Post Lockdown Changes – Management Paradigm

-Dr.K.THIRUGNANASAMBANTHAN, Asst.Professor, Department of MBA, Sankara College of Science and Commerce.

Business conditions are volatile normally, during this covid era it has become highly volatile. Many organizations are finding it difficult to cope with it. What are the strategies to be followed? Do’s and Don’ts etc. The Universal general business paradigm are Profits, Scale, Goals, Benchmarks, Targets and Competition. Experts say that this universal general business paradigm is going to change because of the corona virus.

According to Management Consultant Ramji Raghavan the new business paradigm will be Human Capital, Goals, Values, Efficiency, Adaptability, Profitability, Sustainability and Continuity

After Post covid humans will not considered as capital they will be considered as a resource the performance of the people plays a vital role. Training to Humans is considered as Investment rather than considering them as Expenses. Goals include retention of customers, Corporate Social Responsibility(CSR), Treat Customers Fairly (TCF). Values will be at the center stage which will guide the business.

Efficiency Metrics are activity discipline to get weightage along with results. When you consider human as resource, if you find any person is not capable of doing this we fire them. But post covid we need to consider human as a capital and concentrate on up skilling rather than firing. Competition is not a challenge, but an opportunity to find the edge, when it comes to Adaptability, Scrambling to Standard Operating Procedures (SOP) for emergencies and uncertainties to be in place.

Operability is the new benchmark since profitability takes a honorable place. Mutual benefit sharing should be implemented. Sustainability is also linked with responsibility, people value more those businesses which are environment friendly. Continuity – Next generation to the business grooming will be more professional. Industries need to keep it in mind about the change of business paradigm and adhere to the procedures to be followed in this new era.

 

TRANSFORMATION OF HRM PRACTICES IN THE DIGITAL AGE

Dr.S.SUNDARARAJAN, Associate Professor-MBA, Sankara College of Science and Commerce

HR now-a-days has become a strategic business partner. Although it is becoming increasingly clear that business innovation can be helped by forward thinking human resources function there is reluctance on the part of top management in many progressive organizations to allow HR assume strategic partnership role. ‘These HR guys talk about strategic role, e-learning and e-recruitment but they really don’t want to do this stuff. They would rather read about it in the quiet of their offices or sit passively in an audience while other people talk about doing it. I have my doubts about their understanding of our business goals’. We all know that the pace of technological innovation will continue to accelerate. HR can take advantage of these changes by automating HR processes and becoming more effective in communicating with its internal customers.
1. HR Information System
As the web is becoming more reliable, organizations are increasingly turning to Application Service Providers to host software and manage it from remote computers. Through this technology outsourcing many companies can avoid front capital costs associated with buying systems. When managed well there is no performance loss.
2. Home Pages
Web portal offers tremendous advantage in learning knowledge management support, business process support and employee self-service opportunities. The web has revolutionized the way HR services are offered to employees. Internet and Intranet enabled HR services has facilitated data capture and retrieval and freed HR executives from shackles of personnel administration trivia allowing them to concentrate more on HR strategy and employee well -being.
3. HR on Mobile
As Personal Data Assistants (PDAs) and digital phones become a fixture in corporate world the next step in the evolution of devices is wireless access to news, personal information and corporate data. Progressive organizations are already offering HR services through hand held Palmtops.
4. Bluetooth Technology
Bluetooth named after a 10th century king who united Denmark and Norway is poised for widespread roll out later this year. Imagine carrying your mobile phone into office and while it is sitting in your pocket, having it automatically exchange data with your PDA and desktop PC or setting your mobile phone down next to your PDA and checking e-mails without cords or wires.
5. Virtual HR Managers
With the introduction video streaming technology, the HR Manager has a powerful communication tool in his possession. He can stop shuffling video tapes and trying to gather employees in front of the TV for CEO’s monthly address. He can beam it to the PCs making it easier for employees to view video without leaving their desk.
6. Intranet Monitoring
The media is flooded with articles on internet security and internet misuse. Many organizations are installing sophisticated software to track down web sites an employee is accessing. The HR Manager has to formulate an E-Policy and give it widespread publicity. There are issues related to discipline, corporate ethics that might come up due to increased use of internet and networking technology.
How does transformation differ from change? Although essentially the approach is same, transformation is about starting over from an entirely new perspective. It requires, first and foremost, a change in mindset followed by change in processes, and finally a change in services. HR is being challenged to transform in order to:
1. Provide flexible alternatives to previously restrictive HR processes
2. Visibly demonstrate value addition to the accomplishment of organization mission
3. Improve individual and organizational productivity
4. Provide change management strategies
5. Partner with operational units to achieve goals and measurable success
6. To grapple with these challenges in future, HR technology can help.
In this fast-evolving business world, corporates have a multiple challenges. But how they deal with them reveals their eagerness to embrace the future and their desire for real change. New challenges need newer solutions, not reprocessing the old resolutions or “doing more of the same”. Hence the roles of the HR need high emotional quotient to boost diversity at work. Recruiting the right person becomes important for corporate to face this challenge. HR people were rushed off to feet with the directorial and administrative roles, and once in a blue moon had time to explore tools that could boost their contemporary tasks and effectively make a massive constructive impact on the business success.

