Human Resources management I

Executive interns in RBI (Business Line, July 21,2011)
This refers to the report ‘RBI to hire 200 executive interns’ (BL, July 20). Although on the face of it, the proposal would look a normal HR initiative at infusing young blood with expertise and enthusiasm at a lower cost, no in-depth analysis may be needed to find that this is a short-term remedy being tried out for a long term problem.

Sooner than later, the RBI, government and public sector organizations will have to wake up to the reality that their recruitment, training, placement and compensation strategies need thorough overhaul and this they have to do taking their existing employees into confidence.

RBI is one institution that has learnt from first principles the negatives of having several categories of employees doing identical or similar jobs, but with varying opportunities in career progression. That recognition had resulted in introduction of combined seniority among all officers of RBI with separate cadres only for certain specialized services in 1972. The proposed 200 interns will have to work in somewhat hostile environment as they will be drawing higher emoluments than those with whom they work with an uncertain future staring at them. The position is not similar to their friends in the private sector where all are similarly placed with opportunity to share market opportunities for job changes and half-yearly or annual review of remuneration including incentives based on performance.

A long-term solution may have to be found for the HR-related problems, including inability to hire experts at market related compensation (this is applicable up to the position of CEO in government and public sector), skills becoming obsolete in short periods, employees’ reluctance to change and trade unionism emanating from job security. There may not be a fit for all remedy, as the issues are as old as the institutions.
The Government and public sector organizations may have to consider how best the ‘Cost to Company’(C to C) principles can be integrated into their existing recruitment, training, placement and career progression policies. This may involve the following:
Taking the existing employees into confidence with an assurance that the changes will only improve the working results of the organization and they will get opportunity to share the benefits and new job opportunities and so long as they are prepared to learn new things/upgrade their skills the infusion of ‘experts’ will not eat into their career progression opportunities.
Inter-mobility of executives in all cadres among comparable organizations. For e.g. a Banking/Financial Sector Service could be evolved for institutions including those in the private sector and regulatory bodies in the financial sector.
A transparent guidance for remuneration package based on paying capacity/need for skills for different sectors. Proposals like the present one by RBI of shifting to C to C to reduce costs will give wrong and unhealthy signals.


Popular posts from this blog



The King of Ragas: Sankarabharanam