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8/9/2019 Group 4 -Talent Engagement Practices in a Recessionary Period
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Talent Engagement Practices
in a Recessionary PeriodIT/ITES Industry
9/3/2009
MBA CORE 2009-11
Abhijit KaradAnshul Bhatia
Anupama Reddy
Nimish Lahoti
Vaibhav Bansal
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Contents
1. INTRODUCTION ______________________________________________________3
1.1 Concepts ______________________________________________________________3
1.2 Review of Literature____________________________________________________5
2. OBJECTIVES OF STUDY _______________________________________________ 7
2.1 Statement and objectives of study ________________________________________ 7
2.2 Method of study _______________________________________________________7
3. ANALYSIS AND FINDINGS _____________________________________________ 8
3.1 Analysis and Discussion of findings _______________________________________ 83.1.1 HUNKA Web Solutions _____________________________________________ 8
3.1.2 Tata Consultancy Solutions _________________________________________ 12
4. CONCLUSION _______________________________________________________ 16
5. RECOMMENDATIONS _______________________________________________ 17
BIBLIOGRAPHY _______________________________________________________ 18
ANNEXURE 1 ___________________________________________________________19
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Chapter -1 Introduction
1.1 Concepts
When in tough economic times, there's little reason to believe that we'll see anything
approximating an overnight recovery. The recessionary period is a challenge for businesses
of all types. According to analysts, the normal attrition rate in IT industry was anywhere
between 20-40 per cent. Focusing on talent engagement should be a priority for any business
because during recessionary period, no one can afford anything less than maximum
productivity from their employees. Talent Engagement is the system in which people are
recruited, developed, promoted, and retained to optimize the organization¶s ability to realize
positive business outcomes in the face of shifting competitive landscapes and labor
requirements.
The Gallup Organization describes employee engagement as the "the involvement with and
enthusiasm for work". The key drivers for talent engagement are person job fit, motivation,
performance and rewards, participation and involvement and work life balance.
Person job fit can be defined as the fit between abilities of a person and the demands of a job
or the desires of a person and the attributes of a job. Job demands typically consist of the
knowledge, skills and abilities (KSAs) required to perform at the acceptable level in the job.
RJP research has shown that accurate and realistic job information during recruitment and
selection is associated with positive work outcomes. In employee selection research, Person
Organisation fit can be conceptualised as the match between an applicant and broader
organisational attributes.
Motivation can be defined as the forces within a person that affect his or her direction,
intensity, and persistence of voluntary behaviour. Motivation begins with individual needs
and their underlying drives. There are various motivation theories which are based on needs.
Maslow¶s needs hierarchy theory is based on five instinctive needs arranged in a hierarchy,
whereby people are motivated to fulfil a higher need as a lower one becomes gratified.
Frederick Herzberg¶s motivation hygiene theory says that the factors causing job satisfaction
are different from that causing job dissatisfaction (hygiene factors). There are other theories
such as four drive theory and expectancy theory of motivations. Most of us are motivated by
intrinsic rewards like interesting, challenging work and the opportunity to achieve and grow
into greater responsibility.
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Employees feel motivated by more participation and involvement in the decision making
process and most of the organisations have recognised this fact. Enrich the employees work
by increasing individual¶s accountability and giving them more responsibility. Assign the
individuals specialized tasks that allow them to become experts. Such practices motivate
employees and keep them charged up.
In India, employees with 5-10 years of work experience on an average put in 55-60 hours of
work each week. The situation worsens at senior and top management level. In any
profession, if work is extended beyond a point, it does not make for ³meaningful achievement
and enjoyment of everyday life´. Widely noted demographic and sociological changes in the
workforce, over the last 40 years have gradually but increasingly focused attention on the
need for workplace policies to assist employees in balancing work and family life.
Performance Management can be defined as a strategic and integrated approach for
increasing the effectiveness of businesses and organizations by improving the performance of
staff and employees and developing the capabilities of teams and individual contributors. It is
a measure of performance which relates individual performance to organisational goals;
fosters the increasing competence and growth of the subordinate. This process stimulates the
employees¶ motivation.
