Ever Wondered - Biggest Assests for an Organization ???

Employees are the Biggest Assests to Organizations .
Take this case :- An Engineering Company from Chennai ( dont want to name org) wanted to Expand its business world wide . so it acquired a Company in London .
The Employees in London was unable to accept the fact that their Management & Managers are from a developing Country . Nearly 80% of the employees in London quit Organization ;Post Acquisition .
At Any given point in Future it can acquire all other Assest but not Employees .
what will an Organization do without its Employees ???
PS: EMPLOYEES ARE THE KEY BEHIND EVERY SUCCESSFULL ORGANIZATION

How to Calculate Gratuity ?????

Formulae :-

Gratuity = [(Basic + DA) X 15 X No. of years of Service]/ (No. of working days in a month)
Example :- An employees Sal :- Basic 5000 / HRA 2000 / Special Allowance 4000 ( say he has worked for 5 yrs )
So Gratuity = ( 5000 * 15 * 5 ) /26
For gratuity calculation HRA and other allowances is not considered.

May would wonder whats the number 15 & Of Course why is 26 taken as working days in a Month ??
Answer :-
1> Gratuity is paid 15 days per month
2> According to gratuity act a month means and includes 26 days( excluding 4 weekly off variations not observed)

GRATUITY

What is gratuity?
Gratuity is a lumpsum that your employer pays you when you retire or resign from the organisation. You do not need to contribute any portion of your salary towards this amount.
Gratuity is paid out at your superannuation (if you retire at the age of 58), when you retire (at any other age) or resignation, and in the event of your death or being rendered disable because of an accident or illness. You need to have at least five full years of service with an employer to qualify for gratuity. This rule is relaxed in the last instance. In the event of your death, the gratuity will be paid to your nominee.

