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May 6, 2015

2015

Certified Organization Development Analyst (comprehensive learnings about the concepts of organizational development) Project Work

Mumbai Monorail, 2014

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Table of Contents

Section 1 (Objective of the project) 5

Objective 5

Scope of the Project in terms of Department/Positions and Industry 5

Brief overview of Findings 5

Conclusions 5

Section 2 (Analysis of an organization using a strategic tool ) 7

Porter’s Five Forces Theory 7

Benefits of the model 8

Rail Industry Lifecycle 8

Emergence of Railway Business Unit in Nirman 9

Porter’s Five Forces Analysis 10

Supplier Power…………………………………………………………………………………………………………………………………10

Buyer Power 11

Threat of New Entry 11

Substitutes 12

Threat of Rivalry 12

Section 3 (Organization Analysis using organizational excellence models) 12

Understanding of Weisbord Model 12

Pros and Cons of Six box model 14

Case Analysis on RBU 14

Methodology used 15

Processing of the Data 17

Interpretation and diagnosis 19

Interventions 22

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Section 4(HR Audit using PCMM) 23

Understanding of the model 23

Maturity levels of P-CMM 25

Discussions 28

Process Area(Staffing) 28

Process Area (Performance Management) 29

Process Area (Training and Development) 30

Process Area (Compensation) 31

Process Area (Work Environment) 32

Process Area (Communication and Coordination )……………………………………………………………………………33

Explanations 34

Conclusions 35

References 36

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Prelude

For the purpose of analysis I have taken Railway Business Unit of a large construction conglomerate called Nirman (name changed).It is interesting to understand the RBU’s organizational strategy through Porter’s model when they rolled out this new business unit, organizational diagnosis by six box model and the maturity level that it has reached after 5 years of its existence.

This is my second project after CPCD. In this project I have used research methods like interviewing, questionnaire, observations, discussions with my colleagues &CODA class mates and survey etc., to gather data and assessment of the organization using various models like Porter’ Five Forces, Six box model and of course PCMM. I wanted to thank Yin-Che Chen, King-Ching Hsieh, and Mei-Tai Wu for their analysis of Industrial Control industry in Taiwan via PCMM model and that their work has influence my project work also. And also PCMM book by Bill Curtis, William E. Hefley and Sally A. Mille. I have also taken the references from internet which I have mentioned in my references section on the last page of the project. I have used the free version of www.surveymonkey.com.I thank Mr. Ronald Raj for guiding me through this project.

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Section 1- Project Summery

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Section 2- Analysis of an organization using a strategic model

ObjectiveTo analyze organization using strategic tool (Porter’s Five Forces)Conducting organization analysis using organizational excellence model (Six Box Model)To do HR audit using PCMM To study the analysis done by other researchers on these modelsTo prepare a project report to be used as a reference material

Scope of the Project in terms of Department/Positions and IndustryTo understand the organization strategy behind Railway Business unit and how it positions itself in Rail IndustryDiagnosis of organizational challenges faced when a new business unit is introducedValidity of internal processes, communication and environment

Brief overview of FindingsRBU has favorable situation in terms of threat of new entry, substitutes and threat of rivalry but buyer power & supplier power is arresting RBU’s dominance. Therefore it has to work out a strategy keeping these factors in mind in order to bag future projects from Indian Railways.Analysis by six box model suggests that leadership, attitude towards change, rewards and relationships can be focused as areas of improvement, and thus tangible and suggestive interventions are proposed.RBU is assessed for level 2 for PCMM model and it is found to be matured towards managing people and to provide a supportive work environment with adequate work resources, providing a well-articulated compensation strategy, training and development opportunities.

ConclusionsThe Porter’s Five Forces model is a simple tool that can be utilized to help strategic understanding where power lies in a business situation. The tool can also be used to understand both the strength of a company’s current competitive position, alongside the strength of a position the company may be looking to move into. The Five forces framework focuses on business concerns rather than public policy but it can also emphasize extended competition for value rather than just competition among existing rivals. The ease of its use has inspired numerous companies as well as business schools to adopt it.P-CMM is a process based model which focuses on effectively executing HR day-to-day processes and functions. Once these processes become standardized and continue to be improved for broader purposes, they can be simulated and even transferred to diverse areas within an organization. Also with this process orientation in a progressive scope, P-CMM provides an operational direction of HR benchmarking, which can not only be used to diagnose and analyze the current stage but also to predict and provide for the future stage.Six-Box model was used primarily as an organizing device. It is allowed for logical organization of thoughts and data. It also facilitated the prioritization of recommendations. This model provides a strong foundation for assessing organizations. It is also useful as a "quick look" tool to determine one's strategy for dealing or working with an organization.

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1. Porters Five Forces-a) Framework/theory

Porter's Five Forces of Competitive Position Analysis were developed in 1979 by Michael E Porter of Harvard Business School as a simple framework for assessing and evaluating the competitive strength and position of a business organization. This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter’s five forces help to identify where power lies in a business situation. Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.

b) Porter’s five forces of competitive position analysis:

Figure 1: Schematic Representation Of Porter’s Five Forces

c) The five forces are:Supplier power- This is an assessment of how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each essential input; uniqueness of their product or service; relative size and strength of the supplier; and cost of switching from one supplier to another.Buyer power-This is an assessment of how easy it is for buyers to drive prices down. This is driven by the number of buyers in the market; importance of each individual buyer to the organisation; and cost to the buyer of switching from one supplier to another. If a business has just a few powerful buyers, they are often able to dictate terms.Competitive rivalry-The main driver is the number and capability of competitors in the market. Many competitors, offering undifferentiated products and services, will reduce market attractiveness.Threat of substitution- Where close substitute products exist in a market, it increases the likelihood of customers switching to alternatives in response to price increases. This reduces both the power of suppliers and the attractiveness of the market.

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Threat of new entry- The profitable markets attracts new entrants, which erodes profitability. Unless incumbents have strong and durable barriers to entry, for example, patents, economies of scale, capital requirements or government policies, then profitability will decline to a competitive rate.

d) Benefits does Porter’s Five Forces analysis provide-Five forces analysis helps organizations to understand the factors affecting profitability in a specific industry, and can help to inform decisions relating to whether to enter a specific industry; whether to increase capacity in a specific industry; and developing competitive strategies.

Actions to take / Dos Actions to Avoid / Don’ts

We can use this model where there are at least three competitors in the market

Need to consider the impact that government has or may have on the industry

Consideration of the industry lifecycle stage – earlier stages will be more turbulent

To consider the dynamic/changing characteristics of the industry

We should avoid using the model for an individual firm; it is designed for use on an industry basis

Table 1: Benefits of Porter’s Five Forces Analysis

2. Rail Industry Lifecycle-India’s rail network is the largest in Asia and the second largest in the world (behind the US) spanning 64,456 km with more than 7,133 railway stations. The Indian Railways operates 19,000 trains daily, transporting 2.65 MMT of freight and 23 million passengers across the country. However India’s rail infrastructure suffers from chronic under-investment, due to which its potential for freight movement remains largely untapped.

