HR City

Karan Dixit
Karan Dixit
Head HR &
Vice
President
(Corporate
),ISMT
Limited
HR Strategies in Place in your Company

ISMT Ltd. is a leading manufacturer of carbon/alloy and bearing steels, seamless tubes and tube based products. The companys corporate office is located at Pune, India. It has a steel producing unit at Jejuri and two tube making units at Ahmednagar and Baramati; all three units are within a radius of 200 KMS around Pune. In addition, the company also has a tube finishing (cold finishing) factory at Storfors, Sweden and sales offices across Europe and the USA.
ISMT Ltd. is a global leader in the production of Engineering Steels and Precision Seamless Tubes. ISMT Ltd. serves a worldwide customer base.
ISMT Ltd. is an integrated manufacturer with a captive power plant that empowers it with full supply chain control. With over three decades of manufacturing expertise,
ISMT Ltds competitive advantage lies in its highly qualified and potent Human Capital and its unrelenting focus on improving quality, being engineering driven and application oriented.
With 475,000 MT of seamless tube and 350,000 MT of steel making capacity, ISMT Ltd. manufactures a very diverse range of products that find applications across industries like Power, Oil & Gas, Automotives, Hydraulic Cylinders and Line Pipes, Drilling & Mining, Construction and General Engineering etc.
You may never see ISMT Ltds products, but they touch your life everyday...
HR strategies of ISMT Ltd.
The objective of the HR policy at ISMT Ltd is to create and maintain a young, self- rejuvenating, motivated, lean, cost-efficient and performance oriented organization.
The HR strategy to achieve the objective is -
1)Indentify, nurture and retain key talent
2)Reward Merit
3)Reward/ Encourage learning, team work, creativity, innovation and Entrepreneurship.
4)Create an equitable and fair salary structure.
5)Transparency in work culture.

Today trends seen in HR

Following trends are being seen in HR-
1.HR as Change Agent
2.Skill / competency mapping through proper HR initiativesas highly skilled and knowledge based jobs are increasing.
3.Role of HR in multi skill development.
4.HR to address people centered issues.
5.New practices like six sigma.
6.Human Resources Outsourcing
7.Creating and Enabling culture.
8.HR has started working on retention strategies.

Difficulties in Planning Human Resource in an ever changing business

1.Resistance by Employers and Employees
2.Uncertainties due to absenteeism, seasonal employment, labour turnover, changing technologies, market conditions making HRP less reliable.
3.Inadequacies of Information systems- Information system regarding human resources has not yet fully been developed due to industries giving low status to personnel department and less importance given to HRP. Further the reliable data and information about the economy, other industries, labour market, trends in human resources are not available.

Relationship of HR with the CEOs

As HR professionals increasingly strive to become strategic partners with top management, their relationship with CEOs takes on new significance.
Focusing on the basic rules of Business is what would drive HR from backroom to boardroom-
  • Productivity: HRs focus on productivity with getting the basics right will be key to drive the organizational success
  • Bottom-line orientation: Tie everything to Business objectives.
  • Turn performance management into productivity enhancement;
  • Turn training to capability building
  • Compensation management to talent pool cost
  • Hiring to quality of hiring
  • HR operations to Shared Services
  • Understanding the Business deeply: HR might be making everything measurable and building fantastic Cost benefit Analysis (CBA). But if the organisational operational objectives are not aligned with what HR are presenting, its bound to get knocked off in the first instance. What gives HR credibility is astute understanding of Business facts.
  • Employee advocacy: Business view is a must for HR however how HR relays the employee perspective to management is equally important. Can HR provide this fair and firm view without losing sight of business is the question which wins trust and confidence of the management?
Finally you have to be best at your core function. All the above is achievable if you have build your credibility by delivering and over-achieving your objectives.

Biggest Pain Point


  • Talent and leadership are becoming even scarcer resources than ever before.
  • Developing and Retaining the Best Employees.
  • Improving leadership development.
  • Managing work life balance.
  • To become a learning organization and transforming HR into a strategic partner
Motivating Employees with Rewards

We have many options for motivating employees to perform well in our organization. For example, job rotation and job enrichment bring in additional challenges and experience. We also motivate our employees by offering training courses that enhance their skills and knowledge. The other ways of motivating employees are-

1)Raise in Salary
2)Performance Bonus
3)&Profit Sharing
4)Employee recognistion like Employee of the Month .

Different Qualities looking while hiring people


While hiring a person, three things are most important- Knowledge, skills and attributes. There are certain other qualities which can offset job experience and qualification requirments :
1.Positive Attitude
2.Confidence
3.Enthusiasm
4.Compatible Personality
5.Industry Awareness
6.Lateral Leadership
7.Education
8.Communication Skills
9.Lifestyle Stability
10.Appearance and Dress
11.Open Minded Flexibility
12.Quick Wit
13.Determination
14.Courteous Manners
15.Genuine Sincerity

Some of the leadership development programs being held & results obtained

Following leadership programs are held on a regular basis-
  • 360 Degree feedback- Through this mechanism, our company gathers data about an individuals performance and abilities. The information is collected from co- workers including peers, subordinates, managers and costumers. Personal development plan is prepared on the basis of the feedback.
  • Development Assignments- Indentified high potential employees are trained at various functions of the company through job rotations and cross functional assignments. This helps the employees in acquiring new leadership skills outside their own areas of expertise and experience.
  • Culture Workshops- Through the workshops ISMT, fortifies the culture of the organisation amongst the participants. This helps to instill better communication skills through sustained interaction amongst themselves and identify with the values and processes involved in leadership development.
  • Interaction for leadership development- This includes one to one interaction in actual on-the job work climate for better sharing of knowledge and comradeship amongst individuals. Mentoring forms an integral part of the exercise.
  • Leadership skills training- This helps in acclimatizing the next rung with the leadership roles and to groom them through experience.
  • Formal and informal Feedback mechanism-
  • Systematic Learning Process- This helps the individuals to gain the overall view of the company and its diverse and complex systems, businesses, operations and processes. It is a continuous process and helps to improve the individual and also the system.

