Two years of consecutive turnover rise in the recession era have given BHEL (ranked #14 on our wealth creators list) a hard-earned lead over competitors. M. K. Dubey, Executive Director, BHEL, talks to B&E
B&E: Last year, while on one hand BHEL gave VRS to its employees and closed vacancies, on the other it recruited 500 people. Can you explain such a clearly contradictory HR decision?
M. K. Dubey (MKD): There are two reasons behind these decisions. First is that with the change in our strategies, BHEL needed more manpower. So, we hired more people. The second is the demand assessment for the future. Also to be able to increase efficiency, people with new mindsets needed to be trained with the ones that were already working in the organisation. This was done so that the new people get fully trained by the time the existing ones leave. As part of this strategy, more than 500 young individuals were hired by BHEL for the core segment. Even amongst those hired, only the ones with engineering diploma and/or degrees were recruited.
B&E: Earlier, there was nothing called ‘competitive threat’ to the protected public sector enterprises. Is the situation the same as far as BHEL is concerned?
MKD: No, not at all. We are in a kind of an environment where BHEL has to face stiff competition from private players. There are private players like Crompton Greaves, Alstom, Siemens, L&T, Areva, ABB, Telik et al, which compete with us.
B&E: It’s said that this competition has had a big impact on BHEL...
MKD: Yes, there has been a lot of impact, but in a positive way and not necessarily in a negative way. BHEL, in fact, has been able to improve on its work efficiency due to competitive pressures. We have also started to give importance to our expansion plans. But most important of all, competition has made us realise that most of our clients are faithful to us. Since most of BHEL Bhopal plant’s customers are private players, we understand that they are sticking on with us due to their loyalty towards us.
B&E: But many of your customers and employees have opted to shift to private companies...
MKD: Many a time, the work load with us becomes very high. That is why employees, who cannot handle such a workload leave. As far as our customers go, you would have seen that in many past situations, our once lost customers have come back to us. I don’t need to say anything more about this...
B&E: Last year, while on one hand BHEL gave VRS to its employees and closed vacancies, on the other it recruited 500 people. Can you explain such a clearly contradictory HR decision?
M. K. Dubey (MKD): There are two reasons behind these decisions. First is that with the change in our strategies, BHEL needed more manpower. So, we hired more people. The second is the demand assessment for the future. Also to be able to increase efficiency, people with new mindsets needed to be trained with the ones that were already working in the organisation. This was done so that the new people get fully trained by the time the existing ones leave. As part of this strategy, more than 500 young individuals were hired by BHEL for the core segment. Even amongst those hired, only the ones with engineering diploma and/or degrees were recruited.
B&E: Earlier, there was nothing called ‘competitive threat’ to the protected public sector enterprises. Is the situation the same as far as BHEL is concerned?
MKD: No, not at all. We are in a kind of an environment where BHEL has to face stiff competition from private players. There are private players like Crompton Greaves, Alstom, Siemens, L&T, Areva, ABB, Telik et al, which compete with us.
B&E: It’s said that this competition has had a big impact on BHEL...
MKD: Yes, there has been a lot of impact, but in a positive way and not necessarily in a negative way. BHEL, in fact, has been able to improve on its work efficiency due to competitive pressures. We have also started to give importance to our expansion plans. But most important of all, competition has made us realise that most of our clients are faithful to us. Since most of BHEL Bhopal plant’s customers are private players, we understand that they are sticking on with us due to their loyalty towards us.
B&E: But many of your customers and employees have opted to shift to private companies...
MKD: Many a time, the work load with us becomes very high. That is why employees, who cannot handle such a workload leave. As far as our customers go, you would have seen that in many past situations, our once lost customers have come back to us. I don’t need to say anything more about this...
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
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IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
