Xpress HR - September 2012

STUDENTS ASSOCIATION FOR PROMOTION OF PERSONNEL MANAGEMENT,

HUMAN RESOURCES AND INDUSTRIAL RELATIONS AT XLRI

TRANSFORMATIONAL LEADERSHIP AND BEYOND 1

HR CROSSWORD 3

THE BREAKDOWN OF I NDUSTRIAL RELATIONS 5

NEWS AND BLURBS 8

HUMOUR CORNER 8

XPRESS HR—WINNING ARTICLE : WILL THE FOUR DAY WORK-

WEEK EVER WORK IN INDIA?

9

Inside this issue:

September Edition SAPPHIRE’s Newsletter on Human Resources 16/09/2012



Xpress HR

The third edition of Xpress HR brings some

thoughts on Flexible Work Timing and

Transformational Leadership. Also, an ex-

cellent write-up on the last issue’s main

theme, as a follow up!

Also, the winners of last month’s HR

CROSSWORD as well as a new one for this

month!



To lead people, walk behind them

-Lao Tzu

In times of increasing uncertainty, work groups

want to be inspired and empowered to ever higher

levels of morale and motivation. This calls for a

process of change and transformation that delves

into the emotions, values, and long-term goals of

individuals; it seeks to redesign perceptions and val-

ues, while in its path transforming expectations and

aspirations. The underlying aim is to induce owner-

ship at each level while inspiring all parties to be

leaders in the organisation.

This exceptional form of influence that moves em-

ployees toward ever higher levels of achievement

resonates closely with the concept of transforma-

tional leadership introduced by Burns. However,

Burns (and later Bass who extended the work of

Burns) always spoke of transformational leadership

as one in which the leader transforms and moti-

vates followers through his/her idealized influence

(or charisma), intellectual simulation and individual

consideration. The aim of the leaders is to encour-

age followers to come up with novel ways to chal-

lenge the status quo and to alter the environment

in order to be successful. Yet, the focus of the the-

ory always seems to revolve around the role of a

certain “leader” who inspires “followership” in an

attempt to “empower” the individual. However, in-

stead of being shackled by the traditional categories

of a leader and a follower, it is important that we

redefine the boundaries within which the two play-

ers operate. It is also imperative that we look be-

yond the role of a leader as the only one inducing

the ownership spirit in the organization.

The focus of the theory of Transformational Leader-

ship is almost exclusively on the charismatic and

affective elements in the leader (i.e., his personality

characteristics and behaviors). Yet, there are a mul-

titude of ways in which the organization can breed a

sense of ownership and leadership on a macro

scale. We will look at some of these ways in the pre-

sent article. Thereafter we will also consider some

of the basic ideas of Burns theory and see how they

can lay the bed for a culture of inspired ownership

in the organization.

Transformational Leadership and Beyond

Inspiring Employees to Claim Ownership | Bhavika Sareen | HRM 2011-2013

“The aim of the leaders is to

encourage followers to come

up with novel ways to

challenge the status quo and

to alter the environment in

order to be successful”

Page 1



At this juncture I want to emphasize that by no

means do I attempt to undermine the validity of the

concepts elucidated in Burns theory. His theory has

drawn considerable empirical research and has

been the scope of much praise as well as certain

criticism. However, the aim is to look beyond the

set boundaries of the theory and explore other

mechanisms that inspire employees to claim owner-

ship.

We must understand that ownership is not some-

thing that organizations can demand – employees

choose whether to own their work, and in so doing

progress toward greater assumed leadership. The

methods that promote these practices cannot be

described as occasional or periodic, but they occur

at every moment in the workplace. These methods

are embedded in the culture of the organization; in

the manner the workplace operates.

The first step in any initiative that aims to promote

such a culture is to make sure that the employees

understand the bigger picture in what the organiza-

tion is trying to achieve. It is also important to give

due regard to the incentives that employees receive

that drive them to go beyond their work. Although

such incentives are not directly related to the own-

ership of employees, but they do play an important

role in according the right recognition to them.

From that point of view, incentives work to push

employees for more and improved results.

It is also imperative for businesses to let employees

know the reasons behind the company’s decisions.

Further, companies must be willing to collaborate

with employees on all corporate goals/decisions.

The resultant effect of all these actions would be a

greater buy in from every part of the organization.

This will drive an inherent feeling of ownership in

the employees and lead the company toward

greater success.

