Talent crunch key concern: Apeejay
Apeejay Surrendra Group, an over Rs 4,500 crore diversified industrial and services conglomerate, has set a target to become India’s largest and most profitable privately-owned family business by 2010
By Writankar Mukherjee, TNN |
Apeejay Surrendra Group, an over Rs 4,500 crore diversified industrial and services conglomerate, has set a target to become India���s largest and most profitable privately-owned family business by 2010. The group, which currently employs around 43,000 people in businesses such as tea, hospitality, shipping, real estate, retail and financial services, is now planning to expand into new areas such as ship building. Apeejay Surrendra Group���s director (HR & strategy) Sourav Daspatnaik spoke about the challenges facing the HR fraternity today:
What are the key HR challenges facing the group, especially since it is now planning to expand into new lines of business?
Supply and demand mismatch of high-performing talent has become the main concern. Skills such as merchandising and CRM in retail, specific technical and marketing positions in real estate are far and few. Hence, it is now important to develop such talent in-house by training and developing such capabilities. The HR challenges then is to continuously monitor and scan business environment and interpret them with HR solutions.
As per latest surveys, the pay rise expected in India is an average of 15% to 20% per annum, figures unheard of in the West. Even China will have lower pay rise. While pay rise may be justified, the business case on productivity and profitability norms and ratios still remain a question mark. New businesses, therefore, will require acquiring core technical skills and developing new skills through fast paced and innovative training.
In that context, do you have plans to undertake HR restructuring for any of the businesses?
HR structure is defined by business needs. We have revamped the entire HR structure about a year ago and will have a relook as and when required. Our hub and spoke model of corporate HR is that of a shared services provider supporting each of the businesses and the embedded HR within each business is working fairly well. This has helped to bring in synergy across the group, provided a group identity and is cost effective in building competence and delivery. Though we work with leading consultants from time to time, we also develop internal expertise in the long-run.
ADVERTISEMENT
Succession planning has become a big issue of late. Do you have any proper succession plan in place amongst employees?Succession planning and a career path is intrinsic to building a leadership pipeline. We have recently embarked on career pathing and succession planning exercise, at middle level and senior level. This will take some time to get institutionalised in view of the new emerging business paradigms.
How could the industry best address the issue of affirmative action and job reservation for backward classes in private sector?
Several Indian conglomerates have backed caste-based reservations in the private sector. To improve the system, companies should establish explicit and focused qualification criteria to be used in selection and promotion decisions.
ADVERTISEMENT
Communicate these requisite criteria clearly, ensure that the selection procedure is perceived as fair, emphasise the recipient���s contributions to the organisation and establish the conditions under which such employees can co-operate to meet organisational goals. If the industry can come forward and make an effort to employ those qualified amongst the marginalised groups, we would not even need to discuss the issue of legislation for reservation any further. HR professionals have a great role to play and perhaps be the forerunners to make affirmative action a reality.What is the group���s vision as an employer by 2010?
ADVERTISEMENT
The vision as an employer is to build a culture of performance, commitment and entrepreneurship with best in class people processes to deliver outstanding value for our people and organisation. HR should be in a position to enable the employees to achieve their maximum potential and make it joyful experience for them to work with us.Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
ADVERTISEMENT