CHALLENGES IN SUPPLY CHAIN MANAGEMENT

Dr.D.Sathishkumar, Asst. Professor, MBA, Sankara College of Science and Commerce

Supply Chain management is the process by which supply chain activities are managed to have an advantage over competitors as well as to maximize the value of our customers. It represents the efforts by which the supply chain management solutions help to develop and manage supply chain activities in the most efficient way. By having the awareness of supply chain management to identify the possible challenges and provide solutions to them.

Qualified Personnel
Challenges: Finding talent over the years interested and passionate about the line of work. Personnel hired in this field must have an understanding about the duties and responsibilities needed.
Solutions: Since locating dedicated personnel to work for this field has become increasing hard to find, their market value will start to rise. Hiring and promoting through in-house staff would be the most affordable solution at this point.

Quality Customer Service
Challenge: The Supply chain management is centralised on the needs of the customers. It is about to give the right quantity and right quality of the product for the right amount of money, in perfect timing and setting.
Solution: It might seem simply, but customers have different preferences and we have to always adjust to the customers’ needs, being able to provide customer’s unique solutions make a difference entirely. Companies that actually excel in this field are the ones that make an effort to learn and invest in new technologies.

Risk management
Challenges: Due to the constant change in the market, coming from a variety of sources such as consumer demands, political agendas and global sourcing, would cause major issues to the operations.
Solutions: Always be prepared with a risk management plan, on how the company will be able to overcome disruptions during the course of operations, by hiring a logistics software development company would be able to manage these issues effectively with less effort on the company end.

Costing
Challenges: The cost of raw materials, energy and labour has increased due to economical constrains globally, for the operations to continue production and provide customers with good quality items at affordable rates, adjustments have to be made to keep operations running.
Solutions: The best solution to this issue would be improving your cost control by executing the plans efficiently through constant monitoring. Through efforts in providing warehouse efficiency will be able to do the process.

Supplier Relationship
Challenges: By creating a mutually sound and harmonious relationship with the partners or suppliers the company will be able to provide the customers with high standard products in a timely manner. This allows in creating an opportunities for improvement in terms of performance.
Solutions: By Building a strong working relationship with the supplier, the company would be able to work efficiently and come up with better output in a short period of time.

Unforeseen Delays
Challenges: Procurement of materials and product may be easy, but the delivery may not always be satisfied to the peak on time, especially with time differences and a variety of shipping time frames. When items are sourced from different countries, delays like this are common.
Solutions: With the support of warehouse management system the company are able to know the need to have certain materials delivered as well as create a time cushion in terms of delivery to make sure everything runs smoothly.

Continuity in crisis-3P’s

Ms.K.Sindhuja, Assistant Professor, MBA, Sankara College of Science and Commerce 

“Crises and deadlocks when they occur have at least this advantage, that they force us to think.” Jawaharlal Nehru

The COVID-19 pandemic presents a significant threat to people, businesses and economies across the globe. Smart leaders must specialize in how they will be best in protecting their people, serve their customers and stabilize business continuity. Organizations must respond rapidly and robustly to keep up business continuity.

