HRM Project Rajni Shah NMTYBMS Tahaab Rais

NARSEE MONJEE COLLEGE OF COMMERCE & ECONOMICS
B.M.S
SUBJECT: HUMAN RESOURCES MANAGEMENT

PROFESSOR-IN-CHARGE: PROF. RAJNI SHAH
SUBMITTED BY:
NAMRATA ARYA 122
RAJESHREE PARSANA 139
RIDDHI PATEL 140
HARDIK PATWA 143
TAHAAB RAIS 147
KIRAN RAYMANGIA 150
HARDIK SANGHVI 154
PRIYESH SATARDEKAR 157
UNNATI SHAH 165
NIKITA THAKKAR 174
N.M.B.M.S WORLD CLASS ORGANIZATIONS
TOPIC
 Highlight the critical attributes of a 'world-class' Organization. How
'good' companies transform themselves into 'great' companies? Give
examples of a few Indian companies who have made it to 'world-class'
status, as also Strategies that you would recommend to remain 'world-
class' Organizations.
INDEX: TABLE OF CONTENTS
INTRODUCTION PAGE 3
HUMAN RESOURCES MANAGEMENT: A PRIMARY ENABLER PAGE 5
WORLD-CLASS INFRASTRUCTURE .VS. MEDIOCRE INFRASTRUCTURE PAGE 8
CHARACTERISTICS OF A WORLD-CLASS ORGANIZATION PAGE 9
STRATEGIES FOR DEVELOPING A WORLD-CLASS ORGANIZATION PAGE 13
‘GOOD TO GREAT’ COMPANIES PAGE 16
ETHICAL ISSUES AT GOOD COMPANIES PAGE 20
LARSEN & TOUBRO LTD. PAGE 22
INFOSYS TECHNOLOGIES LTD. PAGE 26
THE ADITYA BIRLA GROUP PAGE 30
STATISTICAL FINDINGS & VIEWPOINTS PAGE 35
CONCLUSION PAGE 37
HUMAN RESOURCES MGMT. 2 PROF. RAJNI SHAH

INTODUCTION
When the rules of a game change, the player's strategies and actions must also change
so as to win in that game. The same goes for business. On the eve of the 21st century
the nature of doing business has tremendously changed.
Global competition is characterized by networks that bind countries, the phenomenon

of an increasingly borderless world, and intense pervasive changes have pushed the
limits of business excellence to new frontiers never seen before.
For organizations, good is no more good enough, and excellence has lost its meaning
to a new phenomenon called "world class organizations". World class organisation
status is a new ideal relentlessly pursued by ambitious and daring organizations
worldwide because this status alone is a status which promises maximum rewards and
the victor's stand. Let us thus demystify this new phenomenon and analyze certain
viewpoints which could be useful for developing world class organizations.
What Is A World Class Organisation?

A world class organisation can be defined as "an organisation which has acquired
the position of best of the best in the world in its given business and continuously
strives to beat its own standards so as to retain that position".
This definition gives us some pointers which can be rightly called some of the traits of
a world class organisation:
Certain Basic Traits of a World Class Organisation:
1. Best of the best:
A world class organisation is like a world champion having beaten all business
champions throughout the world. Additionally such an organisation possesses some
level of strategic and operational excellence, which is not matched by any other
organisation in the world.
Classic examples of best of the best organizations include Motorola, Federal Express
and Microsoft.
2. Continuous improvement:
The second most important trait of a world-class organisation is the importance it

attaches to continuous improvement. These organizations do not rest on their laurels
but rather continuously indulge in self-reinvention process.
It is rightly said that "success is a journey and not a destination" and for successful
companies improvement is a continuous journey. Those organizations, which practice
continuous self-improvement, live longer, while those who become complacent and
forget about it ultimately end up with closures.

3. Relentless focus on customer satisfaction:
In the game of business, umpires are customers and winning thus lies in their
satisfaction. In this era customers have become increasingly demanding, asking for
the best quality, cheapest possible price, and superior service back up. So to win the
hearts of their customers, globally acclaimed companies satisfy customers and in most
of the cases delight them by offering fabulous quality, charging surprisingly lowest
possible prices and providing angel-like service. It must be mentioned here that
excellent organizations develop excellent relations with their clients and treat them
with respect and high esteem.
Here, we would like to mention a case of a Malaysian company called "First

Training". First Training is a video training company, which sells and rents out
management and educational videos and multi-media programmes. It's a small
company consisting of half a dozen employees and managed by an excellent manager
named Thomas Teo can be rightly called as a world class company when it comes to
customer satisfaction. Customers, after visiting their office just a couple of times,
were indeed treated like kings. After finishing his meeting, a certain customer had to
attend another meeting and when he asked for the direction to the place of his next
meeting, he was extremely touched when Teo told him that he would guide him there
and asked the customer to follow his Jeep. That particular customer said, “I can never
forget this kindness as a customer!” and frankly who wouldn't if treated like that by
any company.

HUMAN RESOURCES MANAGEMENT:

A PRIMARY ENABLER
A world-class HR department is a primary enabler in transforming a Company from
Good to Great. Hence, an organisation must formulate its HR Policies to complement
its Vision.
The future of any company hinges on its ability to:
* Attract & Retain Talent
* Evolve Performance Parameters with respect to key result areas
* Manage Expectations
* Robust Performance Appraisal & Reward System
* Competency Mapping for building Leadership
* Train & Upgrade skill sets
* Succession planning
Let us elaborate on some of these points:
Attraction & Retention:
Organizations have recognized that campuses are the new hot spots where you put
your best foot forward and present your best brand-building armoury. Campuses are
like the gold mines that can supply top-class manpower. There is tremendous
competition for attracting the best talent.
The lateral recruitment is the other side of the coin and perhaps even tougher. This is
because one is looking for the right talent not just within India but globally. Cultural
and socio-political factors across continents and nations need to be addressed, making
it a complex game. One must be flexible enough to adapt quickly and have the ability
to learn continuously. HR, especially, in the case of the IT arena, needs to hone up the
recruitment engine in view of the high attrition rate. This is one of the key success
factors in this industry.
There is rampant poaching for key talent. This has to be met with excellent HR
initiatives. Having attracted the top talent the more difficult task of retaining
commences. Hence, good organizations focus on talent retention even before talent
acquisition. A company must have the mechanisms to put the "right people" with the
"right experiences" at the "right place" and at the "right time".