Compensation Surveys

Compensation Surveys

Paying people fairly is good for business. Underpay, and employees will eventually look for a better offer. Overpay, and the payroll budget and profitability will suffer. That's why companies use market data to research the value of their jobs. But what is "market data" anyway? To determine the prevailing rate for a job, companies can "benchmark" jobs against compensation surveys that are detailed and specific to the companies' industries and regions. A good compensation survey uses standard, proven methods of data gathering and statistical analysis to determine how much companies pay for a specific job in a specific industry. A number of types of organizations conduct salary surveys, including compensation information businesses, compensation consulting firms, industry associations, educational institutions, and state and federal governments. More than 80 percent of business managers and HR professionals said their companies either participate in or purchase at least one salary survey each year, according to a Salary.com poll. Companies with fewer than 500 employees spend an average of $2,000 annually on salary surveys, and companies with more than 5,000 employees spend up to $15,000 or more each year on these important data sources. Companies pay for compensation data because the benefits exceed the costs. The amount companies spend on surveys is just a fraction of a percent of their total payroll costs. For example, although a company with 5,000 employees may spend $12,000 on compensation surveys, its total payroll is probably at least $15 million - in which case, their survey cost would be just eight one-hundredths of one percent of payroll. Companies that participate in surveys (i.e., provide their own compensation data) customarily receive a discount on the final report. Fees for compensation surveys range considerably depending on the scope of the survey (regional vs. national, number of jobs surveyed, etc.). Participants could pay as little as a few hundred dollars for a small regional survey, or a few thousand dollars for a comprehensive, national survey. Perhaps the most expensive surveys are very specific regional surveys - those that pinpoint a very particular segment of the recruiting marketplace. Regardless of the survey, non-participants typically pay more than participants. How do researchers conduct compensation surveys? Surveys are conducted on a semiannual, annual, or biennial basis. Surveys normally fall into one of two categories: Custom and standard. Custom surveys are ones that attempt to answer very specific questions from a narrow selection of peer companies (e.g., What is the prevailing pay rate for salespeople in the pharmaceuticals business in the Northwest?). These custom surveys tend to be available to, and used by, the participants only. Standard surveys, on the other hand, are often published each year and attempt to cover the same range of companies and jobs. These broad surveys are sometimes sold to non-participants and made available to members or customers of the survey sponsor/vendor. This focus of this article is primarily on standard compensation surveys. The process of collecting data and producing a salary survey takes careful planning and execution that requires economic investment, people resources, and time. Some companies conduct surveys in-house using their own staff and compensation experts. However, most companies contract a third party to collect the data and do the number- crunching. The third-party approach provides a level of independence that most participants want. Some salary surveys are co-sponsored to attract more participants and to add credibility to the numbers. An experienced data provider in survey methods and statistical analysis is expected to put out high-quality, reliable, accurate data. Conducting a salary survey is a time-consuming task. A traditional survey of 15 companies encompassing 20 positions can take between 6 and 12 weeks from the initial planning to the time the survey is distributed to participants. For a survey that includes more participants and more positions, it could take as long as four to six months. Survey respondents then have two to six weeks to complete the questionnaire. The length of time depends on the number of positions surveyed and the amount of information requested for each incumbent (person in a given job). After the data has been collected, it can take two to three months to analyze the data and make the findings available to the survey participants and others. Therefore the time from initiating a survey and providing results can be up to 7 months or more. Traditionally, survey questionnaires are mailed out in paper form or on a diskette to participants, namely company managers or executives and human resources professionals, who will then complete and return the survey before a predetermined closing date. When assessing the methodology of a survey, it is important to look for the number of surveys mailed out, the number of participants, and the number of employees in the report summary. These numbers determine whether the survey is representative of the jobs and the industry. Also, there are several ways to collect and summarize data and it is critical that the user understand the underlying assumptions of a particular survey to assure its data is being used properly. It is even more critical when using multiple surveys to be sure that comparisons or compilations are done appropriately - on an "apples-to-apples" basis. Compensation survey checklist Here are some considerations to weigh for a company who is deciding whether to purchase a compensation survey. The background of the survey research firm and cosponsors, if any. Look for reputable firms that follow proven methods to gather and analyze compensation data. The scope of the survey. Look for studies that cover industries, jobs, and regions that are most applicable to your purposes; and that provide data on enough jobs to be cost-effective. The survey methodology. Review the summary of the methodology to make sure it's consistent with standards set forth by reputable industry associations such as WorldatWork. Be especially sure the research organization is surveying human resource professionals or other people knowledgeable about compensation information within a company, rather than individuals. The number of participants in the survey. A good survey should cover a representative number of companies for its target population. A survey doesn't have to cover the entire industry or region to be robust; even a few dozen responding employers in some industries can provide enough data for a valid survey. The names of participants. Look for your competitors and peers. For many jobs, you may be competing for candidates with companies in different industries but the same geographic area. The number of incumbents covered by the survey; and the sample size for each salary. A sample size of 30 or more is more statistically significant than a sample size of 10, provided the sample is representative of the statistical population. The relevance of the job descriptions to the positions being benchmarked. Look for a good match between the survey and your company. Be sure to compare job descriptions, not just job titles. The effective date of the survey data. The date a survey is published is always later than the effective date of the data within the survey. If necessary, age the data from the effective date to the current month. Multiple survey sources. As with any form of research, it is important to use multiple data sources to narrow in on the "true" answer. Relying on a single source can be misleading if that source doesn't perfectly reflect the market in question. WorldatWork suggests that compensation analysts should use multiple data sources wherever possible; consulting firms and academics agree. The exceptions come when there is only one data source, or when there is a spot-on data source, such as a custom survey, that truly describes a precise market. Number of participants. Make sure the participants are a good sample of the recruiting market. Generally, eight to ten participating companies is a good sample for positions below the management level. The sample size should increase the more senior the positions being surveyed, both to get a good representation and to allow for more job matches, since each company is organized differently. There could be limited pay data in some industries, or the available data might not be representative of the industry because of a low participation rate in the survey. Some firms reveal a list of participants, or at least those well known within the industry. The surveying company may disclose big-name participants to draw more interest from smaller companies. A list of major employers can also add credibility to the survey. An important exception to note is that if a compensation analyst or compensation consulting firm is using multiple surveys to produce their own derivative market numbers, they will aggregate the data by combining the surveys, placing differing weight on different sources and sometimes even making a qualitative adjustment. When the data has been aggregated in this manner, it is not customary to report numbers or names of participants. Participant profiles. The usefulness and relevance of a salary survey depends largely on the survey participants. For a small company, a salary survey of large corporations in the United States will be less helpful in determining what to pay employees than a survey of smaller organizations. Of course, a small company in a "company town" may find itself in a position to have to pay the same wages as the predominant employer in that town. Survey participants can be quite different, depending on the goal of the survey. If the survey covers pay in large companies in different geographical locations, the surveying company has to make sure that companies participating in the survey are of similar size but from different locations. To participate or not to participate Here are some considerations for a company to weigh when deciding whether to participate in a compensation survey The prisoner's dilemma. Every participant improves the quality and the validity of the results. Your company's participation can stimulate others to participate. In other words, if