Should Zonal Managers Alone Sign Increment Letters, or Should HQ Co-Sign? Seeking Your Advice

Dear Friends/Seniors,

My organization has branches across India. We have zonal managers to take care of their respective zones, with the headquarters in Mumbai. These managers are not stationed at the Mumbai office.

A few of our top management personnel feel that to empower zonal managers, this year's increment letters (which are released from Mumbai) should be signed by the zonal managers alone for their respective zones.

I, as HR, have opposed this and suggested that there should be two signatures on the letters: one from the head office and one from the zonal managers. I feel these signatures should not be delegated to one person.

Can I please have your suggestions on this?

Best Regards,
DS

Empowerment does not lie just in signing letters but in giving authority to decide the increment percentage or amount as well. The question of signature comes later. What is the use of the Zonal Manager signing the increment letter if the increment amounts are to be decided by your HO?

Having two signatures on the increment letter will make your organization more bureaucratic. Please consider this fact as well.

Secondly, why do you want to send an increment letter to every individual? I doubt whether this practice is followed in every organization. In my experience, the top management decides the increment amount or percentage and sends this letter to the HR department. Employees will come to know the increment amount when they receive their salary slips for April 2012.

Other senior members may also offer their opinions.

Thanks,
DVD

I largely agree with Dinesh in that real empowerment occurs only when you allow the Zonal Managers the power to assess the performance and percentage of increment for the employees working under their jurisdiction. By suggesting that the increment letter shall also bear the signature of the Head Office, you seem to be more concerned about losing HO authority and say in the matter of deciding increments. Any issue of delegation of powers should be decided from the point of view of promoting the efficiency of administration, expediting decision-making, and fostering employee satisfaction, but not from the perspective of a show of authority.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]

Discussion on Empowering Zonal Managers

Thank you very much for your valuable replies. I largely agree with Dinesh in that real empowerment occurs only when you allow the Zonal Managers the power to assess the performance and determine the percentage of increment for the employees working under their jurisdiction. By suggesting that the increment letter should also bear the signature of the Head Office, you seem more concerned about losing HO authority and influence in deciding increments. Any issue of delegation of powers should be decided from the perspective of promoting administrative efficiency, expediting decision-making, and fostering employee satisfaction, rather than from a perspective of authority display.

Actually, I am of the same opinion as both of you. The argument I presented to management was that if the managers have no say in deciding the increment, then why involve them in signing? This will not empower them at all. In fact, it will be like authority without responsibility. I have no problem with delegating. As rightly said by you, it will foster smooth functioning. However, I am against this partial delegation, but I am unable to convince my management since they don't want to lose their say in deciding. At the same time, I don't want my managers to be scapegoats. Accordingly, I was trying to find a solution so that we have a win-win situation.

Regarding the issuance of increment letters along with increments, it is a very good practice. They contain words of appreciation.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]

By keeping decision-making powers with themselves and authorizing zonal managers to issue the annual increment letters, your management wanted to find someone's shoulder to keep their gun on it but keep the trigger with them.

Sometimes it is juniors who keep the gun on the senior's shoulder and fire the shots. Very few times you will find a person keeps the gun on one's shoulder and fires too!

Management by "Remote Control"

Management by "Remote Control" is quite discernible in Indian politics. So it would not baffle anyone if the corporate sector adopts this legacy! Anyhow, this is what the world is.

Employee Motivation and Cost-Benefit Analysis

Lastly, you have said that by issuing the increment letter to every individual, the employees will get motivated. But then what about demotivation if the employee is not satisfied with the increment amount? As long as the strength of the company employees is low, it is fine to issue the individual letters. However, imagine your company's employee strength rises to 1,000. To type, print, and post every letter will take at least 5 minutes. This means 5,000 minutes are spent on this motivating activity. Plus, the cost of stationery needs to be included (1,000 letterheads and 1,000 envelopes). Hope you include these costs too in your Cost-Benefit Analysis (CBA) of employee motivation.

Ok...

Regards,
DVD

I agree with Dinesh, except for the letter to employees. It is a professional practice to give a personalized letter to individuals. Employees will always expect the same. It is not just for motivation. One should not be concerned about the time as there is technology to support.