S M A L L C A S E S T U D I E S O N

E N T R E P R E N E U R S H I P

B O O K N O . 5

CASE STUDIES FOR THE STUDENTS OF SOCIAL

ETREPRENEURSHIP

PREPARED BY : DR. T.K. JAINHONORARY CHIEF MENTOR, AFTERSCHOOOL© : AFTERSCHOOL CAREER GUIDANCE TRUST.

NOTE : THE PURPOSE OF THIS CASE STUDY IS NOT TO SHOW THE RIGHT OR WRONG METHOD OF DOING SOMETHING. THE

CONTENTS OF THESE CASE STUDIES ARE HYPOTHETICAL AND THEIR SIMILARITIES TO SOMETHING REAL IS BY CHANCE. THE PURPOSE OF THESE CASE STUDIES IS TO PROMOTE ACADEMIC DISCUSSION AMONG PGPSE PARTICIPANTS OF AFTERSCHOOOL.

PGPSE IS THE PROGRAMME TO PROMOTE SOCIAL ENTREPRENEURSHIP THIS PROGRAMME IS AVAILABLE FREE OF

COST FOR ANY PERSON WHO WANTS TO PLAY AN IMPACT MAKING ROLE IN SOCIAL TRANSFORMATION.

A F T E R S C H O O O LC E N T R E F O R S O C I A L E N T R E P R E N E U R S H I P

S I V A K A M U V E T E R I N A R Y H O S P I T A L R O A DB I K A E R 3 3 4 0 0 1

W W W. A F T E R S C H O O O L . T K

Small Business Cases

TABLE OF CONTENTS

(READ AS PER PGPSE PROGRAMME SYLLABUS)

1.

NEW BUSINESS CHALLENGES

Nikhil always wanted to set up a business of his own. He used to prepare business plans and discuss it with his friends. While working in the USA, he realized the importance of low cost airlines. He prepared a business plan on low cost airlines. He had following mix in his plan:  

1. Don’t offer any meal or other things on airlines, to reduce cost

2. Don’t use regular airports (which charge very high amount), instead of these use low cost airports

3. Use only one type of aircrafts - so that maintenance cost is minimum

4. Hire less experienced staff to reduce operation and staffing cost - have less staff and use them interchanging and in more shifts.  Bob was a financier, who used to run his own venture capital financing firm. Nikhil (nic) met him with his proposal. Nic presented his ideas, which was liked by the financer and thus Nikhil got the finance. It was a 20 million project financed by the financer. Thus the business started. Soon Nic Airlines started. Now they used to fly in nonconventional routes. The airplanes used to take up routes unexplored so far. Soon his company became very popular. As per the plans, the first 3 years were in losses, but the company reached BEP level in the 4th year. Now the company was soon to become profitable company. 4 venture capitalists approached Nic to expand his business to international level. They asked Nic to take money from them and make it a global company. During discussion, they gave following ideas :  

1. No frill airlines of Nic should become a global airlines, and should take up those routes which are not taken up by any airlines

2. Another idea was to be like other international airlines and run them just like other airlines

3. Another idea was to go for small aircrafts and use them more frequently.   

2

In your opinion what should nic DO?

3

Which is better : organic or inorganic growth? Sudha : "In my opinion, organisations have to go for inorganic growth, sometime or the other. In the beginning, an organisation may use organic growth, but later on, the organisation has to use inorganic growth for real development. Look at Wipro, the real growth of Wipro has come from inorganic growth. Wipro has acquired so many companies in other countries. Due to this, the company has now over 53 offices in other countries. When it acquired EMPOER it was able to make a strong entry in Europe. When it acquired and Australian company, it was able to penetrate into Australian market. When it acquired a leading company from the USA, it was able to have over 30 offices in the USA and other countries. Today, more than 60% of total business of wipro come from the USA, Europe and other adjoining countries. From a vegetable oil making company to world's leading IT solutions company - is this journey possible with just organic growth? Goti: "I believe that organic growth is more important than inorganic growth. An organisation is able to retain its culture, identity, values and commitment through organic growth only. The real foundation of the organisation is only through its basic values. These basic values are promoted only through organic growth. Look at Coca cola. It was set up in 1883. Over 125 years of magistic progress is possible due to organic growth. This company, which was once selling cola through pharmacists, is now the world's most popular brand. The real success is due to its organic growth."Monika : "There are phases in the growth of every company. In the beginning, an organisation is like amoeba. It is formless, shapeless and structure less. Like amoeba, it divides into branches, opens other offices and thus the growth starts. Amoebic organisations are good in the beginning as they are creative, innovative and growing. After some time, the organisations have to acquire a concrete shape and they have to become structured organisations. They have to become bureaucratic organisation. Thus the growth of the organisation takes it to next stage. Later, the organisation looks outside for further growth. At that stage the organisation looks for inorganic growth to move out of its defined territories. Again inorganic growth will be successful only if it is synergistic."Pratibha : "I agree to what Monika has just said. Look at Wipro, its beginning was only organic growth. It used to sell vegetable oil.then it entered into unrelated businesses like software development etc. It acquired PCMM level V and other models for its people development. It acquired companies which were experts in providing softwares to retail companies, to telecom companies and thus it was able to get business from these segments. Further it developed its software design and development centre in Bangalore, which supplemented the efforts made by its subsidiaries all over the world. Wipro's CEO Ajim Premji had the capability to give its emmployees the required capability, trust and autonomy to manage the growing company. This company has always looked at customers for all its processes. All its departments take customer driven approach and that is the reason for its success. So growth will come from the focus on the processes and we have to build customer focus for development."

4

What do you think about growth process? Whose ideas are most convincing to you?

5

Jitendra and Pravesh are working in an engineering organisation - a reputed one where excellence goes hand-In-hand with every new imperative flexibility. By laying down its clear-cut policies and procedures and corporate plans. this organisation has earned the distinction of being one of the best managed companies. always striving for excellence by keeping itself abreast of the developments in the endlessly changing scenario.

During the recent review of the functioning of one of the departments headed by Pravesh , it was discovered that his department had been continuously showing declining trend in terms of meeting the targets fixed for them and the problems of high rate of turnover/absenteeism came to light. Majority of the subordinates working under Pravesh were dissatisfied with their job and were feeling frustrated and depressed over the way they were being handled by him. There was a breakdown of communication and innumerable complaints about the rude behaviour of Pravesh started pouring in, Pravesh , on the other hand, had been in this department for the last so many years and was In the habit of treating his subordinates in the traditional style. The situation started aggravating day-by day. The workers under Pravesh had to take the shelter of Unions for airing their grievances and the Management was naturally disturbed over the state of affairs and could no longer afford to be a silent spectator. Search for a suitable replacement of Pravesh was accordingly initiated and Jitendra was identified for the purpose.

Jitendra was selected for replacing Pravesh as he possessed the skills of managing different types of people under different situations. His acceptability and credibility have all along been of the highest order.

Initially, of course, this sudden change was a painful surprise for Jitendra and as it always happens any change in status quo affects people and Jitendra was no exception. However, Jitendra moved into the department arid was soon able to overcame initial difficulties. With his concerted efforts and sincerity of purpose, he was soon able to create a strong trust-bond with his subordinates. He gave them a free hand in setting time-bound goals for themselves. The subordinates were by then participating in arriving at the vital decision in regard to their production and productivity. A very cordial and harmonious atmosphere prevailed upon in this department under John. All this naturally resulted in “a blessing in disguise” both for the Management and the workers in as much as that this department paved the way in Improving the climate and culture of the organisation.

6

Questions :

(a) Identify the Issues Involved in the above case.

(b) Do you agree with the statement that ‘‘a true manager should know the art of managing his people”? Comment.

(c) “Developing an effective team having healthy Interpersonal relationships Is the need of the hour.” Please comment.

Solution : (a) In the case there is a decline in the working of the

organisation. The department had been continuously showing declining trend in terms of meeting the targets fixed for them and the problems of high rate of turnover/absenteeism came to light. Majority of the subordinates working under Pravesh were dissatisfied with their job and were feeling frustrated. Pravesh was not cordial in his treatment, rather, he was rude. He was in the habit of treating his subordinates in the traditional style. The situation started aggravating day-by day. The workers under Pravesh had to take the shelter of Unions for airing their grievances and the Management was naturally disturbed over the state of affairs. Ultimately they had to take a decision. They replaced him with Jitendra, who was participative in his style. He possessed the skills of managing different types of people under different situations. Thus he could handle the troubled situation.

(b) Yes, a true manager should know the art of managing people. Ultimately, a manager has to get the work done from people. He should handle people tactfully. He should focus on goals and also establish good human relations. He should have some characteristics, which can help him in winning confidence of people. A true manager should be a person, who can make people work for the objectives of the organisation and at the same time feel passionate for those goals. If a person is not able to handle people well, the ultimate outcome will be the case similar to Pravesh in this case, who had to be removed (due to continous complaints).

(c) Team building is central in the growth and development of an organisation Effective teams are those which focus on goals,

7

set positive work norms and try to cultivate an environment for development of a positive work culture. A good organisation is one, where people are trained to work in team and a culture for shared responsibility is developed.

Kalyani Electronics Corporation Ltd., recently diversified Its activities and started producing computers. It employed personnel at the lower level and middle level. It has received several applications for the post of Commercial Manager-Computer Division. It could not decide upon the suitability of the candidate to the position, but did find that Mr. Prakash is more qualified for the position than other candidates. The Corporation has created a new post below the cadre of General Manager i.e., Joint General Manager and decided Mr. Prakash to join the Corporation as Joint General Manager. Mr. Prakash agreed to it viewing that he will be considered for General Managers position based on his performance. Mr. Anand, the Deputy General Manager of the Corporation and one of the candidates for General Manager’s position was annoyed with the management’s practice. But, he wanted to show his performance record to the management at the next appraisal meeting. The management of the Corporation asked Mr. Sastry, General Manager of Televisions Division to be the General Manager in-charge of Computer Division for some time, until a new General Manager is appointed. Mr. Sastry wanted to switch over to Computer Division in view of the prospects, prestige and recognition of the position among the top management of the Corporation. He

8

viewed this assignment as a chance to prove his : performance. The Corporation has the system of appraisal of the superiors performance by the subordinates. The performance of the Deputy General Manager, Joint General Manager and General Manager has to be appraised by the same group of the subordinates. Mr. Prakash is a stranger to the system as well as its Modus Operandi. Mr. Sastri and Mr. Anand were competing with each other in convincing their subordinates about their performance and used all sorts of techniques for pleasing them like promising them a wage hike, transfers to the job of their Interest, promotion etc. However, these two officers functioned in collaboration with a view to pull down Mr. Prakash. They openly told their subordinates that a stranger should not occupy the ‘chair’. They created several groups among employees like pro-Anand’s group, pro-Sastry’s group, Anti-Prakash and Sastry Group, Anti-Ariand and Prakash group.