The Eleventh Five Year Plan attempted a paradigm shift from the earlier incremental approaches to one of significant infrastructure capacity addition to handle the quantum increase in traffic levels and to sustain mobility on the network by setting ambitious targets as compared to the performance during the Tenth Plan. This plan strategically targeted on construction of dedicated freight corridors & separating freight from passenger routes; route-wise planning and capacity augmentation on the high density network; renewal, rehabilitation & replacement of railway assets; upgrading technology by use of anti-collision devices, adoption of fire proof coaches, crash worthy satisfaction coaches, reducing level crossings, enhanced training and efforts to empower railway protection force . Seven corridors had been identified for conducting pre-feasibility studies for running high-speed trains (popularly referred to as bullet trains) at speeds above 350 kmph.These corridors will be set up through PPP route. During the period of 2012-17, Mass Rapid Transit Systems (MRTS) projects are being planned in Ahmedabad, Bengaluru, Hyderabad, Chandigarh, Chennai, Delhi, Jaipur, Kochi, Kolkata, Mumbai, Patna, Pune, Lucknow and Surat through the PPP model.

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3. Emergence of Railway Business Unit in Nirman-

Nirman is a US$10 billion technology, engineering, construction and manufacturing &financial services conglomerate. Railway business unit (RBU) is originated as a business unit in the year 2007 as a part of Nirman’s new business initiative. It is inspired by eleventh five year plan. However Nirman had been engaged in the construction of rail infrastructure for more than three decades now.

Vision is to become a No. 1 integrated engineering solutions provider in India and Middle East markets by year 2020, by continuously creating value for our shareholders.

Mission is they will be responsive to customer needs, delivering optimal solutions and value-added services; ensuring sustainable growth and professional excellence using state-of-the-art technology, process-driven approaches, eco-friendly solutions and IT enabled tools; foster a culture of mutual trust, respect, teamwork, continuous learning, innovation, challenge and employee empowerment to provide a growth-oriented workplace; adhere to fair, transparent and ethical practices in interactions with all stakeholders, in keeping the tenets of good corporate citizenship and remain flexible & agile, continually adapting to the changing business environment.

Values of RBU

Client value creation-Enabling clients to become high-performance businesses and creating long-term relationships by being responsive and relevant.

Skill Amplifying-To develop a repository of skills and knowledge & train ourselves as a skilled workforce committed to create value proposition for our clients.

Respect for Individual-To demonstrate respect and empathy when working with others. To be sensitive when dealing with other points of view and constructively raise and discuss ideas. To be cooperative and establish good working relationships and have knowledge of work group member’s responsibilities.

Challenging tasks- Challenging ourselves again and again so that we evolve and grow stronger. To perform the most challenging tasks without a mistake.

Integrity-Being ethically unyielding. Be honest and inspiring trust by saying what we mean, matching our behaviors to our words and taking responsibility for our actions.

Transparency- Seeking feedback from all directions to achieve open communication and foster collaboration. Proactive in communicating outcomes up, down, and across the entire organization and offering constructive feedback to others that is timely, specific, and descriptive.

Collections- Increase revenue and collections through use of best practices for Revenue Cycle Management.

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Corporate Strategy is to consolidate within self and position as a provider of complex range of multi-disciplinary services, including construction of railway sidings and yards, bridges (steel and concrete), tunnels, rail-based urban transit systems (metro systems), stations (including underground stations), railway electrification, signal and telecommunication systems, integrated / composite railway projects, railway track-laying and closed-loop rail transportation systems (merry-go-round systems) for comprehensive and cost-effective bulk material movement.

For the next 5 years plan would be to bid aggressively for Dedicated Freight Corridor, Monorail, construction of Indian Railway Cast Steel Wheel Manufacturing Plant, Track works in Chennai metro, Traction works in Hyderabad Metro.

4. Porters 5 forces Analysis which is represented as below(Table 2,3,4,5,6) in a simple plus minus

analysis meaning any force acting in favour of the organization would get a plus (+) and any

force acting against will be marked as minus(-):

Supplier Power: For Railway Business Unit (RBU), supplier power can set to be relatively High. The Indian railways (IR) has set standardizations, therefore dependency on technology providers is high

for getting the contract & thus suppliers dictate their terms. For certain category of products like electrification components/technology, none of the Indian companies qualify the requirements of

RDSO (Research Designs and Standards Organization) and only MNCs have the capability, thus their collaboration becomes critical for getting contracts.

Factors Railway Business UnitSupplier Concentration (-)

Substitute Suppliers (-)Switching Cost (-)

Threat of Forward Integration (-)Buyer Information (-)

Table 2: Analysis for Supplier Power

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Buyer Power: This would be classed as High/Strong with regards to RBU. The Indian Railway is operating in a monopolistic situation. They demand for latest technology at cost-effective

prices. They tend to squeeze the supplier for better margins. If the margins are not met, they may switch over to a cheaper and unreliable supplier. However It becomes critical to continue provide services to Indian Railways in spite of adverse buyer power because they can give high volumes as well high value projects based upon vendor performance records

& capability in future.

Factors Railway Business UnitBuyer Concentration (-)

Price Sensitivity (-)Switching Cost (+)

Volume (-)Threat of Backward Integration (-)

Substitute Products (-)Heterogeneity (+)

Threat of New Entry: The threat of new entry is Low. There are no Indian companies which offer high quality complex range of multi-disciplinary services to Indian Railways (IR).

Nirman has 3 decades of enriched past experience with IR. Switching cost for IR would be higher especially in mega projects. Also since Nirman has earned good reputation over the years, therefore many small players like to associate with them. Thus their reach to market resource is far and wider. Nirman being a big conglomerate and therefore have a high risk

appetite.

Factors Railway Business UnitPotential Economies (+)

Scope Economies (+)Brand Equity/Reputation (+)

Switching Cost (+)Capital Requirement (+)

Market/Resource Access (+)

Table 3 &4: Analysis of Buyer Power and Threat of New Entry

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Substitutes: The threat of Substitute products is low in present environment. But the threats of substitutes are increasing. The government will promote PPP model (Public Private

Partnerships) for modernizing railway infrastructure in subsequent railway budgets. Therefore International players may form consortiums with local players and may offer a viable potential

substitute. Although price sensitivity of IR will remain a big challenge.

Factors Railway Business UnitAvailable Alternatives (+)

Switching Cost (+)Suitability of Alternatives (+)

Price Sensitivity (+)Potential Substitutes (+)

Threat of Rivalry: There are few players in the market offering diverse technical services for rail infrastructure. Therefore threat of rivalry is Low .IR has time and again associated with Nirman and given appreciation awards for its contribution in various projects. For eg. Nirman has proven its engineering genius in constructing viaduct across Panvel Nadi for Konkan Railways. In Rail sector Nirman has ambitious plans of growth and proven its engineering & construction ability. Now RBU is using this advantage while competing for bigger projects.

