Structuring Professional Management

1. Structuring Professional Management K S Gopalakrishnan Vice President – IR &HR Site:Foundry Division,Sholinghur

2. Evolution of HRM in BIF Phase 1 (Upto 2005) Human Resource practices Phase 2 (2006-2010) Competency based management Phase 3 (From 2011) Astra project

3. Phase 1 Human Resource practices

4. HR Vision We recognize our Human resource as our most precious asset, and aim to harness their potential for individual growth and organizational effectiveness. We should ensure systematic and comprehensive “Total care of people” to realize harmonious industrial relations, purposeful welfare, result oriented performance management, individual-centric training and development to improve the quality of work life of the employees. Issue : 1 Jan 2001 Executive Director-Foundry 1 Phase 1 : Human resource practices

5. Human side of BIF Atmosphere of care Basic requirements Developmental aspirations • Provide: • Housing for employees • Subsidised food • Fair-price shops • Uniform • Health check ups • Institute: • Free –Medical centre • Vocational training centre • Own vehicle scheme • Recreational club • Free –Education for wards • Computer literacy classes Dedicated employees Empowerment of Employees PUSH PULL BIF one large family Improve the quality of life Employee participation Social meets Ownership and accountability • Periodical Family visits to foundry • Sports day • Awards of recognition • Suggestion schemes Atmosphere of trust / Organisational climate Phase 1 : Human resource practices 2

6. HRM Recruitment & Placement Occupational, Health and Safety Training & Competency Development Total Employee Involvement Vacancy Identification Skill Set Selection Induction Program Placement Career & Succession Planning Needs Identification Curriculum Design Faculty Selection Training Methods Training Effectiveness Evaluation Competency Evaluation Employee Health Screening Safety Audits Safety committee meetings Safety Education Design Ergonomics Industrial Relations Employee Welfare Statutory compliance Suggestion Schemes QC circle CFT Employee Satisfaction Survey PDA 3 Phase 1 : Human resource practices

7. Manpower planning for Recruitment Business Plan Succession plan Expansion Plans New technology / New work methods Resignation Employee profile Manpower planning Recruitment Placement Training Development 4 Phase 1 : Human resource practices

8. Health In house Occupation Health Centre Pre-employment check for new entrants Periodical deworming / Immunization schedule Annual in-house health check up for illness /Master health checkup by hospitals Referrals to reputed medical institutions for deserving cases Counselling and advise by Dieticians on food habits Provision of Diet meals Training including Yoga on healthy way of life Developing Government health centers for better treatment to employees / public Observance of statutory and OHSAS provisions 5 Phase 1 : Human resource practices

9. Safety Man related safety Machine related safety On the job & off the job training for safer operation. Detect Safety related abnormality during operation and rectify. Regular patrol inspection for dangerous action and Implementing Poka Yoke Perform regular equipment diagnostics as per statutory norms and established standards. Identify, analyze and rectify the accidents / near miss cases Simplify equipment operation through Kaizens. Wearing of personal protection equipment Carry out mock drills and fire fighting training Regular patrol inspection for unsafe conditions and rectification through countermeasures / Kaizens. Safety caution boards across foundry for better awareness Safety manual preparation & training. Safety manual preparation & training 6 Phase 1 : Human resource practices

10. Safety award by Government of TamilNadu

11. Training and Development Customer complaints due to lack of knowledge and skills Knowledge & skills required for future business needs in terms of new technology & new processes. Internal non-conformities and rejections due to lack of knowledge & skills Are the knowledge & skills available Lack of knowledge and skills resulting in poor operational performance obtained through PDA Career and Succession planning Identification of training needs Competency mapping Classify the needs as Vital, Essential and Desirable Identify the number of training hours, curriculum,scope and the trainers Review & Approval Trainer & Training course data base Make a training plan and training budget Prepare a monthly training calendar Impart training as per plan Measure trainee effectiveness Measure trainer effectiveness Periodical review of effectiveness and retrain if required Measure training course effectiveness Update the resource data base 7 Phase 1 : Human resource practices

12. Total Employee Involvement Active participation & contribution in TQM / TPM initiatives Suggestion schemes &Continuous improvement projects Presentation by employees themselves to management on continuous improvement projects Participation in contests / quiz programmes by our employees conducted by customers / suppliers and Government agencies Sports and tournaments for employees Facilitating employees for Government awards like Best worker award (Uyarntha Uzhaipalar Virudhu) Encouraging employees to pursue higher education for self development Providing opportunities for higher education (BE,MBBS) to employees children Bearing the entire cost of education of a child of employees 8 Phase 1 : Human resource practices

