abhishreshthaa
Abhijeet S
CASE EXAMPLE (inducements):
INFOSYS: The Software Powerhouse
Infosys Technologies Limited (ITL), one of the country’s best known software exporting house, treats its employees as partners and co-owners. It provides them challenging assignments, allows flexible working hours, rewards them solely on the basis of performance and conducts regular training programmes to upgrade their skills.
It has an “Employee Stock Option Plan” (ESOP) to share its wealth with employees on the basis of their performance. Even lower level employees are proud owners of the prized stock worth 25 to 40 lakh rupees, according to Narayan Murthy, the CEO of ITL.
Apart from increasing shareholder value, ESOP has greatly enhanced the image of the company in the information technology industry where employee attrition rates are very high. It is small wonder companies like Procter & Gamble, Johnson & Johnson, Citibank have reposed their faith in ESOP as a way of attracting and retaining talent in a highly competitive environment.
CONSTRAINTS
If a firm has a poor image in the market, many of the prospective candidates may not even apply for vacancies advertised by the firm. If the job is not attractive, qualified people may not even apply. Any job that is viewed as boring, hazardous, anxiety producing, low-paying, or lacking in promotion potential seldom will attract a qualified pool of applicants. Recruiting efforts require money.
Sometimes because of limited resources, organizations may not like to carry on the recruiting efforts for long periods of time, this can, ultimately, constrain a recruiter’s effort to attract the best person for the job. Government policies often come in the way of recruiting people as per the rules of the company or on the basis of merit/seniority, etc.
For example, reservations to specific groups (such as scheduled castes, scheduled tribes, backward castes, physically handicapped and disabled persons, ex-servicemen, etc.) have to be observed as per constitutional provisions while filling up vacancies in government corporations, departmental undertakings, local bodies, quasi-government organizations, etc.
INFOSYS: The Software Powerhouse
Infosys Technologies Limited (ITL), one of the country’s best known software exporting house, treats its employees as partners and co-owners. It provides them challenging assignments, allows flexible working hours, rewards them solely on the basis of performance and conducts regular training programmes to upgrade their skills.
It has an “Employee Stock Option Plan” (ESOP) to share its wealth with employees on the basis of their performance. Even lower level employees are proud owners of the prized stock worth 25 to 40 lakh rupees, according to Narayan Murthy, the CEO of ITL.
Apart from increasing shareholder value, ESOP has greatly enhanced the image of the company in the information technology industry where employee attrition rates are very high. It is small wonder companies like Procter & Gamble, Johnson & Johnson, Citibank have reposed their faith in ESOP as a way of attracting and retaining talent in a highly competitive environment.
CONSTRAINTS
If a firm has a poor image in the market, many of the prospective candidates may not even apply for vacancies advertised by the firm. If the job is not attractive, qualified people may not even apply. Any job that is viewed as boring, hazardous, anxiety producing, low-paying, or lacking in promotion potential seldom will attract a qualified pool of applicants. Recruiting efforts require money.
Sometimes because of limited resources, organizations may not like to carry on the recruiting efforts for long periods of time, this can, ultimately, constrain a recruiter’s effort to attract the best person for the job. Government policies often come in the way of recruiting people as per the rules of the company or on the basis of merit/seniority, etc.
For example, reservations to specific groups (such as scheduled castes, scheduled tribes, backward castes, physically handicapped and disabled persons, ex-servicemen, etc.) have to be observed as per constitutional provisions while filling up vacancies in government corporations, departmental undertakings, local bodies, quasi-government organizations, etc.