However, organizations are often ill-prepared to react to a significant and sudden increase in call volumes. In the context of COVID-19, that increase is combined with the risk of having to suddenly shift to remote work-from-home models and protect a workforce in a high-risk environment. It’s an unprecedented challenge that will require swift action.

Just 12%of organizations are highly prepared for the impact of corona virus, according to Gartner’s recent Business Continuity Survey.

32% of senior executives rarely update their operating model, according to initial data from an ongoing Intelligent Operations survey by Accenture and Oxford Economics.

                                 ACT NOW ACCORDINGLY……

# PREVENT: What to try now

*Take immediate steps to make sure the security and well-being of employees.

 *Enable people to figure and connect with colleagues from diverse and secure locations and build safe working environments through regular sanitization.

*De-densify workspaces, curb large meetings and make sure that protocols are followed in staff room, rest rooms and areas of common use.

* Limit all non-essential business travel and client visits and align with local health and safety guidelines

# PREPARE: What to try and do next

*Establish a command center for a virtual workforce to live quality, productivity, compliance, insights and intelligence, people engagement and workforce well-being.

*Identify priorities and demanding processes, including functions like employee payroll, healthcare

# PREDICT: What to try and do for the long run

*Be proactive and build a correct strategically plan. Prioritize actions that facilitate your pre-empt the impact of volatility.

 “Remember, empathetic leadership and communications are two key areas that aid human resilience in difficult times”

What more do you need to live?

– Dr.K.ThirugnanaSambanthan, Asst.Professor, Department of MBA, Sankara College of Science and Commerce.

To live in this world every human being has certain needs.  Needs are classified as Stated Needs, Real needs, Unstated needs, Delight needs, Secret Needs.  If all these needs are satisfied, whether it will make one happy?  If all your wants are satisfied whether it will make one delighted?

Which is the parameter of success in one’s life?  Which attribute gives complete satisfaction?

• How much money he/she has?
• How much fame he/she has?
• How much knowledge he/she has?
• How handsome/beautiful he/she is?
• How much healthier he/she is?
• How many relatives/friends he/she has?
• How much assets he/she has?

none of these are going to give complete satisfaction.

            Consider the case of the famous actor Mr. Sushant Singh Rajput who died by suicide recently.  Try to answer the above questions empathizing Mr.Sushant Singh Rajput.

1. Sushant Net worth was 50 crores.
2. He had huge fan followers even in social media and also had more than 12.1m followers in Instagram. 3,014,508 people follow his facebook account. 2 Million Followers in Twitter.
3. He was ranked seventh in the DCE Entrance Exam in 2003
   • Secured admission in the Bachelor of Engineering (Mechanical Engineering) class in Delhi College of Engineering.
   • He was also a National Olympiad Winner in Physics
   • In all, he cleared as many as 11 engineering entrance exams, including  Indian School of Mines
4. He was young, handsome and healthy.
5. Mr K.K Singh, Father: Shweta Singh Kirti, Sister: Mitu Singh, Sister and many friends including his former friend Ankita Lokhande.
6. Sushant had bought a piece of lunar land on the far side of the moon, in a region called the Mare Muscoviense or the ‘Sea of Muscovy’ from the International Lunar Lands Registry. He has also owned several luxury vehicles such as BMW K 1300 R motorcycle, Maserati Quattro Porte, Land Rover Range Rover SUVetc. He also owns a super expensive telescope.

In spite of all these what made him to commit suicide?  What do you need in your life?

Peace! Braveness! What more?

            Humans do not know that their life is nothing. You cannot carry even a single penny when you die even though you are a millionaire or a billionaire.  We cannot determine your birth or what living being we are going to be in our next birth.  Consider the size of the galaxies we are lesser than a dust.

Think & Change your attitude, nothing is going to give you satisfaction except Divine Bliss.

Workplace skills after COVID-19

Dr. Priya Kalyanasundaram , HOD, Deparamtne of MBA, Sankara College of Science and Commerce

As most of us are facing the pandemic situation and we are left to surprised to think, how the world might look like after a post coronavirus period but still a big question mark, will the things go exactly as before .The present scenario has changed the way to work and here are certain tips to up skill yourselves to improve your capabilities during this period.

