(Contd.)
That Warm Cocoon
That's also the reason HSS places a high emphasis on communication.
''It is something I am paranoid about. People have to know
what is going on,'' says Goyal. The company's intranet, 'Anthra',
comes in handy here. Then there are various newsletters, one
catering to general news, the other, technical stuff. There
is even an electronic message board called 'Techtalk' where
the engineers can host technical queries that are then answered
by someone in the company. And, of course, there is Junk,
as the informal bulletin board is called. From complaints
about the strangely decreasing diameter of parathas in the
canteen, to the fact that employees have to waste some time
getting around the insignificant electronic blockades the
company has placed on cricket sites, this is the place where
HSSians say what they want-some with their name printed at
the end, others anonymously.
The company has also launched popular awards that reinforce
desired qualities of the HSS-employee: best trouble-shooter,
best mentor, and best leader. Each employee has a vote, and
the top 20 employees in each category are named. Goyal is
no doubt the most popular employee in the company; he has
so far won eight of of the 12 awards given. Recognition and
feedback are a constant refrain in employee-speak at HSS.
The company has a 360-degree feedback system in place where
each individual gets feedback from nine other people in the
company. Explains Anupama Babbar, Assistant Manager (Human
Resources): ''When we introduced the system, we wanted to
make it totally unbiased, which is why it is developmental,
not evaluative. That means the results are not used for promotions
or increments.''
Fun is accorded a high priority at the company. There's a
cricket club, an adventure club, and a dramatics club. The
last-mentioned staged a comedy, Veerappan in HSS, at the company's
annual Diwali bash last year. At an activities meet, you come
across employees who are strident in their demand for snooker
and table tennis tables, and badminton and tennis courts.
''We want to be able to write back to our friends in Infosys
and be able to show off.'' This inter-industry comparison
is something of an obsession at HSS, be it the more lucrative
options at HCL, or the great campus at Infosys.
The campus is another issue. Right now, the HSS facility
is just four buildings interspersed with roads of the kind
we have already talked about. A campus figures in CEO Arun
Kumar's radar, but he doesn't want to talk about it till it
happens. All he says is: ''When we built our first facility
it was the best in the industry. Today, we have outgrown it.
Tomorrow, when we build our campus, it will again be a trendsetter
in the industry.'' Yet, when you question the cribbers why
they joined HSS if they knew the salary and options were not
really best-in-class, and the campus, much smaller, the answer
is categoric: the work. Most employees know they are working
on cutting-edge projects that they may not have access to
in other places.
As far as stock options are concerned, the fact that the
major manpower expansion has happened in the one year after
the IPO, has led to some anxiety among employees. The company
gives options only to freshers who have been with the company
at least six months, and the quantum is based on performance.
All those who got shares pre-IPO got them at a discounted
price of Rs 30 and Rs 75, and, therefore, made a lot of money.
But all those given shares post-IPO get (and got) them at
market prices. Says Vimal Khanna, CFO, HSS: ''Our system is
fair; you have to take a long-term look at how the stock will
appreciate. And we do give our star performers more.''
Manpower is definitely a problem, but that's something endemic
to the industry. The fact that HSS concentrates on offshore
work is one of the reasons it tends to lose a lot of engineers
who have stars and stripes in their eyes. Setting up some
sort of facilities in other markets is something the management
admits it will have to consider. Says Vinod Sood, Vice-President
and Head (Engineering): ''There are a lot of people we lose
to the US who would be interested in joining us again if we
could employ them abroad.'' An emphasis on products is part
of HSS' business strategy. By moving into projects, the company
can earn higher margins. Besides, in software services, the
IPRs of all the work the engineers do is with the customers
not the company. By shifting to products HSS can sell the
same technology to more customers and make more money on the
work its engineers are doing.
