HRstaff per 1000 employees. HR costs per employee have increased for both world-classand median companies since 1996. But, world-class companies have seen an increaseof only 12 percent, compared to 21 percent for median companies. So, the gapbetween world-class and median is clearly growing larger.

World-class organizations are also significantly more effective than their medianpeers, Senior HR executives at all world-class organizations tie business strategy topeople strategy, compared to only 60 percent of median companies. World-classorganizations are 87 percent more likely to have articulated an explicitly statedworkforce strategy. World-class HR organizations also manage their workforcesmuch more effectively, and as a result see 61 percent fewer voluntary terminationsand 43 percent fewer involuntary terminations. The gap between world-class andmedian HR performance has always been there. But it's widened significantly over theyears. Companies that are median performers today have reason to be concerned.

World-class organizations are spending less on HR, driving to significantly lowercosts in both transactional and employee life cycle processes while providing higherstrategic value to their companies. It's also easy to understand how basics like lowerstaff turnover rates can help make companies with world-class HR organizations morestable and more effective, and provide a real competitive advantage."

Holistic Approach Key to World-Class Success



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Overall, there is no single silver bullet to achieving world-class performance, and aholistic approach is needed. Thus, we conclude that to reduce overall costs andparticularly labor costs, HR organizations need to implement best practices andprocess improvements to better leverage their technology and outsourcinginvestments. In fact, world-class HR organizations spend almost exactly the same

amount per employee as median companies on technology, and 10 percent less peremployee on outsourcing. But, world-class organizations use technology andoutsourcing more effectively than median companies, to enable improvements inother areas.

Several factors clearly contribute to the success of world-class HR organizations atimproving their efficiency and effectiveness. World-class HR organizationssignificantly reduce their complexity in many areas. For example, they utilize 69percent fewer health & welfare plans and 46 percent fewer compensation plans thanmedian companies. They also significantly cut upstream error rates in key processessuch as health and welfare administration, compensation administration, andemployee data management. These reduced error rates generate significant

downstream benefits. For example, world-class organizations spend 42 percent lessthan median organizations on payroll administration.

World-class HR organizations also focus on process integration, dramaticallystreamlining their operations and using technology more effectively. Mediancompanies are significantly less likely to integrate these areas. While world-classorganizations spend less than median companies on outsourcing, it represents asignificantly larger percentage of their overall spend. World-class organizations alsouse outsourcing much more strategically, as a way to execute with greater flexibilityand scale discretionary services while avoiding internal disruptions. For example,world-class companies spend 55 percent less than median companies outsourcingstaffing and workforce development, while they spend 25 percent more than mediancompanies outsourcing total rewards administration.

There's this misconception that to cut costs in HR you eliminate staff and replacethem with technology and outsourcing support. But, the numbers simply don't bearthis out. The path to world-class performance is more complex. It's not how muchyou spend, but how you utilize technology and outsourcing that matters. Virtuallyacross the board, world-class companies use technology as an enabler and facilitator,taking care to embed best practices into systems and design them to integrate andstreamline business processes. This takes time and energy, but it pays off long-term.In outsourcing, world-class companies take a similarly thoughtful approach. Theytarget very carefully, identifying individual processes or sub-processes where cost

savings and efficiencies can be generated.



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CONCLUSION

Any organisation wanting to be world class in the near future needs actioned,visionary and purposeful leadership allied to trustworthy, value-adding employees.

The world-class organisation of the future must focus on developing its people andthe environment in which they work. The concept of the `learning organisation' whichstrives continually to develop its people and processes will be an accepted philosophyof all competitive organizations in the future. The next step is for organizations todevelop not only their current employees, but also the next generation of employees,through improvements in general social and environmental conditions.

World-class organizations in the new millennium will have to focus outwardly and

involve their suppliers and customers in a strategic alliance that accepts social and

environmental responsibilities, thereby maintaining a cohesive, positive society and

producing the best possible conditions for business growth. Organizations of the

future will not be able to expand into new markets and win market share without

entrusting their employees with the purposeful use of the organizations resources.

The organisation that is socially and environmentally responsible and attracts the most

valuable knowledge workers will gain a competitive advantage by winning business

from other less responsible and less trusting organizations.

World-class organizations of the future will gain competitive advantage fromproviding a stable social order. In contrast, those organizations which have notcontributed to these needs will find themselves trying to operate in an environmentlikely to be disturbed by unrest, violence and anarchy. As social structures erodeelsewhere the organisation that has assumed a socially responsible stance will gain acompetitive advantage by obtaining the dedication of productive employees and

customer loyalty in a secure environment. The most enlightened organizations willactively promote the worldwide mutual benefit of providing efficient and effectivesocial goods and infrastructure that supports the operation of global markets forconsumer goods.

Hey, take a leaf out of the books of our very own Mumbai Dabbawalas whoveachieved Six-sigma and are now classified as a World-Class Organization!



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hrm project rajni shah nmtybms tahaab rais

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