Mr. Prakash has been watching the proceedings calmly and keeping the management In touch with all these developments. However, Mr, Prakash has been quite work-conscious and top management found his performance under such a political atmosphere to be satisfactory. Prakash’s pleasing manners and way of maintaining human relations with different lewels of employees did, however, prevent an anti-Prakash wave in the company. But in view of the politicalisation, there is no strong pro-Prakash’s group either.

Management administered the performance appraisal technique and the subordinates appraised the performance of all these three managers. In the end, surprisingly, the workers assigned the following overall scores - Prakash : 560 points, Sastry: 420 points, and Anand : 260 points

CASE : 3 : The ABC Manufacturing Company is a metal working plant under the direction of a plant manager who is known as a strict disciplinarian. One day a foreman noticed Bhola, one of the workers, at the time-clock punching out two cards his own and the card of Nathu, a fellow worker. Since it was the rule of the company that each man must

9

punch out his own card, the foreman asked Bhola to accompany him to the Personnel Director, who interpreted the incident as a direct violation of a rule and gave immediate notice of discharge to both workers. The two workers came to see the Personnel Director on the following duy. Nathu claimed innocence on the ground that he had not asked for his card to be punched and did not know at the time that it was being punched. He had been offered a ride by a friend who had already punched out and who could not wait for him to go through the punch-out procedure. Nathu was worried about his wife who was ill at home and was anxious to reach home as quickly as possible. He planned to take his card to the foreman the next morning for reinstatement, a provision sometimes exercised in such cases. These circumstances were verified by Bhola. He claimed that he had punched Nathu's card the same time he punched his own, not being conscious of any wrongdoing.

The Personnel Director was inclined to believe the story of the two men but did not feel he could reverse the action taken. He recognized that these men were good workers and had good records prior to this incident. Nevertheless, they had violated a rule for which the penalty was immediate discharge. He also reminded them that it was the policy of the company to enforce the rules without exception.

A few days later the Personnel Director, the Plant Manager, and the Sales Manager sat together at lunch. The Sales Manager reported that he was faced with the necessity of notifying one of their best customers that his order must be delayed because of the liability of one department to conform to schedule. The department in question was the one from which the two workers had been discharged. Not only had it been impossible to replace these men to date, but disgruntlement over the incident had led to significant decline in the cooperation of the other workers. The Personnel Director and the Sales Manager took the position that the discharge of these two valuable men could have been avoided if there had been provision for onsidering the circumstances of the case. They pointed out that the incident was costly to the company in the possible loss of a customer, in the dissatisfaction within the employee group, and in the time and money that would be involved in recruiting and training replacements. The Plant Manager could not agree with this point of view. "We must have rules if we are to have efficiency; and the rules are no good unless we enforce them. Furthermore, if we start considering all these variations in circumstances, we will find ourselves loaded down with everybody thinking he is an exception." He admitted that the grievances were frequent but countered with the point that they could be of little consequence if the contract agreed to by the union was followed to the letter.

10

Questions

(a) Identify the core issues in the case

(b) Place yourself in the position of the Personnel Director. Which of the following courses of action would you have chosen and why ?

(i) Would you have discharged both men ?(ii) Would you have discharged Bhola only ?(iii) Would you have discharged Nathu only ?(iv) Would you have discharged neither of them ? Justify your choice of decision.(c) What policy and procedural changes would you recommend for handling such cases in future ?.solution :

this is a case of discipline. Organisations have to maintain discipline and order. They have to enforce their rules and regulations. They have to be very careful in implementing their decisions also. The decisions must be evaluated in terms of their long term consequences to the organisation. In this case, although Personnel director and plant manager are right, yet, it is equally important that considering the commitment and intention of the two workers, they should not be discharged. In the law we say that intentions are very important. In this case, both the workers are excellent, and seem to have no intention to violate the rules.

The manager who takes such decisions must discuss this matter with senior executives and other concerned executives before taking such decision. It would have been better to form a committee to discuss this matter and give the workers a chance to represent their case to the committee. They could have considered other options possible also :

1. discharge but allowing the workers to apply afresh to be considered for fresh appointment (thus loosing the seniority)

2. suspension for 1 month or so, so that a better decision could be taken after 1 month and the workers would have also received punishment

3. monetary penalty

LOSING A GOOD MAN

11

Sundar Steel Limited was a medium-sized steel company manufacfuring special steels of various types and grades. It employed 5,000 workers and 450 executives.

Under the General Manager operation, maintenance, and headed by a chief. The Chief of and under him Mukherjee Maintenance Engineer. The total was 500 workers, 25 executives, (Production), there were services groups, each Maintenance was Shukla was working as the strength of Maintenance and 50 supervisors.

Chatterjee was working in Maintenance as a worker for three years. He was efficient. He had initiative and drive. He performed his duties in a near perfect manner. He was a man of proven technical ability with utmost drive and dash. He was promoted as Supervisor. Chattejee, now a Supervisor, was one day passing through the Maintenance Shop on his routine inspection. He found a certain worker sitting idle. He pulled him up for this. The worker retaliated by abusing him with filthy words. With a grim face and utter frustration, Chatterjee reported the matter to Mukherjee. The worker who insulted Chatterjee was a "notorious character" , and no supervisor dared to confront him. Mukherjee took a serious view of the incident and served a strong warning letter to the worker. Nothing very particular about Chatterjee or from him came to the knowledge of Mukherjee. Things were moving smoothly. Chatterjee was getting along well with others But after about three years, another serious incident took place. A worker came drunk to duty, began playing cards, and using very filthy language. When Chatterjee strongly objected to this, the worker got up and slapped Chatterjee. Later, the worker went to his union - and reported that Chatterjee had assaulted him while he was performing his duties.

Chatterjee had no idea that the situation would take such a turn. He, therefore, never bothered to report the matter to his boss or collect evidence in support of his case.

The union took the case to Shukla and prevailed over him to take stern action against Chatterjee. Shukla instructed Mukherjee to demote Chatterjee to the rank of a worker. Mukherjee expressed his apprehension that in such a case Chatterjee will be of no use to the department, and.the demotion would adversely affect the morale of all sincere and efficient supervjsors. But Chatterjee was demoted.

Chatterjee continued working in the organisation with all his efficiency, competence, and ability for two months. Then he resigned stating that he had secured better employment elsewh ere. Mukherjee

12

was perturbed at this turn of events. While placing Chatterjee's resignation letter before Shukla, he expressed deep concern at this development.

Shukla called Chief of Personnel for advice on this delicate issue. The Chief of Personnel said, "l think the incident should help us to appreciate the essential qualification required for a successful supervisor. An honest and hardworking man need not necessarily prove to be an elfective supervisor. Something more is required for this as he has to get things done rather than dohimself." Mukherjee said, "l have a high opinion of Chatterjee. He proved his technical compe tence and was sincere at his work. Given some guidance on how to deal ,with the type of persons he had to work with, the sad situation could h.ave been avoided." Shukla said, "l am really sorry to lose Chatterjee, He was very honest and painstaking in his work. But I do not know how I could have helped him; I wonder how he always managed to get into trouble with workers. we know they are illiterates and some of them are tough. But a supervisor must have the ability and presence of mind to deal with such men. I have numerous supervisors, but I never had to teach anybody how to supervise his men."

Questions :

(a) Identify the problems in this case.

(b) Do you think the decision taken by shukla is in keeping with the faith, trust and creating developmental climate in the organisation ? Critically evaluate

(c) How would you help in improving rough and tough behaviour of employees ?

13

T R A N S F O R M I N G T O R E X

Rangarajan or Ranga joined Torex India office. It was a time when Torex was in difficult conditions. Once a market leader, Torex had seen the time when people used to talk about it as synonymous to photocopy. Off late there had been a number of difficulties. It was difficult for this company to convert into digital environment. The employees had a fixed mindset. They were not prepared to change with the changing time. Most of the employees were of the service of 10 to 14 years and they were not able to understand the imperatives of change. Ranga decided to introduce massive change, but he wanted to do it in people friendly style. The company was undergoing massive changes all over the world. It was like do or die situation. Ranga introduced teams of people to document the processes in the organization. Each and every process was noted down. Customers were contacted and their requirements were noted down and as per that each process was again stretched out and this process was noted down. Teams of people were now responsibel to identify the processes in the company and identify internal and external difficulties. The company introduced TQM and introduced internal accountability. Time was fixed for each process and there was accountability for these processes.  The company was soon able to experience positive changes. It was now able to compete with companies like Ricoh, Cannon, and other companies of the industry. There was also change in the company in other offices.  Ranga was not an MBA or a person from commerce background. He attended special classes to understand balance sheet. He wanted to introduce financial accountability across the company. Each executive was now responsible for four aspects: A. Revenue and expenditure generated B. Quality of changes introduced by that person C: Customer relation and new customer addition D: Overall level of motivation and innovation introduced by that person in the company and amount of learning introduced by that person.  The company soon experienced a major shift. Old employees realized that they needed training in the new systems. They demanded training and development. Ranga carried our TNA (training need assessment) and hired professional trainers to introduced company wide training and development program. The company introduced comprehensive training in quality

14

management, customer relation management, organization development etc.  Massive organizational changes were stressful for many persons. While earlier employees thought that they were permanent employees, Ranga told it very clearly that nobody is permanent and if the performance was not up to the minimum level, any person can be asked to quit. Although no person was retrenched, but the message created a new work culture.  Workers were now scared about new work systems. Ranga used to visit different places to identify new possibilities for improving the work culture. In the course of these visits, once he visited a small company located in Southern India. This company had a history of over 100 years. It was considered to be a very good company in that region and it had ZERO employee turnovers. Ranga requested the owners of this company that he wanted to spend a day in this company to understand the processes of this company. He was given permission.   Ranga returned back with mixed feelings. He liked the work culture of this company. The workers were so committed and dedicated that he wanted to create the same in his company.  Next month, there was annual planning meeting of Torex . Ranga asked each of his regional head to come up with a vision and plan document. Ranga himself prepared a vision plan for the company. He told everyone that he wanted to introduce a cohesive work culture in the company, where each employee considers others as very closely. Ranga shared his experiences also.  Members present in the meeting asked Ranga to give an action plan for that. Ranga didn’t know about that. Can you help him in preparing an action plan in steering this company further? Torex was not in red now. It was turning around, but new directions had to be given. You are requested to help Ranga in giving charismatic leadership to this company.  Ranga has some characteristics, which you must remember before recommending:

1. He is always cheerful2. He is always positive about future

15

3. When he talks with employees, he gives them detailed description of the future that he wants and he shares that future vividly

4. He shows very high level of confidence on his subordinates ability in achieving objectives

5. His dreams and ideas look impossible - but he has always proved them true.  You are also advised to give comments on Ranga's personality and leadership. Do you suggest any change?

