Management

THE GREAT
HUMAN RESOURCE
TURNAROUND
After Studying this chapter, the students will learn the following
topics:
Learning •
Objectives • Making Human Resource Business

• Global Human Resource: A
Resource People.
EperghlgTrends
Pg~adigm$hift
Paradigm Shift Two:

.• ~e~radigh,Shift Three: Erol1'1,?u~iness
Success, ·.
Copyright © 2010. Himalaya Publishing House. All rights reserved.
• Paradigm Shift Four: From Talent

Management. ... .
.paradigrTIShift Five; From Cost Centre
• Paradigm Shifts Six: Human
Development ResourCin£,1.
Sekhri, Arun. <i>Human Resource Planning and Audit</i>, Himalaya Publishing House, 2010. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/hec-ebooks/detail.action?docID=618267.
Created from hec-ebooks on 2019-10-22 00:04:03.
CHAPTER ONE
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THE GREArr HUMAN RESOURCE TURNAROUND:
LEVEL ONE: HOLISTIC APPROACH TO HUMAN RESOURCE

HELP ASHOK LEYLAND AND OTHERS TO TURNAROUND 3-5
LEVEL TWO: HUMAN RESOURCE COMPETENCIES NEED TO BE 6-8
BUSINESSS DRIVEN
LEVEL THREE: MAKING HUMAN RESOURCE BUSINESS SAVVY 9 - 12
LEVEL FOUR: PARADIGM SHIFT: EMERGING TRENDS FOR HUMAN 13 - 39
RESOURCE.
LEVEL ONE d
HOLISTIC APPROACH TO HUMAN RESOURCE HELP ASHOK

LEYLAND AND OTHERS TO TURNAROUND
THE NEWS WE CAN USE:
"A holistic approach to human resource management, processes and optimal utilisation of resource
have contributed to the turnaround at Ashok leyland's Hosur-I plant and ensured sustained increase
in profits during the current year," said J.N. Amrolia, Executive Director, Human Resource, Ashok
leyland Ltd. The plant, which had, till six years ago, been plagued by labour problems, is set to
sustain its profit, and witness increase in turnover during the current year.
"The turnaround has been achieved through strategic initiatives involving changes at every level
of management, increased employee involvement and structured communication exercises, removal
of non-performers, building collaborative union initiatives, competency building and employee recognition
mechanisms. Production processes had been revamped, optimising supply chain and rationalizing
resource and cost reduction.
These had contributed to significant enhancement in indicators of improvement such as production,
productivity, adherence to targets, positive relationship with workmen and profitability and above all
a total involvement of Human Resource in setting up corporate goals and their achievement,"
he said. Amrolia was addressing a workshop on competitiveness through quality, productivity and
human resource organised by the Employers Federation of Southern India.
G.S. Ramesh, Vice President-HRD, Hyundai Motor India Ltd, said that among the challenges
faced by the company was the bonding needed to be achieved between people from diverse cultures.
This had been achieved through cross-cultural exercises to enhance awareness and creating a
common platform of "Hyundaian" culture. Mechanisms for continuous communication, consultation
and participative management had been put in place, he said.
Bhushen Raina, Managing Director, who made the turnaround pOSSible, changed the way
Tinplate Company of India Limited (TCll of Tata group) used to do business. In twelve years,
renewed vision of the company's aim to become an industry leader in value creation, servicing
packaging needs and creating a greener future. Sales/ production increased to 125%, exports touched
28% and employees' strength reduced to 1715 through initiatives in leadership development, innovative
manufacturing and export strategies and the participation of human resource function in organizational
development activities at grassroot levels.
Such news, involving human resource function and its participation and contribution to corporate
turnaround - a positive reversal in the performance of a company or the overall market are real but
rare.
Do we need a human resource-turnaround? The issue we face is pretty serious and real
but rare. Are we getting warning signals? Yes! So what are we up to? How are we planning
to face and resolve the issue?
Human Resource Planning and Audit
EARLY WARNING SIGNALS OF DECLINE:

"Most ailing organizations have developed a functional blindness of their own defects. They are
not suffering because thEW can not solve their problems but because they can't see their problems"
says John W Gardner (On Leadership 1990) Despite Gardner's statement, it is genuinely difficult
to discern and diagnose company's problems before they threaten the progress or even the very
existence of an enterprise.
A 2003 Mercer survey of 200 CFOS' showed that 92% believed human capital management has
a great impact on customer satisfaction, 82% believed that effective management of human capital
has a positive impact on profitability and 72% believed that human capital practices impact innovation
and new product development. We face, for a change, some serious questions:
1. This is good news for Human Resource professionals. The world is seemingly ready to accept
everything the profession has to offer. But is everyone in the profession ready to deliver? No!
2. Is human resource like an ailing organization, the existence of which is under threat from its own
profile and contents? Yes!
3. Has Human Resource been able to move out from of its 'Back Office' image? No!
4. Are these warning signals real? Yes!
5. Is Human Resource at a crossroads, and shall either have to face up to the challenges
confronting organizations or becomes a marginal contributor to corporate success? Yes!
6. Do we really need a turnaround in human resource? Yes! Then; What are our compulsions for
a human resource turnaround?
COMPULSIONS FOR HUMAN RESOURCE TURNAROUND:
1. Operating Without Clear Strategic Plan:
WithOtlt -the strategic plan, the human resource is almost guaranteed to have an unfocused
resource and multi-directional activities. The result will be a number of failures, some that are going
to be seen as dumb ideas. A survey conducted by Society for Human Resource Management and
Balance Scorecard Collaborative, showed that only 34% Human Resource respondents indicated
that their executives viewed Human Resource as a strategic partner.
2. Poor Communication:
Often a plan is devised by the executive group and then it is not well communicated to the
organization. Hence, the execution is flawed leading to lack of success.
3. Refusal to Shift Paradigm with Changing Market Conditions:
Once a programme is underway in development, it generates a momentum all of its own and
people/companies are hesitant to make changes, particularly if one has ownership in it. What was a
good idea at the start becomes a dumb idea in a changed economy.
4. Absolute Lack of Business Knowledge:
Human Resource professionals neither understand and speak the language of business nor do
they contribute to the conversation around the strategy table.
The Great Human Resource Turnaround
5. Pride and Arrogance getting in the Way:

People are generally scared of Human Resource department because they take decisions
•
based on ''who is right" not ''what is right". Human Resource means 'power and authority' and people
see this as being misused.
6. Human Resource Delivery: Human Resource People don't run an extra mile
for their People:
Human resource professional must deliver human resource services seamlessly, if they don't,
how can they ever hope to make strategic contribution to the business of an o"rganisation?
7. Care about People: It is not everyone's Cup of Tea:
Human Resource professionals who care about people are able to make strategic decisions that
are based on full understanding of how it will impact people.
"Human Resource! What is so great about human resource? Anyone can manage Human
Resource, even a graduate can handle Human Resource department, don't worry about Human
Resource ... " A CEO of a pharma company was heard telling his visitors from another company; This
is unfortunate, real but not rare, that right from top to bottom, from CEO down to an officer, all of them
not only feel but believe that anyone in the hierarchy can manage Human Resource.
SIMPLY SPEAKING ...

People are attracted, selected and stay with professions that fit their self-image. How do
we change the human resource image in people's mind? This is a huge undertaking for any
organisation or profession. Let us get ahead with our 'case study' in the next level to understand
the nuances of change of image and emerging trends in human resource.
• . LEVEl. TWO
HUMAN RESOURCE COMPETENCIES NEED TO BE BUSINESS

DRIVEN
CASE STUDY: GEETA KAPUR & MANISH PURl:
Geeta Kapur, 38, Director - Human Resource, was looking at the absence and late coming
record of the managerial and the unionized staff of the corporate office and the factory of National
Petro Product Limited where she had joined 5 years ago. She was a post graduate in management
from Indian Institute of Management. She had an excellent track record of performance in human
resource and administration at various establishments like Pepsi, Britannia, Wipro and Larsen &
Toubro. She was known as a successful trouble shooter and managing disagreements in her field.
At National Petro Product, She had tried very hard to motivate the staff to be responsible and
get them all in line with some success to reduce the absenteeism, late coming, drunkenness and
mental lethargy. The average monthly rate of late coming and absenteeism stood at 14 and 19
percent respectively.
What caught her attention was the record of Manish Puri whose absence and late coming graph
was steadily increasing beyond the average rate of absenteeism in the organization.
Manish Puri is the officer in charge of documentation section of the Production Planning Department
with nearly twelve years of service both in the corporate office and the factory. His overall performance
was just satisfactory. He was relatively an introvert and showed little interest. His problem was that
he regularly planned and used his sick leave with a variety of short absences. Each of such
absence, one by one, seemed legitimate. As the officer in charge of documentation, his nuisance
value was very high as it meant that some one else had to search the concerned files and the
documents whenever he remained absent.
Geeta Kapur decided to talk to Manish and asked her secretary to send a message to Manish
to meet her in her office.
A few minutes later Manish walked-in to Geeta's cabin.
"Manish, can we talk about you today first thing this morning", Geeta asked him looking at him
curiously.
"Yes miss" he replied softly.
"How are you feeling lately?"
"Fine, absolutely fine"
"No problem at home".
"Everyone has got problems" Manish replied with his eyes now staring at Geeta Kapur.
'What kind of problems do you have"?
"I got no problems", Manish replied defiantly.
"I thought, may be you have some problems" Geeta replied.
"Why"?
"Because I notice that your sick leave has been increasing since last year and this year it is
-
very bad".
"I am entitled to take sick leave. I have twelve years of service to my credit".
"You are entitled to sick leave only if you are sick. But you seem to be sick so often"? Geeta
asked him, this time with little sternness in her voice.
"I can't help if I am sick".
"Well, your frequent absence causes us problems".
"I do my work alright, don't I"?
"When you are present, you do. But you have already missed thirty-two days this year".
"I have earned the leave and I am entitled to take it also" Manish replied, trying to make his point
clear to Geeta.
"You are entitled to use the sick leave only when you are sick".
"I am sick whenever I am absent".
"Are you sure that there is nothing at home which makes you sick so often" Geeta asked him.
"I don't know what you mean, Ms. Kapur, I get sick because I am not as healthy as others are"
Manish raised his voice.
"Your record, which is with me right now, shows that you are absent every fourth day without
any prior permission of your superiors" Geeta told him.
"Isn't that what sick leave is for and to let me stay at home when I am sick, without losing my
pay."
"But, you and couple of others in this company are the only privileged ones who fall sick so
often" Geeta retorted back to Manish.
"That is what I mean. Others get sick too. And when they get sick, they stay at home. I don't
stay at home unless I am sick. I have worked for this company for twelve years and my record is
good" Manish told Geeta tauntingly.