nobody puts data in, nobody gets data out. Granularity. If your chief competitors are participating, it may make sense for you to participate as well so that an industry cut includes more statistically significant numbers. Validity. If your company is one of a few players in a region or an industry, your participation could make a significant difference in the validity of the data. Cost. Participants usually receive a significant discount on the price of the survey. Ease of use. Some surveys are easier and less time-consuming to fill out than others. Security. Gauge your comfort level with the means of collecting the data. For instance, electronic mail is less secure than some forms of Web-based transmission; paper and pencil is less efficient but more comfortable to some respondents. Added value. If you have participated in similar surveys over the same period, or have purchased similar surveys, make sure the survey in which you are considering participating adds value, such as some key jobs that are difficult to benchmark. Job descriptions. Just as it is important to find surveys that compare companies of a similar stature, it's also important that the jobs being surveyed are comparable to the job being benchmarked. When consulting a compensation survey, match the job descriptions rather than the job titles, even if the survey uses generic or widely used job titles. For example, an associate could be an entry-level position at one consulting firm, or it could be the title for someone with an MBA at another. Companies are structured differently, and different companies use different names for the same jobs, so job descriptions are the best way to match positions. Beware of surveys that use only job titles, as it is unlikely the data will be a reasonable representation of the jobs you're interested in. A survey job description should list the primary job function in one or two sentences, followed by key responsibilities. While the descriptions should be generic and not specific to any one company, they should contain enough information for participants to match appropriately to ensure the data is accurate. It is also important to match the organizational level of the positions be surveyed. A position that is at the group level at one company may be at the subgroup or the sector level at another. Job titles are broken down differently in different surveys. Some surveys break them down by levels within the organizations, i.e., senior management, middle management, and entry level. Positions may also be broken down by job families or the types of responsibilities, i.e., business development, marketing, product management, and sales. Compensation data. There are many things to consider when analyzing the compensation components of a salary survey. Because companies have different pay structures, compensation data is collected in ranges as well as actual pay. Salary surveys can provide employers more information on the marketplace and how to set competitive pay without overpaying or underpaying employees. Surveys should ask for the minimum, midpoint, and maximum for the surveyed positions, in addition to the actual base salary paid. Usually, the prevailing practice for any one job is to pay a range of incomes. As a result, although the median pay for a job is likely to be a definable number, the range is just as important. Companies pay employees differently for various reasons. It could be the company's pay philosophy; or it could be the geographic location or the industry practice; or it could be the incumbent's length of service or proficiency in the job. Whatever the reason, it is unlikely that two companies will pay an employee doing the same job exactly the same amount. When reading the base pay figures, it's important to check how the numbers are calculated. The surveying parties can dictate to the participants how the numbers should be reported. Salaries can be on an annual, monthly, or hourly basis. For example, if the incumbent is a contract employee, hourly salaries are more relevant than an annual figure. The survey may request pay data for individual incumbents or averages for all incumbents matching a specific job description, depending on the types of surveys and their objectives. Incentives/bonuses. Look at both the actual annualized payments and the target level expressed as a percentage of base pay when evaluating incentives or bonuses. This allows for adjustments for atypical incentives and bonuses. Be sure to understand what is included in this figure and how it's collected. Although there is not a right or wrong definition of what is included in this category, it is important to understand how your numbers compare with those reported. In that sense, you need to know what it represents. Other payments. As compensation changes, salary surveys are changing to include other forms of compensation such as profit sharing and stock grants. For more senior-level positions, long-term incentives are just as important as base salary. For example, an executive's compensation package at a startup company can be made up of mostly stock options rather than cash compensation. For a survey to represent the total compensation, it needs to take into account the cash valuation of stock options. It is important to spend a little time learning how these stock option numbers are reported. It is also important to note that with stock options, the value may be a number, such as grant value, that is presented as a dollar amount but is not a present value and therefore cannot be added to base pay and incentive pay to provide a total direct compensation number. Effective date. For those surveys conducted on a regular basis, such as annual surveys, the effective date will be until the next survey is released in the following year. Otherwise, knowing the effective date of the survey can prevent companies from using outdated salary figures and causing error in pay budget forecasts. If the survey is not current, the person using it should age the salaries to the current date. If a survey was conducted in September, the salaries are likely to be as of September or even August. If you are using the survey in December to benchmark for a new position in the company, you will have to age the number. A simple way to do this is to take the annual rate at which salaries are moving for this job and prorate it, salary increases overall this year are around 3.5% but this may vary by job title. A similar approach is used in setting pay levels across a company. Sometimes these figures are set at the beginning, middle, or end of the company's payroll year by aging the appropriate compensation data to those dates. What about nontraditional sources of data, such as individuals? Traditionally, pay data is collected by sending forms to human resources professionals and sometimes business managers, those most knowledgeable and authoritative when it comes to pay within their companies. Data provided by corporate representatives is more accurate than data reported by individual employees because employers have a strong business incentive to report data accurately and consistently for a wide range of jobs. They also have experience and understanding of the process so that the data they provide tends to be relatively "clean." The growth of Web-based data collection methods has made it technologically feasible and cost-effective to gather compensation information from individuals. These new sources often report data that is valid and real. It is, of course, not the same as data collected and reported by trained compensation professionals; and like traditional sources, these alternative sources vary in depth, quality, relevance, and other measures of integrity. Conventional wisdom has always dictated that compensation data from individuals and recruiters is unavoidably, perpetually biased. Yet this hypothesis has been difficult to test because the data has not been prevalent. Although some see an incentive to exaggerate one's own salary or that of one's most recently placed candidate, a significant misstatement could backfire. Further, by assuring confidentiality and providing additional information, individuals could be convinced to provide very accurate data. Data from alternative sources, such as recruiters or individuals, can be good or bad. When good, recruiter data can be used as an accurate indication of what new-hires are being paid, and individual data should approximate the general market. However, both forms of data are still clearly different from company reported information. Combining the different sets of numbers may be deceiving but comparing them side-by-side can be revealing. Why pay for compensation data when it's available for free on the Web? Compensation information is becoming widely available on the Internet, either for free or for a fee most individuals can afford. Many of these sources provide accurate, timely information. Yet just as different types of financial services firms fill different consumer needs at different prices, not all data products are alike. A Web-based brokerage business might provide the tools and information a user needs to make investment decisions, but without the one-on-one, custom consulting to shape a personal investment strategy. While some investors are satisfied with data only, others are willing to pay for the added value these consulting services provide. Similarly, companies are willing to pay more for compensation data that provides the granularity of detail they need or the information that's hardest to find. They look for the name and reputation of the organization conducting the survey; the number of companies surveyed; the number of "incumbents," or employees covered by the study; the names of the companies that participated in the survey; and other measures of data quality and relevance to their industry. A middle-market professional compensation data tool might offer market-pricing information on commonly priced jobs, providing aggregated information based on primary and secondary research and analysis. The top-of-the-line product in the compensation data business is a custom study of what each individual job within a company should pay based on very specific, targeted market data. A large company could pay hundreds of thousands of dollars, or more, for this type of in-depth companywide analysis.

