Wednesday, May 27, 2015

GRATITUDE: Letters from a Grandfather to his Future Generations. Chapter 21

COPYRIGHT RESERVED FOR TEXT N PIX.

Chapter 21


Hello Folks…

Breaking News:
Our younger grandson, Harkirat Singh has graduated from Upper Canada College and got admission to Queens University in Kingston. Congratulations Hark! Well done, son.     

So we were talking of the Swedish connection.  There was another Swedish connection that I had a lot to do with: Electrolux. Facit Asia was partly owned by Facit AB of Sweden. Facit  got bought up by Electrolux, who then came in as partners of Forbes in Facit Asia. E’lux were keen to introduce their Home-care products into the Indian market.

The business environment of the 1980s would appear very strange to most of you who have cut your teeth on the ‘Reforms’ in the Indian Economy in the last two decades. In the days of Socialism, to be Large was a sin. To be owned by ‘foreigners’ was a bigger sin. If a Company had managed to be large, or had managed to be partly owned by foreigners, then forget further growth or diversification. Forbes Group, by virtue of ownership by the Tata Group bore the full brunt of the restrictive laws. Some of the Group Companies were partly owned by foreign entities and they bore the full brunt of the FERA laws. Thus growth n diversification was restricted in most of the Companies of the Group.

It was a testimony to the Group Management’s vigour that within these restrictions, they continued to grow and modernize. When I arrived, FFC were putting up new Engineering factory n a Ceramic Factory in Aurangabad. Gokak Mills was investing in Modernization of Spinning machines and adding modern weaving machines. Facit Asia had just built a modern Typewriter assembly plant. But this was not enough for the vision of the Group Management.  Therefore, to supplement these in-house efforts, the group took the route of associating itself with niche small-scale units, selling their products or getting contract manufacture thru them. In later years, when the laws permitted, some of these were converted into subsidiaries.

Khandwala spied an opportunity in the defunct Samuel Osborne India Ltd. This was a sick unit partly owned by a foreign company. The Group bought out the local owners, assumed their outstanding debt and arranged for Electrolux to buy out the foreign company. Viola, Electrolux had a pipeline into the Indian market. The company was renamed Eureka Forbes Ltd and was positioned to market E’lux Vacuum Cleaners in India. Facit Asia set up a factory in the ‘backward’ area of Hosur to manufacture these Vacuum Cleaners.

Electrolux had also bought a water purifier designed by a maverick ‘scientist’, who later on proved to be a fake artist. This water purifier, Aquaguard was positioned as another product to be sold thru EFL. A small scale unit in Hyderabad was found, willing to manufacture these. They needed management skills. Therefore we located Mr. SS Rao,  an industrial engineer who had left the Engineering Division to be hired by the Aquaguard small scale unit. In course of time he moved to head the Vacuum Cleaner factory and in good time Facit Asia itself after Gosta Rundberg Retired. 

Now E’Lux are a great Company and a pioneer in the field of ‘direct selling’ i.e. door to door selling. They brought out in Nemie Josiah to introduce the art of direct selling. Nemie was a true missionary out of South Africa. He did a good job of teaching the art to the Indian youngsters.

In view of the fact that EFL was going to be a manpower heavy company, Khandwala was good enough to nominate me to its board of directors. A tenet of direct selling was payment-by-results. They believed that most of the compensation of the Salesman should come from Commission. This in a country where salesmen were used to a fixed salary and a bit of gravy by way of sales commission. The new system took some pain n time to take root. Since there was no full time management in EFL, I had a lot to do with that Company…so much so that at one board meeting, Chairman said: I am managing EFL with my Personnel Manager.

Later on Akhil Marfatia was recruited as Joint President. Of course Nemie did not leave much elbow room for him. Akhil was advised to learn the direct selling model best he could. Akhil had come from Johnson n Johnson. He had just lost his wife to cancer. After joining, EFL, he married Bharti.

