Professional Qualification in Human Resources Management

Institute of Personnel Management Sri Lanka

Professional Qualification in Human Resources Management Stage: One / Module 01 Session: 1.0 Management Case Study (FALL OF EMPIRE) Batch No: PQHRM/KR/02

Student Registration No: PQHRM/KR/02/09

TABLE OF CONTENT

1.0 03 2.0 3.0

Acknowledgment

Executive Summary Discuss about the leadership approach of Rolex Mudalali and how the company was benefitted for many years with his self-learned management skills.

04 05-14

4.0

What are the short comings of the new approach by young directors and their team in the change process?

15-19

5.0

Being the HR Manager, what is your proposal to young directors to implement best HR practices and process in this 30 year old company with over 2000 employees?

20-24

6.0

List of References

25

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1.0 ACKNOWLEDGEMENT

The case study you are about to read will not be an individual effort where I would like to get the credit. It consists of knowledge, support, encouragement, insight and convictions given by different people and nature to enrich years I have lived and to contribute to fill the empty bottle I refer to who I am and the Label of that bottle which I refer to how I present myself in this competitive world. Hence what I present to the world and the attitude towards everything I do solely depend not on me but what I am filled within. I thank my parents for bringing up this empty bottle to the world and starting and continuing to fill up to now and I rely upon to be filled by them always in future to make me the best. I also thank my teachers, elders, friends and all who showed me the right path and the way of life. I was privileged to have our lectures at IPM, for all their advices, support and assistance and all staff at IPM.

.. H.G.A.M.R. Gamage Professional Qualification in Human Resources Management Institute of Personnel Management Sri Lanka

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2.0 EXECUTIVE SUMMARY In the context of the Business Empire brought up by the hard work of Rolex mudalali & his team of workers, we can clearly see that paper education does not matter when it comes to real life scenarios. In this case the important spirit of success was the attitude and practical knowledge of Rolex mudalali and his foresighted vision towards the years to come. We can note that his approach towards the business was all about Look after your people and they will look after you and your business. Rolex mudalali considered his people as the number one asset in the business and did the best he could do to maintain and develop the human asset at the best state. Rolex mudalalis main business was nearly 20 years old and had the market share of 70% in the biscuit industry locally and his products were reaching over 20 countries around the world including United States of America. He had the ability to be in diversified business categories along with the main business. His far sighted vision is proved by his decisions towards educating his children in IT and Fashion designing fields, since these fields have emerging business opportunities worldwide. Also educating the children of his workers can also be considered as a foresighted vision towards gaining loyalty of existing workers and their families along with strengthening up the future employees of his business with proper education since the world is highly competitive. He knew that if he educated the children of workers properly he would have them in his business in future as loyal employees without the trouble of selecting trustworthy people from the job market for the future work force. The fall of business started when Rolex mudalali thought of having his retirement by handing over the business to his children. Business was handed over without proper guidance about its culture and with no close monitoring for a time period until they learnt the needful. This was the only unwise decision Rolex mudalali took all over his business life as I feel. As per the observation this must be due to the idea that Rolex mudalali had about having a retirement and relief since he ran the business for around 20 years. This decision bundled up with the actions taken by his children ended up in collapsing the Business Empire of Rolex mudalali to bankruptcy. Page 4

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3.0 Discuss about the leadership approach of Rolex Mudalali and how the company was benefitted for many years with his self-learned management skills.

Leader

Follower

Leadership Of Rolex Mudalali

Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. Rolex mudalali carried out this process by applying his leadership attributes, such as beliefs, values, ethics, characters, knowledge, and skills. Although the position as an owner, gives the authority to accomplish certain tasks and objectives in an organization, this power does not make a leader. It simply makes the position Boss. Leadership differs in that case; it makes the followers want to achieve high goals, rather than simply bossing people around. When we consider Rolex mudalalis character, it is clear that he was a person who knew the pulse of his people and a person who took care of his employees, guiding them by showing the path, blending with them to understand them; to care for them, molding them when needed and developed them and their future as a father rather than a businessmen. Lets see how we can conclude Rolex mudalalis leadership into leadership theories. Basically we can identify that Rolex mudalali had a mix of leadership styles according to blend with the situations, having the best interest for his followers.