"Well, your record is not good at all and I would like to see it improves fast"
"I can't help when I am sick. My work record is good with this company. You cannot get rid of
me because I am sick little more than others who are lucky to be healthier" Manish told Geeta dryly.
"I did not say that we are going to dismiss you, I only want your record of absence to improve"
Geeta reassured him.
"Why are you putting this kind of pressure on me because I get sick more than others? I do my
best. I cannot help if I am sick"
"Man ish, I am not getting rid of you. The only thing which I want from you is that you must
improve your attendance"
"I will try Ms. Kapur, but this is not ..the way to call me alone here and then threaten me of dire
consequences with termination of my services" Manish told her rudely. .
- "Look, Manish you are putting the words in my mouth. I never told you that I will terminate your
services. For last 30 minutes, I have been driving it hard to put some sense in your mind that it is
high time that you improve your record of absenteeism fast before it is too late. The company shall
take action against you only when it is convinced that you have failed to improve yourself beyond
doubt. Have you now understood what I wanted to tell you" Geeta asked Manish with suspicion.
"I have understood all of your intentions. I always thought that you were a very considerate
manager unlike others. But now I know that you are as good or bad as others are. I shall fight out
your intentions to get rid of me and I shall ensure that you even do not call me again in your cabin
and give threats like this. Just wait and watch" Manish suddenly got up and left her cabin without
waiting for Geeta to react.
Geeta looked at his record once again, shook her head and wondered as to why she could not
convince Manish. She was feeling miserable that she failed. Was it because she lacked skills to
handle Manish or was it the absence of strategic planning or was it a sheer lack of her counselling
skills or she did not clearly see the objective of meeting Manish or she thought it would be a cake-
walk to crack a grade six officer or she just took a casual decision to speak to Manish at the spur
of the moment and did not work out her strategies before Manish came in or she did not collect
strategic information about Manish or she did not give a pushing start to the conversation with Manish
to support her case or was it a too small a case to be managed at her level or she did not realize
that the conversation with Manish was getting out of her control and was turning meaningless or she
was not business like and allowed Manish to duck every warning and caution she gave him or
Manish was just impossible and she gave up to his non-cooperative and negative attitude or she did
not act street smart and was not diplomatic in her conversation with him or perhaps she did not want
a solution to Manish's increasing absenteeism and waitedior the termination of his services by
default or she simply thought that Manish would take her advice seriously and sincerely and improve
his record of absenteeism? The reason could be anyone of these or all of these together. If nothing
else, Geeta could have been businesslike to convey to Manish to improve his score or perish.
SIMPLY SPEAKING ...

The conversation of Geeta with Manish is a real life story of a high profile director of
human resource who left National Petro Products (names changed to protect the identify) a
few months ago. Manish continuous to enjoy his job with no change in his record of absenteeism
and late coming.

The story represents scores of Human Resource planners and professionals who are
satisfied with their level of mediocrity and their competencies, performance metrics and attitude,
are neither strategic nor are they business driven. This may be one of the several reasons why
we don't see many of them making to the top as chief executive officers and managing
directors of corporate houses.
Managing Manish alone was not enough. Geeta had to be business driven in her
competencies and skills of managing people.
LEVEL THREE
rl
-
MAKING HUMAN RESOURCE BUSINESS SAVVY
HUMAN RESOURCE NEEDS TO LOOK AT ITSELF MORE AS A BUSINESS:
The human resource function today needs to look at itself much more as a business, because
that is how executives are looking at it and expecting it to operate. Researchers at the University Of
Southern California Marshall School of Business propose a new business model for human resource
that will make it a strategic partner.
Edward E. Lawler III and Susan Albers Mohrman of the Center for Effective Organizations
propose re-conceptualization of human resource as providing three service lines:
1. The first is the basic human resource administrative services and tasks that are involved in
compensating individuals, hiring them, training them, and staffing positions in organization.
2. ThE> ~econd is that of a business partner, that helps business units and general managers
realize their business plans. human resource needs to provide advice and services concerning
organizational development, change management, and the articulation between human resource
management systems and business operations.
3. The third requires human resource to contribute to the organization's strategic direction. In this
role professionals in human resource must understand business strategy and human capital,
and their relationship to organizational capabilities and core competencies to support long-term
success.
A key question is whether individuals who are currently in the human resource function
are capable of filling the business partner and strategic partner roles or not. Many human
resource professionals have never worked outside of human resource and as a result have a limited
understanding of what the business is about and what is the business strategy and human resource
strategy options are.
1. Building Human Resource Business Savvy:
"The human resource function will have to move out of its comfort zone," Lawler states.
"human resource professionals must increase their exposure to business issues and employ
work structures that bring the human resource function together in partnership with the line
units and other functions."
The research suggests that the human resource function has to make the same design choices
as any business about how to organize and deploy resource in order to deliver value to the customer.
"The generalist is close to the customer, representing the human resource function in the business
unit, and is responsible for tailoring and coordinating services provided by other parts of the human
resource organization," said Susan Mohrman.
2. Human Resource at Crossroads:
The research suggests the "Human Resource function is a long way from being a high
value-added strategic and business partner that delivers high-quality transactional services in
a cost-effective manner, and knowledgeable and skilled business and strategic input. Further
it shows that human resource is slow to change"
- Human Resource is at a crossroads, and will either have to face up to the challenges
confronting organizations or become a marginal contributor to corporate success.
3. Human Resource is Responsible for Transformation of some Indian Global

Companies:
Similar views are expressed by Nirmalya Kumar, co-director of Aditya Birla India Centre at
London Business School, who places more emphasis on human resource than marketing. It
does sound a tad surprising.
Asked about the role marketing played in the transformation of Indian companies into global
giants, Kumar says, "Marketing did perform its part, but what really played a key role in the
transformation of these companies was the way they managed their human resource and
global talent." Kumar's conclusion is drawn from research for his latest book, 'India's Global
Powerhouses: How They Are Taking on the World'
"While a Singapore or Dubai (based) company has the capability to manage expatriate
workforce, many Indian companies are still struggling with it.
The' complexity of people management increases when businesses compete at a global level
and successful companies need to effectively manage, engage and align their global workforce,
which becomes exacerbated by geographical distance, time difference and language challenges as
well as (the) demands of local culture, rules and laws, Companies such as Unilever and Nestle SA
have a history of managing a diverse workforce, but many Indian companies do not have the experience
since the big growth story has happened only in the last 10 years. It's a big challenge and it's a
competence that companies will have to learn to become truly global." Kumar adds "Bharat
Forge, Infosys, Essel Propack, Marico, Wipro, Mahindra & Mahindra are a few companies,
among several others, where human resource has been instrumental in transforming these
companies into global power houses".
4. Human Resource People: Have They Lost the Art of Diagnosis? Answer is
"Yes":
Human Resource Professionals have lots of ideas trying to simplify the most complex set of
academic theories, approaches and tools (you will find many of them in preceding chapters too) on
almost every concept. But yet, only four out of ten human resource professionals follow and practice
Human resource planning and practice business driven human resource management in their
organizations. NR Narayana Murthy, the founder Chairman of Infosys Technologies, in his book
"A Better India, A Better World" says "No matter how good an idea is, it has no value unless other
people understand it, embrace it as their own and help you to implement it.. ... That is why we at
Infosys believe in the adage 'In God we trust, everybody else brings data to the table' .... "
Nirmalya Kumar echoes similar belief "Each one of the profiled companies has had interesting
journeys in the road to becoming Indian multinationals. But if I have to pick one, it would be Essel
Propack Ltd, a company unknown to me till early 2006, when I was invited to run a workshop for
them. Essel people were full of ideas. They internalised every such idea which led them to consolidate
their relationship with Proctor & Gamble.
Essel Propack, led by Ashok Goel, is a world leader in laminated tubes with thirty-two per cent
market share and a supplier to consumer goods giants such as Procter and Gamble Co., Unilever
Pic. and L'Oreal SA. This revelation propelled me to find out if there were more companies like Essel
Propack.
The story of Essel's evolution from a one-unit company in Vasind (in Maharashtra) to a global
leader in laminated tubes is the story of evolving with a partner. Essel followed P&G wherever it went,
and like most relationships, (this relationship) evolved through a series of accidents, opportunities and
-
mutual gain." Kumar adds it with flavour.
5. Does Human Resource mean business: Answer is "No":
"Human resource means business" said Yogibudhahnanda, Head of the Human Resource
(name changed to protect the identity) of a well-known temple trust in south India. "We, in human
resource, deliver services to our people. We employ around 2000 people. They get their salaries,
allowances, uniforms, food and other routine benefits in time. Everything here moves as planned.
Almost 200 people are involved in cooking and serving food to the staff in various shifts. Policies and
practices are decided by the trust and any wrong procedure or unjustified policy is immediately
rectified by the head of the trust. Any demand or grievance received from the employees is settled
across the table between the staff and the members of the trust" He looked at us and smiled.
"How do you manage to hire so many people" we asked him." Well, we hire good people who
can be moulded and trained as per our need and who can grow with us. We have four peak and two
lean cycles of hiring throughout the year. The hiring committee consists of six trustees and the human
resource head. Most of our staff is educated up to 12th standard but we take graduates and post
graduates for managerial jobs. We hire from India, USA, UK, Nepal, Sikkim, Singapore and Hongkong.
We deal with diverse workforce. We have job profile for every category of staff. For example, I am
a past student of 11M Banglore and working here for last five years. My role profile is well defined and
I know what is expected out of me. With us, there are no shortcuts in Human Resource. We deliver
in every situation" he smiled again when he finished.
This is real but rare.
6. Human Resource always Get, Keep and Grow Good People? Answer is
"No":
Sam Walton (Wal-Mart) told Colman Peterson, Executive Vice-President of Wal-Mart People
Division 'Why not hire friendly upbeat people?" The final consideration was the ''war for talent". We
adopted a policy on hiring "Get, Keep, Grow" Coleman told journalists in press meet "on days
when my human resource problems appear to be overwhelming, I dissect them into these three
"buckets" for identification and solution. Those human resource professionals who GET good
people, KEEP good people and GROW good people are the real business partners in an
organisation"
"In my forty-eight years in the auto industry, I probably made six hundred speeches about
management. Since my retirement, I have made many more. And I have always said the same thing:
Here is what human resource management is about: Pick good people and set the right priorities"
says Lee lacocca, former CEO of Chrysler & President of Ford Motors, in his latest book 'Where
have all the Leaders gone?'
"In contrast to sophisticated production and manufacturing processes, Bharat Forge's Baba
Kalyani's approach to human resource management (HRM) was decidedly low-tech. Kalyani referred
to HRM as "people systems". We have very simple employee integration process - we constantly
communicate, share information being very open. We involve employees actively in the company's
activities and direction setting, and ensure that there is a strong community involvement on behalf of
the company. The entire human resource team is geared up to achieve this objective" Kalyani told
-Nirmalya Kumar in "India's Global Powerhouses "Moreover, human resource has been our
aggressive business partner in most of process integrations for our global presence. One has to have
a global mindset"
7. Gobal Human Resource-A Competitive Advantage: Are We Ready to Take

Off? Answer is "No"
If one has to compete in global economy, one need to develop a global mindset and this is
expected from every manager in every organization which is competing with the world. It is imperative
that Indian companies and their promoters learn to speed up their processes to integrate and embrace
a multi-cultural work force. Human resource needs to acquire global competencies to face the challenges
for India's global multinationals. "The need to work constantly to open the organization's windows
to the winds of new ideas and a multiethnic workforce ... " Kumar Mangalam Birla, Chairman,
Hindalco Industries Limited continues "it is relatively simple to address cross-border issues
pertaining to technology, finance, markets and products but extremely difficult to cope with
challenges relating to human dimension. Being a true-blue multinational is only partly about
geographic spread. It is more about mind-set that wants to leverage resource seamlessly across
geographic boundaries. It is mind-set that is eager to build unique capabilities to transcend the
barriers of language and cultures to create value. It is about being global in attitudes without
letting go off your roots"
What kind of mind-set is necessary depends up on the competitive position and readiness of a
company. But human resource professionals cannot remain laidback for ever. Let's cross over to the
next level to find out how and why should they shift paradigm to their advantage.
SIMPLY SPEAKING ...

