The Hothouse Effect: (Managing Creativity)

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Recent/Innovative Trends in HRM

INTRODUCTION
The primary objective of this paper is to present a conceptual framework for strategic
management of human resources as a response to the growing interaction of globalization and
business performance. The topic is divided into the following

THE HOTHOUSE EFFECT


(Managing Creativity )

Moonlighting is dual or multiple job holding, wherein the maximum time he/she spends on a
particular job will be the primary job. It is so called bcoz, most of this secondary job undertaking
generally happens at night. US is one country where the phenomenon of moonlighting is
pervasive. Due to the incidence of Offshoring, the percentage of workforce holding multiple jobs
went up from 6% in 2002 to 9% in 2007. Pressure to keep a home from foreclosure puts a
massive burden on a person. Under this kind of financial pressure, people often seek second jobs
for additional income. Germany, Sweden have shown similar trends as US.European commission
said that moonlighting is worth 15% of the GDP of EUROPE…..problem is most of it is
undeclared…so they cant be taxed. They are working on a framework to deal with the problem.
If they come up with rules and regulations, then compliance will necessitate increased
involvement of hr.

(http://en.wikipedia.org/wiki/Business_process_outsourcing_in_India )

"Outsourcing" vs. "Offshoring"

The terms outsourcing and offshoring are not interchangeable. To outsource is to transfer a
business function from one business to another business, often within the United States. For
example, when Procter & Gamble contracts to have Hewlett Packard manage its information
technology, that function has been outsourced. Offshoring, on the other hand, is the practice
where business functions are transferred to locations and workers outside the country who may
be independent contractors or hired by the company as employees. The practice has grown
enormously in the past decade, as instant and cheap communication, paired with the rise of
millions of newly educated workers in low-wage nations, have made international borders easier
to cross, if not invisible.

Offshoring/outsourcing has exacerbated the problems…especially in Europe, where the decade-


long high level of unemployment has led governments to think about “time-sharing policies.”
Time-sharing policies are aimed at stimulating employment through a reorganization of working
time. Usually, employers have the option to allocate their demand for labor between number of
workers and number of hours per worker. By imposing stricter legal weekly hours or a higher
overtime premium, a time-sharing policy gives the employer the incentive to opt for more
workers with fewer hours per capita.

Reducing the legal

Working week leads some workers to a situation of underemployment. Plus the worry about the
future leads them to moonlighting.

The bogey of Business Process Outsourcing that came fast on the heels of Business Process Re-
engineering seems to have caught the fascination of many a HR Chief.

This was a global phenomenon - Indian scene:

1) It first began with hiring persons equipped to fill out various returns required under
Indian labour legislation. Most of these persons were either moonlighting from
government offices where they were employed full time or had been working as such
prior to their retirement and knew how to pull the right ropes.
2) The came the period when trainers were hired to impart special skills and behaviours that
HR departments felt that their organisation's employees needed. That scientific diagnosis
often did not precede such activities is well known.

3) Then came the era of hiring the services of placement consultants to pick and choose
manpower and thereby cut down recruitment costs. At this point something nefarious
happened. The trainers tied up (informally) with the recruiting consultants. The level of
attrition rose especially in the software industries sector and together the financial
fortunes of the trainer and the recruitment consultant flourished. Just about the same time
(in the 1990s) companies went in for Business Process Re-engineering. The task was
invariably assigned to managerial greenhorns and not to the experienced people
managers. The result was that organisational structures were flattened and accountability
was emphasised but delegation of authority did not follow in most companies. Just when
top management of these companies were done with BPR , the new mantra of BPO shot
into prominence.

4) For instance, in the 1990s Jack Welch was influenced by K.P. Singh, (A Delhi based
realtor) to look at Gurgaon in the NCR region as a base for back office operations.
Pramod Bhasin, the India head of G.E. hired Raman Roy and several of his management
from American Express to start this enterprise called GECIS (GE Capital International
Services). Raman for the first time tried out voice operations out of India, the India
operations also was the Beta site for GE Six sigma enterprise.

1st PROS: - Some jobs in companies are just that — jobs. It’s hard to turn positions such as data
entry clerk and receptionist into glamorous careers. Allowing employees to moonlight gives
them opportunities to find challenges or fulfillment outside The advantage to your business: It
may reduce turnover in areas where responsibilities are tedious or monotonous.

2nd Pros: - For some employees, their day occupations are simply income sources. They may
work other jobs to pursue their true passions and position themselves in their preferred fields. In
the meantime, they work full-time in less desirable roles for other benefits, such as health
insurance or flexible work schedules. These creative personalities can balance your organization,
providing more flair in lackluster areas. They may be the workers you call on to plan
teambuilding activities or organize the holiday party. Keep in mind that moonlighters maybe
happy working seemingly routine occupations or have no desire to move up the corporate ladder.

3rd PROS: For other employees, they are working second jobs primarily for additional income, so
they may be less likely to seek raises from you. If you can’t afford to pay your staff more,
allowing them to moonlight may help you retain them

The cons

1) Likely the biggest drawback to allowing moonlighting in your company is the risk of losing
your proprietary and confidential information to competitors who employ some of your workers.
After all, many of these details can be shared in a mouse click. To protect top-secret details, you
can take measures such as requiring workers to sign non-compete agreements — and you may
even be able to ban them from moonlighting with competitors.

