Commonality between companies and individuals.


When i was publishing my previous article on How to retain talent I observed something; that commonality exists between the individuals and the corporate thought process, the way they think for a solution and the way they address a given situation.

To compliment this I will elaborate some examples Remember the Global economic crises. What did the big/small corporate did? All of them went for a head reductions without worrying about there future goals/launches, about there market share, competitors moves, strategic positioning of theirs vis-à-vis there competitors.

Companies started reverse engineering for cost cutting. Let me explain, management gave a target to departments/ functions to reduce cost by say 20% now it was the department/ functions head responsibilities to reduce that many head which will help them to achieve the cost cutting target. Doesn’t it sound funny?

In most of the cases company were already having expansion plans and some of them have already invested in expanding in certain technological areas, geographical markets and operations where there performance was far below industry the industry standards. With the wave of head reduction all this expenses turned to sunk cost recovering which is next to impossible and getting back on track with all the previous plans and strategy seems to be a difficult proposition.

As per my school of though if the companies would have invested in technology, human resources, expansion they would have reaped huge benefits today and days to come. But the companies did the opposite way and to retain the status quo it will take years because in business 1 month delay is 1 year behind.

Similarly individuals too took wrong decision during the down time. Stock investors were watching there stocks falling and did nothing, when the stock prices hit the rock bottom prices they simply stayed away from market and exited there holding as soon as the stock price touched there purchase price, fearing that the price may fall any time.

If they would have invested (in the same stock which they were holding) when the stock prices were @ there bottom prices they could have attained a breakeven much before and could have made huge profits.
Most of the investors were scared and didn’t wanted to put there money in any of the risky propositions, investors were sitting on cash but were not willing to invest anywhere, all the money from stock market either moved to bank deposits or lost its value. If they would have shown courage of investing against risk they would have earned huge profits.

On the contrary there was/is no prudent way in which the downturn could have been handled, individuals/ corporates responded in there own way which they felt is the prudent way.

Ken Thompson said “Long-term success is not only determined by how well a company/individual handles a downturn, but also by its foresight in preparing for the next upturn. In the midst of a recession, we are often forced to restructure and control expenses, but those who focus only on the immediate crisis may be left behind when better times return.”

Image souce bioteams.com

Second dip…..!!!!!


Many of the economist and financial market guru’s believe that the next financial crisis may be in 2011. Some of those believe that this might be a dead cat bounce, or what economists term a double-dip recession.

But looking at the global market (as on today) seems that we are very close to the double-dip recession say by 3-6 months. The reason for me to believe this is because of all the global indexes falling below there support levels (US, India, Hong Kong).

Indian stock market are heading southwards from last 4-5 trading session and have broken there support level. These support level were crucial according to finance experts (I’m not among them) .

Keeping my fingers crossed for today’s opening bell, I pray to god that the index should open with a positive note as all the major global indexes are in +ive.

The reasons why we might be headed for a double dip recession based on artilce published in ft.com

  1. Oil, energy and food prices are now rising faster than economic fundamentals warrant, and could be driven higher by excessive liquidity chasing assets and by speculative demand.
  2. There are risks associated with exit strategies from the massive monetary and fiscal easing, If policy makers want to reduce fiscal deficits they will raise taxes, cut spending and mop up excess liquidity soon, they would undermine recovery and tip the economy back into stag-deflation. But if they maintain large budget deficits, bond market vigilantes will punish policymakers. Then, inflationary expectations will increase, long-term government bond yields would rise and borrowing rates will go up sharply, leading to stagflation.

Image source: http://www.soxfirst.com/



80-20


The Pareto principle (also known as the 80-20 rule,the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.

The original observation was in connection with income and wealth. Pareto noticed that 80% of Italy's wealth was owned by 20% of the population. He then carried out surveys on a variety of other countries and found to his surprise that a similar distribution applied.

The rule also holds true in software development, sales and marketing and personal life even. This Rule holds true in my financial portfolio even, out of my total investment in Equity market I have generated handsome profits from only 20% of the scripts. 20% of my scripts eat up my 80% of the total investments and 20% of the scripts that are trading below my purchase price are accounting to my 80% loss.

Nobody has invested in the market and always emerged in a profitable position, you need to give time to the scripts and patiently watch them moving. But the conclusion here is whatever you invest 80-20 rule always get applied


20% of your portfolio gives you 80% of profit or vice versa

How to increase productivity


Happy people work better. The more one loves the job the better one performs. Thus, if the motivation levels are up and employee morale is high then higher levels of productivity are guaranteed. If a employee being proud to belong to the organization and vice versa, the employee put in whole and soul into his work and ensuring maximum output.

Human resources

Recognizing the individual capacities and abilities and appreciating each employee for what he is, and what contribution he makes to the organization is an important step towards achieving organizational development. For this, the organization is completely dependant on the "reporting managers". Top Management in the organization cannot know each individual as interaction levels are minimal. Thus, it is up to the middle level management to handle day to day situations and evaluate the resources who report them. Handling each person properly, knowing traits and assets as well as boosting them to overcome drawbacks, identifying areas for improvement are all important tasks to be carried out by middle management. This especially holds true with respect to IT, as pressures are high, deadlines are impossible and very often it is not possible to get a resource that is 100% fit for a particular job.