Whistle Blower ( Ethics )

Ethics

Since the Enron scandal erupted in December 2001, the issue of business ethics has come to the forefront of discussions about the behavior of corporate executives, auditors, attorneys, and board members. Subsequent revelations about possible accounting irregularities at other multinational corporations such as AOL, WorldCom, and Global Crossing make it clear that this was not simply a case of one company that ran amok, but it was a pervasive problem at top levels of major corporations. These scandals led to passage of the Sarbanes-Oxley Act of 2002, which made many of the practices that occurred in these companies illegal and provided penalties for violations. Some of the changes made by Sarbanes-Oxley include:

• Established the Public Company Accounting Oversight Board and required all public accounting firms to register with the board, which will conduct periodic inspections to ensure their compliance with audit standards.

• Established new standards to ensure the independence of auditors relative to the businesses they audit, including restrictions on nonaudit related services such as bookkeeping, management, human resource consulting, or other similar services; rotation of audit partner assignments at least every five years; and a requirement that the audit report and recommendations to the management team be delivered directly to the audit committee of the board of directors.

• Established standards for corporate responsibility, holding the chief executive of a public company accountable for the fairness and accuracy of financial reports filed with the Securities and Exchange Commission (SEC).

• Required CEOs and CFOs to reimburse the company for incentive- or equity-based compensation in the event of a material restatement of financial reports to the SEC caused by misconduct.

• Prohibited insider trading of stock during pension fund blackout periods when employees are not able to trade the stock in their pension accounts.

• Established ethical requirements for senior financial officers.

• Took steps to ensure the fairness, accuracy, and independence of stock analysis.

• Established criminal penalties for management officials who defraud shareholders, destroy documents, or obstruct justice.

