Hr & Administration
General Manager - Hr
Learning & Teaching Fellow (retired)
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Statutory Complaince/labour & Employment
2nd January 2014 From India, Hyderabad
It is a very risky venture to opt for a newly opened Pvt. Ltd. Co.; for even its owners may not know how it will perform in future.
A career in a reputed MNC itself carries certain weight. If salary hike is the only criterion, then one may get better opportunities in other MNCs or reputed Indian companies.
2nd January 2014 From India, Delhi
I agree with all above statements ...
But I would like to add few more diffrent points. Also the priorities are diffrent from person to person.
Your Friend is working in MNC but currently what power he has? If he is shifting to Newly Opened Pvt Co., then he may enjoy lots of powers. He can learn lots of new things, which he is not able to learn by serving MNC too ... Because, what I observed in MNC is, mostly your work area is very limited ...
Plus, I accept the Newly Opened Pvt Co may think "you are a costly affair" but if your friend perform better, then management may think about Salary & post hike also. Because, though every company think about "Budget of Department" but on the other side they are not ready to loose good performers also.
Also, suggest your friend to check Professionalism of the newly Opened Comany, this is the very important thing.
Convey my Good Wishes to your Friend..
4th January 2014 From India, Pune
4th January 2014 From India, Lucknow
I run a small private limited IT company. The employees I got are coming from WHO, TCS and other such companies and are happy with our environment. They are our assets and we can not afford to lose their services and commitments. All are satisfied and enjoy their working environment.
So you need to see the company prospective, atmosphere, growth opportunities and exposures scope along with the salary hike and only then decide. In MNCs you do not get good exposure as you are put in just one field and may be your some lesser performance may not be detected but it is not in the case of private limited companies. So just not go by conventions but go by all aspects.
6th January 2014 From India, New Delhi
As Mr.Pon has rightly pointed out many MNC's have hired professionals offering them lucrative salaries. Without knowing the intentions, unwary candidates have fallen into the trap. I am aware of a reputed MNC that merely paid up the notice pay due to employees and closed operations overnight without any advance intimation.
Hence, in my opinion whether it is MNC or private company, do some research about the company and its prospects before joining it. Private companies are a little conservative as most of them are owner managed, so the company takes cautious steps while embarking on expansion plans.
Weigh the offer, look for longevity of the company, company's brand image, market potential for the products, future prospects in the company, turnover of the company for the past few years and the work culture.
It will be a great risk to join a start up private company. However, if you are quite young and willing to take the risk, you can certainly test the waters. On the other hand, if you have financial commitments to be honoured and in your opinion you cannot afford to take the risk, then ignore it and continue with your present employment.
Private enterprises do offer you the variety you will be looking for, challenges, freedom (to limited extent, as most of them are owner managed) and if you have the leadership quality, you can certainly experiment at the early stages of your career.
6th January 2014 From India, Madras
7th January 2014 From India, Mumbai
#AnonymousI think this all suggestions from all of nice persons are very usefull. But he speaks with HR of that company and he assured that they have work for next 5 years as that Australian company with which this small PVT. LTD. company is collaborating is big enough and their all design works for PLC and Automation will be done by only this PVT. LTD. company. Please check this and suggest again...
8th January 2014 From India, Bangalore
It appears that the Australian firm is outsourcing its design and automation work to the private limited company. There are instances when the private company is also bought out by companies overseas. Likewise there are also instances wherein the outsourcing is reassigned to yet another company which is more competitive.
As said earlier, ask your friend to weigh options and then decide.
In my opinion I am not sure whether any member will be in a position and offer expert opinion on future prospects of a company as the industry is quite volatile and we have seen television companies in the past, like Dyanora, Solitaire, BPL, ECTV, etc are names we have seen in 1980's.
8th January 2014 From India, Madras
ideally its should whether, changing job from established MNC( Pvt Ltd) to a newly incorporated Pvt Ltd company is good or bad. It depends on number of factors already discussed as above.
10th January 2014
Learned friends have given apt responses based on the limited information. That's why I have not appreciated and validated their responses.
Dear Anonymous, I take this opportunity to appeal to all bloggers to give enough information about the person and the scenario. For example, had you given all the information, it would have helped people to give precise answers without having to assume (ASS-U-ME). Let me give some examples of the information that would have helped. How old is your friend and how long has (s)he been working for the MNC? What position does (s)he hold in the company? Is it a she or a he? What family commitments are there?
I know of a person that worked for a large computer firm in the United States. When he applied for jobs through consultants, he was told that he did not have any experience of working in small companies. He was only 28 at that time and not married. So, when HP were laying off people, he joined a small firm and quit that after one year and joined another small firm to get wider experience. Then he joined a large organisation as Vice President of Global ...... Then he was asked to leave without giving reasons. So, job in an MNC is not a guarantee. Now, at the age of 40 he is back at HP.
Another person that worked for an MNC, joined a small firm at a very high position; became the CEO within 5 years . His company was acquired by his old MNC and he became a millionaire within 10 years of leaving the MNC and is back with them.
So, what your friend should do depends upon his background, capabilities, inclination and above all LUCK.
Finally, I wonder why you have chosen to be Anonymous when raising a question about a friend!!!
10th January 2014 From United Kingdom
PS: salary is another thing, may be MNC not paying a good amount but still their are other perks
11th January 2014 From India, Delhi
#AnonymousDear All, Thanks for advices from all respected peoples. I am revoking my resignation. I have gone through all the comments and has taken this decision. Tons of thanks!!!
29th January 2014 From India, Bangalore