2. www.businessmanager.in
August 2015 Business Manager1
By ANIL KAUSHIK
pg. 04
pg. 03
pg. 05
Tokenism-without
prejudice
- Dr.Vinayshil Gautam
Why do CEOs
fail?
- Dr.Ganesh Shermon
pg. 06
How Maggi
failed once - its
leadership twice
- Dr.D.N.Singh
pg. 12
Compensation vs
performance- Who
wins the battle?
- Sanjeev Himachali
pg. 14
Towards new
era of HR...
- Dr.A.Jagan Mohan Reddy
pg. 16
Principal Employer
not liable for PF dues
of Contractor
-H.L.Kumar
pg. 57
Organization’s
conscience keeper
-Alok Srivastava
pg. 59
INTERVIEW
HR Technology a Buzz
Business Manager in an exclusive chat with
NIRMALA BEHERA UDGATA,Head - Group HR,RSB
Transmissions (I) Limited.
pg. 09
TECHNOLOGY IN HR: BUSINESS MANAGER ROUNDTABLE
Technology gives HR a makeover
pg. 38
pg. 33
pg. 39 pg. 62
pg. 63
pg. 60
Dr. Pravin Durai
By Mihir Gosalia
Audit : An
opportunity for
positive action!
pg. 61
Why to get
scared of HR
audit?
SEXUAL HARASSMENT
AT WORK
Author :Alok Bhasin
Practical Guide to
LABOUR MANAGEMENT
Author :H.L.Kumar
MATCH THE AGE TO KEEP
THEM ENGAGED
Author :Deepak Malhotra
HR
&
Salil Chinchore Subir Verma Sudip Kar Aparna Sharma
S.Raghunandhanan R. Kavalapara Sunil Sankar Vinay Ravindran
pg. 18
COVER FEATURE

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August 2015 Business Manager2
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Published on 1st of Every Month
This issue of Business Manager contains 68 pages including cover
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Hon'y Editorial Board
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Impressive
Good and Impressive on knowing the HRD Legends. Thank you
very much.
-S.Ramesh
A collector’s item
July 2015 issue of Business Manager is a‘collector’s item’. If
someone asks me if there was one thing by changing which the
pace of growth of India can be doubled, my answer would be‘our
approach to HR’.
There is an immediate need to change our approach to HR
practices, which include selection of candidates for appointment
as President of India to handling issues like fixing minimum
wages. The Legends of HRD introduced in the anniversary issue
of BM had the vision to bring about changes in their
organisations and areas of research which they integrated into
their work for social benefit.
Sooner those at the helm of policy formulation allow Human
Resources Management and Development the position it
deserves in the running of government and organisations, the
better for the country.
-M G Warrier
Missing...
Received your BM for JULY,15. I am surprised to see that you
have not included the profile of one of the doyens of HR Late
Russy Modi of TATA .Some more legendary HR people's profiles
are not also included.
However, i feel that these are to be published separately. This
time i have missed your legal notes & other important features.
-PK Dasgupta
............
I just received July 2015 issue of Business Manager giving
“Legends of HRD”. Many will feel the list is somewhat incomplete.
Amongst the late legends the names of Prof.N.S.Ramaswamy,
Prof. Nitish De, Dr.L.K.Anand, Prof.K.T.Chandy and Dr.P.N.Singh are
prominently missing. Amongst those who are alive
Prof.Y.K.Bhushan, Mr.Santrupt Mishra are missing.
-Sharu S Rangnekar
Thanks
Sincere thanks for your placing me in prominent position
with several distinguished colleagues.
-Abad Ahmad
Exemplary
The issue has been wonderful. Heartiest Congratulations
to your goodself and the entire team of Business
Manager. I appreciate the hard work which has gone
behind this exemplary edition. The HR fraternity can
never ever thank you enough for such an exemplary
move.
-Dr.(Prof.)Debaprasad Chattopadhyay
Dashing
I have gone through the July issue which was real
inspiration to most of the young HR guys for shaping up
their career in HR. Legends are Legends where we cannot
replace them in the History. Their thought process,
initiatives are the supporting wheels to make the ball
rolling and HR fraternity has to learn so may professional
inputs from their dashing and daring nature of character
in HR field. A Humble gratitude to all of the legends who
have contributed lot to HR. Once again sincere thanks to
BM and team for bringing out a wonderful issue.
-Dr Y Nagendra Kumar
Readers are invited to comment on articles published in BM through email at : bmalwar@gmail.com

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August 2015 Business Manager3
Achieving balance
August, 2015
Vol.18, No.2
T
his is an era of technology that is changing the shape of HR landscape,presenting business
of all sizes with the potential to develop more efficient processes and create a more engaged
workforce.Technologyhasalmostinvadedeverysphereofhumanlifethusimpactedtheway
of thinking and approach to understand and resolve the issues related to workplace. Working
relations too are influenced by the technology leading to HR interventions at all levels to keep
organization ready to accept change in tune with technology.