Ethical behavior begins at top levels in the organization. The Board of Directors must demand it of the executive team, and the executive team must model it for all others in the organization. It would seem that this should be a pretty simple thing to do; after all, at the end of the day, ethical behavior occurs when, as Spike Lee said, people “do the right thing.” Because the values people hold are different depending on the culture they grew up in, their family background and their personal experiences, the right thing can mean different things to different people. That is why the executive team must set the standard of behavior, communicate it, model it, and enforce it if they are serious about maintaining an ethical workplace.

Code of Ethics

A corporate values statement can begin to set the stage for ethical behavior, but a code of conduct or code of ethics is really necessary to inform people in the organization about what behavior is expected and what is unacceptable. A code of ethics should cover topics such as those discussed in the following sections.

Confidentiality

In most companies, confidential information can be found in every department: marketing plans, new product development, financial statements, personal employee information, and e-mail accounts can all contain highly confidential information. HR professionals work every day with confidential employee information and are sometimes pressured to share this information for one reason or another. The inappropriate use of information collected during the employment process, information about an employee’s age, medical condition, or credit history may not be used in making employment decisions. HR professionals and other employees with access to confidential information have a duty to maintain its confidentiality.

Conflicts of Interest

As mentioned at the beginning of this section, employees must put the interests of the organization before their own. Any time an employee stands to gain personally from an action taken by the employer, there is a conflict of interest (except, of course, for payment of the employee’s salary). At a minimum, these situations must be disclosed to the employer, or the employee should remove themselves from the situation. The ethics statement should make it clear that even the appearance or perception of a conflict of interest is damaging to the company and should be avoided.

Fairness

Actions taken by employers have the ability to significantly impact the lives of their employees. Whether decisions are being made about hiring or layoffs, or accusations of malfeasance or inappropriate behavior are being made, employers have an obligation to treat employees fairly in all their actions. Employees who have the power to make decisions such as selecting suppliers or evaluating employee performance have an equal responsibility to handle these decisions fairly.

A real test of an organization’s fairness occurs when an employee makes a complaint to a federal agency, claiming that illegal activity has occurred. A person who does this is known as a whistle-blower. Some federal statutes, such as the Occupational Safety and Health Act, Railroad Safety Act, Safe Drinking Water Act, and Toxic Substances Control Act provide protection for employees who “blow the whistle” on their employers. Even so, it is a true ethical test to see how the whistle-blower who continues to work for the company is treated in the workplace once the complaint has been made.

Whistle-Blowing in the Wake of the Enron Scandal

In the wake of the Enron scandal, and particularly during the month when congressional hearings into the bankrupt corporation’s activities were televised each day, the Securities and Exchange Commission saw a marked increase in complaints, from an average of 365 per day in 2001 to 525 per day for the month of January 2002. On February 27, 2002, Katie Fairbank of the Dallas Morning News also reported an increase in whistle-blower complaints at the Department of Justice, from 33 in 1987 to 483 in 1999.

Sherron Watkins, who is credited with blowing the whistle on the Enron accounting practices that eventually led to its bankruptcy in December 2001, may have inspired the increased reports. Ms. Watkins followed a path typical of whistle-blowers by meeting with Enron CEO Ken Lay long before she went to the regulators. Her desire was to advise him of the wrong- doing so he could put an end to it. That unfortunately did not happen, and the company filed for bankruptcy a few months after their meeting.

While some whistle-blowers have statutory protection from retaliation, courts are divided on just what whistle-blowing activity is protected; those who go to regulators are often unable to work in their chosen profession after taking the action.

One whistle-blower who paid the price for his actions is Dr. Jeffrey Wigand, a former tobacco executive who was fired by Brown & Williamson Tobacco Corporation in 1993 after the company refused to remove a known carcinogen from their cigarette products. After his termination, Dr. Wigand testified against tobacco companies in civil lawsuits and appeared in an interview on the television show 60 Minutes; his former employers launched a campaign to discredit him. Dr. Wigand was a key witness in the lawsuit brought by 46 states against tobacco companies that was settled when they agreed to pay $206 billion to reimburse the states for medical expenses that were related to smoking.

Gifts

An ethics policy should address the issue of gift exchanges with customers, vendors, and employees. The ethics policy should describe under what circumstances gifts are acceptable and define limitations on the amounts if they are to be allowed. When the receipt of a gift unfairly influences a business decision, it becomes unethical and should be refused.