Job satisfaction is in regard to one's feelings or state-of-mind regarding the nature of their
work. Job satisfaction can be influenced by the quality of one's relationship with their supervisor, the quality of the physical environment in which they work, degree of fulfilment
in their work and job content.
The two companies studied to understand talent engagement in recession times are Tata
Consultancy Services (Mumbai) and Hunka Web Solutions (Bhopal).
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1.2 Review of literature
Paper on µHow to recession proof your workforce?¶ by David Lee
In order to minimise the effects of recession, the workforce of a company should have the
following characteristics:
y Respond to challenges with a ³can do´ attitude.
y Remain upbeat and determined, despite the difficulties you face.
y Focus their attention on making a difference, rather than on complaining about
things they can do nothing about.
y Handle greater challenge, pressure, and demands without becoming stressed.
To keep the talent engaged in times of economic downturn or any other turbulent times,
we need to keep the employee motivation, morale and engagement high and these can be
achieved by giving employees control over the work they do, strengthening of relationships,making them free from unnecessary stress, communicating without any ambiguity and
encouraging them by telling success stories of other employees in company.
Research by Watson Wyatt Worldwide revealed that companies with high employee
engagement enjoyed 200% greater profits during the difficult economic cycle just prior to
2002.
Employee engagement in recessionary times: A changing talent perspective
A paper is based on a cross industry survey on Employee Engagement in Recessionary
Times undertaken by the Deloitte¶s Human Capital Advisory Services (HCAS) team in
India is studied. The aim of the survey was to understand how organizations are
reassessing their priorities to manage their talent in smarter and more strategic ways. The
survey polled 41 companies spread across 5 locations of Bangalore, Chennai, Delhi,
Hyderabad and Mumbai.
The following were the findings of the survey on how the companies are managing
employee engagement in recessionary times:
y Aligning efforts with strategy: The company focus is now on retention and
selective hiring, driven purely by critical skills and business needs.
y Communication: The company focus is now on maintaining transparency,
targeting the right audience and consistently driving the message of change.
y Training and leadership development: Companies are keeping a close watch on
training spend and are more focused on multi-skilling employees and identifying,
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engaging and developing high-performing employees from within the
organization.
y Rewards and recognition: Companies focus is on developing rewards and
recognition programs that are consistent and transparent.
Cisco Systems: Acquiring and Retaining Talent in Hypercompetitive Markets
In the IT business the average product life cycle is estimated to be six to 18 months.
Worse, an industry rule of thumb is that each new product solution should offer twice the
speed at the same or less cost. IT firms recognize that if the company does not have the
internal resources to develop a new product within six months, it might miss the window
of opportunity. This seemingly impossible task is what some firms have perfected. In IT
industry, focus is put on acquiring people. And if you don't keep those people, you have
made a terrible investment.
y Quarterly ³all hands´ meetings are held to communicate repeatedly the company's
values and to make sure everyone feels included.
y The culture and values are also reinforced through the way jobs are structured and
managed.
Individual contributions are widely rewarded. For example, with the approval of the boss,
anybody can give anybody else an on-the spot bonus. Cisco works hard to ensure a fit
before an acquisition takes place, then rapidly assimilates the new company and works to
ensure that the new employees are satisfied and want to stay with Cisco. If a person does
not fit its vision and values, they won't be asked to join. Once the person or company
joins the Cisco world, intense efforts are made to socialize the newcomer to the Cisco
way.
The result in this case is a remarkable success that comes from capturing the value of the
entire workforce, not just a few superstars.
Coca Cola Hellenic Bottling Company ± EBSCO
The senior employees spent a major time (26% ± 50%) in evolving and executing the best
talent engagement practices. A special focus is given to the top 300 senior most
executives to bring out the best in them and retain them. They have also adopted a policy
wherein, the junior workforce is rigorously trained and company emphasizes to have 80%
of the senior leaders to come from such internal development.
