Human Resources in India
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Review</title></host><publicationDate>2008</publicationDate><copyrightDate>2008</copyrightDate><doi><json:string>10.1177/0886368707312221</json:string></doi><id>6EA788E30F0FACE0B85126C6FD3A468837A25E5F</id><score>0.031146795</score><fulltext><json:item><extension>pdf</extension><original>true</original><mimetype>application/pdf</mimetype><uri>https://api.istex.fr/document/6EA788E30F0FACE0B85126C6FD3A468837A25E5F/fulltext/pdf</uri></json:item><json:item><extension>zip</extension><original>false</original><mimetype>application/zip</mimetype><uri>https://api.istex.fr/document/6EA788E30F0FACE0B85126C6FD3A468837A25E5F/fulltext/zip</uri></json:item><istex:fulltextTEI uri="https://api.istex.fr/document/6EA788E30F0FACE0B85126C6FD3A468837A25E5F/fulltext/tei"><teiHeader><fileDesc><titleStmt><title level="a" type="main" xml:lang="en">Human Resources in India</title><title level="a" type="sub" xml:lang="en">Retaining and Motivating Staff in a Lufthansa Subsidiary</title></titleStmt><publicationStmt><authority>ISTEX</authority><publisher>Sage Publications</publisher><pubPlace>Sage CA: Los Angeles, CA</pubPlace><availability><p>SAGE</p></availability><date>2008</date></publicationStmt><sourceDesc><biblStruct type="inbook"><analytic><title level="a" type="main" xml:lang="en">Human Resources in India</title><title level="a" type="sub" xml:lang="en">Retaining and Motivating Staff in a Lufthansa Subsidiary</title><author xml:id="author-1"><persName><forename type="first">Jens M.</forename><surname>Lang</surname></persName><affiliation>Lufthansa Systems AG</affiliation></author></analytic><monogr><title level="j">Compensation & Benefits Review</title><idno type="pISSN">0886-3687</idno><idno type="eISSN">1552-3837</idno><imprint><publisher>Sage Publications</publisher><pubPlace>Sage CA: Los Angeles, CA</pubPlace><date type="published" when="2008-03"></date><biblScope unit="volume">40</biblScope><biblScope unit="issue">2</biblScope><biblScope 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when="2008-03">Published</change></revisionDesc></teiHeader></istex:fulltextTEI><json:item><extension>txt</extension><original>false</original><mimetype>text/plain</mimetype><uri>https://api.istex.fr/document/6EA788E30F0FACE0B85126C6FD3A468837A25E5F/fulltext/txt</uri></json:item></fulltext><metadata><istex:metadataXml wicri:clean="corpus sage not found" wicri:toSee="no header"><istex:xmlDeclaration>version="1.0" encoding="UTF-8"</istex:xmlDeclaration><istex:docType PUBLIC="-//NLM//DTD Journal Publishing DTD v2.3 20070202//EN" URI="journalpublishing.dtd" name="istex:docType"></istex:docType><istex:document><article article-type="other" dtd-version="2.3" xml:lang="EN"><front><journal-meta><journal-id journal-id-type="hwp">spcbr</journal-id><journal-id journal-id-type="publisher-id">CBR</journal-id><journal-title>Compensation & Benefits Review</journal-title><issn pub-type="ppub">0886-3687</issn><publisher><publisher-name>Sage Publications</publisher-name><publisher-loc>Sage CA: Los Angeles, CA</publisher-loc></publisher></journal-meta><article-meta><article-id pub-id-type="doi">10.1177/0886368707312221</article-id><article-id pub-id-type="publisher-id">10.1177_0886368707312221</article-id><article-categories><subj-group subj-group-type="heading"><subject>Articles</subject></subj-group></article-categories><title-group><article-title>Human Resources in India</article-title><subtitle>Retaining and Motivating Staff in a Lufthansa Subsidiary</subtitle></title-group><contrib-group><contrib contrib-type="author" xlink:type="simple"><name name-style="western"><surname>Lang</surname><given-names>Jens M.</given-names></name><aff>Lufthansa Systems AG</aff></contrib></contrib-group><pub-date pub-type="ppub"><month>3</month><year>2008</year></pub-date><volume>40</volume><issue>2</issue><fpage>56</fpage><lpage>62</lpage><kwd-group><kwd>retention</kwd><kwd>attrition rate</kwd><kwd>total compensation</kwd><kwd>motivation</kwd><kwd>India</kwd></kwd-group><custom-meta-wrap><custom-meta xlink:type="simple"><meta-name>sagemeta-type</meta-name><meta-value>Other</meta-value></custom-meta><custom-meta xlink:type="simple"><meta-name>cover-date</meta-name><meta-value>March/April 2008</meta-value></custom-meta><custom-meta xlink:type="simple"><meta-name>search-text</meta-name><meta-value>56 Research NoteHuman Resources in India: Retaining and Motivating Staff in a Lufthansa SubsidiaryCompanies dealing with high attrition rates can solve these problems by working on the four different sectors of the Total