Why we need technology in HR at workplace? The answer is simple.To have transparency and
open culture, to have quick disposal of issues, keep people more engaged and provide data to
reach accurate business decision in time in terms of people and productivity.It is evidence based
that technology has provided the better way of recruiting,training,data storage and retrieval and
performance management.
Digital innovation has changed the rules of talent management function. Today one needs
adaptable and flexible people with compound skills to become a differentiating factor in this era
of consistent change that technology offers. Being able to recognize the need for a technology
solution will be a significant business advantage.HR will have to evaluate what functions can be
automated and still provide desired levels of service.With increasing technologically advanced
options,HRprofessionalswillbetaskedtofigureoutwhenprocessesshouldbeautomated,versus
when a human face is the best route. No denial that HR Technology can improve cost reduction,
boost service levels,aid strategic focus and potentially improve employee engagement.
But,there is a flip side too.HR technology needs to support people and not just processes.HR is an
art and science too.Art,because It is about dealing people with soul,inspiring and enabling them
to deliver peak performance. Technology may not develop and enhance trust and sense of
belonging among employees and Science,because you have to measure skills and potential.You
havetostore,compileandvariousdatatoreachtoaquickandaccuratedecision.Here,technology
can provide a hassle free platform to act in these areas.
Whilenewtechnologyalwayssoundsgoodandexciting,questionremainswhetherorganizations
can adopt the same quickly to keep employees engaged and satisfied.In adopting the science
and technology in people issues, HR should never ignore the art of understanding and reading
human emotions that impact most at workplace.Going together with ability of using technology
and art of sensing and reading minds and hearts of people will only work.Too much dependence
on technology may push you in a slippery zone. For many, moving away from 'the way we've
always done things' toward cutting-edge, forward-looking technology requires a change in
mindset towards a giant step into unfamiliar territory.
The cover story of the issue is on this subject, where experts are going to put forward different
aspects of technological impact on HR and its challenges and what future has in store.It has come
from those who have soiled their hands with technology in HR.
If you like it let us know.If not,well,let us know that too.
Happy Reading!
Anil Kaushik

5. T
he sensation of MSG Maggi slows down and
silting began by the time this empirical sheet
is in the hands of the people. Probably, it was
the second week of May, while departing on
a two-week inter-state official journey, my
wife prepared Maggi, early in the morning around 7.30
am. She knew that normally I dislike the heavy
breakfast in such conditions and Maggi being lighter,
faster, digestive and tasty, attracts me more than any
other stuff. Shortly, our beloved Maggi started
appearing in the bottom-scale breaking news, and
progressing to the top as in competition with the
moon month, censuring the entire landscape of
electronic and print media in Indian Sub-
Continent.
As the news started breaking on the
Monosodium Glutamate, greater than the
permissible limits, the maggi became the
victim and the nation's ire were the maggi
not the contamination, which were the real
guilty as the chemical potentially has
issues related to the larger people health.
My son, who virtually lived on maggi
during his all three years Maggi Mumbai
breakfast, is by no means could calculate
the actual intake quantity of MSG, during
these years.
However, the mathematical calculations
and trusting the test are two different
dimensions, and in no way intertwined. The
last pack of maggi, he says still tasted the test,
but possible, the shorter on trust. It was a trust
taste, and not the test trust to him and the maggi
population.
Nestle had been a living brand in the larger part of
this world from decades, and maggi has been the good
August 2015 Business Manager12
www.businessmanager.in
How Maggi failed once -
its leadership twice
Nestle needed to reach, communicate and demonstrate concern with
wholesomeness of trust talk and transparency; it was required to be
emotionally intelligent in the hours of stampede. However, the company
seemed to be non existent in terms of people communication, clarity, and
concern and half prepared defensive mechanism were put in place.
Dr.D.N.Singh
Chief People Officer,Sataineless Steel & PowerMajor,Gujarat

6. share of monthly grocery for the intervening
breakfast, of the neo-middle class urbanites with
fullest integrity without failing on the two-
minutes-time-machine. The Company started to
demonstrate misely withdrawal of products from
the shelves, virtually under mounting media
pressure and up ante the various sections of
society. The health inspectors made their presence
felt and fame earned, state by state and shortly
through the nation, fading the taste and
manifesting the test.
Maggi has been in our lives since long, and has
earned an easy-going kitchen member position, in
whose hand the treasure-trust be relied upon.
However, within shorter span, the entire life cycle
seem to be filled in with deceit, deception,
mistrust, and hostility. The company seems to be
nonexistent in terms of people communication,
clarity, and concern and half prepared defensive
mechanism were placed in place.
