Fighting Attrition - An Idea
Human nature is such that it gets stimulated most through steady flow of rewards even though they may be small. They key is frequency rather than magnitude of reward. I was just wondering whether this fundamental human nature can be exploited to tackle the menace of attrition in organizations.
We have appraisal system that may be quarterly, half-yearly, or annual affair. Bulk of the reward comes annually through promotion, raise, trips, bonus, etc. Even though many companies give rewards half-yearly, the proportion of these is extremely low in the total reward universe.
I have a simple question - can't we divide the annual reward package into many smaller parts to give at regular interval to employees and associates? This would not put significant additional burden on the organization but will definitely play a psychological trump card to engage employees. And even the additional burden would turn out to be much less than the cost of attrition.
The biggest advantage of this reward mechanism would be its role as a motivation accelerator. Frequent rewards in various monetary and non-monetary forms can help in effective engagement while keeping the morale of employees high. These small but frequent rewards would act as a validation of their capabilities and talent. These would force them to think that they are valuable for the organizations and their contributions matter in the well being of the organization.
I feel it's worth experimentation.
ASIM SINGHAL
PGDM IIIrd
Friday, October 2, 2009
Surviving in Times of Massive Change
"In times of massive change, it is the learner who will inherit the earth, while the learned stay foolishly tied to a world that no longer exists." - Eric Hoffer
This is one thought on which every executive must ponder upon, particularly those who are on the wrong side of age. This is a very relevant thought for the present times when almost everything in business, technology, and society is undergoing massive change. Unfortunately, many of the experienced people fail to recognize these massive changes and how these changes, many a time, make their vast experience and learning meaningless.By failing to adapt to the new realities, they keep themselves and their organization stuck in the past. When things demand radically different way of managing things, these learned people keep on applying the old tricks and tactics that may have worked in the past but have become pre-historic in context to present and future. More often than not things never seem to work. Instead of making any progress, things seem to move backward.In these times, only those survive who see themselves as life-long learner and continue learning new things to tame present and future. Those who think they have had enough learning, fail all along.The key to survival and growth is to cultivate LFA, the acronym coined by me which means "Learning Focused Attitude."
ASIM SINGHAL
PGDM IIIrd
"In times of massive change, it is the learner who will inherit the earth, while the learned stay foolishly tied to a world that no longer exists." - Eric Hoffer
This is one thought on which every executive must ponder upon, particularly those who are on the wrong side of age. This is a very relevant thought for the present times when almost everything in business, technology, and society is undergoing massive change. Unfortunately, many of the experienced people fail to recognize these massive changes and how these changes, many a time, make their vast experience and learning meaningless.By failing to adapt to the new realities, they keep themselves and their organization stuck in the past. When things demand radically different way of managing things, these learned people keep on applying the old tricks and tactics that may have worked in the past but have become pre-historic in context to present and future. More often than not things never seem to work. Instead of making any progress, things seem to move backward.In these times, only those survive who see themselves as life-long learner and continue learning new things to tame present and future. Those who think they have had enough learning, fail all along.The key to survival and growth is to cultivate LFA, the acronym coined by me which means "Learning Focused Attitude."
ASIM SINGHAL
PGDM IIIrd
Thursday, October 1, 2009
Obama touts Wall Street changes on Lehman anniversary
President Barack Obama warned financial leaders on Wall Street not to use the recovering U.S. economy to race back into “reckless behaviour” that could cause a new meltdown. He declared that a bailout-weary public will not break their fall again.
Mr. Obama insisted on Monday that there is an urgent need for tighter financial regulation, and he cautioned his audience not to try to block it. He spoke on the first anniversary of the collapse of the Lehman Brothers investment bank, the largest bankruptcy in U.S. history and a stark reminder of the financial crisis that spread into a deep recession despite huge federal bailouts of major companies.
“It is neither right nor responsible after you’ve recovered with the help of your government to shirk your obligation to the goal of wider recovery, a more stable system, and a more broadly shared prosperity,” Mr. Obama said in a stern bid to boost his regulation proposals.