The Company should create an environment, which provides growth opportunities to

employees and creates a competitive work environment for them. Career plans for the
employees need to be drawn that is tangible and shows what the employee could
achieve if he were to perform. Once the employee is able to align his individual goals
to the career plan drawn for him then he works selflessly towards achieving the
organization’s goals. This ensures a sense of belonging in him as he is secure in the
knowledge that his career will be looked after.
Managing Expectations:
In today's complex and competitive landscape, HR will have to play a crucial role in
balancing the expectations of the employees' vis-à-vis the demands and constraints of
the organisation. The departmental and functional heads would have to be trained to
give accurate feedback to the subordinates dovetailing the positive as well as the areas
of improvement. They will have to master the fine art of walking the tight rope. This
is because excessive positive feedback raises the expectation of the employee to an
unrealistic pitch, which the organisation cannot fulfill due to its limitations. A
negative feedback can cause untold harm to the employee morale and his confidence
level.
One way could be to encourage employees to pick up diverse skill sets, so that it
increases his chances of growth within the organisation. It will have to be made
abundantly clear that organizations seek and promote people who have acquired
additional expertise in varied fields.
Performance:
Organizations need to promote a performance driven culture with a differential

reward structure. It necessitates moving ahead in its journey towards building a
culture of differentiation. To meet this challenge, organizations need to have a strong
performance ethic and a common performance theme, like EVA Airways, around
which everybody rallies.
Evolving a robust performance measurement system specifying the key result areas
for all employees is a complex but an essential task for HR. This system should help
in separating the star performers from the average and poor performers. However,
these parameters cannot be developed in isolation but need a greater degree of
involvement and interaction with the line functions across the business units.
HR needs to understand the complexities of each business unit and should be

sensitized to the environment in which it operates. A single solution that will fit all
business units or line functions is a sure recipe for failure. Innovative schemes need to
be drawn to compensate and reward the employees. HR needs to be aware of the
external environment and the market forces.
Appraisal:
An appraisal system must be simple, transparent, and fair, and ought to be conducted
as often as possible. The objective of a performance evaluation system is to be able to

track promises facilitating a meaningful dialogue between superiors and subordinates

and establishing a clear linkage between performance and rewards. We also believe
that performance evaluation must be conducted across all levels in the organisation.
One must be able to stand scrutiny for one's own performance before judging
someone else’s performance in the workplace of the organization.
Succession planning, Competency Mapping, Training & Grooming:
Today's executives are tomorrow's business leaders. Succession planning is a must in

order to ensure that the organisation has the right leaders in place to face future
challenges. The hunt for tomorrow's leaders should begin today. The potential talent
must be tapped and their competencies ought to be mapped. Their strengths & areas
of improvement need to be identified. Mentoring and coaching processes should be an
essential element of grooming future leaders. Appropriate training must be provided
keeping in mind that tomorrow's world would be more complex than ever before.
What the Future beholds:
All this requires a strong, knowledgeable and innovative HR Department, which

understands the pulse of the organization.
WORLD-CLASS INFRASTRUCTURE
.VS.
MEDIOCRE INFRASTRUCTURE

World-Class Infrastructure Mediocre Infrastructure
1. Totally supported by executive 1. Little or no support from executive

management management
2. Meaningful metrics analyzed, not just 2. Convenient metrics (not necessarily

collected meaningful) collected, not analyzed
3. Proactive approach to problem solving, 3. Reactive approach to problem solving,

change management, availability, change management, availability,
performance and tuning, and capacity performance and tuning, and capacity
planning planning
4. Help desk involves call management, 4. Help desk focuses on call tracking, not call
not just call tracking management
5. Employees empowered to make 5. Employees empowered very little, or not

decisions and improvements at all
6. Standards well developed and enforced 6. Standards poorly developed, with little or
no enforcement
7. Employees well trained 7. Employees poorly trained
8. Employees well equipped 8. Employees poorly equipped
9. Processes are designed with robustness 9. Processes designed with little or no

robustness
10. Technology used effectively to 10. Technology applied inappropriately, if at

automate streamlined processes all
11. Integration of systems-management 11. Little or no integration of systems-

functions management functions
CHARACTERISTICS OF A
WORLD-CLASS ORGANIZATION
1: Executive Support

Executive support is one of the primary prerequisites for implementing a world-class

infrastructure. Executive support doesn't mean merely approving budgets for
hardware, software, and human resources (executives in many firms with mediocre
infrastructures readily approve budgets); it means an IT executive who actively
participates in the planning, development, and decision-making processes of systems
management.
Active participation by executives can take on many forms. It may involve executives
taking the time to understand the challenges and obstacles of providing sound
infrastructures. It may consist of managers helping to prioritize which functions of
systems management are most important to their firms. It may result in executives
backing up their staffs when negotiating reasonable (rather than unrealistic) service
levels with customers. Finally, it may be the CIO or his representative ensuring that
other departments within IT, notably applications development, actively support and
comply with established infrastructure policies, procedures, and standards.
2: Analyzing Meaningful Metrics
One of the most common characteristics that differentiate well-managed from poorly-
managed infrastructures is their use of metrics. One of the first distinctions in this
regard is the difference between collecting data and establishing truly meaningful
metrics derived from this data.Most companies today collect some type of data about
outages to their online systems, regardless of whether the systems are hosted on
mainframes, client/server systems, or the Internet. A typical metric measures the
percent uptime of a particular system over a given period of time and establishes a
target goal; for instance, 99% uptime. The data collected in this example may include
the start and end times of the outage, systems affected, and corrective actions taken to
restore service. The metric itself is the computation of the percent uptime on a daily,
weekly, or monthly basis for each online system measured.
Compiling the outage data into a more meaningful metric may involve segregating the
percentage uptime between prime-shift and off-shift, or reporting on actual system
downtime in minutes or hours, as opposed to percent availability. A meaningful
availability metric may also be a measure of output as defined by the customer. For
instance, a purchasing officer may request measuring availability based on the number
of purchase orders that the purchasing staff can process on a weekly basis.
Instituting meaningful metrics helps improve the overall management of an
infrastructure, but their ultimate use involves analyzing the metrics to reveal trends,
patterns, and relationships. This in-depth analysis can often lead you to the root cause
of problems and a more proactive approach to meeting service levels.
An example from an aerospace client illustrates this point. This firm was running
highly classified data over expensively encrypted network lines. High network
availability was of paramount importance to ensure the economic use of the costly
lines, as well as the productivity of the highly paid specialists using the network.
Intermittent network outages began occurring at some point but proved elusive to
troubleshoot. Finally, the data was trended and experts noticed a pattern that seemed
to center around the afternoon of the third Thursday of every month. This monthly
pattern eventually led them and the suppliers to uncover the fact that the telephone

carrier was performing routine line maintenance for disaster recovery on the third
Thursday of every month. The switching involved with this maintenance was
producing just enough line interference to affect the sensitivity of their encrypted
lines. The maintenance was consequently modified for less interference and the
problem never recurred. The analyzing and trending of the metrics data led them
directly to the root cause and eventual resolution of the problem.
3: Proactive Approach
World-class infrastructures employ a proactive approach to identify and prevent
potential problems impacting performance and availability. Marginal infrastructures
are forced to take a more reactive approach toward problem solving. For example, a
proactive strategy may use the analysis of meaningful utilization metrics to predict
when an out-of-capacity condition is likely to occur. Armed with this information,
technicians can then decide whether to add more capacity or to reschedule or reduce
workloads to prevent outages or performance problems. A reactive approach allows
no time to identify these conditions and make proactive decisions. Other performance
and capacity indicators such as memory swaps and bandwidths can similarly be
analyzed to proactively identify and prevent bottlenecks and outages.
4: Call Management
Well-managed infrastructures do far more than simply log problems in their call
centers. Technicians in these environments track, age, and escalate calls; they pinpoint
root causes; solicit customer feedback; and analyze trends, patterns, and relationships
between problems, changes, and other factors. Call management is really the
cornerstone of a sound problem-management philosophy. Marginal infrastructure
organizations often don't see or understand the integrated relationships between
problem management and those of change management, capacity management,
performance management, and service-request management.
5: Employee Empowerment
Many firms are reluctant to empower their employees. Some managers believe that
only supervisory-level staff is capable of making technical decisions or personnel
judgments. Others may feel employees are not capable or well-trained enough to be
decisive. Still others fear that granting employees more authority will result in
requests for more compensation. Progressive infrastructure organizations tend to
mitigate these empowerment issues with communication, training, empathy, and
support.
The issue of management support can be the key in determining an employee
empowerment program's success or failure. Employees are bound to make an
incorrect judgment on occasion when empowered with new decision-making
authorities. Supportive managers who show the interest and time to understand and
help the employees as regards their decision-making, can help to a great extent in
developing and honing employee-talent and self-confidence.
6: Well-Developed Standards