16

M A R K E T I N G H E R B A L P R O D U C T S

Pawan completed his PGPSE and wanted to start a business enterprise. He had different ideas in his mind. He came across an old Indian text book about Indian herbs and their medicinal properties. He developed ideas about using those herbs in developing new products. His idea was to introduce a new product, which would be good for health. He was thinking about giving it the shape of a brand. He knew that making a branded product and selling that as a popular brand is not an easy task. He studies many case studies on similar products and evolved different ideas about how he should produce. While going through these ideas, he had 4 options, which were based on 4 studies:  

1. Launch the product like a commodity - just like coca cola. Coca cola was also launched as a product sold by druggists initially. It took a long time for coca cola to reach to masses. He was also reminded of Dalda. When Dalda was launched in India - people resisted it. Nobody wanted to use it - and those who used it, didn’t tell others that they were using it. HLL tried to give many advertisements to show the good things of Dalda - but it all failed. Later on HLL changed its advertisement strategy, and it introduced one slogan which worked, the slogan was just emotional tough: the slogan emphasized that Mother can’t be wrong - and mother gives the best to the child. This slogan changed the future of Dalda and now Dalda is a big brand. Pawan was thinking of giving his product a tinkering similar to Coca cola or a Dalda.

2. The second option was to launch it like a medicine. Medicines can’t be advertised directly. They have to be marketed to the doctors directly - who will recommend it the patients. Here the option was to make it not strictly like a medicine. Here his idea was to make it similar to Complain. Complain was initially introduced as a food for soldiers and patients. When soldiers were fighting in 2nd world war, Complain was given to them to help them to fight. Later complain was introduced for elderly persons. Later it was introduced for children and now it is for growing children. Its advertisement also proves it: "I am a complain girl". Pawan was also thinking to make his product similar to the complain strategy.

3. The third strategy was to introduce this product as a generic product. Here Pawan was reminded of great brand aura of TAJ. When Taj group of hotels introduced an efficient, suave, decent,

17

sophisticated lady as brand ambassador for Taj, it became very popular. Pawan was also thinking to make a good personality for his product and introduce it as a generic brand.

4. Pawan had 4th idea also. The forth idea was to create a new marketing channel. During his PGPSE program, he had made presentations on terms like viral marketing, network marketing etc. Viral marketing is word of mouth marketing. Network marketing also relies on networking on people. Pawan had an idea about introducing the product using similar strategy. He had seen success of AMWAY succeeding in network marketing. Similarly, he had seen his own institution AFTERSCHOOOL using viral marketing. Now he was not sure about which strategy to use. He was in confusion and wanted your help in evolving his overall marketing strategy. He was ready with the product - which was tested out in laboratories. The question was how to position this product in the market? How to introduce this product in the market? Pawan knew that great products have failed in markets - he didn’t want failures - he wanted a sure success and for this the only way was brainstorm and find the best option.

18

Chetan Bhai had two objectives for life : 1. earn good bread and butter 2. promote positive thinking in the societyHe was now well established - as he was in a good service. He had discontent that he was not doing much for the second objective. He decided to start something new for the second objective. Chetan decided to take help of his friend, who was a professor in a local business school. His friend organised a brain-storming session for identifying ideas. There were many ideas that emerged - Chetan decided to adopt the idea which was to focus on bringing good ideas to people.  Chetan started from his home. He started discussions on burning issues. He would take up those issues, which would really affect society. Chetan prepared a leaflet - which read the following message : "It is the ideas that shape the society. People have power. If we can raise consciousness among people, we can change society. I invite intellectuals to discuss on current issues, so that our ideas can become powerful ideas in society. I invite you to discuss on the following matter…..". Chetan used to organise discussions every Sunday in evening at 5 pm. He would invite some media representatives also. He also used to invite leaders from social, religious, and political instituitons. He also used to invite experts and authorities on the matter to share their ideas. All his discussions used to be the occasions for heated discussions. He would pick up the matters on which people took keen interest. He started with matters like child labour, education as fundamental rights, and transparancy in election process etc. His efforts brought some good results. He had now a group of 30 persons who used to regularly participate in the discussions organised by him. He used to prepare detailed press reports based on the discussion, and also publish short reports based on the discussions. He used to circulate these publications widely among media, libraries, clubs, associations.  Chetan used to invite prominent speakers, groups and voluntary organisations all over India to come and share their ideas on important matters. His initiatives were liked by many persons.  After 6 months, Chetan was about to review his progress. He carried out a SWOT of his work as under : Strengths :

19

1. He was able to start his work with no investment and he was successfully doing this without any financial hurdles.

2. He was now a well known person in the city and his work was very much appreciated by every person.

3. His work resulted in change in level of awareness among people. Whichever issues he took up, were now hot matters in the city.

4. He became a part of many public movements. Right to information act was enacted by the government under pressure of public movement. Chetan was also a part of this movement.

5. Chetan was now sure that he could influence the society. He was now sure that individuals can become powerful when they join together.

6. It was a very open, flexible, and dynamic organisation that he had created.  WEAKNESSES : 1. it was a very small organisation. They had very limited financial power. Chetan was using his small savings in this organisation. He was not sure about how to make this organisation financially viable.

2. His organisation was known within the city, but Chetan wanted to work globally - but with such structure, it was impossible to become a global organisation.

3. His organisation had no concrete plans - except to organise discussions and discussions.

4. Raising public opinion was good, but Chetan was able to focus only on a small group - which consisted of intellectuals, and some public representatives. Truly it was not a public opinion raising organisation. OPPORTUNITIES :

1. Chetan could sense huge opportunities for someone to work in social sector. Now lots of funding agencies were there willing to support iniatives like that of Chetan. Chetan was sure that if he could organise it well, he would get lot of funding. It would be easier for Chetan to take off.

2. He had established his credibility as a social worker in the field of ideas. Now he could use his capability in expanding his work. He was sure that he could now start some public campaigns also. He had earlier become an important part in some public campaigns. He knew that his efforts can influence policy makers - if he could involve public in his initiatives.

3. There was a lot of scope for his work in sectors like government budgeting, government policies, social sector supports etc. He knew that this was the sector, which would become very important sector with development in the country.

20

 THREATS :

1. Looking at the success of Chetan, there were now many critics of Chetan also. His own colleagues, and well wishers had now become his critics. Many people made his mockery - as just discussion organisers.

2. He knew that his organisation had to now transit to next stage of development. He didn’t know how to proceed, but he was sure that he had overstretched the present form of organisation. His family was also feeling the pinch. He used to spend a great deal of resources in these activities - while he could easily convert it now into a professional organisation. He was now sure about future and he didn’t have a vision about his organisation and its structure.  Assume yourself to be in the position of Chetan and prepare your action plan at this junction.

21

H R P A T I N F O C O M H I G H W A Y S

Rohit is now 45. However, he is planning to retire from his company. He is the CEO of Infocom Highways. He submits his resignation to his board of directors and gives intimation of this to his juniors. He is now planning to join a business school, in which one of his friends is a faculty member. It all happened when he and his family visited his friend. He was really fascinated by the cool and stress free job of his friend. More than that he was impressed by the academic contribution of his friend. He wanted to lead a similar life. He was thinking after all this work, he doesn’t have any academic contribution. He wanted to write books, share his corporate experience with students and engage in learning exercises. There was nothing to learn in his usual role that he had been performing for last 10 years. He wanted to learn and grow. When his friend offered him to join his institution as a faculty member, he immediately agreed.

Here comes the next problem. The board of director is adamant that he should continue. The wants him to select and groom the next candidate for the post of CEO. The board argues that the company that he has shaped for years should not be allowed to be ruined by someone experienced and someone having no idea of this comopany’s values.

The board infact is surprised at his decision to resign abruptly – without giving the new successor to the company.

Question : what should be the strategy of Rohit now? How should he plan and design his future course of action.

22

R O L E O F H R I N A N O R G A N I S A T I O N

Ravi has come to participate International Conference of CEOs. Ravi being marketing executives, is going to present his paper on marketing challenges for the corporate world. During informal discussion, Ravi has a talk with Mohan, who is HR head of a company. Their conversation is reproduced here :

Ravi :”Please don’t mind, but HR department has no role to play in today’s competitive world.”Mohan : “You are mistaken, most of the companies are having HR problems and that is the reason for slowdown. We need HR department, just like we need other departments like marketing, production etc.”

Ravi : “You cant compare HR to marketing. Marketing is ubiquitous and it is the bread earner of every organization.”

Mohan : “you may go and talk to any executive, he would tell you that HR is the main issue. Every organization has a team of persons in marketing, but there is hardly any person in HR and so they face problems.”

Ravi : “Let us go and talk to executives, you will find that it is the marketing, which is the most important. HR really has no role to play. HR executives earn for doing nothing. They don’t have any targets to achieve.”

Mohan : “OK, let us go and have a sample survey.”

Both Ravi and Mohan go to interview executives. Ravi asks executives about the most important problem their company is facing: 1st executive : “The most important problem that our company is facing is high employee turnover. Large attrition rate among executives creates all the problems. “2nd executive : “the most problem that we are facing is strike by union. Poor industrial relations are creating all types of problems in our production processes.”

3rd executive : “our most important problem is lack of motivation among employees. If our employees work with motivation, our organization can achieve miracles.”

23

4th executive : “ our most important challenge is to intall an effective incentive plan for our workers, so that they continue to be motivated in this time of recession.”

As Ravi was interviewing executives, he was realizing that HR is equally important. Organizations consist of people and therefore managing people and building their capabilities for organizational excellence is certainly an important task. He realized that HR is as important as any other function.

Question:

Undertake research on organizations you know and try to identify the role of HR department in that organization.

I N T E R N A T I O N A L H R A T S O F T E L

Softel has undergone massive changes in the last 15 years. It was the company once managed by a community and having all its employees from one region only. However, now this company has 51 international offices and over 50% of its employees are from other countries. As the composition of employees is changing, the company is adoping changes in its HR policies. In the last 5 years, the company has taken over 5 companies and has thus acquired 40 offices. This company has in the process absorbed 5000 employees of these companies. Now this company has total strength of 12000 employees. The challenges now are to introduce a global work culture. In order to bring a global orientation and to develop a global work culture, the company has now installed cross cultural training as essential training for every new recruit. The company now has a very comprehensive training programme. Each new recruit undergoes comprehensive training and learns about different cultural practices. In the global training academy of this organization, new recruits join and undertake training. Every new recruit undertakes 6 months comprehensive

24

training programme. In the training programme, employees from different parts of the world interact and learn from each others. They are thus able to develop a global vision.

