Wednesday 17 October 2018

Quiet, Best Practices


Some time back, when I casually interacted with Mr Nagesh Adiga Manager HR Ace Manufacturing Systems, Bangalore I was pleasantly surprised to learn about some of the people friendly initiatives that the company has been practicing for years. I had pointed out to him that his company is following a remarkable path quietly,without much fanfare and yet many more would be inspired to emulate such practices if they are shared publicly.

Recently I had the occasion to visit the AMS factory located at Peenya industrial estate while accompanying MBA students whom I teach at the Wellingkar Instiute of Management and research. It was a wonderful opportunity to understand from close quarters, the functioning of a company that had impressed me earlier. We went around the neat and tidy shop floor and rounded off the visit with an interaction with Mr Nagesh, Manager (HR).

Mr P.Ramadas is the Managing Director of AMSL, who along with other founders Mr B.Machado, Mr A.V.Sathe and Mr S.G.Shirgurkar had started AMS in February 1994. The founders with a rich engineering experience behind and between them, adopted a customer centric approach that earned the company popularity, not only among big corporates but also among small and medium scale enterprises. The philosophy of the company also encompasses a people centric approach and adherence to ethical practices. AMSL which specializes in  CNC machining center manufacturing, has supplied over 8000 machines worldwide. The customers are from varied industries such as Automotive, General Engineering, Aerospace, Medical and Dental, Energy, Defence and Education. The company focus is on meeting the unique needs of customers.

During the interaction with the Manager (HR), one question that was asked by the students was "How is it that AMS has run for so many years without the presence of a union ?". The answer was that perhaps the employees did not feel the need for it when working for a company that gives equal importance to its employees and customers. The morning session each day, starts at the shop floor with r
ejuvenating exercises and reinforcing of ethical values. Safety & health pledges (includes personal safety tips outside factory) and guidelines are read out bilingually in Kannada and English. If it is a birthday of an employee, he is presented a birthday card  by MD and also wished personally by all the 400 employees present in the shift, shaking hands with him. There is a yoga center and a meditation room in the factory premises. Employees can take a break for meditation when they feel the need and compensate by working for an equivalent amount of time. 

The company perceives its employees as a family unit that includes his family members. Before an appointment, the parents of an employee are invited to visit the factory and see for themselves where their son/daughter would be working. The appointment letters are handed over to the parents. In case an employee is not coming 
to work, it is natural for the MD to telephone his wife and ask" Why is your husband taking so much leave?" An accident in the factory whether it happens to a regular or contract employee is given immediate attention with the person being hospitalized and provided adequate treatment. Another thing that stood out for me was that AMSL treated its suppliers also with care and concern. As for instance, as a matter of policy, company ensures that the suppliers receive timely payment within the committed date.

Mr Nagesh said that performance appraisal was not merely an annual or biannual affair but a continuous process. One to one feedback on how an employee is doing is given to him by the section head/HOD/ MD depending on the level at which he is working. Production data is captured week on week and serves as material for the discussions. He said that 'Punctuality' was a very important value for the company. Those achieving 100% punctuality and their spouses/mothers are honoured at a public event during the annual day celebrations. The attrition in the company is less than one percent (ranges from 0 .42 to 0 .73%) per annum. The corporate office and factory is housed in a ten-acre property amidst a lot of greenery, flowering trees and plants. There are more than 300 varieties/ species of plants in the premises. 

While taking leave, the manager (HR) reiterated the philosophy of the 
company- "Law of nature is above the law of the land". Nature does not exploit anyone. Similarly, AMS does not exploit any stakeholder be it an employee or a supplier. On the contrary, it seeks to enhance the welfare of all stakeholders including the society at large. 

11 comments:

  1. Remarkable. I read the last stanza many times. Thank you for sharing yet another brilliantly written article.

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  2. Thanks a lot for your feedback Supratik!

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  3. Good to note some realistic HR practices. I have managed a manufacturing unit with over 1000 people without external interference or Union for 15 yrs in an industrial area having more than 800 industries with unions and frequent unrest.
    I have also managed a manufacturing unit with close to 2300 people having responsible matured union leadership.
    In nutshell HR and the leadership team should lead by example on following innate qualities Trust transparency fairness and firmness. Sustaining a good working relationship ... A top down approach is a challenge but achievable.
    In every organisation you have some people in all layers who are not committed to organisation goals and employee welfare. We need to take them along.
    I had introduced along with my team lot of good practices which gave excellent results.
    Regards Ravichandra Bekal

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    1. So happy to learn that you have made considerable achievement in introducing and sustaining many good practices Ravichandra Bekalji! You should share your experiences so that others can straightaway benefit without having to reinvent the wheel...

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  4. Ravichandra Bekal 7798885666

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  5. Noteworthy and a role model to many companies of its size.

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    1. Thanks a lot for sharing your thoughts Gurudas Bhatji!

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  6. Worthy model to follow. Thanks for bringing this success story to us

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    1. Thank you Saranya! So happy to receive your feedback.

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  7. Your casual interaction with Mr.Nagesh has brought out the truth that if employers take care and treat the employees with respect there will not be any industrial unrest and the necessity of unions. I wish you get many more such opportunities to have casual interaction with such great people. Thanks a lot Mr Rajeev.

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    1. Thank you Mr shivkumar for your appreciation and feedback!

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