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Why a psychometric test?

Tuesday, May 13th, 2008

A dynamic business environment needs people in key positions to be well equipped in terms of skills- functional, managerial as well as personal; to handle high pressure and deliver under any situation. While it is routine for HR professionals to utilize various tools from credential checks to skills assessments and interviews to identify potential performers, employee recruitment and career management decisions require a lot more. It is imperative that an individual’s personality is evaluated before critical decisions can be taken which can harshly impact productivity.

Organizations are now turning to psychometrics for evaluating candidates in terms of their personality characteristics, interpersonal style and job-specific aptitudes to maximize job success and minimize the chances of untoward hiring or promotion decisions. There has been a steady increase in the deployment of psychometric assessments, including various personality, aptitude and vocational interest tests, in addition to traditional screening procedures, to get a 360-degree picture of the individual that is being hired or promoted. Organizations that have integrated effective psychometric assessment procedures into their recruitment processes have come to regard this methodology as an indispensable guard against the potentially expensive outcomes of even a few erroneous hiring or promotion decisions.

Recruitment is not the only area where psychometric assessments are used, although it is the most common and almost certainly where a majority of people first come into contact with this kind of assessment. Other frequent uses are for:

>> Career and management development

>> Team building

>> Internal promotion

>> Training needs analysis

>> Counseling

For the success of any psychometric assessment the tool needs to adhere to certain best practices. Analysis of the score and its usage also form a key part in the success or failure of such a tool. The interpretation of the score has to be done by a certified psychologist and the report generated should be in a friendly format. The report from most personality tools acts as a great interview input which can be used to structure interviews and gauge candidates minutely through focused questioning. It is important to note that personality assessment tools Do Not provide select or reject answers as the measurement is only subjective. Personality assessments are evaluators of the inclination of subjects on defined parameters and select or reject decisions can be taken on the specific requirements of a job role and company.

So how do these psychometric assessments benefit an organisation? By allowing meaningful comparison between candidates on relevant competencies employers can make sure that different backgrounds or experience levels do not overly affect the selection process. Personality is one of the most important elements of individual role fitment and one of the hardest to judge - at an interview people will generally put forward the image that they want you to see. By using well-established measures, employers can gain an extra insight into an individual. These can also provide pertinent issues for conversation in subsequent interviews that are relevant to the specific candidate, rather than being general standard questions.

Undertaking meaningful decisions in most recruitment/promotion situations can be an onerous task and taking calls on the intrinsic personality can often be fraught with danger. But these are calls which managers necessarily have to take and any tool bringing a modicum of insights into the matter will be a huge help to companies.

Tale of a 27-year old Sarathbabu graduated from IIM-A

Monday, May 12th, 2008

When 27-year old Sarathbabu graduated from the Indian Institute of Management, Ahmedabad, he created quite a stir by refusing a job that offered him a huge salary. He preferred to start his own enterprise — Foodking Catering Service — in Ahmedabad.

He was inspired by his mother who once sold idlis on the pavements of Chennai, to educate him and his siblings. It was a dream come true, when Infosys co-founder N R Narayana Murthy lit the traditional lamp and inaugurated Sarathbabu’s enterprise.

Sarathbabu was in Chennai, his hometown, a few days ago, to explore the possibility of starting a Foodking unit in the city and also to distribute the Ullas Trust Scholarships instituted by the IT firm Polaris to 2,000 poor students in corporation schools.

Sarathbabu describes his rise from a Chennai slum to his journey to the nation’s premier management institute to becoming a successful entrepreneur. This is his story, in his own words.
Childhood in a slum

I was born and brought up in a slum in Madipakkam in Chennai. I have two elder sisters and two younger brothers and my mother was the sole breadwinner of the family. It was really tough for her to bring up five kids on her meagre salary.

As she had studied till the tenth standard, she got a job under the mid-day meal scheme of the Tamil Nadu government in a school at a salary of Rs 30 a month. She made just one rupee a day for six people.

So, she sold idlis in the mornings. She would then work for the mid-day meal at the school during daytime. In the evenings, she taught at the adult education programme of the Indian government.

