Unity of purpose is key

The management trainees were hired with the objective of steering Falcon towards growth in the long run. The motivation to hire trainees, as opposed to career development for existing employees, stems from the success the erstwhile trainees in the top leadership team achieved in carving a niche for Falcon in the market. However, the trainee recruitment and training programme has to be examined from the perspective of both the existing employees and the trainees, to decide whether the goals will be met.

For the trainees to assume the reins of the organisation, it is imperative that employees trust their command and leadership abilities. To help them transform the organisation, the employees need to assume and accept the role of change-makers. In other words, the culture of the organisation has to be designed to be adaptive and receptive to change and ideas. This has important implications for employee performance appraisal and compensation. A prerequisite for this cultural shift would be an organisational structure that doesn’t stress on hierarchy.

Until now, the employees have not been exposed to the style of working of the trainees. The idea that existing processes and systems could be optimised to improve performance could be alien to them. A trainee pointing out loopholes and demanding changes could cause ego clashes. Add to this is the issue of trainees being paid more than what senior employees have made in 10 years. These are sources of conflict that could undermine the purpose of the programme.

The leadership committee should clearly communicate its vision about how trainee recruitment will align with their goals. The HR department needs to put down the new facets of the performance appraisal system. Employees will be judged on how well they troubleshoot problems and plug the loopholes in the existing system. Furthermore, training is required to teach employees to be on the lookout for new ideas and implement them. Debriefing sessions on how the compensation and career progression will be related to this new progressive behaviour need to be conducted.

The trainees are students from B-schools with bright career prospects. Organisations are increasingly willing to snap them up for their talent and skills. Hence, retention of trainees at Falcon needs special attention. Apart from an attractive compensation package, an environment that facilitates work is essential.

A progressive and agile organisation, friendly employees, opportunities for career progression and good infrastructure are elements of a conducive environment. Office space could be acquired on lease to create space for trainees to work. Alternatively, teams that can function despite physical separation from other departments could be shifted or their functions can be centralised.

During training, it is important to sensitise the new MBAs to the culture of teams and relationships with concerned stakeholders. If need be, sessions on negotiation skills need to be arranged to help them correct inefficiencies without endangering partnerships. Even more essential is to set the objectives of the programme upfront. This helps the trainees evaluate their progress and judge if their appraisal has been fair. It also provides direction.

The trainees need to connect with and cement their relationships with the existing employees. Team-building exercises could be organised. The benefits of such a programme are two-fold. Participation in such a simulation puts trainees in touch with issues that employees face on a day-to-day basis. Also, employees are no longer threatened by the presence of trainees. The environment shifts to one of collaborative problem solving.

Vanchi Nathan as VP, HRD, needs to oversee the setting up of a team culture where the employees work together to advance the interests of all the stakeholders. Also, transparency in goals, expectations, performance appraisal and compensation packages are essential to help the employees feel engaged.

(The authors are pursuing a post graduate programme in management at Indian Institute of Management Ahmedabad)