These initiatives can be very helpful in creating the

desired culture in the organization. However, like all

new cultural initiatives, they require a fundamental

change in the behavior of the organization for an

extended period of time. Toward this end, we can

emphasize the importance of the existing leadership

of the organization and many of the tenants of the

theory of transformational leadership proposed by

Burns can lay the foundation for driving the best

practices described above.

A transformational leader can use his inspirational

motivation to share the company’s vision with the

employees and to make sure that their behaviour is

aligned towards that vision. By using intellectual

motivation, transformational leaders can drive em-

ployees to go beyond the company norms. This

freedom can push employees to be creative in their

ideas. Finally through the demonstration of indi-

vidualized consideration, transformational leaders

show that they care for their employee’s wellbeing.

All these practices go a long way in convincing em-

ployees to work hard, thereby increasing their own-

ership and commitment toward the company.

Thus, by understanding and adapting to the needs

and motivations of employees, a transformational

leader is able to create a workforce of “owner

minded” employees. Such employees are then free

to further explore their capabilities. They habitually

step outside their role and move toward becoming

leaders in their own right; innovating and improving

processes; and assuming ownership to take the or-

ganization forward. Such companies adapt faster to

change and are able to develop innovative ideas

that exploit new product and market opportunities.

“Employees choose whether to

own their work, and in so doing

progress toward greater assumed

leadership.”

Page 2



HR Crossword Send in your entries to [email protected] for a chance to collaborate with SAPPHIRE!

Across

1. A manager who assists and

advises line mangers

4. Specific guidelines that regu-

late and restrict the behavior of

individuals

7. Condition in which the physi-

cal well-being of people is pro-

tected

9. A security benefit voluntarily

offered by employers to em-

ployees who lose their jobs

12. A one-time payment that

does not become part of the

employee’s base pay

14. Fitting a person to the right

job

15. The process through which a

job applicant receives an accu-

rate picture of a job [acronym]

16. Effort directed toward pro-

ducing or accomplishing results

17. An indirect reward given to

an employee or group of em-

ployees as a part of organiza-

tional membership

21. Extent to which a test actu-

ally measures what it says it

measures

22. A process whereby people

acquire capabilities to aid in the

Page 3



achievement of organizational goals

24. Indication of employee dissatisfaction

25. Customary methods of handling activities

26. Performance appraisal tool that uses a list of

statements or words that are checked by raters

Down

2. Process in which employees leave the organiza-

tion and have to be replaced

3. Compensation computed as a percentage of sales

in units or rupees

5. A dynamic condition in which an individual is con-

fronted with an opportunity, constraint, or demand

related to what he or she desires and for which the

outcome is perceived to be both uncertain and im-

portant

6. Behaviors that job incumbents are expected to

display

7. Something that causes stress in an individual

8. A development activity in which a manager takes

an active role in guiding another manager

10. Process that uses a neutral third party to make a

decision

11. An unauthorized and illegal strike that occurs

during the terms of an existing contract

13. Time spent in the organization or on a particular

job

18. Payments directly calculated on the amount of

time worked

19. The total depletion of physical and mental re-

sources caused by excessive striving to reach an un-

realistic work-related goal

20. The series of work-related positions a person

occupies throughout life

23. Significant dysfunction tension resulting in no

effort being made

Winning Entries for last month’s Crossword!

1. Prateek Seth, XLRI - HRM

2. Praneeth P , XLRI - HRM

3. Pranav Pandey, XLRI - HRM

4. Rachita Chandra, XLRI - HRM

Congratulations! Look out for an email from

[email protected] coming your way soon!

Last Month’s Solved Crossword!

Page 4



A labor dispute at the famous Manesar plant of Ma-

ruti Suzuki claimed life of HR Manager Awanish

Kumar Dev. The incident may not be new in the fra-

ternity of manufacturing industry, but has once

again underlined the possible disparities in industry.

It must be evident now that India industry is consis-

tently battered by ongoing labor problems. On fur-

ther introspection, we see a possible gap widening

between workforce and management. Gone are the

days, when the likes of Russi Modi, the ex-CEO of

Tata Sons, focused on Human Capital instead of Fi-

nancial Capital. Modi focused on developing rela-

tionship with employee and identified human capi-

tal. Unfortunately, many management writers were

critical of his approach.

