Honeywell International is a Fortune 100 planetary diversified engineering and fabricating leader with grosss to the melody of $ 30.9 billion. The company has four strategic concern units, viz. – Aerospace, Access and Control Solutions ( ACS ) , Transportation Systems, and Specialty Materials. Honeywell employs approximately 123,000 employees in more than 123 states of which over 10,000 are employed in India. The organisational construction of Honeywell India is illustrated in )
This thesis aims to explicate a design and execution program for a formalistic onboarding plan for two of the Strategic Business Units ( SBUs ) of Access and Control Solutions ( ACS ) viz. : Honeywell Security Group ( HSG ) and ADI.
Honeywell Security Group ( HSG )
Honeywell Security is an international provider and distributer of electronic security systems and solutions. Honeywell Security is a concern unit of Honeywell International, $ 34 billion diversified engineering and fabrication leader, functioning clients worldwide with aerospace merchandises and services ; command engineerings for edifices, places and industry ; automotive merchandises ; turbochargers ; and forte stuffs. ( Honeywell, 2010 )
Honeywell Security has an extraordinary scope of solutions across invasion sensing, Video surveillance, entree control technologies & A ; Home cyberspace systems and invests over $ 50 million a twelvemonth in research and development. It has its technology “ centres of excellence ” in the U.S. , Canada, China, Korea, India, Scotland and France and leverages engineerings that are developed elsewhere in Honeywell and brings them to the security concern.
Honeywell Security South Asia operations spans across Sri Lanka, Pakistan, Bangladesh, Nepal and other South Asiatic states with HQ in India. Headquartered at Gurgaon, Honeywell Security has gross revenues offices in Mumbai, Bangalore and Kolkata catering to all four corners of the state. An exponentially turning concern unit of Honeywell International, Honeywell Security caters to all electronic security demands for Industrial, Government, Defense, Transportation, Commercial, Retail, Hotel, Hospital, Corporate Buildings, IT, ITES, Banking and besides the Residential market.
Lines of Business
Merchandises range from basic camera systems to to the full incorporate systems capable of working on LAN and over cyberspace.
Access Control Systems
Single door applications to incorporate endeavor degree entree control systems.
Incorporate Security Systems
Use of entree control, dismay monitoring, picture badging, digital picture, CCTV, visitant direction and margin invasion sensing on apologist platform to supply a comprehensive security direction solution integrated with procedure control, constructing direction control and other endeavor degree systems.
Intrusion Detection Systems
Intrusion sensing merchandises runing from the simplest door contact to the cardinal station receiving system.
Sophisticated terminal to stop engineering solutions for comfy, secure & A ; informed life.
In India, HSG employs approximately 61 employees representing of about 33 gross revenues employees
ADI is a $ 1.8 billion prima distribution concern embracing security, fire, sound and low electromotive force merchandises, with over 219 subdivisions across North America, Europe, Mid-East & A ; Africa. ADI globally represents more than 700 prima sellers and is a planetary distributer for more than 80,000 merchandises. ADI besides spouses with clients by supplying concern tools, merchandises and services they need to heighten their capablenesss and turn their concern. ( Honeywell, 2010 )
Get downing 2006, ADI launched its distribution concern in Asia with first three subdivisions in India at Gurgaon, Bangalore & A ; Mumbai. ADI besides has a squad of gross revenues professionals in New Delhi, Chandigarh, Lucknow, Jaipur, Pune, Ahmedabad, Chennai, Cochin and Hyderabad. ADI ‘s end in India is to construct a successful distribution theoretical account to fulfill the burgeoning demand for quality and cost-efficient security, fire, sound and other low-tension electronic merchandises in the quickly turning Indian economic system.
ADI in India represents over 40 prima industry trade names in 7 merchandise classs ; over 2000
merchandises and offers its clients a one halt store value proposition at convenient subdivision locations, with multiple trade names, local stocking, competitory pricing, developing & A ; proficient support and client concern Centre all under one roof. In India, ADI employs approximately 120 employees representing of about 82 gross revenues employees.
Lines of Business
Fixed Cameras, Speed Dome Cameras, Digital Video Recorders ( DVR ) , Monitors, Lens, Accessories.
Wired & A ; Wireless Control Panels, Keypads, PIR, Panic Switch, Magnetic Contacts, Gas-leak sensors, Sounders, Sensors, Speech Dialers, Accessories.