Factors Railway Business UnitConventional Fixed/Variable Cost (+)

Differential Capacity (+)Pricing Behaviour (+)

Market/Company Growth (+)Table 5: Analysis for Substitutes

Table 6: Analysis for Threat of Rivalry

Section 3- Organization Analysis using organization excellence models

1. Understanding of the Six Box Model by Marvin R Weisbord (1976)-

In Marvin R. Weisbord’s Six-Box Model, six categories are used to perform organizational diagnoses which are as follows-

a) Purpose (mission, objectives, goals, priorities, values, beliefs, satisfaction ,competencies) b) Structure (division of work, functions, organize and organization chart)c) Relationships (conflict management, peer-boss-subordinate)

d) Rewards (formal, informal, achievement)

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e) Leadership (keeping the elements in balance)f) Helpful Mechanisms (meetings, policies, coordination)g) Environment (forces external to the organization difficult to control)

The author has used the Six-Box model to assist in the analysis of an organization. Data gathered from numerous interviews/questionnaire was categorized according to Weisbord's model. Strengths and weaknesses of each box or element were then examined. The balance or lack of balance among these Strengths and weaknesses provided the basis for recommendations for future actions.

To perform an organizational diagnosis, it is essential to have a basic understanding of what “diagnosis” means and why it must be done. According to Weisbord, identifying and solving a problem must be done systematically by the same people, because by so doing, they learn from their own situation and then seek improvement.

Six-Box model was used primarily as an organizing device. It allowed for logical organization of thoughts and data. It also facilitated the prioritization of recommendations. This model provides a strong foundation for assessing organizations. It is also useful as a "quick look" tool to determine one's strategy for dealing or working with an organization.

Figure 2: Schematic Representation of Weisbord‘S Six Box Model

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Pros of this model are mentioned below-a) The Six Boxes model is relatively uncomplicated, easy to understand and to visualize by clients. It

reflects the essential activities and key variables in an organisation, and has been successfully implemented to assist clients in their change programs.

b) Since Weisbord was interested in change processes, he included politics as an integral part of the delivery's phase design process. For the organisation to be able to adopt the change, individuals and departments must have the power to realize the change.

c) Although other consultants have not used Weisbord's model extensively, writers, such as Nadler and Tushman, Burke and Litwin developed their approaches based on this model.

d) The model draws from a number of management theory schools -- organisation design, behavioural, psychology and organisational learning.

Cons of this model are mentioned below-a) The model offers superficial strategic and financial analysis. After an initial check of the

organization’s fit with its environment, the strategy is assumed constant. The interventions required to rebalance the six boxes are not financially validated.

b) No empirical data has validated Weisbord's classification of an organisation into six components. The model is based on logic.

c) Weisbord made a clear distinction between the formal and informal organisation. The formal organisation is the way the organisation ought to work. The informal organisation is the way the organisation really works. This analytical differentiation is usually too artificial in reality.

d) Model lacks a solid theoretical foundation to determine the real existence of gaps, and their degree of influence over the whole organizational effectiveness. Furthermore, the model fails to provide a solid course of action to close identified gaps given the internal arguments of dissatisfaction.

2. Application of Weisbord’s Six Box Model- A Case Analysis on Railway Business Unit

a) Understanding of the Organizationi. Background

Nirman is a US$10 billion technology, engineering, construction and manufacturing &financial services conglomerate. Railway business unit (RBU) is originated as a business unit in the year 2007 as a part of Nirman’s new business initiative. Railway Business unit is started as a new business unit. The broad spectrum of targeted capabilities would enable Nirman offering a single –source Solutions Company for complex and integrated railway projects. Traditionally Nirman is a civil contractor company. It is noted that RBU’s skills requirements are different from its parent company.

ii. AdministrationThe organizational structure of the Nirman is bureaucratic in nature; communication is very formal and commonly relies on written messages, reports and memos. It has multiple layers, dual reporting’s and centralized authority. The structure helps in standardization, administrative efficiency, control and clear management structure. But it has high levels of supervisor, lack of employee freedom. But for RBU a more flat structure is considered which resulted in quicker

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decision making. For building team of RBU a dynamic CEO was hired laterally who has Railway experience as well as good leadership skills. This has brought clear communication, delegation and involvement of team in the shared vision of the company.

iii. ConsolidationBut RBU was formed a collective team of old Nirmanites and new bunch of Railway Specialists hired from external sources. This has resulted in complex dynamics of relationships at work. The old Nirmanites is used to formal communication, no feedback systems, working late hours, and multi-skilling. The CEO wants democratic style of working, harness individual capabilities, clear feedback mechanisms in place, clear roles and focused output. But old Nirmanites have come with solid teams with a harmonious relationships and proven records of delivery on time. The compensation of RBU was kept aligned as per the salary polices of Nirman. New hires were offered salaries as per market rates. This change has triggered attrition of old Railway specialists.

b) Methodology usedThe Organizational Diagnosis Questionnaire (ODQ) is based on Weisbord’s practitioner-oriented theory. The ODQ generates data in each of Weisbord’s suggested six areas as well as in a seventh, attitude toward change. This item was added as a helpful mechanism for the person involved in organizational diagnosis. In attempting any planned-change effort in an organization it is wise to know how changeable an organization is. Such knowledge helps the change agent understand how to direct his efforts. Thirty-five items compose the ODQ, five in each of the seven variables. Respondents are asked to indicate their current views of their organization on a scale of 1 to 7, with a score of 4 representing a neutral point (Table 7).

Table 7: The Questionnaire (ODQ) Design with Responses

Stro

ngly

Ag

ree

Agre

e

Agre

e Sl

ight

ly

Neu

tral

Dis

agre

e Sl

ight

ly

Dis

agre

e

Dis

agre

e St

rong

ly

Parameters/Weightage 1 2 3 4 5 6 7

1. The goals of this organization are clearly stated. 2 5 3

2. The division of labor of this organization is flexible. 3 3 2 1 1

3. My immediate supervisor is supportive of my efforts. 3 5 1 1

4. My relationship with my supervisor was a Harmonious one. 3 6 1

5. My job offers me the opportunity to grow as a person. 2 2 2 3 1

6. My immediate supervisor has ideas that are helpful to me and my work group. 2 2 3 2 1

7. This organization is not resistant to change. 4 1 1 1 2 18. I am personally in agreement with the stated

goals of my work unit. 2 3 4 19. The division of labor in this organization is

intended to help it reach its goals. 1 4 3 1 110. The leadership norms of this organization

help its progress. 1 4 2 1 211. I can always talk with someone at work if I

have a work-related problem. 4 3 2 1

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12. The pay scale and benefits of this organization treat each employee equitably. 3 2 1 1 1 2