For companies operating outside the United States, this can be a difficult issue because in some cultures exchanging business gifts is a standard and expected practice, and the failure to do so can be seen as an insult. The Foreign Corrupt Practices Act of 1977 was enacted by Congress in response to revelations by multinational corporations of the bribes that were paid to obtain business in some foreign countries. The act prohibits the payment of bribes and requires accounting practices that preclude the use of covert bank accounts that could be used to make these payments.

Honesty

The code of ethics should set an expectation of honesty in the workplace. As with all other aspects of an ethics code, the executive team must model honesty in the representations they make to employees, customers, suppliers, and all other stakeholders in order for the message to be taken seriously within the company.

Insider Information

While insider information is most commonly associated with trading securities on the stock exchange, it can also apply to other areas. Inside information is any information that an employee has access to or comes into contact with that is not available to the general public. Using this information in the stock exchanges is illegal and can result in criminal prosecution and civil penalties.

The prohibitions against using inside information apply to an employee who overhears the information as much as they apply to decision makers in the organization. Federal law requires that those with access to inside information may not act on it until the information is made public.

Integrity

Integrity is defined as a firm adherence to a code of moral values. Integrity is demonstrated when an individual does the right thing, even when that “thing” is unpopular.

Personal Use of Company Assets

A code of ethics should clearly state what the employer considers to be an appropriate and acceptable use of company assets. In some organizations, the receipt of any personal telephone calls or e-mails is considered inappropriate, while in other companies a limited number is acceptable.

Workplace Privacy

Some employers feel the need to install surveillance cameras in work areas. This happens for a variety of reasons. For a retail store open late at night, it provides a measure of security for employees. Concerns about productivity or pilferage can spur an employer to install a surveillance camera. Whatever the reason, the employer must balance the need to manage the workforce with the employee’s expectation of privacy.

Advances in technology have also made it possible for employers to monitor Internet, e-mail, and voice mail usage, and this is seen as an invasion of privacy by some employees. Employers who plan to monitor employee communication and Internet usage should develop and distribute a policy clearly stating what information is subject to monitoring and under what conditions.

The code of ethics should include a statement about the use of surveillance and monitoring.

As important as a code of ethics is, it is equally important to be aware of situations where conflicting needs and desires make doing the right thing less clear cut. As those responsible for maintaining the confidentiality of personal employee information, HR professionals make ethical decisions on a regular basis and are in a position to model ethical behavior in the way they respond to inappropriate requests for information.

Ethics Officers

Businesses serious about establishing meaningful ethics programs have appointed ethics officers or facilitators whose responsibility is to ensure the adherence of the organization to the ethical standards set by the executive team. These officers advise employees at all levels in an organization on ethical issues and manage programs designed to allow confidential reporting of ethical concerns by employees, customers, shareholders, or others and investigate allegations of wrongdoing. Ethics officers provide periodic reports for the executive team to keep them apprised of ethical issues in the organization.

Six Emotional Leadership Styles

The Visionary Leader

The Visionary Leader moves people towards a shared vision, telling them where to go but not how to get there - thus motivating them to struggle forwards. They openly share information, hence giving knowledge power to others.

They can fail when trying to motivate more experienced experts or peers.

This style is best when a new direction is needed.

Overall, it has a very strong impact on the climate.

The Coaching Leader

The Coaching Leader connects wants to organizational goals, holding long conversations that reach beyond the workplace, helping people find strengths and weaknesses and tying these to career aspirations and actions. They are good at delegating challenging assignments, demonstrating faith that demands justification and which leads to high levels of loyalty.

Done badly, this style looks like micromanaging.

It is best used when individuals need to build long-term capabilities.

It has a highly positive impact on the climate.

The Affiliative Leader

The Affiliative Leader creates people connections and thus harmony within the organization. It is a very collaborative style which focuses on emotional needs over work needs.

When done badly, it avoids emotionally distressing situations such as negative feedback. Done well, it is often used alongside visionary leadership.

It is best used for healing rifts and getting through stressful situations.

It has a positive impact on climate.

The Democratic Leader

The Democratic Leader acts to value inputs and commitment via participation, listening to both the bad and the good news.

When done badly, it looks like lots of listening but very little effective action.

It is best used to gain buy-in or when simple inputs are needed ( when you are uncertain).

It has a positive impact on climate.

The Pace-setting Leader

The Pace-setting Leader builds challenge and exciting goals for people, expecting excellence and often exemplifying it themselves. They identify poor performers and demand more of them. If necessary, they will roll up their sleeves and rescue the situation themselves.

They tend to be low on guidance, expecting people to know what to do. They get short term results but over the long term this style can lead to exhaustion and decline.