Video Door Phones, Multi-apartment solutions, Home Systems, Accessories.
Single & A ; Multi-door Accountants, Readers, Cards, Locking devices, Accessories.
Conventional & A ; Addressable Control panels, Sensors & A ; Detectors, Call points, Notification Appliances, Initiation Devices, Accessories.
Speakers, Amplifiers, Microphones, Intelligent PA Systems, Professional Audio, Accessories.
Chapter 8: Problem Statement
The clip taken for a gross revenues employee presently to go productive, that is, start lending efficaciously to the concern at HSG and ADI divisions is about 6 months to a twelvemonth. This job has been even more consistent in ADI since its entry into the Indian market in 2006. This has a direct impact on productiveness and gross coevals. Productivity is defined by an employee ‘s accomplishment of their cardinal consequence countries ( KRA ) with a primary focal point on mark gross accomplishment. Retention of employees is another concern particularly at ADI. The abrasion degree is 13 % at HSG and 31 % at ADI year-to-date ( YTD ) .
This Management Research Report aims to understand the cardinal grounds for abrasion in the two divisions and the holds in productiveness.
Chapter 9: Hypothesis
Harmonizing to a survey conducted by the Aberdeen Group, 90 % new hires make their determination about whether to remain in the company within 6 months of fall ining. Inspite of this lone 88 % of companies have onboarding plans of continuance less than 6 months ( Refer to ) . Another research reveals that over 50 % of new hire gross revenues people leave voluntarily or are terminated before they even become productive.
The above statistics indicate the correlativity between a formalistic onboarding plan and the productiveness of an employee thereby “ taking to the hypothesis that puting in a formalistic onboarding plan and other engagement enterprises improves productiveness and keeping of an employee and increases grosss. ” It is a cost that needs to be incurred by a company so that the employees become productive assets by bring forthing steady gross watercourses on a regular footing.
Chapter 10: Approach and Methodology
This undertaking is approached through a combination of primary and secondary researches. The primary research piece includes interviews with the concern leaders, gross revenues employees and human resource directors. The purpose is to analyse the job from the concern, employees and the procedure proprietors ‘ position.
The secondary research was conducted via published studies and white documents about onboarding best patterns. Once the consequences of the research were tabulated, an onboarding model was designed based on the spreads identified between the current and coveted province. A cost-benefit analysis is besides conducted to gauge the effectivity of the onboarding plan.
Last, through the usage of Six Sigma tools, a Failure Modes and Effects Analyses ( FMEA ) survey is undertaken for the proposed onboarding model to place, prioritise and extenuate possible hazards associated with the plan. At the terminal, some precedence action points are suggested for the execution of the plan.
Two questionnaires were rolled out for the research based on the initial inputs from the Human Resources squad, viz. – for the concern leaders and the gross revenues employees.
The questionnaires were sent to caputs of the two SBUs and based on their handiness, they were interviewed. The questionnaire for the concern caputs was designed with the purpose of placing the nucleus issues in procedures which might hinder employee productiveness ( for illustration, enlisting policy, onboarding/training employees, public presentation rating or battle ) and to understand the coveted province of a productive employee from the concern leaders ‘ position.
The 2nd questionnaire was sent to a few of the gross revenues employees at both of the SBUs. The sample employees selected for the interviews consisted of new gross revenues employees who were approximately 6 months old in the organisation. The others included some who have been with Honeywell for over a twelvemonth. The purpose of the interview was to place the key challenges faced by the new employees in acquiring adequately oriented to the concern.
The secondary research was conducted with the purpose of understanding onboarding best patterns. Some of the published studies and white documents consulted were taken from Corporate Leadership Council ( CLC ) , Aberdeen Group, Kaiser Associates, Bersin Associates and Gallup Consulting.
Chapter 11: Analysis
Employee Profile at ADI
Figure – Employee break-up by map in ADI Figure – Gross saless v/s Non-sales employee mix
As displayed in Figure 14 and 15, the gross revenues map forms a major part of the employee population in Honeywell ADI. Understanding that ADI is in the distribution concern and the presence of legion participants, both organized and unorganised, makes the market highly competitory and explains the gross revenues goaded nature of the organisation.
