Springer Business Cases
Gopal P. Mahapatra Editor
Business Cases
in Organisation
Behaviour and HRM
Perspectives from India
Springer Business Cases
Editorial Boards
Mehtap Aldogan Eklund, Department of CBA—Accountancy, University of
Wisconsin–La Crosse, La Crosse, WI, USA
Karuna Jain, Shailesh J. Mehta School of Management, Indian Institute of Technology
Bombay, Mumbai, India
Dilip S. Mutum
Malaysia
, School of Business, Monash University Malaysia, Subang Jaya,
Henry Shi, Faculty of Arts, Business, Law and Economics, University of Adelaide,
Adelaide, Australia
Marianna Sigala, Department of Business Administration, University of Piraeus,
Athens, Greece
Springer Business Cases is a book series featuring the latest case studies in all
areas of business, management, and finance, from around the world. The wellcurated case collections in each of the books represent insights and lessons that can
be used both in the classroom as well as in professional contexts. The books also
place a focus on regional and topical diversity as well as encouraging alternative
viewpoints which bring the knowledge forward. Both teaching cases as well as
research cases are welcome.
Gopal P. Mahapatra
Editor
Business Cases
in Organisation Behaviour
and HRM
Perspectives from India
Editor
Gopal P. Mahapatra
Faculty of Organizational Behavior
and Human Resources Management
Indian Institute of Management
Bangalore (IIMB)
Bengaluru, Karnataka, India
ISSN 2662-5431
ISSN 2662-544X (electronic)
Springer Business Cases
ISBN 978-981-99-2030-3
ISBN 978-981-99-2031-0 (eBook)
https://doi.org/10.1007/978-981-99-2031-0
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature
Singapore Pte Ltd. 2023
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Singapore
In memory of
late Prof. K. B. Akhilesh
Preface
The professional world is changing rapidly. With globalization and the pace
of technological advancement, the world is changing into a Volatile, Uncertain,
Complex, and Ambiguous (VUCA) environment, more so for businesses. In this
challenging context, leaders and HR professionals must adopt new strategies to
navigate and foster business growth, success, and sustainability.
In the last decade, India has seen increasing significance given to leadership
and human resources management for the growth and sustenance of business and
social organizations. The approaches followed by the leaders have proven successful, particularly in the fields of people management, employee engagement, change
management, entrepreneurship, and the like. In this context, the editor invited
leading academicians and a few practitioners in organization behavior (OB), leadership, and human resource management (HRM) to submit business cases and
teaching notes. We aim to facilitate learning and development through these cases
on employee engagement, training and development, mergers and acquisitions,
leading virtual teams, career management leveraging technology, and the broader
areas of people management.
All authors have carefully selected and highlighted cases of significance along
with relevant teaching notes. This is likely to be quite valuable to academicians
in B-schools in India and abroad; not to mention M.B.A. students, undergraduate
students, leaders and HR professionals, practice owners, and consultants, who want
to leverage these cases for leadership development, solving business problems as
well as getting new insights into current people management issues.
It has been a phenomenal learning experience for me, both as a contributing
author and the editor of this particular OB and HRM case volume. I sincerely
hope readers from various strata benefit from using this volume.
I hope this book will contribute to teachers, professionals, and management graduates in B-schools. The teaching notes can benefit academicians who
want to supplement their expertise without additional reference objectives and
methodologies shared by the authors of the cases in the teaching notes.
vii
viii
Preface
We will very much appreciate the comments and suggestions of the readers and
users of this volume and wish a great learning experience to the readers!
Gopal P. Mahapatra
Faculty of Organizational Behavior
and Human Resources Management
Indian Institute of Management
Bangalore (IIMB)
Bengaluru, Karnataka, India
Acknowledgments
This book would not have been possible without the help of many notable people.
I cannot list them all here, but would like to thank the Late Prof. K. B. Akhilesh,
the erstwhile Dean of Indian Institute of Science (IISc), and my well-wisher
who had taken the initiative of this mega project1 from India. He seriously conceptualized and envisioned creating and compiling a series of business cases in
India’s context: the emerging economy. I am grateful to him for having entrusted
me to edit the Organisation Behaviour and Human Resources Management (OB
and HRM) case and teaching note volume published by Springer. I dedicate this
volume to his memory!
I must acknowledge the subsequent anchoring and moderation by Prof.
Parameshwar Iyer, Distinguished Scientist and Professor of IISc. He took on the
baton, arranged a series of meetings with the potential guest editors of subjects,
and encouraged me to seek diverse cases from leading academicians. Thanks to
him for his unwavering encouragement and valuable support.
I am grateful to Ms. Nupoor Singh, Senior Editor, Springer, who took a personal
interest in pursuing this idea. She inspired me to pursue the case and teaching note
collection from diverse authors when I was preoccupied with a busy teaching term.
In addition, she periodically reviewed the status update on the cases jointly with
me, including required follow-up with the authors, and collaborated with Springer
Nature Books Production. To sustain motivation, she even arranged a meeting with
her Editorial Director to communicate how important the book was for Springer.
I want to thank Mrs. Ramya Somasundaram, Project Coordinator, Books
Production, Springer Nature, for following up with the authors for necessary
updates and corrections, and her production team in Springer for undertaking the
essential copywriting production and editing tasks to complete this book.
I want to thank my Research Associate at IIMB, Ms. Inika, a bright postgraduate from King’s College, London, who provided her valuable support during
the initial phases—preliminary review of manuscript, comments, and editing,
which was very helpful as we began with the case writing and teaching notes.
1 The original project was a compilation of case studies in almost all management study areas under
the Chief Editorship of Prof. Akhilesh. After his sad demise the project has to be dismantled and
this book, which was a section in that megaproject, came into being.
ix
x
Acknowledgments
I also want to thank Ms. Amruta Londhe, my erstwhile Research Associate at
IIMB, for her assistance at the beginning of this book project.
I am grateful to my family for tolerating the time and engagement that I had to
devote to this project over the last 3 years.
Finally, I need to thank my esteemed contributors for their cases and teaching
notes. They have not only taken the initiative of writing the cases and teaching
notes on varied themes in the OB and HRM area in the Indian social and business
context but have also shown a lot of patience and perseverance with this project, as
it has taken multiple iterations and taken time beyond their normal expectations.
Thanks a lot, indeed!
Gopal P. Mahapatra
Faculty of Organizational Behavior
and Human Resources Management
Indian Institute of Management
Bangalore (IIMB)
Bengaluru, Karnataka, India
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gopal P. Mahapatra
Growth and Transformation of Gujarat Gas Limited—An OD
and HRD Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gopal P. Mahapatra and Nidhi Vashishth
PRADAN: A Journey of Continuing Relevance . . . . . . . . . . . . . . . . . . . . . . . . . .
Smita Mohanty and Ajaya K. Samal
Plantation of Hope: The Turnaround of Harissons
Malayalam Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manoranjan Dhal and Surya Prakash Pati
Can Collaboration Thrive in a Virtual Environment?—An Enigma! . . . .
Amit Gupta and Ranjan Kumar Mohapatra
1
9
39
55
87
Engaging Virtual Teams in Uncertain Times: A Business Case
on Cyient Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Upam Pushpak Makhecha and Farheen Fathima Shaik
Paradeep Phosphates Limited’s Story of Inclusive Growth
and Harmony: A Case Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Mousumi Padhi
Start-Up to Scale-Up: The Changing Entrepreneurs’ Competencies . . . . 157
Padmaja Palekar, Gopal P. Mahapatra, and Parag Patankar
Luminous Power—The ROI of the General Management Program . . . . . 173
Debolina Dutta and Tilak Raj Kapoor
Siemens Gamesa Renewable Energy, India: Employee Engagement
Initiatives on the Journey to the Deming Award . . . . . . . . . . . . . . . . . . . . . . . . . 203
Pragnya Acharya and Lalatendu Kesari Jena
Leave Bank—A Unique Social Security Concept . . . . . . . . . . . . . . . . . . . . . . . . 223
Sanjeev Shantkumar Doshi and Upasna A. Agarwal
xi
xii
Contents
Using Online Learning to Develop Pandemic Readiness: The Case
of Deoleo in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
Rama Shankar Yadav, Sanket Sunand Dash, Siladitya Sarangi,
and Ankur Jain
The Being and Becoming of a Leader in STEM . . . . . . . . . . . . . . . . . . . . . . . . . 255
Sadhna Dash and Snigdha Pattnaik
Editor and Contributors
About the Editor
Gopal P. Mahapatra is a Professor of Practice (OB and HRM area) at Indian Institute of Management (IIM) Bangalore. He is a Fellow from IIMB and comes with
more than 30 years of HR leadership roles in MNCs and Indian conglomerates. He
has been Programme Director and faculty member in Advanced Management Programme, and many other Executive Education Programmes at IIMB, in addition
to serving as Chairperson Weekend M.B.A. Prior to this, he served at IIM Indore,
and is also visiting faculty at IIM Kolkata and IIM Udaipur. Professor Mahapatra
was President, National HRD (NHRD) Network Bangalore 2006–2008, which is
an autonomous, not-for-profit, professionally managed organization of HR professionals. He has co-edited three books between 2002 and 2006, and edited
two special issues of NHRD Network Journal on Organisation Development in
2008 and Neuro-Science and HR in 2018, in addition to having many papers in
international and national journals to his credit.
Contributors
Pragnya Acharya School of Human Resource Management, XIM University,
Bhubaneswar, India
Upasna A. Agarwal Indian Institute of Management Mumbai, Mumbai, India
Sadhna Dash Jyoti Nivas College Autonomous, Bangalore, Bangalore, India
Sanket Sunand Dash Assistant Professor in HRM and OB Area at Indian Institute of Management Rohtak, Rohtak, India
Manoranjan Dhal Professor, Organizational Behaviour and Human Resource
Management, Center for Employment Relations and Labour Studies, Indian
Institute of Management Kozhikode, Kozhikode, Kerala, India
Sanjeev Shantkumar Doshi Rashtriya Chemicals and Fertilizers Limited (RCF),
Mumbai, India
xiii
xiv
Editor and Contributors
Debolina Dutta Indian Institute of Management Bangalore, Bangalore, India
Amit Gupta Indian Oil Corporation Limited, New Delhi, India
Ankur Jain Assistant Professor in HRM and OB Area at Indian Institute of
Management Rohtak, Rohtak, India
Lalatendu Kesari Jena School of Human Resource Management, XIM University, Bhubaneswar, India
Tilak Raj Kapoor DS Group, New Delhi, India
Gopal P. Mahapatra Faculty of Organizational Behavior and Human Resources
Management, Indian Institute of Management Bangalore (IIMB), Bengaluru,
Karnataka, India
Upam Pushpak Makhecha Indian Institute of Management, Tiruchirappalli,
India
Smita Mohanty Ghaziabad, UP, India
Ranjan Kumar Mohapatra Indian Oil Corporation Limited, New Delhi, India
Mousumi Padhi School of Human Resource Management, XIM University,
Bhubaneswar, India
Padmaja Palekar Faculty of Organizational Behavior and Human Resources
Management, Indian Institute of Management Bangalore (IIMB), Bengaluru,
Karnataka, India
Parag Patankar Fintech Entrepreneur, and IIM, Ahmedabad, India
Surya Prakash Pati Associate Professor, Organizational Behaviour and Human
Resource Management, Center for Employment Relations and Labour Studies,
Indian Institute of Management Kozhikode, Kozhikode, Kerala, India
Snigdha Pattnaik Khandagiri, Bhubaneswar, India
Ajaya K. Samal Noida, UP, India
Siladitya Sarangi Country Manager, Deoleo, Mumbai, India
Farheen Fathima Shaik Assistant Professor (Human Resource Management),
XLRI - Xavier School of Management, Jamshedpur, Jharkhand, India
Nidhi Vashishth Director in Charge-Fellow programs, Academy of HRD,
Ahmedabad, India
Rama Shankar Yadav Assistant Professor in HRM and OB Area at Indian
Institute of Management Rohtak, Rohtak, India
Introduction
Gopal P. Mahapatra
1
The VUCA Context
The world has been experiencing more disruptions and technological changes
than ever before. Although recent reflections on industry-wide disturbances may
emphasize the pandemic-related and post-pandemic differences in working and the
workplace, rapid change and disruption have increased over the past two decades.
In fact, in 2012, a BCG study found that half of the most turbulent financial quarters in the previous 30 years had occurred post-2004 (Sullivan, 2012). These rapid
changes arise from all avenues, including digitization, technological advancements,
population growth, political unrest, economic instability, national disasters, and
cultural shifts, exacerbated after Fourth Industrial Revolution. This new business
environment is frequently summarized using the acronym VUCA, which describes
its Volatile, Uncertain, Complex, and Ambiguous nature.
On an organizational level, VUCA can result in business complexity, rolling
markets, changing competition, financial instability, and leadership challenges. On
a personal level, it may reduce feelings of control and self-efficacy and increase
stress, anxiety, depression, and suicidality (Doheny et al., 2012; Luthans & Broad,
2022). With VUCA, the revolution to Industry 5.0 is characterized by human
and robotic systems focused on sustainable development (Akkaya & Ahmed,
2022). In this scenario, the responsibility is on organizational leadership and HR
professionals across levels to protect company interest and employee well-being.
Too often, VUCA is treated as synonymous with uncertainty to act as a crutch
rather than a concept (Bennett & Lemoine, 2014a, 2014b). It is frequently used
to justify failure due to insufficient foresight or adequate preparation. However,
G. P. Mahapatra (B)
Faculty of Organizational Behavior and Human Resources Management,
Indian Institute of Management Bangalore (IIMB), Bengaluru, Karnataka, India
e-mail: gopal.mahapatra@iimb.ac.in
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_1
1
2
G. P. Mahapatra
VUCA is a critical framework for understanding and appropriately addressing
challenges. According to Bennett and Lemoine (2014b), VUCA can be a guideline for four distinct characteristics present in modern business challenges in
isolation or combination. Volatility describes instability and unexpectedness of
unknown duration and can be addressed through agility or building organizational slack and resources. Uncertainty is for situations where the mechanisms
of cause and effect could be more explicit; this can be addressed through investing in information-gathering. Complexity involves the presence and overwhelming
volume of interconnected parts and variables, typically requiring restructuring and
specialist experts’ involvement. Finally, ambiguity arises in the face of “unknown
unknowns” where experimentation may be used to understand the situation further.
Complexity management strategies can also be applied directly to VUCA. As
VUCA and complexity increase, leaders must embrace flux rather than resisting
change; organizations can create a culture of learning, open-mindedness, and collaboration (Hanson, 2007). Complexity and response have a recursive relationship
(Maylor & Turner, 2017). There is no scope for complacency—constant innovation
and anticipation of trends are necessary. However, Hanson (2007) does concede
that there are significant challenges related to multicultural/global/virtual settings,
human skills/attitudes/capacities, collaboration, and related to industry/company.
It is suggested that businesses require flexibility to adapt to VUCA; this requires
flexible leadership with foresight, self-awareness, openness, knowledge, communication skills, and learning aptitude (Lawrence, 2013). Johansen (2007) further
describes the skills and abilities needed to manage VUCA as VUCA Prime,
namely, Vision, Understanding, Clarity, and Agility. Factors for business success
include sound/fundamental business practices, innovation, fast responses, flexibility, change management, diversity management, market intelligence, and strong
collaboration (Sarkar, 2016). Leadership exemplifies how an organization can
respond to such an environment. VUCA thus requires CEOs to act in a fast,
focused, and flexible way, summarized through the theory of “Leadership Agility”.
Leadership agility can be evolved through training to improve focus on effective communication and engagement with diverse teams, risk-taking, independent
thinking, and modeling of collaboration (Pasmore et al., 2010). Studies suggest that
management innovation to address these changes should emphasize innovation,
strategic vision, proactivity, creativity, customer focus and involvement, openness
to learning, and context-dependent measures (Millar et al., 2018).
These new leadership requirements must be reflected in management education and teaching pedagogy. Although it is understood that agility, self-awareness,
comfort with ambiguity, and strategic thinking are essential to new-age leadership,
previous training practices need to catch up (Lawrence, 2013). Hall and Rowland (2016) found that while VUCA and agile management are accepted, with
attempts to integrate this in management coaching, a review of UK MBA programs
evidenced general dissatisfaction with programs with only a few curricula supporting agile leaders. Organizational-level solutions may involve hiring and retaining
employees with agility and learning and developing agility through scenario planning or simulations (Lawrence, 2013). To this end, the cases in this volume support
Introduction
3
the development of leadership agility and progressive people management function
in academia and practice.
2
India—An Emerging Economy
India has been considered a significant economy since the emergence of BRICS.
A recent marker of India’s economic growth was when the economy surged past
its former colonizer, the UK, to become the fifth biggest economy in the world
(Aldrick & Goodman, 2022). As noted by Aldrick and Goodman (2022) recently,
the Indian economy was forecasted to grow by more than 7%. After a rebound
in Indian stocks, India is now second after China in the MSCI Emerging Markets
Index. An article published by Morgan Stanley (2022) further stated that as the
world’s fastest growing economy, India is on track to becoming the world’s thirdlargest economy by 2027, expecting to surpass Japan and Germany and have the
third-largest stock market by 2030.
This growth can be attributed to global trends and investment choices; notably,
as global labor markets tighten, significant offshoring—factory and labor—has
been and is expected to be diverted to India. Similarly, it is expected that more
Indian nationals will work foreign jobs from within India (Morgan Stanley, 2022).
This is supplemented by early Indian uptake of digitization, a shift in Indian
income distributions, and upgrades in energy distribution; all of which promote
investment in the country.
It is worth noting that global power entails more than economic growth. As
Hopewell (2015) argued, India’s global power was also driven by its mobilization
and leadership of developing country coalitions and alliances, which in the past
may have allowed them to exercise influence considered above their economic
weight. As India and China slowly rebuild cultural and economic bridges and their
complementary strengths, this can benefit the more prominent global economy
(Khanna, 2007). What is also clear is that the kinds of organizations which flourish
in the two countries are very different from each other and the rest of the world
(Khanna, 2007).
Given India’s global standing, politically and economically, and the understanding of the unique business environment, organizations also need to emphasize the
strategies required for success within the Indian context. It involves learning about
the Indian business environment and emulating leadership and people management
practices conducted by successful Indian companies rather than solely emulating
and applying strategies from the Western market. Moreover, learnings from India
may also be applied elsewhere, where relevant.
4
3
G. P. Mahapatra
Case Methodology for Management Education
and Development
Case method is a pedagogical tool of active teaching which involves describing an
actual situation or event presented as a self-contained story to learn from both as
an example and through post-story reflection via questions, exercises, or games. In
a more modern business setting, the case method of teaching is characterized by
realistic managerial scenarios in which a difficult decision is being faced, taught
through active instructor-guided teaching with a focus on discussion-based learning (Razali & Zainal, 2013). Participants must make decisions and take action
despite adversity, such as incomplete information, time constraints, and conflicting goals (Afsouran et al., 2018). The introspective discussion-based environment
allows participants to think more deeply and share their opinions and previous
experiences freely while being open to feedback (Afsouran et al., 2018). Case
method teaching allows students to experience challenging and complex managerial situations in a safe and supportive environment, so they can be prepared to face
the same in the real world. Case methods are primarily used in business management education and executive training during MBA or higher education, but they
are also used during organizational training, continued learning, and management
development.
Case methodology in management education allows participants to gain more
practical knowledge, deep understanding, and powerful insights (compared to just
reading to learn), through an engaging and interesting avenue. The potential benefits of case methods include the development of diagnostic skills, subject and
functional integration, deep learning, student-involved and motivated learning,
effective use of class time, development of team learning, group discussion process, the repeatable nature of cases, and the ability to review policy and practice
if done in organizations (Rees & Porter, 2002). Although benefits are numerous,
cases must also be used optimally to be practical teaching tools. Rees and Porter
(2002) identified cases to be most effective when they have valid and specific learning outcomes when used before the theory is taught, when cases are combined to
progress in complexity, and when students are reassured of the importance of the
method (to prevent resistance).
As early as 1994, there was already apparent resistance in Europe and Asia
when using American business cases—due to cases not fitting the economic context and the teaching methods not fitting the cultural context (Saner & Yiu, 1994).
Since then, universities and colleges worldwide have begun contributing cases
based on their experiences and settings. Even so, there is still a skew toward
American cases, with developing nations having a noticeable lack of comparable cases. Even with global cases in mind, there is a gap in cases that focus
on the new VUCA setting and the agile management required to overcome this.
This book includes Indian cases on leadership, change management, and people
management cases set in MNCs, Indian conglomerates, or start-ups, emphasizing situations arising from VUCA to allow readers to gain practical knowledge
relevant to this context.
Introduction
4
5
This Book—Purpose and Topics of Interest
The current collection includes 12 handpicked cases and teaching notes on the various critical dimensions of OB and HRM, written by invitation, by Indian authors
who are leading academics and practitioners. The primary purpose of this collection is to capture the unique circumstances, contextual thinking, analytic methods,
decision-making processes, and innovative solutions used in OB and HRM in
MNCs and Indian business and non-profit organizations.
With a slight emphasis on the pandemic, a few cases cover the unique business
challenges and situations arising from COVID-19. The themes covered include
organizational transformation, organizational culture, and development, organizational innovation, corporate social responsibility, competencies for enhancing
entrepreneurship, employee engagement, leading virtual teams, career management, training and development, and women leadership.
5
Who is This Book For
This book is intended to be used by people in business, students, practitioners,
and academicians, both in a global setting and for a more nuanced examination
of OB and HRM in the Indian business context. Postgraduate students in management and organization professionals will benefit by critically examining recent
industry changes and reflecting on how Indian leaders and organizations can adapt
operations during these times. On the other hand, academics can use this book
to highlight the critical concepts and dimensions of change, leadership, people
management, and innovation.
6
How the Book is Organized
The book is organized chapter-wise, with each chapter including a new case and
the relevant teaching note at the end of the chapter as an Appendix (which may
include questions for discussion, teaching plans, elaboration of concepts, and additional resources). The cases are ordered to go from more macro-perspective cases
that may have broader applicability for management education to cases centered
around more specific situations or topics that may not be as relevant for all readers. Nonetheless, concepts and types of complexity mentioned in every case can
be helpful for all readers in non-business organizations due to the transferability
of the discussions and learning.
The topics covered in the 12 cases are ordered as follows:
– Growth and transformation of Gujarat Gas Ltd.—an OD and HRD perspective: The growth and transformation of a large Indian organization through the
decades have been elucidated from an OD and HRM perspective. The reader
6
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G. P. Mahapatra
can understand how HRM systems and processes can be developed for a growing organization and how to change balance can be effectively implemented in
M&A situations.
PRADAN: A Journey of Continuing Relevance: An NGO’s journey and challenges in staying relevant, from inception to the current day. Through this case,
readers can learn about the challenges faced during a company’s growth and
how they can be proactively anticipated to maintain relevance even in turbulent
times.
Plantation of Hope: The Turnaround of Harrisons Malayalam Ltd.: This
case examines the role and importance of having a good work culture through
the lens of a legacy organization. This case supports readers in questioning
the HRM practices that are sometimes taken for granted, allowing for critical
thinking to improve employee experience and organizational culture.
Can collaboration thrive in a virtual environment?—An enigma!: A discussion of company collaboration in a virtual environment. This case enables
readers to creative solutions and out-of-box thinking by focusing on the
example of virtual collaboration during the pandemic.
Engaging Virtual Teams in Uncertain Times: A Business Case on Cyient
Ltd.: Adaptation and progress in engaging virtual teams during uncertain times.
Readers can get a flavor of the work it takes to adapt in turbulent and uncertain
times and can reflect on the organizational attributes that remain integral during
these times.
Paradeep Phosphates Limited’s Story of Inclusive Growth and Harmony:
This case study exemplifies inclusive growth methods to allow for a robust
union-management relationship, increased transparency, and improved communication. This case supports readers in developing the skills to promote inclusive
growth and frictionless collaboration, a cornerstone of modern business.
Start-up to Scale-up—The Changing Entrepreneur’s Competencies: This
case illustrates a powerful example of the changing entrepreneur competencies
when scaling up from a Start-up to a meaningful, transparent, and customercentric business. Readers can see how company prerogatives and emphasis
should shift as they scale up.
The ROI of General Management Program: A demonstration of the role of
a general management program in addressing workforce capability gaps. The
reader can learn the importance of effective learning and development programs
for employees and budding leaders and reflect on these programs’ content and
mode.
Siemens Gamesa Renewable Energy, India: Employee Engagement Initiatives on the Journey to the Deming Award: How employee engagement
initiatives can be used to promote positive competency development. This case
demonstrated employees’ role in company initiatives and taught readers how
skills/competencies could be harnessed to facilitate growth.
Leave Bank—A Unique Social Security Concept: Showing the use of a leave
bank for employees through the times. Readers can be inspired by company
Introduction
7
initiatives to support their employees with empathy and can debate policies that
can boost morale and receive organization-wide support.
– Using online learning to develop pandemic readiness: The case of Deoleo in
India: This case describes the process of developing pandemic readiness and
adapting to business restrictions. With the example of digitization, readers can
see the challenges of adapting to new technology and discuss the methods to
facilitate the same.
– On Leadership in STEM Professions: The journey of a woman leader in
STEM. This personal case can support readers in considering still-present gender inequalities and how one can ensure a sustainable and prosperous leadership
career despite the difficulties faced.
References
Afsouran, N. R., Charkhabi, M., Siadat, S. A., Hoveida, R., Oreyzi, H. R., & Thornton III, G.
C. (2018). Case-method teaching: Advantages and disadvantages in organizational training.
Journal of Management Development.
Akkaya, B., & Ahmed, J. (2022). VUCA-RR toward industry 5.0. In Agile management and
VUCA-RR: Opportunities and threats in industry 4.0 towards society 5.0 (pp. 1–11). Emerald
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Gopal P. Mahapatra is a Professor of Practice (OB & HRM area) at Indian Institute of Management (IIM) Bangalore. He is a Fellow (Doctoral Programme) from IIMB and comes with more
than thirty years of HR leadership roles in MNCs and Indian conglomerates. He has been Programme Director and faculty member in Advanced Management Programme, and many other
Executive Education Programmes at IIMB, in addition to serving as Chairperson Weekend MBA.
Prior to this, he served at IIM Indore, and is also visiting faculty at IIM Kolkata and IIM Udaipur.
Prof. Mahapatra was President, National HRD (NHRD) Network Bangalore 2006–08, which is
an autonomous, not-for-profit, professionally managed organization of HR professionals. He has
co-edited three books between, and edited two special issue of NHRD Network Journal on ‘Organisation Development’ in 2008 and ‘Neuro-Science and HR’ in 2018, in addition to having many
papers and cases in international and national journals to his credit.
Growth and Transformation
of Gujarat Gas Limited—An OD
and HRD Perspective
Gopal P. Mahapatra and Nidhi Vashishth
1
Introduction
February 1, 2021 was not another routine Monday for Peeush Upadhyay, Executive
Director—HR and Admin. of Gujarat Gas Limited (GGL), Ahmedabad, India. A
reputed external institution recognized GGL’s focused management efforts for the
growth and transformation of the business, while keeping employees at the core
of every decision. GGL got nominated for the prestigious Business Excellence
Award. There has been excitement at GGL corporate office, and preparation for
the evaluation for the award has commenced.
Sanjeev Kumar IAS, a top civil servant and the Managing Director of GGL,
reviewed the presentation for a meeting with the Awards Committee. He was
briefed by Upadhyay to highlight core HRD practices as a strength and to project
unique HRD/OD interventions that had fostered GGL’s success in an increasingly
competitive environment.
GGL’s growth and success journey has been inspiring, as it has remained profitable for the past decade, despite several mergers/acquisitions (M&A) and having
undergone significant structural changes. The HR team of the company has played
a significant role in ensuring the effectiveness of M&A execution at all phases.
However, at the time of the REVERSE privatization of e-GGCL (Gujarat Gas
Company Limited) with the public sector organization Gujarat State Petroleum
Corporation (GSPC) Gas (GSPC Gas), as Head of the HR Department, Upadhyay
G. P. Mahapatra (B)
Faculty of Organizational Behavior and Human Resources Management,
Indian Institute of Management Bangalore (IIMB), Bengaluru, Karnataka, India
e-mail: gopal.mahapatra@iimb.ac.in
N. Vashishth
Director in Charge-Fellow programs, Academy of HRD, Ahmedabad, India
e-mail: nidhivashishth10@gmail.com
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_2
9
10
G. P. Mahapatra and N. Vashishth
had to address several challenges. Reminiscing about this, he retrospected, “What
is it that Gujarat Gas Limited Management could have done differently throughout
various phases to ensure business continuity, strengthen culture, enhance growth,
and leverage the company’s potential as a pioneer in natural gas distribution? How
could the opportunities and challenges be best presented before the committee?”.
The day of the meeting with the Awards Committee finally arrived. The Business Excellence Awards evaluation committee was in contact with the GGL office.
Upadhyay was looking forward to meeting the Awards Committee to represent
GGL and share his experience working at India’s largest city gas distribution company. After a brief exchange of pleasantries, Subrata, the Business Editor of a
leading Journal, asked, “From a Mafatlal group company to a multinational company and now a public sector organization, in your opinion, how did GGL make
it this far?”.
Upadhyay replied, “It is the rich culture, HR practices, OD initiatives, commitment towards CSR, and a sharp business focus that has kept Gujarat Gas a steady
company to look for and a great organization to work.” Then, he shared the evolution of GGL in chronological order recounting the origin and growth story of the
organization.
Upadhyay and the team reflected on the role of the HR department in the organization’s growth over the years. He also reviewed his GGL journey as a senior
HR department member.
2
Company History
2.1
Birth of GGCL (Now GGL)
India started attracting investments from across the globe due to the new economic
reforms in 1991 due to the government’s efforts and policies for globalization,
liberalization, and privatization, which aimed at making India one of the top
economies in the world. During the 1960s–90s, Gujarat state established itself
as a leader in various industrial sectors, including textiles, engineering, chemicals, petrochemicals, pharmaceuticals, dairy, cement, ceramics, gems, and jewelry;
proving itself to have a business-friendly atmosphere. At that time, the distribution of natural gas was an arduous task, and ONGC, the first formally traded oil
and natural gas company, supported the Government of Gujarat’s Gujarat Industrial
Investment Corporation (GIIC) to provide natural gas to industrial and commercial
units in 1980.
In 1989, when natural gas was found in abundance near the gas field areas of
Ankleshwar and Surat, the government harnessed available resources by encouraging corporates to form partnerships. At that time, Hrishikesh Mafatlal (Chairman,
Arvind Mafatlal Group), a leading Indian conglomerate, sponsored Gujarat Gas
Company Limited (GGCL), an associate sector company with an initial investment of 4 Crores Indian Rupees in 1990 (approx. $16,11,610). Of its shares, 35%
were with GGCL, 15% with GIIC, and the rest with the public. Initially, it started
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
11
natural gas distribution for piped natural gas, which was still a novel practice in
Indian industrial cities.
Upadhyay described, “GGCL was registered as a joint venture (JV) gas company of Gujarat State Government Corporation, Gujarat Industrial Investment
Corporation (GIIC) with Mafatlal Group and operated in the business of procuring
and distributing natural gas.”
2.2
Acquisition by British Gas and Merger with GSPC
The GGCL went public in October 1991, and the British Gas (BG) Group acquired
a majority of its stake of 65.12% in 1997 to expand its wings and strengthen its
business value chain to leverage the current assets and profitability in the Indian
market. “The acquisition marked a new phase for GGCL. It witnessed a strong
orientation for safety, compliance, and detailed orientation, which transformed the
organization and created a culture of policy and process integration with a strong
business focus,” Upadhyay explained.
Any company in the oil, gas, and petroleum industry can be classified into
three primary groups depending on their function in the supply chain: upstream,
downstream, and midstream. Upstream business involves identifying, exploring,
extracting, and producing raw materials from the Earth’s crust. In contrast, the
midstream business involves transporting and storing raw products before they are
refined and processed into fuels and essential elements. The downstream business involves converting raw materials and resources into finished products and
delivering them to customers (https://www.forbes.com/companies/repsol/?sh=167
409b17c2a). The BG Group decided to divest downstream assets and invited bids
for its stake in GGCL in November 2011, as it was expanding its business outside
India and wanted to concentrate on the upstream business. BG had a long-term
local natural gas (LNG) contract to maximize its position in the upstream market
and decided to sell its stake in GGCL. GGCL’s market capitalization at that time
stood at 3,937 crores INR. GGCL’s catering CNG segment had continued to grow,
with 5,800+ vehicles converted to natural gas and 10,700+ households connected
to the gas supply in the July 2012 quarter.
The then Chief Minister of Gujarat and now Prime Minister of the country, Shri
Narendra Modi, wanted to preserve the unique organization and decided to make
it a state-owned entity. With this vision, in 2013, Gujarat State Petroleum Corporation Limited (GSPC), through its subsidiary, Gujarat Distribution Networks
Limited (GDNL), acquired majority stakes (65.12%) in GGCL from BG (Financial Express, 2002; Rediff News, 1998). The acquisition of GGCL had significant
strategic importance and added a considerable customer base to GSPC’s existing
business in Gujarat (Economic Times, 2012; Business Line, 2013; Times of India,
2012). The acquisition was also consistent with the company’s stated strategic
objective of expanding its presence in upstream and downstream segments of the
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G. P. Mahapatra and N. Vashishth
energy value chain and realizing the vision of developing Gujarat as a natural gasdriven economy. The companies finally merged to become Gujarat Gas Limited in
2015.
2.3
GGL Today
Gujarat Gas Limited (GGL) in 2022 is India’s most extensive city gas distribution (CGD) player and has its presence in 43 districts in the states of Gujarat,
Maharashtra, Madhya Pradesh, Rajasthan, Haryana and Punjab, and in the Union
Territory of Dadra and Nagar Haveli (https://www.gujaratgas.com/about-us/thecompany/). The company had India’s most extensive residential, commercial, and
industrial customer base. In the words of a GGL veteran, “The company is a
unique example of being a joint venture organization and becoming a multinational organization and then again becoming a state-owned organization through a
reverse merger. The culture, HRD practices, and OD interventions played a crucial role in determining the organization’s future.” GGL has more than 15.5 lakh
household customers, over 13,000 commercial customers, 559 CNG stations, over
4,000 industrial customers, and close to 30,000 km of natural gas pipeline network
(https://www.gujaratgas.com/about-us/the-company/).
Overall, based on the history and evolution of GGL, it is evident that the evolution and impact of OD and HRD practices have played a critical role in the culture
formation, development, and growth of GGL.
3
OD and HRD Interventions
3.1
Phase I: Era of Experimentation and Exploration
In the early 1990s, the Management of GGCL had complete empowerment from
both Mafatlal and the GIIC, allowing them to leverage their intrapreneurial capabilities to develop the company at a rapid pace. During that time, the company
established its training center in Bharuch and formed a strong HRD department
(Economic Times, 2021). The company’s primary objectives were marketing,
providing quality customer service, and upholding high safety standards. Early
customer response was positive, and the company grew with high customer
centricity. Visionary leadership at that time focused on three pillars: experimentation, exploration, and innovation. The GGCL quickly adopted pioneering human
resource development practices under F. B. Virani, the then Managing Director of
the organization. He helped lead and build a culture where all were encouraged
to experiment, make mistakes, and learn from them. There was little resistance to
change, and the enabling environment flourished under dynamic top management
leadership with few significant interventions. However, during the rapid growth
stage (1994–1997), the business flourished and immediately recognized the need
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
13
for reskilling talent, enhancing customer satisfaction, and more. Fostering a culture
that encouraged employee involvement, safety, and swift and speedy customer support was the need of the hour. Keeping this objective in mind, the company adopted
various HRD interventions and total quality routes. They used tools such as HRD
audit, vision, customer satisfaction and employee satisfaction surveys, integrated
talent management using performance management, and potential appraisal and
reward systems (PPRDS) (Annexure I).
3.2
Phase II: Growth That Propelled Acquisition by British Gas
In 1997, a significant change occurred for the GGCL when the British Gas (BG)
Group acquired significant stakes from the Mafatlals. The resulting vision statement and core values at GGCL are shown in Annexure II. The new acquisition
caused a sense of insecurity among employees. People were worried about the
new management, new culture, losing their position and job, increased workload,
and more. A senior ex-employee of GGL quipped, “BG Group had now acquired
the group, and it changed the organization’s DNA forever. The employee unions
got established because the employees were apprehensive about many sensitive
issues, especially job security. Hence, the employees decided to create a union
for the common welfare and protection of their rights.” The company’s primary
focus thus shifted toward employee engagement, employee satisfaction, health and
safety, customer service, leadership development, and performance management.
In the 2000s, with rapid growth and scaling up, the company adopted significant
interventions while keeping the primary objectives in mind. At first, HR needed to
rebuild employee trust and reinstate the trade unions’ faith in the management; this
led to GGCL shifting its focus to cultural realignment to improve employee and
customer engagement. Employee and customer satisfaction surveys were an ongoing part of GGCL culture. Grow Talent Company Ltd., a leading consulting firm,
was hired to conduct employee satisfaction surveys to understand how workers
perceived the quality of their working relationships and workplace culture. The
company had taken these initiatives to drive engagement, commitment, satisfaction, and retention. Surveys indicated that employee communication, performance
management, and reward and recognition practices needed attention. Surveys also
indicated employee concerns regarding job security. The top management focused
sharply on these areas, rebuilding trust and collaboration and instilling a sense
of pride in the employees. HR specifically worked in various ways to address
job security issues, for example, the company conducts these surveys periodically
every financial year to identify the issues faced by customers and employees to try
and resolve them as early as possible (https://www.gujaratgas.com/resources/dow
nloads/business-responsibility-report.pdf).
Furthermore, GGCL’s top management developed a golden handshake scheme
to enhance the workforce’s performance. The scheme involved an online performance management system that tracks down the continuous developmental plan
14
G. P. Mahapatra and N. Vashishth
of every individual. All HR-related policies were also updated on the system to
ensure proper communication.
After the acquisition, the GGCL focused on standardized mechanisms and standard operating procedures (SOPs) to establish effective control and monitoring
mechanisms aligning processes with a safety culture. There were many behavioralbased safety training programs, and overall, the focus shifted from developmental
HR to IR since management was concerned about the employee safety protocols,
a separate department, Health Safety Security and Environment, was also set up
(Annexure III).
Finally, as a responsible organization, the GGCL recognized its obligations
to positively impact society and the environment through continuous formal and
informal initiatives. GGCL developed a part-time training and skill-building program for auto-mechanics to inculcate an awareness of CNG’s needs to meet the
business needs and benefit the community. GGCL also strengthened relationships with government and external stakeholders for future growth and support
(Annexure I).
Through the said initiatives, GGL moved the overall focus to people inclusion
toward community and environment (Annexure IV). GGL has done phenomenal
work in corporate social responsibility (CSR), recognized in Gujarat and nationally
(Annexure V).
On the growth over the years of GGL, Upadhyay shared, “The period up to 2012
was an era of growth, and the company witnessed major activities that boosted the
organization’s growth and development” (Annexure VI).
3.3
Phase III: Merger and Consolidation with GSPC Group
and Growth to Date
2007–2013 was initially a period of growth for GGCL, but this volume and
growth stagnated toward the end of 2013. Despite this, the GGCL followed
employee benefit schemes, including post-employment benefit plans, defined contribution plans, long-term employment benefits, short-term employment benefits,
and ESOPs (Annexure VII).
On the other hand, Gujarat State Petroleum Corporation Ltd. (GSPC) was
the start-up city gas distribution (CGD) arm of the Gujarat State Petrochemical
group, which began its operations in 2006. By 2012, it had become the largest
CGD company in India, surpassing established players through aggressive project
execution and by identifying, prioritizing, and relentlessly pursuing high-growth
avenues. The significant facts of GSPC Gas through an HR prism are summarized
(Annexure VI).
In 2013, GSPC, through its subsidiary Gujarat Distribution Networks Ltd.
(GDNL), acquired the stakes in GGCL from the BG Group (Annexure IX). The
reverse merger has brought a new dimension to the company’s functioning. After
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
15
the GSPC took over management control of the GGCL in 2013, the two companies continued to run as separate entities for 2 years while merger options were
evaluated and finalized.
On the one hand, under BG management, GGCL looked at a larger picture of
global standards as an MNC in natural gas distribution and occupational health and
safety. While the GGCL was aligned with global practices, the GSPC management
and culture looked at the local context, state government policy and procedures,
and existing service conditions of the GSPC and its associated companies. It was
the marriage of two drastically different company cultures poised for integration.
Finally, the combined entity was named Gujarat Gas Limited (GGL) and was
listed in 2015. Post-merger, the combined entity business registered significant
growth, led to wealth creation for shareholders, and soon became India’s most significant city gas distribution player. Some wondered whether it was situational. The
actual ground-level reality vis-à-vis previously identified challenges was checked
to determine the efficacy of HR integration and the merger’s success.
3.4
Challenges as a Combined Entity, GGL
GGL focused on collaborating strengths, creating value, and growing markets. The
reverse merger brought new opportunities and challenges for the HRD team. On
the one hand, GSPC Gas employees were delighted to get the backing of a cashrich and process-oriented company, and the reports said they were looking forward
to rapid growth, having acquired a reputed MNC. However, employees needed
more satisfaction regarding the distribution of portfolios and the assignment of
roles and responsibilities. Furthermore, many top- and middle-level management
officials decided to leave during M&As since the company would become a public
sector organization.
Additionally, new employees joined the GGCL through direct recruitment on a
contractual basis, creating significant issues among existing employees and resulting in the absence of a cohesive work atmosphere. Therefore, GGL decided to
make new changes to its employment terms, which differed from the earlier practices used in GSPC and GGCL (Annexure VI and Annexure VII). The other
significant HRD challenges for the HR team during the period 2014–2016 were as
follows:
1. The GGCL worked on a vertical structure with more specialized functions
and a skilled workforce in the industry segment. In contrast, the GSPC had
a horizontal structure and worked on a more focused project approach and
strategies to expand the business.
2. The speed of execution across both companies was different.
3. The growth trajectory of both organizations was different.
4. The organizational structure of both erstwhile companies was different. There
was a need for a significant structural redesign.
5. The pay grades and compensation of both entities need alignment.
16
G. P. Mahapatra and N. Vashishth
6.
7.
8.
9.
Merging of HR or ERP systems, SOPs, and processes to leverage strengths.
Realignment of culture and operational philosophy/practices of both entities.
The changing face of leaders and leadership approaches.
Aligning roles, responsibilities, designations, HR policies, employee benefits,
and service conditions.
10. Employee retention and well-being.
11. Legal compliance with changes in the firm’s name and changes in registrations.
4
Actions by the New Head HR
While looking at the scenario, Upadhyay took charge of leading HR and Admin.
He analyzed the situation to find the best possible solutions for protecting the
interest of the employees and the organization. GGL, as a merged entity, had the
strengths and weaknesses of both erstwhile companies, i.e., GGCL and GSPC Gas.
The integration of two different organizational structures and cultures could cause
problems and, if not handled well, could lead to merger and acquisition failure.
For the smooth changeover, the GGL MD met with managers above senior manager level and change management agents were nominated among them across
the company. This philosophy helped communicate the proper business agenda;
provide continuous communication through various stakeholders on the M&A process; and cover various HR aspects, including job security, culture enhancement,
and mitigating the risk across the organization. Peeush also looked into the past,
relied on his experience, and studied various previous interventions to manage the
M&A challenges. After thoroughly evaluating the challenges and understanding
the current situation, Peeush attempted the best possible solution “to merge the
various service conditions and create an equitable and fair single layer identity for
all the employees.” Key HR-led initiatives incorporated on a priority basis included
the following:
. GGCL employees were on the company payroll, while GSPC Gas employees were in a contract role. Thus, all employees of erstwhile GSPC Gas were
accommodated at par on the role, securing the job of employees.
. Defining/implementing organizational structure along with accountability
across levels.
. Defining the financial authority matrix for proper business processes.
. Implementing the best HR policies from both companies.
. C&B alignment (median-based salary alignment) across the levels and implemented in 2 years to bring compensation and benefit at par.
. Implementing the L&D philosophy across the company, including various OD
interventions, viz., Shabassh Card/Pinnacle Award/Safety Awards on a monthly/
quarterly/yearly basis.
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
17
. Implementing digitalization for all business and HR processes, including
approval notes and policy implementation.
. HR visits across locations to explain various HR processes and policies along
with discussion for any query related to M&A.
. Various cross-functional meets and departmental meets.
Overall, the post-merger was a challenging time for the top management, especially for the HR team. However, Upadhyay handled it well, with the support of
the MD, the senior management, and the HR team members, he was able to maintain the synergy and ensure that the organization’s business was positively affected
despite the present challenges. Upadhyay added, “In the middle of difficulty lies
opportunity, and we started exploring all options which would help us sail through
as the winner.” These opportunities were as follows:
1. Target untapped areas and extend boundaries: The compressed gas distribution for the city grew exponentially at a rate of 10% in the last decade and is
expected to grow 20–22% over the next decade. Thus, there was a massive
opportunity for the organization to scale up and grow outside the boundaries of Gujarat to supply high-quality, low-cost energy across India safely.
Many untapped areas had high commercial viability and margins, leading to
profitability and growth potential.
2. Reskill employees: To meet the considerable need for new, high-end skill sets,
GGL encouraged employees to be trained and invest themselves in acquiring
high-end skills rather than hiring a new pool of talent of diploma holders and
fresh engineers.
3. Change Management: Rapid growth in the sector and concurrent impact on
the organization’s growth opportunities pose an excellent opportunity for management changes by top leadership. This involved leading change for the
organization, its stakeholders, the customer, the investors (Govt.), and finally
having employees implement and, more often than not, initiate changes as the
pioneers in the field.
4.1
Final Interaction with the MD
Before concluding his study, Subrata also explored the possibility of meeting the
MD for his closing remarks. Upadhyay made some efforts and organized the same.
So, there came the opportunity for the award committee to interact with the head
of the institution of this mammoth organization. Subrata was well prepared and
keen to gain the maximum from the brief meeting, so he presented four specific
questions:
. What is your brief perspective on culture and people management in Gujarat
Gas today? The MD replied, “The culture here is a healthy blend of professionalism and commitment to social objectives. Its strong focus on processes,
18
G. P. Mahapatra and N. Vashishth
safety-first culture, and adoption of global best practices has made it a breeding
ground for talent in the CGD sector. I am proud to say that today, most of the
CGD companies in India have Gujarat Gas-trained personnel at key positions in
their organization. Training and upgrading people’s skill sets have always been
an integral part of our culture….”
. Going ahead, he asked, given Gujarat Gas’s rich and diverse history, where
do you visualize its journey ahead? He replied, “…We believe in strategically
aligning ourselves to energize India’s Natural Gas Vision of increasing the natural gas penetration to 15% by 2030 from currently at 6.5–7%. This approach
enabled raise our execution capabilities. I am proud to say that GGL is no
more a one-state company. It now has a presence in six states and one Union
Territory..”
. Specifically, in HRD/people management and change management, we would
request to highlight your future perspective. “We have a vast reservoir of
CGD talent, developed by putting in place key HR processes leading to a
high-performance culture across the organization, as per the need to meet organizational objectives. However, along with changing environment, we need to
change their mindset from a pipeline-laying outfit to a marketing company. Natural Gas is no more a commodity for us at GGL. We must treat it as a product
and market it with strong customer service.”
After listening to the story of this unique organization, Business Editor Subrata
thanked the MD for his time and Upadhyay for his hospitality, as well as complimented him on his efforts and success, and wished him all the best for the future. It
was 7.30 p.m., and Hardip, Associate Vice President HR, GGL, who was waiting
for his boss, curiously asked him about the meeting with the awards committee.
Upadhyay replied, “The discussions were positive, and we can expect positive
development in a few days. Nevertheless, why are you looking tense?” AVP HR
hesitatingly shared that the head of a critical business vertical had resigned, and
he was concerned about finding a replacement. Upadhyay calmly replied, “We are
a leading CGD organization, and challenges of talent loss, succession planning,
safety, compliance, and continuous skill development, will keep appearing. However, we will work out strategies to resolve them. We will reflect and determine
what to do differently in our HR & OD practices to develop GGL as a market
leader and remain one of the best places to work.”
5
Present Challenge Before Head HR and GGL HR Team
Three decades of GGL witnessed innovation, nurturing a culture of collaboration,
enabling technical supremacy, ensuring health and safety, and enhancing the focus
on stakeholders. Since its inception, the adoption of sound HRD and OD practices
with a consistent focus on people practices has made it a unique organization and
established human resources as a competitive advantage. The vision of top and
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
19
potential leaders directed the firm to grow exponentially. After a successful presentation to the award committee, Upadhyay is pleased and optimistic. However,
after the discussion with Hardip, AVP-HR and his direct report, he was concerned
about the potential talent loss and deeply pondered the importance of talent management for the foreseeable future. He considered his next move and plan of action
to resolve the current issue.
6
Case Questions
1. How did the GGL organizational culture evolve? Describe the various phases
and their impact on culture.
2. What was the primary goal of the HRD team across all the phases of HRD and
OD interventions?
3. What was the focus of the HRD team across all phases? Was it talent retention,
cultural integration, quality customer service, or expansion and growth?
4. In light of recent challenges, what is a loophole in the existing HRD practices?
What further actions should indeed be taken to improve the culture?
5. In the position of Upadhyay; how would you design HRD/OD interventions in
today’s context to avoid top management loss? What will be your plan of action
for organizational growth going forward?
6. How is HR the key to any successful merger and acquisition? What are the
main parameters for human resources during a merger and acquisition?
Acknowledgements This case is developed solely for class discussion and not necessarily an
indication of the management’s decision-making style. The authors are grateful to GGL Chairman,
MD, Mr. Ravindra Agrawal, ED GSPC; Mr. Peeush Upadhyay, ED HRD; and Mr. Hardip Baria, AVP
HR for their invaluable support; and Ms. Amruta Londhe and Inika Sharma, Research Associate
IIMB for valuable assistance.
Annexure I: HRD Interventions
Phase 1: HRD and Management Interventions in the Early Years
of GGCL
1. HRD Audit: While the company started excelling as a pioneer, it proactively
recognized the need for technical training and customer service. Profitability
and growth meant upskilling talent, which was not readily available in India,
particularly in the region. Hence, top management engaged T.V. Rao (Professor
of IIM Ahmedabad and ex-Director of the Academy of HRD) to take stock of
HRD activities and to recommend future steps.
20
G. P. Mahapatra and N. Vashishth
2. Vision and Mission of Gujarat Gas: Senior Management believed in quality,
customer service, and employee involvement. They engaged a consulting firm
specializing in “Total Quality Management (TQM)” to develop a vision and
mission statement with values present company-wide.
3. Employee Satisfaction Survey: The organization focused on building a culture
of quality services, creating the frameworks of TQM for internal customers and
employees and “Employee Satisfaction Surveys” and “Customer Satisfaction
Surveys” for external customers. Additionally, the “Train the Trainer” initiative
was launched, and a rigorous review mechanism was adopted.
4. Customer Satisfaction Survey: Senior management wanted to achieve significant benchmarks by measuring customer service experiences and identifying
areas for improvement. GGCL engaged a global consulting firm for the customer satisfaction survey. The results indicated 90–95% satisfaction among
industrial, commercial, and domestic customers. However, challenges included
safety and continuity of service standards, which management subsequently
prioritized.
5. Leadership Development: GGCL nominated top talent and high potential managers to leading B Schools, e.g., Three-Tier Leadership Programmes in IIM
Ahmedabad. The Customer Interaction Team (CIT) was sent to the USA to
train on the best practices and bring them back to the line. Employee and customer satisfaction surveys identified improvement areas, and trainers focused
on the same topic. 5S, Japanese tools were implemented for housekeeping and
cleanliness. Rewards and recognition were similarly used for growth.
6. Defining and managing performances: A 180-degree performance management system was introduced, and performance scores were brought on the
common platform during leadership meetings. This allowed anyone to question scores and challenge deviation. Performance review committees were set
up to assess the overall candidate potential.
The integration of HR into organizational systems shaped a culture of systemdriven practices and enablement. “GGL had a systems-driven culture at that
time; interventions involved everyone, helping achieve exceptional teamwork and
organizational skills.”
Note 5S—In Japanese, the five Ss imply Seiri, Seiton, Seiso, Seiketsu, and Shitsuke. The five Ss are translated in English as Sort, Set in Order, Shine, Standardize,
and Sustain.
Source Compiled from GCL’s internal documents.
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
21
Phase II: HRD and OD Interventions (BG Group Acquired
the Company)
. Employee engagement, Employee Satisfaction Surveys (ESS), and interventions
Beginning with the total quality journey in 1994–95, employee satisfaction survey
and customer satisfaction survey were an ongoing part of GGCL’s culture. The
survey was conducted through the consulting firm Grow Talent Company Ltd.
The firm conducted the ESS–Great Places to Work Survey in October 2003 to
gain insights into employee perceptions of workplace relationships and culture.
The company took these initiatives to improve the satisfaction levels within the
organization (Economic Times, 2021). The key measures were credibility, respect,
fairness, pride, and camaraderie. The company conducts these surveys periodically
every financial year to identify issues and resolve them as early as possible (https:/
/www.gujaratgas.com/resources/downloads/business-responsibility-report.pdf).
. Employee Communication, consolidation, retention, and redeployment
Employee satisfaction surveys showed concern about employee communication,
so HR needed to rebuild employee trust and reinstate the trade unions’ faith.
During this time, the management decided to consolidate business in core gas
distribution, with no ancillary business to be carried out. Gujarat Gas Financial
Services Limited, a subsidiary company of GGCL incorporated in 1994, was
divested.
. Golden Handshake and Reinventing Performance Management System
GGCL’s management decided to go for the golden handshake scheme in 2003
to enhance productivity and rationalize the workforce. Continuous developmental plans were created with a 3-year cycle to focus on organizational, functional,
behavioral, and future-role needs. The promotion policy, exit policy, transfer policy, employment policy, and intra- and intercommunication systems were reviewed
in detail.
. Strengthening relations with government and external stakeholders
Although GGCL was government-promoted, relationships with government agencies and other stakeholders needed strengthening, so a Director of Government
Relations was appointed. The company also added verticals such as advertising/
publicity, corporate social responsibility, media relations, and investor relations.
22
G. P. Mahapatra and N. Vashishth
It moved from a uniform, rigid organization to a more diverse one incorporating
corporate and investor relations consolidation.
. CEVA movement as a significant OD intervention
CNG business consolidation and diversification led to the birth of the customer and
employee value addition—the CEVA movement. The organization was divided into
cross-functional teams to study the concerns and pinpoint areas needing realignment or restructuring. Surveys have indicated that performance management and
reward and recognition practices need attention. The top management focused
sharply on these areas, taking steps to rebuild trust and collaboration.
. CSR and skill development contribution to socioenvironmental awareness
Leadership change encouraged sustainability interventions shifting the focus from
petrol to CNG. A part-time training and skill-building program was launched
to inculcate an awareness of CNG needs. This initiative increased the availability of trained auto-mechanics whom the vehicle owners could trust to convert
their petrol-driven cars to CNG. CSR initiatives were carefully planned to benefit the communities in which the company operated. For example, a program
devised to train the tribal youth of Bharuch District in gas pipeline-laying activities increased the youth’s earnings by 100–300%. With the focus shifting from IR
to HR, employee satisfaction grew from 42% in 2004 to 83% in 2007.
Source Compiled from GCL’s internal documents.
Annexure II: Vision Statement and Core Values at GGCL
Vision: We make natural gas the safe and preferred energy solution.
Core Values: Customer orientation, Team work, Commitment, Growth, Trust.
Source GGCL Annual Report 2013.
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
23
Annexure III: Health Safety and Environment
Gujarat Gas Limited is an OHSAS 18001:2007 and ISO 14001:2015 certified
company. The company ensures that all management decisions reflect its Health
Safety and Environment (HSE) intentions. GGL considers its employees’ health
and safety, environmental protection, and general public safety as top priorities. It
recognizes that the protection of health and safety and the environment is integral
to business performance and is the responsibility of the management at every level.
The goal of zero injuries drives operations to ensure that every employee working
for and on behalf of GGL returns home safely at the end of each working day.
Source GCL internal documents.
Annexure IV: People’s Inclusion Toward Community
and Environment at GCL
As a responsible organization, the GGCL recognized its obligations to positively impact society and the environment through continuous formal and informal
initiatives. Initiatives included
A. Environmental Day/Week/Fuel Conservation Awareness: Such activities
were conducted to raise awareness among the public for sustainability.
B. Dial Before Dig Campaign: In this campaign, GGCL stressed the possibility of
natural gas being released due to pipeline damage during digging. Stakeholders
were urged to dial GGCL to confirm locations before digging activities to
prevent damage to the pipeline network.
C. CSR and Society: Before beginning activities, project relevance is assessed by
one or more employees who visit the location to ensure the selection of the
most relevant and effective programs. The GGCL has thus undertaken many
initiatives in community development, especially for skill upgradation. Indigenous people around areas of operation are trained and taken on as contractors,
achieving lower worker attrition rates and providing livelihoods.
D. Customers: GGCL assured customers of the best services available in the
market, and to ensure this, they had a well-defined, periodically performed customer satisfaction survey. Top management also regularly conducts customer
meetings with key customers.
Source Compiled from GCL’s internal documents.
24
G. P. Mahapatra and N. Vashishth
Annexure V: Corporate Social Responsibility
Gujarat Gas Limited has undertaken many initiatives focusing on community
development, health, and the environment, keeping in mind government priorities
and relevance to business.
. GGL provides free gas to crematoriums across its operating locations in
Gujarat. Since this is an environmentally friendly fuel, this helps to protect
the environment.
. Contributions were made to the Chief Minister’s Relief Fund and Swachchta
Fund to provide flood relief to Gujarat people and create public awareness for
cleanliness.
. Contributed to Akshaya Patra Foundation to set up a centralized kitchen in
Bhavnagar District to provide unlimited mid-day meals for government schoolgoing children.
. Contributed to the “Gujarat Environment Festival” to celebrate World Environment Day at Ahmedabad to promote the freeing of one lakh trees from possible
threats.
. Under corporate governance, activities are listed in the board and annual report
(i.e., Annexure I of annual report for 2015–16, 2016–17, and 2017–18).
. The compliance certificate toward corporate governance issued by the practising
company secretary is showcased in the corporate governance report for 2015–
16, 2016–17, and 2017–18. Since 2016–17, the business responsibility report
activity has been introduced and has been part of the annual report.
Source Compiled from GCL’s internal documents.
Annexure VI: The Significant Facts of GSPC Gas Through an HR
Prism (Summarized)
(a) All employees were on fixed-term contract roles with a renewal option.
(b) No blue-collar workforce: all control room operations, and most customer services, admin, and facilities management were outsourced to optimize costs
with adequate managerial monitoring of all services.
(c) Comparatively adequately paid white-collar staff.
(d) Part of a successful state Public Sector Undertaking (PSU) where employees
were on fixed-term contracts, practicing 6-day working week and alternate
Saturdays holidays.
(e) Lean organization managerial resources focus on aggressive expansion,
growth, volumes, and the HSE.
(f) A young organization; with empowerment, challenges, and a growth environment.
(g) Employee pride in creating new benchmarks of performance/speed of execution and outsourced development models across the industry.
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
25
(h) The unlisted entity with significant debt because of the pace of project
expansion.
(i) In 2013, GSPC Gas by volume was 2.5 times that of GGCL.
Source Compiled from GCL’s internal documents.
Annexure VII: Employee Rewards from the HR Perspective
(a) All employees had permanent roles with high commitment or long-term
liabilities for sustainability.
(b) There were two separate operating workers’ unions in Surat, Ankleshwar, and
Bharuch, with separate wage settlement agreements.
(c) Blue-collar employees held strong opinions about the higher paid white-collar
staff.
(d) Enhanced pride in working in an MNC, leading to practicing a 5-day working
week.
(e) GGL was a publicly listed company with no debt.
(f) Limited geographical area operations (Surat, Ankleshwar, and Bharuch) and
limited personnel transfer stifled employee growth and made them complacent.
(g) Proportionately high managerial resources with limited scope for professional
growth.
(h) As an older organization, a highly stable environment with less growth and
challenges.
(i) All operations, including most customer services, were managed internally
since there were sufficient blue-collar, unionized employees in the workforce.
Source Compiled from GGCL’s internal documents.
Annexure VIII: Grade Rationalization
Grade rationalization and equitable R&R: summary of crucial observations.
26
G. P. Mahapatra and N. Vashishth
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
Source Compiled from GCL’s internal documents.
Annexure IX: Major Events During the Merger with GSPC
27
28
G. P. Mahapatra and N. Vashishth
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
29
30
G. P. Mahapatra and N. Vashishth
Source Compiled from GCL’s internal documents.
Appendix: Teaching Note
Case Summary
Gujarat Gas Limited (GGL) is India’s most extensive city gas distribution (CGD)
player. The company has been engaged in procuring and distributing natural gas
since its establishment in 1980. The case talks about the journey of GGL, which,
through several mergers and acquisitions, has achieved tremendous growth and
success based on its strong culture, HR practices, and OD interventions. The company began as a joint venture, grew into a multinational organization, and then
reversed its ownership to become a state-owned corporation. In all three phases,
GGL has experimented with suitable HRD and OD interventions relevant to the
different challenges at the time. During the third phase, Peeush Upadhyay, the EVP
and CHRO of Gujarat Gas Ltd. (GGL), leads the way in maintaining company
culture and employee satisfaction despite the challenges of the reverse merger.
Nevertheless, a large company such as GGL must continuously stay ahead of
new arising concerns. At the close of the case, they are at the threshold, grappling
with critical issues such as top and middle management talent loss, succession
planning, safety, compliance, and continuous skill development. As a CHRO of a
large group, Peeush wonders, “What next move should I plan to resolve the current
issues? What should I do to strengthen the culture and enhance the company’s
growth?”.
Learning Objectives
The case allows students/practicing executives/managers to study how a company
continues to adapt across various challenges in a competitive business environment
by emphasizing employee engagement, development, well-being, and alignment.
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
31
Students can understand how the company goes through the mergers and acquisitions process and how it transforms the organization’s culture along with its growth
journey.
Students will also learn about the various HRD/OD interventions designed and
implemented to enhance the company’s culture for improved future growth and
success.
Case Positioning
The case can be used in the class of organizational behavior, organizational culture,
organization development, human resource development, employee relations, and
mergers and acquisition course for the participants in MBA or executive MBA
programs offered in top B-schools. This case can add value for HR professionals/
HR leaders and senior managers of large corporations/public sector companies.
Moreover, CEOs/CXO enrolled themselves in short-duration executive education/
general management programs offered by B-schools to understand the merger and
acquisition process and various HRD/OD interventions planned to strengthen the
firm’s culture.