13. One of our employees receiving the Uyarntha Uzhaipalar Virudhu

14. Phase 2 Competency based management

15. What is Competency Based Management ? Competency Based Management (CBM) is an approach that enables people management in the strategic direction. It enhanceshuman capital, and Improves the overall organizational capability CBM supports imperatives such as speed-to-market,customer satisfaction, flexibility, and employees’ controlof their careers and personal lives Phase 2:Competency based management 9

16. Why Competency based management ? • Competency Mapping exercises were found adequate for Sustenance and Continuous Improvement, but not sufficient for Breakthrough and Innovation • Training plans are not developed based on competency requirement Phase 2 : Competency based management 10

17. Salient Features of CBM • Mapping role competencies and create competency dictionary • Conducting assessment centre and identify development needs • Preparing individual specific development plan • Preparing succession plan and link the development plan • Incorporating development goals as KPIs in performance management system • Enabling development through job rotation and continuous education • Enabling grassroots empowerment, implementing score card basedperformance monitoring and skill based progression system Phase 2 : Competency based management 11

18. Competency based management • Competencies for future business strategies to be identified and developed • Individual aspirations and organization's requirements to be linked • Enhance competency level of the organization Bell curve representing the normal distribution of performers in BIF Exit SHIFT Competencies when properly applied, significantly skew the distribution to the right to create a “High Performance Organization”. Phase 2 : Competency based management 12

19. What is competency Competency is demonstrated ability for superior performance There are two types of competencies – Leadership & Functional Functional Leadership Phase 2 : Competency based management 13

20. BIF Requirement Composition of competencies required for various levels. GM/VP Top Mgmt Mgr / Div Mgr Sr Mgmt Sr Egr / Dy Mgr Mid Mgmt Entry Jr Egr / Engineer Legend Leadership Functional Phase 2 : Competency based management 14

21. The Methodology • Business Plan • Future Strategies • Culture • Organization Structure Discussion with Top Management 1 • Studying the Job • Mapping the responsibilities • Defining the Job description • Evolving the functional competencies required for the role “Task Analysis” to evolve functional competencies required for a role 2 Competency Dictionary development • Functional Knowledge • Application skills 3 • Leadership Qualities • Skill “Behavioral Event Interview (BEI)” to evolve leadership competencies 4 • Gap Analysis , Training Plan , Curriculum Design • Faculty Selection , Special Assignment , Small Practices • Coaching , Role Modeling , Observation Gap Assessment & Individual Development Plan 5 Results • Highlight potential leaders • Train internal assessors • Evolve model to link KPIs & IDPs 6 Phase 2 : Competency based management 15

22. Performance Mapping through CBM Competency based Performance Management System – Tracking of continuous Improvement (MpCps) & Breakthrough Projects (MFO). Phase 2 : Competency based management 16

23. Benefits Phase 2 : Competency based management 17

24. Current Vs Future Competencies - Example Department : TECHNICAL Role : DESIGN ENGINEER Competencies for the future business needs Competencies for current business needs • Design capabilities • Brake design • -EWB • Finite Element Analysis • Stress Analysis • Structural Analysis Present Competency • Analysis of metal solidification • Designing software to predict solidification for materials like Compacted Graphite Iron,GGV,GGV SiMo etc., • 3D Modeling • Knowledge on Gating and Risering practices • Knowledge on Pro-E, Unigraphics and IDEAS • Developing machining program in Pro-E • Basic contraction knowledge Competency Enhancement Phase 2 : Competency based management 18

25. Results 4 24 18 11 Knowledge and Skill enhancement 60 Phase 2 : Competency based management 19

26. Phase 3 ASTRA project

27. Background • A team was chartered to review and come with an action plan to improve the state of HR functions by taking into account the issues faced today, Industry benchmarks and best practices that will be useful in implementing the project. The team consisted of ten members representing majority of functions. • The team discussed with management and agreed on a prioritized set of initiatives to focus on working structure (i.e.,team structure, resourcing, team goals etc.) towards executing these initiatives Phase 3 : Astra project 20

28. Examined 5 areas of HR policy covering the talent management cycle A. Attraction, Recruitment and Selection E. Career Growth, Development and Training B. Engagement and Retention D. Compensation and Benefits C. Performance Assessment Attrition and Retirement Phase 3 : Astra project 21