Figure – Entire work experience of employees in ADI Gross saless Division
The division employs more skilled employees than fresh alumnuss ( Figure 16 ) . The maximal gross revenues employee work force has a entire work experience between 2-4 old ages
Figure – Work Experience in ADI Gross saless Division ( in months )
ADI has a reasonably new work force ; most employees have spent merely approximately 6 months in the organisation ( Figure 17 ) . This signifies that there is a high turnover in the ADI and people are being hired more often. Additionally, the trueness of ADI employees seems to decrease over the old ages spent in the organisation.
Figure – ADI Gross saless Employee Industry Experience Profile
Most gross revenues employees have a background in security or IT. This implies that Honeywell aims to enroll as many people with a background in Security, although due to a deficiency of available skilled endowment, they prefer to enroll from the IT industry, followed by distribution ( Figure 18 ) . A demand for proficient cognition is the ground for IT and security taking precedency over distribution. Other industries include telecommunications, computing machine hardware, FMCG, chemicals, dish telecasting suppliers etc.
Employee Profile at HSG
Figure – Employee break-up by map in HSG
Figure – Employee break up Gross saless v/s Non Gross saless: HSG
As displayed in Figure 19 and 20, merely like the ADI division, the gross revenues function excessively forms a major part of the employee population in the HSG division every bit good.
Figure – Entire work experience of employees in HSG Gross saless Division
The division employs more skilled employees than fresh alumnuss ( Figure 21 ) . The maximal gross revenues employee work force has a entire work experience between 2-4 old ages. However this fluctuation is less in HSG as compared to ADI.
Figure – Work Experience in HSG Gross saless Division ( in month )
Figure – Composition of employees by term of office in organisation – Comparative position HSG vs. ADI
While experienced in the industry, HSG has a workforce new to Honeywell ; most employees have spent merely about six months in the organisation ( Figure 22 ) . However a comparative expression at the composing of employees by term of office in the organisation ( Figure 23 ) , suggests that there are a greater figure of employees hired at a faster rate in ADI than HSG. In ADI. 37 % of the employee population has spent six or less than six months in the organisation as compared to 27 % in HSG. Besides there are a greater figure of older employees in HSG than ADI. This suggests that employee keeping is better in HSG than in ADI for employees who spend more than 36 months in the organisation.
Figure – Gross saless Employee Industry Profile: HSG
Most gross revenues employees have a background in IT or Security. This implies that Honeywell aims to enroll as many people with a background in Security, although due to a deficiency of available skilled endowment, they prefer to enroll from the IT industry, followed by System Integration. A demand for proficient cognition is the ground for IT and Security taking precedency over System Integration. ( Figure 24 )
Interviews with Business Leaderships: Challenges and Findingss
( Please mention to and for the inside informations of the interview )
This subdivision summarizes the cardinal findings from the interviews conducted with the concern leaders of the ADI ( Harish Vellat ) and HSG ( Anil Mehra ) Divisions severally.
aˆ? To enable the gross revenues employee to hold an intelligent conversation with the client.
aˆ? Meet both merchandise and category wise marks
aˆ? To acquire a good cognition about both Honeywell and rival merchandises
aˆ? Understand the client and preempt his outlooks.
aˆ? Clearly province aims and desired results of the onboarding plan to the employees
aˆ? Low consciousness about the industry and therefore deficiency of relevant endowment.
aˆ? Lack of a formalistic onboarding/ preparation agenda
aˆ? Challenge to administrate employees based in distant locations
aˆ? No formalized feedback procedure to estimate the effectivity of the onboarding plan
aˆ? To convey the employees on board at the earliest
Interviews with New Gross saless Employees: Findingss
aˆ? Most respondents have relevant work experience. A batch of them have worked in the profile of a System Integrator. Previous employers: Godrej, Vodaphone, Voltas, Sony Ericsson.
aˆ? The aggressive fast paced nature of work is a challenge. The merchandise portfolios that the employees were managing at Honeywell are much larger as compared to their old functions where it was much smaller.
aˆ? Employees sense a deficiency of in-depth cognition about the merchandises.
aˆ? Lack of lucidity of role/ procedures
aˆ? Control measures implemented in instance of deficiency of lucidity: Technical squad, subdivision director, co-workers. Most employees said that they prefer reaching their immediate co-workers foremost due to easy range.
aˆ? Other employees supported the thought of holding a buddy/mentorship system in topographic point since it would function as a platform for possible employees to take on higher functions
aˆ? Induction winded up excessively fast. Too much information in really small clip
aˆ? Lack of clear apprehension of the concern theoretical accounts.
aˆ? Peoples based in distant locations face a job in making out to their RMs straight
aˆ? Changing the mentality of people to open up to a niche product/market
aˆ? Lack of lucidity on procedures particularly order and aggregation procedures
aˆ? Merchandises are priced at par/high priced compared to rivals and the challenges are in warranting the merchandise to them.
