ELGi transformed from a small family-run manufacturer of compressors and pumps to a global player through multiple initiatives based on improving the quality of their product and the productivity of their workforce over two decades. They adopted an innovative approach to improve their blue-collar workforce's lifestyle and income levels, linked to worker upskilling, increasing job autonomy, and a radical approach to wage agreement. Previously, wage negotiations for ELGi workers were unpredictable and without a clear structure. The process took time and was ad hoc. Dr. Jay, the promoter family member, did not subscribe to the traditional approach of keeping labor wages low and benefiting from the wage arbitrage followed by global subsidiaries in India and other Indian manufacturing companies. He wanted Indian workers to earn competitive wages, almost equal to what blue-collar workers in the West make and become globally competitive. Hence, a "basket of goods" approach to wage fixing was introduced in 1996 to ensure a good lifestyle for workers and their families. This approach linked consumption to compensation and was determined based on the needs of a family of four. Moreover, the company acknowledged the importance of enhancing worker motivation in order to remain competitive on a global scale. By defining a basket of goods as "must have" and "good to have", which was collaboratively developed between the workers, their families, and the management, they periodically expanded the basket items over multiple years. Additionally, with organization-based profit-sharing schemes, suggestion schemes, and career progression mechanisms, ELGi built a dedicated, motivated, and engaged workforce. Furthermore, the practice of keeping workers as contingent workers for long periods was changed to offer permanency for workers completing over three years based on their performance feedback.
SRK Exports Pvt. Ltd., a family-owned diamond firm based in Surat, India, has over 6000 employees. Despite facing economic downturns and the COVID-19 pandemic, the company, under the guidance of founder Govind Dholakia, has managed to avoid employee layoffs. SRK's HRM practices, including performance management, training and development, recruitment and selection, employee engagement, and CSR, are well-integrated with the company's values and culture, and are supported by the Quadruple Bottom Line Approach. As the firm continues to grow and leadership transitions to the next generation, SRK must remain vigilant in maintaining its sustainable HRM practices. This case study examines the events that contributed to SRK's success in the diamond industry and highlights future challenges for the company.
Aster Retail (AR) is the retail pharmacy division of Aster Dr Moopen's Healthcare (ADMH) Group. The group delivers healthcare services across the Middle East, India and the Far East with a portfolio of hospitals, clinics, diagnostic centres and retail pharmacies. AR, under the leadership of Chief Executive Officer (CEO), Jobilal Vavachan, is well known for its people-centric approach, unique culture and innovative human resource (HR) practices. AR has won multiple awards for HR practices, service quality and business performance. In a recent corporate restructuring, "Aster Primary Care" was carved out, combining the group's Clinics and Retail businesses. The case discusses the evolution of ARs' HR journey and the challenge to integrate culturally diverse businesses, without compromising ADMH values and promise, "We'll Treat You Well."
The case describes Cummins India's journey of implementing a large scale change to bring about gender diversity and inclusion (D&I) in their organization. The case underscores how this journey from 7% female representation (professional cadre) in 2005 to over 30% representation in the span of 12 years necessitated some tough decisions and a strong push by the top leadership. Now that Cummins India has been able to achieve a balance in their workforce gender representation, it faces the challenge of creating a strong systemic and cultural transformation for a truly inclusive culture.
The first company under the Amara Raja Group (ARG) was established in 1984, i.e. Amara Raja Electronics Limited (AREL) followed by Amara Raja Batteries Limited (ARBL). Its founder leveraged the presence of his family in Renigunta, a rural village in South India, and chose to start the industry there to create employment opportunities. Preference is given to local population in all ARG enterprises. Despite its strong people orientation, the HR department/function at ARG got strengthened only after Jaikrishna strived to make it central to business. The department's evolution has been demarcated in three phases. The first and second phase saw few initiatives, and during the third phase the HR department was structured according to the Dave Ulrich Strategic HR Model. While this structure had been successful until now, certain sections in ARG still doubted its sustainability.
This case, Amara Raja Group (B): Vision 2025 is set in 2019 where the HR department has gone through multiple interventions commencing in 2017, including building a business specific recruitment strategy, making HR digital, and development of an employee value proposition. With changes in external environment including increased digitisation, automation, and industry 4.0 along with the internal shift of leadership of ARG from the founder RNG to Jay Galla to the newer generation, Jaikrishna ponders upon the way forward for the HR function of the group.
AddRec Solutions Pvt. Ltd (AddRec), a recruitment process outsourcing firm, had had a successful year in 2011 and the founder had big plans for 2012. He dreamed of three-fold growth in the next five years without adding any new branches or losing the firm’s boutique positioning. Yet he faced more than a few challenges. Competition in the sector was increasing, not only from other vendors but also from the internal human resource departments of some of AddRec’s clients. The founder’s personal charisma, relationship management abilities and direct involvement had been instrumental in AddRec’s growth thus far, but it remained to be seen whether the company, at this point in its evolution, was ready for the next growth phase. Further, his team had a set of capabilities that would need to be aligned with the growth he envisioned. Had the time come for him to distinguish between the strategic and operational roles in the organization?
AddRec Solutions Pvt. Ltd (AddRec), a recruitment process outsourcing firm, had had a successful year in 2011 and the founder had big plans for 2012. He dreamed of three-fold growth in the next five years without adding any new branches or losing the firm's boutique positioning. Yet he faced more than a few challenges. Competition in the sector was increasing, not only from other vendors but also from the internal human resource departments of some of AddRec's clients. The founder's personal charisma, relationship management abilities and direct involvement had been instrumental in AddRec's growth thus far, but it remained to be seen whether the company, at this point in its evolution, was ready for the next growth phase. Further, his team had a set of capabilities that would need to be aligned with the growth he envisioned. Had the time come for him to distinguish between the strategic and operational roles in the organization?