Personnel Today

PERSONNEL TODAY JULY - DECEMBER 2019 CONTENTS

JULY - DECEMBER 2019 l VOL-XXXX l No. 2

02 Editorial Dr. (Capt.) C.M. Chitale PERSONNEL TODAY A Half-yearly Journal of NIPM 03 An empirical study on Succession Planning Editorial Board for the Junior & Mid-Level Managers in

Editor Select IT Companies in West Bengal (India) Dr. (Capt.) C.M. Chitale Dr. Bobby Basu, Dr. Aloke Kr. Sen & Dr. Pranam Dhar Members Prof. (Dr.) Aloke Kr. Sen 09 People Analytics - The Signatures and Siloes Mr. Nrusingh Prasad Panigrahy Mr. Vishwesh P. Kulkarni Prof. (Dr.) K. Bhanu Prakash & Prof. Dr. P.R.K. Raju Dr.Pradeep Kumar Sahu Editorial Support 15 Pension System in Public Sector Sk. Anowar Uddin Undertakings of India Editorial, Advertisement, Administration, Publication, Dr. Subir Bikas Mitra Circulation - NIPM, National Office Mr. Biswabhushan Behera NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT Southend Conclave, Tower Block 22 Effect of Diversity on Job Perspectives in 3rd Floor, 1582, Rajdanga Main Road Kolkata - 700 107 Selected Sectors of Indian Economy Phone : (033) 2441 7254/7255 Fax : +91-33-2441 7256 Ms. Puvvada Devaki Devi E-mail : [email protected] Mr. Gudivada Venkat Rao Website : www.nipm.in

The views expressed by contributors Dr. Purushottam Bung are not necessarily endorsed by NIPM. Unsolicited manuscript shall not be returned even if accompanied 35 We must not marginalize our trade unions: by self addressed envelope with Sufficient postage. We must empower them Printed and Published by Dr. Dipak Kumar Bhattacharyya Mr. Sandip Samaddar Manager - Accounts & Admin for NIPM National Institute of Personnel Management 40 Book Reviews Southend conclave, Tower Block Prof (Dr) Aloke Kr Sen 3rd, Floor, 1582, Rajdanga Main Road Kolkata - 700 107

Free circulation to NIPM members 41 Legal Notes

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Editorial

Human Resource is at the core of any organization. Other resources are material resources. "Getting the work Done" is not easy in different work situations.

Can we consider " Human Response Management" instead of "Human Resource Management"? There could be different views on this subject. However I feel that the managers job is to create and design an internal environment conducive enough,where people can work together to achieve assigned targets to them for contributing to the organizational goals/targets. One has to achieve positive response from the working teams.

Emerging trends in Technology is going to create more challenges for professionals in HR and other disciplines of management.A report by Infosys and Garner predicts that automation and Artificial Intelligence might lead to elimination of middle management roles over the next decade or so (TOI : 22/01/2020)."We would need fewer people managers as many of the management tasks such as collection of data, supervising actions and ensuring compliance will be completed by algorithm and robotics"- said a thought leadership report by Garner (TOI).

It is expected that from recruiting to performance reviews department of " robot resources will rival human resources" by 2028. Artificial Intelligence itself can replace nearly 400 million workers globally over the next decade(TOI)

This prediction is going to pose challenges for HR professionals as follows :

a) How to motivate middle level manpower to adapt and learn new technology like AI,IOT etc.Challenge is to get a favourable response from such people.

b) The new entrants in HR profession must be equipped with AI,IOT and also ready to learn arrangement in technology for their future career growth.

NIPM members all over should take this as " Mission" for developing Techno- HR professionals.

Dr. (Capt.) C.M. Chitale Editor

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 02 PERSONNEL TODAY JULY -DECEMBER 2019 An empirical study on Succession Planning for the Junior & Mid-Level Managers in Select IT Companies in West Bengal (India) Dr. Bobby Basu, Dr. Aloke Kr. Sen & Dr. Pranam Dhar

Abstract Most organizations do not have the next generation of leaders ready to fill the vacant roles. Consequently, under- qualified people move into leadership roles as there is no one better to take over. This is a global issue and should be addressed much before the individuals do retire. The only way to reduce the effect of lost leadership is through a strong succession planning (SP) program that identifies and prepares the next generation of leaders through mentoring, training and stretch assignments to take the helm when the time comes. This helps in a smooth transition of business from one personnel regime to another. In this article, an attempt has been made to study the perception of the employees of select IT companies in West Bengal about the practices of succession planning adopted by the companies to address its human capital challenges, especially for the junior or mid-level managers.

Introduction Succession planning is defined as "deliberate and systematic effort by an organization to ensure leadership Most of the studies on Succession Planning were done continuity in key positions, retain and develop intellectual on CEO successor, to identify the link between attributes and knowledge capital for the future and encourage of CEO successor and financial organizational individual" (Rothwell, 2010). It is a voyage, not an end performance. From non-financial view, many researchers by itself. Assessment, Identification, and development argue that succession planning yields a return in form of high potential in the organization is solution to of internal operational efficiency and better retention of high-performing staff. A number of studies reveal that succession planning and talent management(Krauss, the strongest determinant of succession origin is past 2007).The entire process of Succession Planning should performance of a firm and firms usually replace an match with the strategic vision of the company. Four incumbent CEO with an outsider when the firm stages of an effective succession plan include: performed poorly in the recent past. Succession Planning Understanding the strategic plan of the business; for CEO or Senior Executive Level is decided by Board Developing a clear understanding of the capabilities and of Directors and is practically beyond the scope of the competencies requirement for the identified role to meet study. Moreover, there is practically no study on the strategic plan; Identifying employees who could succession planning practices for mid-level-executives. potentially fill and perform highly in such roles; and The purpose of this paper is to understand the succession Preparing suitable employees with the potential, through planning practices adopted by the select IT companies mentoring, training and job rotation to be ready for in West Bengal for its mid-level managers. advancement into each identified role. Succession planning has traditionally referred to planning for What is Succession Planning? leadership continuity at the CEO level, but today Succession Planning is one of the top focus areas for succession planning provides for leadership continuity HR as it attempts to pave the way for a smooth transition at all levels(Cooke, 1995). It is rated as one of the top of business from one personnel regime to another. focus areas for HR as the biggest challenge faced by

Dr. Bobby Basu, Associate Professor, Heritage Business School, e-mail: [email protected] Dr. Aloke Kr. Sen, Former Director, Heritage Business School, e-mail: [email protected] Dr.Pranam Dhar, Associate Professor, West Bengal State University, e-mail: [email protected]

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 03 PERSONNEL TODAY JULY -DECEMBER 2019 today's organization is to get the right person at the right strategic vision of the company. The authors have renamed position. this component as 'Management Support'. It is very vital to link succession plan to business strategy to understand Performance versus Potential the kind of people that will be needed with the required Most researchers and practitioners agree on the set of skills for the future(Levitz, 2008). Elements of an importance of employee assessment to succession effective succession plan are: visible support from the planning. For identifying the right candidate for CEO and top management; owned by line management, succession, both performance appraisals, appraising the simple and tailored to unique organizational needs; linked performance of an employee on the current job as well with the strategic business plan(Taylor & McGraw, as potential appraisal, appraising his potentials for the 2004). future job are important. Two essential objectives of the The second component is selection of candidate based succession planning program are deciding the position on their background, job performance, potentials and to be covered, and the person to be included. Succession formation of talent pool. It should be ensured that each planning links candidate's potential to position key position has alternative potential successors and needs(Carnazza, 1982). An organizaton's succession each talent has multiple potential promotion paths. The plan goes hand in hand with employees' career trend in scope of SP is to cover all the critical positions development plan. The very purpose of succession which are essential to achieve the necessary work results planning gets lost if it does not take into consideration and not just top managerial positions. Strategic plan can the interest of the concerned employee.An organization's be a guideline for this aim. succession plan goes hand in hand with employees' career development plan. The very purpose of succession The third component of succession planning is the planning gets lost if it does not take into consideration development of successor. Identifying development plan the interest of the concerned employee. Pattanaik & Rao and follow-up is a mandatory part of this process. The (2013) have categorizes the employees into 9 categories plan should be tailored to the individual needs and as per their performance and potential, as shown below: interests of successor. Best development methods include 360-degree feedback, executive coaching, mentoring, P Low Potential - Medium Potential- High Potential- networking and challenging work assignments (Groves, o High Performance High Performance High Performance 2007) t Key Contributor High Performer Consistent Star e Low Potential- Medium Potential- High Potential- Objectives of the Study n Medium Performance Medium Performance Medium Performance The objective of this study is to understand the existing t Capable Performer Valued Performer Rising Leader succession planning process for the Junior to Mid-Level i Low Potential - Medium Potential- High Potential- Managers in select IT companies in India a Low Performance Low Performance Low Performance Under Performance On the Learning Curve Role Mismatch Leader l Research Methodology Potential The companies chosen for the study are the three leading Components of Succession Planning IT companies in West Bengal. The companies are selected Literature reveals that succession planning is measured on the basis that all these three companies have established in terms of three components, namely Process and method for identifying the potential candidates and Change Management, Selection of Successors and developing them, which are the important aspects of Development of Successors(Mandi, 2008). The first succession planning. The study targeted employees from component of Succession Planning is Process & Change Junior to Mid -Level management.The data was collected Management and it includes items like management using a structured questionnaire. The study combined commitment, whether the top management is encouraging both the qualitative as well as quantitative methods to promotion from within or whether the identification and address the research study. A 17-item questionnaire was development of the potential employee is based on developed to measure the construct, with 7 items on

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 04 PERSONNEL TODAY JULY -DECEMBER 2019 demographic profile and 10 items on research variables, All the three companies use a rigid bell curve to evaluate measured on a five-point Likert Scale, with scale the performance appraisal of its employees. Performance responses varying from Strongly Disagree (1), Disagree Evaluation of each level of the organizational hierarchy (2), Neutral (3), Agree (4) and Strongly Agree (5). The divides the employees into five zones: Smart, Mediocre, questionnaire was made in the form of a Google doc as Average, Retarding and Trailer. However, the maximum well in the form of an excel sheet and was sent to 208 number of employees that can be accommodated in the people in the three select IT companies. Out of 348, smart zone i.e. Top Performers' category is fixed, and only 153 completed survey questionnaire were received this number decreases as we move upward in the by the researcher. This represented a response rate of hierarchy. The rigid distribution of the bell curve helps 44%. the companies to identify the potential candidates who Analysis can be groomed to take up the higher vacant positions.

To analyze the quantitative data, the authors have The companies follow a robust 'Job Family Framework' conducted Factor Analysis, Correlation Analysis and that comprises jobs from various business verticals. An Regression analysis. The quantitative research is employee may choose to move vertically to deepen his supplemented by qualitative research, which involved knowledge in his field of expertise or he may decide to face to face interviews with the employees using a semi- make lateral moves to broaden his range of skills. structured interview schedule. Whichever path he chooses, he creates an Individual Development Plan each year in consultation with his Findings from Qualitative Analysis manager to help him to continue to grow. It helps identify An in-depth study of the HR practices at the three IT the skills he needs to fulfill current and future business companies reveals that the process followed by these commitments. The select companies also encourage a companies to identify their potential talents is more or system to produce a list of jobs currently* available in less the same and they have a structured Succession the Global Opportunity Marketplace based on the Planning process for junior and mid-level managers. geographic location, band, job role, experience, etc. These companies strongly believe that with rapid Once an employee opts in to this service, he receives transformation of business, new skills emerge and new weekly notifications to view potential job matches. If roles become strategic. At the start of each year, an employee is interested in applying for one of the employees in consultation with his Managers set Personal potential job matches, he talks to his manager. His Business Commitments (PBC) that align directly with manager is his career advocate, understands his goals, organization's overall business goals and values. The and can work with him to determine if the job he is entire framework is designed to reinforce the interested in is a good fit and helps him through the organization's high-performance culture and effectively process. The employee also talks to his mentor, others differentiate employees based on their contribution to in a similar role and if all seems right, he applies for the the company. This stimulates an environment where job. every employee is stimulated to perform at an exceptional level. Managers and employees check in and discuss Findings from Quantitative Analysis performance progress throughout the year. At the end of the year, the manager evaluates the contributions The analysis of demographic profile shows that almost of the employee and gives him a PBC rating reflecting equal representation of the respondents from each his performance. The PBC ratings are tied to the growth organization is taken under study. Specialized views of the employees in terms of pay increase and career were collected from the respondents as non-IT Executives opportunities. It's the responsibility of the manager to were not included in the study. An analysis of the age help his employees perform at their best and become profile of the respondents shows that IT companies are top contributors to the company - and appropriately mainly driven by young and dynamic workforce. An reward them for it. It creates a culture so that employees analysis of respondents' tenure with the organization knowing their expertise and personal aspirations discuss depicts that almost all the employees are trying to retain their career development with their managers. themselves in the same industry, irrespective of the

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 05 PERSONNEL TODAY JULY -DECEMBER 2019 situational changes.To reduce the numbers of research Identification of Potential Candidate. The table below variables to a workable number of factors, the multivariate shows the internal relationship/ association among the technique of factor analysis was conducted using SPSS items and between the items and the First factor. 20, which reduced the variables into three factors. The total variance explained is 66.235%. Table 2: Inter-Item Correlations for Factor 1 Mean Std. Factor_ X1 X3 X4 X9 Table 1: Rotated Component Matrix Deviation SP_1 Factor_SP_1 Component X1 3.59 .590 .719** 1 2 3 X3 3.54 .538 Identification of .799** Critical Position (x1). .719 -.174 .027 .502** X4 3.59 .612 .797** .417** .624** Strong commitment from X9 3.60 .652 .673** .313** .350** .417** organization's senior leadership (x2) .202 .797 .080 X10 3.88 .688 .678** .320** .402** .433** .540**

Established performance appraisal ** Correlation is significant at the 0.01 level (1-tailed). system in place (x3). .799 .022 -.020 Study of Factor 2 Strong assessment policy to identify The second factor comprises of variables x2 (Highly the potentials of an individual (x4) .797 .050 .023 committed Senior Leadership), x6 (Skill development efforts linked to business strategy), x7 (Encourages Strong leadership development programme (x5) -.021 .108 .909 promotion from within) and is named as Management Support. The table below 3 shows the internal Linkage of skill development relationship/ association among the items and between efforts to the business strategy (x6). .031 .730 .230 the items and the second factor.

