Facilitated by: Dr. TV Rao

1. TVR LS
Hurconomics
A Re-look at Economics of HR
Interventions
National HRD Network
Virtual Learning session October
18, 2012
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2. TVR LS
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3. 85 Managers of a company
were asked the following
questions
TVR LS
 To what extent did you have clearly set work plan for
the last six months?
 To what extent did your seniors with whom you work
shared the same understanding of your work plan and
priorities in the last six months?
 To what extent are you able to put to use most of your
capabilities in the last six months?
 To what extent are you clear about the work plan and
priorities for the next six months?
 They were asked use the following scale:
– 100% = fully, 75% = Mostly, 50% = somewhat, 25% = A
Little, 0% = Not at all
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4. To what extent did you have
clearly set work plan for the last six
months?( n= 85)
TVR LS
 100% = 11 Managers
 75% = 59 Managers
 50% = 10 Managers
 25% = 5 Managers
 0% = None
 Calculate the Percentage of un-planned
work which may be a wastage.
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5. TVR LS
28% Unplanned work or time
Wasted due to lack of clarity
i.e. Nearly twenty four persons
time wasted in last six months due
to unplanned work or 12 person-
years of unplanned work
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6. TVR LS
If a manager’s boss does not
share the same work plan and
priorities as the manager what
are the consequences to the
individual, his boss and the
organization?
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7. Extent seniors shared same
TVR LS understanding of work plan and
priorities in last 6 months
 100% = 20 Managers
 75% = 32 managers
 50% = 20 Managers
 25% = 9 managers
 0% = 1 Manager
 Calculate the percentage of non congruence of
work plans and the consequent damage to the
organization.
 In this case 31% non congruence 7

8. Extent to which managers were
TVR LS
able to put to use their
capabilities in last 6 Months
 100% = 11 Managers
 75% = 39 Managers
 50% = 28 Managers
 25% = 5 Managers
 0% = 0 Managers
 Percentage of Unutilized competencies = 33
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9. Extent to which Clear about
TVR LS
their Priorities for the Next six
months
 100% = 26 Managers
 75% = 38 Managers
 50% = 16 Managers
 25% = 3 Managers
 0% = None
 Level of Plan Congruence = 76%
 If this is your data are you happy with
this?
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10. TVR LS
What do you think of this
company’s PMS?
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11. TVR LS
Do you know the following?
 If you are paying ten thousand rupees a month
to secretary in your department he/she is
costing you one rupee a minute.
 A thirty thousand rupee salary person costs
rupees three a minute.
 A manager with a CTC of 12 lakhs costs Rs. 600
an hour and Rs. 5,000 a day
 What do you think is the ROI this manager is
expected to give to the company?
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12. TVR LS
Talent and Time
 Talent has become scarce and it has
become strategic
 Hurconomics is a way of measuring talent
through costing time
 The concepts I have used in this context
are:
– COT = Cost Of Time
– R- COT = Real Cost Of Time
– O-COT = Opportunity Cost Of Time
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13. How much does a tea break
TVR LS cost to the company?
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14. TVR LS
What should be the agenda of a
meeting of the Board or a sales
team or a daily production
meeting?
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15. How much does it cost to
have a PRD? What returns
can you expect?
TVR LS
 Take the example of MRs and monthly
meetings or their quarterly PRDs
 How do you get the best out of these PRDs
or meetings?
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16. How can you recover
investments on recruitment
if your retention rates are
TVR LS
low?
 Induction?
 Integration?
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17. How can you calculate
TVR LS
training investments and
ensure returns to the
full?
 Five conditions for making training an
investment
 Estimate the time needed to recover the
cost of training in conflict management
between two Senior Managers who use
about 120 e-mails a year due to
differences of attitudes?
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18. TVR LS How much are you
spending on your HR
department? Are you
getting the best from it?
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19. TVR LS
How does HR contribute to
your intellectual value
addition and share holder
value?
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20. TVR LS
Open Forum
Thank You
tvrao@tvrao.com
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