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Chapter ± 2 - Objectives of Study
2.1 Statement of objectives of the study
The objective of this study about µTalent engagement during recessionary period¶ is to understand the
concept of talent engagement and relate it to the concepts being studied in our course pertaining toµIndividual Dynamics and Leadership¶.
Based on the above broad objective, the study covers the following specific objectives:
y Whether the company practices to ensure person-job fit and person-organisation fit.
y Understanding the employee motivation practices adopted by the companies in the IT sector.
y Study the efforts being made by the company to provide a balance between work and life to
the employees.
y Study whether the employees are satisfied with the job and the performance management
system of the organisation.
y Whether there is employee participation and involvement in the practices of the organisation.
2.2 Method of study
A small questionnaire based survey as well as interview with the significant functionaries
from IT sector is conducted to understand the specific practices adopted by the concerned
company to keep the employees engaged and at the larger level, see that the employees are
put in the right job profile, are given the right motivational inputs and thereby, ensure that
employees are satisfied with their job and organisation. The questionnaire used is a
standardised one given by the faculty after taking inputs from students.
The survey is conducted on 2 companies; TCS and Hunka Web Solutions. A minimum
sample of 15 employees is surveyed from each company of which at least 2 are HR personal
and the rest are the employees at different levels.
Each of the companies are analysed individually and then the whole sample of 30 employees
is used to analyse the practices in IT industry taken up by an organisation in times of
recession.
The analysis is done by using the mean of the responses for each factor (person job fit,
satisfaction, performance reward, participation and involvement) and a graph is drawn for the
same. Based on the graph output, the analysis is taken forward.
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Chapter ± 3
3.1 Anal i & Di i n of f indings
3.1.1 HUNKA Web - sol tions
Anal i t ti nnai as carr i out by di iding t questionnaire into 5 di erent
par ts
y Performance and R eward system
y Par tici pation and Involvement
y Person Job f it
y Work Life balance
y Satisfaction
Fig.1 ± Compar ison between responses of employees & HRM.
The above graph shows the average responseof employees and the human resource manager
(HRM of H NKA Web-Solutions on a scale of 1-5 where:-
1 means highly dissatisf ied
2 means fair ly dissatisf ied
3 means neutral
4 means fair ly satisf ied
5 means highly satisf ied.
2.8
3.7 3.9
2.8
3.33.23.6 3.6
2.8 2.8
0.0
0.51.01.5
2.0
2.5
3.0
3.5
.0
.5
Performanceand
Reward system
Participation and
Involvement
Person Job Fit Work Life Balance Satisf action
Employees HR
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From the above graph it can be seen that the employees and HR have more or less the same
opinion about the practices being followed by the company to meet the above mentioned
ob jectives. This also highlights the fact that employees feel that their workplace fulf ils all
their expectations about the organi ation. And it can be clear ly seen from the graph that in
most of the cr iter ia, employees have given a higher rating than Human R esource Managers
(HRMs).
Let us discuss each of the ob jectives in more detail with the hel p of a pie-char t for each of
them.
Fig. 2 ± Distr i bution for level of satisfaction about performance & reward system
As can be seen from the pie char t, 45% of the employees are at least fair ly satisf ied, 34%
have a neutral opinion about the practices being followedwhereas 21% are fair ly dissatisf ied
with the performance and reward system followed by the company. This can be attr i buted to
the practice of having a continuous process of analyzing and then motivating all members of
the team. This involves tak ing regular feedback and discussions revolving aroundall aspects.
When it comes to par tici pation and involvement, a high percentage, 71% of the employees
are at least fair ly satisf ied, 16% have a neutral opinion about it whereas at most only 13% are
¡ %
13%
34%30%
15%
Performance and Reward System
Highly Dissatisf iedDissatisf ied
Neutral
Satisf ied
Highly Satisf ied
¢ %
9%
16%
£ ¤ %
¥ ¦ %
Participation and Involvement
Highly Dissatisf ied
Dissatisf ied
Neutral
Satisf ied
Highly Satisf ied
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fair ly dissatisf ied. As it is a small organization, it becomes easy to include almost all the
employees in activities and decision mak ing. This distr i bution can be accounted to the fact
that, H NKA Web-solutions is a new star t-up company where employee strength is low (60-
90) and each employee can be given personal attention as and when required.