She, thus, did three different jobs to bring us up and educate us. Although she didn’t say explicitly that we should study well, we knew she was struggling hard to send us to school. I was determined that her hard work should not go in vain.

I was a topper throughout my school days. In the mornings, we went out to sell idlis because people in slums did not come out of their homes to buy idlis. For kids living in a slum, idlis for breakfast is something very special.

My mother was not aware of institutions like the Birla Institute of Technology and Science, Pilani, or the Indian Institutes of Technology. She only wanted to educate us so that we got a good job. I didn’t know what I wanted to do at that time because in my friend-circle, nobody talked about higher education or preparing for the IIT-JEE.

When you constantly worry about the next square meal, you do not dream of becoming a doctor or an engineer. The only thing that was on my mind was to get a good job because my mother was struggling a lot.

I got very good marks in the 10th standard exam. It was the most critical moment of my life. Till the 10th, there was no special fee but for the 11th and the 12th, the fees were Rs 2,000-3,000.

I did book-binding work during the summer vacation and accumulated money for my school fees. When I got plenty of work, I employed 20 other children and all of us did the work together. That was my first real job as an entrepreneur. Once I saw the opportunity, I continued with the work.
Life at BITS, Pilani

A classmate of mine told me about BITS, Pilani. He was confident that I would get admission, as I was the topper. He also told me that on completion (of studies at Pilani), I will definitely get a job.

When I got the admission, I had mixed feelings. On one hand I was excited that for the first time I was going out of Chennai, but there was also a sense of uncertainty.

The fees alone were around Rs 28,000, and I had to get around Rs 42,000. It was huge, huge money for us. And there was no one to help us. Just my mother and sisters. One of my sisters — they were all married by then — pawned her jewellery and that’s how I paid for the first semester.

My mother then found out about an Indian government scholarship scheme. She sent me the application forms, I applied for the scholarship, and I was successful. So, after the first semester, it was the scholarship that helped me through.

It also helped me to pay my debt (to the sister who had pawned her jewellery). I then borrowed money from my other sister and repaid her when the next scholarship came.

The scholarship, however, covered only the tuition fees. What about the hostel fees and food? Even small things like a washing soap or a toothbrush or a tube of toothpaste was a burden. So, I borrowed more at high rates of interest. The debt grew to a substantial amount by the time I reached the fourth year.
First year at BITS, Pilani

To put it mildly, I was absolutely shocked. Till then, I had moved only with students from poor families. At Pilani, all the students were from the upper class or upper middle class families. Their lifestyle was totally different from mine. The topics they discussed were alien to me. They would talk about the good times they had in school.

On the other hand, my school years were a big struggle. There was this communication problem also as I was not conversant in English then.

I just kept quiet and observed them. I concentrated only on my studies because back home so many people had sacrificed for me. And, it took a really long time — till the end of the first year — to make friends.
The second year

I became a little more confident and started opening up. I had worked really hard for the engineering exhibition during the first year. I did a lot of labour-intensive work like welding and cutting, though my subject was chemical engineering. My seniors appreciated me.

In my second year also, I worked really hard for the engineering exhibition. This time, my juniors appreciated me, and they became my close friends, so close that they would be at my beck and call.

In the third year, when there was an election for the post of the co-ordinator for the exhibition, my juniors wanted me to contest. Thanks to their efforts I was unanimously elected. That was my first experience of being in the limelight. It was also quite an experience to handle around 100 students.

Seeing my work, slowly my batch mates also came to the fold. All of them said I lead the team very well.

They also told me that I could be a good manager and asked me to do MBA. That was the first time I heard about something called MBA. I asked them about the best institution in India. They said, the Indian Institutes of Management. Then, I decided if I was going to study MBA, it should be at one of the IIMs, and nowhere else.
Inspiration to be an entrepreneur

It was while preparing for the Common Admission Test that I read in the papers that 30 per cent of India’s population does not get two meals a day. I know how it feels to be hungry. What should be done to help them, I wondered.

I also read about Infosys and Narayana Murthy, Reliance and Ambani. Reliance employed 20,000-25,000 people at that time, and Infosys, around 15,000. When a single entrepreneur like Ambani employed 25,000 people, he was supporting the family, of four or five, of each employee. So he was taking care of 100,000 people indirectly. I felt I, too, should become an entrepreneur.