In view of my preoccupation with the Overseas Operations, and then Eureka Forbes, Management thought it fit to add to the HO Team at a senior level. I introduced DR SS Rajadhyaksha and he was duly recruited to take care of the Industrial Relations functions. We met all his conditions: 5 day week, office in town, GM designation. We went further and vacated our apartment in his favour. This enabled him to marry Nirmala and settle down. It was God’s way of squaring Kaka’s account with Raja. It turned out to be a blessing to all parties. He was a veteran IR man and therefore I was able to download most of that function to him.  He took over the complete Personnel function from me, after I moved to Goodlass and retired as a full board member. We are still very much in touch with each other.


With Raja’s joining, I moved to the NE corner office on the newly renovated 3rd floor. Jay n Madhu also had their offices there.  Whilst on the ground floor, Mr. CT Ghadhiali and other accountants held the adjoining office. There were times when sparks flew with them.  Compliance, Accounts n Audit don’t always run parallel to employee relations point of view.  Therefore respect for our respective roles, and personal friendship prevailed. We had also moved into Campbell House, where Mr. CT Ghadhiali and another colleague resided. So we were neighbours at home n at office.  Unfortunately, soon after we repatriated from Viet Nam, Mr Ghadhiali passed away. They have two sons: Pankaj n Shailesh.

There was a great deal of camaraderie among the seniors in Forbes Group. After lunch we would gather in the Accountants bull pen. In course of time, Mr. Madan got a small dining room made on one of the rear landings. We seniors would eat our tifins there and indulge in light hearted conversations. On Fridays, there would be roasted chana n sengdana to go around. That was some institution.

                       …..oooooOOOOOooooo…..



Photo Gallery follows.
Pls pardon any caption errors.
But do please point out the errors

 
Harkirat n Rajbir with a special 'friend'

Left Akhil Marfatia then President Eureka Forbes.
Right Suresh Goklaney his Deputy at that time
at a Award Ceremony - a common feature in EFL

Another Award Ceremony in EFL
Suresh at extreme Left n Akhil at extreme Right

SS Rao Managing Director of Facit in later years
Facit Manufactured products sold by FFC n EFL as well as others. 

Rao with his Chairman DJ Madan


C.T. Ghadhiali and his wife

Pankaj n Harsha

Shailesh n Rupa
Sham Rajadhyaksha n Nirmala


Mr. D.J.Madan






Saturday, May 23, 2015

OLD WISDOM; 20TH CENTURY MANAGEMENT PRACTICES. - REFRESHING



June 7, 2013


Old Wisdom

20th CENTURY MANAGEMENT PRACTICES
Serial 1l

In the same Esso Refinery of the 1960s, I found a unique but simple motivational practice, which I did not encounter in the rest of my career…


Each time a senior went on leave or was to be out on assignment, a selected junior was appointed to his Position, as ‘Officiating”.  The Refinery Manager would issue a circular:

Mr. Junior will be officiating in the place of  Mr. Senior during the latter’s annual vacation from…. to …….. During this period Mr. Junior is authorized to sign all papers normally signed by Mr. Senior.

And if the Mr. Junior happened to be a bargainable employee officiating in the place of a Management person, he was entitled to an Officiating Allowance and was expected to eat in the Management Cafeteria.

I had personally found this practice a great motivational n training tool. The officiating person got to rub shoulders with those at a higher level than him. He got to understand his boss’s’ job n responsibilities more clearly. This was a great way of preparing successors. Such that when a senior left the organization, there was a successor ready willing n able to take his place.

I  had had a couple of ‘officiating’ stints, before I was promoted to Management staff. Thereafter on several occasions, it was a pleasure to officiate in the place of my
department head, the Employee Relations Manager.





May 31, 2013


Early release due to topicality…

Old Wisdom
20th CENTURY MANAGEMENT PRACTICES…
SERIAL  10

Continuing from the previous post about intra office affairs:

In the old times, in case of an affair, adage used to be:

DO THE HONOURABLE THING…….MARRY HER..

 Unfortunately, in affairs between married people, it involves a divorce, which hurts the most innocent parties to the affair: the spouses, and children if any.

In one of the companies that I worked with, an affair developed between a man n a woman, boss n subordinate, who were already married at that time. In course of time, the man did the HONOURABLE THING:  they got married. Of course both of them got divorced (or separated) from their respective spouses.