1. What matters for human resource to foster is the alignment and consistency in
understanding the strategy of the company across the whole organization. To meet the
challenges of today, Human resource needs to develop a new mind-set of enquiry and
support centered on the reconciliation of dilemmas, across the human resource spectrum,
and thereby, finally fulfilling its true identity. But it cannot afford not to be the 'strategic
business partner' in business if it has to shed its"back office" image.
2. A new paradigm for human resource is in the offing. Shift the focus from 'ROI' (Return
=
on Intangibles) to "ROI" (Return on Tangibles Investment). Invest in people. They are

the real assets of human resource. There cannot be any strategic human resource
planning without them and their involvement and evolvement. Human resource has to
move out of its comfort zone and contribute to the corporate business module aligning
itself to the business goals of the company.
lEVEL FOUR
-
PARADIGM SHIFT: EMERGING TRENDS FOR HUMAN
RESOURCE
DABUR INDIA: CASE STUDY IN PARADIGM SHIFT:
In 1998, the 114 years old Ayurvedic and pharmaceutical products major Dabur India found
itself at crossroads. In the fiscal 1998, seventy five per cent of Dabur's turnover had come from the
FMCG. Encouraged by this, Dabur family formulated a new vision in 1999 with the aim to make Dabur
India as the best FMCG Company by 2004. In the same year, Dabur planned to increase the group's
turnover to Rs. 20 billion by the end of the financial year 2003-04.
To achieve this goal, Dabur benchmarked itself against other comparable companies such as
Nestle, Colgate-Palmolive and Proctor & Gamble. Dabur found itself lacking in many critical areas.
While its PIE ratio was less than 24, for most of other companies, it was more than 40. The net
working capital of Dabur was whopping Rs. 2.2 billion where it was less than half of it for others.
There were other indicators of an inherently insufficient organization including its operating profit
margins of 12% as compared to Colgate's 16%, P&G's at 18%. The return on net worth was around
24% for Dabur as against HUL's at 52% and Colgate's at 34%.
The Burmans realised that major changes were needed on all organizational fronts. However,
media reports questioned the company's capability to shake off its family oriented work culture.
DABUR HIRED McKINSEY:

Dabur hired Mckinsey in 1994 for organizational restructuring at a cost of Rs. 80 million.
Mckinsey's three-fold recommendations were:
• To concentrate only on few businesses.
• To improve supply chain and procurement processes.
• To reorganize appraisal and compensation systems.
Following these recommendations, many radical changes were made with Surmans' decision to
take a back seat and appoint professionals for running the day to day business.
In November 1998, Dabur appointed Ninu Khanna as the President from Proctor & Gamble.
ASS's Yogi Shriram joined as Vice-president - Human Resource, Deepak Sethi as Vice-President-
Marketing & Sales-Health Care Division and Ravi Shivraman as Vice-President-Finance.
HUMAN RESOURCE TAKES DRIVER'S SEAT TO RESTRUCTURE:

Human resource took the driver'S seat. Yogi Shriram with Ninu Khanna decided to do a complete
overhaul of human resource systems and shift the focus from production oriented human resource
to people centric human resource applications and practices. Khanna extended all the corporate
support to Shriram to do the paradigm shift in human resource:
1. Compensation and its valuations were changed and key performance areas (KPA) were
introduced.
- 2. Performance appraisal and evaluation was based on achievement of targets and key performance
areas.
Human Resource Plannmg and Audit
3. Concepts such as customer satisfaction, increased sales and reduced costs, return on
intangibles and return on investment and the shareholders value were introduced as yardstick
for appraisals.
4. Employees grievance redressal system was introduced followed by suggestion and welfare
oriented schemes.
5. Soft skills, sales and technical training programme were introduced on the basis of training
needs survey.
6. Company hired Noble & Hewitt consultants to formulate ESOP scheme. The scheme was
introduced for the senior people from the next financial year.
Restructuring seemed to have been extremely beneficial for all the employees. Besides improved
morale and reduced employees turnover, the strategic planning, structural and operational changes
in human resource created an overall 'feel good' sentiments' in the company. For the first time in the
history of the company, it was a showcase of human resource.
Dabur's sales increased to Rs. 10.37 billion in 1999-2000 from Rs. 9.14 billion in 1998-99 - an
increase of 13.5.%. Dabur's profits also increased by 53% from Rs. 501 million to Rs. 770 million.
PARADIGM SHIFT AND TRANSFORMATION - DRIVEN BY AGENTS OF CHANGE: THOMAS

KUHN-1962:
In 1962, Thomas Kuhn wrote "The Structure of Scientific Revolution" and fathered, defined and
popularized the concept of "paradigm shift". Kuhn argues that scientific advancement is not evolutionary,
but rather a "series of peaceful interludes punctuated by intellectually violent revolutions", and in
those revolutions "one conceptual world view is replaced by another".
Think of a Paradigm Shift as a change from one way of thinking to another. It's a revolution, a
transformation, a sort of metamorphosis. It just does not happen, but rather it is driven by agents of
change.
For millions of years we have been evolving and will continue to do so.
Change is difficult. Human beings resist change, however, the process has been set in motion
long ago and we will continue to co-create our own experience. Agents of change are driving a new
paradigm shift today. The signs are all around us.
Dabur's transformation did not happen just by itself. The revolution was driven by agents of
change - Burmans, Ninu Khanna, Yogi Shriram and all those who perceived a big picture of Dabur's
growth over the years. At Dabur, human resource did not take the back seat. The metamorphosis
was lead by human resource. Paradigm shift at Dabur was inevitable.
Kuhn states that "awareness is prerequisite to all acceptable changes of theory" It all begins in
the mind of the person. At Dabur, the credit for thinking of change goes to Burmans when they
thought of transformation and decided to take back seat. The paradigm shift from a typical mechanistic
and manufacturing industrial house to an organic, service based, knowledge centred group was
visible at Dabur.
Change will continue. It's the only true constant. Let's move ahead and find out what are the
possible paradigm shifts to impact future of human resource function and professionals.
PARADIGM SHIFT FOR HUMAN RESOURCE:

1. FROM NON-INVOLVEMENT TO INVOLVEMENT
-
The increasingly global nature of competition requires that companies utilize all of their available
resource in order to survive and succeed. This has resulted in an emphasis on the alignment of all
functional activities of the company like finance, marketing, operations, etc. towards the achievement
of strategic business objectives. This will have impact on strategic orientation, core competence, and
involvement of human resource executives in strategic decision-making.
Higher involvement of human resource in organizational strategy is strongly related to perceptions
of human resource effectiveness, and its participation in economic and business decision-making.
This is what is expected from a CEO to involve human resource in strategic business planning
and expect human resource to deliver. But this is not happening because 80% CEOs and human
resource people don't trust each other and critical issue of human resource involvement is neither
discussed nor it is debated as a matter of policy. At micro level, we have some examples to quote
and get comfort out of feel good factor.
Burmans of Dabur had a choice to take the back seat, restructure the organization and not only
involve human resource but gave it the driver's seat to shift the paradigm from zero to hundred
percent involvement to turn Dabur to people centric organisation.
2. FROM STRATEGIC PARTNER TO BUSINESS PARTNER
The support against human resource management to this paradigm shift is:
A. Human Resource is not a small Business Unit (SBU):
• Human resource does not understand the business model.
• Human resource does not speak business language.
• Human resource does not provide return on investment on its own.
• Human resource does not sell its business acumen to others.
• Human resource is a support system.
The support in favour of human resource management for this paradigm shift is:
B. Human Resource has Strategic Inputs:
• Strategic workforce planning.

• Employee engagement.
• Strategic compensation and benefit planning.
• Retention strategies.
• Succession planning.
C. Strategies for Human Resource to Earn a Place in the Board Room:
• Artificial insemination: Inject Non-human resource people into key positions of human
resource.
• Sharpen the Saw: Send human resource people into other departments for short term
aSSignments.
III' Human Resource Plannmg and Audit
• Profit Centre: Make human resource earn its own money and be self sufficient and help
them understand return on investment.
3. FROM BUSINESS PARTNER TO DRIVING BUSINESS SUCCESS:
PERFUMES & PETALS INDIA LIMITED: SUCCESS OF HUMAN RESOURCE IN MERGER
AND ACQUISITION: A CASE STUDY:
Perfumes & Petals India Limited is the manufacturer and the distributor of India's leading
'Chrysanthemum' brand of ladies perfumes and toiletries. The company is listed on Bombay and
National Stock Exchanges. Within a period of five years, the company has made two acquisitions of
firms in the business of manufacturing and distributing ladies perfumes and toiletries.
1. First Acquisition: Some Pitfalls
The first acquisition was made using the traditional approach to due diligence, while the second
used the recommendations made by Human resource expert.
In the first acquisition, the human resource team was not intimately involved in the early stages
of the deal for two reasons:
1. Human resource lacked credibility as a contributing strategic member of the executive deal
team; and
2. "People" issues were not valued as highly as financial issues.
As a result, due diligence from human resource perspective was primarily devoted to discovering
the cost of retirement obligations, which could negate the deal or impact price. Human resource was
not given the mandate for integration until after the deal closed. And, because integration planning did
not begin until well after close, employees of the acquired company did not see themselves as part
of Perfumes and Petals India Limited. As a result they were not a part of the new vision for the
company; they remained uninvolved and separate in their activities and attitudes.
The gathering of data during the integration stage also surfaced cultural, contractual and labour
problems that, had they been identified early, may have affected the terms of the deal. Due to these
and other challenges, the actual integration process dragged on for a period of several years, preventing
the company from realizing the full value of the deal in a timely manner.
2. Second Acquisition: Involvement of Human Resource
Then the most important thing happened.
Before the second acquisition, the Chairman & Managing Director, Dr. Simranjeet Singh,
hired a new Vice-President. Human Resource, Ritu Sanyal, who had experience with acquisitions
and mergers and who knew that Human Resource needed to playa crucial role "early and often" in
the deal to make it successful.
She aggressively leveraged her experience to convince Dr. Singh that human resource should
be involved early and at a much deeper level. She told him, "I know from my experiences that human
resource sitting on the side lines and simply reacting to demands from operations and executive
leadership is a recipe for failure. Human resource needs to be an integral part of the deal team."
Dr. Singh thought about what Sanyal had said. He decided to go ahead with a very different
approach on his next acquisition, which occurred less than a year later.
The Great Human Resou'rce Turnaround
APPROACH OF RITU SANA VAL:

Sanyal's human resource was on the "deal team" from the beginning and participated not only
in the financial due diligence, but used the opportunity to build a human resource integration team and
gather data for purposes of integration planning. For example, based on discussions with Dr. Singh,
her human resource team and some data mining, Sanyal identified the need to look at certain
employment practices and determined the need to conduct a compliance audit covering the target
acquired company's employment practices and benefits programmes.
Sanyal's approach uncovered some issues with the retirement plans and significant problems
regarding the classification of certain exempt employees - a problem Perfumes and Petals was able
to resolve, avoiding potentially huge liabilities and fines. Because such issues were detected early,
they also could be factored into the final purchase price.
Sanyal was happy that the new approach also allowed human resource to accelerate the integration
planning. At the end of Stage 3, when the deal closed, integration plans were ready to be executed
based on the business rationale for the deal - in a manner consistent with the integration of other
systems and programmes.
The plan was in place. Sanyal used this opportunity to communicate to both organizations'
workforces and laid out the plan in a clear and concise manner, managing the expectations of all
employees. The target firm's employees felt, and subsequently acted, like part of Perfumes and
Petals much more quickly. The integration of the second firm was completed well before the integration
of the first firm.
Perfumes and Petals has just completed a very successful acquisition of a third firm. Ritu
Sanyal was promoted as President-Human Resource and named as one of the most successful
human resource professionals by a leading magazine.
Ritu Sanyal added value to the business success of Perfumes and Petals through her four key
competencies
• Understanding the business model.
• Business Literacy.
• Knowledge and understanding of functional areas within Human Resource.
• Skills of a strategic business partner.
4. FROM TALENT MIS-MANAGEMENT TO TALENT MANAGEMENT:

A. Mis-Management: Several Reasons
Retaining talent is a serious concern for organizations. Each time a talented knowledge worker
walks out of the door, they take valuable expertise and organizationa~ knowledge with them. Why?
At the core of the problem is the fact that talent and their managers are often competitors who
are striving to climb the same ladder to higher levels of the organization. As a result, their personal
career interests are in direct conflict with each other.
A key source of this conflict is that people with talent come into organizations eager to learn,
grow and develop their careers as quickly as possible. To do this they seek opportunities that provide
them with real experience that lead to learning and growth. This includes hands-on experience where
they can make mistakes and then figure out how to correct them.
- For managers giving talented juniors stretch opportunities can be risky to their own careers
because managers are ultimately responsible for the work product of their employees. If an individual
fails to deliver or makes a mistake on an important project, it is the manager who must answer for
Human Resource Planning and AudIt
the ensuing problems. Bosses become insecure when they see that their talented juniors are in
demand and get noticed by their super bosses.
And so the safest course for a manager is to err on the side of caution and limit the amount of
responsibility that they give talent until they are absolutely sure that an individual can handle the work.
The result is that talented juniors can end up spending months as apprentices and trainees to people
who are less capable than they but have more experience, or such a talent may be stuck doing
boring jobs that use only half of their brain.
SURAJ KAUL: CASE OF TALENT MIS-MANGEMENT:

Suraj Kaul who completed his MBA-Marketing from IIM-Kolkata, was hired by a prestigious
FMCG firm. He spent the first eight months on the job preparing Power Point Presentations. He
spoke to his boss, Shashi Pradhan, General Manager-Marketing. Shashi told him "Diamonds don't
get a shine unless they go through a tedious diamond shining process. Similarly, you have to rough
it out before you graduate to a more meaningful work". Suraj nodded in affirmation, did not react and
walked out of his cabin. Three months later, Suraj walked into Shashi's cabin and handed him over
his letter of resignation. Shashi asked Suraj his reason for leaving. "Sir, last time you told me that
I am a diamond. I took it seriously. I am joining D'damas." Fifteen days later Suraj left the firm to join
D'damas. Human resource was a spectator throughout and did not even hold the exit interview.
SIMPLY SPEAKING ...

1. Today's human resource is focussed mainly on its professional practice, which, like
accounting and sales, is important but incomplete.
2. People, intellectual capital, and talent are ever more critical to organizational strategic
success. This observation is so common today, that it almost goes without saying.
Digitization, labour shortages, growth through acquisitions, simultaneous downsizing
and expansion, workforce demographic changes, and globalization are just a few of the
trends that have made talent management a top priority.
B. TALENTSHIP & SUSTAINABILlTY: CHALLENGES:
Both the paradigms throw up challenges to human resource professionals. Frustration with the
current state of traditional human resource, and hopes for something more, are reflected in questions
like these:
1. Why is there so little logical connection between our core business management processes
and our talent management processes? Our strategic planning, marketing, operations, and
budgeting processes connect deeply and logically with how we create competitive success and
shareholder value. Yet, at best these processes reflect only general talent goals like headcount,
labour costs or generic human resource programmes. At worst, people issues appear only as
a head count budget at the end of the plan."
2. 'We invest heavily in the latest human resource measurement techniques: human resource
scorecards, human resource financial reports, return on investment on human resource
programmes, and studies of how human resource programmes enhance attitudes, skills, and
abilities. Yet, these human resource measures seldom influence key business decisions, such
as acquisitions and entry into new markets. They provide little insight on how well we compare
with our competitors in creating competitive advantage through people. Can talent measures
truly drive business decisions and investments?
-
3. Ramesh Jhangiani, President of 'Semantic Technologies' puts it well: "I value the hard work of
human resource, but I worry that our organization may not know which talent issues are the
important ones, as against which are mostly tactical. I know how to answer that question in
finance, marketing, and operations. I'm not sure how to do it for talent. I wish human resource
had more to offer here."
4. Human Resource spends a lot of time showing the value of human resource programmes. Yet,
in Finance, Marketing, and Operations we judge their value through results: How much they
help our leaders make better decisions about those resource to drive organizational effectiveness.
Why is human resource different?"
5. The recent surge in human resource measurement systems suggests that many believe the
solution lies in better metrics. Finance, marketing, and engineering appear to· have better ''facts
and figures" than human resource does. Human resource measurement systems typically
strive to show the return on investments in human resource programmes, or apply scorecards
and six-sigma techniques to human resource processes; however, research shows that two
important goals for human resource measurement, (1) to enhance decisions about human
capital and (2) to connect human resource to strategy, are rarely met (Corporate Leadership
Council, 2001; Lawler, etal., 2004).
6. Human resource measurement cannot solve the problem alone, because today's measurement
systems typically adapt measures designed for other resource and apply them to human
resource. For example, six-sigma initiatives often apply accounting-based cost-efficiency or
operational measures. The best result is less costly and quicker the human resource processes,
but not necessarily better talent. At worst, six-sigma processes achieve gains in efficiency
(which is measured) at the expense of significantly reduced quality of talent (which is often
unmeasured).
7. The same pattern emerges when measures designed for finance, marketing, or process
improvement are applied indiscriminately to human resource. Examples such as 'Human
resource accounting,' 'Human resource quality,' 'Human resource branding,' 'Human resource
balanced scorecards' can be useful systems if applied properly (Jamrog & Overholt, 2004), but
they typically fail to address the fundamental challenge of improving talent decisions (Boudreau
& Ramstad, 2003).
C. EMERGING SOLUTIONS:
1. Design Human Talent Supply Chains:
• Replicate leanings from the manufacturing sector.
• Leverage technology to eliminate excessive human intervention.
• Think ''talent mass production"
2. Evolve Talent Development from an Art to a Science:
• Move from skills to attributes.
• Assess online.
- • Train holistically.
• Accredit candidates.
Human Resource Plannmg and Audit
3. Build Infrastructure to Support the Supply Chain

• Career Centres, academies and hostels.
• Share burden of skill development between customers and candidates.
• Reduce total cost of talent sourcing and development.
4. Build Long-Term Partnerships:
Build long term partnerships for critical resource, human talent.
5. Develop Vendors:
Develop few vendors and lock them down with long term contracts. Either invest directly or
indirectly to deepen relationships. Encourage vendor to keep inventory for "JIT" resource.
6. Invest in Process Quality:
Invest in process quality (e.g., R&D in manufacturing sector) for long term gains.
7. Provide Forecast:
Provide forecasts (e.g., production/service schedules) to gain visibility into talent pipeline (by
days trained, assessment scores)
5. FROM COST CENTRE TO PROFIT CENTRE:
1. What is a Profit Centre or a Strategic Business Unit?
A. A Profit Centre or a Strategic Business Unit (SBU) is a business unit within the overall
corporate identity which is distinguishable from other business because it serves a defined external
market where management can conduct strategiC planning in relation to products and markets. When
companies become really large, they are best thought of as being composed of a number of businesses
(SBUs).
B. In the broader domain of strategiC management, the phrase "Strategic Business Unit" came
into use in the 1960s, largely as a result of multi-units of General Electric.
C. These organizational entities are large and homogeneous enough to exercise control over
most strategic factors affecting their performance. They are managed as self contained planning units
for which discrete business strategies can be developed. A Strategic Business Unit can encompass
an entire company, or can simply be a smaller part of a company set up to perform a specific task.
The SBU has its own business strategy, objectives and competitors and these may often be different
from those of the parent company. This approach entails the creation of business units to address
each market in which the company is operating. The organization of the business unit is determined
by the needs of the market.
D. Traditionally, thought of as a cost centre that is just putting an additional burden on the
company's finances and acting more like an administration partner to the acceptance of human
resource as an investment centre, the road has been hard and long, but very fruitful in this span of
time.
E. Companies and CEOs are still in the process of realising importance of accepting the human
resource function as an investment centre, with the investment showing amazing returns over a
period of time.
2. Can Human Resource be a Profit Centre? Answer is "Yes"