But, my mother was waiting for her engineer son to get a job, pay all the debts, build a pucca house and take care of her. And here I was dreaming about starting my own enterprise. I decided to go for a campus interview, and got a job with Polaris. I also sat for CAT but I failed to clear it in my first attempt.

I worked for 30 months at Polaris. By then, I could pay off all the debts but I hadn’t built a proper house for my mother. But I decided to pursue my dream. When I took CAT for the third time, I cleared it and got calls from all the six IIMs. I got admission at IIM, Ahmedabad.
Life at IIM, Ahmedabad

My college helped me get a scholarship for the two years that I was at IIM. Unlike in BITS, I was more confident and life at IIM was fantastic. I took up a lot of responsibilities in the college. I was in the mess committee in the first year and in the second year; I was elected the mess secretary.
Becoming an entrepreneur

By the end of the second year, there were many lucrative job offers coming our way, but in my mind I was determined to start something on my own. But back home, I didn’t have a house. It was a difficult decision to say ‘no’ to offers that gave you Rs 800,000 a year. But I was clear in my mind even while I knew the hard realities back home.

Yes, my mother had been an entrepreneur, and subconsciously, she must have inspired me. My inspirations were also (Dhirubhai) Ambani and Narayana Murthy. I knew I was not aiming at something unachievable. I got the courage from them to start my own enterprise.

Nobody at my institute discouraged me. In fact, at least 30-40 students at the IIM wanted to be entrepreneurs. And we used to discuss about ideas all the time. My last option was to take up a job.
Foodking Catering Services Pvt Ltd

My mother is my first inspiration to start a food business. Remember I started my life selling idlis in my slum. Then of course, my experience as the mess secretary at IIM-A was the second inspiration. I must have handled at least a thousand complaints and a thousand suggestions at that time. Every time I solved a problem, they thanked me.

I also felt there is a good opportunity in the food business. If you notice, a lot of people who work in the food business come from the weaker sections of the society.

My friends helped me with registering the company with a capital of Rs 100,000. Because of the IIM brand and also because of the media attention, I could take a loan from the bank without any problem.

I set up an office and employed three persons. The first order was from a software company in Ahmedabad. They wanted us to supply tea, coffee and snacks. We transported the items in an auto.

When I got the order from IIM, Ahmedabad, I took a loan of Rs 11 lakhs (Rs 1.1 million) and started a kitchen. So, my initial capital was Rs 11.75 lakhs (Rs 1.17 million).

Three months have passed, and now we have forty employees and four clients — IIM Ahmedabad, Darpana Academy, Gujarat Energy Research Management Institute and System Plus.

In the first month of our operation, we earned around Rs 35,000. Now, the turnover is around Rs 250,000. The Chennai operations will start in another three months’ time.
Ambition

I want to employ as many people as I can, and improve their quality of life. In the first year, I want to employ around 200-500 people. In the next five years, I hope to increase it by 15,000. I am sure it is possible.

I want to cover all the major cities in India, and later, I want to go around the world too.

I have seen people from all walks of life — from the slums to the elite in the country. That is why luxuries like a car or a bungalow do not matter to me. Even money doesn’t matter to me. I feel bad if I have to have food in a five star hotel. I feel guilty.

Personally, I have no ambition but I want to give a house and a car to my mother.
Appreciation

I did not expect this kind of exposure by the media for my venture or appreciation from people like my director at the IIM or Narayana Murthy. I was just doing what I wanted to do. But the exposure really helped me get orders, finance, everything.

The best compliments I received were from Narayana Murthy and my director at IIM, Ahmedabad. When I told him (IIM-A director) about my decision to start a company, he hugged me and wished me luck. They have seen life, they have seen thousands and thousands of students and if they say it is a good decision, I am sure it is a good decision.

Foodking Services PVT. LTD. by Sarathbabu

10 tips to earn like Warren Buffett

Monday, May 12th, 2008

“An investor needs to do very few things right as long as he or she avoids big mistakes.” Warren Buffett

One of the world’s most successful investors, Warren Buffett is the richest man on earth. Chairman of the Berkshire Hathaway, Buffett’s wealth jumped by $10 billion to hit $62 billion during 2007. Buffett’s life is an encouragement for investors across the globe.

