Talent Management – Orix GeoScience case

Submitted to - Prof. Bijayinee Patnaik

Submitted by: Group 4

Ayush Pareek D044

Omkar Rane D046

Sugandha Anand D005

Rajasi Paranjape H041

Rashmi Mishra H035

Aayush Jhanwar H026

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 Q1. Assess Orix’s approach to employee engagement. What are the pros and cons of a system
like this?

Orix’s approach was quite unconventional when it came to the employee engagement. Orix was
focused on providing non-monetary benefits and better culture to its employees when the
industry was focused on monetary benefits. Openness and transparency was encouraged and
values of the company were unique compared to the traditional approach to employee
engagement. They believed that high performance of an employee would come only from high
levels of employee engagement and commitment to the company. They developed the “O-
Code”- 10 behaviors and skillsets combination, which was a benchmark for employee selection
and guidance. This unique approach of employee engagement has been quite successful so far
for Orix. Let us look at the pros and cons of a system like this:

Pros:

1. The current organization structure is flat which is very good giving access to colleagues
to learn from even the senior management. This also helps people be self-driven and
motivated as they are having a very steep learning curve. It gives them autonomy as
there is no hierarchy and no strict job descriptions resulting in high levels of employee
engagement.
2. The compensation plan consists of the baseline monetary compensation and non-
monetary compensation catering to individual needs. The base line compensation meets
the industry standards and non-monetary compensation helps in improving employee
satisfaction. Non-monetary includes vacation time, education plans, etc. It also helps to
keep the salary costs in check for the organization.
3. Peer review system is a very good process followed. This ensures that only quality
output is delivered. This increases interaction between employees and also connects
them to senior leadership. Learning is better in this way and geologists got a platform for
interaction thus increasing employee engagement. Everyone also got a chance to
understand each other’s work and increase their knowledge.

Cons:

1. Lack in clarity about roles and responsibilities can at times lead to inefficiencies at work.
There should be constant clear communication for every individual as everyone has
different expectations. With a startup culture currently, it looks fine to take every
employee’s views into account, but with scaling up catering to everyone’s variable needs
can be a task. Hence some kind of structure would be required.
2. Having variable packages according to the individual needs can lead to a feeling of
inequality among employees. The HR team also has to maintain records of each and

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 every individual and its compensation structure which is a tedious task. With scaling up
in mind, maintaining flexible package will no longer be realistic.
3. There is no individual mechanism feedback present. Though there is peer review but it
only focuses on best quality product delivery. Whether the individual performance is
increasing or not is never measured. There is no specific career trajectory seen currently.
With scaling up, lack of performance monitoring and evaluation can lead to the
employees being less motivated and unclear.

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 Q2. Develop an action plan for Ramnath. What should the talent management systems look
like three years from now, assuming high growth with the upturn? What should Ramnath
start putting in place now to prepare the organisation for these systems and ensure high
employee engagement?
Note: Assume the goal is to quadruple revenue to $14 million in 2021-2022, with 85-100
employees.

Ans:
Orix undoubtedly had a very unconventional approach related to employee engagement. Orix
nurtures the individuality of its employees by providing customized total compensation and
work criteria, however, going forward, this might create conflicts, tensions and potential
inequities in the organization. Thus, this calls for the adoption of more streamlined engagement
structure by Orix GeoScience organization.
Orix GeoScience should adopt the Aon Hewitt Employee Engagement model to provide a better
structure to its organization. By properly analyzing the foundational (company practices, basics
and work environment) and differentiators (brand, leadership and performance) engagement
drivers, Orix can create a more well-defined structures, incentive systems, competence models,
appraisal systems, recruitment policies and career paths.
Short Term Plan
The short-term plan for the organization would be for the first 6months – 1year.
The founders believe that ‘culture is the currency of the organization’ and thereby have invested
more on building and promoting the organizational culture. Also, the monetary compensation
as offered by Orix GeoScience is at par with the industry standards. As we can clearly observe
from the case that despite Orix not having the highest monetary compensation, it still has the
employee loyalty, so, as part of the short-term plan, Orix should focus on building and
strengthening company culture without paying much heed to improvising on the monetary
compensation.
As part of short-term plan, Ramnath should take up the high-impact impending issues and settle
them. The current issue at hand is to complete the process of selecting the future leaders
before she diverts her attention to other tasks. Leaders are responsible for the propagating the
company culture and steering the company in the future and as it would be difficult for
Ramnath to personally involve in this later, on discussion with Kirwan, she can identify and list
down the must-have and good-to have qualities in the leaders so that even in future Kirwan and
the HR can identify the future leaders of the company with minimal assistance from her.

