Organizational dynamics leads to the benifit structure..

Hi All,

While going thru all the posts by many individuals from various industry and companies I feel that the organizational dynamics plays an important role in designing the benefit structure for them. Big MNCs like GE, Tata Steel, huge public sectors like SBI operates with the concept of economy of scale. They give too much importance in long term employability by providing long term schemes like high basic pay or net in hand pay unlike performance based variable pay. Companies like HUL in India and GE worldwide known as the CEO factory for their intensive employee improvement schemes. But companies like 3M, Google provide too much of freedom to employees to try, innovate even fail.....

The high attrition rate in major IT companies does not bother affect their bottom line because they know if a large chunk of employees are leaving them, at the same time a similar chunk of employees are joining them due to the concept of 33 % hike in pay package while switching from one company to another.

Similarly the higher pay package of tier 1 companies like Microsoft, Google, sap labs attract employees from the tier 2 IT companies. But the number is very few as they operate on the principle of developmental projects unlike the maintainace/support work which satisfies the employee in both compensation and work wise. Many ppl wants to work routine based work so they are happy with the current monotonous work culture prevailing in their organization.

But it is important for the organization to observe when it transforms from one stage to another. and accordingly design its benefit structure. Wipro has the highest attrition rate among all IT companies in India but still then its employees are increasing day by day....now its nearly 100000...n its bottom-line is also growing...

M n A plays an important role in designing the structure according to the cultural change but at the same time it benefits a lot and dissatisfies some....

As I said earlier organizations should keep on innovating the strategy....but with the employees ' consent after all this are for them only..they are the major stakeholders of any organization...there is not dearth of any labour/employee pool....companies are shifting their operation from low cost to lower cost places like India, China, etc...

Some employees want short term growth and some want long term security...So accordingly the companies should strategies their policies and no doubt they are doing it...small scale or new prospectors are giving too much importance on individualistic approach like taking them to show a movie...but large scale employers giving stress on group performance... so benefiting the employees if the company grows(organizational benefits...)

So one important thing matters is the level of transparency....where employer and employee can collaborate to grow....where the employer can chose the ri8 employees n vice versa...

Bijen Pattnaik