Human resource management is one of the key drivers in the transformation and restructuring presently underway in the Tata Group. Alex Emmanuel, vice president, HR, outlines the initiatives that are helping reinvent the organisation

People have always been very important to the Tata Group and the human resource function is being given high priority in the restructuring and refocusing exercise presently underway in the organisation. That's why the senior management, after a rigorous search, handpicked a new group HR team of three senior professionals. Alex Emmanuel, one of the senior team members, was plucked from Tata Liebert and appointed vice president – HR of the Tata Group in December last year.

Mr Emmanuel brings to his new assignment a wealth of experience. He started his career in Standard Furukawa in 1977 and worked with, among others, multinational companies like Asea Brown Boveri and Boehringer Mannheim before moving to Tata Liebert in 1994.

At Tata Liebert, Mr Emmanuel initiated and implemented many unique HR programmes. As the corporate quality head and as a certified senior examiner of Total Quality Management, he launched a number of initiatives which resulted in the company winning two awards at the national level. He evolved processes for increased customer satisfaction, headed the south and west business unit for a year and received an award for best sales performance by doubling the sales target.

In this interview with Sujata Agrawal, Mr Emmanuel talks about his new role, the challenges he has encountered during his career and his views on HR management. 

What does your current role and responsibilities entail?
I have moved into the group function only six months ago. The HR function has been singled out by the group for special focus. Many initiatives in the area of HR are being launched at the group level as well as by our companies. Talent is being recognised and rewarded. There is a new group HR mantra, spelt out by Mr R. Gopalakrishnan, executive director, Tata Sons, and adopted by the HR review committee: "Attract good people, retain the better ones and advance the best." It is also one of the underlying objectives of the Tata work level determination, a major initiative being undertaken across every one of our companies.

The HR function at the group level is divided into three areas: training, TAS and recruitment and corporate management development, which deals with policies and initiatives at the group level. I head the corporate management development function. We have just initiated the Tata 'work level determination' process and by December this will have been determined for some of our large companies. While each company will decide the initiatives consequent to determination of the work levels, we will provide the help or guidance required. We are putting together a performance measurement system and we are working on a host of other policy frameworks.

It is an interesting and fulfilling job, but it differs from a HR function in a company, where you come in contact with every employee.

How is it different from your earlier assignment at Tata Liebert?
The mission at Tata Liebert, set by Peter Baptista, the then president of the company, was to turn the company around and make it one of the best, not only in the Tata Group but in the corporate sector. HR was to play the single most important role in achieving that goal. The main challenge was to bring about  discipline, ensure process-system dependence and inspire people to excel in their performance, in addition to bringing about an overall cultural transformation.

The most important ingredient for a successful career in HR is not just technical knowledge or oratorical skills but people-related skills. At the group level you have to have both technical and people-related skills in equal measure.

One of your responsibilities in your current assignment involves putting together a Performance Management System. Is there any model that you are adopting and how will it work?
This is an area I am very passionate about. The 'performance management system and beliefs' evolved at Tata Liebert contributed immensely to the growth of the company.

Each company will evolve a system relevant to its context and needs. This is linked to the company’s current and future performance. An effective system should drive the company’s current business, focus on bottom-line parameters, customer satisfaction, employee satisfaction and market share. At the group level, we will ensure that systems are in compliance with group guidelines.

How different is a group-level assignment from that of working with an individual company?
It’s a more challenging job. In an organisation you need to sell your ideas and process systems to one group of senior management. In a group you have to sell them to all the group companies. And that can be difficult at times. Our task at the group level is to ensure that each company has proper systems and processes which are reviewed and improved every year. We will evolve broad policies, principles and guidelines for this purpose.

The Tata Group is undergoing a transformation and restructuring programme and HR is one of the key functions in this process of change. Being appointed to play a role at the group level in HR — the sheer magnitude of the job and the opportunity that it provides — is challenging and fulfilling. It is something to be happy and excited about. I must thank Mr Baptista for the opportunities and responsibilities that were given to me. The tasks I handled at Tata Liebert provided me with tremendous growth and learning opportunities.