Encouraging promotion from Table 3: Inter-Item Correlations for Factor 2 within for critical positions (x7). -.022 .891 -.046 Mean Std. Factor_SP_ X2 X6 Deviation 2 Robust Training & Development Factor_SP_2 process for the potential candidates (x8). .008 .091 .911 X2 3.97 .716 .797** Aware of competencies X6 3.88 .691 .730** .432** to be developed (x9) .673 .171 .045 X7 3.87 .604 .891** .631** .497** ** Correlation is significant at the 0.01 level (1-tailed). Getting Ahead depends on Success in projects/ missions (x10). .678 .305 -.127 Study of Factor 3 The third factor comprises of variables x5 (Strong Source:Primary Data Leadership Development Program in terms of coaching Study of Factor 1 & mentoring) and x8 (Robust Training & Development Process for Successor) and is named Development Plan The first factor extracted after factor analysis comprises for the successors. The table below 4 shows the internal of variables x1 (Identifying critical position for SP) and relationship/ association among the items and between x3 (Established Performance Appraisal system), x4 the items and the second factor. All the correlations of (Strong assessment policy), x9 (Awareness of the items with the factors are significant at 1% level and competencies to be developed) and x10 (Success in inter-correlations within the items also show significant projects determines promotion) and is named as relationship.

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Table 4: Inter-Item Correlations for Factor 3 industry is highly challenged by fast changing technology Mean Std. Factor_SP_ X5 and stiff competition between the competent competitors. Deviation Change in technology, business policy, project pattern Factor_SP_3 and project-fit skill requirement are the characteristics X5 3.92 .644 .909** of an IT company. Hence it is very important for X8 3.93 .603 .911** .698** companies having abovesaid characteristics to identify the right candidate having skill, motivation and leadership ** Correlation is significant at the 0.01 level (1-tailed). qualities to forecast and meet the future challenges. The regression analysis showing the association between the factor scores obtained from the factor analysis as independent variables However, an in-depth interview with the respondents and Succession Planning level as the dependent variable is shown reveal that the low factor loading for the variable x9 in the Table 5. (Awareness of competencies to be developed) can be Table 5 Model Summary explained by the fact that feedback system regarding the Model R R Square Adjusted R Std. Error of potentials/competencies of the employees in the Square the Estimate succession planning process is weak. Organizations 1 .748a .560 .551 .275 should be more transparent in giving proper feedback Table 6 Co-efficients to its employees about their competencies and potentials. Moreover, the low factor loading of the variable x10 Model Unstandardized Standardized t Sig. Coefficients Coefficients (Getting ahead depends on success of projects) can be B Std, Error Beta explained by the fact that In IT industry, promotion and (Constant) 3.850 0.22 173.405 .000 growth of an employee are basically based on Project- REGR factor score 1 for analysis 1 196 .022 .475 8.741 .000 Fit rather than the individual performance of the employee REGR factor score 2 196 .022 .475 8.741 .000 for analysis 1 on the current project. REGR factor score 3 .133 .022 .324 5.960 .000 for analysis 1 The second factor 'Management Support' emerged as a. Dependent Variable. Y1 the second most important factor that impacts succession The estimated regression equation as obtained from table planning. This is very obvious as Succession planning is written as is a top-down approach and its implementation is just SP = 3.850 + 0.479PC + 0.475MS + 0.324DP not possible without management support. P value (0.000) (0.000) (0.000) (0.000) In-depth interview reveals that the low factor loading of variable x6 (Skill development efforts linked to business The regression results indicate that all the three factors, strategy) is due to the fact that these organizations are i.e. Identification of potential candidate, Development focusing on skill development based on upcoming plan for successor and Management Support positively projects rather than the long-term strategy of the business. influence the Succession Planning. This is evident from the positive signs of the estimated coefficients of the The least important factor that impacts succession corresponding factors. Moreover, all the three factors planning is factor 3, namely Development Plan for the are significant in influencing succession planning in an successor, although the factor loadings of the variables organization as indicated by their p values. are high. In IT companies, training is imparted on the basis of technology trend as foreseen by HR department Discussions in consultation with Top Management. However, many a times, the training process is not found to be effective The data as obtained from the administration of because of following reasons. questionnaire and in-depth interview of the employees of the select IT companies reveals the 'Identification of 1. Huge time gap between imparting of training and potential candidate' to be the most important factor in usage of trained skills. explaining the Succession Planning. IT industry is a 2. Trained skills becoming obsolete by the time it has project-driven, knowledge -based industry, catering to be demonstrated because of fast change in quality conscious customers across the globe. This technology in IT sector.

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Conclusion 4. J.A. Krauss (2007). Succession Planning and Getting the right person for the future is the toughest Talent Management Recommendation to Reduce challenge faced by today's organizations and it is clear Workforce Attrition and Preparation for an Aging that organizations of all sizes and industries face Population, doctoral diss., Wilmington University. incredible challenges in preparing managerial personnel to assume future leadership positions. Although, the 5. J.P. Carnazza. (1982). Succession/replacement select IT companies are among the very few companies planning programs and practices: A report: which have taken initiatives to address the human capital Center for Research in Career Development. New challenge, the very purpose of succession planning will York : Columbia University Graduate School of be lost if strategic directions of the company are not Business taken into consideration. An effective succession planning 6. K. S. Groves (2007), Integrating Leadership will be in place only when the company takes into Development & Succession Planning Best Practices, account the most significant challenges the company Journal of Management Development, Vol. 26 No. and its industry are likely to face over the next four to 3, pp. 239-260. six years. Also the companies should consider the impact of SP practices on the attitude and morale of the 7. K.V.S Pattanaik & G. Venkat Rao. (2013). Integrating employees. Competency with Talent Management: GMR Experience. Personnel Today, January - March 2013, References: pp 22 - 28. 1. A.M. Levitz (2008), Succession Planning Leadership 8. Rothwell WJ (2010). Effective Succession Planning, Development, doctoral diss., Wilmington University. Ensuring Leadership Continuity and Building Talent 2. A.R. Mandi (2008), A Case Study Exploring from within, 4th edition, American Management Succession Planning, doctoral diss., George Association, New York. Washington University. 9. T. Taylor, P. McGraw(2004), Succession management 3. Cooke, R (1995), Succession Planning, Credit Union practices in Australian organizations, International Management, 18(10), pp 27-28. Journal of Manpower, 25(8), pp 741-758.

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 08 PERSONNEL TODAY JULY -DECEMBER 2019 People Analytics - The Signatures and Siloes

Prof. (Dr.) K. Bhanu Prakash & Prof. Dr. P.R.K. Raju

Abstract People matters, processes powered by algorithms, technology leverages, and scenario personas are making the sense of HR-4.0 in future i.e., My Work is My Life and the Opportunities I have are Priceless. (Deloitte, The Future of Human Resources: A Glimpse into the Future, 2019).

The Yellow, Red, Green and Blue Worlds redefined the 'Future of Human Capital Management' in the Gig Economy. The Digitalisation and General Data Protection Regulation (GDPR) refined and reshaped the Science of Workforce. About 69% workers in India are confident about their digital skill sets and most likely to possess STEM skills, followed by China and the US (PwC). 'People Analytics'emerged as a 'Game Changer and Next-Level of Evolution of the Smart Workplace' aimed at providing insights into each process by gathering data and then using it to make relevant decisions about how to improve the processes.

In the era of Analytics, the insights are used in new ways to reinvent and improve every step of the Human Capital Management Process. People Analyticsis a systematic collection, analysis, interpretation and implementation of workforce data in the area of human resources and make people-related decision-making objective, transparent, data-driven and, thus, make the function quantitative in nature.People Analytics' synthesizes the qualitative and quantitative data and information to predict insights for decision-making and also supports in the process of 'Management of People'.The world's most successful companies Google, Nissan, IBM, and Goldman Sachs are using People Analytics to improve Recruiting and Retention, Performance Evaluation, Organizational Change, Leadership, Hiring and Promotion, Job Design, Compensation, and Collaboration (Wharton).

People Analytics, a Predictive EBM and Powerful Data Science, in HCM resulting 80 per cent increase in Recruiting Efficiency, 25 per cent rise in Business Productivity, and also 50 per cent decrease in Attrition Rates. (McKinsey & Co., 2019).Keeping in view this, an earnest attempt has been made on the Signatures and Silos of People Analytics customised in IBM Kenexa, Zoho People, Tren Data, and Aurion Analytics.

People Analytics - A Premiere

People matters, Purpose driven, and Performance and Autonomous Agents, Advanced Machine Learning Oriented (3Ps') culture are making the sense of HR-4.0 (AML) and Artificial Intelligence (AI), Robust and in the digi-era. The Yellow, Red, Green and Blue Worlds Reliable Solutions and Wearable Tech in Workplaces define the 'Future of Work and Workforce' in the Gig Economy. The Cognitive Capabilities and Computing redefined and reshaped Human Capital Management (IBM), Entrepreneurial Talent (GTCI, 2019), Robotics (HCM).

Dr. K. Bhanu Prakash, Professor - Consulting & CFO, GIET (A), Rajamahendravaram, East Godavari District, Andhra Pradesh, E-mail: [email protected] Dr. P.R.K. Raju, General Manager (Rtd.,), ONGC &Director GIET (A), Rajamahendravaram, East Godavari District, Andhra Pradesh, E-mail: [email protected]

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'People Analytics', a 'Data Science Management for Exhibit-2: People Analytics vis-à-vis HR, Workforce Human Resources', applies the data science &Talent Analytics methodologies and techniques to the field of Human Resources with the aim of getting to know the people 100 in our organization better and increasing their level of satisfaction and productivity. (Eduardo Valencia, 2018). 75

People Analytics involves collecting, analysing and 50 using employees' data and business performance to 25 provide business insights, solve business problems and inform business decisions and strategy (xperthr). It Average Mar 25, 2018 Jul 29, 2018 Dec 2, 2018 leverages the power of data to drive better outcomes People Analytics HR Analytics for business and employees (Erik van Vulpen, 2016) Workforce Analytics and Talent Analytics Talent Analytics and offers a unique opportunity for HCM Professionals to position themselves as Strategic Senior Source: Google Trends By Category(22nd Mar, 2019). Management Partners, using analytically proven techniques to make informed decisions that improve 1 Eduardo Valencia (2018)., People Analytics. Data employee engagement and management in an and Text Analytics for Human Resources, Lean organization and also hire and retain employees who Publishers, Canada, p.iii. drive higher value. 2 www.xperthr.co.uk/good-practice-manual/people- Exhibit-1: People Analytics - A Kaleidoscopic View analytics/161599/

3 Erik van Vulpen (2016)., The Basic Principles of People Analytics: Learn How to Use HR Data to Drive Better Outcomes for Your Business and Employees, Create Space Independent Publishing Platform, US.

A peep into Exhibit-1 reveals that People Analytics predominates in both the US and the UK. People Analytics HR Analytics However, India is the Power House for Workforce Analytics and Talent Analytics Talent Analytics Source : Google Trends - Breakdown By Region HR Analytics and 76 percent implementing the HR (22nd Mar, 2019). Analytics.

Table-1: People Data - The Metrics and Analytics (in per cent)

America Europe, Middle East & Africa Asia Pacific Central Latin Western North & Middle Nordic Global & Africa Europe Asia Oceania America Eastern East Countries South America Asia Europe 84.8 88.2 85.0 89.3 81.4 86.4 84.7 77.2 90.1 85.6

Source: Deloitte Human Capital Trends Survey, 2018, p. 10.

