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Inimitability can be achieved if we ensure Imperfect Resource Mobility A brilliant, Nobel Prize-winning scientist may be a unique resource, but unless he has firm-specific ties, his perfect mobility makes him an unlikely source of sustained advantage.

- Margaret A. Peteraf


Boris Groysberg, Linda-Eling Lee, and Ashish Nanda, Can they take it with them? The portability of star knowledge workers performance, Management Science 5, no.7 (2008): 1213-1230. Boris Groysberg and Linda-Eling Lee, The Effects of Colleague quality on top performance: The case of security analysts, Journal of Organizational Behavior 29, No. 8 (2008): 1123-1144.

Research Evidence
Star equity analysts who move between two comparable firms exhibit drop in performance for two years. Performance declines more when a star moves to firms with weaker capabilities.

Research Evidence

No significant decline in performance when a star moves to firms with better capabilities. Analysts who moved to better firms are unable to outperform analysts who did not move.

Research Evidence

Women analysts did not suffer the performance loss men did.

Two types of Human Capital

General Human Capital Store of general knowledge that can be transferred into any working environment (e.g., communication and quantitative skills) Firm-specific human capital - Non portable skills (e.g., Mastery of a proprietary computer program, relationship with colleagues)

HR and firm performance

Innovative HR practices are likely to contribute to improved economic performance only when three conditions are met: when employees possess knowledge and skills that managers lack; when employees are motivated to apply this skill and knowledge through discretionary effort; and when the firm's business or production strategy can only be achieved when employees contribute such discretionary effort (MacDuffie. 1995: 199)

Hiring for the organization

High Involvement Organizations (HIO) build a distinctive culture that is intentionally fragile.

Framework of HR Scorecard

Balanced Scorecard
Financial Success

Work Force Success

Strategy/Value Proposition
1. Productivity 2. Quality of Glass

Customer Success

Business Process Success

Workforce success
1. Autonomous 2. Empowered 3. Responsible for ones own work 4. Sense of commitment towards the organization 5. Cooperation with others a. b. c. d. e. f.

Growth need Social need Basic Math Measurement skill Motor skill Decision making skill g. Team skills h. Basic knowledge in the glass making process & terminology 1. 2. 3. 4. 5.

Safety Paying attention to instructors Compliance with plant rules Quality and thoroughness Participation in group decision making process 6. Negotiation 7. Gatekeeping 8. Probing 9. Not disrupting 10. Not abusing equipment 11. Continuous learning 12. Training other employees 13. Give feedback to fellow team members 14. Help design organizational changes

HR Scorecard
HR Competencies

HR Practices

Strategy/Value Proposition
1. Productivity 2. Quality of Glass

HR Deliverables
1. Mindset 2. Competencies 3. Behavior

HR Systems 1. 2. 3. Alignment Integration Differentiation

HR Practices Work Design

Self-regulating work teams at each sequential stage of production. (Work Design)

Commissioning task forces to solve business, HR and other problems.

HR Practices Recruitment & Selection

Designing Rites of Passage Designing pre-employment assessment and training program Conducting training program on How to avoid common rater errors for managers and supervisors Developing Validated competency model (PRF)

HR Practices Training and Development

Conducting training programs on Technical skills and social skills Assessing the effectiveness of the training programs

HR Practices Compensation
Designing Skill-based Pay system Gainsharing Plan

HR Practices Communication

Routine sharing of extensive business information

HR Practices Measurement
Employees Attitudinal Survey on a) Quality of worklife b) Job satisfaction c) Organizational commitment Turnover rate

Glass Quality My Training

My Compensation

My Competencies

Wipros poor performance

"Many of our peers have outperformed us as the BFSI (banking, financial services and insurance) segment has been showing the strongest growth rates since the economic recovery. Companies such as Cognizant, which have been growing rapidly, have a 50-55 per cent revenue contribution from BFSI, while ours stands at 27 per cent," Premji had said. Cognizant at No. 3, Wipro not Bangalore August 03,

Wipros poor performance

In case of Cognizant, Its focus on client management, sales and marketing strategy is paying dividends now,
Azim Premji

Restructuring @ Wipro
Replacing long-timers Suresh and Girish with T K Kurien. Restructuring the organization and aligning various business units to target customers as a single entity. This exercise is aimed at empowering vertical heads and removing bottlenecks in closing deals.

Restructuring @ Wipro

Over the past nine months, about 60 managers, some of them long-termers in the 31-year-old company, have been asked to leave. The evaluation was based on how they were rated by customers directly or indirectly served by them.

Restructuring @ Wipro

The new crop of Kurien's executives will include Satish Dorai, a former TCS employee who has been hired as senior vice-president to help Wipro tweak its project delivery models and establish a new business transformation practice focussed on high-value projects. Ritesh Pathak, an old Cognizant hand who worked at HPowned MphasiS, also joined Wipro last month as a vicepresident to help the company hunt for fresh business an area where it has been lagging TCS, Infosys and Cognizant. Omkar Nisal, the head of TCS' core banking software division Bancs, joined this month to help Wipro transform its sales function.

Restructuring @ Wipro

Traditionally, Wipro has been topheavy. Now we are investing heavily in building internal systems to empower decision-making down the chain to the level of project manager, said a senior company executive.