So what makes the world’s wealthiest man so rich? Buffett believes that successful investing is about having common sense, patience and independent research.

A look into Buffett’s simple, yet intelligent mantras for investing and minting millions.

1. Focus on not losing money rather than making it. Don’t own any stock for 10 minutes that you wouldn’t own for 10 years.

2. A frugal billionaire Buffett believes in straightforwardness. He advises investors to take easy decisions. Never buy when you are doubtful. Invest only if you understand the businesses well.

3. A proponent of value investing, he believes that one must take decisions on his own. He doesn’t believe in listening to analysts or brokers. The best investing decisions come from oneself.

It is not necessary to do extraordinary things to get extraordinary results.

4. Buffett advises to invest in ‘old economy’ businesses, companies, which have been around for fifty years and will continue to have a long innings.

5. We have often heard of people suffering heart attacks when markets crash. Well, Buffett advocates a sound temperament for stock market success.

6. You don’t need to be a genius to succeed in the stock markets. People who can stay cool will succeed in the long run. Always keep in mind the hidden costs, from commissions on active stock trading to high mutual fund fees.

7. Buffett always looks at businesses he can understand; look at the profits in the past, long-term potential of the company, good top level management of the company and companies that have a good value proposition. The strategy is to think about the business in the long term.

“You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.”

8. Invest in businesses with great management. Always keep a track of the management of the company. The top decision makers have a lot to do with the company’s performance.

9. One of Buffet’s biggest strengths is independent thinking. Many people go by what the experts says or what others do but belief in one’s own judgement is the key to stock market success.

10. Patience pays, says Buffet. He says one must not worry too much about the price of the stocks. What’s more important is the nature of business of the company, earnings capability and its future potential.

Good investors never rush to make money. They give time, thought and work on investment decisions. The mistakes that others make should be a lesson for you.

Make an immense impression at your interview!

Saturday, May 10th, 2008
by Ann

Apart from what you say, what makes a big impression on most interviewers is the way you say it, or the way you carry yourself — whether you can overcome your nerves enough to project a confident, personable individual.

Tackling just these issues is the Body Language book by Carolyn Boyes, part of the need to know? series published by HarperCollins. Here’s an excerpt:

An interview is, in effect, a sales meeting in which you are selling the product — ‘you’ — to a purchaser — ‘the interviewer’. Creating the right kind of chemistry with the interviewer through body language could clinch the interview for you.

Making your entrance

As soon as you are seen walking through the door, you are making an impression, so make sure it is the right one. Slowing down or dipping your head as you enter will look anxious and tentative. Rushing in can also seem nervous. Keeping an erect posture with your head held high in contrast looks confident.

Pause at the door, smile at the interviewer and walk through decisively. You are aiming to appear personable and warm, as well as business-like.

Transfer any coat, briefcase or handbag into your left hand to leave your right hand free ready to shake hands confidently with the interviewer.

Handshakes

Be aware of your handshake. Avoid bone crusher or limp/dead-fish handshakes. If you have a tendency to sweat or have cold hands, make sure you have wiped your hands or warmed them up before you enter the room. Use a firm handshake. Hold out your hand horizontally so that your palm meets the other person’s at the same angle.

Remember that a handshake can give you a lot of information about someone. Notice how the interviewer offers their hand. When they clasp it, do they turn your hand so that their palm is facing down, putting themselves in the dominant position? Do you both walk towards each other into each other’s personal space equally or do they pull you towards them? Do they release your hand first and push it away? Are they relaxed or nervous? Is their hand warm, cold, dry or damp? Is their arm fully extended or relaxed? Do they touch you with their other hand?

Eye contact

Make eye contact with your interviewer(s) when listening. If there is more than one interviewer, make sure you make equal eye contact with both. Remember that too much eye contact can seem aggressive, so scan the upper triangle of the face (from the eyes to the forehead), rather than stare directly into the other person’s eyes without interruption. Break your eye contact when you are thinking of an answer. It looks natural.