Done badly, it lacks Emotional Intelligence, especially self-management. A classic problem happens when the 'star techie' gets promoted.

It is best used for results from a motivated and competent team.

It often has a very negative effect on climate (because it is often poorly done).

The Commanding Leader

The Commanding Leader soothes fears and gives clear directions by his or her powerful stance, commanding and expecting full compliance (agreement is not needed). They need emotional self-control for success and can seem cold and distant.

This approach is best in times of crisis when you need unquestioned rapid action and with problem employees who do not respond to other methods.

COMPETENCY MAPPING !!!

QUICK INFOS on COMPETENCY MAPPING

Objective:

To link Attitude, Skill and Knowledge at the Expected Competency Level and the Present Competency Level of ASK.

Instead of evaluating ASK individually, the aim under the Competency mapping is to measure the blend of ASK in the form of competency. If a Star Performer performs or excels others, then you will have to take his competency level as a role model. Select the attributes accordingly under the headings of Attitude, Skill and Knowledge.

If you take ASK means, it is totally linked with Job only. Job demands what level of Knowledge, what are all the Skills and What are all Attitudinal Skills required. It is not the general Qualification, macro level Skills and Attitude. In measuring the Competency, you are actually measuring the micro level competent levels of an individual. For example, in one Manager’s Communication Competency, “He may call his colleagues, Yes Sir without calling by name,” That communication (micro) may bring positive results to him. Somebody’s personal cleanliness and hygiene practices may bring good results. Hence when you want to measure the competency level, you may have to split the job description in to minute details of demand which leads to productivity.

Hence when you pool the levels of ASK, in a star performer, you will have to see which competency under ASK takes the lead, may his knowledge or skill or sometimes his Attitude. I know one person who does not have required levels of Knowledge and Skill, but, still he brings results to the organisation, because of his Attitude which is Positive and constructive. Attitude is something like a beautiful wrapper which invites to taste the knowledge and skill. Quantification of Knowledge and Skills is easy but it is difficult to quantify the Attitude. It can be done only by HR Managers who are really professional and interested. He must know the techniques of linking Attitude with the Performance by interpreting with available data. They can derive their own formula to measure the techniques of Attitudinal Skills. Generally feelings cannot be quantified on the surface. Attitude is a Feeling. But the experts know the techniques of measuring the feeling. Hence for measuring the Attitude, take the Star Performer’s Attitudinal skills as a Bench Mark or Standard. Discuss with him and note down his reasons for good performance. Jot down in the graph about his ASK level. Under Attitude, what are all the Skills he applies to what amount. When you plan for ASK level with business strategy, you can easily plan Knowledge and Skill levels, but for Attitude, you can say the macro level behaviours. Competency comes out of micro level attitudinal approaches only. You cannot spell out the micro level skills unless it is experimented and experienced. Hence for mapping Attitude level, it is suggested that you can take the attributes experienced by Star Performers instead of imagining and mapping. ……2



……2
To map the Skill Level, again you can take the lead of Star Performer. Among the different skills required for job performance, find out the different densities the star performer applies. Also is the case of Knowledge. Split Knowledge in to various small ingredients such as:

Up-dating job knowledge by
- Sharing Communication
- Attending seminars/discussions/Training
- Reading Manuals/job-related Magazines/write-ups
- Attaining Educational Qualifications
- Voluntary learning from all levels irrespective of the status
- Self learning by observation/demonstration
- Experience
- Knowledge needs are satisfied

Hence if you want to prepare comp. mapping of any individual, write down all attributes from micro level onwards under Attitude, Skills and Knowledge separately and pool by quantifying each density level. It can be compared with Competency Mapping of Star Performer or an ideal Competency Mapping prepared for this purpose. If you find the gap in competency mapping of the ideal one or Star Performer and the employee concerned, Management is to plan for filling the gap in the comp. Level.

The success of implementation of Competency Mapping depends on the efficiency and involvement of HR Managers. First of all they must know what is Competency Mapping and how to draw it. It is totally a work of pooling the density levels of ASK and compare it with Star Performer’s ASK level. It is very important to study the smallest ingredients that are applied and practised by the Star Performer under Attitude, Skill and Knowledge.

If HR Professionals implement the Comp Mapping at all levels from sweeper to MD, definitely Quality will improve in both Products and Service. Competency Measurement must be done as per Job demands. Somebody performed Excellent. He achieved the Results. He is having good Relations with employees and also his Customers. Then HR must start measuring his techniques on ASK separately and then pool it together.

