Agribusiness - Hr

8/3/2019 Agribusiness - Hr

1/5

The Back DropAgribusiness-Past and

PresentTime has come to go a stepaheadof just repeating certainphrasesover decades like Agricultureis thebackbone of the country,about70% of Indian Populationlives invillages and so on. Let usnow linkagriculture with agribusiness

inwhatever we do or say withintherealm of agriculture. Atpresent, wecan very well say thatAgribusinesshas entered a new era,marked byvibrant business activities;farmingbecoming hitech andtechnology directed;business becoming moreglobal, farmers getting techsaavy,hitherto less heard businessmodelsin agriculture like commodityexchanges coming up in thecountry,business houses andentrepreneurscompletely inactive inagribusiness even in therecentpast currently showing

interest inagribusiness, globalslowdownpointing out at the importanceoffarming and farming sectorsaresome of the trends that isdefiningnew contours in the countrysagribusiness sectors.Technology and globalizationismaking agribusiness

operations

more competitive, tech driven,fastand trendy. Along with theentry ofnew players in the businessfromeven previously unthought ofsectorslike IT, Telecom, FMCG andothers, there has been animport ofnew culture of work style also.Also

many of the family ownedcompaniesin agribusiness, with the nextgeneration taking up themantle, isundergoing a completemakeoverin terms of work style andfunctioningin tune with the modern times.Emerging HumanResourcesRequirementAll these indicate thatagribusiness is witnessing acompletechange and as a result,callingfor new paradigms in humanresource requirements for thesec-tor. Gone are the days whena companyin agribusiness sector couldfulfill its requirements at itsownpace, going to some

renownedcampuses, or placing adds innewspaper or head hunting foreven thesmallest posts throughemployeereferral or spotting anemployee ofanother company performingwellin the market and wooing himupto join the company.

With the advent of sectors like

F&V retail business, coldchain activities,rural finances anddiversificationof various traditionalcompaniesfrom fertilizer, seed,agrochemicalsbusiness into other relatedbusiness interests, humanresource requirement in thepresentday for agribusiness

companieshas become very critical.Companiesneed quality manpower in theshortest time period. At thesametime, there is increasedcompetition,greater pressure, need forgreater operational efficiencyandgreater focus on the coreactivities.Also, business groups fromdiversesectors like IT, Telecom etcfeel aneed to know more about thesectorvis--vis the right man-poweravailability and requirementaspects.Is Cost Reduction the onlyMotiveDifferent Aspectsof HROutsourcingWhile outsourcing various HR

functionsto independent third partyvendors,an organization, apart fromcost reduction and focusingon itscore activities,

_Consultant capabilitiesandtalent: On many occasions, acompany would like to utilizethe domain knowledge andexpertise of the vendor in acost

effective way throughoutsourcing its strategic core


2/5


Presentactivities in HR._Functions Difficult toManager:Functions like that ofbenefits administration etc.,aresometimes very cumbersome,difficult and time taking for anorganization. Moreover, theseactivities in no way contributeto the core activities of theorganization.In such instances,

an organization looks forwardtowards outsourcing theseactivities.

_Specific Technologies:Manya times, companies offeringoutsourcing services in HRactivities possess certaintechnologiesspecific for the purpose.Owning these technologiesmake sense in case thereis a very large clientele andregular requirements like thatof the vendors of HRoutsourcing. However, theymake less of any economicsense for an organization foritsown manpower management.In that situation, it looksforwardto outsource.

_Resources Not AvailableInternallyWithin theOrganisation: In many

cases,certain resources like that of adatabase or pool of trainedmanpower or networkingcapabilitiesetc of a vendor is eyedby an organization and HRactivitiesoutsourced to utilizethose resources.