Bank’s Policy

Prof. S. Thilak, Assistant Professor, Department of MBA, Sankara College of Science and Commerce

MINOR’S ACCOUNT:

1. Savings Bank/ RD account can also be opened by a minor jointly with natural guardian or with mother as the guardian.
2. Minors, above 10 years will also be allowed to open and function savings account independently. However, bank can fix the limit in terms of minimum age and the amount upto which the minors are allowed to operate the deposit accounts.
3. No overdraft will grant to these minors.
4. On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian/ guardian, fresh specimen signature of erstwhile minor duly confirmed by the guardian would be attained and kept on record for all functioning purposes.
5. A cushion of 6 months is given to such accounts to complete the KYC formalities, after attaining the majority.

 VISUALLY IMPAIRED PERSONS:

1. Visually Impaired Persons may be allowed to open all types of a accounts, except current accounts, either singly or jointly with other persons.
2. Opening of current account for visually impaired persons at the branch level requires prior permission from higher authorities.
3. The terms and conditions governing the accounts including special conditions if any, should be read and explained to the visually impaired person by the bank official in the presence of a witness in sight of his physical infirmity.
4. Branch should obtain witness signature (known to the bank) on personal data form and the Account Opening form along with specimen signature of the depositor at the time of opening of the account.

 GARNISHEE ORDERS:

1. It is a court attachment order.
2. Initially, Order for freezing the operations on the account called Order Nisi is obtained. On receiving of final order called Order Absolute.
3. In case specific amount is mentioned then excess balance is transferred to a new account and operation in the new account is continued.
4. Attaches credit balance in the account, TDR playable at a future date.

5.Future credit, collection items/clearing credits realized after the receipt of the order are not attached.

6. Order in single name then joint deposit & partnership deposit not attached.
7. Order in joint names/name of partnership then deposit in single name attached.
8. Does not attach balances in the account of deceased/ insolvent.

 REVENUE ATTACHMENT ORDER:

1. Issued by Income tax, sales tax and wealth Tax dept.
2. Specific amount has to be mentioned.
3. Attaches credit balance, TDR payable at a future date.
4. Also attaches future credit, collection items/ clearing credit realized after the receipt of the order.
5. Joint deposit attached proportionately but partnership deposit not attached.
6. Also attaches balance in the account of deceased/ insolvent.

 PAYMENT OF A BANK DRAFT CANNOT BE STOPPED BY THE BUYER:

1. While issuing the drafts the Bank receives value well in advance.
2. Hence, the bank cannot go back on its own promise to pay the money, which was received as consideration.
3. Once a draft is issued, the bank becomes trustee of the funds for the payee. Hence payment of draft cannot be countermanded.

 NOMINEE’S SIGNATURE IS NOT ATTAINED ON THE NOMINATION FORM.

1. Nomination comes into picture only on the death of the original depositor.
2. There is no contract with the nominee.
3. To enable the account holder to change the nomination at his will in favour of any person without any legal problems, created by the earlier nominee and to maintain Secrecy.

 PAYMENT OF CHEQUE BEYOND BUSINESS HOURS IS NOT MADE TO ANYONE OTHER THAN THE DRAWER:

1. Bank will be liable for loss caused on account of wrongful payment outside banking hours, in case of death / insolvency/insanity of depositor/stopping payment of cheque/receipt of Garnishee or IT attachment order.
2. Payment outside business hours may be made only to the drawer as he cannot countermand/stop payment of such cheques.

     3.Such payments are not considered as payments in due course under Sec. 10 of              NI act.

4. Sec 65 of NI act provides for payment of negotiate instruments during banking hours.

 PLEDGE:

1. It is a charge where the borrower hands over possession of asset to the bank. For eg. Loan against gold jewellery, warehouse receipts etc.
2. The relationship between borrower and the bank is “Pledger” and “Pledgee”.
3. Under this the ownership of the goods remains with the borrower but the possession of goods is in the hands of the bank.
4. The bank enjoys Right of Sale in case the loan is not repaid and the bank can sell the pledged goods after giving adequate notice of sale to the borrower.
5. When the loan is fully paid, it is the responsibility of the bank to handover the possession of the goods back to the borrower.

  PLEDGE VS HYPOTHECATION:

 Under pledge the ownership remains with the borrower but the possession passes on to the bank, under hypothecation both ownership and possession remains with the borrower.