Employee turnover often seems to be an area of concern, how do you retain star performers?
Leadership plays an important role in retaining people. Everybody wants to be part of a winning team. Sometimes, even if your company does not make profits, people will continue to be with you, provided the company’s leaders can articulate a vision, inspire people and give direction.

Another important factor is the compensation policy. This has to be linked with the company’s performance. One of the roles for group HR is to work on an ideal base compensation level. We will soon be putting a compensation matrix in place for all companies.

What opportunities does the Tata Group offer to the younger generation?
The Tata Group's mandate today, is very clear: there should be young faces at the helm of a company. Seniors should make room for the younger lot and act as a guiding force, giving advice and offering suggestions. Our task is to build that second level, the second generation of leaders for the group.

How are you identifying leaders in a group that has over 10,000 managers?
The whole purpose of the Tata 'work level determination' is to identify and nurture future leaders (see interview with R. Gopalakrishnan).   A leader must be someone who has varied experience and can deliver results. The person should have functional expertise in a number of areas and a strategy focus. The importance of these qualities will vary at various levels. At the junior level functional competency is very important, but as you go up in the hierarchy other competencies assume importance.

We will soon be having high value-adding leadership training initiatives from TMTC (Tata Management Training Centre) and senior managers across the group will be invited for these programmes.

How much does HR contribute to the success of an organisation?
It is a controversial issue, whether HR drives business or business drives HR. I believe strongly that today’s organisations cannot survive without proper HR policies. At the end of the day, HR has to drive business. The real competition today is not for technology, capital, infrastructure or market share — it is for people and competence.

A company’s strategic objectives have to cascade down to each and every employee. HR, therefore, has an important role to play in ensuring customer satisfaction, enhancing employee satisfaction and people competence, all of which contribute to the future of a company.

In surveys conducted by organisations across the world, CEOs have stated that their main concern is HR, an adequate supply of people and their competence and motivation levels. An employee has to prove his or her ability to deliver. You need good people to drive a company.

What changes have you seen in HR management during your career?
When I joined the profession in 1975-76, the focus was on discipline management, industrial relations, handling unions and employee grievances. It slowly shifted to employee welfare. Then it was the era of organisational development-related areas, focusing more on the organisation. However, since 1988-89, there has been an emphasis on real, people-focused organisations. Today people and people-related issues, competence-building, providing motivation and HR systems and processes have gained relevance.

Are systems and processes overriding the human factor in HR management?
Systems and processes are there to ensure that your organisation is not people-dependent. At Tata Liebert, the work that I did will be carried forward by my successors. My separation from the company will not adversely affect it in any way.

Processes will not work if you are not focused on people. People must accept and be motivated by the initiatives. The primary focus of a HR initiative for any organisation should be people, their satisfaction and motivation level. Every person in an organisation should be committed to a goal beyond what is set; beyond what they want to achieve as a professional. It can be called a super-oriented goal. You must establish that level of motivation in people. The human aspect combined with processes will take an organisation forward. This is what I believe in.

Today’s corporate philosophy seems to centre around teams, how do you build and encourage team spirit in a highly competitive environment?
Leaders, not managers, build teams. You can build a great team if you have good leaders and leadership systems. You must have documented processes, such as specific, precise and measurable performance objectives that reflect a person’s achievements and contribution to team effectiveness. This makes it difficult for any one person to take all the credit.

Finally, what in your opinion is good leadership?
A good leader, in my opinion, is someone who promotes his people and recognises their contributions. He must be able to communicate and inspire. Leadership is an aspect of being, not doing. It encompasses values, concern, perception management, gut feeling, beliefs and conviction. You have to live by these.

I was very touched by the farewell gift given to me by people at Tata Liebert. Initially, I thought it was a painting. But when I opened it and saw what they had made for me, I was very touched. They have prepared a list of all the initiatives with which I was personally involved as a key player. The heads of respective departments have signed it. I am sure that this ‘painting’ will always be with me wherever I go.