Teaching Plan
Prerequisites
This case should require 75–90 min of class time. The case can be introduced by
emphasizing the role of employees in ensuring a business is successful through
challenges and transformation. After going through the case, students should
attempt the discussion questions in groups, with a reminder to incorporate previously learned OB, OD, and HRM concepts. The class should then come together to
discuss and debate the responses they formulated within the group, with the teacher
establishing a collaborative and open-minded setting. Additional texts could be
emphasized for the topics of class interest. The case closing should emphasize the
role of OB and HRM in supporting company evolution and reflecting business
changes in organizational culture.
Discussion Questions
How did the GGL organizational culture evolve? Describe the various phases and
their impact on culture.
Culture is an essential aspect of any organization. Kotter (2008) defines culture as
the shared values of a group, even when individual members change. It needs to be
addressed or it may become a secondary issue for the company. Ignoring culture
is a mistake because culture positively and negatively impacts a company’s performance, reputation, and brand value. If the organization’s culture is appropriately
32
G. P. Mahapatra and N. Vashishth
managed, it may assist in achieving transformation and building organizations that
will flourish even in the most challenging situations.
Additionally, well-managed organizations can experience high growth, success,
enhanced brand value, employee loyalty, and customer satisfaction. If the culture
is managed poorly, the company has to handle high employee turnover, losing
customer base to competitors, and lower brand value. Therefore, culture is made
on repetitive practices, habits, and emotional responses. It is constantly renewing
and evolving at a steady pace.
As explained by Kotter, organizational culture is different from strategy or purpose, and some aspects may be more resistant to change than others. In this case,
the culture of the GGL has evolved gradually. The company has gone through
several mergers and acquisitions and its challenges. HRD and OD practices have
been crucial in shaping the organization’s culture. During phase I, the early 1990s,
GGCL (a former name of GGL) was incorporated as a joint venture gas company, GIIC, and Mafatlal group. The company was growing rapidly with a focus
on quality customer services, high safety standards, and marketing. During this
time, the company adopted HR practices focused on experimentation, exploration,
and innovation. These practices helped build a positive culture in which every
employee was encouraged to experiment and commit mistakes, creating a culture
of zero resistance integral to the new company. It enabled the environment to flourish under the leadership of dynamic top management. Then, the company adopted
HRD and the total quality route using tools such as HRD audit, vision, customer
satisfaction and employee satisfaction surveys, integrated talent management using
performance management, and potential appraisal and reward systems (PPRDS).
Overall, the phase I incidents explained that GGL culture has evolved in the form
of learning, caring, purpose, results, authority, and safety.
In phase II, after the acquisition of the British Gas Company, the GGCL (a former name of GGL) became a multinational corporation and was headed under the
leadership of Mr. Edwin Bowles, CEO. This acquisition created a sense of insecurity among employees related to new management, new culture, job loss, and more.
The company was grappling with many sensitive issues, and the employee union
was also established at that time. The company’s primary focus shifted toward
employee engagement, satisfaction, health and safety, customer service, leadership development, and performance management. The company adopted several
HRD and OD interventions (such as the employee and customer satisfaction survey, golden handshake scheme, standard operating procedures (SOPs) for safety
culture, people inclusion toward community and environment, and corporate social
responsibility (CSR)) to rebuild employee trust and commitment and tried hard to
win the faith of union in management. These HRD initiatives brought a cultural
shift in the company, more toward employees’ caring, learning, and safety. They
also positively impacted the performance and growth of employees during that
time.
In phase III, GGCL marked a stagnation in their volume and growth, and GSPC
was doing well. In 2013, GSPC, through its subsidiary Gujarat Distribution Networks Ltd. (GDNL), acquired the stakes in GGCL from the BG Group. GGCL
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
33
again became a state-owned organization. For 2 years, both companies continued
to run as separate entities, and in 2015, the combined entity was listed as Gujarat
Gas Limited (GGL). The reverse merger came up with its advantages and disadvantages. After being listed as a combined entity, GCL faced many challenges
post-merger. GSPC employees were dissatisfied with the amalgamation, resulting
in mistrust toward the organization. Top and middle management employees left
the organization due to an unequal culture. GGL made new changes to its employment terms, which differed from the earlier practices used in GSPC and GGCL.
Peeush Upadhyay, CHRO, with the support of the MD and senior management,
changed agents, and HR team members successfully created a culture of equitable
and fair single-layer identity for all employees of GGL. Streamlining the functional processes and systems already established in GGCL helped streamline the
process in GGL while considering and implementing the decentralization of the
function. It led to the proper organization structure, accountability, and authority
across the levels of the organization. Parallelly, the focus was more on “Communication” across the organizations. The same was done at various levels, i.e.,
MD, ED, CEO, Head-HR and Admin., CFO, HoDs, GA/Functional Heads, and
Line managers. This initiative helped communicate the proper business agenda to
align the various stakeholders on the M&A process and the HR aspects of job
security and culture enhancement, mitigating slight risk across the organization.
These HRD initiatives brought a new shift in the firm’s culture, ensuring a sense
of security, fairness, and trust.
What was the primary goal of the HRD team across all the phases of HRD and
OD interventions?
GGL is an example of a unique organization that was previously a joint venture organization; then, it became a multinational organization, and then through
a reverse merger, it became a state-owned organization. The organization’s culture
in these three phases has been shaped through various HRD/OD interventions that
have led to the growth and development of GGL.
Cultural differences between companies can be a primary source of failure
in mergers and acquisitions, yet cultural integration is sometimes ignored and
often reactive (Loderofos & Boatend, 2006). Although in the case of GGL, the
response could also be considered reactive, once cultural differences were identified as a concern, they were of utmost importance to the organization. The
primary goal of the HRD team across all the phases of mergers and acquisitions
is to provide quality customer services, uphold high safety standards, focus marketing, expand the business, target untapped areas, strengthen relationships with
government and external stakeholders, be involved in CSR activities, and maintain employee engagement, employee satisfaction, health and safety, continuous
skill development, leadership development, succession planning, and performance
management.
34
G. P. Mahapatra and N. Vashishth
What was the focus of the HRD team across all phases? Was it talent retention,
cultural integration, quality customer service, or expansion and growth?
Companies usually merge to stimulate growth, achieve a competitive advantage,
expand market share, or improve the supply chain. For GGL, the primary focus
on providing quality customer services, health and safety, business growth and
expansion, and employee satisfaction was common in all three phases.
In the early 1990s, the company GGL was focused on the three pillars of experimentation, exploration, and innovation. At the time, employees were happy with
the culture that encouraged them to experiment and invited them to present their
ideas at the table. Therefore, there was little resistance to change, and employee
satisfaction and talent retention are not the firm’s concerns. The firm’s primary
objectives were marketing, business expansion, providing quality customer service, upholding high safety standards, reskilling talent, employee satisfaction, and
performance management.
In phase II, British gas acquired the 65.12% stake in the firm and became a
private organization. Due to the establishment of an employee union, the company
noticed a sense of insecurity among employees. Then, the primary concerns were
employee engagement, employee satisfaction, trust, cultural integration, cultural
realignment, health and safety, customer service, customer satisfaction, leadership
development, and performance management. Therefore, HRD and OD initiatives
were planned to realign culture to improve employee and customer satisfaction. Furthermore, the efforts were to rebuild employee trust, reskill employees,
enhance performance, improve health and safety, enhance business, and strengthen
relationships with government and external stakeholders and CSR activities.
In phase III, the firm again became a state-owned organization through a reverse
merger. After the reverse merger, the new combined entity noticed significant
growth in the business and several opportunities to grab. However, employees were
losing trust in management at the ground level, and many top management officials were leaving the organization. The HR team faced significant challenges from
reverse mergers, such as structural redesign, compensation and grade pay, integration of HR systems, cultural alignment, leadership approaches, legal compliance,
and talent retention. Therefore, the primary focus was integrating the two company
cultures and bringing an equitable and fair single-layer identity for all employees.
This involved amalgamation of cultures, building trust, maintaining transparency,
and aligning roles and responsibilities. Also, realigning designations, HR policies,
employee benefits, service conditions, and adaptive leadership.
In light of recent challenges, what is a loophole in existing HRD practices? What
further actions should indeed be taken to improve the culture?
We look at the recent challenges of top management loss, succession planning,
employee development, safety, and compliance. There is some loophole in the
existing HRD practices. Existing HRD practices involve hiring on contract roles,
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
35
learning opportunities, skill building, safety, and compliance. To improve the
culture, GGLs should take the following steps:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Improve hiring and boarding practices.
Prioritize health, well-being, and safety and create a happy workplace.
Building an open communication channel.
Highlight high performers.
Focus on compliance, laws, and a fair evaluation system.
Focus on compensation and employee benefits.
Offer rewards and recognition for outstanding performance.
Provide training and development opportunities.
Manage employee performance.
Connect employees to organizations’ vision and goals.
Update HR/ERP system.
Adapt innovation.
In the position of Upadhyay; how would you design HRD/OD interventions in
today’s context to avoid top management loss? What will be your plan of action
for organizational growth going forward?
GGL’s management team and employees must think out of the box and develop
unique HRD/OD strategies to reshape the organization’s culture and avoid top
management loss. GGL should diagnose the issues closely, identify the root cause,
and discover the proper solution.
Based on the current circumstances, organizations should shift their focus
to issues such as performance management, appraisal, skill development, career
development, attrition, top talent retention, succession planning, trust, loyalty,
transparency, and many more.
Going forward, GGL should adopt the following HRD and OD interventions:
1. Keep your employees engaged and at constant learning. Find and allot new
assignments, challenges, and roles in the company to keep them engaged.
2. Keep your upper management connected to every employee and team to
reduce the communication gap.
3. Design L&D goals and focus on building their competencies, which involves
developing behavioral and technical skills.
4. Offer opportunities for professional development and continuing education.
5. Invest in career growth opportunities to excel in their career.
6. Encourage flexibility in the workplace.
7. Maintain transparency in the system.
8. Focus on performance management and succession planning to secure future
positions.
9. Offer perks, rewards, and recognition to maintain the motivation of employees.
10. Offer fair and equal compliance and pay.
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G. P. Mahapatra and N. Vashishth
11. Focus on employee engagement activities to retain trust, commitment, and
loyalty toward the organization.
12. Emphasis on health, safety, and well-being of employees.
How is HR the key to any successful merger and acquisition? What are the main
parameters for human resources during a merger and acquisition?
Mergers and acquisitions are common for all businesses to achieve a competitive
advantage in uncertain global environments. It is a key used to achieve organizational objectives along with market potential. Mergers and acquisitions profoundly
impact the employees of organizations that are likely to integrate into a single
entity. Many mergers and acquisitions fail due to incompatible cultures, poor leadership styles, low motivation, critical talent loss, communication gaps, reduced
trust, and ambiguity about long-term goals.
HR is essential in identifying the root cause, discovering solutions, and acting as
a mediator to resolve employee issues. HR manages all the crises and disputes that
occur in an organization and acts as a loyal advisor to an organization’s employees
and management, considering a merger and acquisition transaction. According to
Schrader and Self (2003), cultural integration is an essential part of M&A strategy and should include a pre-merger assessment of cultural compatibility and a
preliminary exploration of strategic alternatives. A flexible and comprehensible
integration plan should not only respond to challenges in cultural integration but
try to solve them preemptively. It is integral so that when the initial excitement
of the merger dies and friction becomes apparent, a company is not scrambling
to provide a safe and collaborative environment. Different stages of change management become essential depending on the combination or acculturation phase
(Mark & Mirvis, 2011). The differentiating factors/parameters for HR during a
merger and acquisition involve the following:
1. The amalgamation of cultures of both organizations.
2. They are identifying individual strengths to apply them across the unified
organization.
3. Building trust among two employee sets, integrating them into one organization.
4. Aligning roles, responsibilities, designations, HR policies, employee benefits,
and service conditions.
5. Leadership ensures visible problem-solving, transparency, and perception of
fairness in dealing with HR from both companies, emotions, and insecurities.
6. Ensuring critical resources did not leave the organization for any reason.
Growth and Transformation of Gujarat Gas Limited—An OD and HRD …
37
Preparation and Other Readings
The following article could help students understand the case and refer to the
preparation of the session:
1. Marks, M. L., Mirvis, P., & Ashkenas, R. (2017). Surviving M&A. Harvard
Business Review.
2. Dunbar, J. K. (2014). The leaders who make M&A work. Harvard Business
Review.
3. Ulrich, D. (1996). Human resource champions—The next agenda for adding
value and delivering. Harvard Business Press.
4. Kotter, J. P. (2008). Corporate culture and performance. Simon and Schuster.
Other Relevant Readings for Faculty Members’ Reference Are as Follows
Other relevant readings for faculty members are as follows:
1. Caldwell, R. (2001). Champions, adapters, consultants and synergists: the new
change agents in HRM. Human Resource Management Journal, 11(3), 39–52.
2. Ulrich, D., & Beatty, D. (2001). From partners to players: Extending the HR
playing field. HRM, 26 November. https://doi.org/10.1002/hrm.1020.
3. Blake, R. R., Mouton, J. S., Barnes, L. B., & Greiner, L. E. (1964). Breakthrough in organizational development. Harvard Business Review, 42(6), 133.
4. Brown, K. (2004). Human resource management in the public sector. Public
Management Review, 6(3), 303–309.
5. Madasamy, V. (2017). Impact of organizational development interventions.
International Journal of Human Resource Management and Research, 7, 1–6.
https://doi.org/10.24247/ijhrmrdec20171.
6. Fernandez, S., & Rainey, H. G. (2006). Managing successful organizational
change in the public sector. Public Administration Review, 66(2), 168–176.
7. Lodorfos, G., & Boateng, A. (2006). The role of culture in the merger and
acquisition process: Evidence from the European chemical industry. Management Decision.
8. Schraeder, M., & Self, D. R. (2003). Enhancing the success of mergers and
acquisitions: An organizational culture perspective. Management Decision.
9. Marks, M. L., & Mirvis, P. H. (2011). A framework for the human resources
role in managing culture in mergers and acquisitions. Human Resource Management, 50(6), 859–877.
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References
Business Line. (2013). BG Group completes stake sale in Gujarat Gas to GSPC. https://www.the
hindubusinessline.com/companies/bg-group-completes-stake-sale-in-gujarat-gas-to-gspc/art
icle23119958.ece
Economic Times. (2012). Gujarat State Petroleum Corporation-BG Group to close deal for
Gujarat Gas Company Limited soon. https://economictimes.indiatimes.com/industry/energy/
oil-gas/gujarat-state-petroleum-corporation-bg-group-to-close-deal-for-gujarat-gas-companylimited-soon/articleshow/14804497.cms?from=mdr
Economic Times. (2021). Gujarat Gas Company Ltd. [Amalgmated]. https://economictimes.indiat
imes.com/gujarat-gas-company-ltdamalgmated/infocompanyhistory/companyid-12094.cms
Financial Express. (2002). Gujarat Gas Company. https://www.financialexpress.com/archive/guj
arat-gas-company/36886/
Gujarat Gas Limited, Business Responsibility Report Financial Year (2016–17). https://www.guj
aratgas.com/resources/downloads/business-responsibility-report.pdf
Gujarat Gas Limited, Company website. https://www.gujaratgas.com/about-us/the-company/
Rediff News. (1998). SEBI okays British gas move to up stake in Gujarat Gas. https://www.rediff.
com/business/1998/nov/12gas.htm
Repsol, Forbes. https://www.forbes.com/companies/repsol/?sh=167409b17c2a
Times of India. (2012). British Gas sells Gujarat Gas to GSPC for 2.4k cr. https://timesofindia.
indiatimes.com/business/india-business/british-gas-sells-gujarat-gas-to-gspc-for-2-4k-cr/articl
eshow/16663816.cms
PRADAN: A Journey of Continuing
Relevance
Smita Mohanty and Ajaya K. Samal
1
The Formative Years
PRADAN (Professional Assistance for Development Action) was co-founded by
Deep Joshi and Vijay Mahajan in 1983. Both had a basic education in engineering and were management graduates—Mahajan from the Indian Institute of
Management (IIM), Ahmedabad, India and Joshi from Sloan School of Management, Massachusetts Institute of Technology, USA. Both were inspired by the idea
that the best brains in the country need to devote their energies to addressing the
most intractable problem of the country—endemic poverty. They set out to attract
the brightest of the bright from IIMs and IITs, who would be willing to contribute
to this cause in rural India. When it was difficult to attract people to rural development as a vocation, they chartered a course that set the trend for such initiatives
to be undertaken in the years to come.
PRADAN engaged and accessed the best external resource persons in the
field. They include professionals such as Dr. Deepankar Roy, Fr. J. M. Fuster,
Mr. N. R. Jain, Dr. Rolf P Lynton, Ms. Ronnie Lynton, Dr. Sanjiv Phansalkar,
and Dr. Somnath Chattopadhyay. Some of these external resource persons were
engaged on a sustained, long-term basis to foster and facilitate changes for making
developmental interventions required in the organization from time to time.
Initially, PRADAN began by offering its techno-managerial assistance (in
keeping with its name) to existing Non-Governmental Organizations (NGOs) in
S. Mohanty (B)
H2/18, Shiksha Appt, Plot 11, Sector 6, Vasundhara, Ghaziabad, UP 201012, India
e-mail: smita@cognisphere.in
A. K. Samal
A-22 (Second Floor), Sector 3, Gautam Buddha Nagar, Noida, UP 201301, India
e-mail: ajaysamal@pradan.net
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_3
39
40
S. Mohanty and A. K. Samal
the country. PRADAN deputed its professionals to provide assistance to these
organizations by helping them deliver services in the field.
Soon, PRADAN began to seek opportunities to work directly in the field, to
experiment and experience the translation of its ideas into reality. This ushered in
a new phase of focus and growth for PRADAN. In 1987, PRADAN implemented
its first direct project in two states, and by 1989, it stopped deputing its professionals to other organizations. Its young professionals (PRADANites), recruited
from premier institutes of India, began to identify and grapple with the issues confronting the poorest of the poor in the country. The number of professionals in
different years is provided in Annexure 1.
1.1
Induction of Young Professionals
PRADAN recognized that its primary, if not only, asset was its people. In the first
year, it recruited four professionals. However, bringing in professionals in ones
and twos was too little and too slow to make a significant difference to the work
PRADAN set out to accomplish. A decision was then taken to induct around 100
young professionals every year from various disciplines. The intention was to not
only have professional staff to implement programmes and projects but also to
create a cadre of educated youth that would serve the cause of alleviating poverty
in India.
Consequently, PRADAN, in collaboration with external experts in recruitment
and selection, set up a system of selection, which enhanced its capacity to select
100 young professionals annually. Around 60 PRADAN executives with more than
4 years of experience were trained to become recruiters and selectors. A pair of
selectors carry out the selection process, either at a university/institute campus
or a recruitment camp, with the mandate to finalize the selection. Senior members within the selectors only intervene or cross-check the selection. The process
enhanced PRADAN’s efficiency vastly in selecting fresh professionals. This process has stabilized within the organization, and many NGOs in India have adopted
similar processes to augment their professional staff.
1.2
The Structure
From its inception, the founders of PRADAN, in their wisdom, worked out a structure (Annexure 2) that was completely aligned with the vision and the ‘tasks’ that
PRADAN had set out for itself. Professionals at the project implementation level
were called executives. Those who oversaw the work of a team comprising 3–5
executives were called team leaders (now called team coordinators). The professionals responsible for programmes in a state were called programme directors
(now, integrators). The staff that assisted the professionals were called assistants
(now, associates). One among the integrators becomes the Executive Director (ED)
PRADAN: A Journey of Continuing Relevance
41
for a term of 5 years. After completing their term, they return to being an integrator, shouldering a portfolio that needs a person’s energies with their perspective
and experience.
A Management Unit (MU), comprising select representatives from operations and integrating functions such as finance and human resource management,
anchors the functioning of PRADAN. The ED, with some of the integrators,
comprises the management unit, which is the apex decision-making body of
PRADAN.
PRADAN’s governing board comprises eminent professionals from different
spheres of public life, including academia, industry, and the development sector.
They provide oversight and guidance and carry out their fiduciary responsibilities.
PRADAN’s salary structure is a running scale. In other words, each individual
draws a salary on the basis of their number of years in PRADAN plus prior experience, if any. The pay is not determined by the position the employee holds. Every
PRADANite receives an annual increment. This scale usually undergoes revision
once every 3 years, based on a survey, considering the cost of living, etc. An
internal committee approves a proposal and places it before the governing board.
With this salary structure in place from the beginning, PRADAN steered clear
of many of the usual ‘hygiene’ factors (such as changes in salary accompanied by
promotions and fixing different basic pay for other people with the same number
of years of experience), issues that most organizations face, particularly during
periods of growth and expansion.
1.3
PRADAN’s Processes
PRADAN practices a democratic ethos. It strives for congruence between what it
attempts to facilitate in the field and how it functions internally. For instance, one
of PRADAN’s primary modes of functioning is through groups. After many deliberations, PRADAN defined its intervention unit as the Self-Help Groups (SHGs),
comprising 14–18 rural women. PRADAN’s executives facilitate the processes
of consensual decision-making in these SHGs. Analogously, PRADAN’s internal functioning is predominantly in groups, and consensual decision-making is the
norm.
This aspect of group-based, consensual decision-making is put into practice
starting with the selection of fresh professionals to the team coordinators, integrators, and the ED. Sociometry, a group-based assessment process, is a component
of all selection processes in PRADAN. Sociometry involves a relevant cohort of
colleagues expressing their views about a candidate’s suitability for a position in
PRADAN. A list of eligible candidates, usually based on the criterion of the number of years of experience, is drawn up. All colleagues, who know the candidate’s
domain of operations and performance, express their opinion confidentially; these
opinions are then pooled. The candidates, who score the highest, are shortlisted
and rank-ordered for eventual selection. This and similar processes uphold the
42
S. Mohanty and A. K. Samal
idea that PRADAN is everybody’s PRADAN. There is no one person who ‘owns’
PRADAN.
PRADAN has a retirement age of 60 years. PRADANites (including the
founders), who attain the age of superannuation, retire from the organization.
1.4
Annual Retreats
Furthering the participative culture of PRADAN and being a self-reflective organization, the entire professionals of PRADAN congregate at an annual retreat, during
which PRADANites take time to pause, reflect, and renew. The year that has gone
by is reviewed, theme(s) for the ensuing year are articulated, and PRADANites
spend time getting to know each other better—their struggles, aspirations, and
hopes for the future.
1.5
Challenges Faced at This Stage
Attracting educated youth to rural development was a challenge. Often, the parents of young executives need to be reassured of the organization’s credibility, the
nature of work, and the contribution their children would be making. In the initial
years, providing handholding and mentoring support to young professionals did
not come easy because PRADAN itself was quite ‘young’ and could barely claim
to have senior mentors to handhold the new recruits working alone in remote areas.
Another area that required attention was stabilizing the systems and processes in
Human Resource Management (HRM) and finance, critical for the integrating role
in the growth of any organization.
2
The Growth and Expansion Years
By 2007, PRADAN’s operations were well established in seven states: Bihar,
Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, and West Bengal.
PRADAN worked with marginalized communities, 65% of which belong to the
Scheduled Castes and the Scheduled Tribes (perhaps the most vulnerable communities in India). Over a period of years, its work spread across 9,000 villages
through block-level teams.
Gradually, PRADAN came to be recognized by the government (including
being involved in the government’s budgetary planning) and various other agencies in the sector. Donors were keen to provide funding support, better to leverage
their funds to serve the poor.
PRADAN continued to invest in the development of its staff. New recruits were
called Development Apprentices (DAs), and a year-long development apprenticeship called the DAship programme was designed and launched for them. The
DAship programme required DAs to spend several months in villages wherein
PRADAN: A Journey of Continuing Relevance
43
they familiarized themselves with the community, village life, and developmental tasks. They explored the inner calling that helped them make an informed
choice about their vocation. As DAs, they were exposed to ideas, concepts, and
areas of development. They honed their skills to produce meaningful development
outcomes.
On completing the DAship programme, DAs emerged as well-rounded development professionals with the knowledge, skills, and orientation to work with the
rural poor. Along with the executives, they spearhead PRADAN’s efforts in the
districts and villages of the seven states.
A three-phased Mentor Development (MD) programme was also launched.
Almost all senior and experienced professionals underwent this MD programme.
The mentors played a pivotal role in helping young professionals find their moorings in the field and PRADAN. They were helped to assimilate the ethos and
practices of working with the rural poor. The MD programme honed the attitudes and skills necessary in a helping relationship; this involved focusing on the
other person’s agenda and being empathic with the DA. In addition, mentors were
equipped with skills in designing field assignments and providing written feedback
to the DAs.
2.1
Re-Visiting PRADAN’s Vision
In 2013, PRADAN re-visited its vision. The revised vision envisaged the creation
of a just and equitable society based on transforming the human condition. Bringing about and sustaining such a change required deliberate attention to society’s
beliefs, values, norms, and practices. PRADAN visualized the state of the field as
capable women’s groups able to articulate their overarching purpose(s) and move
towards fulfilling their needs, aspirations, and goals.
Such a group has an enhanced sense of agency. It gathered data, reflected
upon its functioning and performance, and changed relevant practices. The SHG
women engaged critically (to seek, process, and evaluate information) with the
external environment and were able to act proactively (to anticipate and act) on
issues of importance. They endeavoured to include the marginalized and excluded
members of the community. They also stimulated, promoted, and nurtured similar groups and were able to influence the larger community. (For a more detailed
understanding of some of the building blocks of change, please see Annexure 3.)
2.2
Partnerships and the Non-direct Approach
PRADAN recognized that it could only translate this vision into reality with the
active collaboration of partner NGOs and other significant players in the field. It
chose to call this a ‘non-direct’ rather than an ‘indirect’ approach to enhancing its
outreach and continuing its journey towards more significant impact and relevance
44
S. Mohanty and A. K. Samal
in the rural development space. Through its partnership with other civil society organizations, PRADAN reached out to an additional two hundred thousand
households.
2.3
PRADAN’s Internal Structures of Governance
As PRADAN went about designing an appropriate structure and a set of processes
in the light of this new approach, it thought it is important to mirror internally
what it wanted to see out there.
Along with the effort to establish democratic structures and processes in the
field, therefore, PRADAN evolved its own internal governance structures and
processes. ‘General Council’ (GC), the internal governance structure, emerged.
PRADANites with 4 or more years of experience were offered membership of the
GC. Membership to the GC was voluntary.
The GC is accountable to the community of PRADAN. It is responsible for giving life to the mission of PRADAN; for reviewing and revising it; for upholding
the non-negotiables (a set of values and a ‘code of conduct’); for reinforcing the
empowering means of influencing, including processes of leadership and decisionmaking; for establishing PRADAN’s credibility in the development fraternity; for
mapping the state of the health of financial, human, and knowledge resources;
for reviewing and reinforcing professional practice, such as setting standards,
self-reviewing, cost consciousness, and bringing innovations; for reviewing and
identifying areas for policy formulation; for ensuring continuity; for renewing the
SC and leadership positions; and for encouraging cross-fertilization and mutual
learning.
2.4
Challenges Faced at This Stage
PRADAN, to raise the scale of its impact, gradually morphed into a projectdelivery organization. At this stage, it faced the challenge of changing the
approach of PRADANites—to re-orient them to an approach that was still seeking,
predominantly, to focus on the sense of agency of groups and collectives.
PRADAN also faced a funds crunch. Development Support Cost (DSC) for staff
salaries and administrative expenses is difficult to come by in the best of times.
Donors are willing to pay for project implementation but are extremely reluctant to
fund DSC. This had to be raised from philanthropies. One of the large donors that
supported almost 40% of DSC withdrew their commitment. They found it difficult
to justify funding the same organization beyond three cycles (lasting 4 years each).
The corpus of the organization needed to be buttressed to provide for DSC.
The third issue was that an increasing number of experienced professionals
faced a sense of stagnation. As PRADAN matured, there were nearly 80 professionals with 10 years or more of experience. Finding significant and meaningful
engagement for them was becoming a concern.
PRADAN: A Journey of Continuing Relevance
3
The Maturing Years
3.1
Change in Focus—Long Term to Short Term
45
As PRADAN drew closer to becoming a 40-year-old organization, and was faced
with the challenges it was encountering, it let go of the idea of changing its
approach. Funds took much work to mobilize. In discharging its Corporate Social
Responsibility (CSR), the private sector had a short-term perspective. Development had to be done in a hurry. PRADAN deployed small teams of professionals
to implement these CSR projects.
3.2
Change in the Nature of SHGs
One of PRADAN’s primary building blocks for development, the SHG, underwent a change. The government and the state recognized that mobilizing women’s
groups was essential for development efforts to bear fruit. The entry of the
National Rural Livelihoods Mission (NRLM), a government flagship programme,
and, subsequently, the State Rural Livelihood Missions (SRLMs), with a monetary
incentive attached to the formation of groups, began to erode PRADAN’s mainstay
of mobilizing, establishing, and facilitating robust SHGs of women. PRADANfacilitated SHGs, in addition to stimulating women to work towards sustainable
livelihoods, focused on various other aspects such as gender, rights, and entitlements. PRADAN had to adapt itself quickly to the new reality. It began to carry
out its programmes and projects using the SRLM-created SHGs.
PRADAN facilitated the emergence of 65,000 SHGs and has touched nearly a
million households.
3.3
Burgeoning Costs
By 2017, about 150 professionals had 5 or more years of experience; as mentioned,
about 80 had more than 10 years of experience. With such experienced professionals, PRADAN needed to expand or deepen its work significantly so that the
professionals could handle meaningful chunks of work. However, PRADAN fell
reasonably short of creating such workspaces for its professionals. Consequently,
many of them began to experience a sense of stagnation.
PRADAN explored the possibility of its experienced professionals becoming
development entrepreneurs and starting something of their own, with hand-holding
support from PRADAN. However, the entrepreneurial bug is not very widely distributed. As a result, only some professionals ventured to set something up on
their own. PRADAN supported those who did to set up their own NGOs. This has
been one of PRADAN’s significant contributions to the development sector. These
NGOs essentially adopted PRADAN’s values, norms, and practices. In this sense,
PRADAN has contributed to the spread of a value-based development ecosystem
in the country.
46
3.4
S. Mohanty and A. K. Samal
Shift in the Nature of Funding
As mentioned earlier, some donors, who had supported PRADAN over many funding cycles, needed help to justify their investment in PRADAN. They were looking
to spread their portfolio to enhance their reach and support the growth and development of more NGOs. PRADAN found their funding sources drying up from
donors, who had been PRADAN’s mainstay for long periods.
PRADAN began to access government funding through projects. These funds
came with their own protocols. PRADAN lost some flexibility regarding how it
could deploy these funds and carry out the projects contracted.
3.5
Challenges Faced at This Stage
A big challenge that PRADAN faced was the change in the nature of the
development task—from gradual, long-term, programmatic engagement to quick,
short-term, project-based engagement coupled with a change in the sources and
the nature of funding. In addition, it was an increasing number of experienced
professionals facing a sense of stagnation.
Thus, this has been PRADAN’s journey for almost four decades of its existence—a journey of continuing relevance. From a unique idea of harnessing the
imagination and energies of educated youth for the nation’s development to evolving into an institution that sets standards and norms of development practice for
all in the development sector to emulate, PRADAN has paved the path for others
in the field.
4
Proposal to PRADAN’s Members of the Governing Board
PRADAN has weathered many a storm in the past—from doubters of the idea to
nay-sayers who thought harnessing professional resources for rural development
was impossible. New emerging realities necessitate PRADAN to pay attention to
and reflect on the options it wishes to choose for itself in the future.
One particular area worth exploring may be the nature of engagement with the
development task. Although it goes without saying that development is a longterm undertaking, PRADAN may need to explore the possibility of shorter term
engagements and develop innovative ways of bringing about change in a relatively
short span of time.
Another area of attention is leveraging the pool of senior professionals.
PRADAN needs to engage actively with its large collection of experienced professionals to figure out how their energies can be best tapped and utilized—for their
own growth and for furthering the development agenda.
How can PRADAN build collaborative partnerships? The answer may lie in
seeking, establishing, and nurturing collaborative partnerships with other field civil
PRADAN: A Journey of Continuing Relevance
47
society organizations and development agencies. This will help leverage the professional, technical, and financial resources that may be melded in a synergistic
manner to produce significant development outcomes.
PRADAN may need to encourage the emergence of multiple PRADANs instead
of one unified PRADAN and support these new organizations. This may contribute
to the organization’s ability to take on an array of assignments and make implementation faster—an attractive proposition for people in the corporate space and
other actors in the field.
PRADAN can move beyond the country’s borders. Over the years, PRADAN
has garnered enough expertise and credibility to be able to ‘export’ its ‘brand’ of
development to countries beyond our borders. This will help spread PRADAN’s
development perspective and provide meaningful engagement to the band of highly
experienced PRADANites.
PRADAN must aggressively expand its donor base and not limit itself to ‘big’
donors. It needs to tap into smaller donors as well.
Some of these ideas may require legal as well as financial restructuring.
Nonetheless, exploratory actions need to be initiated.
The current management unit is wondering where PRADAN will transcend for
its continuing relevance. Which is the correct path or paths out of these multiple
options before it that will make it sustain without changing its character entirely?
Annexure 1
Growth of professional human resources over the last 20 years
Timelines
Number of professionals with experience level
Up to
4 years
4 to
9 years
9 to
14 years
14 to
19 years
March 1986
25
March 1990
46
3
March 1995
43
44
2
March
2000a
57
17
8
3
March 2005
No. of DA
19 and
above
Total
25
Total
(cumulative
figure since
beginning)
0
49
4
89
40
0
85
297
93
44
13
6
2
158
701
March 2010 174
46
32
8
6
266
1350
March 2015 174
117
23
25
12
351
1919
March 2020 128
136
75
32
32
388
2364
a 1998
PRADAN South split and DHAN Foundation was born, more than 100 staff went there
48
S. Mohanty and A. K. Samal
Annexure 2: The Structure of the Organization
Governing Board
Executive Director
Management Unit
Integrator
Team Coordinator
Executive
Associate
Annexure 3: Change: Some Building Blocks
In an endeavour to strategize and intervene in the current situation, PRADAN
decided to conceptualize and articulate the meaning of change and some of its
building blocks.
Driven from Within
To have the power to propel and sustain itself, change had to be anchored within
the community and the individual. In other words, it needed to be internally driven.
Manifest behaviour (B) is a function of the perception of self (P) in interaction with
the perception of the environment (E). Thus, change required one’s own perception of self and the environment, which is internal. The whole field, or ‘life-space’,
within which people act was to be considered; this included the social field (family,
work, school, and church), psychological field (needs, aspirations, etc.), and sociological field (force fields—motives clearly being dependent on group pressure).
B is a result as well as an input to the next spiral of change because a change in
B would contribute to a change in P and E.
The Sense of Agency
The human condition is determined by a complex interplay of psychological,
physical, and spiritual forces. The key determinant, or pivot, in this process is
a community’s/group’s/person’s sense of agency (‘I matter’). Enhancement in the
sense of agency is, perhaps, the most critical ingredient to trigger and sustain
change in the human condition and provide a sense of well-being.
The sense of self-efficacy is a significant force. A person with low self-efficacy
will harbour feelings of hopelessness such as what one often encounters among
PRADAN: A Journey of Continuing Relevance
49
members of the poorest social groups in India. It follows that enhancing the sense
of agency of poor people must be a necessary and key element in the strategies
used to alleviate poverty. This can, perhaps, best be done by engaging directly
with them as individuals, in groups, and in communities. To succeed, such an
engagement must be rooted in the belief, a priori, that people have the capability,
that they are worthy and can be the drivers of change for themselves.
Collectives and Groups
Any change, no matter how microcosmic, has to ground itself and find roots in
the macro-fabric of the community. Collectives and groups are the receptacles of
the macro-fabric. Therefore, collectives and groups need to be the primary focus
of a change intervention because (a) collectives and groups are where ‘culture’
manifests itself; (b) collectives and groups bring and bind people together through
an ‘interdependence of fate’ as well as an ‘interdependence of task’—the task of
building a better life for the entire community; and (c) it is predominantly through
collectives and groups that a ‘movement’ can be orchestrated.
The primary group is the connecting link with the larger community. These
groups from within the community are more aware and conscious of the reality
of the poor and the marginalized—their poverty and their oppression. Inclusive
processes ensure that people come together and develop a bond on the basis of an
‘interdependence of fate’. Collectively, they explore what they can do for themselves. This often results in raising the level of consciousness about their own
strength and what they can do to change their condition.
In the safety of the primary group, usually of about 15 members, people
learn to share their experiences, their pain and joys, their despair and hope, and
find succour, support, and encouragement to deal with their reality. They engage
in member development and help individuals find their voice, participate more
effectively, and evolve into aware and conscious citizens. In the primary group,
members get an opportunity to experience their potential for change, growth, and
development.
PRADAN’s primary unit of engagement was envisaged to be such groups (one
form of which is the SHG). These groups were facilitated to focus on what they
have, rather than on what they do not have. In recognizing these assets lies their
strength, energy, and potential to stimulate and propel change and improvement.
Some of the existing values, virtues, practices, and norms, which pertain to collectives, groups, and nature, may need exploration, legitimization, and reinforcement.
“What I do have is not inferior and, hence, is not to be discarded; it is to be valued
and put to better use.” Such exploration could become the springboard for action
and betterment.
Democracy and democratic functioning are often the casualty in our society. To
quote Kurt Lewin, “… democracy must be learned anew in each generation, and
that it is a far more difficult form of social structure to attain and to maintain than
is autocracy.” Norms and practices upholding the values of equality, equity, and
50
S. Mohanty and A. K. Samal
fairness need regular attention and reinforcement, to establish democratic functioning as a way of life. Facilitating groups to examine, explore, reinforce, and adopt
processes and practices of democratic functioning such as distributive leadership
and consensual decision-making are critical. These ensure that collectives, groups,
and people in the community can experience the freedom to exercise their right
and choices and bring about change in their self-view.
As these groups matured to take on issues that confront the community, they
organized themselves into clusters and federations. PRADAN did not form all
the groups. When people experienced the potential and the power to bring about
change in their community’s life, SHGs, clusters, and federations took on the task
of stimulating and forming more groups—creating a wave of change around them.
Engaging with Relevant Stakeholders
The environment poor people have inhabited over centuries clearly fosters and sustains poverty. Pervasive inequalities constrain the capacities of people to organize
and claim their space as citizens. Although formal rights have been endowed, citizens still find it difficult to overcome structural inequalities to act on their rights
effectively. Together, the horizontal problem of pernicious social inequality (gender, caste, class, ethnicity, spatial—which undermines the ability to act on rights
and what is mandated) and the vertical problem of state-society relations (characterized by patronage and dependence and limited to electoral roles) are recognized
as essential challenges to make government accountable.
‘Horizontal’ refers to ‘associational life’. While formal rights exist, inequalities
between social categories (gender, caste, ethnicity, and class) limit the abilities
of these social categories to demand their rights and the mandated benefits from
the state effectively. This distorts the playing field and there is wide-ranging
exclusion. Citizens need to recognize themselves and each other as rights-bearing
citizens. They also need to engage with the state, beyond voting and punishing the
incumbents for non-performance the next time around.
‘Vertical’ refers to weak institutionalization, in particular, poor integration
between the state and the citizen. (a) How do citizens engage with the state? Statesociety relations are dominated by patronage and populism, with citizens having
no effective means of holding the government accountable (except during elections) or reducing their status of being dependent clients. In the absence of clear
and rule-bound procedures of engagement, citizens cannot engage with the local
government. (b) Citizens can barely engage with the state, given that the local
government is absent in poorly governed areas, or just weak (low will to work
and ‘rent-seeking’); there are, therefore, very few points of contact with the local
citizens.
A significant step in redressing the above situation is the space for community dialogue, discussion, and action in local governance institutions. Amartya
PRADAN: A Journey of Continuing Relevance
51
Sen (2000), with other theorists of participatory democracy, has argued this case
eloquently. Two key ideas here are
(a) We must not just have democracy; we must also practice democracy.
(b) Democracy is, first and foremost, about how preferences are formed. And the
key to this has to do with the quality and inclusiveness of public discussion.
As women’s SHGs, clusters, and federations discuss matters and take these discussions into the public space and engage directly with relevant local actors (the local
government, the forest department, the police, panchayats, gram sabhas, etc.), they
ensure that they have a say in matters that pertain to them as they ‘get their work
done’. More critical, perhaps, is the change in the norms and values that they bring
to the overall fabric of political and social life.
PRADAN wanted to see community collectives as the centre of the harbingers
of change. The other actors, including PRADAN, were arrayed around these collectives, in order to provide support and strengthen their actions. The imagery is
that of the Oceanic Circles as expounded by Mahatma Gandhi:
Independence begins at the bottom… It follows, therefore, that every village has
to be self-sustained and capable of managing its own affairs… It will be trained
and prepared to perish in the attempt to defend itself against any onslaught from
without… This does not exclude dependence on and willing help from neighbours or
from the world. It will be a free and voluntary play of mutual forces… In this structure
composed of innumerable villages, there will be ever-widening, never ascending
circles. Life will not be a pyramid with the apex sustained by the bottom. But it will
be an oceanic circle whose centre will be the individual. Therefore, the outermost
circumference will not wield power to crush the inner circle but will give strength to
all within and derive its own strength from it.
Appendix: Teaching Notes
Case Summary
This case study traces the history of Professional Assistance for Development
Action (PRADAN). PRADAN’s seminal idea is to attract and inspire educated
youth to contribute to the development of India. PRADAN’s founders, Vijay Mahajan and Deep Joshi, believed that the brightest minds must apply themselves to the
country’s most intractable problem—endemic poverty.
From its beginnings in 1983, PRADAN has grown into a 500-strong organization of university-educated professionals reaching out to over a million families in
India’s poverty-stricken, rural hinterlands. Over the years, PRADAN has helped
nearly 4,000 professionals identify and explore their inner calling and make rural
development a vocation of their choice.
PRADAN works through Self-Help Groups (SHGs) of women that it organizes
and mobilizes. Facilitating and helping these women establish livelihood activities
52
S. Mohanty and A. K. Samal
enhance their economic status and foster a greater sense of well-being. So far,
PRADAN has supported the emergence of more than 82,000 SHGs in India.
This case study has been divided into the formative years; the growth and
expansion years, and the maturing years. Each section describes the nature of the
organization’s investment and energy mobilization and the challenges faced.
Learning Objectives
This case study is developed to inspire a reader to draw insights from PRADAN’s
journey. What may stand out is that any journey, even of an illustrious organization, has its ups and downs, and some challenges must be confronted. The reader
may ponder over the ability of an organization to be proactive in anticipating the
challenges it is likely to face in the future and its ability to adapt to ever-changing
times to keep itself relevant and alive.
The Target Audience
A diverse audience may find it helpful to enter into deliberations on this
longitudinal case study. This may include
●
●
●
●
●
●
●
●
Development policymakers.
Donors and other financial institutions.
Personnel of NGOs.
Personnel from civil society organizations.
Programme/Project planners and implementers.
Rural development executives.
Students studying development practice and management.
Can also be used in OSD courses for BM and HRM students other than
development and RM students.
● Any other stakeholder interested in development and development organizations.
PRADAN: A Journey of Continuing Relevance
53
Case Questions and Suggested Timeframe
The initiation of the discussion may be as open-ended as “What do you see in
this case?” As participants contribute, the teacher may catalogue these on the
whiteboard. After that, the teacher may categorize these issues into organization
structure, funding strategy, change and its ramifications, and any other relevant
category.
Hereafter, the teacher has at least two options: S/he can
● Open the discussion to the entire class, focusing on one category at a time.
● Divide the class into sub-groups, with each sub-group working on one category.
Whichever way the teacher decides to operate, s/he would need to allocate a significant length of time for this segment of the process. Because this case has yet
to be test-taught, it is difficult to suggest a duration for this part; however, at least
an hour, to begin with, may be allocated for discussion in small groups. Through
these small group discussions it may be appropriate to collect the ideas of the
participants into the following categories:
● Diagnosis and identification of problem(s).
● Possible alternative solution(s).
● The group’s recommendation(s).
The total time for the session may be 2 hours.
Case-Wise Analysis/Responses by Authors Along with Relevant
References
Traditionally, organizational life cycle (OLC) research has focused on for-profit
organizations. Life cycle stages provide a diagnostic tool that enables organizational leadership to anticipate challenges and navigate transitions. Though
the characterization of the stages defined in the conceptual models of OLC is
more for private sector organizations and might not apply directly to non-profit
organizations, they also have distinctive characteristics.
A pioneer in the field of development management, Lewis (2006, pp: 1) suggests that their management is a “specialised field that warrants its own text because
it requires new creative thinking that goes beyond existing mainstream business
management or public sector administration science.” There are other researchers
Brown & Korten (1989), Lewis & Kanji, (2020), Mahajan, (1998, 2018), Srivastava & Rajesh (2005), Tandon, (1991) whose research has shown that non-profits
have distinctive characteristics and face particular sets of challenges at different
stages of their life.
54
S. Mohanty and A. K. Samal
Additional Questions
The other pertinent questions that can be asked are
– Where will PRADAN transcend for its continuing relevance?
– Which is the correct path out of the multiple options that will make it sustain
without changing its character entirely?
– What would be the role of the change management team in making the
transition take place?
Additional References
– The readers could also read Dr. John Kotter’s ‘The 8-Step Process for Leading
Change’. The 8-Step Process for Leading Change is an award-winning strategy
by Kotter from Leading Change and has transformed countless organizations.
https://www.kotterinc.com/methodology/8-steps/
– The readers could also refer to different ‘Organization Life Cycle’ theories
(https://www.product-arts.com/attachments/article/1246/Company_EvolutionThe_Organizational_Lifecycle.pdf), as these could provide them with diagnostic tools to understand the current stage of the organization in question, in this
particular case. This may also give them the wherewithal to propose the next
steps and direction the organization needs to take to sustain itself and have
continuing relevance.
References
Brown, D., & Korten, D. (1989). Understanding voluntary organizations. World Bank Working
Paper WPS, 258
Kotter, J., Heart of change. Harvard Business School Publishing.
Lewis, D. (2006). The management of non-governmental development organizationsRoutledge.
https://www.semanticscholar.org/paper/Non-Governmental-Organizations-and-DevelopmentLewis-Kanji/7a7e3a5efada0225e62003ed2ee588ba141a30df
Lewis, D., Kanji, N., & Themudo, N. S. (2020). Non-governmental organizations and developmentRoutledge.
Mahajan, V. (1998). Voluntary action in India: A retrospective and speculations for the 21st Century. Sir Ratan Tata Trust Annual Report, 199.9
Mahajan, V. (2018). A retrospective overview of social action in India: 1817–2017.
Srivastava, S. S., & Tandon, R. (2005). How large is India’s non-profit sector?. Economic an
PoliticalWeekly, 1948–1952.
Srivastava and Rajesh (2005) Published by: Economic and Political Weekly, 40(19), May 7–13.
https://www.jstor.org/stable/4416603
Tandon, R. (1991). Civil society, the state, and roles of NGOs (Vol. 8). Institute for Develoent
Research.
Plantation of Hope: The Turnaround
of Harissons Malayalam Ltd.
Manoranjan Dhal and Surya Prakash Pati
Mr. Sachin Nandgaonkar, President and Sector Head of RPG Enterprises, sipped
tea while planning for the annual board meeting. Although he loves tea, it is his
business as well. Sachin is the Sector Head of the cables, plantation, and life
sciences businesses of the organization. While the electrical and life sciences division operates smoothly, the plantation business, which runs under the aegis of
Harrisons Malayalam Limited (HML), is a matter of worry. HML is recognized
among India’s best companies to work for in 2020 and has secured fourth rank
among India’s traditional industries. Sachin is excited to see HML share honours
with some of the country’s most reputed companies. It is a recognition of the hightrust culture prevalent in the firm. “However, why is HML not making money?”
he asks himself aloud as he shifts through the financial statements.
This case is authored by Manoranjan Dhal and Surya Prakash Pati, members of faculty at Indian
Institute of Management Kozhikode. It is intended to be used as the basis for the class room
discussions rather than to illustrate either the effective or ineffective management situation.
M. Dhal (B)
Professor, Organizational Behaviour and Human Resource Management, Center for Employment
Relations and Labour Studies, Indian Institute of Management Kozhikode, Kozhikode, Kerala,
India
e-mail: manoranjan@iimk.ac.in
S. P. Pati
Associate Professor, Organizational Behaviour and Human Resource Management, Center for
Employment Relations and Labour Studies, Indian Institute of Management Kozhikode,
Kozhikode, Kerala, India
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_4
55
56
1
M. Dhal and S. P. Pati
HML: Company Background
Harrisons Malayalam Limited (HML) is the most successful integrated agricultural
operation in South India. One of the oldest companies in the country with a history that goes back over a 150 years, it has been a pioneer in corporate farming. It
produces tea, rubber, cocoa, coffee, pineapple, and various spices in farmlands that
are spread across 14,000 hectares. The company also cultivates smaller quantities
of a variety of other exotic horticultural crops, such as areca nut, banana, cardamom, coconut, and pepper. It also produces limited amounts of organic tea. The
company’s operation is spread over 20 estates, 8 rubber factories, 12 tea factories,
and several blending and processing units in the three southern states of Kerala,
Karnataka, and Tamil Nadu. As a dominant player in tea exports from South India,
HML is a significant source of quality teas for all the big names in the tea industry
in Europe. HML exports to many countries, mainly the USA, the UK, Germany,
the Netherlands, Spain, Russia, CIS countries, and the Middle East and Africa.
The company is also an industry leader in natural rubber production and is known
for its high-quality natural rubber in the local and export markets.
The first tea plantation of HML began nearly 200 years ago when tea was first
planted on the Western Ghats. Over the next 100 years, tea plantations became
a significant activity transforming the landscape of these mountains. Their slopes
turned into the manicured tea gardens we see today, providing employment and
a reasonable standard of living to the local population. In the early 1900s, these
estates underwent a consolidation exercise. In 1907, Harrisons & Crosfield, tea
traders based out of Liverpool, bought and established Malayalam Plantations
Ltd. The year 1984 witnessed Harrisons & Crossfield merging with Malayalam
Plantations to Indian nationals while renaming the part they held as Harrisons
Malayalam. Approximately 36 years ago, the changing interests of Harrisons &
Crosfield made them divest from the plantation business to a large extent. As
a result, the RPG Group, one of India’s prominent and well-respected business
houses, acquired Harrisons Malayalam. The group is interested in tyres, cables,
power transmission, telecommunications, pharmaceuticals, specialty chemicals,
retail and consumer marketing, hotels, tourism, entertainment, and agri-business.
Listed on the National, Bombay, and Cochin stock exchanges, HML has a paidup capital of INR.184.50 million and a shareholder base of approximately 33,000.
It has a workforce of approximately 19,000 employees, of which 58% are women
(see Exhibit 1 for details on workforce characteristics). However, its financials
could be more encouraging (see Exhibit 2). The company had grown from INR
3665.5 million in 2010–11 to a mere INR 3934.3 million in 2019–20. At the same
time, the labour cost increased during the same period by 58%, i.e., from INR
1045.9 million to INR 1648.1 million. Labour cost is the most noticeable cost in
the plantation industry and the source of competitive advantage. The labour cost as
a share of total income increased from 29% in 2010–11 to 42% in 2019–20. The
profit before interest and taxes (PBIT) has remained negative for several years,
which is a matter of concern for management.
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
57
Despite these worrying numbers, HML continues to win the trust of its employees and the local community. It has undertaken many community development
measures in education, environment, and health (see Exhibit 3). Operating in rural
India, the company has brought economic activity to remote parts of this region
and provided basic amenities, including health care, to a population otherwise
deprived of such support. In a nutshell, it has not swayed away from its core
values,1 which are
●
●
●
●
●
●
Customer sovereignty.
People’s orientation.
Innovation and entrepreneurship.
Transparency and integrity.
Anticipation, speed, and flexibility.
Passion for superior performance.
HML has stood by the local community, be it the landslides in the tea estate or
flood in the locality. The company actively engaged itself in the relief work of the
flood victims in 2018, and along with the RPG group employees, the company created a charity fund of 10 million rupees, of which 50% was donated to the Chief
Minister’s Relief Fund, and the other 50% was used for improving the infrastructure in the locality and paying compensation to the dependents of deceased
community members. To better appreciate the challenges and contributions of
HML, it will be wise to be acquainted with the tea industry in India.
2
The Indian Tea Industry
Tea is one of the three significant nonintoxicating beverages globally, the other two
being coffee and cocoa. China prevailed as the sole tea exporter until the beginning
of the nineteenth century. However, the country’s political fluctuations added to the
accelerating uneasiness between the Chinese and the English traders. This made
the East India Company (EIC) look for other tea-growing areas. India thus stepped
into the tea map of the world. In 1774, a shipload of tea seeds was imported from
China for an experimental plantation in Calcutta (currently known as Kolkata, West
Bengal State, India). However, it was in 1793 that the EIC initiated tea cultivation
in the private botanical garden of Colonel Robert Kyd in Shibpur, Calcutta.
2.1
Industry in Stress
However, the rich history of the industry could not help sustain its competitiveness. The 1990s were unfavourable to the tea industry in India. The dissolution
of the USSR that loyally devoured huge volumes of Indian tea upset many trade
calculations. When the market revived in the mid-1990s, Russians sought cheaper
product options. The tea industry, especially in the South, reacted to such demand
16
% of Women (%)
7
0
43
0
62
1220
79
1030
77
2033
131
1872
28
2
Women
3253
210
2902
105
36
Total
Rubber
48
749
48
653
31
17
Men
682
94
578
9
1
Women
1431
142
1231
40
18
Total
Total
2005
127
1683
120
75
Men
2722
225
2450
38
9
Women
4727
352
4133
158
84
Total
58
64
59
24
11
% Women (%)
Note The table reflects the workers on the company payroll. The company also employs migrant workers (approximately 300–350 numbers)
36
Total
0
0
0
0
Worker
Temporary workers
13
34
6
1
24
12
Executive
Staff
30
Tea
Men
Women
Total
Head office
Men
Exhibit 1 Diversity of the workforce in HML
58
M. Dhal and S. P. Pati
93.83
16.6
104.15
6.49
332.21
115.93
14.91
97.32
6.11
338.86
Raw materials and
Purchases
Power and fuel
Cultivation and other
operating expenses
Depreciation
–
10.45
5.25
PBT@
Total comprehensive
income/(loss)
27.33
17.06
–
341.58
349.49
Cost of sales
PBIT@
9.37
10.63
Selling expenses
111.14
366.55
104.59
Total income
368.91
11-December
Personnel cost
Profit and loss account (in INR)
10-November
–
3.48
18.06
331.87
8.35
323.52
6.76
91.86
19.62
89.07
116.21
349.93
13-December
Exhibit 2 Financial performance of HML (All figures are in ten million)
–
4.86
19.96
366.9
8.85
358.05
6.47
99.81
20.43
107.44
123.9
386.86
13–14
–
−45.68
−35.26
–
320.33
−31.73
355.46
7.1
313.23
5.52
68.78
19.86
78.74
140.33
288.6
15–16
−21.3
10.24
345.22
7.29
89.3
21.31
94.31
133.01
334.36
14–15
0.49
4.09
17.78
357.84
8.66
349.18
5.01
60.08
20.27
118.86
144.96
372.02
16–17
1.33
4.45
16.83
378.33
10.58
367.75
4.16
73.88
22.3
115.01
152.4
392.04
17–18
0.36
−25.13
(continued)
9.28
24.73
368.7
10.84
357.86
4.3
72.36
21.95
94.44
164.81
393.43
19–20
−24.08
−10.56
370.46
10.46
360
4.16
68.01
20.67
114.9
152.27
359.9
18–19
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
59
1.5
Dividend per share of
10/-
18.45
300.53
91.21
105.25
515.44
18.45
299.03
113.28
81.82
512.58
Share capital
Reserves and surplus
Loan funds
Other liabilities
Total liabilities
Source HML Annual Report (2019–20)
515.44
512.58
Total assets
0.21
88.56
0.01
87.05
Investments
426.67
425.52
1.5
2.55
11-December
Other assets
Fixed assets
Balance sheet (in ten million INR)
2.14
10-November
Earnings per share of
10/-
(continued)
530.09
128.49
81.94
301.21
18.45
530.09
96.82
0.21
433.06
0.75
1.24
13-December
541.22
114.18
105.13
303.46
18.45
541.22
109.41
0.21
431.6
1
2.38
13–14
513.08
128.48
97.94
268.21
18.45
513.08
83.29
0.21
429.58
501.11
165.98
94.16
222.52
18.45
501.11
76.36
0.16
424.59
Nil
−24.75
−19.18
Nil
15–16
14–15
360.89
171.81
86.63
84
18.45
360.89
75.74
0.16
284.99
Nil
2.22
16–17
380.64
190.39
86.47
85.33
18.45
380.65
92.51
0.16
287.98
Nil
2.41
17–18
373.06
173.35
121.06
60.2
18.45
373.06
83.25
0.16
289.65
Nil
−13.05
18–19
403.29
210.51
113.77
60.56
18.45
403.29
105.51
0.16
297.62
Nil
5.03
19–20
60
M. Dhal and S. P. Pati
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
61
Exhibit 3 Summary of CSR activities by HML
S. no
CSR themes
Activity
Locations
1
Education
Rakshita—Centre for
Children and Young
Adults with Special
Needs
Arrapetta, Wayanad
No. of beneficiaries
2
Education
Safety and first aid
awareness
Estates in Wayanad,
Thrissur, Idukki,
Pathanamthitta, Kollam
and Nilgiris District,
Kumbazha,
Nagamallay, Wallardie,
Moongalaar,
Pattumalay, Kundai,
and Mooply
1448
3
Education
Summer camp
All Estates in Wayanad,
Thrissur, Idukki,
Pathanamthitta,
Kollam, and Nilgiris
district
600
4
Education
Training and Awareness Wallardie, Moongalaar,
Programme
Wentworth, Mooply,
and Kundai Estates
508
5
Education
Competition for
children conducted on
Independence Day
Mooply and Kundai
6
Education
Employee
Empowerment and
Training Programme
Staff Club Cheramadi
and Goldsland creche
7
Education
Award to meritorious
students
Kumbazha Estate
8
Education
Education kits
Surianalle (Idukki),
Lahai (Pathanamthitta)
and Mayfield (Nilgiris),
and Bhagavathy
Vilasam Higher
Secondary School at
Narayambalam,
Ernakulam
230
9
Environment
World Environment
Day celebrations
All estates in Wayanad,
Thrissur, Idukki,
Pathanamthitta, Kollam
and Nilgiris district,
Moopy Kundai,
Moongalaar, Wallardie
Estates, and
Cherambadi Panchayat
1428
20
36
148
26
(continued)
62
M. Dhal and S. P. Pati
(continued)
S. no
CSR themes
Activity
Locations
10
Environment
Waste management
with the help of local
self-government bodies
All Estates in Wayanad,
Thrissur, Idukki,
Pathanamthitta, Kollam
and Nilgiris district,
Moopy Estates
1370
11
Environment
Rainwater harvesting in All Estates in Wayanad,
estates
Thrissur, Idukki,
Pathanamthitta, Kollam
and Nilgiris district
900
12
Environment
Sustainability
certifications
13
Environment
Sustainable agricultural All tea estates in
practices to small tea
Wayanad, Idukki and
growers
Nilgiris
1800
14
Environment
Water and soil
conservation
All tea estates in
Wayanad, Idukki and
Nilgiris, Kumbazha and
Mundakayam Estates
3400
15
Environment
Dry Day
All tea estates in
Wayanad, Idukki and
Nilgiris
5000
16
Environment
Plastic-free zones
All estates in Wayanad,
Idukki and Nilgiris,
Kumbazha and
Mundakayam Estates
3800
17
Environment
Awareness class
Wallardie, Moongalaar
and Pattumalay, Kundai
Estates
123
18
Environment
Stand for Puthumala
All HML estates in
Wayanad, Thrissur,
Idukki, Pathanamthitta,
Kollam and Nilgiris
district, and Sentinel
Rock Estate
18,567
19
Health
Monsoon diseases/
communicable diseases
awareness campaigns/
Observing Dry Days,
Chicken Guniya
All HML estates in
Wayanad, Thrissur,
Idukki, Pathanamthitta,
Kollam and Nilgiris
district, Mundakayam,
Kumbazha, Mooply,
Kundai, Wentworth
6679
All Estates in Wayanad,
Thrissur, Idukki,
Pathanamthitta, Kollam
and Nilgiris district
No. of beneficiaries
1800
(continued)
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
63
(continued)
S. no
CSR themes
Activity
Locations
20
Health
Medical camps
All estates in Wayanad,
Thrissur, Idukki,
Pathanamthitta, Kollam
and Nilgiris Districts,
Mooply, Kundai,
Mundkayam,
Kumbazha,
Nagamallay, Wallardie,
Moongalaar, and
Pattumallay Estates
No. of beneficiaries
6260
21
Health
Cancer awareness
session
Sentinel Rock/Arrapetta
100
22
Health
Cloth collection
campaign
Head Office—Cochin
150
23
Health
Health campaigns
All HML estates in
Wayanad, Thrissur,
Idukki, Pathanamthitta,
Kollam and Nilgiris
district, Wallardie,
Moongalaar, and
Pattumallay Estates
5060
Source HML Annual Report (2019–20)
by matching the price offered by the Russians. It leads to extensive erosion in
quality and imaging.2
After that, the Tea Board India, responsible for overseeing and regulating
production and trading, stepped in to salvage the situation. It formulated a mediumterm export strategy focused on developing and branding an “Indian tea” logo. It
established standards to assess the reliability and quality of exports while geographically diversifying to new markets. In 2002, the Tea Board implemented the
strategy in 22 markets. It hoped to increase the tea exports to these markets to 280
MKg., which amounted to an increase of 72 MKg. However, exports did not grow
as expected, with significant losses in critical markets such as the Arab Republic
of Egypt, CIS, the UK, and Poland.3 Exports continue to decrease year after year.
For example, exports to CIS decreased by 2.37 MKg. between the financial years
2017–18 and 2018–19. The same period also witnessed a fall in demand for Indian
tea in Egypt by 4.27 MKg. and in Saudi Arabia by 0.22 MKg. Overall, the export
loss between the abovementioned financial years was estimated to be 2.07 MKg
(see Exhibit 5). It is no wonder that while India is the second-largest tea producer
in the world, in terms of exports, it is in a distant fourth position (see Exhibit 6).
