From Employee Engagement to Employee Effectiveness

Telecom Challenge.

>> A dynamic, competitive, growing industry...

>> High Employee intake. >> Attracts Top Talent

OUR CHALLENGE Engagement Effectiveness Productivity

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Bihar Transformation Story.MAGIC!!

Dec 2005 Dec 2006 March 2007

Subscriber Base
Net Adds pm

6,11,307
62,554

18,30,030
1,50,002

23,02,305
2,51,053

Began Operations in Jan05

High Productivity, Internally Benchmarked : Employee Passion, Energy & Commitment High Subscribers / Employee Low Personnel Cost as a % of Revenue High Revenue/ Employee
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Employee Engagement What is it?

Engagement is the extent to which employees commit to something or someone in their organization, how hard they work, and how long they stay as a result of that commitment
Two Commitment Types Employee Engagement Levers Qualities of Direct Manager Qualities of senior leadership Outputs of Commitment Discretionary Effort Organizational Benefits of Commitment Performance

Organization Strategy

Rational Commitment The extent to which employees believe that managers, teams, or organizations have their self-interest in mind (financial, developmental, or professional)
EMPLOYEE ENGAGEMENT DRIVERS

Compensation plan
Benefits plan On-boarding

Employee willingness to go above and beyond the call of duty

Emotional Commitment The extent to which employees value, enjoy, & believe in their jobs, managers, teams, or organizations.

Intent to Stay

Retention

Day-to-day work Learning and development Organizational culture

Employee desire to stay with the organization

From Discretionary Effort to Effectiveness

Engaged Employee
Do Right Things Have A Shared Purpose Ensure Synergy

High Productivity

High Effectiveness

Discretionary Effort to Effectiveness

Focus Right things Shared Purpose Synergy

LINKAGE TO BUSINESS STRATEGY

Link to business strategy Energy of a compelling vision Role Clarity Leader vs. Manager Empowerment

Airtel Case

Study

Description

Team Alignment. Effective Communication

Objective Setting

Think Fresh Deliver More

Critical Success Factors

EE to link to key business drivers : our Recipe for Success Design meaningful & challenging work that have a clear line of sight to business results Infuse flexibility, autonomy, & accountability into work processes & into the overall culture of the organization Increase the business literacy of the workforce to help employees better understand how their work contributes to the success of the organization

Break-free

Thank You!!
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Think Fresh, Deliver More

We at Airtel always think in fresh & innovative ways about the needs of our customers. We deliver what we promise & go out of our way to delight the customer with a little bit more.
Brand Promise communicated through Brand Essence Workshops Team Rooms & Surveys Leading Industry Innovation through user friendly products & services Employee Communication Forums

Plus 1 Initiative to delight the customer, fresh ideas

Strategy to Aligned action: KRA Format

Performance Management System Employee Name / Code Designation / Department Key Objectives / Strategies / Projects Employee Code Business Unit / Circle Measures of Completion

Area
Financials

KPI

80%

90%

100%

Breakfree

Weightage

Customer

Process

People & Org Development

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Annual Performance Bonus

Fixed Component
Proportion reduces with seniority of Band

Employee Compensatio n

Individual Performanc e

Payout basis individual performance Rating (say X % of the applicable amount)

**Variable Component
Proportion increases with seniority of Band

Performance of Unit

Details of determining payout depicted in next slide (say Y % of the applicable amount)

Performance of Business

Details of determining payout depicted in next slide (say Z % of the applicable amount)

Parameter Individual Performance Unit Performance Business/Company Performance

UC / Band 3

Band 2

Band 1

Band F

Total APB Payout % X% + Y% + Z%

40%
40%

50%
50%

60%
40%

70%
30%

20%

Nil

Nil

Nil
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