_Asset Transfer: In someinstances,outsourcing deals

Pinaki Ranjan DeyAGRICULTURE YEAR BOOK2009 136

help a company to transfersome of its assets-some orentire part of specific assets,to the vendor. It can evenencompasstransfer of some ofits staff.Domain Knowledge and HROutsourcing inAgribusiness-The Need AnalysisOther than the advantages ofany general outsourcing

activitieslike saving of cost, focus oncorebusiness activities and others,some of the specificadvantages ofoutsourcing HR activitiestypical tothe agribusiness sector are:

_Typical nature ofAgribusiness:Agribusiness is quite uniquewhen compared to otherbusinesssectors. The supply chainaspects are quite complex -presence of unorganizedplayerswithin the ecosystem ofagribusiness, requirement ofalot of business acumen alongwith technical knowledgeaboutagricultural sciences alongwith a fair degree ofuncertainty

in the business from the pointof view of vagaries of nature,seasonality of production,perishablenature of products etc.All these calls in for maximumoperational efficiency for theorganization in agribusinesswith minimizing risk at eachaspects of operation includingmanpower management. Dueto seasonality of productionand also business intensity,manpower requirement

fluctuatesbetween various seasons

and many organizationsconsiderstemporary staffing as aconvenient method of utilizinghuman resource mostproductivelyand cost effectively.

_Requirement of technicalknowledge: Agriculturalscienceincludes diverse fieldsfrom genetics and plantbreeding,

entomology, pathology toeconomics and extension.Theagribusiness in the same waycategorises itself withoperationsrequiring manpower fromthese diverse fields ofagriculturesciences. Along these,one requires a right blend ofITexposure and businessacumen.As a result, the selectionprocess of a right candidatefora particular job depends onthetrue understanding of the jobdescription rightlyunderstandingits technical words,knowledgeof the right terminologiesand synonymous keywords,rightly understand the

synergiesand the variations betweendifferent sub sectors withinagribusiness sectors. In short,proper understanding of theseaspects would largelydeterminethe right evaluation of aprospective employee and themanagement may not alwaysafford to do that at every stepin order to save their time forfocusing on more coreactivities.

They then would like tooutsource these activities to


3/5


Presentorganizations specialized inagribusiness sector or havinglong presence in agribusinesssector with qualified technicalpeople.

_Bulk Recruitment Activities:Sectors like retail industry onvarious occasions requires alarge manpower in a veryshorttime. They would in such asituation like to outsource therecruitment function to some

organizations dedicated to theagribusiness sector.Understandingthe rural economy asa backdrop of agribusiness isquite crucial in understandingcompanys manpowerrequirements.For functions likeprocurementin retail operations,one needs to understanddifferentaspects of agri supplychain, interaction with farmersand sensitivities andintricaciesinvolved in dealing with theruralecosystem. An organizationhaving familiarity with theseaspects tend to find andsource the right candidate inshortest possible time to theclients, there by saving timeand money for the client.

_New Entries In the Market

andNeed to ConvinceProspectiveEmployees: New entries canbe in terms of entering a newgeographic area, anestablishedcompany in some othersector diversifying intoagribusiness, an establishedcompany in agribusinessenteringinto a another relatedbusiness, entirely a new

startup or a multinational in

agribusiness startingoperationsin the country. All thesetypes of companies would liketo outsource their recruitmentand different HR activities tosome recruitment agenciesspecialized in agribusiness.Usually, for new entries,unlessits a huge multinational or abig business group,prospective

candidates seeks informationin terms of their futureprospectsand career growth. A detaileddomain knowledge,awareness of the technicalaspectsof agriculture sectoralong with clearunderstandingof the future trend of thesectorhelps to guide a candidate inthe right way and incitefurtherinterest in the company as aprospective candidate.

_Head Hunting for SeniorPositionsWhile Maintaining Secrecy:Sometimes, in thebuildup of replacing a seniorlevel position of anyorganization,secrecy is maintained forvarious organizational andoperational

reasons and generallypreferred to be done throughsome consultants. Extent ofdomain knowledge andnetworkingin the agribusinesssector in such a situationhelpsin sourcing the right candidatein the shortest possible timethrough head hunting.HR Outsourcing inAgribusiness-A Win Win Situation For All

Outsourcing some functionsof HR

activities like recruitment andstaffingis in no way replacing theinternalHR team of an agribusinesscompany. While the internalHRteam of a company takescare ofvarious important activities ofhumanresource development withinthe company along with

variousAGRICULTURE YEAR BOOK

2009 137corporate socialresponsibilitiescoming up in big day now-a-days,it has the luxury of getting aspecializedservice of a third partyprovidingits recruitment needs throughsourcing the right candidateutilizingits domain and technicalknowledgein agriculture sciences andagribusiness.Issues and Challenges inHROutsourcing inAgribusiness

_Shortage of skilledmanpower:One of the major issuesin the sector is the shortageof people who know the

nitty-gritty of agribusiness aswell as the operational areasand skills of human resourceoutsourcing functions. As theHR outsourcing industry inagribusiness is still in anascentstage, agribusinessprofessionalsand agriculturegraduates are not muchawareof the career opportunities inthis sector.