Slowly but surely, she needs to catch up to the produce from Kenya, Sri Lanka,
and China.4
However, domestic consumption of tea continues to be the silver lining. Close
to 88% of the total households in India consume tea. The penetration of tea within
December
November
December
Sri Lanka
Uganda
Tanzania
Source The Indian Tea Association
Total (above)
China
December
Malawi
Indonesia
33.9
2316
2232.1
55.7
298.1
48.3
32.2
363.1
94.6
1390.1
2019
28.6
35.5
275.9
45.2
33.2
December
Rwanda
90.7
467.4
December
October
1255.6
2020
Bangladesh
December
India
Kenya
January to
Country
−4.1
−3.9
−15.6
−3.6
−5.3
−83.8
3846.9
33.9
3795.9
33.6
57.9
2616
50.8
2700
−36.3
−20.2
303.8
−7.4
−22.2
50.6
131
28.3
492.6
82.1
1338.6
2018 (January–December)
298
128.8
48.2
−6.4
32.2
0
3.1
458.9
96.1
1390.1
2019 (January–December)
−3.1
1
28.7
−9.7
−134.5
104.3
%
+/−
Exhibit 4 Snapshot of World Tea Production (in million kilograms (MKg))
64
M. Dhal and S. P. Pati
Unit price
(INR/kg)
Unit price
($/kg)
58.53
370.26
1.87
6.38
11.29
1.69
17.96
Ireland
Poland
USA
Canada
UAE
Iran
111.17
111.70
14.20
4.28
8.42
0.56
3.46
Egypt (ARE)
Afghanistan
Bangladesh
45.64
1076.56
41.02
Saudi Arabia
362.16
113.10
96.97
301.97
9.96
Germany
137.99
323.79
3.83
United
Kingdom
994.69
Netherlands
14.64
Total CIS
33.61
1.69
60.72
Other CIS
193.19
51.05
716.84
10.28
3.38
45.37
6.53
2.03
15.97
15.90
153.95
52.95
8.37
51.79
16.17
13.87
43.18
19.73
46.30
142.24
4.81
27.63
7.30
102.51
131.76
255.12
132.65
259.83
262.47
206.18
345.68
320.68
177.18
517.98
303.21
360.46
221.14
163.82
198.88
188.02
151.08
157.99
1.88
3.65
1.90
3.72
3.75
2.95
4.94
4.59
2.53
7.41
4.34
5.15
3.16
2.34
2.84
2.69
2.16
2.26
0.46
0.95
12.69
4.50
31.19
21.63
2.50
13.23
6.25
2.65
10.42
4.26
16.07
63.09
1.50
9.74
3.75
48.10
2017–18
Value
(Million
U$)
Qty
(MKgs.)
Value (Cr.
INR.)
2018–19
Qty
(m · Kgs)
Kazakhstan
Ukraine
Russian Fed
Country name
Exhibit 5 Major country-wide exports during 2018–19
5.86
16.95
174.40
106.51
778.61
427.47
67.47
363.27
96.79
102.17
246.20
99.85
324.19
1039.75
29.19
177.15
56.24
777.17
Value (Cr.
INR.)
0.91
2.63
27.06
16.53
120.82
66.33
10.47
56.37
15.02
15.85
38.20
15.49
50.30
161.34
4.53
27.49
8.73
120.59
Value
(Million
US$)
127.39
178.42
137.43
236.69
249.63
197.63
269.88
274.58
154.86
385.55
236.28
234.39
201.74
164.80
194.60
181.88
149.97
161.57
Unit price
(INR/kg)
(continued)
1.98
2.77
2.13
3.67
3.87
3.07
4.19
4.26
2.40
5.98
3.67
3.64
3.13
2.56
3.02
2.82
2.33
2.51
Unit price
($/kg)
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
65
14.59
2.43
32.25
Pakistan
Australia
Other
countries
Source The Tea Board India
254.50
148.46
3.73
Japan
Total
2.44
154.11
0.11
Kenya
5506.84
726.39
91.88
55.62
3.55
Sri Lanka
29.02
180.19
Value (Cr.
INR.)
1.18
10.58
Qty
(m · Kgs)
2018–19
Singapore
China
Country name
(continued)
787.50
103.88
13.14
21.23
22.04
0.35
7.95
4.15
25.77
Value
(Million
U$)
216.38
225.24
378.76
101.73
412.72
229.58
156.70
246.69
170.26
Unit price
(INR/kg)
3.09
3.22
5.42
1.45
5.90
3.28
2.24
3.53
2.43
Unit price
($/kg)
256.57
29.70
2.55
16.09
3.70
1.05
4.08
0.51
9.00
Qty
(MKgs.)
2017–18
5064.88
592.96
90.90
147.94
147.80
15.43
52.11
14.17
154.08
Value (Cr.
INR.)
785.92
92.01
14.11
22.96
22.93
2.39
8.09
2.20
23.91
Value
(Million
US$)
197.41
199.65
356.47
91.95
399.46
146.95
127.72
277.84
171.20
Unit price
(INR/kg)
3.06
3.10
5.53
1.43
6.20
2.28
1.98
4.31
2.66
Unit price
($/kg)
66
M. Dhal and S. P. Pati
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
67
Exhibit 6 India’s standing in world tea exports
Production (in MKg)
World
India
India’s share (%)
Global position
5490
1267
23
2nd
Consumption (in MKg)
5168
985
19
2nd
Exports (in MKg)
1774
217
12
4th
Source The Indian Tea Association (2017)
Exhibit 7 Break-up of the wage of a tea worker in Assam
S. no.
Components of wage of daily rated workers
1 January 2017–31 December 2017
1a
Cash wage
137
1b
Additional compensation/incentives
6
Subtotal of 1a and 1b
143
Non-statutory benefits
2a
Concessional food grains
14.2
2b
Firewood
5.74
2c
Tea
3.66
Subtotal of 2a, 2b, and 2c
Subtotal of 1 and 2
23.6
166.6
Benefits under Plantation Labour Act and Agreements
3a
Medical facilities
16.75
3b
Housing facilities
15.22
3c
Education facilities
3d
Welfare facilities
3e
Leave with wages and festival holiday
Subtotal of 3a, 3b, 3c, 3d, and 3e
Subtotal of 1, 2, and 3
2.83
5.6
14.95
55.35
221.95
Statutory benefits
4a
Bonus (deferred wage @ 20%)
4b
Provident fund
4c
Gratuity
10.67
Subtotal of 4a, 4b, and 4c
62.92
Subtotal of 1, 2, 3, and 4
284.87
31.59
20.66
a family is approximately 96%. Overall, 64% of India’s total population is a teadrinking population, with no difference in its consumption across socio-economic
classes. A certain proportion of the population considers tea to be an “anytime
drink.” It has led many small regional brands to mushroom in the market, contributing to the oversupply of the product. As an illustration, in 2017, the Indian
68
M. Dhal and S. P. Pati
Tea Association estimated an excess supply of 100 MKg of tea.5 Prices have therefore remained static over the years,6 with tea of questionable quality dispersed in
the market. It is of little surprise that 21% of the households reported having
switched brands over the last 5 years.7
Therefore, many important players, such as Tata Tea and Hindustan Unilever
(HUL), have exited from tea plantations to focus on branded teas. One of the
most notable exits was the transfer of assets and liabilities of 17 tea estates in
Munnar (Kerala), the regional office, and related service departments to a new
company formed by past company employees in 2005. Named the Kannan Devan
Hills Plantations Company Private Limited (KDHP), the company is touted as the
future of plantation management in India. Approximately 13,000 employees of
tea plantations are part of the new company’s shareholders, with 97% of them
contributing to roughly 68% of its equity. The Tatas argue that it is a win–win situation. While employees will no longer experience the threat of extinction, the
company will remain free from the enormous social security obligations and the
confrontational employee-employer relationship. It will also be open to source the
best quality leaves from anywhere. Similarly, in 2005, HUL transferred 100% of
Doom Dooma Tea Company Limited to McLeod Russel India Limited (MRIL).
It involved the sale of tea planted over 3100 hectares in three factories and 6100
people.8
2.2
Unhappy Workers
With the departure of corporations, the plantation owners found it increasingly
difficult to meet the workers’ expectations. Accordingly, the quality of life and the
sustainability of the workers’ livelihood have been stressed for a long time. It is no
wonder that trade union activity within plantations has increased in recent years.
Trade unions in the tea industry became a reality only after independence (i.e.,
August 1947). However, the union’s presence and relative strength differed across
states. In West Bengal, the various unions have forged a common front to highlight
common industry-wide issues. The Coordination Committee of Tea Plant Workers
(CCTPW) and Committee for Defense of Plantation Workers’ Rights (CDPWR)
actively raise the workers’ concerns.9 However, since these unions are affiliated
with different political parties,10 there is a high likelihood that individual political
interests often take precedence over workers’ concerns. The story is not very different in the tea plantations of southern India. The unions there are affiliated not
just with the national-level political parties but also with the regional parties.11
Principally, workers suffer from three specific concerns. First, they are acutely
distressed by their wages. The wages of tea industry workers are among the lowest
in the country.12 Additionally, wages must be more consistent between the northern and southern parts of the nation. For example, in 2016, tea workers in Kerala
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
69
were guaranteed a minimum wage of INR 153.83 per day, apart from other incentives.13 It is set to increase to INR. 182.4114 per day.1 However, the tea workers in
Assam Valley received just INR 143 per day in 2017.15 Furthermore, there needs
to be more clarity on how employers and workers define wages. The employers
insist that all the benefits enjoyed by the workers, such as housing, medical facilities, firewood, and concessional food grains, be considered wages (see Exhibit 7
for a complete breakup of cost to company for a plantation worker). This is different from the Code of Wages (2019), which defines wages as basic pay, dearness
allowance, and retaining allowance.16
Second, tea gardens are argued to be islands of poverty and exploitation that
have scant respect for workers’ health. The majority of the plantation houses are
broken and have not seen a repair for a long time. Workers complain of leaking
and occasionally falling roofs, broken windows and doors, and unusable toilets.
Coupled with low wages, pitiful and unhygienic living conditions affect the general physical and psychological health of workers. Almost everybody in the estate
is anaemic, with many unable to work for the entire 26 days in a month. This further affects their earnings.17 Exposure to pesticides is another hazard that is often
not considered. For example, in May 2010, one plantation worker, Gopal Tanti,
dropped dead while spraying pesticide on a Tata-owned plantation in Assam. The
manager kicked the body to check if the person did indeed die, fueling protests
and riots by the workers. Two more young workers died in the police firing that
ensued, while many were injured.18
Third, the workers are perturbed by the heavy workload expected from them.
While many workers migrate elsewhere for better wages, others frequently fall
ill, diminishing the labour supply in the estate. Consequently, many workers feel
the pressure to work long hours. Most tea-pluckers, the only work women are
engaged in, work from 8 AM to 5 PM. The lunch break ranges between 10 min
and half an hour. Tea plucking is the most strenuous and the least paid in the industry. Factory workers generally work a 12-h shift. To ensure that workers confirm
their high demands, labour-management is excessively authoritarian. Questions are
discouraged, and people find themselves dismissed for minor infractions.19
3
HML: An Outlier
Against the above background, HML decided to participate in the Great Place
to Work (GPW) survey to obtain feedback from the employees and benchmark
itself against the competition. A great place to work is considered the “gold standard” in workplace culture assessment and recognition. In their first participation in
2014, HML secured a respectable 81st position among all the participating organizations from India. It helped the company gain a favourable perception from
1
However HML used to pay INR. 301 as guaranteed pay which was set to increase to INR. 410
70
M. Dhal and S. P. Pati
external stakeholders while ascertaining the good practices they should carry forward. Participation in GPW also strengthened the communication process between
the management and the employees. HML continued participating every other year,
and the rank improved on every occasion. For 2020–21, HML secured the 4th
rank. The organization was also adjudged as the best workplace for women in
India in 2020. HML has excelled in all five indicators that measure the high-trust
high-performance culture: credibility, pride, and camaraderie. The GPTW survey
remarks that the company “provides multiple avenues of developing its employees,
which highlights the company fostering a culture of continuous learning.”
With plantations across the country in despair, how did HML manage to stand
tall for its employees? What is the secret behind this triumph?
4
HML: A Great Place To Work
Although sceptical of the GPTW findings, Sachin opted to have a discussion with
HML’s top management. He hoped to learn the underlying secret behind this
result. He contemplated if this could be scaled up for all the companies under
his leadership.
Accordingly, he flew down to Kerala and sat in a closed-door meeting with
Mr. Cherian George (CEO and Whole Time Director of HML) and Mr. N. S.
Vinodkumar, the Head of New Business and Human Resources (HR) of HML.
Listed below is his learning.
4.1
Culture
According to Sachin, “listening” is the core principle that guides HML’s culture.
He attributes it partly to the nature of the industry. Plantations are a kind of isolated
place. The estate head and the worker live on the same premises, deep within the
forests, with many other individuals sourced from every possible stratum of society. They live and breathe together, accustomed to the ups and downs in life. Such
an arrangement has existed for decades, which has made the workers feel like part
of a large joint family. It is camaraderie in a system by design. Everybody stands
by each other through thick and thin. Unsurprisingly, a few workers raised a hue
and cry when the company delayed their wages during the COVID-19 pandemic.
An estate manager is expected to lead the work inside the factory and within
the community. Sachin asserts that it is a 24/7 job. He needs to be connected
to the families staying inside the estate and intervene in any untoward incident,
for example, a wild animal entering the estate or a fight within a family. Most
managers would know at least 50–60% of the employees’ names. Some would
even know what their child does. When a child of an employee graduates, the
company celebrates them. Managers also attend weddings and are a regular sight
at funeral ceremonies.
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
71
The spirit of listening has made employees and workers face more gigantic
catastrophes. Be it the rescue operation during the Kerala floods and landslides
of 2019 or the prevailing pandemic, workers express no hesitation in reaching out
to each other and the local communities, irrespective of caste, creed, or economic
status. When the COVID survivors returned to work, there were celebrations even
though nine of them had lost their lives. When a driver committed suicide in the
estate, even the police refused to touch the body, fearing COVID. The manager put
on protective gear and completed the necessary legal and ceremonial requirements.
Listening deepens the relationship and helps bring people together. It also explains
why workers risk their lives protecting the estate’s land from being encroached on
by the locals.
Listening has its ugly side too. When workers have problems, the managers
allow them to protest instead of suppressing them. This has led to the loss of
scores of man-days. However, there are few such instances.
In tune with the spirit of listening, the management created the Joint Labour
Management Council (JLMC) to tide over such strikes.
4.1.1 Joint Management Labour Council
Vinod recalls that when he joined in 1998, it was difficult for a worker to meet a
manager. However, the culture has changed since then. Now, any worker can go
to the manager’s office and meet with a prior appointment.
As elaborated earlier, the liberalization policy of the Indian government in 1991
opened many challenges for the plantation industry. The competitive environment
resulted in lots of inward reflection within the organization. This propelled the
management to initiate a “Joint Labour Management Council” (JLMC), although
there was a “works committee” earlier. It is a forum with representatives from
workers, supervisors, staff, and the manager. Its presence is found in every factory
and division.
The JLMC committee constitutes 10% of the total worker population. It represents various layers of the workers, who are also influential among the workforce
as opinion-makers. Some of the members are also representatives of the union.
One of the exciting aspects is that women workers constitute 60% of JLMC.
JLMC has made it relatively effortless to pass messages to the larger worker
body without distortion (see Exhibit 8 for the functioning of JLMC). It meets
once every month and acts as an able intermediary between the workers and the
management. It is a direct communication channel where communication happens
in two ways: top-down and bottom-up. The JLMC is reconstituted every year. In
a nutshell, approximately 45 JLMC meetings are conducted monthly across the
seven tea and six rubber estates spread across Kerala.
Vinod feels that one of the significant achievements of JLMC is that it empowers women. Although women are the most prominent worker category, their voices
have yet to be found through the traditional male-dominated unions. JLMC filled
this gap and brought forth their concerns to light. It has also contributed to a
change in the mindset of the workers. They have become more accommodating of
decisions and inclusive of each other.
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M. Dhal and S. P. Pati
It is not to say that JLMC was initially welcomed with open arms by the workers. The trade unions perceived it as a threat to their power. They did not allow
the workers to interact with the manager directly. It was believed that the JLMC
was formed to marginalize them. However, the management insisted that the trade
unions be part of JLMC. Slowly but surely, in a span of a year and half, the JLMC
found acceptance with the unions.
Vinod recollects one of the benefits of JLMC after the 2019 Kerala floods.
When workers demanded more earnings, they were presented with facts about the
company’s poor financial health. They offered to stretch and increase their productivity to earn extra incentives. Such a decision significantly resolved the workforce
shortage in the estates. Production doubled in no time. Even the incentive plan
was designed in consultation with the workers. Such discussion never happens in
a collective bargaining scenario, where maximizing one’s gain becomes the sole
objective.
JLMC provides a platform where everyone can share their thoughts freely, irrespective of the hierarchy. It is an opportunity for all to practice the art of listening.
Vinod asserts that one might not agree to all the demands, but sitting together and
sharing a word, with tea and snacks, brings a sense of closeness and confidence.
He summarizes it as follows: “When you start to listen, you begin interacting. This
reveals the underlying concerns and not the superficial problems. Soon they come
up with solutions. All they need is an ear.”
Apart from JLMC, there is also a monthly meeting with the trade unions in
each area. There is also a weekly production meeting with the workers. HML
follows an open-door policy, and people with designated names, contact numbers,
and designations are always available for a conversation.
4.2
HRM Practices
HML has an average attrition rate of 10–12%. However, in 2017, the attrition
rate was 18%, arguably the highest in its recent history. HML prefers to hire
from something other than reputed universities and institutions. Instead, it creates opportunities for internal people. The RPG Group is committed to the policy
of job rotation. They recruit their talents laterally by giving internal employees a
chance. They place them on a long-term, mentor-supported cross-functional, and
cultural grooming. Approximately 50% of managerial cadres are promoted from
within. For example, the current CEO, Mr. Cherian M. George, has been with the
organization for 26 years. He began his career with HML in operations. The previous CEO was with HML for 42 years. Even Vinod commenced his career in
operations and made a role change only after 19 years. The intention is clear: to
have leaders with not only business roundness but also the people, as the industry
is labour-intensive.
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
73
4.2.1 Hiring
The philosophy of giving the first chance to internal people is also extended to the
workers and staff. The immediate family members (such as son, daughter, brother,
sister, husband, and wife) of existing workers below the age of 35 years are given
first preference in the case of an available position. Vinodkumar reasons that doing
so helps HML maintain its culture. These people have stayed on the estate for
many years and are, therefore, conversant with the desired values of the place.
Whenever a worker’s family member expresses interest in working, the company
hires them as temporary workers. If their attendance and physical fitness are found
to be satisfactory, they are regularized. Advertisements of available positions are
communicated on estate noticeboards. Attempts are made to fill up the positions
in a month.
HML extends second priority in hiring the people of the nearby locality through
acquaintances, while third preference is given to the migrant workers. The migrants
are mainly from the states of Assam, Jharkhand, and Madhya Pradesh. They are
hired based on referral, with experienced migrant workers encouraged to bring
people from their native villages as they know the environment and culture of
HML. The company sponsors such “hiring trips”. The company adopts a careful
police verification process before enrolling migrant workers.
The least preferred method for hiring workers is through an agency, although
only some are recruited this way. There is no qualification specified, but skill is
preferred as a standard. All the candidates had to undergo an interview with the
Divisional Manager and a medical test. Almost 75% of the temporary workers
become permanent within a year, and others lose out mostly because they are
irregular or due to health reasons.
As a plantation company that demands physical work, HML strives to maintain
good diversity and does not shy away from hiring people with differences. Such
employees are suitably placed in departments such as testing or quality where their
competency can be put to the best use. Despite all the measures, HML faces an
acute shortage of labour owing to its location.
The recruitment process for staff and executives is prominent. The company
will only recruit people who understand and like a tea estate environment. People
who like a hill station, who want to be solitary, are comfortable in less populated
environments, e.g., being alone, want to avoid frequently going to a shopping mall
or movies, are typically preferred. A basic aptitude test is in place, which is preferred over academic brilliance, but interested individuals must be undergraduates
with good physical endurance ability.
Even though the company prefers people from an academic background in
forestry or agriculture, potential hires must demonstrate their inclination towards
an outdoor life and be natural in building relationships. The hiring process is multiphased. The candidate is customarily made to stay with a manager to evaluate his
ability to make a personal connection. Managers also appraise how the candidate
carries himself during the interaction and behaves with the lady of the house.
The next day, the candidate is asked to visit the Division Muster office early in
the morning. After spending time there, he is made to go around the workplaces,
74
M. Dhal and S. P. Pati
estates, and factories. He is asked to note his observations and submit a report
on his findings. The organization evaluates whether the report mentions only agriculture or whether the candidate has an eye to discover welfare measures, people,
and problems (e.g., water supply). How many people did he interact with, and how
many people wanted to interact with him?
After this, the estate manager escorts him to the club in the evening, where he is
exposed to the planters’ evening social life. All the time, his etiquette is observed
and tested. The candidate is purposely told about all the possible negatives and
hardships cupped in the job (for example, long periods of isolation inside the
forests and encounters with wild animals, particularly elephants). It is done to limit
future attrition while giving them the reality of the workplace. Many employees
are hired through the referral scheme.
Vinod asserts that hiring is strictly based on competencies. Recently, the company hired two young girls as welfare officers. Apart from the Master’s degree in
social work, riding a bullet (motorcycle) was an additional requirement. It is the
only vehicle through which they can easily commute the rain-washed hilly terrain.
The girls outperformed the men. Since then, the company has decided to recruit
only women as welfare officers, owing to the large number of women labourers
working in the estate.
4.2.2 Compensation and Benefits
HML’s salary and emoluments, unlike other businesses, are comprised of salary,
variable pay, and perks. Executives are accommodated in a large bungalow in
the middle of the tea gardens. It provides them with a motorcycle/jeep and fuel.
Household help is made available. Schools and hospitals are present for families,
and children’s education is sponsored. Finally, every employee and worker in the
estate is insured, while executives have a superannuation scheme.
All employees, including workers, are entitled to gratuity and maternity benefits. They are entitled to get 1 day of earned leave for every 20 days of work.
Usually, people like to accumulate their leaves and utilize them in aggregate as
vacations or visit their native places.
The workers are entitled to 13 paid leaves annually and are eligible for the
statutory bonus. The worker and the employer also contribute to the Kerala Labour
Welfare Fund. HML has hospitals to take care of employee health. The company
also reimburses expenses when its employees and workers are referred to other
hospitals for better/specialized treatment. If admitted to a hospital, the worker is
paid two-thirds of his wage for up to 45 days. On some occasions, HML has
allowed attendants on paid wages to care for the hospitalized employee.
The workers are covered under the Plantation Labour Act 1951, and they
enjoyed every benefit assured by the legislation. The labour housing provided
by the company is well equipped with a water and electricity supply with regular testing and chlorination of water every 6 months. The other benefits provided
to workers include overtime allowance, night shift allowance, crèche facilities,
uniform, sleeping blankets, etc.
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
4.3
75
Employee Relations
Trade unionism is prevalent in HML and plays a vital role in shaping employee
relations in the organization. HML has a total of 35 trade unions across states.
Most of them are affiliated with central trade unions such as AITUC, INTUC,
CITU, and Bharatiya Mazdoor Sangh (BMS). The Idduki Estate has 12 unions,
the Wayanad Estate has 6 unions, and the Thrissur Estate has 5 unions. Kerala,
being a politically active province with a rich history of communist influence, has
provided fertile ground for many unions affiliated with many political parties to
mushroom.
At the turn of the twentieth century, there was much disgruntlement in the
management of unions in HML. Political interference only increased the chaos. It
resulted in many violent meetings, gheraos20 and assaults, with people breaking
into offices. These incidents would reach their peak coinciding with the assembly
elections in the state. The inauguration of JLMC has assisted in establishing a
direct communication channel, which helped reduce these disputes. As a result,
there was a significant reduction witnessed after 2000.
However, despite such measures, workers are always open to external manipulation, which could disturb industrial peace. One such incident occurred in 2016
when HML declared that it would pay a minimum statutory bonus of 8.33%, owing
to the losses it encountered. Although many employees accepted the bonus, the
majority union affiliated with CITU called for a strike. With assembly elections
around the corner and the trade union secretary being a prospective candidate
for the Legislative Assembly, the situation provided an opportunity to fuel worker
unrest to gain political mileage. The union members prevented the willing workers
from entering the factory, leading to the shutdown of operation. The management
resisted strongly and argued that even if they agree to pay more, they would
not be able to, because there is no money left. While the agitation lasted for
23 days (March 1–23, 2016), the silver lining was that the strike was confined
only to the Wayanad Estate. There were no notable instances of violence, barring
a few incidents of the offices and a few managerial residences being stoned. The
union demanded an additional ex gratia payment of INR 2000 beyond the eligible statutory bonus of 8.33%. The strike ended with intervention from the District
Collector. The management agreed to pay INR 1000 as a recoverable advance.
Looking back, the company pegs the total loss from this incident at INR 180 million. Also, encasing the incident, the union secretary won the election and became
a Legislative Assembly (MLA) member.
It must be said here that the wage for the plantation is fixed by a tripartite
“Plantation Labour Committee” and reviewed once every 3 years. The workers
are paid incentives based on the kilogram of output. To obtain the basic wage, one
worker must collect at least 27 kg of tea leaves. The incentive pattern is as follows:
for the first 14 kg, the worker would be paid 80 paise per kg; for the next 14 kg,
they are eligible to receive INR 1.10 per kg; and beyond that, they would be paid
INR 1.50 per kg. The company needs to make more profit to pay bonuses and has
76
M. Dhal and S. P. Pati
continued to pay the lowest guaranteed minimum statutory bonus of 8.33%. It was
in 2012 that HML paid a 16% bonus to the workers.
Nevertheless, most workers are very accommodating. They know that the managers have only their best interests in mind. For example, the plantation industry is
hit by extreme weather conditions. Tea leaf collection cannot occur during heavy
rain periods. In such times, the salaries of the executives are delayed by a month
or two. This helps the company to tend to the workers. Most recently, during the
pandemic-induced lockdown (April–July 2020), most of the managerial staff took
a salary roll-back and kept the cash flow healthy to pay the workers’ wages. Later,
when the situation improved, the company returned all the rolled-back amount.
5
The Road Ahead
Cherian and Vinod wanted to discuss the plan for the next financial year with
Sachin. They were visibly elated. After the disastrous financial year of 2018–19,
HML logged in a respectable profit of 36 lakhs. Coincidentally, it also secured
the fourth rank in the GPW survey. They believed that the workplace culture
and the HRM practices have contributed to this turnaround. Cherian expressed
his confidence that the road ahead would be only smoother, with many accolades
to be gathered on the way. However, Sachin’s observation is less than enthusiastic.
“Look at your numbers,” he had cautioned.
In summary, although there is a 30% increase in productivity, the labour and
operational costs are also rising. The RPG Group is worth INR 250 billion, of
which HML is just INR 2 billion. Will it be a good business decision for RPG
Group to do away with HML? Finally, there is a strong possibility that the culture
of HML is such because of its geographical context. Isolated terrain limits people’s choices, forcing them to stay together. This looks like a forced camaraderie,
not very unreal, but not sustainable either. Great culture must lead to continuous
profitability. HML looks far away from it. Is the road ahead for HML hazy as the
mist that covers its tea estates? Sachin wonders.
5.1
Classroom Questions
1. Why is HML not making money?
2. Without profit, what makes a company a great place to work? Do you think
HML could sustain its position in the future great place to Work surveys?
3. Will any strategy to enhance the profitability of HML be implementable in the
“good” workplace?
Exhibit 8 The Functioning of JLMC
JLMC: Meeting Format
The meetings begin with a review of the previous minutes of meeting.
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
77
KPI—Budget and Achievement
The first agenda of JLMC is usually the analysis of the production and productivity
of the division. An analysis of the planned activities versus the achieved outcomes
is undertaken. A comparison with other divisions and our competing estates and
the action plan on agriculture operations and harvesting will also be discussed in
JLMC.
Safety
JLMCs play a vital role in safety aspects. A detailed analysis of accidents is
performed, and proactive measures and guidelines are implemented based on
the suggestions in JLMC. Near misses are captured and discussed in detail, and
corrective actions are planned.
Idea Generation
JLMC platforms are “Kaizen factories.” Ideas and improvements on various
processes and procedures are solicited in JLMC forums.
Wellness Session
JLMCs are also considered to be lifestyle and wellness platforms. JLMC members
are the key drivers of our sustainability. Various programs, such as training on
banking operations and positive behavioural videos, are conducted for JLMC members and other workers with governmental and other nongovernmental agencies’
help.
Absenteeism Control
Absenteeism is also controlled through the effective intervention of JLMC members. They undertake house visits and group counselling to reduce absenteeism.
Employee Engagement Activities
Employee engagement activities in estates are organized and coordinated by the
JLMCs of the respective divisions. This ensures maximum employee participation
in various activities.
Grievance Redressal
JLMC is the platform where worker representatives can raise their grievances.
These grievance points are documented, and follow-up efforts are taken to resolve
the issues. This leads to proactive and harmonious labour relations, which in turn
improves the working climate.
Welfare and Health Expenditure
Welfare expenses such as housing, water supply, medical cost, and other social
costs are shared and reviewed in JLMC meetings. The committee also prioritizes
and formalizes the renovation of houses and other maintenance works in the estate.
78
M. Dhal and S. P. Pati
Socio-economic Environment
All the new government scheme implementations, such as Aadhaar seeding/PFUAN updating and new banking updating, are discussed and successfully driven
in this session.
Workers’ Benefits, Rewards, and Recognitions
Under this session, the management informs the main organizational announcements to the workers. The reward and recognition of the workers, e.g., the highest
plucker of the division or the retirement recognitions, are also conducted in the
meeting.
All the above-described points are regularly discussed in every JLMC meeting.
All the JLMC meetings are correctly documented, and the minutes of the
meeting are displayed on the notice board.
End Notes
1. Core values of HML were accessed at https://harrisonsmalayalam.com/code-ofconduct/, on 15th Feb., 2021.
2. V. N. Asopa (2007), Tea Industry of India: The Cup that Cheers has Tears, W.
P. No. 2007–07-02, Indian Institute of Management, Ahmedabad (India).
3. V. N. Asopa (2007).
4. V. N. Asopa (2007).
5. Indian Tea Association (2017), Submissions on the Code on Wages, 2017, Indian
Tea Association: Kolkata.
6. Indian Tea Association (2017).
7. The Tea Board India (2019), Executive Summary of Study on Domestic Consumption of Tea in India. The Tea Board India: Kolkata (accessed at http://tea
board.gov.in/TEABOARDPAGE/MjA= on 5th Feb. 2021).
8. Saji M. Kadavil (2007), Indian Tea Research, The Tea Board of India:
Kolkata [accessed from https://www.somo.nl/nl/wp-content/uploads/sites/2/
2007/01/Indian-Tea-Research.pdf at 8th Feb, 2021].
9. Sujata Gothoskar (2012), This Chay is Bitter: Exploitative Relations in the Tea
Industry, Economic and Political Weekly, Vol. 47, N0. 50, pp. 33–40.
10. Sujata Gothoskar (2012) writes that the CCTPW comprises of unions that are
affiliated to Center of Indian Trade Unions (CITU, affiliated to the Communist
Party of India, Marxist), The Indian National Trade Union Congress (INTUC,
affiliated to the Indian National Congress), the All India Trade Union Congress
(AITUC, affiliated to the Communist Party of India), the Hind Mazdoor Kisan
Panchayat (HMKP), and the United Trade Union Congress (UTUC, affiliated to
Revolutionary Socialist Party). Similarly, the CDPWR is populated with unions
affiliated to the Indian National Congress party and the Janata Dal. Recently,
two new unions—the Gorkha Jan Mukti Morcha and Progressive Tea Workers’
Union—have also emerged in the Industrial relations landscape of West Bengal
plantation industry.
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
79
11. Sujata Gothoskar (2012) suggests that the trade unions in Southern India are
affiliated to the Indian National Congress, Communist Party of India, Marxist,
Communist Party of India, Dravida Munnetra Kazhagam, and All India Dravida
Munnetra Kazhagam.
12. Sujata Gothoskar (2012).
13. Government of Kerala (2016), Labour and Skills (E) Department, G.O. (P) No.
76/2016/LBR dated 17th May, 2016.
14. Government of Kerala (2020), Labour and Skills (E) Department, G.O. (P) No.
LBRD-E1/5/2020-LBRD, dated 23rd Jan., 2020.
15. Indian Tea Association (2017).
16. The Gazette of India, Ministry of Law and Justice, The Code on Wages, 2019,
published on 8th Aug., 2019.
17. Sujata Gothoskar (2012).
18. Sujata Gothoskar, Ashwini Sukthankar and Jasper Goss (2010), In cold blood:
Death by poison, death by bullets, The International Union of Foodworkers
(IUF) [retrieved from http://sanhati.com/wp-content/uploads/2010/10/tata-tea_
ff-report.pdf on 11th Feb., 2021].
19. Sujata Gothoskar (2012).
20. Confining the managerial people to a space or a room surrounded by agitators,
denying the basic amenities such as food, water or access to washroom and
forcing them to concede to the demand.
Appendix: Teaching Notes
Case Synopsis
The case describes the culture and HRM practices prevalent in Harrisons Malayalam Limited (HML), a company engaged in tea plantations in the Western Ghats
of India, with a legacy stretching to two centuries. Currently, HML is owned by
the RPG Enterprises.
In 2020, HML secured the fourth position among the Indian corporations in
the Great Place to Work (GPW) survey. Surprisingly, this recognition of an excellent culture only translates to good financials. The company has registered only
a 7% growth in revenue in a decade and is inconsistent in reporting profits.
Accordingly, we write this case after several hours of discussion with Mr. Sachin
Nandgaonkar (President and Group CEO of RPG Enterprises), Mr. Cherian George
(CEO and Whole Time Director of HML), and Mr. N. S. Vinodkumar, the Head
of New Business and Human Resources (H.R.) of HML in understanding this
intriguing phenomenon. In summary, we wonder if “good culture” is an overstated
phenomenon.
We discuss this case from two theoretical perspectives: The Knowledge-Based
View of a Firm (Kaplan, Schenkel, von Krogh & Weber, 2001) and Kelly’s (1998)
Mobilization Theory of Industrial relations. These help the students appreciate the
organization’s status and predict the possible outcomes if any changes are made.
80
M. Dhal and S. P. Pati
The case promises to serve as a critical tool in questioning many practices that
employees and management feel as artefacts of an excellent organizational culture.
Case Positioning and Setting
Firm competitiveness, Industrial relations, Human resource management.
Case Questions
I. Why is HML not Making Money?
First, the instructor must ask the students to discuss the firm’s financial health for
the last 10 years. We compute here only for the Financial Year 2019–20, providing
the formulae for the benefit of the students (Table 1).
It is apparent that the company is struggling to stay afloat.
Furthermore, we calculated the cash flow for 2019–20 (Table 2).
The cash flow of HML is positive only when it borrows or does not invest in
increasing its assets. It also means that either (1) its workforce is far away from
producing enough to increase the net income or (2) it cannot command a reasonable price for its produce. In summary, HML’s workforce is hardly contributing to
its business.
The Industry Scenario
Presently, Kenya, Sri Lanka, and China dominate the tea market in terms of
exports. At the same time, Indian tea (which includes HML) is primarily sold
to the price-sensitive domestic market. HML needs a good differentiation in its
offerings and raise its quality to compete. What is stopping it from doing so?
The Knowledge-Based View of the Firm
The knowledge-based view of the firm conceptualizes it as a knowledge-processing
institution with knowledge as its leading strategy. Scholars argue that firms superior in accessing, integrating, and deploying knowledge turn to being successful
competitively. Doing so requires complex strategic design and implementation
instead of replicating successful domestic strategies (Grant & Phene, 2021).
However, knowledge is not usually directly observable or measurable. While
some of it is explicit, such as technology, information, and routine (Grant &
Phene, 2021), much of it is tacit, such as managerial skills, beliefs, and culture. Tacit knowledge usually holds the source of competitive advantage and is
not fully convertible to explicit knowledge. Instead, its existence and properties
can be inferred through firm capabilities that are manifested in observable action
(Kaplan et al.2001). Six different types of firm capabilities are identified in the
literature, which Kaplan et al. (2001) have placed in dyads: creation (capacity to
combine knowledge with knowledge or resources to create valuable output) and
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
81
Table 1 Financial health of HML (Financial year 2019–20)
S. no Financial health parameters Formula/metric
HML’s score for 2019–20
1
Profitability
Net margin = Net profit/
Total revenue
2
Operating efficiency
Operating margin = PBIT/ 6.2% (there is hardly any
Total revenue
money to pay interest and
taxes. It will be difficult for
HML to raise credit for its
operations, considering
shareholder contribution has
not increased)
3
Solvency
Debt/Equity ratio = Total
debt/Shareholder’s equity
21.8 (highly risky
investment. The shareholders
have no money to pay back
the creditors, along with
interest, in case HML winds
up operations. This also
means that raising capital for
future operations is doubtful)
Interest coverage ratio =
PBIT/Interest expense
1.6 (this indicates how many
times the income is available
to pay the interest on the
debt. At least this must be
1.5. This ratio must be
calculated over a range of
time to get a better
assessment)
4
0.09% (<1%. For every Rs.
100 earned in revenue, HML
earns just 9 paisa as income.
There is nothing left to
invest back in the business)
Shareholder – Equity ratio 4.5% (this indicates how
= Shareholder’s capital/
much of the assets in the
Total assets
company are financed by the
shareholders and creditors. It
also provides an assessment
of the importance the
business is for the
shareholders. A higher
percentage means the
shareholders view the
company very seriously.
Enhanced ratio also means
many shareholders, which
can reduce decision-making)
5
Liquidity
Current ratio = Current
assets/Current liabilities
0.14% (the current assets are
not sufficient to pay off the
current liabilities)
82
Table 2 Cash flow statement
of HML (Financial year
2019–20)
M. Dhal and S. P. Pati
Particulars
Amount (INR
in million)
F.Y. ending
2019
Amount (INR
in million)
F.Y. ending
2020
Net income
(13.05)
0.36
Depreciation
4.16
4.3
Change in
current assets
0
(0)
Change in
current
liabilities
34.59
(7.29)
25.7
(2.63)
Change in
fixed assets
(1.67)
(7.97)
Change in
other assets
9.26
(97.26)
7.59
(105.23)
Change in
other
liabilities
(20.04)
37.16
Net cash from financing
activities
(20.04)
37.16
Cash balance
13.25
Operating activities
Net cash from operating
activities
Investing activities
Net cash from investing
activities
Financing activities
Net cash balance
(57.45)
destruction (capacity to dismantle the connection between knowledge and knowledge), integration (capacity to acquire necessary knowledge outside of firm for its
use) and absorption (capacity to put the acquired knowledge in use for the firm),
and replication (capacity to transmit knowledge from a transmitting agency such
as an individual, organization, or industry to a receiving agency) and protection
(capacity to control the replication process of knowledge or its exit). Kaplan et al.
(2001) assert that firm performance is contingent on the allocation of resources in
a manner that enables and limits the exercise of these six capabilities.
The existing workforce (and by extension the work culture) in HML will be of
little use in enhancing these capabilities. Table 1 summarizes the reasons.
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
83
S. no. Capabilities Remarks
1
Creation
HML would not be able to create new knowledge (for new markets and
better quality) for there is hardly any further training that is provided to the
workers. The heart of a new type of tea is contingent on the quality of
leaves that is plucked. Moreover, the preference to hire family members of
workers ensures that the existing knowledge is transferred through
socialization and is deeply entrenched in the work culture. One way to
stimulate creation could be to expose workers to good tea plucking
practices
2
Destruction The management is worried about changing any existing routines, possibly
in fear of retaliation from the Union. Peace is celebrated as a sign of
prosperity
3
Integration
The isolated terrain has definitely made HML reluctant to be aggressive in
hiring. However, there is little interest shown by the management to hire
new and different talent. The workforce has more of the same
competencies and thinking. One way to enhance integration is to hire from
other gardens (like Assam and Idukki)
4
Absorption
Since there is no new knowledge, there is a little avenue for its usage for
the success of HML
5
Replication HML draws its leadership from within, who serves as the example of the
same value system and beliefs. The workforce is replicating the same
routine. The presence of JLMC “hardens” the replication and provides a
little avenue for an alternative voice. Democracy has contributed to little
direction
6
Protection
There are no institutions that are challenging JLMC or providing it a new
direction
In summary, we suggest that for becoming competitive, HML must
1. Hire its leadership from the competition.
2. Enhance workforce diversity in terms of increasing hiring of workers from other
states.
3. Expose and train workers to better plucking practices in line with the strategic
direction of the company.
II. What makes a company a great place to work? Do you think hml could sustain
its position in the future great place to work surveys?
HML has successfully created a Great Place to Work (GPW) as they have excelled
in the five dimensions that are a hallmark of a high-trust, high-performance culture—credibility, respect, fairness, pride, and camaraderie. Great place to work is
considered the “gold standard” in workplace culture assessment and recognition.
Students are encouraged to go through the GPTW model2 and the trust index,
and the culture audit, and find the practices that demonstrate credibility, respect,
2
https://www.greatplacetowork.in/gptw-model/.
84
M. Dhal and S. P. Pati
fairness, pride, and camaraderie. The culture audit showcases that the five underlying qualities that magnify success are their variety, originality, all-inclusiveness,
degree of human touch, and integration with the culture at large.
“As the company policy is apparent, everything moves smoothly, and Management is treating employees like their family. They also give proper job
opportunities to our children. All the workers are like family members. My company gives each and every staff individual responsibility at work.”—Testimonial
from an employee.3
This testimonial showcases how employees experience GPTW.
However, a sustainable GPTW is based on its values, leadership effectiveness,
maximization of human capital, innovation by all, and financial growth.
In 2021, HML secured the 6th rank in the GPW survey, descending by two
places, although they scored higher than the previous year on the trust index.
However, the company added two new feathers to its cap by securing rank 16 in
Asia’s Best Workplace and the top 50 best workplaces for women in India.
III. Will any strategy to enhance the profitability of HML be implementable in the
“Good” workplace?
If the above strategies are implemented, it would likely threaten the existing
workforce, resulting in the strengthening of union activities.
Mobilization Theory
We elaborate on the formation of the union through Kelly’s mobilization theory.
Kelly asserts that workers felt injustice is the primary trigger for collective action.
Felt injustice could result either from distributive injustice (dissatisfaction with the
distribution of outcomes, such as rewards, punishments, or workload), procedural
injustice (dissatisfaction with the process of distribution of outcomes), and interactional injustice (a feeling of loss of dignity in an interaction). Workers typically
attribute the felt injustice to their organization.
However, every injustice would not result in unionization. Kelly identifies three
catalysts that would propel such transformation. First, it is the moral indefensibility of the actions by the employer. Moral indefensibility refers to the magnitude
of the offence and the offender’s ability and moral imperative to pursue alternative
or less offensive activities. For example, workers would be more likely to accept a
wage cut when managers share these cost-saving measures. If the workers discover
later that managers received a pay raise, whereas they shouldered a wage cut, it
may lead to a strong sense of inequity, injustice, and hostility (Johnson & Jarley,
2004). In summary, workers examine whether there was a better alternative that
the employers could have embraced. If there is, then hold the employer’s action as
morally indefensible. Second, the presence of a leader is deemed necessary. Leaders help transform individual grievances into collective action by creating group
3
https://www.greatplacetowork.in/great/profile/india-best/Harrisons-Malayalam.
Plantation of Hope: The Turnaround of Harissons Malayalam Ltd.
85
cohesion and group identity and legitimizing such action against hostile criticism.
Essentially, leaders form the catalyst for constructing class consciousness. They
ensure that group members participate in social exchanges of personal obligation,
gratitude, and trust. Therefore, members feel obligated to repay the help of fellow group members. The group, therefore, holds together. Last, union support is
argued to be a necessary variable that encourages union formation. Union support
may be understood as the workers’ perception that the union applies fair rules
and procedures in reaching decisions and treats members equitably. Furthermore,
treating members with dignity and respect also enhances the perception of union
support, assuring the union of members’ support and participation in their revolt
against the management.
The political ideology of members could also help hasten the process; however,
it is not necessary (Johnson & Jarley, 2004).
If HML hires its leadership from the competition or workers from other states,
it will threaten the employment prospects of long-time employees and family members of current workers. Existing workers may perceive this action as
discriminatory and morally indefensible. Unionism would most likely increase.
“Negating” the Union
It must be borne in mind that the Industrial Relations Code (2020) supports the
right of employees to form a union. Therefore, the employer cannot explicitly
forbid the workers from organizing themselves. However, utilizing Kelly’s framework, managers can create situations that can provide little motivation for workers
to support union-backed agitation.
One of the positive ways HML could limit the strengthening of the unions is by
exposing the union leaders and influential members of JMLC to better organizational practices. Such an approach was undertaken by North Delhi Power Limited
(NDPL). Upon its formation in 2002, the management sent the union leaders to
the Tata Steel plant in Jamshedpur to learn about the harmonious coexistence
between capital and labour that comprised 40,000 individuals.4 Individuals can
be reasonable if they are exposed to ideas and witness value.
Afterthought
In 2021, HML secured the 6th rank in the GPW survey, descending by two places.
However, surprisingly, it recorded a profit of approximately 361 million INR in
the financial year 2020–21 (roughly 10 times more profit than the previous year).
The revenue has increased to INR 4539 million, while employee-related expenses
have been reduced to 1611 million. Does a reduction in happiness increase the
profitability of the firm? The debate can go on!
4
Debi S. Saini, “Managing Employee Relations through Strategic Human Resource Management:
Evidence from Two Tata Companies,” Indian Journal of Industrial Relations, October 2006, 42(2),
170–189.
86
M. Dhal and S. P. Pati
Prerequisite Conceptual Understanding/Before the Classroom Exercise/
Reading
The participants can engage in a better discussion if they know the following
concepts.
1. Knowledge-based view of the firm
Suggested reference: Kaplan, S., Schenkel, A., von Krogh, G., & Weber, C. (2001).
Knowledge-based theories of the firm in strategic management: A review and
extension (Working Paper No. 4216-01). Massachusetts Institute of Technology,
Boston.
Additional Reading(s)
Grant, R., & Phene, A. (In Press). The knowledge-based view and global strategy:
Past impact and future potential. Global Strategy Journal, 1–21.
2. Mobilization theory
Suggested reference: Kelly J, (1998). Rethinking industrial relations. Mobilization,
collectivism and long waves. London: Routledge.
Additional Reading(s)
Johnson, N. B., & Jarley, B. (2004). Justice and union participation: an extension
and test of mobilization theory. British Journal of Industrial Relations, 42(3), 543–
562.
Note The paper summarizes the mobilization theory.
Can Collaboration Thrive in a Virtual
Environment?—An Enigma!
Amit Gupta and Ranjan Kumar Mohapatra
1
Introduction and Background
A nationwide lockdown was announced in India with effect from 25 March 2020.
Umakant Prasad Singh, Executive Director (HR) of India’s largest Central Public
Sector Enterprise (CPSE) in the downstream sector Indian Oil Corporation Limited
(IOCL), was yet to reach home on the evening of 24 March 2020 when the PM
had announced the lockdown. Immediately, he commenced a series of continuous
telephonic conversations to ensure that despite the lockdown, his workforce was
able to execute the national promise of uninterrupted delivery of various fuels to
every part of the country.
Many organisations have relied on interdependencies—not just technical but
also socio-cultural—during uncalled-for situations, including natural disasters
(Curnin, 2018). It was time for Singh, a key HR functionary of IOCL, to demonstrate his prowess in handling this unprecedented situation. Singh poured all his
experience into the situation and rolled out an innovative model of collaboration
for IOCL. He encounters several challenges on the way and is introspecting, as he
stands at the cusp of a dilemma!
A. Gupta (B) · R. K. Mohapatra
Indian Oil Corporation Limited, New Delhi, India
e-mail: amitgupta@indianoil.in
A. Gupta
Delhi, India
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_5
87
88
2
A. Gupta and R. K. Mohapatra
The Indian Oil Corporation Limited
IndianOil is a diversified, integrated energy major with the presence in almost all
the streams of oil, gas, petrochemicals and alternative energy sources. IndianOil is
a major player in the highly diversified oil and gas industry in India. The industry
is mostly dominated by Central Public Sector Enterprises (CPSEs) but has also
seen the advent of private players in the last decade. IndianOil had a turnover of
Rs. 605,924 crore or US$87 billion in 2018–19. The company has over 33,500
strong workforce.
3
The Organisational Structure
IOCL is headed by a Chairman, who manages the affairs of the organisation and
heads the board of directors. The board comprises full-time directors, government
nominees and independent directors—all of whom are appointed by Government
of India. There are seven full-time board members: five out of these seven head
a separate business vertical each—marketing, refineries, pipelines, research and
development, petrochemicals and business development. Corporate office is the
apex decision-making office of the corporation. A graphical organisation structure
is shown in Exhibit 1. IOCL has three management clusters—junior, middle and
senior. In general, the first cluster includes people with executive experience of up
to 15 years, the middle cluster includes people with executive experience of up to
25 years and the senior cluster has people with more than 25 years of executive
experience. However, there are exceptions to this general classification depending
on the individual’s career progression.
4
The Human Resources—Philosophy and Structure
The organisation is guided by a participative philosophy in managing Human
Resources. The Annual Report for the year 2017–18 summarised the IOCL
HR philosophy thus—“Your Corporation supports the participative culture in the
management of the enterprise and has adopted a consultative approach with the collectives, establishing a harmonious relationship for industrial peace thereby leading
to higher productivity. Employees’ participation is ensured through informationsharing with collectives and employees on a regular basis while seeking their support,
suggestions and cooperation.” The employees of the organisation function under
the corporate vision and core values, which are embedded together and, thus, act
as guiding principles for decisions across all levels. Refer to Exhibit 2 for details.
The human resource function in IOCL is organised in such a way that each
Division has an HR vertical (refer to Exhibit 3 for details). The heads of these
verticals administratively report to their respective directors. However, functionally, they are guided by the policies, which are framed at the corporate office. The
execution of policies is undertaken by the divisions, through offices spread across
different regions or units or states.
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
5
89
The Lockdown
The lockdown was announced on the evening of 24 March 2020 and was to be
effective from 00:00 h of 25 March 2020 and was to be for a period of 3 weeks.
Barring essential services such as health, food, water, police, internet, fiscal services and fuel, everything was brought to a standstill. In a country of 1.3 billion
people, it was essential that during these uncertain and unprecedented situations,
human dignity and human life were sustained. It was in this situation that IndianOil was to demonstrate its indomitable presence once again in ensuring that the
energy lifeline of the country was maintained uninterruptedly.
Singh had joined IOCL over three decades ago. He had served in various parts
of the country and was an acclaimed supply-chain expert. Of late, he had handled
even higher roles of the head of a state office, head of institutional sales for the
organisation and now, the head of HR for the marketing division. He reported
to director (marketing). All the customer-facing points and supply locations were
administratively under the marketing division. Being head of HR for the customerfacing division of IOCL, Singh had the mammoth responsibility of simultaneously
ensuring the safety, agility and well-being of his workforce and keeping the energy
supply maintained.
6
The Enigma
IOCL leaders, including Singh, were confident of maintaining the energy supply because the interest of the nation was foremost in the mind of every IOCL
employee. While travelling back home, after the PM’s address to the nation, Singh
made a series of continuous telephonic conversations to tie the loose ends so that
despite the lockdown, his workforce was ready to operate various installations
the next day and maintain energy supplies. He spoke with 16 state office heads,
understood the ground situation and put his entire wisdom into managing the people’s expectations and concerns about operating the installations amidst the fear of
corona. A list of the state offices of marketing division is shown in Exhibit 4.
The very next morning, nearly 60% of IOCL employees were in operating
locations to provide oil and gas to the country! Much relieved in the morning that
the supply chain was in place, Singh was visualising a gigantic problem that had
given him a sleepless night.
As a process-based organisation, IOCL had never relied on a work from home
(WFH) philosophy and hence, the workforce was not used to such a culture. While
the population working in the field was toiling with the challenge of maintaining
the supply line and ensuring the health and safety of co-workers/stakeholders, there
was a latent volcano that would erupt gradually. Singh, a people’s person, sensed
that employees who were locked at home were getting filled with anxiety and
issues of idleness and under-utilisation of faculties of the otherwise active mind.
He mused, with a heavy heart, “60% of my population is in field, but how do I keep
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A. Gupta and R. K. Mohapatra
the remaining 40% population engaged as they find themselves suddenly locked at
home?”
A telephone call from director (marketing) punctuated their conversation.
7
The Trigger
To devise a strategy and keep a watch on the pandemic situation within IOCL,
an empowered committee had been set up under the leadership of director (HR)
of IndianOil. The corporate head of Health, Safety and Environment (HSE) was
the process owner and corporate head of HR was the convenor of this committee.
The heads of HSE for each division were process owners for their respective divisions and heads of HR were convenors of their respective divisions. Singh was the
convenor of marketing division. The committee was meeting regularly via virtual
mode, and its decisions were being communicated to leadership at all levels.
As Singh was connecting to the meeting of empowered committee, he resolved,
“I will discover opportunity in adversity.”
8
The Idea
He gave an astounding discourse during that meeting and floated the idea of introducing some collaborative exercises for the employees at home. He stated that
while our people at home would take some time to reconcile with the situation,
let us not make them feel that they are away from the office or away from their
people. He suggested that we ought to introduce something that could not just
trigger the passion of employees at home but also put their intellect and creativity
to optimum use. He emphasised that employee commitment and creativity can be
high, especially during turbulent times, only when employers demonstrate concern
with both the work and life needs of an employee.
The empowered committee welcomed the suggestion and assigned the responsibility to Singh to put forward a detailed plan and execution strategy. He asked
for 1 day and agreed to present the details on the next morning.
It was a difficult day for Singh.
He knew that understanding the interdependency of such a large and complex
organisation, and that too, in a crisis, was necessary to come out with a proposal
that would cut across all divisions. He was aware that IOCL employees were
outgoing in nature, and staying at home could lead them to a possible ‘sense
of isolation’ (Harpaz, 2002). Hence, given his rich experience and knowledge
about IOCL functioning, he conceptualised an innovative approach to keeping his
employees engaged, based on tenets of collaboration, learning and motivation.
He made several phone calls that day and immersed himself in employee data
(refer to Exhibit 5), the availability of employees at home/workplace during the
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
91
lockdown and work allocation during the lockdown. He observed that nearly all
non-executives were in the workplace, being there to operate the installations.
However, many executives, who were engaged in service functions such as HR,
finance, back-end sales, planning and so on were confined to homes. While he did
not have time for a thorough demographic assessment, he knew that the executive
population of IndianOil was diverse, and the majority comprised millennials and
Generation Y.
This brought a spark in his eyes. His understanding of traits of various age
brackets reminded him that Generation Y had grown up in the world of collaboration and believed in reaching out instantly to anyone. He had also read that even
the millennials were content to enjoy collaborative success if a larger goal was
achieved (Holmberg-Wright et al., 2017). He had found a solid ground to place
his idea upon—collaboration of a diverse team.
He proposed to set up inter-divisional virtual teams (IDVTs) comprising executives from each division. The teams would comprise people from different age
groups, various hierarchy levels (that is, different management clusters), diverse
regional backgrounds, different languages and different gender. He took a quick
glance at the diversity within the organisation across these factors and decided to
carve out a representative group. A look at the composition would reveal that the
56 members of the IDVTs represented the following ranges (refer to Exhibit 6):
Hierarchy levels—Junior, middle and senior
Age—27 years to 58 years
Domicile—14 Administrative states of India
Qualification—Arts, Law, Engineering, Management
Experience—2 years to 35 years
Social background—Spread across all social strata.
Administrative division—All divisions of IndianOil
The teams would work virtually (being under lockdown) and collaborate on a
specific real-life problem. He discussed the idea with the HR and functional heads
of other divisions/corporate offices. It was suggested by most of the top leaders that
while designing the details, Singh should keep in mind the goods of work—excellence, social contribution, community and recognition—that an employee aspires
for (Gheaus & Herzog, 2016).
9
The Plan
To start with, Singh set up teams from the biggest service function, that is, HR.
This was so because as HR head, he would have complete knowledge and control
of the work allocation for these executives. Further, if he would be successful in
keeping the executives of a large service function engaged even while under WFH,
he could replicate the model in other functions as well.
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A. Gupta and R. K. Mohapatra
It was decided to set up 16 IDVTs. Each team would comprise four to five
members, each one of whom would come from different divisions. The willingness of team members to collaborate was indispensable, to deal with uncertainty
in such complex situations (Arklay, 2015). While the intent was to keep the workforce engaged, it was also planned that the organisation should also benefit from
the collective wisdom of these teams. Singh and team, therefore, focused on the
identification of complex problems so that these objectives were meant. Based
on inputs from other divisions and discussions with corporate office, a list of key
issues that would concern the management was compiled. A wide array of subjects
ensured that the team members would remain mutually engaged through ‘coordinated efforts in solving a problem together’ (Lai, 2011). Refer to Exhibit 7 for the
list of topics identified for IDVTs.
In any large population, there would always be some persons who would be
reticent and hence, get overshadowed in a group exercise. Therefore, the plan
was to be so devised that every member must make an individual contribution.
Constructing a shared problem-solving process requires immense trust amongst
participants, between participants and the organiser, and between the organiser
and the management.
Time was running out. Singh wanted to tie all the loose ends before he presented his plan to the empowered committee. He took a break and switched on the
television to watch a documentary on his favourite subject—animation films.
It was a Eureka moment for him.
He picked up his working papers for IDVTs and introduced storyboarding, a
collaborative management technique borrowed from the entertainment industry
(first used by Disney) and business, to stimulate creativity and promote greater
participation in the problem-solving process (Lamberton, 2017). In this technique, participants use individual storyboards to convey their responses to specific
questions through pictures, audio-visuals and/or text. Storyboarding had been
successfully used to generate innovative ideas, engage people and enhance collaboration (Atkinson, 2011; Proctor, 2014). It involved the following four steps
(Fraser, 2003):
1. Generation of solutions/ideas—Each participant documents all the possible
solutions/ideas related to the story or topic under consideration.
2. Group discussion—Each solution/idea is reviewed with each participant
explaining his or her solutions/ideas to the group.
3. Sorting—Based on further group discussion, the ideas are sorted into similar
categories. Each clustering of similar ideas is given a separate title to distinguish
it from the others.
4. Group review—The group reviews the clustering of concepts and decides to do
further sorting, adding or deleting as needed.
5. Pare down the solutions—The group selects a limited number of solutions
through discussions or voting to achieve a consensus.
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
10
93
Positioning and Management Buy-in
Singh explained the complete process of setting up and functioning of IDVTs to the
empowered committee. He could address all concerns of the committee because he
had designed the plan very logically and scientifically. It was for the first time that
Singh was creating a system of collaboration that would be different from the prepandemic practices of collaboration. Historically, the officials of different divisions
of IndianOil had been collaborating with each other on a case-to-case basis or
need-based requirements. The instances of collaboration could be categorised as
threefold:
● tenured posting of officials in cross-functional departments such as strategy/
optimisation/international trade;
● posting of officials in dedicated coordination departments of their divisions;
● inter-divisional committees for a specific problem-solving.
The proposed plan was different from pre-pandemic practices, as illustrated in
Exhibit 8.
Singh was feeling extremely satisfied and relieved that he had arrived at every
decision and every step after weighing various options. Moreover, he had got the
buy-in of all divisional HR heads on the process, the composition and the topics. In
fact, he cited his discussions with other HR heads as evidence to demonstrate to the
committee that the process for functioning of IDVTs had evolved collaboratively
and was, therefore, a prelude to the success of such teams. Explaining the twin
objectives of the IDVTs, he suggested that they would start with IDVTs in HR
and thereafter, replicate these in other functions.
However, one of the key members asked him how would he construe whether
the intervention was successful or not? Singh was not fully prepared for the reply,
but he suggested the following measures of success:
1. Individual contribution by team members
2. Management response to the outcomes of the teams
3. Voice of people—feedback from participants with respect to their engagement
and utilisation of intellectual faculty
4. Demand from other functions for setting up similar teams
Although his reply had convinced the other members, Singh realised that he was
yet to devise a fool-proof barometer of success. Fortunately, the members could
not sense the shaking in Singh’s mind and gave the go-ahead for the activity.
94
11
A. Gupta and R. K. Mohapatra
The Challenges and Outcomes
The 16 teams were set up and during the next 3 weeks, these teams studied various aspects as suggested by HR heads and their teams. In IndianOil, most of the
executive workforce at junior and middle management levels had not worked in
more than one division. As an illustration, an officer in marketing division would
not be conversant with the detailed working of the refineries and vice versa. Since
the nature of problems assigned to the IDVTs was not specific to any division,
hence, all members had to think from a corporation-wide perspective. Further,
since most of the members would not have exposure to multiple functions/subfunctions/geographies, they had to put extra effort to understand those nuances.
Therefore, the composition of groups had to be well-balanced.
Singh looked at the profile of hundreds of officers and identified people based
on various factors so that he had a choice to make from people with multifunction experience, specialised experience, multiple geographies and different
social backgrounds/gender/age/hierarchy levels/qualifications. Amongst this carefully identified group, he ensured that there were about 15–20 people who had
earlier experience in handling diverse teams. This was important so that each group
had an option to choose at least one such person as the team leader, since there was
no designated leader mentioned while announcing the groups. This helped. Vaibhav, who emerged as a chosen leader by a team, mentioned that his experience
of handling this group was totally different from his earlier team-handling experiences. It was difficult to convince members to think about a topic beyond their
respective divisions. The earlier diverse teams that he had handled were bound
by a target that reflected in their performance appraisal and the assignment was
of longer duration. In this case, there was no apparent quantifiable target, and of
course, the association was short-lived. Vaibhav brought his new team together
around core values; and talked about working for a purpose which was contributing to the national cause. He told them that they were amongst a few selected ones
who had got a chance to make a novel contribution to a larger cause. The members,
glued by this purpose and the core values, jumped to action and worked sincerely
in their individual capacities to make their mark. Likewise, Smitha, a member of
another group, shared that she was inspired by her group leader to carry out an
independent study of the subject, explore literature and best practices and come out
with a solution for the challenge that they had been given. A member of another
group mentioned that he realised the importance of individual contribution and felt
that it added a sense of responsibility to him, and he worked hard to ensure that
his output was substantial and well-supported by data/logic. This dedication and
effort added to the overall outcome of the group.
There was a defined timeline allocated for each team and this included the
following activities:
a. individual contributions in the form of study of best practices, study of IOCL
practices, possible solutions and challenges—4 days
b. Group activities of discussions, sorting and group reviews—4 days
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
95
c. Finalisation of solutions—4 days
d. Presentation to the team of divisional HR heads—3 days
e. Presentation to the empowered committee—3 days
In many cases, the IDVT members had to seek inputs from different functionaries
in the organisation and thus, the engagement impact of IDVTs extended beyond the
members. The actions under IDVTs also strengthened the sense of trust amongst
IOCL employees.
The high expectations of the management, stringent timelines and an unprecedented diverse composition not just triggered but also accelerated the fall of
hierarchical boundaries and silos in thinking. This could be seen from the
functioning of one of the IDVTs.
Anurag, who had joined IOCL 2 years ago, saw himself in a group comprising
a member with 20 years of experience and another with 15 years of experience.
All three members were from different divisions and different functions. Anurag
was anxious and uncertain about the next few days. Nevertheless, he remained
excited and was looking towards a team leader for direction. Much to his relief,
a senior member soon set up a virtual meeting and introduced everyone. The first
interaction in the virtual meeting was ‘informal and largely social’. At the end of
the first conversation, Anurag’s fears had evaporated, and the barriers of hierarchy,
division or experience had diluted.
