Human resource management in the
changing business environment of the
Indian construction industry: a case study
Shashank Shah and Ajith Sankar R.N.
Shashank Shah is based at
School of Business
Management,
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Sri Sathya Sai Institute of
Higher Learning,
Anantapur, India.
Ajith Sankar R.N. is an
Assistant Professor based
at PSG Institute of
Management, Coimbatore,
India.
Dr Shashank Shah would like to
express his gratitude to
Professor Peter Pruzan,
Professor Emeritus,
Copenhagen Business School,
Denmark, and Visiting Faculty,
Sri Sathya Sai Institute of Higher
Learning, Prashanti Nilayam,
for his guidance through the
course of the research work.
A special note of appreciation is
due to the Former Deputy
Managing Director of the case
study company for his help in
gaining access to the senior
executives at the headquarters
of the company at Chennai,
India. The authors humbly
dedicate this endeavour to
Sri Sathya Sai Baba, Revered
Founder Chancellor, Sri Sathya
Sai Institute of Higher Learning.
Disclaimer. This case is written
solely for educational purposes
and is not intended to represent
successful or unsuccessful
managerial decision making.
The author/s may have
disguised names; financial and
other recognizable information
to protect confidentiality.
DOI 10.1108/EEMCS-05-2012-0095
ABC Constructions[1] is a US$12.8 billion technology, engineering, construction and
manufacturing company and is one of the largest and most highly respected companies in
India’s private sector[2]. ABC’s operations covered a broad spectrum of industries and thus
it became a recruiting ground for other companies. In the 1990s, as the Indian economy
became liberalised, talent opportunities outside the company increased. As the company
moved away from merit-based promotions, many employees were looking for opportunities
outside. The chairman of the company expressed the operational context of ABC’s people
practices, by saying:
ABC would have grown faster if we had no turmoil on talent; that’s our only limitation, not the market
place. I am not taking orders or quoting for new jobs because I don’t know how to deliver in the middle
of all these people going away for lucrative jobs all over the world. Some 70% of the best Indian talent
goes out of India. Out of the balance 30%, 25% goes to non-infrastructure, non-manufacturing-
oriented job opportunities. So, only 5% of the talent is available to us. ABC grabs the best ones and
then, after a year or two, with a golden stamp of ABC, seven out of the 10 leave. So, within three years,
we are back to square one. All I have to do is training and more training[3].
Introduction to the company
Headquartered in Mumbai, the company operates primarily in India, but its operations extend
across the globe. It markets plant and equipment in over 30 countries, has manufacturing
facilities in India, China and the Gulf and a supply chain that extends to five continents. Within
India, ABC is said to have a presence in almost every district[4] through a nationwide network
of distributors of its products. In response to the changing market dynamics, ABC has gone
through a phased process of redefining its organisation model that facilitates growth through
greater levels of empowerment. The new structure is built around multiple businesses
designated ‘‘independent companies’’ or ‘‘ICs’’. These ten ICs include: hydrocarbon, heavy
engineering, ABC construction, power, electrical and automation, machinery and industrial
products, information technology, financial services, shipbuilding, and railway projects[5].
The 2015 strategic vision of the company is ‘‘To make ABC a INR 75,000-crore company’’.
ABC has a distinguished record of achievements including the world’s largest coal gasifier
made in India and exported to China, India’s first indigenous hydrocracker reactor, and the
world’s largest continuous catalyst regeneration reactor. Among the most recent success
stories of ABC is its association with India’s first nuclear submarine – Arihant, inaugurated by
Prime Minister Manmohan Singh at Vishakhapatnam in July 2009. The company is also
known to be an organisation that contributed significantly to nation building. In 2009, the
chairman mentioned that India is shining only in a few cities and not in villages. ‘‘All those six
and eight-lane highways ABC builds are of little use if the branches that need to connect the
towns and villages, that are a little distance away, are not built as well’’, said the chairman[6].
In an interview to MoneyLife, the chairman said:
VOL. 3 NO. 6 2013, pp. 1-, Q Emerald Group Publishing Limited, ISSN 2045-0621 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 1