Best employer surveys

Since the previous article was about the attrition in R&D centres in India and the attrition level at Govt R&D institution. The next step will be the best employer survey to find the answer to attrition question.
The best employer surveys and ranking of best employer is regularly conducted by Hewitt Associates, fortune magazine, outlook magazine etc. These surveys explore the impact of human capital management in Indian companies and look into factors such as salary compensation, employee satisfaction, workplace diversity, employee personal values and corporate values etc turning the organisation into best employer. The best employer attract more talent with high retention ratio and less attrition.

The govt R&D organisation with reasonably good salary structure after 6 cpc, cutting edge technology projects in space, defence, atomic energy etc, leadership exposure, best facilities like housing, schooling, lush green campuses, walk to work etc will surely lead the race in the survey. These could be one of the best platforms for attraction of talent.

Attrition in R &D centres

. I read an article in the newspaer about the attrition survey conducted byZinnov managment consulting. They have released their quarterly attrition tracker wherein the attrition rate stood at 4.7% up by one percent over the previous quarterand the attrition rate stood at 18.8% on a yearly basis analysed over 50 MNC R&D companies in India.The finding of survey points out that attrition level in large comapnies were relatively higher than small companies. companies with over 1000 employees witnessed average attrition level of 8% percent whereas the companies with less than 1000 employees faced attrition of 4%. Dissatisfaction with salary increments, re-alignment of centre level goals, forced attrition to create bandwidth for hiring new people were some of the reasons cited.If we see the some of the reasons are non-monetary like leadership postions, forced attrition etc.
This remains me of the situations happenning in Govt R&D institution before the 6th pay commission. Many organisations like DRDO,ISRO,CSIR and other premier R&D organisation faced the total attrition resulting in dwindling scientific personnal strength.
I do not know about the situation after the implementation of 6th pay commission. i feel the situation would have improved due to improved pay package and the turmoil in the markets. The pay alone does not constitue attrition and others are internal ,
the Govt R&D organisation also can conduct an survey internally to find out the attrition level so that they can keep watch on exodus of trained scientific man power.

Efficient management continued

Kindly refer part I

So now comes the question of why efficient management. It is primarily every organization has a mission and work towards achievement of the same. The effective management helps in achieving the goals faster.

Secondly as we all know all efficiency is for saving in resources it can be water, electricity, money, raw materials and so on.

Then the efficient organization are identified by the brand image they have created

Growth –The efficient management practice results in faster growth of the organization

Customer satisfaction- Now every where customer satisfaction is the focus and organization since they know that they can survive only when the customer is satisfied so that more and more businesses can be obtained

Self satisfaction- finally self satisfaction results in the sense of achievement in obtaining mission.

Factors affecting efficient management

People

Psychology – study of mind, personality positive psychology help in effective utilization. The psychometric scheme of testing in recruitments adds great impact in selecting right minds.

Knowledge- Knowledge is an important attribute and training gives the knowledge. Whether it is IAS or the clerical cadre every body is imparted training so that they acquire the relevant knowledge. The private sector lays great emphasis on knowledge and Infosys academy and other training centres of software industry stand testimony to this aspect.

Motivation is essential for performance,

Leadership guides the people into excellence. Groom people for leadership position.

Innovative ideas to lead to new path, innovative ideas should be welcomed. The fear of failure or mistake leads to shell mentality. The issue needs to addressed for efficient performance.

The culture of team rather in individual should be brought in for excellence.

Moral and ethical values guide the team to stand tall and to do the work without fear or favour lead to exemplary performance.

Processes

Normally processes we do affect the efficiency. We have to ask ourselves whether our processes are simple and easy or complicated. Complicated processes results in difficulty in understanding and take lot of time in execution. Such processes have to be identified for simplification.

Duplicity- avoiding duplicate work will save lot of time. There exist many processes wherein the duplicity is there and such process has to identify scientifically and eliminated.

Delegation- should be extended so that core issue is given importance. There is a misconception that keeping everything with one person is power whereas delegation is power so that subordinates encouraged taking decision and taking pride in exercising power.

Accuracy and speed. The technology helps in accuracy and speed and there a lot of example like railway reservation etc . The technology helps in accuracy and speed.

Customer focus. There is a great debate in organizational especially in govt organization whether approach is customer centric or rule centric. The effective leadership question comes in to play so that the customer remains the focus without violating rules.

Technology

Technology provided a quantum lead in efficient management of resources which we can see all around. Whether it is railway reservation, ATM CARD etc has shows that technology has changed the way the work is done. The revenue departments in state govt have digitized all the records and provide land details, registration value etc. So to remain in forefront adoption of technology is the only way forward for survival.

E-governance enabling all transaction through web will increase efficiency. E-procurement and e-payment will increase quick response time besides transparency. Many organizations like RAILWAYS have already implemented it successfully.