The first meeting concluded with fixing a schedule and expectations for the
next meeting. In the next meeting, the members presented their preliminary views
about the subject—‘Sharing of resources at cities where multi-division locations
exist’. Since members were from different divisions, each one had a different viewpoint and at times, conflicted with the others’ perspectives. However, the individual
contributions not only brought out specific practices in the respective divisions but
also the expectations of the divisional representative. The members realised that
conflict/competition arising out of individual opinions would not take them far.
They were already halfway through the first timeline of 4 days! A tea break during the meeting turned out to be the panacea. A natural leader emerged amongst
the group. The leader suggested that all members must substantiate their respective suggestions with evidence, feasibility and/or possible impact. “The suggestion
on exploring feasibility of our suggestions, was a good moment to take a pause,
revisit our thoughts and meet again the next day,” said Anurag.
In the next meeting, the team members began to realise that the individual
expectations and the team goals had to align. They voiced an increased sense of
comfort in expressing their views. Therefore, a lot of emphasis was laid on information sharing and acceptance of contrary views. The members agreed on a set of
rules to operate with. This included the definition of roles for each member, segregation of work into individual and group activity, frequency of communication,
openness of thoughts, willingness to help, conscious effort to resolve problems and
working for group harmony. With this, the team members felt enthused and more
focused on the team goals.
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A. Gupta and R. K. Mohapatra
Additionally, the IDVTs were also motivated by intermittent communication
from HR heads by citing how the management was looking forward to the teams’
contributions. A WhatsApp group was formed for all teams. This enabled all
IDVT members to interact amongst themselves. Backed by such inspirations,
the members had turned more receptive and appreciative of one another’s views.
The response had changed from criticism to constructive feedback. The members overcame their interpersonal differences and brought forth their observations
with respect to a few redundant practices and a few areas where duplicity existed.
Hence, a scope for synergy emerged as the first deliverable.
Anurag explained, “The members were charged up after encouraging feedback
on the initial suggestions. They started deliberating amongst themselves on prioritisation of solutions, feasibility, challenges, and more importantly, buy-in of
management. The iterative process of discussions, data analysis, modification in
suggestions and final order of recommendations went on thereafter. The conflicts
still emerged, but they were dealt with constructively, as the team remained focused
on meeting team goals. Finally, the team was able to conclude its assigned task
within the timelines, like most of other teams. The output of the team was discussed internally as well as with the key officials.” HR heads continually engaged
with IDVTs. The members would often be asked to share their perspectives on
process, engagement, intellectual challenge, and how it was helping them in keeping them occupied. The team members’ feedback was an important tool to gauge
whether the IDVT plan was yielding results. Aarti, an IDVT member working on
ways to curb medical expenses, shared this feedback with Singh’s team, “Working
in IDVT has not only helped me in positively utilising my time but given me a
new perspective. The IDVT experience changed my way of thinking.”
After covering all steps mentioned above, the teams presented their findings
to the empowered committee. In many cases, the members commended the deep
research undertaken by the teams through various surveys, utilisation of secondary
data and telephonic interviews of stakeholders. The members also appreciated the
fact that the teams had presented the outcome despite the constraints of a lockdown
and an overall pensive environment, filled with uncertainty. Two of the empowered committee members asserted that such an intervention should happen in their
department too. However, simultaneously, there were critics who were apprehensive about the effectiveness of the proposed solutions because these solutions had
been proposed solely through virtual discussions. In some presentations, the committee members commented on the lack of practical details and wanted the teams
to work further on certain context-specific solutions rather than merely suggesting
generic options.
As a result of the above, two to three presentations were termed as merely
‘academic’ and devoid of any practical suggestions, whereas a few were picked up
for pilot implementation. Singh was quietly taking down notes and contemplating
the next steps.
As the presentations concluded, one of the committee members simply raised a
question, “Mr. Singh, do you think your intervention can be termed as successful?”
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
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Singh knew that since this was a new intervention, the metrics around the measures of success had not been well-crafted. Nevertheless, he had a blueprint in
mind, which could be tabulated below.
Measure of success
Evaluation parameter
Ascertaining the individual
contribution of team members
a. quantum of time devoted by The team leader
an individual
b. quality of inputs provided by
the team
Management response to the
outcome of the teams
The remarks of the
management could be
categorised into three types:
a. remarks that would endorse
the team’s actions
b. remarks that would
disapprove of the team’s
actions and
c. remarks that would modify
the team’s actions
The HR team to tabulate
management responses not
just in the approval/
disapproval but also in the
various stages of discussion
Devising qualitative analytics
Yet to be firmed up
HR analytics team
Demand for the idea from other Number of demands emerging
functions
for the idea
Evaluator and methodology
HR team
The above was only an initial thought process. Based on an appropriate weightage for number/type of response, the overall score could be calculated for each
measure of success. Once the above metrics were well-established, HR could
institutionalise these to put in place a uniform methodology for measuring the success of IDVTs. These steps could make the intervention more objective, thereby
addressing the concerns of critics with respect to its success.
Singh was confused about whether it was merely a virtual way of working that
had brought concerns regarding the acceptance of the recommendations or there
was some other underlying factor that was causing this. Singh was confident that
technology-enabled storyboarding had brought out greater participation by individuals who would otherwise be uncommunicative or unrepresented (Illustrative
storyboards of two members from Group 12 are placed in Exhibit 9). IndianOil
employees had various options and platforms through which they could express
their views or share new ideas. There was a well-structured suggestion scheme,
discussion forum, direct option of writing to the chairman, cross-divisional programmes and a few more. Similarly, there were a few cross-functional teams that
were set up. In all such cases, the employees would discuss the ideas with their
colleagues before putting them up formally. However, due to the lockdown, many
options were not feasible; further, the employees were not used to discussing ideas
virtually. The IDVT teams were operating on a short-term basis and hence, there
was not enough time bandwidth to overcome the reticence of members. It was a
unique challenge!
The quality of output could be a function of the experience (or rather, inexperience) of some members. Singh had gathered that the IDVT team leaders had
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A. Gupta and R. K. Mohapatra
creatively provided space for the members to share their views so that people could
contribute to their strength areas. He recalled that a team leader had shared with
him that a member was very good at talking about the specific assigned problem,
but she could not articulate very effectively the cross-divisional implications. The
leader, in this case, had requested that member to work on the technical aspect of
the problem and had requested the other members to work on the strategic aspect.
In this way, all members could bring out the best in them and work collaboratively
without any conflict of interest. Further, HR teams had constantly interacted with
the IDVT members and taken their feedback. Overall, the IDVT members were
happy and working with a missionary zeal, unmindful of the pandemic.
12
The Dilemma
Singh was in a dilemma about the future and the outcome of IDVTs. He was
unsure how he would be able to take the success story of IDVTs forward and
scale up the concept. For answering these questions, he had to ascertain that the
IDVTs were a real success and contained the collaborative recommendations of
teams rather than having been dominated by a single person or a single division.
He did not know how he would do so. He decided to peruse each team’s report
and each member’s storyboard and was pondering whether he should pick up the
phone and call the respective members.
As he sipped his cup of coffee, he was undecided but not undeterred.
Exhibit 1: Indian Oil Corporation Limited—Organisation Structure
Source www.iocl.com.
Note Each vertical shown above is headed by a director, who is a full-time member
of the board. These five directors operate from their respective headquarters in New
Delhi except for marketing division, which had its head office in Mumbai. The
other two full-time board members head the service functions—one heading human
resources and the other heading finance. The chairman of the organisation and the
directors for human resources and finance operate from the corporate office located
in New Delhi. The two functional directors—HR and finance—have a sphere of
responsibilities cutting across the above verticals.
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
99
Exhibit 2: Indian Oil Corporation Limited: Vision and Values
Exhibit 3: Indian Oil Corporation Limited—HR Structure
Chairman
Director
(HR)
Director
(Marketing)
Director
(Refineries)
Director
(Pipelines)
HR Head
HR Head
HR Head
Regional HR
Heads
Unit HR
Heads
Director
(R and D)
HR Head
Director
(BD)
HR Head
Regional HR
Heads
State Office
HR Heads
Direct relationship
Dotted relationship
Source Authors’ imprint, based on information gathered from IOCL functionaries.
100
A. Gupta and R. K. Mohapatra
Exhibit 4: Spread of Marketing Division
There are four regions, each of which has further offices (termed as state offices) at
the below-mentioned locations to facilitate better business operations and customer
service.
1. Northern region
2. Eastern region
a. Chandigarh
a. Kolkata
b. New Delhi
b. Guwahati
c. Jaipur
c. Patna
d. Lucknow
d. Bhubaneshwar
e. Noida
3. Western region
4. Southern region
a. Mumbai
a. Chennai
b. Bhopal
b. Kochi
c. Ahmedabad
c. Hyderabad
d. Bengaluru
Exhibit 5: Employee Strength at Time of Lockdown
(Rounded off to Nearest Hundred)
Number of executives—17,900
Number of non-executives—15,000
Exhibit 6: Diversity Amongst the IDVT
Team
Team 1
Team 2
Team 3
Age
Cluster
Mother
tongue
Domicile
region
Division
Highest
qualification
Social
category
33
Junior
Hindi
West
R&D
Engineering
General
33
Junior
Hindi
North
Pipelines
PG Diploma
General
31
Junior
Odia
East
Marketing
PG Diploma
General
32
Junior
Assamese
Northeast
Refineries
MBA
General
43
Middle
Punjabi
North
Pipelines
PG Diploma
Other
backward
class
32
Junior
Hindi
North
Refineries
PG Diploma
General
29
Junior
Bengali
East
Marketing
MBA
General
29
Junior
Hindi
North
R&D
MBA
General
34
Middle
Hindi
North
Pipelines
Engineering
General
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
Team
Team 4
Team 5
Team 6
Team 7
Team 8
Team 9
Team 10
101
Age
Cluster
Mother
tongue
Domicile
region
Division
Highest
qualification
Social
category
33
Middle
Tamil
South
Refineries
Engineering
Other
backward
class
27
Junior
Hindi
North
Marketing
MBA
General
42
Middle
Odia
East
Marketing
Arts
Other
backward
class
38
Middle
Hindi
North
Pipelines
MBA
General
39
Middle
Hindi
East
Refineries
PG Diploma
General
35
Junior
Hindi
East
R&D
MBA HR
General
29
Junior
Hindi
North
Marketing
Social Work
General
35
Junior
Hindi
North
Pipelines
MBA
General
28
Junior
Hindi
East
R&D
Arts
Scheduled
tribe
32
Junior
Hindi
North
Refineries
Law
Scheduled
tribe
44
Junior
Hindi
North
Refineries
Arts
General
43
Middle
Odia
East
Marketing
Engineering
General
41
Middle
Hindi
East
Refineries
Arts
Other
backward
class
35
Junior
Hindi
East
R&D
Science
General
33
Junior
Bengali
East
Pipelines
PG Diploma
Scheduled
caste
58
Middle
Malayalam
West
Marketing
Science
General
37
Middle
Hindi
East
Refineries
PG Diploma
General
28
Junior
Hindi
East
Pipelines
PG Diploma
Scheduled
tribe
39
Middle
Odia
East
Pipelines
MBA
General
45
Middle
Hindi
West
Marketing
MBA
Other
backward
class
39
Junior
Hindi
East
Refineries
MBA
Scheduled
tribe
46
Middle
Bengali
East
Marketing
Engineering
General
35
Junior
Hindi
North
Refineries
MBA
General
38
Middle
Hindi
North
Pipelines
MBA
General
29
Junior
Hindi
North
R&D
Engineering
General
44
Middle
Malayalam
South
Marketing
MBA
General
42
Middle
Hindi
East
Corporate
Office
PG Diploma
General
102
A. Gupta and R. K. Mohapatra
Team
Age
39
Middle
Hindi
North
Refineries
MBA HR
General
Team 11
53
Senior
Bengali
East
Refineries
PG Diploma
General
46
Middle
Hindi
East
Marketing
Engineering
General
42
Middle
Hindi
East
Corporate
Office
PG Diploma
General
Team 12
Team 13
Team 14
Team 15
Cluster
Mother
tongue
Domicile
region
Division
Highest
qualification
Social
category
30
Junior
Hindi
North
R&D
PG Diploma
General
46
Middle
Marathi
West
Marketing
Engineering
General
29
Junior
Hindi
North
R&D
MBA
General
38
Junior
Hindi
East
Refineries
Arts
Scheduled
tribe
31
Middle
Hindi
North
Pipelines
Engineering
Other
backward
class
52
Senior
Hindi
East
Refineries
Engineering
General
44
Middle
Hindi
North
Pipelines
MBA
General
45
Middle
Bengali
East
Marketing
Engineering
General
42
Middle
Hindi
West
Refineries
Engineering
Other
backward
class
28
Junior
Odia
East
R&D
Arts
Scheduled
tribe
47
Middle
Hindi
East
Refineries
Engineering
Other
backward
class
46
Senior
Hindi
North
Corporate
Office
Engineering
General
30
Junior
Hindi
West
Pipelines
MBA
General
31
Junior
Hindi
North
Marketing
Engineering
Other
backward
class
37
Middle
Hindi
East
Refineries
Engineering
General
30
Junior
Hindi
North
Pipelines
Engineering
General
Age Profile at Time of Lockdown
(Rounded off to nearest hundred)
<30 years
–
5200
30–40 years
–
4400
40–50 years
–
3200
>50 years
–
5100
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
103
Exhibit 7: Topics for Study by Inter-divisional Virtual Teams
S. no
Topics
Descriptor
1
How to make work from home (WFH)
a reality—identifying policy, practices,
infrastructure and departments that can
work from home in IndianOil
As a process industry, there was no
provision for work from home in
IndianOil. The group was to study the
current situation, carry out appropriate
activities including survey, parameters to
identify departments where WFH can be
explored, challenges and way forward
2
Leveraging technology in
training—revisiting training calendars,
agendas and schedules in view of virtual
interactive learning technology, e-learning
(Swadhyaya)
There is wide application of technology in
learning in IndianOil. However, the recent
introduction of an eLearning platform and
a few other interventions, and the current
situation had necessitated that the training
administration in the organisation be
revisited in the new scenario
3
Designing end-to-end programme for
apprentice training in IOC—designing
app, learning modules, recruitment
programme, payment of stipend and
issuance of certificates
Apprenticeship is provided to over 3000
candidates every year in the organisation.
The data is managed separately by each
division. Hence, there was need for
development of a corporate in-house portal
for apprentices across all divisions
4
Outsourcing: do’s and
don’ts—standardising contracts and
statutory requirements
There are few functions where outsourcing
is undertaken in IndianOil. The group
would study in-house practices,
outsourcing practices within and outside
oil industry, have discussions with experts
and put forth the risk mitigation and
outsourcing models
5
Impact of forthcoming labour codes on
various divisions of corporation
Since the organisation engages a large
workforce directly/indirectly, compliance
with statutory requirements is very
important. The Government of India had
come out with new Codes on Labour, Code
on Wages, Code on Occupational Safety,
Health and Working Conditions and Code
on Industrial Relations. The group would
study their impact on the industry and in
organisation
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A. Gupta and R. K. Mohapatra
S. no
Topics
Descriptor
6
How to engage white collar workmen
more effectively
The workmen (non-executives) in the
organisation are categorised as white-collar
workers (WCW) or blue-collar workers
(BCW) depending on the nature of
activities they perform. Because of
increasing automation, change of skill set
required for some jobs and the sudden
disruption due to pandemic, there was a
need to enhance engagement of WCWs.
Further, there was disparity in present
WCW distribution based on age and
qualification profile, Department-wise
positioning across divisions. The group
was expected to undertake the study of
best-in-class principles/practices adopted
for higher effective engagement of WCWs
and make recommendations for the
organisation
7
Ways to curb medical expenses
As health practices had evolved over time
in the country, it was felt that some new
models of medical coverage could be
examined. For this, the detailed analytics
of medical expenditure was to be carried
out, especially for the past few years, i.e.,
financial years 2016–17, 2017–18 and
2018–19. There had not been a
comprehensive organisation-wide study of
complete medical coverage and
administration practices. Hence, the group
was expected to interact with HR
administrators across divisions who were
handling medical billing, hospital
nomination and related activities; examine
the healthcare benefit policy and
procedures followed by other companies in
the energy sector; find out the differences
in practices across divisions of IndianOil;
and finally, suggest ways to bring down the
medical expenses without compromising
on employee well-being
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
105
S. no
Topics
Descriptor
8
Utilisation of idling corporation-owned
quarters
Corporation-owned residential facilities
were unutilised in many cities whereas
there was a waiting list to get into these
facilities in many other cities. This had a
huge financial implication on account of
unutilised assets. The IDVT would
examine trends for key locations where
quarters were idling and study reasons for
unoccupancy through detailed discussions
with employees. Economic model for
corporation residential assets could be
developed leading to ideas for utilisation of
idling quarters
9
Digitalisation in administrative offices
Developments across industries reveal that
various digital platforms were being used
for employee engagements, claims,
communication and work procedures
across the globe. While IndianOil had
always been at the forefront of technology,
this group was assigned a specific task to
interact with other private and government
organisations for understanding their
administrative practices and digital
initiatives and put-up recommendations for
IndianOil
10
Performance feedback—mechanisms
The existing performance management is
an annual exercise and employees are
evaluated based on a normal distribution
curve, taking into consideration their
competencies, potential and performance
on key result areas. Since the system had
been in existence in this form for around a
decade, this team was set up to understand
the current status of performance feedback,
find the pulse of employees, study
practices followed in other organisations,
and propose new/changed mechanisms, if
any, for short-term, long-term and futuristic
possibilities
11
Digitalisation of HRD activities
This was like the team at S. No. 9 except
that this team focused on HRD-specific
digitalisation
106
A. Gupta and R. K. Mohapatra
S. no
Topics
Descriptor
12
How to make workforce ready for future
generation of fuels/products
India had been a witness to opening of
energy market to private players.
Simultaneously, Government of India had
also announced disinvestment plans for
Central Public Sector Enterprises. Hence,
there was an ardent need to study the
impact of privatisation, new products and
change in business process on the
workforce requirement in organisation and
how HR would meet the emerging business
needs
13
Oil industry scenario—post-corona and
our strategy
This group was asked to carry out deep
research on writings of eminent energy
scholars, organisations and papers
published by top consulting firms;
undertake discussions with top industry
experts within and outside IndianOil and
suggest a blueprint for organisational
strategy in post-corona era
14
Pilot study on sharing of resources
including manpower at cities where
multi-divisional locations exist
There were many locations in country
where the different divisions of IndianOil
operated. For instance, there would be a
refinery, a marketing installation/sales
office and a pipeline station. However, at
most of such places, there was hardly any
resource sharing, especially manpower.
Hence, this team was expected to study and
identify areas where resource of one
division could be utilised by others and
thus, one could leverage the manpower/
resources for optimal utilisation as well as
improved coordination amongst each
division
15
Standardisation of improved hygiene
practices at operating locations and
administrative offices
Due to different nature of activities in
different locations, the hygiene practices
were a bit varied though there were
standard advisories issued by corporate
office. The variation in practices was
largely on account of the variety of people
entering a location—office staff/contract
workers/allied workers/visitors. The group
would study the practices in a few
operating locations and administrative
offices across the corporation and discuss
Hygiene practices that are being followed,
derive commonalities and trends, study
other best hygiene practices followed
across India/world and try to incorporate a
few ideas
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
107
Exhibit 8: Illustrations of Pre-pandemic Inter-divisional Collaboration Practices
In the pre-pandemic scenario, the inter-divisional collaborations were broadly under
these categories:
● Tenured posting of officials: A few departments in the organisation had regular
posting officers from multiple divisions due to the nature of work. For instance,
the Corporate Strategy department—which would make recommendations to the
management to the management on the possible forays in new areas, irrespective of the administrative division; Optimisation department—which would carry
out supply-chain optimisation for crude procurement, distribution, transportation,
product demand and supply; International Trade department—which primarily
dealt with executing the recommendations of the optimisation department. All
these departments needed people with an understanding of different divisions
and hence, officers from multiple divisions were posted on a tenure basis.
● Coordination departments: There were dedicated coordination departments set
up to ensure a seamless supply–demand situation. While the officers were posted
from the respective departments of their divisions, their prime role was to
coordinate with the other divisions with respect to product requirements and
prioritisation.
● Inter-divisional committees: As a practice, in case of specific problems, sometimes inter-divisional committees were set up, comprising officers from relevant
divisions. The period of work of such committees would vary on a case-to-case
basis and thus, there were no uniform guidelines pan India.
The IDVT intervention was much different from the pre-pandemic collaboration
practices because of the following reasons:
● The IDVTs were pan India.
● The composition was instantaneous and short-lived, without any prior time for
preparation. It may be noted that in the case of regular postings as mentioned in
the pre-pandemic illustrations, the officers would be given sufficient time (30–
60 days) to join the new assignments.
● The IDVT activities were handheld by Singh’s team, and hence, uniform
guidelines were adopted.
● There was a real-time sharing of information amongst various teams, due to the
availability of the WhatsApp group.
● All IDVT outcomes were presented before an empowered committee, which
provided a high level of credence to the teams and the initiative.
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A. Gupta and R. K. Mohapatra
Exhibit 9: Two Illustrations of Storyboards from the Group Working on ‘How
to Make Workforce Ready for Future Generation of Fuels/Products’
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
109
Appendix: Teaching Notes
Case Summary
Umakant Prasad Singh, Executive Director (HR) of India’s largest Central Public Sector Enterprise (CPSE) IOCL, was yet to reach home on the evening of
24 March 2020 when the Prime Minister of India had announced a nationwide
lockdown. Immediately, Singh commenced a series of continuous telephonic conversations. He ensured that the energy line was maintained from the very next
morning as nearly 60% of IOCL employees were in the field to provide oil and
gas to the country. Much relieved that the supply chain was in place, Singh was
equally concerned about the state of mind of the remaining 40% population who
found themselves suddenly locked at home.
Singh was the head of HR for the marketing division of IOCL. All the customerfacing points and supply locations were administratively under the marketing
division. As a process-based organisation, IOCL workforce was not used to work
from home. For employees who were locked at home, the issues of sitting at home
and not being able to do what they were normally doing, cropped up.
Singh floated the idea of introducing some collaborative exercises for the
employees at home. He discussed the idea with the HR heads of other divisions
and floated the concept of inter-divisional virtual teams (IDVTs).
The teams were set up and during the next 3 weeks, these teams studied
various problems and presented their findings to an empowered committee. The
proposed solutions were well-received by some members of the committee, but
simultaneously, there were critics who were apprehensive about the effectiveness
of the proposed solutions because they had been brought out solely through virtual
discussions.
Singh was confused about whether it was merely a virtual way of working that
had brought concerns regarding the acceptance of the recommendations or there
was some other underlying unnerving factor that was causing this.
He was in a dilemma about how he would ascertain that the IDVTs were a real
success and contained the collaborative recommendations of teams rather than
being dominated by a single person. He decided to peruse each team’s report and
was pondering whether he should pick up the phone and call respective members.
Learning Objectives
The classroom discussion must revolve around the situation in the case and the
theoretical perspectives. The learning objective would be to understand
a. The power of collaboration despite the challenges of operating in a virtual
environment.
110
A. Gupta and R. K. Mohapatra
b. How challenges can be converted into opportunities. A specific instance of how
the limitations of a virtual environment can be overcome is demonstrated in the
case.
The power of collaboration, that was explored in the crisis, would not have been
unveiled during routine work.
Case Questions
Q1: What are the various problems in the case and what are the various
opportunities?
Q2: How does the design of the programme enable collaboration?
Q3: Do you think that this is a case of collaboration?
Q4: Is storyboarding the right technique adopted for this intervention by the
protagonist?
Q5: Explore the technology enabled storyboarding in more details.
Q6: What can be the other insights from the case?
Case-Wise Analysis Along with Relevant References
A case can be categorised as follows (Iyer, 2020):
1. Live cases: These are based on the observations of events in an organisation at
a particular time. The case is based on the insights gathered from the dramatis
personae.
2. Synthetic cases: These assemble separate happenings in two or more organisations over different periods of time. These are synthetically crafted in the
writer’s mind.
This is a live case.
The case contains enough information for determining the crucial factors that
confront the decision-maker in the situation. There are the following key aspects:
●
●
●
●
A lockdown situation
Concern about the engagement of employees at home
Organisational productivity and growth
Employee productivity—the key human resources should be leveraged optimally
● Scope for innovation through collaborative techniques
The case has brought out the scenario depicting all the above factors in adequate
detail for a reader to understand the context, the situation and the dilemma before
the dramatis personae.
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
111
To find the solutions to the case questions, one must understand that a case
solution must be
●
●
●
●
Well-justified
Realistic
Specific
Original
However, the first task is to identify the dilemma(s), then churn out the possible
options, evaluate the options on the above lens and, then, suggest a solution.
In the subject case, the protagonist is at the fork of the following:
● Scale up the IDVTs in their present form because these have been successful
in bringing people together.
● Had he chosen the right measures of success for this initiative?
● Close the IDVTs because there has been criticism regarding bias towards
division/being academic.
● Scale up the IDVTs in an altered form and go beyond the storyboarding
technique because there has been criticism of the pure virtual process.
● Speak to IDVT members and understand the modus operandi of each team, and
then, devise a specific strategy for the way forward.
● Speak to the empowered committee members individually and understand their
latent concerns if any.
Suggested answers are as below, though more dimensions can emerge during
discussions.
Q1: What are the various problems in the case and what are the various
opportunities?
The case brings out the issues of handling the workforce during uncertainty,
ensuring organisational productivity through creative interventions.
Q2: How does the design of the programme enable collaboration?
Proceeding sequentially, we look at the constitution of IDVTs. It was based on a
scientific design, considering the following practical aspects:
1. Demographics—diverse age profile
2. Quick timelines—in line with the contemporary literature that highlights the
declining attention span of millennials
3. A mixed composition to overcome the reticence of individuals and at the same
time, bring in the elements of collaboration
4. The stages of team formation and how the collaborative groups’ work has been
put into practice in the case:
a. Storming
b. Forming
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A. Gupta and R. K. Mohapatra
c. Norming
d. Performing
Q3: Do you think that this is a case of collaboration?
Collaboration is an exercise that involves the construction of shared meanings
(Roschelle, 1992). He adds that collaborative interactions enable the convergence of participants’ views through the ‘construction, monitoring and repairing
of shared knowledge’. In this case, we have seen the demonstration of these
interactions through the following steps.
Steps of collaborative interactions:
1. shared goals—organisational and employee productivity, employee engagement
2. symmetry of structure—IDVTs had an independent and well-defined lean
structure
3. a high degree of interactivity—the interactivity was virtual, though not physical
4. and interdependence—this was the backbone of the entire activity
Q4: Is storyboarding the right technique adopted for this intervention by the
protagonist?
Storyboarding has been aptly deployed here because it is a technique used to draw
out responses from students who are typically reluctant to participate in class discussions. An adaption of the concept of brainstorming, storyboarding (Ragon &
Kittleson, 1994) provides the freedom to participants to communicate responses
using pictures and/or words. In a situation when the global morale was going
down, people were locked at homes and did not know what would happen, they
would not resort to a normal method of writing reports/analyses or emails. Hence,
keeping in view the situation, the storyboarding methodology presented the individuals with an opportunity to communicate in any creative way that they wanted
so that they could feel to be an integral part of a group. This has been found to
a. improve participant engagement (Lillyman et al., 2011)
b. increase acceptance of group decisions in a non-threatening way (Barr, 1988)
c. be an effective means to ‘discourage students who monopolise the discussion’
(Davis, 2009)
d. to generate and organise concepts and enhance collaboration (Atkinson, 2011;
Fraser, 2003)
e. to trigger creative processes and critical ways of thinking (Proctor, 2014)
This situation in this case meets most of the context in which the technique has
been deployed and hence, the dramatis personae has rightfully adapted the technique as an effective and innovative means of creativity, sharing ideas and enabling
consensus building (Kolod & Ungar, 2016; Mentzer, 2014).
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
113
Q5: Explore the technology enabled storyboarding in more details.
This technique does the following:
a. Enables teamworking
b. Enables creativity
c. Enables sharing of information
This can be done physically or through a technology-enabled environment. It
involves the following cardinal steps:
1. Generation of solutions/ideas. Working independently, each participant documents all the possible ideas related to the topic. Participants create a separate
slide or page for each possible solution. This is the homework phase of the
process. The facilitator emphasises that the goal is to enumerate as many
ideas/concepts as possible. Students may use virtual platforms for the initial
discussion of thoughts.
2. Group discussion. Each participant explains his/her proposed solution/idea to
the group. This is done so that the group understands the concept behind each
idea, as it is critical for success in the next phase where an appreciation of the
similarities and differences amongst the solutions/ideas would be critical.
3. Sorting. Based on the above discussion, the ideas are sorted into similar
categories and the focus is on finding solutions which cluster on similar concepts. Participants merge the clustered ideas into one so that these can be
communicated further.
4. Group review. After steps 1–3, the group reviews the clustering and decides on
further sorting, adding or deleting ideas/clusters as needed. At every point in
time, the facilitator reminds them of the criticality of timelines.
5. Pare down the solutions. Finally, the group selects a few solutions. This
may happen through a multistage voting process, series of iterations, internal
presentations and conversations.
Q6: What can be the other insights from the case?
The case enlists the design thinking approach to problem-solving, without making
a direct mention of it. The action taken by Singh and the teams is in line with a
typical design thinking method (Mentzer, 2014):
●
●
●
●
Problem definition
Information gathering
Modelling and communication
Generating options
114
A. Gupta and R. K. Mohapatra
● Feasibility of solutions
● Agreeing on the best possible solution.
References
Atkinson, D. (Ed.). (2011). Alternative approaches to second language acquisition. Taylor &
Francis.
Barr, V. (1988). The process of innovation: Brainstorming and storyboarding. Mechanical Engineering: The Journal of the American Society of Mechanical Engineers., 110, 11–42.
Davis, B. G. (2009). Tools for teaching. Wiley.
Fraser, S. W. (2003). Project storyboards: Catalysts for collaborative improvement. International
Journal of Health Care Quality Assurance, 16(6/7), 300–305.
Iyer, P. P. (2020). Case-based learning: A pragmatic approach. Springer.
Kolod, L., & Ungar, B. (2016). A collaborative journey: The learning commons. Teacher Librarian,
43(4), 22.
Lillyman, S., Gutteridge, R., & Berridge, P. (2011). Using a storyboarding technique in the classroom to address end of life experiences in practice and engage student nurses in deeper reflection. Nurse Education in Practice, 11(3), 179–185.
Mentzer, N. (2014). Team based engineering design thinking. Journal of Technology Education,
25(2), 52–72.
Ragon & Kittleson. (1994). Storyboarding: A Program planning tool for health education. Wellness
Perspectives: Research, Theory and Practice, 10(4).
Roschelle, J. (1992). Learning by collaborating: Convergent conceptual change. The Journal of the
Learning Sciences., 2(3), 235–276.
Proctor, T. (2014). Strategic marketing: An introduction. Routledge.
Additional Reading
Arklay, T. (2015). What happened to Queensland’s disaster management arrangements? From
“global best practice” to “unsustainable” in 3 Years. Australian Journal of Public Administration, 74(2), 187–198.
Atkinson, D. (Ed.). (2011). Alternative approaches to second language acquisition. Taylor &
Francis.
Curnin, S. (2018). Collaboration in disasters: A cultural challenge for the utilities sector. Utilities
Policy, 54, 78–85.
Fraser, S. W. (2003). Project storyboards: Catalysts for collaborative improvement. International
Journal of Health Care Quality Assurance, 16(6/7), 300–305.
Harpaz, I. (2002). Advantages and disadvantages of telecommuting for the individual, organization
and society. Work Study, 51(2).
Holmberg-Wright, K., Hribar, T., & Tsegai, J. D. (2017). More than money: Business strategies to
engage millennials. Business Education Innovation Journal., 9(2), 14–23.
Gheaus, A., & Herzog, L. (2016). The goods of work (other than money!). Journal of Social
Philosophy, 47(1), 70–89.
Lai, E. R. (2011). Critical thinking: A literature review. Pearson’s Research Reports, 6, 40–41.
Lamberton, B. (2017). Encouraging participation in a management accounting classroom. Business
Education Innovation Journal, 9(2), 148–155.
Proctor, T. (2014). Strategic marketing: An introduction. Routledge.
Can Collaboration Thrive in a Virtual Environment?—An Enigma!
115
Amit Gupta is General Manager (Skill and Organization Development) at Corporate Office of
Indian Oil Corporation Limited. A winner of Prime Minister’s Gold Medal, Amit is a researcher in
diversity, leadership, and culture. He handles transformational HR initiatives in the organisation.
He contributes to a leading Indian newspaper and magazines regularly on lessons from dilemmas of life. As a storyteller and poet, he delivers talks on All India Radio and has also authored
research papers, management cases and a book on poetry.
Ranjan Kumar Mohapatra is in the Board of India’s largest commercial enterprise and oil
refiner Indian Oil Corporation as Director (Human Resources). Additionally, he is Chairman of
Lanka IOC, a subsidiary of Indian Oil Corporation in Sri Lanka and, Chairman of IndianOil
(Mauritius) Limited, where he had also served as Managing Director. Armed with a vast business knowledge and flair for academia, he is currently promoting empathy and culture-based HR
practices in business management, aiming at the betterment of stakeholders. A widely travelled
person, Ranjan has presented papers and delivered lectures in several national and international
forums and published several articles in international journals and reference books.
Engaging Virtual Teams in Uncertain
Times: A Business Case on Cyient Ltd.
Upam Pushpak Makhecha and Farheen Fathima Shaik
1
Case Opening
This whole COVID has accelerated and brought digitization at doorstep. We would have
taken our own sweet time of another 10 years to reach this point. Yes, the work from the
home environment is going to continue, and interestingly, this gives us an advantage to tap
into talent from multiple locations in India and overseas. Therefore, when I think about
it retrospectively, it surprises me also. However, in my view, adversity always is a test of
character and attitude, and I think that is where we did a fairly good job. I think, quick
enablement to work from home, customer cooperation and the unflagging efforts of our
associates1 made this happen. Therefore, for me, these were the three pillars of our fast
recovery out of the uncertain times.
—Vikram Chimalgi, Vice President, Delivery Head Communications Business Unit,
Cyient Ltd.
For Vikram Chimalgi, the morning of 24 March 2021 was extremely special, as it
was exactly 1 year back that he was asked to lead a specific task force formed to
deal with the COVID-19 pandemic at Cyient. Although a faint reminisce of that
day was enough to send chills down his spine, today he was in an upbeat mood
as the result of never-say-die attitude of associates, and customers’ support which
1
Employees are referred to as associates.
U. P. Makhecha (B)
Indian Institute of Management, Tiruchirappalli, India
e-mail: upam@iimtrichy.ac.in
F. F. Shaik
Assistant Professor (Human Resource Management), XLRI - Xavier School of Management, C H
Area (East), Jamshedpur 831 001 Jharkhand, India
e-mail: farheenfathima.sb@cyient.com; farheen@xlri.ac.in
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_6
117
118
U. P. Makhecha and F. F. Shaik
helped the task force led by him to drive a quick come back for Cyient, much
earlier than expected. As Chimalgi sat preparing for the presentation to the board
members on the developments in the last year and the recovery journey of Cyient
through the thick and thin of this pandemic, he went into a quick flashback to the
day the task force was formed at Cyient headquarters in Hyderabad. Chimalgi’s
flashback had three frames: “from a state of shock or a sudden mess to getting the
whole thing right-first phase of handling the crisis was in the month of March and
April of the last calendar year; second phase was trying to bring some method to
this entire madness, and I call it as the recovery phase and where we are today—
in a stability phase.” Although the comeback today looks promising, there are
two questions that he thinks Cyient needs to plan for in the coming days: first,
should Cyient plan to get the entire workforce back to work from office in the
near future? Second, if the pandemic relapses, what lessons from this crisis could
be incorporated in their response strategy? He plans to put forth these questions
during his presentation to the board of Cyient.
2
Cyient Ltd.2
Cyient Ltd. is a global engineering and technology solution company with its
corporate office located in Hyderabad, India. Established in 1991 as ‘Infotech
Enterprises’, it rebranded as Cyient in 2014 owing to its extensive global operations in engineering, manufacturing, data analytics, and networks and operations.
Cyient employs approximately 15,000+ employees and is located in 58+ locations across the globe grouped under four major geographies, which include Asia
Pacific, India, North America, and Europe. Cyient caters engineering services
to industries such as aerospace and defense, communications, rail transportation, medical technology and healthcare, utilities, navigation, heavy equipment
and industrial, power generation, oil and gas, semiconductor, infrastructure, and
mining. The dominant mode in which Cyient enables functioning across these
business units is by using global virtual teams (GVTs), and it has approximately
1500 GVTs to support its global operations. Despite the pandemic, Cyient continues to show positive financial results,3 and in a news brief4 on 24 April 2021,
Krishna Bodanapu, Managing Director, and Chief Executive Officer of Cyient
commented, “Our performance this year was as per expectations. Despite the headwinds in aerospace, we continued to witness strong momentum in other sectors such
as communications, utilities, and mining.” For the upcoming year 2021–22, he said,
“We have and will continue to make significant investments in key growth areas such
as digital technologies and embedded software.”
2
https://www.cyient.com.
https://www.cyient.com/investors/financial-information/key-financials.
4 https://www.thehindubusinessline.com/info-tech/cyient-posts-103-cr-profit-in-q4-to-hire-2000people-in-current-fiscal/article34393330.ece.
3
Engaging Virtual Teams in Uncertain Times: A Business Case on Cyient Ltd.
3
119
Frame I: A Bolt from the Blue
In March 2020, although Cyient sensed the possibilities of lockdown, the ramifications of a complete lockdown came like a bolt from the blue. According to
Chimalgi, “we did have a sense that we need to start thinking on 5% of our associates
to work from home, we never anticipated a lockdown which will stop everything and
because of the extent of the lockdown, and not just the suddenness of the lockdown,
we had several issues in the beginning.”
The demographics of the workforce went against Cyient, as a large percentage
of them were young (25–30 years), unmarried and came from local cities around
Hyderabad. On announcement of lockdown, a critical part of the workforce (associates) working on sensitive data staying in hostels, dormitories or as paying guest
(PG) arrangements in the city were asked to vacate by their owners as a sense of
‘uncertainty’ loomed large. Before Cyient could spring into action, several associates had migrated back to their permanent place of residence. There was panic
amongst employees, and Ramanand Puttige, Vice President Global Talent Management, Head HR—India & APAC immediately announced several measures to
take control of the situation. Samit Patil, Senior Director HR commented, “I would
say it was little less than panic and lot more than anxiety. Therefore, the first button
of anxiety was on their own safety and that is where we supported them in the right
manner. Our HR team went out in the city and found alternate arrangements for
them to stay.”
For the employees who worked abroad on client sites, their families back home
in India were in panic. The HR team took details of every family, tried to determine how they were and communicated back to the associates who were onsite.
The team worked with various agencies, and as soon as the air bubble for travel
was opened up between countries, they brought associates back even if they had
to book in chartered flights shared by a few companies. The HR was in regular contact with associates across all locations and gave them regular updates on
steps being taken and provided them the opportunity to reach out to their local
HR. A global help desk was set up to take up any query from associates across
the globe, contact details of hospitals were shared, and a daily monitoring system was set to track the safety of associates across the globe. For those who had
challenges getting admitted to hospitals, HR worked with the insurance hospital
network and helped them find COVID bed admission. The HR was also quick to
include COVID cover in the health insurance that was offered by a few health
insurance companies.
Possibly for the first time, Cyient realized the downside of sophisticated IT systems with built features of high security. The complexity was amplified with the
location of offices in the special economic zone (SEZ), which involved seeking
permission from the government to remove even a single cable from the location.
Several engineering solution capabilities of Cyient mandated customer permissibility and confidentiality, which in the majority of the cases lay outside the Cyient
infrastructure. This required the presence of employees ‘on-site’, as the work was
mainly carried out through secure networks. As taking work at the ‘home’ premises
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of the associates was not an immediate possibility, working out an alternative to
work from home became one of the most daunting challenges. Tirath Sapra, Associate Vice President, Head of Facilities & Infrastructure, India explained, “people
had to come to office, so we provided them with the requisite passes talking with the
government, to allow the individuals and the vehicles that they come by. It required
coordination across multiple teams’ setup in India, and we were definitely following all the guidelines provided by the State in terms of thermal screening, wearing
of masks, providing sanitization, social distancing and making sure there was no
crowded place at any point in time. We increased sanitization of buses, facilities, and
improving seating arrangements” (see Exhibit 1).
Interestingly, this phase witnessed a coming together of the functions, blurring
the physical, functional, and psychological boundaries between people. Chimalgi
commented, “together we reflected on what our responses should be and then of
course some of these were finance related responses and some of it were straight
team motivation responses. Some were logistics-related immediate responses, and
you need these to get things done right. We constantly debated how can we deal
with a situation like this? What does it mean from a policy point of view? What
is the employee aspect to it? What is the customer aspect to it?” For instance,
making laptops with appropriate security settings available to associates at their
respective locations involved several functions, such as finance, HR, IT systems,
IT infrastructure, facilities and delivery heads, to come together and jointly work
with breakneck speed. Puttige commented, “so there was symphony and harmony
between all the units. Wherever it mattered, we could share and collaborate.”
The impact of the bolt was magnified for Cyient, as its clients were located
across geographies. Each location witnessed a different experience with the lockdown, as the governments of each location made a series of announcements based
on their national context, which amplified the sense of ‘uncertainty’ in the case of
Cyient. Pallavi Katiyar, Vice President & Head of Global IT Systems & Infrastructure commented, “We did have geo specific teams and because each country had a
very different response to Covid, we had localized the responses in terms of what has
to be done. We were following the customer protocols when we were working out of
customer office and in our (Cyient) locations we worked with specific guidelines from
corporate office.” On the one hand, the team worked on a business continuity plan
(see Exhibit 2) by enabling work from home (WFH) and work from office for the
associates; in parallel, efforts were made to sensitize the customers (both overseas
and in India) to the need for associates to work from home, despite the security
concerns with data. With constant communications on the need to balance the associates’ safety with customer deliverables, several customers responded quickly by
giving permission to work from home, although some of these permissions came
in later. According to Chimalgi, “the customers’ responsiveness and their agility to
our request truly made whole lot of difference. For example, in enabling work for
a telecommunication client, we knew that more than professional responsibility, it
was also our moral responsibility to ensure that the telecommunication networks
globally are working, and if our associates did not do that, somewhere in Australia
or somewhere in the US, the AT&T service providers would be affected. Therefore,
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we identified 500 people whom we had to ensure that they started working to have
business continuity. With all the teams and all the functions working around the
clock, we were able to pull that through in less than a week’s time.”
The focus on forging a strong bond with employees was necessary to handle
the anxiety levels of associates, and HR took center stage by rolling out multiple
short-term policies, such as an additional 14 holidays for associates who contracted the disease; work from home permission for people above 50 years, with
comorbidities and expecting women; an incentive to recognize a person doing
something above and beyond the call of duty; and reimbursements on the cost
of hardware purchased by associates. There were constant communications from
headquarters—broadcast on intranet, on mobile, and email. The line managers
were encouraged to frequently communicate with the associates.
4
Frame II: Cruising Back to Senses
By May 2020, anxiety had peaked among the associates and naturally so, as the
whole world was under turmoil due to the pandemic. Chimalgi, along with his
teammates, had planned concrete steps to make sense of this chaotic ‘uncertainty’
and to ‘bring method to this madness’.
The assurance of ‘no job cuts’ proved to be a large boost to the dispirited
employees. The HR team launched several initiatives—round the clock communications with associates; an immediate reward plan for employees working from
home and from office; no salary cut for the entire period; a bonus for lateral
hires who had quit due to lockdown; and a subsidy on purchasing ergonomically
designed furniture for home. HR had started compensating employees for the challenges they were facing. These included simple policies on reimbursing internet
expenses, providing them with power backup, and further rolling out business continuity program reward schemes. The HR configured its systems and activities in
the lockdown period to start functioning in virtual mode. With the partial opening of lockdown, the team worked towards onboarding and off-boarding in virtual
mode. According to Puttige, “a lot of processes which we had done face to face
were now done virtually wherever it was possible. We quickly moved to the virtual
platform in terms of how to engage. From WebEx, we moved to Microsoft Teams,
which had a more collaborative platform in terms of file sharing and other features.”
By July 2020, Cyient had reached a stage of approximately 98–99% enablement
of work from home.
Empowering the local teams at multiple overseas locations was another crucial decision that helped Cyient handle the crisis and its ensuing uncertainty and
anxiety. As Chimalgi mentioned, “the key for working on uncertainty was empowerment. Therefore, the decision making was left to the teams. On the ground somebody
use to make a decision, then say ok and then we bring that learning back into the
daily connect that we had as a team and then share with the rest so that we can
use that as a solution.” The task force reposed complete trust in the geographically
distributed virtual teams, and the teams reciprocated with similar trust building
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U. P. Makhecha and F. F. Shaik
with the associates and clients at different locations. However, at times, the task
force felt pulled in different directions, such as business continuity, safety, client
relations, and planning for the future (see Exhibit 3 for the tactical, immediate,
short-term response plan).
5
Frame III: Navigation to Steady State
It was not unusual for a company in multiple domains spread across multiple
locations to be impacted by the pandemic. According to Chimalgi, “as a company
we did face a huge impact especially in aerospace which is one of our largest industry
segments, accounting for about a third of our work that we do. In the first 6 months,
the other domains also went down, but as we progressed through the year, I think we
started to come back in most of the business units.”
By August 2020, Cyient had entered the steady state trying to reverse the losses
of earlier phases through productivity gains. Confident of enabling their associates
to work from home, they started with productivity measurement as they realized the need to understand the nature of productivity loss due to internet issues,
power outages, or connectivity provided by the customer, and so forth. Chimalgi
explained, “initially loss was pretty high in the order of double-digit number 10–15%
and gradually it started coming down because people started to get a hang of things.
They also started to compensate for the productivity loss by putting in more effort,
and we also started recognizing and rewarding that in a certain manner. So, I would
say between July, August, September time we were in a situation where I think we
reported pretty fast recovery and we were delivering equal or better than what we
were delivering in the work from office environment.”
Cyient had already started putting short-term policies in place, which were
reviewed every quarter. As the situation was dynamic and things were in constant flux, the focus was on here and now. The shift restrictions were relaxed,
and training programs were put in place to train managers on how to manage and
engage the remote working team and how to identify stress factors and manage
those stress factors. One positive aspect of COVID was that people could be trained
by trainers from the US, the UK, and across the globe on multiple topics as the
training programs were converted into virtual programs. The HR team launched
special social online competitions involving family members and ‘no Wednesday
meetings’ for employees to detox from online time. Although the engagement of
employees working from multiple locations was a challenge, Cyient handled it
with care. According to Patil, “we initiated the engagement programs which were
virtual. We had teams in respective geographies who were running this. In one location, the team connected grandparents with grandchildren on a virtual program.”
Few associates shared the success stories and posted videos of the heroic deeds of
employees in helping Cyient tide over the troubled waters. The associates’ commitment was reflected in their efforts to ensure that the impact of the pandemic on
business was minimized.
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Interestingly, Cyient also utilized this ‘uncertain’ time to overhaul its systems
and processes, including an organizational restructuring exercise. According to
Puttige, “we said we will use this as a pit stop. So certain things which are slowing
down we can use this time to reflect on how we are doing, what can we do better right
and why don’t we reflect on entire organization itself and see how we can become
more efficient?” Cyient worked on multiple aspects of organizational functioning including—budgeting practices, new operating mechanisms, moving people
around to get opportunities for becoming business heads, improving efficiencies
and capability building.
However, the digital fatigue had set with associates yearning to return to work at
office or client sites. It had been long a time that they were contained in the house,
couldn’t go anywhere and still had professional obligations to carry out. Cyient
felt that it was important to engage virtually with their workforce, and Cyient
customers also participated in this process to appreciate the team.5 Cyient put in
programs to address the mental health of employees across multiple countries and
enforced the availability of counselors. Few doctors and ophthalmologists held
sessions on correct posture, the way to sit, how long to sit, eye exercises, and
physical exercises. Efforts to engage them in social activities involved celebrations
during Dussehra and Diwali festivals with singing and dance competitions and
even the customer’s organization opened drawing competitions for the children of
Cyient associates. The drawings were displayed on their virtual intranet board, and
prizes given (see Exhibit 4 for the strategic, short, medium-term response plan).
6
Safety, Enablement, and Engagement
During the pandemic period, the HR team was continuously on its toe in managing
and engaging GVTs with a three-pronged strategy focused on associates’ safety,
enablement, and engagement. Safety was the number one priority and they kept
monitoring advice from the World Health Organization (WHO) and local government and implemented the protocols on a real-time basis. WhatsApp groups were
created to send circulars and multiple communications. A global helpdesk was set
up; the work from home was enabled; laptops were delivered; facilities were regularly sanitized, and transport arrangements were made including getting approval
from local agencies that took immense toll to keep the critical work ongoing.
For associate enablement, the HR team had to immediately move from less than
2% to more than 90% of associates to work from home, and in almost 5 weeks,
they had touched 93%. The HR team acted as a connecting bridge between the
procurement team and the facilities team. The procurement team went out of their
way to locate and source laptops. The next big challenge was to locate the associates who had vacated their rooms/hostels and deliver these laptops, dongles, etc.,
5
Link to one video: https://www.linkedin.com/posts/cyient_lockdown-covid19-activity-665112
1186086449152-5m6L.
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U. P. Makhecha and F. F. Shaik
to their homes under lockdown. As the work from home involved drastic changes,
the HR team had immediately set up certain guidelines and e-training modules to
communicate—what work from home was, what kind of liberty they had, how they
should conduct in online mode, etc., to build a common understanding of what the
new arena meant for all. As work from home was challenging, the managers developed a common understanding to be more empathetic, knowing that at home, there
are going to be different situations and challenges. On-boarding, reboarding, and
off-boarding were moved to the online version. According to Puttige, “for putting
together all these, our HR ops team worked very quickly. I think mid-April onwards
all our trainings also resumed, and we immediately moved to a virtual instructor led
training. Our learning management system (LMS) started having lots of traffic. The
response of the training team was pretty quick.”
For associate engagement, the employee assistance program was set up immediately, and HR team was proactive in obtaining consultation services for every
woman who was on maternity leave or was in different stages of pregnancy. Multiple consulting teams were set up across all global locations to address associates’
anxiety and apprehension. The HR team made clear communications that the organization would support them in all situations and that they need not worry. Family
members of associates working outside India were contacted personally (telephone
calls made to approximately 600 plus families) and were informed that the situation was being monitored, giving assurance of bringing them back at the earliest.
Additionally, senior leadership connected at multiple locations to make the associates feel comfortable with the new situation. The leaders spoke at their locations,
and the HR team arranged for virtual town halls for any concerns to be raised and
any questions to be resolved.
7
Incorporating Lessons for Future
As the saying goes, ‘never waste a good crisis’, Chimalgi started listing down the
points to include in the list of lessons from the pandemic to be included in his presentation, which would make Cyient more resilient in future. He realized that the
pandemic busted two myths that Cyient had held for a long time: first, employees of engineering organizations cannot work from home, and second, Cyient’s
disaster recovery plan (DRP) or business continuity plan (BCP) were robust.
Although from the employee perspective, Cyient had been mulling over the
option to work from home for the past few years, it never appeared to be a possibility from the customer perspective. Chimalgi explained, “Our work from home
ability before the pandemic was <2%. The reason is because Cyient is an engineering
company that works very closely with customers. We work in their environment. The
Information Technology work is very integrated, and the IT security is very tight.
We have secured networks, and hence, there was no need to have the work from
home flexibility. I worked in various organizations, and it’s not about Cyient, but
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125
every engineering organization believed until March 2020 that work from home is
for coders and developers who have laptops, and can sit anywhere in Starbucks café
and work from anywhere, and that is not possible for somebody who is designing
the turbine or an aircraft or communication system. However, I think that myth is
busted. We lived in that myth for a long time. In hindsight, if we would have challenged that myth and had a better work from home propensity to begin with, it could
have accelerated our recovery.” Therefore, Chimalgi wanted to check with Puttige
if the work from home (WFH) would lead to changes in workforce recruitment and
talent management strategy and the implications that WFH would have on various
HR policies and practices such as attendance, leave, SEZ compliances, etc.
As Chimalgi finalized the presentation, he asked Puttige to join, and both of
them ran through the presentation and the questions that Chimalgi had intended to
put to the Board. As they moved towards the meeting room, Puttige voiced two
more aspects that Cyient would have to consider from the HR perspective:
1. Would the short-term policies used to empower GVTs during the pandemic
cause conflict in the long term?
2. Would mental health issues arising from GVTs distributed in WFH configurations need special attention?
Exhibit 1 Pictures of facilities ramped up post-COVID at Cyient
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U. P. Makhecha and F. F. Shaik
Exhibit 2 Business Continuity Framework
Source https://www.cyient.com/blog/corporate/disciplined-and-resilient-approachdelivers-results-in-this-rapidlyevolvingenvironment
Exhibit 3 Tactical, Immediate/Short-Term Response Plan
Source
https://www.cyient.com/blog/corporate/leadership/navigating-covid-19and-emerging-stronger-lessons-for-leadership
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127
Exhibit 4 Strategic, Short/Medium-Term Response plan
Source
https://www.cyient.com/blog/corporate/leadership/navigating-covid-19and-emerging-stronger-lessonsforleadership
Appendix: Teaching Note
Engaging Virtual Teams in Uncertain Times: A Business Case
of Cyient Ltd.
Case Synopsis
Cyient Ltd. is a global engineering and technology solution company with its
corporate office located in Hyderabad, India. Established in 1991 as ‘Infotech
Enterprises’, it rebranded as Cyient in 2014 owing to its extensive global operations in engineering, manufacturing, data analytics, and networks and operations.
Cyient employs approximately 15,000+ employees and is located in 58+ locations across the globe grouped under four major geographies, which include Asia
Pacific (APAC), India, North America (NAM), and Europe (EMEA). The dominant mode in which Cyient enables the functioning across these business units
is through global virtual teams (GVTs), and it has approximately 1500 GVTs.
However, COVID-19, which compelled India to announce a nationwide lockdown
taking effect from 25 March 2020, triggered a sudden ‘uncertainty’ for Cyient
as an organization and for employees in particular. This uncertain context of the
COVID-19 pandemic added further complexity to the existing challenge of engaging employees in GVTs. In the pre-pandemic time, the GVTs at Cyient coexisted
with the collocated teams, however requiring specialized managerial and team
skills to address the GVT challenges. However, due to the pandemic, all the teams
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U. P. Makhecha and F. F. Shaik
(both collocated and GVTs) were ‘forced’ to be configured virtually, thus creating
an unforeseen and drastic change in organizational context. While the earlier collocated team members now co-worked virtually, due to the pandemic, those team
members who were earlier structured in GVTs were now required to work from
their homes (they were earlier working from client or various firm locations), thus
adding another layer of complexity to the existing challenging situation for Cyient.
The case maps the ways in which Cyient was able to progress through uncertain
times.
Teaching Objectives
The case examines the role of the HR function in engaging and sustaining the productivity of approximately 1500 virtual teams at Cyient. The teaching objectives
of this case study are six-fold. First, this case study provides an opportunity to
understand the face of uncertainty experienced by a global organization such as
Cyient. Second, it intends to elucidate the drivers of employee engagement during
times of uncertainty in virtual teams. Third, this case study sheds light upon the
process of building resilience during times of uncertainty and shifting towards the
‘new normal’ while sustaining the levels of engagement across the employees and
productivity across various business units. Fourth, it analyzes the transition using
the ‘paradox navigator’ lens as given by Ulrich et al. (2017). Fifth, it elucidates
the ways in which change was managed by Cyient using the change management models given by Kotter (1995). Finally, it helps understand the vital role of
communication in fully virtual teams vis-à-vis collocated or partially virtual teams.
Learning Objectives
The case helps to understand the role of HR in organizational transition during
uncertain times, specifically when the organization has global virtual teams as
its dominant form of organizing its work. Through the experience of a global
organization’s response during the COVID-19 pandemic, the case unfolds the significance of the HR function in making an organization resilient by designing HR
strategies that contribute to organizational survival. At the end of the case discussion, students should be able to view the situation of crisis through the following
lenses:
a. Engaging the employees distributed as members of global virtual teams during
uncertain times;
b. Resilience as a way of managing through an uncertainty;
c. Viewing the uncertainty through the lens of a paradox navigator;
d. Change management during uncertainty; and
e. Communication in fully virtual global teams.
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129
Positioning of the Case
This case study can be used in the following programs to facilitate topics on
managing under uncertainty, global virtual team dynamics, employee engagement,
resilience, change management, HR strategy, and policies and its alignment to
corporate strategy.
1.
2.
3.
4.
OB&HRM courses in management programs (ePGP, PGP, PGPX);
Executive education programs in HR functional excellence;
Risk/uncertainty and change management programs; and
Virtual team dynamics programs.
Case Questions and Suggested Time Frame
The questions below will allow the students to prepare for class discussion.
1. What did the business leaders at Cyient do to reduce the ‘uncertainty’ that GVT
members faced in the context of the pandemic?
2. What HR strategies and policies did the HR function at Cyient adopt to enable
higher engagement of GVT members in the COVID-19 pandemic situation?
3. How did the business leaders and HR function at Cyient enable the building
of resilience throughout the process of handling the uncertainty due to the
pandemic?
4. What were some of the lessons Cyient learnt from these uncertain times?
5. How do you think Cyient was able to manage the change during these uncertain
times?
6. What were the different communication strategies used by Cyient during this
time (fully virtual) in comparison to the pre-pandemic times (partially virtual)?
7. Going forwards, how should Cyient handle the concerns expressed by Head
HR on work from home (WFH) aspects?
Case-wise Analysis/Responses by Authors Along with Relevant
References
1. What did the business leaders at Cyient navigate through multiple paradoxes
and reduce the ‘uncertainty’ that GVT members faced in the context of the
pandemic?
After the students have pre-read Ulrich et al. (2017), they should be able to map
the paradoxes faced by the HR function and the leaders at Cyient. For example,
the paradox of sustaining business continuity in a period of shutdown/lockdown
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focuses on hard aspects of business productivity (task focus) along with softer
aspects of employee well-being (relational focus). The mapping of the same is to
be done by the student while reading the case. Refer to Table 1 for mapping.
We can thus observe that the stages given here are similar to the phases that
were used to navigate the uncertain situation by Cyient business leaders. Phase I
included looking into the internal resources and optimizing the same for understanding the situation completely. Although there were recovery and business
continuity plans in place, the dynamics of the business model of Cyient made
it very complex.
Table 1 Stages of paradox management
Stage
Action
Implication
Leader role
1. Ignorance
Refer to Frame I
(March–April 2020)—in
the initial stages, it was
difficult for the Cyient
leaders to accept the
breadth and reach of the
pandemic and thus they
did not plan enough
The situation hit like a
bolt. Cyient realized
that the reality of
pandemic was worse
than they had imagined
The Cyient leaders
were hopeful that the
business continuity
plan (BCP) and
disaster recovery plan
(DRP) would work as
alternatives
2. Denial
The leaders realized the
hit to the business (hard
aspect) but they focused
on the soft aspect
(relational) as several
employees were left in
lurch to find a place for
themselves as the
landlords asked them to
vacate immediately and
few had to leave for
their home. Cyient took
several actions to ensure
the safety of their
employees and reducing
the panic created by the
pandemic to employees’
lives and their families’
lives
Although the mindset
The task force was
was fixed on soft
formed to handle the
aspects (e.g., “focus on pandemic
forging strong bond
with employees was
necessary to handle the
anxiety levels of
associates and HR took
center stage”) in the
beginning, nevertheless
a task force was formed
to minimize the impact
on business
3. Spatial splitting Refer to Frame II
(May–July 2020). The
task force focused on
business enablement
and recovery and HR
function took charge of
employee safety and
well-being and
configured for working
in complete virtual
mode
The suboptimization
was not witnessed as the
task force was
cross-functional and
hence the silos/parts
were less sub-optimized
The cross-functional
nature of task force
“witnessed a coming
together of the
functions, blurring the
boundaries-physical,
functional and
psychological”
(continued)
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131
Table 1 (continued)
Stage
Action
Implication
Leader role
4. Temporal
splitting
This temporal splitting
was witnessed as Cyient
initially focused on soft
aspect (relational) in
Frame I and II and then
hard (business) in Frame
III (August 2020–March
2021) e.g., “By August
2020, Cyient had
entered the steady state
trying to reverse the
losses of earlier phases
through productivity
gains,” although the gap
was less
The initial efforts on
soft aspects were taking
away all the time and
energy, but in
uncertainty and panic,
this was important. The
parallel work had
started on business
recovery
The leaders knew that
employee safety and
assurance from the
family will help them
get back on track in
business and this
worked as employees
put in hard work in
later stages when the
virtual teams were
empowered to take
local decisions
5. Small
adjustments
In Frame II, various
adjustments were made
(e.g., “Empowering the
local teams at multiple
locations was another
crucial decision which
helped Cyient in
handling the crisis and
its ensuing uncertainty
and anxiety”)
The learning from
across the organization
was shared (e.g., “we
bring that learning back
into the daily connect
that we had as a team
and then share with the
rest so that we can use
that as a solution”)
Cyient was able to
take steps on both
business enablement
and employee
well-being. In
addition, further
strengthen its HR
processes and
organization
restructuring
6. Transcending
paradox
In Frame III, Cyient
explored creative ways
to resolve the
uncertainty and improve
efficiency in the
organization
Cyient was able to
Cyient leaders were
manage the dual aspects able to navigate the
of business continuity
paradoxes
and focus on employee
well-being. It used this
to create future ready
organization (e.g.,
“Interestingly Cyient
also utilized this
‘uncertain’ time to
overhaul its systems and
processes including an
organization
restructuring exercise”)
Source Ulrich et al. (2017)
The second phase involved the understanding of the complexities and bringing
the method to the chaotic situation. This included the business and HR leaders of
Cyient empowering the managers along with making adjustments to their existing business models to suit the uncertain situation. The third stage involved the
steps taken by Cyient in phase III to stabilize the uncertain situation. The stability
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phase was seen to be effective in terms of productivity, thus balancing the loss of
productivity in the earlier phases.
2. What HR strategies and policies did the HR function at Cyient adopt to
enable higher engagement of GVT members in the COVID-19 pandemic
situation?
The five drivers of employee engagement in virtual teams are cultural intelligence,
informal communication, technology, trust (team), and team maturity (Shaik &
Makhecha, 2019). Each of these drivers could be traced in different phases of
crisis management by Cyient. The student can be asked to give examples of how
each of these drivers manifested in the three phases.
Cultural context sensitivity—As the lockdown was announced in different parts
of the world with differing restrictions and different ways of functioning, along
with varied government regulations and guidelines, Cyient handled the same by
empowering the local teams (including clients) and their managers to take actions
in the local context that they deemed necessary for reducing the impact felt as an
organization. All the resources required for the same were given at their disposal.