1. Under pledge the bank can sell the asset without going to the Court, under hypothecation it can be done only through the legal process.
2. Hypothecation creates “floating charge” on assets created out of bank funds. Though hypothecation is the maximum predominant form of charge for bank, it is lesser to pledge. To protect their assets, bank need to review the hypothecated assets occasionally.

 

 

FUTURE OF FINANCE IS SUSTAINABLE AND PROFITABLE

Ms.K.Sindhuja, Assistant Professor, SIMS

“An investment is deemed an investment only through its returns.”- Lamine Pearl heart

The finance ecosystem—clients and employees, shareholders and stakeholders—is striving for purpose and sustainability. Environmental, social and governance (ESG) considerations are at the fore front of financial decisions, supported by the Sustainable Development Goals (SDGs) and increased awareness of the climate emergency. Sustainable finance is sometimes referred to as green finance, but it’s not just about reducing emissions or preventing environmental damage.

Environmental concerns include air and water pollution, deforestation and biodiversity. More generally, they relate to how a company performs as a steward of nature. Social factors reveal how well a company manages relationships with employees, suppliers, customers and the communities with which it engages. Social issues vary from diversity in the workplace to human rights and labor standards across the supply chain.

The importance of sustainable finance was explained succinctly last year by James Gorman, CEO of Morgan Stanley: “If we don’t have a planet, we’re not going to have a very good financial system.”Recently, attitudes have started to change, and the private sector is beginning to take its commitment to the environment seriously.

Sustainability is now a Global concern:

31% of American consumers say they have rewarded companies that are taking steps to reduce global warming by purchasing their products in the last year.

21% percent of American consumers say they have punished companies for opposing climate action by avoiding their products.

In a Unilever study, 21 percent of the people surveyed across five countries said they would actively choose brands if they made their sustainability credentials clearer on their packaging or in their marketing.

Shoppers say they feel better when they buy products that are sustainably produced (53 percent in UK, 78 percent in US, 88 percent in India).

Financial growth is no longer a firm’s sole performance metric. Non-financial objectives, particularly ESG criteria, are gaining traction. Consumers want companies to be mission-driven as well as focused on generating shareholder value.

Sustainability makes business sense and lowers operational risk

Classical economic theory stated that the valuation of a company or asset should be predicated almost exclusively on the bottom line.

Sustainable firms attract and keep better skilled and more committed employees and have more loyal customers. Their stronger relationships with stakeholders mean, in turn, that their social license to operate is more secure.

Recognizing investment opportunities: 

The transition to a sustainable economy offers considerable investment opportunities present in frameworks such as the Sustainable Development Goals, or in the growth of the renewable energy and energy efficiency sectors. For example, embedding climate considerations into asset allocation through investments in renewable and other low-carbon technologies offer the finance sector a way to achieve improved returns while also contributing to the low carbon transition.

Thus, these sustainability principles serve to maximize their opportunities and to minimize the negative impact their core operations have on the environment, and the communities and economies in places where they operate.

“We make a living by what we get, but we make a life by what we give.”– Winston Churchill

 

Role of HR in these tough times

Dr.S.SUNDARARAJAN, Associate Professor , SIMS

For those who have spent over 30 years in HR fraternity, these financial downturns / industrial slowdowns are happening, probably the third time. First around 91-92, second around 97-98 and now again. So, the story looks all too familiar, because, friends, when people see the upturn, they forget the down turn and exactly does same mistakes of building huge costs and many non-value adding processes. Unfortunately, most of such cost build ups do not get done with the involvement of HR. For example, many companies, in their desire to grow faster, have filled more than the required number of trainees; to attract talent, offered higher and higher salaries, even though the value addition remained almost stagnant; built costs on entertainment / infrastructure of recurring nature and so on. But friends, honestly speaking how much of HR involvement was there while these decisions were being made? There would be a few cases but, at least my experience that rarely HR is being asked to give an opinion on cost build up like this; on the contrary, when any HR person points out the risks, they are considered as not business savvy.

Let us also look at another aspect. Except for Retail and IT industry, people cost as percentage of revenue is generally not that high; but it is here everyone focuses on to start with to cut; why? In some manner, As a HR professionals also joins the demand and do all that is required to restructure operations / people etc. So, they are not seeing anything being done differently in this down turn that was not done earlier.

Current crisis

The most painful period for an organization is telling its employees – either some of them is not needed or they can’t take home the same level of salaries or they cannot enjoy the same benefits any more. People have questions like, when the going was good; you never gave everything out to us and hence, when the going is bad, why I need to share it? So, in my experience, there is no better way but to be very transparent about the current and emerging scenario for a horizon of 2 – 3 years and also share what is available resource and what are the constraints going forward. Of course, the people would like to see what sacrifice the senior management team does before they believe in the story. I am sure most of you are bored as you all know it. But,  HR’s are in a position to do the entire thing as above dispassionately and credibly in front of its people? Do we have this freedom and latitude? If yes, those cases would be successful in handling this downturn.

The second important thing is — managing the morale. When some are being removed, you still have business to manage and may be, people have to work more (even take the load of their colleagues who leave) and probably get same or lesser pay and benefits. A tough job, tougher working condition, poor ambience (motivational level) and lower salary and benefits. So what more challenge HR professional needs to handle? Here the easiest situation to handle is in cases where “survival” of the company is at stake. If people are transparently told, things work dramatically better. However, the genuineness of the communication and commitment of the management team is to continue to get business will be seen, which unfortunately falls beyond the scope of HR. This requires HR to be part of the business acquisition team to know what is the reality in the market and then share it as it is with its people (not select, but with every one).

For future:

HR should be an absolute partner of Business Growth and Strategy, which means, when there is scenario planning and action, HR’s are also expected to plan and suggest a future-scope while ensuring that people productivity and cost per transaction levels are kept absolutely minimal (This would require HR managers to be also business managers and also strategic thinkers). In fact HR managers should be allowed and be able to challenge the growth projections based on solid information and analysis. Companies need to allow this latitude to HR as they allow Finance function to challenge the numbers.

Consistently, the single metric for companies to run, need to work on cost per unit revenue – which drives innovation, improvement, performance enhancement, process improvement, technological excellence and so on. As one of the promoters of a large group in India said, “If everyone were to die, he would be the last one to die”. So ensuring all fixed costs is minimized (with human face of course) and organization focus is kept on cost per unit revenue and its continuous improvement should be the focus of all HR managers.

Covid in Information Perspective

-Dr.THIRUGNANASAMBANTHAN.K, Asst.Professor, SIMS

In our planet more than 7,742,069 people are infected by Corona Virus leading to 4,28,362 deaths at the rate of 10% in closed Cases.  India  is currently in fourth position  with 3,09,603 covid cases with 49.8% recovery rate (Around 1,54,330 patients recovered).  The Number of deaths in only 6 (Deaths/Million) which is vey less compared to other countries.  Our total population is 1,379,307,780.   Total test conducted till now is 5,507,182.

Scientists have divided coronaviruses into four sub-groupings, called alpha, beta, gamma, and delta.  This Covid virus is mutating.  The viruses have a genetic material called Ribonucleic acid (RNA), when a virus enters into the human body it replicates the copies of the RNA and starts spreading.  During copying of the RNA if there is a change in RNA it become a mutant. In Tamilnadu, Telegana, Maharastra, Delhi  Covid virus i/A3I is infecting people.

            As per an ancient quote “ Information Is Knowledge and Knowledge is power”.  Information is an valuable and critical resource. We hear a lot of information about covid, some are true some are false, some are totally misleading. Most of the companies, corporate and government are not able to make decisions during this covid period.  Companies are in a dilemma with regard to production, retention of employees, new investment, new infrastructure development, maintenance etc.  They are not in a position to forecast regarding this corona virus and its impact globally.  Even many countries are in a dilemma on how to control this pandemic.

            As pandemic infection is a very big issue information regarding this should be Relevant.  Information regarding covid must be complete as partial information is worse than no information(Similar to “Aswathamma Died” in Mahabaratha).  Erroneous information may lead to disastrous decisions.  Most of the decisions taken based on the current information so it is important for top level management to have current information. To conclude, It is the duty of all the stakeholders to give a clear, complete, accurate, current      and relevant information about Covid so that it will  help in making correct decisions.