3 key HR lessons from Urjit Patel's appointment as RBI Chief
In the formal oath taking ceremony, Urjit Patel took over from Raghuram Rajan as the 24th Governor of the Reserve Bank of India on Tuesday. Patel has been given a three year term. On August 20, the appointment committee of cabinet approved the appointment of Patel for three years, with effect from September 4. The handover ceremony took place on Tuesday as September 4 was a Sunday and Monday was a holiday due to Ganesh Chaturthi.
This important appointment has 3 key HR lessons:
A good succession policy
Although there were many names doing the rounds for the post of the Governor, the Government had no qualms in choosing Patel since he was the perfect successor to Rajan. He is the man behind RBI’s new Monetary Policy Committee (MPC) framework and inflation targeting approach. He has the right credentials. Dr. Patel’s tenure as deputy governor was extended earlier this year. “Dr. Patel has also served at the International Monetary Fund (IMF). He was on deputation from the IMF to the Reserve Bank during 1996-1997, and in that capacity he provided advice on development of the debt market, banking sector reforms, pension fund reforms, and evolution of the foreign exchange market,” the RBI said. He was also a consultant to the Ministry of Finance (Department of Economic Affairs), from 1998 to 2001.
Many organizations do go into frenzy when their top talent leaves. And HR should be able to develop a succession policy or the second rung leaders in order to maintain the superior deliverables. The company should invest in developing employee knowledge, skills, and abilities, and prepare them for advancement or promotion into ever more challenging roles. This ensures that employees are constantly developed to fill each needed role.
Employee Engagement/relations with continuity
Leadership continuity is the key to a successful organization. And the RBI Governor appointment is a best example of that. “Every new leader will bring his or her own thinking. There could be some addition, (in) some processes little bit changes. It’s normal in transition. We are looking for great continuity and that provides great comfort,” he said. Urjit Patel’s fellow Deputy Governor S S Mundra had told this to Indian Express.
When you have the successor following the similar methodologies take the position, it also boosts engagement. Since time is of crucial to any kind of important recruitment like this, a new joinee will take a few breaths before he creates a culture. But since continuity is the key here, employee engagement and relations remain like it were.
Diverse & Inclusiveness
Patel has worked in the government in the past. He was first appointed by the Narasimha Rao government which persuaded him to give up his IMF post and work for India. He has served as a Consultant to the Ministry of Power, Department of Economic Affairs from 1998 to 2001. Additionally he has been the Chief Policy Officer at IDFC. And appointing him as the RBI Chief brings the inclusiveness. The Government could have easily passed on the mantle to someone without the link with the previous government.
An inclusive workplace helps us to get newer perspectives of our people, and to leverage their diverse talents to arrive at winning business solutions.
All new appointments bring with it new perspectives and newer challenges. However, these three key points are essential for the company to boost the culture that it wants to create as a successful organization.
In case, you have a different perspective, do share your comments with us!