_Existence of manyunorganized


4/5


Presentplayers: HRoutsourcing sector is markedwith many unorganizedplayers,sometimes even byindividualsoperating from their livingroom, particularly in therecruitmentactivities. These unorganizedplayers can operateon a very small margin.However,

HR consulting is sometimesmore than just networkingand having contacts withpeople. It requires a lot ofinvolvementand investments interms of databases, marketresearch, extensive callingandtraveling which is possible fororganized player with adefinitesetup, having offices invariouslocations, manpower andinvestmentcost.

_Disconnect betweenindustryneeds and curriculumoffered by institutes:Unfortunately,in our country, in theagribusiness sector like manyother sectors, there is a greatdisconnect between what theindustry needs and what the

institutes engaged inagriculturalsciences offers. Thecourse curriculum and themind set are very academicand theoretical. Industrywantsreadily employablecandidateswho require far less training.This sometimes becomes amajor hurdle in the way tosourcing the right talent.

_Inherent Risks of HR

Outsourcing: There aresome

risks associated with the HRoutsourcing activities likecandidatesnot joining at the lastmoment causing a lot ofinconvenienceto the companies.Also, on some occasions,positionsare scrapped at the lastminute by organizationscausinga loss to the outsourced

company in terms of mandaysworked on.Important Growth Drivers ofHROutsourcing inAgribusiness

_Booming Agribusiness: Inthe recent years, inspite ofthecurrent recession,agribusiness as a whole isgrowing unlike theircontemporariesin the sectors like IT,exports, Banking etc. Many ofthem have ambitiousexpansionplans too. Despite the recentissue of scanty monsoonrains all over the country, itsexpected that many of thecompanieswould go on with theirexpansion plans. They wouldrequire man power for thatand

would like to outsource mostpart of that._Increased CompetitionandDecreasing Profit Margins:Competition in some of theagribusiness sectors like agriinputs has increasedsignificantly.A lot of consolidation,more globalization etc., hasresulted in reduced profitmargin.As a result, organizations

are willing to outsourcesupporting

activities like recruitmentin a cost effective mannerso as to increase operationalefficiency and concentratemore on their core activities.

_Some Big Names in HROutsourcing intoAgribusiness: Many of thebignames in HR outsourcinghithertoconsulting predominantlyfor sectors like IT, Telecom,

Healthcare etc are noweyeingthe agribusiness sector.Certainly,this would tend to drivethe HR outsourcing activitiesfurther.

_Entry of various MNCsintoAgribusiness: Though manyMNCs are present in India,many other companies fromoverseas are entering thecountryin sectors like retail, foodprocessing and others eitherdirectly or indirectly. Theywouldlike to expand very fast,recruitinga number of people in veryless time. Consequently, theytend to outsource recruitmentfunctions.ConclusionThe flavour of HR outsourcingis

picking up in agribusiness.Manyof the organizations areincreasinglyrealizing the benefits ofhavinga combination of outsourcedand in-house HR activities, amixwhose proportion depends onthesize of the organization.However,one should understand that

like any


5/5


Presentother service industry, one ofthecritical success factors of HRoutsourcing service is themutualtrust and confidence betweenboththe companies and thevendors. Therelationship should be one ofa kindof strategic partners thanmere client

relationship. Companiesshouldselect a vendor on the basisof providingthe maximum returns,sometimesnot only in terms of direct costsavings but also from thepoint ofview of several long termbenefits.On the other hand, vendorsshouldhave a proper understandingof theclients needs, theirorganizationalculture and should alwaysaim atproviding the maximumreturns,stretching that extra mile.Head-Research and Studies,

Concept

Agrotech Consultants Limited

AGRICULTURE

Agribusiness - Hr

Documents

Transcript of Agribusiness - Hr