Toughen Up Employees to Handle Crises at Workplace

Leena Brian (26), recently joined a manufacturing company in Mumbai as manager, but the company was acquired soon after. Everything was in sixes and sevens during the transition. In the face of uncertainty, her boss made four of her colleagues quit. Brian met the managing director of the newly-formed entity to share her concerns. In the next two weeks, several open houses were conducted, leaders were empowered to take quick calls on problems, and the company averted a crisis. Shreya Biswas lists a few things corporations must keep in mind in such a situation.

Empower People
Every level of leadership should empower the next level of people below it. Provide them space in their area of responsibility. Encourage innovation, reward and recognise them. It has to be built into the culture over a period of time. At Titan Industries, for instance, it’s a routine exercise. It recently held the annual ‘Titan Interweave’, where 25 teams presented brandrelated innovations, and the Titan Innovation Bazar, where 120 teams took part and showcased their ideas. “Encouraging people to go beyond the call of their duty and recognising their efforts builds an organisation, which can respond to adversity with the ease with which it does in times of stability,” says S Ramadoss, VP, HR and administration.

Provide Opportunities
Employees respond to change best when they see their own career growth associated with the company’s transformation. Providing the right opportunities and cross-functional responsibilities prepares them for such scenarios. A robust internal mobility policy also makes employees feel secure and they know the company would always prefer its own people for any task than an outsider.

Let them Decide
Instead of creating a hierarchical organisation, insist on giving people a clear line of authority and empower them to take swift decisions. “People shouldn’t be penalised for every risk or decision they take, else they will only stick to the routine and not face challenges when required,” says K Sudarshan, managing partner, EMA Partners International.

Engage With Stakeholders
Every time an organisation goes through a transformation, the level of engagement with stakeholders plays a crucial role in deciding the success of that change. “They will know where the company stands and will respond positively to change, says Shalini Sarin, director, HR, Schneider Electric, India.

Feed Change
Transitions to new processes, structure or even technology should be part of an organisation’s DNA. It should be fed in at regular intervals so the resources become a great support in times of crisis. “Drive company programmes like Six Sigma or move to a new technology like campaigns. This will build agility amongst people and any unforeseen events will not be a shock to them. They will adapt to it slowly,” says Sarin. 

(The Economic Times, Mumbai 12-07-2011)

Five Ways To Clinch An M&A Deal Overseas

Indian companies acquiring firms abroad have crucial lessons to learn before they cement the deal. Mark Oshima, senior vicepresident, Aon Merger & Acquisition Solutions, shares some insights with Moresha Benjamin. 

Follow ground rules 

There are some key issues that the company acquiring needs to be aware of from the word go. In India, for instance, executive compensation focuses on the salary compensation whereas in the US and Europe, the emphasis is on severance pay, asset transactions, data privacy, cash bonuses, stock options and retirement funds. In Europe, specifically, workers’ councils play a crucial role. They are similar to Indian worker unions but are more stringent and organised when it comes to rules and regulations. For instance, an employee cannot be forced to work beyond specific hours. 

Outline main objectives 

The primary aims of many firms looking to acquire companies abroad are similar. A study by CFO Research Services’ and Aon Hewitt’s Human Capital Management highlights that 59% of firms thought that adding complementary products, brands, or service lines were important aspects of an acquisition, while 52% believed gaining access to new markets was a priority. Capturing market share from competitors was on the agenda for 32% of the firms surveyed, while 25% looked to acquire proprietary technology or operating processes. 

Adapt to cultural differences 

There are two categories of differences companies are faced with — national culture and organisational culture. They need to understand that national culture cannot be changed at any level; if they do, it will be at the cost of losing employees and their brand image. Don’t underestimate culture in integration success. What can be changed and modified is organisational culture. If a company lags behind in technology, the company acquiring it can introduce it for better productivity, while keeping in mind the national culture and making sure no one lags behind. This requires training sessions across different sections of the firm. 

Study employment laws 

In the US, employment laws take into account race, religion, lifestyle, age and so on. Companies that are in the process of acquiring firms abroad need to go through these levels thoroughly. What is accepted in their homeland will not be the case in another nation. The company can be taken to court for flouting any of these norms. It’s better to be aware and make sure nothing of the sort occurs. 

Let HR play an active role 

HR plays a highly important role when a company is mulling over their strategy of overtaking (overtaking is not the same as taking over. Overtaking happens in a race. But a takeover is an acquisition) a firm abroad. HR executives need to be proactively involved in the process. A study by CFO Research Services' and Aon Hewitt's Human Capital Management end of last year on the success and failure of M&A found that 59% of M&As were successful when the HR team was involved at the start of the process. HR helps understand both the business and the culture of the new organisation. Unless you understand the people, you cannot understand the business.

(The Economic Times, Mumbai, 02-06-2011)