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CCMC
Corporate Comprehensive Management
Consultants
“People Drive the Process of
Excellence”
1
Behavioral Scientists in Action
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Competency Based HR Practices in India:
Yesterday and Tomorrow – Lessons for South Africa
Key note Address at the Annual Conference of
ACSG, Stellenbosch- South Africa
Dr. S. Pandey
Corporate Comprehensive Management Consultants
India, Bombay
18th March, 2011
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Scope and Objective
Scope:
Current Business Environment in this
emerging economy
Opportunities & challenges of Enterprises
in general and specially Consulting
organizations including Management
Consulting Firms
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Scope and Objective (contd.)
Objective:
Insights for HR-Professionals and Enterprise
owners based on macro level secondary data
and ethnographic approach
Ideas about setting up business in India specific
emerging Industries
Ideas about specific business opportunities for
AC-professionals and Management
consulting in general
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Behavioral Scientists in Action
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India




Region: South Asia
Income category: Lower middle income
Population: 1,185,347,678
GNI per capita (US$): 1200
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India Business witnessed some critical
events recently
Pre-liberalization era (prior to 1990s)
Supply of fresh air in Auto and Manufacturing (post 1991-93)
The advent of IT (post 1992-93)
Speculative bubble covering roughly 1995–2000 (with a climax on March
10, 2000 the dot-com bubble burst)
The Call center’s entry to India, maturing to serious BPO business (ITES –
technology driven). End 1999-2000
The rise of emerging markets; following Y2K, the IT-service business in
many domains, KPOs
The recent economic meltdown (2007-8)
The recognition of economic growth engines along with some of the
developing countries in Africa, Asia, and South-America since the
middle of 2009.
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AC Market
Money Supply
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Graphs are for representational purpose only
Pre 1980s
1980s
2005
1995
1990
2000
2010
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The story of Competency based HR practice in
Indian Business organizations
Ethnographic Domain: Selected 30 significant
Competency design & implementation
projects selected in western, southern, and
north India; over a period of about 15 years.
Research and consulting assignment of a
group of early practitioners of competency
based work that the author had opportunity
to see from inside
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1994-2000 [large numbers; lower to middle level; long duration; all but 1
had critical issues
No.
Year
Project
Company
1.
1994-97
Start-up Assessment Center: Design, Development and
Implementation
General Motors (India) Ltd.
Halol, Gujarat
2.
1994-97
Development Center – Institutionalization
Assessor Training
Castrol India Ltd. HO:
Mumbai
3.
1998 - 2000
Development Center for Marketing and Sales Personnel;
Assessor Training
Kirloskar Brothers Ltd.
Dewas, Indore
4.
1996
AC for the Selection Center for civil aviation Pilots
Jet Airways (I) Ltd. Mumbai
5.
1996
Internal Selection Center Design & Implementation for
International Safety Rating Group- Assessment Centre for
Selection of Safety Engineers
Oil & Natural Gas Co. (ONGC)
6.
1999*
Competency Assessment of Middle Management
Psychological testing and competency assessment of middle
level executives
Jindal Iron & Steel Co. Ltd.
Mumbai,Tarapur and Vasind
7.
1999-2000
1. Assessment Center: Promotion and Development Center
for Sales Personnel
2. Internal Assessor Training
Colgate-Palmolive India Ltd.
HO - Mumbai
8.
1996*
Selection of Top Managerial Positions, including Managing
Director
SPACO Carburetors(I)
Ltd.
Automobile Ancillary
Pune and Vadodara
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2001-2005
[Strategic areas, deep interest; institutionalization
Year
1.
2001
Design and Implementation of Software Engineers Selection System
2.
2003
Design, development and implementation of a series of Assessment Centres for the
identification of Future Business Leaders.
Satyam Computer Services
Ltd. Hyderabad, Bangalore,
Chennai
3.
2003
Design, development and implementation of a series of Assessment Centres for the
identification of Future Software Technical Architects
Satyam Computer Services
Ltd. Hyderabad, Bangalore,
Chennai
4.