The President’s speech reflected public sentiment that American taxpayers were immeasurably harmed from last year’s financial collapse — and that, barring change, it could happen again. As investment giants return to profit, millions of Americans are still coping with unemployment, home foreclosures and retirement portfolios that got washed away in the storm.
For symbolic emphasis, Mr. Obama spoke from venerable Federal Hall on Wall Street.
“Unfortunately, there are some in the financial industry who are misreading this moment,” Mr. Obama told a quiet audience of leaders from the investment sector.
“So I want them to hear my words,” Mr. Obama said. “We will not go back to the days of reckless behaviour and unchecked excess that was at the heart of this crisis. ... Those on Wall Street cannot resume taking risks without regard for consequences.”
Afterward, he joined former President Bill Clinton for lunch at a New York restaurant. The White House announced Mr. Obama would address the annual meeting of the Clinton Global Initiative on September 22 while in New York for the United Nations General Assembly meeting.
The public is still edgy about Wall Street and the economy. A year after the meltdown, seven of 10 Americans lack confidence that the federal government has taken safeguards to prevent another financial industry meltdown, according to a new Associated Press-GfK poll.
Yet Mr. Obama’s reach goes only so far; his bid for huge regulatory change is up to Congress.
The President’s plan has yet to gain serious traction on Capitol Hill, as Democratic leaders have been consumed by the health care debate and staff members are still wrestling with the complexities. The plan is being fought by a determined financial services lobby with a major assist from big business groups, and infighting among regulators who oversee the various portions of the sprawling financial architecture has further slowed the process.
But the sluggish pace is expected to pick up in coming weeks. Democrats aim to stick to their promise of completing the bill by year’s end, a timeline Mr. Obama badly wants to keep, but they face long odds.
Republican Senator Judd Gregg, who once considered being Mr. Obama’s commerce secretary, was among Republican lawmakers who responded to the President’s message with caution.
He said, “We must be wary of the reality that — in an attempt to address yesterday’s failures — Congress will put in place regulatory schemes which will fundamentally undermine risk taking.”
Anticipating such criticism, Mr. Obama shot back against those pushing for less regulation.
“Do you really believe that the absence of sound regulation one year ago was good for the financial system?” he said. “Do you believe the resulting decline in markets and wealth and unemployment, the wrenching hardship that families are going through all across the country, was somehow good for our economy?”
He also told Wall Street that it had no need to wait for new laws to begin helping consumers with straight talk in the meantime.
Much of Mr. Obama’s speech amounted to a recap of his proposals, first outlined in June.
He has sought tougher capital requirements for banks, arguing that banks’ buying of exotic financial products without keeping enough cash in reserve was a key cause of the crisis. He wants more openness for the markets in which banks trade the most complex products.
Mr. Obama’s plan also would give the Federal Reserve new oversight powers and impose conditions designed to discourage companies from getting too big. And he proposes a consumer protection agency to make rules for financial products, so people know what they’re buying.
The House Financial Services Committee, led by Democratic Representative Barney Frank, who supports much of Obama’s plan, is expected in October to take up the first piece of the legislation, one that would establish an agency focused on consumer protections. The panel has already passed legislation intended to curb excessive compensation at financial institutions.
Mr. Obama’s plan could face significant revisions in the Senate, where Democrats have joined Republicans in questioning whether more power should be given to the Federal Reserve.
The industry is working particularly hard to kill or at least weaken the consumer protection agency idea, which it says will lead to increased costs for consumers, and various corporate interests are fighting the new rules for complex financial transactions, arguing they could stifle legitimate commerce.
ANSHU KUMAR
PGDM 1st sem
Mr. Obama insisted on Monday that there is an urgent need for tighter financial regulation, and he cautioned his audience not to try to block it. He spoke on the first anniversary of the collapse of the Lehman Brothers investment bank, the largest bankruptcy in U.S. history and a stark reminder of the financial crisis that spread into a deep recession despite huge federal bailouts of major companies.