2) another potential problem is that working two positions may lead to exhaustion and burnout;
warning signals include tardiness, increasing use of sick time and fatigue.

3) workers may commit minor infractions, such as using your company’s facsimile machines
and copiers, or serious offenses, such as starting their second occupations on company time
before completing their first ones. Immediately address workers who exhibit these behaviors or
you may have greater problems later.

Policy: People are just now waking up to this phenomenon of “Moonlighting” . Most companies
don’t have any written policy in place. Government regulations if existing are considered the
policies. Lots of work on this is expected with a huge involvement potential for HR

Points of focus

1) virtual workforce, Employees spread across the globe 2) emails

1) With the advancement of technology (i.e. ability to work remote), there are plenty of
downsides that come with it. People will start using e-mails from very basic things to everything.
Right now, one of the biggest issues corporations / employees face is the managing e-mails
(volume and the non-personalized approach it brings).
2) In the absence of a common physical work place, it would be essential for HR to come up
with creative ways on how to instill a team feeling & trust with virtual team that does not see
each other often. Particularly, if the dependence on e-mails and telephones increase, this non-
personal approach to working, will increase issues between people. There are several occasions
when we receive e-mails that we totally misunderstand since e-mails do not carry emotion, tone
etc. that the sender would have liked to send.

3) other things that management guru's promote are things like "management by walking,
talking". HR would need to come up with creative approaches to find substitutes for the
value such tools currently bring to the workplace today.

 An old adage, but it is still a good one. You should be out of your office on a regular basis.
“Walking the floor and talking to people”. Get a feeling for what is going on. Get out of your
chair and walk around. MBWAT (Management by walking and talking) is about getting
managers out of their lofty, ivory tower offices and spending time with “the troops.” In
MBWAT, managers literally make their way around to their staff and spend time talking with
them, learning, guiding, building relationships, and motivating. MBWAT is about being in
regular touch with your people; having straight-talking and trusting dialogue. These are
impromptu conversations and informal “coffee talks,” rather than planned, scheduled, agenda-
driven meetings. It is a way to understand what employees are facing and experiencing and as
the same time to build purpose, team, and keep things “on track”.

No email days : To deal with the non personal approach to working as also to stop introverts
from withdrawing further and further into their cocoon, there are companies that are coming up
with days called "No e-mail days“ The trend is seen as a backlash against a corporate
"crackberry" culture of impersonal communications. Last August, 400 Radio Shack employees
received their pink slips electronically. This needs to change.

Issue with emails: It's how corporate America communicates.

Scheduling a meeting? Send an e-mail. Need that report right away? Send an e-mail. Are there
serious issues in the department? Nothing a chain of e-mails can't solve. The volume of e-mails
has exploded in recent years with over 170 billion now being sent daily around the globe,
according to technology market researcher Radacati Group. That's two million every second.

US CELLULAR:

"Some [e-mails] are very valuable, and some of them are just an excuse not to communicate or to
protect myself from something that's going on," said Jay Ellison, executive vice president at
Chicago-based U.S. Cellular. Two and a half years ago, Ellison was receiving an average of 200
e-mails a day, many of which went unopened. After getting cyber-indigestion, he sent out a
memo to his 5,500 subordinates. "I'm announcing a ban on e-mail every Friday," Ellison's memo
read. "Get out to meet your teams face-to-face. Pick up the phone and give someone a call. … I
look forward to not hearing from any of you, but stop by as often as you like."

The no-e-mail-Friday idea landed with a thud.

"Jay's insane. He's crazy," said marketing director Kathy Volpi, recalling the initial impression
she and others had. As a kind of protest….."Employees would queue up their e-mails, and then
at 12:01 a.m. on Saturday, they'd let them fly." Eventually, the policy started winning over staff
members due to the amazing discoveries being made each day. Forced to use the phone,
employee John Coyle learned that a co-worker who he thought was across the country was, in
fact, across the hall. "I asked him where he was and he said I'm on the fourth floor, and I said,
'Well so am I,'" said Coyle. "We now have a working relationship that is deeper than he's the guy
that provides reports." Public affairs manager Tyler Caroll, because of her gender-neutral name,
used to get e-mails addressing her as a "he" or "Mr." Phone calls on a no-e-mail-Friday changed
all that. "People were really surprised that they had a woman's voice at the other end of the line
instead of a man's," said Carroll with a laugh. At U.S. Cellular, no-e-mail-Fridays have been
such a success that the company recently instituted a new policy aimed at another corporate vice:
no-meetings-Friday

PBD

cott A. Dockter knew things were bad when he found himself e-mailing his assistant seated a few
feet away. But it was more than his own e-mail habit that prompted the CEO of PBD Worldwide
Fulfillment Services in Alpharetta, Ga., to launch "no e-mail Fridays." He suspected that
overdependence on e-mail at PBD, which offers services such as call-center management and
distribution, was hurting productivity and perhaps sales. So in July, he instructed his 275
employees to pick up the phone or meet in person each Friday and to reduce e-mail use the rest
of the time. That was tough to digest, especially for younger staffers and some senior managers.
"We discovered a lot of introverts . . . who had drifted into a pattern of communicating by e-
mail," Dockter says. But in less than four months, the simple directive has resulted in quicker
problem-solving, better teamwork and, best of all, happier customers. "Our relationship with
PBD is much stronger," says Cynthia Fitzpatrick of Crown Financial Ministries. "You can't get
to know someone through e-mail." Though the BlackBerry has become standard armor for
executives, a few maverick leaders are taking action to reduce e-mail use.