When we consider person- job f it, a high percentage, 57% of the employees are satisf ied, 32%
have a neutral opinion about it and only at most 11% are dissatisf ied. This might be due to a
very ob jective, str ictly specif ied and well def ined selection and recruitment cr iter ia adopted
by the organization.
Consider ing the suppor t provided for maintaining work life balance, 44% of the employees
are fair ly satisf ied, 28% have a neutral opinion about it whereas 28% are dissatisf ied.
Compared to other cr iter ia, the dissatisfaction regarding work-life balance is high because an
extra-ordinary amount of effor t is to be put in by a lesser number of employeeswhich
requires extra effor t in terms of time devoted, disturbing the work-life balance of an
employee.
11%
17%
28%
36%
8%
Work-Life Balance
Highly Dissatisf ied
Dissatisf ied
Neutral
Satisf ied
Highly Satisf ied
3%
8%
32%
3§ %
20%
Person-Job Fit
Highly Dissatisf ied
Dissatisf ied
Neutral
Satisf ied
Highly Satisf ied
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Finally when it comes to their overall job satisfaction, 54% of the employees are fair ly
satisf ied, 27% are undecided whereas 19% are dissatisf ied.
Thus tak ing an overall view, it can be said that the company needs to concentrate more on the
performance and reward system (dissatisfaction level ± 28%) and work life balance
(dissatisfaction level ± 21%) so as to improve the overall satisfaction level of the employees.
Steps taken by the organization for employee moti ation
H NKA Web solutions have an ongoing process of systematically identifying, assessing and
developing talent for future roles to ensure continuity, future expansion and effective
organisational performance.
They have taken many positive steps so that all the employees are:-
y Learning how to do it in a better manner
y Doing work that interests them
y Encounter ing fresh challenges
y Interacting with people in positive manner
y Secure about their jobs (No layoffs).
2%
17%
27%48%
6%
Satisfaction
Highly Dissatisf ied
Dissatisf ied
Neutral
Satisf ied
Highly Satisf ied
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When it comes to Par tici pation and Involvement, a high 59% of the employees are satisf ied,
19% are undecided whereas only 22% are dissatisf ied.
When it comes to Par tici pation and Involvement, a high 59% of the employees are satisf ied,
21% are undecided whereas 20% are dissatisf ied. Although, TCS, being a large organisation
has a large number of employees, still person- job f it is ensured by deciding goals by an
interaction between the subordinate and super ior.
Next for Work Life balance, 46% of the employees are satisf ied, 20% have a neutral opinion
whereas a high 34% are dissatisf ied. A large company like TCS has a very dynamic nature
and many of its clients are foreign clients, so most of the times, employees have to work in
shif ts (late night) which disturb their work-life balance.
2%
20%
19%49%
10%
Participation and Involvement
Highly Dissatisf ied
Dissatisf ied
Neutral
Satisf ied
5%15%
21%53%
6%
Per on- o Fit
Highly Dissatisf ied
Dissatisf ied
Neutral
Satisf ied
6%
2© %
20%
43%
3%
Work Life Balance
Highly Dissatisf ied
Dissatisf ied
Neutral
Satisf ied
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Finally when it comes to their overall job, 41% of the employees are satisf ied, 30% are
undecided whereas 29% are dissatisf ied.
Thus tak ing an overall view, it can be said that the company needs to concentrate more on the
performance and reward system and work life balance so as to improve the overall
satisfaction level of the employees.
Steps taken by Tata Consultancy Services for Talent and Employee Engagement
Appraisal TCS follows a half year ly appraisal policy wherein, in the f irst couple of months
goals for each employee are formulated in discussion with the employee concerned. At the
half year end, they are evaluated based on the diff iculty level and impor tance of each goal.