This allowed the localized teams in various countries to take action without going
through the hierarchy at a global level. This also allowed for the creation of localized policies by the business heads in various countries and the HR heads so that
the transition of work and handling of employee concerns happens as smoothly as
possible.
Team trust developed due to the empowerment of managers across the teams and
due to the formation of cross-functional teams. It was seen that cross-functional
trust was an integral part in enabling coordination across the functional units of IT,
logistics, delivery, and HR. In addition, certain HR policies that include ‘no fire
policy’ during the trying times, helping the associates with their accommodation
and travel situation, keeping the well-being of associates as the utmost priority,
etc., all contributed to building employee trust in HR and Cyient.
Constant communication of leadership and senior management with the associates was seen to drive trust among the associates, thus reducing the levels of
anxiety and panic across the staff and enabling their focus on organizational productivity. In addition to the formal emails and mailers across the organization,
informal forms of communication were encouraged to keep the engagement levels
higher across the teams. Not only the Cyient managers but also the client organization managers were actively involved in communicating with each associate
either one on one or in team conference calls, speaking to them informally and
maintaining personal touch.
Technology formed a base for enabling the work structure of work from home
for all associates. Higher user-friendly technology was replaced with the existing
applications for communicating and making the WFH experience seamless. WebEx
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133
was replaced with Microsoft Teams, WhatsApp was used as a form of communication, and mailers and calls were scheduled as needed. Furthermore, technology
hardware, such as laptops, computers, and seating equipment, was sent to the associates’ houses amidst the nationwide lockdown through reliable logistic sources.
Associates also went a step forward by making efforts to collect the equipment
at the locations and minimizing the complications for Cyient as much as possible. The HR function quickly shifted to using the virtual mode for recruitment,
selection, training, and employee communications in a seamless manner.
Team maturity was seen both at the management and the associates’ end. The
empowerment of managers, along with the formation and smooth functioning of
cross-functioning teams, helping out the associates for their housing and accommodation when in need are some of the examples. The quick adoption of associates
working earlier in a predominantly collocated structure towards online working
and working from home are examples of maturity from the associate’s end. The
families supporting the associates, along with client teams helping associates with
the function, helped the teams cope with the crisis situation.
3. How did the business leaders and HR function at Cyient enable the building
of resilience throughout the process of handling the uncertainty due to the
pandemic?
After going through the pre-read by Barton and Kahn (2019), the student should
be able to map the course Cyient took during the pandemic across the resilience
trajectory. Students should be able to identify that the case focuses more on
resilience, and hence, the brittleness trajectory is not within the scope of this case
study. Furthermore, students may be asked to map the situations in the three phases
that enabled the resilience trajectory at Cyient. Examples are given in Table 2.
Organizational resilience helped Cyient to navigate the uncertain situation. This
was enabled by the alignment of 7S (Strategy, Structure, Systems, Skills, Staff,
Style and Shared Values). The instructor may refer to the 7S framework given by
McKinsey in case time permits.
4. What do you think are some of the lessons Cyient has learned to be
incorporated during the uncertain times?
One of the most important lessons was the realization of the possibility of employees of an engineering service organization working from home (WFH). The WFH
switchover was performed by maintaining the integrity and confidentiality of
customer requirements and the products. However, one needs to take into consideration the degree to which WFH is made possible by organizations belonging
to multiple industries with varied policies and procedures. The students can go
through an additional reading by van der Lippe and Lippényi (2020),6 where it is
suggested that entire teams working from home might not be as instrumental to
the productivity of the team as an individual team member working from home.
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U. P. Makhecha and F. F. Shaik
Table 2 Adapted from Barton and Kahn (2019)
Mapping across Frames I, II, and III
Resilience trajectory
Crisis situation
Interruption
Group defusing of anxiety
Adversity creates strain in
the group
Because of the extent of the
lockdown, and not just the
suddenness of the lockdown, we had
several issues in the beginning
Members experience
anxiety
I would say it was little less than
panic and lot more than anxiety.
Therefore, the first button of anxiety
was on their own safety...
Distress signals sent
The ramifications of a complete lock
down came like a bolt from the blue
The impact of the bolt was
magnified for Cyient as it had its
clients located across geographies
Group shifts from task to
relational focus
The HR was in regular contact with
associates across all locations and
gave them regular updates as to
what steps were being taken, what
was the status and provided them
opportunity to reach out to their
local HR
Members actively attend,
validate, and help make
sense
Possibly for the first time Cyient
had realized the downside of
sophisticated IT systems with
in-built features of high security.
The complexity was amplified with
the location of offices in special
economic zone (SEZ), which
involved seeking permission from
the government to remove even a
single cable from the location
Anxiety acknowledged,
defused, and processed
among members
Chimalgi along with his teammates
had planned concrete steps to make
sense of this chaotic ‘uncertainty’
and to ‘bring method to this
madness’ as anxiety had peaked
among the associate
A lot of processes which we had
done face to face were now done
virtually wherever it was possible.
We quickly moved to virtual
platform in terms of how to engage
(continued)
Engaging Virtual Teams in Uncertain Times: A Business Case on Cyient Ltd.
135
Table 2 (continued)
Mapping across Frames I, II, and III
Resilience trajectory
Individuals share stories of On the ground somebody use to take
experience with adversity
a decision, then say OK and then we
bring that learning back into the
daily connect that we had as a team
and then share with the rest so that
we can use that as a solution
Members enact and accept
complex identities
The task force had reposed complete
trust in the geographically
distributed virtual teams and the
teams reciprocated with similar trust
building with the associates and
clients at different locations.
Although at several times, the task
force felt being pulled in different
directions such as business
continuity, safety, client relations,
and planning for future
Relational repair
Members engage in
learning conversations to
identify and correct
affected relations
The associates’ commitment was
reflected in their efforts to make
sure that the impact of pandemic
was minimized on business
Cyient felt that it was important to
engage with their workforce and
engagement sessions over the video
calls helped a lot
Group resilience
Group is cohesive, able to
coordinate, and draw on
collective resources for
problem-solving and
sense-making
But as we progressed through the
year, I think we started to come
back in most of the business units
We said we will use this as a pit
stop. So certain things which are
slowing down we can use this time
to reflect on how we are doing, what
can we do better right and why
don’t we reflect on entire
organization itself and see how we
can become more efficient?
The second lesson included the need to test the robustness of the business continuity plan (BCP) and the disaster recovery plan (DRP). Although these plans
are included in most organizations for several statutory reasons, it became clear
that these plans need to be tested on larger representative samples to inculcate
preparedness across the organization. Few other lessons that can be highlighted
include (a) importance of teamwork and collaboration across functions; (b) role
136
U. P. Makhecha and F. F. Shaik
of relational pause in building resilience; (c) need of candid and constant communication; (d) continuous focus on employee engagement; (e) forging trusting
relationships with customers; and (f) top management commitment.
5. How do you think Cyient was able to manage the change during these
uncertain times?
The students can be directed towards Kotter’s (1995) eight-step model of change.
Drawing from this paper and his book ‘Leading Change’ 2012 edition, the eightstep model mapping in the context of Cyient is depicted in Table 3.
Table 3 Adapted from Kotter’s eight-step model of change (Kotter, 1995, 2012)
1. Create urgency
The urgency of the situation was created due to the external
environment in the form of the COVID-19 pandemic. Cyient
was proactive in anticipating the urgency and trying to put the
systems in place. However, the organization was caught
off-guard with the sudden nation-wide lockdown announced by
various countries across the globe including India
2. Form a powerful coalition After the urgency was created, Cyient formed a powerful
coalition by bringing together and coalescing various functions
across the organization including IT, Delivery, Logistics, and HR
to form a task force to handle the pandemic
3. Create a vision for change The task force chalked out the future plan and Cyient leadership
created a vision for change with an immediate short-term tactical
plan (Exhibit 3) followed by strategic mid-term plan (Exhibit 4)
4. Communicate the vision
This vision was enabled by constant communication by the
immediate managers and across the leadership. Nonverbal forms
of communication were sent across the organization through
posters, blogs, and well-being information
5. Empower action
HR played an important role in settling down the associates in
their locations, and thus reducing the panic among associates
who were living in dormitories and as paying guests. This led to
increased credibility of the HR function across the organization.
In addition, the leadership and senior management enabled the
empowerment of direct managers as they were the first points of
contact for the associates and could handle the problems close to
the ground
6. Create quick wins
Bringing together the associates, managers, and leadership for a
common cause of getting the business going included a larger
win which was a coalition of multiple smaller wins across the
time period based on security, enablement and delivery
management (Exhibit 2)
7. Build on change
Several innovative HR policies were launched to handle the
pandemic situation. New training and engagement initiatives
were launched. These included multiple motivation and
creativity enhancing sessions for the associates and their families
8. Make it stick
Cyient utilized the opportunity to restructure itself for future
Engaging Virtual Teams in Uncertain Times: A Business Case on Cyient Ltd.
137
6. What do you think are the different communication strategies Cyient used
during this time (fully virtual) in comparison to the pre-pandemic times
(partially virtual)?
Due to the onset of the pandemic with complete uncertainty, Cyient had to shift its
workforce from a collocated or partially virtual to a completely virtual space. Marlow et al. (2017) conceptualize a framework of communication in virtual teams.
The framework emphasizes the ways in which various aspects of communication
affect team outputs. Due to the pandemic, there has been an extensive change in
the frequency of communication in each phase along with the quality of communication and content of communication. The various forms of communication
used in the form of posters, emails, phone calls, zoom calls, calls from medical professionals, and clients made the difference in the ability of Cyient as an
organization to promote trust among its members, which helped in coping in the
trying times faster. The students can be asked to map the frequency, quality, and
content of communication in each phase and to find evidence on how the performance balanced out over the three phases along with the viability and satisfaction
of associates. Each of these components, although different in each phase, can be
said to be progressive towards faster recovery and enablement of managing change
in uncertain times.
7. How do you think Cyient should handle concerns expressed by Head HR on
WFH aspects?
Ultimately, students can be asked to express their views on how Cyient could
handle three aspects of WFH, as mentioned in the case:
a. Should Cyient get the entire workforce back to office at the earliest and use
WFH as a make-shift arrangement for uncertain times? Or should Cyient adopt
a hybrid model as a permanent feature of work design?
Although Cyient has adopted a hybrid model for the time being, in the long
run, they are keen to maintain the proportion of WFH to a minimal as the
company is heavily focused on innovation and collaboration, which is impacted
by a WFH design.
b. Should the short-term policies announced to empower GVTs during the
pandemic be reversed once the situation normalizes?
The Cyient is witnessing a conflict between the short-term policies
announced during the pandemic and the long-term existing policies, e.g.,
the selective productivity incentives announced as a short-term measure are
clashing with the long-term incentive plans.
c. Should Cyient pay special attention to the mental health issues aggravated in
GVTs that were earlier working from office but now are working from home?
Yes. The Cyient is working aggressively in handling mental health issues.
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U. P. Makhecha and F. F. Shaik
The instructor may refer to the readings by Pearson and Clair (1998), Ererdi et al.
(2020) to drive the discussion.
Suggested Readings
Barton, M. A., & Kahn, W. A. (2019). Group resilience: The place and meaning of relational
pauses. Organization Studies, 40(9), 1409–1429.
Kotter, J. (1995). Leading change: Why transformation efforts fail. Harvard Business Review,
73(2), 55–67.
Kotter, J. P. (2012). Leading change. Harvard Business Press.
Van der Lippe T, Lippényi Z (2020) Co-workers working from home and individual and team
performance. New technology, work and employment 35(1):60–79
Marlow, S. L., Lacerenza, C. N., & Salas, E. (2017). Communication in virtual teams: A conceptual
framework and research agenda. Human Resource Management Review, 27(4), 575–589.
Pearson, C. M., & Clair, J. A. (1998). Reframing crisis management. Academy of Management
Review, 23(1), 59–76.
Shaik, F. F., & Makhecha, U. P. (2019). Drivers of employee engagement in global virtual teams.
Australasian Journal of Information Systems, 23.
Ulrich, D., Kryscynski, D., Ulrich, M., & Brockbank, W. (2017). Leaders as paradox navigators.
Leader to Leader, 2017(86), 53–59.
Waterman, R. H., & Peters, T. J. (1982). In search of excellence: Lessons from America’s best-run
companies. New York: Harper & Row.
Additional Readings
Ererdi, C., Nurgabdeshov, A., Kozhakhmet, S., Rofcanin, Y., & Demirbag, M. (2020). International
HRM in the context of uncertainty and crisis: A systematic review of literature (2000–2018).
The International Journal of Human Resource Management, 1–39.
Kahn, W. A., Barton, M. A., Fisher, C. M., Heaphy, E. D., Reid, E. M., & Rouse, E. D. (2018). The
geography of strain: Organizational resilience as a function of intergroup relations. Academy of
Management Review, 43(3), 509–529.
Ulrich, D., Kryscynski, D., Ulrich, M., & Brockbank, W. (2017). Competencies for HR professionals who deliver outcomes.
Williams, T. A., Gruber, D. A., Sutcliffe, K. M., Shepherd, D. A., & Zhao, E. Y. (2017). Organizational response to adversity: Fusing crisis management and resilience research streams.
Academy of Management Annals, 11(2), 733–769.
Upam Pushpak Makhecha is an associate professor in the area of Organizational Behavior and
Human Resource Management at IIM Tiruchirappalli. She has completed her Fellow Program in
Management (FPM) from Indian Institute of Management, Bangalore. She holds an MBA (specialization in HR) degree from Faculty of Management Studies, University of Delhi and a Master’s
degree in Psychology from Barkatullah Vishwavidyalaya. She has served with the Indian Navy
for 9 years and also has 2 years of experience in corporate HR. Her areas of research interest are
strategic human resource management, multi-level research in HRM, group statics and dynamics,
and sustainable human resource management.
Engaging Virtual Teams in Uncertain Times: A Business Case on Cyient Ltd.
139
Farheen Fathima Shaik is an assistant professor in the HRM area at XLRI Jamshedpur. Prior
to that, she worked as an L&D Consultant at Cyient, Ltd. She completed her PhD at the Indian
Institute of Management Tiruchirappalli. Her thesis work was focused on understanding employee
engagement in global virtual teams. She holds an MBA (OB and HRM specialization) from Pragati Mahavidyalaya, Osmania University. She was a part of the faculty development program (HR
specialization) at IIM Ahmedabad. Her areas of research interest include the context of technology
at work, new forms of working, virtual organizations, virtual teams, their structure and culture,
sociomateriality, and surveillance. She has published research papers in journals of repute, and
her research papers have been accepted at international and national conferences.
Paradeep Phosphates Limited’s Story
of Inclusive Growth and Harmony:
A Case Study
Mousumi Padhi
1
Introduction
It was a pleasant winter evening at the seaside town of Paradeep in January 2021.
Jagannath Khuntia, the General Manager (HR) at Paradeep Phosphates Limited
(PPL), was returning from the dinner hosted for the employees of PPL to celebrate
PPL’s receipt of the Best Brand Platinum Award in corporate excellence in the
large industry category. This award was in recognition of the excellent overall
working culture of the organization. The award became even more prestigious as
it recognized efforts beyond just regulatory and legal compliances and was also
for the best effort in COVID management.
Over dinner that evening, Ranjit Singh Chugh, the Chief Operating Officer
of PPL, who himself had been adjudged as the best COO for corporate excellence, congratulated the GM (HR) “Jagannath, you seem to be on a winning
spree, your HR team is getting us more and more accolades for its people management practices.” He was referring to the first prize for HR best practices in
union-management relationship received in 2020. Khuntia on his drive back home
was reflecting upon the long journey and the efforts that got them there.
Set in a rich industrial town with a number of companies, such as IFFCO,
IOCL, Paradeep Port Trust, etc., competition for labour and comparisons over
work practices and wages were only natural. However, it led to challenges leading
to labour disputes, flash strikes and stoppage of work, impacting the production
and productivity of the organization. PPL had a history of flash strikes even for
the smallest of issues, such as delay in wage agreements, registering for biometric
attendance, quality of food in the canteen, etc. He reminisced of one such instance
M. Padhi (B)
School of Human Resource Management, XIM University, Bhubaneswar, India
e-mail: mousumi@xim.edu.in
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_7
141
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M. Padhi
with regard to wages, where IOCL as a PSU had higher minimum wages. IFFCO
followed a common collective bargaining agreement for all five plants across the
country. Not surprisingly, the wage rates for IFFCO and IOCL were higher than
the locally prevailing wage rates, which led to a strike at PPL. Without the HR
interventions and practices, it would not have been possible to reach their current
state. Since 2017, there had been no loss of man-days due to labour strife and
strikes, and that was quite an achievement (see Exhibit 2).
2
Background of Paradeep Phosphates Limited
Paradeep Phosphates Ltd. (PPL) is a leading fertilizer company with an annual
turnover of Rs. 5,500 crores. It was incorporated on 24 December 1981 with an
installed annual capacity of 1,200,000 metric tonnes of Diammonium Phosphate
(DAP) and other phosphatic fertilizers. At one point in time, it became a fully
owned government of India unit. However, after the disinvestment process in 2002,
the Indian government now has only 19.55% of shares. The rest of the shares are
held by Zuari Maroc Phosphates Pvt Ltd, a joint venture between the Adventz
group company, Zuari Agro Chemicals Ltd. and Maroc Phosphore S.A., a wholly
owned subsidiary of OCP, Morocco. Despite its disinvestment from the government, PPL continues to be guided by its earlier mission of improving agricultural
productivity and betterment of the farming community.
PPL has an employee strength of nearly 3,000 employees, with approximately
947 employees on its rolls and another 1800 contract workers. The workforce is
represented by five major unions (see Exhibit 1).
PPL continues legacies of an era. The legacy spills over from its days of inception of being a joint venture company, subsequently a fully owned PSU, later as
part of the K K Birla group of companies and now its status under the umbrella of
the Adventz group of companies. Its history and legacy have had a great influence
on the workers and have shaped the union-management relations at PPL.
3
Human Resource Team
A team of people from the human resource, industrial relations, administration and
safety departments at PPL were known as Team HR at PPL. The employees of the
different functions work together seamlessly. It is perhaps this symbiotic relationship among the different functions towards the HR function that has not only
helped build the relationship but also helped the business grow in a transparent
and sustainable way.
Paradeep Phosphates Limited’s Story of Inclusive Growth and Harmony …
4
143
Interventions and Initiatives by the HR Team
Since 2017, the HR team started certain initiatives to bridge the gap between workers, their representing unions and management through a cohesive approach with
the available resources. The team set itself a deadline of 3 years.
The team had a tough task cut out for them. The barriers and challenges in front
of them were the inter union rivalry, difference in wages of the regular employees
and contract labourers, lack of trust of unions and the workers on management,
non-implementation of agreed points, wage comparison with the neighbouring
industries, resistance to flexibility in working at different plant locations and the
ageing workforce (average age of contract workers was 52 years, and the average
age of the regular workers was 47 years).
At PPL, initiatives targeted at major changes have been supported and implemented. Resources were never stated to be a constraint. This was an essential
philosophy behind the success of the interventions, as most of the resources
required were financial and budgetary in nature. Any additional requirements were
provided unconditionally by the management. For instance, earlier during festivals
and pujas, a number of Puja Pandals would be set up by the different trade unions
and groups of employees within the plant. To provide a common platform, it was
decided to set up a common Puja Pandal with the entire costs towards construction of the Pandal being borne by the plant. Everyone from the workers, officers,
general managers to the head of the institution celebrated in this one Puja Pandal.
It not only brought in a sense of belonging for the workers but was also an egalitarian step in doing away with the feeling of class. It can be inferred that none of
the changes would have been made possible without the management’s support.
Another instance of benevolence of the management could be seen in extending
healthcare to workers during the unavailability of ESIC facilities. ESIC centres
refer the case of the ill patient to a hospital, and the patient receives treatment free
of cost. However, on central government holidays or weekends, the centres would
be closed. On such occasions, PPL would provide its own ambulance and refer the
patient to an empanelled hospital and bear the cost that would have been avoided
under the ESIC facility. In one case, a husband and wife suffering from severe
pneumonia were taken to a hospital that refused to provide cashless treatment in
the absence of an ESIC referral letter. PPL admitted the couple to a hospital and
took care of the hospitalization treatment and expenses of approximately Rupees
1.2 lakhs.
5
Compliance with Labour Laws and Beyond
At the grassroots level, it was essential that the rights of workers under applicable
laws were protected and employer compliance with labour and employment laws
were maintained. This protection of worker rights extended not only to regular
workers but also to the contractual workforce. To ensure that the rights of the
contractual workers were protected, the labour compliance status of the contractors
144
M. Padhi
is verified between the 20th and 25th of every month before the issuance of gate
passes for contract workers. It was a step that PPL took to regulate contractor’s
behaviour and ensure compliance. The payment submission date for Employee
Provident Fund (EPF) and Employee State Insurance Corporation (ESIC) is 15th
of every month. The inspection date fixed by PPL to inspect the wage register,
challans and payment confirmation by contractors was initially set for the 20th of
every month. However, contractors on the plea that the papers were still getting
ready excused themselves of noncompliance, which could only be detected by
the 7th of next month. To ensure compliance by the contractors with the existing
laws and safeguard the welfare of the contract workers, PPL shifted the inspection
date to the 25th day of the month. With this, the contractors could not excuse
themselves by saying the papers were not ready and gaps in compliance could be
prevented.
Another step taken by PPL highlighting steps towards labour welfare was the
creation of Help Desk to help workers avail EPF and ESIC. With the process for
availing EPF and ESIC moving online, in many cases, the workers were not aware
of the benefits under each or even the process to be followed to avail the benefits.
Nonmatching of the KYC of the workers, such as wrongly entered Aadhaar number and bank account numbers, was an impediment in obtaining financial benefits.
Frequently, application by the workers was rejected by the EPF and ESIC authorities. Many workers even had their nicknames on the worker card, which did not
match with their name on the Aadhaar card. The Help Desk created by PPL not
only ensured that KYC was updated but also ensured that rightful financial benefits
for the workers were availed by them without any hurdles.
It was likely that despite the best of intentions, due to the workers’ own
unawareness, the availing of certain statutory benefits would be missed by them. To
avoid such an inadvertent situation of being caught in the quandary of labour law
violation, the workers were also educated and communicated about the benefits
under various applicable laws.
Furthermore, medical benefits extended in the company hospital were similar
for employees and contract workers. For instance, although the contract workers
are covered under ESIC, during emergency health care needs, contract workers are
provided with ambulance facility and hospital treatment at management’s cost.
6
Collective Bargaining at PPL
Trade Unions seek recognition as a sole bargaining agent under the Verification of
Membership and Recognition of Trade Unions Rules, 1994. At PPL, the HR team
recognizes the sanctity of workers’ representation by providing equal weight to all
the trade unions in the collective bargaining process. Irrespective of their ideological differences, the HR team managed to bring together three contract workers’
unions and two employees’ unions. A joint committee was formed representing all
the trade unions at the plant for the purpose of collective bargaining.
Paradeep Phosphates Limited’s Story of Inclusive Growth and Harmony …
145
The collective bargaining process for wage agreements was finalized through
a series of meeting discussions and making unions understand the business challenges faced by the fertilizer industry, especially the impact of the DBT system.
This helped the management and unions settle the wage agreements with a relatively lower percentage of hike than the previous settlements. The two representing
employees unions agreed for a 21% hike on wages for a 5-year term compared
to the previous agreement hike of 26%. The three representing contract workers
unions also agreed for a 33% hike on wages for a 3-year term compared to an
agreed hike of 52 percentage points in the previous agreement.
As discussed earlier regarding the management philosophy of supporting the
HR interventions through financial support, it needs to be mentioned that budgetary support of INR 22 crores was provided by the management towards contract
workers revision and employees wage revision arrears.
7
Empowering Workers
Empowerment at PPL is facilitated through participation in the decision-making
process. The beauty of the participative processes at PPL is that it enables the
participation of both regular and contractual workers. While the Works Committee
at PPL is an important committee for worker empowerment, there exist various
other forums to meet this end, such as the Canteen Managing Committee, Mass
Safety Responsiveness Programme and Safety Committee.
Odisha is known for its many festivals and celebrations where pujas such as
Ganesh Puja, Viswakarma Puja, Durga Puja and Laxmi Puja start through the
autumn months and are celebrated with a lot of festive fervour and gaiety. Puja
and Jatra Committee is the best example of a union and management relationship.
This committee with 135 employees and contract workers is led by a contract
union leader as the president and an employee representative as the secretary to
manage the gala event at PPL Township. The budgetary support towards organizing
the Puja, such as setting up of Pandals, decorations and tableau, etc., is provided
by the management for its smooth conduct within the company premises.
QC Kaizen teams are encouraged to actively participate in the decision-making
process. The teams are also sent to participate in Quality Circle Federation of
India (QCFI) conventions. In the recent past, the Pearl Harbour team received the
trophy in the gold category, Calibre received trophy in the bronze category, and
Champion and Wecan received trophy in the silver category, which are remarkable
achievements. This is remarkable because of the number of teams from a single
organization receiving many awards in QCFI conventions.
While empowering workers, it is also important to view that some workers may
have a fear of speaking and may also be restricted in expressing their creativity.
The ‘Smart Team’ workshop is a workshop that is organized with an objective to
make the worker innovative, understand and learn from their behaviour patterns,
become better team players, eliminate their fears and phobias, view creativity in
new light and become more sensitive to organizational/team requirements.
146
8
M. Padhi
Grievance Redressal
The grievances of employees are dealt with rationally and objectively. One month
is the timeline to address any grievance that may be raised by anyone in the
workforce. Noncompliance is escalated to higher management, and the status is
communicated to individuals through their respective departments.
9
Treatment to Trade Unions
The different trade unions are acknowledged and honoured by providing them with
the opportunity to receive recognition and appreciation awards on different occasions, such as Independence Day, Republic Day and Adventz Day celebrations.
One such platform for celebrating the workers’ efforts is the Adventz Day celebration on 23 March, where the individual workers/departments are recognized for
their contribution.
In addition to the above, there were some specific initiatives that have
been undertaken to bridge the gap between and improve the union-management
relationship in our organization.
10
Connecting People for Building Trust and Transparency
HR4U was an initiative to connect people and bring transparency. This forum has
been the basis for obtaining feedback and suggestions even for changing the HR
Policy of PPL. For instance, one of the policies for availing earned leave (EL) was
that the employee needed to apply at least 15 days before the date of leave over the
system. During the visits, many employees voiced the opinion that unless it was
a planned leave, it was difficult to know and seek approval 15 days ahead. Since
the application was through the system, in an emergency when employees sought
to avail themselves of an EL, the system would not accept, and the employees
had to follow a long-drawn procedure of applying through the HOD. On the basis
of the suggestion, the notice period for availing and seeking approval through
the Internal MIS was brought down to 5 days. Another instance of a suggestiondriven change was in the mediclaim insurance. Earlier, the policy required the
employees to write and seek approval before hospitalization so that on admission
PPL could facilitate and initiate cashless hospitalization. However, during these
meetings, it became apparent that when the employee himself or herself was the
person needing hospitalization, then it was not possible for the employee to write
and seek approval. In many instances, the family members were also ignorant of
the steps to be followed. On the basis of the suggestion received, the policy was
modified such that in cases where the employee is the patient, an intimation to the
office, the family would suffice, and the officer-in-charge would then pick up the
case and facilitate the process through of cashless hospitalization. This was a very
welcome step.
Paradeep Phosphates Limited’s Story of Inclusive Growth and Harmony …
147
PPL laid a great stress on enabling a two-way communication between the
management and employees to bolster trust and goodwill and encourage participative feeling amongst people. To this extent, apart from HR4U, it had multiple
forums for connecting with employees, such as the Open Forum (see Exhibit 4)
and Morning Meetings (see Exhibit 5). Various kinds of training programs were
also provided to build confidence and trust (see Exhibit 6).
It is pertinent to mention an incident that recently happened at PPL. Mr Mohan
Swain, a contract worker of M/s Orissa Stevedores Limited, was in A-Shift on 16
October 2019 and engaged in a loading job. At 7.10 AM died in an unfortunate
incident by coming under the wagon wheels on Track No. 1. The HR team and
the senior officials, including the COO, reached the spot in some time and assured
the best possible support from the management and called for discussion. The
COO then advised the HR team on the follow-up action. The bagging worker’s
representation consisting of union representatives discussed with the management
for a suitable compensation to the bereaved family and suitable employment for
one of the daughters of the deceased. The issue was resolved amicably without any labour unrest or disruption of production. The COO, HR head and the
union representatives went to the house of the deceased to hand over the cheque.
The daughter of the deceased joined PPL as an officer trainee. This shows the
concern of management to its workers and unions trust and confidence over the
management.
11
Awards and Recognitions
Awards and recognitions are given to employees, workers and their children for
excelling in different fields. The HR team facilitated the nomination of Daitary
Bindhani to be the proud receiver of Prime Ministers Shram Award on 26 January
2018.
Also, any achievement is shared equally by the management with the union
representatives. In 2019, the union representatives shared the proud moment with
the management to receive the Brand Leadership and Best Employer Award 2019.
12
Social Life at PPL
Social life at PPL is not differentiated by the status of the worker. Senior executives
are free to get invited and attend the family functions of all employees and contract
workers.
PPL has an employee engagement programme calendar. All engagement programmes are jointly organized by the representing recreation clubs and unions.
The union representatives are always the invited guests to the management
programmes. Rs 1.33 crore was budgeted towards welfare and engagement programmes for the year 2019–20. Some examples of welfare activities met through
this fund that help create stronger social ties are shown in Exhibit 7.
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M. Padhi
During cyclone FANI and Bulbul, workers and management generously contributed to the Chief Ministers Relief Fund, and the contribution was presented
to the honourable Chief Minister of Odisha and jointly served the community by
relief distribution.
13
Retirement Age Issue
It is pertinent to mention here how management and the unions cohesively
approached and resolved the change in retirement age from 58 to 60 years. There
was a difference in opinion between the management and the employees unions
for increasing the retirement age of employees from 58 to 60 years. As the issue
could not be resolved bilaterally, there was a concerted opinion to get it from the
legal forum. Both parties had the liberty to explore all possible legal options, and
finally, the issue was resolved with a directive from the Hon’ble Supreme Court.
During the strike period, slowdown or disturbance was not considered an approach
by the unions. This showed a high level of trust, understanding and cooperation
among the management and the unions.
The interesting thing is that even though the contract workers unions were not
a party to the issue, the management Suo motto extended the retirement period to
60 years.
In both cases, the employees and contract workers who had not completed
60 years were recalled to continue their service until they attained 60 years.
14
Extending the Benevolence to the Community
PPL’s focus on harmony and harmonious living extends to its immediate stakeholders and the community through its CSR practices. Its CSR practices are
wide-ranging and can be broadly divided into those directed to rural areas around
Paradeep and those targeted to urban areas. This bifurcation makes the understanding of the nature of the activities easier as the kind and type of activities for each
group differ.
Its CSR activities for rural areas took the form of Skill Development for Youth,
Livelihood Promotion for Marginalised, Houses, Education and Health, Water Sanitation and Hygiene, Environment & Biodiversity: Agroforestry/Supply of Solar
Streetlights. Each program had under it a definite set of activities.
For instance, under the livelihood promotion, PPL mobilized and supported
a batch of females and males from project villages in four-gram panchayats for
enrolment at Central Tool Room and Training Centre (CTTC), Bhubaneswar for
seven different job-oriented courses of 6 months and 1 year of duration. It also conducts the Youth Employability programme in association with ‘Tata Consultancy
Services—Affirmative Action Program’ to provide training to recently passed out
graduates belonging to SC/ST and those from an extremely economically backward background. At the conclusion of the 100–120 h training on communicative
Paradeep Phosphates Limited’s Story of Inclusive Growth and Harmony …
149
English, interview-facing skills, and basic computer knowledge Tata Consultancy
Services provides a certificate of completion.
Under the Water, Sanitation and Hygiene scheme, PPL collected 64 water samples from the 25 CSR intervention villages and tested them in the PPL laboratory
and Institute of Management and Material Technology (IMMT) laboratory. It was
found that the TDS level in the water was high, ranging from 600 to 3700 PPM,
creating health hazards in periphery villages. Consequently, in consultation with
IMMT-Bhubaneswar in the first phase, six villages of four GPs (Kharigotha and
Pratap Pur in Fatepur GP, Jhimani and Rayatsahi in Bagadia GP, Lunukua in Kothi
GP and Mangarajpur village in Mangarajpur GP) were identified and provided with
a dedicated shallow borewell with RO plants. Community meetings were held in
the above-identified places before the initiation of the projects, and user groups
were formed for the maintenance and smooth management of these projects.
PPL’s CSR activities take on a different form when extended to urban areas.
For instance, as part of Women empowerment, PPL conducted four communitybased workshops for both the genders in Balijhara and Bauria Palanda in 2019–20
with more than 250 women and men groups. The objective of these sessions was
to change gender perspectives on the roles of women and men, countering gender
stereotypes and creating a more equal society. The series of interactive workshops
also coincided with some of the important international events, such as ‘International Women’s Day’ and ‘International Human Rights Day’ and focused on
preparing SHG Leaders and community members as trainers/change agents on
the subject. The sessions were facilitated by gender experts from the Institute of
Social Development, Bhubaneswar. The sessions were made interesting and participative with the use of games, projection of short video films such as ‘Bell Bajao
Campaign’ and ‘Ghar Ka Murgi’, and role-play for awareness building and sensitization. Identified volunteers from each hamlet also reached out to survivors of
domestic/sexual violence, workplace, etc., and provided them counselling support.
The process helped in the identification of cases, maintenance of confidentiality
and understanding of responding to violence survivors.
On 3 May 2019, the Cyclone ‘FANI’ led to large-scale devastation over Coastal
Odisha. In view of that, Govt of Odisha sought the help of different corporate and
industrial houses to be a partner in rebuilding Odisha contribute in kind. Responding to the call from the state government, Paradeep Phosphates Limited made a
contribution of Rs. 1.25 Cr to the Odisha State Disaster Management Authority
(OSDMA) to support the restoration efforts made by the state government. The
company also provided over 200 solar lamps, 100 roofing sheets and 270 sanitary
napkin packs to the concerned authority on 15 May’19. The last one of PPL’s
efforts is an effort to extend a helping hand to the community in general without
being limited to the immediate vicinity.
The efforts by PPL, whether it be in training youth or skilling women or school
repair or conducting remedial classes for the weaker children, have been able to
endear it to the community.
150
15
M. Padhi
Epilogue
Khuntia recollected that the journey had not been easy. He wondered if it had
been another organization would the interventions have worked. Were there certain
conditions that made these a success?
Exhibits
(See Exhibits 1, 2, 3, 4, 5, 6 and 7).
Exhibit 1 Trade unions and PPL and their affiliations to CTUO
Union
Affiliation
1
Paradeep Phosphates Staff Association
INTUC
2
Paradeep Phosphates Employees Union
HMS
Sl No
Staff unions
Contract workers unions
1
PPL Workers Union
BMS
2
Paradeep Erasama Industrial Workers Union
INTUC
3
Paradeep Phosphates Mazdoor Union
HMS
Exhibit 2 Strike history in the last 5 years at PPL
From
To
Type
Reason
1
29.06.2016
20.07.2016
Demonstration
and rally by
contract workers
Pending wage
agreement
2
21.07.2016
25.07.2016
Work stoppage by Pending wage
contract workers
agreement
47,280
3
09.08.2016
Work stoppage by
contract workers
(canteen and
bagging) in “C”
shift
3432
4
29.09.2016
30.09.2016
Work stoppage by Pending wage
contract workers
agreement
5
01.10.2016
17.10.2016
Demonstration
and rally by
contract workers
6
18.10.2016
21.10.2016
Work stoppage by Pending wage
contract workers
agreement
In protest of
termination of a
bagging contract
worker
Man Hrs. lost
36,048
Pending wage
agreement
72,000
(continued)
Paradeep Phosphates Limited’s Story of Inclusive Growth and Harmony …
151
Exhibit 2 (continued)
From
To
Type
Reason
7
18.02.2017
22.02.2017
Hunger strike at
plant gate (day
time)
Regularization of
service
Man Hrs. lost
8
01.03.2017
(2.00 PM)
04.03.2017 (10
PM)
Work stoppage by Retirement age
contract workers
hike to 60
70,656
9
03.04.2017
05.04.2017
Work stoppage by Implementation
temp contract
of hiked wage Rs
workers of M/s
85/SVI
7344
10
07.08.2017
14.08.2017
Hunger strike at
plant gate (day
time)
11
24.10.2017
(08.30 am)
27.10.2017
(8 pm)
Work stoppage by Implementation
contract workers
of hiked wage Rs
for temp contract 85/workers
87,360
13
27.10.2017
Till date
Work stoppage by Retirement age
contract workers
hike to 60
35,520
Regularization of
service
Exhibit 3 HR4U Initiative by the HR team
The HR team reaches out to the people once every month by going to the shop floor of various
departments. The concerned department is intimated a week before the scheduled time of
meeting. The workers are informed about the visit so that they can discuss amongst themselves
and prepare on any issue that they would like the management to discuss. An open forum is
organized on the scheduled day and time. In this open forum, employees and contract workers
of the concerned department raise their issues, share ideas and suggest improvements with
respect to their workplace and township. The points raised are noted down and listed.
Necessary and possible action is taken for the listed points. The status of action taken on the
points listed is then updated with the concerned department. At times, if needed, it is also
reported to the higher management for further action
Exhibit 4 Open Forum at PPL
The Open Forum is another interactive forum where employees interact freely with top
management. During the visit of the top management to the Paradeep site, the top management
shares the organization’s vision, mission, goals and objectives, business environment and
challenges, and financial status with the employees, and the employees are free to ask
questions, share ideas and suggest for improvements
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M. Padhi
Exhibit 5 Morning Meetings for Interaction
On a more direct and regular basis, interactions are facilitated through the ‘Morning Meetings’.
‘Morning Meeting’ is conducted at gate entry every day for 15 min for employees and contract
workers. The objective is to make them aware of the safety, health and environmental
requirements and issues. Different days of the week are dedicated to briefings by different
departments. Saturday is the day that they are addressed by the HR team. The HR issues of
workers related to contractors, compliance, payment of wages, etc., are discussed and, if
needed, necessary initiatives are taken in consultation with their representing unions. This
brings transparency to the system and develops the trust and confidence of workers in the
management
Exhibit 6 Training and Awareness Programmes as Confidence building Measures
Training and awareness programmes are regularly organized for employees and contract
workers by exposing them to the usage of the latest technology and skills, building confidence
and trust among the workers, and feeling of belongingness towards the organization. First aid
training is provided jointly to all employees and contract workers. Classroom and onsite skill
training are provided by CTTC to contract workers for skill development. Awareness
programmes are organized for orienting the employees and contract workers towards the
organization’s goal and objectives, safety, social security and responsibility, statutory
requirements, etc. The union representatives are part of the training team
Exhibit 7 Welfare Benefits for Children of Employees
To further bolster the relationship between the organization and the workers’ families, ‘Best
Wish’ cards and a pen are given to the children of the employees and contract workers
appearing for the Xth and XIIth Board Examinations. The HR team reaches out to the student
family and wishes the students for the forthcoming examination.
Recently, three children of employees were recommended for “Scholarship for meritorious
children of contributory employees under Odisha Labor Welfare Board.” As per the notification
by the OLWB, the students of contributory employees getting admitted to NIT, IIT and IISER
were eligible to receive an onetime scholarship of Rs. 1.0 lacs by the OLWB. PPL is proud to
be the only industry in Jagatsinghpur district to obtain this recognition
Appendix: Teaching Notes
Case Synopsis
This case study is based on the HRM and CSR practices of Paradeep Phosphates
Ltd (PPL). PPL is a leading fertilizer located on the eastern coast of India, with an
annual turnover of approximately INR 5,500 crores. Incorporated in 1981, PPL
is now part of Adventz Group of companies, with most shares held by Zuari
Maroc Phosphates. The company is in the business of production and marketing
of complex phosphatic fertilizers.
With an employee strength of 947 employees and 1800 contract workers represented through five major unions, union-management strife was inevitable. PPL
had a history of flash strikes even for minor issues, such as registering biometric
Paradeep Phosphates Limited’s Story of Inclusive Growth and Harmony …
153
attendance and quality of food in the canteen. However, its effective management
of the union-management relationship was rewarded with the best practice award
in 2020. The company has seen no loss of man-days due to labour strife and unrest
since 2017! While minor issues led to unrest earlier, PPL saw three wage settlements being held without a single day of strike and that too with 5 plant unions!
The case study provides interesting insights for students of Industrial Relations
and Labour laws. Through HR interventions such as HR4U and morning meetings
that led to increased communication and transparency and built trust among the
employees, PPL was able to see a turnaround and harmonious industrial relations
climate. The case delves into other such practices that have led to better unionmanagement relationships. These can also lead to rich class discussions in courses
such as HRM, Organizational Change and Development. The case can also be
used to drive in basic concepts in Theory X and Theory Y in OB and the role of
Transformational HR.
PPL’s focus on harmony extends to its immediate stakeholders and the community through its CSR practices. In so doing, the case study provides an excellent
example of a company living its mission of creating value for farmers and stakeholders in its day-to-day life. PPL’s CSR activities have been far-reaching and not
just extend to the farmer community but also to the people living in the plant
periphery in the form of livelihood support, extension programmes, provision of
basic health services and education. This case study may be used to drive in and
exemplify practices for inclusive growth. It can be used in courses in CSR and Sustainability to discuss how business sustainability is ensured and enhanced through
local community sustainability and support.
Case Summary
This case study is based on the HRM and CSR practices of Paradeep Phosphates
Ltd. (PPL), which is in the business of the production and marketing of complex
phosphatic fertilizers. The case discusses how through implementation of certain
people-friendly HR practices, it not only did away with the common occurrence
of strikes during wage negotiations but also had a more harmonious employeremployee relationship. The case also discussed the organization’s CSR practices
for inclusive growth and in building support among the local community.
Learning Objectives
● To understand how the application of HRM can impact industrial relations.
● To appreciate the role of top management support for any change initiative.
● To analyse how better employer-employee relationships can be created and
maintained.
● To be aware of how inclusion in growth can lead to sustainability.
154
M. Padhi
Target Audience
The case can be used for postgraduate MBA students in business management,
human resource management or sustainability. The case can be used in courses
such as the foundational course in HRM, Organizational Change and Development,
and Industrial Relations. In the HRM course, it can be placed towards the end of
the course to facilitate integration of various concepts in HR and IR. The case can
also be used to shed light on applications of OB in HRM, such as the application
of Theory X and Theory Y in HR.
It can be placed in the middle of an Organizational Change and Development course to help appreciate the stakeholders, role of senior management and
communication in change.
It can be used in courses in CSR and sustainability to discuss how business
sustainability is ensured and enhanced through local community sustainability and
support.
Case Questions and Suggested Time Frame
(1) “HR is the driver of change in an organization.” Discuss.
(2) What could have led to PPL achieving no loss of man-days due to strikes and
labour strife?
(3) What were the strengths of the collective bargaining process at PPL?
(4) What is the role of communication and transparency in building harmonious
employee relations?
(5) What is the role of Top management in Organization Change and Development?
(6) “The business of a business is to make profit.” How does PPL adhere to or
deviate from this statement?
The case can be discussed in two classes of 90 min each. The first 10 min can be
devoted to setting up the context of the case.
The first four questions can be discussed in the first 90 min. The last three
questions can be discussed in the next class of 90 min and can be devoted to the
sixth question.
(1) Setting the context and industry background (15 min)
(2) HR as the change agent in an organization (30 min)
(3) Discussion on strikes and labour strifes and the causes for it and PPL’s
interventions (30 min)
(4) What were the strengths of the collective bargaining process at PPL? (15 min)
(5) What is the role of communication and transparency in building harmonious
employee relations? (15 min)
Paradeep Phosphates Limited’s Story of Inclusive Growth and Harmony …
155
(6) What is the role of top management in organization change and development?
(30 min)
(7) The business of a business is to make profit. How does PPL adhere to or
deviate from this statement? (45 min).
Suggested Guidelines for Discussion
A. Students may not be aware of the dynamics of a fertilizer industry, production processes, employee types, etc. They may be given an introduction to
the industry. The presence of competitors in the region and its influence on
the supply and demand of labour and wage fixation can be brought out. The
differences between wage rates in industries in the public sector and private
sector can also be brought out. The strategic management framework of having competitors in the region and their influence on the ways of doing business
can be introduced to help students of business management have a non-siloed
approach to subjects.
B. The instructor can open the discussion by asking students “Is HR the driver of
change in an organization.”
Some students would disagree. The students can be asked to explain the
reasons. They may say, it would not have been possible without the top management support. The instructor can then bring in Kotter’s change management
model and highlight the role of HR.
Some students would agree. The instructor can ask them to explain why. The
instructor can prod the students to think beyond the case to illustrate examples
of other companies as well.
This space may also be utilized by the instructor to bring in examples of other companies and how HR practices have led to productive and
counterproductive outcomes for the organization.
The instructor can also challenge the students by asking them “could this
have been possible without the support of the top management.” The instructor
can also ask the students to look at the possibility that could have there had
ownership not changed.
C. What could have led to PPL achieving no loss of man-days due to strikes and
labour strifes?
The students will recount various reasons from the case. The instructor can use
this space to provoke students to think about the reasons for strike and strikes
that have occurred in recent times and have led to productivity losses. This
space can also be used to discuss the economic and social impact of strikes
on the organization as well as workers. The textile strike of India can also be
referred to by the instructor and how it led to the closure of textile mills in
Mumbai.
156
M. Padhi
D. What were the strengths of the collective bargaining process at PPL?
The collective bargaining process and the importance of recognition of
trade unions can be highlighted by the instructor. Different types of collective bargaining arrangements in organizations in India can be introduced.
The importance of bringing together representatives of all unions can be
highlighted. This question can be used by the instructor to focus on how a
well-intentioned employer can move beyond the stated labour laws to create a
forum for facilitating harmonious industrial relations.
E. The business of a business is to make profit. How does PPL adhere to or deviate
from this statement?
While drawing attention to Milton Friedman’s statement, the instructor can use
this to discuss whether CSR makes good business sense and can be a tool to
create community support. Long-term and short-term business goals and profits
can be discussed in this space.
Mousumi Padhi is an associate professor in the School of Human Resource Management, XIM
University. She has nearly 12 years of experience teaching HRM and OB in leading B-schools
in India as a full-time and adjunct faculty including some of the Indian Institutes of Management. Her research interests lie in CSR and HR, gender, work–family, work values, neuroscience,
employment relations, etc. Her research has been published in a number of international and
national journals of repute. Her papers have also been presented at some leading international
conferences such as EAM-I, SMA,GWO, EGOS, etc.
Start-Up to Scale-Up: The Changing
Entrepreneurs’ Competencies
Padmaja Palekar, Gopal P. Mahapatra, and Parag Patankar
Zerodha, as an idea, started from a simple need to serve traders better. Today, an
organization to reckon with Zerodha is perceived as India’s leading brokerage firm
in India with a 19% market share and 1200 employees at the end of 2020. From
scratch, Nithin Kamath, the founder CEO of Zerodha, has successfully scaled up
the organization to the current level with a diverse customer base and high-quality
service standards.
Nithin is preparing for his agenda item for the upcoming Zerodha board meeting scheduled on 18 March 2021. He has to share the growth history and talent
profile, his plans ahead, focusing on the future-ready competencies of the leadership team and the managers. Sitting over a cup of coffee on his balcony, he is
reflecting upon the journey thus far, assessing the competencies that led him to
be a successful entrepreneur with the help of his brother, and is wondering, “How
would he effectively present the plan and the competencies needed?”.
Padmaja Palekar, Gopal P. Mahapatra, Parag Patankar, They wrote this case for academic
purposes. The case is not a reflection of the effectiveness of any management decision or
functioning. The authors acknowledge the support that they received from Zerodha founders
Nithin and Nikhil Kamath, CTO Kailash Nadh, and the Zerodha team for their help.
Trading, in this case, means trading in equity shares of publicly listed shares of companies listed
in stock exchanges as per the Indian Companies Act, 1961.
P. Palekar (B) · G. P. Mahapatra
Faculty of Organizational Behavior and Human Resources Management,
Indian Institute of Management Bangalore (IIMB), Bengaluru, Karnataka, India
e-mail: padmajap03@alumni.iimb.ac.in
G. P. Mahapatra
e-mail: gopal.mahapatra@iimb.ac.in
P. Patankar
Fintech Entrepreneur, and IIM, Ahmedabad, India
e-mail: 97paragpatankar@iima.ac.in
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_8
157
158
1
P. Palekar et al.
The Dream and Early Years
Zerodha started with a slight irritation and a drive to do something about it, like
many exciting ideas and initiatives that grow big. Nithin Kamath, son of a banker,
had been a trader and broker for a while. He was irritated that the brokerage
industry was opaque, expensive, and unresponsive to the customers at large, and
he thought he could do something about it. What started as a handful of people in
a small office near IIM Bangalore in 2010 is now a Rare Bootstrapped, Profitable
Unicorn, and India’s largest stockbroking firm, which is still evolving and growing
fast.
The initial focus was on Futures and Options traders, and the core offering was
a low-cost and transparent brokerage service. The initial customer base was developed through cold calling traders and influencer marketing through trading forum
discussions. The traders were skeptical about a low-cost brokerage being a good
one. A good understanding of the user needs and relentless focus on “looking out
for the customer” enabled Zerodha to acquire new customers without marketing
spending.
As the customer base started growing, Nithin and the leadership team Zerodha
realized that using standard technology common to all brokers was inefficient.
They decided to build their platform, Kite, which was launched in 2015. This
allowed Zerodha to launch a zero brokerage service for delivery transactions and
make value-added services such as alerts free to the users. The incremental cost of
serving these customers was nearly zero. The resulting growth in the number of
customers created many operational challenges. Zerodha put in systems that would
scale efficiently and processes that would speedily resolve customers’ issues. This
enabled Zerodha to introduce new products such as Coin, allowing users to buy
direct plans of mutual funds.
The company headcount grew organically; hiring was always need-based; usually, freshers and senior team members were internal promotions and not lateral
hires. Nithin was personally involved in hiring the first 100 people.
For Zerodha, the journey has just started, the Indian financial ecosystem is
still evolving, and the scope for financial investments is still mostly untapped.
The organization is actively adding new products themselves, and through the
Rainmatter initiative, it has opened up the platform to build other products by
partners such as Smallcase. Zerodha has started educational initiatives such as
Z-Varsity that provide trading and investing education to users and non-Zerodha
users for free.
2
Nithin, the Entrepreneur
Nithin Kamath, the Founder of Zerodha, was born in a family where the father was
a banker father and the mother was a music teacher. Under his father’s transferable
job, Nithin lived in different cities across India, resulting in attending many schools
across India for his early education. He spent his early school days in Hassan in
Start-Up to Scale-Up: The Changing Entrepreneurs’ Competencies
159
Karnataka and Karnal in Haryana before moving to Bangalore in Grade 9. Nithin’s
father worked for Canara bank, a leading public sector bank in South India, and
post his retirement; he also ran a small business of his own. During his banking
career and beyond, he helped people selflessly all through his life. His mother
was a music teacher and taught ‘Veena’ very passionately to her students. His
younger sibling, Nikhil, also the co-founder of Zerodha, was his best buddy in the
growing-up years.
Nithin had been an average student in school. He thoroughly enjoyed playing
all sports. Even though he did not master any sport professionally, there was no
sport that he had not attempted. Even today, basketball remains his stress buster
sport.
Nithin moved to Bangalore when he was around 14. He lived in an area dominated by the Marwaris (a dominant business community) and made friends here.
It was here that he got introduced to trading. Traditionally, trading in stocks (company shares) used to be at bucket shops. It is illegal now in India. Nithin got
hooked on trading as he felt that it was easy money. He learned the knack of
making money in the trade market and was quickly making around Rs. 10,000/to 15,000/- per month by the time he was 18 years old. His parents did not know
about his trading activities behind the scene. Money had become aspirational for
him, and he knew by 18 that he wanted to be a trader!
However, as any other middle-class Indian parent would expect their children
to study, his parents persuaded him to get into engineering, a safe bet for the
career, which he did. However, he did not give up on trading at all. He traded
aggressively at the bucket shops, honed his understanding of the markets, and
played in a volatile market. In the process, he also started making losses and
learned to handle them. By the end of his engineering, he had saved up around Rs.
4,00,000/- to 5,00,000/-.
3
The Turning Point
In 1999, Nithin started trading individual stocks in a more significant way with
his parents’ money. In 2001, Futures and Options were introduced in Indian
stock exchanges. Given the more liquid markets there, Nithin jumped into trading
Futures and Options. This new business focus required a more extensive capital
base, and he raised it from his family and friends. Unfortunately, he experienced
considerable losses in this situation, resulting in losing all the money he had accumulated. It was very depressing; however, having his family, especially his brother
Nikhil around, made him survive and stay afloat. In 2002, to service all the loans
accumulated, he took up a job at a call center in the night shift while he continued trading during the daytime. He even shifted jobs, as another call center was
giving more incentives to service his loans faster. Over 3 years at the call center,
it appeared to him “he started liking cold calling and selling”!
The employment in call centers continued until 2005, when 1 day, while working out a gym, he got into a conversation with a professional who had just returned
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P. Palekar et al.
from the USA. Through their discussions, Nitin happened to show him his trading
performance, and he was highly impressed. He asked Nitin to manage his trade
account and gave him Rs. 10 lakhs to manage. This was the golden opportunity
Nithin grabbed and decided to quit his job in the call center. He does not know
yet if this qualifies as foolishness or passion. However, this was the turning point
for Nithin, the entrepreneur.
4
Trader to Entrepreneur
A good track record with the funds of the first customer proved to be an advantage
for Nithin. Word of mouth from his first customer, and now his best friend, spread,
and Nithin quickly had his first 10 customers, and he was expected to manage their
trade accounts. He floated a company, ‘Investments Unlimited’, along with Nikhil,
his brother, who had also started trading by then. The greatest challenge that Nithin
faced here was that he had to log into ten accounts at the same time to trade for
these ten customers. This led him to look for solutions that would simultaneously
allow him to place orders for all the customers. Furthermore, he discovered this
concept of sub-broking. He became a sub-broker for Reliance Money in 2005.
All through, he made sure that he was transparent and honest with his customers. Even if there was a loss, he never hid it from his customers. He called
them and kept them informed, saying that there is a drawdown and would make up
for it. This attitude helped him obtain an increasing number of customers. He and
Nikhil realized that Investments Unlimited was not a great name for a trading company and should create a brand for themselves, so Kamath Associates was born.
Coincidentally, around the same time, their old-time neighbor and friend, Venu,
who had quit his job at Hewlett-Packard (HP), visited their office and offered to
join them. It was a welcome move, as there was much work, and they needed
another hand. He stood by with them even during tough times, and he continues
to be there even today.
5
Rethinking Business and Moving Ahead
In all these years of trading and managing other people’s money, Nithin realized that he did not enjoy calling customers personally and justifying his trading
decisions while he liked trading. In 2008, he made money amidst all the market
volatility but decided to return his customers’ money and told them that he could
no longer do it. Burnout had set in. He also realized that Nikhil is a far better
trader than him. Amidst the dead markets in 2009, he experienced high impact
costs and a drawdown of approximately 20%. The final straw was the election
results day when the market hit two consecutive up circuits, but he had liquidated
all his positions the previous evening. That evening, he was out with Nikhil and
Venu and declared that he was taking a break from trading.
Start-Up to Scale-Up: The Changing Entrepreneurs’ Competencies
161
What next? It was a big question to answer, and Nithin knew only two things—
trading and broking. Therefore, if trading was not happening, then obviously it was
going to be broking. Therefore, the thought process and research began.
Nithin had always been curious and an enthusiastic technology user. He had
explored every new trading platform that was up in the market. One such platform
that was of specific interest was the NSE NOW trading platform. This was a free,
high-speed, but barebone platform and worked brilliantly for active traders such as
him and Nikhil. This platform triggered the creation of something for brokers—a
barebone, no frill platform that gives flat fees for trade. The decision was made,
and Zerodha was born.
6
Building Zerodha: The Journey
With the decision to start a share broking firm, Nitin & Nikhil pooled in money and
completed the required formalities with the NSE. They had Rs. 20 lakhs, which
Nikhil used as trading capital to bankroll the business. The business model was
relatively simple—low cost, using vendor products and maintaining transparency
with customers. They never spoke a lie, never made false promises, and never
made false excuses. This helped them build trust in the minds of their customers.
Building trust was the greatest challenge they faced and handled through the years
by merely adhering to their core, transparency.
For Nithin, building a broking business was an extension of himself. He loved
interacting with traders, and he also loved to educate people about trading. Therefore, the first step that Nithin did was setting up a blog and a website. Nithin
wrote about everything in the blogpost—right from what happens in a trader’s
office to sharing trading secrets. Moreover, this was unheard of in the industry. He
had a pseudo-identity on a number of the trading forums on which he was very
active from the past and had built a good following and credibility. As he set up
Zerodha, he also started creating awareness of the trading community’s firm under
his pseudo-name. He used these platforms to develop a balanced opinion about
the company. Slow traction started building up. However, getting the first thousand customers was indeed very challenging. Nithin made cold calls himself and
sold the concept of Zerodha to people. It was tough because people questioned the
credibility and did not show trust. However, slowly, customers started coming in,
and Zerodha started seeing traction.
As the business grew, the team size also grew. At Zerodha, people were hired for
their attitude, common sense, and number skills. Nithin was very clear that he did
not want to hire people from the industry because they came with their baggage.
He always hired people who were passionate about learning and had some sort of
positive energy. Most hiring happened through references. Almost 60 people came
from the same village, and these people are still with Zerodha. Out of the first 100
employees, there is hardly any attrition. People have grown internally and nurtured
Zerodha like their own business. Nithin proudly mentions that Venu, their current
head of operations and risk management, came on board without much visibility
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P. Palekar et al.
of the work or business prospects. Over a period—he was given the opportunities
to learn and grow, and today he heads their Risk Management department.
7
Broking to Technology: A Shift in the Modus Operandi
Approximately 2012, Zerodha saw its first competitor proposing the same business
model—low cost, transparency, and customer-centricity. It triggered a realization
that a business needs to differentiate from others, and using vendor platforms takes
away this advantage. Furthermore, building one’s own technology was the key
going forwards. Coincidentally, one day, a team of three people who had created an
investment app came by Zerodha’s office seeking some help, which Nithin agreed
to. However, the venture had to wind up operations due to some permission issues
with the NSE. However, Nithin had become good friends with Kailash, the current
CTO of Zerodha. Kailash is passionate about technology, and he probably was the
most expensive hire that Zerodha made ever. In addition, without any regrets, of
course.
With Kailash joining Zerodha in 2013, there has been no looking back for
Zerodha. They started by first building their trading platform, bought a US trading platform licence, and customized it to their needs. In a couple of years, they
had built their in-house product, Kite, which was much better than the solutions
present in the market. Zerodha leveraged its low-cost model to rapidly scale up
its customer base while successfully overcoming many infrastructure challenges,
such as connectivity. The technology team thrives on innovation. Every person is
driven by innovation and work. None of them is driven by money. Eventually, they
get rewarded in cash, stocks, and kind, but that is not the driver. The retention rate
is exceptionally high, even for the technology team.
8
Way Forwards
While customers, revenue, trading, and margins are good indicators of growth for
an organization, Nithin is a staunch believer that technology is the way forward for
growth. As for the product development in FinTech, Nithin thinks, and Kailash puts
the heart of technology into it. Customer centricity is the focus of Zerodha. They
are probably the only company that does not give revenue targets to their sales
team in their goals. The belief is that if incentives drive people, they could missell, and eventually, customers could lose money for minor gains, thus resulting in
the loss of credibility of Zerodha.
Start-Up to Scale-Up: The Changing Entrepreneurs’ Competencies
163
Furthermore, this philosophy seems to have worked. The low employee attrition
rates speak for themselves. As Nithin says, “I am building this company keeping
‘me—the trader in 2009’ in mind. Deep within I know, that is one thing which
is not replicable. So, what next for building Zerodha towards its potential?” he
wonders before his upcoming board meeting and presentation.
9
Questions for Case Discussion
1. What was the motivation behind starting Zerodha?
2. What behavioral competencies did Nithin possess? Did these competencies
evolve/change as the vision evolved? What were some of the competencies
that he acquired as the organization evolved?
3. Given the founders’ current vision for scaling up, what are the competency
gaps, and how do you think they can be built over the next few years?
4. Given the success of Zerodha, what lessons can we draw on the ‘Build vs. Hire’
approach of scaling up? What are the pros and cons of these approaches?
5. Nithin plans to scale up Zerodha, and he intends to share the road map in
the upcoming board meeting. What are some of the critical points that Nithin
should address for the board from the perspective of building competencies?
Annexures
Annexure 1: Stock Broking Industry Overview: 2015–2020
See Tables 1, 2, 3.
Table 1 Growth of demat accounts in India
FY15
FY16
FY17
FY18
FY19
FY20
3QFY21
CDSL
9.6
10.8
12.3
14.8
17.4
21.2
28.9
NSDL
13.7
14.6
15.6
17.1
18.5
19.7
20.9
Accounts (mn)
Source NSDL, CDSL
Table 2 Growth of mobile phone-based trading in cash segment
Mobile %
FY15
FY16
FY17
FY18
FY19
FY20
3QFY21
NSE Mobile
1.1
2.2
3.5
5.1
8.1
12.3
23.1
BSE Mobile
0.5
1.1
2.2
3.1
5.3
6.9
16.7
Source NSE, BSE
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P. Palekar et al.
Table 3 Brokers market share by NSE active accounts
Market
share (%)
FY15
FY16
FY17
FY18
FY19
FY20
1QFY21
2QFY21
3QFY21
Zerodha
0.6
1.2
2.8
6.5
10.4
13.1
15.9
17.4
19
RKSV
0.1
0.2
0.3
0.5
1.1
5.7
6.4
8.6
10.5
ISEC
11.7
10.8
10.4
9.6
9.6
10
9.2
8.4
8.4
Angel
3.1
3.3
3.9
4.4
4.7
5.3
6.3
7.1
7.9
HDFC
Sec
6.8
7.9
8.1
7.3
7.7
6.7
6.1
5.6
5.8
Kotak Sec 5.3
4.8
4.6
4.5
5
5.3
5.2
4.8
5.1
5 Paisa
Capital
0
0
0.1
0.4
1.2
4
4.6
4.9
4.5
Motilal
Oswal
3
3.2
3.5
3.7
3.6
3.5
3.4
3.2
3.2
Others
69.3
68.6
66.4
63.1
56.7
46.4
42.8
40
35.6
Total
100
100
100
100
100
100
100
100
100
Source NSE
Annexure 2: Zerodha Growth: 2015–2020
Metric
2015
2020
Market share %
1
19%
Clients
75,000
4 Mn
Employees
100
1200
Revenues (Rs. Cr.)