13. I have the information that I need to do a good job. 1 2 5 2

14. This organization introduces enough new policies and procedures. 1 3 3 2 1

15. I understand the purpose of this organization. 1 5 3 1

16. The manner in which work tasks are divided is a logical one. 1 2 5 1 1

17. This organization’s leadership efforts result in the organization’s fulfillment of its purposes. 5 4 1

18. My relationships with members of my work group are friendly as well as professional. 4 6

19. The opportunity for promotion exists in this organization. 1 6 3

20. This organization has adequate mechanisms for binding itself together. 4 3 3

21. This organization favors change. 4 2 1 2 122. The priorities of this organization were

understood by its employees. 3 3 423. The structure of my work unit is well

designed. 1 6 324. It is clear to me whenever my boss is

attempting to guide my work efforts. 2 3 3 1 125. I have established the relationships that I

need to do my job properly. 1 6 2 126. The salary that I receive is commensurate

with the job that I perform. 1 6 1 1 127. Other work units are helpful to my work unit

whenever assistance is requested. 4 2 2 1 128. Occasionally I like to change things about my

job. 1 4 1 3 129. I had enough input in deciding my work-unit

goals. 1 5 3 130. The division of labor in this organization

actually helps it to reach its goals. 3 4 2 131. I understand my boss’s efforts to influence

me and the other members of the work unit. 1 1 3 3 1 132. There is no evidence of unresolved conflict in

this organization. 2 1 3 1 2 133. All tasks to be accomplished are associated

with incentives. 1 3 1 2 2 134. This organization’s planning and control

efforts are helpful to its growth and development. 3 2 3 1 1

35. This organization has the ability to change. 1 3 3 1 2

The ODQ is a survey-feedback instrument designed to collect data on organizational functioning. It measures the perceptions of persons in an organization or work unit to determine areas of activity that would benefit from an organization development effort. It can be used as the sole data-collection technique or in conjunction with other techniques (interview, observation, etc.).The instrument and the model reflect a systematic approach for analyzing relationships among variables that influence how an organization is managed. The ODQ measures the informal aspects of the system.

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c) Administration of the ODQThe administrator of the questionnaire must emphasize to the respondents that they be open and honest. If they are not; data may yield an inaccurate assessment of the organization on any or all of the seven variables. All ODQ statements are positive and can easily be discerned as such, which may influence the manner in which the respondents react to the questionnaire.

d) Processing the Datai. The Sample size of the data represents 30% of staff each band comprising of Junior

Management, Middle level and Senior Management. They cover both technical and support departments located in head office as well as different project sites.

ii. The Website Survey Monkey is used to connect with all the participants (Figure 3). Within specified time and proper explanation, respondents have completed their Survey. However it is pertinent to mention that this group represents 1/3rd of the total staff and they are technical savvy &understands the utility of such surveys.

Figure 3: ODQ on www.surveymonkey.com

ndividual responseFigure 4: Individual Responses on www.surveymonkey.com

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iii. The responses collected by Survey is shown below as bar or line graph for collective representation each for Junior Band, Middle level and Senior Management.

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 351.00

2.00

3.00

4.00

5.00

6.00

7.00

Resp 1Resp 2Resp 3

Serial No. of Questions

No.

Indi

cate

s th

inki

ng

Figure 5: Line Graph of Junior Management

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 351

2

3

4

5

6

7

Resp 1Resp 2Resp 3

Serial No. of Questions

No.

Indi

cate

s th

inlin

g

Figure 6: Line Graph of Middle Management

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1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 351

2

3

4

5

6

7

Resp 1Resp 2Resp 3Resp 4

Serial No. of the Questions

Scal

e In

dica

tes T

hink

ing

Figure 7: Line Graph of Senior Management

e) Interpretation and Diagnosis

One of Diagnostic approach would be to average out the data on questions focusing on 6 dimensions of the box model including the 7th which is attitude towards change (Table 8).I find that most of the scores are below 4 and it indicates that RBU is doing well on all factors of the box model such as Purpose, Structure, Leadership, Relationships, Rewards, Helpful Mechanisms and also Attitude towards Change. It is credited to that fact that the participants in the survey have spent more than 4yrs in the current organization and have developed required networks to grow further and adjusted as per norms of the company. This may also indicate their “Frog in the Well” attitude.

Table 8: ODQ Scoring Sheet

Scores

Purposes JM MM SM Structure JM MM SMThe goals of this organization are

clearly stated2.00 2.67 1.75 The division of labor of this

organization is flexible5.00 3.33 2.5

I am personally in agreement with the stated goals of my work unit

3.00 2.67 2.25 The division of labor in this organization is intended to help it

reach its goals

3.00 2.00 3

I understand the purpose of this organization

2.67 2.33 2.25 The manner in which work tasks are divided is a logical one

3.00 3.00 2.75

The priorities of this organization were understood by its employees

3.00 3.33 3 The structure of my work unit is well designed

2.00 2.67 2

I had enough input in deciding my work-unit goals

3.00 2.33 2.25 30-The division of labor in this organization actually helps it to reach its goals

3.00 2.67 3.5

Total 13.67 13.33 11.5 Total 16.00 13.67 13.75

Average 2.73 2.67 2.3 Average 3.20 2.73 2.75

Leadership JM MM SM Relationships JM MM SM

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My immediate supervisor is supportive of my efforts.

3.33 2.00 1.75 My relationship with my supervisor was a Harmonious

one.

3.33 1.67 1.75

The leadership norms of this organization help its progress.

3.00 3.00 3.5 I can always talk with someone at work if I have a work-related

problem

1.00 2.67 2.25

This organization’s leadership efforts result in the organization’sfulfillment of its purposes.

3.67 2.33 2.5 My relationships with members of my work group are friendly as

well as professional

1.33 1.67 1.75

It is clear to me whenever my boss is attempting to guide my work

efforts

2.67 2.33 2.75 I have established the relationships that I need to do

my jobproperly

2.00 2.33 3.25

I understand my boss’s efforts to influence me and the othermembers of the work unit

3.67 2.67 4 There is no evidence of unresolved conflict in this

organization

4.33 4.00 4.5

Total 16.33 12.33 14.50 Total 12.00 12.33

13.50

Average 3.27 2.47 2.90 Average 2.40 2.47 2.70

Rewards JM MM SM Helpful Mechanisms JM MM SMMy job offers me the opportunity to grow

as a person.2.67 3.33 2.75 My immediate supervisor has

ideas that are helpful to me and my work group

3.67 2.67 2.5

The pay scale and benefits of this organization

treat each employee equitably

3.67 4.00 5 I have the information that I need to do a good job.