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Analytics, HCM Analytics, People Analytics - The The 'Data Science Management for Human Resources' Empirical Tones is termed as 'People Analytics'and it applies data science The integration of Yellow (Humans Come First), Red methodologies and techniques to the field of Human (Innovation Rules), Green (Companies Care) and Blue Resources with the aim of getting to know the people (Corporate is King) Worlds define the 'Future of Work in our organization better and increasing their level of and Workforce'. Keeping in view this, CHROs can adapt satisfaction and productivity (Eduardo Valencia, 2018). latent and latest skills, experience modern employee The analyses of 'Big Data'help in identifying, recruiting, engagement, and cater the expectations and demands of and rewarding the best personnel. The exploration of Today's and Tomorrow's skilled workforce as well as exponential data and data-driven techniques for managing the clientele' (KPMG, 2019) . people, and making strategic, operational and systematic Davenport and Harris (2006) defined'Analytics'as the decisions affect the organisation as a whole (Wharton extensive use of qualitative and quint-essential data and Education). People Analytics is one of the best platforms analysis, explanatory and predictive models, and fact- to accelerate the analysis of personnel issues. Meaningful based management to drive decisions and actions.Data insights, better decisions, and immediate action come Analytics deal with HCM that are in the form of Talent together give a fresh lease of life across people, places, Intelligence (Snell, 2011) , Talent Analytics (Davenport, and devices in a real-time enterprise experience Harris and Shapiro, 2010) , HRAnalytics (Mondore, (HBR,2017). With access to data from cloud solutions, Douthitt and Carson, 2011) or Workforce Analytics and other data repositories, the People Analytics (Hoffmann, Lesser and Ringo, 2012b) .HCM monitoring, simulating, and driving the change in the Analyticscan be defined as a predictive and prescriptive digi and gig economies. People Analytics will be useful power ranging from HRIS or HR Metrics to the end of to the organisations with a vision and be helpful when the spectrum for the benefit of strategic decision making it is predictive. It provides a lens into the future regarding by organizing, analysing, interpreting and presenting likely business outcomes. the data (Bassi, 2011). People Analytics - The Phases of Evolution HCM Analytics supports CHROs' in decision-making, critical and cognitive thinking and the appraisal of all Sense and Respond Predict and Act forms of evidence. Evidence Based Management Simulations/ (EBM)intends to contribute organizational and What happend and Optimization management effectiveness in a context-specific (Baron, why did it happen? Advanced analytics Predictive When will it happen? What is the best that 4. The Future of HR 2019: In the Know or in the No, Advanced modeling could happen? reporting KPMG International, 2019. Standard reporting Data 5. Davenport, T. H., Harris, J. G. (2006). Competing on What might happen? Analytics: The New Science of Winning. Business Value

Accenture.Institute for High performance Business. Maturity of Analysis 6. Snell, A. (2011)., Developing Talent Intelligence To Source: www.sap.com Boost Business Performance. Strategic HR Review, Vol.10, No.2, p.p.12-17. The Data Management Systems (DMS) reduce data sprawl, analyse data in an instant, and providing data- 7. Davenport,T. H., Harris, J., & Shapiro, J. (2010)., driven insights to boost business impact and consumer Competing on Talent Analytics, Harvard Business experience. The First Phase in People Analytics always Review, Vol.88, No.10, p.p.52-58. leverages state-of-the-art technology and the tools 8. Mondore, S., Douthitt, S., Carson, M. (2011)., revolutionizing the ways and means of People Data used Maximizing the Impact and Effectiveness of HR by CHROs' and Business Leaders. Online Personalised Analytics to Drive Business Outcomes, Strategic Dashboard consisting of HR-KPIs in real-time and Management Decisions, People and Strategy, Vol.34, provide the most effective DSS (Decision Support No.2, p.p.21-27. System) anytime and anywhere. Technology further 9. Hoffmann, C., Lesser, E., Ringo, T. (2012b)., fosters the formation of a data-driven culture and putting Calculating Success: How the New Workplace data at the core of the Organisational Decision-Making. Analytics will revitalize Your Organization, Harvard 11.Baron, A. (2011)., Measuring Human Capital, Business School Press. Strategic HR Review, Vol.10, No.2, p.p. 30-35. 10.Bassi, L. (2011). Raging Debates in HR Analytics, 12.Harris, J. G., Craig, E., & Light, D. A. (2010)., The People and Strategy, Vol.34, No.2, p.1..B 2011), New Generation of Human Capital Analytics, helps to increase efficiency and generate better Accenture Institute for High Performance, Research business results (Harris et al., 2010). Report, p.p. 2-10.

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13.Eduardo Valencia (2018)., People Analytics. Data Learning (ML) or Blockchain boosts business impact and Text Analytics for Human Resources, and accelerates business processes through advanced Lean Publishers, Canada, p.iii. automation. Resume Matching fast-tracks the screening process by selecting the right candidate, at the right place 14.Wharton Education (2019)., People Analytics: HR and at right place with the best talents and education. Transformation through Data, Artificial Intelligence (AI) also helps to eliminate human DOI:https://executiveeducation.wharton.upenn.edu error,by removing personal bias in the screening process The Second Phase deals with the Predictive Analytics (Dr. Christian Schmeichel, 2018). that will help to make predictions about Employee Life People Analytics - The Structural Signatures Cycle. The integration of People Analytics with Machine and Siloes

(1) Signature - Ideation (4) Signature - Innovation

(2) Signature – Influence (5) Signature - Silo

(3) Signature - Efficiency (6) Signature - Vulnerability

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Source: Paul Leonardi and Noshir Contractor (2018)., People Dynamics - The Future of People Analytics Better People Analytics, Harvard Business Review, Dec, URL:https://hbr.org/2018/11/better-people-analytics Today's World of Work, Workforce and Workplace are demanding 'Wellness and Wellbeing'. The World of Work The 6-Structural Signatures viz., Ideation, Influence, is innovation-based, social media centred and demanding Efficiency, Innovation, Silo and Vulnerability form the the Healthiness and Happiness. The Workforce is Social, bedrock of Relational Analytics taking People Analytics Mobile, Analytic and Cloud (SMAC) and Workplace is a step forward to improve the performance. The Ideation Fluid, Casual and Virtual. Leadership and Effective Signature identifies the individuals with good ideas. The Communication are critical determinants of 'Change' 'Purple' shows good ideation and 'Orange' is less likely and People Analytics Tool (RWA -Ready, Willing and to generate ideas, even though the people may be creative. The Influence Signature predicts the behaviour of Able) assesses preparedness for Change. The People employees who will change the behaviour of others'. Analytics emerged as the Order of the HR and it focuses The 'Purple' is more influential and prominence than on Employee Empathy (EE), Power To People (PTP) 'Orange', better connected, and spread ideas faster. The and the Wellness and Well-Being of the Workforce Efficiency Signature taps the people who have the best (Healthy and Engaged)(PwC, 2018). relevant skills and focusing on 'Team' that will complete People Analytics will take HCM to a different dimension projects on time. The 'Purple' Team Members show higher internal density indicates cohesiveness among and it can derive huge insights from big data and predict them. The Innovation Signature focuses on the 'Team' probable issues way before they strike an organisation. that will innovate effectively and efficiently. The 'Purple' It also develops strategies, structures, systems and Team Members have different perspectives, low density processes as well as building capabilities that enable the and not deeply interconnected. The Siloes are natural attraction, development, engagement, retention and and unavoidable and Silo Organisation has multiple management of people. departments with less external range. Each colour represents the 'Departments' and are inter-connected. Moreover, it assists the HCM to focus on people priorities, The modularity of the group i.e., the ratio of internal to keeping in view the cost, capability, capacity, connection, external communication is high. Relational Analytics and compliance related considerations. Further, it help to identify vulnerabilities in the Structural Signature cultivates the fact-based and data-driven culture that of an organization with the help of Vulnerability many organizations and leaders try to pursue. Signature. It identifies individuals who act as lone connections to key external stakeholders with People Analytics is an epic shift and it's a time to 'Reform 'Information Flow'. Green' is critical external supplier and Transform'. The Future of People Analytics would to the Departments viz., 'Blue, Purple, and Orange'. involve designing specific programs and strategies in relate to Workforce Optimisation, Developing Talents, Big Data Management, Engaging-Rewarding-Retaining Workforce Intelligence, Behavioural Change Talents, Analytical Acumen, HCM Framework and Management. The presence of 'Human Touch with Standards, Information Flow, Integration of Verticals Emotional Intelligence' is absolutely critical to the success and Horizontals, Cultural Assessment, Social Network of 'People Analytics'. To sum up, the Future of People Analysis and Transforming Strategy into Results by Analytics ensue an engaged workplace, happy employees, enabling People's Success are a few pivotal Siloes in HCM. People Analytics, a real-time, forward-looking, reward strategies that 'Mapping Talents' and ensuring and integrated analytics distinguished the disruptor from there is 'Diversity and Inclusion' in every sense i.e., the disrupted and move everyone up the 'Knowledge People matters, Purpose driven for Performance Curve'. Orientation.

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References: 3. Gal, U., Jensen, T. B., & Stein, M. K. (2017)., People Analytics in the Age of Big Data: An Agenda for IS Books Research.http://aisel.aisnet.org/cgi/viewcontent.cgi 1. Ben Waber (2013)., People Analytics: How Social ?article=1000&context=icis2017 Sensing Technology will Transform Business and What It Tells Us about the Future of Work, 1st Edition, 4. Henri de Romrée, Bruce Fecheyr-Lippens, and Bill FT Press Analytics, New Jersey. Schaninger (2016)., People Analytics Reveals Three Things : HR May Be Getting Wrong, McKinsey & 2. Erica Volini, Pascal Occean, Michael Stephan, and Co., Quarterly, July, p.p. 1-4. Brett Walsh (2017)., Digital HR: Platforms, People and Work, Global Human Capital Trends 2017: 5. Hoffmann, C., Lesser, E., Ringo, T. (2012b)., Rewriting the Rules for the Digital Age, Deloitte Calculating Success: How the New Workplace University Press, USA. Analytics will revitalize Your Organization, Harvard Business School Press. 3. Jean Paul Isson, Jesse S. Harriott, Jac Fitz-enz (2016)., People Analytics in the Era of Big Data: Changing 6. KPMG HR Transformation (2013).,People are the the Way You Attract, Acquire, Develop, and Retain Real Numbers : HR Analytics has Come of Age, Talent, Wiley Publications, Canada. KPMG - Switzerland.

4. Mohd. Sadique Shaikh Anwar, Tanvir Begum Niyaz 7. Shweta Shrivastava, Kritika Nagdev, Anupama Rajesh, Ali (2018)., People Analytics: Approach to Modern (2018).,Redefining HR using People Analytics: The Human Resource Management Concept & Strategy, Case of Google, Human Resource Management LAP Lambert Academic Publishing, Germany. International Digest, Vol. 26, Issue: 2, p.p..3-6, 5. The Future of HR 2019: In the Know or in the No, https://doi.org/10.1108/HRMID-06-2017-0112 KPMG International, 2019. 8. Thomas H. Davenport (2006), Competing Analytics, Articles Harvard Business Review, p.p. 1-10.

1. Bassi, L. (2011)., Raging Debates in HR Analytics, URL People and Strategy, Vol.34, No.2, p.1. www.hbr.org www.kpmg.com 2. David Green, (2017).,The Best Practices To Excel www.mckinsey.com www.pwc.com at People Analytics, Journal of Organizational Effectiveness: People and Performance, Vol. 4 Issue: www.sap.com 2, p.p.137-144. www.shrm.org

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 14 PERSONNEL TODAY JULY - DECEMBER 2019 Pension System in Public Sector Undertakings of India Dr. Subir Bikas Mitra Mr. Biswabhushan Behera

Abstract Pensions are post-retirement income benefits provided to employees, which evolved during the British Raj in India. Various types of Pension Systems are available to employers and employees, along with pension benefit schemes introduced by the Government. The concept of Pension in Public Sector Undertakings has gained importance due to recent judgments passed by Hon'ble Supreme Court of India and Hon'ble High Courts of various states. The Government of India has also widened the scope of Pension with amendments in National Pension System and Employee's Pension Scheme - 1995. This study traces the evolution of pension systems in Public Sector Undertakings to recent amendments w.r.t. pension as introduced by Government of India and the Supreme Court rulings on EPS-95 as well as the proposed Code on Social Security.

1. Introduction: insurance, especially in respect of longevity risk - the uncertainty attached to an individual's life. Pension, in general sense, is a lifetime post-retirement income security provided to the retiree for as long The pension plan requires the employer to make as he/she is alive. However, over a period of time, contribution into a pool of funds which is invested the scope has been widened to include social security on behalf of the employees and the earnings on such to dependents as well. It is a retirement plan that investment generate income to the employees on his provides periodic income after retirement to the retirement. In addition to the employer's contribution, pensioner or after death of pensioner to his /her some pension plans also provides for voluntary nominee under predefined legal or contractual terms. contribution from the employee or allows employee It is a fund into which money is added during the to contribute part of his current income from wages employment of the employee and from which periodic into the investment plan to fund his retirement. payment is drawn to support the person/nominee post retirement / death. Besides employer, the Government, labour unions and other organizations may fund pensions. When There are mainly two forms of financing the pension pension contributions from various employers, unions benefits (i) the Pay-as-you-go (PAYG) system, which and other organizations are pooled, run by financial is an unfunded scheme in which the current workers intermediary and managed professionally by fund meet the bill of the retiree's payments (ii) a funded managers it is commonly referred a Pension Fund. scheme wherein workers save a part of their current Earnings on such investment portfolios are either income to earn their future retirement income. tax-deferred or tax-exempt and extend tax benefit to Pension generally serves two essential purposes (i) both employer and employees. pensioner is provided an income in his retirement 2. Evolution of Pension Systems in India: life when he/she is no longer working in exchange for contributions into a pension scheme when he/she Evidence of the old-age support systems for people was working (ii)pensioner is provided the benefit of serving the state in India dates back to the 3rd century

Dr. Subir Bikas Mitra, Executive Director (Law & HR),GAIL (India) Limited, New Delhi, E-mail : [email protected] Mr. Biswabhushan Behera, Chief Manager (HR), GAIL (India) Limited, New Delhi, E-mail : [email protected]

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BC. According to Sukraniti, a king had to pay half workers of organized sector, was ensured only through of the wages for people who had completed 40 years statutory provisions under Employees' Pension of service. The concept of pension was introduced Scheme, 1995 of Employees' Provident Funds & in India by the British after the Indian Struggle for Miscellaneous Provisions Act, 1952. Independence in 1857 in line with the British Pension Initially there was no system of any non-statutory Scheme. Later this Pension System of 1857 was pension by employer for the employees of PSUs; replaced by Pension Act, 1871 which provided for regular increase in Pension to compensate the subsequently, few PSUs introduced their own Pension increasing prices and the concept of Dearness System to ensure social security as a welfare measure. Allowance was introduced. However, unlike the pension provided to Government Employees, the Pension System in PSUs were In 1881, the Royal Commission on Civil voluntary and self-contributory Superannuation Establishment was introduced for extending pension Benefit Fund Scheme (SBF) operated through / retirement benefits to Indian members of the civil Superannuation Benefit Fund Trust formed under the service. Civil servants were given a choice by the Indian Trust Act, in the form of a Defined Benefit passing of the Government of India Act (1919), for Schemes (DBS). people employed before 1st January 1920 to retire on a pension proportionate to their service. Based on (i) Superannuation Benefit Fund (SBF) pension the recommendations of the Royal Commission, the plan: practice of contributions by the beneficiaries was The SBF pension plan is an arrangement to cancelled, and an Indian Civil Services Provident provide an income to the employee after their Fund for non-Europeans was introduced. Later further retirement. It requires both employer and provisions were introduced through Government of employee to contribute money to a fund to India Acts 1935. receive pension benefits upon retirement. It also Post-Independence, the Government of India extended allows tax-free accumulation for later use as the retirement pension to all its civil servants / retirement income. government employees wherein retirement benefits In case of the Defined Benefit Schemes of SBF, were provided to the civil servants as a kind of the pension benefit upon retirement is guaranteed entitlement for their services rendered during their irrespective of the performance of the tenure as government servants. The pension, as per investment. The final pension benefit in such the earlier / old pension system, to government case is determined by a pre-defined formula employees is also subject to enhancement to match based on the earning/ compensation, age and inflation. number of years of service of the employee. If The concept of retirement benefit was consolidated the assets of the pension plan are not sufficient, and expanded to provide retirement benefits to the the employer is liable for the remainder or the entire working population of the private and public shortfall. sectors. Later, several pension funds were set up to The SBF pension in PSUs was recognized by extend coverage to the private sector and Public Government of India w.e.f. 01.01.2007, Sector employees which led to the current major consequent upon the issue of DPE Guidelines retirement schemes in India including Provident dated 26.11.2008 and 02.04.2009 w.r.t. Pay Fund, Gratuity and Pension Plans which are Revision. In line with the said DPE Guidelines, mandatory, occupation based, earning related and the then existing SBF Scheme in Public Sector have embedded insurance coverage against disability Companies were converted from Defined Benefit and death. Schemes (DBS) to Defined Contribution Scheme 3. Pension for employees of Public Sectors (DCS), wherein contribution out of 30 % of Undertakings: Basic plus Dearness Allowance after adjusting the contribution made towards PF, Gratuity & Since inception of Public Sector Undertakings (PSUs), PRMS of the employees is deposited in the SBF the social security of employees, like any other Fund of each employee.