29. Identified 19 HR related initiatives to pursue Initiatives A. Attraction, Recruitment and Selection Workforce planning (e.g., workforce requirements, role definitions, JD / JS) Talent sourcing (i.e., channels used, communication to potential candidates, branding) Talent selection (i.e., pre-screening, interview process, interview format, competency based assessment etc.) Induction (e.g., orientation program, buddy systems) B. Engagement and Retention Employee satisfaction (e.g., develop stronger identity with BI, CSR initiatives, socialization, conduct annual survey, exit interviews etc.) Employee policies (e.g., standardize and publish,) Communication (e.g., management town halls, HR programs, policies & processes) Support during a role change Mentorship Formalization of culture (e.g., consistency across the firm, reinforcement of values etc.) C. Performance Assessment Objective setting (e.g., clear measurable goals, MBO, standardization across functions) Assessment criteria (e.g., streamline PDA form, ensure competencies are more relevant and more tied to end result, grade based differentiation,) Assessment process (e.g., curve fitting, manager training in PDA process, 360 degree feedback) D. Compensation and Benefits • Compensation strategy (i.e., fixed vs. variable, benchmarking and level setting) • a. Immediate compensation adjustment (revise existing pay scales in line with future strategy) • 15. Compensation structure (e.g., flexible compensation package, benchmark travel, leave and other benefits) E. Career Growth, Development and Training Grade structure and career growth (e.g., career advancement paths, technical experts) Potential assessment & career planning (charting out a 1-2 year plan with employees, job rotation etc.) Standardize development opportunities (e.g., competency based training, education) Talent Reviews (leadership and functional bench strength review, succession planning ) Phase 3 : Astra project 22

30. Guiding Principles for Implementation Provide sufficient Management Support to ensure follow through over next year (e.g., director sponsor for each work stream) Ensure that this HR Initiative has buy-in across the organisation (e.g., cross functional implementation teams; locational considerations) Focus on creating Sustainable Processes rather than quick fixes. Ensure Impact is Measured through clear pre-defined goals Create a Balanced Work Load from a team perspective and overall company perspective 23 Phase 3 : Astra project

31. Project Structure Role Management Team (Review every 1-2 mos) • Ensure ongoing support across the organization (e.g., visibility, resources) • Ensure alignment of initiatives with business goals Steering Committee (Review every 2-4 wks) • Provide mentorship to teams • Help resolve road-blocks that cannot be handled by the team Project Mgmt Team (Review every 2 wks) • Track project status of all initiatives • Ensure consistency across initiatives (measurement, execution and content cross linkages) • Ensure build up of HR capabilities to maintain processes post implementation ExternalSupport Core Implementation Team • Define objectives and work plan for each initiative • Implement initiative: request / co-opt additional resources as needed during implementation • Measure progress against pre-defined metrics 24 Phase 3 : Astra project

32. Some samples of initiatives 1. Talent Sourcing Description: To effectively and efficiently acquire talent suited for organizational needs. To deploy right channels of recruitment, including in-house, for sourcing best fit persons within the shortest time. • Goals / Outcomes • Reduce time to fill an open position from XX days to YY days • Identify 2 – 3 creative / new avenues to source the right talent (e.g., online, in-house advertisement) • Enhance awareness of BI amongst potential candidates • Increase selection ratio once a candidate is brought in for department interviews from XX% to YY% (i.e., percentage of candidates that we would want to hire) • Deliverables • Define specific actions / info to be published / modus of publicity etc. to build brand image eg. Academic Institutions / Job Fairs / Forums / BI Website / Auto – Auto Components fairs • Define channels that BI will use for specific job types (e.g., diploma holders from XX, YY and ZZ for job type AA or BB, GET from WW, VV for job type CC etc.) • Define BI’s image for recruitment • Define interaction process and timeline with each channel (i.e., who is responsible, what is the level of interaction and or branding required with the channel) 25 Phase 3 : Astra project

33. 2. Employee Satisfaction Description: To develop a process for capturing employee satisfaction level at a defined frequency, Providing feed back to employees, conducting structured exit interviews and a system to improve the satisfaction level. • Goals / Outcomes • Creation and measurement of an employee satisfaction index with specific components and measured through multiple avenues (e.g., survey, structured exit interviews etc.) • 2-3 initiatives at each site / corporate to improve employee satisfaction • Deliverables • List of initiatives to be identified to proactively nurture employees & enhance satisfaction • Create an employee satisfaction survey that is used to construct an employee satisfaction index and create the process to administer the survey (when is it given, who takes it etc.) • Develop a framework to address issues that arise out of the survey at the department level, site level or corporate level • Administer the survey once and develop a plan to address issues from the survey 26 Phase 3 : Astra project