The result of the appraisal has a direct impact on the employee remuneration.
TCS Gems: TCS Gems was constituted to reward associates for their exceptional work in
form of gems points. The number of Gems points is directly relates to the k ind of
achievement which could be Customer Appreciation, Successful Pro ject completion,
implementing or suggesting innovative ideas, etc.. These points could be redeemed for the
different gif ts available on the company site.
Star of the month: This award is given to an associate who perform best in a month within
an account. These k ind of rewards motivate an individualmore than an appraisal.
Annual Cultural Events: TCS arranges var ious cultural events like Garba, Janmashatami,
Traditional day on impor tant days like Independence Day, Diwali, Dusherra among others.
Family Day: To build up good relations among the associates, TCS organizes Family day
every year. The family members are invited to the work place and interact with associate's
colleagues and get familiar with the work culture. Fun games and events across the age
groups are organized.
Sports: TCS conducts indoor games competitions like Carom, Table Tennis, and Box
Cr icket. TCS also organizes Badminton, Foot ball and Cr ickets matches. It is also the
3%
26%
30%
37%
4%
Satisfaction
Highly Dissatisf ied
Dissatisf ied
Neutral
Satisf ied
Highly Satisf ied
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Associate sponsor of Mumbai Marathon and encourages Employee to actively participate in
the event. TCS has one online community for sports from where all the information flows to
associates.
Pulse: A platform for Employees to provide feedback and suggestions on the satisfaction
levels for each department in the Organization. This allows the employees to raise concerns
and issues faced by them at the workplace and resolve them which lightens the burden on an
employees¶ mind, enhancing productivity.
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Chapter 4 ± Conclusion
Performance and reward system: The current slowdown has forced companies to adopt
more stringent measures for evaluating performance. While employees seem to acknowledge
that they would need to considerably hike their performance levels, they also expect to be
rewarded appropriately for their efforts.
Participation and Involvement: Companies are increasingly involving employees in cost
management, quality and client service initiatives as the focus is now on retention of highly
skilled employees.
Person-job fit: Companies continue to invest in critical talent as there is an increased fear
that competitors may try to lure valuable employees. Companies are keeping a close watch on
training spend and are more focused on multi-skilling existing employees. Companies are
heavily investing in identifying, engaging and developing high-performing employees from
within the organization.
Work life balance: The work life balance of the employees has been affected in the
recession times due to fear of loss of job and more emphasis on enhancing the skill sets so as
to be more flexible.
Satisfaction: The general satisfaction level of employees has decreased due to conservative
rewards and pay packages given by the company, increase in work load to be more
competitive in meeting the client deadlines in recessionary times. But at the same time the
training and growth practices have ensured there is not a sharp decline in the satisfaction due
to recession.
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Chapter 5 - Recommendations:
The following are the recommendations after the analysis:
y The companies should re-assess the jobs and skills that are most valued in the
organization. They should identify the critical workforce segments and create
customized programs for enhancing the employee skills.
y The companies should get a clear understanding of what the employees really value
and what can be ignored, and based on that, invest in the appropriate areas and cut
back on low priority ones.
y The companies should have right mix of rewards and should identify what kind of
monetary rewards employees expect and what kind of employees are more satisfied
with challenging opportunities or appointments on a critical client account.
y The companies should try to provide employees with a sense of security about their
jobs during the recessionary period by regular performance appraisals and feedback
on job performance and other motivational activities.
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Bibliography
Research papers:
1. Charles A. O'Reilly III and Jeffrey Pfeffer, ³Cisco Systems: Acquiring and retaining
talent in hypercompetitive markets´, 2008.
2. F redric D. F rank, Craig R.Taylor , ³Talent Management ± Trends that will shape the
future´, 2008.
3. John B. Miner, Donald P. Crane, Robert J. Vandenberg , ³Congruence and fit in
professional role ± Motivation theory´, 2005.
4. ³Talent planning ± The key to effective talent management´, 2008, EBSCO.
