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 rejuvenating 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.