'water-cooler' chats

Building trust and cohesion is difficult when people do not work in close proximity, and ensuring
that the team or individuals do not become cut off from the rest of the organisation might not be
easy. In internationally dispersed teams, cultural and time-zone differences can also create their
own challenges. With the advent of the virtual workforce phenomenon there was a real danger of
things becoming very task-focused and sterile. These workers had different support needs,
resources and demands. These workers were missing out on the social side of things just
because they did not have those 'water-cooler' chats with colleagues which is imperative for
building team feeling and trust. So Companies across the world have started providing “virtual
water coolers” ….forums for these employees to gather, socialize & share information. Nearly
every large company came up a web site or bulletin board ….what they didn’t expect was that
the majority of such forums would be dedicated to griping by current and former employees.
Some companies, such as Microsoft Inc., have numerous sites. Business pundits have taken to
calling this venting and boss-bashing phenomenon the "Dilbert Effect" after the popular comic
strip that pokes fun at stupid bosses and co-workers and other workplace frustrations. But the
biting satire of the "Dilbertzone" is mild compared to some of the material placed on web sites
by disgruntled employees. The comments range from the thoughtful opinions and concerns about
their jobs expressed on www.workingwounded.com to the often vitriolic cyberventing of
www .mybosssucks.com. While the web sites did provide outlets for negative feelings about
work, the overall effect on workplaces was quite destructive..especially the image which went
out to the outside world.

Instant Messaging: Much corporate instant messaging adoption occured on an ad-hoc, bottom-up
basis. Typically, a work group member or department leader decided that instant messaging is
the best way to distribute quick changes to a project or to communicate with a client. That person
then encouraged employees to go out and download publicly available instant messaging
software, such as products from America Online, Microsoft's MSN and Yahoo. instant
messaging was transforming the workplace as employees traded quips and tips in droves--a trend
that promised to blur forever the line between working hard and goofing off at a computer
keyboard. In a split second, people used instant messengers to arrange an impromptu business
meeting, answer a question from an important client or crack a joke with a co-worker down the
hall. Many employees have come to rely on it as way to survive cubicle culture While
corporations have been attracted to instant messaging largely by its potential for new efficiencies
at work, they have also found a way to limit the negative comments on blogs and websites. The
simple reason is people vent their anger and frustration on the IM itself and much off the steam is
let off before acquiring dangerous proportions. Company-sanctioned instant messenger software
begins to displace unofficial networks. Major Wall Street brokerage houses are actively courting
instant messenger providers to develop business applications tailored to their needs, for example,
and the profile of instant messaging is on a steady rise within corporations. Many Companies are
still contemplating on whether to introduce monitoring of IM messages and place tighter controls
or not (though some already have). This is because, work culture all over the world is becoming
more casual and informal. So this would be a step backwards. This is a dilemma which
companies are facing.

What are the essential things to do to manage a virtual workforce?

Have face-to-face meetings at key times, such as when the team forms, or new members arrive
Communicate regularly and give performance feedback ….it is the most important requirement
while taking care of the virtual workforce. Ensure virtual meetings are well prepared, have a
clear agenda, document actions and include room for social chat Focus on similarities between
team members to build cohesion Encourage social interaction - for example, at the start of
conference calls.
pronounced : ah-bites-gleh-the

Arbejde means work and glæde means happiness (Danish)

Scandinavians have an advantage over the rest of the world when it comes to happiness at
work: They have a word for it !!! It’s a concept that is deeply ingrained in Scandinavian
work culture and one that most Nordic businesses focus on to a large degree.
Scandinavian workers are considered the happiest in the world.

[According to a study from 2005, 68% are happy or very happy with their current job, compared
with 47% in the UK or even 35% in Belgium2. This is construed as a major factor behind the
success of Nordic companies like Nokia, IKEA, Oticon (the world’s largest producer of
hearing aids), Carlsberg, Ericsson, Lego, and many others.]

No formal definition but Happiness at work is simply…A feeling of happiness derived from
work.

We have heard of the Chief Fun Officer. This is a more meaningful next step which has come up.
Fun is only a small component of happiness. But the important question is, do we really need a
CHO ? No, as long as the the growing role of HR includes this within its realm. 6 Actions have
been identified to make us happy at work.

A workplace where people can do each of these 6 things is a happy one. Note that these 6 actions
are not about the organization..it is about you..about us.

Role of an HR professional is to provide a conducive environment within which these actions are
easy.

1) Positive – The truth is that many workplaces have a strong focus upon the negative.
Everything that goes well is ignored, while meetings focus upon problems, emails are
about mistakes, phone calls mean unhappy clients, and conversations are about conflict.