Compensation Approach, even in emerging markets like India SAGE Publications, Inc.200810.1177/0886368707312221 Jens M.Lang Lufthansa Systems AG retention attrition rate total compensation motivation India ^^^^^^m ^k H lobe Ground India (GGI) is a sub- ^^^^^H ^B H sidiary of the Lufthansa Group, ^^^^^H ^H H which operates the passenger ^^^^^H ^^^fl and cargo handling for Lufthansa ^^^^^H ^^^H as well as the ground and ramp ^^^^^H ^|^H activities in India in the cities ^^^^^H fa of Delhi, Mumbai, Bangalore, ^^^^^H H H Chennai and Hyderabat. Typical ^^^^^H H H jobs are passenger service agents, ^^^^^H H H who run the check-in process, and ^^^^^H H H ground-handling workers, who H deliver the suitcases to the retrieval ^^^^HhI carousel. In 2006, GGI won the ^^^^^^^^^^^^B ground handling concession ten- der for the airport in Bangalore and is therefore able to provide services not only to Lufthansa but to all other airlines in that city. In 2006 GGI employed about 650 people, and the total revenue came to roughly 4 million. With the new business model starting in Bangalore, the company is recruiting more than 800 people, so the number of employees will more than double. Other new airports in India are planned, so the company faces growing opportunities. In December 2006 a new station in Calcutta was opened. Even though the population in India adds up to more than 1 billion, the country is facing a hot labor market with rising wages because of a shortage of skilled labor. In addition, the econ- omy is growing annually by nearly 9%; the inflation rate is about 4.5%. With respect to the attrition rate, India reveals a varied picture: The rate fluctuates from 3% to more than 40% in specific branches 57 such as the information technology sector.1 The attrition rate within the company was slightly above 10% when the project described in this article began. Because of the high attrition rate and the new challenges to come, GGI established a human resources (HR) project. The aim of the project was to retain and motivate staff and management. The project consisted of three phases: analysis, design and implementation (see Exhibit 1). The whole project had to be finalized within 10 weeks; the initial focus on compensation (short- and long-term incentives) had to be adjusted later on. During the first phase of the project, the following company data were ana- lyzed: labor turnover as percentage of each sta- tion and level, average age versus average age of people who left, exit interviews and an analysis of the remuneration scheme. We benchmarked our HR toolkit as well as our total rewards approach with other companies in the region on an infor- mal basis (cross-industry benchmark). Focus Interviews The most important item within the analysis phase was the focus interviews. We conducted focus interviews to consider the opinion of selected employees before deciding on any fur- ther activities (see Exhibit 2). In these 59 interviews covering nearly 10% of staff, current positive and negative issues the employees are facing within the company were discussed. The interviews were anonymous; no internal superior or HR representative attended these interviews. Together with the written invitation to the interview, everyone received information about the aim of the project. The interview structure as a standardization of an interview format2 included content and process and involved in our case trade-offs between the use of standard- ized practices and interviewer/employee discre- tion. It was clear that the managing director would not attend the interviews, but the inter- viewer was asked to summarize the main points for him afterwards. At the beginning of the interview, it was important to emphasize that the interview itself was anonymous. Another essential step was to ask all the interviewees about their current responsibilities and opportunities for promotion as this gave them the chance to talk about their personal topics. We decided to use questions with anchored rating scales as well as questions the employees could answer without rating. The questionnaire itself (see Exhibit 3) dealt with 15 open and closed questions covering four areas: part I, Career/Development (questions 1-4); part II, Working Conditions (questions 5-8); part III, Relationship Company–Staff (questions 9-13) 58 and part IV, Personal Questions (questions 14- 15). On one hand, this procedure provided the interviewed people with the opportunity to men- tion specific topics. For us, on the other hand, it meant that we could derive indices out of specific answers to the