Share your thought: How good is this, for a company's Health to disclose a Personnel Policy in Media without informing to the employees?
Please Read This News:
ICICI shelves big hikes, promotions this year
http://epaper.timesofindia.com/Default/Client.asp?Daily=ETD&login=default&Enter=true&Skin=ET&GZ=T&AW=1209210064140
I have received calls from many people working with ICICI Bank and everyone mentioned about this news, most of the employees are feeling cheated, said that this is not the right way to announce such thing, the management should have informed the employees by internal memo then publishing in the news paper.
Share your thoughts why such announcements are done? What are the benefits management expecting by this action? How should employees act in such situation? Should they quit or stay ?
Expecting lot of good answers as always.
Thanks in advance
Regards
Arvind Mittal
arvind.mittal24@gmail.com
Clarification added April 29, 2008:
Thanks a ton for sparing time and sharing your valuable thought on this matter. I understand that ICICI Bank cannot issue such statement to media by mistake and this is for sure is not a goof up by any junior employee but announced by Group H R Head. This is not the first time ICICI is doing so, it has happened in 1998 and 2002 as well. Most of the answers here condemned this move of ICICI except of few.
My opinion is:
· At first instance it hurts every employees because all are working for money and personnel growth. Money is the biggest motivator in an employee’s career. They have worked for a year thinking that they will perform outstandingly and get a promotion and lot of money as performance bonus as well a good increment but at then end of the year if they come to know that company has decided not to give anything then it disappointing, discouraging and demoralizing them.
· ICICI may have thought that we will announce this and see the action for three months and those who were really sitting on the fence, those who are working only for money, those who does not have faith in our policies along with some really nice guys also, would leave the company and they will not have to terminate lot of people to cut the cost. And after three months they will do the appraisal exercise and announce bonus, promotion and increment too through media.
I suggest that in such situation employees should have patients and stand beside the company’s move, show the trust in their policies, show courage to perform outstandingly again and again without monitory motivation and gain the trust of the organization for your long-term goals.
Answers (9)
Bill N.
Content Creator and Technical Writer
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There is no way this can be deemed a wise decision, as it is abnormal, and can be seen as insulting. Maybe it was just an ignorant action by public relations or human resource staff who were junior or distracted, but in no way is it a good move.
Arvind,
From the perspective of the Management:
Its a take it or leave it message from the management. Some people will leave because of this and the management would be well aware of that. Given the current market conditions the management of the bank would not mind losing some and become a little lighter.
From the perspective of the employees:
They need to judge for themselves whether this is a result of a single bad year. This is a tough year globally for all in the banking and financial sector. So if they sense that it is a question of one bad year then it should not be a concern. However, if they sense a systemic problem within ICICI that is when they should be concerned.
Fundamental Problem:
There is a fundamental problem with this approach. This shows lack of openness. It shows a clear separation of management and the rest. It shows that the management is not transparent (am not suggesting that it is possible to be 100% transparent but this does not reflect an open environment). They could have used it as an opportunity of involving people (again am not suggesting that people are involved in knowing all details in the books of the bank) It is a great opportunity to communicate. In such times an open communication not only sends a strong positive message of involving people in the affairs but it also serves the purpose of becoming lighter as some people who are sitting on the fence will still leave. As an organization after such communication you are left with the right set of people who feel and believe that they are involved.
Regards
Pravin
Linda F.
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Arvind,
Bill could be right, maybe it was a mistaken premature move, however I have to think Pravin hit the nail on the head.
A difficult economic environment can lead to such imperialistic take it or leave it moves. The possible fat trimming may benefit the bottom line now but where will it leave them in the long run. Many talented employees will take note and rethink their loyalty and security, loss of them will impact future potential.
As an employee I would be affronted, but I would question the action internally until I was satisfied I knew the answer.
LInda
This is a move condemned the most by most speakers. I for one would not believe in a complete black and white opinion. I would particularly add grey shades to it.
My observation:
1. there is an excerpt from the news article, "According to sources, increments and bonuses for employees would be meagre as well. The bank may even decide against giving bonuses and increments to its top-level executives, though a final decision is yet to be taken on this."
2. Are you really sure, there was no communication what so ever. In large companies like ICICI, many people are ignorant of a lot of information circulated within the company. And when the news affects them directly, they start exclaiming.
However, as mentioned above, the final decision is yet to be taken. So the news is not official but a tentative/speculative one.
My interpretation:
1. Companies many times have to circulate such news through informal channels to maintain their Share Price Performances. This news reflects that ICICI will not write down the losses but is taking measures to maintain its profit margins. This helps in managing share market's sentiments.
2. I would expect that the management would circulate the news either through an email or teams would be briefed Team Managers/Zonal Managers before making a press release.
3. As mentioned by Mr. Pravin, some people are always on the fence. This unofficial press release would work as a repellent for them. Those sensible would wait for an official statement and would then make a move.
I hope my answer adds value to the discussion.
Cheers
Hi Arvind
I would not imagine even in my wildest dream that it is a goof up by any junior level employee or something like that. I would say it is a well thought of decision of management, which incidently seems to have no courage to face the employees head on and may be trying to pass on message through such means.
Although it is definitely the job of the top brass at ICICI to ponder on this but to my limited knowledge it will not help at all to save already beleagured image of ICICI out of recent crisis and it would only potray them in poor light.
But in my opinion for sure this can not be a mistake of any one or set of employees but a well thought of, well deliberated decision among top few people. To me this is not a good communication style with its own employees by any management.
Thanks
Arvind,
Employees feel devalued when an employer doesn't make the effort to inform them of news in advance. This is one of the reasons why 75% of all employees don't feel loyal to their employers; 60% of all employees are looking for another job; and less than half of all employees aren't happy at work! Employees feel unappreciated, disconnected, and overlooked. The ICICI employees have every reason to be outraged! I suppose if many employees quit over this, it would send a message to management. Even that might not do any good, though. Unfortunately, companies that don't feel a need to adequately communicate with their employees typically have arrogant leaders that are so focused on the bottom line (and their own bonuses) that they aren't concerned about the morale of their employees. They don't realize that low morale directly impacts the bottom line...as well as the reputation of the company. There are way too many business leaders with this callous, impersonal attitude. Fortunately, there are also many great leaders who are sensitive to the feelings of employees, and realize the importance of communicating and showing appreciation. I hope many of the ICICI Bank employees can find new jobs that have better leaders!
Best of luck to everyone.
Janet
In the long term, revealing personnel policy changes to the media before telling employees harms the company's health by setting up a toxic corporate culture. Actions like this foster an environment where employees feel disrespected and distrustful of management, which ultimately impacts a company's ability to perform at its peak in a competitive market.
And not in a good way.
Arnab S.
National Head - Modern Trade, B2B & Business Development at Emami Biotech Limited
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I agree to a large extent with Pankaj's reply & also to the fact that such media disclosures never happen by mistake. Not at companies like ICICI.
Some newspapers have reported about power shifts within the organisation & also of a conspicuous silence maintained by the chief.
Therefore, it seems that there are some internal conflicts, very high up.
For a mammoth like ICICI, it may be a calculated to move to intentionally release bytes (as quoted above) which will be pro-media in every way & at the same time divert attention from problems which "may" have much worse financial / corporate implications.
ICICI has been quite media savvy (remember the Reliance split?) & I do not remember any untoward incidence, at least in the recent past.
Finally, we should not rule out the "free extra cheese" most news media dole out today, in-spite of the trans-fat awareness!