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In case of the Defined Contribution Scheme, retained across employers, location etc. (ii) the employer makes specific plan contribution Simple - Standard product designed by PFRDA for the worker. The final pension benefit in such (iii) Flexible - Choice of fund managers, case is determined by the performance of the investment options, annuity plans, annuity investment. The liability of the employer ceases service providers and Point of Presence (POPs) after the employer makes the contribution to (iv) Economical - Lowest cost investment the fund. product currently available in the market (v) Unique tax benefits, (vi) Commutation - Now, it has been mandated by DPE that PSUs subscribers can withdraw upto 60 % of the may comply with the statutory provisions laid corpus in lumpsum and use the remaining down under the Pension Fund Regulatory corpus to buy an annuity to secure a regular Development Authority Act, 2013 for financial income after retirement, (vii) Annuity Options security of their employees. Accordingly, Public - a bouquet of options for purchase annuity from Sectors are adopting National Pension System available approved annuity providers and (v) (NPS) to extend the benefit of NPS to all their Deferment Option - flexibility to subscribers employees. for a delayed decision on purchase of annuity (ii) National Pension System (NPS): and commutation. At present, PSUs like GAIL, HPCL, REC and The National Pension System (NPS) is a PFC have implemented NPS and other PSUs Government of India promoted, voluntary are in various stages of implementation of NPS Defined Contribution Low Cost Pension for extending the benefit to their employees. Scheme, Regulated by Pension Fund Regulatory Development Authority (PFRDA) under the (i) Pension program through Employees' Pension Fund Regulatory Development Provident Fund Organization: Authority Act, 2013 is managed by NPS Board of Trustees under PFRDA Act, 2013. It started The Employees' Provident Fund introduced with the decision of the Government of India under Employees' Provident Funds & to stop the earlier Old Pension Scheme for all Miscellaneous Provisions Act, 1952 (EPF & its employees who joined after 1 January 2004. MP Act) is administered and managed by the Subsequently, the NPS was extended with effect Central Board of Trustees that consists of from 1st May 2009 and opened to all sections representatives from three parties, namely, on a voluntary basis. Government, employers and employees. The Employees' Provident Fund Organization Unlike traditional financial products where all (EPFO) assists this board in its activities. EPFO the functions (sales, operations, service, fund works under the direct jurisdiction of the management, depository) are done by one government and is managed through the Ministry company, NPS follows an unbundled of Labour and Employment. The provisions of architecture where each step of the value chain EPF & MP Act are governed by three Schemes: has been made separated from the other. This allows the customer to mix and match his 1. Employees' Provident Fund Scheme, 1952 providers of services like Point of Presence 2. Employees' Pension Scheme, 1995 (earlier (POP), Central Record Keeping Agency (CRA) Family Pension Scheme, 1971) and Pension Fund Manager (PFM) etc through the value chain, picking the best-suited option. 3. Employees' Deposit Linked Insurance The benefit of such a pension regime is likely Scheme, 1976 to foster aggregate rate of savings and accelerate capital market development. Pension under the EPF & MP Act was initially introduced as Family Pension Scheme 1971 The feature of NPS that makes it lucrative to (FPS-71) which has provision for only the employees of PSUs are (i) Portable - Retirement Widow Pension. Subsequently, the Government account (with unique PRAN) that may be of India widened the scope and introduced

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Employees' Pension Scheme, 1995 (EPS-95) Scheme, 1995 various petitions against in replacement of FPS-71. The purpose of the introduction of Employees' Pension Scheme, EPS-95 is to provide (i) for the employee / 1995 were filed in different High Courts and member, the superannuating pension, early all cases were transferred to Hon'ble Supreme pension and permanent total disablement Court through Transfer Petition. The Hon'ble pension and (ii) for beneficiaries of employees Supreme Court in the year 2003 decided the / member the Widow or widower's pension and pending matters by upholding the validity of children pension or orphan pension. the Employees' Pension Scheme, 1995.Since the matter was pending in Hon'ble Supreme For Funding of the EPS-95, an amount equal to Court up to 2003 and some interim orders were 8.33% of PF Wage limit (i.e. Rs.15,000/- also passed during this period, many of the currently) is pooled into the EPS from the Employees who had not opted to become Employer's contribution w.e.f. 01.09.2014 till members of Pension Scheme were given 58 years of age and the Central Government opportunity to become members of the Pension also contributes at 1.16 % of the pay of the Scheme and also to contribute on higher wages member. as per the provisions of Para 11(3) of Employees Minimum 10 years eligible service will entitle Pension Scheme, 1995. Subsequently, for member pension. The aggregate of actual considering the financial viability of the service and the 'past service' shall be treated as Employees' Pension Scheme, 1995 based on eligible service. various actuarial reports till then, the opportunity for giving option to contribute on higher wages Issue of EPS-95 controversy, impact of recent on becoming member of the Employees' Pension Supreme Court Ruling on EPS-95 in Public Scheme was stopped in the year 2004. Sector Undertaking and its status: A clarificatory circular discontinuing acceptance Consequent upon introduction of EPS-95 by of contributions on higher wage in Pension Fund Government of India in 1995, different was also issued in November 2006.The stakeholders including the employees of big controversy began as EPFO started referring to establishments, Public Sector undertakings, this circular as guidelines for regulating the various Trade Unions and Political Parties cases under the said proviso to para 11(3) of opposed this Scheme. Many Establishments, Employees' Pension Scheme, 1995 linking the Employees Associations and others approached issue to para 26 (6) of the EPF Scheme, 1952 various High Courts against implementation of which led the field offices to put an embargo the Employees' Pension Scheme, 1995. on all such cases. Further, the provisions relating Several rounds of negotiations were initiated to option for commutation and option for return by the Government for acceptance of Employees' of capital were deleted with effect from Pension Scheme by the opposing parties. In 26.09.2008 by Gazette Notification No. GSR. order to have wider acceptance by various 688(E) dated 26.09.2008. The scheme was shareholders, following provisions were added amended in 2014 by omitting the proviso to in the Employees' Pension Scheme, 1995 vide clause 11 (3) by G.S.R. No.609 (E) dated GSR 134 dated 28.02.1996 as major 22.08.2014 (with effect from 01.09.2014). The amendments within three months of introduction amendments w.e.f. 01.09.2014 are - of the main scheme: i) Redrafting of the entire para 11 including deleting (i) Option to contribute on higher wages the proviso providing a rider, exceeding the statutory limit (Para - 11) ii) Providing for a fresh option within 6 months, (ii) Option for Commutation (Para 12 A) to continue EPS contribution on higher salary who already opted and paying contribution on (iii) Option for Return of Capital (Para 13) higher salary, After introduction of Employees' Pension iii) Barring new employees to become EPS member

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who are drawing salary more than Rs. 15,000 per Hon'ble Supreme Court's Judgment in SLP p.m. No. 33032-33033/2015". Subsequent to issue of the EPFO circular dated 23.03.2017, queries During the period 2004 to 2014 many cases were raised by various Regional Office to EPFO were filed in various forums and High Courts, HQ. praying for payment of pension on higher wages by allowing contributing on higher wages under A clarification was issued by EPFO on the pension scheme. On being aggrieved by the 31.05.2017 that the provisions mentioned by orders of the High Courts, EPFO appealed to the Hon'ble Supreme Court in its order dated the Hon'ble Supreme Court wherein the 04.10.2016 applied only to the employees of department filed 8 SLPs in series against the un-exempted establishments (thereby barring orders of Hon'ble Kerala High Court. The said all exempted employees from the benefits SLPs were dismissed by the Hon'ble Supreme available after the SC judgment), whose both Court vide order dated 31.03.2016 (7 - SLPs) Provident Fund and Pension contributions were and dated 12.07.2016 (1?SLP) by bunching the being deposited by the employer in EPFO SLPs. account. EPFO field offices started denying to accept EPS contribution on a higher salary. After disposal of the SLPs, various Writs were filed and orders allowing option to contribute The Hon'ble Supreme Court passed an interim on higher wages retrospectively were issued. order dated 15.12.2017 wherein it requested the Two SLPs were filed by employees of M/s other High Courts to await for the outcome of Himachal Pradesh Tourism Development the order passed by the High Court of Kerala Corporation against the orders of the Division in the cases reserved for judgment and only Bench of Hon'ble High Court of Himachal thereafter to proceed further in the matter and Pradesh disallowing the option for contributing that too subject to further orders to be passed to Pension Fund on higher wage. The Hon'ble by the Hon'ble Supreme Court in these matters. Supreme Court disposed off the aforesaid 2 SLPs vide order dated 04.10.2016 (R.C. Gupta Hon'ble High Court of Kerala, vide its order Vs RPFC Shimla) allowing the petitions. In this dated 12.10.2018 (WP(C). No. 13120 of 2015) matter of R.C. Gupta Vs. RPFC Shimla the allowed the following: Hon'ble Supreme Court vide its judgment dated (i) The Employee's Pension (Amendment) Scheme, 04.10.2016, decided the matter of pensionary 2014 brought into force by Notification No. benefit on higher wages with detailed order GSR. 609(E) dated 22.8.2014 evidenced by examining the provisions of the Employees Ext.P8 in W.P.(C) No. 13120 of 2015 is set Provident Fund Scheme, 1952 and Employees' aside. Pension Scheme, 1995 and also citing the orders passed by the Apex Court for dismissal of SLPs (ii) All consequential orders and proceedings issued filed by EPFO with reference to the orders by the Provident Fund authorities/respondents passed by Hon'ble Kerala High Court. on the basis of the impugned amendments shall Officers in-charge of all filed offices were also stand set aside. directed vide EPFO on 23.03.2017 to take (iii) The various proceedings issued by the necessary action in accordance with the order Employees Provident Fund Organization of the Hon'ble Supreme Court in SLP declining to grant opportunities to the petitioners No.33032?33033 of 2015 as approved by the to exercise a joint option along with other Government and as per the provisions of the employees to remit contributions to the EPF & MP Act, 1952 and Schemes framed there Employees' Pension Scheme on the basis of the under. The said circular was issued to "allow actual salaries drawn by them are set aside. members of EPS, 1995 the benefit of the actual salary in the Pension Fund exceeding wages (iv) The employees shall be entitled to exercise the limit of either Rs. 5000/- or Rs. 6500/- per option stipulated by paragraph 26 of the EPF month from the effective date respectively as Scheme without being restricted in doing so by

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the insistence on a date. Under the Code, Employer's Contribution towards PF is mandated at 12% and it also states that employee In the said order the Hon'ble High Court set may have option to join NPS while providing for aside the 2014 amendment calling it arbitrary option to join back schemes framed under this Code and unsustainable, and reinstated the old system such as the Provident Fund Scheme, Pension Scheme of calculating the pensionable salary as the and Insurance Scheme. average of the last one year's monthly salary. Further, EPFO was directed to give pension to References: all retiring employees on the basis of their full salary, rather than capping the figure on which i. Pensioner's Portal of Government of India available contribution is calculated at a maximum of Rs at https://pensionersportal.gov.in/Mscheme.asp 15,000 per month. ii. Pension Fund Regulatory and Development Hon'ble Supreme Court, vide its order dated Authority (PFRDA) website available at 01.04.2019 dismissed the SLP filed by EPFO https://www.pfrda.org.in/ against the Hon'ble High Court of Kerala and iii. National Portal of India available at paved the higher pension to all members. https://www.india.gov.in

Thirty Two writ petitions filed by ex-employees iv. National Pension System Trust (NPS Trust) of various exempted establishments on the same website available at issue has also been referred to Hon'ble Supreme https://enps.nsdl.com/eNPS/NationalPensionSys Court and are pending for final disposal. tem.html Till the matter is finally decided by Hon'ble v. Employees' Provident Fund Organization(EPFO) Supreme Court, it seems quite logical that EPFO website available at https://www.epfindia.gov.in at least revise the EPS-95 pension as per decision of Hon'ble Kerala High Court and Hon'ble vi. Department of Public Enterprise (DPE) guidelines Supreme Court with the original formula of dated 26.11.2008 & 2.4.2009 relating to pay pensionable service i.e. 12 months average pay revision of Board level & below Board Executives considering PF wage ceiling of Rs. 15,000/- vii. Order dated 12.10.2018 of Hon'ble High Court of but noting is being done by EPFO in spite of requests from various exempted establishments. Kerala on WP(C). No. 13120 of 2015

4. Code on Social Security, 2019 viii. Order dated 01.04.2019 of Hon'ble Supreme Court on SLP filed by EPFO against the order dated Recently, the Ministry of Labour and Employment, 12.10.2018 of Hon'ble High Court of Kerala Government of India has circulated a preliminary draft of the Code on Social Security, 2019. The Draft ix. Article 'Central civil servant pension payments in Code proposes to simplify, amalgamate, rationalize India: Issues and concerns' dated 12.08. 2009 by and replace (i) The Employees' Compensation Act, Karnam Gayithri published in Pensions: An 1923; (ii) The Employees' State Insurance Act, 1948; International Journal (iii) The Employees' Provident Fund and x. Article 'India: Supreme Court's Ruling on Pension Miscellaneous Provisions Act, 1952; (iv) The Scheme' published in http://www.mondaq.com Maternity Benefit Act, 1961; (v) The Payment of Gratuity Act, 1972; (vi) The Cine Workers Welfare xi. Article 'Supreme Court ruling on higher pension Fund Act, 1981; (vii) The Building and Other benefit to employees under the Employees' Pension Construction Workers Cess Act, 1996; and (viii) The Scheme, 1995' dated 25.04.2019 published by Unorganized Workers' Social Security Act, 2008. KPMG

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 20 PERSONNEL TODAY JULY -DECEMBER 2019 Effect of Diversity on Job Perspectives in Selected Sectors of Indian Economy Ms. Puvvada Devaki Devi Mr. Gudivada Venkat Rao

Abstract Diversity means variations in social, economic, demographic and employment factors. The diversity of workforce, social and demographic wise is an interesting comparison for study on diversity management. The purpose of the research work is to estimate the direction and relationship of identified social, demographic and economic diversity factors on Job Perspectives viz., Firm and Peers, Job and Life and HRM Systems. The conceptual framework is built on diversity factors Age, Gender, Marital Status, Religion, Nativity, Caste and Salary.

