`No Timebound Promotions’

Move aimed at creating a flatter organisation as co looks to establish an environment in which teamwork-inspired creativity can flourish

Tata Motors, India’s largest automobile company by revenue, has decided to scrap designations and create a flatter organisation as it looks to establish an environment in which teamwork-inspired creativity can flourish. Designations such as general manager, senior general manager, deputy general manager, vice-president and senior vice-president are among those that will be consigned to the scrapheap.

The company told employees in a circular on Wednesday that the move will create a “mindset free of designations and hierarchy“.About 10,000 employees of Tata Motors will be affected by this move, a senior executive said.

All managers with a team reporting to them will simply have the job title of `head,’ followed by the function or department after their names. Employees who are individual contributors, are largely at the front end and do not have any team member reporting to them will use just the function or department after their name.

The human resources recast, among the most sweeping in corpo rate India in recent times, will lead to a flattening of hierarchy levels to five from 14. “More number of roles have moved than people. People need to grow in terms of breadth and depth. We need to break the silos across the functions,“ said Gajendra S Chandel, chief human resources officer at Tata Motors.

The company expects that the move will help Tata Motors put in place a work culture that’s in line with those at global companies, especially service organisations.People can now focus on work instead of their designations, Chandel said. The move will enable the company to move away from routine promotions that an employee gets purely by virtue of time spent in harness. “There will be no timebound promotions now, and promotions will happen only if there are vacancies,“ Chandel said.

The response to the move has been mixed, with younger employees reacting with greater enthusiasm than those older, ET has learnt.

Under Guenter Butschek, Tata Motors has been seeking to refresh its passenger car lineup to regain market share.Over past few years, the company’s earnings have been propped up by its Jaguar Land Rover unit as local car sales have slumped.

“We lost count of the designations we had given,“ Chandel said. But with this move, he said, the company hopes to bring back its focus to the task at hand and also help cross-functional roles for employees.About 2,500 positions have been vacated, which will eventually add to the bottom line.

An expert pointed out that designations have traditionally been one of the top five motivating factors for Indians. “Flat organisations are helpful in terms of communication and quicker implementation on the ground,“ said VG Ramakrishnan, MD at consultancy firm Avanteum Advisors. “Removing the designations may not necessarily be the right thing to do. Indians generally place a lot of emphasis on hierarchy and designation, but how the company is going to balance the aspiration of its young workforce versus the need for a flatter organisation given the premium that Indians lay on social hie rarchy needs to be seen.“

He added that there are critical differences between Indian workplaces and those overseas. “Indian culture is a complex culture. A small change in designation every year goes on to be a big motivator for a lot of people every year,“ he said. “ At some point in time, money is not everything.“

Tata Motors hired Accenture to devise a strategy to prepare the company to face competition. Scania, Bharat Benz and Volvo are leaner and meaner in comparison.Market leader Tata Motors has been facing aggressive competition in the CV space from these companies.

Source : The Economic Times

Date :09-05-2017

‘National Insurance’s actuary understated claims by 4000 crore’

In a first of its kind action in the sector, the Insurance Regulatory and Development Authority of India (IRDAI) has issued an order stating Manalur Sandilya, the official actuary of National Insurance Company Ltd, understated claims to the tune of Rs 4,000 crore.

The regulator has said the “under-reserving by the actuary has resulted in the shortfall of Rs 4,263 crore in the Incurred But Not Reported Claims Reserve (IBNR)” shown in the financial statements of the insurer as on March 31, 2016. It also terminated the appointment of the actuary as mentor to the appointed actuary and barred him from doing any work for United India Insurance for March 2016. IRDAI will not accept or recognise the work of Sandilya for two years.

After meetings with the insurance company and the Actuary, on August 2, 2016, IRDAI received an e-mail from the Actuary with an annexure stating that the ‘most likely’ IBNR estimate as of March 2016 would be Rs 7,293 crore. However, the Actuary, in his IBNR report, which was received by the IRDAI on August 19, 2016, certified a substantially lower amount of IBNR reserves of Rs 3,030 crore as of March 2016, it said. “The reports, certificates and any other work of the actuary shall neither be recognised nor accepted by the Authority for a period of two years from the date of this order,” IRDA said in an order.