2003
Internal Capability building through development of an Internal pool of Assessors
WNS Global Services (P) Ltd.
(Subsidiary of British
Airways) a BPO Bombay, Pune
5.
Ongoin
g Since
March
2004
1.Design and Implementation of Organization Wide Competency based
Development Centres.
2.DC for all GMs & VPs
3. Internal Capability building through development of an Internal pool of
Assessors
4. Training of all HOD and Sectional heads in Performance Coaching.
5. Technical Leadership Framework : Competency Model Design & Development
Reliance Industries (3
6.
2005
Development Of Competency Based Systems For End User Sales Personnel & Sales
And Marketing System Audit
PCS Industries Ltd. Mumbai
7.
2004
Organizational Diagnosis: With Special Reference To OCIL’s Readiness To
Implement A Competency Framework Based People Management System
Owens Corning India Limited
8.
2005
1. Behavioural Leadership Excellence Model & Design and Implementation of
Sasken Communication
Technologies Limited
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No
Project
Assessment cum Development Centre for
Services Group
Company
Patni Computer Systems
(PCS) - Mumbai
locations)
2. Behavioural Leadership Excellence Model and Design and Implementation of
Assessment cum Development Centre for
Product Group
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2006- 2007
Year
Project
1.
2005
1. Design and Implementation of Competency based Assessment Centres
&
2. Internal Capability building through development of an Internal pool
of Assessors
TeleTech-India
2.
2006
Design, development and implementation of organization wide
Competency based Assessment Centres
WNS Global Services (P) Ltd. a
BPO Bombay, Pune
3.
2007
Technical Expert for NAC – NASSCOM for Assessment of Competence.
With primary responsibility to Lead all Technical initiatives of TEC
(Technical Evaluation Committee).
NASSCCOM (National Association
of Software &Services Companies)
4.
2007
Behavioral Competency Certification of Delivery Group: The process
review and Augmentation
Infosys Technologies Limited
(Infosys Leadership Institute)
5.
2007
Behavioral Leadership and Technical Leadership Framework:
Competency Model Design & Development and deployment facilitation.
Flextronics Software Systems
(Aricent Technologies Holdings
Ltd.)
6.
2007
Design And Development Of A Competency Framework For Lead Analyst,
Senior Analyst & Analyst in WIPRO-UBS
Supplementary Selection Tool Development based on Psychometric
Testing for Entry level
WIPRO-UBS BPO
7.
2007
Technical Leadership Framework : Competency Model Design &
Development
Sasken Communication
Technologies Limited
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No.
Company
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2008- Onwards
No.
Year
Project
Company
1.
2008
1.Fresher Selection System Design
2. Workshops On Competency based interviewing skills
3. PMS for freshers based on PR Attributes
4. Competency based Training programmes
Flextronics Software
Systems (Aricent
Technologies
Holdings Ltd.)
2.
2008
1. Behavioral Leadership and Technical Leadership Framework: Competency
Model Design & Development and deployment facilitation.
2. Development Centre for all General Managers and VPs
Varroc Group-
3.
2009
Design and Implementation of Development Centres for a Select group of
Middle-management employees
Indian Oil
Corporation Limited.
4.
2009
1. Competency based Organization Structure and Development of Job
descriptions
2. Design and Implementation of Competency based Performance Management
System.
Varroc Group
5.
2010
1. Design and Implementation of Competency Framework and Competency
based selection centre for Entry Level Pilots.
2. Assessor Training Programmes for Pilot- Commanders – Internal Capability
building for Implementation of Competency based selection centre for Entry
Level Pilots
3. Assessor Training Programmes for Managers – Internal Capability building for
Implementation of Competency based selection centre for Entry Level Pilots
Jet Airways India
Ltd.
6.
2010
2011
Assessor Training Programmes for Sr. General Managers and Assistant Vice
Presidents – Internal Capability building for Implementation of Competency
based Assessment & Development centre
Preparation of Feedback facilitator
Reliance Industries
7.