Autocratic or authoritarian style Participative or democratic style Paternalistic style

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Autocratic Or Authoritarian Style Of Rolex Mudalali

Under the autocratic leadership style, all decision-making powers are centralized in the leader, as with dictator leaders. They do not entertain any suggestions or initiatives from subordinates. The autocratic management has been successful as it provides strong motivation to the leader. It permits quick decision-making, as only one person decides for the whole group and keeps each decision to himself until he feels it is needed to be shared with the rest of the group. Lets discuss this style in Rolex mudalalis business considering the decisions made and the benefits gained towards the company by autocratic approach.

Decisions Made Throughout The Business As An Autocratic Leader Culture of not to hire professional managers to run business activities. Appointing his twin children as directors in order to run the business as a sudden decision. Changing the culture of not having professional managers towards having two directors as a sudden decision. Followed by which professional managers were hired to run the business activities by the directors which suddenly changed the way of activities. Sudden retirement of Rolex mudalali from business activities.

When we consider the above decisions made, it is clearly noted that the autocratic leadership was one main ingredient in the rise of the business while also being the main reason for the downfall of the business empire of Rolex mudalali.

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Benefits Gained By Autocratic Approach Quick Decisions An autocratic style of leadership can be effective in work environments where decisions need to be made quickly. The sole responsibility rests with the leader, and he makes the decision without the need to consult others. Since Rolex Mudalalis business faces constant changes due to the competitiveness in local and foreign markets, the autocratic style gives the ability to respond in a way that prevents the business from falling behind the competition and keeps up with customer demand while satisfying the work force. This is very essential to gain business growth and to keep employees happy by giving quick solutions with regard to their matters. Close Oversight In an autocratic work environment, the leader typically keeps a close watch on the activities of the workers. This eliminates the tendency for workers to "slack off" that may occur with more lenient management styles. We noticed that Rolex Mudalali daily walks around the production floor exchanging few words with people he meets. This was his close monitoring method which was effective in rectifying issues and develops relationships with employees. The result can be increased productivity and speed, as workers who fall behind are quickly identified and corrective measures are taken. Quality may improve, as the employees' work is monitored. Time wasting and the need to waste resources are also reduced. Total Control Autocratic leadership can work well for leaders who prefer having complete control over an operation. Because the outcome is totally in his hands, the leader does not experience the stress of having to rely on help from outside his work area to complete the project or task. For this type of individual, having complete authority can actually result in reduced stress since he has complete control over his business. This is why Rolex mudalali never hired professional managers to run the activities. Instead he believed in himself and his work force to run the business. The work culture was built in a way that senior most employees acted as supervisors. PQHRM. Module 1.0 Case Study - Fall Of Empire | [PQHRM/KR/02/09] Page 7

Streamlined Work Process Because one individual has complete control over an operation, there is less of a need for layers of management or bureaucracy. This can make for a more efficient operation, as fewer people are involved in the decision-making process. The leader can quickly identify areas of inefficiency or malfunction before they turn into major problems. For example, if too much money is being allocated for the marketing aspect of a project, the leader can spot this quickly, so a less expensive marketing technique can be implemented.

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Participative Or Democratic Style Of Rolex Mudalali The democratic leadership style favours decision-making by the group as shown, such as leader gives instruction after consulting the group. They can win the co-operation of their group and can motivate them effectively and positively. The decisions of the democratic leader are not unilateral as with the autocrat because they arise from consultation with the group members and participation by them. When we consider Rolex mudalalis business we can see that under participative approach of leadership, he has encouraged the trend of senior employees acting as supervisors in order to keep operations smooth and strength up the fast decision making process by rectifying issues and educating other employees on activities and the business culture. Rolex mudalali believed and practiced the Open Door Policy for his Business. He knew that it guarantees the ability of the employees to directly seek assistance. The purpose was to encourage open communication, feedback, and discussion about any matter of importance to an employee.

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Benefits Gained By The Participative Or Democratic Style Employer/Employee Relationships Most employees want to feel like they are wanted in the workplace. They want meaningful work and want to be a part of the decision-making process. Under participative leadership approach by Rolex mudalali, depending on the seniority and experience, employees are empowered to step out of their normal role as labourers and become a part of the decision-making process as leaders in their work line. This eases tensions between employees and employer and creates a sense of team. Productivity will rise and the employees will be happier with the relationship. Leadership Discovery And Opportunity To Creativity When employees participate in the decision-making process, leader has the opportunity to see who is stepping up to the plate and who is coming up with ideas. This is a tool to identify employees with higher potential. Since the company is encouraging well experienced people to be leaders, employees are more motivated to do a good job and they follow and love the supervising leaders born among them rather than someone from out coming to the role of controlling them. Rolex mudalali identified that a new leader found within the company will be a valuable cornerstone for teamwork and creativity. Hence he never tried to get professional managers to do his business activities. Motivation All employees feel the need for motivation. Motivation is the key concept for change. People are naturally resistant to change, and leadership needs to find the proper theory to help people make the transition. Communication is the most important facet of motivation. If employees feel out of the loop, then they are less likely to concentrate on the main goal of the team or organization. With participative leadership of Rolex mudalali, the employee has more information and will stay more active in the change or decision process. He walks around the work floor each morning, sharing few words