KK Srinivasan, former Member, IRDA said: “Though this may perhaps be the first time that a regulatory authority has taken action against an actuary for omission and commission in India, there have been instances in other markets. Clause 8B of the IRDA Appointed Actuaries Regulations mandates that it is the duty of the actuary to “ensure the solvency of the insurer at all times”. An actuary can certainly be held responsible for not ensuring solvency of an insurer at all times, he said.

In the Indian insurance industry, actuaries are believed to enjoy higher pay packets than CEOs of insurance companies.

An actuary is a professional who analyses the financial costs of risk and uncertainty in the insurance sector using mathematics, statistics, and financial theory and helps companies and clients develop policies that minimise the cost of that risk.

Srinivasan said the action taken by IRDAI will hopefully have a salutary effect of the functioning of actuaries in India. “World over, inadequate reserves for claims is a major reason for insurance industry insolvencies. Unfortunately frequent and inordinate delays in appointment of CMDs in PSU insurers and operating them under make-shift leadership arrangements does have an adverse impact on the functioning of these companies,” he said.

According to the IRDAI order, the actuary cannot unilaterally decide to understate the IBNR figures in the name of “policyholders interests” without consulting the board of the insurer and the IRDAI. If the actuary had given the complete and correct picture on the IBNR reserves, it would have enabled the board of the insurer to take timely and appropriate corrective actions in consultation with the Authority for saving the interests of policyholders, it said.

IRDA said the actuary has used international practices such as fair value adjustment and discounted value of IBNR only when it resulted in huge reduction in the IBNR worth Rs 4,263 crore. He, however, has ignored the other international practices that are normally used along with fair value adjustment and discounting of IBNR such as making specific allowance for each risk (for example, data inadequacy), which would have resulted in the increase in IBNR reserves, IRDAI said.

What Recruiters look for in a Resume: Study

A study by TimesJobs reveal the skills and experience they look in your resume which is essential in getting the attention and then bagging the job.

 

What Recruiters look for in a Resume: Study

 

Customize your CV with respect to the job you are applying for. That is the underlying message recruiters want candidates to follow ifthey are looking to get the best job. Highlighting unique skills and experience which are specific to the job they are applying for is how you grab the attention of the hiring managers. Since recruiters have barely a minute to scan each resume before shortlisting them, a study by TimesJobs has revealed what recruiters want from you. Nearly 40% recruiters say, focusing on skills relevant to the job offered is the best way to be shortlisted.

 

Another 36% hiring managers state that highlighting universally desired skills such as analytical skills, teamwork and leadership that are appropriate to the job, helps make a resume stand out. Including skills that provide value-additions to the job profile applied to is what 35% of recruiters advise. For example, a candidate applying for a banking job can include his/her experience using financial data analysis software, even if it is not stated as a requirement.

 

Even though, most candidates will have the skills required for the job they apply for, the challenge lies in highlighting the right ones. Care must be taken not to fill up the skills section of your resume with a bunch of skills that have absolutely nothing to do with the job you are applying for. Even for the skills you are including, you need to substantiate them.  Therefore, it is not just important what skills you include in your resume, but equally how you highlight them,” says Ramathreya Krishnamurthi, Business Head, TimesJobs.

Researching profiles of professionals who work on the same job that is being applied for helps candidates understand what skills recruiters deem as essential say 26% hiring managers.

 

A resume can stand out in the crowd by adding statistics or numbers to skills suggest 21% of recruiters. Such as, substantiating skills and experience with measurable results is a good way to attract a recruiter’s attention. And 20% of recruiters advise adding relevant keywords for skillshelps increase the visibility of the resume, especially when they are scanning a database of many profiles.

 

Soft Skills are Critical

 

60% of hiring managers say that while domain knowledge is important, non-technical skills or soft skills are critical while hiring a candidate.

 

Among the host of soft skills that recruiters desire to see in a resume, the top three are communication skills, leadership skills, andteamwork. Here are the multiple choices of their preferences –

 

33% of recruiters feel communication skills are crucial

30% of recruiters look for leadership skills

26% of recruiters consider teamwork & collaboration skills as pivotal

22% of recruiters focus on analytical skills

20% of recruiters give more weightage to adaptability, and

17% of recruiters say planning and strategic thinking skills are important

 

The resume is the first point of contact between a candidateand an employer – and making this first impression a good one is critical in getting ahead in one’s career.