2.67 2.33 3.25

The opportunity for promotion exists in this organization.

1.67 2.67 2.25 This organization has adequate mechanisms for

binding itselftogether

2.67 3.33 2.75

The salary that I receive is commensurate with the job that I

perform

5.00 4.00 4.25 Other work units are helpful to my work unit whenever

assistanceis requested

2.67 2.67 4.25

All tasks to be accomplished are associated with incentives

4.00 4.33 4.75 This organization’s planning and control efforts are

helpful to itsgrowth and development

4.33 3.00 3.75

Total 17.00 18.33 19.00 Total 16.00 14.00 16.50

Average 3.40 3.67 3.80 Average 3.20 2.80 3.30

Attitude towards Change JM MM SMMy immediate supervisor has ideas that are helpful to me and my

work group4.33 3.33 4

I have the information that I need to do a good job. 4.00 2.67 2.5

This organization has adequate mechanisms for binding itselftogether

3.67 3.67 3.75

Other work units are helpful to my work unit whenever assistanceis requested

4.33 1.67 2.75

This organization’s planning and control efforts are helpful to itsgrowth and development

3.33 3.33 3

Total 19.67 14.67 16.00

Average 3.93 2.93 3.20

And the other Diagnostic approach would be to follow the same guidelines of assessment in relation to the neutral point (score) of 4. The score of each of the thirty-five items on the questionnaire can be reviewed to produce more exacting information on problematic areas. Thus diagnosis would be more precise. The individual scores above 4 are mapped in Fig 9.

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Table 9: Individual Scores

Weightage

Parameters

7 6 2 6 5 3 This organization is not resistant to change5 6 1 3 6 2 The leadership norms of this organization help its progress

4 7 2 7 6 5 The pay scale and benefits of this organization treat each employee equitably

7 6 3 6 3 4 This organization favors change7 4 4 6 5 2 The salary that I receive is commensurate with the job that I perform

7 6 4 6 5 3 There is no evidence of unresolved conflict in this organization

7 3 6 5 6 5 All tasks to be accomplished are associated with incentives

The individual scores on pay scale and benefits indicates scores 5 and above which means there are problem lies in this area and which indicates there is a variance in organizational offering and individual aspirations. There are specific observations that the candidates hired laterally are offered salary as per market conditions, thus it creates disparity with the pay scale resulted in leaving of internal talent. And this is further complicated by rising opportunities in overseas market like Middle East and Canada. There is system of performance linked reward, but no system of task based incentive or team based incentives etc. Therefore Individual scores are indicative of grey area in the organization. The Manpower composition mapped recently indicates that 80 % employees are Gen Y and only 20 % are Gen X, baby boomers and Veterans. Therefore it demands a total overhauling of the HR policies, career planning and leadership development programs. Nirman is reeling under high attrition and talent crunch amongst skilled workforce. Therefore it is desirable to focus on individual needs and aspirations. The staff members are not content with their higher authorities. There are unresolved conflicts about the management style; work life balance; ambiguous job roles; lack of training; indirect feedback mechanisms; lack of recognition of individual contribution and non -alignment of individual with organizational goals.

The interventions as per individual and collective diagnosis will be proposed as tangible and suggestive measures. They will reflect the one which are implementable at the BU level as well as corporate level. There will be many subsets will emerge during its discussions and implementations and will be required to modify it as per needs of various groups.

Table 10: Tangible Interventions and Can Be Easily Implemented At Business Unit Level Are Mentioned As Down Below-

Suggested for Management Band Proposed Measures

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For Junior and Middle Management level Knowledge attainment through e-learning and other trainings can be linked to PMS and should be included as a part of weightage in the overall scoring. This will help building the learning culture in the organization and fulfill their individual aspirations.

For all Management levels For more transparency and involvement, town hall meetings to be held on quarterly basis. Minutes of the meeting to be documented for reference and implementations.

Junior and Middle Management Team leaders They can be proposed to undergo assessment for leadership skills. Executive coaching programs can be planned for custom-built developmental needs of junior to mid-level managers. These programs can be monitored on yearly basis. Feedback to be discussed with candidate as well his colleagues and accordingly job roles to be designed. This will help managers to create value proposition in the careers for self and team members.

For Junior and Middle Management level Customized roles and responsibilities to be worked upon to cater to individual growth aspirations. Competency mapping will bring role clarity and better succession planning.

For Junior and Middle Management level There can be framework developed for proper distribution of work. Employees should not have ambiguous reporting relationships and all the related changes to be informed to stakeholders via a formal communication. This will reduce the conflicts at work.

Table 11: Suggestive Interventions Which Will Require Implementation at Corporate Levels-

Suggested for Management Band Proposed MeasuresFor all staff Compensation surveys to be done frequently and

thus salaries, benefits should be updated as per markets trends. This will be a comprehensive exercise and requires a commitment from the top management. But respective BUs needs to provide feedback with evidence on a regular basis. So based upon the majority stakeholders, management will be able to take action.

For all staff To develop a culture of open feedback mechanisms. There need to be champions for effective feedback mechanisms at various levels of the organization who can make the business case for how paying attention to primary stakeholder feedback will improve the quality, effectiveness and accountability.

For Junior Management The company needs to identify new talent pools, including working with different tiers of

C O D A P r o j e c t | 23

institutes. They can tie- up with top most colleges for the master’s program and encouraging employees to appear & funding their higher level education. This may reduce attrition at junior management levels in the company.

Section 4- HR Audit using PCMM

a) Understanding of the model

i. Background

Human resource management has evolved itself from a peripheral section to an increasingly

indispensable role towards the growth of a company. The ultimate goal is that when there is

competent workforce within organizations in aspects of competences, evaluation, knowledge

management, strategic plans, compensation, staffing, career development, etc., organizations will set

exemplary benchmarks in their professional field. However, in reality most of the organizations did not

integrate or implement these principles into organizational system and practice satisfactorily and

efficiently. Nevertheless, in order to overcome the increasing challenges of human resource

management, it is necessary for organizations to have an integrated measurement for various

competencies of their workforce.

In face of challenges aforementioned and the essential demand for workforce capability in business,

the Carnegie Mellon University Software Engineering Institute (http://www.sei.cmu.edu/) developed

the People Capability Maturity Model (P-CMM) to assist businesses to manage various maturity levels

and employees’ capabilities in the entire organization. The P-CMM is made up of five maturity levels,

and that the model is focused on the ultimate goal to develop workers’ competencies according to

the needs of process maturity levels. The P-CMM was initially published in 1995, and thus has been

successfully adapted into various multinational corporations or regional service centers, such as

Accenture, Boeing, Citibank, Honeywell, IBM, Intel, LG, Nokia, Siemens, Tata, Ericsson, Samsung,

Lockheed, HCL, Novo Nordisk, Pershing, etc.

ii. Significance of the model

Since organizations are not likely to devise a comprehensive framework to tackle all the workforce

capabilities, the People Capability Maturity Model offers as a roadmap and a set of guidelines and is

C O D A P r o j e c t | 24

sequenced with five stages for implementation. Besides, each progressive level of P-CMM clearly

declares unique transformation with powerful practice for attracting, developing, organizing,

motivating, and retaining its workforce…establishes an integrated system of workforce practices

that mature through increasing alignment with the organizations’ business objectives, performance,

and changing needs.

