One thing that is very sure -- managing human resources has no magic formula. Yes, there is tremedous research evidence made available through modern applied behavioural sciences,but even these may not provide all answers.
In a rapidly growing country like India,with one of the highest economic growth rates in the whole world,there is a rapid amount of professional management infused by professionals in supply chain management, financial management,marketing and strategic management, thanks to the very high quality of MBAs produced by some thirty world-class B-schools.The other nine hundred and seventy B-schools also produce MBAs who support the leaders in terms of managerial inputs.
Yet, if there is one area that is still a puzzle, it is this: Human Resource Management.
I live and work in an organizational environment, that strongly supports the viewpoint that a paternalistic approach towards managing human resources, works, and very very well at that: the Rs.30,000 crore TVS group (one US dollar is now approximately forty Indian rupees).This is a huge group, headquartered in the South Indian metropolis of Chennai, which is also India's fourth largest city and vastly known as the detroit of India.
The TVS group is itself a very highly quality driven organization. It comprises of more than thirty organizations, and each of these manafacturing organizations, with very few exceptions,are very focussed on the auto component business. Each of these organizations supply spare parts to the best of the auto majors round the world -- GM, Ford,Crysler,Toyota, et al -- you name the organization and TVS would be supplying to them.
Yet,almost all the TVS organizations are publicity-shy. The owners of each group within the TVS group,are not high-flying leaders making noises on what support the Government of India should give to each business and how. Instead, they are the best living examples of what it takes to build excellent core competencies over a period of twenty to thirty years.
The TVS way of life believes in a simple, yet, powerful strategy: provide world-class quality, and business will follow, from around the world. Almost every TVS organization has followed the best of Total Productive Maintenance (TPM) and Total Quality Management (TQM), principles and practices. They have been advised by quality Japanese quality gurus like Yamakuchi and Tsuda.
Central to achieving quality is a total care of the employee and his immediate family: every employee is very aware that if there is a crisis in his personal life, the organization would step in and provide him maximum support, particularly medical expenses, in a country where most middle-class people can never ever afford the cost of quality health care in excellent private hospitals. The employees give in their best at any given point in time, and every employee would be proud in whatever benefits are made available to him or her.
For example,in TVS there is this simple practice: at the end of the day's work, a small snack is given free to each employee. This would cost rupees ten or less (one fourth of a US dollar). Yet, the families of the TVS employees are habituated to this snack for generations. The TVS group has this practice of employing sons or daughters of employees. Even today, there are third generation employees happily employed in the group.
Total Employee Involvement has to be seen to be believed: there is enough operational freedom to innovate within a given framework, and continuous improvement is a way of life. Many TVS companies have enviable zero-defect records, and at least four have won the prestigious Deming award.
What makes the difference? It is simple. Employees have absolute trust that there is one hundred percent job security, even when there is a recession. None of the TVS group organizations believe in being unfair to employees. Each employee is made to enjoy his organizational work, and since the learning opportunities are huge,a small per cent of youngsters are picked up by the competitors and customers of the TVS group companies at huge salaries. This is a recent phenomenon, but there are several hundreds of employees who have worked their lifetime with the group.
Absolute loyalty and discipline is not only expected, but also encouraged. In any case, this is sort of automatic, due to the very level of trust. At least four TVS organizations are now going global, and have set up factories in China, Indonesia or Oman. Employees who have been sincere and loyal are singled out, and given chances to serve in those locations.
The TVS model,has it own quota of detractors, who claim that the paternalistic approach has an in-built weakness: dictatorship. This is largely untrue, as the employees enjoy a good amount of freedom at work. The framework is largely defined by the Top Management, but this is so in hundreds of other Indian organizations, that are also family-managed. Most importantly such organizations have never ever attained the world-class quality standards that are taken for granted in any TVS group organization.
Yes, reliance on father figures, and looking upto them to provide guidance is a common practice. But this happens since the father figures are those who have had access to the best of world-class education and training abroad, and are ever willing to teach the required skills to hundreds of employees.
In-built into the model is one main objective: attaining the dedication and commitment of each employee, no matter how small or big he or she is in the organization's pecking order. Each employee is made to feel proud, and often carries home highly memorable experiences. Since there is a very high level of trust that naturally develops between the employee and the superiors, this becomes a good by-product.
Strategic planning and looking for global opportunities is now the name of the game. However, the TVS group believes in promoting managers. Several vice-presidents are those who joined the organizations as graduate engineer trinees, fresh out of some hihg-quality engineering college.
Several Japanese quality experts point out similarities between the TVS group and Japanese organizations, where the talent is systematically grown from within.
I would like readers to share their views on this style of Management: Paternalistic, with a big focus on winning the heart of every individual employee.