 

 

Source-People Matters

Date-08-06-2017

Want To Build A Culture Of Innovation? Start With Experimentation

We talk a lot about needing a culture of innovation to thrive amidst digital transformation, but we should take that conversation a step back. A culture of innovation cannot exist without a culture of experimentation. If you want your organization to make the most of digital transformation, your success is going to hinge on your ability to determine what works best for your company.

Modern business is far more competitive and data-reliant than it was in the past, and that means a misstep can set your business back tremendously if a project doesn’t pan out as expected. Testing is crucial to avoid failures and to uncover any hidden potential a project may have. As you move your company toward a digital transformation, testing not only needs to be part of the process—it also needs to be a tenet of your company culture.

Someone might come up with a potentially fantastic idea only to have it fall flat in the implementation phase. This can happen due to technical failures, unaccounted contingencies, or unknown variables that rear their heads only once a project has reached a critical point. Even the most innovative idea won’t have legs to stand on without adequate testing. As more companies embrace digital transformation and start making moves to take their organizations into the future, the changes grow more drastic and far-reaching. It is imperative to test new ideas thoroughly before making them part of daily operations. When you work toward building a company culture of experimentation, you naturally encourage innovation.

Building a process for testing is just one part of creating a company culture of experimentation. If you truly want to encourage experimentation, you need to bolster it on an individual basis. Digital transformation is challenging modern companies to rethink their business strategies, project management processes, workforce silos, and departmental structures. Part of digital transformation also needs to be employee-focused at the individual level so that brainstorming, risk-taking, and experimentation become part of every process in your company.

Competition drives innovation

Most people know that risk is a large part of business. Some companies shy away from experimentation because of the fear of failure, but the risk of not taking action is similarly destructive. Taking the time to develop a comprehensivetesting environment is one of the best ways to encourage risk-taking without the looming shadow of business-crushing failure. When you encourage your workforce to brainstorm new ideas and new ways of doing things, you’ll find that staying competitive and flexible is much easier in the constantlyshifting business landscape.

A big part of creating a culture of experimentation is teaching your teams how to celebrate failure. Not every idea will play out as intended, and as long as it only affects a testing environment, that failure becomes teachable data. Pouncing on every new development or offering from your competitors isn’t a good method for encouraging new ideas. If you’re just copying othercompanies’ ideas, this type of reactionary thinking doesn’t push your company forward.

Taking risks doesn’t seem as daunting when you develop a testing environment and make experimentation part of the everyday routine. Encouraging collaboration, brainstorming, and contributing new ideas at every level of your organization is going to make challenges from competitors feel more like games than obstacles. When your workforce knows that you not only approve of experimentation, but you also encourage it—this will naturally drive your employees to challenge themselves and their old ways of thinking.

Create a new culture from the top down

Getting buy-in from upper management is often one of the most challenging tasks when it comes to getting a new idea off the ground. Some companies’ leadership may be unwilling or hesitant to embrace change, but it’s important for the C-suite to encourage a culture of experimentation and lead by example. Testing is critical to driving motivation. It’s mucheasier to get buy-in when you roll out a new development in a testing environment, when the risk is minimal.

A thorough testing process can put executives at ease when you propose a new idea, and successful results will naturally lead to more buy-in and approval. A testing environment shouldn’t solely be a tool for placating hesitantexecutives—it should also be a means of encouraging input and collaboration across every level of the organization. The C-suite should support it, since it will help create a culture of innovation and digital transformation.

New India Assurance Plans to Take IPO Route to Raise Rs 8,000 Crore

LARGEST GENERAL INSURER in the country getting ready to dilute 15%, likely to hit the markets in the next 6-8 months

New India Assurance is expected to sell 15% to raise as much as `8,000 crore in an initial public offering (IPO), which includes 5% fresh equity, said two sources in the know of the development.

The largest general insurer, preparing to hit the markets in the next 6-8 months, has already applied to the Insurance Regulatory and Development Authority (IRDA) for anin-principle approval for the IPO, said another source in the know of the development.

The company , looking at a valuation of up to `70,000 crore, is currently valued at anything between `60,000 crore and `70,000 crore, said one of the sources. The net worth of the company , including fair value of investments, is `34,716 crore at the end of March 31, 2017. The market value of investment is `53,009 crore and its asset base is `69,173 crore.

However, G Srinivasan, chairman of New India Assurance, said no decision had been taken yet on the IPO.