70 Cr
1200 Cr
Source Zerodha
Annexure 3: Zerodha Team
Team Member—Role
Key responsibilities and competencies
Nithin Kamath—CEO
Founder, product, sales
Nikhil Kamath—CIO
Co-founder (Nithin’s brother), investments and risk
management
Kailash Nadh—CTO
Technology platform and interfaces joined in 2013
Venu Madhav—COO
Operations and compliance. Employee #1 joined
Kamath Associates in 2006 before Zerodha was founded
Hanan Delvi—Client Relations Chief Customer care operations, joined in 2009 to learn to
trade and stayed on
Start-Up to Scale-Up: The Changing Entrepreneurs’ Competencies
Team Member—Role
Key responsibilities and competencies
Seema Patil—Chief of Quality
Customer care quality, people management. Nithin’s
wife, involved from the start
165
Source Zerodha
Annexure 4: Key Stakeholder Competencies
Nikhil Kamath, Co-Founder, Manages Investments and Risk
Management, Nithin’s Brother
Nithin’s younger brother, and co-founder of Zerodha, Nikhil, has been a keen
trader since his childhood. While academics were not his forte, he has been a
chess player from six and even represented India. He moved out of home when
he was 17 and made a living for himself by selling mobile phones. He tried his
hand at a laundry business, a chemist store, etc., but those ventures did not work
out. He also took up a job at a call center. Nikhil traded since his early days but
was not good at trading initially. Approximately 2003–2004, he lost all his money
and went bust. However, he did not give up, continued trading, and became a
sub-broker of Way2Wealth.
While he and Nithin were trading independently, they were facing the same
issues. Nithin drove the idea of starting Zerodha, and Nikhil’s trading capabilities helped them bootstrap the company. Since he was good with trading and
risk management, Nikhil continues to take care of investments and risk management at Zerodha. A voracious reader with a keen interest in psychology,
Nikhil complements Nithin’s capabilities and competencies, focusing on building
Zerodha.
Kailash Nadh, CTO, Manages Technology Platform and Interfaces
Kailash Nadh is a self-made computer geek. He learned coding on his own at the
age of 13 when his father got him a PC and an internet connection. Fascinated
by what technology can do, he started experimenting with his coding skills. He
started writing complex programs and helped people who wanted technological
solutions. He started taking up freelance projects and was making good money
with these projects. While he enjoyed this programming bit, he did not want to
get pressurized with formal studies and hence took up a BSc Computer Science
course in the UK, which allowed him to do these freelance programming projects.
He never thought of monetizing this or converting it into a business.
Coincidentally, when he was doing his graduation, he also helped one of his
friends finish his computer coursework, who persuaded him to meet his professor,
who offered him an AI research project. The professor offered to enroll in the
Doctoral program without having to do a master’s program. The thesis work on
some truly complex projects with his professor led to six papers being published
in top journals, and he got his doctorate within 3 years.
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P. Palekar et al.
Kailash decided to come back to India, even though he had an opportunity
to continue as a Post Doc in the UK. He and a couple of his friends built an
investment platform for the masses, which required a brokerage interface, and
they approached Nithin to seek advice and help. Nithin helped them, but NSE
shot down the proposition. However, Nithin was looking for someone to help him
on the technology front around the same time, and Kailash came on board.
A self-made technology enthusiast, who believes in building simple solutions
for complex problems, Kailash is now the CTO of Zerodha.
Appendix: Teaching Note
Case Synopsis
Zerodha is a fast-growing India’s leading brokerage firm, established in 2009.
Mr. Nithin Kamath, the founder & CEO of Zerodha, started the firm with a
straightforward idea to serve the traders better. Their business model was straightforward—low cost and transparent brokerage service to customers. They neither
spoke a lie nor made false promises and never made false excuses to their customers. The strategy would help them build trust in the minds of their customers.
In the initial years, the first thousand customers were developed through cold calling and influencer marketing through trading forum discussions. It was tough to
build a customer base because people questioned their credibility and did not
show trust. With the time their business started growing, the company needed
a good team. At Zerodha, people were hired based on their attitude, passion for
learning, common sense, and skills. Most of the hiring has happened through references. In 2012, the company encountered its first competitor who proposed the
same business model—low cost, transparency, customer-centricity. To differentiate
themselves from competitors, Zerodha decided to build its online trading platform.
In 2015, Kite was launched, which was developed to offer better trading solutions
to traders in the market. The lost cost, transparent, and customer-centric business model rapidly helped the company scale up its customer base. Currently, the
company has more than 1200 employees with a 19% market share at the end of
2020.
The case concluded with the situation where Nithin has to prepare for upcoming
board meetings scheduled on 18 March 2021, where he has to share the growth history of the company along with his plans ahead for the future to scale up Zerodha
towards its potential, primarily focusing on the building competencies that will be
needed to prepare for the future.
Learning Objectives
The main objective of this case is to highlight the behavioral competencies required
by an entrepreneur at every stage of building it. It also highlights how the values
Start-Up to Scale-Up: The Changing Entrepreneurs’ Competencies
167
and traits of the entrepreneur shape the organization. Alongside, the case allows
students to understand the concept of entrepreneur and entrepreneurship and can be
used in an entrepreneurship class to teach stages of entrepreneurship or growth of
an entrepreneurial firm by exposing students to concepts of entrepreneurial growth,
the context of a firm, the role of competition in a start-up, and the evolving business
model of a firm.
Key insights that can be drawn from the case:
a.
b.
c.
d.
e.
f.
g.
Key competencies of the entrepreneur that shape the organization.
First mover advantage—how it can lead to making a unicorn.
Tapping the right talent at the right time—talent is everywhere.
Build solutions that are intuitive yet innovative—solutions that solve a problem.
Customers value—your values.
Knowledge sharing is critical to running a successful business.
A bootstrapped organization can be highly successful—entrepreneurs do not
always need funding.
Target Audience
The case is designed for participants in MBA or executive MBA programs offered
in top B-schools. The case can be helpful in the sessions of the following subjects:
entrepreneurship and human resource management. This case can also add value to
the mid-career entrepreneurs, professionals/leaders, and CEOs/CXO, who enrolled
themselves in short-duration executive education/general management programs
offered by B-schools to understand the concept of entrepreneurship.
Case Questions and Suggested Time Frame
Case questions for the study would be:
1. What was the motivation behind starting Zerodha?
2. What behavioral competencies did Nithin possess? Did these competencies
evolve/change as the vision evolved? What were some of the competencies
that he acquired as the organization evolved?
3. Given the founders’ current vision for scaling up, what are the competency
gaps, and how do you think they can be built over the next few years?
4. Given the success of Zerodha, what lessons can we draw on the ‘Build vs. Hire’
approach of scaling up? What are the pros and cons of these approaches?
5. Nithin plans to scale up Zerodha, and he intends to share the road map in
the upcoming board meeting. What are some of the critical points that Nithin
should address for the board from building competencies?
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P. Palekar et al.
The teaching plan for the case study should be prepared while keeping learning
objectives in mind. The teaching plan could involve a detailed discussion about the
case’s background, protagonist, and industry profile and answer all the questions.
Faculty can initiate class discussion with triggering questions about the case and
incorporate theoretical concepts and frameworks to better understand the case.
They can use visualizing methods to make the conversation more effective.
Discussion topic
Point time (minutes)
Background of the case and context setting
10
Analyze the experience and actions of Mr. Nithin
10
Assignment questions
30
Road map for Mr. Nithin upcoming presentation
20
Conclusion/final insights
10
Q&A
10
Case-Wise Analysis/Responses by Authors Along with Relevant
References:
The students will have an opportunity to analyze the case from multiple lenses:
the emerging competencies of entrepreneurs, start-up formation, learning from failure, and leadership styles. The student will understand the process of building a
new start-up and the strategies required for the firm to survive in a competitive
environment.
1. What was the motivation behind starting Zerodha?
Zerodha began with some dissatisfaction and a desire to do something about it. Mr.
Nithin, the founder of Zerodha, had been trading since he was 18 years old. He
had earned a good amount of money from trading. He was aware of his aspirations
and wanted to become a trader. While trading, he found that the brokerage industry
was opaque, expensive, and unresponsive to the large customer base. Nithin had
always been passionate about technology and explored a new trading platform
from the NSE, which was a free, high-speed, but barebone platform that worked
perfectly for active traders. He decided to open a start-up firm with a simple need
to serve the traders better. This is how Zerodha was born.
2. What behavioral competencies did Nithin possess? Did these competencies
evolve/change as the vision evolved? What were some of the competencies
that he acquired as the organization evolved?
Start-Up to Scale-Up: The Changing Entrepreneurs’ Competencies
169
Some of the critical competencies that are apparent through the case are as follows:
1.
2.
3.
4.
Passion to trade.
Clarity of thought.
Strong value system.
Attitude to ‘DO’.
Nithin was passionate about trading from his early age. He started trading when
he was 18 years old. He picked up the skills and developed them further. Despite
fallouts and losses, he always got up and made way for himself. It shows that it
was his passion. When he decided to venture on his own, he failed, went to the
call center with a motive of only repaying his debts and coming back to trading—
clearly shows that he had a clarity of thought to pursue his passion. Always telling
the truth to the customers, being highly transparent in the transactions, hiring people who were willing to learn, and facing hardships, sharing his knowledge with
a broader audience shows that he comes with a powerful value system. He never
shied away from doing the work by himself and owning his responsibilities. This
TO DO attitude has taken him a long way.
When Nithin set up Zerodha and started growing, the case clearly shows that he
acquired a few competencies; however, he never compromised on his key competencies. For example, despite rapid growth, there was no compromise on ‘values’
or the TO DO attitude.
Some of the competencies that he acquired as the organization scaled are as
follows:
a.
b.
c.
d.
e.
f.
Selling skills
Sharing knowledge
Influencing customers using ethical means
Transparency
Building trust
Persistence
To service his loans faster, he took up a call center job at night and continued to
do trading in the daytime. Over 3 years at the call center, he did hands-on cold
calling and selling. The competency he acquired while doing the call center job
would help Nithin build a customer base and scale up his business further.
Later, he got an opportunity to manage money for a friend, who became his first
customer. Therefore, he decided to quit his job and follow his passion. Positive
feedback from the first customer would help Nithin to get more customers. He
started the company Investments Unlimited with his brother, Nikhil. They followed
the same model of maintaining transparency and honesty with the customer. Later,
they changed the name of the company to Kamath Associates. After a few years,
Nithin realized that he did not enjoy calling customers personally and justifying
his trading decisions. Then, the market was moving sideways during the post-GFC
9 Great Financial Crisis recession. He decided to take a break. He decided to open
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a start-up firm with a simple need to serve the traders better. This is how Zerodha
was born. Nithin, as the founder of the firm, himself involved in every process to
scale up the company. He built the initial customer base by prospecting directly
and by trading forums, where he had built some credibility. Nithin was involved in
hiring the first hundred employees. Interestingly, there is hardly any attrition out
of the first hundred employees. After hiring CTO-, Kailash Nadh, Zerodha decided
to build a new trading platform known as Kite to serve customer needs better, at
a lower cost, and differentiate themselves from competitors.
Nithin has all the competencies that an entrepreneur should possess and develop
while scaling up the business. During his whole journey, he took purposeful and
quick to act on the opportunity. Additionally, he was persistent and made repeated
efforts or took action to overcome every obstacle. As an entrepreneur, he was passionate about his work and committed to his vision to deliver quality services.
Additionally, he took risks following his passion. Therefore, remarkably his competencies have evolved with evolving vision. He acquired many competencies with
the growing business. He became proficient in building a customer base and hiring
and retaining quality talent. He put in efforts and developed a unique solution to
differentiate the firm in the market. Additionally, he strictly followed their basic
model and succeeded in building the trust of the customers and employees.
3. Given the founders’ current vision for scaling up, what are the competency
gaps, and how do you think they can be built over the next few years?
Zerodha was growing well with its core competencies. Nevertheless, there are
some gaps while developing the vision of the company. The competency gaps are:
a. He should develop a culture of ‘learn, unlearn, and relearn’ in the ecosystem.
Such an approach will help them know the value of unlearning, where it will
be essential for entrepreneurs and employees to be equipped with new skills
and competencies and constantly innovate to survive in an evolving world.
b. He should build a leadership pipeline that can help the organization to prepare
talent for future positions.
c. He should involve a culture of feedback in the system. This will help the
organization identify the performance gap.
d. Nithin is a very intuitive decision-maker. He should create a more structured
decision-making process to drive company vision and strategy.
4. Given the success of Zerodha, what lessons can we draw on the ‘Build versus
Hire’ approach of scaling up? What are the pros and cons of these approaches?
Zerodha grew with the “Building competencies internally instead of hiring experienced people from industry” approach. Mr, Nithin, founder of Zerodha, believes
that people from the industry come with baggage. He hired only those people who
have a positive attitude, common sense, relevant skills, and passion for learning.
Start-Up to Scale-Up: The Changing Entrepreneurs’ Competencies
171
Mr. Nithin himself was involved in hiring the first 100 people. He hired people
through references.
Interestingly, the 60 people who were hired initially and came from the same
village are still associated with the firm. There is almost no attrition among the
first 100 employees. People have grown within and nurtured Zerodha as if it were
their own business. The ‘Build vs. Hire’ approach was primarily responsible for
the success of Zerodha.
The danger with this approach cannot bridge competency gaps fast enough to
survive in a brutally competitive environment, as building competencies internally
is a long gestation process. It worked for Zerodha because they had a first-mover
advantage.
5. Nithin plans to scale up Zerodha, and he intends to share the road map in
the upcoming board meeting. What are some of the critical points that Nithin
should address for the board from the perspective of building competencies?
Low-cost offerings, transparent brokerage service, and customer centricity are the
key strengths of Zerodha. The company stuck to its core competencies and has
been able to win the trust of its large customer base and employees. Zerodha
does not include revenue targets in its sales personnel goals. The argument is that
if incentives motivate people, they will mis-sell, and clients will eventually lose
money for minor benefits, which could cause Zerodha’s credibility to suffer.
To build Zerodha to its next level, Nithin should address the following critical
points and share the road map in the upcoming board meeting to focus on building
competencies:
a. The company plans to expand into adjacent areas of investments, mutual
funds, and payment systems. How will they get the right people to drive these
initiatives?
b. As the company grows, how will it manage to keep the culture coherent and
robust?
c. Nithin is a very intuitive decision-maker. He should create a more structured
decision-making process to drive company vision and strategy.
Preparation and Other Readings
The following articles could help students understand the background of the case
and can be used as a reference for the preparation of the session:
1. Baron, R. A., & Markman, G. D. (2000). Beyond social capital: How social
skills can enhance entrepreneurs’ success. Academy of Management Perspectives, 14(1), 106–116.
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2. Mitchelmore, S., & Rowley, J. (2010). Entrepreneurial competencies: a literature review and development agenda. International Journal of Entrepreneurial
Behavior & Research.
Other Relevant Readings for Faculty Members’ Reference Are
as Follows
1. Rasmussen, E., Mosey, S., & Wright, M. (2011). The evolution of
entrepreneurial competencies: A longitudinal study of university spin-off venture emergence. Journal of Management Studies, 48(6), 1314–1345.
2. Sparrow, P. (1995). Organizational competencies: a valid approach for the
future? International Journal of Selection and Assessment, 3(3), 168–177.
3. Man, T. W., Lau, T., & Chan, K. F. (2002). The competitiveness of small
and medium enterprises: A conceptualization with focus on entrepreneurial
competencies. Journal of business venturing, 17(2), 123–142.
4. Barringer, B. R., Jones, F. F., & Neubaum, D. O. (2005). A quantitative content
analysis of the characteristics of rapid-growth firms and their founders. Journal
of business venturing, 20(5), 663–687.
Acknowledgement We would be very interested in your comments and suggestions about this case and the teaching note. Please e-mail them to
gopal.mahapatra@iimb.ac.in, Padmaja Palekar, Parag Patankar, and Amruta Londhe.
*Prof Gopal P Mahapatra is a Prof of Practice-OB & HRM in the OB & HRM area.
The authors want to acknowledge the valuable inputs of Ms Inika Sharma, Research
Associate in preparing the teaching note. This teaching note is prepared to aid faculty members and teachers in linking it with relevant concepts and frameworks. This
case is developed solely for class discussion and not necessarily an indication of the
management’s decision-making style.
Luminous Power—The ROI
of the General Management Program
Debolina Dutta and Tilak Raj Kapoor
The cold winter morning of December 2017 starkly contrasted the heated discussions between Brij Nagpal, Chief Financial Officer (CFO) and Arti Sharma,
Chief Human Resource Officer (CHRO) of Luminous Power Technologies. While
reviewing the major expenses of 2017 and planning the budgets for 2018, Nagpal,
appreciative of the overall intent, was doubtful that the large investments made
in learning were justified. Sharma argued the need for the same as an investment
required to build talent capability, citing increased motivation levels of the participants and the positive feedback received for the previous program. A veteran
of 30 years of experience, with over 10 years of work experience in Luminous,
Nagpal had seen the organization grow over the years and was dismissive of this
argument:
Frugality runs in our culture, and we need to ensure every penny is spent carefully after
considering ROI. This soft touchy-feely stuff is fine, but please demonstrate the return on
Investment (ROI) of the money spent on the previous batch and justify how would we know
if it would be worth spending this amount in the future?
D. Dutta (B)
Indian Institute of Management Bangalore, Bangalore, India
e-mail: debolina@iimb.ac.in
T. R. Kapoor
DS Group, New Delhi, India
e-mail: tilak.raj1@dsgroup.com
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_9
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D. Dutta and T. R. Kapoor
Luminous Power Technologies Pvt. Ltd.: Organization
Context
Luminous Power Technologies (P) Ltd., with its corporate office at Gurugram
(Haryana), was founded in 1988. In 2011, Schneider Electric Ltd. (A French Multinational (MNC) Company) acquired 74% of the organization’s ownership rights
and acquired the remaining 26% share in 2017.1 By early 2017, Luminous has
established itself as India’s leading power and home electrical specialist. It had
a vast portfolio of products, consisting of power backup solutions such as UPS,
batteries, and solar applications to home electrical products such as fans, wires,
switches, and LED lighting. By December 2017, operations had expanded to 7
manufacturing units, more than 28 sales offices in India, and its 6000 employees
served over 60,000 channel partners and millions of customers.
One functional head and member of the management team, who had seen the
transformation of Luminous up close and personal from an entrepreneurial-run
organization to integrating with the MNC, opined
Passion and commitment run high in Luminous culture, and we thrive on accepting and
achieving challenging targets. So, while our revenues have significantly increased over the
past few years, we need to make our talent future-ready to sustain our growth. What had
brought us here will definitely not take us there.
2
The Evolving Organization and Need for Capability
Building
The change within the organization from 2012 to 2017 was rapid. Luminous had
grown at an impressive compounded annual growth rate2 of over 20% in these 6
years. This growth rate has made it incumbent upon the organization to find ways
to build the capabilities of its talent base. The Power Storage Business (PSB),
which contributed the lion’s share of the organizations’ revenue, continued to be
led and managed by the same team that had grown the business three-fold from
2011 to 2017. Luminous continued to dominate the market in the inverters and
battery products segment. However, the power demand and supply gap continued to shrink in the country, with the energy deficit reducing from 4.2% in 2014
1
https://economictimes.indiatimes.com/industry/cons-products/electronics/cci-clears-schneiderelectric-luminous-power-deal/articleshow/56807972.cms last viewed on 21 May 2018.
The support and help provided by Mr. Vipul Sabharwal and other management staff of Luminous Power Technologies is gratefully acknowledged. Some names of individuals have been
anonymized to protect individual identity.
The case is not intended to serve as an endorsement, source of primary data or to show effective
or inefficient handling of decision or business processes.
2 Compound annual growth rate is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period.
Luminous Power—The ROI of the General Management Program
175
to below 1% in 2017. This resulted in a future lower than anticipated demand
for such products.3 The growth of Luminous, which had been sustained through
inverter-battery sales, was likely to slow down. Opportunities were emerging in the
growing sustainable energy sources like rooftop solar installations. This involved
creating a new product range of inverters compatible with solar power storage.
Additionally, sales and service teams had to be trained in selling and servicing
this new technology and building new distribution partners.
To diversify the business risk, the organization also started a new business vertical called “Home Electrical Business” (HEB) in 2011, which offered products
such as fans, wires, switches, and LED lighting. Entering a hugely competitive
segment requires investments, both in hiring new talent and building capability for
the existing talent base. Since there were no significant distribution channel synergies between the two business lines, significant investment was made in setting up
a separate sales channel to grow this new line of business. Sustainable growth for
the organization was contingent on developing internal talent to equip them to lead
a more competitive, complex, and matrix organization. A need was felt for higher
order strategic thinking, digital capabilities, stronger financial acumen, increased
executive presence, and enhanced communication and presentation skills, which
were lacking in Luminous’ tenured employees.
Recognizing the capability gap and realizing that for the future success of the
organization, tenured employees needed to be carried along, Vipul Sabharwal,
Managing Director of Luminous, was supportive of learning interventions that
would build this capability:
As we grow and become a fairly large organization, the rules of the game for the organization have changed. We need to sustain our market share in the Power Solution Business and
ensure faster growth in the Home Electrical Business. We need to manage the expectations
of the large MNC of which we are part and learn to operate in a more complex and matrix
environment. All these changes require different skills and capabilities. The challenge for us
is how we incorporate these changes while preserving the agility, passion, and high achievement orientation of the Luminous entrepreneurial culture. As such, we need leaders who are
good with operational capabilities and think strategically. We have quite a few leaders, especially at the middle management level,4 who have spent considerable time here and have
grown within the organization. As Luminous is known for internal growth, we need to provide opportunities to them for their skill development to equip them with the competencies
to lead higher roles. That is where we need to think of high-quality development programs
to build capabilities.
3
https://www.ibef.org/industry/power-sector-india.aspx last viewed on 21 May 2018.
Organization structure included top management, mid-management and junior level employees. “Mid-management employees” generally referred to people managers with 8–10 years work
experience. Team sizes managed by them varied from 4 to 10 people.
4
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D. Dutta and T. R. Kapoor
The General Management Program (GMP)
The talent at Luminous comprised a spectrum of skills, education, age groups and
generational cohorts, experiences, and capabilities (Exhibit 1). While the founder
organization had hired for passion and energy, hiring practices from 2012 changed
the organization’s skill mix. With domain experts and higher professionally qualified talent entering Luminous, the organization had become a melting pot of mixed
capabilities. The old stewards viewed the newcomers with a mix of awe and resentment but still were optimistic about being considered for growth opportunities
in the larger MNC. The lack of formal management education often meant that
this talent was lost to the newer entrants, further deepening the divide between
home-grown talent and the new hires. The trend to fulfill mid-management and
senior management talent from outside (Exhibit 2) further reinforced the perception of a “glass ceiling” for Luminous’ legacy talent. The prevalent paradigm of
career growth was that of a progression akin to a vertical ladder. Very few employees opted for horizontal career moves to broaden their experience, resulting in a
handful of internal mobility fulfillments, leading to more external recruitment for
vacancies created. Faced with these, the organization realized the big challenge
of building capabilities across all functions to ensure that they continue to deliver
for tomorrow, not just today, as managing future organizations will not be an easy
extrapolation of the past. Future growth would be contingent upon investments
in growing skills and capabilities. Incidentally, “Capability Building” was recognized as one of the three building blocks of HR strategy for 2017–2019. (Exhibit
3). This also meant that the expenditure on training as a percentage of revenue,
which hovered around 0.6% in 2016, had to be significantly increased.
While supportive of building capability within the organization, Nagpal differed
with Sharma on the approach being taken of investing in management education.
We have been an organization fueled by passion, resulting in extraordinary performance
from less than ordinary individuals. This has been done by allowing people to take on
significantly larger responsibilities. People were often thrown in the deep end without
prior experience or knowledge, but by sheer grit and conviction, they delivered. Why not
take this approach and enable more mobility-based capability development? Would fancy
management-school educated employees be willing to step out of their comfort zones and
stretch this way?
On the other hand, Sharma felt that this approach had been feasible when the
organization was smaller.
Luminous Power—The ROI of the General Management Program
177
Luminous of today significantly differs from the Luminous of yesterday. We’ve grown
into more formal structures now than we were a decade back. If we don’t provide forums
and opportunities to our employees, they will hit the ceiling due to obsolete skills. Most
managers in various functions now expect a minimum level of domain knowledge and experience. Additionally, the complexity and scope of work have also increased, and many new
technologies and methods are at play. Many managers do not have the luxury of allowing
people to learn slowly or make mistakes. Additionally, hand-holding them while they pick
up the required skills through deep exposure puts a tremendous burden on the managers’
bandwidth. Not all of them are not good coaches or mentors. So, learning on the job through
trial and error may not always be feasible.
Since 2014, efforts were made by the learning and development team to bridge
the gaps in capability through short-duration programs. Training programs such
as improving spoken and written communication, influencing skills, managerial capability building, negotiation skills, and excel training were organized. A
monthly training calendar was published, and both employees and their managers
were encouraged to send in nominations. Programs were conducted on improving
communication, presentation, managerial/leadership development, conflict management, finance for non-finance, excel training, etc., which was required by
the different business units (Exhibit 4). While these sessions did enhance some
functional skills, a significant change in behavior and impact on business and
stakeholder engagement was not seen. The idea of a long-term business-focused
intervention from some of the top business schools was a possible means to deliver
on this objective. The curriculum was expected to enhance understanding of the
environmental challenges and opportunities in a globalized world, the impact of
the business organization’s economic environment, appreciate the dynamics of
various organizational functions, and enable managers to collaborate across the
organization breaking their functional silos. The program was expected to help
the participants master increasing complexity, business volatility, and ambiguity.
A softer expectation was to enhance overall executive presence and help build a
pipe of leadership that could feed Luminous’ growth aspirations and provide a
talent pool for the larger MNC organization.
An unspoken expectation of the management team was that this training would
increase the succession pipeline and accelerate internal mobility for the organization’s opportunities. Given the expected costs for such a program, which
the organization wholly funded, an initial group of 20 mid-level managers was
selected, whose general management capabilities needed to be augmented. These
participants represented approximately 8% of the people managers in the organization. The organization asked some of India’s top business schools, including
the Indian Institute of Management, Lucknow (IIM-L), and other premier business schools, to share the quotation of course fees. Given the cost considerations,
proximity to the larger population of candidates, who were predominantly based
out of north India, and convenience of the dates offered with the business needs,
the Learning and Development (L&D) function selected IIM-L as the institute
for delivering the “General Management Program” (GMP). The institute was also
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D. Dutta and T. R. Kapoor
preferred for its deep expertise in offering similar programs for several other organizations and its willingness to offer a customized program than delivering an
off-the-shelf solution. The course content was carefully curated, duration of classroom contact (20 days of classroom contact in person at the campus, spread over
9 months) was approved (Exhibit 3).
4
Eligibility and Selection Process
The program was opened to mid-level managers of the organization in 2015 and
continued till 2017. To be eligible to apply under the program, the employee was
expected to have completed at least one appraisal cycle with Luminous (as of April
2017) and should have been rated in the top two performance categories.5 The
applicant was expected to be a strong ambassador of organizational values and was
expected to have the potential to move up the organization hierarchy, as assessed
by the reporting manager and the head of the department. With recommendations
received from the managers, employee interest, and commitment to participation,
the list of participants was firmed up. The HR team was careful to clarify that
successful participation or completion of the program did not guarantee future
promotion or growth, as these were contingent on available role opportunities and
a commensurate independent assessment of capability for the roles.
An independent selection process consisted of a written test including general
aptitude and personal interviews to select the applicants’ final batch. The organization sponsored the complete program fee of INR 0.3 million (approximately USD
4300) per employee.
4.1
Evaluation Criteria
The program’s evaluation criteria included mid- and end-term examinations,
quizzes, assignments, and integrated projects to assess learning in each module.
Participants needed a minimum of 50% in the exam and 80% attendance to get a
certificate of “Successful Completion” of the Program. In case any of the above
two criteria were not met, the participant would get a “Certificate of Participation.” All participants were urged to apply their learnings at work through action
learning projects relevant to their contexts (Exhibit 5) and demonstrate their higher
acumen.
5
The organization used normal distribution parameters to assess relative performance under the
four buckets of high performer, performer, competent, and underperformer.
Luminous Power—The ROI of the General Management Program
179
Within the organization, participants were viewed with awe and as “more equal
than equals.” Admission to the GMP was a coveted achievement, and the program participants were looked upon with respect. Those employees who were not
selected for the final list of 20 participants were determined to make it for the next
years’ list of participants. Such unsuccessful applicants were duly communicated
their performance in the written examination, case study, and personal interviews.
They were assured that they continued to be valuable assets to the organization and
were encouraged to apply to next year’s batch. This further enhanced the aspiration level to be part of the select group and demonstrated that participation was
contingent on clearing a minimum capability level and not contingent on manager/
self-nomination.
4.2
Feedback on the Program
Talking about the major learnings, Abhishek Mishra (Finance Department), one of
the participants of the program, enthused
This was quite an enriching experience and a lot of learning. I could learn the basics of
other functions like operations, sales, marketing, and strategy. The leadership and organizational behavior session were very useful. Even my core subjects like Managerial economics,
accounting, and financial management were taught differently and will add value to me. The
program gave me a holistic picture of a corporate framework and general management. The
faculty was beyond expectations and very cooperative.
When asked about how the program enabled the participants to apply their learnings to their respective functions and daily job activities, another participant, Ritesh
Hande (Customer and Quality function), replied
Since topics covered were quite wide, we had ample scope to put the lessons learned in
day-to-day work. In my core area of managing product quality, I immediately implemented
tools like effective communication with field force, service, sales, and marketing colleagues
to capture and eliminate challenges our customers face. The innovation session encouraged
us to see the problem differently, come up with multiple solutions at first, and then pick the
best solution for the company.
All employees who underwent the program were unanimous in their appreciation of its quality and thankful to the organization for selecting them and giving
them the opportunity. Many of them proudly called themselves “alumni” of the
prestigious institute, and this social recognition was a matter of huge pride.
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D. Dutta and T. R. Kapoor
Sharma was hopeful that this structured exposure to other functions would
open the doors for internal and cross-functional mobility and reduce the need for
external hiring.
With the majority of the workforce now coming from outside, many hiring managers look
at a management pedigree as a qualifying criterion for considering a candidate for a role. I
hope we can present some of our GMP-certified employees for internal roles, and they meet
our screening and capability criteria. I would certainly consider this program a success if
we can move to the needle on internal mobility and showcase some success stories on the
leadership succession cases from some of these graduated employees.
However, the program introduction was not without other unintended consequences. With only 20 employees selected, accusations of favoritism and politics
in the selection of the candidates were commonly debated. Junior employees also
expected the L&D function to provide them with some exposure to similar caliber programs, albeit of shorter duration and lesser costs. With less than 8% of
the people managers attending this program, expectations were also there of augmented batch capacity for the forthcoming batches. Some of the leadership teams
expected themselves to be sent to Ivy colleges programs outside of India. The cost
of nearly INR 6 million on the program had been a significant percentage of the
available L&D spend for the organization. It had limited the ability of the L&D
team to offer a wider variety of curricula at relatively lower costs but covering a
larger proportion of employees.
With the majority of the workforce being millennials, the large spends on this
program was also limiting the ability of the L&D to adequately invest in this
future talent. Many business heads and HR business partners had been vocal about
adopting a more utilitarian approach toward training spending. Inadequate training
opportunities were cited as one of the factors for disengagement from the younger
workforce in the engagement survey conducted in the middle of 2017. This was
also reflected in the higher trend of attrition seen in this cohort.
With the digital transformation and changes in the ways of working, the HR
function was also expected to align its offerings appropriately. The L&D function was being challenged to start offering technology-driven training content that
aligned with the ethos of the millennial generation, deliver learning outcomes in
a fun and engaging manner and which could be accessed by and benefit a larger
population.
Sahiba Verma, one of the millennial management trainees in the organization,
shares her own expectations from the L&D of the future:
Luminous Power—The ROI of the General Management Program
181
The old system of sitting in a classroom and learning in a passive way is passé. Learning has to be fun. Instead of an instructor teaching me, I want to be an active participant in
the learning process, something where I can be an active doer. Learning through games is
exciting and fun. I like online learning, which can happen anywhere and something where
I can see my progress during the whole training journey. I also expect the organization to
invest in my career through appropriate learning interventions.
5
Return on Investment (ROI) of Gmp Program
Internally debating if ROI for the program should be considered, Sharma was both
skeptical about the feasibility and also about selecting the right metrics.
Training is like watering the garden! You have to spray and pray. You cannot be getting into
ROI calculation, especially for interventions like these. Also, how do I monetize the value
of employee engagement and motivation?
While reviewing the key metrics of revenue growth, increase in manpower cost,
and training investment (Exhibit 6) over the years, Sharma wondered how to isolate the impact of training on such a significant growth that the organization had
witnessed for the past few years.
Additionally, the L&D team was divided in its opinion on continuing with such
a high-cost program benefitting a few Gen-X employees versus investing in a larger
number of millennial talent. All these were part of the overarching challenge to
build talent to meet the organization’s higher and sustainable growth aspirations.
Whatever direction the team took, the CFO’s directive was clear. A strong business
case had to be made for the GMP and other programs to get financial support in
the next year’s budget.
Exhibit 1 Talent demographics of white-collar employees as on 31 December 2017
Qualification profiling (%)
Head count (%)
Graduation
50
Industrial
23
Post-graduation
28
Sales and Marketing
23
Professional certifications
7
Support
25
Undergraduate
9
Service
22
Others
7
R&D
Manpower mix (%)
6
Generation mix (%)
Luminous (joined before May 2011)
31
Baby Boomers (1946–64)
External (joined after May 2011)
63
Gen-X (1965–76)
19
6
Gen Y (1997–95)
80
External hire from Schneider
1
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D. Dutta and T. R. Kapoor
Exhibit 2 Metrics regarding external recruitment, employee satisfaction, mobility, key talent,
Succession Planning, and retention of GMP alumni
2014
2015 2016 2017
Total external recruitment (white collar)
274
300
296
320
Total mid/senior-level external hiring done
45
75
67
80
Overall employee satisfaction score (%)*
76
74
69
67
Satisfaction with learning
(training feedback scores out of 5)
3.4
3.9
4.2
4.4
Internal mobility (from one function to another)
50
45
78
116
Internal mobility (To Schneider Electric)
6
4
5
6
14
22
32
Internal succession pipeline identified through succession 12
planning exercise for the management team and their
direct reports
GMP participants selected
Not conducted 21
20
25
GMP alumni in the system in December 2017
Not conducted 15
19
25
*Employee satisfaction was measured through external vendor using Schneider approved survey
questions. Percentage of satisfaction refers to the percentage of survey participants whose scores
exceed an average of 3,75 on a 5-point Likert scale
Source Data collated from various internal organizational systems
Exhibit 3
Human Resource Strategy for 2017–19
HR Strategy
Engaging Culture
Create an agile culture that
values diversity, recognises,
rewards and builds ‘High
Performance, lives SCOPE*
values’ and is fun to work with
Capability
Building
Ensure a ready talent pool that
supports sustainable growth
& enhances organisational
effectiveness. We also
leverage on this as a
differentiator to attract and
retain talent
Organizational
Effectiveness
Effective partnership to
measure and continually
improve the productivity and
key business metrics to
enable market win
ne and Sustainability
EHS#
Source Internal organizational documents
*SCOPE is the acronym for organizational values of Straightforward, Challenge, Open, Passionate,
Effective
# EHS—Environment, Health and Safety
Luminous Power—The ROI of the General Management Program
Exhibit 4
183
Major training needs/development areas by different business units (in 2017)
business unit
Training needs identified
Power solutions business •
•
•
•
•
Executive presence
Presentation and business communication
Strategic Acumen
Product demand planning
Business simulation
Home electrical business • Key account or channel partner management
• Leadership development
• Team building
Industrial/manufacturing • Stakeholder management/working in a matrix (multiple reporting)
environment
• Communication and presentation
• Strategic acumen
Support functions
• Spoken and written English
• Presentation skills
• MS Excel
Source Internal organizational documents
Exhibit 5
Session details of general management program
Session
Duration
Topics
Contact Program-1
April 17–21, 2017
5 days at IIM Lucknow
Campus
• Leadership and interpersonal
effectiveness
• Managerial accounting
Self-study
4 weeks
• Working on the group projects
and learning diary
Contact Program-2
July 17–21, 2017
5 days at IIM Lucknow Noida
Campus
• Emerging business environment
• Business communication
• Operations management
Self-study
4 weeks
• Self-study and working on
projects
Contact Program-3
September 11–15, 2017
5 days at IIM Lucknow
Campus
• Sales distribution and marketing
management
• Operations management
Self-study
4 weeks
• Self-study and working on
projects
Contact Program-4
November 13–17, 2017
5 days at IIM Lucknow
Campus
• Strategic management
• Financial management
• Project presentation
Source Internal organizational documents
184
Exhibit 6
D. Dutta and T. R. Kapoor
Manpower cost and training investments
Manpower cost as % of revenue
2012
2013
2014
2015
2016
2017
6.54%
7.40%
7.47%
8.08%
8.18%
8.68%
Headcount-white collar
1475
1490
1488
1540
1534
1535
Headcount-blue collar
2520
2480
2430
2445
2437
2423
NA
0.73
0.6
0.93
0.57
1.64
105.2
102.0
95.0
91.0
98.6
100.0
Training investment (in INR million)
Organizational performance
%a
a Actual
achievement of organizational performance against annual targeted plan
Source Internal organizational documents
Appendix: Teaching Note
Case Synopsis
Luminous Power Technologies, a leading Indian player in power storage solutions,
had seen rapid growth in a span of 5 years. The acquisition by Schneider Electric, infusion of talent both from parent organization and external market revealed
capability gaps within the incumbent workforce. A higher management education
program was envisaged to serve the dual need to bridge the capability gap and
build a strong internal talent pipeline for a leadership role. It was expected to
build capable leaders to take up higher up roles and feed the organization’s succession pipeline within the Luminous and Schneider entity. The L&D function
piloted a year-long General Management Program (GMP) for 20 of its executives
at the middle management level at a prestigious business school to enhance general management skills and broaden understanding of the different functional areas
of business. The program consisted of several modules on leadership, business
communication, business strategy, and essentials of finance, operations and marketing management. The L&D function had incurred a disproportionate spend on
its overall budget to roll out this program. Participants for this prestigious course
included a diverse audience of middle managers, all identified as high performing
and having high potential for future growth.
While the program was widely appreciated, it constrained the resources of the
L&D function to deliver a wide variety of programs catering to a large workforce,
especially the dominant millennial cohort. Challenged to continue the program,
the organization’s dilemma was demonstrating the ROI of the GMP program and
ensuring optimum use of L&D resources and budget to get wider coverage of the
employee base.
Luminous Power—The ROI of the General Management Program
185
Learning Objectives
The case can be used in multiple ways to take valuable insights into the L&D
and talent management domain in a multi-cultural, multi-generational heterogeneous capability environment. The purpose of the case is for students to debate
the various approaches to building organizational capability and assess the effectiveness of multiple interventions that cater to different talent segments. The case
also presents popular frameworks of training ROI, helps students apply them to the
given context, and evaluates if desired outcomes were obtained. While the expectation from L&D is to demonstrate the ROI of its investments, the function also
faces the dilemma of optimum resource allocation to ensure a socialistic approach
to training. The specific learning objectives are as follows:
● Understand the four levels of training evaluation of the Kirkpatrick model.
● To develop a suitable framework for evaluating and calculating the ROI of
leadership development programs such as the General Management Program.
● How should resource allocation in L&D be aligned with business strategy in a
cross-cultural environment represented by a multi-generational workforce with
a broad spectrum of capabilities?
● Should the L&D function focus on short-term skill development or long-term
capability building?
● Given the increased representation of the millennial workforce, what learning
methodologies are appropriate for this cohort?
Position in Course
This case has been designed for use in undergraduate/postgraduate or executive education programs in the core areas of human resource management and
organizational behavior elective courses in learning and development and talent management. The case discusses the influence and ability of L&D function
to build the organizational capability, institutionalize culture change, and understand resource allocation for larger capability building. Students will appreciate
the avenues and challenges of ROI measurement in L&D. The case also provokes
the systematic analysis around investing in capability building for the present or
the future.
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D. Dutta and T. R. Kapoor
Case Questions and Suggested Time Frame
Assignment Questions
● How should ROI be measured for the General Management Program?
● If Luminous were to run the next GMP, what quantifiable learning objectives
would you recommend for ROI calculation?
● Given this context, should the L&D function focus on short-term skill development or long-term capability building?
● What design principles should be considered while strategizing any training
intervention for millennials?
The case is appropriate for a 75–90-min class. Pre-reading of the case and analysis
by the students is necessary for meaningful discussion. The case can be taught
in the following suggested sections which emphasize the key desired learning
objectives.
Section One: The antecedents 10 mins.
● What were the context and challenges faced by Luminous Power Technologies?
● What are the multiple approaches for building capability within an organization?
Section Two: Understanding ROI of training 20 min.
● Popular frameworks and challenges in building ROI of training
● Understanding the Kirkpatrick model
Section Three: The GMP Program 30 min.
● Is Capability building being addressed by the program?
● Effective measures of success for the GMP program
● Kirkpatrick framework applied to the GMP program
Section Four: Wrap Up 20 min.
● Should L&D functions be focused on short-term skill development or long-term
capability?
● Addressing learning needs for a millennial workforce
● What happened next?
Luminous Power—The ROI of the General Management Program
187
Case-wise Analysis/Responses by Authors Along with Relevant
References
What Was the Context and Challenges Faced by Luminous
Power Technologies? What are the Multiple Approaches
for Building Capability Within Organizations?
Luminous Power Technologies had been a founder-driven organization that had
scaled up its business through the talent that lacked education and skill pedigree
but high on passion and innovation. The lower educational qualifications allowed
the organization to acquire talent at relatively lower costs than professional talent. Subsequent to the organization, the influx of more qualified talent began by
acquiring the multinational entity, Schneider Electric. This impacted both increasing manpower costs (Case Exhibit 6) and, more importantly, creating a disparity
between legacy talent on compensation and growth opportunities within the maturing organization. The new entrants were found to be more capable of dealing
with the growing business’ increasing complexities. The legacy talent’s growth
was also found to be limited, with significant gaps in business acumen, executive
presence, and other soft skills. An investment in a long-duration higher management education program was deemed necessary to provide equal opportunities
and bridge the skill gap. However, this investment was extremely expensive and
strained the resources of the L&D function to cater to the training needs of the
larger workforce. The tendency in most L&D functions within organizations is
to invest disproportionate amounts of the training budget to leadership development.6 The debate of large investments for smaller goods and the expected return
of this program form the students’ basic decision point. Additionally, students may
consider the challenges of sustainability of the expensive program and the larger
organization’s impact if these are withdrawn.
Organizational capability, by nature, is not static. Based on practices of relationship management and collaborative communication within the organization,
learnings derived from organizational experiences and development investments
for skills needed for the future, organizational capability slowly evolves Senge
(1993)7 introduced the idea of a “learning organization” as a dynamic system
that is capable of self-changing based on its ability to develop and achieve organizational goals. Organizations’ common approach is the Innovation Pentathlon
framework, which integrates organization strategy, innovation funnel, people capability, and market needs. L&D functions within organizations build key priorities
using this framework (Exhibit TN-1). Integrating the skills needed in the short/
long term for sustained business performance is a critical requirement from the
6
Lacerenza, C. N., Reyes, D. L., Marlow, S. L., Joseph, D. L., & Salas, E. (2017). Leadership
training design, delivery, and implementation: A meta-analysis. Journal of Applied Psychology,
102(12), 1686–1718. doi:10.1037/apl0000241.
7 P. M. Senge, The Fifth Discipline: The Art and Practice of the Learning Organization. Random
House, London, 1993.
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D. Dutta and T. R. Kapoor
L&D functions. Most L&D functions determine the training needs within the
workforce and basis needs identified by managers for the near-term development of individuals and rarely integrate with the long-term capability needs of
the organization.
However, long-term capability building requires the L&D function to start from
the market needs, assess capability gaps within the workforce, integrate critical skills/competencies required for the future into the competency framework,
and assess workforce readiness for defined critical skills/competencies. Development interventions should then be planned accordingly. Apart from short-term
skill development for immediate productivity enhancement, action learning is also
evolving as a popular development tool within an organization. By working on
active organizational problems, individuals and teams learn on the job, build critical thinking capability, collaborate, and enhance learning results. This addresses a
larger part of the 70–20–10 approach8 suggested for adult learning, where 70% of
learning is job related, 20% is learning from colleagues, and 10% is coursework
and training.
Understanding ROI of Training
Return on Investment (ROI) implies evaluating the training intervention in consideration of the interest and benefit of relevant stakeholders and is generally
represented in the form of financial metrics. Demonstrated ROI helps reduce uncertainty in investment benefits of learning and development. ROI evaluation is one
of the critical issues the training and development department faces to help evaluate the efficacy of training programs. Stakeholders advocating an ROI approach
for training argue that this helps build trust and justification for the training activities and demonstrates the business’s impact. However, the debate also exists if
the ethical principle of beneficence9 gets circumvented if organizations and L&D
functions focus on ROI evaluation. L&D functions may also be reluctant to measure ROI due to budget limitations and longtime/effort taken to demonstrate results
and fear of the adverse impact on training initiatives if ROI is not demonstrated.
The three normally acceptable methods to calculate the ROI are the total benefit/
total cost ratio approach, net program benefits to cost ratio (total benefit less costs/
cost), and the break-even time in months.10 Training effectiveness is usually linked
with tangible business outputs and benefit measures such as increased productivity
by either process time reduction or output enhancement, reduced operational costs,
or more tangible financial benefits for the organization. Outcome measures can
8
https://en.wikipedia.org/wiki/70/20/10_Model_(Learning_and_Development).
Principle of Beneficence refers to the moral obligation to act in accordance with other’s benefit
and interests and is considered as one of the five principles of ethical behavior required of helping
professions.
10 https://www.mscdirect.com/betterMRO/sites/default/files/pdf/roi_white_paper.pdf last accessed
on 20 March 2021.
9
Luminous Power—The ROI of the General Management Program
189
also include fewer tangible measures such as increased quality, reduced employee
turnover/absenteeism, and increased employee/customer satisfaction.
The GMP Program
How Should the General Management Program’s Return
on Investment (ROI) be Measured?
For General Management Program facilitated by the Luminous L&D team, the
challenge of calculating ROI gets pronounced as it included not one but several
modules on marketing, finance, accounting, etc., along with skill-building in leadership and interpersonal effectiveness. The wide range of topics makes it difficult
as to which specific learning aspect the organization picks up and builds on to
calculate the ROI.
Additionally, the program’s learning objectives seem to have been loosely
defined, as it was expected to build broad-based capability (see the case, page 3).
However, as an emerging technologies-based organization, a curriculum that could
enhance organizational efficiency, including innovation technology systems, organizational effectiveness, and change management, seems to have been excluded.
The stated objectives were more around the program’s description, and none of
these defined desired end outcomes and what the learner would be able to perform as a result of the learning experience, making it difficult to evaluate its
effectiveness. In the absence of clearly defined objectives initially, choosing the
right metrics for assessment becomes a challenge and hinders the process of ROI
calculation.
Additionally, the GMP program was positioned as a leadership and capability
development program, which generally implies a long-term objective. Therefore,
the ideal period for the evaluation of outcomes also becomes unclear. While the
results are expected to accrue over a long time, evaluating tangible outcomes in the
short term may be difficult to quantify. As such, leadership training has been found
to be effective in improving reactions, learning, transfer, and results11 (Lacerenza
et al. 2017).
Despite these challenges, Donald Kirkpatrick’s 4-level model is a widely used
framework for evaluating effectiveness of training programs.12 The systematic
approach focuses on training outcomes and brings a bottom-line focus critical in
for-profit organizations, allowing the L&D function to be seen as enabling organizational growth and success. However, a disadvantage of this approach is the
absence of pre-training evaluation, as it limits the ability to quantify exactly the
11
Lacerenza, C. N., Reyes, D. L., Marlow, S. L., Joseph, D. L., & Salas, E. (2017). Leadership
training design, delivery, and implementation: A meta-analysis. Journal of Applied Psychology,
102(12), 1686–1718. doi:10.1037/apl0000241.
12 Bates, R. (2004). A critical analysis of evaluation practice: The Kirkpatrick model and the
principle of beneficence. Evaluation and Program Planning, Vol.27, 341–347.
190
D. Dutta and T. R. Kapoor
difference made by the training. Additionally, it does not consider differences due
to contextual (learning culture of the organization, work or organizational goals
and values, interpersonal support for behavior change and skill acquisition) and
individual influences in the evaluation of training. Therefore, inaccurate evaluation of training ROI may result in poor decisions on training investments and
dilute training focus.
An attempt can be made to look at the GMP evaluation from the reference
of Donald Kirkpatrick’s 4-level model (see Exhibit TN-2). It is evident from the
case facts that the organization has not been able to move beyond level 2 for the
purpose of this training evaluation.
In addition to Kirkpatrick’s model, the students could be asked to evaluate
the GMP program outcomes using the COMA model (Cognitive, Organizational
Environment, Motivation, Attitude). This model is argued to be better than the
Kirkpatrick model since it augments the typical reaction by incorporating more
significant measures if found superior for formative evaluations. This model is
also better if the measures are known to be causally related to training success,
as it only focuses on factors that impact transfer. Therefore, COMA is better for
formative evaluation purposes, while Kirkpatrick is recommended for summative
evaluation. However, the COMA model’s limitation is that it does not specify how
the evaluations should be conducted. A suggested framework for the Luminous
GMP evaluations is shown in Exhibit TN-3.
Additionally, the DBE model (decision-based evaluation model) could be introduced to the students. It may be important for the instructor to qualify that the
recent DBE model will need to be tested more fully like the COMA model. The
three main targets for evaluation are employee change, organizational payoff, and
program improvement. The criteria of evaluation may be determined upfront for
employee change and organizational payoff. For employee change, the parameters
of evaluation could be performance rating improvement, discretionary behavior
and employee participation in action learning projects, and cross-functional project
participation. Organizational payoff criteria could be internal mobility and succession plan opportunities materialized. The program improvement evaluation can be
obtained from participants on completion of the program. In its present format,
the program does not seem to have intermittent assessments during the self-study
periods, which may be incorporated to strengthen learning. Additionally, the L&D
function can provide curriculum inputs based on the organization’s strategic talent
needs.
Moreover, all three models require specialized knowledge to complete the
evaluation; this can limit their use in organizations without this knowledge.
Luminous Power—The ROI of the General Management Program
191
If Luminous were to Run the Next GMP, What Quantifiable
Learning Objectives would you Recommend for ROI Calculation?
The development of effective leaders is a concern in all types of organizations.13
Leadership development involves developing multiple individuals and is recommended to adopt multilevel and longitudinal interventions (Day et al., 2014). The
GMP program has mostly focused on the managers’ skill development on dimensions of complex problem-solving, creative thinking skills, solution construction
skills, and social judgment skills, which are argued to be essential for growing
from junior-level positions to mid- and upper-level positions.
ROI evaluation for the GMP could be attempted using four distinct phases
(Exhibit TN-4):
●
●
●
●
Specific learning objectives to be articulated.
Desired benefits to be defined.
Evaluation method to be determined.
Timing of evaluation to be fixed.
A. Learning Objectives
Even before the organization works on calculating the ROI, a serious attempt must
be made to define the learning objectives. The training objectives must be appropriately defined, keeping the curriculum taught in mind. Efforts should be made
to define the learning objectives in terms of what the participants will be able to
“do” rather than what the trainer/course tutor teaches (Mager’s performance-based
learning objectives14 could be useful here). Defining specific learning objectives
of the program brings the desired objectivity to the process of ROI calculation.
B. Desired Benefits
Luminous could look at the impact of the program from two parameters—Did the
training make a difference to the participants; did the training make a difference
to the organization?
Did the training make a difference to the participants?
Here attempt should be made to look at observable differences in the participants’
knowledge, skill, or behavioral attributes because of participation in the program.
Additionally, if some of the participants belong to functions where performance
is number-driven and performance metrics are easy to measure, e.g., sales, then
13
Day, D. V., Fleenor, J. W., Atwater, L. E., Sturm, R. E., & McKee, R. A. (2014). Advances in
leader and leadership development: A review of 25 years of research and theory. The Leadership
Quarterly, 25(1), 63–82. https://doi.org/10.1016/j.leaqua.2013.11.004.
14 Mager, R. F. (1997). Preparing Instructional Objectives: A Critical Tool in the Development of
Effective Instruction. Atlanta,GA: Center for Effective Performance.
192
D. Dutta and T. R. Kapoor
their performance pre/post-program can be assessed and compared with a control
group. Such assessment can be loosely used for ROI calculation.
Another metric that can be assessed is the improvement in participant’s performance standards, measured in terms of their performance ratings or achievement
of their performance goals.
Did the training make a difference to the organization?
Another way of attempting the ROI dilemma could be to look at the impact of
the program at the aggregated level, looking at it as management development
program, different from manager development. Following could be some of the
suggested metrics:
● The number of horizontal and vertical career movements made by participants.
Such data could also be compared against the performance of a control group.
Case Exhibit 2 indicates an increase in mobility numbers within the organization. Additionally, the succession pipeline strength seems to have increased.
However, it may be difficult to build the direct causality linkage between the
GMP intervention and these successes.
● In addition to ROI, the organization can also look at whether the GMP helped in
achieving any business goal at the aggregate level. The program may not have
increased organizational affective or continuance commitment, as seen by the
attrition of 29% of GMP participants in 2015 by the end of 2017 (Case Exhibit
2). Additionally, Case Exhibit 6 indicates that no significant increase in organizational performance was seen after the introduction of the GMP program.
However, organization performance could be impacted by multiple internal
and external factors, due to which direct correlation of the program may be
challenging to support.
C. Evaluation Method
The type of data, qualitative or quantitative, and the evaluation method should be
decided relevant to the program objective and intended to measure the achievement
of desired outcomes.
D. Time Frame
The desired outcomes of any training intervention would take time to become
obvious. Here an attempt should be made to define the ideal time, short, medium,
or long run, taken to manifest the desired outcome.
Luminous Power—The ROI of the General Management Program
193
Wrap Up
Given this Context, Should the L&D Function Focus on Short-term
Skill Development or Long-term Capability Building?
The two primary perspectives through which employee capabilities are linked with
organization performance are the universal approach (best practices) and the contingency approach. Succession planning and management have typically been a
“best practice” approach adopted by most HR practitioners. Succession planning
and talent bench management have become well-institutionalized practices within
organizations’ HR and organization development functions15 (Morris, et al., 2009;
Stahl, et al., 2012). Long-range thinking and a top-down approach have typically been the way learning and development functions have focused on building
capability and managed succession planning.16 However, 34% of organizations
have cited insufficient training and the pervasiveness of traditional development
as the biggest challenge in their ability to scale. The pipeline approach of grooming a named successor to take particular roles in the organization as and when
they become available has not been found to be effective due to four significant
reasons17 :
● With 13% of leadership positions eliminated, investment is made to build
successors for roles that will not exist in a couple of years.
● The High Potential (HIPO) population does not exceed over 10% of the workforce in more than 40% of the organizations. With a quarter of this talent
attriting during the “wait period,” narrow pipelines culminate in insufficient
talent to fill future positions.
● The lack of necessary breadth and diversity of experience and network
required to succeed in the new work environment is not managed, resulting in
“misaligned pipelines.” 64% of leaders face challenges in transitioning between
levels.18
● Underperforming leaders are rarely removed or re-aligned, resulting in “rusty
pipelines” and these leaders’ inability to align with the organization’s strategic
direction.
The contingency approach of capability building posits that an organization’s
strategic posture augments or diminishes HR practice’s impact on performance.
15
Morris, S. S., Wright, P. M., Trevor, J., Stiles, P., Stahl, G. K., Snell, S., . . . Farndale, E. (2009).
Global Challenges to replicating HR: The role of People, Processes, and Systems. Human Resource
Management, Vol. 48, No.6, 973-995. And
16 Cappelli, P., & Tavis, A. (2018). HR Goes Agile. Harvard Business Review, Mar-April, 47–53.
17 https://www.cebglobal.com/blogs/leadership-pipelines-leaky-clogged-and-rusty/ last viewed on
25 May 2018.
18 http://www.ddiworld.com/ddi/media/ddi-summit/2007/2007Summit_ByhamHiggins_Unbloc
kingLeadershipPipeline_pres_ddi.pdf last viewed on 25 May 2018.
194
D. Dutta and T. R. Kapoor
The contingency perspective helps look more deeply to derive situationally specific
prescriptions and theories. Aligned to the contingency approach is the portfolio
management philosophy for succession management. This involves four steps:
● The need-based agile approach of shortening the time frame to have quarterly
updates on immediate likely leadership vacancies as against long-term supplybased planning.
● A deeper and broader-based talent identification approach, including early
and young talent. Organizations should not restrict the identification and
management process to the middle and senior management strata.
● Enable horizontal career movements to develop diversified leadership experience and build talent flexibility across the organization.
● Proactively manage the leader “re-balancing” and constantly re-evaluate the
capabilities of the leaders for the changing business and environmental contexts.
Several short-term training programs on personal effectiveness, presentation skills,
time management, Excel & PowerPoint skills, and data analytics were conducted
by Luminous. In terms of long-term capability building, there were programs like
First Time Manager Program for employees migrating from individual contributor
to a leadership role, this Management Development Program from IIM Lucknow,
Written and Spoken English program, several of the senior executives were also
sent to global programs of Ivy League institutes organized by the parent company,
Schneider Electric.
As became a melting pot of different cultures and generations, it also faced
the challenge of developing home-grown talent. In this context, the contingency
approach of capability building could be more relevant. The focus should be on
short-term skill development and long-term capability building. While short-term
programs address the immediate knowledge/skill/behavior gap, the long-term capability interventions will help scale up overall managerial capability and prepare the
organization for the future.
What Design Principles Should be Considered While Strategizing
any Training Intervention for Millennials?
Millennials, also commonly referred to as “Generation Y”, “Nexters”, “Generation
Me”, is the generation born between the early1980s and 1994, while Generation
X, also called “Gen-X”, refers to the generation born between in the early 1960s
and end in late 1970s.19 The millennials are expected to constitute nearly 50% of
the workforce by 2020.20 Managing multiple generations in the workforce is an
19
Benson, J., & Brown, M. (2011). Generational at work : are there differences and do they matter
? The International Journal of Human Resource Management, Vol.22, No.9, 1843-1865.
20 https://www.pwc.com/m1/en/services/consulting/documents/millennials-at-work.pdf
last
accessed on 25 May 2018.
Luminous Power—The ROI of the General Management Program
195
increasing area of interest for practitioners and researchers due to the challenges
posed in meeting their differential needs (see Exhibit TN-5). This challenge is also
manifesting in the learning preferences of the millennial generation.
The millennial generation has gathered a lot of attention for their unique characteristics compared with that of previous generations (Exhibit TN-5). Research has
focused on the behaviors commonly demonstrated by millennials.21 Millennials
are described as “digital natives,” i.e., a cohort or generation that has never experienced a world without computers or other handheld electronic devices and the
ability to absorb information quickly through technology. The onus on learning and
development professionals is recognizing and understanding this new generation
of learners and educating, engaging, working, and leading them effectively.
Millennials demonstrate higher levels of self-confidence than the earlier generational cohorts. Often termed as multitaskers, they perform tasks simultaneously and
believe their performance excels in this manner. Millennials process new information in a more practical and “hands-on” manner and expect immediate gratification
for participating in activities rather than rewards for achievement. They show interest in the allocation of tasks to complete as a team, but the level of commitment
among members is very shallow.22 With a low tolerance for delays, millennials
expect quick information, feedback, results, team achievements, personal promotions, and ways of fostering intrapersonal and interpersonal relationships in the
fastest and easiest way possible.
Adult learning theories argue in favor of the social and experiential methodology of learning.23 Knowles (1913–1997) defined andragogy as the art and science
of adult learning. The five characteristics of adult learners (andragogy) that differ
from the mechanisms adopted for child learners are on the self-concept (dependent
personality or self-directed human being); learning from prior experience; motivation and readiness to learn (influenced by task/societal orientation); orientation
to learning (with maturity time perspective changes from the postponed application of knowledge to immediacy of application). Additionally, learning shifts from
one of a subject-centeredness to one of problem-centeredness; motivation to learn
(internally focused in adults). Aligned with this approach, millennials’ learning
methodologies should demonstrate the synergy of millennial and adult learning
behavior (see Exhibit TN-5).
21
Eddy, S. N., Schweitzer, L., & Lyons, S. T. (2010). New Generation, Great Expectation : A Field
Study of Millenial Generation. Journal of Business and Psychology, Vol.25, No.2, 281-292.
22 Twenge, J. M., Campbell, S. M., Hoffman, B. J., & Lance, C. E. (2010). Generational differences
in Work Values: Leisure and Extrinsic Values Increasing, Social and Intrinsic Values Decreasing.
Journal of Management, Vol.36, No.5, 1117-1142.
23 Dachner, A. M., & Polin, B. (2016). A systematic approach to educating the emerging adult
learner in undergraduate management courses. Journal of Management Education, Vol. 40, Issue
2, 121–151.
196
D. Dutta and T. R. Kapoor
What Happened Next?
Due to the strong positive experience of the first batch and keeping in mind the
overall objective of capability building, another GMP was planned by the L&D
team. There was great anticipation among the mid-management workforce, who
had been keenly awaiting the program’s opening for applications. Therefore, it was
decided to open the program application process to eligible employees and not
restrict only through manager nomination. The program was oversubscribed over
three times, resulting in the need for stricter selection and screening guidelines.
The program’s ROI metrics were loosely defined in terms of performance—both
performance ratings and the achievement of participants’ performance goals.
Additionally, seeing the GMP program enthusiasm, a more junior-level, shorter
term Management Development Program was started for first-time managers and
young talent. The duration of the program was for 6 days. The curriculum
included personal effectiveness; leadership; negotiation skills; performance feedback; driving change; and short capsules on finance, marketing; and operations.
This program was expected to deepen the capability building initiative and address
the aspirations of the younger workforce. However, the shorter duration of the
program was designed to manage costs and address a larger population. Over
48 young managers were sent for this program. This program’s key outcomes
were increased engagement scores, higher retention of key talent, and mid-level
succession planning.
Keeping in mind the shorter attention span of millennials, Luminous started
Thought Leader Series sessions on TED Talks lines, where experts in academics
and industry were invited to deliver shorter duration talks. These sessions elicited
enthusiastic responses and were very much appreciated by the younger workforce.
Luminous also covered around 400 plus employees in the process of talent
reviews, where the talent was assessed on a three-by-three matrix of performance and potential. After the assessment, specific Individual Development Plans
(IDPs) were prepared for key/critical talent. This initiative also helped in feeding
succession planning.