questions. We always used the same scale: All interviewees had to rate using a scale from 1 and 6.33 With the answers from all the interviews, we were able to analyze the situation, and we gained a lot of information. It was very surprising to see how much detailed information and what a broad picture one can get if one has the interviewers go to the people rather than having the people come to see the inter- viewers. It helps enormously if interviewers do not hesitate and sit on their chairs in their working 59 areas and if interviewers take their time and lis- ten carefully to what people tell them. All of the interviewed people took their opportunity to address the topics of great importance for them. The index of selected questions over all stations gave us an interesting insight into the differences between the individual stations and was itself dis- cussed later on with the station managers during a management meeting at the end of the project (see Exhibit 4). We saw, for example, that employees' feeling part of the company ranged between 5.78 in one station, which is very good compared to the maximum of 6.00, and 4.52 in another station. We identified a huge difference between the rates of training opportunities (best: 4.60; worst: 2.60), which we could mostly attribute to the specific sit- uations of new versus old or big versus small sta- tions. The working atmosphere, which fluctuated in its rating from 3.52 to 5.33, led us to an intense discussion with the station managers about the reasons for these figures. Some selected positive as well as negative statements show that we gained a clear picture of the situation of the company. Employee com- ments included the following: • GGI has a bright future. • There is no level of trust within the com- pany regarding passing information. • There are so many things in pipeline at GGI—wonderful. • Dual reporting to YY & XX is a problem. • I'm x months on this job and till now I don't know to whom I'm going to report. • It's a mess—our organisation. That all needs to be systematically organised. • Do I feel part of the organisation? Yeah— there's a great emotional bond. • My dream is to take my parents on a flight to show them a city somewhere in India. • HR? Where's HR? There's nothing: No authorities, no standardised decisions, no follow- up. The department is useless. • The company does not see staff as an asset. • Information from Delhi is scarce—payslips will come late. • GGI provides good opportunities to learn and work in different fields compared to other ground handling companies. The answers to question 15 (What would be the highest incentive for you to increase your motivation?—see Exhibit 5) were very revealing indeed. We found out that the staff rated “money/higher wages” as the third most important factor. First came “career/status,” followed by doing a meaning- ful job (“job pleasure/enjoyment”). The topic “time” was only a footnote. Often the staff made 60 very specific requests, such as for business cards. Here, with relatively little financial input, we were able to significantly improve staff satisfaction. Because of the partly surprising results of these focus interviews and the tight time frame, we refocused the priorities of the project for the remaining time (see Exhibit 6). It was obvi- ous that the Development part and the Benefits part were much more important for the staff— and therefore for the success of the whole 61 project—than establishing a long-term incentive on top of the yearly bonus. Recent studies also show how important career management is for employees in India. To cater to the need to learn and grow felt by high- performing and achievement-oriented recruits, some organizations create new roles for the high performers as a measure to retain their key talent and arrest attrition. This practice is an informal attempt made along the lines of “job sculpting.”4 After analyzing these results, steps were taken to implement a state-of-the-art total rewards approach5 as well as an HR policy manual. With this new retention and motivation program, the development opportunities within the company and its current labor turnover rate have been improved essentially. Employees in India want crystal clear career prospects and want to be well informed (not “over-newsed” yet underinformed). They want to feel that the employer looks after their personal needs. If they feel that their needs are being met, they will commit themselves fully to the job. HR Manual It was of great importance for all the employees to get a clear picture of all procedures, duties