After going through several reviews, it appears that Gujarat is becoming the new 'China' to its neighbours due to the following observations:
(a) A preferred investment destination over neighbours
(b) Favorable work environments due to work force characteristics
(c) Responsive government that is focusing on strategic resonance with corporates
(d) Financial gains through tax breaks and other instruments.
As HR professionals, how do you think this will affect the HR strategy of your company? I would like to hear concrete answers please.
About "HR strategy", others will write however, I have one question to ask. In your analysis, you have written only the positive factors. What are the negative factors or what is the flip side?
"Strategy" cannot be based only on positive factors.
The important thing that you have missed is pollution in China. The situation is quite grim there. May you remember that when China conducted 2008 Olympics, the factories in adjoining towns had to be shut down because the sports venues were getting covered with grime. Before 2008, one of the Chinese minister had openly lamented about polluting rivers of China. One major river, I forgot its name, is so polluted that it will carry polluted water for the next 200 years!
You can click the following links to know more about pollution in china:
Pollution in China - Wikipedia, the free encyclopedia
Air pollution could become China's biggest health threat, expert warns | Environment | guardian.co.uk
My objective was not divert the discussion to some different topic. However, unless you take holistic view, we cannot make our opinion leave aside strategy. However, I am writing this as you have made strange comparison. Of course in a way comparison is appropriate because the way China mows down any dissidence to its policies, same way Mr Narendra Modi is also known for bulldozing his views..
Who knows Narendra Modi's Gujrat could be polluted far more than China as well. It's effects will be seen after 15-20 years. Our children and grandchildren may bore the brunt of this economic growth. Therefore, there could be economic gains at the cost of social evils.
Dinesh V Divekar
Management Training Consultant
Bangalore - 560094
Beware of false knowledge; it is more dangerous than ignorance.
Regardless of the environmental consideration you have brought up, China has emerged as a super-power and is increasingly playing a vital role in most strategic considerations. Industries close to Mumbai have been forced to shut down because they are unable to cope with the pressures from China. Unlike India, China has become a super power... It has become a hub for both manufacturing and services.
China being a different political entity, can always be 'controlled' to some extent by using trade barriers, etc. Yet, it is important to know that your need for competitiveness in the global market might force you to ensure that you innovate on your strategy.
As regards Gujarat, you need to view it from a strategic perspective. An economic analysis from a HR perspective on the 'strengths' and 'weaknesses' would be more meaningful to this discussion than an pure environmental analysis, especially from a leading consultant like you.
Labour problems are abundant in Maharashtra... And it is said that reverse immigration is one of the key drivers to add to the blues...
Lets hear what the others have to say. You could have as well dropped me a private mail than distracting the focus :-)
Ok. Let us keep pollution aside. Even then also you have not given any point that opposes what you have said. SWOT Analysis is one of the important strategic tools. What you have mentioned are only the strengths of Gujrat. Where are the weaknesses? Where are the threats?
Is it economically viable to relocate industry from other state to Gujrat? Outsourcing of manufacturing activity by American or European companies to China is one thing and diverting manufacturing from other Indian states to Gujrat is another. In fact Gujrat model and China are completely incomparable.
China's success was because of artificially depreciated Yuan also. Secondly, the wages are rising in China and this country is no longer viable destination for manufacturing. Large number of American and European countries are trying for alternate destination. Vietnam and Philippines are the two most desired destinations. In the last month all the major financial dailies like Wall Street Journal, Financial Times, Economist etc have published articles on this subject. Ashok Mitra prominent economist always told that Chinese bubble will burst one day. It appears that chickens coming home to roost and prick this bubble.
What about chickens of Gujrat? Is it that there are no chickens at all?
This is not a discussion about Gujarat... Rather one that asks you if you are incorporating it in your HR strategy... and if yes, how are you doing it...
Your company could be anywhere else in the country... but you might have to incorporate this G factor just as you need to incorporate the C factor. We are not comparing Gujarat with China, only the effects could be similar from a strategic perspective.
Hope you are getting the subtle difference.
Kindly do remember, we are individuals and different personalities. As a result, our perception will differ from the rest. May be, very few humans are like minded. However, it is not an easy task for anyone to interpret anyone's thought process especially submitted in WRITTEN FORMAT because it is a NON-DIRECT COMMUNICATION.
As you said "CHINA HAS BECOME SUPER POWER" it is their turn now. Once upon a time USA & RUSSIA was SUPER POWER COUNTRIES. May be in future, INDIA MAY ALSO BECOME A SUPER POWER COUNTRY. I wonder what they had gained by being a SUPER POWER COUNTRY.
Lets talk about INDIA but not "STATES OF INDIA". The competition among STATES OF INDIA is growing like HELL FIRE. This is created by POLITICIANS for their OWN SELFISH REASONS. To my knowledge, POLITICIANS are trying to DIVIDE INTO FURTHER STATES again for SELFISH REASONS. A "COMMON MAN" is no way benefited from it. Had you ever spoke to the COMMON MAN(may be a group) in GUJARAT about their STATE PROGRESS and to what extent he/she(they) are benefited?