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with people he meets since he knows that employers must initiate the communication as a show of faith to their employees. Team Spirit Since employees have a position and input in the decision-making process, the sense of involvement is not just felt individually but is felt as a team. If potential negative circumstances are involved in the decision that is to be made, team-centered involvement will allow Rolex mudalali to be informed more fully of the pros and the cons. Communication is still important. Since Rolex mudalali is interacting with people in a more meaningful way, when he finally makes a decision, the work force is prepared for it; and with its participation, the stress and resistance to change is diminished. Employee Productivity Studies have shown that there is a co-relation between participative leadership and productivity. There is a suggestion that through communication and participative leadership high-quality performance can be obtained. Leadership that practices the participative model has higher ratings as managers than leaders who manipulate their employees. Participative leadership begins a cycle of productive leadership and productive employees. This cycle increases company profitability and allows for internal growth. As a result company grabbed 70% of the local industry while achieving the foreign markets too.

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Paternalistic Style Of Rolex Mudalali This is basically the main style of leadership that Rolex mudalali follows. During his entire business life, we can notice that he considered his employees as the best asset that he possesses and tried to do the maximum for their welfare and their families. Paternalistic leadership is an approach that is based, intentionally or unintentionally, on the idea that the leader is in a better position than the followers to know best what is good for the organization, or the followers. In a nutshell it's the "leader as expert father figure". The strong belief that a leader "knows best" (when it is held by the leader) can lead to catastrophic results. That said, leaders should recognize that part of leadership is being "in front", rather than "leading by consensus", or "leadership by poll".It's also important to be aware of the fact that many people who would be in a "follower role", may want to be lead by someone who they perceive "takes care of them". Rolex mudalali identified these things from his experiences. Hence he implemented the following to take care of his employees, having in mind that people are the best asset he possesses in the company. Distribution of dry ration pack worth Rs.1, 000 to all the employees. Salaries above the market rates. 02 month bonus just before Sinhalese & Tamil New Year. Soft loan to purchase a motor cycle for employees completing 05 years. Selecting the employee of the year and gifting a plot of land yearly. Educational assistance for employees children in way of scholarships and providing books and accessories for the neediest children.

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Benefits Gained By The Paternalistic Style While he concentrated on employee welfare, we can also notice that he had a far sighted vision. Through the welfare plan he achieves the loyalty of employees while achieving few other gains automatically. Lets discuss on what Rolex mudalali had in mind about the future of his business along with his people. Employee Welfare And Loyalty As I feel, Rolex mudalali had a mindset about satisfying the employee and their families at the same time. The ration pack is a stimulus to win the heart of the workers and their families. His intention was to have a healthy work force while reminding them and their families that he takes care of them. High salaries were used as a measure to attract employees and reduce turn over. By giving 02 month salary as a bonus upon New Year season, he wanted his employees to have a better state when it comes to their spending matters and happiness during a cultural time where the expenses are high. When it comes to the soft loan scheme and selecting the best employee of the year and gifting a land plot is a motivational factor for the employees. This encourages them to achieve higher targets and to retain in the company to get better benefits. Employees of the company love Rolex mudalali as a father and a great leader since he looks after them and this feeling encourages the belongingness and team work, ensuring higher productivity and the good will of the company. Advertising And Increase Of Good Will . Rolex mudalali expected the word of mouth to increase the Good will of the company by adopting a Paternalistic style. This is a cost effective marketing strategy when it comes to promoting the company as a great place to join for work and an ethical business to buy products from.

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Foresighted Vision Towards Future Work Force Rolex mudalali had a foresighted vision towards a successive future. This is the main reason for promoting children of his employees to get a better education and to rely upon him for higher education. This creates loyalty and love towards him from employees and their children. The ultimate result is that these children will end up working for him. So this can be considered as an investment in the future work force. He did not intend to give any special training to his existing work force since he knew that these people are not well educated but sufficiently experienced to carry out the work. But he also knew that the same trend cannot be continued since the world is more competitive day by day, demanding high educated work force in companies. Hence he took corrective actions towards a successful future.

