The Hindu Business Line : ‘Like a tea bag, HR gives its best when put in hot water’

HR, which came into its own in the 1990s in the country, has morphed to become a mature business function; more so in the last decade. With much of this change happening in ‘good times’ (in economic terms), the sudden downturn, while jamming the brakes on rapid business growth, has also put HR in a queer situation. A function that more or less developed in good times, now has to suddenly grapple with tightening budgets, cost-cutting, downsizing and yet keep pro ductivity going. Is the country’s HR armed with the right skills for the tough times ahead?

“A good HR manager is a like a tea bag: the best comes out when it’s put in hot water,” says Aquil Busrai, Executive Director, Human Resources, IBM India Private Ltd and National President of the National HRD Network. Busrai, along with 400 other HR professionals across the country put together an agenda before the domestic HR fraternity at the National HRD Network’s conference held at Chennai on November 28-29, 2008.

HR in tough times

Contending that HR has seen only good times, he said there were bad periods like the dotcom bust in 2000-01. HR should add value to the business when the chips are down. Discussing key strategies that could help HR support businesses during a slowdown, Busrai says while HR cannot shy away from unpleasant experiences such as the shutting down of businesses, it should ensure that this is done with dignity, fairness and transparency. “HR should stand for the company while talking to the employee and fight for the employee while talking to the management.”

Reiterating the observations made by S. Ramadorai, CEO and Managing Director, Tata Consultancy Services, at the conference that leadership should sense business changes before others see them, Harish D. of People Unlimited saysthis could be done if HR supports leadership in taking the right call. “This can be done through analysis of the context and by helping the organisation make contingency plans and this can only happen in an egoless organisation.”

Underlying all management actions in troubled times should be a well-thought out communication strategy that is championed by HR and this should aim at ‘giving the honest truth,’ says Harish. “Do not shield people from reality and it is very important to send a singular communication from the CEO across the organisation.”

It does not help if organisations keep communicating in layers and expect it to filter down untouched. The Chinese Whispers theory is always at work, he warns.

Share the reality

Share reality, he recommends. This builds trust and credibility, according to him. It’s obvious that employee concerns would revolve around the negative impact on business and, therefore, the jobs at stake. “It doesn’t help at all if you fire a few people for business reasons and tell the media it’s performance-based,” he says. Agrees Busrai, “HR cannot afford to be soft here, but at the same time it should be fair and transparent.”

He says cutting down on training and recruitment is suicidal as this means cutting off fresh blood supply to the organisation. This is a knee-jerk reaction, which should be avoided. His advice is to continue to hire critical skills and keep the critical pipeline active. “In this age of outsourcing and tech-driven processes, one can easily cut down on non-core activities and focus on hiring essential talent,” he says.

According to Ramadorai, the country’s HR fraternity has to look for creative and lasting solutions during challenging times. TCS, for instance, has broken up the company into mini organisations that are run like mini TCSs to manage them better. These are run by designated people who take on the role of CEOs. “The organisation is also in the process grooming the future leadership for itself.”

According to Rajesh Nambiar, Vice-President and General Manager, Global Delivery, IBM India, global talent sourcing and managing people’s hunger for change should be the new agenda for HR.

“Organisations have to be disruptive in nature, destroying their old businesses and creating new ones.” Therefore, he feels, the HR agenda should be set with an adapatable workforce, visionary challengers and people who can manage change.

All this, therefore, involves capability challenges for HR, says Harish. While change management is the essential strategy, the company’s people managers have to develop skills in crisis handling and competence-based thinking, while at the same time they should be caring and sensitive, displaying commitment and credibility.

Is the country’s HR fraternity adequately skilled to handle the high expectations of industry? Arvind Agrawal, Management Board Member and President — Corporate Development and Human Resources, RPG Enterprises, says that doubtlessly, India’s HR capability is high with its scholastic background stronger than that of some developed countries. “But the difference is that in other countries, HR is able to put together a fool-proof programme and execute it to conclusion, which we need to learn.” Indian HR, while sharp and possessing high intellectual capability, lacks focus. “Their execution orientation needs to be developed,” he says.

“While this is a tough time for Indian HR, the current environment is also an opportunity for the department to raise the bar for itself,” says Agrawal, who was the past Chairman of the National HRD Network.

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