and responsibilities. Facing the current attrition rates, the company sees a lot of advantages in developing long-term employment and internal labor markets. Long-term employment relationships, limited ports of entry for hiring, career paths within the firm and promotions from within are key features of internal labor markets. An HR manual has been developed to describe these and all the other procedures. It serves as a guide and a reference book for the employee policies and serv- ice conditions applicable to the permanent employees and probationers of the company. It was our endeavor to present the policies as clearly and with as much detail as possible to cover topics such as recruitment policy, probation, working hours, leave and holidays, grade and compensation, performance appraisal, rewards and recognition, travel, transfer, employee develop- ment, conduct and discipline, and separation. For example, the staff needed to know the rules and regulations of the adjustment process of the base salary. Employees often asked for a salary adjustment and argued about seniority. Now they are able to look in the HR manual, which clearly explains that it is not seniority that leads to a salary increase but individual performance and other items. Results Reports During the whole project, we prepared a “Weekly Actions and Results Report” (see Exhibit 7) to check whether our actions were in line with our overall objectives. The report also identified the weekly results and deliverables. It 62 was sometimes frustrating to see how long it took to gain outstanding results, but the time to write the report and ponder and discuss the results of the week was well invested. It is, after all, neces- sary to distinguish between actions and results because in the end it is only the results that count. Town Meetings Diwali in India is a festival in which people from all age groups participate to express their happiness by lighting clay lamps (diyas), decorat- ing houses, bursting firecrackers and inviting near and dear ones to their places. Usually a Diwali party is organized through the company, and so we held one. In one station we even merged a “town meeting” with the Diwali party. The managing director gave a speech and con- gratulated the Employee of the Year, who had been nominated on the basis of performance. During our town meeting, the managing director presented the most important issues of the com- pany in front of all employees of the specific station. These topics reflected how the business was run- ning financially, how the customer satisfaction index was proceeding, how the quality index was performing and some other specific topics. The out- come of the HR Project was presented by the leader of the project to give feedback to all the employees. The focus interviews, which were conducted mostly face-to-face in these stations, together with the town meetings, were a very important tool to retain and motivate staff. All staff mem- bers had the opportunity to ask questions and to see the managing director in person. The project was successfully finished in December 2006. In May 2007—6 months later—the attrition rate had been halved, to below 5%. Notes Unnikrishnan, C.H. (2006, August 21). High attrition plagues Indian pharma sector. Rediff India Abroad—Business. Stevens, C.K. (2000). Structured interviews. In E. A. Locke (Ed.), Blackwell handbook of principles of organizational behavior (pp. 29-40). Oxford, UK: Blackwell Business. In contradiction to that, the Job Characteristics Model by Hackman/Oldham used seven numbers; see Judge, T.A. (2000). Promote job satisfaction through mental challenge. In E. A. Locke (Ed.), Blackwell handbook of principles of organizational behavior (pp. 75-89). Oxford, UK: Blackwell Business. Mercer Human Resource Consulting. (2006). HR guide to the Indian outsourcing industry (p. 61). Geneva, Switzerland: Author. Manas, T.M., & Graham, D. (2003). Creating a total rewards strategy: A toolkit for designing business-based plans (p. 2). New York: American Management Association. Jens M. Lang, head of corporate executives personnel services and HR policies at Lufthansa, was appointed vice president corporate human resources at Lufthansa Systems AG effective February 1, 2007. After graduating in business administration and acquiring a PhD at the University of Trier, he started his career as a consultant. After that he took over responsibility for different functions within the HR department at the American chemicals group DuPont de Nemours and the Deutsche Bahn AG before joining Lufthansa in 2001.