Standards can apply to virtually every aspect of IT, from versions of desktop software
to mainframe operating systems; from dataset-naming conventions to password
construction; from email systems to network protocols. When properly applied,
standards can simplify maintenance, shorten deployment times, and ultimately reduce
costs. But, proper application requires that standards be thoroughly developed and
effectively enforced. Many shops develop only those standards that are simple to
deploy or easy to enforce. In this sense, these companies are similar to those that
collect only the metrics that are simple to implement or easy to measure. In both
cases, the real value of these activities is compromised.
World-class infrastructures, on the other hand, usually identify all stakeholders of a
particular standard prior to its development, and invite them to participate in its
design, implementation, and enforcement. These stakeholders typically consist of
representatives of user groups most affected by the standard, including internal and
external customers and suppliers. Their participation goes a long way toward ensuring
buy-in, support, and compliance to the standards.
7: Well-Trained Employees
World-class infrastructures invest heavily in training their staffs. This training may
take the form of on-the-job-training, onsite classroom instruction, offsite courses at
local facilities, out-of town classes, or bringing vendors in to conduct customized
training. Top-rated infrastructures often employ a buddy system, or a one-on-one
mentoring program in which experienced senior-level technicians share both the
content and the application of their knowledge to junior-level staff. Cross-training
between infrastructure departments such as operations and networks, or system
administration and database administration, is another effective method used by well-
managed organizations to optimize employee training.
8: Well-Equipped Employees
An attribute of world-class infrastructures that parallels well-trained employees is
ensuring those employees are also well-equipped. Less-sophisticated shops sometimes
sacrifice hardware and software tools in the name of cost savings. This is often a false
economy that can drag out problem-resolution times, extend the length of outages,
occasionally duplicate work efforts, and eventually frustrate key staff members to the
point that they seek employment elsewhere.
While budget items need to be justified and managed, top-rated infrastructures usually
find the means to provide the tools that their technicians need. These tools may
include pagers, cell phones, personal assistant palmtops, laptops, at-home high-speed
network connections, and specialized software for desktops.
9: Robust Processes
World-class infrastructures know how to develop, design, and maintain robust
processes. A robust process is one that is developed with a clear objective as to what
the process is intended to do—change management, capacity planning, disaster
recovery, etc. This is sometimes referred to as the effectiveness of a process, and can
be quantified with service metrics. After development, a robust process is then
designed with more detail and contains specific inputs and outputs. The process is

streamlined at this point to remove any non–value-added steps that may have crept
into the design. Robust processes designed like this are easily maintained to keep
them current and compatible with other infrastructure changes.
10: Effective Use of Technology
Managers of highly regarded infrastructures understand that the best application of
technology, especially automation, comes only after processes have been designed
with robustness and then streamlined. Mediocre shops often rush to automate prior to
streamlining. This almost inevitably leads to chaos brought about by processes that
are highly automated, but poorly designed.
11: Integrated Systems-Management Functions
World-class infrastructures go beyond just having well-designed systems management
functions. The leaders of these organizations know how to select and integrate any
number of these disciplines. There are several pairs of these processes that naturally
go together. Problem management and change management is one pair;
performance/tuning and capacity planning are another, with storage management and
disaster recovery a third.
Inference
All of these 11 criteria represent characteristics most often found in robust, world-
class infrastructures. Not every criterion may be exhibited to its fullest extent, but
having the majority of these attributes present in some manner typically puts an
infrastructure on the path to excellence.
STRATEGIES FOR DEVELOPING

WORLD-CLASS ORGANIZATIONS
World-class organizations do not emerge by chance. People build them by design.
They are created by visions, nurtured by ambitions and perfected by actions. For
reaching the zenith of excellence, companies need to carefully formulate strategies
and deliberately implement them so as to arrive to the desired destination.
The following are some of the few strategies, which are instrumental in developing
best of the best companies.
1. Knowledge of global economy:
The first requirement to venture into this journey is to acquire knowledge and
understanding of global business environment. It is like swimming - it is one thing to
swim in a swimming pool, and another to swim in deep sea. As such, any business,
which wants to be a global player, must know the nature of the global marketplace. A
sound knowledge of different countries and their economies, managing cross cultural

teams, predicting global market upheavals and getting prepared for forecasting them
are some of the things which a business firm must understand, without which it will
be impossible to succeed.
2. Obsession with quality:
A lot has been said about quality and thousands of volumes have been written about
this subject, but no matter how much is said and written quality can never be over
emphasized. Quality is a dynamic state associated with products, service, people
processes, and environments that meet or exceed customer's expectations. In today's
market place, quality is one of the greatest weapons which determine winning.
Apex companies, no matter what business they're into, are fanatically obsessed with
improving the quality of their products and services. They continuously work on
improving the quality of their products and services, which indeed is one of the keys
to attain a universal status.
3. Developing the most professional employees:
The quality of an organisation depends on the quality of its people and their level of
professionalism. One of the best practices of winning organizations is developing the
most professional employees through continuous training and development. One of
the biggest misconceptions commonly held by mediocre organizations is that training
and development of employees is a non-productive cost.
However, experience proves otherwise. One study by Robert Zemesky of the

National Centre of Educational Quality and the Workforce found that education
produced productivity gains twice as big as did investment in plant or machinery.
Although corporate training and education programmes do not come cheap, an ill-
trained workforce can prove even more expensive. A very healthy trend pioneered by
world-class organizations like Motorola, Solectron, and Microsoft, is to have their
own training and development centres, which they call universities. These universities
not only train their employees but also award them with formal certificates and
degrees, which helps in enhancing employees' self esteem as well as their
employability.
4. Innovation and reinvention:
In his book Mission Possible: Becoming World-Class Organizations While