The study is conducted on a random sample of 928 employees, spread across five industrial and service sectors in Public Sector Steel Plant, two Private Sector Steel Plants, BPO, Public Sector IT Firm and Private Sector IT Firm. The sample includes executives and non-executives within the respective industrial employments. The Cronbach's alpha values for all the 176 items of Job Perspective factors are in the range of 0.938 to 0.770.

The Perception of Peers has inverse impact by age diversity. The age, religion and caste diversity on Job and Life is moving in reverse direction. The age and religion diversity presents similar trend on HRM systems. The age, religion and caste diversity are major diverse variables on HRM systems, Job and Life and Perception on Firm and Peers. The diversity factors in the Indian context on HRM factors, Job and Life and Firm and Peers is the reflection of Age, Religion and Caste.

Introduction

Diversity as a concept is the distinguishable variations evidence increase in competitive strength of any or differences based on criteria (Shen et al., 2009) social, organization. It is also true that the demographic and economic, demographic and employment. The human social profile of the workforce, in key sectors of the resource management is a focused subject with economy, is not far stretched to emerging changes in the multidisciplinary approach based on Behavioral sciences technology. In another study, demographic diversity and Management. The advance technologies in various divide is found as the advantage for the emerging country forms have brought sea changes in the nature, concept like India (Meena & Vanka, 2013). The employment of and scope of Human Resource Management (HRM), a the workforce across the sectors is believed to be skewed key area of Management. The human resource in favor of emerging technologies. About 45 percent of management in practice is evolutionary and revolutionary the workforce would be from millennial age group with the advancement in technology. And it is said, the pace of technology movement is fastest in this decade (Mukerjee, 2019). The diversity of workforce, social in comparison with previous decades. The innovation and demographic, is an interesting comparison for study in technology processes has made the role of HRM more on diversity management. Fang Lee Cooke and Debi complex (Venkat, G, 2018) and comprehensive. Saini (2010) and Subhash C. Kundu et al. (2015) investigate on diversity in HRM practices and reveal The study of Wambui et al. (2013) on diversity in HRM differences in perception of Indian employees on criteria practices points out that social and demographic factors related to harassment, flexible hours, merit and disable

Ms. Puvvada Devaki Devi, Professor (Rtd), Department of Human Resource Management, Andhra University, Visakhapatnam E-mail : [email protected]. Mr. Gudivada Venkat Rao, Assistant Professor, Department of Human Resource Management, Dr. L.Bullayya P.G.College, Visakhapatnam E-mail : [email protected].

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 21 PERSONNEL TODAY JULY -DECEMBER 2019 employees. The HRM factors are strategic integrators both horizontally and vertically (Subhash C. Kundu et al, 2015). Some other investigations find significant relationship between a firm's HRM system and performance (Florian Kunze et al,2013) with diversity in age (Emma Parry and Jean McCarthy,2017), professional tenure and expertise (Lu, Chia-Mei & Chen et al, 2015). The social peer pressure influences the social incentives more than monetary incentives (Kandel and Lazear, 1992) and peer effect is high within the upper level of the hierarchy (Lucas, 1988; Marshall, 1890). However, Methodology wages, productivity and skill levels show minor positive effect by peers (Thomas Cornelissen et al, 2013). The The conceptual framework is built on diversity of socio- demographic and economic issues and Job Perspectives. scattered migrated families have impact on workplace The hypotheses tested in this work are: lifestyles and contribute to the social, economic and political environment (Goulbourne, Reynolds, Solomos, H01: The socio-demographic and economic diversity factors have no impact on Firm and Peer. & Zontini, 2010). The non-natives' or migratory families' work-life balance is observed as research area for human H02 : The socio-demographic and economic diversity resource researchers to understand work-life management factors have no impact on Job and Life. (EunaeChoa and Tammy D.Allenb, 2019). H03: The socio-demographic and economic diversity factors have no impact on HRM Systems. The organizational culture supported by human resource management practices drive the diversity management The study is conducted on a stratified random sample of 928 employees spread across five industrial practices. Subhash C. Kundu et al (2015) to derive employments in a Public sector steel plant, two Private positive relationship between HRM diversity practices sector steel plants, BPO, Public Sector IT Firm and (recruitment, selection, training, support groups and Private Sector IT Firm. The sample is 4.3 percent of the audit), performance and organizational levels (individual, total population 21,650 of the universe. The sample group and organizational). Kerstin A. Aumann, Cheri includes executives, non-executives and workers within Ostroff (2006) explains that the HRM practices across the respective industrial employments. cultural contexts depend on life values derived from The socio-demographic and economic issues considered society and heredity. in the study are Age, Gender, Marital Status, Religion, Nativity, Caste, Education and Salary. The pre-determined Some researchers have observed significant influence job perception factors viz Firm and Peers, Job and Life in limiting discrimination with HR diversity management and HRM Systems are evaluated to find diversity impact. (Oualid Abidi et. al, 2017). The caste (Meena K, 2015; The questions are framed in first person to estimate the Rana Haq, 2012) and the religion (Pramila Rao, 2015) perception of the employees towards the above three are identified as major diversity factors impacting factors viz. Firm and Peers, Job and Life and HRM Systems. The questionnaire is prepared in both hard and workplace in India. While the above studies are only on soft formats and administered on the selected sample HRM practices, the present study focuses on components during 2016-2017. The analysis finds the impact of socio- of Firm and Peers, Job and Life and also HRM Systems. demographic and economic issues on the organizational The framework of the present study measures the impact factors in frame of objectives. The data are processed with SPSS and R to calculate mean, standard deviation, of the selected socio-demographic and employment factor analysis for factor loadings and regression statistics. factors on the three Job Perspective factors viz. Firm The Cronbach's alpha values (Table 2) for all the 176 and Peers, Job and Life and HRM Systems. The items of Job Perspective factors are in the range of 0.938 pre-determined grouping of the three factors is done to 0.770 except My Time Management. The results are with the following criteria (Table 1). within the acceptable limits of reliability (<=0.600).

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The factor loadings are calculated to examine the strength loadings. The values range from 0.373 to 0.813 (Table of the factors formulated for the study. Based on results, 3). The KMO and Bartlett's Test of Sphericity (Table 4) analysis on My Time Management is discarded. The is significant and it is found appropriate to apply factor Principal Component Analysis is applied to extract factor analysis.

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Based on similarity of concepts the factors are sector than in Steel sector. The inference is Christians' predetermined into three components. find employment in BPO's as they are better in English. 1. Component Y1: Perception towards Firm and Peers: The caste distribution is even in all sectors except in My Company, My Management, My Department, Private Sector IT Firm with low ST representation (4.7 My Supervisor and My Co-workers. percent). The other sectors are not showing any unusual caste distribution.The data on nativity indicate 2. Component Y2: Perception towards Job and Life: predominance of urban habitanats (71.9 percent) My Job, My Responsibility, My Performance, My incomparison to rural. Those who migrated from rural Values and My Time Management. areas form one-fourth and has presence in public sector 3. Component Y3: Perception towards HRM Systems: and private sector IT firms. The majority across the five Recruitment, Working Conditions, Safety, sectors i.e. public sector steel plant, private sector steel Performance System, Appraisal System, plants,BPO,public sector IT firm and private sector IT Communication, Training and Advancement. firm have technical qualifications. The mean salary for Results and Discussion the whole sample is Rs. 69717.43, with BPO sector recording mean salary level of Rs.31066.60. Socio-Demographic and Economic Related Issues The average family size for the reported sample is 2.85 The Mean Age of the respondents is 35.14 years(Table per family. The BPO employees are predominantly from 5). The mean ages of the five Organizations presents a joint family structure, their average age is low and they sharp contrast with highest and lowest being Public are mostly unmarried, therefore they live with parents sector steel plant (44.86 yrs) and BPO (26.81yrs). The in joint families. mean age (29.80 yrs) is surprisingly low in case of Public sector IT Firm also.The gender equation is highly Employment Related Issues skewed is favor of male with 2.85:1 ratio followed by The majority of public sector employees (55.2 percent) highest in public sector steel plant (8.68:1),private sector and BPO employees (47.7 percent) have own houses. steel plant(6.58:1),public sector IT firm(2:1),private The employees of Public Sector Steel Plant have sector IT firm(1.45:1) and BPO(1.26:1). The marital permanent employment status (91.7 percent) whereas status comparison between steel manufacturing and IT for BPO (95.3 percent) and private sector IT firm (80 sector presents more unmarried in IT (60.25 percent) percent) most of them are temporary or off roll and BPO sector (83.8 percent). The religion Hindu employment. The change in designation is estimated to forms the major group in steel, IT and BPO sector. The find the change in position in the Organisation and it interesting inference is Muslims are low in BPO and IT was highest in Associate (54.4-14.3 =40.1 percent).

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Table 5: Socio-Demographic and Economic Factors

The promotions in a career are analyzed and have an except in case BPO who travel above 15 kms (49.3 average of three promotions for majority (38.9 percent) present) and public sector steel plants( 37.2 percent) of the employees across the different sectors. The steel who travel less than 5 kms. The BPO and IT firms are plants (33.6 percent) and private sector IT firm (50.4 located at satellite towns and it requires traveling distance. percent) employees have an average of three promotions. The trend is same during his career with the present The public and private steel plants have industrial employer. The commutation to work as a criterion townships attached to factory premises minimizing the presents majority (61.4 percent) travel less than 10 kms travel time.

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Job Perspectives Factors Variations: per cent. The calculated Mean is 14.95 and Standard The perceptions of the employees on the factors are Deviation is 3.52. The values for the individual factors evaluated with mean scores (Table 6). The mean analysis of My Supervisor range between 75.3 per cent and 65.1 for all the companies presents positive perception. The per cent. These factors are noted as that supervisor is inter-factor analysis for My Company shows that the always positive to take up suggestions and the least values range from 78.0 per cent to 58.5 per cent. The preferred statement is that company always realizes that factor most preferred is that the firm motivates them to career development from within is better. The calculated work in team. The least preferred is that the supervisors, Mean is 26.45 and Standard Deviation is 6.49. managers and everyone speak with one voice on firm's policies, programmes and the calculated Mean is 25.86 The inter-factor analysis of My Co-Worker shows that and Standard Deviation is 5.79. The inter-factor the values of the factors range between 78.3 per cent percentage for My Management range between 67.1 per and 55.9 per cent. The factors favored most almost cent and 57.6 per cent. The most preferred factor is equally are a) we work together and relationships are observed as that management assists them to adapt to good (78.3%) and b) we can take help from others if we changing situations through innovation and creativity work in a team (78.2%). The factor least preferred is and the factor favored least is that the management raises that co-workers are willing to work in new location if funds to adjust to the new technical issues. The calculated needed. The calculated mean is 38.24 and Standard Mean is 18.08 and Standard Deviation is 4.31. Deviation is 8.31. The values of the factors of My Job The analysis of data on My Department indicates that are higher than the factors of other aspects and in range 22.2 per cent rank their department's role as very high 80.3 percent to 78.2 per cent. The most preferred factor and 48.0 per cent as high. It can be said that most of the is that the employee assists co-workers when need arises employees (70.2%) consider their department as very and the least preferred is that he will step in for co- cooperative in their performance. Those who have no workers if situation demands. Next favored is that he opinion are 14.7 per cent and rank their department's always tries to learn and improve. The calculated Mean role as low form 11.1 per cent and very low form 3.8 is 15.98 and Standard Deviation is 4.28.