Martin Seligman (famous psychologist)- In a workplace experiment, Seligman


convinced an insurance
company to hire a group of people who were not initially qualified to work at the
company, but who all scored highly in terms of positivity and optimism. This group of
employees went on to outperform all their highly

skilled but less positive colleagues

2) Learning - No matter how much you enjoy your job today, if you do exactly the same things
in exactly the same way for a long time, sooner or later you will probably stop enjoying it.
We’re either growing or we’re shrinking; there’s no in-between. Learning is imperative.

3)Openness: It entails 1) being ourselves 2) Honesty 3) Fairness .

As Jack Welch says, “ Say what u mean and do what u say”

4) Participation: Psychological studies show again and again that a fundamental basis for our
happiness is the ability to control our own environment. When we are involved in the decisions
that matter to us, when we can participate

actively in creating our future, when we feel active rather than passive, we are much happier.

Of course, we can’t all participate in everything, and we can’t all be a part of every decision—
nobody would get any work done. So who should participate, and in what areas? The yardstick is
passion. Follow your passion. When you are passionate, you always have your destination in
sight and you are not distracted by obstacles. Because you love what you are pursuing, things
like rejection and setbacks will not hinder you in your pursuit. You believe that nothing can stop
you!

5) Finding meaning: A traveller walks down a dusty road. The sun is shining down
mercilessly from a clear sky and the heat is almost unbearable. As he pauses for a sip of water,
he notices three men sitting by the side of the road, chopping up stones.

The first one clearly has the look of a man wishing he was anywhere else. No wonder—
it’s hot, hard, unpleasant labor after all. The traveler asks him, “What are you doing?”
“Cutting stones,” the man replies.
The second man looks fairly happy with what he’s doing despite the hot air and hard work.
“What are you doing?” the traveler asks him. “I’m cutting stones to make money to support my
family,” the man replies.

The third stonecutter has a look that verges on blissful. He’s giving the stones his full attention,
precisely and powerfully cutting them into smaller rocks. When he stops for a moment, the
traveler asks him, “What are you doing?” In a proud voice he replies, “I’m building a cathedral.”

6) Love- In Maslow’s hierarchy of needs , after physiological and safety needs comes the need to
belong and to feel loved . Which brings us to love. When you ask employees what makes them

happy at work, they consistently rate these things highest:

● Nice co-workers.

● A good manager.

● Good communication.

● A sense of humor in the workplace.

Each of these is a sign of good relations, caring and, indeed, love—simple signs that people like
each other and communicate well. These good relations don’t have to stop with co-workers and
managers, but can also apply to customers, suppliers, shareholders, and the company’s
wider community.

http://www.news.com/2100-1023-976068.html

http://findarticles.com/p/articles/mi_m3495/is_12_44/ai_59427280

“Happy Hour is 9 to 5”

Chief Happiness Officer

Alexander Kjerulf
Many companies and groups have successfully implemented successful HR strategies to create
happiness at work. Here we have taken South West Airlines as an example to demonstrate their
strategies for “happiness at work”

1) Swap Jobs - At Southwest Airlines, employees regularly swap jobs. No, the baggage
handlers don’t get to fly the planes, but they may get to follow a pilot for a day, just to see
what their job is like. And pilots

get to be counter staff, executives try working as ground staff, and flight attendants get to be
executives.

In one case a baggage handler explained how he’d always envied the pilots. He was down on
the tarmac in the sun and hot weather loading and unloading luggage, and from where he was
standing he could see the pilot sitting in the cool cockpit eating an ice cream. So lucky ! But after
following a pilot at work, he gained a new

understanding of the pilots’ work. That pilot has probably been up since 4:30 in the morning,
and has been flying almost non-stop since then. He’s eating an ice cream because he doesn’t
have time for a real lunch—the plane is taking off again in ten minutes.

It also works the other way—if a plane is late, Southwest pilots often leave their cockpit to
help the ground crew load or unload bags. That’s the attitude of mutual respect and
assistance a company develops when different groups of employees have some insight into
each other’s worlds.

Most conflicts between groups of employees arise when people don’t understand each other. If
you can spend some time in another person’s shoes, it’s a great way to meet, to engage people,
and to learn about their job, so you can work more efficiently together afterwards.

2) The Love Airline: One company that understands the importance of love is Southwest
Airlines, and they even call themselves The Love Airline. Southwest Airlines hire
people first for their nice personality, and secondly for their skills: “Hire for attitude, train for
skill.” is the motto .To Southwest, a nice, sunny, outgoing disposition matters more than
degrees or experience. Southwest considers this to be one of the main reasons for it to be not
only a happy place to work—but also an efficient and profitable company. Southwest Airlines
has always known that great results come only from people who love their jobs.

3) Which comes first? Employees, Customers, Shareholders : With so much attention towards
employees, the next question that usually arises is this.

It is best answered by Herb Kelleher, ex-CEO of Southwest Airlines.

“People would ask me when I was talking at a business school or to an analyst group, “Which
comes first, your employees, your customers or your shareholders?” And you know for a long,
long time, many decades, I’ve been telling them that it isn’t a conundrum. That if you treat your
employees right, they’re happy and proud and participative with respect to what they’re
doing. They manifest that attitude to your customers and your customers come back.
And what’s business all about but having your customers come back, which makes the
shareholders happy.”