Luminous also started with online and gamified training programs keeping in
mind the millennial population and the opportunity to replicate the content on a
large scale. Fortnightly mailers apprised the workforce of the best MOOC courses
that saw high enrollment level, with 480 employees signed up for 41 courses within
2 months of starting the initiative.
The learning and development team also started an internal trainer academy,
which leveraged skills within the workforce. Many millennials volunteered for this
and were trained in facilitation skills. Within 2 months of the program’s launch,
8 of the internal trainers had trained 328 employees. Internal trainers were recognized through organization-wide branding of their course appreciation and reward
points redeemed through gift vouchers.
The engagement survey conducted within a few months of the launch of all
these initiatives saw a 23% increase in engagement scores.
Luminous Power—The ROI of the General Management Program
Exhibit TN-1
197
Integrating innovation pentathlon framework with capability building strategy
Source Created by Authors
Required Pre-read Before the Class
● Avolio, B. J., Avey, J. B., & Quisenberry, D. (2010). Estimating return on
leadership development investment. The Leadership Quarterly, 21(4), 633–644.
DOI: http://dx.doi.org/10.1016/j.leaqua.2010.06.006
● Subramanian, K. S., V. Sinha, and P. D. Gupta, “A Study on Return on Investment of Training Programme in a Government Enterprise in India,” Vikalpa,
Jan-Mar 2012, vol. 37.
Suggested Supplementary Readings
● Lacerenza, C. N., Reyes, D. L., Marlow, S. L., Joseph, D. L., & Salas, E. (2017).
Leadership training design, delivery, and implementation: A meta-analysis.
Journal of Applied Psychology, 102(12), 1686–1718. doi:10.1037/apl0000241
● Bates, R. (2004). A critical analysis of evaluation practice: The Kirkpatrick
model and the principle of beneficence. Evaluation and Program Planning,
Vol.27, 341–347.
● Black Alison, (2010). Gen Y: Who they are and how they learn, Educational
Horizons, Vol. 88, No. 2 (Winter 2010), pp. 92–101.
● Benson, J., & Brown, M. (2011). Generational at work: are there differences
and do they matter ? The International Journal of Human Resource Management,
Vol.22, No.9, 1843–1865.
198
Exhibit—TN-2
D. Dutta and T. R. Kapoor
Measuring outcome of GMP training using Kirkpatrick model
Stage/level
How was this being assessed?
Remarks
Level 1—Reaction
The first level of Kirkpatrick
model captures the trainees’
reaction toward the program
attended. This level attempts
to answer the question “Did I
like it”
Luminous can use a
participant questionnaire that
captures the participant’s
reaction using a Likert scale
on topics such as the relevance
of subjects taught for the
current/future role, quality of
training contents, confidence
to apply the learnings to the
actual workplace, etc.
Research by (Warr, Allan, &
Birdi, 1999)24 showed that
there was relatively little
correlation between learner
reactions and subsequent
measures of changed
behavior. The L&D function
collected qualitative feedback
after every module
Level 2—Learning
The second level attempts to
answer the question, “Did I
learn it”. It measures how
much participants learned and
retained and typically can be
measured through a written/
verbal questionnaire
IIM Lucknow was assessing
course-based learning as part
of the program. Long-term
retention of the knowledge
was not being assessed after
completion of the program
Level 3—Change in
Behavior
The third level attempts to
answer the question” Did I
change”. It assesses the
application of the training on
the job. Knowing does not
equal applying. This level
measures actual changes in
behavior on the job and
specific applications of the
training material
This was not being assessed
till 2017
The L&D function could
identify specific work-related
projects to be assigned,
wherein the application of
knowledge would be enabled.
Additionally, manager
assessment on post-program
behavior and performance
was being considered to be
included in the performance
management process
Level 4—Business Impact
This was not being assessed
The fourth level of Kirkpatrick till 2017
model attempts to answer the
question” Did it make an
impact”. This level measures
the quantifiable positive
change in business metrics
(e.g., cost, productivity
improvement, sales, etc.) due
to the training intervention
Since the intent of the
program was to build an
internal pipeline, successful
cases of upward internal
mobility within a 1–2-year
timeframe could be defined as
measures of business impact
for this program
Source Created by Authors
24
Warr, P. B., Allan, C., & Birdi, K. (1999). Predicting three levels of training outcome. Journal
of Occupational and Organizational Psychology, Vol.72, 351–375.
Luminous Power—The ROI of the General Management Program
Exhibit TN-3
199
Suggested outcomes for GMP program using the COMA model
Type of variable
Training assessment
Possible measurement
variables
Both declared and
procedural variables to
assess learning gained
Participants have
mastered the skills
1. Subject evaluation
by IIM-L
2. Post-program
performance
improvement
Organizational (O) Organizational
variables that impact
the transfer of learning
The support provided
by the organizations to
enable the application
of skills
1. Action learning
projects assigned
2. Cross-functional
project participation
3. Role and knowledge
expansions through
horizontal job rotation
Motivation (M)
Refers to the desire to
learn and transfer to
organizational contexts
Motivation to learn can
be measured at the
onset of the program,
and transfer can be
measured immediately
after
1. Attendance and
active participation
during the program
2. On-time completion
of assignments
3. Voluntary
participation in
organizational projects
4. Mentorship of
juniors undertaken post
the program
Attitude (A)
Individual’s beliefs,
feelings, and thinking,
specifically on
self-efficacy, perception
of control and
expectations of self and
environment
Survey-based
instruments to measure
the various attitude and
belief constructs
1. Survey-based
assessment before and
after the program
2. Discretionary effort
demonstrated as
assessed by supervisors
and team
Cognitive (C)
Source Created by Authors
Exhibit TN-4
Steps for calculating ROI of any learning intervention
Desired Benefits
Learning objective
Evaluation Method
Time Frame
Source Created by Authors
● Eddy, S. N., Schweitzer, L., & Lyons, S. T. (2010). New Generation, Great
Expectation: A Field Study of Millenial Generation. Journal of Business and
Psychology, Vol.25, No.2, 281–292.
200
Exhibit TN-5
D. Dutta and T. R. Kapoor
Generation classification and typical behaviors associated with the generation
Generation
Period
Other names
Typical characteristics/
behavioral patterns
Traditionalists
1945 and before
Veterans, Silent, Radio
Boomers, The Forgotten
Generation
Conformers, dedication,
sacrifice, duty before
pleasure, discipline,
patience, loyalty
Baby Boomers
1946 to 1964
Moral Authority, “Me”
Generation
Anti-government, equal
opportunities and rights,
personal gratification
Gen-X
1965 to 1981
The Doers, Post Boomers
Balance, diversity,
entrepreneurial, fun, highly
educated
Millennials
1982 to 2000
Gen Y, Gen Next, Echo
Boomers. Digital Natives,
Net Generation
Self-confident, sociability,
diversity, extreme fun,
extremely techno-savvy,
instant gratification
Centennials
2001 onward
iGen, Gen Z, Gen Zee
Vigilant outlook, tempered
expectations, less
self-absorbed, more
self-assured
Source Dutta, D., & Jain, A. (2015–16). Effective Learning Methodologies for The Millennial
Generation. L&T | LDA | Journal of Management, 11–18
Exhibit TN-6
Training design principles for millennial
Source Created by Authors
Luminous Power—The ROI of the General Management Program
201
Debolina Dutta is a professor of practice in the OB & HRM department at the Indian Institute
of Management Bangalore. She has a rich experience of 30 years in industry across all major
facets of HR functions spanning multiple locations, cultures, and organizations. Her industry
experience spans heavy engineering and electrical switchgear, IT software services, alcobev, and
apparel retail. She had served as the CHRO for 6 years with multinational organizations such
as Schneider-Luminous and VF Corporation. Her research work has been published in Human
Resource Management, The International Journal of HRM; Equality, Diversity, and Inclusion: An
International Journal; and many other outlets
Tilak Raj Kapoor is an HR leader and practitioner. He has an overall 20 years + exp in Home
Electrical, IT hardware, Pharma & Chemical sectors. His experience in HR spans Industrial Relations, Learning and Development, HR Business Partnership and regional and Corporate functions.
In the present role, he is leading the HR function for the confectionary business unit of DS Group
and based out of Noida, in the National Capital Region of Delhi, India.
Siemens Gamesa Renewable Energy,
India: Employee Engagement
Initiatives on the Journey
to the Deming Award
Pragnya Acharya and Lalatendu Kesari Jena
1
Introduction
Since its inception, employee engagement has been of prime importance at
Siemens Gamesa Renewable Energy (SGRE). SGRE is one of the leaders in the
renewable energy industry, pioneering in Onshore, Offshore and Service. With
world-class innovation in developing sustainable energy for a better world, SGRE
also creates a workplace environment for better people who are engaged, empowered, and nurtured for holistic development. SGRE is engrained with the ethos of
talent farming, which aims to bring organic growth to the organisation and cultivates a culture of employee involvement and engagement through unique initiatives
catering to today’s growing demand for a highly engaged workforce.
SGRE India has shown outstanding numbers in terms of highly engaged
employees. With approximately 50% of its employees under the “highly engaged”
category and almost negligible in the disengaged category, the strategies adopted
have proven to be very successful in enhancing the engagement levels of the SGRE
workforce, as seen in a recent survey conducted in the organisation. The initiatives
are designed to suit the unique nature of skills that SGRE employees possess. The
technicalities of the work are augmented by developmental strategies to gain buyin from the employees, who actively participate in formulating these initiatives
through opinion surveys and Total Employee Involvement Practices.
Japanese companies say: “MONOZUKURI WA HITOZUKURI”. This means
“Manufacturing products is equal to developing People” (Bjorn et al., 2010;
P. Acharya · L. K. Jena (B)
School of Human Resource Management, XIM University, Bhubaneswar, India
e-mail: lkjena@xim.edu.in
P. Acharya
e-mail: pragnya.sambit@siemensgamesa.com
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_10
203
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P. Acharya and L. K. Jena
Mawhinney, 1992). Skill sets required for Wind Industry are unique and different
from other Industries. The major challenge is the availability of skilled workforce from the market. No specific academic courses are available for Technicians
(Operators) to work in manufacturing processes specific to wind turbine parts.
Hence, the Human Resources function strategised and created a Skill Development Model (Redmon, 1992) to train fresh talent from different trades through the
in-house Skill Development Centre by training them in niche manufacturing processes of blade production, nacelle assembly, and hub production. The objective is
to develop the skills and nurture the potential of the people (Technicians), which
will help them with their individual growth and contribute to the development of
Indian society.
The Human Resources function at SGRE is responsible for Manpower Planning and Budgeting, Recruitment, Employee Retention, Employee Welfare, Total
Employee Involvement (TEI), and Skill and Competency Development across
Industrial Operations (IO). SGRE strongly trusts “Employee Performance” is
not alone depending upon Skill/Competency but also depending upon their
“Willingness” (WILL). HCM is responsible for Employee Skill and Competency
Development and Will Enhancement. Performance of an Employee = (Skill or
Competencies) × (WILL).
2
Type of Case
Protagonist: The case has been derived from an in-depth study of the Deming
Process documents of the organisation in concern and hence does not require a
protagonist. It elaborates on the organisation’s process and strategies leading to its
victory of the Deming Award 2019.
3
The Challenge
The story was only sometimes so enticing, and SGRE has seen its share of challenges. Processes and engagement strategies were an uphill task to implement as
the skill requirement of this industry is unique. Moreover, the renewable energy
industry in itself is very nascent. Hence SGRE had almost no legend to inspire
itself or no ready best practices to implement. The success story of achieving a
highly engaged workforce results from the meticulous internal development of
strategies and has been achieved over a while. A set of challenges witnessed by
SGRE are as follows:
● The major challenge this industry faces is the talent crunch; hence, the dire
need to retain available talent is evident. The skill or knowledge required for the
renewable energy industry must be custom trained in the new hires, and the time
to productivity is very long. Expertise in this area is achieved through rigorous
technical training and practising process. Therefore, a specialised, state-of-art
Siemens Gamesa Renewable Energy, India: Employee Engagement …
205
“Skill Development Centre” was established in all Plants of SGRE. Therefore,
employee engagement and retention were of prime importance for retaining
such knowledge workers. The cost and impact of losing such critical talent are
very high.
● Earlier, SGRE used to follow a task-based training for such employees, which
turned out to be an issue due to the upgradation of technology, which required
these workers to be trained from level 1. The Skill Development Centre
encountered various challenges while training employees on new technologies.
● With the growing environmental protection awareness, SGRE proliferated in
the industry and required expert talent to drive this growth. Greenfield projects
had to be set up; therefore, experienced technicians were crucial. This led to
a requirement of not just engagement but an approach towards sustainable
engagement to create a long-term employee life cycle within the organisation. Senior employees needed to be skilled with technical abilities but needed
project management and people management abilities, which proved to be a
more significant challenge at a much larger level.
● Career progression is essential for employee engagement; it also showed some
areas of concern within and within the organisation. The job roles needed to be
enriching and not merely technical and mundane. The will to go beyond and
deliver for perfection had to be built from scratch as the employees were still
figuring out their futures.
The challenges faced by SGRE onshore India, unlike its global parent, had the
darker shade of a tough growing economy to address. The Indian economy is
known for its volatility and gigantic size. With the size of the economy, maintaining skilled employees within the industry posed a task at hand as well. Innovating
on-the-job roles and career enhancement had many red flags to its account, along
with welfare aspects which needed substantial development.
4
Assessment Tools for Solution Analysis
4.1
Affinity Diagram
Also known as affinity chart, affinity mapping, K-J Method, and thematic analysis,
it was created in the 1960s by Japanese anthropologist Jiro Kawakita. The affinity
diagram organises various elements under relational categories. It is beneficial for
identifying key problem areas and grouping causes under one impact area, making
the impact area the critical actionable area (Gallagher et al., 1993; Rogers, 2003).
After ideas, issues, problems, and effects are identified from a free-flowing brainstorm, discussion or observations, grouping them based on their similarity gave
rise to an affinity diagram (Geyer et al., 2011). The possible solutions to the above
challenge were listed and mapped onto the three significant areas in Table 1.
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Table 1 Resolutions to address L & D challenges
.
.
.
c. Skill Enhancement
Specialized Skill
Training
Technical
+Behavioral
Competency
People Skills
4.2
b. Will
Enhancement
More Involvement
More
Empowerment
More Recognition
..
.
a. Employee Engagement
.
.
..
Better Welfare
Better Results
Higher Loyalty
Better Internal Brand
Validation of Opportunities: RE-AIM Approach
The RE-AIM Approach is a technique followed in SGRE (refer to Table 2) for testing which of your solutions will fulfil the criteria defined under RE-AIM, where
R stands for Reach, which talks about the coverage or scope of the solution, E
stands for Effectiveness, which helps to gauge the extent to which this solution
will effectively solve the issue at hand; A stands for adoption, determining the
ease of adaptation, comprehension and acceptance of the chosen solution; I stands
for Implementation, (Glasgow et al., 2005), which look at the possibility of implementation of the solution concerning the technological know-how and in this case
the cultural bandwidth of the critical area; M stands for maintenance, depicting the
longevity and quality standards upkeep of the chosen solution (Green & Kreuter,
2005; Pfadt et al., 1992).
Table 2 RE-AIM approach of SGRE
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Fig. 1 Employee engagement model of SGRE
5
Skill Development
5.1
Potential Skill Development for Technician
To make all the Technicians “Expert (JUKURENKOU)” (Austenfled, 2001) in their
respective field/area SGRE Under this policy, systematic Education and Training
are extended to the Technicians. The overall employee engagement model followed
by SGRE in this regard is presented in Fig. 1.
5.2
Skills
Skills are categorised into Generic and Technical Skills. Generic skills are categorised as Safety awareness, Suggestions, 5S, Quality Circle Story, Teamwork
and Self Discipline. The supervisor assesses technicians with four scale rating.
The levels are updated in the Technician’s skill card based on the assessment.
Technical skills vary from Plant to Plant. The supervisor assesses the Technicians
with four scale rating (Level 1—Can work but need help, Level 2—Can work but
need help sometimes, Level 3—Can work independently, Level 4—Can work and
train others). The levels are updated in the Technician’s skill card based on the
assessment.
5.3
Skill Assessment
The supervisor assesses the existing skill levels based on the one-to-one discussion with the Technician and sets the yearly target. For Generic Skills,
Training and Development provides evaluation criteria to Supervisor for assessing the Technicians. The Supervisor will assess technical skills based on their
shop Floor observation. The final target is to make all the Technicians “Experts
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P. Acharya and L. K. Jena
(JUKURENKOU)”. The progress towards the target is recorded in the ‘Technician
Skill Card’ and will be evaluated yearly.
5.4
Skill Development
5.4.1 Off-Job Training (Off-JT)
After skill assessment, the Training and Development function of HCM discusses
with the respective supervisors to prioritise the off-JT requirements and design
the training modules. Based on the inputs, Education and Training Plan (E&T) is
prepared to provide Off-JT. The training and development Manager is responsible
for executing Off-JT through Classrooms. The effectiveness of Off-JT is evaluated
upon completion of six months and a plan for retraining if required.
5.4.2 On Job Training (OJT)
The supervisor prepares the training requirements based on the Skill assessment
and executes the same on the shop Floor through the OJT for Technicians.
5.4.3 DOUJOU
To make all the Technicians as JUKURENKOU, SGRE developed a DOUJOU,
wherein the Technicians are trained extensively to become JUKURENKOU (Walton, 1986). For example, “To eliminate the product defects in the painting area”,
training and development created a painting DOUJOU to provide on-the-job training for trainees/Technicians by the supervisors. The training curriculum followed
at SGRE is presented in Table 3.
Table 3 Training curriculum
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6
Potential Competency Development for Executives
6.1
Competency Assessment
209
SGRE kickstarted the potential competency development programs for executives
in 2017, categorising the competencies into Behavioural and Functional Competencies. (A) Behavioural Competencies: SGRE has eight Behavioural Competencies,
common for all executives—for example, Teamwork and Collaboration, Interpersonal relations and communication. (B) Functional Competencies: Functional
Competencies vary from function to function and are required for an executive to
do the job effectively. For example, “Product Knowledge and Process Knowledge”
are some identified competencies for Blade production.
Executives are assessed with four scale ratings (Level 1—Can work but need
help, Level 2—Can work but need help sometimes, Level 3—Can work independently, Level 4—Can work and train others). The manager assesses the existing
competency levels based on one-to-one discussions with the executive and sets
the yearly target. For Behavioural competencies, the Training and Development
section provides evaluation criteria to the manager for assessing the executives.
Based on the assessment, the levels are updated in the Executive Competency
Card and evaluated yearly.
6.2
Competency Development
6.2.1 Classroom Training
After the Competency Assessment, the Training and Development section head
discusses with the respective Managers to prioritise the classroom training requirements and training modules are prepared in consultation with the expert faculty
(Internal and External). Immediate feedback about training is taken from the
Trainees, and the result is reflected in the next course. The effectiveness of
Classroom training is evaluated upon completion of six months and a plan for
retraining if required. The PDCA for Classroom E&T is followed similarly to
Skill Development.
6.2.2 On the Job Training
The manager prepares the training requirements based on the Competency Assessment and executes the same in the department through OJT (Assignments,
Coaching, etc.).
7
The Effect
From Table 4, it can be inferred that, over a period of three years, from January
2018 to December 2018, there has been a significant incremental movement of
employees from lower skill levels (Level 1) to higher skill levels (Level 4). From
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Table 4 Overall potential skill development of employees
a mere 12% of the workforce in Level 4 in 2015 to a staggering 54% in 2018, the
Skill development centre has been a significant development over the previously
existing models of ILUO.
The competency development initiative started as an initiative to progress
towards the Deming qualifications and was implemented in 2017. This initiative
concentrated on moving the workforce from skill level 1 to levels 2 and 3 and
creating a majority of moderately skilled workforce for meeting the mass requirements. Less focus was given to Level 4 conversions, and as Table 5 depicts, 100%
of the employees progressed from Level 1 to Levels 2 and 3.
Table 5 Progress of employees at different levels
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The engagement levels of the technicians and the executives were measured
by their involvement in the various schemes launched. Two primary metrics were
the no. of suggestions and initiatives received per year and employees. Tables 6
and 7 depict the actual numbers meeting and surpassing the predicted targets. This
reflects very positively on the strategies, and the workforce observed a boost in
the Total Employee Involvement levels. Tables 8 and 9 exhibit similar patterns of
increase in employee involvement over the years, with a full 100% participation
in 2017 and 2018. The strategies implemented showed a growth of an average of
33% in the participation rate, cementing the success of the initiatives.
Table 6 Suggestion participation-technician
Table 7 Suggestion/technician/year
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Table 8 Suggestion participation-executive (%)
Table 9 QCC participation (%)
With skill retention as one of the major focus areas, employee retention and the
Opinion survey participation rate were the significant parameters for measuring
the impact of the Employee engagement initiatives.
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213
“WILL” Enhancement
The following motivation initiatives were undertaken to improve employee willingness:
Enhancement of Total Employee Involvement (TEI)
A focused approach towards ‘Total Employee Involvement’ initiatives such as:
a. Suggestion Scheme—Technician: All Technicians/Trainees working in the plants
are participating in the suggestion scheme. Participation Target: 6 Suggestions/
Technician/year.
b. Suggestion Scheme—Executives (Kaizen): All Engineers and Managers are
encouraged to participate in workplace improvements.
c. Quality Control Circle (QCC): All Technicians/Trainees working in the plants
participate in QCC; technicians are motivated to participate at the internal
convention, group level convention, state level, National and International
competitions.
d. QCC steering committee is formed, which acts as a secretariat at Industrial
Operations (IO) level and plant level to strengthen and enhance the practice of
the Quality Control Circle. The primary activities of the Committee are preparing the annual QCC schedule, preparing promotional activities and training
plans and ensuring training to the Supporters and Promoters.
e. Quality Improvement Team (QIT): Executives are encouraged to form teams for
handling projects towards specific issues faced by the plant or opportunities for
improvement or addressing customer complaints. Executives are motivated to
participate in the internal convention, group level convention, state level and
national level competitions.
f. Participation in National/International Conventions: So far, 22 QCC/QIT teams
have participated in State level competitions and 15 teams in National level
competitions. LAST YEAR, 3 QCC teams participated in the International
Convention in Manila, Philippines. In 2019, 3 QCC teams from SGRP were
selected to participate in the International Convention in Tokyo, Japan. Similarly, 29 teams/individuals have participated in Kaizen/Poka-yoke competitions
in India.
g. Kaizen and QC Story Bank (Knowledge Management Portal): The knowledge
Management Portal (KMP) tool is a complete repository of all improvement
projects completed through Kaizen and QC Story projects. These knowledge
references allow employees to easily retrieve implemented improvements across
all the plants, enabling appropriate horizontal deployment in other plants.
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9
Employee Morale
9.1
Employee Retention and Career Development
● Trainee/Technician Career Development
Based on the skill and performance of the trainees (Fresh ITIs)/technicians are
progressed to the senior technician and, after that, to Zone Leader/Supervisor.
● Executive’s Career Development
A career progression model has been implemented for progressing Junior Engineers/GETs/MTs/Engineers/Executives to move to the following levels based on
skill and performance. Executives are identified and sponsored to acquire higher
education, and they are encouraged to participate in Global Leadership Program.
9.2
Employee Opinion Survey (EOS)
The purpose of EOS is to enhance the Employees’ WILL (Morale up). With this
aim, EOS is conducted among the Technicians and Executives annually in all the
plants. Based on the results, an action plan is prepared to address the low-score
questions (<75%). An action plan is prepared in discussion with a focused group
of Management and Employees to take countermeasures for enhancing employees’
Will and Morale. EOS progress in one of the categories is presented in Table 10.
10
Employee Welfare
10.1
Employee Welfare Committee
The organisation is committed to employee welfare. The welfare committee
consists of technicians and executives and meets every month to listen to the
employees’ issues, Employee Opinion Survey feedback and address them suitably.
Based on the inputs received from the welfare committee, the actions are initiated
by HCM with other support functions. For Example, Policies such as long service
awards, Employee Girl Child Education Support, and scholarships to Employee
children were introduced.
10.2
Long Service Award
To recognise and appreciate the Long-term commitment, dedication and loyalty
of the Employees who have achieved significant milestone years of service in
the organisation (5 years/10 years/15 years/20 years and 25 years). The eligible
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215
Table 10 A model employee opinion survey
Analysis of ‘Technician’ employee opinion survey (Blade Plant 1)
Category
Questions asked
Score (%) Action taken
2017
Work environment My workplace is 69
hygienic, safe and
physically
comfortable to
work
SGRP overall score
(%)
2018
Workplace is
82
cleaned up and
sanitized frequently
for good hygiene.
Implemented ‘5S’
in our
Housekeeping areas
Regular safety
awareness program
conducted and Near
Miss observations
have been reported
and corrective
Action taken
Introduced
balanced food for
employees to
maintain their
health
Based on
suggestion input,
Additional tools
and fixtures have
been provided to
work comfortably
employees are recognised in an organised function with an appreciation certificate
and quarterly award by the Head of the Department. So far, 573 Employees have
been recognised.
10.3
Employee Girl Child Education Support
Through this policy, financial assistance is extended to the employee’s children
(Technician to Senior Engineer levels) to promote and encourage the Education
of girl children. Girl Children studying from kindergarten to post-graduation are
supported towards paying school fees. Two hundred thirty-two employees’ girl
children are benefited so far.
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10.4
P. Acharya and L. K. Jena
Scholarship to Employee Children
A scholarship is provided to recognise the meritorious academic performance of
the Employee’s children studying in schools.
10.5
Employee Annual Medical Check-Up
Every year, a free medical check-up camp is organised at all plants for regular/
contract employees and trainees to maintain the employees’ health. Based on the
report, employees are advised for further medical treatment, if required. Employees
have covered under the group mediclaim policy for in-patient medical treatment.
10.6
Group Medical Insurance
This scheme provides medical benefits to employees, their spouses and two
children. Employees also have the option to include their parents and in-laws.
10.7
Group Personal Accident Insurance and Group Life
Insurance
Personal Accident Insurance benefits the employees in the event of partial/
permanent disablement. Group Life Insurance benefits an employee’s family in
case of any employee’s loss of life, which is unique among the Industries in India.
10.8
Events and Celebrations
During Family Day, celebration employees and their families join the event, and
children showcase their extra-curricular activities. Family Day is creating bonding
within the organisation. During the day, employees’ families visit the factory and
feel proud of their family member’s contribution to SGRP.
Some of the employee engagement activities, such as Festival celebrations,
Women’s Day and Art competitions for employees’ children, are conducted, which
reflects on the culture and creates a bonding with the employees and their families.
Every year voluntary blood donation camp is organised in the factories towards the
noble cause of donating blood to hospitals through NGOs.
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10.9
217
Employee Recognition
Employees are appreciated and motivated to continue their good performance
through the monthly Reward and Recognition program. Technicians also get
opportunities to present their projects at National and International level competitions, increasing their morale.
Technicians are provided with an opportunity to execute new projects globally.
Considering the skill level of the technicians, the global team has been assigned
the responsibility of executing new prototype rotor blades (SG145) in India for the
global market. Executives are identified and sponsored to acquire higher education
and nominated to participate in the Global Leadership program.
11
Discussions and Case Questions
The case discusses the various challenges that were being faced by Siemens
Gamesa Renewable Energy (SGRE) in maintaining a highly skilled and engaged
workforce which would also ensure the longevity of tenure of these employees
who were custom trained for their job fitment. The critical areas of Skill and Will
enhancement for a Renewable Energy company are essential owing to the skill
dearth in the market. What were the primary areas identified by SGRE and the
subsequent actions taken to develop a highly engaged and skilled workforce?
Funding The authors received no funding for this article’s research, authorship, and publication.
Declaration of Conflict of Interest The authors declared no potential conflict of interest concerning this article’s research, authorship, and publication.
Appendix: Teaching Note
Abstract: This case concentrates on sustainable employee engagement of niche
skilled talent of the wind turbine production giant SGRE India, Pvt. Ltd., The
organisation faced significant challenges with attrition and talent drain due to the
volatile nature and tough competition in the renewable energy industry. The case
highlights the various initiatives for engagement through skill development and
behavioural competency development for retaining talent and ensuring the continuity of tenure. The solutions were designed through a three-pronged approach of
Skill Development, Will Development and Employee Welfare, including initiatives
that led to the successful journey of winning the prestigious Deming Award. This
case is a classic example of employee engagement strategies leading to measurably
positive results, eventually recognized through the Deming Award.
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P. Acharya and L. K. Jena
Target Learning Group: The analysis of this case is suitable for understanding
the nuances of employee engagement and motivation strategies by postgraduate
students pursuing their master’s in business management. The ideal student category would be those with Human Resources and Operations as their electives.
The case is also relevant for organisations in the Renewable Energy Sector, Manufacturing Sector and Sectors employing rarely skilled workers, considering best
practices for employee engagement, retention and morale building through talent
development.
Learning Objectives: This case determines the effectiveness of various strategies developed for enhancing employee engagement and, eventually, retention
through the in-depth analysis of the opinion survey and skill inventory study with
the help of skill cards and records. The transformation of the task-based training
model to the skill-based training model is another excellent example of employee
development for addressing the skill dearth of rare technicians. By the end of this
case analysis, the audience will be able to:
1. Analyse and understand the various initiatives designed by SGRE to address
attrition of talented niche employees and how they devised successful sustainable engagement practices.
2. Understand and appreciate how good skill development initiatives can enhance
employees’ will and positively impact sustainable engagement scores, leading
to better retention.
3. Explore the various employee engagement strategies that can be adopted by
manufacturing sector companies for designing their path towards achieving the
Deming Award.
Assignment Questions
1. Describe the nature of the industry of SGRE and the various industrial factors
that determine the type of workforce employed.
2. What are the various challenges faced by SGRE in terms of workforce retention,
and how did they impact the business?
3. What were the critical areas of concern for the organisation, and how did they
funnel the problems to arrive at these critical areas?
4. What does SGRE adopt the various Skill Development and Competency development strategies for becoming a Deming Organization, and which, according
to you, are the best initiatives and why?
5. What is the relation between Skill and Will development, and how does it
contribute to Employee retention? Relate it to this case and draw your analysis.
Teaching Plan: The students need to be provided with the case to prepare
thoroughly and note down their understanding of the case keeping the above
questions in mind to facilitate focused discussion and a deeper understanding of
Siemens Gamesa Renewable Energy, India: Employee Engagement …
219
the. Additional reading on Employee Engagement, Talent Development, Employee
Retention strategies and Deming Principles will significantly enhance the understanding of this case. Knowledge of the following topics will help the students to
have a better discussion on the case study:
1.
2.
3.
4.
5.
6.
Tools for solution analysis
Affinity mapping for problem-solving
Training and Development Methodologies
Behavioural Competency Development
Career Path Progression
Employee Welfare Strategies
This case study can be taught in the following way. A single session of 110 min
can be divided into 60 min for case discussion and 10 min for presentations by
2–3 student groups, and 20 min for summarising the learnings and closure.
● Group Discussion: The class may be divided into three groups, and each group
should be allotted one of the following topics: a. Skill Development b. Will
Development c. Employee Welfare. The groups have to understand the case
and justify why and how these strategies were developed and their significant
impact on retention and engagement of the workforce. An additional discussion
point could be related to the Deming principles to make analysis more industry
relevant. Each group can present for 7 min and allocate 3 min for the audience
and instructor questions.
● Class Discussion: This discussion is to be led by the instructor, where the questions are answered and delved deeper into with the help of the instructor’s
insights. Areas beyond the case study should be explored, and new viewpoints
should be encouraged by the instructor to extract new ideas for employee
engagement and retention.
● Ensure Learning Curve: During the summarisation of the case by the instructor,
the key takeaways and concepts can be highlighted to ensure that the authentic
learning of the concepts takes place. Additional readings need to be suggested
by the instructor to augment the learning.
● Assessment: The participants must prepare a write-up answering the case questions. The answers should be precise and highlight the key concepts. Relevant
literature should be referred to and cited wherever required.
Conclusion
The primary focus of the case questions is to understand the process of skill dearth
to skill abundance, the critical success factor for a company dealing with a niche
requirement. Understanding the process will ensure replicability in other organisations post-normalising the initiatives taken per their own situational or sectoral
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P. Acharya and L. K. Jena
requirement. Improvement in skill will create the urge for increased organisational
commitment, leading to workplace engagement. The discussions about the areas
of concern and their tackling strategies in the making of a skilled workforce give
managers insight into handling such situations efficiently and effortlessly.
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Pragnya Acharya is the Senior Executive of HR with Siemens Gamesa Renewable Energy.
Before this, she worked as an Assistant professor with XIME Chennai and IPE Hyderabad. She
has pursued her undergraduate degree in Business Administration from the Madras Christian College, Chennai, where she received the Governor’s Award for all-round achievement, and her Post
Graduate Diploma in Business Administration from the Institute of Public Enterprise, Hyderabad, specialising in Human Resources and Marketing. She is pursuing her Ph.D. with the Xavier
School of HRM, Xavier University Bhubaneshwar, India. With an avid passion for public speaking, she has participated and won laurels in various debates and open discussion forums. She is
also an active speaker on management topics primarily related to HR, Organizational Behavior,
Organizational Development, Learning and development, and Diversity Inclusion.
Lalatendu Kesari Jena is an Associate Professor (Human resources) in the School of Human
Resource Management, XIM University, Bhubaneswar, India. He has more than 20 years of experience in both academics and corporate HR (with Hindustan Aeronautics Limited, Indian Defence
PSU), including seven years as a Faculty Member in HR at ICFAI University, Hyderabad, India
and Central University of Orissa, India. He specialises in human resource planning, performance
Siemens Gamesa Renewable Energy, India: Employee Engagement …
221
management, learning and development, and talent assessment. His research interest lies in areas
such as HRM and Sustainable Development Goals; Self-steering, self-Organizing Teams and Leadership; Job Crafting; Job Insecurity; Millennial and work ethics; Return on Investment in HR
Programs, Sustainable HR through Disruptive Leadership; Attitude and Productivity; Joy at Work;
Workplace Persuasion; Employee Retention and Leadership Challenges; Abusive Supervision; Performance in Multi-tasking Environment; Stress and Coping; Meaningful Engagement and he has
published papers on them in tiered national and international journals. He has completed his Ph.D.
from IIT Kharagpur, India (# = 314 in QS Global World University Rankings 2022) on the topic
“Workplace Spirituality and Human Resource Effectiveness” and did his Post Doc. on “Employee
Retention and Leadership Challenges” at Loyola Leadership School, Universidad Loyola, Seville,
Spain (ranked #581–590 in QS Global World University Rankings 2022).
Leave Bank—A Unique Social
Security Concept
Sanjeev Shantkumar Doshi
and Upasna A. Agarwal
Mr. Rao, Managing Director (MD), Rashtriya Chemicals and Fertilizers Limited (RCF), was very happy with the success of voluntary Leave Bank Policy
which was introduced in 2010. While over a decade of operation of the scheme,
twelve employees and their families had benefitted from the benevolent scheme,
the sustainability of the scheme was in question. Latest reports indicated dwindling
number of members contributing to the scheme. On one hand, tenured employees,
who were the key opinion leaders and were on the verge on retirement, were shying away from subscribing to the scheme any longer. On the other hand, the newly
joined employees, who were not very serious about long term association with the
company, also showed disinterest in participating in the scheme.
1
Rashtriya Chemicals and Fertilizers Limited
Rashtriya Chemicals and Fertilizers Limited is a leading fertilizers and chemicals
manufacturing Central Government Public Sector undertaking based in Maharashtra, India. It has two manufacturing Units, one at Chembur a suburban area of
Mumbai and another at Thal, Alibag, which is about hundred kilometres away
from Mumbai. The Company also has a national level marketing network and
commands a major market share.
S. S. Doshi
Rashtriya Chemicals and Fertilizers Limited (RCF), Chembur, Mumbai, India
e-mail: sanjeevdoshi@rcfltd.com
U. A. Agarwal (B)
Indian Institute of Management Mumbai, Vihar Lake, Mumbai, India
e-mail: upasnaaagarwal@iimmumbai.ac.in
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_11
223
224
S. S. Doshi and U. A. Agarwal
In addition to providing direct employment to 3200 employees, RCF provides
business opportunities to around 8000 dealers and opportunities of work on turnkey
basis to around 80 service providers who in turn engage around 3000 labours in
specialised occupational roles.
RCF has played a major role in the regional development of areas around its
Thal plant located in Alibag district thereby enhancing the socio-economic status
of the people over there.
2
Mahesh in Coma
It was a busy Monday morning in the last week of December for Shekhar, the
Chief HR Manager of Rashtriya Chemicals and Fertilizers Limited (RCF) in 2010,
when he received a call about an employee Mahesh who had met with a near fatal
accident on the highway—stone’s throw away from the company’s corporate office.
Over the next fifteen months, Mahesh lay in comatose state in the RCF hospital.
By Dec 2011, all of Mahesh’s leave had expired, which means his salary would
have to be stopped.
Although there were social security schemes that addressed case of fatality
and superannuation if they occurred in the company premises, there was no such
statutory/non-statutory measure in case of an employee was incapacitated due to
injury outside workplace.
Mahesh was the only earning member of his family and once his salary stopped,
his family would be in dire financial distress and kids’ education would come to a
standstill. This would be very unfortunate and impact the future of the next generation. Given the grave implications of discontinuing Mahesh’s salary, Mr Rao, the
MD, summoned an urgent departmental meeting to explore possible interventions.
3
Departmental Brainstorming Session
During the departmental discussion, one of the employees shared a recent published news about a patient Ms. Aruna Shanbaug, a nurse working with King
Edward Memorial (KEM) hospital in Mumbai who had slipped into Permanent
Vegetative State (PVS) after being assaulted by a miscreant in November 1973.
The article further narrated the exemplary manner in which KEM hospital, and its
staff had been taking care of their colleague for more than 37 years. The Supreme
Court had special words of appreciation for the KEM Staff for their dedication
all these years which read as “We also commend the entire staff of KEM Hospital, Mumbai (including the retired staff) for their noble spirit and outstanding,
exemplary, and unprecedented dedication in taking care of Aruna for so many long
years. Every Indian is proud of them.”
Leave Bank—A Unique Social Security Concept
225
Borrowing a fig of thought from the reported item, one of the employees suggested a very fresh solution to address Mahesh’s problem. Just as employees make
contribution of Rs. 100/- towards Death Benevolent Scheme, extending the same
logic, employees could also contribute one day’s leave from their leave account. A
quick calculation indicated, that if everyone voluntarily contributed one day’s leave
(with salary), cumulatively from all the 4000 employees on roll as of December
2011, that would amount to 4000 days salary. This would translate to equivalent
to a paycheck of 133 months or in other words over 11 years’ service.
The suggestion was different, had great merit and was very progressive. It had
no parallel in any Indian organization so far. Income tax and audit parameters were
soon worked out and it was clear that there was no financial implication of this
scheme on employees or the organization. Union and employees too had extremely
positive response to the scheme voluntary nature of the scheme, and they stepped
forward to help Mahesh.
Mr. Rao had a sign of relief to finally see some way of helping Mahesh and his
family without financially draining the organizational coffers.
The Leave Bank Policy was duly approved by the Management in January 2012.
The scheme was implemented with effect from 1st February 2012. The salient
features of the scheme were intimated to the employees vide circular dated 25th
February 2012.
Under this scheme, any employee who is incapable of attending to his/her duties
due to a prolonged illness or disability, and has exhausted his/her own leave balance, is allowed to draw, and utilise leave that is ‘banked’ voluntarily by other
employees of the company.
(Enclosed at Annexure 1)
Though around 235 employees did not subscribe, the scheme was readily
accepted by more than 90% of the employees. Precisely, 3765 employees became
members by each of them contributing 1 Leave.
4
Impact of the Policy on Mahesh and His Family
The leave policy supported Mahesh and his family immensely. Due to the leave
bank policy provisions, he got 3 years and 7 months of leave from 1st February 2012 till 22nd August 2015 when he finally succumbed to death. During this
period, Mahesh’s family got financially independent. His daughter completed her
Chartered Accountancy course, and his wife got a teacher’s job in the nearby
school. Besides, the benevolent policy boosted the morale of employees signalling
that the organization cared for her employees during times of distress.
Overall, the leave bank pool which got exhausted was again replenished in
March 2015 by 1 more leave contribution from 3638 employees. Till year 2022,
12 employees (6 from Trombay, 5 from Thal and 1 from Marketing Division) have
benefitted by 6633 days from this scheme.
226
4.1
S. S. Doshi and U. A. Agarwal
Organizational Impact
Through the introduction of this unique scheme, RCF not only provided solace
to a family traumatized by an accident to its only earning member but has also
derived a tremendous amount of goodwill in the process. Employees who have
donated only one day’s leave to the scheme were satisfied that they contributed
to the welfare of a fellow employee’s family. Further, employees were confident
that under such unforeseen circumstances their families too will be looked after
by the company. Since the scheme is entirely funded from leave donated by the
employees, there was no financial outlay for the employer. Looking objectively,
it may be noted that except coordination, the company really contributed nothing,
except an open mind, a desire to see every employee and his / her family happy
and healthy, and a concern for their future security.
The Union got an opportunity to promote the solidarity amongst the employees
by actively subscribing to this scheme.
In one of the experience sharing sessions of Central Public Sector Enterprises
HR professionals, Mr. Saptarshi Roy, then Director (HR) of National Thermal
Power Corporation, Limited stated that this was an out of box scheme and
recommended it for implementation by all the organisations.
5
CUT to 2020: RCF and COVID19
The organisation being in the essential services category of producing Fertilizers, had been operational continuously and smoothly during the onslaught of the
dreaded pandemic, COVID 19 since March 2020.
Though comprehensive safeguards have been undertaken, because of exposure
to external environment, there were cases of COVID 19 infection amongst few
of the employees/dependents. As per the extant leave rules, such employees were
required to take their own leave during the infection period.
With a view to express solidarity and demonstrate that RCF is one in support
to these employees, the idea of providing leave to such employees by establishing a COVID 19 leave pool was mooted. A suitable scheme in this regard was
established (enclosed at Annexure 3) and COVID 19 leave pool of 2849 number
of leaves got created. According to this scheme, COVID pandemic disease was
included in the leave bank.
This particular initiative immensely fostered the spirit of team bonding amongst
the employees and moreover boosted the much-required morale of the workforce
in combating the pandemic and discharging the duties efficiently and without
any fear.
5.1
The Relevance
Mr, Rao was perplexed. While everything seems to be going well with regard to
response to the scheme, matrix suggested that the number of people applying for
Leave Bank—A Unique Social Security Concept
227
the scheme were dwindling. In the year 2012, the number of employees who did
not opt for this scheme was 235 out of 3957 and the same increased to 319 in the
year 2015.
Clearly, while the relevance of the leave policy had been well regarded and
appreciated, there have been mixed responses from employees. A few employees
who were on the verge of retirement, perceived the scheme as not of use to them
and hence opted out. Though this number was not significant considering around
five / six superannuation every month, what mattered most was these veterans were
major opinion leaders and their responses to the leave bank scheme impacted the
decision making of other employees in a big way.
On the other hand, the new entrants, being from the new generation were not
so much concerned about matters such as security, stability, long term perspective
and were not much inclined to subscribe to the Leave Bank policy, thereby making
the scheme weaker.
Could this apathy towards this scheme and in general about the other social
security scheme, be indicative of employees limited level of financial literacy?
Mr Rao was struggling with the thought of the relevance of the scheme in
current time, and steps to sustain it.
Annexure 1
228
S. S. Doshi and U. A. Agarwal
Leave Bank—A Unique Social Security Concept
229
Annexure 2
S. no Name, designation
No. of days availed Availing facility
from
Remarks
1
Mr. Maheshkumar N. 1314
Singal, Senior
Operator, Trombay
1st Feb 2012
Expired on 22nd
August 2015
Met with Road
Accident on 28th
September, 2010
Suffered severe brain
damage and in
persistent vegetative
state
2
Mr. Rajendra V.
Maurya, Technician.
Grade.-1 Trombay
75
19th March 2012
Joined Duty on 2nd
June 2012
Hip Joint operation
was done on 3rd
September 2011
Again operation was
done on 27th
December, 2011
3
Mr. Shrikanth P.
Kale, Chief Manager
(Admn), Thal
123
17th June 2012
Cerebral Pyrogenic
Expired on 17th Oct Brain Abscess since
2012
March 2010
4
Mr. Dilip Kumar
Choudhari, Senior
Operator, Trombay
376
21st Sept 2011
Expired on 3rd Feb
2014
5
Mr. Pandhari D.
Kamble, Senior
Locomotive
Operator, Trombay
201
12th Feb 2014
Suffered from Brain
Retired on 31st Aug stroke on 20th
2014
September 2013
6
Mr. Nagesh D. Koli,
Technician
(Mechanical), Thal
691
9th April 2013
Expired on 1st
March 2015
Met with Accident
on 2nd May, 2011
Attended duty from
14th June 2011 till
27th December 2011
Suffered with
Paralytic Attack on
28th December, 2011
7
Mr Venish I. Ribeiro, 1604
Officer (Information
Technology),
Trombay
25th Feb 2012
Retired on 31st July
2016 and thereafter
expired
Case of progressive
dysarthria with tridot
positive. Also heavy
ataxia with
associated
demyelination
8
Mr C. D. Yeole,
Officer Marketing
25th Oct 2015
Expired on 24th
Nov 2017
Suffering from
paralysis
646
Suffering from
polymyositis,
Bipolar disorder,
Rheumatoid arthritis,
Epilepsy, myocardial
inflammation
230
S. S. Doshi and U. A. Agarwal
S. no Name, designation
No. of days availed Availing facility
from
Remarks
9
Mr. Shailendra P.
Mhatre
Senior Operator,
Trombay
231
14th Dec 2019
Continuing
Suffered from Brain
stroke on 25th
February, 2019.
Hemiplegia,
Aphasia, lack of
orientation due to
Brain Hemorrhage
and Brain stroke
10
Mr. Kashinath K.
Chitake
Plant Attendant
Grade-I, Thal
428
18th May 2019
Continuing
Diabetes with
Hypertension, IHD
with right basal
ganglionic bleeding
with Gross cognitive
dysfunction with
Burn’s apraxia gait
with left hemiparesis
without control over
micturition and no
control over urine
11
Mr. Diwakar D.
900
Apte,
Senior Operator, Thal
13th Feb 2018
Continuing
Met with an accident
on 7th April 2016.
Tree fell on his
shoulder. Cervical
spine injured
12
Mr. Nitin Kamble,
Chief Manager
(Marketing)
19th July 2020
Continuing
Suffering from
Cancer
44
Leave Bank—A Unique Social Security Concept
Annexure 3
231
232
S. S. Doshi and U. A. Agarwal
Leave Bank—A Unique Social Security Concept
233
Appendix: Teaching Notes
Case Synopsis
In September 2010, one employee of Rashtriya Chemicals and Fertilizers Limited,
a Mumbai based Central Public Sector Enterprise met with a road accident and
went into coma. It was feared that his leave reserves may soon dry up and he
would be without salary for infinite period. This situation resulted in creation of
the unique ‘Leave Bank’ scheme. During the next one decade of operation of
this scheme, twelve employees got benefitted. However, sustaining this scheme
emerged to be a cogent problem. The new generation did not see the relevance of
long-term security benefits and did not opt for it. On the other hand, veterans who
were the major opinion leaders, who were shortly retiring did not want to commit
something so long-term.
Mr. Rao was perplexed about the way ahead and was struggling with the thought
of the relevance and sustenance of the scheme?
Target Group
This case can be used in MBA classes in modules on Organizational Behaviour
and Industrial relations. In addition, this case can be used in an executive MBA
program to discuss the importance of understanding how employee wellbeing
initiatives can foster healthy Industrial Relations.
Learning Objectives
1. Getting an overview of the existing Social Security Schemes and employee
wellbeing.
2. Role of HRM policies and practices on employer brand and employee morale
3. Understanding different approaches to understand human motivations
4. Understanding models of HRM
5. Addressing and manoeuvring changing needs of employees
6. Understanding the Concept of Financial Literacy and significance of creating
awareness the same
Case Questions and Suggested Time Frame
1. What are the existing Social Security Schemes and employee wellbeing?
(10 min)
2. What is the role of HRM policies and practices on employer brand and
employee morale? (15 min)
234
S. S. Doshi and U. A. Agarwal
3. What are different approaches to understand human motivations? (15 min)
4. What are the different models of HRM? Which model and philosophy does
RCF follow? (15 min)
5. How do managers address changing needs of employees? (15 min)
6. Understanding the Concept of Financial Literacy and significance of creating
awareness about it, how it affects outlook of new generation employees towards
social security measures? (20 min)
Case-Wise Analysis/ Responses by authors along with relevant
references
1. Role of social security system and employee well-being
Social security is the protection that an organisation needs to provide to its employees and family members to ensure access to health care needs and to guarantee
income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner. Organisations with good
Social Security measures tend to attract and retain potential employees. Studies
have found high impact of these policies on workforce moral, motivation and
commitment. These schemes do provide a strong safety net to employees, family
members in times of contingencies in life.
2. Role of hard and soft human resource practices and employee retention and
employer brand
HRD practices can help create a source of sustained competitive advantage. Various human resource management processes and procedures within
an organisation—development, recruitment, training, benefit and employee relations plans, performance management, strategies and procedures, can be broadly
classified into hard and soft types.
The soft model of HRM draws its strength from the Human Relations School
and focuses on the human side of management. It involves “treating employees
as valued assets, a source of competitive advantage through their commitment, adaptability, and high quality of skills, performance etc.” (Storey, 1992,
pp. 12). The approach of human resources is based on two-way communication,
emphasizing on security of employment, continuous development, communication,
involvement, the quality of work-life balance.
Hard HRM, on the other hand, views employees as a resource that exists simply to assist the organization in achieving its objectives. One-way communication
between management and employees with very clear goals and objectives is common in hard HRM. In hard HRM, little regard is paid to the needs of human
resources and the emphasis is purely on quantitative aspects.
Leave Bank—A Unique Social Security Concept
235
Probe: the faculty can commence a discussion on the nature of leave bank policy
and its impact on employee motivation
Organizational compassionate leave policies, such as in case of RCF can be
considered as a soft HRM policy that can provide the organizations an opportunity
to attract and retain their highest performers. In a war for talent, the way employees
are treated—in both good and difficult times—can be a huge draw. Big companies
make an effort to be more human, empathetic employers. For example, sportswear
giant Nike recently gave the employees an extra week off, with spokespeople for
the company saying they were “powering down” for the week to spend time with
loved ones and others to recuperate from the stresses of a crazy year.
Probe: the faculty can as students to draw other organizational examples of
organizations following such policies
3. What are different approaches to understand human motivations and how
do these determine HRM practices?
There are two broad approaches for understanding human motivations, which can
have a determining role on crafting policies and practices—Theory X and Y. A
third school of thought, called Theory Z was given by Ouchi.
Theory X approach tends to regard employees as machinery. The theory is
based on the premise that an average person dislikes work and will avoid it if
he/she can. According to this school, an average person prefers to be directed,
avoids responsibility, is relatively unambitious and wants security above all else.
The school promotes the thought that most people must be forced with the threat of
punishment to work towards organisational objectives. This philosophy primarily
pushes Hard HRM.
The other one, theory Y is the total opposite of theory X. According to this
theory, effort in work is as natural as work and play. It perceives employees as
actual humans that are capable of emotions and feelings, and in need of proper
motivation. People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment. This
school of thought is also known as the Harvard model and promoted Soft HRM.
Theory Z, given by Ouchi, is often referred to as the ‘Japanese’ management
style. The theory advocates a combination of all that’s best about Theory Y and
modern Japanese management, which places a large amount of freedom and trust
with workers and assumes that workers have a strong loyalty and interest in teamworking and the organisation. Theory Z also places more reliance on the attitude
and responsibilities of the workers, whereas Mcgregor’s XY Theory is mainly
focused on management and motivation from the manager’s and the organisation’s
perspective.
Probe: the faculty can ask audience which of the two models will work in India?
The course instructor can discuss about Hofstede (1987) research. Hofstede
surveyed employees from 50 countries, suggests that American management theories are not universally applicable. He points out that McGregor’s ‘Theory X’ and
‘Theory Y’ reflect the American’s cultural emphasis on individualism and hence
236
S. S. Doshi and U. A. Agarwal
do not apply in Southeast Asia. According to him, people in South and Southeast Asia behave as members of a family and/or group and those who do not are
rejected by the society. Haire et al. (1966) found that the Indian managers’ report
the highest degree of fulfilment of security needs as compared to the managers in
any other country.
After discussing these theories, the course instructor can open discussion on
mapping the leave back policy to HRM philosophy and types
4. What are the different models of HRM? Which model and philosophy does
RCF follow?
Instructor can discuss the two models—Harvard and Michigan Model of HRM and
map the leave back policy.
There are two distinct models of HR which have a bearing on the practices:
First, the Harvard model (Beer et al., 1985) which stresses on the developmental aspects of HR. The second model is the Michigan model, or the ‘matching
model’ also called as the ‘best-fit’ approach (Fombrun et al., 1984) which emphasizes a more transactional approach to the achievement of managerial objectives.
It stresses on the human aspect of HR and is more concerned with employeremployee relationship. The premise of this model is that employee commitment,
Congruence, Competence will enhance cost-effectiveness and achievement of
organizational objectives. It is also considered as “soft HRM”.
Second, the Michigan model considers and uses human resources like any other
resources in an organization seems unpragmatic as it misses the human aspect. It
limits the role of HR to a reactive, organizational function and under-emphasizes
the importance of societal and other external factors. The matching model has
been criticized as being too prescriptive by nature mainly due to the fact that its
assumptions are too unitarist (Boxall, 1992). It emphasizes a ‘tight fit’ between
organizational strategy and HR strategies and, while doing so, completely ignores
the interest of employees and hence considers HR as a totally passive, reactive,
and implementation function.
Probe: Instructor can talk about how more than a policy, the expressed compassion the desire to alleviate their suffering, during difficult times and help them reduce
the attrition and makes a strong employer brand.
5. How do managers address changing needs of employees?
The line managers are the first HR Managers. It is necessary on part of the line
managers to take care of the emotional, social, and organisational needs of employees under their control. HR Department gets involved only in case if the issues of
employees do not get resolved at the Department level. As such, the line managers
have to be very sensitive in understanding the pain areas, if any of its team and
take necessary steps to address the same.
The liberalization, privatization, and globalization of the Indian economy has
resulted in a competitive market economy. The need of the hour is to attract high
Leave Bank—A Unique Social Security Concept
237
level of initiative and innovation. Before recasting the philosophies and practices, there is a need to understand the philosophy of management of Indian
organizations. The initial stimulus came from the realization that the paternalistic philosophy of management in the past gave little momentum for growth in
future. Managements had developed plans for growth, but they have now realized
that they had not developed the attitudes and skills within them to take initiatives,
make decisions, and take risks (Theory Y). Managers have to realize that each
individual who makes up the workforce behaves in a different way; therefore, the
workforce as a whole cannot be assumed as responsible or machine-like. A good
manager needs to make use of his own style, taking the best points from both Soft
and Hard HRM and combining them into something that suits the needs of the
organization.
6. Understanding the Concept of Financial Literacy and significance of creating awareness about it, how it affects outlook of new generation employees
towards social security measures
Financial literacy refers to the skills and knowledge of finance that can be used
to make informed decisions, while managing resources & income for judicious
consumption & saving. Simply put, financial literacy allows a person to make a
robust and viable financial plan, in keeping with his resources & income, to meet
his present and future needs.
The Organization for Economic Cooperation and Development (OECD) defines
financial literacy as “A combination of awareness, knowledge, skill, attitude and
behaviour necessary to make sound financial decisions and ultimately achieve
individual financial wellbeing.”
According to a global survey, India accommodates around 20% of the total
world population, yet only about 24% of the Indian population is aware of basic
financial concepts!
In order to promote financial literacy in India, organizations should take mindful
steps to educate employees with proper knowledge. The basic financial education
must include:
1
2
3
4
5
6
7
A robust understanding of financial planning
Knowledge of usage of basic financial products
Effective money management
Debt management
Prioritizing needs over wants
Understanding effective investment instruments, like SIP
Understanding terms of EMI
Along with these, employees should be educated about the various e-statutory and
non-statutory schemes of Social Security. It is primarily the responsibility of the
line manager and the HR Department to acquaint the new joinees with the benefits
of the schemes during the induction and orientation programs. Interventions should
238
S. S. Doshi and U. A. Agarwal
be made if employees do not subscribe to social security schemes. One on one
conversations by the line managers and seminars around the subject will go a long
way in enhancing the financial literacy of the employee.
References
Beer, M., Spector, B., Lawrence, P., Quinn, M. D., & Walton, R. (1985). Human resource management: A general manager’s perspective. The Free Press.
Boxall, P. (1992). Strategic human resource management: Beginnings of a new theoretical sophistication? Human Resource Management Journal, 2(3), 60–79.
Fomburn, C. J., Tichy, N. M., & Devanna, M. A. (1984). Strategic human resource management.
John Wiley & Sons.
Hofstede, G. (1987). The applicability of McGregor’s theories in Southeast Asia. Journal of Management Development.
Storey, J. (1992). Developments in the management of human resources: An analytical review.
Blackwell.
Sanjeev Shantkumar Doshi is the General Manager (HR) Corporate with Rashtriya Chemicals
and Fertilizers Limited (RCF) Mumbai, a Giant and Progressive Public Sector Undertaking. He
holds Master’s Degree in Labour Studies from Maharashtra Institute of Labour Studies, University of Mumbai. He is Certified Works Study and Productivity Engineer from NITIE, Powai. He
has completed Diploma in Training and Development from Indian Society for Training and Development, Delhi. He is a Doctoral level scholar at Tata Institute of Social Sciences. He has over
Thirty-Four years of comprehensive HR, HRD, Labour Welfare and Industrial Relations exposure
in Rashtriya Chemicals and Fertilizers Limited, Mumbai. His key contributions include implementation of Online Recruitment System, SAP HR, People Capability Maturity Model, facilitation of
six Wage Revision agreements, introduction of innovative welfare schemes such as Leave Bank,
establishing and conducting training courses for overseas participants under the prestigious Diplomacy program of Ministry of External Affairs, Government of India. He has been the Visiting
Faculty/Guest Speaker at XLRI Jamshedpur, IIM Indore, AHRD Ahmedabad, NILERD—Narela,
NITIE, Powai, TISS, Engineering Staff College of India, Hyderabad, XIMS, Bhubaneshwar.
Upasna A. Agarwal is a Professor in Organization Behavior and Human Resource Management at
NITIE. She heads the Diversity Equity and Inclusion cell at NITIE. An MBA and Masters Labor
Law from Symbiosis, Pune, she is a PhD from Indian Institute of Technology¸ Mumbai. Upasna
launched her academic career at S.P Jain Institute of Management and Research in 2010¸ and has
seven years of corporate experience prior to that. Upasna’s research and teaching areas are women
leadership, entrepreneurship, negotiations, Diversity and Inclusion and communication especially
focusing on Leadership Development. She serves as a member of Board of studies and Center
of Diversity and Inclusion at K.J Somaiya Institute of Management Studies and Research. Prof
Upasna is also an empaneled member for training Managers at various corporates and PSUs. For
the past three years, Upasna has been identified as top 2% of scientists’ list released by the Stanford University, 2019-21, 2021-22. She was also awarded “AIMS International Outstanding Young
Woman Management Researcher Award. On 8th March 2023, Upasna was conferred the Chair
Professorship.
Using Online Learning to Develop
Pandemic Readiness: The Case
of Deoleo in India
Rama Shankar Yadav, Sanket Sunand Dash, Siladitya Sarangi,
and Ankur Jain
1
Deoleo Operations in India
Deoleo was established in 1955 in Bilbao, Spain. It procures olive oil from farms
in Spain and Italy, processes them, and ships them to locations throughout the
world. In India, it sells olive oil under the Figaro brand. As olive oil is still considered to be a luxury product in India, the firm’s sales are concentrated in large
metropolitan towns such as Mumbai, New Delhi, and Bengaluru, where there is a
greater awareness of the health benefits of olive oil and the concentration of people
with sufficient purchasing power. For reference, the price of olive oil is Rs 160 per
100 ml, whereas the more popularly used vegetable oils in India, such as coconut
oil, are priced at Rs 39 per 100 ml and mustard oil at Rs 15 per 100 ml.
The firm employs approximately 130 sales assistants (frontline staff) who liaise
between the distributors and retailers to ensure a smooth supply of the products
to the customers. The sales assistants, usually having only twelve years of formal
education, are the least-paid employees in the firm. The firm delivers olive oil to
approximately 200 distributors, who in turn supply 20,000 retailers. It also supplies
R. S. Yadav (B) · S. S. Dash · A. Jain
Assistant Professor in HRM and OB Area at Indian Institute of Management Rohtak, Rohtak,
India
e-mail: rs.yadav@iimrohtak.ac.in
S. S. Dash
e-mail: sanket.dash@iimrohtak.ac.in
A. Jain
e-mail: ankur.jain@iimrohtak.ac.in
S. Sarangi
Country Manager, Deoleo, Mumbai, India
e-mail: siladitya.sarangi@deoleo.com
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_12
239
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55,000 retailers directly. Distributors typically stock a wide assortment of brands
in addition to Figaro.
2
Training of Sales Assistants
Olive oil in India was a fairly niche product, and regular use of olive oil for cooking
was a relatively new phenomenon even among the well-off. This necessitated the
firm to invest in the training and development of its sales assistants. However,
the sales assistants were usually traveling to retailer locations on a day-to-day
basis; hence, many of them were unable to access the training that was provided
in physical classrooms on working days. In addition, there was sales pressure
from the frontline managers, which prevented the sales staff from missing out
on daily sales and attending the training organized by the HR department. The
firm, however, believed that well-trained sales assistants were central to its sales
strategy, contemplating alternative options. It was precisely at this point that the
COVID-19-induced lockdowns started happening throughout the world.
3
COVID-19 Induced Disruptions
COVID-19 (coronavirus disease 2019) refers to the disease caused by severe acute
respiratory syndrome coronavirus 2 (SARS-CoV-2). The first human victims of
the disease were identified in Wuhan Province, China, in December 2019. The
disease is highly contagious, and in a matter of weeks, it spread throughout the
world, including India. As no treatment protocol through medicines or vaccines
was available for this disease, restriction of social contacts was considered to be
the only way to contain the disease.
On March 24, 2020, the government of India instituted some of the most
restrictive moves to contain the COVID-19 pandemic [1]. The restrictions were
initially for a period of 21 days (from March 25, 2020 to April 14, 2020) but were
later extended multiple times. These measures have necessitated the closure of all
nonessential businesses and caused drastic changes in the functioning of businesses
providing essential goods and services. Luckily, for Deoleo, a multinational olive
oil processor headquartered in Spain, olive oil fell under the category of essential
goods. However, the impact of the COVID-19 pandemic was more pronounced in
the densely populated cities that constituted the primary market of Deoleo, and
hence, the firm was contemplating an unknown future in April 2020.