“It is neither right nor responsible after you’ve recovered with the help of your government to shirk your obligation to the goal of wider recovery, a more stable system, and a more broadly shared prosperity,” Mr. Obama said in a stern bid to boost his regulation proposals.
The President’s speech reflected public sentiment that American taxpayers were immeasurably harmed from last year’s financial collapse — and that, barring change, it could happen again. As investment giants return to profit, millions of Americans are still coping with unemployment, home foreclosures and retirement portfolios that got washed away in the storm.
For symbolic emphasis, Mr. Obama spoke from venerable Federal Hall on Wall Street.
“Unfortunately, there are some in the financial industry who are misreading this moment,” Mr. Obama told a quiet audience of leaders from the investment sector.
“So I want them to hear my words,” Mr. Obama said. “We will not go back to the days of reckless behaviour and unchecked excess that was at the heart of this crisis. ... Those on Wall Street cannot resume taking risks without regard for consequences.”
Afterward, he joined former President Bill Clinton for lunch at a New York restaurant. The White House announced Mr. Obama would address the annual meeting of the Clinton Global Initiative on September 22 while in New York for the United Nations General Assembly meeting.
The public is still edgy about Wall Street and the economy. A year after the meltdown, seven of 10 Americans lack confidence that the federal government has taken safeguards to prevent another financial industry meltdown, according to a new Associated Press-GfK poll.
Yet Mr. Obama’s reach goes only so far; his bid for huge regulatory change is up to Congress.
The President’s plan has yet to gain serious traction on Capitol Hill, as Democratic leaders have been consumed by the health care debate and staff members are still wrestling with the complexities. The plan is being fought by a determined financial services lobby with a major assist from big business groups, and infighting among regulators who oversee the various portions of the sprawling financial architecture has further slowed the process.
But the sluggish pace is expected to pick up in coming weeks. Democrats aim to stick to their promise of completing the bill by year’s end, a timeline Mr. Obama badly wants to keep, but they face long odds.
Republican Senator Judd Gregg, who once considered being Mr. Obama’s commerce secretary, was among Republican lawmakers who responded to the President’s message with caution.
He said, “We must be wary of the reality that — in an attempt to address yesterday’s failures — Congress will put in place regulatory schemes which will fundamentally undermine risk taking.”
Anticipating such criticism, Mr. Obama shot back against those pushing for less regulation.
“Do you really believe that the absence of sound regulation one year ago was good for the financial system?” he said. “Do you believe the resulting decline in markets and wealth and unemployment, the wrenching hardship that families are going through all across the country, was somehow good for our economy?”
He also told Wall Street that it had no need to wait for new laws to begin helping consumers with straight talk in the meantime.
Much of Mr. Obama’s speech amounted to a recap of his proposals, first outlined in June.
He has sought tougher capital requirements for banks, arguing that banks’ buying of exotic financial products without keeping enough cash in reserve was a key cause of the crisis. He wants more openness for the markets in which banks trade the most complex products.
Mr. Obama’s plan also would give the Federal Reserve new oversight powers and impose conditions designed to discourage companies from getting too big. And he proposes a consumer protection agency to make rules for financial products, so people know what they’re buying.
The House Financial Services Committee, led by Democratic Representative Barney Frank, who supports much of Obama’s plan, is expected in October to take up the first piece of the legislation, one that would establish an agency focused on consumer protections. The panel has already passed legislation intended to curb excessive compensation at financial institutions.
Mr. Obama’s plan could face significant revisions in the Senate, where Democrats have joined Republicans in questioning whether more power should be given to the Federal Reserve.
The industry is working particularly hard to kill or at least weaken the consumer protection agency idea, which it says will lead to increased costs for consumers, and various corporate interests are fighting the new rules for complex financial transactions, arguing they could stifle legitimate commerce.
ANSHU KUMAR
PGDM 1st sem
Sensex breaches 17,000 on heavy FII inflows
The Sensex broke the 17,000-mark on Wednesday — a level first reached two years ago in September 2007 and last seen 16 months ago in May last year — as FII inflows continued to flood the market.