There's Still Time, Ken Blanchard defined a world class organisation as "an
organisation that is working effectively, not just on one curve, or the other, but on
both at the same time and learning from them." The two curves described in this
definition refer to both the present as well as the future improvement initiatives
undertaken by a company. Needless to say that a company should strive to
continuously improve its present performance.
But, at the same time, it should also use deliberate strategies so as to reinvent the
organisation in the time to come. Thus, the end of the present declining curve gets

connected to a new curve of new products, services, systems and structures which
propel the organisation to growth. In a dynamic business environment, a reinvention
exercise is the only way to avoid demise and obtain eternal organizational life, as
practiced by most of the top companies in the world.
5. .World Class Leadership:
The success of every world class organisation without fail can be traced back to a
visible or invisible leader who possessed world class leadership qualities. Honda
Motors, the Japanese automaker, is one of the companies gifted with world class
leadership. Of all the Japanese automakers, Honda Motors has achieved excellent
international presence due to the company's dynamic leadership. Honda defined
products with the intention of gaining success not only in Japan, but across the world,
Honda was the first Japanese company which started an international manufacturing
facility in Belgium by manufacturing mopeds in that country.
Today, Honda Motors has earned itself a formidable placing in the auto-making
industry. This success of Honda Motors can be directly traced to the visionary
leadership of Mr. Honda, the founder of the company. The often repeated and usually
mentioned theme "globalization" of today's business world is not just a fashionable
word but a hard reality which businesses throughout the world, whether small or big,
must learn to live with.
And to successfully live with this reality, companies must raise their standards from
domestic to international levels; strive for excellence not only in their own industry
but in other industries as well. This stature and standard is known as world class
standard. For any organisation to be truly called a world class organisation, it must
have the desire, will and above all, the strategies for reaching that position.
Thorough knowledge of the global economy, fanatic obsession with quality increased
focus on employee professionalism, practice self reinvention, and above all
possession or acquisition of global leaders are some of the strategies which can give
birth to thoroughbred companies, rightly known as world class organizations.

GOOD TO GREAT COMPANIES

While considering the enduring great companies, one sees substantial evidence that
their leaders follow ‘good to great’ frame work i.e. they do so as entrepreneurs in
small, early stage enterprises trying to get off the ground, rather than as CEO’s trying
to transform established companies from good to great.
In an ironic twist, one sees Good to Great not as a sequel to Built to Last, but as a
prequel. To create sustained great results, as a start-up or an established organization,
they follow the following path to go from great results to an enduring great company.
Established Good to Sustaine Built Endurin

Company Great d to g Great
+ Concepts + Compan
or Start-up Great Last y
Results Conce
pts
To make shift from a company with sustained great results to an enduring great
company of iconic stature, apply the central concept of Built to Last: Discover your
core value and purpose beyond just making money (core ideology) and combine this
with the dynamic of preserve the core/stimulate progress.
CORE IDEOLOGY: The Extra Dimension of Enduring Greatness
The “Extra Dimension” that helps elevate the companies to the elite status of an
enduring great company is a vital dimension for making the transition from good to

great to built to last. That extra dimension is a guiding philosophy or a “core

ideology” which consists of core value and a core purpose (reason for being beyond
just making money). This resembles the principle – never perfectly followed, but
always present as an inspiring standard and an answer to the question of why it is
important that we exist.
Enduring great companies don’t exist merely to deliver returns to shareholders.

Indeed, in truly great company, profits and cash flow become like blood and water to
a healthy body: They are absolutely essential for life, but they are not the very point
of life. An important caveat to concept of core values is that there are no specific
“right’ core values for becoming an enduring great company. No matter what core
value you propose, we found an enduring great company that does not have that
specific core value. A company need not have passion for its customers (Sony didn’t),
or respect for the individual (Disney didn’t), or quality (Wal-Mart didn’t), or social
responsibility (Ford didn’t) in order to become enduring and great. This is one of the
paradoxical findings – core values are essential for enduring greatness, but it doesn’t
seem to matter what those core values are. The point is not what core values you
have, but that you have core values at all, that you know what they are, that you build
them explicitly into the organization, and that you preserve them over time.
This notion of preserving your core values and purpose while their business strategies
and operating practices endlessly adapt to a changing world. This is the magical
combination of “preserve the core and stimulate progress”
PRESERVE ==è Core Values CHANGE ==è Cultural and Operating Practices
Core Purpose Specific Goals and Strategies
To create an enduring great company requires all the key concepts, tied together and
applied consistently over time. Further more, if you ever stop doing any one of the key
ideas, your organization will inevitably slide backward toward mediocrity. It’s much
easier to become great than to remain great. Ultimately, the consistent application of
both studies, one building upon the other, gives the best chance for creating greatness
that lasts.
WHY GREATNESS?
“Greatness doesn’t depend on size.” It is no harder to build something great than to

build something good. It might be statistically rarer to reach greatness, but it does not
require more suffering than perpetuating mediocrity. Indeed, if some of the
comparison companies in our study are any indication, it involves less suffering, and
perhaps, lesser work. The beauty and power of the research findings is that they can
radically simplify our lives while increasing our effectiveness. There is great solace in
the simple fact of clarity – about what is vital, and what is not.

So, the question of ‘why greatness?’ is almost a claptrap question. If one is engaged in
work that you love and care about, for whatever reason, then the question needs no
answer. The question is not, “Why Greatness?” but “How Greatness?” But “What
work makes you feel compelled to try to create greatness? If you have to ask the
question, “why should we try to make it great? Isn’t success enough? Then you’re
probably engaged in the wrong line of work.
CRITERIA FOR SELECTION AS A GOOD –TO-GREAT COMPANY
The company shows a pattern of “good” performance punctuated by a transition

point, after which it shifts to “great’ performance. Experts define “great” performance
as a cumulative total stock return of atleast 3 times the general market for the period
from the point of transition through fifteen years. Represented as {T + 15}. Experts
define ‘good” performances as a cumulative total stock return no better than 1.25
times the general stock market for the fifteen years prior to the point of transition.
Additionally, the ratio of the cumulative stock return for the fifteen years after the
point of transition divided by the ratio of the cumulative stock return for the fifteen
years prior to the point of transition must exceed 3.
The good to great performance pattern must be a company shift, not an industry
event. In other words, the company must demonstrate the pattern not only relative to
the market, but also relative to its industry.
DIRECT COMPARISION SELECTION PROCESS
Here, the objective is to find the companies that could have done what the good-to-
great companies did, but failed to do so, and then ask: “What was different?” A
systematic and methodical collection and scoring of all obvious comparison
candidates for each good-to-great company, using the following six criteria.
Business Fit: at the time of transition, the comparison candidate had similar products
and service as the good-to-great company.
Size Fit: At the time of transition, the comparison candidate was the same basic size
as the good-to-great company. We applied a consistent scoring matrix based upon the
ratio of the comparison candidate revenues divided by the good-to-great company
revenues at time of transition.
Age Fit: The comparison candidate was founded in the same era as the good-to-great
company. We applied a consistent scoring matrix based upon a calculated age ratio of
the comparison candidate to the good-to-great company.
Stock Chart Fit: The cumulative stock returns to market chart of the comparison
candidate roughly tracks the pattern of the good-to-great company until the point of

transition, at which point the trajectories of the two companies separate, with the
good-to-great company outperforming the comparison candidate from that point on.
Conservative Test: At the time of transition, the comparison candidate was more
successful than the good-to-great company-larger and more profitable, with a stronger
market position and better reputation. This is a critical test, stacking the deck against
our good-to-great companies.
Face Validity: This takes into account two factors: (1) The comparison candidate is
in a similar line of business at the time of selection into the study, and (2) the
comparison candidate is less successful than the good-to-great company at the time of
selection into the study.
Thus, face validity and conservative test work together: Conservative test ensures that
the comparison company was stronger than the good-to-great company at the year of
the good-to-great company’s transition and weaker than the good-to-great company at
the time of selection into the study.
Each comparison candidate is scored on each of the above six criteria on a scale of 1
to 4.
4 = The comparison candidate fits the criteria extremely well – there are no issues or
qualifiers.
3 = The comparison candidate fits the criteria reasonably well – there are minor issues
or qualifiers that keep it from getting a 4.
2= The comparison candidate fits the criteria poorly – there are major issues and
concerns.
1= The comparison candidate fails the criteria.