Companies today have lost patience to invest in hu-

man capital. Why? Because, investing in human

capital is a zero profit game. The input to this black

box is loads of efforts, discussions and constant in-

teraction with employees. The output is intangible,

immeasurable and uncertain degree of soft skills,

work approach and motivational kick. Investment in

human capital, unfortunately receives less attention

today, owing to the fact that the results cannot be

directly attributed to the initiative (for instance, a

financial improvement cannot be directly mapped

to improvement in employee communication, feed-

back, etc). On the other hand, corporate projects

for all other departments (information systems, op-

erations, marketing and finance) had clear and tan-

gible return (commonly referred as ROI or Return

on Investment). Thus, HR managers often find it dif-

ficult to convince the board to invest in human

capital management.

Maruti Suzuki is not single organization to be im-

pacted by the worker revolt syndrome. Joining it are

notable companies such as Coal India Limited, Dha-

nalaxmi Bank, Dunlop and others. While Coal India

Limited strike plagued by worker demands of bonus

hike and pay revision, Dunlop witnessed a clash due

to pending payment to workers. Dhanalaxmi Bank

witnessed a similar taste of bitterness when em-

ployees objected to the company policy of stalling

transfers across north India. The nature of strike

also varied across the companies. On one hand

where union was integrated in the case of Coal In-

dia Limited, a series of disintegration, internal fights

and blame-shifting was observed in Dunlop union.

Ironically the issue at Dhanalaxmi Bank underlines a

greater need of industrial relation in service sector.

These incidents raise question whether investment

in human capital is given due diligence, or is the

management self-constrained by focus on financial

capital, profit and shareholders. Is the role of HR is

confined to strategic management and improving

managerial competence? It is no secret that we

have paid the price for sacrificing Industrial Rela-

tions.

The Breakdown of Industrial Relations

Raspal Singh & Sidharth Panigrahi | TA Pai Management Institute, Manipal

“Companies today have lost

patience to invest in human

capital. Why? Because,

investing in human capital is

a zero profit game.”

Page 5



Expert and commentators attribute this paradigm

shift to evolving industrial focus from manufactur-

ing to service industry. The paradigm shift also un-

derlines the belief that the leadership team today is

focused on preserving shareholders values, rather

than focusing on internal hygiene. Manufacturing

industry, unlike service industry, is labor intensive.

Therefore we cannot expect manufacturing indus-

try to have the same approach/though process as

that of service industry. So, when we say “TCS has

outdone ONGC to claim 2nd position in the capital

share”, we are actually comparing apple with or-

anges. In fact, it is not only the industry, but we as

society who are also plagued by the stereotype of

comparing disparate entities and hence putting

pressure on management to ‘create’ shareholder

value(i.e. profit).

The scenario of dent in industrial relations is not

only common in India, but also other nations-Japan,

China and Indonesia, where the shop floor assign-

ments are on decline.

Analyzing the issue using the Dunlop’s model, we

see that there was a clear link of strained relation-

ships between the three actors(i.e. management

organization, workers and government).

Figure 1: The link between the three actors was

strained in the Maruti Suzuki saga

Employer

From employer perspective, two changes have

taken place:

Shinzo Nakanishi assumed the position of MD

from Jagdish Khattar. Erstwhile director RC

Bhargava was made the chairman. However

media reports suggest that despite having

Indians leaders at the top, the company is

dictated by the Japanese voice in the crucial

decisions.

Intensifying competition, rise in cost of raw ma-

terials coupled with not so encouraging

sales have resulted in increased challenges

for Maruti Suzuki. Apparently one way to

respond to this challenge was to sell more

volumes. This has led to pressure on work-

ers to improve their productivity.

Labor Union

“Improve the productivity” says company. But

where is incentive to motivate workers? The lack of

incentive, combined with the surging prices of land

and cost of living is speculated to be the reason be-

hind workers dissatisfaction. However the reason is

yet to be confirmed, as the investigation is carried

out currently. The labor union has pointed fingers

to government and company management for the

debacle.

It is no secret that bargaining power of labor union

is diminishing over the years. Add to it the intense

competition from peer states to grab the project

and milk out development. Things are turning

tougher for workers as they are unable have co-

operation on a domestic scale and thus a refusal at

one site turns to be an opportunity at other site.

