Methods to control Labor Turnover A. Exit Interview B. Retention Strategy- Design strategy for retaining human resource:1.

Work Environment 2. Intangible Benefits- overseas employment 3. Matching job and individuals

The key lesson that others should learn from Toyotas mistakes is that HR needs to periodically test or audit each of the processes that could allow this type of billion-dollar error to occur.

1. Rewards and recognition The purpose of any corporate reward process is to encourage and incent the right behaviors and to discourage the negative ones. Its important for the reward process to incent the gathering of information about problems. Its equally important to reward employees who are successful in getting executives to take immediate action on negative information. Key questions Were rapid growth (sales have nearly doubled recently) and lean cost-cutting recognized and rewarded so heavily that no one was willing to put the brakes on growth in order to focus on safety? Were the rewards for demonstrating error-free results so high that obvious errors were swept under the table? 2. Training The purpose of training is to make sure that employees have the right skills and capabilities to identify and handle all situations they may encounter. Toyota is famous for its four-step cycle plan/do/check/act but clearly the training among managers now needs to focus more on the last two. In addition, in an environment where safety is paramount, everyone should have been trained on the

symptoms of groupthink and how to avoid the excess discounting or ignoring of negative external safety information. Key question If Toyotas training was more effective, would the managers involved have been more successful in convincing executives to act on the negative information received? 3. Hiring The purpose of great hiring is to bring on board top-performing individuals with the high level of skills and capabilities that are required to handle the most complex problems. Poorly designed recruiting and assessment elements can result in the hiring of individuals who sweep problems under the rug and who are not willing to stand up to management. Key questions Did Toyota have a poorly designed hiring process that allowed it to hire individuals who were not experienced in the required constructive confrontation technique? Were their hires poor learners that did not change as a result of company training? 4. The performance management process The purpose of a performance management process is to periodically monitor or appraise performance, in order to identify problem behaviors before they get out of hand. If the performance measurement system included performance factors to measure responsiveness to negative information, Toyota wouldnt be in turmoil today. Key questions Was the performance appraisal and performance monitoring process so poorly designed that they did not identify and report groupthink type errors? Did Toyotas famous high level of trust of its employees go too far without reasonable metrics, checks, and balances? Did HR develop sophisticated metrics that produced alerts to warn senior managers before minor problems got out of control? 5. The corporate culture The role of a corporate culture is to informally drive employee behaviors so that it closely adheres to the companys core values. Because these errors occurred under difficult driving conditions, its hard to blame the production group, which has a well-known reputation for Six Sigma quality in its construction. The negative reports came to functions like government, risk analysis, corporate and customer satisfaction. As a result, it is the culture within the corporate offices that need to be more closely monitored rather than assuming that the culture was aligned. It appears that the corporate culture created leaders so concerned with saving face and so adverse to negative publicity, that they for years postponed making the announcement of a massive recall. Key questions Did HRs failure

to measure or monitor the corporate culture contribute to its misalignment? Was the corporate culture (the Toyota Way) so biased toward positive information that employees learned not to make waves, in spite of their professional responsibility to be heard on safety issues? 6. Leadership development and succession The purpose of leadership development and succession planning processes are to ensure that a sufficient number of leaders with the right skills and decision-making ability are placed into key leadership positions. It is likely that the leadership development and the promotion process both failed to create and promote leaders who were capable of confronting problems and making difficult decisions. Key question Was the leadership process at Toyota so outdated that it produced the wrong kind of leaders with outdated competencies, who could not successfully operate in the rapidly changing automotive industry? 7. Retention The purpose of a retention program is to identify and keep top performers and individuals with mission-critical skills. Key question Did the retention program ignore people that brought up problems and as a result, did these whistleblowers often leave out of frustration? 8. Risk assessment Most HR departments dont even have a risk assessment team whose purpose is to both identify and calculate risks caused by weak employee processes. Clearly HR should have worked with corporate risk management at Toyota in order to ensure that employees were capable of calculating the long-term actual costs of ignoring product failure information. Key question Should HR work with risk-assessment experts and build the capability of identifying and quantifying the revenue impacts of major HR errors, including a high hiring failure rate, a high turnover rate among top performers, and the cost of keeping a bad manager or employee?

