How is HR Important for Small Businesses

Please do share your inputs on how Small Businesses can benefit with the HR Function in Place.
warm regards,
reddy GR
www.husys.net

Technology Support for SME HR Operations

GR Reddy works for Husys Consulting who are the pioneers in the HR Function Management/Outsourcing in the world. The views expressed are purely based on our experiences.

In Today's scenario each and every company in the Information Technology focus on the SME's across the Globe. The reason being SME's have never gone overboard during the peak and don't get distracted somuch during the Recession. That may be due to the conservativism, carefulness and focus on the deliverables constantly than projection to the external world. The resources work with SME's are generally enjoy the challenges and learning experiences. One of the effective way to help them to achieve what they want to achieve is by creating more time per day. That possible by way of creating a support system of IT which would enable them to earn more time per day.

I would focus on the HR Information systems to make sure that while making your decision on the IT for HR is focused.

- Never Buy a product as a BOX : There are many vendors who have a great box but doesn't have the capabilities to understand the depth of your organisation and customize (Ofcourse, each one use the word customization, true meaning is understanding the business and creating tailor made product)

- Make sure that You are Ready : Internal usage of computers and the extent to which the employees are friendly would define your Return on Investment on IT. You must ensure that the understanding and usage of basics of computers are known or trained across the organisation to make use of the systems effectively.

- Seek for Customization as a product : Many organisations struggle to implement and reap benefits of the IT support effectively. The Key is may be the CEO/Owner decided to bring it... The product may not have been customized... however continuous support in customisation would always the key for effective use of the IT systems.

- Knowledge of Vendors: One of the key element is any such products is all about the Domain/Knowledge of function. Many Implementation staff from the vendors lack the knowledge of business and the functional module implemented. Make sure that the implementation team would have a function consultant/associate from the Vendor to make it more suitable to your organisation.

Also invest in the Technology support for effective people management as a tool for organisational improvement. This would help in improving and monitoring the people related issues of organisation.

The best process with people and supported by technology is the mantra of modern business success.

Happy Tech-timing!!!!

For any questions please do write to gr@husys.net also visit www.husys.net for more information about Husys.

Good Organizational Structure, Clear Role and Responsibilities

The Organisational Structure Design would be the most important thing that one should work on. The Structure design should be able to take care of defining the basic levels based on the criticality of the work performed.

The levels in the organisation can be ensured to create the value to the organisation as it moves higher. For Example: Team Member Level in organisation should have a focus execution of the task as assigned and report back. Whereas the Top Management role would include identification of the futuristic and create a focus for achieving the organisational Targets.

Please do ensure that the organisation is not more than 3 major segments ( Team Member, Manager & Top Management). Make sure the each of the function identifies a support as per the team organisation.

Ensure that the Role & Responsibilities - the expected execution details are provided as part of Responsibility documentation.

Step I - Identify all the positions in the above Role Structure
Step II - Identify the key responsibilities not more than 8 items in each of the position
StepIII - Improve the baselevel expectations on each R&R from time to time as they master themselves
StepIV - Assign the same to each of the Associate

Further one can interlink these with the Objective Setting Exercise, we would discuss in the next post....

Please write your inputs and opinions on this blog through comments.

Thanks,

Warm Regards,
Reddy GR
www.husys.net

Lets VOTE : Employer Commitment to Elections

We have the General Elections 2009 and its a decision time for every individual and also for each one of us in the Business. The course of today's elections are going to define the way we see our businesses in future.

Each Employer/business owner/Business Professional has multiple responsibility towards the Future of India. You can plan to send in a note covering the importance of voting to employees, that pave way to contribute to the future of India. You play different roles:

- Role as a Voter ( I am sure each one of you would take your time to vote for a good cause and for our future)
- Role of Victim/Beneficiary
- Role of Encouraging our people to VOTE

As part of helping the employees to vote it is required to give a time off for casting their vote before turning up to office. Few methods to adapt are as below :

- As an organisation one can decide to start the work with a 1 hour delay ( by encouraging the employees to cast their vote in first hour and report to office)
- Provide for a 1-2 hours of break during the election day based on the date.
- For any others who have to cast their votes in other parts of the country - support them by allowing to use their respective leave balances.

This time the awareness is definitely very much in every part of the country/states/grassroot level... We hope for a better output with the involvement of all educated voter casting their right.

Happy Elections... Happy Future......

Time to Plan for year 2009 & Budget Realistically

As you are coming closure to the close of the year 2008-9 financial year, its important that you focus on planning for the next year. Here are the few steps suggest to ensure that you plan the most critical year ahead to beat the Recession Blues……

1- Define Organisational Objectives for year 2009-10
2- Identify the various matrices of organizational performance
3- Assign the basic assumptions based on Historical data for last year to future year and Make a tentative Manpower Plan (To be reviewed along the year)
4- Plan control mechanism every month for actuals Vs. Planned

Please refer to the previous posting on 29.1.09 for better utilization of the following inputs.

1. Define Organisational Objectives for year 2009-10
a. If you have not done the Clear objective setting till date or did not bother because of the good market condition earlier.
b. Its time that you tighten the basics of Objective setting & Communication to employees this year which would put you into the driver seat or else You are planning TO EXIT the BUSINESS.
c. Some of the Inputs for Creating Objectives
i. Identify the most critical measurements for organizational performance.
ii. Define the objectives clearly using the SMART rule – Simple/Specific, Measurable, Attainable, Realistic/Realtime & Timelines for completion.
iii. Do not take more than 6-8 objectives may include Revenue, New Investment, Business expansion geographies/verticals, Quality, People Development, Technology & specific organizational developmental objectives.

2. Identify the various matrices of Organisational Performance
a. This may include various ratios related to Revenue Vs. People (Month wise, Division Wise and Yearly)
i. Revenue per person/employee
ii. Operational activities/logistics per Person/Employee
iii. Ratio of support function vs. the number of people in organisation
b. Based on the ratio’s create base assumptions for Manpower Planning ( Need to plan to stretch while assigning for better organizational performance).

3. Assign the Basic Assumptions for Manpower Planning
a. Make division-wise revenue & operational flow expectations
b. Assign the ratios to the future year
c. Create a statement showing manpower requirements division wise/ month wise / year.
d. Critical of this stage is to finalise the numbers & Various Cost implications based on the plan (Financial budget to be interlinked).
i. Map with each of the unit and finalise the realistic people requirements.
ii. Finalise the number of positions and the profiles to be tracked and hired during the next year.
iii. MOST IMPORTANT FOR THIS YEAR : You can list the acitivites which can be done at a backoffice create in any of the Institutes/colleges would help to reduce the budget. The Institutes can help you in Research for Business Development, Cold Calling, Creating Database, Identifying potential buyers/suppliers, create presentations and documentations etc., This is the most critical part in the times of recession… You would save atleast 60% of the cost using this model. Create a option for your to try as part of the plan.

4. Control the Plan
a. Identify the the time lines to review the actual vs. projected every month
b. Identify the areas where you can tweak the plans to ensure that it goes with your business value

PLEASE DO ADD YOUR INPUTS AND QUESTION IF ANY, WHICH CAN BE ANSWERED AS PART OF IMPROVEMENT OF YOUR BUSINESS…..

Best Wishes for 2009-10,
Reddy GR
www.husys.net
Watchout for NEW BUSINESS SCHOOL for Industry Support from Husys 2009 - InHusys Business School

HR Solutions @ Current Scenario

The following presentation by GR was presented @ HYSEA (Hyderabad Software Exporters Association) on 29.1.09 & modified for generic HR solution.


Current Role of HR in Global Recession:

The Role of HR to be utilised more from Strategy perspective for business Support in current situation.

Organization Wide Role & Responsibilities
Effective Time & Performance Management
Involve in Business Planning
Create Innovative Solutions for Resource Pool
Organizational Communication
Improve People Processes
Build Alternative Resource Management
Build Models for Re-Training / Re-Skill / Multi-Skill

Some of the Strategies Discussed to be adopted in current senario:

A 10 commandments for survival :

-Multiple Utility of Resources with enhanced Role & Responsibility Definition(Job Enlargement)
-Enhanced Focus on Performance Mangement System
-Build Ideal People/HR Processes
-Move to Zero Bench/Unproductive resources (Work Just In Time with Institutes)
-Just in time hiring ( Only in dire emergencies)
-Organisationwide Productivity Reviews
-Reduce the lowest 30% of performers & Evaluate and Retain Top 20% who contribute 80% value
-Continue to Build value for Top Performers
-Partner with Educational Institutes who would have Infrastructure & people
-Partnering Synergy with companies who can offer extended Business Development services

Please do write back for any clarifications.

Warm Regards,
Reddy GR

Key Communication from CEO before the end of 2008(Any year-end)...

There is generally an excitement of a New Year everytime. With the current market conditions and also the way the businesses are running currently, this year is going to be special to every employee/Associate..... The Employees/Associates who work with each of the organisation have various influences within themselves and also from their social influence.

You as a head of the organization can send a note to all the employees/Associates about the business in the last year and expectations for the coming year.

You may want to cover some of the below and more......

- Business Scenario in your industry/competitors
- Some of the key Highlights of the year
- Some of the challenges faced by the organisations and how you have overcome
- also mention key contributions (IF you are sure of 100% measurable) of few associates/employees

Also write a note on the expectations for future in 2009 and hint any possible changes/challenges you may foresee... These are very few thought to generate an Idea... you can be as creative to ensure you want to speak your mind........

This note would help the employer the following ways:
- Work as an appreciation for the efforts and focus of Associates/Employees
- Set the business realities update with employees/associates,
- Set an expectation at large from a corporate perspective
- It would help the employees/associates to set their own expectations in order and which are close to realities of your own business
- This would also set stage for any change that you may bring during the next year.

All the best for year 2009......

Six-pack HR mantra for healthy SME

A Quick bite for CEO's


In Good times it may not have mattered, but in the turbulent times its essential that you look at each of the activity of your organisation well. All that you can do is use your People to be the key differentiator for future.


1. Good Organizational Structure, Clear Role and Responsibilities
2. Strict Performance Norms all around for business Growth
3. Invest in Time with Associates/employees
4. Strong Organizational Communication of Future & Expectations
5. Make the Associates/Employees Partners for Growth
6. Make the Cost optimization everybody’s business

If you are able to review the above and able to put things in place, your business bound to sustain the current economic scenario. For More information and support reach : www.husys.net or write comments on the blog for responses.

SME CEO Forum Highlights: Husys was the HR Mentor for CEOs

Hi All,

We are happy to share that Husys had a great time at ICICI bank SME CEO Forum on 21st November, 2008 at Hyderabad.

Sharing few of the concerns shared by CEOs at the meet
1. Challenges of CEOs at time of growth, especially while hiring people from outside how to protect the internal culture.
2. Retention of people at critical times
3. Getting funds for expansion plans from banks
4. Branding challenges, how to market them selves and compete with big players
5. Transition management etcHusys helped 20 CEOs to clear their doubts in HR.

Overall the program was good, but I feel the clarity and objective of the program was missed to the most of the CEOs who attended.

Regards,
Naresh

SME Get Best Out of Fresh Talent & Beat the Biggies

SME Get Best Out of Fresh Talent Beat the Biggies - OR be a Big one quickly....

Its always a tough challenge to build a great team with your value systems in them. SME's needs that simple and small effort with least investment to help them to reap the benefits interms of Revenue value.

To achieve the Revenue and Profit margin, It may be relatively easy and the best way is to look at the fresh talent who
- Can be moulded
- Trained the way we do business
- Can contribute by bringing the fresh pespective & creative talent
- Can be a very long-term pillar for organisation if retained well with a growth mantra.

One of the best way is to build a Management Trainee / Graduate Trainee Scheme. Lets examine some of the inputs to get maximum out of the effort.

• Generally The efforts in grooming vs the value is 1:10 times the revenue and even more when compared to the other traditional methods of hiring.
• Create a Scheme by which the initial training process, salary and the growth as per the organisational structure for next 5-6 years.
• Create a definite assessment Tools to evaluate on a common platform
• Identify the team to execute the entire recruitment process as a project
• Design a base Induction program and also specific based on the specialisation
• Evaluate every month the progress and the 6 months evaluation interms of the value.
• Evaluate each by Revenue terms at the end of the year with proper performance mechanism.
• Record all the positive and negative experiences for future and not to repeat the mistakes(for prevention).
• Evaluate the process every year and modify as per the business needs.

Please do write your queries and suggestions to improve/acquire knowledge.

Thanks,

Warm Regards,

Reddy GR

Husys - World's Only HR Function Outsourcing / Management Company

Reach Husys for any support in this regard ( www.husys.net ).

Congratulations From Husys to Abhinav Bindra for Olympic Gold

A heartfelt congratulations to Abhinav Bindra a little boy who inspired every Indian today... That talks about the potential that India to explore. Congratulations Again...
Team Husys

Get Best Out of Fresh Talent

Do you know that you can maximise your investment returns by using the Fresh Telent!
Use and Assessment Center Method to select your Fresh Talent and Groom them to be your Heads.... More next time! Keep tuning to HRSME blog of GR.

Also Do you know this blog already have the following articles:

-HR Function Management / Outsourcing Support for S...
-Outsource your HR with specific Measurabilities
-Keeping Lean Resources and focus on Cost advantage...
-Banks and SME's
-Challenges of Hiring Senior Level Positions @ SME'...
-Want to Start your Own SME
-Few Quick Decisions & Cost Implications
-The Challenges of Managing Growth
-SME's Challenges of Managing HR On their Own
-My Recent Experience of Hiring HR Freshers for Hus...
-Steps in Human Resource Support for Small and Medi...
-HR Support for SME's


Thanks and keep reading and commenting...

Warm Regards,
Reddy GR
Husys - HR Function Management Company
www.husys.net

Husys Becomes the First HR Management Company rated by Crisil under SME Category

Husys Becomes the First HR Management Company rated by Crisil under SME Category.

HR Function Management / Outsourcing Support for SME segment: Outsource your HR with specific Measurabilities

HR Function Management / Outsourcing Support for SME segment: Outsource your HR with specific Measurabilities

Outsource your HR with specific Measurabilities

If you are considering to outsource your HR Function and want to gain best out of process... First! Mindset for People processes which would take time and you need to give your organisation based on your maturity of resources and organisational stage.


Look for these fundamental improvements as part of the Phase 1.

- Place clear organisational goals and ensure your team undestands exactly the same way.
- Ensure the job description/responsibilities are clearly defined and explained at the time of Induction or change in role.
- Team Understanding of growth through the organisational stages of positions/roles
- Set the Basic Policies like Work Norms, Leave, Travel & Compensation Policies clear.
- Consolidate the Employee Data and manage the Files effectively.
- Have a simple measurement mechanism and reward system for Employees to contribute better.

Based on practicing the above basics and continuously communicating the importance each of these would help you to achieve your Outsourcing Goals for HR Processes.

* Please note the above are very few notes to help your thinking process on...

Please write your comments to improve the above note.

Regards.....Reddy GR - Husys - Worlds #1 HR Function Outsourcing Company

Keeping Lean Resources and focus on Cost advantage per person

Our experiences of managing HR Function Outsorcing at Husys - Worlds true HR Function Outsourcing/Management Company.


One of the most important thing that has an advantage for the SME's is Resources who are flexible and used for multiplicity of tasks. This is possible by the sheer need to run the organisation with the existing resources.

As we grow the ability to continuously track the importance of each resources and ensure a maximum output from each of the resources becomes important. Generally due to the pressure situations to execute tasks the addition of resources become mandatory. However it needs a critical evaluation to ensure that the long term liability is reduced.

A continuous audit of the Resrouces and the viz. output would always help to control and manage the cost related to People.


Have some fundamental ratios to help you analyse the yeilds:

1. Per Person Yeild : The total revenue of the function / No.of avg. people during the time period
2. The similar function can be looked at the each division measured verses the ration of contribution : The total revenue of the organisation / number of divisions

The above can be interlinked to a day-to-day operations to ensure that we strive and design our objectives to achieve a higher scale of operations.

One common issue with SME's is that they resort to initiate some practices keeping in few intial set of people. Soon they become the unwritten policy and may turn to be a burden in long-term. Important to review and look at the long term implication of every cost would help to manage the organisation to Grow,Grow and Grow.

Please do comment with your inputs.....

-Reddy GR

Banks and SME's

The title would definitely raise a question in anybody's mind.. and I am sure with the SME owners would have sleepless nights in thinking and relating these two. All that banks advertise on the media reverses when and SME owner approaches the Bank for support.

If we look at who starts the SME :

- A professional with a great exposure and wanting to do something different in life
- An individual who may be most of the times Middle Class/Business Family(small) with great idea
- An Individual who would have takenover from their parents/family.

An SME owner would think of a bank and the usefulness when they are on the path for growth and needs that helping hand. What one faces is the requisites to support financially. There are good intentions of the Government to set some money for the development of SME's but with the stringent pre-requisites make one feel frustrated. The usual issues faced by SME owners is:

- Project presentation that way its required by the bank
- The Mortgage of equivalent (this is one of the biggest thing would have killed excellent potential business in India atleast)
- Business standing and returns for last three years(Ofcourse, a good idea won't wait that long)
- Guarantees and so on...

If you are SME business owner and starting the company or running it successfully. The following are the investments to be done when you approach any bank...

- Invest some of the money you would have got in business during initial stages into property
- Invest improving your productivity to ensure your profitability is reflected well in the balance sheet (even if you are doing a little business turnover)
- Ensure a good CA who understands the implications of every number you mention in your Balance Sheet.
- Set the expectations and the facts with the bank accurately in the beginning and record.
- Ofcourse any other locational issues you may want to be aware of....

The above are based on my experiences, I am sure there would be many... please do write if you think some more are important while reading this note....

Thanks,
Warm Regards,
Reddy GR
www.husys.net
HR Function Management Company

Challenges of Hiring Senior Level Positions @ SME's

The following are the real-life support exposure by Husys - HR Function Management company.

This is one of the greatest challenge for any SME. It takes lot of time in taking decisions due to the cost,perceptions implications attached to the decision.
The Following are the challenges faced:
- Identification and encouraging the candidate for a company who are making the first decision.
- Translation of the Vision during the discussion and ensure there is a big picture for some one to take decision.
- Cost implications associated at each stage of brining such senior level
- What is the longitivity.. ensuring a long-term approach
- How does the hirining impact on the existing system interms of acceptance and effectiveness of business returns.
- How do we represent at each stage of identification, negotiation and encouraging to see joining.

Few of the things that are very essential in such cases.
- A clear cut Vision, Mission and short-term(1year) and long-term(2-3 years) plan for organisation.
- Translation of objectives into measurable components and specific time-lines
- Clear Job description and more importantly the clarity of the Role in the value addition to the organisation.
- Sustenance of the cost for the resource and impact on the overall functioning and profiability of the organsiation.
- Clear parameters interms of the compensation, role, expectations and measurable output.

The above would help any SMALL AND MEDIUM ENTERPRISE to manage their Induction of such Senior level would be of smooth transaction.

Please do write your comments and suggestions for improvising this note.

Warm Regards,
Reddy GR
Chief Facilitator
Husys - HR Function Management Company

Want to Start your Own SME

In India we have people with great ideas and wanting to do independently. They join the gang of SME's of India... However there are people who think for years and few in days to take a plunge in to the business world. Here are the few thoughts for those who wants to branchout and do something different than before:

Being independent has few of the things to be in place for sustenance:

- Ability to manage the personal fund requirements (atleast I would say 6 months) knowing the current Debt Society
- Support from Family Members to encourage & appreciate the effort
- Ability to take the Humiliation of client questioning your credibility alloever again (If you approach for a job your experience would be great...but when it comes to delivery as a company/consultant they would have 101 questions to check your stability and ability to deliver as independent/organisation.)
- Most critical is to hire / manage a support team ( identifying the people who feel small is beautiful and learning platform than ... people goes with brand)
- Ability to think big than any other biggest brands in

In my opinion all the above are important to start... there is not right or wrong timing for starting on own.... these are my personal thoughts based on self and also helping lot of SME's.

What are you waiting...the checklist is there to start....

Please do write your comments on this :

G R Reddy - Husys - HR Function Management Company
www.husys.net

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Few Quick Decisions & Cost Implications

A very Recent recruitment experience as HR support one of the SME.

There are typically challenges across the Industry in recruiting people. The average of finalising people have rose from 1:10 to 1:20 with large organisations. It is more even in case of SME's. After you make a offer there are almost 30-40% drop rate at Top International Companies. That also has a major impact on SME's in hiring.

The CEO know that there is an opportunity and becomes agitated due to the delay in bringing in people and hence resorts to a quick decision. In one of the recent case where such decision has costed 2lacs and not able to get even a single person on board. The Advertisement decision was decided by the CEO and executed without consulting the HR Resources as he/she felt that the things are delaying. However, the result was that everybody spent time and not able to get the result along with the Monetory Loss.

At recruitment SME's can't go with the same advertisement like any other MNC's. The MNC's spend on Job Advertisement only for branding than recruitment. Which may not be advisable to an SME. SME's have to look at a cost effective method of recruiting List Job Posting(advantage is interested people only respond), internet groups etc.,

Its important every penny spent ought to have a Return and only then the growth is possible. No shortcuts to get success and hence the same for brining in right people to build your vision into reality.

Please do comment on the note.....

Thanks,

GR Reddy
Husys Consulting
HR Function Management Company ( HR Function Outsourcing Company)
www.husys.net
Husys House, Hyderabad.