Page 6



Figure 2: The availability of industrial options di-

minishes the bargaining power of labor unions

Government

The Government has been playing a dicey role in

the incident. While on one hand it condemned the

incident, launching an investigation to look into

the matters. On other end, it asked the company

to cough up Rs 235 crore as compensation to

HSIIDC. Clearly it is a sign that all the three links

between the actors is shattered.

The news on Industrial Relations is gloomy. The

spark of disputes are turning into flame, in form of

strikes, lockouts and disputes; consequently en-

gulfing many corporations across the globe. It is

time that we identify the sparks before the turn

into a forest fire, potentially sweeping out the

whole industrial habitat. Add to it the low interest

within B-schools to cater to industrial relations,

the scenario is turning tougher.

Will this buck of stop anywhere? Would we ever

see a increased bargaining power of union, sense

of understanding between the three stakeholders

and collaborations with each other? A study by

Hewitt shows that stocks of best employers out-

perform the comparable indices and industry per-

formance metrics by over fifteen percent. Hope

the study inspires board rooms to engage in indus-

trial relations, rather than leaving it up late to the

HR.

References:

Shyamal Majumdar: Souring industrial relations.

(2011).Retrieved October 14, 2011, from http://

www.business-standard.com/india/news/shyamal-

majumdar-souring-industrial-relations/452435/

Ghoshal, Devjyot.(2012). Few takers for industrial rela-

tions at B-schools. Retrieved from http://

www.business-standard.com/india/news/few-

takers-for-industrial-relations-at-b-schools/481173/

Ghoshal, Devjyot.(2012). Boardroom-shop floor discon-

nect behind poor industrial relations? Retrieved

from http://www.business-standard.com/india/

news/boardroom-shop-floor-disconnect-behind-

poor-industrial-relations/481186/

Where are the HR CEOs? (2011). Retrieved August 3,

2012, from http://www.business-standard.com/

india/news/where-arehr-ceos/482186/

Power situation may worsen as Coal India Ltd workers

threaten strike. (2011).‘Dunlop has declared a lock-

out’. Retrieved from http://www.thehindu.com/

news/national/article2523592.ece

DHANALAKSHMI BANK EMPLOYERS TO STRIKE. (2012).

Retrieved July 8, 2012, from http://cityjournal.in/

dhanalakshmi-bank-employers-to-strike/

Doval, Pankaj. Maruti union general secretary raises

concerns over management, govt role. Retrieved

August 2, 2012 from http://

timesofindia.indiatimes.com/business/india-

business/Maruti-union-general-secretary-raises-

concerns-over-management-govt-role/

articleshow/15321771.cms

Nigam, Aditya.What set off the violence at Maruti’s

Manesar plant?: Anumeha Yadav. Retrieved July 21,

2012 from http://kafila.org/2012/07/21/what-set-

off-the-violence-at-marutis-manesar-plant-

anumeha-yadav/

Goyal, Malini. Four reasons behind Maruti Suzuki's

Manesar problems. Retrieved July 22, 2012 from

http://articles.economictimes.indiatimes.com/2012

-07-22/news/32777541_1_maruti-suzuki-s-manesar

-maruti-s-manesar-shinzo-nakanishi

Haryana asks Maruti to pay Rs. 235 cr for farmer com-

pensation. Retrieved July 24, 2012 from http://

www.livemint.com/2012/07/24182722/Haryana-

asks-Maruti-to-pay-Rs.html

Page 7



"COMPETITIVE SALARY:" We remain competitive

by paying less than our competitors.

"MUST BE DEADLINE ORIENTED:" You'll be six

months behind schedule on your first day.

"DUTIES WILL VARY:" Anyone in the office can

boss you around.

"WHERE EMPLOYEES FEEL VALUED:" Those who

missed the last round of layoffs, that is.

"ABILITY TO HANDLE A HEAVY WORKLOAD:" You

whine, you're fired.

"GOOD COMMUNICATION SKILLS:" Management

communicates, you listen, figure out what they

want and do.

HumouR Corner

News and Blurbs Happenings and other things in the Human Resources World. Links follow!