Some other companies concentrating on Happiness at Work are : IBM,


PriceWaterhouseCoopers, DaimlerChrysler, Hewlett Packard etc.

Happiness at work slides based on

“HAPPY HOUR IS 9 TO 5 - Alex Kjerulf”

Generations are classified thus depending upon the generally accepted periods. The main issue
with ageing starts with Baby boomers. As is often the case after a major war, the end of World
War II brought a baby boom to many countries as people returned to their traditional roles.
Hence this generation is known as baby boomers. The issue is that these baby boomers who
constitute a major chunk of the workforce are reaching retirement age. This problem is
compounded by the Lower and lower birth ratios of the countries and the higher and higher life
expectancy ratios which makes it very difficult for the labor force to replenish itself. The major
issues are

The issues that need to be addressed with great urgency are:


1) A change in the workforce structure with insufficient supply of skilled workers to replace the
retiring baby-boomer generation.

2) A depletion of leadership and management positions over the coming 15 years - currently all
key leadership positions in companies and institutions from public and private sector are held

by baby-boomers.

3) Mounting pension cost leading to unsustainable dependency ratios i.e. ratios between those
receiving the pensions and those funding them. As shown in the in the picture above, in 1990’s
5.8 people were supporting 1 senior citizen in terms of pensions, healthcare and other support
systems. In 2025 only 2 people will have to bear the burden of one senior citizen.

4) Increasing healthcare and support cost for a growing geriatric pool of very elderly people.

5) Issues are different in different countries. For instance

Japan : They have the highest Life expectancy rate in the world. Plus their birthrate is 8.1
births/1000 which is around 60% of US birth rate….Also they are averse to migrants ….so the
problem is compounded for them

China: self imposed problem – the one child policy

US: US has always depended on Mexico for fulfilling its labour requirements…..the problem is
that Mexico’s fertility rate & birth rate itself has started coming down

All this is also expected to intensify brain drain over the years.

This is the result of a study and review of strategies being implemented in various countries by
Conseil consultatif du travail et de la main-d'oeuvre [advisory council on labour and
Employment] Canada .
The challenges for the workplace come out of a study of the prevalent& expected situation in the
job market & the needs of the workers and the companies. The stratégies presented here are the
most widely accepted strategies as of now.

Strategies:

Anticipated labor shortages will force a radical rethinking of recruitment and engagement
strategies. Instead of focusing on the burdens placed on pension and healthcare costs, managers
and leaders need to think about retirement plans and strategic programs designed to attract and
retain workers who are 55 years of age or older.

     The maturing workforce presents both a dramatic challenge and new opportunities.
Organizations that take the time now to create employment policies that address the loss of an
aging and experienced workforce will have a competitive edge in the near future. However,
surveys consistently report a majority of companies are unprepared to create innovative
programs for their aging workforce. The knowledge many older workers possess is invaluable.
“The maturing workforce is often seen as an issue to be dealt with instead of a great opportunity
to be leveraged,”. “The skills and knowledge mature workers possess can be utilized to great
advantage by a company that knows itself well and can identify its weak areas that can be
bolstered by the right mature workers.”

There is a need to change attitudes and behaviours to adapt to the new challenges.

The five most common strategies employed are:

1)Implementing Flexible Work Arrangements


2) Creating Knowledge Sharing Relationships
3) Creating a Multi-Generational Workforce and Culture
4) Phased Retirements and Retirement Planning Workshops
5) Strategies for Recruiting Retirees

1) Implementing Flexible Work Arrangements


Retaining workers beyond retirement age requires shifting working arrangements
to suit lifestyle changes. Innovative organizations offer flexible work programs to
employees as part of their retirement programs. Short term projects, customized
work schedules, attractive work assignments and compensation packages are all
aimed to attract and maintain the mature workforce. IBM has been a leader in
providing their older and retired workers with strategic programs for work and life
balance in order to maintain an on-demand workforce to meet market conditions.
P&G is another.

“In Europe, there’s a new vogue for ‘interim management’ – employing former bosses on
short term projects. In countries like US there maybe legal and regulatory issues regarding
flexible working arrangements. So they have to be checked.

2) Creating knowledge sharing relationships: As traditional lines between retirement and


work begin to blur, retired workers can mentor younger workers.

3) Creating a Multi-Generational Workforce to ensure transfer of skills :


Attracting a multi-generational workforce may require changes to meet the needs of mature
workers. Job descriptions, traditional work rules, and eight hour workdays can be revisited and
redesigned with the older worker in mind. Pay special attention to making specific results and
deadlines within the reach of older worker’s abilities and experience. Many older workers seek
short-term goals. Others favor consulting and mentoring opportunities. Promotion should be age
neutral. Organizations that integrate mature workers into their workforce by recognizing their
accomplishments build loyalty and cooperation.

Deutsche bank is a leader in this….it calls it the know-how tandem model.