Corner-Room View
Arun Kumar will brief you on the deep attachment with India. A HNS employee, he runs the show for all Hughes
ventures in India. An IIT-Kanpur alum, he tells you about
the cluster of Indians in HNS, including Chairman Pradman
Kaul. HSS, for those who came in late, had three articulated
objectives when it started ops in 1992. One, it would start
by supplying to only HNS, but would grow by developing non-HNS
customers. Two, it would start with services, but later move
on to products-the idea being to become the Microsoft of India.
And three, it would attain a more independent status. So far,
things have moved just according to the initial blueprint.
Until 1996, all work done by the company was for HNS; today,
only 56 per cent is. As far as products are concerned, this
year, 20 per cent of the company's revenue will come from
products. This figure will eventually reach 50 per cent. And
post-IPO, HNS' holding in HSS went down to 56 per cent.
Meeting Kumar is what gives you the perspective on HSS. He
explains the synergies the company enjoys with the Hughes
Electronics family, and the direction in which it is moving.
Clearly he's the one who steers the boat, albeit, without
making too much noise. Getting hold of him is a tough job,
but once you've got him he has lots to say. He's very quick
to point out that there's no harm in being low-profile and
under-stated; he's a CEO, not a showman. Dancing at press
conferences is not something you can imagine this man will
do. But catch him boogeying to Colonial Cousins at the company's
Christmas bash and it shows that the HSS spirit of fun and
flexibility percolates from the top down.
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Why
Hughes Is Number 5
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Following a
yellow HSS balloon perched on top of the building is the
easiest way for visitors to locate the HSS campus. For
employees, who use company provided buses to reach the
campus, what awaits them is an environment, which is open,
friendly, warm, non-hierarchical, and flexible.
Campus relationships are built ''virtually'' through
the HSS website, which includes features such as dates
for placement and a section on career counselling. All
new recruits undergo an eight week long induction program,
Oasis, which is a combination of both technical and
non-technical training. Lateral recruitment is made
effective through the employee referral program, where
bonuses range from Rs 7,500 to Rs 30,000. Last year,
33 per cent of the 9,000 job applications received were
through employee referrals. The internal job posting
program, where openings are posted on the intranet has
been a great success here: over 100 positions have been
filled this way. The flexibility to change roles within
the company, thereby reducing the need to look for a
job change, was cited by a number of employees as something
that make HSS a great place to work in the employee
survey.
HSS' pay is competitive, positioned at the fourth quartile,
and reviewed every six months; all employees are also
offered stock in the company. What is strikingly different
is the incentive program for managers, which besides
using corporate, functional, and individual measures,
also has one on leadership, which includes people-related
variables like retention, development of employees,
employee relations, performance management, and career
planning. An integral part of the HSS culture is the
recognition of employees: from informal and easy-to-use
methods of recognition like e-greetings with readymade
templates available on the employee-portal Anthra, to
formal awards for the best sense of humour, outstanding
performance, or adherence to company values. When they
complete their first year with the company employees
are presented with a watch; when they complete five
years, they (and their families) are given a company-paid
holiday. Other forms of recognition include both cash
and non-cash components like holidays, gifts, parties,
and certificates.
HSS gets all HSS employees as well as their families
together while celebrating events, big or small. Some
regular celebrations include the company's anniversary
party, the quarterly results celebration, parties associated
with different festivals (like Diwali and Christmas),
annual picnics, and sports meets. To encourage communication,
regular skip level meetings are conducted between the
employee and a member of the senior management team,
where employees have a frank and open discussion on
all things related to the their professional life, right
from the quality of the cafeteria-food to project-related
issues. An action plan with time-lines to resolve the
issues is drawn in the meeting itself.
HSS' contribution extends both to the environment and
the society. One environmental initiative is the recycling
of all paper used. Charity boxes are visible all over
the campus, encouraging employees to contribute to different
causes. The company also contributes to different charities
and funds on a regular basis.
-Madhavi Misra and Purva Misra, Hewitt
Associates LLC
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Last updated : October 27, 2004
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