ETHICAL ISSUES AT GOOD COMPANIES

The recent studies have proved that more people believe in the fact that ethics help in
increasing the growth rate of the economy in the country. The same applies to
companies i.e. more ethical an organization, higher is the tendency of company being
a great organization
The million dollar question is ARE BUSINESSMEN ETHICAL?
Many businessmen do not follow basic ethics. There has been prevalence of unethical
practices in business today. As is too well known, most businessmen are lured by the
fast- buck culture, that is, to earn as much money and as far as possible. Ends justify
the means for these businessmen
Case – Study:
IMAGE OF TISCO
….adds “Laloo Prasad Yadav is my friend, and right in the beginning I made it clear
what friendship stood for. I said to him: ‘You have your rules and we have ours. We
will do everything by your rules. We will not ask you to give a sales tax benefit here,
or some short cut there. In return, don’t ask us for any underhand thing and break our
value system.’ And to his credit, he has never made an indecent proposal. He asked us
to clean up Patna, which we do as our social responsibility. He wanted a college to be
built in Samastipur. We did that since we encourage education. He asked us to built a

Tata ward for children in Patna hospital, which was in a very pitiable condition and
we did that. Now we are doing hospital in Hazaribagh. Laloo told somebody: ‘Going
for anything illegal to Tatas is like going to an Udupi restaurant and asking for a
tandoori chicken’. Sometimes people come to Jamshedpur with expectations and then
find in a week longer than the Tatas won’t give money and they give up. If I find of
any officers has done underhand things, than I sack him instantly.” says Irani. No
wonder Irani has earned the sobriquet from some leading politicians of Jharkhand -
“the prime minister of Jharkhand”.
When enquired as to the truth of these assertions from a prominent businessman in

Jamshedpur, who is not “burdened” by any code of conduct, he said: “Of course it is
true. That is why TISCO take three months to get something done from the
government in matters which takes me three telephone calls.”
CODE OF CONDUCT IN TATA – which make it world class organization
For the Company For the Employee
To supply goods and services of the Conduct themselves professionally with

highest quality standards to ensure total honesty, integrity, as well as high moral
satisfaction of customers. and ethical standards. To be fair and
transparent and to be seen so by a third
party.
To engage only in activities beneficial Not derive any benefit from any
to the national interest of the country information about the company or group
they operate in. which constitutes inside information.
To be fully transparent in accounting Report to the management any actual or
and financial reporting standards. possible violation of the code or an event
that the employee becomes aware of, that
could affect the business or reputation of
the employee’s company or any other
company belonging to the Tata group.
To fully strive for the establishment and Permits employee to pursue an active role
support of a competitive open-market in civic or political affairs as long as it
economy and to abhor unfair trade does not affect the business or interest of
practice. the company or the group.
To neither give nor take any illegal
payment, remuneration, gift, donation,
or comparable benefit to obtain business
or favors.
To comply with all regulations
regarding preservation of the
environment.
To be a good corporate citizen and to
actively assist in the improvement of the

life of the community with the objective

of making it self-reliant. These social
activities are regarded as an integral part
of their business plans and not optional.
To co-operate and share physical,
human, and management resources with
other companies belonging to the Tata
group so long as this does not adversely
affects its business interests and
shareholder value.
LARSEN & TOUBRO LTD.
Larsen & Toubro as a World Class Organization
L & T i.e. Larsen & Toubro Limited was incorporated on 7th February 1946. L & T,
a construction, engineering and cement major is among the largest and most reputed
companies in India’s private sector. L & T carries on business as civil, mechanical,
electrical, chemical & agricultural engineers, as manufacturers, as importers &
exporters and as contractors. The company represents a large number of overseas
manufacturers, notably manufacturers of tractors, agricultural machinery, dairy
machinery, film cooling towers & general industrial & engineering plants and coal
mining machinery.

Its reputation is based on a strong customer orientation, the technological

sophistication that characterizes its products and projects, and an impressive record of
achievements over six decades.
L & T has initiated a transformation process to ensure that it emerges as a

knowledge-based premium conglomerate in the shortest possible time. Its portfolio
consists of an Engineering core, and thrust areas- Cement, Information Technology
and Communications.
The Engineering core compromises Engineering & Construction projects,

Construction, Heavy Engineering and Electrical & Electronics. L & T has achieved
dominant domestic leadership in each of these industrial and infrastructure related
businesses – where technology, innovation and process know-how are critical success
factors.
L & T is India’s cement leader, with over 15 million tones per year of installed
capacity. Each of its plants incorporates state-of-the-art technology. L& T Cement has
strong brand equity and commands a price premium in most markets due to its
consistency in making high quality products.
In IT, L & T’s fully-owned IT subsidiary, L & T Information Technology limited has
identified 5 thrust areas for the global market place – financial services,
manufacturing, services, communication and utilities – with a common e-commerce
and ERP focus.
L & T commenced operations as a partnership firm in 1938 set up by 2 immigrant

Danish engineers, Henning Holck-Larsen and S K Toubro. These engineers were
representatives of SL Smidth & Company. L & T was subsequently incorporated as
an Indian company in 1946 and went public in 1951. Over the years the company has
made significant progress in its core business of engineering and construction.

Cement is a relative recent diversification. L & T is a professionally managed

company with no specific identification to any group. Reliance group is the single
largest private stakeholder. FLS together hold the major stake in the company. The
CEO is Mr. A. M. Naik, who is credited with imparting new focus and shareholder
value orientation to the company.
It focuses on introducing new products, branding and out sourcing. It follows

following three methods
 Introduce new products in existing markets.