4) Phased Retirements
People may not want to leap from a permanent position behind a desk to a permanent slouch on a
lawn chair -- literally overnight…. Thanks to an emerging trend called phased retirement, they
might be able to choose a middle path that allows reduced work hours, more flextime and maybe
even collecting retirement benefits -- all in exchange for a substantially smaller paycheck.

Countries have started working on adapting public policies to the challenges.

Some countries are going to the root of the problem !!! Netherlands, Australia have already
offered cash incentives (in terms of maintainance of child) to bring about a boost in the birthrate.
Japan is considering offering incentives to increase the birthrate. The major point they are stuck
with is the fact that the payback period of this investment would start in 2030 when the new
babies will be liable to pay tax !!

Since this is mostly uncharted territory, most of the strategies are based on experience and the
insights got therefrom ….one insight which has emerged is that rehiring retired employees isn’t
meeting the desired goals, there seems to be a lack of alignment in the role of a full time
employee again…Using them as mentors has proved to be more productive.

Countries are still averse to migrant population even to fill the labour requirements.

So there is a huge challenge ahead for HR.

http://www.masteryworks.com/newsite/news/news_article.htm

Labour management consensus in Quebec report:

www.hrsdc.gc.ca/en/cs/sp/hrsdc/edd/reports/1997-000364/qlme.pdf

In an organization SHRM means accepting and involving the HR function as a strategic partner
in the formulation and implementation of the company’s strategies through HR activities such as
recruiting, selecting, training and rewarding personnel.

We are looking at the same in an unnatural context…..much beyond an organization…the


biggest event of 2008…Beijing Olympics

Three US-based scholars published a research paper early last year dealing with the
consequences of, and solutions to, a potential "misalignment" of human resources for the Beijing
Olympics. "An Application of a Human Resources Strategic Model to the 2008 Beijing
Olympics: A Discussion of HR Goal Misalignment in Projects," as published in the Journal of
Change Management in 2007.

In layman's terms, they argued that Chinese migrant laborers are perpetually underpaid, ill-
treated and lacking in proper legal protection.
Employers of migrant laborers have made a habit of withholding wages and paying less than
promised. Many migrant workers do not have labor contracts, as employers often refuse to sign
them. With 150 million idle farmers in the Chinese countryside, competition for jobs gives
migrant laborers little leverage in negotiating with recruiters.

Even if they do hold labor contracts, employers have been known to run off when they can't
come up with workers' wages.

The problem of wage arrears is especially acute in the debt-laden construction industry, which
employs mostly young men from the countryside.

Such practices may become an international concern if they continue at venue construction sites.
the scholars suggested that China "realign the human resources behavior of Olympic employers"
by guaranteeing contracts between laborers and employers, setting Olympic pay rates, and
punishing abusive contractors.

The labor issue could also lead to a "large-scale public relations disaster", thus damaging
Beijing's goal of enhancing its national image through the staging of the Games.

In their Olympic vision manifesto, one of the three main goals is “people’s Olympics” wherein it
has been laid down that…….

The theory also makes sense as the country has been trying to improve its labor practices to help
many of its 200 million migrant workers who face problems of low pay, poor safety conditions at
work and inadequate social security, for sustainable social and economic development. Talk of
"decent work" was on the lips of officials and trade unionists at a recent international labor
forum in Beijing.

After some fact finding on this issue to check whether HRM of Beijing Olympics was
strategically aligned to stated objectives of Beijing Olympics ..mainly the “people’s olympics”
goal wherein emphasis has been laid on proper conditions for workers including all the above
parameters

This is what cropped up


1) According to official Chinese figures, over the past few years, Olympic venues in Beijing
including the Bird's Nest and Water Cube have employed about 30,000 migrant workers,
most of whom were farmers drafted in from the provinces.

2) Olympic pay : It is reported that Olympic construction workers are paid 50 to 80 yuan
per day, higher than the rates suggested by the researchers and much higher than the
average chinese labor wage pay rate of 25 Yuan per day

3) Contracts: To make sure the laborers are paid on time, the government has required
contractors to pay using "heart-warming cards," or debit cards issued by the local postal
office, in order to keep tabs on late- or non-paying employers.

4) Punishing abusive behavior: Contractors who bend or break the rules will be blacklisted
and prohibited from working on future city projects.

5) Welfare: In addition, medical checks are done on a regular basis and as and when needed
by any employee. Evening diversions including artistic performances to help the workers
relax. And crash training courses are also provided for the laborers.

People can debate over the possibility of the migrant workers undertaking Olympic-related
projects in Beijing being an exceptional case and that their welfare has received attention from
state and municipal leaders who have pledged to host a "People's Olympics". Two significant
things are:

1) Focus from the TOP: Chinese Premier Wen Jiabao has been checking with migrant
workers about their salaries and social security during inspection trips to Olympic
building sites. Values percolate from the top

2) The work for these olympics has been going on for some years now….China has stayed
true to their commitment till now not only for the migrant labour but all the other groups
hired to make the olympics a success….for instance, they have hired 100000 volunteers
to manage the tourists to the olympics cities, 20000 people to help the spectators at the
event venues, 300 top students from the universities across the country to help in the
decision making body etc…and all groups are being taken care of……
This is a very positive trend emerging from the Beijing olympics, and bodes well for the
future of chinese labor concerns. It would be good to see the country and individual businesses
set bigger goals for themselves and improve labor conditions with or without the Olympics. if
China can show that it is now using globally-perceived fair and ethical labor processes, then an
additional benefit would be a reduction in labor-associated risks for all of its foreign investors'
projects and businesses.

