The situation DOTA faces in India is fairly easy to explain. It is based on the basic laws of economics. There is an increasing demand for talented software engineers; hence their price (salary offered) increases accordingly. This has meant that competing companies and perhaps other firms too are offering higher compensation in order to secure skilled staff. Understandably this has led to the good engineers to look elsewhere for higher paid work. The Indian operation is also fairly new (established in 2002) so the inherent company loyalty that long-term employees usually acquire will not be present here yet.
Again this is also influenced by economic and environmental changes – company loyalty is now no longer as evident as it was previously, with many high-profile staff leaving companies to join competitors, as is widely reported in the media nowadays. As we saw in the Background section DOTA pays their local US staff way over the norm, perhaps they need to reduce this and allocate some of the resulting monies to attracting the best software engineers in India by offering more competitive salaries.
DOTA needs to keep up-to-date with the latest trends in this industry in India. DOTA also needs to looks at its strategic retention and turnover in this region. Where are they going wrong? They need to have a healthier turnover rate where the weaker staff leave but the talented workforce stay. This can be tackled by implementing reward and incentive schemes for good performance for example. Some turnover is good for a firm – it keeps them on their feet and gives the new company a fresh face.
Too much turnover, however, is demoralizing for the rest of the staff and may have a negative impact on client satisfaction if it is cited once again for a project being delivered late. The potential HR crisis it faces in the US at SEG can not be explained by the same methods. These issues involve organizational socio-cultural issues and people rather than economic forces and need to be studied in detail in order to understand them and provide guidance towards possible solutions. Three female employees in the SEG department have filed charges of sexual harassment with the EEOC.
So rather than having one disgruntled employee taking things way too seriously this has now become a chain of events that is quite likely to affect DOTA seriously as these accusations have also led to the expanding of the ongoing EEOC investigation to further look into recruitment and selection practices at DOTA. For a company of DOTA’s small size (in number of employees, and the corresponding number of women) it is quite unusual for there to have been three sexual harassment cases all in the same department (SEG), which only has 11 women, in the timescale of one month.
Therefore it is not surprising that the EEOC has decided to expand its investigations into the firm. DOTA must treat this as an urgent and highly important issue, not only within the scope of the HR issues but within the company as a whole entity. Hence this may impact on DOTA’s future corporate strategy. Another point to note is that DOTA’s HR Strategy and the corporate strategy seem to be disconnected.
DOTA was established 16 years ago and the current HR Director was hired 8 years ago but there is still a major discrepancy by how some of the senior staff view the HR Director and how she believes the HR department should be recognized. Let’s look at the cases being investigated. Do we have concrete proof? The EEOC defines sexual harassment as a “form of sex discrimination that violates Title VII of the Civil Rights Act of 1964. Title VII applies to employers with 15 or more employees, including state and local governments.
It also applies to employment agencies and to labor organizations, as well as to the federal government” (EEOC, 2007) “Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when this conduct explicitly or implicitly affects an individual’s employment, unreasonably interferes with an individual’s work performance, or creates an intimidating, hostile, or offensive work environment” (EEOC, 2007). So let’s apply this to the issue that has arisen in DOTA.
The Manager at SEG admits that there is some “horse playing, nude posters, and some loose jokes and humor” within the department and has been so for a while. Subsequently he adds that a joke e-mail was sent to the whole department, which included a couple engaging in what he calls the “final stages of a romantic evening on their honeymoon”. This apparently insulted some of the females, particularly the “Asian” ones. So from this we can say that this may not only be limited to sexual discrimination but also racist views by the SEG Manager.