I did not n don’t know the quality of their earlier marriage, and cant vouch whether bad marriages drove them to the affair.

Yet the fact remains that their spouses, and in one case child(ren?) were the ones who had to suffer all the turmoil.
……………………………

On a separate note: I had posted about the potential for exploitation by the woman of the man, when the relationship sours n what was consensual, is converted into  ‘harassment’ or worse ‘rape”. The Delhi High Court has taken the same view n vindicated my posts, which all my friends on FB or outside had ‘condemned with silence:

I stand vindicated by the Delhi High Court:
I quote Sunday Times of 26 May, front page:

WOMEN MISUSING RAPE LAWS FOR VENGEANCE; HC

May 25:
New Delhi: The Delhi High Court has slammed the misuse of rape laws, saying women were using them as a 'weapon for vengeance n vendetta' to extort money from men or force them into marriage.
Observing that many women, after consensual sex, accuse their boyfriends of rape if the relationship ends, the HC said, forcing men to get married by slapping the charge not only makes a 'mockery' of marriage but also inflates the number of rape cases.

'It defeats the very purpose of the (penal) provisions (for rape), Justice Kailash Ghambir said.... full report on p 11.

…………………………………

In conclusion I repeat my advice to men contemplating such relationships: Get  a pre-nup like contract signed waving her rights to any claims of such nature… before you pour the first drink….



…………………………………………………

May 24, 2013

Old Wisdom
20th CENTURY MANAGEMENT PRACTICES….
Serial 9

STOP PRESS…

The pre-prepared serial must yield its turn to this topical subject of sexual harassment in work place.

The old adage had a lot of wisdom to it:

DON’T MESS UP YOUR OWN FRONT YARD

Indian companies have handled such situations in varied manner.

Earlier in my career at the Refinery, I had witnessed two office romances, both of which had resulted in marriage. The Management had not taken exception to this. Nor did they ask one of the partners to leave. In fact in one case, the wife was employed under the husband. Incidentally the later belonged to an illustrious Mumbai family who have a road named after a forebear.

In later years, I learnt of a company where a Director had married a secretary. Also one of the married Directors had had an affair with another secretary. The affair took a huge toll of her health…after a lot of humming n hawing, the Director asked the HR head to counsel her to leave saying …..”I think I can face it now”. She left the company without any fuss. Tragically it was learnt later that she had committed suicide. Perhaps it was becoz of this guilty history, that the directors had looked the other way upon one or two other office romances.

In my last job, two employees in the same department fell in love and planned to get married.  After a lot of soul searching, the Management asked the couple that one of them should resign. The company would have preferred to retain the man, but it was he who resigned… presumably becoz he had a more ready market for his skill set. 

(Elsewhere I have written couple of post, seeing the problem from Men's angle...referring to the 'exploitative' potential in such regulations. Unlike my other posts, these have drawn no response from my friends.  Perhaps I am a MCP....Ayn Rand says: the smallest minority is the INDIVIDUAL... so I am a minority of one....)

……………………………..

May 17 2013


Old Wisdom:
20th CENTURY MANAGEMENT PRACTICES
Serial 8

In the same Esso Refinery, that I mentioned last week, I learnt another lesson:

In your success, remember the role played by the lowest of the low in the organization.

Early in 1967, the Refinery concluded a landmark Settlement with the trade union and all had assembled for the final session n signing ceremony.  The secretary to the MD was typing the text on a ‘mat’ which would then be run for making copies: that was the step up in technology compared to cutting a ‘stencil’…. Any old timers remember that?

Finally, the Top officials of the Refinery and the Union signed the Settlement.

The ‘mats’ were then handed over to Mr. Bhoi the ‘office boy’ in charge of the duplicating room.

After the signing ceremony, there were handshakes all around. From a corner, Mr. Bhoi spoke out loud n clear:
But for me the Settlement could NOT have been signed. Thank heavens that MD’s secretary did NOT make the same claim.

But they were right: We the Managers might have negotiated and arrived at the Settlement, but it was the ‘little fellows’ at the bottom of the pyramid who had made it “materialize’.

Even more important, it will be them n their hundreds of colleagues who will need to do their bit to ‘implement’ the Settlement.  