They have aligned hrm strategically to the set objectives…..now they should strategically realign
their human resources with the organizational goal of sustainability.

http://www.chinadaily.com.cn/olympics/2008-01/18/content_6404691.htm

http://www.worldpress.org/Asia/2254.cfm

Creativity is no longer a luxury of the most advanced organizations; it is increasingly becoming a


necessary instrument in the struggle for survival. Creativity is no more about whatever one wants
than freedom is. Creativity and freedom both require precise navigational techniques; otherwise,
both devolve into mere floundering and flailing. And while the notion of “ MANAGING
CREATIVITY” sounds like an oxymoron, we can definitely cultivate creativity and foster
conditions that favor its expression. HR’s role is increasingly to identify creative talent and
establish the environment needed for it to operate at maximum power….i.e to create a hothouse.

Researchers have studied communities, groups, cities and organizations to understand the points
which come together to create a hothouse

5 criteria that define a hot house:

1) Sustain high level of innovative creativity for a significant period of time

2) Draw on the knowledge and innovations of the broader cultural zone to which
they belong- Just aas individual creativity rarely blossoms without simulation
from a network of other practitioners, the same holds true for a hothouse…
without the extraordinary culture of archaic Greece, there would have been no
athens.

3) Spawn geniuses whose achievements climax the work of other practitioners at all
levels – Solitude still serves as the most important component in the creative
process of individuals, but creativity doesn’t happen in a social vacuum. Genius
gestates within a social cauldron where ideas and techniques are exchanged at a
frenzied pace and subjected to exhaustive experimentation.

4) Establish a new way of doing things

5) Achieve recognition and establish a lasting legacy- Ancient Athens created forms
of history, mathematics, democracy, political science, philosophy, drama,
architecture and sculpture that continue to shape our world even today. Other
societies possesses mathematics or a sense of history and delved into the meaning
of life and the universe. It was Athens however, that fused these cultural domains
into distinctive forms- buildings, literature, political innovations- that inspired an
entire civilization. Two thousand years later, Athen’s Golden age and its
achievements entranced EUROPE and played a crucial role in inspiring the
renaissance.

Modern organizations concerned about the bottom line cannot simply replicate the disorder that
often marks creative hothouses. However , cultivating the hothouse effect in a measured,
strategic way can produce striking results. In our zeal for achieving results which are beyond the
scope of an individual, we look at fostering groups and team spirit. Awareness of the individual
creative capabilities and needs for creative expression is the first step.

Dr Barton Kunstler has come up with the “creative hothouse assessment instrument tablet”…. to
help organizations to assess their creative position or disposition. It is being used more to find
companies who are in the hot zone and to study their models so as to get ideas for replication.
The author has identified 36 factors grouped under the four dimensions. Basically, a
questionnaire has been formalized which will help identify where our organization currently is in
terms of creativity.

There are four dimensions of the hothouse effect, says the author. These are: values/mission,
ideas/exchange, perception/learning, and social/play.

"Values can be a fuzzy notion, but we instinctively recognise people in sync with our own
values... Values unite disparate individuals into a well-functioning community." Strong values
often drive one to attempt to make an impact on the world, writes Kunstler. "Because values by
definition demand that we view situations from perspectives other than our own self-interest."

Ideas/exchange The hothouse community organises itself to use information and ideas
efficiently, as many systems do, but also imaginatively, expansively, and in seemingly non-
utilitarian ways." To test if the group is functional, here is a small test: observe how conflict is
resolved. "Good conflict resolution is not simply reactive; rather, conflict is viewed as a high-
energy event that offers opportunities for personal and organisational growth."

Ideas know no boundaries, reminds the author. "The realm of ideas is like a vast society in which
ideas cluster in neighbourhoods, towns, and cities, while some live lonely lives deep in the
woods." Go in search of them, without limiting your brain to marketing, finance and so on.

Perception/Learning: members start using unorthodox sturctures of thought: metaphor, models.


Meta-cognitive thinking, meditation, thought experiments etc and time itself is perceived as a
palpable dimension and harvested for it creative energy. Each person is respected as a learner,
producer and potential visionary.

Social/Play: (some indicators)

1) Community continually produces highly effective leaders. 2) crisis draws the


community together and releases hidden reserves of creative energy 3) playing with ideas and
groups pervades many group processes. 4) Assertions of power based on an individual’s position
within the hierarchy is discouraged.

_________________________________________

Questionnaire measured on a rating scale of 5 from “strongly agree: to “strongly disagree”


Vertical axis is the first , horizontal axis second. Example….vertical axis values- horizontal axis
mission. Then the 4 scores are combined which will fall into one of the zones.

