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Showing posts with label Corporate news. Show all posts
Showing posts with label Corporate news. Show all posts

Saturday, 12 March 2011

SAJJAD PURVEZ - Google’s Quest to Build a Better Boss


Laszlo Bock of Google says its study found that a boss’s technical expertise was less important than “being accessible.

IN early 2009, statisticians inside the Googleplex here embarked on a plan code-named Project Oxygen.
Their mission was to devise something far more important to the future of Google Inc. than its next search algorithm or app.
They wanted to build better bosses.
So, as only a data-mining giant like Google can do, it began analyzing performance reviews, feedback surveys and nominations for top-manager awards. They correlated phrases, words, praise and complaints.
Later that year, the “people analytics” teams at the company produced what might be called the Eight Habits of Highly Effective Google Managers.
Now, brace yourself. Because the directives might seem so forehead-slappingly obvious — so, well, duh — it’s hard to believe that it took the mighty Google so long to figure them out:
“Have a clear vision and strategy for the team.”
“Help your employees with career development.”
“Don’t be a sissy: Be productive and results-oriented.”
The list goes on, reading like a whiteboard gag from an episode of “The Office.”
“My first reaction was, that’s it?” says Laszlo Bock, Google’s vice president for “people operations,” which is Googlespeak for human resources.
But then, Mr. Bock and his team began ranking those eight directives by importance. And this is where Project Oxygen gets interesting.
For much of its 13-year history, particularly the early years, Google has taken a pretty simple approach to management: Leave people alone. Let the engineers do their stuff. If they become stuck, they’ll ask their bosses, whose deep technical expertise propelled them into management in the first place.
But Mr. Bock’s group found was that technical expertise — the ability, say, to write computer code in your sleep — ranked dead last among Google’s big eight. What employees valued most were even-keeled bosses who made time for one-on-one meetings, who helped people puzzle through problems by asking questions, not dictating answers, and who took an interest in employees’ lives and careers.
“In the Google context, we’d always believed that to be a manager, particularly on the engineering side, you need to be as deep or deeper a technical expert than the people who work for you,” Mr. Bock says. “It turns out that that’s absolutely the least important thing. It’s important, but pales in comparison. Much more important is just making that connection and being accessible.”
Project Oxygen doesn’t fit neatly into the usual Google story line of hits (like its search engine) and misses (like the start last year of Buzz, its stab at social networking). Management is much squishier to analyze, after all, and the topic often feels a bit like golf. You can find thousands of tips and rules for how to become a better golfer, and just as many for how to become a better manager. Most of them seem to make perfect sense.
Problems start when you try to keep all those rules in your head at the same time — thus the golf cliché, “paralysis by analysis.” In management, as in golf, the greats make it all look effortless, which only adds to the sense of mystery and frustration for those who struggle to get better.
That caveat aside, Project Oxygen is noteworthy for a few reasons, according to academics and experts in this field.
H.R. has long run on gut instincts more than hard data. But a growing number of companies are trying to apply a data-driven approach to the unpredictable world of human interactions.
“Google is really at the leading edge of that,” says Todd Safferstone, managing director of the Corporate Leadership Council of the Corporate Executive Board, who has a good perch to see what H.R. executives at more than 1,000 big companies are up to.
Project Oxygen is also unusual, Mr. Safferstone says, because it is based on Google’s own data, which means that it will feel more valid to those Google employees who like to scoff at conventional wisdom.
Many companies, he explained, adopt generic management models that tell people the roughly 20 things they should do as managers, without ranking those traits by importance. Those models often suffer “a lot of organ rejection” in companies, he added, because they are not presented with any evidence that they will make a difference, nor do they prioritize what matters.
“Most companies are better at exhorting you to be a great manager, rather than telling you how to be a great manager,” Mr. Safferstone says.