Sitting

Keep your posture confident and relaxed. A good trick is to take a deep breath when you sit down and lower your shoulders. It will make the interviewer response positively to you. Make sure you do not slump down in your chair or lean back away from the interviewer. It will look as if you are not interested. Instead, sit back into the chair so that you are well supported and, if you can, rest your elbows on the chair arms.

Personal space

Be aware of rules on personal space. Make sure your chair is positioned so that you can chat easily without invading the interviewer’s territory. If you break the unwritten space rules, you could scupper your chances of success.

Open body language

Avoid leg and arm barriers and closed body language — you will just look defensive or submissive. Keep your gestures open and relaxed.

If there is a desk between you and the interviewer, sit back slightly so you have room to move freely. If you want to emphasize a point, keep your palms open and towards the interviewer to look friendly.

At the same time, be aware of how relaxed or formal their interviewer is. Stay in tune with them and let them set the tone for the interview. If you relax too much and are far more laid-back than they are, you will appear either sloppy or overconfident. If, on the other hand, you are too formal, they will find it hard to relate to you.

Matching

Get into rapport with the interviewer as quickly as possible. If you are not mimicking each other’s body positions naturally, do it consciously. Match the angle of their back and position in the chair. Notice how they are breathing. If they talk quickly, they are probably breathing high in the chest. If they talk slowly, they are probably taking deep breaths. Get into their rhythm for a few minutes. After a while this will become automatic.

Watch while you speak

Be aware not only of your own body language but also the body language of the interviewer. Let their body language signals be your guide as to the level of their interest. Are they bored? Interested? Defensive? In agreement? Disagreement? When you make a point or give an answer, how do they respond? Notice if their body language suddenly changes. Interviewees frequently speak for too long, so be aware if the interviewer starts to nod more rapidly or tap their fingers. They may want to interrupt you.

Show interest

Vary your facial expressions to show enthusiasm and interest. When they speak, lean forwards, nod, or rest your forefinger to your chin to show your full attention. Lower your eyebrows, even frown slightly, to show concentration. Part your lips slightly. Also, make sure you avoid arm barriers when you are listening, as well as when you are speaking.

Be definite

Use your hands to emphasise points when you are speaking, but be careful not to use aggressive gestures such as making a fist or punching the air. Keep the conversation free of interruptions.

Leakage

Be aware of any possible leakage in your gestures when you are being interviewed. Prepare for the interview and rehearse answers to any difficult questions that you expect to be asked. This will allow you to feel relaxed during the interview, which will come across positively in your body language. Otherwise your body language could inadvertently make you appear deceitful or cause you to look as if you are avoiding an issue.

Saying goodbye

When you say goodbye, allow the interviewer to instigate a handshake. Return it with a firm handshake and then be aware that they will probably usher you from the room, as they are the dominant person in the situation. Finally, make sure you end the interview with a smile and eye contact.

Most irritating things at office

Saturday, May 10th, 2008

With most of us spending 10-14 hours at work everyday, our workplaces have become our second homes. Consequently, even the slightest of obstacles here tend to blow up into vexing issues, particularly if they are not tackled in time. Very often, these issues relate to our colleagues’ behaviour. It can get a little awkward when it come to addressing some of these directly, as a lot of them concern subtle aspects of behaviour that are difficult to articulate.

Let’s take a look at some of the most irritating aspects of workplace behaviour and what we can do about them.

Groupism

This is by far the most annoying aspect of a workplace.

“It can absolutely turn you off,” says Revathi M, assistant manager — sales, with an IT security company. “It takes a heavy toll on productivity because, if you don’t belong in a certain group, you tend to feel left out. Then, you don’t enjoy going to work anymore.”

The snide remarks and covert glances that result from groupism are not only thoroughly unprofessional, they can also result in emotional hurt which is often difficult to express. It eventually leads to frustration and may result in people leaving their jobs.

Casual chatter

“The most irritating thing at the workplace is groups of women chatting endlessly about clothes, cosmetics and jewellery. Some of them even trade in these items at work. I think it’s really unprofessional,” says Purnima Gupta, a teacher at a reputed Mumbai school.