Ideal versus Current State of New employee productiveness at Honeywell
aˆ? Time to Productivity – Currently it takes about 6 months to a twelvemonth for an employee to make productiveness
aˆ? Selling Skills – Employees selling accomplishments is presently based on their old work experience. They lack selling accomplishments specific to Honeywell and the distribution theoretical account.
aˆ? Industry/ company knowledge – Employees come from similar industries and have a just apprehension of the industry. However they lack the apprehension of the impact of their part to Honeywell aims.
aˆ? Product Knowledge – Employees do non experience confident about their apprehension of the merchandises as they think the merchandise preparations wind up excessively fast and the merchandise portfolio is big. A few respondents besides felt that Honeywell merchandises are priced at par or higher than a few rivals and they find it disputing to warrant the merchandise to the clients.
aˆ? Learning internal procedures ( order, engagement, fixing measure of measures etc. ) – Employees do non experience comfy with the procedures and use old work experience to follow with procedures
aˆ? Build relationships with assorted maps ( commercial, selling, proficient, supply concatenation etc. ) – Lack of interaction with selling squad, unequal proficient support
aˆ? Engagement in twenty-four hours to twenty-four hours selling activities ( prospecting/ meeting client ) – Employees selling accomplishments is presently based on their old work experience. Lack of lucidity on mundane procedure which increases follow ups with managers/colleagues.
aˆ? Time to Productivity – Desired province would be to cut down the clip to productiveness to 3-4 months
aˆ? Selling accomplishments – Employees should be able to do an intelligent conversation with the client. They should possess employee good prospecting accomplishments and should continuously pass on with the clients by inquiring inquiries, listening to them and roll uping the information and thereby draw an action program to near the same.
aˆ? Industry/ company cognition – Productive employees should possess a thorough cognition of the assorted merchandises offered non merely by Honeywell but besides the rivals. These employees should be able to link single aims to Honeywell aims.
aˆ? Product cognition – The employees should hold a deep apprehension of the merchandises. They should be able to convey out the strengths of each merchandise to the client to warrant the monetary value and add value.
aˆ? Learning internal procedures ( order, engagement, fixing measure of measures etc. ) – A productive employee should adhere to all internal procedures from the start to the closing of an history ; client rating, payment, order pickings, charge
aˆ? Build relationships with assorted maps ( commercial, selling, proficient, supply concatenation etc. ) – A productive employee demands to work in coherency with other functional squads to acquire better market information and melody the company ‘s environment to market conditions ( rival moves, altering market tendencies, calculating demand )
aˆ? Engagement in twenty-four hours to twenty-four hours selling activities ( prospecting/ meeting client ) – A productive employee systematically follows up with the client, is highly antiphonal to client demands and prepares a program of action from themselves.
Summary of Ideal versus Current State
Figure – Summary of Ideal versus Current State
The current province of Actual versus Target Gross saless accomplishment and Bonus Payouts is summarized below.