My suggestion is that, "Lets change the name our country from INDIA to GUJARAT and merge all states into ONE(GUJARAT). This will enable us to implement the GUJARAT FACTOR or by default it will be implemented. May also solve most of the issues and support our NATION to become A SUPER POWER NATION. I hope you will agree with me.
Imagine, if we INDIANS were UNITED rather PROMOTING OURSELVES BY ADDING A COMMUNITY TAG, INDIA would have been the SUPER POWER COUNTRY.
- Anyways, May i know what exactly is your requirement by posting such queries?
- What do you wish to receive in the form of information that could help you or others? If it is going to help you in anyway/form, please do share with us.
- If you have plans moving to GUJARAT, we all wish you GOOD LUCK.
Its not about HR STRATEGY, its all about BUSINESS STRATEGY. You should have invited ENTREPRENEURS, BUSINESSMEN to share their views about your STRATEGIES because they are the BENEFICIARIES. HR has got nothing to do as they are EMPLOYEES, but not the "SOLE DECISION MAKERS".
With profound regards
I think you totally misinterpreted my question :-) If you think HR professionals shouldn't think strategically on such issues(as they are EMPLOYEES...), well I think there is a fundamental dichotomy in what we are saying.
I am not shifting to Gujarat. Neither am I from that place. And I am not promoting a community or a state, but let me explain what has been happening during recent discussions with many companies around this area. I will provide you with 2 examples, not more:
1. Many Gujaratis used to work in companies in and around Mumbai. Also a lot of Biharis and UPites. With the changing trends, most of these workers are going back to their states. This is causing HUGE problems for industries here as they are not able to find workforce that could replace them. Some have started looking at outsourcing strategies to help fill this gap, while some others are trying to redesign their organizations. These are some of the HR strategies as responses. There might be many others who might be doing nothing, but everyone realizes that it is becoming increasingly difficult to get replacements even at Class IV level. Whether you like it or not, if you turn a blind-eye towards this kind of a phenomenon, you are really not incorporating the G factor.
2. Tax holidays are still in vogue and if you have studied the Indian industry, it is highly 'cost' sensitive for good reasons. Well, a tax holiday could benefit a company directly by upto 10%, which is a very high figure to gain just by the location. Moreover, most tax holidays in other states are coming to an end (as they began rather early)! This is putting an additional pressure on other companies when it comes to keeping their competitive position through cost leadership. Under these circumstances, there are only a few ways in which you can offset the disadvantage. One of the ways is through HR Strategies. Want to know if any of the HR folks on this forum are doing anything actively in this area.
Hope this clarifies to some extent.
I appreciate your reply. If you would have shared your views supporting your query, by now you could have explored few STRATEGICAL views from HR PROFESSIONALS having PRACTICAL KNOWLEDGE about such SITUATIONS/CIRCUMSTANCES.
WORKFORCE is abundant in INDIA. ACCENTURE is trying their best to create a READY-TO-USE type of WORKFORCE by training/educating them on relevant skills. What is missing is "A STANDARDISED LIFE STYLE" and it has its OWN COST. One side INFLATION is touching the sky and other hand SALARIES REMAIN THE SAME. By developing STATES a COMMON MAN is nowhere benefited except POLITICIANS and BUSINESSMAN. MONEY IS STORED/HIDDEN in many forms rather investing it in RIGHT PLACE. If you want to think big, think different where you can do wonders by supporting the segment(poor class) that needs help in the form of MIRACLES. Hope ANNA HAZARE will succeed in eliminating CORRUPTION to the CORE.
We are also facing difficult to meet our clients requirements due to MAN POWER EXPECTATIONS. Though people working abroad earn little more than what they earn in INDIA. We are trying our best to standardised the procedures, pay scale. What is the killing the whole world is "COMPETITION" where SURVIVAL is becoming TOUGH. It is left to the MANAGEMENT to workout STRATEGIES that could workout for generating PROFITS on LONG TERM while meeting all requirements.
With profound regards
It is very difficult to offer QUALITY SERVICES at CHEAP RATES/PRICE. To my knowledge, whatever GROWTH is noted in MIDDLE EAST INFRASTRUCTURE is due to the CONTRIBUTION made by EXPATRIATES and majority of them are INDIANS. Hats off to INDIANS.
CONTRACTING had become a CHEAP TRADE in MIDDLE EAST due to LABOUR ISSUES. Companies must realize the importance of QUALITY while BIDDING for TENDERS. I regret to say that, even if organisations are quoting good rates, they are not paying proportionally and this is the major factor for ATTRITION.
RECRUITMENT STRATEGIES must be define for hiring RIGHT PEOPLE with RIGHT ATTITUDE for RIGHT JOB. KRA & KPI must be define and linked with PMS. RECOGNIZING EMPLOYEE without MONETARY BENEFITS will not help us to hold him for LONG.
Well, lets hope for the best because QATAR market is in booming stage because of INFRASTRUCTURE DEVELOPMENT as they have to meet all standards set for hosting FIFA WORLDCUP 2022 here.
With profound regards
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