VARUN LOGISTICS Varun Logistics is into transportation of small parcels and packets. The challenge is to minimize the cost of transportation and ensuring that there are no lost goods. They try to prepare a transportationion schedule to facilitate faster transportation. This firm is situated in UP Border in Delhi. UP Border is the main transportation hub. Trucks come from different parts of the country and they are unloaded there. The firm then moves the packets in the trucks of the destination. Suppose one truck comes from Bangalore containing a packet for Chandigarh, then the packets will be loaded in the truck that has come from Chandigarh, so that the truck from Chandigarh would get something to take in its return journey. The truck from Chandigarh might bring something for Bangalore, those items will be loaded in the truck from Bangalore. The market is daily fluctuating. The rates of trucks are determined on the basis of demand and supply. If the truckers in South are in strike, the rates for trucks to south will shoot up. The firm gets a fixed rate of commission per packet (which is based on weight and length to be covered). The firm has to find the best possible sources for transportation. Generally it hires trucks in open market, but there are possibilities of pilferage during journey. Although the firm doesn’t suffer any loss (as all the goods are 100% insured), but it mars the goodwill of the firm. You have to help the firm in its restructing plans regarding transportation system. The firm is having following options :

1. have its own trucks. One truck will cost it Rs. 10 lakhs. Rate of interest will be 18% per annum. One truck will operate 20 days in a month and will earn Rs. 5000 per day when it is moving. It will also require Rs. 50000 per annum of maintenance expenditure.

2. Contract with good companies – where there will be no possibility for pilferage. In that case the firm will have to guarantee minimum 200 truck loads in a year. This is a very small figure considering the business of this firm. However, in this case the transportation costs of these companies are 1.5 times those of the prevailing market rates (available in open market). If the firm goes for this option, the firm will also have to install an automated system, as the other firms will expect a very quick response from this company. This will cost another 2 to 4 lakhs.

3. The firm can also go for having a system of performance based reward system for the drivers of the trucks. If the drivers and staff ensure safety of material, the firm can give

25

them reward. Thus it can ensure safety of the goods and pilferage would be stopped. In this case it will have to spend about Rs. 2000 per truck hire, which will increase its expenses by 20% (thus reduing its margings by 20%).

This firm is making lot of money. As the firm has no fixed investments. Except an office, the firm has no fixed investment now. Every day the firm gets about 100 to 150 tonnes of goods to transship. It keeps the goods in a rented godown and tries to arrange trucks and loads the goods in those trucks and takes away its profit in the process. It is able to earn about Rs. 5 per tonne of net profit (after deducting all the expenditure). The firm can easily make the turnover 10 times, as there is great business scope. Give your suggestions.

Rishi was discussing with Ravi about business possibilities. Ravi told Rishi that he was hiring stadium for 3 days, while he would actually need it for 1 day only. The rent of the stadium would be Rs. 50000 per day. The stadium had to be hired for 3 days, as he was not yet sure about the exact date, and if he would delay, the stadium would be booked by someone else during that time. Ravi immediately had a business plan in his mind. He thought of organizing some fair one one of the days in this stadium. He asked Ravi for providing the stadium to him for one day and promised to share revenues (if any with him). Ravi agreed. The stadium was booked from 10 to 13 October. It is the time near Diwali. Most people prefer to do shopping in this time. Rishi could sense for this time as the golden time for doing a trade fair. He immediately preparped an outline of one day trade fair. He listed down all the steps that would be required in the process. He searched the internet for important dealers in Delhi, Jaipur, Ahmedad, Rajkot, Chandigarh and other places, who might be interested in participating in the fair. The one day fair would be an opportunity for them to demonstrate their products in Bikaner. He mailed them letters to know about their response. He had kept different rates for different shops. The front shops were being offered for Rs. 20000, but the shops at the last were given in only Rs. 500. He wrote emails with design of the fair, with list of all the media partners and other partners, who were likely to be involved. In this process, he had to also move out to see other fairs going on and approach the firms displaying their products in those fairs.

In all he approached 3000 firms through emails and letters. He also approached 20 media companies, and event marketing companies for partnering with him in creating publicity of this event. One month before the the event, he had prepared for daily news. Everyday he would give some or other news regarding the event in the newspaper.

26

He also starting organisisgn small competitions regarding the forthcoming one day trade fair through newspaper.

Meanwhile, Ravi also finalized his dates, Rish was able to get the stadium for one day and when the date was fixed, Rishi could collect advance amount from all the participating companies. In all 120 firms agreed to participate in the trade fair. Rishi also approached the local media persons for extensive media coverage. Rishi purposefully contacted those firms, which didn’t have their presence in Bikaner, so that people from Bikaner have some attraction in comeing over to the fair. He purposefully contacted innovative handicraft workers, padmshree awardees (for their art and craft) etc. and offered some of them free entry. The purpose was to create excitement among people of the city regarding the event. He created a special cell in the last pandal of the fair, where he had asked the Padmashree awardees to display their art. This was the opportunity for the city to see exclusive art and craft of the greatest persons of this time.

Rishi also contacted some firms from the neighbouring countries and asked them to display their products. This also created excitement amojnt the people.

Finally the day came. It was a big crown. There was massive response. All the efforts of Rishi brought fruits to him. There was a huge turnout of the crowd. People wanted the fair to be extended. It waas not possible for Rishi to extend the fair. However, in the process, he was able to Give Rs. 150000 as share of profit to his friend Ravi. Ravi was now thankful to Rishi, as all his expenses were met out.

You are required to critically evaluate the strategy of Rishi. Swati (PGPSE from AFTERSCHOOOL) identified her core competencies as being innovative, creative, and futuristic. She had undertaken 4 years work experience as entrepreneurial trainee with an advertising firm. Then she started her firm to provide business consultancy. Her business is a new type of business. It is to provide complete business solutions. Here she undertakes complete business planning for small and medium enterprises. Under this she prepares following for the business enterprises :

1. logo and business communication planning2. campaign and marketing planning3. business communication designing including website and

overall business presentation.

27

She has designed her business in such a way that it requires more of imagination, creativity and desiginign skills. She has hired 2 employees to assist her in technical work. These employees undertake desiginign work on Corel and Photoshop. They also use webhosting solutions for designing websites for the clients. Swati relies on outside firms for all her activities. She has a small office at prime location in the city. In terms of infrastructure, she has 2 computers, 1 laptop and 1 deskjet printer. She has got her office designed from her elder sister, who is also an interior designer. The office gives an auro of a great office.

Swati spends most of her time in dealing with her clients and in understanding their problems. Once she understands their business model, she is able to prepare suitable designs, which are then prepared by her two assistants.

In terms of cost, she doesn’t have much worries. Her running expenditure is not much. The office is in a premises, which belongs to her brother and therefore she doesn’t have to pay any rent. She doesn’t have to worry about any fixed expenditure – other than salary of her two assistant (which is also partly variable).

She has so far contacted with 40 parties and has been able to secure 3 business contracts. She occasionally gets small business contracts also,which are for small amount. The three big contracts that she has got, will fetch her Rs. 9 lakhs (Rs. 3 lakhs per annum per client). She will also be getting some other revenues from these contracts. If she is able to publish their advertisements, she would get commission of 15% from the media company, out of which she would be able to retail 3% with herself.

Thus she expects to have earnings of Rs. 10 lakh in the first year of her business.

She has now 3 options for herself : 1. enter into business for large clients also2. expand business in other cities3. expand her business by hiring more employees 4. spare time for helping children from poor family in their

education (which is her dream).

She is in confusion about how to align her time well and undertake all these activities. What do you suggest to her.

28

R E C R U I T M E N T S Y S T E M O F M R . D A G A

D.L. Daga has established a nation wide company today. With over 50 branches spread out across the country, his company is a pride place to work for. Mr. Daga has delegated most of his work to his team that he has developed over time. He doesn’t delegate two activities – that he does on his own. One is recruitment of employee and the other is performance review of senior executives. He spends most of time recruiting people. It takes him at least one hour to interview the prospective candidates. It is not like other recruitment tests. Mr. Daga would take thorough interview of the candidates and inquire about every aspect. He would inquire about every matter. He would involve his local team in recruitment process. He would observe new recruits for 15 days before putting them in charge of the work. He would take feedback from every employee about new recruits.

Comment on his style for recruitment.

G O O D G O V E R N A N C E P R O J E C T

Rajasthan Government has set up HCM Rajasthan Institute of Public Administration for imparting training to its executives. This institute is located in Jaipur with branches in Bikaner and Udaipur. Over a

29

period of time, the training programmes of this institution has become rituals. Executives treat these as mere formality. They come and attend the programme without any keen interest or motivation. There are no tests after the training programmes. Huge sums of money is being spent in these training programmes, but for no use.

Recently the Government has launched Good Governance project. Under this programme, a comprehensive training programme of 3 days will be organized. The programme will have 3 components :

1. technical components2. behavioural science components – like motivation,

leadership etc.3. general components : like importance of good governance

etc.

this programme has been designed after considering the training requirements for different levels. There are different contents for different levels. Powerpoint slides have been prepared for each lecture. Activities, and projects have been embedded in the programme. At least 10% components of the programme is now interactive components, where trainees can interact with the trainer or other trainees and learn by interaction.

Training material has been developed and distributed to the trainees in advance. The trainers have also been identified through rigourous selection process. These trainers have also been given thorough training so that they can impart training as per the requirements of the project. Training schedule is strictly adhered to . At the end of the trainng programme, feedback of the participants is obtained, which is used in further redesiginign the training programme. All the participants are given comfortable stay, and there is proper hospitality to the participants. All the participants are expected to attend traininig sessions from 10 am to 6 pm, with some breaks for tea, lunch.

The training programme is now very comprehensive and well received. All the training centres are now well equipped with computers, LCD projectors, and other required equipments like mike etc. In one session 40 to 60 candidates participate in the training sessions.

There is no examination or test of training programme. There is a belief that there is no need of such test for executives, who have already been working for considerable time.

30

Although the government is spending huge money on this project with a belief that it will improve governance in Rajasthan, there is still a doubt that the trainees may take it as a formality. They may still attend these programmes without any motivation to learn and change.

Critically evaluate the training programme and do you see any need of test / post training evaluation – if yes, how should it be carried out.

BUDGET DISCUSSION It is the scene of the board meeting of a company. The meeting is on discussion about annual budget for the company. The board is discussing important matters relating to the next financial year. They have already seen reports prepared by various committee. Some of the members of the board are already members of different committee and therefore they have better understanding of the issues.

A: in my opinion, our budget allocation is not proper. We are not able to allocate budget for development for employees. We are spending only 2% of our budget on HRD. We are spending very little amount on training and development.Even less amount is being spent on employee incentives and promotion schemes. We are not spending any money for giving innovation awards or creativity awards. These awards are necessary to foster creativity and positive thinking among employees. On scrutiny of the accounts, I have found that out of our total expenditure, 90% expenditure are only on three issues : 1.

31

interest payments. 2. manufacturing expenditure like raw material labour etc. 3. payment of our statutory liabilities etc.

Out of the remaining amount, we are covering up all other things.

B : You can see it, we cant reduce our statutory expenditure. We cant reduce our interest expenditure. Thus we are having very less freedom. We are not in a position to spend more on other heads. Our margins are shrinking. We have to reduce our costs further to compete in this recessionary market.