3.1
Moving Training Online
The shops selling Deoleo products remained open, and hence routine sales of
Deoleo products through the retail channel occurred. However, the physical travel
of the sales staff to the retail channel was disrupted as the government permitted
Using Online Learning to Develop Pandemic Readiness: The Case of Deoleo …
241
only essential movement, defined as accessing health services, buying food items
and other staples and providing essential services to others, during the lockdown.
Due to these restrictions, physical training of the sales assistants was also not possible. Deoleo contemplated the use of digital technology to liaison with distributors
and retailers, but without training its staff, the initiative would not be successful.
To overcome the training-related problems, Deoleo instituted online training
using online platforms such as Zoom and delivered training in a group size of
approximately 40. However, this initiative faced several problems. First, sales
assistants were new to the platform and hence faced problems in navigating it
and using its functionalities. Second, the online platforms required high internet
bandwidth, and most sales assistants lacked access to high-speed internet connections. Third, the online platforms were designed for laptops and desktops, while
most sales assistants lacked those devices and used to connect to the internet via
smartphones. The mismatch of the training with the real-time context of the trainee
(the sales staff) posed immense challenges for the trainers.
To identify and resolve the problems, sales officers interacted with sales assistants. The conversations revealed that most staff were quite comfortable using
WhatsApp, a popular freeware that allows small groups to post messages and
make video calls and used them regularly for personal communication. Based on
the feedback, the firm started providing training using WhatsApp. One problem
with the use of WhatsApp was the limitations on group size. Unlike Zoom, which
enabled simultaneous interactions of hundreds of people, WhatsApp limited video
conversations to a maximum of 10 people at a time. To address this issue, the organization increased the frequency of training sessions. Although this increased the
overall training time, the trainers expressed satisfaction with the results. The staff
were also more comfortable with the WhatsApp environment and conveyed their
support for the new medium. The sales staff was also happy that their feedback
had been taken into consideration and their needs more closely identified when the
new mode of training was being designed.
3.2
Genesis of the Safalta App
WhatsApp-based training temporarily solved the problem of training. However,
the firm was presented with a bigger challenge—how to maintain communication
with its distributors and retailers. Earlier, the firm’s frontline sales staff physically
visited the retailers, aggregated the orders and communicated the same to the distributors. This option was no longer feasible in the lockdown. The communication
with the retailers was maintained through phones during the lockdown, but the
staff expressed difficulty in sending aggregated orders to distributors.
The distributors were also facing multiple problems. First, despite the permission to truck operators to ply their services for transporting emergency goods,
many were reluctant to operate. Second, most distributors were unable to come
to their workplace due to the suspension of trains and bus services. Hence, many
distributors had to curtail their operations. In this environment, it was not always
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possible for retailers to access goods from their nearest distributors. This presented
a need to develop an electronic platform to connect frontline sales staff, retailers
and distributors.
To deal with these problems, the firm first collaborated with its technological
partners to devise a telephonic order system that connected frontline staff, retailers
and distributors. The system used artificial intelligence (AI) and a global positioning system (GPS) to aggregate the orders from each frontline staff member on a
daily basis and send them to the nearest distributor on WhatsApp. The telephone
order system helped distributors assess demand and provide supplies accordingly.
However, this telephonic order system could not solve the problem arising from
the temporary cessation of operations by many distributors.
To rectify the situation, Deoleo management felt the need for a digital forum
that connected all stakeholders. Although the firm had a broad idea of the functionalities that they wanted in the application, they lacked the technological expertise
to create the application. The firm’s management felt the need for the app but evaluated that the firm’s limited and infrequent needs could not justify the investment
involved in developing the application in-house. As the firm had no intention of
entering the software domain, the firm’s management decided to collaborate with
Field Assist, a company that produces sales force automation software, to develop
the application. Based on the inputs from Deoleo, Field Assist developed a freely
downloadable app named Safalta (meaning “success” in Hindi) that listed all the
distributors and displayed their status as open or closed. This app also conveyed
availability-related details. For example, users of the app could identify which was
the nearest functioning distributor and the stock of goods (olive oil) available with
them. The distributors could use the app to order quantities from Deoleo. The sales
staff could use the app to take orders from the retailers. Order tracking capabilities were enabled in the app, and hence, all parties could know the current status
of their orders. The app thus fulfilled the need for a common forum connecting
Deoleo, its sales staff, distributors and retailers.
The launch of the app presented a new challenge to Deoleo: how to make the
75,000 retailers reasonably proficient in using the app in a short duration of time?
Most of the retailers were not highly educated or technology-savvy; hence, the
use of an advanced learning management system (LMS) platform was not possible.
The use of WhatsApp groups was not possible due to the sheer number of retailers,
as it required the creation and coordination of almost 8,000 WhatsApp groups.
Additionally, the retailers wanted to have a permanent record of the instructions
needed to install and use the app; hence, in-person training was needed.
To solve this problem, virtual meetings between the representatives of Deoleo
and Field Assist were conducted. They concluded that the training process for
installing and using the app needed to be simplified to the maximum extent possible to enable mass dissemination. With this aim in mind, a three-step diagram
(Fig. 1) and a video for using the app was developed and sent to all sales assistants
via WhatsApp. Online sessions were conducted with sales assistants to answer any
possible queries the staff may have about using the app. The earlier experience of
moving training online using WhatsApp during the early phase of lockdown helped
Using Online Learning to Develop Pandemic Readiness: The Case of Deoleo …
243
Deoleo expedite the process this time. Once the sales assistants were trained in
using the app, they were made in charge of sending the pictorial diagram and
video to all distributors and retailers and answering their queries. The solution
worked well with few queries or complaints from retailers and distributors.
The firm’s innovative use of widely used online platforms for conducting training and its development of the Safalta app enabled it to smoothly operate its sales
and distribution channels. However, now the provision of training through WhatsApp was proving suboptimal, as it was not designed for making presentations,
which was essential for salespeople. The success of the Safalta App also alerted the
firm to the new possibilities immanent in the use of new technology. The country
was also going through a phase wise opening of lockdown, and Deoleo management sensed that business in the post-lockdown scenario would be significantly
different from business in the pre-lockdown period.
Fig. 1 Three-step Process for Using the Safalta App. Source Deoleo S.A
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Harnessing Technology in the Post Lockdown World
Starting from 1 June 2020, the Government of India started to gradually withdraw
the restrictions on movement. The different state governments also started allowing
greater movement of goods and services while accounting simultaneously for the
seriousness of the COVID-19 situation, the need for economic activity and the
state’s health care facilities. Despite the opening up of the country, there was a
profound shift in the behaviour of people. Ordinary people preferred minimizing
physical contact and maximizing digital transactions. Deoleo India’s management
strategized about how they could leverage their learning during the lockdown to
survive and thrive in the new normal.
4.1
Back to Zoom
Given the need to maintain physical distance and the attractiveness of online training modules with respect to cost and accessibility, Deoleo decided to continue with
the online mode as the primary medium of training. However, training provided
through WhatsApp was becoming cumbersome due to limitations on group size,
and it was not possible to share the screen and make a presentation. To counter the
same, Deoleo started to use Microsoft Teams and Zoom for training and presentations. This initiative was first started at the initial level and was later cascaded
to the sales assistants. To enable the sales assistants to use Zoom efficiently, a
1-page document was created to pictorially display the steps involved in connecting through Zoom, and the required training and query resolution for using Zoom
was handled through WhatsApp. Drawing upon its experience of providing training for Safalta App, the firm could train its sales assistants in the use of Zoom.
They were facilitated in the task by the launch of a Zoom app that could run on
smartphones and requires less internet bandwidth. The familiarity with the digital
medium enabled the sales staff to grasp the Zoom- and Microsoft Teams-based
training this time around, without any major complications (Fig. 2).
4.2
Scaling up the Safalta App
The Safalta app was initially designed to provide visibility to retailers regarding
distributor stocks and automating the ordering process. However, Deoleo soon realized that the Safalta app could also be used to automate all interactions between
the retailers and distributors, including payments for orders and visibility campaigns. As a result, Deoleo worked with its technology partner, Field Assist, to
develop new functionalities that enabled retailers, distributors and Deoleo to make
secure payments through the app. A positive network effect was created with the
presence of a larger number of retailers and distributors on the Safalta platform
inducing other organizations to register their products and stocks with the app and
the presence of other organizations attracting even more retailers and distributors.
Using Online Learning to Develop Pandemic Readiness: The Case of Deoleo …
Fig. 2 Process map for using zoom
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R. S. Yadav et al.
Despite the growth in the users of the Safalta app, teething problems remained
when the firm tried to use the app as a medium for financial transactions. First,
many organizations have launched similar apps; hence, retailers are sceptical of
downloading and using another app. Second, many retailers were not technologically savvy and were mentally resistant to change. Perhaps, the greatest challenge
to the adoption of Safalta was the reluctance of retailers to share their bank account
details, PAN number and GST number, as they feared these details could be
misused by the third party.
Despite the reluctance of some retailers to adopt the Safalta app, the app
was seeing greater adoption. Approximately 200 retailers had signed on to use
the app for financial transactions. This included retailers and distributors paying
for orders through the Safalta app and the organization sending rewards for visibility campaigns through the app. The Safalta app also enabled retailers to post
photos of the visibility campaigns run by the company, e.g., exclusive shelves on
rent. This lowered the monitoring cost for Deoleo and ensured timely payment to
the retailers if standards of the campaign were abided by. The visibility campaign
for the last quarter of 2020 in Mumbai was executed partially through Safalta.
Benefit payments to retailers were being increasingly made through the Safalta
app.
5
The Way Forward
In January 2021, Mr. Siladitya contemplated the way forward for the Safalta app.
He planned to scale up the use of the Safalta app for conducting visibility campaigns to 1,000 outlets by the end of 2021. He wanted to ensure that the use of the
Safalta app for order placement by retailers and distributors was expanded beyond
metropolitan cities. He was targeting that by the third quarter of 2021 Safalta
would become the primary means for order placement by retailers throughout the
country. There was an attempt to make the app more interactive. While a news
feed that delivered information to retailers about new incentive campaigns and
new launches were already done through Safalta, the next step was to enable features that would enable retailers to raise their concerns. Field Assist also planned to
introduce gamification and incentivization modules in the app. As the restrictions
on the lockdown continued to ease, the sales staff gradually came in a position to
return to the manual order-taking mode. Does it mean Safalta App was a temporary solution? Or were digitally mediated technologies the new future and Safalta
was the harbinger of a new future with immense possibilities?
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Appendix: Teaching Note
Case Summary
The case describes how the COVID-19 induced lockdown expedited the digitalization of training in Deoleo India. Deoleo is a multinational olive oil processor
headquartered in Spain. In order to provide anytime, anywhere training to the
sales staff, the organization was contemplating the use of online training modules.
Precisely then, the COVID-19 pandemic induced lockdowns started happening
throughout the world. This case study illustrates how Deoleo India was able to
cope with the challenges that arose from the sales staff’s inability to physically
visit the retailers and distributors for order capture and fulfilment. The case provides a rich context to teach concepts such as change management, digital learning,
employee motivation, and business continuity.
Deoleo procures olive oil from farms in Spain and Italy, processes them, and
ships them to locations worldwide. In India, it sells olive oil under the Figaro
brand. The firm’s sales are concentrated in large metropolitan towns such as Mumbai, New Delhi and Bengaluru. The firm employs around 130 sales assistants
(frontline staff) who liaise between distributors and retailers to ensure smooth supply of the products to the customers. The government of India instituted some of
the most restrictive moves to contain the COVID-19 pandemic. These measures
necessitated the closure of all non-essential businesses and caused drastic changes
in the functioning of businesses providing essential goods and services. This disrupted the distribution channel of Deoleo in India. Earlier the salesmen took orders
by physically visiting the shopkeepers. Amid the lockdown physical traveling to
shops for order taking became impossible. The trainings for the sales staff also
happened in physical classrooms. The company attempted to come up with online
training on Zoom to help its salesmen. This initiative failed as the salesmen had
lower digital literacy, to begin with. How to motivate them and keep the business going became a significant challenge for the company. In the meanwhile, one
suggestion that came from the salesmen was using WhatsApp for training—by
making video calls and uploading training videos to watch. This initiative picked
good momentum, however, posed certain limitation with respect to scaling up.
Another challenge that the company faced was to maintain communication with
its distributors and retailers. The company came up with an electronic platform
called Safalta, based on AI & GPS technologies to aggregate orders from the
retailers and send it to the nearest distributors for fulfilment. They outsourced the
development of the App to a third party, Field Assist, a company that produces
sales force automation software. The challenge that Deoleo faced was to educate
its large number of channel partners (75,000 retailers) to use the App. The use
of the Safalta App introduced Deoleo to several new possibilities, such as selfmonitoring of visibility campaigns by the individual retailers and automatic payouts.
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As the restrictions on lockdown continued to ease, it was becoming possible for
the sales assistants to travel to the retailers for physical order taking. Mr. Aditya,
the National Sales Head of Deoleo India and the protagonist of the case, finds it
hard to determine the future course of action as he struggles with the dilemma
between scaling the Safalta app for new possibilities vs. going back to the old
mode of manual order taking.
Learning Outcomes
Depending on the teaching program and the topic being covered for a particular
class, one or more of the following learning outcomes can be achieved from the
case study. Through the case analysis, the students should be able to.
● Discuss the challenges that Deoleo faced because of the lockdown induced by
the pandemic
● Understand the physical distribution channel of Deoleo comprising sales staff,
retailers, and distributors
● The need and challenges of digitalizing training for the sales staff
● Drawing upon Change management ideas to aid the transition
● The design of Safalta App inhouse vs. third party, its uses and the new
possibilities that arise; the need and challenges of training the retailers
● Strategize a way forward for Aditya as the lockdown restrictions are being lifted
Case Questions
Depending on the program and the topic being covered, the instructor can
emphasize differently on the questions, that we recommend for the teaching plan.
Q1. What are the key challenges faced by Deoleo India, in the present context
of the pandemic?
The two key challenges that Deoleo faces are complete disruption of its distribution channel and physical training infrastructure. Although Olive Oil is categorized
as an essential commodity, the sales assistants cannot travel to the retailers to
take orders. The organization has erstwhile used physical classrooms for the training of its sales staff. The present situation necessitates the use of online training.
However, the staff’s lack of familiarity with digital technology poses a significant challenge to the organization, even if it comes up with new technology-based
initiatives to solve the problems.
Q2. What are the challenges in digitalizing training? What aspects should the
company have considered before the launch of training on Zoom?
The students can discuss the following risks associated with digitalizing
learning.
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● High-quality teaching material is difficult and time-consuming to produce
● There is high developmental cost, which poses a more significant financial risk
upfront
● It is less personal, and therefore employee engagement may be negatively
impacted
● It also gives rise to proxy attendance, e.g., playing the video but not watching
it in the asynchronous mode or attending the online training but not paying
attention or doing something else during the training in the synchronous mode.
During the pandemic, the students also have attended online lectures. This question
can also be linked to their experience of online education.
However, this discussion can be complemented with the benefits associated with
online learning.
●
●
●
●
The consistency of the training improves because of standardized content
The scalability of online initiatives can happen at minimal cost
There is flexibility with respect to when and where to consume training
There can also be opportunities for online discussions using chats or discussion
forums
However, the organization did not get it right the first time because it failed to
understand the social context of its people. The sales assistants did not use laptops
and are not very adept at using the digital medium. Hence it becomes tough to
move the training online with its Zoom based training.
Some of the aspects that the organizations may consider before transitioning to
the digital medium.
● The Training Medium: Is the technology that you use a suitable medium for
the particular type of training you wish to carry out? How much of it should be
synchronous, and how much asynchronous?
● The Intended Audience: What is the familiarity of the audience with the technology? What can be done to promote and publicize online training among the
intended audiences? What can be done to upskill the trainees to adopt online
training?
● The Product Development: Have you developed training that the employees
need? Is the duration and training vehicle such as video, online meeting, etc. in
sync with the availability and the nature of the audience?
Q3. Why is WhatsApp based training so readily received by the sales staff? What
are the change management concepts that can be applied to the case?
There are two kinds of changes—one is the top-down change, and the other is
the bottom-up change. In a bottom-up change, there is more participation of the
employees. Change is always resisted; however, the degree of acceptance is much
higher when the suggestions are taken from the staff. In this case, the suggestion
of using WhatsApp for training came from the team directly, and hence it became
a more acceptable option.
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At this moment, the instructor can also introduce Kotter’s model of change
(Kotter, 2007), which has the following steps.
Q4. What explains the change of Zoom-based training to Whatsapp-based
training? From this incident, what do you infer about how individuals learn?
As physical training of the sales staff was not possible, the organization contemplated the use of online platforms such as Zoom to deliver the training. However,
this initiative faced several problems namely (1) sales assistants were new to the
platform and hence could not navigate it or use its functionalities; (2) the online
platforms required high internet bandwidth which was not available and (3) the
application was meant for desktops and laptops while the sales staff used mobile
phones. This new initiative could not be converted into a worthwhile learning
outcome because of the impediments mentioned above. However, the next idea
of Whatsapp-based learning helped the training initiative to be converted into
individual learning outcomes. In the first case, the individuals could not reflect,
conceptualize or experiment with the training because of the constraints. The second initiative helped the individuals to gain experience from the training that could
be reflected upon. They could ideate and conceptualize. Further, they could use
and experiment with the platform as the need maybe because they were already
Using Online Learning to Develop Pandemic Readiness: The Case of Deoleo …
251
familiar with the platform. The instructor can draw upon the four stages of Kolb’s
experiential learning cycle to explain the acceptance of whatsapp-based training.
Kolb’s Experiential Learning Cycle: Kolb explains that learning happens in a
four-stage learning cycle.
1.
2.
3.
4.
Concrete Experience—Encountering a new experience
Reflective Observation—Thinking about the new experience
Abstract Conceptualization—Forming new ideas based on reflection in stage 2
Active Experimentation—Applying the new idea to the situation and see if any
modification is required.
Q5. How can the challenges faced by salespersons in accepting Zoom be
explained? As a manager how can it inform your thinking?
Most human beings are resistant to change because of our inherent risk aversion and the same is seen in this case. The salesperson are confronted with a
new online platform (Zoom) and perceived lack of resources to master the situation which makes them unwilling to adopt the same. One theory that explains the
reluctance of salespersons is conservation of resources (CoR) theory. CoR theory
states that stress is not an outcome of an individual’s assessment of a situation,
but arises from a perceived inability to acquire the social and cultural resources to
master a situation and protect themselves from threats to well-being (Hobfoll &
Ford, 2007). Salesperson’s unfamiliarity and low educational levels are likely to
reduce their perceived competence to use Zoom effectively. On the other hand,
the economic conditions were tough as the lockdown had induced an economic
recession. Therefore, the salespersons are likely to face stress when using Zoom
because they felt inadequate in mastering it and feared the potential repercussions
of their inability in a tough economic situation.
The management role in this situation is to balance the immediate business
needs with an understanding of the human situation. Given that the salesperson’s
primary concern is to maintain their sense of well-being in a challenging economic
situation, the management cannot realistically expect them to switch overnight to
a new situation. Hence, the management needs to think of ways in which the
mental cost of adopting a new technology is less. In this case, the organization used
WhatsApp, with which the participants were familiar, as a bridging technology.
This helped reduce the anxiety and enabled better adoption in the long-run. As the
world of work is moving online, managers also need to think of ways to develop
employees’ technical-self efficacy on a continuous basis.
Q6. What is the need for the Safalta App? What are the possibilities that it
brings forth and the challenges it poses in its dissemination?
The Safalta App is a digital forum that connects the three main stakeholders
of the distribution channel—the sales staff, the retailers, and the distributors. The
earlier telephone devised system devised by the company used AI and GPS technologies to aggregate the frontline orders and send it to the nearest distributor.
However, this App was not successful. Then the company hired Field Assist to
develop the App for them. The App listed all active and inactive distributors of
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Deoleo. The stock at the respective distributors was also listed. The sales team
could use the App to take orders. The retailers could track their orders, and the
orders were aggregated for the distributors to replenish supplies. During the pandemic, when physical order taking was not possible, the App provided a system
for all the three key actors to come together and service each other.
If the time permits, the instructor can also initiate the Build vs. Buy debate to
develop the technology. The following points could be highlighted—the core competency of Deoleo India is sales and distribution. At the moment, they outsource
the development of the App because of the limited use of the application and lack
of in-house competency. However, this does not preclude them from future investments for the development of technology in-house as the criticality of technology
increases for performing distribution in the country.
The instructor can also initiate another discussion in the class regarding the
future capabilities that can be built into the App. The class could be divided into
groups of 5 students each, and each group can come with the future capabilities
that the App can possess. This will help the students understand the nuances of the
sales and distribution process and understand what aspects of it can be automated
and what may not be very conducive to automation. Further, this will feed into the
discussion for the next question.
Q7. Given the lockdown restrictions are being lifted, what is the best way
forward for the company?
The two options that the company has (1) Company rebounds to its original way
of selling through the physical channel and (2) Scale-up Safalta App for virtual
operations.
The students can discuss the merits and demerits of both options. Pointers that
can help the students appreciate the nuances involved.
● Selling is a people-intensive job and mostly follows a push strategy; therefore
physical channel has its importance
● Safalta App has brought all the stakeholders on a common platform with
complete transparency of information, which was not possible earlier
● There are other aspects of the sales and distribution process that can be done
through technology and in a more efficient waywhich would have come as
students discuss Q4.
● Salesmen can focus on more relationship-related tasks, which are anyways their
core competency and cannot be done through technology.
● Technology can be used to uncover new ways in which the sales and distribution
process can be augmented rather than looking at technology as a substitute for
humans. The reading by Davenport and Kirby (2015) can be utilized for more
clarity on this topic.
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References
Davenport, T. H., & Kirby, J. (2015). Beyond automation. Harvard Business Review, 93(6), 58–65.
Hobfoll, S.E., & Ford, J.S. (2007). Conservation of resources theory. In Fink, G. (Ed.), Encyclopedia of Stress. Retrieved from https://www.sciencedirect.com/topics/psychology/conservationof-resources
Kotter, J. (2007). Leading change: Why transformation efforts fail. Harvard Business Review, 86,
97–103.
The Being and Becoming of a Leader
in STEM
Sadhna Dash and Snigdha Pattnaik
1
Case Problem
What does it take for professionals in STEM careers to climb the corporate ladder
and experience exponential success and growth? Is the ascent to leadership specifically different for a woman? What career strategies support sustained leadership
careers? What is the psychological contract that binds the organisation with the
employee and vice versa?
2
Current Context
Manjoti Dutta sat back in her chair in her small yet tastefully done-up corner office
of Cloud Com Corporation (CC) in one of the tallest buildings of Manyata Tech
Park, Bangalore, India. It was a rainy afternoon, and the pages of the Request for
Proposal (RFP) fluttered in the wind that breezed in from the open window. The
Head Office in the United Kingdom (UK) was happy with the operations and the
output delivered by the 13-month-old India team. The RFP to a new client submitted by her last fortnight had just received client approval. India’s business was
steadily growing. The headquarters’ go-ahead to hire a Chief Operations Officer
and a Project Head meant that Manjoti could leave the day-to-day operations for
CC to them, while she focused on building the India business. She had just spoken
to her HR Manager to share a draft of the job descriptions for the new hires by
S. Dash (B)
Jyoti Nivas College Autonomous, Bangalore, 138/7, 1st Main, Viveknagar, Bangalore, India
e-mail: sadhnadash@jyotinivas.org
S. Pattnaik
203 Dharma Vihar, Khandagiri, Bhubaneswar 751030, India
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023
G. P. Mahapatra (ed.), Business Cases in Organisation Behaviour and HRM,
Springer Business Cases, https://doi.org/10.1007/978-981-99-2031-0_13
255
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S. Dash and S. Pattnaik
Monday. The refreshing raindrops that came in along with the breeze felt like a
reward for all her hard work, and she whispered to herself, “way to go Manjoti!”.
3
The Beginning
Born into a middle-class family that lived in a small town in the eastern state of
Odisha, India, Manjoti’s climb to the corner office had been an exhilarating journey. As a timid, confused, and perplexed science graduate in 1987, Manjoti was
unclear about what to do next. She felt she was lucky to get admission into a master’s degree in Computer Application (MCA) program at a premium engineering
institute in Eastern India. At that time, there was scepticism about the relevance
and the future of such post-graduate degree programs, yet she took the risk. Only a
few companies came for campus placement, and while Manjoti cleared the aptitude
test, her poor communication skills became a roadblock. Finally, after a few offcampus job interviews, she qualified and joined MDD Private Limited (MDDPL)1
as an Analyst. MDDPL was a leading engineering consulting company in Eastern
India, where her technical skills and her local language fluency were of value.
Manjoti’s first assignment was at a steel plant’s site office, to design and manage
the outsourced financial applications for its modernization project. Her job was
simple and structured, and it involved carrying out a set of precise instructions
daily. The learning for her as a fresher was immense. It was her first exposure
to workplace norms and procedures. Her supervisor was happy with her work
output, and that was all that mattered to her. In 1992 during her brief posting
at the MDDPL Head Office in Kolkata, Manjoti got married to Vivek, a friend
from her college days and an IT professional. Within a month of her marriage, she
was assigned to a project at Jamshedpur. Vivek stayed back in Kolkata, where he
worked and lived with his parents. The distance was not an issue since it involved
a few hours of travel every weekend. Sometimes she would travel to Kolkata and
on other weekends he would travel to Jamshedpur.
Etched into her memory were two incidents at MDDPL. One day a group of
kurta-clad men walked into the site office and started looking for the Resident
Manager.2 Without thinking twice, she stopped them, telling them that they could
not enter the premises without permission, and asked them to wait in the reception area. The strangers grudgingly left. Later, her colleagues crowded around her,
telling her that those intruders were local goons who visited all offices to intimidate
people; hence it was best to turn a blind eye and ignore them. However, Manjoti
stood her ground and reported the incident to the senior officers even if it merited
no action by the management. She found that it had earned her the respect of her
colleagues. On another occasion, a senior officer from the head office in Kolkata
visited the site office for the quarterly reviews. During the project review meeting,
1
Name of the organization has been masked to retain confidentiality.
Resident manager—the designated person in charge at a site office with administrative responsibilities.
2
The Being and Becoming of a Leader in STEM
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he scolded her in front of the entire team, pointing out a few errors in her report.
She fled to the restroom in tears, humiliated, avoiding the sympathetic looks of her
colleagues. She wondered, “am I being singled out for my skill and capability or
for being the only woman in a male-dominated profession.” Later she got to know
that the officer had gone out for lunch and returned drunk. Her work was not the
reason for his outburst. She decided that she would not allow anyone to make her
doubt her ability. She felt grateful for the early life lessons these incidents taught
her.
Five years went by quickly. Manjoti was promoted twice in five years and
gained good exposure from being rotated across three project locations. However,
work was becoming monotonous, and the glamour and independence of a salaried
job were wearing off. Her interactions with other on-contract project teams from
organizations like Wipro and TCS made her feel like ‘a frog in the well.’ Those people were working on contemporary technologies for multiple clients. She decided
it was time to spread her wings and explore the software services industry in the
Silicon Valley of India—Bangalore. She knew she had the qualities that made her
stand out from others and a dare-devil attitude towards work and life in general.
She was looking forward to the opportunity to learn new skills and technologies
and engage with her career more actively.
4
Breaking Out of the Comfort Zone
After several discussions with family members on both sides, Manjoti and Vivek
decided that she would shift to Bangalore to look for new career opportunities, and
Vivek would join her once she had a job there. She resigned from MDDPL, served
the four-week notice period, bought a one-way ticket, and boarded the train to
Bangalore. She often wondered what made her take such a risk. After staying with
a friend for a week, she moved into a PG (paying guest) accommodation in the
crowded locality of Marathahalli. She initiated contact with her MCA classmates
and realized that of immediate priority was for her to update herself with more
advanced technical skills. She enrolled in a course in the latest Java technologies,
a much-in-demand skill at that time. The three-month course included an internship
of 1 month. After the course, it took her another two months to find a job. Her
persisting challenge with spoken English posed severe hurdles. When she finally
got a one-year contract job, the role was of a Systems Administrator, which did
not leverage her experience, nor did it align with her career plans. She accepted
it while continuing to explore other opportunities through placement firms and
friends.
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Four months later, she cleared the selection at MayoSys Systems3 as a Software
Developer—a UK-based IT company that had recently opened its India operations.
Manjoti committed all her time and effort to her job, which meant long hours and
sacrificing her weekends to work. Learning to live with a small salary in a big
city was a new skill that she understood. After two months, Vivek joined her in
Bangalore and quickly found a job there.
Six months into her job at MayoSys, she was selected for an assignment at
the headquarters in Manchester, UK, for three months, which later was extended
to six months. India, with its labor cost arbitrage, was rapidly growing as the
preferred destination for offshored software services and software development.
Manjoti had to close an ongoing project for one of the key clients of MayoSys in
the UK, and then train and migrate the project to a team in India. This proved to
be a turning point in Manjoti’s career. For the next three years, she was caught up
in a whirlwind of travel across various locations in the UK and Europe, bringing
overseas projects to teams in Bangalore.
By now she had gained significant subject matter expertise in the banking
domain and had sharpened her project estimation and execution skills and exhibited diligence in delivering projects within deadlines. She continued to be assigned
bigger responsibilities, handling critical clients and projects with larger budgets.
She learned to work in various cultural contexts increasing her sensitivity to intercultural nuances, what to speak and where, what clothes to wear and for which
occasions, and an overall acceptance of individuals with different cultural mindsets. Coming from a small town, Manjoti had always kept herself grounded, alert
and vigilant to the context. She never hesitated to ask for help, nor did she think
twice about asking questions when she did not understand something. She met
up with senior colleagues seeking insights. It helped her learn and be prepared in
advance for new assignments and remain open to unfamiliar experiences that she
might confront. She developed a keen passion for the work she did, was able to add
value at the workplace, and constantly sought opportunities to make a difference.
Juggling work and family was challenging too, and Vivek was not an easy
person to appease, but she somehow managed. It meant waking up at 5 AM,
cooking, getting breakfast on the table and lunch packed for the day for the two
of them, and still leaving on time for work. The company provided transport from
the residence to the office, but it involved two hours of travel every day. A year
later she and Vivek were blessed with a daughter. The maternity break she took
gave her the time and space to reconsider her career trajectory. Thankfully, her
parents-in-law came to live with them so that she could continue to pursue her
career. Her in-laws were very proud of her high-paying job and the quality of life
the couple lived in Bangalore. They willingly stepped in to provide the support
she needed at that time.
3
Name of the organization has been masked to retain confidentiality.
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259
Committing for the Long-Haul
It has always been acceptable for people in the IT industry to move jobs even
when they are satisfied and happy with their work. With rich, multi-cultural, technical experience tucked under her arm, Manjoti now began planning her career
more strategically. Her confidence had significantly gone up in the three years
at MayoSys. This time she thought through her job choice differently by targeting the brand instead of the role. She enrolled with a placement consultant to
help her identify a job of her choice. She evaluated the organizations and job
descriptions the consultant shared, seeking a strong brand that would add value
to her resume and be professionally satisfying. After almost 7 weeks of multiple
interviews, Manjoti got an offer from the world’s largest global blue-chip IT company—IBI Corp.4 It gave her a 25% increase in salary and the job role of a Project
Lead. Although she had been up for a promotion as Project Manager at MayoSys,
she accepted the offer from IBI. She knew that it would only be a matter of time
before she could demonstrate her capabilities and prove herself worthy of a similar
position in the new organization.
Manjoti took a while to adjust to the systematic and procedure-driven approach
expected in a large multi-national organization. It took her six months to get acclimatized to the work culture and find her feet at IBI. She prided her ability to be
a quick learner, never shying away from seeking information. Within a year of
joining IBI, they moved her to London for a new project based on her experience
at MayoSys. Projects at IBI were much more significant, each running into rupees
4 crores to 6 crores (INR),5 far higher than the Rs. 20–30 lakhs (INR) projects
that she would manage at MayoSys.
Knowledge about the domain, technical skills, and customer-centricity puts a
technology careerist in the limelight. Her years of hands-on programmer experience continued to stand her in good stead in all her assignments at IBI. There were
several instances when Manjoti rolled up her sleeves and worked on the coding,
cleaning up of datasets, and running of test reports, long after the team had gone
home.
Manjori recalled a specific incident when they had to roll out a huge code base
for a leading global insurance organisation to generate their quarterly reports. The
code was moved to production 48 h prior to ‘go-live’ at client location. However,
when the test reports were generated, they contained incorrect values, improper
alignment, and the output generated was garbage. Overnight the code was rolledback, the database cleaned, and backup data reloaded to client servers, only to
generate incoherent reports once again. It was Saturday and she still recalled the
shrill voice of the unhappy client threatening dire action and imposing penalty if
the problem was not fixed by Monday morning. There was no work from home
in those days, neither was there internet connectivity to support such work norms.
4
5
Name of the organization has been masked to retain confidentiality.
INR Indian Rupee.
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S. Dash and S. Pattnaik
She jumped straight in and got two of the senior team members to check the code
once again, sure that it was just a small issue that was causing such wide-spread
errors. The other senior developer could not take the pressure, she informed her
colleagues and left office citing illness. Manjoti had logged into the server and
run through the codes to analyse the problem along with the other developers,
reviewing the coding logic for every module to identify issues. Finally, it had been
8 of them, 3 women and 5 men as a team working through the night on Saturday
and all day through Sunday to move the corrected codebase to production by 5 AM
on Monday (US time). The reports generated were all in order. They had been at it
for 60 + hours at a stretch and the client was happy. She knew that it was possible
only because the team had respect for her, that she knew the application, the code,
the data and had sat it out with them to fix the issue.
Two years after joining IBI, she celebrated her promotion to Account Manager.6
She knew that it was possible only because she had earned the respect of her
team, worked closely with them to fix technical issues, and coached them too.
Manjoti became well known for her commitment—“if she said she would do it—it
will be done,” that was the reputation she established with her seniors at the next
level. All along, Manjoti managed her team like a close-knit family, celebrating
birthdays and anniversaries, hosting team lunches, and Friday outings, encouraging
picnics with the family members, having career conversations with team members,
coaching, and advising them. She encouraged senior team members to lead specific
quality improvement initiatives and become mentors for newcomers.
At IBI, employees were reimbursed for taking on new skills certification
courses. Manjoti made it a point to complete at least one work-related technical,
quality, or process certification every six months to ensure she was in step with the
next-gen (generation) competencies. It increased her readiness for taking on new
projects and clients. She also enrolled and completed her PMP (Project Management Professional) certification,7 which enhanced her credibility globally. While
sleepless nights and tense days were a part of Manjoti’s life, giving up was never
a thought that crossed her mind. The luxury of a well-paid job and the status it
provided her were worthwhile investments for a secure future. In her sixth year at
IBI, she was a Client Engagement Representative.8 Work-life was both challenging and satisfying. Based on her experience, she got the opportunity to execute
on-site projects for key clients in London and later in San Francisco. She continued to take on different projects across various domains to increase her portfolio
of domain and technology exposure. Her career graph kept growing (Annexure I).
6
Account Manager—responsible for all projects related to a specific client.
PMP is a Project Manager certification provided by Project Management Institute—one of the
World’s Leading Project Management Organization.
8 Client Engagement Representative—responsible for end-to-end interactions with a specific client
from the time the order is received till the time the product/service is delivered and post-delivery
support.
7
The Being and Becoming of a Leader in STEM
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261
Strategizing for the Future
IBI Annual Awards at Kota Kinabalu, Malaysia was held on June 2011. Though
she knew it, Manjoti was overwhelmed to hear her name announced as the winner
of the Best Business Manager of the Year 2010 award. Tears welled up, and her
voice trembled as she was handed the award and then the microphone to say a few
words. She received the award in an auditorium filled with more than 22,000 IBI
veterans. It was proof that “when you do your best and keep continuously learning,
opportunities will follow,” she thought as she hugged herself with joy. For the
previous five years, she had been on the ‘high potential talent’ list of IBI India.
All along, her zeal and passion were well demonstrated.
However, in the technology industry, which she felt was more a man’s world,
just completing good work and delivering on time was not enough. She had to
make herself visible. There were enough people with cutting-edge skills; it was
essential for her to keep her stakeholders aware of the work she did, and the
challenges she overcame, in other words—to showcase herself . Manjoti started
preparing for peer meetings and review meetings and participated proactively
in them. She invested time in networking with colleagues and keeping herself
informed of new projects and customers of IBI. It increased her awareness of what
was happening beyond the confines of her domain and location. She started attending conferences and seminars, interacting with thought leaders outside IBI, and
keeping herself abreast of emerging technologies and trends in the industry. She
began to scale her attention to things that were beyond her specifically assigned
projects and customers. She shifted her attention to strategic, organizational, and
industry viewpoints. She started focusing her efforts on the revenue-building
aspects of the projects and clients assigned to her.
Things were going well. However, Manjoti felt that she needed to do something
about her English language skills. It had started to impact her confidence. She felt
that she was losing out on being assigned good projects with key clients because
of it. “Would my questionable communication skills potentially cripple my further
career progression,” she worried. The urge to do something about it was strong.
During her next performance review discussion, she laid the cards on the table
and openly asked her manager for mentoring help. He promptly assigned her to a
senior lady mentor, Anita,9 who had just returned from her maternity break. Manjoti started spending time with her. Anita would review her email communications,
and presentations to clients, tutor her, and provide feedback on her written and
spoken English. In addition, Manjoti also enrolled herself in a two-month English
language tutorial course. After work, three days a week, she would attend classes
to strengthen her English grammar and writing skills. It helped Manjoti immensely,
and her confidence skyrocketed. Her technical project management skills, coupled
with her team management skills and her new, improved communication skills, set
her up for her next promotion.
9
Names have been masked to retain confidentiality.
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S. Dash and S. Pattnaik
After 11 years at IBI, she finally made it through to the senior management
level as Lead Insurance Practice.10 It had not come easy. She had worked hard for
it—meeting deadlines and committing long hours both on the job and off the job.
It gave her the much-needed foot in the door to take her aspirations to the next
level. She began to think, “why not a leadership position.”
7
Breaking Through—The Glass Ceiling
While it had been tough to fight the gender stereotypes at the workplace and keep
moving forward, ignoring it was a strategy that worked for Manjoti. “Being me and
my natural self in all situations” was the approach she adopted. She never hesitated
to speak up and built on her work skills and work deliverables to stay focused. Like
a horse with blinkers, she ignored any distractions that might divert her attention.
Manjoti realised that her ability to juggle multiple responsibilities and multiple
roles and prioritize without losing focus on any was her key strength. Soon she
realized that in large technology organizations, top performers were highly valued
resources. Those in the top management and especially those at the next level
steered top performers into larger projects, encouraging them to sharpen their skills
for next-level roles. It helped her focus on a fast-track career, and it was no surprise
when she got promoted as Lead (Global Business Solutions), reporting to the CEO,
a hard-earned position in one of the largest software services organizations in the
world.
8
Life at Cross-Roads
On the professional front things had only moved upwards while on the personal
front life had taken a downward turn. She and Vivek decided to walk separate
paths, ending a 16-year-old relationship. Despite all her attempts, it was tough for
her to accept that finally, their marriage had to end after all these years. It was
equally traumatic for Karen,11 their daughter, but it was better than putting up a
front for the sake of the family. For a while, she held herself responsible for what
happened, blaming her work preoccupation, and kept feeling defensive and guilty.
Fortunately, the decision to part ways was by mutual consent. The paperwork
took a year and a half, but Vivek insisted that it be formally instituted, for which
she was later thankful. Connecting with close friends, she found out that it was
her steady career progression and his somewhat slower career growth that might
have been the bone of contention. Because they were both in the same industry
Vivek was unable to come to terms with her sustained success. “The glass ceiling
might often be at home, not necessarily at the workplace alone,” she ruminated in
10
Lead Insurance Practice—responsible for a business domain and accountable for projects across
all clients.
11 Names have been masked to retain confidentiality.
The Being and Becoming of a Leader in STEM
263
retrospect. She was completely shattered and took a month’s break from work. It
took a lot more than just self-respect to walk back into the office a month later and
pretend that nothing had changed. Thankfully, her passion for her work kept her
going, and she swiftly got back into the thick of things on the job. “All is well”12
was her mantra even before the movie 3 Idiots13 made it popular. She prided
herself on her ability to wear a smile no matter what was happening either at work
or on the personal front. She kept repeating ‘this too shall pass’ the magic words
that had worked wonders for her in all contexts. Three years after her divorce, she
married Tahir.14 It was a big decision that she made by herself. She felt proud and
relieved that Karen accepted Tahir as her father.
9
Reaching Out
Nurturing an innate sense to impact lives of other women, she started to actively
engage in diversity initiatives at IBI, where there was increased pressure from the
US (United States) headquarters to globally institutionalize diversity practices in
a big way. She was nominated as a member of the Diversity Board and began to
play an even more prominent role, committing her time to mentoring women professionals in the organization. Her personal and professional struggles had taught
her the need to help other women develop and sustain themselves in their careers.
She took up initiatives at work to get more closely involved with coaching and
mentoring women talent at IBI, leading all-women hiring initiatives, and actively
promoting IBI’s sponsorship program to nurture high-potential women professionals in India. This gave her yet another opportunity to demonstrate her commitment
and strategic engagement as a business leader. She did not limit herself to just
gender diversity but extended her support towards initiatives that addressed other
dimensions of diversity like disability and regional diversity programs. It also
widened her professional network beyond her immediate work specialization.
When her daughter Karen entered the 9th grade, Manjoti was clocking 14 years
at IBI. There was no pressure from either Tahir or Karen, but she felt that it was
the right time to take a break. She wanted to be around for her daughter’s 10thgrade preparation and final exams. After 14 years at the blue-chip company and at
the peak of a successful career, she resigned. She felt apprehensive about the risk
she was taking by putting her career on hold. Yet she drew comfort from the fact
that personally, it was the right thing for her to do.
12
All is well—a persistently positive attitude towards accepting challenges as a part of life.
3 idiots—a popular Indian movie released in 2009 where the term ‘all is well’ was extensively
used.
14 Names have been masked to retain confidentiality.
13
264
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S. Dash and S. Pattnaik
Back in Action
Two years later, she was all set to get back to work. The thrill and the challenge
that a career offered her were immeasurable. Even as Karen was writing her Board
exams in June 2018, Manjoti began updating her professional profile on LinkedIn.
Re-joining IBI was always an open offer. They had approached her twice in the
past year, asking her to consider taking up a new role with them, but Manjoti had
other plans.
She completed an online cloud computing Certification offered by Stanford
University. A fresh start gave her better opportunities to negotiate a senior leadership role. Start-ups were rapidly mushrooming, and there was tremendous potential
for her to seek a more significant and strategic role. She tapped into her professional network, and within a week, she received an offer from a 5-month-old Indian
start-up Cloud Com (CC),15 an offshoot of the UK software company in the cloud
computing space. The firm was pitching for its second round of venture capital
funding and wanted her to join at the earliest. It was a global role as the Vice President—Production and involved the exciting prospect of setting up the software
production center in India for CC. The Vice President’s role demanded leadership
qualities and an in-depth understanding of business, administration, and operation.
All the hard work of yesteryears was paying off, her risk-taking propensity was
back, and she was ready to walk the path less trodden.
11
Another Dream Comes True
It has been a year since she had taken on the new role, and things had shaped
out well. Within two months of her joining, the venture capital firm approved the
second round of funding. This opportunity pushed her to learn new management
skills and demonstrate her technical knowledge in a new and emerging field. She
gave herself a pat on her back. No one else would understand what it had taken
for her to climb this high and get this far. Though it was still early days, the Head
Office was happy with the operations and the output delivered by the India team.
Manjoti was heading the operations and the project responsibilities so far and was
the one in charge of the India business. The approval she just received for hiring a
COO and Project Head would allow her to focus on drawing up bigger plans for
CC, India. For now, she could proceed with the next step in the project roll-out
plan. Indeed, what a ride it has been, and still there was an exciting road ahead.
Her leadership career had unfolded itself one step at a time. She sighed, musing
“STEM careers are particularly unique, and leadership success in STEM might not
be as easy as it sounds, no doubt!”.
15
Name of the organization has been masked to retain confidentiality.
The Being and Becoming of a Leader in STEM
265
Questions.
1. What makes Manjoti a successful leader in STEM professions?
2. What are Manjoti’s cognitive, affective, and behavioural competencies that
determine her attitude toward nurturing a leadership career?
3. What gender-role stereotypes are observed in the case?
4. What aspects of the psychological contract elements are exhibited by the protagonist and by the organizations she worked in? How are they reciprocated by
the two parties?
Annexure I: Exhibit
Career Timeline Map: Manjoti.
I took what came, was desperate, worked in shifts, nothing much I learned,
not my area, kept looking out for jobs
Systems Administrator
Bangalore
decided to more exposure to the IT world and moved to Bangalore
travel alone and become independent,
learned a lot, good work, and lots to do, I also was keen to learn, learned to
Applied and got a job in a project engineering company
but still took a chance and enrolled for MCA at NITR
IT was growing, though not very sure of the value of MCA at that time,
Notes
Eastern Software Pvt Ltd.
Training
Got married (Vivek)
Sr. Analyst
Analyst
Trainee Analyst
MDDPL
MCA
Career events
1995
Bangalore
1994-1995
Kolkata
Jamshedpur
Rourkela,
1989-1994
1989
Location
Year and
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S. Dash and S. Pattnaik
Bangalore
Certification as it carries a lot of weightage in the workplace
2 big successful projects and I got identified as 'high potential talent' and
placed on 'fast-track', kept taking on more work with bigger challenges,
and bought my own flat.
I made it a point to keep myself updated, so I would do technical
certifications every 6-9 months interval. I also completed my PMI
clients, tough clients. I learned all the way
roles kept coming my way, and I kept saying yes, new domains, new
spent well, lived well, work was very challenging new technology, bigger
which was excellent exposure to work. Also, lifestyle, did not cut corners
Bangalore
Europe
The icing on the cake was the project in London within a year of joining,
Account Manager
Client Engagement Representative
planned and together relocated to London, UK temporarily for a year
teams, and enjoyed life travelling overseas. Both me and my husband
worked on improving my technical skills, got opportunity to lead small
successful that gave me more confidence, discovered my strengths
worked hard, learned a lot, and learned from others around me. I was
My first real software development job, again a lot of opportunities,
Project Lead
IBI Inc (India)
Team Leader
Lead Developer
Sr. Software Developer
MayoSys Pvt Ltd.
1999
London
Vienna
Manchester
Bangalore
1995-1999
The Being and Becoming of a Leader in STEM
267
Break (2 years)
Cloud Com
VP Production
2018…
Lead GBS Operations (reporting to CEO)
Lead Insurance Practice
Kota Kinabalu
Best Business Manager Award
HiPo talent status
IBI Inc (India)
2016-2018
2014
2011
2010
2006—2009
I set up the office, hired the team, interesting work, I lead the India
business, and we are doing some good work here. Recently won a huge
contract, leadership team is expanding. 2nd round funding is awaited
daughter was growing up, felt she was neglected, decided I must be there
for her Board exams, decided to take a break.
Was also nominated to the company's diversity board for India, lead the
India initiatives on diversity and did a lot of work in that area
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The Being and Becoming of a Leader in STEM
269
Appendix: Teaching Note
Case Synopsis
Manjoti is a small-town girl whose leadership career commences with a humble
beginning in a mid-sized private engineering consulting firm and takes her onwards
to scale to leadership roles in one of the world’s largest blue-chip technology
companies and beyond. As a science graduate she gambles by doing her Master’s
in Computer Application (MCA) when it was first introduced, and many were
sceptical about the value of such a course. She banked on the pedigree of the
institution to make it worth the while. She spends the initial five years of her
career in a 3rd party project consulting company and learns the ropes. She learns
by dirtying her hands on the job and is acknowledged for her strong character and
career commitment. As her skills and confidence build up Manjoti moves to deeper
waters to try her luck and establish her career in the software services industry. She
then boldly ventures out into the ocean of opportunities provided by the software
technology industry and moves to Bangalore from small-town Jamshedpur.
Manjoti keeps upgrading her skills constantly to keep pace with the needs of
the new roles she takes up and with industry trends to ensure relevance in the fastpaced IT industry. She moves from one job to another, constantly building newer
skills, exploring new learning opportunities, and nurturing a diversity of experiences which is essential for nurturing a STEM career. Manjoti takes on bigger
challenges and draws on her skills and experiences to obtain a job at one of the
world’s largest software blue-chip service MNCs. Here she spends a good 14 years
of her career steadily climbing the corporate ladder one step at a time. She moves
across locations, projects, and positions putting in the needed stretch to meet work
deadlines and quality standards. She builds versatile expertise across software
service delivery business verticals that enrich/strengthen her professional profile
making her a suitable candidate for ongoing career progression. She demonstrates
both commitment and tact in ensuring her work is recognized and acknowledged.
She works on her debilitating communication skills and enlists mentorship to overcome limitations. Manjoti is rewarded by the blue-chip company with a fast-track
career and is identified as high-potential (HiPo) talent. She enjoys the privilege
of being given even more challenging assignments and opportunities to learn and
grow, and remains a top performer, consistently retaining the status of a hi-po
(high potential) employee. She wins the responsibility of championing innovative
diversity initiatives and as a leadership member takes on mentoring initiatives for
young women professionals within the organization.
On the personal front Manjoti battles with a troubled marriage that she attempts
to hold on to until finally, they decide to part ways. As he perceives it, her husband, who was in the same industry found that she was progressing faster than
he did. As a high achiever, while her career soars, she has to deal with the challenges of a relationship that is falling apart. She moves forward with resilience to
rebuild her personal life finding a partner of her choice to re-establish a secure
home for herself and her family. She takes a career break of two years to be there
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S. Dash and S. Pattnaik
for her daughter and quickly returns to a leadership role with a start-up. Eager to
once again engage with the novel opportunity to hone her skills in the technology space, she takes on an institution-building role setting up operations for the
UK-based MNC in India, calling to fore the multifaceted skills she has amassed
over the years. Manjoti continues to look forward to a rewarding corporate career,
welcoming new opportunities and being willing to give it her all.
Learning Objectives
● To enable students to understand and compare and contrast the theories of
leadership and workplace implications for STEM professions.
● Gain insights into personality attributes, attitudes, and perceptions that determine leadership success and career progression.
● Demystify gender-role stereotypes that commonly exist and question how far
gender matters for STEM professionals aspiring for leadership positions.
● Understand the workplace application of the constructs of the psychological
contract of employability (Baruch, 2001) and psychological capital (Luthans
et al., 2015).
Case Questions and Suggested Time-Frame
Instructors may want to present the following questions to students in advance of
class, based on the objectives for the class:
1. What makes Manjoti a leader? Identify the leadership characteristics that
emerge from Manjoti’s story.
2. What are the beliefs, emotions, and behaviour that determine Manjoti’s attitude
toward becoming a leader? Point out two incidents from the case to defend the
point you wish to make.
3. What gender-role stereotypes and/or the absence of stereotypes do you observe
in the case? Does gender matter for STEM professionals?
4. What is the psychological contract you see being played out by Manjoti and by
the organizations that she has been part of? What more can be done?
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Option 1 to Be Taught as a Case on Leadership (1 X 90 min)
Teaching plan
Class discussion points
Duration
Leadership in action—group work
Group work to List the leadership
characteristics. See detailed instructions
below
Groups to debrief, reassign 1–2 attributes
to a team
Groups to discuss attribute and identify
evidence from case
Groups to present to the class
15 min
10 min
15 min
20 min
Gender stereotypes in STEM leadership
Instructor-led class discussion—based on
suggested Questions provided in the plan
below
15 min
Wrap-up concluding comments by
Instructor differentiating transformational
leadership from transactional leadership
style
15 min
Research Methods
An interview with Manjoti along with supplementary secondary research.
Case-Wise Analysis/ Responses by Authors Along with Relevant
References
Topic 1: Leadership in action in STEM professions:
This is an ideal case for group work. Case and supporting references are to be
read and discussed by the groups in advance prior to the class. Students can be
asked to form circles and sit in their respective groups. Groups spend the first
15 min preparing an exhaustive list of leadership characteristics that the case
throws up. The group leaders step up and list them on the board, or place them
on a chart using post-it notes that can be easily moved around and grouped. The
entire class led by the instructor synthesize the points across the groups to arrive
at a comprehensive list of attributes. The final agreed set of attributes is split
across the groups and 2–3 attributes are assigned to each group. The 2nd group
discussion involves the identification of beliefs, emotions and behaviour related to
the assigned attribute, that influence Manjoti’s leadership career trajectory. Groups
need to pick out at least two incidents from the case to defend each point they
make.
The instructor concludes by categorizing the leadership attributes as transformational vs. transactional leadership styles that meet the work demands of the
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STEM profession. A brief discussion on how much of each style is best suited for
managing work in such organizations can follow.
A transformational leader supports an agile work environment: Evidence from
the case shows that Manjoti appears to practice a balance between transformational
and transactional leadership styles. A few excerpts from the case are provided for
guidance below.
Manjoti shows characteristics of a transformational leader in the instances from
the case that are cited below.
(1) Nurtures positive development of followers
and enables motivation;
“They had been at it for 60 + hours at a
stretch and the client was happy. She knew
that it was possible only because the team had
respect for her, that she knew the application,
the code, the data and had sat it out with them
to fix the issue.”
(2) Demonstrates and maintains high moral
standards, with ethical standards supported by
clearly established values and work priorities;
“Without thinking twice, she stopped them
telling them that they could not enter the
premises without permission, and asked them
to leave the office at once. The people who
entered the office left but her colleagues
warned her that those intruders were local
goons, and they visited all offices in this
intimidating manner, and it was best to turn a
blind eye. Manjoti disagreed and stood her
ground and reported the incident to the senior
officers.”
(3) Promotes a cultural environment of
working for the common good;
“While it was tough to fight the men-women,
male–female stigma and move forward,
ignoring it was a strategy that had worked for
her. “Being ‘me’ and my natural self in all
situations” had been her motto. It served her
like blinders, keeping her focused totally on
work and work deliverables and ignoring any
‘noise’ that might distract her.”
(4) Emphasizes authenticity, cooperation, and
open communication;
“She asked her manager for mentoring and he
assigned a senior lady colleague to spend time
with her and for them to work on projects
together so that she could learn on-the-job.”
(5) Encourages high ownership for tasks
“She encouraged senior members in the team
assigned, and provides coaching and mentoring to lead specific quality improvement
initiatives, and to become mentors for
to facilitate decision making
newcomers in the team.”
A transactional leader on the other hand ensures routine and structure intending
to reduce chaos or inefficiency:
The Being and Becoming of a Leader in STEM
(1) Motivates through traditional methods of
rewards and punishments
273
“All along Manjoti ran her team like a
close-knit family, celebrating birthdays and
anniversaries, hosting lunches, encouraging
picnics with the family members, having career
conversations with team members, coaching
and advising them.”
(2) Drive task-focused efforts through
“Finally, it had been 8 of them, 3 women and 5
oversight, organizing, and steady performance men as a team working through the night on
monitoring;
Saturday and all day through Sunday to move
the corrected codebase to production by 5 AM
on Monday (US time). The reports generated
were all in order. They had been at it for 60 +
hours at a stretch and the client were happy
(3) Work environments are maintained by
“Manjoti became well known for her
keeping things consistent and predictable over commitment—“if she said she will do it—it
time with limited opportunity for innovating; will be done”, that was the trust level she had
established with her clients.”
(4) Supervisors focuses on identifying errors
and faults to closely investigate the cause and
create efficient, routine procedures;
“Manjoti logged into the server and ran through
the codes to analyse the problem with the
reports along with the other developers,
reviewing the key coding logic for every
module to identify issues. To add to the stress
the client kept calling every 30 min to check on
the progress.”
Concerning gender stereotypes, if any, in-class discussions could deliberate
on—Does it matter that Manjoti is a woman? What might have been different
if Manjoti was a man and how might it have changed things, if at all?
It appears that in STEM professions career experiences do not differentiate
between genders. As long as technical mastery and managerial skills are exhibited,
career progression and job opportunities are many. In the case, Manjoti shares no
evidence of discrimination, even though during the early part of her career she
shares concerns. Her subsequent ascent to leadership roles appears to provide her
the space to demonstrate her expertise and skills and to learn and grow consistently.
Manjoti does not share any concerns about exiting the workplace to take care of
her daughter, nor does she share anxiety in finding a job when she wanted to reenter the workplace after a career break. Her career aspirations continue to soar,
and she nurtures a positive outlook about her future.
Topic 2: Psychological contract and Psychological Capital.
This topic is best done as an in-class discussion session. Students are advised to
read the case and supporting references and come to class. Having covered the theoretical concept of the psychological contract, the session is led by the instructor
guiding the discussion first on the psychological contract. Students are encouraged to identify the explicit and implicit elements of the psychological contract
that exists between the employee (Manjoti) and employers (as per the information
shared in the case) and per hint 2 below.
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Subsequently, once the concept of psychological capital is covered by the
instructor the discussion on the role played by the four subconstructs of ‘psycap’—
hope, efficacy, resilience, and optimism can be opened for in-class discussion. The
students can be split into four large groups each for the 4 subconstructs. Manjoti
exhibits the four sub-constructs of psychological capital i.e. hope, work efficacy,
resilience, and optimism as proposed by Luthans. Hope includes the positive feelings of agency from goal-focused determination, and figuring out ways to achieve
goals. This capacity of psycap is visible in Manjoti’s career-focused activities. She
takes the risk to leave a secure job and shift to a new unfamiliar city to search for
her aspired job in the software services industry all on her own, filled with hope
that she too can make a career in the rapidly growing software services industry
in Bangalore. Self-efficacy is confidence in Manjoti’s ability to achieve a specific
goal in a specific situation. She seeks job changes aligned with her interests and
applies herself wholeheartedly to excel at them and to move on to a new career
opportunity. Optimism is observed in Manjoti all through her career as she confronts the challenges at work, taking them on with a positive attitude to realistically
align her actions by being aspirational with her career goals. Resilience is defined
as successfully coping with adversity or stress. This case carries many examples of
how Manjoti demonstrates the ability to “bounce back” from the many challenges
she faces both professionally and personally.
A psychological contract on the other hand is a type of deal struck between
an employer and the employee which is more implicit than explicit. It involves
the perceptions that the two parties, employer, and employee, carry out their
mutual obligations towards each other, which is implied rather than explicitly
stated. In this case, Manjoti while at MDDPL objects to the local goons who
enter the workplace unauthorized. She could have ignored them as her colleagues
did, instead she exhibits concern for workplace security and safety and confronts
the intruders. Similarly, Manjoti’s work commitment towards organization’s clients
is something she takes pride in and stretches to meet them. The organization in
turn fulfils its part of the psychological contract by providing her with challenging job opportunities, recognizing her as high-potential talent, and providing her
with career progression, work recognition awards, and leading and contributing to
organizational diversity initiatives.
Additional Assignments for Enhancing Learning
1. Ask students to interview one STEM professional from their network and bring
a key point of workplace management style that enables the smooth flow of
work in such professions. Students can discuss in groups and present in class
to increase their understanding of what it takes to practice leadership in such
professions.
2. If the instructor would like to delve deeper into gender issues, she/he can ask
students to interview two STEM professionals from their network, one man and
one woman, and do the assignment as listed in item 1 above. This could help
The Being and Becoming of a Leader in STEM
275
ascertain gender stereotypes that prevail and what organizations are doing to
prevent this.
3. Ask students to identify one professional they admire. It could be a person they
know or someone in the public domain about whom sufficient information is
available.
a. Ask them to identify leadership attributes they exhibit and the probable
leadership style they practice.
b. What attitude is practiced by these individuals—provide one example
c. Apply the ABC model of attitude to explain some incident in the life of this
person.
d. What kinds of instrumental and terminal values are evidenced through this
person’s interactions?
e. Are there any implications for the psychological contract that is shared?
f. Is it possible to identify the presence of the four components of Psychological Capital—H.E.R.O. in these individuals?
Conclusion
The key theme, in this case, is about becoming a leader in the STEM profession. STEM professions offer one of the most challenging opportunities for career
growth through the practice of both transformational as well as transactional leadership styles. This case study explores the leadership journey of a successful
woman professional in the STEM discipline. Manjoti is a small-town girl whose
career starts at the bottom and thereon traces a global path as she successfully
climbs the corporate ladder in one of the world’s largest blue-chip company in
the technology space. While passion for her work emerges as the critical success
factor, consistently nurturing new knowledge and skills keeps her relevant and
committed to consistently ensuring superior technical skills. She leverages opportunities that sometimes knocked on the door and more often needed to be sought
out, to grow and succeed. Further, this case is used to examine gender stereotypes
and perceptions related to the STEM profession.
The second theme this case highlights is the psychological contract of employability (Baruch, 2001) which is evident in Manjoti’s life story, and the construct
of psychological capital (Luthans et al., 2015) resources of Hope, Efficacy,
Resilience, and Optimism (HERO) which are observed in Manjoti’s approach
towards confronting personal and work-related concerns.
The case can be used in postgraduate classes of management and organizational
behaviour related to leadership. It can also be used in executive education programs
to discuss leadership issues and strategies for success as a leader.
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References
Hall, D. T. (1996). Protean career of 21st century. Academy of Management Executive, 10, 8–16.
Luthans, F., Yousseff-Morgan, C. M., & Avolio, B. J. (2015). Psychological capital and beyond.
Oxford University Press.
Baruch, Y. (2001). Employability: A substitute for loyalty? Human Resource Development International, 4(4), 543–566. https://doi.org/10.1080/13678860010024518.
Baruch, Y. (2004). Transforming careers: From linear to multidirectional career paths: Organizational and individual perspectives. Career Development International, 9(1), 58–73. https://doi.
org/10.1108/13620430410518147Robbins.
Students Must Come to Class Having Read the Case
and the Following Supplementary Reading
Sherbin, L. (2018) 6 things successful women in STEM have in common. HBR. https://hbr.org/2018/
04/6-things-successful-women-in-stem-have-in-common.
Additional Material
Greenhaus, J. H., Callanan, G. A. & Godshalk, V. M. (2018). Career management for life (5th ed.).
Routledge Taylor & Francis Group.
Sadhna Dash is Chairperson -Jyoti Nivas Incubation Centre at Jyoti Nivas College and visiting
professor at Bangalore University, Bengaluru, India. She was previously Head Academics at Delhi
Skill and Entrepreneurship University, New Delhi, India, and before that with XIM University
Bhubaneshwar, India. She enjoys teaching by applying the case method in management education and experimenting with new pedagogical approaches for impactful classroom experiences,
which is further strengthened by her 24 years of work experience in corporate HR. Two of her
co-authored books on Human Resource Management are popular texts used in BBA and MBA
programs across the country.
Snigdha Pattnaik is an academician, consultant and trainer who has done extensive work in the
areas of behavioural skills, human resource management, and women’s leadership for over three
decades. She has been Pro Vice Chancellor at Delhi Skill and Entrepreneurship University and has
also served as Professor in HRM and Founding Dean of the School of HRM at XIM University,
Bhubaneswar. She is passionate about learning and teaching and enjoys taking on new challenges.