 

 

May 10, 2013


Old Wisdom:
20th CENTURY MANAGEMENT PRCTICES

Serial 7

Autobiographical Note:

I spent first 15 years of my Bombay based career with ESSO Refinery n HO i.e. 1955-71.  Those 15 years taught me the basics of Management: not only Employee Relations, which was my stream but also General Management. The later, by observing n interacting with some great Managers at work. The Esso culture supported learning on the job n classroom; open communications; upward Mobility. In retrospect, most of what I learnt in those years stood me in good stead in the remainder of the 20th Century.

Serial 6 which preceded this one was based on my being part of the innovative exercise of locating Management Potential among lower ranks. Two of my good friends n colleagues in the Refinery were among dozens who got promoted as a result.

The Mechanical Supdt  of the same Refinery taught me a valuable lesson:

Old Wisdom: Serial 7

Any change should contain an element of ‘improvement’ for the largest number involved…  Remember the slogan: greater good of the greatest number.

The refinery had two eating places: A Cafeteria for 100 odd Management Staff and a Canteen for 700  ‘Bargainable” employees i.e. operators, mechanics, technicians, clerical staff.  Management staff paid a rupee for a western style meal and the ‘employees’ paid 4 annas for ‘well balanced’ thali and both the meals were talk of the town.

In the early 60’s, the ‘employees’ representatives on the rather vibrant Works Committee demanded that employees should also be allowed to eat at the Cafeteria on payment of one Rupee.  The suggestion was turned down. Then two of the employee reps  tried to force the issue but were firmly turned away and disciplined for their efforts.

Nonetheless, the Management Team was quite concerned about the issue and were pondering a solution:

 i.e. to have one Common eating place for all.

The Mechanical Supdt undertook the task of evaluating the feasibility of having a common eating place and drawing up a design for the new eating place. He came up with a concept that resembled more the Cafeteria than the Canteen. It had  air conditioned dining hall with proper tables, chairs; rather than the fan cooled Canteen with its long stainless steel tables and connected steel seats.

I, as the Employee Relations man in charge of the both the eating places, questioned him on the reason for such a design and the cost n feasibility of accommodating a much larger number of people.

His answer in substance was: In this changed Common facility the great majority of the users should experience an ‘improvement’ in their condition.  Otherwise it will be a sham. He went on to say that:

to be able to implement any change successfully, the great majority should be the gainers.

Not an easy Lesson to implement in all situations, but he showed the path for implementing “Change”…

Ps: In later years I came across common eating places in Maruti Udyog’s Gurgaon plant and some other engineering companies in Chennai.  They all resembled more the Canteen than the Cafeteria. To cap it all, in the early 70s when I joined an Engineering Company, they had three eating places:  for the workers/clerks, Junior Officers and Senior Officers.




 

 

 

May3, 2013


Old Wisdom...
20th CENTURY MANAGEMENT PRACTICES

Serial 6



Put two Problems together to make a solution.(cont’d)

It is Case Study of a MNC Oil company in the 1960s.

By then writing was on the wall for the MNC OIL companies that all growth will go to the Public Sector Oil Companies. Therefore the MNCs had already put in place an embargo on hiring. With progressive computerization, n consolidation of staff functions for the Refineries n the Marketing organizations, there were surpluses of human resources in certain areas.
At the same time there were ‘vacancies’ for different categories of Supervisory and Management Staff.

Two Problems:

1. Surplus human resources of clerical and operational employees especially in the Refineries.

2. Unfilled vacancies for different categories of management staff esp in the Marketing Organization.

One Solution:

Internal Recruitment drive using aptitude tests to select from among clerical and operating staff, Management Trainees to be trained as future Managers.

End Result:

The surpluses were reduced; vacancies were filled and selected Trainees got upward mobility.  Many Clerks n Operators became Depot Superintendents, Aviation Refueling Supdts.  Some  others became Draftsmen.  This opportunity  may not have come their way, in their old situations.

 

 

April 26, 2013



Old Wisdom...
20th CENTURY MANAGEMENT PRACTICES

Serial 5

Put two Problems together to make a solution.

It is Case Study of a direct sales consumer product company.