The People Capability Maturity Model is an emerging technique in the human resource field and

becomes a burgeoning approach in human resource consulting for organization development.

P-CMM is different from two other management process models, International Organization for

Standardization (ISO) or Business Process Reengineering (BPR) in that it focuses on the continuous

progress dynamically happening in the daily and practical processes primarily facilitated by the

human resource managers. Hence, it is desired that the processes in different levels of P-CMM

should be standardized so that standardized processes could be then duplicated and transmitted

rapidly.

In comparison of P-CMM with other models developed by the American Society for Training and

Development (ASTD), P-CMM is likely to enhance the comprehensive development in diverse

aspects in a connected manner in an organization. P-CMM progresses on its maturity level by

starting with the single competency in a particular set and coordinating the required competencies

into the bigger and other categories for the ultimate purpose in a desired P-CMM level. Thus, P-

CMM was gradually recognized by world-class multinational corporations as numerous HR

professionals verified its standards in aspects of general HR functions, competencies, human capital,

and organizational development and change. Also compared to ASTD competency models, P-CMM

is a much more systematic, more progressive, and mature approach for HR practice in real business.

iii. Characteristics of P-CMM

Generally speaking, P-CMM is an evolutional channel for organizational improvement and

C O D A P r o j e c t | 25

development. Hence, according to this trend of thought, P-CMM consists of some essential

characteristics as follows.

1. The theoretical foundation of P-CMM is from Total Quality Management, Human Resource

Management, and Organizational Development.

2. P-CMM is designed to improve the workforce practices; thus it has to be kept updated and under

constant revision in order to catch up with and conform to the latest business demands.

3. P-CMM is a model with five maturity process-based levels. Each maturity level has a standardized

process specifying its target areas and possible solutions to guide organizations to perform

efficiently in their daily routine.

4. During the practice of P-CMM, employees would be provided with ample opportunities to

develop their career potentials and generate more motivation to enhance their performance than

before.

5. The maturity framework of P-CMM is meant to construct a working environment where

“practices can be repeated, best practices can be transferred rapidly across groups, variations in

performing best practices are reduced, and practices are continuously improved to enhance their

capability.”

iv. Maturity levels of P-CMM

The People CMM consists of five maturity levels that lay successive foundations for

continuously improving talent, developing an effective workforce, and successfully managing

people assets of the organization. Each maturity level is a well-defined evolutionary plateau that

institutionalizes a level of capability for developing the workforce within the organization. The

goal starts from the short-term fix of ineffective practices to the more comprehensive overhaul

of the organizational culture. The details of content of each maturity level are as follows:

Level 1: Initial

C O D A P r o j e c t | 26

Organizations at the initial level have difficulties to retain workers and lack common vision on

management responsibilities as well as high employee turnover rate. Organizations at the initial

level exhibit some characteristics: inconsistency in performing practices, displacement of

responsibility, ritualistic practices, and an emotionally detached workforce.

Level 2: Managed

The process areas at the Managed Level (Maturity Level 2) focus on instilling basic discipline into

workforce activities. At this level, managers take responsibility for managing and developing their

people. The process areas at this level are Staffing, Communication and Coordination, Work

Environment, Performance Management, Training and Development, and Compensation. Since

the managed level is still regarded as a low-maturity phase, managers are very vigilant about

potential problems such as “work overload, environmental distractions, unclear performance

objectives or feedback, lack of relevant knowledge or skill, poor communication, and low morale.

Level 3: Defined

At the defined level, organizations clearly identify core competencies and align them with

business strategies and objectives. The competencies were mainly adapted from Lyle M.

Spencer and Signe M. Spencer’s (1993) competency model from “Competence at work: Models

for superior performance.” In addition, organizations develop an infrastructure by building on

practices from the previous level, and tie the workforce capability to strategic business

objectives. The process areas at Maturity Level 3 are Competency Analysis, Workforce Planning,

Competency Development, Career Development, Competency-Based Practices, Workgroup

Development, and Participatory Culture.

Level 4: Predictable

The focus of the predictable level is to empower and integrate workforce competencies, manage

employee’s performance quantitatively and establish competence-based teams (see Figure 11).

Besides, organizations increase the level of predictability for their operations by following

practices with measurable results that are supported by all levels of management. The expected

areas for implementation in maturity level 4 are mentoring, organizational capability

management, quantitative performance management, competency-based assets, empowered

workgroups, and competency integration.

C O D A P r o j e c t | 27

Level 5: Optimizing

The process areas at the Optimizing Level (Maturity Level 5) focus on continuous improvement of

workforce capability and practices. These practices cover issues that address continuous

improvement of methods for developing competency, at both the organizational and the individual

level. The process areas at Maturity Level 5 are Continuous Capability Improvement, Organizational

Performance Alignment and Continuous Workforce Innovation.

Level 1: Initial

Level 2: Managed

Level 3: Defined

Level 4: Predictable

Level 5: Optimizing

CompensationT&DPMSWork EnvironmentCommunication & CoordinationStaffing

Participatory CultureWork group DevelopmentCompetency based practiceCareer DevelopmentCompetency DevelopmentWorkforce PlanningCompetency Analysis

Inconsistent Management

People Management

Competence Management

Capability Management

Change Management

Repeatable Practice

Competency based Practice

Measured and Empowered

Practice

Continuing Improving Practice

Figure 8: The Five Maturity Levels of the P-CMM

Initial

Managed

Defined

Predictable

Optimizing

Mentoring

Organizational Capability Management

Quantitative Performance Mgmt.