In January this year, the Union cabinet had approved the listing of general insurance companies on stock markets.The government, which currently holds 100% in five public sector insurers -New India Assurance, National Insurance, United Insurance, Oriental Insurance and reinsurance company General Insurance Corporation, is looking to raise `11,000 crore by selling its stake in general insurance companies.NewIndia Assurance and General Insurance Corp have already appointed bankers and legal advisors for the offering.

New India Assurance had recorded 22% growth in profit after tax to `1,008 crore in the last financial year, aided by a growth in the investment income. The company , which reported underwriting losses of `3,500 crore during the year, expects to break even underwriting losses in the next three years. Its combined ratio improved marginally to 118% from 120%.

“Growth needs more capital. We have to grow in line with the market, improve our underwriting profitability, ensure efficient claims management and improve customer service,“ Srinivasan recently said in an interview.

In the last financial year, the company’s foreign operations reported a profit of `163 crore, up from `100 crore, and it made an investment income of `4,050 crore.

During 2016-17, the company clocked a 21.27% increase in global premium income to `22,279 crorewhile domestic business grew 26% to `19,115 crore. It is looking at a global premium of `26,000 crore this financial year.

“5 Simple Steps to Developing a Competitive Pay Practice”

In today’s competitive environment, employees are more educated than ever before about the current salary rates in their location and industry. If you want your business to remain competitive, and retain top talent, you need to stay one-step ahead of your competition, and have a solid pay strategy that’s based on accurate salary data – not speculation.

Here are a few simple steps to get you closer to a compensation strategy that retains talent and keeps your company ahead of the curve.

1)      Get a Pulse on Your Market

After a series of wage declines in 2009 and 2010, a number of industries are now seeing continual salary growth across multiple industries and locations. If your company’s compensation plan is based on the trends in those leaner years immediately after the recession, it’s probably time to revisit your pay strategy. Or you may be at risk of losing talent to competitors who’ve more quickly adapted to shifts in the market. Keep an eye on the PayScale Index to keep track of quarterly trends in pay by location, industry and job category.

2)      Benchmark Your Job Positions

It’s great to have a pulse on the overarching pay trends in your industry and area, but it’s another thing to have confidence that you’re actually paying top employees at the right rates for their job. By engaging in at least once-per-year salary benchmarking, you’ll be able to identify employees who are at a “high flight risk” of turnover, and be able to make smarter decisions about where you allocate your labor budget. Download PayScale’s How to Perform Compensation Benchmarking and Salary Ranges whitepaper for more information.

3)      Develop a Compensation Plan

Often times, businesses fear that having a compensation plan will limit their ability to make good business decisions, so they skip building a compensation plan in favor of fewer rules and less structure. But without a formalized compensation plan, companies often miss an opportunity to structure their pay decisions in a way that support business goals. As companies grow, the costs of compensation continue to rise, and without a formalized plan in place, companies often experience problems with pay inequities, employee retention, and engagement. Simply put, it’s easier, and more cost-effective to take small steps toward developing a smart compensation plan now, than it is to alter your course later down the line. 

4)      Identify Pay Inequities

Some people live by the motto, “What you don’t know won’t hurt you.” That’s a motto your organization cannot afford to live by when it comes to internal pay inequities. Without a formalized comp plan, it’s often common for pay inequities to develop across organizations and departments. Those pay inequities can most definitely hurt you and your organization in the form of heightened turnover, over payment, and even litigation. Learn how to identify and resolve these inequities with PayScale’s guide to pay inequities.

5)      Communicate Your Compensation Strategy

If you go through the process of creating a compensation plan, don’t forget to let your employees know about it. In theory, your compensation strategy should reiterate and support your business goals. So, it’s important to communicate to employees how their work aligns with the goals of the organization, and how their compensation reflects that. If you share with your employees, and make your investments in talent clear to them, you’ll be surprised by the positive effect it has on employee morale. Check out PayScale’s Four Tips for Communicating Your Compensation Plan to Employees to help you get started.

Need help developing a competitive compensation strategy, or maintaining salary ranges for your workforce? PayScale offers access to the largest online salary database in the world. With data that’s updated on a daily basis, and software designed to help you maintain salary ranges, benchmark jobs, and allocate raises, PayScale is the choice for businesses who value accuracy and ROI in their pay practices. Request a demo of PayScale compensation software to learn how PayScale’s fresh, detailed data can support good compensation planning.

Source: HR Morning