C: this is not what I expect from our company. We should not compromise on employee development. Our failure to innovate can be attributed to our lack of motivating work culture. We are ourselves responsible for this culture. Our incentive system doesnt reward outstanding workers. We have to redesign our incentive and reward system to reward outstanding performance. We are failure today because we are carrying sloths, who are not interested in working any more. Employees are lethargic, lackadaisical and lacking in any motivation. Most of the mployees look at recession as a threat and don’t see it as an opportunity.

D: you are right. We need to reorient our approach. We have to adopt aggressive marketing, reposition our product and rejuvenate our brands. Today our brands give image of an old company. Look at Videocon, they are so aggressively reinventing their brand and repositioning themselves. We also need to take lessons from them. Let us spend money for building brand and let us create our image in positive sense. We have to prepare for the brighter future.

B: all this require money. How do we bring money? You all have plans for expenditure, but none of you have plans for raising income. Why don’t you bring some ideas to raise our sales.

A : all begins with motivated employees. We have to ensure that each of our employees is motivated, innovative and creative and is able to use his fullest potential. For this we need to increase our funds for employee motivation and training programmes. We have to again redesign our performance appraisal and reward system to ensure that our outstanding employees are rewarded and recognized. It is all a question of frame of mind. We have to rebuild the winner in the mind of each employee to regain our lost status.

C: the biggest challenge is how to transfer funds from typical manufacturing activities to value addition activities. Let us undertake exercise to see how we are adding value to our products and services.

32

Let us look at our pricing process. I believe that we are undercharging. We are not having proper costing system. We are not able to take many factors in our costs and so we are not able to charge proper pricing. We have to have some allocations for important matters, which we have ignored till date.

A: let us reiterate that people are most important assets of the organization and they need budget more than what we are allocating. We should look at our budget from human perspective. Let us rehumanise our budget. Let us make HRD our top priority and then we shall be able to transform the organization.

Question: whose arguments appealed to you most and why? In such a condition,what should be the outcome of this board meeting?

33

HRM AT ALSTOM

INTRODUCTION TO ALSTOM:

ALSTOM is a French multinational corporation. Alstom is a global leader in equipment

and services for power generation and rail transport. It sets the benchmark for innovative

and environmental friendly technologies. Alstom holds the road for the fastest train and

the highest capacity automated metro in the world, and provides turnkey integrated power

plant solutions and associated services for a wide variety of energy sources, including

hydro, gas and coal.

Alstom was born with its first factory in Belfort with the merger of Societe Alsacienne de

Constructions Mecaniques and Thomson Houston in 1928.

Presently, Alstom has 70 Service Centers, 54 Manufacturing Centers and 14 R&D Labs

across the world. It has local organizations in 63 countries.

Major equipments in 25% of the worldwide installed power generation capacity are

supplied by ALSTOM.

HISTORY OF ALSTOM:

34

Alstom is a Group with a long, rich history, dating back officially to 1928 but with even

more ancient roots in certain countries.

With a strategy founded upon innovation and a continuous push towards advances in

technology, as well as a strong spirit of ‘team’, discover below the historic milestones

and developments which have contributed to Alstom becoming a worldwide leader which

is ‘shaping the future’ and working towards the long term sustainability of the planet in

both its areas of activity: transport and power.

The history of ALSTOM is above of an industrial and technological adventure which has

continually carried the group towards excellence. It is also the history of successive

acquisitions of some of the world’s most reputable and powerful companies- which have

made today’s ALSTOM a global leader in energy production and rail transport, turning it

into a worldwide Group which is truly shaping the future.

1928: ALS-THOM is born:

Birth ‘ASLTHOM’ from merger of Thomson- Houston and Societe Alsacienae de

Constructions Mecaniques (SACM), with its first factory in Belfort. Eastern France. This

is the official birth date of a group, which has of course, even more ancient roots, not

only in France but also in dozens of countries around the world.

1932: Transport Grow:

ALSTHOM acquires Construction Electriques de France, based in Tarbes, a

manufacturer of electric locomotives as well as electrical and hydraulic equipment.

1955: World Record:

The ALSTHOM L CC locomotive beats the world speed record at 331 km/h.

35

1956: First Nuclear Steam Turbine:

ALSTHOM equips the Chinon Nuclear Power Plant in France with the first nuclear

steam turbine (82 MW).

1969: CGE takes the lead:

Compagnae Generale d’ Electricite (CGE) becomes the majority shareholder of

ALSTHOM.

1976: Chantiers de I’ Atlantique Shipyards come on board:

The group merges with Chantiers de I’ Atlantique to become ALSTHOM Atlantique,

bringing ship building into ALSTHOM’s portfolio.

1978: The TGV’s Arrives:

The first TGV is delivered to SNCF. The TGV goes onto break world rail speed records

in 1981 (380 km/h) and 1990 (515.3 km/h), as well as achieving the world endurance

record for high speed train line in 2001, travelling from Calais to Marseille (1067.2 km)

in 3 hours and 29 minutes.

(TGV TM is an SNCF trademark)

1986: Largest Gas Turbine:

The ALSTHOM Belfort site receives an order from EDF for the largest gas turbine in the

world at that time (212 MW).

1989: A European Giant:

GEC ALSTHOM is formed from the merger of the power and transport activities of

compagnie Generale d’ Electricite (CGE- which will become ‘Alcatel Alsthan in 1991)

36

and UK’s General Electric Company (GEC). The new group can benefit from a much

largest worldwide base.

1994: LHB; a new track:

GEC ALSTHOM acquires 51% of the shares of Salzgitter based LHB (Linke-Hofmann-

Busch), the German railing equipment company. LHB’s remaining shares are acquired in

1997.

1999: ABB ALSTOM Power:

ALSTOM and ABB merge their energy businesses in a 50-50 joint company known as

ABB ALSTOM Power. In a parallel move, ALSTOM sells its heavy duty gas turbine

business to General Electric of the US. The following year. ALSTOM acquires ABB’s

share in ABB ALSTOM Power.

2000: High Speed Advance through the Alps:

ALSTOM acquires a 51% stake in Fiat Ferroviaria, the Italian Rail manufacturer and

world leader in tilting train technology.

2003: Delivery of Queen Marry 2:

ALSTOM delivers the world’s largest Cruise liner, the Queen Marry 2 to Cunard.

2004: French State Shareholding:

ALSTOM sells its Transmission and distribution activities to Areva.

2005: Power Conversion becomes Converteam:

37

ALSTOM sells its Power conversion sector to Barclays Private Equity. The new

company is named “Converteam”.

2007: 574.8 Km/h:

At 13:13 CET, on 3 April, the V150 trainset reaches 574.8 km/h on Francce’s new East

European high speed line, setting a new world rail speed record and exceeding the

previous one set in 1990 by 59.5 km/h.

2008: The New AGV:

On 5 February, ALSTOM unveils the AGV, its latest very high speed train, capable of

reaching a commercial speed of 360km/h.

38

VISION AND VALUES:

VISION:

We want to be the reference group in high-tech solution for Energy & Transport, shaping

a sustainable future for the planet.

VALUES:

Three essential values have been defined by the Group’s Executive

Committee in their BUSINESS PLAN: trust, team spirit and sense of

action.

39

Trust: Alstom, with its two activities, three Sectors, numerous management

structures, units, production sites and countries is, by definition, a complex

company. Mutual trust between colleagues and their management is

essential for the proper conduct of the business and effective management

of projects.

Team: Alstom’s business is based on delivering projects which require

collective discipline and efforts to execute them successfully as well as

networking to ensure that the Group takes full advantage of all available

competencies. This team spirit, supported by the desire to develop each

employee, extends to collaboration with partners and customers.

Action: Alstom commits to deliver products and services to its customers

which meet their expectations in terms of price, quality and delivery

Business Plan

Financial Resources

Human Resources

Technical Resources

TRUST TEAM ACTION

Other Resources

40

schedules. To meet these commitments to customers, a sense of action is a

priority for all employees throughout the Group.

COMPANY PROFILE:

Alstom is a global leader in power generation and rail infrastructure, setting

the benchmark for innovative and environmentally conscious

technologies. The Group is the only multi specialist constructor in the

railway sector covering everything from rolling stock and maintenance to

signaling and infrastructures. Alstom provides turnkey integrated power

41

plant solutions and associated services for a wide variety of energy sources,

including gas, coal, hydro, nuclear and wind.

MAIN ACTIVITIES

POWER GENERATION RAIL TRANSPORT

Products and Services Turnkey Solutions Range of Rolling Stock Infrastructure & Services

SECTORS IN ALSTOM:

Alstom Power designs, manufactures, supplies and services state-of-the-art products and systems for the power generation sector and industrial markets.

Alstom Transport develops and markets the most complete range of systems, equipment and service in the railway market.

Alstom Power offers the broadest range of products and services in the industry, ensuring a variety that allows the Group to offer integrated solutions

Alstom Power covers all energy sources and offers the most advanced complete solutions available for power generation.

Alstom covers the entire rail transport market: high and very high speed, light rail transit, metro, suburban and regional

Alstom provides cutting edge information and infrastructure solutions, bolstered by a service offering.

42

ALSTOM’s Power Sectors offer the broadest scope of power generation systems,

equipment and services in the industry. ALSTOM’s Transport Sector offers leading-edge

technologies, products and services.

1. POWER SYSTEM:

The company designs, manufactures and supplies state-of-the-art products and

systems to the power generation - for gas, coal, and hydro power plants - and

industrial markets. Our objective is to build the most efficient and cleanest integrated

power solutions for our customers.

WORLD LEADER IN POWER GENERATION

NO. 1 in hydro turbines and generators

NO. 1 in the number of installed boilers worldwide

NO. 1 in installed turbine and generator for nuclear plants

NO. 1 in steam turbine retrofit and integrated retrofit projects

NO. 1 in environmental control systems

2. POWER SERVICES:

Alstom Power Service provides a complete range of power generation services, support

and equipment, worldwide. It promotes service to customers in all geographic markets. It is

committed to meeting its customer's requirements and needs by fast response and innovative

solutions, highest quality and competitive offer and highly qualified and motivated personnel.

3. TRANSPORT:

A promoter of sustainable mobility, Alstom Transport develops and

markets the most complete range of systems, equipment and service in

43

the railway market. With a market share of 18% and sales of 5.3 billion

Euros, the company is no. 1 in the high and very high-speed train sector.

NO. 1... in very high speed trains and high speed trains

NO. 2... in metros and tramways, suburban and regional trains,

signaling, infrastructure equipment and all associated services

ALSTOM'S ETHICAL COMMITMENTS:

The Alstom Code of Ethics, which applies to every Group employee, was

updated in early 2007 and issued in 11 languages to all personnel

worldwide.

It provides official guidelines on key principles and commitments that must

by met by individual employees and by the Company as a whole every day.

The Code of Ethics highlights essential rules and unacceptable practices

with regard to antitrust practices, commissions, corruption, and internal

control.

