Shyamal Majumdar: Usurping the line authority

THE HUMAN FACTOR

In February this year, a leading private bank opened a branch in one of the poshest localities in Mumbai with great fanfare.

Everything, the top management thought, was in place: a swanky office in a locality which had the right mix of high net worth individuals and top-notch companies, a high-decibel marketing pitch and a clutch of well-segmented innovative products. To top it all, the bank hired some of the brightest banking professionals for the branch.

Three months later, the top management is worried. Reason: the branch manager (BM), who had an impressive track record in his previous job, resigned. What he told the management in his long resignation letter makes an interesting case study of how bad HR policies can ruin even the best thought-out plans.

The sanctioned staff strength of the branch was as follows: BM in the rank of vice president, one manager (operations), two deputy managers, three executives who will act as front desk staff and two sales executives.

At the time of his recruitment, the BM was told that he would have an active role in the selection of his team members.

However, just a day after joining, he found that the team was already in place as the HR department in the head office (HO) "wanted to help him out". His first meeting with his team members, however, did nothing to convince the BM that the headquarters was trying to be helpful.

Here's why. The manager (operations) said he wanted to stay back in the zonal office as he liked the job profile there but has now been "dumped" in the branch, as he is perceived to be too outspoken. He has a couple of job offers and would the BM mind if he asks for an early acceptance of his resignation?

There were more surprises in store. At the time of his induction, the BM was introduced to three executives who have been hired specifically for his branch and were undergoing training.

"But after joining the branch, I was told that all three were found to be too useful by the main branch and have been retained there. Instead, the HO deputed two others [instead of the sanctioned three] who I found had nothing to say except how they have been victimised by the bank's management," the BM said in his resignation letter.

The two sales executives (sanctioned strength: two) said they were new to the bank and knew nothing about the products.

After this rather useless meeting, the BM called the HR boss for an urgent training session for the executives or deputation of at least one person who had some idea about the locality he would operate in.

The answer from the HR boss was startling: the training calendar wouldn't permit such an ad hoc session and none of the branches were willing to let go of any sales executive. In other words, make do with whatever you have.

Of the two deputy managers, only one came for the introductory meeting with the BM. The other person, he was told, would join a couple of days later.

Almost a month later and after endless phone calls, the HR department said the absentee deputy manager would join in a week. The BM then called her up directly only to be told that she had already resigned from the bank and had got an acknowledgement from the HO to this effect.

The HR department, however, insisted they had no knowledge of any such communication from the lady and, therefore, cannot "process" the BM's request for an immediate replacement. Till date, the branch has not got a second deputy manager.

To top it all, one of the two sales executives applied for a transfer and the HR department immediately granted his request. The BM asked for a quick replacement and was "" for a change "" happy that his request was immediately processed.

The relief was, however, short-lived as within a week after her joining, the new sales executive applied for a one-month leave as she was getting married. Did the HO know about her marriage plans? he asked.

"Of course," came her reply.

The BM also cited the case of a person who refused to join the bank. Twice HR interviewed him before he declined a third interview. Prior to each interview he was made to wait for hours before he was called in for the interview.

During his second interview, HR quizzed him about why he wanted a job with the company. "I don't know if I do. The call came from your guys only," came the reply.

The suggestions given by the BM in his letter has set the top management thinking. HR's over-involvement in the hiring process, he said, could be counterproductive.

"Also, line managements must have the broad authority to tailor HR practices to individual business unit needs. In many of the best companies, HR's roles typically include identifying and developing future leaders, and developing HR policy in support of corporate goals "" all this without usurping line authority," the BM said in his letter.

In short, HR must shift from a "micro" to a "macro" view of its managerial mission. Some food for thought for HR professionals.