Business Portal of India - Indian Economy News, Latest Finance News India & Indian Business Magazine
 
Free Gift Offer
Subscribe Now
Latest Edition
BW Home » Cases » Healthy, Wealthy And Wise News Update
Lost Password? Register
My BW | Advertise With Us
 
 
Print E-mail
CASE STUDY: RECESSION & COSTS
Healthy, Wealthy And Wise


“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
- Warren Buffett

MEERA SETH
23 Jan 2009

(Pic by Amit Verma)
Abraham Varkey looked at the young man Before him. Barely 29, Pulakesh, a very hardworking junior manager sat there, restless, broken and lost as if the whole world’s burden had descended on him. Abraham, the Managing Director of EG.net could not tell what the problem was. Anuraag Gera, the Human Resources head, stood by, hand poised on mobile phone should Abraham ask for a doctor. Three other staffers who had been present in the Audio Visual Room watching the Obama victory when Pulakesh broke down, hovered around him.

Abraham requested everyone to leave. Only Gera stayed back but shifted to an extreme corner. As Abraham coaxed him with words, Pulakesh calmed by and by… then he said, “Will change come now, Sir? Will all this… this… this… go away?” Abraham was disturbed; he could not tell what Pulakesh meant, but it seemed to him that today’s young were worse off than today’s older. The older have insecurities of health and ability to pay for it, the young fear life itself.

“I have just been feeling totally not myself sir,” said Pulakesh as he began to experience some clarity. “Everything feels different and unworthy. Even things and places smell different to me.”

Pulakesh’s colleagues mentioned that he had been restless over his 68-year-old father’s decision to return to work to improve the family income. Youngest of five siblings, Pulakesh had been most unhappy; his two older brothers who traded in computer peripherals were having to scale down their business. So, was this the trigger, wondered Abraham.

Elsewhere, Gera was grappling with a different ‘shock’. Sales director Gopi Anand had been desperate. He had wanted the ‘selling during recession’ morale building workshop to happen but, Gera could not sanction more money. This quarter the training budgets had been cut by 32 per cent across all divisions. Yet Gopi persisted, and Gera kept fielding. “You generate Rs 25 lakh and I will let you do this workshop,” he had said casually, confident that that was not going to happen. Now Gopi had come back saying, “My teams are willing to give up the annual medical check up (AMC) for the workshop.”

Read Analyses
Zahid H. Gangjee
Achal Bhagat
Comforting a startled Gera, he added, “Anuraag, you do get bogged down by rules. Be practical — during bad times it is more important to protect the organisation’s health and morale. If sales fall, organisation health will slide, as will all round morale. As for healthcare (HC) people are being paid quite well to look after themselves. Paid HC is a product of a labour-led market; but, times have changed! ”

After three days of pontificating over Gopi’s idea, Gera relented. Why not! When the company is bleeding, let health become the responsibility of the individual! I will convince Abraham.’

Gera had suddenly found a great model; he now wanted to restore other training workshops, which he had had to put on hold. Part of the plan was to issue a farmaan to the organisation to finish their AMC by 1 November. He knew many would baulk as it was impossible to find time for anything at year end. Now, he would freeze the budget early and then use the ‘favourable variance’ to spend on training.

Here Abraham followed up on Pulakesh — he certainly needed help. Calling Gera, he discussed his anxiety, “I am going to get him counselling support if he will agree. He is under a lot of stress from what I heard. It seems like a lot of build up… And he is only 29!

“Preventive healthcare cannot be ignored. And this is not about human resources; this is about maintaining my assets in perfect shape for productivity.”
Gera: Frankly, Abraham, I don’t understand. Question is not ‘why is he anxious’; question is, is he the only one anxious? Everybody is! But Pulakesh more so; why? Because his education is not going to hold out in the next 5-6 years that it’s going to take for the economy to stabilise! Pulakesh also knows his increments are going to be meagre; well, he needs to get out there and put shoulder to grinding wheel, improve his skills, take a few courses and prepare for the long haul…

Abraham: And what is that condition called, Gera? Don’t they call that ‘stress’?

Gera: Abraham, what is special about Pulakesh’s condition that we have to change our policies, our cost structures? I have a budget of Rs X, and this X is shrinking day by day, so that I can’t even tell you whether that X will buy 25 training modules for my star teams or 20. You want me to put that money into health? Yes, Pulakesh had a breakdown — he is a grade IV employee, the allowance for his lot is… well, lower. See, my point is: the environment is weird, it is manifesting differently in different families; these are harsh times, the dirt is beginning to show. So, there is no room for any dainty shuddering. Life looks grim for most people. Pulakesh’s father has had to go back to work? Ok. Rageesha has a bad bruise under her ear; no prizes for guessing how it happened. Her husband has been laid off by Alcove India. Dharam has developed angina pains again; his son’s US education bill has climbed 23 per cent simply owing to the rupee. What all will we pay for?

As Abraham grew thoughtful, Gera grew restless…


 
img Articles
img Blogs
img Conversations
img Placements
img Events
 

About Us | Careers | Feedback | Contact Us | Disclaimer | Privacy Policy | Subscribe BW | Advertise With Us
An ABP Pvt Ltd Publication Copyright © All rights reserved.