It stresses the need for transparency, integrity, loyalty and respect for the

laws and regulations of countries and cultures in which the Company

operates, as well as fair and honest behaviour in relations with customers,

suppliers, competitors, shareholders, employees, governments, regulatory

bodies and the public.

Addressing issues as diverse as the protection of Group assets,

confidentiality, conflict of interest, insider trading, relations with third

parties, and contributions to political parties and charities, the Code

strongly underlines the need for environmental protection measures.

44

It provides for an “alert” procedure which allows any employee to report violations of a law or regulation.

ALSTOM IN INDIA:

Alstom has been contributing to the development of Indian rail and electric

power infrastructure since 1910, playing a full part in the country’s

economic history. It is present in over 12 locations and having 4

manufacturing centers in India. In India, it works in two major sectors:

Power and Transport.

Alstom Projects India Ltd., Noida, especially deals in Boilers, one of the

important power systems of ALSTOM.

The Group employs over 3,000 people in the country, and continues to

expand by leveraging its solid expertise in technology. Alstom has been

associated with India’s progress for over a century. With a strong focus and

commitment dovetailed with a passion for excellence, Alstom looks forward

to contributing to India’s future growth.

Alstom in India has full capabilities in engineering, manufacturing, project

management and supply of power generation equipment. With strong

engineering base and increasing presence in India, Alstom is proud of its

contribution to the expansion of the Indian power sector.

Alstom also has a significance presence on transport sector in India

providing railway equipment and technology solutions. With India moving

towards urban and rapid transport systems, Alstom is well positioned to help

India realize this potential.

HUMAN RESOURCES IN ALSTOM:

45

In a diverse and international Group such as ALSTOM, a consistent

approach to people management ultimately makes it more efficient and

allows the best development of their human resources.

The people management practices are based upon the behaviors that are expected across

the Group in the leadership and management of its people. To this end the ALSTOM HR

team has undertaken to support the ALSTOM Leadership Behaviors below:

Care for People

Continuously Manage and Develop their People

Favor Teamwork and Accountability

Communicate and be Transparent

D E PA R T M E N T S

RECRUITMENT AND SELECTION PROCESS:

In the fast changing environment, globalization, competition, increased opportunities and

career orientation and many other factors have made good systems and process in HRM

mandatory. Once the required number and kind of human resources are determined the

management has to find the places where the required numbers of human towards the

organization before selecting suitable candidates for jobs.

HRDepartme

nts

Administration

Recruitment

& Selection

Training&

Development

Personnel

46

“The art of choosing men is not nearly so difficult as the art of enabling

those one has chosen to attain their full worth”.

Recruitment is the process by which organizations locate and attract

individuals to fill job vacancies. Most organizations have a continuing need

to recruit new employees to replace those who leave or are promoted in

order to acquire new skills and promote organizational growth.

Recruitment follows HR planning and goes hand in hand with selection

process by which organizations evaluate the suitability of candidates. With

successful recruiting to create a sizeable pool of candidates, even the most

accurate selection system is of little use.

Recruiting begins when a vacancy occurs and the recruiter receives

authorization to fill it. The next step is careful examination of the job and

enumeration of skills, abilities and experience needed to perform the job

successfully. Other steps are following:

Creating an applicant pool using internal or external methods

Evaluate candidates via selection

Convince the candidate

And finally make an offer

Alstom Project India Limited is a continuous process company with complex

technology. To operate this company, ALSTOM needs highly skilled

personnel, competent managers and administrators. The first step in

‘placing the right man in the right job at the right time’ is determining the

nature of the job to be performed.

In order to do the HR manager must consult the concerned line manager

and find out the specific nature of the job. Once the job profile has been

made, the characteristics of the candidate to fill in the job should be

47

determined. The next step is to decide the source from which we can

procure the right people.

ALSTOM is committed to a system of selection that ensures induction of the

best and most competent personnel to take challenging assignments in the

company. The selection system seeks to emphasize evaluation of individual

capabilities in terms of their potential for fulfillment of company’s objectives.

Scope: To define the process and flow of activities while recruiting, selecting

and appointing personnel on the permanent rolls of an organization.

ACTIVITY FLOW:

The organization philosophy should be kept in mind while formulating the

recruitment procedure.

The HR department would set the recruitment norms for the organization.

However, the onus of effective implementation and compliance with the

process rests with the heads of the respective functions and departments

who are involved in the recruitment and selection process.

The process is aimed at defining the series of activities that needs to be

performed by different persons involved in the process of recruitment, the

checks and control measures to be adopted and information that has to be

captured.

Recruitment and Selection is conducted by:

HR & Branch Manager

Functional Head

KEY FOCUS AREAS IN RECRUITMENT AND SELECTION PROCESS:

48

To meet manpower requirements of the company in terms of the

approved Human Resource Plan.

To fulfill requirements of competent personnel in terms of requisite

capabilities, skills, qualification, aptitude, merit, and suitability with a

view to fulfill Company’s objectives.

To attract, select and retain the best talent available keeping in view

the changing needs of the organization.

Before going into the detail about recruitment and selection we must know

about manpower. For the successful implementation of recruitment and

selection process a sound and effective Manpower Human Resource

planning is required.

RECRUITMENT PLANNING:

49

Recruitment planning on the basis of budget:

A. The manpower planning process for the year would commence with

the company’s budgeting activity. The respective Functional heads would

submit the manpower requirements of their respective functions/

departments to the board of Directors as part of the annual business plan

after detailed discussion  with the head of human Resource Function

along with detailed notes in support of the projected numbers

assumptions regarding the direct and indirect salary costs for each

position.

B. A copy of the duly approved manpower plan would be forwarded by

the HR department for their further actions during the course of the

year. The annual budget would specify the manpower requirement of the

entire organization, at different levels, in various functions/departments,

at different geographical locations and the timing of the individual

requirements. It would also specify the requirement budget, which is the

cost allotted towards the recruitment of the budgeted staff and the

replacement of the existing employees. The manpower plan would also

clearly indicate the exact time at which the incumbent should be on

board in such a way that the Regional HR has adequate notice for the

time lapses involved in sourcing any other activities.

C. The Regional HR’s would undertake the planning activity and

necessary preparations in advance of the anticipated requirements, as

monthly and quarterly activities on the basis of the approved budget,

estimated separations and replacements therefore.

D. The vacancies sought to be filled or being filled shall always be within

the approved annual manpower budget and no recruitment process shall

be initiated without the formal concurrence of the Head of the Regional

HR under any circumstance. Head of the Regional HR shall also have the

responsibility to monitor the appointments being considered at any point

of time with specific respect to the duly approved manpower budgets.

50

Review of Manpower Plans and Additional Manpower:

A.  Review of manpower budgets shall take place on a quarterly basis. In the

event of any new position or any deviations to the original plans, details

of the positions maybe forwarded to the VP-HR along with the adequate

supporting information. The recommendations would normally require a

formal approval of the Managing Director. Alternately, VP-HR may

record the summary of his discussion with the Managing Director and the

MD’s approval on the recommendations, to signify the final decision

taken regarding the recommendations.

51

RECRUITMENT PROCESS:

Recruitment forms the first stage of acquisition function. In simple terms,

recruitment is understood as the process of searching for, and obtaining

applicants for jobs, from among whom the right people can be selected.

Recruitment represents the contact that the company makes with the

potential employees. It is through recruitment that many individuals come to

know about the Company, and eventually decide whether they wish to work

for the company or not. So, recruitment needs to be well-planned and well-

managed so that it results in high- quality applicants.

DEFINITIONS:

“It is a positive process. It is the process of searching for prospective

employees and stimulating and encouraging them to apply for jobs in an

organization,”- FILLIPO

“Recruitment is the process to discover the sources of manpower to meet

the requirements of the staffing schedule and to employ effective measures

for attracting that manpower in schedule and to employ effective measures

for attracting selection of an efficient working force”- YODER

4.4.1 PURPOSE OF RECRUITMENT:

Recruitment Lends itself as a potential sources of competitive advantage to

a firm. An effective approach to recruitment can help a company

successfully compete for limited human resources. The firm must choose a

52

recruiting approach that produces the best pool of candidates quickly and

effectively.

A Recruitment programme helps the firm in at least TURES ways:-

Attracting highly qualified and competent workforce.

Ensure that the selected candidates stay longer with the firm.

Make sure that there is a match between the cost and benefit.

Help the firm create a culturally diverse workforce.

FEATURES OF RECRUITMENT:

Recruitment is a process or a service of activities rather than a single

act or event.

It is a linking activity as it brings together those with jobs (employer)

and those seeking jobs (prospective employees).

Recruitment is a positive function as it seeks to develop a pool of

eligible person from which most suitable ones can be selected.

The basic purpose of recruitment is to locate the sources of people

required to meet jobs requirement and attracting such people to offer

themselves for employment in the organization.

Recruitment is pervasive function as all organizations engage i.e.

recruitment activity.

53

RECRUITMENT PROCESS IN ALSTOM PROJECT

INDIA LTD:

In order to meet the present and future manpower needs in diverse discipline,

multiple skills and different work areas, ALSTOM is committed to system of

selection that ensures induction of the base and most competent personnel to

take up challenging assignments in the company.

The Manpower planning is dependent on the below mentioned factors:

a) Business needs.

b) Vacancies created due to employee exits/resignations.

c) Vacancies created by successions

Based on the requirement the Line Manager passes on the detailed Job

Description for the position to the HR department.

54

JOB DESCRIPTION – SAMPLE

Reporting to: Project Manager (Mech. Design) Location: Noida

RESPONSIBILITY:

Develop equipment specifications/design

Sizing criteria for various systems and equipment in the main plant.

SKILLS & QUALIFICATIONS

B.E. / B.Tech in Mechanical Engineering from an institute of repute

5 to 10 years experience in a similar capacity

Should have good exposure in;

1. Concept,basic and detailed engineering in the Main Plant area

(Power Block)

2. Experience in working on Steam and/or Combined cycle power

plant.

3. Excellent knowledge of Thermodynamics.

4. Clarity of thought on P&ID’s, Heat-Mass Balance Diagrams etc.

OTHER QUALITIES AND SKILLS SETS

Good Communication Skills

Independent Decision Making ability

Willing to travel (Domestic and Abroad)

Comfortable in MS Ofice applications (MS Excel, MS Word)

Reportees if any

55

______________________________________________________________________

Any other:

___________________________________________________________________________________________________________

_______________________________________________________________________________________________________

The HR uses the method of filling the position reducing the recruitment lead

time through internal sourcing.

SOURCES OF HIRING:

Regional HR would tap various sources/channels for getting the right

candidate. Depending on the nature of the position/grade, volumes of

recruitment and any other relevant factors, the Regional HR would use any

one multiple sources such as:

A. Internal Source

B. External Source

A. INTERNAL SOURCES:

Promotion And Transfer

Internal Job Posting.