When we consider the detailed approaches and benefits gained by them, we can conclude that the leadership approach of Rolex mudalali kept the company in the right path day by day with immense growth. Also we can identify the immense knowledge Rolex mudalali had to run diversified businesses with the correct approaches to enhance the growth of his Empire. Rolex mudalali sets an example to show that book knowledge does not run a company, but the correct approaches and knowledge gained over years.

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4.0 What are the short comings of the new approach by young directors and their team in the change process? When we consider Rolex mudalali and his vision, we can see that he is a foresighted person with the knowledge to achieve his targets. When he sent his twin children to India to get professional knowledge in IT and Fashion Designing, he already had a plan ahead in his mind. India is among the world leaders in IT and Fashion Designing education. Since these are potential and emerging areas, it is an advantage to have knowledge in those if you are in a diversified and changing business culture. Rolex mudalali planned on preparing his children in those areas since he knew that IT will play a big role in the near future in his productions and since he carries out his business in apparel line, it is good to have his children educated in IT and Fashion Design so that they can seek better business opportunities easily using IT and Fashion Design knowledge. Also he identified that his children will have the opportunity to meet people and build up important contacts which are required to get his business empire more successful. Having all this in mind and due to the tiresome feeling he had after running a business for 20 years and more, he wanted a relief when his children arrived back to Sri Lanka. Since he was planning to get his retirement from a long time, he thought of getting the retirement right away and let his children run the business. Twin children were appointed as Director Operations and Director Marketing while Rolex mudalali washed off his hands from responsibilities and got his retirement. This was a sudden move which resulted in two inexperienced people with no sufficient knowledge trying to apply theoretical knowledge to run a business empire in a practical world. Lets discuss about the short comings of the approaches they adopted in order to run the business.

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Failing To Understand The Culture The first thing to understand is the culture of an organization when a successful business is handed over to a leader. The business should have good values and an effective culture to sustain for decades and it should be identified and studied. Then leaders can decide on the areas that should be rectified. In this business, Roshan and Roshani being highly educated people didnt take notice of the analyzing part. Without doing a basic analysis, they tried to implement what they learnt on books. It was ineffective. Unsuccessful Cost Management Within the first week itself they spent heavily on bringing the things they wanted into the work flow instead of what is really needed. Without seeking any guidance from Rolex mudalali and existing senior employees, the Directors tried to do things as they pleased. Heavy cost burdens were brought up on the company in way of unproductive means. We can conclude those as follows. Air conditioned rooms for Directors and six managers. Unnecessary foreign trip of Roshani with the marketing manager. Heavy cost on consultancy fee in order to make the vision and the corporate plan. Heavy cost on printed material related to vision statement. Training measures without focus on results. Cost burden on hiring foreign training consultants. Time waste in unfocussed seminars and meetings, affecting production time.

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HR Own Rights One of the biggest problems I see is that the two directors are not competent enough to run the business in the positions they have got entitled with. They recruit their classmate friends as managers where they fail by not having the right person, right place and at the right time. If they are going by theories instead of practice, they should know that recruitment should be done in a proper procedure and as per the requirement of the organization. Not as per the individual needs.

Hiring Unqualified "HR" Personnel To have a proper HR practice, the person who is appointed as the HR manager should be a good leader and rich in communication skills. This business has some good practices over years. So it is all about polishing them and adding what is not there. Instead of doing that the company implemented a system which was an alien to existing workers. These sudden changes discourage workers and kills productive time over the implementing process. HR Misconception This is where employees trust over the management starts to loosen up. Sudden changes like putting up a vision and a mission and continuous changes in procedures may let the employees feel that the management and the HR function is not working properly. In clear words they will feel like these people have no idea about what they do and would not respect management decisions and tend to be unsatisfied. It is a very harmful situation when it comes to efficiency of the work force. HR should have a clear plan about the things they implement and everything should be cost effective and return oriented.