Companies that communicate effectively have a 19.4 percent higher market premium than companies that do not. Shareholder returns for organizations with the most effective communication were over 57 percent higher over the last five years (20002004) than were returns for firms with less effective communication. The 2005/2006 study found evidence that communication effectiveness is

a leading indicator of financial performance. Firms that communicate effectively are 4.5 times more likely to report high levels of employee engagement versus firms that communicate less effectively. Companies that are highly effective communicators are 20 percent more likely to report lower turnover rates than their peers. Two-thirds of the firms with high levels of communication effectiveness are asking their managers to take on a greater share of the communication responsibility, but few are giving them the tools and training to be successful. Global firms are not customizing their messages to meet local needs or cultural sensitivities. On average, firms within the financial and retail trade sectors rank among the most effective communicators. Health care, basic materials, telecommunications and other service companies rank among the least effective communicators CASE STUDY

Tools for effective communication How did the Retail Giant benefited from this
One of the retail giant in India Bharti Retail Walmart, started its operations in India in the year 2007 and the very first challenge the HR head of the company envisaged was that how to effectively communicate with its predicted large force of employees which will be spread throughout the country. These employees will be from varied background, part timers, housewives, villagers, low income group people and from different cultures speaking various languages. Apart from effective communication the challenge was to keep the HR management cost to the minimum level. A lot of thought went into this and Open Mind Services Limited was asked to take up this challenge to provide an effective means of communication between the employees and the HR department of Bharti Retail and also make a system which becomes the backbone of the HR department. Open Mind studied the whole situation and understood the future scenario, after deep study and analysis it was thought to have a proper HR helpline centre working on voice technology to cater the employees of Bharti Retail. It was named as MyHR. Functions of myHR: To provide all the information related to the particular employee and the company like: o Leave balances o Policy explanations o Tax related issues o Salary issues o PF/ESI issues o Full and Final settlement issues o Help in portal usage Help in listening and forwarding the complaints of the employees o Complaints against other employees or management o Complaints/suggestions related to the stores etc Although it looks to be a simple idea, but it involved integration of a lot of

technology and made open mind set up a unique centre for Bharti Retail. The myHR centre in a very less time became the nerve centre for all employee related activities and it benefited both the employees and the company BeBEBnefits to the employee:
BENEFITS TO EMPLOYEES: All the information related to their salaries etc was easily available Employees were directly in touch with the company representative in the centre The help line facility was free of cost to them They did not fear the backlash or unreceptive behaviour of their direct seniors The centre was always open to hear their complaints and take it to the logical conclusion More than 95% of their issues were resolved on one single phone call In case of an escalated issue, itissue, it was resolved within a set TAT.

Features: FEATURES: Multi-lingual Service catering to widespread geographical locations. Toll free no. gives easy access to associate with no extra cost Work-force composition not being computer savvy hailing from all walks of life, Mobile comm. is the most popular mode of communication in India Centralization of services ensures standardization and consistency Increases the efficiency of location HR, as centralized backend allows higher ass. HR ratio. Resolution is just a call away, which wins over the limited accessibility of emails at office locations Benefits to the Employer:

BENEFITS TO EMLPOYEES: Higher employee: HR manager ratio ensures enough direct cost savings to the company, It has been estimated that on every 1000 employees a cost saving of over Rs 50 Lakhs per annum. (estimated figures for year 2009-10) Due to centralization, the accurate information is sent throughout the organisation thus leading to a satisfied employee force. Company gains the confidence of the employees and gives a better service to them. At last a Happy Employee leads to better productivity.

Conclusion:
MyHR has helped Bharti Retail transform the way HR is looked upon in a company, It has bonded the employee to the company in a much better way by offering a single window service. Companies does not get created but they are always nurtured to become giants, and a happy employee force works as a catalyst for this Growth