5. ³Talent management in Coca-Cola Hellenic bottling company´, 2008, EBSCO.
6. ³Deloitte ± employee engagement in recessionary times´, 2009.
Books:
1. Mary Ann Von Glinow and Radha R Sharma, Tata McGraw Hill, Organizational
Behaviour, 4th
Edition
2. F red Luthans, Tata McGraw Hill Publication, Organizational Behaviour, Tenth
Edition
Web pages:
1. http://www.HumanNatureAtWork.com
2
://
roques
um
com/login
3. http://122.170.126.131 (EBSCO)
4. http://cplash.com/post/Attrition-rate-dips-amidst-economic-recession983.html
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ANNEXURE 1
Sample Questionnaire
Kindly go through each statement and tick the appropriate answer.
Strongly Disagree 1
Disagree 2
Undecided 3
Agree 4
Strongly Agree 5
During these recessionary time;
1. Our organization keeps a track of employee performance in a judicial manner.
2. Our organization provides feedback to its employee on regular interval.
3. The mechanisms of measuring employees¶ performance are fair and just.
4. Our organization provide exceptional rewards to high performing employees
5. Our organization take enough care in rewarding mediocre and poor performing
employees
6. Employees with poor performance are discouraged in this organization.
7. Our organization considers seniority as the basis of rewarding performance.
8. Employees¶ in this organization are rewarded with monetary benefits than non-
monetary benefits.
9. Monetary rewards are affected because of recession.
10. Employees at Middle and senior management levels are badly affected in terms of
monetary gains due to recession.
11. Employees at junior level are badly affected in terms of monetary gains due to
recession.
12. Employees are encouraged to settle for non monetary rewards rather than monetaryones.
13. Employees find their salary remuneration fair considering what other firms in this
area pay.
14. Our organization gives a choice to its employees to select the job profile of their
choice.
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15. Employees are encouraged to participate in decision making process of their
team/department.
16. In our organization superior and subordinate set their performance goals in
consultation to each other.
17. Employees are given enough authority to make decisions of their choice.
18. Employees get opportunity to contribute to the organization¶s mission.
19. Employees are encouraged to bring in new ideas.
20. Ideas and suggestions given by employees are recognised by management.
21. Job roles of employees are assigned as per their capabilities.
22. Employees value the job they are doing.
23. Organization takes care towards skill development of employees whenever it isneeded.
24. Special training is provided to managers/supervisors for managing relationship on the
job.
25. Employees are encouraged towards learning new competencies and growth.
26. Career development of employees is taken care in this organization.
27. Talent pool is properly utilized in this organization.
28. Employees feel valued in this organization.
29. Working in this organization is fun.
30. Employees get enough time to pursue their individual goals.
31. Employees can adjust work timing as per their requirement and still complete their
targets.
32. Recreational activities are normal part of this organization.
33. Working hours are long and strenuous.
34. Due to recession working life has become chaotic.
35. Employee health is a concern for past one year.
36. Employees find their work load reasonable.
37. Management does everything to ensure the well being of the employees.
38. A large proportion of the job is rush job.
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39. Employees are often asked to speed up their job.
40. Employees get time for relaxation during work hours.
41. Employees are able to keep balance between work life and personal life.
42.
Management is liberal in providing leaves as per employees¶ requirement.
43. Management allow employees to undertake a sabbatical( fixed period of leave up to 2
years to undertake study, maternity leave, travel).
44. Employees allowed to work from home or outside of central workplace.
45. Our organization allows/pay for counselling the services of employees experiencing
family/work stress.
46. Our organization takes initiatives such as ± Quit Smoking Programmes or Dietary
Advice programmes to improve the health of the employees.
47. Employees would prefer to remain in this organization for next 5 years or more.
48. Employees are satisfies with the time given to complete the work.
49. Employees are satisfied with the reward system in the organization.
50. Employees are satisfied with their career growth in this organization.
51. Interpersonal relationships are satisfying in this organization.
52. Overall employees are satisfied with the organization.