Identifying Leaders promoting them to the next level

The identification of a potential candidate is done thorough an online assessment system. Information on performance is taken from the appraisal review process and the KRAs on the job while the information on behavior is taken from multiple sources.
The company conducts an annual review of all the persons who are capable for occupying leadership positions is the organization. The review is conducted by a committee consisting of top management.
The output of this review is to promote a person who has the requisite experience, skills, knowledge and qualification of taking us that assignment.
Any vacancy in the organization in management cadre triggers a promotion review. The guiding philosophy for conducting such review is the managements first priority to promote a person internally.
The input information to this review is provided by the HR to the committee.

Recruiting & retaining the diverse and ambitious Generation Y. Are they really ambitious

Recruitment of Generation Y
1. Clarity regarding Organisation vision and mission
2. Clarity regarding Job Role.
3.Salaries and benefits as per market standards.
4. Clarity regarding career progression
5. Providing convenient place of posting
6.Providing Equal opportunities for employment

Retaining Generation Y

1.Creating a warm, fun, friendly environment to work in
2.Socializing with employees
3.Rewarding them for performance
4.Providing flex time as long as the work gets done
5.Giving them a voice that is heard and valued
6.Opportunity for mentoring others.
7.Sharing in the company success
8.Work life balance
9.Regular Recognitions
10.Motivating by challenge and a collaborative environment

Attrition Management: Retaining vs. fresh hiring

Recruiting new hires can be costly for companies in terms of time and money.
Employee turnover can be a headache for companies of all sizes. Regardless of economic conditions or the unemployment rate, the days of employees working their entire lives for a single company are long gone. According to All Business, employees will changes jobs every three to four years on average and may change careers three times in their lives.
Cost of Hiring
There are both hard and soft costs associated with employee turnover. Some costs are fixed and others are variable, depending on the position and required skill set. The cost to hire a low-skilled hourly worker is approximately half of the annual salary. As skill levels and positions increase, so does the cost of replacement. Replacing a C-level executive can cost three to five times the positions annual salary
Other Consideration
In addition to hard costs, such as advertising the position, interviewing, recruitment and related fees, there are soft costs. These include costs such as lost productivity and training. Typically, a new employee takes weeks or even months to fully learn the role and all of its associated duties. A task that takes a tenured employee 10 minutes may likely take your new hire two hours.
Retention Challenges
With the anticipated growing turnover rate, retaining good employees becomes an ongoing challenge. Calculate the value of your employees to your company. Every employee in successful companies generates more revenue than their respective salaries. Net worth of sales representatives and managers can be fives times greater than their annual salaries, according to JDA Professional Services. Once you understand the value of your employees to your company, you can make informed decisions on how much to spend to retain them.
Workplace Culture
Creating the right workplace culture is key to retaining good employees. Compensation is not always the primary motivator to employees to remain in their jobs. According to Entrepreneur.com, there are three factors that contribute to employees perceptions that a company is a great place to work--trust, pride and joy. Employees must trust management, be able to take pride in their work and enjoy their co-workers.
Keeping the Best
One of the easiest ways to avoid the high cost of turnover and keep your best employees is to hire the right people from the start. Avoid the urge to fill a vacant position quickly simply because its vacant. Take time to do a thorough search and dedicate the necessary time to the interview process. Involve other managers and department heads in the interview. This is particularly important in small companies in which employees tend to work more closely.

Attract good people, retain the better people and advance the best people

PROVIDE COMPETITIVE BENEFITS
In ordinary economic times, benefits are not always the chief consideration for job-seekers. During shaky economic situations, competitive benefits are far more important to workers. Companies unwilling to match or at least approximate the salaries offered elsewhere are quite likely going to lose their best talent to their better-paying competitors. Besides salary, potential or current employees also weigh holiday time, life insurance, retirement plans, and more when looking for a job. It is wise for internal HR departments to keep a close eye on the benefits that competitors are paying and adjust what they offer accordingly.
OFFER REGULAR PROMOTION OPPORTUNITIES
At our company we have proper career planning and promotion policy for all the employees. At the time of appraisal the Plant Head and Chief Operating Officer of the company tries to figure out the potential leaders through skill gap analysis. This helps us to fill the vacancies through internal resource. Job rotation is done for the employees at lower level. Job Rotation helps the employees to get experience in the all department and acquire new skills. This gives new
GIVE OPPORTUNITIES FOR CAREER ADVANCEMENT
Skilled employees are looking for ways to better themselves through better education and training, and businesses can attract and retain the best talent if they help their employees improve their skills. Sending employees to training courses on a regular basis and providing tuition reimbursement will attract good workers and keep them around for years to come.
VALUE EMPLOYEE INPUT
At ISMT Ltd we give our employees several platforms to give their suggestions and inputs. We have several suggestion schemes and open forums where the employees are given opportunity to give suggestions and inputs. Also, we have started an initiative for young managers called “Coffee with CEO”.
AIM FOR DIVERSITY
Younger workers are especially looking for a diverse workplace because of their experience growing up in a diverse world. Having people from a variety of different backgrounds will attract young talented workers.
Training and Development
We have our training center based at Jeuri. The training center identifies the training needs through Performance Management System and imparts the training for skill enhancement.




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