July 17, 2010.

IIPM Ahmedabad,

Synopsis on guest lecture by Vikas Kothari – IIPM Alumni

Salaries vary from industry to industry and company to company, while

depending upon the profile offered. Maybe, a Reliance which offers more than
the value of a candidate is just to reduce attrition rate and retain an employee by
giving them more than they are worth of; probably a TATA won’t do them
while follow a vice versa rule just to induce a feel of performance in them and
not to retain them in the company just to add cost to the company.

Either the difference is not there in the companies which follow a strict rule of
HR policies or they just want to eliminate the incompetent employees out of
their company so as to avoid future nonperformance stress out of their
employees and they can plan well in advance for the non performing employee
and have pink slip ready for the employee who don’t perform at par with the
best performing employee and there is a huge layoff when there is a notice of
cost cutting and as a result the cost center of the company – which of-course is
the HR department, who in turn try to layoff non productive employees who in
anyways are not providing to the company on an immediate terms.

Giving an example of the contemporary issue of the SATYAM case the speaker
for the day enlightened us with the fact that productive worker of the company
are always rewarded even at times of layoff as well as during the time of
increments and promotions, hence being a nonperformer in the company may
earn you a salary but not give you guarantee of the future in the company, while
it’s also true for the people involved in entire salary based industry. Giving an
example of his immediate colleagues in the industry he explained the variance
of the pay scale and compensation by various companies in the same industry
depending upon the area and sector they are operating in.
Lastly, the speaker gave us an insight about the questions we can expect in the
interview based upon his teaching experience in various B-schools in the
locality.

A standard question which students presume to be involving high technicality

would normally include the terms of basic finance, which the actual industry
person understands is the basics of trade and maximizing profit or atleast not
making loss at the commodity level. The question being cited was of “How to
recover the invested amount atleast in the time when the market is witness
downward trend” – an answer in the simple fact of buying the physical assets
and having them in the market for sale when the market is upward it would
obviously be giving us profit while the market is going down the physical assets
would be used for hedging.

With that the speaker called it a day and sighed off form the campus.

Thanking you

Lenin Raj
IIPM/FW/09-11