Comp Mapping is an innovative study and work. It is not a ritual but if HR involves, definitely they will draw competency mapping for all levels. HR managers who has the qualities of Philosophical Approach, Change Agent, Facilitator, Creative Person – he only can do best in Competency Mapping, otherwise, do not implement Comp Mapping in your organisation for the sake of implementation or ornamental or hi-fi purpose. Do something concrete and result-oriented which is helpful to the Management on Competency Mapping, otherwise, let you know open the topic on Competency Mapping for something you are doing wonders.

ATTRITION RATE - How to Calculate

(The formula and correct logic behind calculation of ATTRITION RATE)

((no. Of attritions x 100) / (Actual Employees + New Joined)) /100.

Examples:

1) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
150 20 25 155


So according to the formula: ((20 x 100) / (150 + 25)) / 100

Which comes to 0.1142 i.e. 11%

Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175

Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20

Which clearly shows that 175 – 20 = 155, which is your current headcount and at the same time you can say my attrition is 11.42% that shows you lost 20 employees of 150 and 25 more joined which makes count to 175.

2) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
100 50 0 50


This is the special case where we are considering attritions only keeping into mind that nobody has joined in particular month.

So according to the formula: ((50 x 100) / (100)) / 100

Which comes to 0.5 i.e. 50%

Now as you had 100 previously and now 0 joined so it makes 100 + 0 =100

Now if you calculate 50% of 100 i.e. 100 x 0.5 = 50

Which clearly shows that 100 – 50 = 50, which is your current headcount and at the same time you can say my attrition is 50% that shows you lost 50 employees of 100 and 0 joined which makes count to 50.

3) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
500 200 100 400


So according to the formula: ((200 x 100) / (500 +100)) / 100

Which comes to 0.3333 i.e. 33.33%

Now as you had 500 previously and now 100 joined so it makes 500 + 100 =600

Now if you calculate 33.33% of 600 i.e. 600 x 0.3333 = 200

Which clearly shows that 600 – 200 = 400, which is your current headcount and at the same time you can say my attrition is 33.33% that shows you lost 200 employees of 500 and 100 more joined which makes count to 400.

4) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
8000 5000 500 3500


So according to the formula: ((5000 x 100) / (8000 +500)) / 100

Which comes to 0.5882 i.e. 58.82%

Now as you had 8000 previously and now 500 joined so it makes 8000 + 500 =8500

Now if you calculate 58.82% of 8500 i.e. 8500 x 0.5882 = 5000

Which clearly shows that 8500 – 5000 = 3500, which is your current headcount and at the same time you can say my attrition is 58.82% that shows you lost 5000 employees of 8000 and 500 more joined which makes count to 3500.

Human Capital

Gross Salary is the agreed/committed compensation your Organisation agrees to pay on a monthly(periodic) basis against your services for that period.

Net Salary is gross salary less the deductions which are made on account of statutory compliances(like PF, ESI, Income Tax, Professional Tax) and other dues (Like Loans and Advances taken) which you owe to the Company and Legal dues if any. It is something you get in hand and commonly refer to as Take Home Pay.

Your Income Tax is based on the Gross Pay.

While CTC or Cost to Company is equal to Gross pay + Benefits, Perks and Prequisites i.e., the total Cost a Company incurs in employing the person
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Salary consist of two parts 1) Payments 2) Deductions:

Payment is refered to that part on which Company makes pays cash as per commitment and is commonly refered to as Gross Pay. It may be consolidated or divided into components under whose head a Company makes payment. In the latter case Basic is usually the compulsory component while the rest depends on the Company. HRA is another such component which is usally present.

For example some Company can give DA, while others do not.

In addition to the above Loan and Advances, Awards and Settlements & Compensations are also present if applicable.

The next section is Deductions:

Under this head all statutory deductions, Recovery of Loan and Advances, Taxes, Awards and Settlements are present if applicable.

The statutory Deduction includes Provident Fund (PF) and Employee State Insurance Act; Taxes usually include Income Tax and Professional Taxes.

Net Pay= Gross Pay - Total Deductions

For details of PF and ESI please refer to the relevant acts or can search this site for further details.

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PF : To be deducted from all - 12% of Basic salary + DA (if being paid) and VDA (if being paid). The employer too needs to contribute equivalent amount.

ESI : To be deducted at the rate of 1.75% from employees drawing salary upto Rs.7500/- gross per month, all allowances computed together. You need to ensure whether your organization’s location is exempted from ESI Deduction.
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