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 Long Term Plan
The long-term plan for Orix GeoScience organization would comprise of 3-4 years. Orix is
expected to witness upturn in next 3 years and that would increase the requirement of
employees in the company. For recruitment, Orix GeoScience can leverage secondment,
opportunistic recruitment and for recruiting fresh talent, it can turn to Hackathon and various
other competitive coding platforms.
Apart from recruitment, the Orix also needs to create a structured engagement model. We will
use the Aon Hewitt Model Employee engagement model for developing the long-term
employee engagement plan of Orix GeoScience.
1. Work: As of 2016, the company currently has 47 employees, so the organization can run
without strict job description. However, with the company aiming to double the
employee in next three years, a well-defined job description would be required just to
segregate the overlapping of tasks to two different employees working in the same team
but in different roles. However, the tasks could be such that the employees still get to be
fluid with their work, so as to preserve the essence of the original Orix culture.

2. Basics: Orix already provides a healthy working environment where employees get to
prioritize the work according to the way that worked out the best for them without
compromising on the deliveries and deliverables.

3. Company Practices: Communication plays an important part of Company practices. With

4. Performance: While wanting to scale up, Orix needs to develop a strong performance
management system. It is because the number of employees is less right now that is why
each employee knows their relative competence and hence, adjusts with the variable
compensation structure. With the number of employees increasing, it would be difficult
for the employees to know their relative worth and this could give birth to the feeling of
unfairness for variable compensation system. So, a proper Performance management
system (planning, monitoring, developing, rating and rewarding) should be developed in
Orix.

Currently, Orix has a very unconventional compensation structure where only base line
compensation has 4 components and is standardized to certain extent. The other parts
of compensation structure is highly relative and while this is working great with lesser
number of employees, it might be the source of conflict when the organization scales

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 up. To remove this variability in total monetary compensation, employees would be
given certain points after their assessment via performance management system. The
employees can then leverage these points to avail non-monetary benefits subjected to
their requirements. For ex: Suppose say each of the different benefits like one week
leave, childcare benefits be given points like 5000 and 4000 respectively. Now an
employee A, after undergoing his PMS, obtains 10000 points as part of his variable
compensation. This employee A wants to travel the world so he can avail these points to
obtain benefit like one week leave for 2 weeks (2*5000). Another employee B, obtains
5600 points after going through her PMS but she wants to avail childcare facility so she
can use her 4000 points out of 5600 points to avail that. This policy would not just
standardize the variable compensation structure, but also would retain the
customization of the compensation structure in Orix intact.

Also, Orix should also implement rewards & recognition system to motivate its
employees even further to deliver better.

5. Leadership – Orix Geoscience already has a leadership development program and that is
doing quite well. Orix should continue doing that as it is proving to be beneficial for the
organization.

6. Brand – Orix should communicate its Employee value propositions clearly to its
employees. Some EVP of Orix can include flat hierarchy, autonomy, good work culture,
employee centricity and respect for individuals. Orix should clearly communicate its EVP
as this will help in building brand among not just among its potential talent pool but also
reinforce brand value of Orix among its current talent base.

Orix GeoScience can use the Aon-Hewitt engagement model to develop action plan for the
employees of Orix to increase their engagement level with the firm. This engagement level will
help to achieve say, stay and strive objectives of Orix Geoscience. With the uptick in
engagement level, talent attraction and retention level would go up. Also, with proper
engagement model, employee satisfaction and productivity would increase which would then
translate into better financial performance of the company, helping it achieve the requisite
target of $14 million in 2020-2021.

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