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HR Is One-Sided HR should consist with employee concerned measures and ways since the best asset of the company is its human asset. But it is clear that the new management is not paying attention about the pulse of the people or respects their ideas. It is the main reason which results in unsuccessful training programs which are of high cost nature. Tall Structure In Reporting Lines Previously employees were used to work under one person. Now there are new comers to whom they should report. Employees may understand that these people are not equipped with the right knowledge relating to the company. So they will not seek their opinion. Also the culture of supervisory positions being available to senior employees is not there anymore. This discourages senior employees of the work force and the workers will not communicate properly with people whom they are not used to. This system will also promote the feeling that people who are senior in the company will not have a prospering future since the management tends to disregard their involvement. Payroll Mistake The payroll system was a stable system before the new management took control. It was clearly defined and people were treated equally. When implementing new schemes, management should consider changing slowly instead of drastic changes. Employees should get some time to understand the schemes. The result of sudden changes will be considered as measures to cut down salaries of the work force. This is a huge mistake when it comes to managing a business properly. Payroll system should be fair and should be clearly defined. Lack Of Man Power Planning It is clearly noted that the new HR plan had no intention on man power planning and reducing the turn over when it starts to rise. A proper plan for man power

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should have been implemented and periodic reviews and corrective actions should have been taken. Absence Of Clearly Defined Targets And Goals The workers were informed that salary incentives will be based on productivity and the bonus will depend on performance appraisals. But the said plan to be effective there should be clear targets. Workers were not informed about the standard targets and goals. This clearly shows that though management tried to apply the theory they were not trying to understand where the company stands and what measures should be taken to develop the production. No Proper HR Administration And Counseling In the previous system employees had the chance of communicating their matters to the management directly. Since the new management is busy with implementing theories to business they lost the sense of practical management. Employees did not get any successful way of communicating their matters or to get solutions. This creates a stressful working environment leading to inefficiency. Work Via Personal Feelings Throughout the managing process under the new management, it is clear that all the decisions are not taken as per the organizational need but as per individual needs. Bringing personal judgments into business decisions will not take the company in the right path. On the long run it will deliver negative results towards the organization. In a nutshell, of will surely business to be within a very time. This having this type management lead the unsuccessful short period of blind

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management style finally resulted in the downfall of a business empire of 3 decades within few months.

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5.0 Being the HR Manager, what is your proposal to young directors to implement best HR practices and process in this 30 year old company with over 2000 employees? When we look at the business of Rolex mudalali, we can note that it has its own values, cultures and processors. So it is a must to keep all these in mind; place everything in order and change what is needed to achieve perfection. Before implementing any plan it is necessary to conduct a survey on what employees expect from the company and their attitudes. Keeping that in mind the HR practices and process should be carried out. After analyzing the company as a whole I may suggest the following in order to implement best HR practices and process to the company. We have to keep in mind that HR practices have to change according to the business and the environment where its being conducted. Or else we cannot arrive at the best tailor made solution for the company. Let me suggest 12 essential points to ponder and to further develop out of existing practices.

1. Safe, Healthy and Happy Workplace Creating a safe, healthy and happy workplace will ensure that employees feel homely and stay with the organization for a very long time. Capture their pulse through employee surveys. Suggestion - Already most of these things are in place. Employee surveys should be carried out by appointing a person for the position Employee Relations officer and Counselor. It will be cost effective rather than comprehensive surveys. Also it will make employees comfortable and fulfill the need of communication among employer and employee. Small matters can be counseled easily and bigger issues can be taken up to the management quickly by this method. This will replace Rolex mudalais habit of talking to employees on a daily basis and add few advance features to it.

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2. Open Book Management Style Sharing information about contracts, sales, new clients, management objectives, company policies, employee personal data etc. ensures that the employees are as enthusiastic about the business as the management. Through this open book process company can gradually create a culture of participative management and ignite the creative endeavor of the work force. It involves making people an interested party to strategic decisions, thus aligning them to business objectives. This is a step to take forward Rolex mudalalis Open Door Policy ahead. It helps in building trust and motivates employees. Employee self service portal, Manager on-line etc. are the tools available today to the management to practice this style. 3. Performance linked Bonuses Paying out bonuses or having any kind of variable compensation plan can be both an incentive and disillusionment, based on how it is administered and communicated. Bonus must be designed in such a way that people understand that there is no payout unless the company hits a certain level of profitability. Additional criteria could be the team's success and the individual's performance. Never pay out bonus without measuring performance, unless it is a statutory obligation. Suggestion- Senior Employees of certain work lines may be announced with a position Team Leader instead of them doing the supervising without a proper recognition to it from the company. This will enhance the mutual recognition they already have. Companys targets and expectations can be communicated to the work force through team leaders. This will help to have accurate communication and suggestions of team leaders will be of high value when it comes to decision making. This system will help out in making awareness about what the new management expects and helps to achieve the standards in the processes. Team leaders should be motivated to carry a positive message to others about the performance linked bonus system instead of the fixed bonus. This attitude change is essential since this is a change of an existing system.

