Too much Financial Control in organisation.

I have worked with many organizations and each company has its own way of controlling finance.
In some companies we never know who is in finance as as all the decisions related to cost and benefit are taken care by Delivery or direct management.
There are some organisations where Finance has say in everything. This type of management is dangerous for growth of organizations.

I can't take the name of companies for legal reasons but i can quote an example how the finance nose the impact your organization.

A company has dedicated Travel department to book the travel tickets for employees. A request is raised by the employee and it goes for approval to Line manager. Now request is moved to second line manager could be Delivery manager, approves the travel. But before this second line manager could approve they need a thing called budget. So the request goes to someone in Finance (business finance manager) to allocate the budget. Wait a second before this BFM could approve the request they need money at account level. So the request goes to someone AVP level to allocate money to account level. So BFM approve the amount. And Second line manager approves it finally.

This entire process can take 2 weeks or sometime forever if the person who wants to travel does not chase these folks. So ultimately the travel date nears.

Travel booking team books the ticket what ever is cheapest at the moment. So it could be the 3 time higher amount if the tickets could have been booked 2 weeks before as it is a last minute. Similar thing happens with Accommodation arrangement higher price are paid for hotel booking in last minute booking.

This kind of complex decision making process ends up with,

1. Poor money management
2. Poor results
3. Too much actual cost considering too many people's salary, process, system, last minute cost
4. Low employee moral
5. Low customer confidence
6. Missed revenue and missed opportunities
7. Damage to company image.

Above is real life example how having too much financial control could jeopardize your goals to become successful organization.
  

Certificate of Coverage from EPFO in India

Introduction 

The Government of India has executed an agreement with many countries on Social security. They have signed similar agreement with Australia effective from 01/07/2015.

As per agreement employee can avail a certificate of coverage from the designated authority from home country. This certificate needs to be submitted to foreign employer upon joining such service as an evidence of coverage of social security at home.

EPFO is authorized to issue such certificate for Indian employee who are going to work in foreign country under the same employer or their foreign subsidiary. 

How to generate Certificate.

1. Access online application for COC using following link. http://search.epfoservices.org:81/IWU/coc_application.php
2.  After filling all the details, click save tab then the form will automatically convert into pdf and reference number will be generated on the application form on right side.
3. Take a print of the form. Submit to your employer for attestation.
4. Submit the signed copy to EPFO regional office along with your Passport photocopies. 
5. Regional office will verify the details and issue certificate of coverage. 
6. Submit the certificate to foreign employer subsidiary or concerned department.

What are the benefits of having COC?

Foreign employer will not deduct any kind of Provident fund or Superannuation contribution from your payroll after submitting certificate of coverage. 

Countries like Australia where superannuation is heavily taxed. Employee will be receive such money on normal tax rate along with payroll.

Y

You

A

What is right time?

A great quote by Barack Obama “If you run you stand a chance of losing, but if you don’t run you’ve already lost.”

All of us are not born manager nor born to work only with one organization. Working with some company is not like your marriage. It means complete give and take relationship.

There could be many reasons to quit the organization. But what if you are aware it is time to quit and look for another one.

In this article, I am going to discuss with you all the early signs.

1. When you hear too much about company being is sick or is about to be sold or it is up for sale. Many will think it is rumor and nothing else. There are corporate managers who prefer wine communication to spread the real news rather making it public in an official manner.

2. Somebody is being given too much attention due to his/her flattery nature. Management seeks mediocre resource rather a technically sound. I believe it is time.

3. You're doing the same kind of work for a long time. You have asked your organisation to provide you with something new to work on. Your organization simply denies to provide you new roles and responsibilities.

4.  You have been working on the same pay or lower pay compare to your colleagues and market conditions. Your organization simply denies to provide you better pay irrespective your innumerable attempts. They gave you promise to provide you hike in next year and they do not honor their promise.

5. You are getting a better opportunity to work on better assignment and a new organization is offering you little bit pay raise you. Still it better to move on.

6. Many of us would have experienced that why I am coming to this office. There could be many reasons behind it. You may be ignored by your colleagues and superiors.

7. You are given with unachievable targets. These targets are measured with your performance. Everybody knows it is not possible, still they want to you to do it. It has only one meaning that they want you to quit. Generally happens in sales marketing profiles.

8. You often hear from your superiors they do not want people with HR issues. Remember there is nothing called HR issues. It is common phenomena to demotivate employees. It is a tool to harass you. HR issue means you do not flatter them.

Retaining talents in small setup

We all come across in a situation when we start feeling an anxiety to get out of an organization. It all happens because of various parameters that affects our day today professional life.

Small setups are generally hugely affected by outgoing talented resource. There could be several reasons when one would look for a change.
1. Distance
2. Travel time

3. Pay
4. Work Environment
5. Appreciation
6. Career Growth
7. Brand Image
8. Job Security
9. Work life balance
10. Leaves
11. Company policies
12. Management
13. Work Resource
14. Employee Development activities
15. On site work

List can go on an on.

A small setup can work toward above parameters  to improve attrition rate.

Distance and travel time are affected by the mode of transport Companies can offer pick and drop facility for employees. Alternatively if it not possible to provide such service they can offer like patrol incentive and can introduce car pooling kind of concept. So the employees will reach on the time to office.

