2007-2008 - Cgglobal.com

Human Resources (HR)
Crompton Greaves has always fostered an
integrated approach towards HR — that of
aligning its human capital in all its facets with
business and organisational transformation.
Hence, the HR imperatives at Crompton Greaves
encompass a wider canvas. It consists of HR
management; productive and harmonious
industrial relations; raising productivity through
the Crompton Greaves Production System
(CGPS); business excellence initiatives; and
influencing the Company’s thrust on Corporate
Social Responsibility.
During the year, in a first-of-its-kind
endeavour, the Company successfully
implemented a variable pay scheme for its
leadership level management based on
CROMPTON GREAVES MANAGEMENT DEVELOPMENT CENTRE, MULSHI FOCUSES ON DEVELOPING AND
NURTURING THE SKILLS AND TALENTS OF ITS EMPLOYEES
Crompton Greaves’ future efforts will be
focused on a unified global philosophy and
approach to human capital management
During the year, the Company successfully
implemented a variable pay scheme for its
leadership level management based on
Economic Value Added (EVA)
Economic Value Added (EVA). The scheme is
unique in that the EVA parameters are linked
with performance thresholds of a chosen group
of competitors rather than the Company’s own
internal targets. The result has been a greater
linkage of performance and variable rewards
with how the Company performs vis-à-vis its
competitors.
Integration of the business leadership in
HR processes, receives continuous attention
of Corporate HR and senior management.
Quarterly “HR Summits” were initiated during
the year to create greater ownership and
accountability for human capital and to
stimulate major changes in HR policies. The
purpose of these Summits is to achieve greater
business leadership involvement and, thus,
yield better transformational and peoplecentric
results.
As with all companies worldwide, talent
retention at Crompton Greaves continues
to be a challenge. While attrition levels are
no worse than comparable companies in
the manufacturing industry, the company is
giving even greater emphasis on building a
talent pipeline, enriching job roles, providing
challenging career paths and a satisfying work
environment which promotes professionalism,
openness and freedom to innovate, with
minimum hierarchical intervention. It is
expected that these initiatives will keep attrition
to minimal levels.
To address changes in the market
environment and create a better link between
job roles and remuneration structures, the
Company retained the services of a major HR
consulting firm. Based on its recommendations,
Crompton Greaves has considerably realigned
remuneration structures for its executives at
various levels. Meritocracy and differentiation
— based on consistency of performance and
potential, continue to be the guiding force for
deciding remuneration levels.
Employee engagement and feedback are
key metrics for the Company’s HR initiatives.
These are implemented through a variety
of mechanisms, such as ‘open houses’ with
the senior management, the Performance
Management System, and involvement of
a large number of employees in Companywide
initiatives. To demonstrate its sincerity
in receiving feedback, in 2007-08 the senior
leadership team volunteered and participated
in a 360-degree feedback programme.
CGHR4U, the Company’s HR Portal, continues
to grow in strength and has become a truly
HR Life Cycle Management System. Existing
modules are being further strengthened for
content and user-friendliness. During the
year, new modules were added in the area of
complete automation of appraisal process,
i.e. from goal setting to pay-outs; movement
of employees — transfers, deputation and
unauthorized cessation; and the entire
recruitment cycle.
The integration of CGHR4U with the
Company’s remuneration systems has enabled
Crompton Greaves to issue its executives
their annual salary certificates in e-form. The
Company will also be providing its executives
the facility to e-file their Income Tax Returns as
yet another employee-friendly measure.
Training and development continues to
receive serious attention. A well designed
and full corporate training calendar ensures
18 ANNUAL REPORT 2007–2008 CROMPTON GREAVES LIMITED