</meta-value></custom-meta></custom-meta-wrap></article-meta></front><back><ref-list><ref><citation citation-type="book" xlink:type="simple"><name name-style="western"><surname>Unnikrishnan, C.H.</surname></name> (<year>2006</year>, August 21). <source>High attrition plagues Indian pharma sector</source>. <publisher-name>Rediff India Abroad—Business</publisher-name>.</citation></ref><ref><citation citation-type="book" xlink:type="simple"><name name-style="western"><surname>Stevens, C.K.</surname></name> (<year>2000</year>). <source>Structured interviews</source>. In <name name-style="western"><surname>E. A. Locke</surname></name> (Ed.), <source>Blackwell handbook of principles of organizational behavior</source> (pp. <fpage>29</fpage>-<lpage>40</lpage>). <publisher-loc>Oxford</publisher-loc>, UK: <publisher-name>Blackwell Business</publisher-name>.</citation></ref><ref><citation citation-type="book" xlink:type="simple"> In contradiction to that, the Job Characteristics Model by Hackman/Oldham used seven numbers; see <name name-style="western"><surname>Judge, T.A.</surname></name> (<year>2000</year>). <source>Promote job satisfaction through mental challenge</source>. In <name name-style="western"><surname>E. A. Locke</surname></name> (Ed.), <source>Blackwell handbook of principles of organizational behavior</source> (pp. <fpage>75</fpage>-<lpage>89</lpage>). <publisher-loc>Oxford</publisher-loc>, UK: <publisher-name>Blackwell Business</publisher-name>.</citation></ref><ref><citation citation-type="book" xlink:type="simple"><name name-style="western"><surname>Mercer Human Resource Consulting.</surname></name> (<year>2006</year>). <source>HR guide to the Indian outsourcing industry</source> (p. <fpage>61</fpage>). <publisher-loc>Geneva</publisher-loc>, Switzerland: <publisher-name>Author</publisher-name>.</citation></ref><ref><citation citation-type="book" xlink:type="simple"><name name-style="western"><surname>Manas, T.M.</surname></name>, & <name name-style="western"><surname>Graham, D.</surname></name> (<year>2003</year>). <source>Creating a total rewards strategy: A toolkit for designing business-based plans</source> (p. <fpage>2</fpage>). <publisher-loc>New York</publisher-loc>: <publisher-name>American Management Association</publisher-name>.</citation></ref></ref-list></back></article></istex:document></istex:metadataXml><mods version="3.6"><titleInfo lang="en"><title>Human Resources in India</title><subTitle>Retaining and Motivating Staff in a Lufthansa Subsidiary</subTitle></titleInfo><titleInfo type="alternative" lang="en" contentType="CDATA"><title>Human Resources in India</title><subTitle>Retaining and Motivating Staff in a Lufthansa Subsidiary</subTitle></titleInfo><name type="personal"><namePart type="given">Jens M.</namePart><namePart type="family">Lang</namePart><affiliation>Lufthansa Systems AG</affiliation></name><typeOfResource>text</typeOfResource><genre type="other" displayLabel="other"></genre><originInfo><publisher>Sage Publications</publisher><place><placeTerm type="text">Sage CA: Los Angeles, CA</placeTerm></place><dateIssued encoding="w3cdtf">2008-03</dateIssued><copyrightDate encoding="w3cdtf">2008</copyrightDate></originInfo><language><languageTerm type="code" authority="iso639-2b">eng</languageTerm><languageTerm type="code" authority="rfc3066">en</languageTerm></language><physicalDescription><internetMediaType>text/html</internetMediaType></physicalDescription><subject><genre>keywords</genre><topic>retention</topic><topic>attrition rate</topic><topic>total compensation</topic><topic>motivation</topic><topic>India</topic></subject><relatedItem type="host"><titleInfo><title>Compensation & Benefits Review</title></titleInfo><genre type="journal">journal</genre><identifier type="ISSN">0886-3687</identifier><identifier type="eISSN">1552-3837</identifier><identifier type="PublisherID">CBR</identifier><identifier type="PublisherID-hwp">spcbr</identifier><part><date>2008</date><detail type="volume"><caption>vol.</caption><number>40</number></detail><detail type="issue"><caption>no.</caption><number>2</number></detail><extent unit="pages"><start>56</start><end>62</end></extent></part></relatedItem><identifier type="istex">6EA788E30F0FACE0B85126C6FD3A468837A25E5F</identifier><identifier type="DOI">10.1177/0886368707312221</identifier><identifier type="ArticleID">10.1177_0886368707312221</identifier><recordInfo><recordContentSource>SAGE</recordContentSource></recordInfo></mods></metadata><serie></serie></istex></record>Pour manipuler ce document sous Unix (Dilib)
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