34. 3. Mentoring Description: To Design & Develop a process which facilitates personal & professional growth in an individual by sharing the knowledge and insights that have been learned through the years. All GET & Lateral Entries up to deputy Manager will undergo this process for a period of one year. • Goals / Outcomes • XX% of employees will have a mentor • Employees with a mentor score higher on employee satisfaction index along XX dimension • YY% of manager level & above will be trained and ready to perform the role of a mentor • Mentor to mentee ratio of XX:YY (e.g., 1:2) • Deliverables • Define goals and objectives of a mentor-mentee relationship • Identify target mentor and mentee populations and create matching program • Conduct training program for mentors and launch pilot program • Develop mentoring survey to assess the effectiveness & improve program 27 Phase 3 : Astra project

35. 4. Formalising Culture Description: Reinforce the strength of Company Culture from an informal to formal process of dissemination • Goals / Outcomes • Convergence of culture across sites and regions (measurement TBD) • Faster cultural assimilation of industry hires • Deliverables • Define the aspects of ‘culture’ that we want to reinforce at Brakes India • Define how we measure existing culture (e.g., through a survey or interviews) at regions or sites • Create a change program to shift culture towards the desired state (e.g., identify visible encouragement of adherence to behavioral standards / likewise discouragement of non-adherence, create right tool sets to obtain culture etc.) • Identify channels through which culture setting is done (e.g., induction, management town-halls etc.) Phase 3 : Astra project 28

36. 5. Objective setting Description: Define a clear process of setting goals for individual which are measurable and are linked to Business and Company objectives. These are reviewed and updated each year. • Goals / Outcomes • Clear MP-CPs and MFOs to all levels of the organisation till shift incharges • Transparent objective setting process and up to date monitoring system • Facilitating entity to coordinate & moderate policy deployment, performance review and course correct. • LTO, MTOs and yearly targets with clear inter-linkage. • Baseline objectives for a common role across the organisation. • Deliverables • Define what a good vs. bad objective (based on linkage, measurability etc.) and how one creates good objectives based on manager’s objectives • Define the process for objective setting across the company (e.g., first at director level, then at a VP level workshop etc.) • Perform objective setting exercise once (trickle down to manager level) and train managers and above on how to repeat this annually • Specify how to audit objectives (to ensure ongoing consistency) and perform training as needed Phase 3 : Astra project 29

37. Results of initiative prioritisation Harder to implement Easier to implement Low Employee policies Support during Role change Workforce planning Talent selection Talent sourcing Communication Induction Importance Compensation structure Assessment criteria Career planning Mentoring Objective setting Compensation strategy Employee satisfaction Assessment process Grade structure Formalize culture Development initiatives & Training Compensation adjustment Talent reviews High Low Urgency X Gap 30 Phase 3 : Astra project

38. Ease of Implementation • Defined as : How easy or difficult it is to implement measured by complexity of entities involved – Hands on involvement of / does not involve Top Mngt. / Single Vs. Multi Function / External Support (Only For Knowledge). • Top Mngt. + Multi Function + External Support - 1 • Top Mngt. + Multi Function - 2 • Top Mngt. + External Support - 2 • Multi Function + External Support - 2 • Multi Function - 3 • Top Mngt. + Single Function + External Support- 3 • Top Mngt. + Single Function - 4 • Single Function + External Support - 5 • Single Function - Not a feasible option • External Support - Not a feasible option • Top Mngt. - Not a feasible option 31 Phase 3 : Astra project

39. Benefits rolled out so far • Communication of policies through portal. • Mode of Exit interview revised • Mentoring and buddy programme • Identification of unique positions and job description for succession planning • Creation of Development Center. 32 Phase 3 : Astra project

40. What is a Development Center ? • DC is a virtual center where participants and assessors congregate for 2 to 3 days to • Create a trust and open atmosphere for learning and reflection • Participants are put through a variety of tests at individual and group levels to • Perform various tasks • Assess strengths and weaknesses against specific pre-determined competencies • Provide non-judgmental development feedback to each participant’s leveraging strengths and areas for improvement • Identification of Hi-Potential employees for accelerated growth and the determination of gaps in competencies that need to get plugged in 33

41. Thank you