The index gained 273 points, or 1.6 per cent, to close at 17,126. The Nifty gained 1.5 per cent, closing at 5,083.
One of the key debates doing the rounds was how much of the FII inflows — Rs 1,074 crore in the net on Wednesday alone — have been occasioned by ‘dollar carry trade’ and if so, would it create a bubble on the lines of the ‘yen carry trade’ of a couple of years ago.
This creates a situation where investors borrow in low-interest currencies and invest the funds in other asset classes or in markets where interest rates are higher.
Currently, the US Federal Reserve’s interest rate for borrowing in dollar is between zero and 0.25 per cent.
“Since the US Federal Reserve has kept the dollar interest rate at near zero per cent, dollar borrowing is happening and is being deployed in other currencies. Hedge funds are borrowing in dollars and deploying it in other asset classes such as commodities, gold and equities in the emerging markets, so you will see other assets going up,” said Mr Amitabh Chakraborty, President Equity Religare Capital Markets Ltd.
Some others were of the view that it is relatively (compared to 2007) longer term money that is coming in. “It is better quality money as hedge funds are yet to raise capital all over the world,” said Mr C. J. George, Managing Director, Geojit BNP Paribas Financial Services. The market has now discounted 2011 earnings and is slightly stretched, but it shows long-term optimism, he added.
Nevertheless, the once-bitten-twice-shy retail investor kept rather strictly away. “Many retail investors became bankrupt last year; the way the markets are rising now makes me uncomfortable,” said Mr Ravi B., a retail investor from Bangalore.
In September, retail investors have been net sellers for over Rs 4,000 crore on the BSE alone.
Some of the wiser ones were churning portfolios and booking profits, observed Mr Deven Choksey, Managing Director of brokerage KR Choksey.
Among the domestic institutions, insurance companies are buying, but mutual funds have not been buying much as they have already deployed cash lying with them, said Mr Arindam Ghosh, Chief Executive Officer, Mirae Asset Global Investments. DIIs were net buyers for Rs 159 crore on Wednesday.
Private sector banks were the favourite buys of the day and insurance companies were major buyers of mid-cap PSU bank shares, said brokers.
ANSHU KUMAR
PGDM-1st sem
Aircel inks tower-sharing deal with BSNL
NEW DELHI: Telecom service provider Aircel today said it has signed a 10-year tower-sharing agreement with state-owned Bharat Sanchar Nigam Ltd
(BSNL). Aircel, which currently has about 32,000 base stations, will now have access to approximately 45,000 BSNL towers across all its circles. It did not disclose financial details of the deal. Aircel is a part of Malaysia's Maxis Communications and has a subscriber base of over 24 million users. It is present in 18 telecom circles and has licence for a pan-India roll out. "Aircel will now have access to strategically located sites across BSNL's 21 circles (excluding Mumbai and Delhi). Leveraging BSNL's passive infrastructure will help Aircel meet its aggressive network roll out plans in addition to reducing operational cost," said Aircel Chief Operating Officer Gurdeep Singh. Kuldeep Goyal, CMD, BSNL added, "We are happy to partner with Aircel. BSNL has a strong nationwide coverage and offers the best value proposition in the Indian telecom market. Our objective is to provide quality and reliable service and thereby increase our partner's confidence". Tata Teleservices yesterday announced a 15-year infrastructure-sharing deal with the state-run telco, which has pan-India operations (except Delhi and Mumbai).
POSTED BY: PALLAVI SINGH
PGDM III SEM
SBI slashes deposit rates by 0.25% from Monday
MUMBAI: The country's largest lender, State Bank of India (SBI), has cut its deposit rates by 0.25% across all tenures effective from October 5.
With this, deposits having a tenure of 1-year to less than 2-years, will now attract a rate of 6.25% (6.5%), the bank said in a release on Thursday. Similarly, deposits having 2-3 years and 3-5 years maturity will now carry rates of 6.75% (7%) and 7% (7.25%), respectively, the bank said. Also, 5-8 years and 8-10 years deposits will now be offered at a rate of 7.25% (7.5%) and 7.5% (7.75), respectively. The revision will be applicable for deposits below Rs one crore.