Experiential learning teaches us the micro
variant degrees of different normal lab testing, in
terms of technological pursuit, precisiveness,
permissiveness, equipment standards, climatic
conditions and so on, yet the 'people belief and
trust' across geographies are identical, solid and
without any factorial variance. The larger
question, if required to be asked to the company,
must be asked, yet the central point stands, in a
country where primary facilities and sanitation
are the centre of debate, almost every consumable
items are containminated and spurious, from point
to point, from airport to bus-stand, including the
life saving drugs, and it is taken routinely, why the
greater hue and cry on maggi, and not the
contamination and spurious state of standard
acceptance in society? However, the answer lies in
the silence, non appearance, emotionally
unintelligent and gutless leadership of Nestle to
connect, speak, communicate, clarify, concerned,
and accept, the affairs as it may be, MSG,
irrespective of 2.5 ppm. Truly, it was the maggi
fiasco educated the Maggi masses, the level of
permissible MSG PPM. Nestle needed to reach,
communicate and demonstrate concern, with
wholesomeness of trust talk and transparency, it
was required to be emotionally intelligent in the
hours of stampede. It was stampede. Stand-bye and
standout. This is one area where emotionally
intelligent leadership can cut through much by
searching for the feeling behind the need and the
subtext underlying the fulfillment. This is one
area, where the organizational intuitive abilities
can be very practical. The emotionally intelligent
maggi could have cut to the heart of the matter.
For a contemporary example, let us take a look of
an organization which we by now know for its
touch in our lives.
After almost 100 years of successfully selling
the exact same product, Coca-Cola decided to mix
things up. Since its inception in 1886, the top secret
merchandise, seven formulas for coke had never
been changed, except for removing a minute
amount of cocaine in 1903. But in 1985, a secret
marketing test of 190,000 consumers revealed to
Coke's management that a lighter, sweeter, new
Coke would compete more successfully with Pepsi.
We all know that what happened after that. Coke
had made what can arguably be described as the
worst marketing decision since Ford's Edsel. Of
course, Coke was able to regroup and turn the
apparent fiasco into what some now argue was the
most brilliant marketing ploy, turning the media
attention into free publicity as it bought back its
original product, now called Classic Coke. The
combination of New Coke and Classic Coke was a
resounding victory over Coke's closest rival, Pepsi!
However, things turned out, the inaccuracy of
the consumer test lay in a lack of emotional
intelligence in this particular project for an
otherwise successful company. The consumer test
was well run but lacked sufficient depth in its
emotional component. The American consumer
had a special connection to Coke and the test failed
to tap this deep attachment. Even if New Coke did
better on taste test, the divorce from the original
would not be without emotional consequences.
It was like the death of your father, according to
Coca-Cola Chairman Roberto Goizueta. 'You know
you are going to be sad', he said. You are never
going to know how sad you will be - the depth of
your sorrow -until he is dead". If the test
marketing had been more emotionally intelligent,
peering into the consumer's feelings as well as
their taste buds, this gargantuan mistake could
have been avoided.
Coke loyalists were up in arms at these
marketing decisions. Goizueta and his associates
had to admit their mistake in the glare of public
censure. But quick on his feet, Goizueta was able to
turn lemons into lemonade by remaining the old
standby Coca-Cola Classic and making it available
alongside its new sibling, New Coke. As an
emotionally intelligent executive, Roberto Goizueta
was quick to respond to the glitch in the curve. His
reaction was not only responsible, it was (equally
important) responsive. Instead of getting into a
defensive mode, he accepted the new reality and
embedded it into Coca-Cola's continual success curve.
Much of Goizueta's success was due to his
ability to connect, care and communicate at inner
levels, the staff who were caught up in this
marketing fiasco and with the public through the
media. Lesser executives might have divorced
themselves from the problem area and shunned the
media during such a crisis, but not Goizueta, adept
at understanding the people reactions and
communicating what that knowledge in mind.
Since the New coke incident, Coca-Cola has
invested a lot of effort in becoming more proactive,
making Coca-Cola one of the 10 best performing
companies in the recent years, its novel marketing
ideas (a dimpled sprite bottle, a plastic contour
bottle and the introduction of two new competitive
soft drinks) make it even more successful in terms
of revenue, net income, happier share holders and
emotionally intelligent organization.
Learning Lessons to Maggi, if you are not
really with the Emotional Intelligence, co-
constructs, - T3
(testing, trusting and transparent)
and C3
(compassionate, communicative and
committed) to family maggi, can the maggi be
digestive to the world around !
August 2015 Business Manager13
www.businessmanager.in HOW MAGGI FAILED ONCE - ITS LEADERSHIP TWICE
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