Social Cause Marketing - The Regis Group Inc

INTERVIEW
thereby bringing down the cost of
good by using means at its disposal
like lowering excise rates. The government
has also given a certain amount
of fiscal incentives to sectors which
can push demand. It has attempted to
bring down interest costs both on corporate
borrowing as well as areas like
housing loans. The government is also
ensuring that rural demand does not
flag. All this adds up to having a positive
impact on individuals at every
level, in some way or the other.
Send workers home without sacking
them, is another often-suggested
solution. Companies are
increasingly putting in place
telecommuting policies to cut
costs and increase productivity.
Of course, this might just work
largely in service and highly individualized
sectors and may not
work in manufacturing and
where physical presence is essential.
However, what are the challenges
in allowing employees to
Work From Home (WFH) and
what precautions do you suggest
companies should take before
adopting WFH policies?
Work from home or flexi hours are
all great alternatives in sectors and
functions where they are possible. I
would always recommend these
measures. This brings down costs
both at the corporate and individual
level. Utility costs can be brought
down by companies and individuals
save on commuting and other costs.
Of course there are multiple challenges
to such measures. But I have
always seen that majority of individuals
tend to behave in a responsible
manner, if they are given a responsibility.
There will be some who
will buck the trend, but does that
mean we will stop trusting everyone
else or not implement something
that is beneficial to all parties concerned?
Is there possibly a way to manage
downturn without downsizing?
Of course, many argue that itís not
downsizing, but rather right sizing.
Are there any illustrative examples
of either companies or
countries not having gone in for
SEPTEMBER 2009
downsizing during the previous
crises?
There certainly is. Once again, not
the easiest of options. However it depends
on what is the goal one is looking
to achieve that will dictate the
process. Are we looking at massive
cost cuts only in the human resources
area? Are we looking at overall
reigning in of costs, which will
also impact the HR domain? What are
our long term plans? By when do we
expect to see an upturn? And of
course what is the financial position
of the company. The last will in fact
be a key factor to work out many related
details.
No major company in India has
undertaken the kind of dramatic
downsizing that you are referring to.
Circumstances have been kind to us
but it also probably shows that our
companies are quite robust and our
people are flexible and innovative in
their approach to HR and manpower
issues. What most companies, like
Apollo, have done is to reduce costs
by shutting production for a while,
cutting back on the work week, by
cutting back on travel costs and by
deferring a certain amount of high financial
impact training programs.
The most short term thinking is to
cancel training and recruitment
of good quality people externally.
Should companies stop hiring
fresh talent? Should they stop imparting
the crucial skills required
for their employees to become
quality employees?
On a short term, say a quarter or two,
it is possible and often desirable to
curtail training spends. I am saying
curtail, since some training ñ lower
cost or ongoing modules or high impact
sessions ñ could continue. Over a
longer term, it is not really possible to
survive, or do well, if we completely
do away with trainings. This is one
area which enables the company to
become future ready and is a major retention
tool. Also hiring fresh talent is
a need-based item. If there is a critical
need in a certain area, which cannot
be filled internally, companies rarely
have an option but to hire, even if that
means doing so in a downturn. At
74
Apollo Tyres, we ourselves have hired
talent during this slowdown.
What should be new role of HR
departments? How can HR departments
take a leading and influential
role in the business response
to the economic downturn?
HR, anywhere and everywhere needs
to be sensitive to all situations, but
proactive and swift. People in HR
need to understand and balance their
skills between two sets of needs ñ
those of the individual employee and
those of the company as a whole.
Most HR departments play a major
balancing role between these two, to
seek out the most effective and least
painful method.
In todayís world, people in HR departments
have to understand business
well. How the business is done,
the key factors affecting it, the environment,
the regulatory atmosphere,
etc. If HR personnel can do this well,
their ability to influence business,
and often guide business decisions
would increase. And definitely during
times of crisis, HRís role cannot
be over-emphasized.
What is the role of leadership in
navigating the companies
through the troubled times, ensuring
that their companies do
not go down under and also their
employee morale is kept high?
Leaders make or break companies.
Good leaders create lasting companies
and leave a legacy. There is a
huge difference between the two and
the value of good, strong and effective
leadership, one that has a human face
and is sensitive, is enormous in
todayís world where people are our
real assets. At Apollo, we have been
fortunate to have not just one or two
such leaders but many within the
management structure, who are in
sync with the companyís needs, feel
for their people and are also good
communicators.
The interview was conducted by
Dr. Nagendra V Chowdary,
Consulting Editor, Effective Executive,
Dean, IBSCDC. (www.ibscdc.org)
Reference # 03M-2009-08-12-06
EFFECTIVE EXECUTIVE