Employees of the Company would have the first option for

consideration for filling up a vacancy. All internal vacancies in the

company shall be compulsorily notified in the Job Postings Database

and ALSTOM’s Jobs Online on the intranet. All employees shall be

eligible to apply against the advertised vacancies. Whenever an

internal candidate has been selected for a particular vacancy, the time

period of his/her release from the current position may be discussed

and agreed upon by the concerned Segments/Departments. Normally,

56

the employee would be required to complete the assignments

currently being attended to, and hand over the charge.

B. EXTERNAL SOURCES:

Databank

Unsolicited applications / Walk in candidates

Campus Interviews

Referred Candidates

Placement / Recruitment Agencies.

Walk in interviews

Employment Exchange

Print Media and web Media advertisements / Job Postings

Employee referrals.

HIRING THROUGH INTERNAL SOURCES:

Considerable saving can be made. Individual with inside knowledge of how

a business operates will need shorter period of training and time for

‘fitting in’.

The organization is unlikely to be greatly ‘disrupted’ by some one who is

used to working with others in the organisation.

Mobility and change in role within organizations offers new challenges and

also new avenues for employees to explore.

From the firm’s point of view, the strength and weaknesses of an insider

will have been assessed. There is always a risk attached to employing an

57

outsider who may only be success ‘on paper’.

HIRING THROUGH EXTERNAL SOURCES:

At least 70% of the vacancies occurring during a year at Induction

levels/grades will be filled up through direct recruitment from external

source like campus hiring/ walk-in interviews

Some can be done through Consultancies.

Recruitment of executive from external sources will be made generally

through open advertisement in the press. However, campus recruitment

from premier institutes of repute as approved like NIT/IIT and/or

recruitment through direct negotiations on special skilled jobs can be done

with individual(s)/ organization(s) subject to approval of such skilled

positions and the selection process by the board of directors.

The actual steps involved in recruitment follow a well defined path:

Obtaining the Manpower requirement

Sourcing profiles based on the JD provided through

internal and external sources

Screening profiles for suitability and sharing with

Line Managers

Scheduling interviews for short listed profiles58

SELECTION PROCESS:

Once the recruiting effort has developed a pool of candidates, the next step

in the HRM process is to determine who is best qualified for the job. This

step is called the selection process. Selection involves mutual decision and

prediction. The enterprise decides whether to make a job offer and how

attractive the offer should be.

The job candidate decides whether the enterprise and the job offer fit his or

her needs and personal goals. The process also seeks to predict which

applicants will be successful if hired. Success, in this case, means

performing well on the criteria the enterprise uses to evaluate employees.

“Selection is the process by which an organisation chooses from a list of applicants the

person who best meets the criteria for the position available taking into account the

current market conditions”.

LEGAL CONSIDERATIONS:

Legislation, executive orders, and court decisions have a major impact on human

resource management. It is important for hiring managers to see the relationship between

59

useful and legally defensible selection tools.

SPEED OF DECISION MAKING:

The time available to make the selection decision can have a major effect on the selection

process. Closely following selection policies and procedures can provide greater

protection against legal problems; however, there are times when the pressure of business

will dictate that exceptions be made.

ORGANIZATIONAL HIERARCHY:

Different approaches to selection are generally taken for filling positions at different

levels in the organization.

APPLICANT POOL:

The number of applicants for a particular job can also affect the selection process. The

process can be truly selective only if there are several qualified applicants for a particular

position. The number of people hired for a particular job compared to the individuals in

the applicant pool is often expressed as a selection ratio.

SELECTION CRITERIA:

Mostly the selection of applicant depends upon the following factors or criterions.

1. Education

2. Competencies

3. Experience

4. Skills and Abilities

5. Personal Characteristics

60

Applicant who is best fit should be hired instead of hiring a person with extra ordinary

skills it means right person for right job should be hired person who is over or under

qualified for the particular job will not be able to adjust in the organization.

STEPS IN THE SELECTION PROCESS:

There are broadly seven steps in the selection process and each step can further be

subdivided depending on the need.

1. Preliminary Screening of Profiles

2. Interview

3. Assessment Centers

4. Employment Test

5. Reference Checks

6. Medical Examination

7. Employment Offer Letter

1. Preliminary Screening: All applicants are asked to fill up an

application blank. Application blanks provide information to check it the

candidate in minimally qualified for the job and therefore is a useful

initial screening tool.

2. Interview: The next step in the selection process is the interview.

Interviews can be conducted in the following ways:

a. Structured interviews: for such interviews a standardized list of

questions are asked to all applicants. This type of interview is more

reliable than the unstructured ones but if does not give the

interviewer the flexibility to ask interesting or unusual questions.

b. Unstructured interviews: This type of interview is more original

as different questions are asked as the situation demands. But it

61

lacks reliability as each candidate is asked a different series of

question.

c. Situational interviews: Some organisations conduct this type of

interview where in the respondents are asked to respond to a

hypothetical situation they might face on the job for which they are

interviewed.

d. Stress interviews: for jobs involving stress, stress interviews are

conducted to find out how the interviewee responds to stress.

Interviews are effective depending on the manner in which they are

conducted. Expert interviewer must guard against some mistakes

while conducting good interviews.

INTERVIEW PANEL:

Preliminary interview for the recruitment of personnel will be conducted by

a selection panel consisting of:

a) The requisitioning Department Manager

b) Department Head

c) A designated Senior Manager of another department/Segment

conversant with the job involved

d) Location HR.

In case of recruitment to senior level positions, the Segment/Executive

Director shall chair the interview panel along with others as required.

For certain specialized recruitment, it may be necessary to retain the

services of recruitment consultants for reducing the cycle time and ensuring

that there is overall consistency. In such cases, the short listed candidates

must be interviewed finally by the user Segment/Executive Director along

with HR.

Short listed candidate/candidates for recruitment in senior positions in the

company will be seen by the Corporate HR Group and the Managing

62

Director prior to any offer of employment being made. In case of Senior level

recruitments, it may also be necessary for the short listed

candidate/candidates to be interviewed by the Segment Managing

Director/the Segment HR Director.

INTERVIEW SCHEDULE:

Interview Schedule should be fixed in such a manner that the candidates

called for the interview get sufficient enough time to arrange leave and

make travel arrangements. Ordinarily, a lead time of atleast 10 days should

be given.

The Security and the Reception should be informed of the interview and the

names of the candidates on the day previous to the date of interview so that

they could anticipate the candidates, and extend the required courtesy.

Where a cost analysis of holding interviews at various locations by multiple

panels proves to be more economical and time saving, the Corporate HR

Group will co-ordinate such nationwide recruitment, wherever necessary,

following the principles of formation of the Interview Panel members as

mentioned earlier. In such cases, Location HR Managers will form a part of

the Interviewing Team.

PRE-INTERVIEW FORMALITIES:

Before the interview commences, the HR Department should verify the

originals of the Certificates/testimonials, including the most recent salary

slip. Arrangements for the reimbursement of the travel expenses of the

outstation candidates should ideally be completed before the beginning of

the interview.

63

INTERVIEW PROCESS:

Photocopies of the filled in Company Employment Application Form/CV, or a

brief write up giving the particulars of the candidates should be given to

each member of the Interview Panel. It is mandatory that before the

interview begins the Panel members should formally meet, go through the

Company Employment Application Form/CVs, and evolve a strategy for

conducting the interview.

Interview assessment and selection recommendations should be on the basis

of discussion and consensus among the Panel members, and should be

recorded in the prescribed format.

General Norms regarding interview Process:

A. Interviews should consider the entire data provided by the candidate

either through the formal CV or otherwise before coming to a

conclusion about the candidate. They may insist on seeing the proof of

the claims made by the candidate regarding qualifications, experience

and other achievements. They may, at their discretion, decide to meet

the candidate on more than one occasion or to refer the candidate to

another panel.

B. Ratings on various attributes of the candidates shall be recorded in

the interview evaluation sheet, soon after the interview is over. Along

with these numerical ratings, qualitative observations about the

candidate and overall decision regarding selection or otherwise

(including a decision to defer the induction, referral to another panel,

considering for another position) shall be forwarded to the associated

Recruitment Manager/ Head of Regional HR. Individual panel

members have the option of appending their additional

remarks/observations. No selection will be treated as final unless the

64

IES form is filled comprehensively. Suitably appropriate IES formats

may be created for specific positions.

C. Any discrepancies noticed by the panel members regarding the

authenticity of the data provided by the candidate should be

specifically and formally recorded on the IES form and suitably high

lightened.

D. Specific points to be probed during the reference check process, if

any, must also be clearly recorded and high lightened on the IES

forms.

Administrative Actions Regarding Interviews:

A. Scheduling and the venue of the interviews would be handled by the

recruitment team in consultation with the short listed candidate and the

selection panel members, after taking mutual convenience into account.

For field positions, respective branch/regional heads would undertake

this co-ordination.

B. After the final grade and compensation fitment shall be on the

assumption of authenticity of the information provided in the

CV/application form.

C. An appropriate formal communication shall be sent to the candidate

whose candidature is not being taken forward, or details of the

verbal/telephonic communications provided to the candidate shall be

recorded on the candidates papers, by the recruitment team/associated

line managers. In the case of interviews taking place at the

branch/regional levels, similar noting should be recorded on the

individual candidate’s performance.

65

The assessment of the interview is filled in an assessment sheet, which rates

the candidate against the following competencies

Technical Knowledge

Relevant Experience

Communication Skills

Attitude

Personality

Post selection of the candidate based on the position, person fitment

compensation is offered.

3. Assessment Centers can also be used to assess a candidates potential.

4. Employment Tests: An employment test is a paper and pencil test or a

simulation exercise that attempts to measure certain characteristics of

an individual e.g. manual dexterity, intelligence or leadership style.

These tests are very useful for measuring specific skills required for a

job.

Tests are mainly conducted in case of campus recruitment all lateral

hiring happens through Personal Interview.

5. Reference Checks: Reference checks are conducted to obtain

information about the employee to be hire from former employers or co-

workers. The reliability of such tests is questionable because former

employers may be reluctant to provide information particularly in

writing personal executives then substitute the inquiry with a

telephonic call.

Normal, reference checks should be undertaken with at least one

reference. A second reference check will be done if considered

necessary. Responsible officials from the former employers, academic

66

institutes and/or any other eminent personalities can be considered as

appropriate references. Close relatives and friends cannot be

considered as references.

Reference checks of all personnel recruited should be done from the

last employer, and also from at least two of the references mentioned.

Where the incumbent has worked for less than a year in the

employment immediately previous to his joining ALSTOM Power the

reference should also be sent to the second last employer. In case of

Senior Management positions, informal reference check on telephone

must also be done after obtaining the consent of the candidate by a

Senior Manager. No such reference should be made until the candidate

has accepted the offer of employment and agreed to such references

being made.

6. Medical Examination:

Ordinarily, the selected candidate should be found suitable in terms of

the prescribed Medical Standards. Where this is not possible for want

of time, the candidate should be clearly told that the employment offer

is contingent on his being found medically suitable. Medical

examination can be organized by the company's Medical

Officer/authorized Hospital.