2011
Competency based 360 Degree Feedback for MD & top management team
Varroc Group
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The summary or Trend analyses
1985-1993:
 Localization (Indianization) of MNC
Competency frameworks (that was designed
in EU, Germany, & US parent organizations),
preparation of Method bank, AC stationary,
supplemental psychometric tests, Assessors
training and handholding for deployment
 In the form of MDP: Seminars on AC
approach, Assessors training program
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The summary or Trend analyses
1994-2000:
 Full blown Competency framework
development for Organization wide use
 Start-up Assessment Centre design and
implementation for large scale selection
 Indian Manufacturing organizations, Large
PSUs (specialized project), Civil Aviation
(Airlines Pilots)
 Approach was mostly problem shooting
events
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The summary or Trend analyses
2001-2005:
 Along with Behavioral and Leadership Competency
Models, the Technical competency models
construction and deployments
 AC approach based interventions in strategic areas,
across functions, deep interest, institutionalization
 Mostly Indian fast growing Large or very large
organizations. Top and middle management level.
 Industry: IT (product & service companies), ITES/
BPO/ KPO, Petrochemical, Refineries,
Telecommunication software
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The summary or Trend analyses
2006-2007 (just before global recession)
 IT organizations large projects, serious
developmental centers with long drawn interest in
overall Human capital approach; use of AC for
Merger & Acquisition.
 Organization wide deployment of Competency based
HR system design and implementation
 National level vision for AC (NAC) by NASSCOM
(National Association of software and service
companies); state Govt.’s Dept of education initiative
for standard XII students’ preparation for
employment in emerging BPO organization
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The summary or Trend analyses
2008-2010
Organization wide deployment of Competency based HR system
design and implementation or isolated competency based HR
system design e.g.,
 Competency based performance management system
 Competency based promotion system,
 Competency based Graduate engineers’ on campus selection
system,
 Competency based Technical & Managerial training systems
Strategic leadership development as a proxy to OD
Airlines Pilot, Cabin crew, Maintenance engineers
In Automobile, Petrochemical and refinery, Petroleum product
marketing company, PSU,
Few IT telecommunication
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India Business Environment,
Opportunities*
Strong Growth Momentum
•
Sustained process of liberalization (since 1991): Continuous GDP growth,
Increased openness to foreign trade and investment - declining tariffs,
liberalization of FDI restrictions
•
Rapid growth in export-oriented IT, ITES/BPO, & Retail industries
•
Manufacturing is a strong base
•
Fast growing Automotive sector (India is highest 2-wheeler producer in the
world)
•
The above has stimulated Indian industry to restructure for international
competitiveness
•
Strong balance of payments - rapid build up of reserves
•
Growing portfolio investment
•
Cross-party support continued for liberalization in-spite of coalition Govt.
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Based on International Finance Corporation report, CDC report and other published data]
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But private industry remains underdeveloped
• Private investment only 15-20% of GDP
• FDI flows still low (< 3%)
• Industry contributes < 30% of GDP
• Only 10% of total employment is in the
organized sector
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Remaining Growth Constraints
•
•
•
•
•
•
•
•
•
High fiscal deficits crowd out public and private investment
Severe infrastructure bottlenecks
Rigidities in labor and land markets
Widespread Govt. ownership of business, dominance in banking
Corruption is wide spread; particularly in Govt. regulatory
institutions (proximity to the government is an enormous source
of profitability in India)
More than 30% of Indians survive below poverty line and India
has the second largest number of billionaires, second only to
Russia
Import tariffs, complex tax regimes
Restrictions on FDI in some sectors
Excessive regulation increases costs of doing business
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Investment Climate at a Glance in
early 20th century
China
India
9.2%
16%
Share of firms with own
generators
30%
69%
-
Days to clear imports
(longest)
12
21
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Cost of Shipping
5.4%
8.5%
6.7%
Paved Roads (% of
total)
88%
56%
97%
Cost of Capital
5.85%
12.3%
7.8%
% of Sr Mgt time
with Govt. officials
Thailand
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Opportunity
Large, rapidly growing domestic market. Phenomenal
increase of disposable income in the hands of ever
growing Middle class (350 million strong middle class
which commands a formidable spending power)
Large, low cost labor force availability (though
business of labor arbitrage is under pressure but
growing)
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Opportunity
 World’ largest supply of scientific Man-power (but
only 18% of the fresh technical graduates in India
possessed the right skills for jobs in IT services
companies) Engineering/IT/English language skills
 Abundant availability of raw materials
 Political instability, but consensus on economic
policies
 Growth in private ports and SEZs (special economic
zones) addresses lack of infrastructure for exportoriented industry
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High Potential Sectors in India
 Knowledge based organizations, as for example,
Software services, ITES (BPO/ KPO)
 Autos and components
 Medium Engineering-based manufacturing
 Steel
 Textiles
 Pharmaceuticals
 Alternative to China for companies looking to source
merchandise globally
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Ideas about specific business
opportunities for ACprofessionals and Management
consulting in general
26
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Knowledge based organizations, as for example,
Software services, ITES (BPO/ KPO)
1. Behavioral competency is not enough for these Knowledge
based organizations. They need complex technical
competencies, Techno-behavioral competencies, domain
competencies, quality competencies for superior
technology transfer, R & D, and superior service
2. Talent supply:
Macro level data shows talent availability is in abundance.