ConPro Ltd was a Joint Venture of an Indian Company n an MNC. To begin with, the Company was a single product venture. The MNC had deputed an expat to launch the product n to train the direct-sales workforce. He was doing a great job of it too. In course of time the company hired a Chief Executive so that he could replace the expat when the time came. Meanwhile the company introduced a second product, which was of a pioneering nature.

Two problems:

1. The Expat Sales Trainer was not yielding any space to the President. Nor was he paying any attention to the 2nd Product.

2. The President was feeling frustrated not having any thing substantial to do.

One Solution:

The President was asked to take over the Second Product, hire and train a separate sales force and build a market for it.

Both of them were happy. The expat was happy to get rid of the Second Product and the President was happy to have something useful to do. It was a great learning experience for him and he did a good job of it…

End result:

In course of time, the Expat left, the President got charge of both the products… and by then he was ‘ready n able’ to run both the products…

(Next week: another case study along the same lines)



April 16, 2013

Old Wisdom
20TH CENTURY MANAGEMENT WISDOM
Serial 4

It is better for the Boss not to sit on judgement when two senior colleagues are in conflict. Better to get another unconnected senior person to hear out the two, share his views with them and then report to the Boss in their presence.

Our Group Chairman did that when the MD of a Group Company  and I as Group HR Head came into conflict. The issue was that in the course of IR negotiations, the MD had exceeded the Mandate which his company had proposed n got approved by Group Chairman. (and the negotiations had not yet succeeded).  The c/man got the dy.chairman of that company into the act... the latter talked to both of us n other actors in the drama...and reported to the Chairman his findings..in our presence.....which confirmed that the mandate had been exceeded.. but also that my rep was not sufficiently respectful of the MD......

What is more significant was that:
as a result of this excercize itself, the conflict had been  dissipated.
If the C/man himself had handled it, he may have created a Line vs Staff situation which would not have helped either party...
This way the MD n I remained good friends for the rest of his tenure nay life. RIP my good friend...

……………………………………………………………….

APRIL 12, 2013


Old Wisdom..

20th CENTURY MANAGEMENT PRACTICES

Serial 3



Red Circle the Boss's pet phobia. dont break your head against the wall...... and work on other areas, get results and have satisfaction of work well done...



A friend was a director in a closely held public ltd co. His parent stream was Industrial Relations... However the Chairman had a long history of handling IR in this Company... and had his own baggage of 'experience'. Therefore my friend just could not make a head way. Fortunately IR HR were only a part of his portfolio... 

So he concentrated on Manufacturing... The company was constantly capacity constrained.. yet being closely held foreign owned company had few options to build new plants etc. My friend found ways to boost production capacity: he vastly expanded contract manufacture of low value products, invested in de bottlenecking and re laying out existing plants to get more out of them et al. Of course in course of time Indian laws changed... and that is another story...
.............................................


April 6, 2013
Old Wisdom


20th CENTURY MANAGEMENT PRACTICES 
      SERIAL 2.
       
       

Boss may not always be right….

DON’T resign each time you have a difference of opinion with the boss on a business issue...Your career is more important than some temporary ego trips...Remember the Boss may not always be right.. but he is always the boss
       
      .

....................................
       
      

Apr 4, 2013


Old Wisdome
20th CENTURY MANAGEMENT PRACTICES
Serial 1. 


Friends: here is the first piece as a trailer... Please read n comment to set the tone for those to follow:

Authority is a river of red hot lawa...
you can pick up as much as you want....
beware of burnt fingers though...

A colleague went above his mandate in an IR situation. He came n reported that the problem had been solved



APR 3, 2013


FRIENDS ON FACEBOOK:
HEADSUP;

 Old Wisdom any one? I retired finally in 2003... ten years ago...Have not held a job since....So what I represent is 20TH CENTURY Management Practices... They could not all have become obsolete...like the qwerty keyboard has survived... I have thumped it for almost 60 years..from Remington, Facit to Mac n I Mac I want to SHARE these concepts I shall post one-at-a-time a concept that worked for me.... I am giving you a chance to say Nay or Aye... louder voice shall have it.. Have your Say now or forever hold your peace