Thursday, 10 March 2011

SAJJAD PURVEZ - AUDI GROUP: BEST RESULT IN CORPORATE HISTORY


The Audi Group has concluded the 2010 fiscal year with a record result. "The operating profit of EUR3.34 billion shows how profitable Audi is. We are growing not only in China, but in many regions around the world. The Audi brand has outpaced the growth of the overall market, especially in the United States," said Rupert Stadler, Chairman of the Board of Management of AUDI AG. "We've started the year off well and we're targeting more than 1.2 million deliveries to customers for the total year," Stadler said. 


For Audi, 2010 was the best year for sales in the Company's history. Deliveries of Audi brand automobiles on worldwide markets rose last year by 15 percent to 1,092,411. Revenue rose during the 2010 financial year by a disproportionately high rate to EUR35,441 million (29,840 million)* - an increase of 18.8 percent. 
The Audi Group significantly increased its operating profit by 108.2 percent to EUR3,340 million (1,604 million). The profit before tax, at EUR3,634 million (1,928 million) was 88.5 percent above that of the previous year. Profit after tax rose by 95.2 percent to EUR2,630 million (1,347 million). 
The Company increased its operating return on sales to 9.4 percent (5.4 percent). Return on investment also reached a new peak, at 24.7 percent (11.5 percent). 
Net liquidity increased by 25.5 percent to EUR13,383 million (10,665 million). 
Record results for deliveries in more than 40 markets 
In the past year Audi handed over 1,092,411 (949,729) automobiles to its customers worldwide. Sales thus rose 15.0 percent compared with the previous year. Deliveries in the Asia-Pacific sales region developed favorably. The brand with the four rings also grew in Western Europe (including Germany), and especially in the United States. 
New hires total 1,200; largest investment program in company history 
The Audi Group plans to invest more than EUR11 billion between 2011 and 2015 - with about EUR9.5 billion going to the development of new products and to hybrid and electromobility. More than EUR5 billion will be invested in the Ingolstadt and Neckarsulm sites in Germany. 
Audi plans to continue the enlargement of its model range in the coming years at an unslowed pace. "Our attention remains particularly focused on the subject of sustainability. At Audi we believe this includes not only increasing the efficiency of our cars and the development of electric and hybrid models, but also the sustainable handling of resources," Stadler said. The brand with the four rings already offers 54 model and engine variants with CO2 emissions below 140 g/km (225.31 g/mile) - of which 17 emit less than 120 g/km (193.12 g/mile). 
Highest employee profit-sharing payment in company history 
AUDI AG has shared the success of the 2010 fiscal year with its employees: each of the roughly 42,500 pay-scale employees at the German sites received a profit-sharing payment averaging EUR6,513. This corresponds to roughly one and a half times the average monthly wage and is the highest payment since this profit-sharing plan came into existence. 
Outlook for 2011: more than 1.2 million deliveries to customers; operating return on sales at the high level of the previous year 
"The signs for 2011 are good, after a year which ended better than we expected back in January 2010. We expect continued growth in the overall economy this year, even if there is a slight weakening in comparison with the previous year," Stadler said. "Nonetheless, we have to remain alert, since the unpredictability of the financial and raw materials markets still carry a risk." 
Audi has started off 2011 successfully, selling about 186,850 automobiles worldwide between January and February of this year - 21.6 percent more than during the same period of the previous year. The European markets have been exhibiting strong momentum; sales here grew by 17.5 percent to around 106,600 units (90,686). In the German domestic market alone, Audi delivered 32,290 cars to customers in the first two months of the year and thereby achieved a significant increase of 18.3 percent compared with the previous year (27,304). 
Between January and February, 41,122 Chinese customers (31,906) chose Audi - 28.9 percent more than during the same period in 2010. The brand also continued to grow sharply in the United States. Deliveries here climbed by 22.3 percent to 15,565 (12,726) compared with the same period last year. 
"We want to deliver more than 1.2 million Audi cars to customers worldwide during the current year, and thus build upon the success of the record year in 2010 without interruption," Stadler emphasized. "We are growing sustainably and are targeting an operating return on sales at the same high level as the previous year," Strotbek added. 