Pay : It has been a debatable topic how much to pay. A start up has to offer to good pay to attract a good talent in organization. Also they should remember not to over pay somebody who is less qualified compare to other employees.  How to we judge who is less qualified. Simple answer is Year of Education, Education institutions, Number of years experience, Kind of work he or she has done in past. For example a person with undergraduate degree has 5 years of  work experience. Another person with post graduate education has 5 year work experience. In this case generally companies tend to pay equal which is incorrect. Because another guy has invested more in education so ideally he or she has total 2+5 = 7 year experience. This is one of the example where company tend to make mistake not to consider education.
You can pay equally to an accountant and clerk even though both have same experience.

to be continue....

Flattery and its effects on corporates

Every human being is once a while is affected by flattery word in either way of life. Flattery has many synonymous like Adulation, Blarney , Servility, Sycophancy , Cajole, Butter up , Pay Court to etc. In Hindi we called it Chaplushi. Now I am sure you must be clear. What do I mean to discuss here.

Birth
There are only two type of people in any corporate. One want to grow by shortcut and other by way of hard work and knowledge. Since world is very demanding. First kind of people do not hesitate to do things beyond that they are required to do. Desires to get quick success without work gives the birth to word called Flattery in corporate.

Story
Perhaps the best known story regarding the downsides of flattery is Aesop’s fable “The Fox and the Crow”, where a fox comes upon a crow perched on a tree branch, holding a piece of cheese in its beak. Eager to have that piece of cheese, the fox calls out to the crow and starts to flatter the bird about how attractive it is and how it must have the most beautiful voice of all the birds. The fox asks the crow to sing a song so that the fox could enjoy its beautiful voice.
The crow, caught up in the flattering remarks being given by the fox, opens up its mouth and lets out a squawk, causing the cheese to fall from its mouth down to the ground where it’s snatched up by the fox. As the fox walks off with the cheese, he tells the crow “Do not trust flatterers”.

Effects on person subject to flattery
Prof. Sengupta of Harward says Flattery, has an insidious ability to worm its way into the unconscious, where it creates persistent feelings that could affect the outcomes of all kinds of business interactions, from job interviews to sales to boardroom presentations.'
Even Subject's conscious mind knows that they are being flattered by the opposite person. Still they are obliged to listen from the other person due to their unconscious mind which likes flattery.

One who is subject to flattery can learn a good concept from below quote.

  Flattery is like chewing gum. Enjoy is but don't swallow it. - Hank Ketcham 

Effects on Corporate

Flattery Corrupts both the receiver and the giver -  Edmund Burke 

Knavery and Flattery are blood relation. -Abraham Lincoln 

Any thing which is bad in nature will always have bad effects. Same concept applies here as well. People who are dishonest and corrupt in nature like to receive and give flattery. Flattery has ruined several empires in past. Due to flattery management chooses to close their eyes for several issues which could have adverse effects on the growth and stability of the empire.
Since flattery is involved as human level, first adverse effects also starts with human working for organization. Employee iteration increases, People who wish to stick with organization start working toward a common goal flattery. Thus organization goals gets neglected. Vision and Mission of organization are never full filled.

Size of organization does matter ?

There are different approach of pursuing career by an individual. Some may land up working with a Large organizations or some with a small in terms of number of employees. Since I come from Information Technology industry. I have made few observations after working with different type of organization.

Working with a small organization has its own merits and flaws.  An organization could be a service or product oriented or both. Since service oriented company has always scope to grow in terms of large head count.  It is opposite when it comes to a product company.  You may not need a army of thousands to develop a best product. It is generally done by a bunch of people. Let say few hundred.

When people join a small organization they come with an expectation of  big growth in career. I have observed that there is difference in approach of working in IT industry within India and rest of world. People in other countries may be working on a same position for a longer period. But in case of India doesn't work. People have to grow with the years of experience on the ladder of management in a company.  But questions is How many people we need as people manager in a small company ? How many lead positions we can afford to in small bunch of organization. If employee knows that he will not grow in long term in term with company.  They may start looking for different opportunities where they can grow.

Now Question is how to retain these people?  Well It always depends on management how they want to mold their company. Identifying a right people as a leader is very important for the success of a organization.
Lead should not be one who does not understand business at all. Lead should not be just a people manager.  Lead should be awarded with responsibility with authority to work. Authority to groom and build a team. People always look for road map of their career. if there is a good lead to groom them it may work for small company.
So It is very important for a person to decide on the size and type of organization based on his or her career aspirations. 

Human Transactions - Give and Take.

Today, I learned a basic but very important concept about the society from a book. It talks about the human transactions. It says ' If you want to understand a person's character look closely at their interpersonal behaviour or their transactions.' Transactions are interaction between two people. It is about give and take.

Above concept is very basic and can be applied in any where in your life. Whether be it your family, friends or your colleague.

Now if you are manager or employee you must be thinking what should it give in return to complete transaction. 

Employee : As a employee you are obliged to perform your duties toward achieving the common goal of organization. Sharing knowledge with your peers and motivating your subordinates. It doesn't mean that a employee should indulge himself in sycophancy to his managers , peers or subordinates. 

Manager : As a manager you can complete your transaction by completing duties towards your organization, your peers and your subordinates. To complete the transaction from employee side a manager should also complete his or her transaction by motivating or acknowledging. 

I will look forward your comments.