Actual versus Target Gross saless and Gross Margin Achievement
Entire Market Size ( $ )
Market Share ADI %
ADI Annual Revenue ( $ )
Entire market size ( $ ) times market portion of ADI ( % )
ADI Gross Margin ( $ )
Actual Gross Margin for ADI
# Entire Gross saless Employees in ADI
# New employees ( non rated )
Gross Target per employee per twenty-four hours ( Rs. )
Gross Target per employee per twenty-four hours ( $ )
( 1 USD = Rs. 44 )
# working yearss
52 hebdomads times 5 on the job yearss per hebdomad subtraction 21 paid yearss off + 8 national vacations
Annual Revenue Target per employee ( $ )
Gross saless mark per employee per twenty-four hours times # of working yearss
Annual Revenue Target for ADI ( all employees )
Annual Gross saless mark per employee times # entire gross revenues employees in ADI
Weights in Gross saless Incentive Plan
Target per employee per twenty-four hours ( $ )
Gross border for ADI is 20 %
Annual mark per employee ( $ )
Annual mark per employee times # of working yearss
Annual mark for the ADI division
Annual mark per employee times # entire gross revenues employees in ADI
Actual versus Target Mismatch
Actual as a % of Target
Weighted ( Actual as % of Target )
75 % :25 % weight to Revenue: Gross Margin in SIP
Figure – Target Gross saless Achievement
Figure 29 shows the existent versus mark accomplishment by the gross revenues employees at the ADI division. The entire market size as mentioned before for the Electronic Security Market is USD 349 million. ADI histories for approximately 5 % of the entire market portion and its gross border for FY2010 was recorded at 13 % . There were 82 gross revenues employees as of June 2010 of which 32 were new ( less than 6 months old ) and were non rated for public presentation. The Cardinal Results Area ( KRA ) set for each gross revenues employee includes “ Billing of Rs.80,000 ( USD 1818 ) per twenty-four hours and run into hebdomadal marks. ” For inside informations of the all the KRA ‘s please refer to. Assuming an employee has 5 working yearss in a hebdomad and there are 52 hebdomads in a twelvemonth of which there are 21 paid foliages and 8 national vacations, the entire figure of working yearss is 231. The one-year gross per mark is therefore USD 420,000. For a typical gross revenues employee at ADI the gross revenues incentive plan is split between single gross mark accomplishment and ADI ‘s gross border mark accomplishment. The gross border mark for ADI was set at 20 % . The Individual gross and gross border SIP constituents are split in the ratio of 75:25. Knowing the division ‘s one-year gross accomplishment in FY2010 was USD 17.45 million and the mark gross is USD 34.44 million, we can deduce that the existent gross as a per centum of mark gross was merely 51 % . Additionally the existent versus mark gross border accomplishment is calculated as 65 % ( 13 % /20 % ) . Delegating the several weights based on the SIP, the existent as a per centum of mark accomplishment is 38 % and 16 % for the gross and gross border constituents severally.
These figures clearly suggest that the division is manner behind accomplishments of its marks. A closer expression at Figure 30 besides supports the possible grounds for this mismatch.
Bonus Payout ( Actual versus Target )
Payout % of mark payout – Planned
Performance at 75 % of mark
Performance at 100 % of mark
Performance at 130 % of mark
Actual fillip payout
What % of mark was bonus paid out – Actual
# Gross saless employees who exceeded mark public presentation ( bonus payout & gt ; 100 % )
Honeywell Performance & A ; Development ( HPD ) – 9 block evaluation ( 1,2,4 )
# New employees who were non rated
Potential population at hazard
# entire gross revenues employees in ADI – ( # of new employees non rated + # gross revenues employees who were paid fillip )
Potential abrasion rate
Current abrasion rate
Figure – Bonus Payouts
Figure 30 illustrates the existent fillips that were paid out in FY2010 to the ADI gross revenues employees. The gross revenues inducement policy distinguishes the payout at different degrees of public presentation as follows:
Figure: Gross saless Incentive Policy
Performance Target Achievement %
Payout ( % of mark payout )
Based on the limited information available, the figure of employees who exceeded their public presentation and got a fillip payout of greater than 100 % was estimated based on the public presentation evaluations. Honeywell follows a 9-block public presentation evaluation matrix called the Honeywell Performance & A ; Development ( HPD ) . The matrix is based on two parametric quantities: consequences and behaviours with three evaluation graduated tables viz. : Exceeds Honeywell Standards, At Honeywell Standards and Below Honeywell Standards. Additionally, the base wage to incentive is pay mix is in the ratio 65:35. Mention to for the matrix. Based on the matrix, evaluations 1, 2 and 4 signify exceeds criterions evaluations in one of the two parametric quantities at least or both. There were 25 employees who received an HPD evaluation 1, 2 or 4, while the figure of employees who were non rated since they were new is 32 in figure. This means that the staying 25 employees form portion of the possible employees who are the hazard of go forthing the organisation. This accounts for an abrasion rate of around 30 % . As per the information provided by the Human Resources squad every bit good, the abrasion rate was indicated as 31 % YTD.