- Cross reference: Picture is available via epa european pressphoto
      agency and can be downloaded free of charge at:
      http://www.presseportal.de/pm/6730/audi_ag/?keygroup=bild -
    - Cross reference: The long version of this press release can be
      downloaded free of charge at:
      http://www.presseportal.de/pm/6730/audi_ag/?keygroup=dokument -


    - A total of 1,092,411 Audi brand automobiles delivered during the 2010
      fiscal year; EUR35.4 billion in revenue, EUR3.34 billion operating 
      profit; operating return on sales of 9.4 percent
    - Audi CEO Rupert Stadler: "Audi is growing profitably and across the
      board."
    - Cash flow from operating activities significantly higher than previous
      year at EUR5,797 million (4,119 million)
    - Highest employee profit-sharing payment in history: average of EUR6,513
      for each pay-scale employee
    - Outlook for 2011: more than 1.2 million deliveries of Audi brand
      automobiles planned
    - Audi CFO Axel Strotbek: "We want to grow sustainably and are targeting
      an operating return on sales at the same high level as the previous 
      year."
source: AUDI CG


Monday, 7 March 2011

SAJJAD PURVEZ - IBM Cuts 600 Workers; Corporate Citizenship Questioned (SP MEDIA)


Press Release - Mar 7th 2011

SAJJAD PURVEZ - IBM Cuts 600 Workers; Corporate Citizenship Questioned (SP MEDIA)


SAJJAD PURVEZ - IBM NEWS

The relationship between IBM and its employees returned to below freezing temperatures last week as Big Blue handed out pink slips to more than 600 workers, according to the Alliance@IBM, a union group that represents many IBM employees but is not recognized by IBM when it comes to negotiations.
This latest round of terminations are spread among IBM facilities in Rochester, Minnesota; Research Triangle Park and Raleigh, North Carolina; Poughkeepsie and East Fishkill, New York; Lexington, Kentucky; and San Ramon, California. IBM does not provide information that ties the number of employees terminated with specific locations.

Company policy at IBM prohibits any and all official discussions of firings, layoffs, and reallocation of human resources, so no confirmation or denial of the number of terminations or their locations has been uttered by an IBM spokesperson or communicated via press release. In the past, IBM sources have indicated its global business model calls for job balancing, which typically involves a loss of jobs in the United States, while new hires are made in emerging markets such as India and China. According to IBM, the company provides opportunities for employees who face termination to transfer to other U.S.-based facilities.

“IBM plays a game with people,” claims Lee Conrad, national coordinator at Alliance@IBM. They say employees have 30 days to find another job within the company. Very few people–maybe 10 percent–find another job. IBM’s goal is to get people out of the company. Once somebody is marked as a ‘resource action person’ they can’t find another job. The doors are closed.”

In its report on the job losses, the Poughkeepsie Journal noted the total number of jobs being eliminated was 612. Reporter Craig Wolf said the job count was established by viewing federally mandated documents IBM presented to the employees who were let go. His article stated most of the lost jobs were in the United States, but some Canadian jobs were eliminated as well.

Since the Journal article was published on March 1, the number of IBM job reductions has risen to approximately 650, according to Conrad. He gets the number from the Resource Action Package that terminated IBM employees receive, which lists the ages, titles, and number of people terminated. The cuts began February 28 in the Global Business Services division. Specific departments within that division are listed on the Alliance@IBM Web site.

The Alliance@IBM has “a few hundred” dues-paying members, but about 4,500 supporters according to Conrad. IBM has about 400,000 employees worldwide, with somewhere around 100,000 in the United States. Workers in Germany are covered by very strong unions, and other European countries similarly are covered by relatively strong unions. So the process of firing employees is more involved and can be more expensive, too.

IBM’s recent history of firing workers while this country is struggling through the worst job crisis in many generations (see Related Stories at the conclusion of this article) has drawn fire from workers who believe the cuts are unfair and often based on age discrimination rather than merit. And communities with long-term IBM relationships are angry as well as the ripple effects of job losses strain municipal services as well as other businesses in the communities.