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4. 360 Degree Performance Management Feedback System This system, which solicits feedback from seniors (including the boss), peers and subordinates, has been increasingly embraced as the best of all available methods for collecting performance feedback. Gone are the days of working hard to impress only one person, now the opinions of all matter, Every person in the team is responsible for giving relevant, positive and constructive feedback. Such systems also help in identifying leaders for higher level positions in the organization. Managers could use this feedback for self development. 5. Fair Evaluation System for Employees Develop an evaluation system that clearly links individual performance to corporate business goals and priorities. Each employee should have well defined reporting relationships. Self rating as a part of evaluation process empowers employees. Evaluation becomes fairer if it is based on the records of periodic counseling and achievements of the employee, tracked over the year. For higher objectivity, besides the immediate boss, each employee should be screened by the next higher level (often called a Reviewer). Cross - functional feedback, if obtained by the immediate boss from another manager (for whom this employee's work is also important), will add to the fairness of the system. Relative ratings of all subordinates reporting to the same manager are another tool for fairness of evaluation. Normalization of evaluation is yet another dimension of improving fairness. 6. Training And Development Programs Training programs should be carried out to the needy employees if they cannot be trained through the team leaders. Periodic reviews on training needs should be carried on and team leaders should be trained accordingly. This will be a cost effective method and the knowledge will be transferred to all the employees through team leaders. This should be done on a Quarterly and Yearly basis as per the need of the company and the changing environment.

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7. Knowledge Sharing Adopt a systematic approach to ensure that knowledge management supports strategy. Store knowledge in databases to provide greater access to information posted either by the company or the employees on the knowledge portals of the company. When an selected employee or a team leader returns after attending any competencies or skills development program, sharing essential knowledge with others could be made mandatory. Innovative ideas (implemented at the work place) are good to be posted on these knowledge sharing platforms. However, what to store and how to maintain a Knowledge base requires deep thinking to avoid clutter. 8. Human Resource Information System. (HRIS) Human Resource Information System (HRIS) is a software or online solution for the data entry, data tracking, and data information needs of the Human Resources, payroll, management and accounting functions within a business. Normally packaged as a data base, hundreds of companies sell some form of HRIS and every HRIS has different capabilities. HRIS should be picked carefully for the company based on the capabilities you need in your company. Suggestion-The Human Resource Information Systems (HRIS) should provide,

Management of all employee information. Reporting and analysis of employee information. Company-related documents such as employee handbooks, emergency evacuation procedures, and safety guidelines. Benefits administration including enrollment, status changes, and personal information updating. Complete integration with payroll and other company financial software and accounting systems. Applicant tracking and resume management.

For the guidance needed for the implementation of the HRIS and other related software requirements of the company may be referred to Director Operations since he is an IT professional. PQHRM. Module 1.0 Case Study - Fall Of Empire | [PQHRM/KR/02/09] Page 24

9. Highlight Performers Create profiles of Monthly top performers and make these visible though company intranet, display boards etc. It will encourage others to put in their best, thereby creating a competitive environment within the company. If a systems approach is followed to shortlist high performers, you can surely avoid disgruntlements. It is recommended to continue the Best performer for the year along with a suited gift plan such as a cash incentive. 10. Open House Discussions And Feedback Mechanism Ideas rule the world. Great organizations recognize, nurture and execute great ideas. Employees are the biggest source of ideas. The only thing that can stop great ideas flooding your organization is the lack of an appropriate mechanism to capture ideas. Open house discussions, employee-management meets, suggestion boxes and ideas capture tools such as Critical Incidents diaries are the building blocks that can help the Managers to identify and develop talent. 11. Reward Ceremonies Merely recognizing talent does not work, you need to couple it with ceremonies where recognition is broadcast. Looking at the incentive is often less significant than listening to the thunderous applause by colleagues in a public forum. 12. Delight Employees With The Unexpected The last but not least way is to occasionally delight your employees with unexpected things that may come in the form of a reward, a gift or a well-done certificate. Reward not only the top performers but also a few others who are in need of motivation to exhibit their potential.

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List Of References

Websites http://en.wikipedia.org http://www.nwlink.com http://www.leadership-toolbox.com http://smallbusiness.chron.com http://humanresources.about.com http://www.dirjournal.com http://www.empxtrack.com

Reading Materials / Books CCHRM and PQHRM notes Changing Minds: Lewin's Leadership Styles Leadership Toolbox: Leadership Styles: Autocratic Leadership Free Management Library: Overview of Leadership in Organizations

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