How can Human Resources contribute in new Financial

Challenges

By: Malay Chaturvedi

Head HR-Idea Cellular Ltd.

What Problems the Telecom Sector is facing:• Telecom – A Volatile & Dynamic Industry

• New License Cancellation

• Spectrum Allocation at 10 Times Cost.

• Shrinking Margins.

• Telecom Infrastructure – Prohibitive Cost

• Adoption of 3G & Data usage.

• BOTTOMLINE under Intense Pressure.

Issues in Front of HR……….. Proactive Contribution in

SMART AOP Increase Revenue Higher Manpower Productivity with sustainability Optimising /Reduction in Cost

 Traditional HRHR has a history– and let’s be honest – of Not being strategic More people skills than business skills.   No industry standardization Lack of quality control Behaviorally based processes Poor understanding of the business No clear ROI on HR initiatives Poor alignment with the business

But, in business, more credibility is given to hard skills•Measurements, •numbers, •Profit, etc.

 High Credibility of HR

The HR Thrust….

“What you measure is what you get’’Kaplan & Norton 1992

Measurement How is HR contributing in business ????

Make product? Or make products better? Or make product less expensively? Or make product faster?  Or sell more product?  Or open a second product store?

Measurement Vs Impact For HR, the measurements can be

challenging to define. But not impossible.  If you can’t find the impact, you have

to question the relevance of the measurement or process. 

Is it time and/or money wasted?

HR & Admin. Cost constitutes X% of the Total Cost in Business and managing this cost

impacts Bottom-line of business.

It Impacts Business EBIT

Just to Share…..

EBIT – Earnings before Interest & Tax

How do we manage it ????

Manpower Budgeting Cost Elements

An eye for detail in budgets & spends……

Monthly MIS Tracking - HR

HR PYRAMIDHR

PIE

CE- Org design- Business Partnering-Talent Management-Capability Building

-Process Reengineering-Measurement Metrics and Indices -Cost Arbitrage-Employee satisfaction/engagement

-Repetitive but fundamental-Hygiene-Voluminous`

Thank You