 Introduce new products in new markets.
 Introduce existing products in new markets.
 Enhance sales of existing product in existing market
Liberalization & Globalization
Liberalization brought an awakening in L & T. according to L & T; globalization is a

very good thing for India and Indian customers. Change in economic policies in 1991
had a great impact on L & T. but L & T was able to face the global challenge. It stood
erect even after change in economic policies, though at the beginning it had face few
shocks but then soon it came out of the depression.
Due to liberalization and globalization, L & T had to face severe competition from
Multi National companies. According to change in policies, custom duties and
reduction in various taxes, the price of MNC products came down or went below the
price of L & T. MNC had improved technology so they could afford low cost. L & T,
however, managed to come out of this storm. Before liberalization workers used to
put less effort, after liberalization they started putting more efforts.
PERSONALITY ETHIC CHART
FOLLOWED BY L & T SINCE 1930
MANIPULATIVE
SKILLS AND
INFLUENCING
TECHNIQUES
ACTION TO
GET WHAT WE
WANT FROM
OTHERS
PUBLIC
IMAGE
QUICK CAREER
DEVELOPMENT
SUCCESS
.
Personality ethic solves relationship problems temporarily, the cronic problems

resurface time and again
Future outlook
Looking ahead, the company is well positioned to utilize any upturn in the domestic
economy. The government of India has committed significant resources to the road
sector. Besides being an opportunity for the E&C division of the company, these
programmes will increase consumption of cement and create demand for construction
equipment. There are opportunities in the development of network of cross-country
pipelines, modernization and up gradation of existing refineries as also in oil and gas
exploration and production fields. This augurs well for the company. The
government’s incentive to privatize defence sector has opened up unique
opportunities for the company. Aerospace and nuclear energy are other areas of
potential growth considering the skill sets of the company.
Meanwhile, the successful accreditation of the company as supplier of critical

equipment to various global oil majors and EPC companies has opened up interesting
avenues for expanding the company’s heavy engineering business overseas. The

company’s track record is successful execution of power projects in Oman and

Srilanka and many construction projects in Middle East would place the company at
an advantage to pursue international opportunities further. They expect, over the next
3 to 5 years, the company’s revenues to grow from its international business.The
company continues to discharge its responsibilities towards society ant the
environment through various programs to promote community health and education.
They are committed to contribute their share of profit in the nation-building program
through excellence, technology, innovations and total customer satisfaction.
"I am a firm believer in the power of HR as a vehicle for change; a tool for transformation.
HR is an integral part of a successful organization’s strategy", said A.M. Naik, Chairman
and Managing Director of Larsen & Toubro Ltd. He was delivering the keynote address at
the launch of the BMA Annual HR conference on "CEO’s perspective: The HR Agenda"
organized by the Bombay Management Association (BMA), India’s premier Management
Association.
Naik said that the organizations in India, that wish to excel in the global arena must
seamlessly weave HR along with their Vision statement. "A world-class HR department is a
primary enabler in transforming a company from Good to Great." Citing L&T as an example,
Naik said that the future of any company hinged on, amongst others, its ability to attract and
retain people, managing expectations, evolving performance parameters and a robust
appraisal and reward system. "In L&T’s quest to become an Indian MNC, we have had to
face some of the toughest challenges in our entire history of existence. Towards this end, we
realized that HR and IT are the two weapons, two critical enterprise enablers."
Infosys Technologies Ltd. is a leading provider of IT consulting and implementation

services to the world’s finest organizations. Infosys provides complete end-to-end
solutions for technology driven business transformation initiatives.- as partners to
conceptualize and realize technology driven business transformation initiatives. With
over 27,000 employees worldwide, they use a low-risk Global Delivery Model
(GDM) to accelerate schedules with a high degree of time and cost predictability. The
GDM of Infosys had made global strategic sourcing a reality today, and forms the
very core of Infosys’ needs to respond to clients on-time and on-budget. By doing
work where it makes more sense, it brings faster, superior quality solutions at
minimum risk and optimum cost.

Infosys provides solutions for a dynamic environment where business and technology
strategies converge. Their approach focuses on new ways of business combining IT
innovation and adoption while also leveraging an organization's current IT assets.
They work with large global corporations and new generation technology companies -
to build new products or services and to implement prudent business and technology
strategies in today's dynamic digital environment.
Infosys combines world-class business and IT consultancy services with domain and
technical expertise. Their ability to bundle services, brings integrated sourcing to their
clients, ensuring that they get the right mix of technology and services appropriate to
their requirements.
Services include:
 IT and business consultancy
 Product Development
 Business Process Outsourcing
 Infrastructure Management
 Systems Integration and Applications Management
Keeping pace with technology
Infosys invests extensively in technology & domain research to understand how

technology impacts your business as a whole. With expertise, experience and strategic
relationships with the world’s leading companies and partnerships with industry
leaders allows Infosys to stay ahead of the technology curve.
Superior Quality. Excellence in Delivery. Optimum Cost.
Infosys was the first organization in the world to attain the now globally recognized
CMM Level 5 IT Services quality standard (i.e. superior quality and excellent
delivery at the optimum cost).Assignments are managed to comply with this standard,
bringing the level of projects on time and on budget to 96%, 70% more than the
industry average.
World-Class, Secure Infrastructure
Infosys works through of a backbone of resilient, secure infrastructure spread across

multiple locations. Communication links through a number of service providers via
several paths ensures that the clients’ business is safe under any eventuality.
Ethos of Corporate Excellence

Infosys is applauded for its excellence in corporate governance, consistently voted as

the leading employer and trusted by globally recognized brands, and setting high
standards has always been the Infosys’ way of doing business.
Infrastructure
With sustained infrastructure investments over the years, we have created a world
class knowledge-networked work environment from where our employees provide
high quality solutions to clients. These investments enhance employee productivity
and reduce engagement risk for our clients.
A multi-dimensional approach, planned to support growth and technology

advancement, ensures that the solutions we architect for our clients are built in a most
productive and effective manner. Different elements of Infosys' infrastructure
comprise:
The following:
- Development center campuses in India
- Global development centers
- Client connectivity infrastructure
- Information infrastructure
Geographical Extent Worldwide
Today, the business of the company has approximately 21,00 employees worldwide in
every major geography around the world.


Alliances
Infosys has selective strategic alliances and go-to-market partnerships. These
alliances are based on complementary capabilities that bring value to clients.

Hiring
Infosys conducts hiring programmes the world over and in specific, the
following geographic locations/regions in the world:
 The United States of America
 Canada
 Europe
 India
 Asia Pacific

THE ADITYA BIRLA GROUP
Background
The roots of the Aditya Birla Group date back to the 19th century in the picturesque
town of Pilani, set amidst the Rajasthan desert. It was here that Seth Shiv Narayan
Birla started trading in cotton, laying the foundation for the House of Birlas. Through
India's arduous times of the 1850s, the Birla business expanded rapidly.
Introduction :
World leader in viscose staple fiber
Among Asia's largest integrated aluminium producers
Fastest-growing copper company in Asia
The 8th largest cement producer in the world
Fourth largest producer of carbon black
World's largest single-location palm oil refinery
World's third largest producer of insulators
The major companies of the Group are Grasim, Hindalco, Indian Rayon, Indo Gulf
and Indal, are among India's leading corporates.
The Aditya Birla Group is one of India's largest business houses. Global in vision,
rooted in Indian values, the Group is driven by a performance ethic pegged on value
creation for its multiple stakeholders.
Worldwide Extent
The Group’s operations span 40 companies, straddling 18 countries; to name a few —

Thailand, Malaysia, Indonesia, Egypt, Canada, Australia and China. Its revenues are
in excess of US$ 6 billion and it has a market capitalization of US$ 5 billion. The
Group has 72,000 committed employees and over 700,000 shareholders.
The Aditya Birla Group is a dominant player in all its areas of operations:
:: Aluminum, copper, cement, viscose staple fibre, carbon black, viscose filament
yarn, fertilizers, insulators, sponge iron, chemicals
:: Branded apparels, insurance and asset management, software, telecom
Global perspective
:: A world leader in Viscose Staple Fibre (VSF)