O-zone : it is the realm of the ABSTRACT, IDEALISTIC, INEPT . Organizations often believe
they accomplish much more than they do and tend to have an inflated self image. They survive
by lower level people performing heroically to keep the business on track

Dead Zone: This is a quagmire marked by low motivation and low creativity. If it is profitable, it
is due to a market position established long ago or by a lucky accident or by regulations. It is
susceptible to competition, high employee turnover, cynical practices such a plant-milking etc

I zone : Hard driving- individualistic orientation of a high achieving organization but one limited
by inattention to the internal qualities defined by the vertical axis. Success here is likely to be
cyclical and planning short or medium term at best.

Hot Zone: Outstanding qualities result from a strongly defined orientation towards creative,
innovative work. If one point or small area lies in this quadrant, then it is highly creative in that
dimension….but for it to be a hothouse, most of it should fall in this.

______________________________________________________________________

“The Hothouse Effect” by Dr Barton Kunstler

Recent clients for his training programs include Schafer Corporation, Saatchi and Saatchi, The
New England Aquarium, Darwin University, The Institute for Transitional Economies, and The
Global Management Center/World Trade Network, Inc. He is Professor of Management at
Lesley University in Cambridge, Massachusetts.

http://www.thehindubusinessline.com/mentor/2004/07/19/stories/2004071900361100.htm

1) Patronage: Someone always pays for creativity. Renaissance patrons were not simply personal
sponsors, though; their commissions were very often public works. In ancient Athens, the city
itself played the role of patron. So patronage can be seen as one model of how a society pays for
its creativity.
I see patronage more as an instrument of the hothouse effect rather than its cause. When the
hothouse effect takes off, it usually generates the resources it needs

2) ROI : policies did pay off quite well for Beard Frame Shops and Sequent--successful
companies that were sold by founders responding to powerful market forces. The new managers
just didn't see investing in creativity as vital to their strategy.

The extra money invested in opera tickets by Beard Frame Shops, or the money spent on
workspace consultants by Sequent, was minor compared with other costs. Often we invest far
more in stifling creativity. People naturally want to exercise their creativity; to squelch it costs a
lot in instituting misapplied systems of control.

3) Schools: One way might be through supporting creative programs in public schools. Every
school should be a creative hothouse, and, if it is, students will bring that creativity and high
performance to the workplace.

4) Internet Culture: The Net's wealth of information, networks, highly visual environment,
multiple applications, and global access offer a version of the important but elusive hothouse
factor of "rapid exposure to meta-systems." But the Net itself cannot provide that automatically.
Learning to use the Net optimally is not about information management, but about knowledge
management.

The Net's amazing--you can learn a lot about five or six subject areas in a few hours, link ideas
and data in very creative ways, but you need understanding and time to generate useful results

5) Virtual Organizations : The virtual organization is not a likely hothouse candidate, but you can
set up virtual workgroups that function as hothouses for a short time.

Isolation makes people more prone to misinterpret or overreact to the messages they receive. In a
virtual organization, communication may be dazzlingly fast, but connections between people
become very tenuous and thin.

_______________________________________________________________
Suggestions for Applying The Hothouse Effect

If you would like to cultivate the creative hothouse effect in your organization, the following 10
methods may provide a start:

1. Cultivate values whose scope extends beyond the boundaries of the organization and the
conduct of business. The creative hothouse believes it can change the world. (Tip: This does not
mean endless visioning meetings.)

2. Expose employees to high-level creative achievements from outside the industry. Beard Frame
Shops' policy of paying for tickets to cultural events, and then discussing these events in-house,
serves several purposes, such as cultivating a more open-minded and creative person and
imbuing the workplace with the spirit of the creative milieu it has embraced.

3. Get physical. A workout area is fine, but include yoga, t'ai chi, juggling, dancing, and other
activities that promote mind-body integration. In the creative hothouse, movement and
exploration of the five senses can help focus and accelerate problem solving.

4. Formalize a feedback loop that cycles peripheral inputs into the center of the organization.
Sources might include conversations with delivery drivers, analysis of cultural and economic
trends, or design solutions derived from other industries.

5. Constantly review your intellectual capital. Recycle ideas. Investigate the paths not taken, the
results that were never used. Only a fraction of the data and insights generated in any system are
ever used in its final products.

6. Continually reevaluate the basic assumptions and methods of your discipline. Challenge your
most treasured paradigms. This can be done through multidisciplinary teams or as part of an
intensive special project. Integrate such assessment into every significant project. Discussions of
art and literature with a particular theme in mind--for instance, design, marketing, or leadership--
are rich sources of new perspectives.

7. Set up a "chart room" or equivalent filled with diverse information. Encourage employees to
scan information, develop scenarios, and link new data and ideas to the material they work with
every day. Keep ideas circulating and establish ways to retain, assess, and build on these ideas.
8. Use an assessment instrument such as the Creative Hothouse Assessment Chart and
accompanying questions, a simplified version of which appears on pages 26-27.

9. Go beyond the office party or company picnic. Create whimsical group celebrations that
engage people's creativity. Link it to work in an outlandish, fantastic way. For instance, create an
Internet environment for a party.

10. Teach people to trust themselves, and trust yourself enough to trust people to give their best
effort.

History contains forces and behaviors larger and more extravagant than those found in business
alone. The creative hothouse effect applies the wealth of historical experience to a realm in
which possibility is often constrained by the exigencies and demands of doing business.

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