Competence based assets

Empowered workgroups

Competence Integration

Continuous Workforce Innovation

Organizational Performance Alignment

Continuous Capability Improvement

Figure 9: Process Areas of P-CMM

C O D A P r o j e c t | 28

b) PurposeBased upon the experience, observation and understanding the current development of workplace practices in RBU has reached the second level of P-CMM. To begin with I will compare the workplace practices to the protocol in the second level of P-CMM.

c) MethodologyFor this purpose interviews are conducted with sample of staff members at the junior, middle and senior level management and the work experiences are correlated. The interviews aimed to seek more internal & personal perspective and not what is officially or explicitly recorded in the company documents.

d) DiscussionsThe adoption and construction of the second level of P-CMM in RBU is primarily consists of following criteria’s -

Goal(G)Commitment to perform (CO)Ability to perform (AB)Practices(P)Measurement and Analysis (ME)Verifying Implementation (VE)

Table 12: Adoption and Construction of the Second Level of P-CMM in RBU

Managed Level (Second level)Process Areas

1. Staffing

G i. Staffing practices are institutionalized to ensure that they are performed as managed process

ii. Individuals or workgroups in each unit are involved in making commitments that balances unit’s workload with approved staffing

iii. Staffing decisions and work assignments are based on an assessment of work qualifications and other valid criteria

iv. The organization actively recruits qualified talent as per requirements of the business

v. Individuals are transitioned into the positions in an orderly way

CO i. The organization establishes and maintains a documented policyfor conducting its Staffing activities.

ii. Management of staff should be law- and regulation-abiding.iii. Design the recruitment policies to ensure the fairness, justice and

openness of its process

AB i. Human resource managers are able to ensure the smooth execution of the recruitment process

ii. The assigned person-in-charge must have professional knowledge on law and regulations

iii. Organizations can provide resources like software etc., to ensure the smooth execution of the recruitment process

C O D A P r o j e c t | 29

iv. Budget is provided to implement human resource activities

P i. In the budget exercise every year, every unit has to provision for additional manpower if any.

ii. Members of the unit are involved in the interview and selections decisions

iii. Selection process is clearly laid out and staff members are trained in the process

iv. Multiple rounds of interview process to have consensus based decision on the selection of the candidate(s)

v. Proper screening , document verification and antecedent processes are implemented for genuine selection

vi. Causes of voluntary resignation from the organization areIdentified and documented

vii. Workforce reduction happens as per policies , but no proper outplacement services are provided

viii. Discharges of unsatisfactory performers are done as per organization policies and procedures

MEi. All new employees are kept on probationary period and their

performance is evaluated by their department head and based upon their recommendation the person is officially employed or terminated.

ii. Management information system is prepared on monthly basis for regular monitoring and for future course of action

iii. Recruitment papers are checked at multi-level in the HR department and documented for future reference

iv. Annual performance assessment of employees to understand their growth in the system and to cater to their training & development needs

VE i. Senior Management reviews of the recruitment and staffing analysis & suggests deadlines, solutions etc.

ii. Salaries offered have to be complied with internal salary policy and if there is gross mismatch with the expectations then suitable decisions will be made as per business requirements

iii. Presently there is no system of internal or external auditing of the recruitment processes

2. Performance Management

G i. Performance Management practices are institutionalized to ensure they are performed as managed processes

ii. Set up performance objectives for individuals and departments respectively

iii. Reward or recognize high-performing employeesiv. Training and Development needs are captured from PMS for career

development and succession planningv. Performance problems are managed

vi. Role clarity and reporting relationships are addressedvii. Establishing a clear linkage between rewards and performance ratings

CO i. The organization establishes and maintains a documented policy for conducting its Performance Management activities

C O D A P r o j e c t | 30

ii. An organizational role(s) is assigned responsibility for assisting and advising units on Performance Management activities

iii. Clear guidelines are released at organizational level to maintain parity and fairness across the company

iv. Data is collated at the organizational level to recheck the parity and fairness before distributing rewards

AB i. The HR office takes charges of the appraisal content and coordinates with other departments for that as well

ii. The HR office lists those high-performing employees for award recognition and proposes improvement plans for low-performing ones

iii. Proper orientation sessions are provided in performance management practices

iv. All the units are commanded for timely completion of the PMS process

P i. Performance objectives for each individual are reviewed on a periodic or event-driven basis, and, if necessary, they are revised

ii. If performance problems occur, they may or may not discussed with the appropriate individual(s)

iii. Organization and unit & department level objectives are set as per balance score card, MBO etc. and that will become framework for determining the objectives of individual employees

iv. Performance oriented development plan is the development tool for identifying development needs of the employee in his/her current role and forms an integral part of the appraisal system. It is to be jointly drawn up by the superior and subordinate

v. Following parameters, as applicable, to be considered while individual objectives are formulated:

Strategic Parameter (quantitative)Financial / Functional Parameter (quantitative)Development of Successor / Subordinate (quantitative / qualitative)Espousing Corporate Values and Vision (qualitative)

vi. Online PMS on SAP platform

ME i. Unit measures of Performance Management activities are collected and maintained

ii. All the units have to adhere to guidelines about the process of assessment as well distribution of rewards. Any deviation has to be approved at the higher levels

VE i. Executive management reviews the Performance Management activities, status, and results; and resolves issues

ii. For any genuine concern(s) employee(s) can approach the highest authorities and get it clarified or corrected

3. Training and Development

G i. To build up a second line of competent officers and prepare them as a part of their career progression to occupy more responsible positions

ii. Orientation of new employees

iii. To assist the employees to function more effectively in their present position by exposing them to the latest concepts, information and techniques and developing in them the skills required in their fields

C O D A P r o j e c t | 31

iv. To propagate learning culture in organization

CO i. The organization establishes and maintains a documented policy for conducting its Training and Development activities

ii. Organization establishes COE (Centre of Excellence ) for development and assessment needs

iii. PODP (People oriented development program) is a necessary part of Performance assessment

iv. Training calendars are prepared and upgraded every year

v. Budget is allocated for training and development programs

vi. In-house training institutes are set up for imparting technical and behavioural training

vii. Every individual should attended at least 2 man-days of training per year

AB i. The HR office arranges accurate training courses based on the individual or departmental demand

ii. For specialized modules pool of qualified professionals are identified and developed who have keen interest in training

iii. Tie ups with top colleges to provide masters educational programs

P i. Training needs are identified in performance appraisals process

ii. HR department with help of functional department have identified pool of vendors/institutes which can provide special software training etc.

iii. Customized training and orientation programs are developed for campus recruits by HR

iv. Monthly MIS are prepared to show progress on training activities of the unit

v. All the top raters are being send to COE for leadership programs

vi. For average performers programs are designed called good to great for improving their personality development, communication, presentation skills etc.

vii. E-learning modules are designed called as ATL (Any time learning ) for upgrading subject knowledge in management, safety, quality, six sigma etc.