While informal conversations are fine when one wants to make small talk, one needs to realise extended chatter at the workplace disturbs other people. It also looks unprofessional.

Hypocrisy

This is widely touted as being ubiquitous and is universally detested.

Sugary sweet behaviour in front of a person and backstabbing comments behind their back are known to prevail in virtually every kind of human interaction. The natural fallout of hypocrisy at the workplace is lack of trust, which greatly affects work relationships and productivity.

Discrimination

“When we are angry with something our boss does, we try hard to control our emotions and behave in a subdued manner. However, if a peon goofs up even slightly, a lot of us don’t think twice before yelling at him. Is this justified?” wonders Revathi.

Dignity of labour and respect for all kinds of work is a prerequisite for a healthy work environment. We must appreciate that people at all levels provide value with whatever work they do. It can be discouraging if they are not treated with dignity, considering they work to the best of their ability, given individual constraints.

Messy cubicle partners

Another attribute that can really upset people is chaotic surroundings. Eating at the workstation and dropping tidbits of food, or having heaps of papers and files that spill over to your neighbours’ desks can be very bothersome.

A lot of people are fussy about cleanliness and are used to a certain standard of hygiene around them. If those standards are not met at the workplace, it can be very demotivating.

Undue inquisitiveness

While it is common for colleagues to turn into good friends over time, a certain level of formality is expected while one is at work. When this formality is breached, not everyone may take it well.

“When colleagues are unduly concerned about where I went the previous evening, with whom, why, etc, I really feel like telling them it is none of their business. If I wish to share personal thoughts with someone at the workplace, I need to be comfortable with that person. It has to be voluntary. The concept of personal space and privacy is rather alien to our culture,” observes Purnima.

Taking credit

It is but normal that we want to be appreciated for the work we do. However, since most of the work we do in an organisation is team effort, it is important credit is accordingly shared.

“When it comes to getting work done, the higher-ups often give pep talks on how team work is important. However, when the results come in, each individual and department wants the credit. Typically, in any organisation, the frontline sales people take away the appreciation. The back-end operations group is conveniently forgotten, even though they contribute significantly to the success. This can be extremely frustrating for the people who have worked behind the scenes,” says Revathi.

Talking loudly

“I wish some people had silencers fitted into their throats!” says Purnima exasperatedly. “At work, one must realise formal, subdued behaviour is called for. Etiquette demands we keep our voice low so others are not disturbed. The most annoying bit is when people excitedly almost yell over their phones for no reason. I’m sure it’s equally annoying for the person at the other end of the line.”

Talking loudly is frequently associated with rustic behaviour that lacks sophistication. It is advisable we keep our tone and pitch low when we are around colleagues.

Tackling annoying behaviour

It is indeed hard to keep your cool and focus on productivity when behavioural factors affect performance at work. But it is necessary to be assertive if one has to solve the problem.

Of course, assertiveness is different from being accusatory. Assertiveness is all about talking in a factual manner without being judgmental. It involves conveying facts and their possible repercussions without getting emotional, or rude, in the process. Though it is easier said than done, professionalism demands one remain objective while dealing with such situations.

At the organisational level, the HR department — and managers and supervisors as welll — need to have a keen eye for observing team dynamics. Active intervention and counselling go a long way in smoothing ruffled feathers.

Avoiding annoying behaviour

As individuals, there are a few things that may help us avoid being in the bad books of our colleagues:

Avoid backbiting

At the workplace, never discuss a person in his/ her absence. This simple rule goes a long way in maintaining a healthy environment.

Seek feedback

If you think a colleague has been shying away from you for a while, casually enquire to find out if your behaviour has upset him/ her. If that is the case, patiently listen to your colleague’s feelings without getting defensive. Once the person has opened up, it can be easier to resolve the issue.

Respect everyone

Envision the situation if the entire housekeeping staff goes on strike. We often take a lot of people for granted simply because they may not demand attention. But that does not mean their work is any less important.

Observe formality

A lot of your colleagues may become good friends over time. However, work ethics say you remain sensitive to the feelings of everyone at the workplace. Hence, over-friendly behaviour ought to be avoided.




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