:: A non-ferrous metals powerhouse:
:: One of Asia's largest integrated aluminium producers, and among the most
cost-efficient
:: Fastest-growing copper company in Asia. Global-sized and globally

competitive
:: World's largest single location producer of palm oil
:: Third largest producer of insulators
:: Fourth largest producer of carbon black
:: Eighth largest producer of cement, and the largest in a single geography
Beyond business
A value-based, caring corporate citizen, the Aditya Birla Group inherently believes in
the trusteeship concept of management. Part of the Group’s profits is ploughed back
into meaningful welfare-driven initiatives that make a qualitative difference to the
lives of marginalized people. These activities, important to the Aditya Birla Group are
carried out under the aegis of the Aditya Birla Center for community initiatives and
rural development, which is spearheaded by Mrs. Rajeshree Birla.
Vision: To be a premium conglomerate with a clear business focus at each business

level.
Mission: To pursue the creation of value for our customers, shareholders, employees
and society at large.
Training programmes
They are classified as:
: Multi-tier programmes aimed at addressing the needs of individuals at different

: levels in the Group and in different functions. Under this category are programmes
for Outstanding Leadership, Emerging Leadership, Young Leaders and General
Management, etc.
: Functional programmes to develop skills in sales and marketing, supply chain,
: manufacturing and finance.
: Role-specific programmes aimed at developing skills for specific assignments
: such as unit heads, function and department heads.
: Competency-based programmes which focus on building individual skills and
: enhancing personal and team effectivness.
: Business-focused programmes to address business needs, issues and practices
: specific to a particular business.
: Outreach programmes, such as performance management programmes and team-
: building workshops, are conducted on-site.
Group Management Trainee Scheme

The Group has always been home to great leaders --

passionate professionals with a razor sharp focus and
a far-sighted vision. They believe in the combination
of leadership of experience and leadership of youth. The average age to occupy
leadership positions within the Group has come down because of significant
investments in inducting and developing young talent across the Group.
The Group Management Trainee scheme (GMT) is a way of ensuring that the
organisation is bottom driven through a bunch of young, enthusiastic, contemporary
leaders. The GMT programme focuses on sharpening already fine skills, by taking the
trainees through a systematic process of learning and development. GMTs have been
champions of change within the Group. They bring youthful exuberance, new
knowledge and a new perspective of the world to come, which will take the Aditya
Birla Group forward.
The GMTs get the opportunity to experience the practical aspects of our diverse
businesses. The programme includes one year of rotational training, cross business
exposure and corporate function exposure, ensuring that the GMTs gather rich
experience within the first year of joining. At each stage of training, a mentor is
assigned to the GMT. The role of the mentors, most of whom have been trained in
mentoring, is to interact with the GMT on a regular basis, act as a friend and guide
and also facilitate his/her overall development.
"I firmly believe that our people provide us with the cutting edge. For
sustainable success, their performance orientation and customer focus is
imperative. In my view, only where people grow, the organisation grows." —
Mr. Kumar Mangalam Birla, Chairman, The Aditya Birla Group
Driving the growth of the Aditya Birla Group are 72,000 committed employees,
spread over 18 countries across the globe. The diversity of location, language and
culture blends seamlessly into a common work ethos which hinges on fostering
excellence, recognizing and rewarding entrepreneurship.
They believe in empowerment, delegation and calculated risk taking. Their ongoing
endeavour is to create an organizational ambience where talent can bloom. To do so,
they strive to make the workplace a source of creativity, innovation and one that
makes work meaningful.
They ensure that all of their policies, forward-looking

initiatives and goals are fully communicated to all employees
and that they understand and relate to these. Their commitment
to their people is reflected in the sense of belonging and pride every employee feels
towards the Group and the passion and commitment they bring to their work.
Their human resource policies have won recognition and the Group has been
nominated among the best employers in India, in two separate surveys conducted by
Business World and Business Today in 2003.

The Group has been ranked 20th in a study conducted by Hewitt Associates on the
'Best Employers in India
The Group has been ranked 16th in India's first ever survey of 'Great places to
work in', by Business World magazine. The Group's joint venture (JV) concern,
Birla Sun Life Insurance Co Ltd, was ranked ninth in the same study.
Gyanodaya, their Management Learning Centre is ISO 9001:2000 certified
75 per cent of their employees are below 40 years of age
Their attrition rate is 1.9 per cent
STATISTICAL FINDINGS & VIEWPOINTS

World-Class HR Organizations Spend Less yet Deliver More
World-class HR organizations spend 27 percent less per employee than their peers
and operate with 35 percent fewer staff, according to 2004 research into world-class
HR performance. At the same time, world-class companies deliver greater value
through better alignment with corporate strategy and lower rates of voluntary and
involuntary terminations. While technology and outsourcing are key factors in
achieving world-class performance in HR, world-class companies succeed without
spending more money in these areas. World-class companies actually spend nearly the
same amount that median companies do on both technology and outsourcing. Instead,
world-class HR organizations achieve their improved efficiency and effectiveness
through holistic efforts including the use of technology to successfully minimize
complexity, reduce upstream error rates, and integrate end-to-end HR processes.
World-class organizations also use outsourcing on a more selective basis, and more
strategically, as a way to more efficiently scale discretionary services
Gap between Median and World Class Continues to Expand
World-class HR organizations spend $1,390/employee annually, 27 percent less

than median companies, which spend $1,892/employee. Both world-class and median
companies dedicate more than half of their HR spending to labor costs, but lower
spending on labor makes up the lion's share of the gap between world-class and
median HR organizations. World-class companies spend 31 percent less than median
companies on labor ($742/employee versus $1075), and rely on 35 percent fewer HR
staff per 1000 employees. HR costs per employee have increased for both world-class
and median companies since 1996. But, world-class companies have seen an increase
of only 12 percent, compared to 21 percent for median companies. So, the gap
between world-class and median is clearly growing larger.
World-class organizations are also significantly more effective than their median
peers, Senior HR executives at all world-class organizations tie business strategy to
people strategy, compared to only 60 percent of median companies. World-class
organizations are 87 percent more likely to have articulated an explicitly stated
workforce strategy. World-class HR organizations also manage their workforces
much more effectively, and as a result see 61 percent fewer voluntary terminations
and 43 percent fewer involuntary terminations. The gap between world-class and
median HR performance has always been there. But it's widened significantly over the
years. Companies that are median performers today have reason to be concerned.
World-class organizations are spending less on HR, driving to significantly lower
costs in both transactional and employee life cycle processes while providing higher
strategic value to their companies. It's also easy to understand how basics like lower
staff turnover rates can help make companies with world-class HR organizations more
stable and more effective, and provide a real competitive advantage."
Holistic Approach Key to World-Class Success