“How HR managers are helping make workplaces better” http://tinyurl.com/XpressHR-Sep-1

A short and sweet article by Shiphony P. Suri of Careers360 on the increasing role of HR in busi-

nesses:-

“Initially, it was restricted to administrative tasks, personal functions and industrial relations, which comprised paying

employees, welfare amenities and keeping track of sick, personal days. But post liberalisation, hiring and retaining high

performing employees prompted companies to adopt sound HR practices. “

————

“Industry wants perfect graduates” http://tinyurl.com/XpressHR-Sep-2

An excellent overview of a management conclave held at TAPMI, written for The Hindu:-

“Requirements from professionals had increased. It wanted perfect people having knowledge of all fields. Engineers had

to come up with business idea, while HR professionals had to have the knowledge of engineering. The things learnt in

colleges were not of much help. ‘Students have to be perfectly trained. But how to do it is the question.’”

————

“Maruti's new HR policy” http://tinyurl.com/XpressHR-Sep-3

And what precisely is this new policy? “Managers authorised to recruit 'trustworthy workers”:-

“The decision on the new strategy for selecting lower staff was taken after the resignations of a few managers from their

job after the July 18 violence. The resignations are not something the top management wanted. Hence, they have pro-

vided power to the management to choose workers of their choice”

{By Manisha Dalan,

HRM 2012-2014!}

Page 8



Will the Four Day Workweek Ever Work in India?

Winning Entry for the SAPPHIRE Article Writing Competition | Shubham Kochar | HRM 2012-2014

It all began in Utah, where a four day workweek

was made mandatory for state employees. It was a

part of an experiment which targeted reduced elec-

tricity consumption. And boy was it a hit! Millions of

dollars were saved and the employees loved it ow-

ing to the work-life balance it provided. But will a

similar strategy work in India, where only a handful

of IT companies care about saving energy, and will

they risk the productivity for it?

We Indians spend our Mondays gossiping about

what others did over the weekend and Fridays are

spent planning for the weekend. Comfort zone is a

wonderful thing, and we tend not to foray away

from it. At least our bosses think so! Three-day

weekend might lead us into a holidaying mood

which will continue even during working days. For

us, a four day workweek has to be a strict NO! And

there are plenty of reasons for the same.

Working ten hours instead of eight, may not neces-

sarily mean that our productivity will remain the

same, in fact, the chance of it declining is pretty

high as there is limit to which we can stretch our-

selves. What sounds like a good proposition for em-

ployees may not work out well for organization’s

balance sheet. Hence, the chance of our bosses ac-

cepting any such plan is feeble.

Indians who are already burdened with work over

the weekends will find the concept rather amusing.

Contrary to India, the corporations in the West are

much more sensitive to an employee’s need for a

break. We are in a system where more work hours

is equivalent to better performance, whether an

employee spends that time on work or other activi-

ties hardly matters. This attitude has been passed

from generations and chances of it staying are very

high.

Another factor that may cause the four-day work-

week to fail is the competitiveness among employ-

ees. With the bell curves hurting bellies, an em-

ployee intends to do whatever it takes to show that

he/she is more competent or productive than oth-

ers, so even if one is provided with an extra off day,

he/she would try to take up extra work from superi-

ors to show enhanced dedication towards work.

Sooner or later, others will follow suit. Incase such a

system is flexible and gives an employee the option

to choose the third off-day, who would want to

miss out on important discussions and information?

In India, where average salaries are towards the

lower side when compared to expenditure, if a per-

son is provided with a three day weekend, week

“What sounds like a good

p r o p o s i t i o n f o r

employees may not work

out well for organization’s

balance sheet.”

Page 8



after week, he/she is likely to take up some part

time work in order to have a better life, at least, fi-

nancially. So, what could have been a two day stay

at home with family members will then mean even

lesser time for the family.

What is a rage in the West may not have a desired

effect on Indians. It is related to the kind of life-

styles we live in. Western world has a good alterna-

tive for not working for an extra day as for most of

the time the family is involved in finishing tasks re-

lated to home. They do it ‘together’ in the weekend

because most of the family members tend to work

in the weekdays.

Will the Four Day Workweek Ever Work in India?

Winning Entry for the SAPPHIRE Article Writing Competition | Shubham Kochar | HRM 2012-2014



CONTACT US

[email protected]

[email protected]

EDITORS

T C A Lakshminarasimhan

Manisha Dalan

Krishna Chaitanya

VISIT US AT:

www. facebook.com/sapphirexlri

http://xlrisapphire.wordpress.com/

We thank all the participants for their contribution.

We look forward for your expectations and feedback

for improving Sapphire newsletters.

http://xlrisapphire.wordpress.com/

Documents

Xpress HR - September 2012