The Hindu Business Line : Negative vibes spread like nasty viruses

Story so far: During a video-conferencing programme on the company's quarterly results, there is an unexpected question from a reporter about the proposed real estate deal in Kerala. What puzzles me is how this classified information leaked out of the company.

Episode 98

In a competitive environment, how can companies safeguard their secrets? This was the question I'd left with you a few weeks ago. Responses have been quite terrifying. "My company lost an order because our detailed proposal fell into the hands of our rival," writes Anup in his mail. "We had sent it to our lawyer for vetting. Though we don't have any proof of his involvement in the blunder, we stopped giving him further legal work.

As if to justify our doubts, months later we came to know that the competing company that won the contract had also hired the same lawyer for assistance in some real estate transaction." I can't say if the lawyer was the black sheep, but there is an onus on professionals to be seen as fair. Auditors also have to ensure that their clients don't see them as being biased or betraying.

"Swati, what you say is a problem that seems to be plaguing the cops these days," writes Jose, referring to the ongoing sensational investigation. "Breaking News, apparently revealing the next move of sleuths, must have helped the accused escape. As a result, it turned out to be a wild goose chase; the special team returned empty handed after flying from one city to another."

According to some, there are planned leaks as well, so less said the better.

"Companies should do an ABC analysis of information," suggests K. Subramaniam, a CA from Delhi. "While C category info may be released on the public domain, such as Web sites, after vetting, the other two categories need more care in handling and storage. There should be strict policies even about taking photocopies of critical information, which is why there is a security risk in having a copier in too many places in the office."

Almost on similar lines is a mail from Dheeraj, a CA student from Bangalore. "Swati, I noticed at a client's company that important information was going out almost anywhere, and everywhere, because of a cost-cutting measure."

If that's puzzling, he explains: "To save on stationery, they began to use both sides of printed paper. This meant gathering all sheets printed on one side and again feeding them on to the Laser printer. At times, what one department considers as too routine becomes spicy masala for another department. Thus, memos and email printouts become scribbling pads and packing material!"

A case of being penny-wise and pound-foolish. Perhaps, some money could have been spent on a shredder.

"Swati, I thought there should be more transparency," opines Chitra Sharma, writing from Mumbai. "Are you suggesting that companies function secretively?"

No, you got me wrong, Chitra. There has to be transparency in reporting, in deals and so on, but strategy is a different game, you'd agree.

*********

Riddle of turnover

One day, during a chat over coffee, Gupta told me how he was unable to understand why there was a higher than average staff turnover in the production department. "They are more mobile," I suggested as a possible answer, but he shook his head.

"No, Swati, some of the chaps who left have not taken up any other job for the past couple of months." I said, "Guptaji, you must pay them more, perhaps."

He was not inclined to agree with me. "We're already paying them higher than our competitors. Well, it may remain a puzzle till I retire, who knows?" After he left, I thought I should find an answer to the mystery, even it meant going all the 99 steps!

As if driven by gut, I went over to the library-cum-recreation room at the far end of the production department. I found the room sparsely filled, with a few of the department staff playing chess, reading magazines, or just gossiping.

At one of the tables were some senior staff, talking to a newly recruited youth. They must be friends, I thought, when passing by them towards the magazine stand. But no, they were discussing the company affairs.

One said, "I heard they're going to downsize, and throw out everybody who was recruited in the past about two years." Another opined that the HR policies adopted by the company needed a great change. Yet another was categorical that the young boy had made a great mistake choosing to join here.

Negative vibes

Without picking up quarrels, I went back to my desk and summoned from HR details about staff who had left the production department during the year. The clerk was happy to lighten her rack by sending me stuff that she didn't want. Over the next about two hours, I tabulated the data and found that of the 35 who had left, five had cited higher studies as the reason, while eight women dropped out after marriage, and two staff had domestic compulsion to relocate to a place where the company didn't have any operation. The balance 20 had written, `personal' as reason for leaving.

No exit interviews had been conducted before relieving them of their duties, and I made a note of it, so that I could tell Gupta about the lapse. Out of this, I picked up randomly the twelfth name in the list and called. "Hi, Mithun, why did you leave?" I asked, after introducing myself. "Swati, I didn't want to, but Sambhuji told me that they are going to downsize. I didn't want to be thrown out, that's why I quit." I remembered that Sambhu was one of the senior personnel I had seen in that recreation room indoctrination.

The next call was to Chirag. He said, "Swati, it was Dilipda who frightened me about Gupta's temperamental behaviour!"

Why do some senior employees become so negative towards the organisation, and indulge in brainwashing new recruits, I asked myself and sank in the chair, quite despondent. Why? Send in your thoughts by Friday.

Swati_CA@hotmail.com

For archived episodes of this column click on: www.thehindubusinessline.com/nic/swati/index.htm

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Calm thinking about public issue

Number Crunch - 348

Case laws to grapple with in the tax terrain

Put off by set-off being struck off

Products are services, and services are products

Negative vibes spread like nasty viruses

MVPs take great pride in a job well done

Sticklish issues

Cartoon Corner