Table 6: Means of Job Perspectives

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The inter-factor analysis of My Responsibility indicates 77.2 per cent to 48.2 per cent. The value favored by the that the values range between 81.7 per cent and 59.0 per largest group is that one should aim to be appreciated cent. These factors are that the employee is responsible and admired for knowledge and skills. The least groups to achieve his specific targets and the least favored is which are almost similar prefer either one should value low performing employees are held accountable. The money more than work (48.2%) or one can entertain Mean is 19.94 and Standard Deviation is 4.60. The friends and relatives during working hours (48.3%). The values on Recruitment range from 72.4 per cent to 55.7 Calculated Mean is 63.00 and Standard Deviation is per cent. The most preferred is that the company provides 14.60. required information at the time of joining without any ambiguity and the factor favored by the smallest group The values of the statements on appraisal system range is that the time taken in recruitment cycle is reasonable. from 73.4 per cent to 58.1 per cent; the largest group The calculated Mean is 18.36 and prefers that to say they know the targets sit for Standard Deviation is 4.45. performance and the least group favors the statement The values of the individual factors of Working that the method of appraisal used is fair. The next least Conditions range from 74.3 per cent to 41.4 per cent. group (59.5%) conveys that timing of appraisal system The factor most favored is that the building is rightly is accurate. The Calculated Mean 21.90 and Standard ventilated with sufficient height and air circulation. The Deviation is 5.05. The values range between 68.0 per least preferred one is that family meetings and picnics cent and 62.4 per cent. It may be said that all the are common. The calculated Mean is 54.30 and Standard statements are favored almost equally. However, the Deviation is 12.27. Inter factor analysis of Safety shows largest group prefers that the superiors are receptive to that the highest per cent of the employees (74.2%) favors all communication about risk including bad news and the statement that the department feels safety as the most the least group conveys that firm is interested to make important and the least group of 51.4 per cent reports the employees realize importance of managing risk. The that employees are discouraged from taking safety risks. Calculated Mean is 25.64 and Standard Deviation is The Calculated Mean is 47.07 and Standard Deviation 6.03. 11.47. The inter-face analysis indicates that values for stress The values of Performance System range between 78.3 range from 69.5 per cent to 45.6 per cent. The statement per cent and 62.9 per cent. The factor most preferred preferred most is that the employee has relaxed positive is that employee involves himself with full capacity in outlook towards work and life. The factor favored by his job. The least favored statement is that teams are the least group is that the wellness programme is effective rewarded for higher performance. The Calculated Mean in controlling stress at all times and for all cadres. The is 36.98 and Standard Deviation is 8.57. The values for Calculated Mean is 42.30 and Standard Deviation is individual statements of My Performance vary between 80.6 per cent and 55.8 per cent. The statement preferred 9.01. most is effectiveness at work and the factor considered Diversity Factors Impact on Job Perspectives: least is dependence on others. The Calculated Mean is The multi-regression analysis of the socio-demographic, 46.58 and Standard Deviation is 4.28. employment factors on first component Firm and Peers The statements of My Role were assessed for identifying with beta values are positive except age, religion and the causes for role conflict. The values range between caste (Table 7). The equation is fit as the F-value is 49.1 per cent and 36.8 per cent. The largest group significant. The explanation power of the equation is conveys that office requires him to be available for R2 : .03605516 . The equation construct follows emergency work round the clock and the least group reveals that he has to go out on personal or friends work Y1 = 118.344 + (-0.082) Age + (0.040) Gender + (0.174) during office hours. The Calculated Mean is 17.75 and Marital Status + (0.013) Religion + (0.030) Caste + Standard Deviation is 6.07. The data on My Values (0.027) Nativity + (0.006) Education + (0.081) Basic assessed by the employees indicate these ranges from Salary

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Table 7: Regression analysis on First Component: Firm and Peers

** Significant @ 1% Level, * Significant @ 5% Level The second component (Job and Life) as dependent on socio-demographic and employment factors is fit into multiple regression equation (Table 8). The Beta intercept is 204.122. The equation is fit as the F-value is significant with the explanatory power (R2 ) of 0.0268. The Age, Religion and Caste are impacting in reverse direction. The regression equation with Y2 as dependent variable follows

Y2 = 204.122 + (-0.029) Age + (0.036) Gender + (0.142 ) Martial Status + (-0.019) Religion + (-0.014) Caste + (0.024) Nativity + (0.010 ) Education + (0.077 ) Basic Salary Table 8: Regression analysis on Second Component:

** Significant @ 1% Level, * Significant @ 5% Level

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The regression equation with third component (HRM in reverse direction and the equation is Systems) as dependent factor on socio-demographic and Y3 = 237.878 + (-0.005) Age + (0.079) Gender +(0.193) employment factors is constructed (Table 9). The equation Marital Status + (-0.018) Religion +(0.044) Caste + is fit as the F-value is significant with the explanatory (0.029) Nativity + (0.024) Education + (0.095) Basic power (R2 ) of 0.066. The Age and Religion were moving Salary.

Table 9: Regression analysis on Third Component:

** Significant @ 1% Level, * Significant @ 5% Level

The Perception of Peers has inverse impact by age religion and caste is not positively associated. The work diversity. The age, religion and caste diversity on Job structure and flexibility attracts diverse workforce (Vidhu and Life is moving in reverse direction. The age and Shekar, 2019), the study upholds in the case of age religion diversity presents similar trend on HRM systems. diversity. The age, religion and caste diversity are major diverse variables on HRM systems, Job and Life and Perception The religion and caste are surprise elements on their role on Firm and Peers. The age diversity in the contemporary in impacting the HRM practices in India. The period has generational gap with more generation (20- oversensitive reaction of the macro policy at the national 30 years) in the IT and ITES sector. The average age is level is the reason for identification with the above two 34 years across all the sectors under study, the perceptions variables. The other Diversity factors Gender, Marital towards the three components have inverse relationship Status, Nativity, Education and Basic Salary are directly in comparison with the other diversity factors. The new impacting Firm and Values, Job and Life and HRM generation workers are different at work with respect to systems. The three hypotheses are not proved in this broad patterns of engagement (Mukherjee, 2019). The research and therefore a relationship exists between the age diversity due to generational difference is likely key socio-economic and demographic variables with HRM factor for future HRM practices. In the Indian context, Systems, Job and Life and Firm and Peers.

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Conclusion: Ethnicities, Identities and Social Capital.New York: Routledge. The diversity factors in the Indian context effecting on HRM Systems, Job and Life and Firm and Peers are 8. K Meena, S Vanka (2013).Diversity Management reflected by Age, Religion and Caste. In India the and Human Resource Development: A Study of demographic divide of the contemporary workforce is Indian Organizations. Pacific Business Review a factor which impacts HRM factors, Job and Life and International, 5 (7):45-51. Firm and Peers' The HRM strategies are to be focused on the age diversity. The consciousness towards religion 9. Kandel, Eugene, and Edward P. Lazear (1992). Peer and caste has not been completely wiped out from the pressure and partnerships. Journal of Political workplace and is a point for attention. Economy, 100(4): 801-817.

References: 10. Kerstin A. Aumann, Cheri Ostroff (2006) Multi level fit: an integrative framework for understanding 1. Chia-MeiLuabShyh-JerChenbPei-ChiHuangbJui- hrm practices in cross-cultural contexts. In Francis Ching Chienbc (2015). Effect of diversity on human resource management and organizational J. Yammarino, Fred Dansereau (ed.) Multi-Level performance, Journal of Business Research, 68(4), Issues in Social Systems (Research in Multi Level April: 857-861. Issues, Volume 5), Emerald Group Publishing Limited: 13 - 79. 2. Emma Parry, Jean McCarthy (2017). The Palgrave Handbook of Age Diversity and Work, UK: 11. Lu, Chia-Mei & Chen, Shyh-Jer & Huang, Pei-Chi Palgrave Macmillan. & Chien, Jui-Ching(2015). Effect of diversity on human resource management and organizational 3. EunaeChoa and Tammy D.Allenb (2019).The performance. Journal of Business Research, transnational family: A typology and implications 68(4):857-861. for work-family balance Human Resource Management Review, 29(1), March: 76-86. 12. Lucas, Robert E., Jr. (1988). On the mechanics of economic development. Journal of Monetary 4. Fang Lee Cooke and Debi Saini (2010). Diversity management in India: A study of organizations in Economics, 22(1): 3-42. different ownership forms and industrial sectors. 13. Marshall, Alfred (1890). Principles of economics. Human Resource Management, 49(3), May: 477- New York: Macmillan. 500. 14. Mukherjee (2019). Managing the 5. Florian Kunze, Stephan Boehm and Heike Bruch Millennials.Human Capital, 22(9), Februry: 28-29. (2013). Organizational Performance Consequences of Age Diversity: Inspecting the Role of Diversity- 15. Oualid Abidi, Halil Zaim, Dina Youssef, Houshang Friendly HR Policies and Top Managers' Negative Habibniya, Alper Baran (2017). Diversity Age Stereotypes. Journal of Management Studies, Management and Its Impact on HRM Practices: 50(3), May, 413-438. Evidence from Kuwaiti Companies. Eurasian 6. Gudivada Venkat Rao (2018).The emerging fourth Journal of Business and Economics, 10(20):71-88. gender-Robot in New Technology Human Resource 16. Shen, J., Chanda, A., D'Netto, B., & Monga, M. Management Environment. Indian Journal of (2009). Managing diversity through human resource Training and Development, 48(3), July, 65-68. management: an international perspective and 7. Harry Goulbourne, Tracey Reynolds, John Solomos, conceptual framework. The International Journal Elisabetta Zontini (2010).Transnational Families of Human Resource Management, 20:235-251.

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17. Subhash C. Kundu, Jahanvi Bansal and Arshinder International Journal of Econonomic Management Singh Chawla (2015).Managing Workforce Science, 4:261. doi:10.4172/2162-6359.1000261 Diversity through HR Practic. In book: Emerging Horizons in Business Management, Delhi: 22. Rana Haq (2012) The managing diversity mindset Victorious Publishers. in public versus private organizations in India, The 18. Thomas Cornelissen, Christian Dustmann and Uta International Journal of Human Resource Schonberg (2017). Peer Effects in the Work Management, 23:5, 892-914, Place.American Economic Review, 107(2), February: 425-456. 23. Pramila Rao, (2015).HRM trends in India - a professional perspective.Strategic HR Review, 19. Vidhu Shekar, 2019.Human Capital, 22(9):38-41. 14(1/2). Retrieved from 20. Wambui, T. W., Wangombe, J. G., Muthura, M. W., https://doi.org/10.1108/SHR-01-2015-0002 Kamau, A. W., & Jackson, S. M. (2013).Managing accessed on 2/2/2019. workplace diversity: A Kenyan perspective. International Journal of Business and Social 24. Editor (2008). Religion and Corporate Culture: Science, 4(16):199-218. Accommodating the Religious Diversity at the 21. Meena K (2015) Diversity Dimensions of India Workplace-A Survey Report. Mumbai: Society for and Their Organization Implications: An Analysis. Human Resource Management.

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 31 PERSONNEL TODAY JULY -DECEMBER 2019 Skilling Millennials to remain Entrepreneurial through New Age Education Dr. Purushottam Bung

Abstract The workforce of today, in the age group of 20-35, whom we call Millennials share a unique composition of characteristics VIZ; attitudes, behavior, values, beliefs and way of life. They are different from the characteristics of earlier generations.

Under this context it is important to understand their (millennials) mindset, needs and expectations so that we can align and adapt our education policy and practices to meet their requirements (physical, mental, emotional and cultural).

Attempt has been made in this paper to discuss the implications of this paradigm shift on education which has to reorient with a strong emphasis on skilling - reskilling - upskilling with an entrepreneurial mindset than just bombarding the learners with information, which we call as New Age Education.

Introduction

Millennials have been shaped by the forces of 7. Little scared of technological advancements globalization, making the society increasingly connected 8. Believe that knowledge is supreme, skill is secondary and interdependent in terms of economic integration, information exchange, cultural diffusions and travel. As Under such circumstances, i.e. when there lies a huge a result, Millennials operate in environments that not gap in how these two generations of the workforce think, only integrate vertically the multiple generations, but believe and act, it becomes important to understand the also integrate horizontally individuals across national newer generation and make required changes in the way and cultural boundaries. we educate them so that smoother transition can be made to meet the requirements of newer generation. Whereas earlier generations of the workforce, characterized by the following, is quite contradictory to Current Scenario that of Millennials; Millennials - the fascinating generation, most educated 1. Conservative in their thoughts and actions one that dominates todays workforce (estimated at 75% of the global workforce by 2025) are characterized by 2. Believe in remaining focused on one thing at a time the following attributes; 3. Individualistic as remaining competitive is more 1. Fascinated by new technologies (computers and important internet are part of life) 4. Inclined to work in hierarchical kind of environment 2. Believe that "It's cool to be smart" 5. Conventional in their approach which is rule based 3. Are diverse racially and ethnically and hence 6. Risk avoiding or risk neutral behavior embrace inclusivity

Dr. Purushottam Bung, Professor and Director, R.V. Institute of Management, Bangalore, e-mail : [email protected]

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4. Gravitate towards group activity and collaboration make the learning experiential, interactive and authentic. 5. Believe that doing is more important than knowing (Having right set of skills is more important than 2. Creating conducive learning environment which is knowledge) innovative, personalized, trans-disciplinary and flexible. This calls for a new thought and ideology 6. Believe that multitasking is a way of life which revolves around students, their interests and careers that they want to explore. Offering wide 7. Believe that staying connected is essential range of program options with a never imagined 8. Zero tolerance for delays and expect instant bouquet of courses (physical, digital, blended, etc.) responses 3. Focusing on the futuristic skills demanded by the 9. Favor experiential learning (trial and error with a Millennials and industry alike than the ones that are willingness to accept failures) than rule based and perceived by the educators like; critical thinking, logical approach to learning problem solving, analytics, global orientation, decision making, cognitive flexibility, people Moreover, the Millennials have been shaped by the management, creativity, negotiation, etc. forces of globalization, making society increasingly 4. Frequent and continuous updating of curriculum connected and interdependent in terms of economic catering to the needs of Millennials vetted by the integration, information exchange, cultural diffusions experts and delivered using innovative pedagogical and travel. As a result, Millennials operate in tools like; case based teaching (text, audio and environments that not only integrate vertically the multimedia cases), role plays, storytelling, multiple generations, but also integrate horizontally workshops, projects, activities, industrial visits and individuals across national and cultural boundaries. tours, TED talks, competitions, etc.