Can human resource be a profit centre or a SBU? A place that earns its own revenues, a place
that makes profits just like the sales and marketing divisions, can it be a self-sufficient entity or even
more than that. A tough question to ponder over, but something that is of great importance to the
human resource managers and companies of tomorrow. The answer is 'Yes'
3. Are There Examples to Prove it? Answer is "Yes"
A. Ohara Investment: The human resource development of this non-banking finance company
conducts technical and soft skills training programmes for other corporates.
B. Aura Management Services: The Company is in the business of consulting in Management
Information System and corporate turnaround. The human resource function, apart from giving back
office support to other departments within the company, is actively engaged in content development
research and publishes books and periodicals specially in developing and writing case studies in all
the areas of management such as human resource, marketing, sales, finance, projects, production,
brand management strategic and succession management.
C. Pooja Publications: The human resource department arranges and promotes education and
fairs, exhibitions and conferences & seminars throughout the year.
o.
Ourga Education Society: It runs coaching classes for tenth and twelfth standard students.
The human resource department develops and prepares reading material for distant education
programmes of various universities and business management schools.
E. Brinkman Packaging: The company is engaged in manufacturing stationery and packaging
products. The human resource department has recently got into consulting business in educating and
preparing corporates to introudce the concept of paperless office.
4. Turning a Cost Centre into a Profit Centre:
A. A cost centre may actually provide services that could generate a profit if they were offered
in the open market.
B. But in most corporate environments, cost centres are not expected to generate a profit and
operation costs are treated as overheads. Departments that are typically cost centres include
information technology, human resource, accounting, and others.
C. However, the complacent acceptance that some departments will always be cost centres and
can never generate a profit has changed in some companies. They recognise that cost centres can
turn into profit centres by taking the services they used to automatically provide to the company's
other business units and making those services available for a fee.
o. The company's other business units are then required to pay for the services they used to
get for free. But in return, they are allowed to go outsidie the company and contract with another firm
to provide those services. Likewise, the former cost centre may be allowed to sell its services to
other companies. The expectation is that this free market system will improve performance through
increased competition while increasing profits by turning former cost centres into profit centres.
5. Human Resource should Align Itself with thie Organization's Scorecard:
A. While the hum.an resource profit-centre model sounds promising in that it seems to create a
quantifiable value proposition for the organisation (its own revenue generation), the organisation
needs to think about how this change will impact employees.
Ell· Human Resource Planning and Audit
B. Under this model, human resource will need to manage marketing, sales and financial health,
while managers will have to think about human resource "best" practices and how to buy and apply
~em. .
C. This may not be the most effective use of the organisation's skill sets because managers and
human resource will be required to focus on areas that are outside their core competencies. As a
result, their overall effectiveness may be reduced.
D. Areas of focus for human resource will also shift from needs-based to human resource credit-
based. As a result, employees may be impacted because they will only be able to use human resource
services if their business area has sufficient credits. Further, a company does not want to end up in
a situation where internal departments are competing with each other for human resource and possible
equalization of payments. Again, this would take the organization away from the key objectives and
impact company's employee base.
E. Another potential impact on employees is the fact that items such as non-mandatory training,
health and safety, work-life programs and perquisites may fall by the wayside, affecting morale,
turnover and work-injury claims. This could also have an impact on the recruitment of future employees,
as they would be looking for these key offerings when deciding whether or not to join the organization.
F. A company also needs to look carefully at how profit will be generated using this model, since
it will be simply moving money already in the organisation from one area to another. As a revenue-
generating model, the organization will have to determine if this is a viable solution for the long-term.
G. One could do a great deal to show quantifiable human resource value by looking at a human
resource model that offers a consultative and strategic partnership role with management and align
with the corporation's balanced scorecard. This focusses on numerous stakeholders (employees,
customers and investors) and shows performance on a number of dimensions.
H. Dave Ulrich, in Human Resource Champions, states that for human resource to be a
strategic partner with senior management, it must be equally accountable for all segments of the
balanced scorecard (not just the employee dimension). When it comes to the employee dimension
of the scorecard, he states that human resource needs to show intellectual leadership.
I. David Weiss, in High Impact Human Resource, sees the partnership role as human resource
professionals having meaningful and customer-focused conversations from a business perspective
(and not just a human resource perspective). He states that human resource will be able to deliver
value by integrating and assimilating information about the business; predicting and determining how
this will impact people, and creating people and organizational solutions that will increase the likelihood
that the business will meet customer needs by implementing its strategic objectives.
J. A human resource team can begin building credibility as a strategic partner by understanding
the needs of the business and how this will impact its employee base. They should be sure to provide
important human resource services that improve the lives of employees and allow them to best
service their customers. Also, human resource should work towards intellectual leadership and
understanding of all aspects of employee needs within the organisation. Finally, human resource can
prove its value to the organization's executive team by aligning itself with all components of the
organization's scorecard and regularly tracking and communicating performance.
l1li
6. Steps to Convert Human Resource to a Profit Centre/SBU:
1. Human Resource as a Profit Centre:
Here the human resource department has to compete with similar human resource service
providers to earn revenue.
2. Key Performance Indicators:
Develop a human resource scorecard to evaluate human resource as a profit centre model.
3. Competitor Analysis:
Understand the strengths and weaknesses of the competitors to leverage its own strengths.
4. SWOT Analysis of Internal Human Resource:
Compare and contrast the various internal human resource sub-functions like training and
development, staffing, compensation, and others.
5. Compete in Core Competency:
On the basis of previous evaluation selecting an area that is our core competence and using
that as a base for rolling out the human resource as a profit centre model.
6. Performance as desired:
a. Scenario 1: Yes
i. Full fledged rollout - Once the pilot run is successful, the model is extended across all
departments.
ii. Shift focus to other areas - Replicate the same model in areas of non-core competence.
b. Scenario 2: No
i. Human resource reverts to a support position - The human resource department is not
ready for the human resource as a profit centre model yet.
ii. Critical re-evaluation of internal systems - Try and rework the systems to make them ready
for the profit centre model.
7. Hire New People with Specific Skill Sets:
The profit centre model is taken to a new level wherein the human resource department starts
competing for external clients as well. To take this forward we need to hire people with the
required skill sets and simultaneously develop our internal team for the same.
8. Target Small Companies:
To start off, we target smaller external clients to ensure adequate ground work is done before
moving on to bigger clients.
9. Performance as Desired:
a. Scenario 1: No
i. Re-evaluate performance - Corrective action needs to be taken to improve performance.
b. Scenario 2: Yes
i. Hire more people - This is essentially done to build capability for handling bigger engagements.
ii. Target bigger clients - Once the required personnel have been hired and trained we can
move on to targeting bigger clients.
-
SIMPLY SPEAKING ...
1. Transformation of human resource into a profit centre or strategic business centre is a
viable proposition subject to company's philosophy and the volume of profit generation
and human resource aligning with the organization's balance scorecard.
6. FROM HUMAN RESOURCE DEVELOPMENT TO HUMAN DEVELOPMENT
RESOURCING: HRD TO HDR:
CASE OF JAI SHIVARAMAKRISHNAN:
Jai Shivaramakrishnan is working with MB India Limited for last 3 years as General Manager-
Human Resource and Organization Development. The company is in the business of manufacturing
tin, plastic, rubber and paper packaging cans and roll seal closures (RSC) Aerosols, collapsible and
rigid tubes, industrial extrusions, crown corks, screw caps, R.C. pilfer-proof and other closures for
Hindustan Uniliver Limited, Colgate Palmolive, Godrej, Pepsi, Coke and many other big banner
business houses.
Mr. Jai Shivaramakrishnan is smart, aggressive, quick witted and creative. He is very popular
among the workforce because of his broad minded approach and smart human relations skills.
MB India factory is located in an eastern suburb in Mumbai. Its eastern and northern sides are
surrounded by small narrow streets, chawls and thousands of slum area huts where one comes
across a lot of dirt, filth and 'waste' all around. Western side of the factory opens to 'Dharavi'. About
80% workers of MB India reside in the surrounding localities.
On 31 5t December 2006, when everyone in Jai's office was preparing to leave the office to
celebrate New Year eve, Jai received a SOS from the factory that a worker named Santosh was
admitted in hospital as he was at the terminal stage of TB and had remote chances of survival. Jai
immediately rushed to the hospital but Santosh died before Jai could reach him. By January end
2007, five more workers died of TB and 15 others were admitted into infectious diseases NGK
Hospital for treatement of 'Leprosy' which was spreading at an alarming speed. As if this was not
enough, Jai was told by his staff that three prominent workers from RSC department were tested HIV
positive and the hospitals were refusing to admit them for treatment on the pretext that they did not
have infrastructure and amenities for treating HIV patients. Jai moved fast and got them admitted into
a nondescript hospital through his contacts.
While Jai was struggling to overcome these problems, he received an urgent note from Biman
Roy, the Director Human resource, from Kolkata asking him to move fast and come out with some
creative schemes to provide relief to the victims from these three deadly diseases and educate them
as to how to live healthy life. He asked Jai to take help from all government and non-government
organizations and agencies to tackle the problems.
Jai began thinking. Why have all these problems cropped up together? Is it a mere coincidence
or is there a bigger and deeper issue which has remained unattended? What has suddenly gone
wrong? Was it that the company was caught unaware and wasn't ready to face and handle the
unexpected situations or was it just his own inability and incompetence responsible for his utter failure
in detecting such deadly infectious diseases? Has he wasted all his years in running after intangible
issues? Is it his single track thinking style which disables him from apprehending the reality side of
human resource development? Could he have prevented these situations by thinking out of the box?
WHERE TO GO FROM HERE?

Jai made up his mind and called up Biman Roy to clear his confusions and answer the questions
-
that were bothering him. Biman flew to Mumbai and got into one to one meeting with Jai. He told Jai
that such situations do arise and many a times all of them together. One needs to take a holistic view
of these problems and accept them as a part of work life. Problems do not pre-announce their arrival
but there are always tell-tale signs which alert us of their arrival. Anyone can observe these alerts
if one is careful about smelling the news and apprehending the problems and thus, take preventive
steps to handle them more effectively.
"But sir, is there any system available within human resource development gamut wherein we
may be able to predict or foresee, to the best of our efforts, these and such other hundreds of issues
which take a lot of our time as a result of which we are either not prepared to manage them effectively
or end up doing one thing at the cost of another," Jai asked Biman, feeling little better and reassured.
"Jai, you need to innovate a system which may assist you in apprehending the problems and
finding the solutions. But no such system in human resource is fully secure or reliable because we
deal with human beings and issues surrounding their day to day work life which are uncertain and
un-predictable. Accidents, sickness, diseases, deaths and other such unfortunate events are integral
part of human life and need to be looked at from a very different perspective" Biman spoke slowly
to ensure that Jai understands the basic issues.
'What is that different perspective, sir" Jai was curious to know.
"Let's have a cup of tea and relax a while before I explain to you about that different perspective"
Jai called up his secretary to order tea and snacks ...
1. DIFFERENT PERSPECTIVE: HUMAN DEVELOPMENT RESOURCING (HDR):
"The new perspective is 'HDR' meaning Human Development Resourcing. We need to move
from Human Resource Development (HRD) to Human Development Resourcing (HDR). This needs
a paradigm shift in our approach to resolve problems and issues faced by our human resource whom
we claim our 'tangible assets" Biman continued, " the problems you faced in the health care recently
cannot be resolved just by admitting the sick employees in the hospitals and then wait to see who
survives and who does not. It is not only the cure or the prevention of a disease; it is all about a
bigger question "can we give our employees a disease free quality life which they deserve as human
beings? Human Development Resorcing comes to our aid in managing these and such other human
concerns, not only at organisational and/or national level but also globally".
2. DIFFERENCE BETWEEN HUMAN RESOURCE DEVELOPMENT (HRD) AND HUMAN
DEVELOPMENT RESOURCING (HDR):
1. In Human Resource Development (HRD), we select our human resource and decide what
assistance they need from us to help them to change their vision, sharpen their competencies
and skills and multi-skilling, performance management, human relations, leadership effects and
their other abilities and capabilities.
2. In Human Development Resourcing (HDR), we first think of identifying, building and securing
resource for sustained development of human beings (human resource or human capital) such
as financial, economic, social, mental, psychological, spiritual and physical resource for overall
sustainable human development. The development areas include health, nutrition, education,
counselling, population control, enrichment and quality of life and empowerment of women
across the organization.
- One of the most common misconceptions is to treat human development resourcing as being
synonymous with human capital and human resource development.
3. Human capital is a term coined by Schultz in 1960s which refer to the stock of skills and
productive knowledge embodied in people. Just as physical, capital (machines, equipment,
assets and so on) make a contribution to the national income, Schultz argued that individuals,
through the human capital embodied in them, also make a contribution to national income. Thus,
human capital and the human resource development framework that is based on the return on
investment, consider human beings mainly as a means to the end which contributes to higher
national income. The investment made in people in terms of education, health, nutrition is
justified in terms of the 'rate of return' it yields to the individual and the organisation as well as
to the family and society.
4. The Human Development Resourcing paradigm regards people as ends in themselves, and not
as means to an end. Human Development Resourcing (HDR) includes human, social,
environmental and economic development.
3. SIX SEGMENTS OF HUMAN DEVELOPMENT RESOURCING (HDR)
There are six basic segments of human development resourcing:
1. HUMAN DEVELOPMENT: SEGMENT ONE
The concept of human development was introduced by Dr Mahbub-ul-Haq. Dr. Haq describes
the concept of human development resourcing enlarges people's choices and improves their lives.
People are central to all development under this concept. These choices are not fixed but keep on
changing. The basic goal of development is to create conditions where people can live meaningful
lives. A meaningful life is not just a long one. It must be a life with some purpose. This means that
people must be healthy, be able to develop their talents, participate in society and be free to achieve
their goals.
Dr Mahbub-ul-Haq created the Human Development Index in 1990. According to him, development
is all about enlarging people's choices in order to lead a long, healthy lives with dignity. The United
Nations Development Programme has used his concept of human development to publish the Human
Development Report annually since 1990. Dr Mahbub-ul-Haq and Prof Amartya Sen were close
friends and have worked together under the leadership of Dr Haq to bring out the initial Human
Development Reports. Both these South Asian economists have been able to provide an alternative
view of development.
Nobel Laureate Prof Amartya Sen saw an increase in freedom (or decrease in unfreedom) as
the main objective of human development. Interestingly, increasing freedoms is also one of the most
effective ways of bringing about development. His work exploms the role of social and political
institutions and processes in increasing freedom.
According to Dr. Haq, leading a long and healthy life, being able to gain knowledge and having
enough means to be able to live a decent life are the most important aspects of human development.
Therefore, access to resource, health and education are the key areas in human development.
Suitable indicators have been developed to measure each of these aspects.
Very often, people do not have the capability and freedom to make even basic choices. This may
be due to their inability to acquire knowledge, their material poverty, social discrimination, inefficiency
of institutions and other reasons. This prevents them from leading healthy lives, being able to get
educated or to have the means to live a decent life.
Building people's capabilities in the areas of health, education and access to resource is therefore,
important in enlarging their choices. If people do not have capabilities in these areas, their choices
also get limited. For example, an uneducated child cannot make the choice to be a doctor because
-
her choice has got limited by her lack of education. Similarly, very often poor people cannot choose
to take medical treatment for disease because their choice is limited by their lack of resource.
2. MEASURING HUMAN DEVELOPMENT: SEGMENT TWO:
The human development index (HDI) ranks the countries based on their performance in the key
areas of health, education and access to resource. These rankings are based on a score between
o to 1 that a country earns from its record in the key areas of human development.
The indicator chosen to assess health is the life expectancy at birth. A higher life expectancy
means that people have a greater chance of living longer and healthier lives. The adult literacy rate
and the gross enrolment ratio represent access to knowledge.
The number of adults who are able to read and write and the number of children enrolled in
schools show how easy or difficult it is to access knowledge in a particular country.
Access to resource is measured in terms of purchasing power. Each of these dimensions is
given a weightage of 1/3. The human development index is a sum total of the weights assigned to
all these dimensions.
The closer a score is to one, the greater is the level of human development. Therefore, a score
of 0.983 would be considered very high while 0.268 would mean a very low level of human development.
The human development index measures attainments in human development. It reflects what
has been achieved in the key areas of human development. Yet it is not the most reliable measure.
This is because it does not say anything about the distribution.
The human poverty index is related to the human development index. This index measures the
shortfall in human development.
It is a non-income measure. The probability of not surviving till the age of 40, the adult illiteracy
rate, the number of people who do not have access to clean water, and the number of small children
who are underweight are all taken into account to show the shortfall in human development in any
region. Often the human poverty index is more revealing than the human development index.
Looking at both these measures of human development together gives an accurate picture of the
human development situation at organizational and/or national level. The ways to measure human
development are constantly being refined and newer ways of capturing different elements of human
development are being researched.
3. RESOURCING: SEGMENT THREE:
In human resource development, we first think of areas of development where people need
assistance from an organization such as developing leadership or communication skills and
competencies. In human development resourcing, we identify the potential areas which can support
us in pooling financial and monetary, physical and spiritual and mental and psychological resource
to aid our human development programmes.
The participation, in pooling the resource for implementing the pre-determined and identified
human development programmes, is sought from various quarters:
&I Human Resource Planning and AudIt
1. Organizational funding by monetary and physical resource which is popularly known as

'corporate social responsibility'.
2. Governmental funding in private-public participation.
3. Non-Government Organizations (NGOs)
4. Philanthropic Trusts and Organizations.
5. Sewa Mandals and Non-Religious Organizations.
6. Educational Institutions and Trusts.
7. Non-Profit Organizations.
8. Community development Institutions and Associations.
9 .. Environmental Management Institutions.
4. CORPORATE SOCIAL RESPONSIBILITY (CSR): SEGMENT FOUR:
The role of corporates by and large has been understood in terms of a commercial business
paradigm of thinking that focusses purely on economic parameters of success.
As corporates have been regarded as institutions that cater to the market demand by providing
products and services, and have the onus for creating wealth and jobs, their market position has
traditionally been a function of financial performance and profitability.
However, over the past few years, as a consequence of rising globalisation and pressing ecological
issues, the perception of the role of corporates in the broader societal context within which it operates,
has been altered. Stakeholders (employees, community, suppliers and shareholders) today are
redefining the role of corporates taking into account the corporates' broader resl.:onsibility. towards
society and environment, beyond economic performance, and are evaluating whether they are
conducting their role in an ethical and socially responsible manner.
As a result of this shift, Corporate Social Responsibility (from purely economic to 'economic
with an added social dimension'), has become one of the most important segments of Human
Development Resourcing.
MODELS OF CORPORATE SOCIAL RESPONSIBILITY:
1. ETHICAL MODEL (1930 -1950): One significant aspect of this model is the promotion of
''trusteeship'' that was revived and reinterpreted by Gandhiji. Under this notion the businesses were
motivated to manage their business entity as a trust held in the interest of the community. The idea
prompted many family run businesses to contribute towards socio-economic development.
2. STATIST MODEL (1950 -1970): Under the aegis of Jawahar Lal Nehru, this model came
into being in the post Independence era. The era was driven by a mixed and socialist kind of
economy. The important feature of this model was that the state ownership and legal requirements
decided the corporate responsibilities.
3. LIBERAL MODEL (1970 -1990): The model was encapsulated by Milton Friedman. As per
this model, corporate responsibility is confined to its economic bottom line. This implies that it is
sufficient for business to obey the law and generate wealth, which through taxation and private
charitable choices can be directed to social ends.
4. STAKEHOLDER MODEL (1990 - PRESENT): The model came into existence during 1990s
as a consequence of realisation that with growing economic profits, businesses also have certain
societal roles to fulfil. The model expects companies to perform according to ''triple bottom line"
approach. The businesses are also focussing on accountability and transparency through several
mechanisms. societal roles to fulfil.
. . ;'
_... ....... ....... .l1
5. CAPABILITY MODEL: This approach is associated with Prof. Amartya Sen. Building human
capabilities in the areas of health, education and access to resource is the key to increasing human
development.
DEFINING CORPORATE SOCIAL RESPONSIBILITY:
1. Philip Kotter and Nancy Lee (2005) define Corporate social responsibility as "a commitment
to improve community well-being through discretionary business practices and contributions of corporate
resource" whereas, Mallen Baker refers to Corporate social responsibility as "a way companies
manage the business processes to produce an overall positive impact on society".
2. According to World Business Council for Sustainable Development "Corporate social
responsibility is the continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their families as well as of the
local community and society at large".
3. Archie Carroll describes Corporate social responsibility as a multi layered concept that can
be differentiated into four interrelated aspects - economic, legal, ethical and philanthropic
responsibilities. Carroll presents these different responsibilities as consecutive layers within a pyramid,
as such that ''true'' social responsibility requires the meeting of all four levels consecutively. The
model probably is the most accepted and established .
SIMPLY SPEAKING ...

While the definitions of corporate social responsibility may differ, there is an emerging
consensus on some common principles that underline corporate social responsibility.
1. Corporate social responsibility is a business imperative: Whether pursued as a voluntary
corporate initiative or for legal compliance reasons, corporate social responsibility will
achieve its intended objectives only if businesses truly believe that corporate social
responsibility is beneficial to them.
2. Corporate social responsibility is a link to sustainable development: Businesses feel
that there is a need to integrate social, economic and environmental impact in their
operation.
3. Corporate social responsibility is a way to manage business: Corporate social responsibility

is not an optional add on to business, but it is about the way in which businesses are
managed.
5. THE FOUR PILLARS OF HUMAN DEVELOPMENT RESOURCING: SEGMENT FIVE:
Just as any building is supported by pillars, the idea of human development resourcing is
supported by the concepts of equity, sustainability, productivity and empowerment.
1. Equity: refers to making equal access to opportunities available to everybody. The opportunities
available to people must be equal irrespective of their gender, race, income and caste.
For example, in any country, it is interesting to see which group the most of the school dropouts
belong to. This should then lead to an understanding of the reasons for such behaviour. In India, a
large number of women and persons belonging to socially and economically backward groups drop
out of school. This shows how the choices of these groups get limited by not having access to
knowledge.
2. Sustainability: means continuity in the availability of opportunities. To have sustainable human
development, each generation must have the same opportunities.
All environmental, financial and human resource must be used keeping in mind the future.
Misuse of any of these resource will lead to fewer opportunities for future generations.
A good example is about the importance of sending girls to school. If a community does not
stress the importance of sending its girl children to school, many opportunities will be lost to these
young women when they grow up. Their career choices will be severely curtailed and this would
affect other aspects of their lives. So each generation must ensure the availability of choices and
opportunities to its future generations.
3. Productivity: means human labour productivity or productivity in terms of human work. Such
productivity must be constantly enriched by building capabilities in people. Ultimately, it is people who
are the real wealth of nations. Therefore, efforts to increase their knowledge, or provide better health
facilities ultimately leads to better work efficiency.
4. Empowerment: means the power to make choices. Such power comes from increasing
freedom and capability. Good governance and people-oriented policies are required to empower
people. The empowerment of socially and economically disadv~ntaged groups is of special importance.
6. SUSTAINBILITY REPORTING: SEGMENT SIX:

Sustainability Reporting (SR) is also gaining prominence and recognition as a value added tool
for displaying a corporate's commitment towards transparency and accountability towards its
stakeholders.
It helps a company to report on the social, environmental and economic impact of its activities,
along with a report on the internal state of its management and employee welfare system in a manner
as rigorous and transparent as financial reporting.
A well-drafted sustainability report provides a balanced and reasonable representation of the
sustainability performance of a reporting organisation (both positive and negative). It helps the
organizations to define and communicate their overall context and rationale to solve global problems
through its specific business model or elicit whether its business model design is influenced by those
problems. It is also increasingly recognised as a tool for brand and image building.
WHY CORPORATE SOCIAL RESPONSIBILITY (CSR) CANNOT SUBSTITUTE HUMAN

DEVELOPMENT RESOURCING (HDR)?
Whatever may be the model of corporate social responsibility currently doing the rounds of the
Indian or the Fortune 500 companies, we cannot deny certain facts that:
1. Corporate social responsibility is business driven.
2. Since the business houses invest the money, time and the efforts in initiating the development
projects under corporate social responsibility, they expect a definite return on their investments.
3. Businesses decide the modus operandi of the corporate social responsibility initiatives.
4. Stakeholders are not involved from the onset in defining an initiative to make it successful on
the assumption they do not understand the needs of a community.
5. Corporate social responsibility initiatives are, by and large, image building exercises for the
corporates.
6. Corporate social responsibility is interchangable with corporate sponsorship, donation or other
philanthropic activities.
HUMAN DEVELOPMENT RESOURCING: RATIONALE:
1. Human Development Resourcing (HDR) as an Objective:
Viewed as an end in itself rather than a means, human development resourcing is about enriching
human lives. Material enrichment - producing a larger volume of goods and services - may contribute
to this but it is not the same thing. Indeed it is by now widely understood that there is no one-to-one
correspondence between material enrichment (measured, say, by gross national product per head)
and the enrichment of human lives (measured, say, by the human development index). The human
development approach thus, implies the dethronement of national product as the primary indicator of
the level of development.
The objective of development is not to produce more "stuff", more goods and services, but rather
to increase the capabilities of people to lead full, productive, and satisfying life.
A larger volume of output per head of the population may ofcourse increase the capabilities of
people, and thus, should be warmly welcomed, but increased output should be seen for what it is,
namely, an intermediate product that under appropriate circumstances can enhance human well-
being. Ultimately what is of concern is the ability of people to lead a long life (as measured by life
expectancy at birth), to enjoy good health (as measured by morbidity rates), to have access to the
stock of accumulated knowledge (as approximated by enrolment and literacy rates), to have sufficient
income to buy food, clothing and shelter, to participate in the decisions that directly affect their lives
and their community. In formulating development policies, programmes and plans it is important to put
people first, to specify objectives in terms of the enhancement of human capabilities.
2. Human Development Resourcing (HDR) as a Means:
The economic benefits received by people - whether in the form of money income, material
goods and services received in kind, self-produced items of consumption or production, or capabilities
such as a long life and good health which may be only partially mediated by relations of production
and exchange - can be understood as flows originating from the stock of capital. The stock of
capital, in turn, can be divided into three components: 1. the stock of natural capital, 2. the stock of
man-made physical capital, and 3. the stock of human capital.
Human Resource Plannmg and Audlf
The stock of natural capital consists of the natural resource of the globe, including the atmosphere
and oceans, the flora and fauna, the soils and mineral deposits and sources of fresh water.
The stock of physical capital consists of the produced means of production, i.e., the plant and
equipment used in the agricultural, industrial and service sectors, the physical infrastructure (roads,
bridges, ports, pipelines, railways, airports, irrigation canals) and the stock of dwellings.
The stock of human capital consists of the knowledge, skills, experience, energy and inventiveness
of people. It is acquired in a variety of ways: through training and apprenticeship programmes, while
on the job through learning by doing, in the formal education system, through informal contacts by
word of mouth, through newspapers, radio and the information media generally, in institutions devoted
to pure and applied research and through private study and reflection.
A distinctive feature of a human development resourcing is the emphasis placed on human
capital formation. This does not mean that additions to the stocks of natural and physical capital are
ignored - that would be a serious error - but it does mean a major change in priorities in favour
of human capital. The justification for this change in priorities is, first, that the returns on investing in
people are in general as high as if not higher than the returns to other forms of investment, second,
that investment in human capital in some cases economises on the use of physical capital and the
exploitation of natural resource and, third, the benefits of investing in people are in general more
evenly spread than the benefits from other forms of investment. Thus, a greater emphasis on human
capital formation should result in as fast and perhaps even a faster pace of development, more
sustainable development and a more equitable distribution of the benefits of development.
Thus, a human development resourcing has numerous advantages. First, it contributes directly
to the well-being of people. Second, it builds from a foundation of equality of opportunity. Third, it helps
to create a more equal distribution of the benefits of development. Fourth, it enables the linkages
between the various types of investment in people to be fully exploited and, fifth, it takes advantage
of the complementarities between human and physical capital.
3. Human Development Resourcing (HDR) as a means for Sustainable Development:
Sustainable development is a pattern of resource use that aims to meet human needs while
preserving the environment so that, these needs can be met not only in the present, but also for future
generations. The term was used by the Brundtland Commission which coined what has become the
most often-quoted definition of sustainable development as development that "meets the needs of the
present without compromising the ability of future generations to meet their own needs."
Sustainable development ties together concern for the carrying capacity of natural systems with
the social challenges facing humanity. As early as the 1970s "sustainability" was employed to describe
an economy "in equilibrium with basic ecological support systems." Ecologists have pointed to the
"limits of growth" and presented the alternative of a "steady state economy" in order to address
environmental concerns.
The field of sustainable development can be conceptually broken into three constituent parts:
environmental sustainability, economic sustainability and socio-political sustainability.
- ;,
.........
4. Human Development Resourcing (HDR) as a means for Participatory Development:

In the final analysis human development resourcing cannot be separated from participatory
development. The goal of human development is to help people realise their own potential, to develop
their intellectual, technical and organizational capabilities. Thus, human development inescapably is
development by the people if it is to be development for the people.
5. Corporate Social Responsibility to move from Image Building Model to Sustainable
Human Development Resourcing Model:
1. A study conducted by KPMG India on "Corporate Social Responsibility: Towards a Sustainable
Future" observed that action in corporate social responsibility in India largely spans a diverse set of
thematic areas - health, education, livelihood, poverty alleviation, environment, water, housing, energy
and microfinance. However, some other areas like women empowerment, child development and
infrastructure also appeared in the case studies.
2. Based on the comparative study of the 24 companies, it was found that while some companies
chose to narrow their focus on a few thematic areas, others took a broader view and undertook a
larger scope of areas to focus on. Out of 24 case studies that were analysed, it was found that there
were as many as 16 corporates focussing on 3-5 thematic areas and remaining eight stuck to six
or more thematic areas. In terms of the area focus, environment garnered the maximum attention from
corporates while women empowerment and poverty alleviation were neglected areas with minimal
corporates focusing on the same.
3. It was observed that for 37 percent corporates, the Corporate social responsibility initiative is
being implemented through a well-structured separated Foundation. Among 58 percent corporates

there is a separate corporate social responsibility department that takes care of the activities to be
implemented.
4. The importance of building strong public-private partnerships as well as working closely with
NGOs as implementation partners is being increasingly realised by corporates. It has been observed
that 58 percent of the corporates within the surveyed sample partnered with the government
departments. The number is higher for the engagement with NGOs, where approximately 67 percent
corporates have formed linkages. Twenty-one percent corporates were working in partnership with
multilateral or bilateral organisations.
5. Stakeholder engagement has become one of the important aspects of corporate social
responsibility practices, though, there are different sets of stakeholders that can be taken into account
while implementing corporate social responsibility.
- The World Business Council for Sustainable Human Development has noted that a coherent
corporate social responsibility strategy based on integrity, sound values and a long-term approach
offers clear business benefits to companies and contributes to the well-being of society. As companies
Human Resource Plannmg and AudIt
move forward to design a corporate social responsibility strategy that provides the intended leverage
point as intended, key success factors for it to move to a state of sustainable human development
resourcing are:
• Focusing on priorities.
• Allocating finance for treating corporate social responsibility as an investment from which
returns are expected.
• Optimising available and expected resource by ensuring that efforts are not duplicated and
existing services are strengthened and supplemented.
• Monitoring activities and liaising closely with implementation partners such as NGOs to ensure
that initiatives really deliver the desired outcomes through participative development.
• Reporting performance in an open and transparent way so that, all can celebrate progress and
identify areas for further action.
CASE STUDI~S IN HUMAN DEVELOPMENT RESOURCING:
1. AMBUJA CEMENTS LIMITED:
Thematic Areas: Poverty Reduction, Reducing Child Mortality, HIV/AIDS, Education and
Environment
Case Study:
Ambuja Cements Ltd. established a foundation, called the Ambuja Cement Foundation in 1993.
With its cement plants being situated in the rural areas, the company realised the need to address
the needs of the rural people. These people formed direct or indirect stakeholders of the Company
and therefore were important for the company's sustainability. Consequently, the ACF's focus has
been on integrated rural development programmes. The Foundation works with the mission to "energise,
involve and enable communities to realise their potential".
It upholds as its guiding light the parent company's core values and alongside pays due attention
to international trends in social development, expressed through guidelines like the millennium
developmental goals, poverty alleviation, achieving universal primary education, reducing child mortality,
improving maternal health, combating HIV/AIDS and ensuring environmental sustainability is all integral
to the work of the company and its Foundation.
The Foundation in each location begins by working at the micro level in a small way with the
villages impacted by the company's operations and gradually over time as partnerships develop
expands its"area and scope of work. The Foundation at present reaches out to over 1.2 million people
in about 670 villages spread across ten states in India. The large chunk of work of the Foundation
is carried out by a team of well-trained and experienced professionals.
2. APOLLO TYRES LIMITED:

Thematic Areas: Health
Case Study: HIV-AIDS Programme in Apollo Tyres Ltd.
Background:
Apollo started its fight against HIV-AIDS in a project called Healthy Highways. The project was in
partnership with DFID and started in Sanjay Gandhi Transport Nagar in the year 2000.Today Apollo has
a comprehensive programme on HIV-AIDS focussing on its employees, customers and supply chain.
The programme focus is on building awareness and prevention aspect of the epidemic. The
approach is to forge strategic tie-ups with organisations, which bring the technical skills and capacity
building aspects into the partnership.
Apollo Tyres Health Care Centres:
Apollo Tyres Health Care Centres are targeted interventions for truckers. The location for clinics
is identified on the HIV prevalence, density of trucking and mobile population and the current level
of work being done by other organisations in the area. Currently, the company has 7 clinics running
in North, West and South of India. All clinics are strategically located in transport nagars. They are
positioned as general health clinics to avoid stigma attached to HIV-AIDS, however the focus of the
services provided is on HIV-AIDS. The main components of the programme are:
(A) Behaviour Change Communication (BCC):
The communication is directed at increasing awareness regarding the basics of HIVIAIDS. The
communication addresses the modes of transmission, myths regarding HIV, connection between sexually
transmitted diseases and HIV through one-to-one and one-to-group interactions.
(B) Peer Educators:
Building an effective peer educator network is the most important link of the entire programme.
The peer educators become imperative given the geographical spread of the transport nagars and the
mobile nature of the population.
(C) Condom Promotion:
Condom promotion takes place through free distribution as well as social marketing of condoms.
These condoms are available at various outlets and strategic pOints within the transport nagars. Also
the out reach workers and the peer educators emphsise and educate the target audience on the
correct usage and disposal of condoms.
3. BHARAT PETROLEUM CORPORATION LIMITED:
Thematic Areas: Health, Education, Infrastructure, Income Generation, Vocational Guidance,
Livelihood and Environment and Conservation.
Case Study: Community Development at village 'Ramthenga', Jajpur Dist, Orissa.
Objectives of the Project:
• To help the village become socially conscious .
• To improve the general health of the villagers.
III·: Human Resource Plannmg and Audit
• To improve community participation.

• To help them become self-reliant.
This village is dominated by the tribal population - 'Santhal Tribe'. Their socio-economic status
was highly impoverished. Most of the villagers worked in the neighbouring mines. Due to prolonged
and non-conducive working environment, they had developed severe respiratory/skin infections. The
children did not attend any school and the nutrition status of the children was very poor. There was
also a severe problem of alcohol abuse amongst the men. The women were suppressed and worked
in the farm as well as in the mines. Lack of availability of water was also one of the main concerns
of the villagers. There were bore wells but they were non-functional.
Major interventions were required in the area were:
• Health.
• Education.
• Awareness about health/ sanitation/ hazards of working in the mines.
• Precautions to prevent respiratory illness.
• Making water available.
Having understood the need of the community, BPCL constituted a team to implement the work
in the community.
The main participants in the project were:
• Villagers
• NGO partner - Research Analysis Consultants
• BPCL LPG team based in Bhuvaneshwar and Khurda headed by TM Khurda
• BPCL Human Resource Team at Kolkatta headed by Human Resource Chief and corporate
social responsibility co-ordinator.
• BPCL Corporate Social Responsibility Team headed by GM (Admin).
4. MAHIN ORA GROUP OF COMPANIES:
Corporate Social Responsibility in human develpment resourcing has always been an integral
part of the Mahindra Group's vision and the cornerstone of Core Value of Good Corporate Citizenship.
The Mahindra Group defines corporate social responsibility as making socially responsible
products, engaging in socially responsible employee relations and making a commitment to the
community around it. At the Mahindra Group, corporate social responsibility is not just a duty; it's a
way of life. In 2005, the Group celebrated its 60th anniversary by renewing its commitment to
Corporate social responsibility. It pledged to dedicate 1% of its profit (after tax), on a continuous basis
towards Corporate Social Responsibility. A unique kind of ESOPs - Employee Social Options were
launched to enable Mahindra employees to involve themselves in socially responsible activities of
their choice. The Group also announced a special gift: to provide free cochlear implants to 60
profoundly hearing-impaired, under-privileged children. In addition to giving impetus to the Nanhi Kali
project for the girl child and the Mahindra All India Talent Scholarship for the economically
disadvantaged, the Mahindra Group is planning to set up two Mahindra Pride Schools. These schools
will offer a variety of courses, with an emphasis on employability, including training for Information
Technology, Retail, and Automotive Engineering etc. They will provide new skills and capabilities to
the weaker sections of society, particularly the scheduled castes and scheduled tribe youth. While
these projects are already underway, plans for more social initiatives are on the anvil.
5. MOSER BAER:
Corporate Social Responsibility Policy:
At Moser Saer, we believe that Corporate Social Responsibility is the way to conduct business that
achieves a balance or integration of economic, environmental and social imperatives while at the same
time addressing stakeholder expectations. Under its corporate social responsibility policy, the company
affirms its commitment of seamless integration of marketplace, workplace, and environment and
community concerns with business operations. Moser Saer uses corporate social responsibility as an
integral business process in order to support sustainable development and constantly endeavors to be
a good corporate citizen and enhance its performance on the triple bottom line.
Corporate Social Responsibility Mission:
Whilst being committed to excellence and total customer satisfaction through team work, ceaseless
innovation and timely delivery of quality products of international standards, we recognize our
responsibilities towards social and environmental dimensions of our business and thus, aim to visibly
playa leading role within our spheres of influence.
We will strive to be a leader while continuing our business in a socially and environmentally
responsible manner. We affirm our commitment to contribute to nation building measures through
improving quality of life of our workforce, their families and the communities of the area we exist and
beyond.
The Structure:
1. Community Development vehicle, Moser Saer Trust is headed by Corporate Social Responsibility
Head of Moser Saer.
2. Trustees are senior leaders from the company.
3. Functional scorecard and KRAs align initiatives with company's strategic objectives.
4. Regular board level reporting to Corporate Social Responsibility Committee.
5. Programmes evolved after stakeholder dialogue and have independent budget, action plans
and targets.
6. Community programmes designed to meet Millennium Development Goals (MDGs) in MSIL's

sphere of operations as contribution to nation building.
6. INFOSYS TECHNOLOGIES:
Corporate Social Responsibility:
At Infosys, the distribution of wealth is as important as its legal and ethical creation. A strong
sense of social responsibility is therefore, an integral part of our value system.
Infosys Foundation:
We are committed to contributing to the society and established Infosys Foundation in 1996 as
a not-for-profit trust to support our social initiatives. The Foundation supports programmes and
organizations devoted to the cause of the destitute, the rural poor, the mentally challenged, and the
economically disadvantaged sections of the society.
_r
.,.
The Foundation also helps preserve certain cultural forms and dying arts of India. Grants to the
Foundation aggregated Rs. 19 crore during the fiscal year 2007, as compared to Rs. 13 crore in the
previous year.
Community Service:
Through the 'Computers Classrooms' initiative launched in January 1999, Infosys donated 2,567
computers to various institutions across India. Additionally, they have applied to the relevant authorities
for permission to donate computers to educational institutions on an ongoing basis in the future.
Microsoft Corporation continues to participate in this initiative by donating relevant software.
Social Commitment in Education:
Infosy's Education & Research group has the pride of anchoring the Infosys Extension Programme
(IEP), which consists of the Infosys Fellowship Programme, Rural Reach Programme, Catch Them
Young and Train the Trainer.
SIMPLY SPEAKING ...
Leading a long and healthy life, being able to gain knowledge and having enough means
to be able to live a decent life are the most important aspects of human development resourcing.
r---------
~ . •.•••••.••.••.. . . ~:!!:__ J
r------,
IUnions I
-------..1
The figure shows the beneficiaries in the Participative Model of Human Development Resorucing
Therefore, access to resource, health and education are the key areas in human
development resourcing. Suitable indicators have been developed to measure each of these
aspects. Very often, people do not have the capability and freedom to make even basic choices.
This may be due to their inability to acquire knowledge, their material poverty, social
discrimination, inefficiency of institutions and other reasons. This prevents them from leading
healthy lives, being able to get educated or to have the means to live a decent life.
Just as any building is supported by pillars, the idea of human development resourcing is
supported by the concepts of equity, sustainability, productivity and empowerment. Corporate
Social Responsibility has to move from image building exercise to a more meaningful concept
••
of Sustainable Human Development Resourcing to maximise the gains of participative
management and implementation of Human Development Resourcing.
EXERCISE FOR PRACTICE

1. Define the concept Turnaround'. What is Human Resource Turnaround? Explain in details with examples .
2. What is the meaning of 'Holistic Approach' to Human Resource Management?
3. Why do we need Human Resource Turnaround? What are the various compulsions for seeking Human
Resource Turnaround?
4. Why are Human Resource professionals not business driven? What are their compulsions? Explain in
details citing the excerpts from the case study of 'Geeta Kapur & Man ish Puri '.
5. What went wrong between Geeta Kapur and Manish Puri? Do you think Geeta Kapur did not possess
adequate Human Resource skills and competencies to handle Manish Puri? Who comes across as the
winner in the end? Cite excerpts from the case study in support of your answer.
6. If you are 'Geeta Kapur', how would you handle Manish Puri? Re-wtite your conversation with Manish PurL
7. Why is Human Resource at crossroads? Have the Human Resource People lost their art of diagnosis in
handling and managing people?
8. Why is Human Resource function generally taken for granted? Why do people feel that "there is nothing great
in Human Resource" and "anyone from top to bottom in the hierarchy can manage Human Resource "?
9. What is the meaning of Global Human Resource Management? Do, as human resource processionals, we
need "Global Human Resource Competency? Are we ready for this compet itive advantage?
10. Why did Simranjeet Singh, Chairman and Managing Director of Perfumes & Petals India Limited involve
VP-Human Resource Ritu Sanyal in merger and acquisition second deal? Why Ritu Sanyal succeeded in
finalising the deal? How the company benefited by involvement of Ritu Sanyal?
11 . What approach was adopted by Ritu Sanyal in dealing with second merger and acquisition deal?
12. "Pick good people and set the right priorities". In what context did Lee lacocca make this statement?
13. Explain the concept of "'Get, Keep, Grow". Who is the originator of this concept and in what context did
he make this statement?
14. How did Dabur India achieve painless restructuring? What were the benefits of the organizational restructuring?
15. Do you agree that Human Resource needs transformation of image to be business driven, if Human
Resource Strategic planning has to succeed?

16. What are the various paradigm shifts for Human Resource professionals? Explain in details.
17. Write your plan of action the way you would like to transform your Human Resource department to profit
centre or strategic business unit (SBU).
18: What is globalisation? Do you think that Human Resource is really going global because everyone talks
about global Human Resource competencies? Explain it with examples.

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THE GREAT

Objectives • Making Human Resource Business

Paradigm Shift Two:

• Paradigm Shift Four: From Talent

LEVEL ONE: HOLISTIC APPROACH TO HUMAN RESOURCE

HOLISTIC APPROACH TO HUMAN RESOURCE HELP ASHOK

EARLY WARNING SIGNALS OF DECLINE:

5. Pride and Arrogance getting in the Way:

SIMPLY SPEAKING ...

HUMAN RESOURCE COMPETENCIES NEED TO BE BUSINESS

good" Manish told Geeta tauntingly.

SIMPLY SPEAKING ...

and late coming.

3. Human Resource is Responsible for Transformation of some Indian Global

7. Gobal Human Resource-A Competitive Advantage: Are We Ready to Take

SIMPLY SPEAKING ...

on Intangibles) to "ROI" (Return on Tangibles Investment). Invest in people. They are

DABUR HIRED McKINSEY:

HUMAN RESOURCE TAKES DRIVER'S SEAT TO RESTRUCTURE:

PARADIGM SHIFT AND TRANSFORMATION - DRIVEN BY AGENTS OF CHANGE: THOMAS

PARADIGM SHIFT FOR HUMAN RESOURCE:

• Strategic workforce planning.

APPROACH OF RITU SANA VAL:

4. FROM TALENT MIS-MANAGEMENT TO TALENT MANAGEMENT:

SURAJ KAUL: CASE OF TALENT MIS-MANGEMENT:

SIMPLY SPEAKING ...

3. Build Infrastructure to Support the Supply Chain

2. Can Human Resource be a Profit Centre? Answer is "Yes"

WHERE TO GO FROM HERE?

1. Organizational funding by monetary and physical resource which is popularly known as

SIMPLY SPEAKING ...

3. Corporate social responsibility is a way to manage business: Corporate social responsibility

6. SUSTAINBILITY REPORTING: SEGMENT SIX:

WHY CORPORATE SOCIAL RESPONSIBILITY (CSR) CANNOT SUBSTITUTE HUMAN

4. Human Development Resourcing (HDR) as a means for Participatory Development:

being implemented through a well-structured separated Foundation. Among 58 percent corporates

2. APOLLO TYRES LIMITED:

• To improve community participation.

6. Community programmes designed to meet Millennium Development Goals (MDGs) in MSIL's

EXERCISE FOR PRACTICE

Resource Strategic planning has to succeed?

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