Reorganization and Acknowledgement

Nothing motivates a person more than recognition. A methodology of reward deserving resources is not only a way to ensure enhanced performance from the individual, but also motivate other members of the team to strive towards this recognition. Recognizes deserving candidates irrespective of the type of contribution they make towards the team's success. Organizations spent more than 50% their time and energy in hiring new resources without investing much time in the way their human resources can be retained. Fact is, it takes 25 to 30% more for organization to retain the existing qualified resource as compare to spending more than 50% in getting new resource as a replacement of an existing resource. Hitting when it is HotFor majority of people, to feel a sense of belonging is important not to feel left out. Thus, transparencies in dealings, as well as involvement in decisions are important communication channels that need to be open at all times. It is vital for resources to be aware of the directions that are being taken not only in their unit, but also across the organization. The content and timings of communications are important- to touch the employee at the right place and the right time - to ensure a stress free work culture, and a profitable one.

Empowerment

Empowerment brings responsibility. Thus empowerment serves as one of the most powerful tools of employee retention. If employees are involved in organizational aspects such as participation in decision making processes, implementation of certain best practices for which they get ownership, it creates a sense of belonging within the person and a reluctance to leave the employer if the option arises.

How to retain talent.

The basic step of employee retention is employee satisfaction, as they are no longer employees, but are Internal Customers to the organization. A strong association exists between employee retention and the quality of service delivered by the Organizations. If an employee feels sidelined or not getting due respect/returns, discord is unavoidable. Whenever talented employee leaves the organization it is not the employee but the organization who suffers the loss. The employee is never at loss because he being a performer gets better placement in a short duration but it take huge cost/time to the company to find a better/compatible replacement against that employee.
Loss Analysis Cost involved in losing a talented employee.
  1. There is the cost involved in finding a replacement.
  2. There is cost of training the replacement.
  3. There is cost of not having someone to do the job in the meantime.
  4. The loss of hold the person have on the workflow and processes
  5. The loss of morale in co-workers.
  6. The loss of trade secrets this person may now share with other
  7. A person leaving an organization becomes its brand ambassador, for better or for worse


What employees want?

A universal truth is that every human being needs to be valued and same applies to the employees. Whether it is an employee or a friend or a family member, when a contribution is made, recognition is what one seeks. When an employee is contributing his/her nine hours a day to the organization, he has some expectation that succeed the salary cheque at the end of the month. He wants to be getting acknowledged that, he matters and makes a difference. Also the financial component too plays a major role because at the end of the day if that's not there then he feels that he has not been really been recognized for his worth?

People leave managers not companies.

An employee's expectations are less on financial fronts, but more towards how he's treated and how he is valued. Much of this depends directly on the immediate supervisor. If organization is losing good people, then their immediate supervisor are to be analyzed.

More than any other significant reasons, they are the reason people stay and thrive in an organization. "People leave managers not companies"

Analysis reveals that the employees leave because they have been pulled away by "more pay" or "better opportunity." Yet, more than 80 percent of employees leave because of the "push" factors related to poor management practices or toxic cultures that drove them out.

Festival season is over…..


After a week of relaxation, enjoyment things are getting back to the normal track.
People started gearing up for Diwali shopping, decoration and preparations at least 5-10 days ahead and you can might have felt the festival mood in the streets, home offices and everywhere.

As the diwali is over people are still having a handover of long vacations, some are tired of the hectic week, some are not able to believe that the vacations are over and for some the vacation will last till Sunday.

The strange thing we observe post diwali in Gujarat is the entire Gujarat is closed for 5 days, businessman and shopkeepers do not open there business establishments before Paacham, they do a Muhurat trading only on Paacham and after that only the normal business routine starts.

Doctors, Dispensaries, grocery shops, medical shop all are closed, literally everything comes to a stand still, No traffic on the roads, no traffic police, no crowd it seems that everything has come to a stand still.

You will not find traffic policeman penalizing offender instead inculcating the violators and wishing them a new year.

In Gujarat, New year starts post diwali i.e. “Vikram Samvat”, basically in Hindu religion new year starts On “Vikram Samvat” only, but the celebration and acceptance is worth seeing in Gujarat.

People visit relatives, elderones on new year to seek there blessings and everywhere fun, food, joy is in the air.


Image source: amitkulkarni.info

Warning system.


I remember there was a warning issued for a flood possibility in Delhi and the adjoining areas due to water released from upstream catchments area, lot of people along with there belonging were evacuated and relocated but by God’s grace no untoward happened.

There are severe floods in Andra, Karnataka and Goa and hundreds of causalities and millions rupees damage has been reported. If a warning was issued for capital why this warning couldn’t got initiated for the affected states? The state government could have better anticipated and prepared for systematic release of waters based on the daily increase of water level in the respective reservoirs and this situation could have been avoided.


In Andhra Pradesh, at least 37 people have died in the floods, and lakhs are in relief camps across the state.The death toll is expected to be higher as the administration currently doesn't have spare officials to count the dead. Thousands are reported missing, lakhs are still stranded. Overall, at least 18 lakh people in nearly 400 villages of Andhra Pradesh have been affected by the floods. 180 villages in Kurnool, 89 in Mahbubnagar, 100 in Guntur and 22 in Nalgonda are in bad shape due to the flood waters.

In karnataka in the last 24 hours, the number of dead in the Karnataka flood havoc has gone up from 130 to 170.Bijapur, Bagalkote, Raichur, Koppal and Gulbarga districts remain the worst affected. In Bijapur alone, more than 17 villages are marooned and over 10,000 people have been left homeless.