How we can bridge the gap? 5. Making learning more of fun through Setting up Given the paradigm shift in the composition the informal forums/platforms for the learners like; Communication club, Reading club, Movie club, (demographic and psychographic) of the future Yoga club, Cultural club, etc., and organizing series workforce, it is important to align and adapt our education of activities and competitions to strengthen their policy and practices with the expectations of the soft skills (communication skills, presentation skills, Millennials (physical, mental, emotional and cultural) interpersonal skills and other soft skills) and also Attempt has been made in this paper to discuss the the hard skills (domain specific skills) implications of this paradigm shift on education which 6. Strengthening the linkage of an educational has to reorient with a strong emphasis on skilling - institution with the industry and building a robust reskilling - upskilling with an entrepreneurial mindset interface with the industry (local/district level/state than just bombarding the learners with information. level/ national level/ international/ global) and should result in win-win kind of situation. Industry should Implications for educators: get the benefits of training their personnel by Meeting the expectations of the Millennials through providing them a platform for continual education New Age Education characterized by the following offered by the Institution and seeking consultancy attributes; and research services offered by the Institution. Similarly, Institution should get the benefits of better 1. Learning has to be experiential, interactive and internship and placement opportunities for their authentic. Extensive usage of activity based learning, students offered by the industry and keeping its project based learning, immersive learning, curriculum and pedagogy contemporary through simulations, games, laboratory experiments, etc. to frequent interaction with the industry.

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7. Inculcating entrepreneurial attitude amongst learners References: at all levels has become the underlying philosophy of the new age education as recruiters are now Travis J Smith & Tommy Nichols. (2015). Understanding focusing on corporate entrepreneurship, where-in the millennial generation. Journal of Business Diversity, they have people working as if it were their own 15(1). organization. The emphasis on creativity and innovation has further emancipated the need for Deloitte 2017 millennial survey. (2017). The Millennial entrepreneurial mindset among the problem solvers mind set: workstyles and aspirations of Millennials. and decision makers of the organization. Entrepreneurship is now not restricted to the Bannon, S., Ford, K., & Meltzer, L. (2011). Understanding comprehension of running one's own business but Millennials in the Workplace. CPA Journal, 81(11), also extended to running the business for which 61-65. he/she is working - which is popularly known as Intrapreneurship. Entrepreneurial mindset, Entrepreneurial Zeal, and Entrepreneurial Energy Deal, J., Altman, D., & Rogelberg, S. (2010). Millennials are the key competencies that recruiters look for in at work: what we know and what we need to do future employees along with the other competencies. (if anything). Journal of Business & Psychology, 25(2), This signifies the importance of entrepreneurship 191-199. education.

Conclusion Guha, A. (2010). Motivators and hygiene factors of Generation X and Generation Y-the test of two-factor India being the youngest nation with a huge workforce theory. Vilakshan: The XIMB Journal of Management, in the working age group of 20-35, it becomes extremely 7(2), 121-132. important to train the Millennials in the futuristic skills and develop entrepreneurial mindset among them. Otherwise the situation could become disastrous. This Kaifi, B. A., Nafei, W. A., Khanfar, N. M., & Kaifi, is possible only through replacing our current education M. M. (2012). A multi-generational workforce: managing policy with the New Age Education policy and practice and understanding millennials. International Journal of and embracing it to the core. Business & Management, 7(24), 88-93.

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 34 PERSONNEL TODAY JULY -DECEMBER 2019 We must not marginalize our trade unions: We must empower them Dr. Dipak Kumar Bhattacharyya

Abstract Globally trade unions are losing their positions. Density of trade unions has substantially decreased. In India, the position is equally bad. Organizations, across the globe are now putting pressures on workers to be out of their unions for certain extra privileges. Many organizations even unlawfully prevent workers to form unions. Although such aversive reaction to trade unions has some basis (grounded on past experiences of the organizations), author suggests, before we marginalize our trade unions, let us think partnering with them. Organizations must empower unions with new knowledge and skills, create the level playing field, so that they can emerge as true partners and work for mutual benefit. Such inclusive approach in the long run even benefits organization in terms of their sourcing of manpower, talent attraction, and even in marketing their products or services.

Introduction

Since the Bombay Mill Hands' Association formation representation, as leaders are from the organized sector. in 1890, trade unions in India have come through the Another obvious reason is paucity of data. New leadership ages. Unlike their European and American counterparts, from the unorganized sector is missing, or to be more where occupation specific trade unions exist, in India specific have not been allowed to emerge, typically to trade unions characteristically are general unions, with guard against political interests. direct or indirect political affiliation. In its present form, The biggest challenge for Indian trade unions is to it appears we are marginalizing our trade unions and unshackle the control of political parties. They are killing leaving the onus of protection of labour rights and them, rather than positively patronizing them for settling privileges, even those guaranteed by law, to the hands their issues. This has become possible for obvious of employers. Good employers can do better, but majority fragmentation of trade unions over the years. Today we of those, for whom profit is their sole objective, labour find increased number of enterprise-based unions, many exploitation will be more institutionalized. This we have of them are not affiliated to central trade unions. In seen in pandemic situation now. addition, Indian trade unions are largely guided by the From the days of new economic policy announcement political parties. Political parties to compete for the vote of the Government of India in 1991, trade unions in bank always try to get trade unions' support. Multinational India are facing challenges. First let us consider what companies and so also economically developed countries is critical mass represented by the Indian trade unions? allege in India we have more stringent labour laws to It is only 8.5 percent of people who are employed in protect the rights of the workers. Hiring, firing, and the organized sector! Residual 91.5% remains regulating working conditions, being highly mandated unrepresented, even though technically these cross- by the labour laws, MNCs often find themselves in sections of workers require trade unions' support. Trade uncomfortable situations, as their way of doing business unions now adopt more inclusive approach to present in their free economy give them such flexibility in labour the workers of unorganized sector, but it remains management practices. Otherwise how after marginalizing ineffective. Reasons are obviously for heartless trade unionists in Columbia, these multinationals (some

Dr. Dipak Kumar Bhattacharyya, Professor, Human Resource Management, Xavier Institute of Management, Xavier University, E-mail: [email protected]

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of these companies also operate in India) can continue organizations, where with management initiatives, trade their business. In India with the advent of labour codes unions have been systematically trained on various (in the form labour reforms), we will gradually head for topical issues and with their enlightened knowledge, similar situation, unless otherwise our trade unions play trade unions became more proactive in partnering with their responsible role. the organizations for achieving excellence.

Trade unions are now important partners for sustainable Trade Unions position - India and global development of organization. The Cancun Agreement Throughout the world, trade unions have been accepted (ILO, 2010) resolved on such important roles of trade as an institution for establishing workers' rights. Mediating unions. `Just transition' approach (denotes consideration the industrial relations between the employers and the of affected people by decision makers) for organizational employees; trade unions play their important role. With sustainability advocates among others, need for human responsible trade unions' activities, harmonic industrial and labour rights, along with protective social systems. relations, matching with various stakeholders' Historically, trades unions were first started in Europe expectations is possible. Responsible trade union and North America, and gradually it engulfed the western activities, alongwith the responsible managerial practices, world and subsequently the rest of the world. The trade can never deter the industrial growth. In India, we have unions movements had played a crucial role to fight for success stories of Murugappa Group, Tata Group, Dabur, decent wages, workplace health and safety, working etc. hours, equal rights, safety net, etc. But now trade unions In India, we do not have any elaborate research studies in many countries are coping with serious problems. on trade unions' density at the macro level. Venkatratnam Union density is declining, and the unions are having (1997) and Kuruvilla (1996) could estimate trade union difficulties in organizing our workers. Employers in density as low as two percent of total labour force. ILO many countries, including India, are taking the (1997) studies however put this percentage to around opportunity of slackening growth of trade unions. In 5.4 percent of total wage earners, and below 10 percent some countries, say Australia, to undermine the spirit of economically active population. Another study by of trade unions, enterprise level bargaining, and even Das (2008) negates such estimates, attributing this to one-on-one, i.e., individual level bargaining contract inaccurate data published by Indian Labour Yearbook. have been legalized. This literally trivialized the sanctity This study shows that union density is above 30% of the of collective bargaining as an institution. Recent example wage-employed workers. Membership claim of central of collective bargaining, between IBA (Indian Banks' trade unions when studied over three decades indicate Association) and Bank Unions, which dragged over increase in their membership by more than 100% from several years with multiple rounds of inconclusive 1980s figure. But again, such verification when we do discussions, can be a blow to collective bargaining as in terms of paid subscription by members to their an institution to settle wage negotiation. Organizational respective unions, the percentage is substantially low, level anti-union propagations are evident in the USA, and even in some cases, it is negative. Recent ILO's U.K, and even in some Scandinavian countries, where estimate on density of trade unions in India shows the trade unions density is quite high. percentage figure as 13.4%. Scope of the Study Trade unions density is the most important indicator of This paper after reviewing the trade unions' position in trade unions strength. Density of trade unions is an India, in terms of its density, and pacing with the results indicator of possible influence of unions on the workforce. with the global trend; suggests the need for inclusive High density indicates high penetration, and hence the approach of the organizations about the trade unions. high degree of influence. In the 1990-2003 periods in In the process trade unions also need to market their the USA, trade union density declined from 15.5% to importance to their stakeholders, more importantly their 12.4%, and in the countries under the European Union, employers. The author has experience in different it declined from 33.1% to 26.3%. Trade unions density

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in OECD countries decreased from 20.8% in 1999 to Management also can realize the dignity of workers 17.3% in 2011. more than their previous generation and therefore are less prone to ill-treat with them. The important point is A decadal trend in trade unions' density for some select that unionized labour accounts for only a small portion countries (including India) is presented in table-1 below: of the total workforce. It should not stand in the way of Table-1: Trade Unions Density for select countries policies that generate employment for the larger group outside trade unions' control. Country 1990 2000 2010 To rationalize the activities of trade unions in India, USA 16.1 13.5 11.9 Government of India also has come out with the Trade Japan 24.4 21.3 18.3 Unions (Amendment) Act of 2001, and subsequently Australia 40.5 24.7 18.1 series of Bills, including the recent Trade Unions (Amendment) 2019. But these also cannot make our India* 27.8 30.4 15.8 trade unions effective bargaining agent to secure the United Kingdom 42.6 29.8 26.3 rights of the workmen, primarily for low density of trade Source: Industrial Relations Indicators, Trade Union unions, which obviously is for multiplicity of unions at Membership Statistics, ILO, Geneva, 2014. Website: organization level. The importance of trade unions www.ilo.org/ifodial/information-resources/dialogue- formation was highlighted by researchers like; Vickery data/lang--en/index.htm (1999) and Kaufman and Taras (1999) for the interest of the workers. However, we also have researcher like * Data on India computed from various reports of Colvin (2003), who could find even in non-unionized Ministry of Labour & Employment, Government of workplaces, workers are not always in difficult situation. India. Why do we require trade unions in India? Declining trend of trade unions' density in India, like other countries of the world, are primarily attributable National level data analysis reveals that even on date to the changing skill level of new generation of workers. only 45.8% of the total workers in India (other than Post 1981 onward, India is experiencing structural change those engaged in agriculture) are covered under some in the economy, shifting sectoral importance to primary social security schemes, which are statutory in nature. and secondary to tertiary. Workers with new skill sets What is more surprising, even in government sector; all are more educated, enlightened, and sensitive to their workers are not fully covered under social security individual needs. They are capable to negotiate their schemes. In fact, the trend is so alarming in government terms directly with the management, which management sector that, over the years, concerns for social security in principle also agree as acceptable norms, as for workers has declined from previous 87.23 percent management can vary terms on merit count. Such decline to 86.03 percent (during the year 2009-2010). Similar in trade unions' density, in addition to India, is a global declining concern for social security measures are also phenomenon now. Like their predecessors, trade unions evident in public sector companies, where the decline in UK, USA, Germany, France, and Italy can no longer is from previous 61.22 percent to 58.05 percent in 2009- influence the economic decisions of the country; they 2010. Although this phenomenon is attributable to large now play their limited role to negotiate with their scale casualisation of the workforce, but the scenario employers. But at least in their case, collective illustrates our lackadaisical national level concern for bargaining as an institution still exists. Reviewing the labour welfare (Bhattacharyya, 2014). With renewed trend in India, we find, however, literal collapse of focus on unorganized workers, present government did collective bargaining trend, which again signals declining take number of initiatives to bring more and more workers trend of trade unions activities in India. under some state sponsored social security schemes. Responsible trade union leaders with a long-term vision But organization level voluntariness in improving the can adapt their policies to suit the new realities. social security for workers are still far from cry.

