Downsizing: A relatively recent phenomenon in the Indian business sector. The phenomenon is not on its own however. Rather, it's a follow-up of other related trends such as high compensation packages.Escalating salaries, a trend started by the West, came as a pleasant surprise to the executives in India. But lay-offs, which came along with the high salaries in the West, were a rude shock to the same set of Indian executives.
``We were asked by an Indian MNC to find a job for a senior level manager and they did not want a replacement,'' recalls Ashok Srinivasan, GM, ABC consultants. ``Curtailing of staff is becoming a reality in the Indian business context,'' feels Ashok. ``As consultants we are assisting many corporate houses in de-hiring,'' he adds. There is no firing mode, but the signals are clear and pointed. Employees at all levels, though more in senior managerial cadre, face these uncertainties. Many are looking for jobs because they feel the employers are gunning after them.
Whirlpool is a casein point. Many of their top executives started at sky-rocketing salaries, only to culminate in retrenchment and the ensuing job uncertainties.
Another reason for the slump in the job market is consolidation by the companies. When a company reorganises itself (within and outside environment) many changes take place - a thorough analysis, meeting with competitors, taking stock of employees and devising future strategies. The first objective is search for a new set of skilled manpower. ``As businesses reconstruct, there are pushes and pulls, and redundant executives are replaced by a whole new pool of talent in manpower,'' explains Vikram Chachi, consultant, Amrop.
Downsizing is a global phenomenon but it does not imply decreasing opportunities. Though the units which have not been doing well are sold or liquidated, there is a shift toward core businesses. On the other hand, various opportunities open up for competent professionals with a comparative edge. If some units close down, some new units also comeup.
The industry as a whole is not in a slump. The slump is more visible in consumer durables, automobiles and white goods sectors. ``There is growth in the infrastructure sector - in power projects, telecommunication, transport, information technology, and the opportunities have shifted to those sectors,'' feels Arvindar Singh Brara, Managing Director, Mantac Consultants. ``It's not a downtrend all over,'' adds Brara. He states that Mama & Papa shops which were only recruitment agencies for general recruitment are suffering as ``hiring is less''. The consultancies have diverted towards training and organisational changes in the corporate sectors.
Ravi Bhatia of The Management Group opines that most companies are weeding out dead wood. Many corporates have removed 10 personnel and employed five who can show results, says Bhatia. He adds that as far as consultancies involved in human relations are concerned, the turnover is growing gradually. ``We expect a growth rate of 50 per cent next year as manyorganisations are keen to improve their performances by getting the right people for the right job.'' And according to Bhatia, the slump is helping the consultancies and they are bagging more assignments. ``As companies re-strategise, they require new personnel. As a result, head hunting continues.''
Brara, however, feels that the present scenario of job-cuts has not only shaken companies, but consultancies too. Brara connects the slump in the job scene to inadequate bank credit to the corporates. ``Seven years into liberalisation, the Indian economy has been in a state of flux,'' explains Brara.
Ashok Srinivasan is hopeful though. ``Prospects are better this year. We have learnt from our mistakes: salaries are not going to hit the roof. This year the growth rate will be more defined and matured. And demand for professionals is expected to be for specific with a combination of skills.'' He adds: ``Scenario is brighter, but not vibrant yet.''
Brara suggests: ``This recession can be overcome by settingtargets, monitoring by self and seniors for improved output.''
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