Overall, there is no single silver bullet to achieving world-class performance, and a

holistic approach is needed. Thus, we conclude that to reduce overall costs and
particularly labor costs, HR organizations need to implement best practices and
process improvements to better leverage their technology and outsourcing
investments. In fact, world-class HR organizations spend almost exactly the same
amount per employee as median companies on technology, and 10 percent less per
employee on outsourcing. But, world-class organizations use technology and
outsourcing more effectively than median companies, to enable improvements in
other areas.
Several factors clearly contribute to the success of world-class HR organizations at
improving their efficiency and effectiveness. World-class HR organizations
significantly reduce their complexity in many areas. For example, they utilize 69
percent fewer health & welfare plans and 46 percent fewer compensation plans than
median companies. They also significantly cut upstream error rates in key processes
such as health and welfare administration, compensation administration, and
employee data management. These reduced error rates generate significant
downstream benefits. For example, world-class organizations spend 42 percent less
than median organizations on payroll administration.
World-class HR organizations also focus on process integration, dramatically
streamlining their operations and using technology more effectively. Median
companies are significantly less likely to integrate these areas. While world-class
organizations spend less than median companies on outsourcing, it represents a
significantly larger percentage of their overall spend. World-class organizations also
use outsourcing much more strategically, as a way to execute with greater flexibility
and scale discretionary services while avoiding internal disruptions. For example,
world-class companies spend 55 percent less than median companies outsourcing
staffing and workforce development, while they spend 25 percent more than median
companies outsourcing total rewards administration.
There's this misconception that to cut costs in HR you eliminate staff and replace
them with technology and outsourcing support. But, the numbers simply don't bear
this out. The path to world-class performance is more complex. It's not how much
you spend, but how you utilize technology and outsourcing that matters. Virtually
across the board, world-class companies use technology as an enabler and facilitator,
taking care to embed best practices into systems and design them to integrate and
streamline business processes. This takes time and energy, but it pays off long-term.
In outsourcing, world-class companies take a similarly thoughtful approach. They
target very carefully, identifying individual processes or sub-processes where cost
savings and efficiencies can be generated.

CONCLUSION
Any organisation wanting to be world class in the near future needs actioned,
visionary and purposeful leadership allied to trustworthy, value-adding employees.
The world-class organisation of the future must focus on developing its people and
the environment in which they work. The concept of the `learning organisation' which
strives continually to develop its people and processes will be an accepted philosophy
of all competitive organizations in the future. The next step is for organizations to
develop not only their current employees, but also the next generation of employees,
through improvements in general social and environmental conditions.
World-class organizations in the new millennium will have to focus outwardly and
involve their suppliers and customers in a strategic alliance that accepts social and
environmental responsibilities, thereby maintaining a cohesive, positive society and
producing the best possible conditions for business growth. Organizations of the
future will not be able to expand into new markets and win market share without
entrusting their employees with the purposeful use of the organization’s resources.
The organisation that is socially and environmentally responsible and attracts the most
valuable knowledge workers will gain a competitive advantage by winning business
from other less responsible and less trusting organizations.
World-class organizations of the future will gain competitive advantage from
providing a stable social order. In contrast, those organizations which have not
contributed to these needs will find themselves trying to operate in an environment
likely to be disturbed by unrest, violence and anarchy. As social structures erode
elsewhere the organisation that has assumed a socially responsible stance will gain a
competitive advantage by obtaining the dedication of productive employees and
customer loyalty in a secure environment. The most enlightened organizations will
actively promote the worldwide mutual benefit of providing efficient and effective
social goods and infrastructure that supports the operation of global markets for
consumer goods.
Hey, take a leaf out of the books of our very own Mumbai Dabbawalas who’ve
achieved Six-sigma and are now classified as a World-Class Organization!


HRM Project Rajni Shah NMTYBMS Tahaab Rais

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NARSEE MONJEE COLLEGE OF COMMERCE & ECONOMICS

SUBJECT: HUMAN RESOURCES MANAGEMENT

INDEX: TABLE OF CONTENTS

HUMAN RESOURCES MANAGEMENT: A PRIMARY ENABLER PAGE 5

WORLD-CLASS INFRASTRUCTURE .VS. MEDIOCRE INFRASTRUCTURE PAGE 8

CHARACTERISTICS OF A WORLD-CLASS ORGANIZATION PAGE 9

STRATEGIES FOR DEVELOPING A WORLD-CLASS ORGANIZATION PAGE 13

‘GOOD TO GREAT’ COMPANIES PAGE 16

ETHICAL ISSUES AT GOOD COMPANIES PAGE 20

LARSEN & TOUBRO LTD. PAGE 22

INFOSYS TECHNOLOGIES LTD. PAGE 26

THE ADITYA BIRLA GROUP PAGE 30

STATISTICAL FINDINGS & VIEWPOINTS PAGE 35

HUMAN RESOURCES MGMT. 2 PROF. RAJNI SHAH

Global competition is characterized by networks that bind countries, the phenomenon

What Is A World Class Organisation?

Certain Basic Traits of a World Class Organisation:

1. Best of the best:

The second most important trait of a world-class organisation is the importance it

HUMAN RESOURCES MGMT. 3 PROF. RAJNI SHAH

3. Relentless focus on customer satisfaction:

Here, we would like to mention a case of a Malaysian company called "First

HUMAN RESOURCES MGMT. 4 PROF. RAJNI SHAH

HUMAN RESOURCES MANAGEMENT:

The future of any company hinges on its ability to:

* Attract & Retain Talent

* Evolve Performance Parameters with respect to key result areas

* Robust Performance Appraisal & Reward System

* Competency Mapping for building Leadership

* Train & Upgrade skill sets

Let us elaborate on some of these points:

Attraction & Retention:

HUMAN RESOURCES MGMT. 5 PROF. RAJNI SHAH

The Company should create an environment, which provides growth opportunities to

Organizations need to promote a performance driven culture with a differential

HR needs to understand the complexities of each business unit and should be

HUMAN RESOURCES MGMT. 6 PROF. RAJNI SHAH

track promises facilitating a meaningful dialogue between superiors and subordinates

Succession planning, Competency Mapping, Training & Grooming:

Today's executives are tomorrow's business leaders. Succession planning is a must in

What the Future beholds:

All this requires a strong, knowledgeable and innovative HR Department, which

HUMAN RESOURCES MGMT. 7 PROF. RAJNI SHAH

World-Class Infrastructure Mediocre Infrastructure

1. Totally supported by executive 1. Little or no support from executive

2. Meaningful metrics analyzed, not just 2. Convenient metrics (not necessarily

3. Proactive approach to problem solving, 3. Reactive approach to problem solving,

5. Employees empowered to make 5. Employees empowered very little, or not

7. Employees well trained 7. Employees poorly trained

8. Employees well equipped 8. Employees poorly equipped

9. Processes are designed with robustness 9. Processes designed with little or no

10. Technology used effectively to 10. Technology applied inappropriately, if at

11. Integration of systems-management 11. Little or no integration of systems-

HUMAN RESOURCES MGMT. 8 PROF. RAJNI SHAH

Executive support is one of the primary prerequisites for implementing a world-class

HUMAN RESOURCES MGMT. 9 PROF. RAJNI SHAH

HUMAN RESOURCES MGMT. 10 PROF. RAJNI SHAH

HUMAN RESOURCES MGMT. 11 PROF. RAJNI SHAH

STRATEGIES FOR DEVELOPING

1. Knowledge of global economy:

HUMAN RESOURCES MGMT. 12 PROF. RAJNI SHAH

2. Obsession with quality:

3. Developing the most professional employees: