e-Panorama

28th Apr 07. Year2,Vol.15

Newsletter of Bharuch District Management Association

Like birds, let's leave behind what we don't need to carry..

Grudges, Sadness, Pain, Fear, and Regrets...Fly Light.
Life is beautiful.
If Yesterday didn't end up the way u planned..
Just remember... GOD created today for u to start a new one...
Don't limit yourself.
Many people limit themselves to what they think they can do.
You can go as far as your mind lets you.
What you believe, you can achieve.
===========================================

...inside..
" Talent Management
" Black sheep in your office
" Mystery of the missing 220 million
" The 7 Day Weekend
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e-Panorama

28th Apr 07. Year2,Vol.15

Newsletter of Bharuch District Management Association

Talent Management
Whats Not Working By Esther DAmico
Since the CW article narrates similar picture prevailing
at Indian Chemical Companies, excerpts are shared here.
It used to be that recruiting chemists, engineers, mechanics, office personnel, and
other staff to work at a chemical company had a lot to do with offering a competitive
salary and benefits package. But, as retirement looms for the first wave of baby
boomers and the number of technical graduates and skilled craft workers shrinks,
some chemical companies say that that criteria alone is not enough to sustain an
effective workforce. They say the industry is headed for serious labour shortages in
coming years. They say the good news is that they are addressing the problem by
transforming their human resource (HR) practices and work environments. They say
the bad news is that they are in the minority and that most firms still view talent
management as more of an HR function than a corporate strategy, an approach
that will no longer work long term.We are looking at a very difficult situation in the
next few years, says Dan Smith, president and CEO of Lyondell Chemical.
Smith cites a survey by Independent Project Analysis (Ashburn, VA) showing that
35% of the engineering and construction workforce will retire in the next five
years. Our industry stats are very similar, he says. Some of that workforce is only
in their mid-50s and opting for early retirement packages, he adds. Retaining talent
and attracting younger workers are two of the chemical industrys major
challenges, Smith says. However, the people aspects come secondary to many
industry firms, he says.Things are different now than they were 20-30 years ago,
says Nance Dicciani, president and CEO at Honeywell Speciality Materials. People
are looking for a lot more flexibility, they want to be recognised, and the attitude
is not one of Im going to join this company and retire here, Dicciani says. It
is more, Im going to be here as long as I can get something.
The hottest current issue for companies is the multigenerational workforce, in which
the baby boomers make up 45% and the older veterans, about 10% (table). The
statistics are similar between the U.S. and Western Europe, Durkin says. The
Nexters and Xers combined make up 45%, which is what is creating the labour
shortage issue. There arent enough people to replace the boomers and the veterans,
and their expertise and talent leaves with them when they exit the company, she
says. Given those demographics, entry-level hiring is expected to increase by about
17%/year, Durkin says, citing statistics from the National Association of Colleges
and Employers (Bethlehem, PA). The U.S. will have an estimated 10,000 more jobs
than people by 2010, so the challenge is for companies to be very desirable to young
graduates, she says.

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e-Panorama

28th Apr 07. Year2,Vol.15

Newsletter of Bharuch District Management Association

Working Titles*
Generation
Veterans
Boomers
Xers
Nexters

Birth Dates
1922-46
1946-62
1962-80
1980-00

Breakdown of the workforce by age

% of Total Workforce
10%
45
30
15

The values recruits look for include: a corporate culture that stresses social
responsibility and diversity; a way to make a difference in the world; recognition for
a job well done; the ability to learn and grow through professional development and
advancement; flexible work hours that may involve staggered work schedules or
telecommuting; and an environment in which they can have fun with new and
innovative projects. Competitive salary and benefit packages are also still important,
she adds.
This group is more demanding than the boomers were, and they turn over very
quickly. If theres inept management, they will leave; they experiment with careers,
Durkin says. In response, some chemical companies began changing their recruiting
practices a few years ago, she says. Some of the perks these firms offer are longer
vacation times, improved mentoring programs, greater benefits packages, and
increased job training. Criteria for retaining top talent includes creating an
environment in which people can be productive, enjoy their jobs, and want to
continue, says Seifi Ghasemi, chairman and CEO of Rockwood Holdings.

The key for keeping people is not how much you pay thembecause
somebody can always pay them morebut creating a positive, can-do
environment where they are encouraged, Ghasemi says. My job is to
see the things that [stand in the way] of a positive working
environmentno politics and no wasteful meetings. Many firms are
re-educating their senior staff so that it is better able to see the talent
that exists in young people, who are much more global minded and
broader thinking, and have a lot of technical expertise, Durkin says.
Senior staff tends to view them as lazybecause they want to leave at 5
oclock, she says. Thats just not true though; they just want a more
balanced life between work and home, she adds.
Offering greater flexibility may also help to prevent some of the boomers and
veterans from retiring early, Durkin says. The older generation doesnt want to walk
out the door, but it also doesnt want to work 40-60 hours a week anymore, she says.
One option is to provide them with shorter work weeks, let them work at home
sometimes, or at a remote location like Florida or Phoenix in the winter. Lyondell
says it has increased the flexibility of its work schedules. People dont stay loyal
forever, which is something that companies have contributed to with their cutbacks,
Smith says. People today are looking for more of a life outside of work. We
operate process plants world-wide 24/7. There are full work days and extended
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28th Apr 07. Year2,Vol.15

Newsletter of Bharuch District Management Association

days, and so more of our plants have gone to shift schedules. There are several
variations in shift work, including some that offer workers four, 12-hour days on
with four days off. People still work a 40-hour week, but it is chopped up
differently, he says. Many firms lack an understanding of how broad-based the
talent shortage is, particularly in the technical disciplines, and they have not
considered the long-term implications of the anticipated talent crunch, some industry
executives say. I see the talent management issue not so much about the availability
of workers [such as engineers], but about the availability of trained workers at the
factory levelthe skilled mechanics, Ghasemi says. Im worried about when we
want people to go and machine something in a plant, he says. At the end of the day,
the chemical industry is in need of skilled plant workers. The result is that
companies today usually spend more time and effort than they once did training new
hires for craft jobs, Ghasemi says. The real heart of a company is its people in the
plant making things. You need people for product development, but it is easier to get
those people, he says. Dicciani, like several other chemical industry CEOs, often

visits colleges and universities to promote her company, and science in

general. However, CEOs say that even when they are addressing math
and science students they are competing for talent against biotech,
information technology and other hot industries.

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e-Panorama

28th Apr 07. Year2,Vol.15

Newsletter of Bharuch District Management Association

Are you aware of Black sheep in your office

(In A Survey, KPMG Comes Out With Profile Of A Fraudster)
(ET Bureau NEW DELHI )

ARE you looking for that black sheep in your company? Keep a close tab on men
in the 35-55 age-group, particularly those in the managerial cadre. And this
includes board members and the CEO of the company. Consulting house KPMG
has sketched the profile of a fraudster in a survey which shows that 70% of all
fraudsters are between 35-55 age-group with 86% holding management positions
and 60% part of the senior management team. The survey has thrown up an
interesting phenomena.
One in every five frauds in Europe was due to financial jugglery while one in
every 10 fraud cases in India was found to be due to false reporting. The most
common fraud in India and the Middle East was corruption followed by theft of
cash and other assets.
The survey highlights three functions where corporate frauds usually take place.
Sales, Finance, operations and in some cases the CEO himself is responsible for
chicanery. These three functions represent 79% of all internal fraudsters.
Suppliers, customers and subcontractors constitute 80% of the external agents
involved in a corporate fraud.
Consultants, followed by joint venture partners are some other external entities
who have been spotted as fraudsters. According to the survey, the most
fraud-prone sectors in India are industrial markets and financial services
information, communication & entertainment, with more than two thirds of the
frauds reported in companies less than Rs 2,850 crore in size.
When it comes to committing fraud, theres a clear gender divide. Men are
distinctly ahead accounting for 85% of all frauds. However, as the survey
cautions, this could be a reflection of the fact that women are under represented in
the managerial ranks.

Chankya's Niti Shastra

Low class men desire wealth;

middle class men both wealth and respect;
but the noble, honour only;
hence honour is the noble man's true wealth.
Moral excellence is an ornament for personal beauty;
righteous conduct for high birth; success for learning;
and proper spending for wealth.
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e-Panorama

28th Apr 07. Year2,Vol.15

Newsletter of Bharuch District Management Association

Mystery of the missing 220 million

(Hairhar Narayanswami in Economic Times dtd. 6th April 2007)
Gross inequity exists in the taxation system. Two people could earn the same amount of
money and yet one of them is exempted from paying tax because he happens to grow
vegetables while the other has to virtually forego 30% of his income because he works on an
oil rig. Corporates pay an effective tax of just 19% or so whereas individuals pay around
30%. Harihar Narayanswamy asks if this is in order. Isn't consumption tax more equitable?
After all no one in India has ever attempted to explain why only 30 million individuals in the
country are paying personal income tax.
To expect 3 earning members to shoulder the burden of a 100 strong family is laughable
in this day and age and therefore to expect 30 million to support the balance 970 million
is totally absurd. Almost 50% of these taxpayers are salaried employees and the total
number of assesses with income greater than Rs 10 lakh is only a 122,000. Only 2.4
million of the 30 million earn more than 2.5 lakh. Do the math and you will see how there
is no way they can shoulder this kind of a burden.
The government may argue that these 30 million people are better endowed than their less
fortunate brethren and hence need to shoulder a higher burden for the greater good of the
nation. Two people could earn the same amount of money and yet one of them is exempted
from paying tax because he happens to grow vegetables while the other has to pony up 30%
of his income because he works on an oil rig. Unfortunately for these 30 million the rumbles
of 'why should' they support the balance 970 million are unlikely to be heard it is because
they are but a drop in the electoral sea of a billion people.
It seems clear then that there is no way that the 30 million people who pay taxes can or
should support 970 million others, given that many of that set seemingly has a capacity to
pay. If the government is serious about India being a developed nation in the coming decades
then this lopsided statistic has to change. At the current base even if one were to assume a
10% compounded growth for the next 20 years we would still have reached only 20% of the
population and that is assuming the population remains constant at 1 billion. Some 10%
would be optimistic considering that thus far even the Indian economy has never posted that
kind of growth in the best of times.

Numerous efforts to widen the tax base have failed to give the required results.
In addition, it is perhaps impossible for tax-officers to actually sift through
mountains of data and bring offenders to book. For all the suggestions that come
to mind to put the responsibility of equitable development on every citizen
taking into account his means perhaps the answer is simply this: Expenditure or
consumption tax. If the great Indian middle class can afford to buy cars, spend
lavishly on a wedding, upgrade mobile phones every year and invest in
high-end property to cite but a few examples, then surely it can be taxed for the
same as well.
{excerpts from the article of Shri Harihar Narayanswamy}

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e-Panorama

28th Apr 07. Year2,Vol.15

Newsletter of Bharuch District Management Association

THE SEVEN-DAY WEEKEND

Ricardo Semler

ONE of the recurring themes of the time the absolute

necessity to give up control in order to cope with changes
that are transforming the way we live and work. I believe the
obsession with control is a delusion and, increasingly, a fatal
business error. On-the-job democracy isnt just a lofty concept
but a better, more profitable way to do things. We all demand
democracy in every other aspect of our lives and culture. People
are considered adults in their private lives, at the bank, at their
childrens schools, with family and among friends so why
are they suddenly treated like adolescents at work? Why cant
workers be involved in choosing their own leaders?
Why shouldnt they manage themselves? Why cant they speak
up challenge, question, share information openly? Asking
why in this manner doesnt come naturally. People are
conditioned to recoil from questioning too much. First, it can be
perceived as rude. Second, it can be dangerous, implying that
were ignorant or uninformed. Third, it means everything we
think we know may turn out to be incorrect or incomplete. Last,
management is usually threatened by the prospect of employees
who question continually. Employees must be free to question,
to analyze, to investigate; and a company must be flexible
enough to listen to the answers. Those habits are the key to
longevity, growth, and profit.

Chankya's Niti Shastra

As gold is tested in four ways by rubbing, cutting, heating and

beating -- so a man should be tested by these four things:
his renunciation, his conduct, his qualities and his actions.
Those born blind cannot see; similarly blind are those in the grip of
lust. Proud men have no perception of evil; and those bent on
acquiring riches see no sin in their actions.

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e-Panorama

28th Apr 07. Year2,Vol.15

Newsletter of Bharuch District Management Association

Youth is not the time of life,

it is the state of mind,
it is not a matter of rosy cheeks,
red lips and supple knees,
It is a matter of the will,
a quality of imagination,
a vigour of the emotion,
it is the freshness of the deep springs of life.
Youth means a temperamental predominance of
courage over timidity of the appetite,
for adventure over the love for ease.
This often exists in a man of 60
or more than a boy of 20.
Nobody grows old merely by the number of years.
We grow old by deserting our ideas.
Years may wrinkle the skin,
but to give-up enthusiasm wrinkles the soul.
Worry, fear, self-distrust bows the heart
and turns the spirit back to dust.
Whether 60 or 16,
there is in every human being's heart.
The lure of wonder,
the unfailing childlike appetite of
what's next and the joy of the game of living.
In the center of your heart and my heart,
there's a wireless station:
so long as it receives messages of
beauty, hope, cheer, courage
and the power from men
and from the infinite, you are young
Accept the challenges,
so that you may feel the exhilaration of victory.
(Courtesy : Dr. M.S. Patel, GNFC Ltd.)

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e-Panorama

28th Apr 07. Year2,Vol.15

Newsletter of Bharuch District Management Association

::Editorial Committee::
Chairman
Mr. Jayen Mehta, GNFC Ltd.
Members
Mr. Mukesh Mehta, Heubach Colour,
Ms. Sheela Mistry, Insight Associates,
Mr. G.M. Patel, GNFC Ltd.
Dr. M.S. Patel, GNFC Ltd.
ePanorama Advisory committee
Mr. R P Vyas -President,
Mr.Kamlesh Udani -Past President,
Mr.Ashok Panjwani -Vice President,
Mr.K A Shah - Vice President

Bharuch District Management Association

601/602 Vaikunth Township,
Opp: Polytechnic College
Bharuch - 392 002 Gujarat - India
: +91 2642 228190
Fax: +91 2642 226619
To send your feedback, suggestions and articles
to Jayen@GNFC.IN

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