POSTED BY: PALLAVI SINGH
PGDM III SEM
Are you marketable enough ?
Due to the ever-evolving and rapidly changing corporate scenario, the future of India Inc. will throw a lot of challenges at aspirants. Therefore, ask yourself, ‘what will the professional world demand out of you then?’ and ‘are you well equipped to hone newer skills?’ India Inc. gives a few quick tips that can help you sustain your ‘market value’ even in 2020Look around and you will realise how competitive the world has become. With each passing day, competition is growing and the need to keep abreast of the latest trends and stay ahead is becoming even stronger and more importantly, a lot tougher, right? What could make you look like the most eligible candidate for a particular job profile today might not hold true in 2020 perhaps! The constantly evolving workplace and the even constantly evolving India Inc. are bound to undergo a lot of change and with it, the requirements and the skill set expected out of a candidate will undergo a transition too. Ask yourself, do you think the way you function today and the skills that you are equipped with will suffice to face bigger challenges and keep you marketable for the future? You may not be concerned with surviving beyond the current recession, but you should be. Reinvention isn’t just for people who are unhappy in their current jobs. In order to have long-term, successful careers, we all must work towards staying marketable in the future. “Companies, today, function in a global business environment wherein geographical and economic barriers have gotten blurred. It is very important for individuals to equip themselves with newer skill sets and stay relevant to these changing market needs,” says Shantanu Banerjee, director HR - Steria (India). According to Debi Prasad Das, head- HR, Atos Origin India, “Bill Gates on a recent visit to India said that India needs to move away from low-cost labour towards highend research and development work, the type of work that drives innovation and products. This transformation of the IT industry will have to start with each of us in the field realising the need to re-invent ourselves. Not only in our thinking of what we are doing, why we are doing and what we would like to do, but also realising the need to challenge our own self to think beyond our current operations.” “Sergei Bubka, the soviet pole vault sportsperson is an example. Though he had held all the world records and was way ahead of his times, he did not rest on that. He kept raising the bar and by the time he retired, he was way ahead of his nearest rival and that stayed for some years after his retirement too. The reward is not just in the results you will ultimately produce, but you will learn more about yourself and enjoy the journey,” Das adds. He points out that this theme -- fostering what Morrie Shechtman refers to as ‘self-information’-- is thoroughly explored in ‘Fifth Wave Leadership’. It essentially means that people want their jobs to teach them about themselves, provide valuable information that not only makes them more marketable in today's marketplace, but also helps them become better people. Banerjee feels that employees should map their career goals with the skills necessary to further their career prospects. Mamta Wasan, VP HR & training, Fidelity National Information Services (FIS) further adds, “It is also important to learn something new every five years – a language, hobby or skill. Take on more responsibility at the workplace. Take advantage of job rotations. This way, one will learn new things. Ask yourself what ROI are you able to give to the organisation.” So, if you understand and analyse the rapid changes in the workplace scenario and the increasing competition, it’s time to pull up your socks and work towards making yourself more prepared and industry ready for the future. DAS POINTS OUT A FEW ACTIONABLE POINTS THAT CAN BE USED TO MAKE ONESELF A BETTER PROFESSIONAL AND MARKETABLE FOR THE FUTURE: Be on time. Get to meetings on time. Get to work on time. Get to that interview on time. Punctuality is noticed and valued. Eliminate ‘good enough’ thinking.‘Good enough’ thinking means doing the bare minimum to get the job done. Challenge yourself to go the extra mile. This requires more effort in understanding the problem, solving and checking it for quality, but the results - and you - will stand out. Dress like a professional. Start challenging your boss. Improve yourself. Try to keep raising the bar on your own performance and keep competing with yourself.
POSTED BY: PALLAVI SINGH
PGDM III SEM,'B'
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