The ground reality is very different; competencies are not
aligned, employability is low. Labor Market supply of
competencies do not match the companies’ demand
matrix of competencies. Pre-job and post employment
competency development is of dire need of the day.
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Knowledge based organizations, as for example,
Software services, ITES (BPO/ KPO) Contd.
Talent shelf life is decreasing:
Commitment to organization has diminished, work environment is
very stressful, retention is serious problem, no patience,
employee change job frequently, immediate money is first
priority, the younger generation seem to have very different life
plans
As knee jerk response, Organizations getting into bonds, variable
pay, pay for performance, mechanism to increase control almost
to obnoxious level. Reducing further psychological identification
and getting into pure transactional relationships; everything
is matrix driven no time for vision or innovation.
Talent supply is critical theme for management: Talent mix
strategy is critical success criteria
How much to buy (lateral hire – often 20-30%)
How much to grow internally (entry level hire – typically 7080%) pushing cost of development higher
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Knowledge based organizations, as for example,
Software services, ITES (BPO/ KPO) Contd.
Multi geography HR management challenges (uniform
corporate HR policies can not work across
nations)
New theme related to Customer priced
Competency emerging (competencies for which
customer is willing to pay): strict SLA (service level
agreement) deployment & delivery competencies
are flavor of the day
New theme related to Techno-behavioral
competency becoming critical (e.g., configuration
management ability, release management ability,
technology mentoring ability, Project management
ability etc.)
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For Manufacturing and Auto sectors
Competition is too severe, growth is sudden and at a never seen
before level, volume pressure, cost pressure, reducing margins
are normal events
Line Mangers (in the upper middle level of the hierarchy) moving
up in the hierarchy based on core value chain
competencies, organization is heavily dependent on these
employees; there is scarcity of supply and it takes very long to
develop these talents. Unfortunately they have severe
deficiencies in People Management Competency-cluster and
Business management Competency-cluster. Both these
competencies are too critical to function effectively on the job
(external supply from HR service and Finance service proving
to be futile)
Salary hike to attract and retain has gone high disproportionately,
making cost of Management too high in comparison to
compensation to employees in operation. Employee
satisfaction index is going for toss.
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The issues from current reality, mentioned above has
brought Competency Management, Organization
design, OD into the centre stage.
These challenges are opportunities, in near terms, for
you my colleague listeners
If you are planning to come to India to set a shop you
are going to face these Challenges and consequent
opportunities
To the extent Indian scenario matches with business
metamorphosis here in South Africa these will
emerge as ground reality here too.
Hope the insights will be of some help to you.
31
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Revisit the Objectives (contd.)
Objective:
Insights for HR-Professionals and Enterprise
owners based on macro level secondary data
and ethnographic approach
Ideas about setting up business in India specific
emerging Industries
Ideas about specific business opportunities for
AC-professionals and Management
consulting in general
32
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Thank You!
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