Social Cause Marketing - The Regis Group Inc

INTERVIEW
As financial meltdown has
turned into global economic crisis,
the human cost in terms of
lost jobs and displaced workers
is growing at a terrifying pace.
The International Labor Organization
(ILO) predicts that 38 million
people around the world
could lose their jobs this year
alone, sending unemployment
rates in Europe and the US into
double digits for the first time in
years and slowing ñ or in some
places reversing ñ the massive
jobs growth of recent years in
Asia. What would be the political
and social consequences? How
should governments, companies
and labor unions in countries
across the globe address this issue?
As we can see in hindsight this was a
cycle that was waiting to happen,
given the high growth rates and the
over extending of nearly all financial
and economic facilities that had taken
place since the early 1990s. This is a
correction; yes an unfortunate one,
but a correction that needed to take
place to ensure sustainable growth
across economies. While the implication
of this on jobs could be dramatic,
especially in the developed nations,
what this downturn would also do is
weed out the companies which had
not managed themselves well during
the good times. Going by the past few
months, I do not expect massive political
or social unrest due to this. Governments
across the world have been
taking proactive action to try and
minimise the pain on the average
workers. The steps taken by each government
are intrinsically linked to
their governance policy and therefore
the way we have been addressing this
in India is going to be quite different
from say how the US or Chinese governments
tackle them. These are times
when all parties have to come together
to take collective decisions and a time
when labor unions need to keep long
term interests in mind.
What is your assessment of impact
of US financial crisis (global
financial crisis) on India? Which
sectors/industries do you think
are affected most and what are
your perspectives on the way Indian
companies are managing
this unprecedented downturn?
Given that the US is the worldís largest
economy and closely linked to economics
across the world, an upheaval
in the US has far-reaching consequences.
In countries like India, the
strengthening of the dollar has had an
immediate impact. Also the sectors
Tapan Mitra as Chief of Human Resources, and his team have been instrumental in developing
robust HR systems and processes in the company, focusing on performance management,
leadership development, market-driven compensation structures, job classification, competency
management, team building, and talent development, ensuring healthy employee relations and
high levels of employee engagement. He is also responsible for the successful integration of HR
processes with any acquired entity. His leadership has enabled Apollo to move to the next level of
people development and performance management.
Tapan Mitra joined Apollo Tyres in early 2005. Prior to that he was with Ballarpur Industries Ltd.
(BILT), where he was Vice President, People Development and Communications. He began his
career as a management trainee with JK Papers in 1977, moving on to Voltas Ltd., and then to
BILT. He has worked both at the plant and corporate HR in these organizations. International exposure
with institutions like INSEAD, IMD, Centre for Creative Leadership, and Saville Holdsworth Ltd.,
have further complemented his in-depth functional knowledge.
Schooled at St Xaviers Delhi, Tapan Mitra is a Delhi University Gold Medalist and National Scholarship
holder and has a postgraduate degree in Sociology from the Delhi School of Economics. He is
actively associated with HR platforms at CII, National HRD Network, All India Management
Association, National Institute of Personnel Management, ASSOCHAM and the Conference Board,
apart from being a guest faculty in leading management institutes.
An ardent photographer, he enjoys reading and listening to western music. He believes that a true
"people's manager” needs to be adept at handling interpersonal relationships and be able to
communicate with clarity across organizational hierarchies. Equally important is the ability to
address employee concerns in a proactive manner.
that have been most impacted are
those which have a high exposure to
the US economy like IT services.
However, others like the hospitality
businesses, infrastructure development,
high-end or export-oriented
businesses like gems and jewelry will
suffer more than others.
In terms of Indian business, we
have once again surprised ourselves
with our ability to be agile and adjust
quickly. Majority of our businesses
had taken on themselves efficiency
enhancing and cost cutting drives at
an early stage, preparing themselves
well for the tougher days ahead. However,
I do have to say that in India, we
are blessed with a large, diverse and
growing domestic market which creates
a certain buffer for us during a global
downturn.
As Chief of HR at Apollo Tyres,
whatís the plan of action to manage
through the crisis? Any layoffs?
Our people have voluntarily taken
lower perks for two quarters to ensure
that the company remains profitable.
It has been difficult, but as Chief HR
my and my teamís role becomes easier
when people themselves are willing to
take collective decisions to ensure a
better future. At Apollo the culture of
teamwork and looking out for the
greater good is very high, which has
always worked in the companyís favor.
I feel, in many respects, this gives
us an edge over other companies. No
we have not had any layoff, however
the normal practice of non-performers
being weeded out of the system continued
to take place. Our focus has actually
been on redeployment and production
management to keep manpower
costs low, rather than layoffs.
Recently, when the UK arm of accounting
firm KPMG asked its
staff if they would be willing to reduce
their workweek ñ and
thereby save jobs ñ in the event
that business dried up, an overwhelming
85% signed on. Probably,
the deal is a first for a British
financial services firm. Itís unlikely
to be the last. A recent survey
by Watson Wyatt finds that almost
one employer in ten intends
SEPTEMBER 2009
69
EFFECTIVE EXECUTIVE