On its corporate citizenship page, IBM says its primary focus of its activities is on developing initiatives “to address specific societal issues, such as the environment, community economic development, education, health, literacy, language and culture. We employ IBM’s most valuable resources, our technology and talent, in order to create innovative programs in these areas to assist communities around the world.”

At a time when unemployment is a huge issue in this country, some voices are saying a little more community economic development on U.S. soil would be the correct form of corporate citizenship.

To that point, IBM has its new global services delivery facility in Dubuque, Iowa, as a red, white, and blue example of corporate responsibility. Two years ago, Dubuque’s courtship of IBM sparked a cooperative project that has resulted in 900 new jobs and the promise that more will be added. In its discussions with city officials, IBM originally said this facility would employ 1,400 by the end of 2010. The state of Iowa and the city of Dubuque gave IBM a $52 million incentive package to put the wheels of IBM corporate citizenship in motion. For more details on this, see the recent article in the Dubuque Telegraph Herald that chronicles the accomplishments to date and the future plans for IBM in that town.

There is also a new global services delivery center in Columbia, Missouri. Wages paid at Dubuque and Columbia are about $20,000 less per year than what is paid at a comparable facility in Fishkill.

Those on the short end of IBM’s human resources stick have several things they’d like to point out.

One is that employees losing jobs are predominantly workers over the age of 50 with much higher salaries and benefit packages that are much richer than those being offered to the younger hires. If this is strictly a cost-cutting measure, those out-of-luck employees say discounting the contributions of long-time workers and disrupting the economic well-being of communities is an odd way to demonstrate corporate citizenship or loyalty to an employee who provided a valuable service to the corporation and did a job that was expected of him or her for many years.

IBM’s point of view, as related by employees who have lost jobs, is that these decisions are made because people have skills that are either out of date or no longer in demand as IBM moves toward the future. You can find bulletin board postings from recently unemployed workers at the Alliance@IBM site.

We all know people who haven’t kept their skills current some by their own choice and others because the company did not support their education and training.

Those believing they are being cast off because cheaper labor can be found elsewhere are angry about the lavish bonuses being paid at the executive level. When a company slices mid-level jobs while rewarding managers with unprecedented financial gains, it’s a bitter pill to swallow. Add to that the financial reports for IBM highlighting the company’s billion dollar profits, and you get a deteriorating employer-employee relationship that is noticed as much by those who remain on the payroll as those who have had the rug pulled out from under them.

“What we are finding here,” Conrad believes, “is that IBM is shedding jobs and moving the work offshore. There needs to be a full disclosure of that.”

IBM likes to sell its hardware, software, and services by touting the productivity gains it can provide. Maybe it should take a closer look at how its human resources policies can have a significant effect in undermining productivity in the workplace.


Contact Information
SAJJAD PURVEZ
SP MEDIA
269 yelhanka
Bangalore, Karnataka 560049
Phone: 9320156793
www.sajjadpurvez.tk

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Monday, 28 February 2011

SAJJAD PURVEZ - Reduction of surcharge to leave more funds with corporate


SAJJAD PURVEZ - Reduction of surcharge to leave more funds with corporate

Published on Mon, Feb 28, 2011 at 18:29   |  Updated at Mon, Feb 28, 2011 at 19:56   |  Source : Moneycontrol.com

SP MEDIA 
Budget reactions from Sanjay Bhatia – MD, Hindustan Tin Works.
“It is indeed heartening to note that the projected GDP growth for 2011-12 would be between 8.75% & 9.2%. This means current growth trends will not only continue but will also accelerate. This would also give a demand push for FMCG sector as well as Packaging sector.
On Direct Taxes, reduction of surcharge from 7.5% to 5% is indeed welcome as it would leave more funds with the corporate sector for re-investment.
Some of the measures in Indirect Taxes like announcement of firm steps in bringing GST e.g constitutional amendment, draft model legislation, strengthening IT infrastructure etc., retention of peak rate of custom duty at 10% are steps in the right direction. However, increase in the Indirect tax to the extent of about Rs. 11,000 cr would be inflationary and MAT on the units in SEZ would affect their viability adversely.
The Finance Minister has also not announced any firm date for bringing about GST.”