Adoption of future technologies, networking etc will surely increase the efficiency

 

Environment

1. Organizational environment

2. Personnel Environment

The organization al environment like better working conditions, good hygiene, recreational facilities etc provide great thrust in performance. The good environmental conditions give a feel of freshness and motivate people towards excellence. Shabby working conditions reduce the positive energy.

In the meantime we have to look around the world what is happening in the environment & ecology

Energy is precious measure like electricity, water conservation result in savings as well social responsibility towards lesser carbon emission. The use of CFL Bulbs in lighting etc is a welcome step.

Go Green- use alternate energy, reduce paper, change building plan suitable to allow more sunlight

Recycled items – buy only recycled paper for office CSIR can set a target for buying only recycled paper etc.

Personnel environment

Man is a social animal in lives in society of family, friends etc and they have influence in his commission and omission.

All human beings are carrier conscious opportunities and growth will provide stimulus.

Mentoring is personal it helps the person in molding and developing into full potential.

Support & guidance at the time of crisis from the top leadership give confidence to youngster to take upon challenges.

Groups some group achieve full potential and some are not. The group is behavioraland the group affect the individual performance. The crab story of pulling each other not to allow one to climb upwards is the best example how the group should not be.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficient management

had the opportunity to make a presentation in our organisation about the efficient management of resources being part of organisation transformation initiative.
The transformation of organisations are taking place all over the world and organisations are trying to transform themselves. Organisation does not want to be like a bonsai tree which remains as it is after years of growth.
The transformation are taking place either through leadership or by the people.
The transformation initiative coming from the leadership is common and leaders because of their vision, ability and charisma has transformed the organisation . There are numerous examples like Infosys, Wipro, Reliance and so on.
We should take note that transformation of organisation has also happened by the people in the organisation because they wanted to transform themselves in to better. The Amul story, the Grameena bank , etc stand testimony to the sprit of people.

I was little curious when I was asked to present whether it would be effective management or efficient management.
According to peter drucker,

“Effective is doing right thing”

“Efficient is doing things right”.

EFFECTIVE MANAGEMENT
Doing right thing is the ability to identify critical issues and opportunities that can change organization

EFFICIENT MANAGEMENT
Doing things right is maintaining and sustaining the growth for energizing and maximizing the change.

In this sense effective management comes with leadership at the top of affairs and efficient management is for the down the line ,for management of resources so that the issue is seized and progress is achieved.


Continued in next part

Article in the education plus “THE HINDU”

There was an article in the education plus " THE HINDU" on 24/05/2010 titled 'teaching as a career for engineering students' by Director of National institute of technology(NIT) Tiruchi.

The article clearly spelt out the monetary benefits in the NIT's after the 6^th pay commission implementation with cost to college in respect of various positions in the NITs. The CTC of young Asst. Prof is starting at Rs. 7.20 lakhs which is more than any industry standard. Further the article goes on adding the quality of like Maximum of 8 hours vs. minimum of 12 hours in the industry , the intangibles like respect in society, freedom, excellent work/life balance, inner satisfaction and joy of shaping next generation etc.

The article reinforces my belief that such article should turn the young & bright minds to turn towards teaching, R&D etc. It is the turn of Govt R&D organisation to highlight this points with CTC benefits, the intangibles, quality of life etc. If you see any advertisement of govt departments it is merely a pointer advertisement directing you to go to a particular web site. Compare this with a advertisement form software industry it is a half page add with colour photos , inspirational slogans, catchy phrases. I think this could be one of the reasons where we lose out.

The benefits of Govt jobs are discussed at length and if you are a first time reader you are requested to go through earlier articles.

blog is back

dear all,

there is a long gap for unknown reason.
i think sometime the break gives more bondings.
we will continue our discussion with more purpose and value. A lot has happened from then to now, 6th pay commission report, the finacial turmoil, real estate bubble and all. The fall and rise of markets and the gloom and boom of software industries.
My new focus will be to cover all subjects of interest.
i solicit your valuable comments

CPF Vs New pension Scheme

Please the read the earlier parts for continuity.

The new pension scheme is similar to CPF scheme and it allowed contribution to the tune of minimum of 10 % of their basic pay and DP and maximum of his total basic pay and DP. The Govt matching contribution will be 10 % of the basic and DP only. The other aspect is the employees are entitled to withdraw his contribution as he liked on the prescribed conditions. The Govt contribution of 10 % was maintained separately which is not withdrawable and the accumulation along with the interest is paid to the employee at the time of retirement along with his savings. This system I feel deprived the employees the compounding effect and employees were withdrawing their savings fully leaving nothing at the end except the Govt contribution.

