Transformation of HR in last 3 & ½

decades

Deepak GarnaikVice President – HR & CC

Transformation of HR – a practical perspective in last 3&1/2 decades • Based on my practical experience 10 real

life events.• Expectation from HR roles & Challenges :

a 360 degree prospective.• Brief recital of the events.• Challenges faced.• Expectation from HR.• Solution/ Interventions / action by HR.

Examples being cited1. 1981 -85: Contract labour problem in Company.2. 1986-88: BODO agitation 100 - 1000 hours strike.3. 1990-94: LTS clinching scenario / Multiskilling of

technicians.4. 1996-98: Introduction of KRA based PMS in Refinery.

1999: Local interference in Lakwa, ASSAM.6. 2007: Kidnapping of Indian Expatriates (first time) in

Nigeria.7. 2009: Local staff unrest incident.8. 2010 -14: Reime top & bottom line strategy.9. 2014: LCV accident & Worli Naka incident10. 2015: SMG role and board expectation prospective

1981 / 1985 – Contract labour issues The incident – Mob behavior PF issue leading to

“Gherao” and lightning work stoppage. Demands: Release leaders from custody. Owner expected: resolution in three hours. Solution: Discussion with key personnel, Personal bond,

promise for PF records. Two CL strikes in Refinery – Canteen & PSF shop floor. Demands: take back workman removed on Disciplinary

Grounds / PF from Mgt over & above Min wages. Mgt expected – No work stoppage at any cost. Solution: Immediate alternative arrangement made and

law & order on stand-by. It died down on second day.

1986 -88 BODO agitation The incident – 100 to 1000 hours public bandh

– no shops open no transport on road etc.Demands: Separate BODO state - Employee

should not attend duty showing support. Mgt Expectation: Production of essential goods

(ATF & Kerosene) should not stop.Solution: Met the BODO leaders got special

pass for 20% staff to keep the essential units on production. Minimized staff movement took Police help to escort staff buses.

1990 -94 LTS clinching scenario The incident – Reached a no go w r t LTS as the

BPE/Govt directive was 15% max and union was not agreeing – lead to strike notice.

Demands: Immediate signing of LTS. Many benefits would accrue on signing only.

Mgt Expectation: Sign it within the BPE / DPE guideline. No hurry.

Solution: Took Union into confidence and explained how their expected level of benefits would flow in due course and as at the cut off date implication can be shown within as 15%.

Multiskilling was agreed by union for extra 1%.

1996 -98 KRA based PMS Scenario: Increments had no link with performance. Appraisals were used only for determining time period for promotion. KRA was not a part of Performance Mgt/ Appraisals. Mgt desired: KRA with KPIs to form part of Appraisal process.Challenges: Heavy resistance due to risk of individual weaknesses getting exposed.Intervention: Involvement of external agency IIMAin 2 years time it was put it in place – first year it was not so measurable though.

1999 – Local interference incident - Lakwa

Contract Awarding issue.Volatile scenario : Interference by insurgency

outfits. Challenges: Lack of understanding culture /

communication / Ego. Intervention: took charge and took decisions on

spot much beyond jurisdiction/ power in order to defuse the situation.

2007 – Kidnapping of Indians (Nigeria)

The Scenario: Two instances of kidnappingsChallenges: To maintain motivation levels after the first kidnapping and to sustain operations after second. To decide appropriate strategy.Mgt Expectation: Keep operations running.Intervention: Assessment of what Expats feel and then decided strategy to send Expats and family home for two months. Got expats released and planned for slow but steady start up schedule. Terms for employment changed as a strategy.

2009 – Local staff unrest (Nigeria)

The Scenario: Sudden instance of unrest.Challenges: Arising out of Group vrs local cultureThreats: Production loss, Endangering safety and security of plant.Intervention: Risked a strong stand “resume duty to continue operations” as a pre-condition to start dialogue, simultaneously interacted with the central T Us for unionization. Adopted local culture closely linked to social culture of Jr staff / Sr staff.

2010-13 – Top & bottom line strategy (Sub-Saharan Africa)

The Scenario: Business Growth strategy & plan.Challenges: Too short a period to get @ 2 fold growth. Too optimistic growth prediction by main client. High HC and OOH costIntervention: set a deadline for CEO to show and validate topline followed by change to bottom-line based strategy and re-structuring plan. HR tasked to partner new CEO to achieve country based bottom-line. HC & OOH cost cut by 350K $ a month i.e. by 60%.

2014- LCV & Worli naka incident(Mumbai)

The Scenario 1 : Fatal accident by LCVChallenges: HR asked to be the team lead in incident investigation.Scenario 2: Worli naka gas leak.Challenges: HR carrying out cross functional tasks. HR asked to standby for the CEO.

2014-15 Contribution to Business model & Ownership of bottom-line

HR as Strategic Management Group member & its role in all strategic business issues like:

Monthly pricing review including its impacts from a 360 degree angle.

Business plan. Business expansion strategy. Reviewing bottom-line periodically.

HR role in view of CA 2014 making Independent Directors accountable for issues in HR space.

Transformation of HR role 1983 to 1993 - services delivery Role

• Manage Labour issues• Manage Compliance • Hire for skill• Reactive CrisisManagement

2004 to 2012 -Business Partner

• Hire for attitude• Build capacity • Retain talent• Understand P&L

1994 to 2004 -Performance delivery

• Efficiency improvement

• Multi skilling• Drive Compliance • External issues Mgt

2013 onwards ……..–Business Ownership

• Own P&L jointly• Contribute in

Business Expansion decisions

• Cross functional leadership

THE HR MODEL – GOING FORWARD…….