7. Employment Offer Letter:

A. When a recruitment Manager is fully satisfied about the selection of

the right candidate and about completion of all the formalities

connected with the appointment of candidate including requisite

documentation, satisfactory reference check reports and medical

fitness, he/she would forward the relevant papers listed below to the

head of recruitment.

67

Personal Data form

Employee requisition form duly filled by the regional Head/Branch 

Manager

Interview evaluation sheet filled by the regional head/Branch

manager/interviewer with his/her comments.

Latest and updated resume of the candidate

Photocopy of the appointment letter of the last employer or latest

salary slip.

Employment details.

 

B. Document check list for every grade is as follows:

Authorization Release Form.

Highest Education certificate.

Highest Education mark sheet.

1 Month Salary Slip of last Employer.

Relieving Letter of last Employment.

Proof of Residence.

2 Passport Size Photograph.

68

Un

favo

rab

le T

est

Sco

re

Un

favo

rab

le S

eco

nd

Im

pre

ssio

n

Un

favo

rab

le P

revi

ou

s H

isto

ry

Receipt of Applications

Background Investigation (Reference Check)

Application Blank

Psychological Test

Interview

Waiting List of Desirable Applicants

Preliminary Interview

Final Selection By Interviewers

Placement

Physical Examination

Ph

ysic

all

y U

nfi

t Pers

on

all

y O

bje

ctio

nab

le o

r U

nfa

vora

ble

G

en

era

l Im

pre

ssio

n

Un

favo

rab

le P

ers

on

nel

Data

Neg

ati

ve

Deci

sion

Ph

ysic

all

y U

nfi

t

69

Fig.: Selection Process Flow Chart

TRAINING PROCESS:

70

ACCORDING TO FLIPPO, TRAINING IS THE ACT OF

INCREASING THE KNOWLEDGE AND SKILLS OF AN

EMPLOYEE FOR DOING A PARTICULAR JOB. THE MAJOR

OUTCOME FOR TRAINING IS LEARNING. A TRAINEE

LEARNS NEW HABITS, REFINED SKILLS AND USEFUL

KNOWLEDGE DURING THE TRAINING THAT HELPS HIM

IMPROVE PERFORMANCE. TRAINING ENABLES AN

EMPLOYEE TO DO HIS PRESENT JOB MORE EFFICIENTLY

AND PREPARE HIMSELF FOR A HIGHER LEVEL JOB.

THUS, TRAINING MAY BE DEFINED AS A PLANNED

PROGRAMME DESIGNED TO IMPROVE PERFORMANCE AND

BRING ABOUT MEASURABLE CHANGES IN KNOWLEDGE,

SKILLS, ATTITUDE AND SOCIAL BEHAVIOR OF

EMPLOYEES.

ISO – 10015: 1999, defines Training as a four stage process as illustrated by

the training cycle diagram show in figure.

71

The four steps are:

a) Defining Training Needs

b) Designing and Planning Training

c) Providing for Training

d) Evaluating the outcome for Training

Each stage has linkages with other stages. When viewed as a process,

output from one stage becomes input for the following stage. Thus, each

stage while being a process in itself provides specific value addition. It will

be necessary for those responsible for Training Management to monitor

activities and progress at each stage.

TRAINING BEST PRACTICE — A SYSTEMS APPROACH:

72

In today’s business environment where change is constant, technology is

cheap and skill shortages are commonplace, people are the key

differentiator between those businesses that succeed and those that don’t. It

is little wonder then that the training and development function in an

organization plays a pivotal role in moving an organization forward. But how

should the training department go about its business of providing the best

service possible to the rest of the organization?

The Business Performance Pty Ltd model for best practice training

management recognizes the systems nature of organizations and takes an

evolutionary approach to achieving best practice. What this means is that

the training and development function is co-dependent on the other

functions within an organization for its effectiveness and, because of this co-

dependence, it cannot achieve world-class performance all at once.

FEATURES OF TRAINING:

INCREASES KNOWLEDGE AND SKILLS FOR DOING A

JOB

BRIDGES THE GAP BETWEEN JOB NEEDS AND

EMPLOYEE SKILLS, KNOWLEDGE AND BEHAVIOR

JOB-ORIENTED PROCESS, VOCATIONAL IN NATURE

SHORT-TERM ACTIVITY DESIGNED ESSENTIALLY FOR

OPERATIVES

73

TRAINING VS DEVELOPMENT

TRAINING OFTEN HAS BEEN REFERRED TO AS TEACHING

SPECIFIC SKILLS AND BEHAVIOR. EXAMPLES OF

TRAINING ARE LEARNING TO FIRE A RIFLE, TO SHOOT

FOUL SHOTS IN BASKETBALL AND TO TYPE. IT IS

USUALLY RESERVED FOR PEOPLE WHO HAVE TO BE

BROUGHT UP TO PERFORMING LEVEL IN SOME SPECIFIC

SKILLS. THE SKILLS ARE ALMOST ALWAYS BEHAVIORAL

AS DISTINCT FROM CONCEPTUAL OR INTELLECTUAL.

DEVELOPMENT IN CONTRAST, IS CONSIDERED TO BE

MORE GENERAL THAN TRAINING AND MORE ORIENTED

TO INDIVIDUAL NEEDS IN THERE IS MORE THEORY

INVOLVED WITH SUCH EDUCATION AND HENCE LESS

CONCERN WITH SPECIFIC BEHAVIOR THAN IS THE CASE

WITH TRAINING. USUALLY THE INTENT OF DEVELOPMENT

IS TO PROVIDE KNOWLEDGE AND UNDERSTANDING THAT

WILL ENABLE PEOPLE TO CARRY OUT NON-TECHNICAL

ORGANIZATIONAL FUNCTIONS MORE EFFECTIVELY, SUCH

AS PROBLEM SOLVING, DECISION-MAKING AND RELATING

TO PEOPLE.

IMPORTANCE OF TRAINING:

74

BENEFITS TO THE BUSINESS:

TRAINED WORKERS CAN WORK MORE EFFICIENTLY.

THEY USE MACHINES, TOOLS, MATERIALS IN A PROPER

WAY. WASTAGE IS THUS ELIMINATED TO A LARGE

EXTENT.

THERE WILL BE FEWER ACCIDENTS. TRAINING

IMPROVES THE KNOWLEDGE OF EMPLOYEES

REGARDING THE USE OF MACHINES AND EQUIPMENT.

HENCE, TRAINED WORKERS NEED NOT TO BE PUT

UNDER CLOSE SUPERVISION, AS THEY KNOW HOW TO

HANDLE PROPERLY.

TRAINED WORKERS CAN SHOW SUPERIOR

PERFORMANCE. THEY CAN TURN OUT BETTER

PERFORMANCE. THEY CAN TURN OUT BETTER QUALITY

GOODS BY PUTTING THE MATERIALS, TOOLS AND

EQUIPMENT TO GOOD USE.

TRAINING MAKES EMPLOYEES MORE LOYAL TO AN

ORGANIZATION. THEY WILL BE LESS INCLINED TO

LEAVE THE UNIT WHERE THERE ARE GROWTH

OPPORTUNITIES.

BENEFITS TO THE EMPLOYEES

75

TRAINING MAKES AN EMPLOYEE MORE USEFUL TO A

FIRM. HENCE, HE WILL FIND EMPLOYMENT MORE

EASILY.

TRAINING MAKES EMPLOYEES MORE EFFICIENT AND

EFFECTIVE. BY COMBINING MATERIALS, TOOLS &

EQUIPMENTS IN A RIGHT WAY, THEY CAN PRODUCE

MORE WITH MINIMUM EFFORT.

TRAINING ENABLES THE EMPLOYEES TO SECURE

PROMOTIONS EASILY. THEY CAN REALIZE THEIR

CAREER GOALS ACTIVELY.

EMPLOYEES CAN AVOID MISTAKES, ACCIDENT ON THE

JOB. THEY CAN HANDLE JOBS WITH CONFIDENCE.

THEY WILL BE MORE SATISFIED ON THEIR JOBS. THEIR

MORALE WOULD BE HIGH.

THUS, TRAINING CAN CONTRIBUTE TO HIGHER

PRODUCTION, FEWER MISTAKES, GREATER JOB

SATISFACTION AND LOWER LABOR TURNOVER. ALSO, IT

CAN ENABLE EMPLOYEES TO COPE WITH

ORGANIZATIONAL, SOCIAL AND TECHNOLOGICAL

CHANGE. EFFECTIVE TRAINING IS AN INVALUABLE

INVESTMENT IN THE HUMAN RESOURCE OF AN

ORGANIZATION.

76

TRAINING PROCESS IN ALSTOM:

ALSTOM ARRANGE TRAINING AND DEVELOPMENT

PROGRAMMES FOR THEIR EMPLOYEES THROUGH ALSTOM

UNIVERSITY EUROPE.

ALSTOM UNIVERSITY - LEADING BY LEARNING:

The aim of the Alstom University is to ensure that employees have the

knowledge, skills, and tools necessary to contribute to both Alstom’s and the

individual’s success. Alstom University was created to achieve these goals,

by instilling a learning culture and community approach within the Group.

Alstom University contributes to the personal development of their

employees:

Offering high quality programmes for all employees

Promoting the "life-long learning" approach

Encouraging employees to be active in the management of their own

development

Alstom University has been launched because it recognizes that highly

trained people, with a positive, global outlook will be the success of

business.

Alstom University already offers a wide range of methods to deliver training. Classroom

based, e-Learning, seminars, workshops, simulations and events are just an example.

77

Alstom University is a lot more than training. It is a way for our employees to meet and

develop ideas together, to share knowledge and benefit from differences, and in the

process, enjoy a sense of belonging to one Group.

Alstom University already offers a wide range of methods to deliver training.

Classroom based, e-Learning, seminars, workshops, simulations and events

are just an example.

In Alstom University, more than 80 programmes are available, as well as

more than 10 e-learning courses, in various languages.

Programmes are built with the business in mind. The skills and knowledge

acquired through Alstom University's training and development solutions

contribute to achieving business results.

Alstom University offers a wide range of programmes on each of these

various subjects:

TYPES OF TRAINING

CLASSROOM PROGRAMMES:

Advanced management seminar

Change management

Developing intercultural effectiveness

Situational leadership

Essential facilitations skills

CLASSROOM

PROGRAMME

E-LEARNING

PROGRAMME

FUNCTIONAL

PROGRAMME

78

Finance for non-financial managers

Positive power and influence

Project management fundamentals

The leadership journey

And many others…

E-LEARNING PROGRAMMES:

Alstom discovery tour

Alstom - Our Shared Values

e-performance management

e-rail discovery

e-computer skills

e-English

e-French

e-German

e-Spanish

FUNCTIONAL PROGRAMMES:

Finance

Sourcing

Project management

Human resources

And many others

79

80

81