ME i. Evaluate the enhancement of performance appraisal of skills or behavior after the training

ii. Analyze the feedback and evaluation from employee’s training to see if it reaches the expected objectives

iii. Assessment of ROI (return on investment)

VE i. Executive management periodically reviews the Training and Development activities, status, and results; & resolves issues

4. Compensation

G i. The compensation should be designed as per regulation

ii. The compensation should be consistent to be confirmed with policy guidelines. The compensation record should be established with approved verification and updated constantly.

iii. Compensation is equitable relative to skill, qualifications, and experience & performance

C O D A P r o j e c t | 32

CO i. The compensation is governed by corporate policies and guidelines

ii. The organization establishes and maintains a documented policy for conducting its Compensation activities

AB i. Payroll is rolled out regularly and punctually based upon approved compensation of employees

ii. Carrying out the bonuses across company under a uniform reward guidelines

P i. Salary details, tax planning and claims of individuals are available on an online shared service portal

ii. Provide employees with stock options

iii. Understand employees’ demands constantly to transform the demands into part of compensation to keep talents

iv. All compensation and benefits policies are available online for all management cadres

v. There is a shared service helpline number for clarification of all doubts related to salary, retirement benefits, other benefit claims, transfer expenses claims etc.

vi. Salaries are offered as per experience, qualification and management band

ME i. Employee perspectives towards organizational commitment, their morale, productivity will indicate the trends

ii. Ability to recruit and retention of key people

VE i. The management and process of the compensation system are based on related policies and regulations of the administration

ii. A responsible individual(s) verifies that Compensation activities are conducted according to the organizations documented policies, practices, procedures, and addresses noncompliance

5. Work Environment

G i. Provide safe and comfortable working environment

ii. Systemize the working processes related to the working environment

iii. Minimize the factors that distract employees from work

CO i. Ensure to obey all the proper laws and regulations to protect employee’s safety in the working hours like medical and accidental insurance coverage to all employees

ii. Organization has pledged to provide safe and congenial working environment to all employees

AB i. Arrange and announce a variety of safety training and skills in order to keep employees updated

ii. Work environments are audited regularly

iii. All work offices and sites are safety compliant

iv. Kaizan implemented

P i. Health camps are organized for individual well being

ii. Safe Man-hours at every workspace are recorded periodically

iii. Monthly reports are submitted on unsafe conditions

C O D A P r o j e c t | 33

iv. Safety Conscious Engineer Awards are given

v. EHS suggestion schemes are instituted

vi. Attendance of Safety staff are checked every day

vii. Corrective events are to be reported periodically

ME i. Proactive and reactive measurements are instituted

ii. Housing keeping standards

iii. Number of hazards reported by clients

VE i. Appreciation awards by the clients

ii. Employee satisfaction, morale boost are the indicators

6. Communication and Coordination

G i. Senior managers communicate and coordinate with various levels of managers through management meetings

ii. Hold individual or department meetings irregularly for collaboration or negotiation on the work progress to achieve organizational goals.

iii. Individuals or groups are able to raise concerns and have them addressed by management

iv. Individuals and workgroups coordinate their activities to accomplish committed work

v. Information is shared across the organization

CO i. An organizational role(s) is assigned responsibility for assisting and advising units on Communication and Coordination activities and procedures

AB i. Adequate resources are provided for performing Communicationand Coordination activities.

P i. Intranet portal is developed to disseminate information across the organization

ii. Be actively concerned about employee’s mental and physical health to maintain an effective relationship between employers and employees

iii. Interpersonal problems or conflicts that degrade the quality or effectiveness of working relationships are handled appropriately

iv. Individuals and workgroups coordinate their activities to accomplish committed work

v. Through various communication platforms, the organizational culture and value are to be transferred to enhance coordinative results of employer and employees

ME i. Organizational grapevine can indicate the effectiveness of communication and coordination

VE i. Enhance the organizational commitment behavior

ii. Check to see if there is a decreasing number of employees’ questions about controversial issues

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1.1 StaffingFor improvement in the Staffing as a Process area, an audit system is proposed to check the

verification of recruitment and selection processes. The vacant positions should be verified in the budgeting process and for any vacancy internal candidates should be securitized first before exploring external environment. This will help in fast mobilization project teams rather than depending upon external candidates. The lag time between interview and offer should be reduced down by cutting down unproductive processes. Talent acquisition is a high pressure and a critical job profile. However to optimize its effectiveness the percentage of candidates taken from the market should be limited to not more then 20-30%, and should be supported with campus selections, upgrading of skill, contract staffing, and recruitment of consultants. There should be a cultural induction of new employees and hand holding their smooth transition in the system.

2.1 Performance ManagementThe performance management system is a well-documented policy in Nirman. The reward

system is being worked out logically and implemented strictly to improve the parity across the organization. It can be significantly enhanced provided the roles and responsibilities are strictly worked out for individuals as per laid out system and if possible can be custom made to suit individual aspirations. There should be weightage given on feedback discussions of individuals. The PMS process can be further upgraded by adding the inputs of subordinates, peers, customers, suppliers and other related stakeholders. Also it is worth mentioning that trainings like good to great is a good initiative to improve the average performers.

3.1 Training and Development Training and development is an important function and encourage by top management. On the job training, employee orientation, technical trainings and behavioural trainings are some the important constituents. E -learning portal is instituted for various management and technical subjects. Also there is an online training library for technical modules. Every workspace has libraries for encouraging the habit of reading. However there should be an audit on implementation of training programs. And Employee survey should be done on regular basis to improve its viability and effectiveness.

4.1 CompensationRBU salaries are governed by the organization level compensation policy. Salary consist of components which includes base pay and allowances, retention pay, profit sharing component, retirement & pension scheme, performance linked reward, medical benefits and holiday privileges with family. Also organization offers opportunities for professional

C O D A P r o j e c t | 35

development, education reimbursement etc. The salary increase given each year is negligible, but there is significant increase in grade related allowances and eligibilities and of course handsome bonus awarded based upon unit and individual performances. Nirman

does salary correction every 5 years mostly. And there is a significant salary improvement in the graduate and diploma levels to attract the best talent from campus. However at the middle and senior level there is a constant challenge of retention of bright talent or functional experts. There are no team based incentives which encourages potential work groups.

5.1 Work EnvironmentThe important aspect of work environments are safety & security, ergonomically designed work spaces, free from distractions, proper communication systems, automated systems, available of canteen facilities in approachable distance etc. Nirman has committed to congenial work environments. And the process is documented well for uniformity in implementation. However the behavioural part needs to be improved further in terms of flexi hours, achieving work life balance and avoidance of excessive socialization.

6.1 Communication and CoordinationThe most important purpose in this matter was to create an effective relationship between employers and employees. Nirman has established communication norms and policies. There is a communication department at the organization level dedicated for the cause. To improve the morale of the employees management does walk the talk & interact with individuals and build a personal rapport with them. However there may be a need to improve communication between superior and subordinate not merely by exchange of mails but more face to face lively discussions, not merely a grievance handling session and this will be critical for developing work groups.

e) ConclusionsProcess Areas at the Managed Level focus on establishing a foundation of basic workforce practices that can be continuously improved to develop the capability of the workforce. RBU is assessed for level 2 for PCMM model and it is found to be matured towards managing people and to provide a supportive work environment with adequate work resources, providing a well-articulated compensation strategy, training and development opportunities. Employees are trained on interpersonal skills for effective communication for work dependencies. All this may be attributed to well-developed systems of Nirman.

C O D A P r o j e c t | 36

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………………………………………………………………….. Thank You ……………………………………………………………