The advantage of New Pension Scheme is that the employee contribution of 10 % minimum is kept separate in tier 1 account and is non-withdrawable along with the Govt contribution. The withdrawable part is separated in to Tier ll account. This system leads to compulsory savings of 20 % (10 % contributed by the employee + 10 % by means of Govt contribution) of one's salary which is good for employees at the end and they get the benefit to the maximum.

The other advantage is of new pension scheme is that the Dearness allowance (DA ) is also added to the kitty and it consists of Basic Pay + DP + Dearness Allowance. This is the extra benefit to the new comers and they get extra contribution of prevalent DA to their savings from the Govt.

The following illustration provides the rough estimation of benefit one will be getting at the end of service. We will take the case of new recruit engineer aged around 23 years contributing 10 % from his side (Basic + DP +DA) and the matching contribution from the Govt side. We will assume the same logic of 10 % hike in his salary every year (This 10 % salary increase is estimated based on the previous pay commission's pay scale and dealt in earlier articles)

The annual contribution at the first year of his service will be ( 10% of his salary Rs 1692 + matching contribution from Govt Rs. 1692 = Rs. 3384 * 12 = Rs. 40608 ) and is increased by 10 % every year till his retirement. The employee also does not feel burdened by setting aside a sum of Rs. 1692 every month from his side and in the long run it will benefit him a lot.

years	contribution	cum . Contribution	Interest @ 10%	total
1	40608	40608	4061	44669
2	44669	89338	8934	98271
3	49136	147407	14741	162148
4	54049	216197	21620	237817
5	59454	297271	29727	326998
6	65400	392398	39240	431637
7	71940	503577	50358	553935
8	79134	633068	63307	696375
9	87047	783422	78342	861764
10	95752	957515	95752	1053267
11	105327	1158594	115859	1274453
12	115859	1390312	139031	1529344
13	127445	1656789	165679	1822468
14	140190	1962658	196266	2158923
15	154209	2313132	231313	2544445
16	169630	2714075	271408	2985483
17	186593	3172075	317208	3489283
18	205252	3694535	369453	4063988
19	225777	4289765	428977	4718742
20	248355	4967097	496710	5463806
21	273190	5736997	573700	6310696
22	300509	6611206	661121	7272326
23	330560	7602887	760289	8363175
24	363616	8726792	872679	9599471
25	399978	9999449	999945	10999393
26	439976	11439369	1143937	12583306
27	483973	13067279	1306728	14374007
28	532371	14906378	1490638	16397016
29	585608	16982624	1698262	18680886
30	644168	19325054	1932505	21257560
31	708585	21966145	2196615	24162760
32	779444	24942204	2494220	27436424
33	857388	28293812	2829381	31123193
34	943127	32066320	3206632	35272952
35	1037440	36310392	3631039	39941431
36	1141184	41082615	4108262	45190877
37	1255302	46446179	4644618	51090797

 

The retiring corpus at the interest of 10% is around Rs 5.00 crores and he can buy annuity from that corpus.

In the similar way the return at the interest of 6 % will be

 

years	contribution	cum . Contribution	interest	total
1	20280	20280	1217	21497
2	22308	43805	2628	46433
3	24539	70972	4258	75230
4	26993	102223	6133	108356
5	29692	138048	8283	146331
6	32661	178992	10740	189732
7	35927	225659	13540	239199
8	39520	278719	16723	295442
9	43472	338914	20335	359248
10	47819	407068	24424	431492
11	52601	484093	29046	513138
12	57861	571000	34260	605260
13	63647	668907	40134	709041
14	70012	779053	46743	825797
15	77013	902810	54169	956978
16	84715	1041693	62502	1104195
17	93186	1197381	71843	1269223
18	102505	1371728	82304	1454032
19	112755	1566787	94007	1660794
20	124031	1784825	107089	1891914
21	136434	2028348	121701	2150049
22	150077	2300126	138008	2438133
23	165085	2603218	156193	2759411
24	181593	2941005	176460	3117465
25	199753	3317217	199033	3516251
26	219728	3735978	224159	3960137
27	241701	4201838	252110	4453948
28	265871	4719819	283189	5003008
29	292458	5295465	317728	5613193
30	321704	5934897	356094	6290991
31	353874	6644865	398692	7043556
32	389261	7432818	445969	7878787
33	428187	8306974	498418	8805393
34	471006	9276399	556584	9832983
35	518107	10351089	621065	10972155
36	569917	11542072	692524	12234597
37	626909	12861506	771690	13633196

 

The return generated will be Rs 1.36 crores at 6 % of interest.

The illustration of 6 and 10 was taken as is done in other ULIP Schemes as per the IRDA guidelines. The calculation is done approximately and not taken into account the premium allocation and other charges which will be charged by PFRDA. The employee can choose the option as per his risk profile and return will vary accordingly.

Thus the new pension scheme is able to give better return than the CPF scheme because of inclusion of DA and non-withdrawable nature.