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Evidently many Indian organizations are resorting to laws, companies, including public sector companies, are discriminatory labour management practices. This is increasingly making use of contract labours. With more evident when we see the way Indian organizations amended labour codes, such trends will continue to design their compensation and benefits plan. Gender increase. pay gap, pay differences across education groups, Conclusion differences in Industry-wise compensation and benefits, occupation-wise differences, and so also high pay inequity Trade unions can legitimize their positions in organizations, playing the pro-active role. Today between executives and non-executives, etc. are some organizations require good governance practices, attract of the examples of discriminatory labour management talent, engage and retain employees, institutionalize practices in India. This is primarily attributable to teamwork, value diversity, better market spread for weakening bargaining power of our trade unions. reaching their products and services to wide cross- Reasons for reduced density of trade unions in India sections of people and society, etc. In all these areas, through trade unions' involvement, organizations can Gradual decline of trade unions' density particularly in benefit immensely. Europe and America, so also in Australia and Japan, no doubt indicates globally trade unions are shaken. Indian For example, as part of good governance practices, one figure is also not encouraging, rather depressing. Most important requirements of organization are to focus on unfortunate part of Indian data is its reliability. We do corporate social responsibility (CSR). Organizations can not have any concern for labour data. These signals meaningfully involve trade unions in CSR activities. indicate trade unions are gradually being discarded by With their involvement, trade unions can get the sense the workers. Obviously, employers are now able to of inclusiveness, and gradually align with the organization settle their scores in direct negotiation with the workers. for mutual benefit. Talent attraction, particularly through The composition of present generation of workers is referrals, can also be facilitated by the trade unions. As ambassadors to organizations, trade unions can be an different than their predecessors. Generation Y are more effective link between the organizations and the society. enlightened than baby boomers and generation X. Similarly, in employee engagement and retention Second reason obviously is expectation of better pay programmes also trade unions can be effective. The and working conditions. Generation Y, with the increased author has also seen the enthusiastic unions' participation knowledge (acquired through training), desperately try in several company sponsored programmes. In for achieving a level playing field in organizations with institutionalizing teamwork, and diversity neutral better pay and working conditions. They understand workplace practices, trade unions inclusiveness also nothing comes free, and hence even individually can helps. Trade unions as possible marketing support could negotiate better pay and working conditions for increased be another area, which can be explored. performance and productivity. Whatever may be reasons for changed directions for the The other possible reasons can be their struggle for trade unions today, it is the joint responsibility of the existence. Changing technology and business process organization, and so also the trade union leaders to think today make jobs more fragmented and definable. With for mutual inclusiveness, rather than distancing from minimum number of core people in the payroll, one another. companies can manage their operations with flexible Hence rather than marginalizing our trade unions, it is workforce, like; temporary, sub-contracted and part time. better to empower trade unions in India, both for harmonic Even though casualisation of employment through industrial relations and mutual progress, which together outsourcing and sub-contracting is restricted in India by can ensure our sustainable future.

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References : Bhattacharyya, D.K. (2012), Human Resource International Labour Organization (ILO, 2010), Cancun Management, 3rd edition, Excel Books, New Delhi. Agreement: ILO highlights call for a "Just Transition" with given jobs and decent work. Available from: Bhattacharyya, D.K. (2014), Compensation Management, http://www.ilo.org/global/about-the- 2nd edition, Oxford University Press, New Delhi. ilo/newsroom/news/wcms_149987/lang-en/index.htm. Colvin, A. (2003), Institutional Pressures, human resource Kaufman, B., and Taras, D. (1999), Non-union employee strategies and the rise of non-union dispute resolution, representation: Introduction, Journal of Labour Research, Vol. 20 No. 1, pp. 1-8. Industrial and Labour Relations Review, Vol. 56, 375- 392. Koolsterboer, Dirk (2007), Innovative Trade Union: Strategies, Zuidam Uithof, Utrecht: Stichting FNV Press. Costine, P. and Garavan, T.N. (1995), Trade union Kuruvilla, S. (1996), Industrialization Strategies and attitudes to training and development: the road to a more National Industrial Relations Policy in Southeast Asia: positive and proactive approach? Journal of European Singapore, Malaysia, Philippines and India, Industrial Industrial Training, Vol. 19 No. 10, 1995, pp. 38-44. and Labour Relations Review, Vol. 49, No. 4, pp. 635- 657. Das, S.K. (2008), Trade Unions in India: Union Membership and Union Density, The Indian Journal of Veenkataratnam, C.S. (1997), Industrial Relations in Indian States, Industrial Relations Research Association Labour Economics, Vol. 431, No. 4, pp. 969-982. and Global Business Press, New Delhi. International Labour Organization (ILO, 1997), World Vickery, J. (1992), Unemployment and skills in Australia, Labour Report, 1997-1998, Industrial Relations, Reserve Bank of Australia Research Discussion Paper Democracy, and Social Stability, ILO, Geneva. No. 1999-12.

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 39 PERSONNEL TODAY JANUARY - JUNE 2019 Book Review

in her diverse roles as a successful learning partner, "Reality Bytes - The Role of HR in Today's World": mentor and coach to leaders, leadership teams and A Contemporary Ready Reckoner by Aparna organizations to build competencies, learning abilities Sharma; Vishwakarma Publications, Pune 2015; for achieving purposeful performance. She is the winner Pages -191, Price Rs 200/- of many accolades.

I have gone through the book and found it very The author has covered lucidly the following areas with interesting. This is a rare book written so well without caselets namely: Competencies; Compensation & using management jargon, which sustained my interest Benefits; Organization Development; Change to read the book thoroughly. At the outset, I suggest Management; HR Analytics; Managing Employee Exit that all HR managers, Professionals, and MBA students & Separation; Strategic HRM; & HR Challenges etc. I must read this book. The single most competitive edge once again recommend this book for the HR - Practicing for organization is its people. However, many times Managers, Faculty, Professionals, and MBA Students. managers fall short of managing people well, probably because formal education in HR does not prepare the young to deal with the reality at work place. The unique feature of this book is that, each topic has been provided with relevant caselets for discussion. This book will be very useful for the faculty members, especially in the area of HR. This book - A Ready Reckoner contains 11 Book Reviewed by: caselets. Prof (Dr) Aloke Kr Sen The book covers very well the Employer and Employee Former Professor & Director SOMS- IIEST Shibpur & Value Proposition. This is a rare book written by Aparna Ex- Director & Professor Heritage Business School, Kolkata Sharma who has over 18 years of intensive experience e-mail: [email protected]

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 40 PERSONNEL TODAY JULY -DECEMBER 2019 Legal Notes

Compassionate appointment - proceedings should continue, after accused person has been exonerated in the criminal charges by the competent Court? Constitution of India, 1950 - Arts.226 and 14 - Whether (ii) On consideration of law settled by the Apex Court, on the Regulation 4(3) of the Rajasthan State Transport Corporation issue which is raised herein any charge framed against the Compassionate Appointments Regulations, 2010, (for short respondent in the disciplinary inquiry which was distinct from Regulations) is violative of Article 14 of the Constitution or in condition to the charges framed in the FIR and in said of India, 1950? On consideration of rival arguments and criminal case, decided in favour of respondent - workman. position of legal pronouncements their Lordships of Apex (iii) There is no infirmity in order of the learned First Court Court disagreed with the view taken by their Lordships in concluding that the Disciplinary Authority and Appellate of Rajasthan High Court and answered this question in the Authority had completely misdirected themselves, in imposing negative with these conclusions: the punishment on the respondent, two years after the order of acquittal of respondent in the said Criminal Case. (iv) The (i) The intention with which Regulation 4(3) is made is reasons given by both the Disciplinary Authority as well as to obviate the liability of the Corporation in payment the Appellate Authority betray their determination to proceed of compensation under the Act and to provide against delinquent (respondent) despite the settled proposition compassionate appointment to the same person. in law, being to the contrary. (v) The impugned judgement dated 31st March 2016 is committed. (ii) Regulation 4(3) cannot be said to the discriminatory. Their Lordships (of Apex court) are not in agreement (H.C.Cal.)…951 with the Judgement passed by the High Court that Regulation 4(3) in violative of Article 14 of the Contract Labour (Regulation and Abolition) Act, 1970 - Constitution of India. S.10 - Abolition of contract labour system - A challenge is (iii) As the respondent has received the compensation by the petitioner - appellant Union to the Judgement of learned under the Act, he is not entitled for compassionate single Judge, rejecting his prayer to direct respondent No. 1 appointment under the Regulations. Judgement of - State of Gujrat, to issue necessary Notification, abolishing High Court is set aside and appeal is allowed. contract labour system in all the 38 activities carried on by respondent No.3 ( listed in Annexure - A to the petition). On (iv) As the respondent in C.A. No. 7803 of 2019, had filed consideration of rival arguments in view of all the case law claimed petition under the Act, which was allowed available on this crucial issue, their Lordships concluded that by the High Court, as being covered by a judgement (i) as held by the various judicial pronouncements that the in Civil Writ Petition No. 13862 of 2014. The Appeal action u/s. 10 of the Act is quasi - legislative action, there is No. 7803 of 2019 filed by the Corporation is allowed no need of observing principles of natural justice. (ii) The in terms of the Judgement in Civil Appeal No. 7802 of aforesaid discussion and narration of the proceedings would [email protected].(C)No.4772 of 2017. clearly indicate that the principle of natural justice cannot be said to have been violated, so as to vitiate the proceedings (S.C.)…1032 before the Authority. (iii) On perusal of impugned judgement Constitution of India, 1950 - of learned single Judge of this Court it clearly transpires that the learned single Judge has taken into consideration all the Art.226 - Misconduct, Disciplinary Inquiry, Punishment, aspects of the case and has rightly dismissed the writ petition. set aside - A challenge is from the Municipal Corporation to (iv)The grievance raised by the appellant cannot be redressed the Orders passed by learned single Judge, setting aside the in a petition filed under Article 226 of the Constitution of punishment awarded to respondent - employee for serious India. type of misconduct he had committed, which was duly proved in the disciplinary inquiry, held by the Corporation. On (H.C.Guj.)…851 considering rival arguments, their Lordships of the Division Employees' Provident Funds and Miscellaneous Provisions Bench of the High Court concluded that (i) the entire dispute Act, 1952 - centres on the similarity/dissimilarity of the charges made in the criminal case and in disciplinary proceedings, and the S.s.7-A- Coverage of pigmy agents/collection agents of question for consideration is, whether the departmental small deposit amounts - Questions for consideration - (i)

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Whether pigmy agents/collection agents appointed by the contentions, the court held that (i) It would be in the interest Banks for collection of small deposit amounts, could be of justice to permit petitioner to prefer statutory appeal so that covered (as employees) under the provisions of the Employees' quantum of dues can be appropriately examined by the Tribunal. Provident Funds Act & Miscellaneous Provisions Act 1952. (ii) There is merit in contention of petitioner that due to death (ii)Whether the Provident Fund Commissioner could enquire of his father, no appeal could be filed before the Tribunal into the applicability of the Act of 1952 on such Banks and within prescribed time. (iii) Keeping in view that interim if so the liability of the Banks under the provisions of the Act protection had been granted in favour of petitioner and also of 1952? On exhaustive consideration of case law available the petitioner is asking only opportunity to assail assessment on the issues involved herein, his Lordship answered the order by way of statutory appeal, petitioner granted four weeks questions partly in affirmative and disposed of the petitions time to prefer appeal assailing order dated 5.11.2012 in with a detailed guiding lines enumerated in para 28 sub paras accordance with law. (iv) Balance amount lying with respondent (1) to (17). no.1 be retained by him till final adjudication of appeal and will be treated as due compliance with condition of pre-deposit, (H.C.Bom.)…863 as required under Section 7-Q of the Act. (v) The order passed Ss. 7-A, 7-1, 7-Q- Determination of amount due from will not be treated as a precedent. employer - Appeals - Deposit of amount on filing appeal (H.C.Del.)…1059 - Complete waiver of - Whether sustainable - A Challenge is from Petitioner to the order of EPF Appellate Tribunal S.7- A(4), 7-1 - Challenge to Order of Coverage of granting complete waiver of pre-deposit on filing appeal - establishment - A challenge is from the petitioner- Factory The Court held that : (i) Important factor weighed with Tribunal to the ex parte Order passed under S.7-A of the Act of 1952, was respondent's plea that M/s. Shramika Kutir Udyog were for coverage of the factory. On consideration of rival arguments, not exclusively carrying out work for respondent could neither his Lordship concluded that (i) The Order impugned was be held its principal employer nor could be saddled with passed by respondent-Authority on 25.9.2014, after issue of liability of paying provident funds dues of employees of summons to the petitioner on 2.11.2010 i.e., after almost three Shramika Kutir Udyog. (ii) There is no merit in petitioner's years, during which sufficient opportunity was given to plea that Tribunal did not record any reason for granting petitioner to put its case. (ii) It is to be noted that Application waiver. (iii) Once proviso to Section 7(O) specifically filed u/s.7-A(4) of the Act, was dismissed on the ground that empowers Tribunal with discretion to grant complete or partial the Order dated 25.9.2014 was not an ex parte Order. That waiver after recording reasons for such grant, it could not be Order dated 18.11.2014 after which present petition has been urged that it should not exercise such discretion . (iv) There filed on 16.3.2016. (iii) Rule 21 of the E.P.F. Appellate Tribunal is no merit in contention of petitioner that merely because (Procedure) Rules 1997, would not include the power to respondent had not disputed the calculations made by petitioner condone delay beyond the further period of 60 days, as at the time of passing order, it implies that respondent had permitted by Rule 7(2) of the said Rules. (iv) The statutory admitted its liability. (v) Petitioner chose to assail order remedy to challenge an Order passed U/s.7-A of the Act, after granting waiver from pre-deposit after inordinate delay of 120 days, is lost by the aggrieved party. (v) On the principal three and half years. On this ground also no interference is grievance of absence of identification of beneficiaries', despite warranted with impugned order at this belated stage. (vi) Writ all chances which petitioner had during the said three years, petition being meritless is dismissed with pending applications. no attempt was made by the petitioner. (vi) It is found that (vii) Tribunal directed to decide the matter expeditiously. 8. there is no exceptional case made out by the petitioner, to The Court has not expressed any opinion on merits of case enable the Court to entertain the challenge as raised herein. which should be decided in accordance with Law. The statutory remedy as provided has not been availed within the prescribed period. This Court is not inclined to entertain (H.C.Del.)…1071 the writ petition.

S.7-A, 7-Q - Determination of money due from employer (H.C.Bom.)…919 - Liability to pay interest - Attachment - Arrest Warrant - A challenge is from petitioner to attachment order dated S.7-1 - Constitution of India, 1950 - Art.227 - Jurisdiction 23.10.2013 and show cause notice dated 18.11.2013 - Whether the writ petition filed by the appellants assailing whereunder petitioner has been asked to show cause as to the Order dt. 20.10.2005 passed by the E.P.F. Appellate why arrest warrants should not be issued against him. The Tribunal, would be maintainable before the Calcutta High petitioner has also prayed for permission to file statutory Court, can exercise territorial jurisdiction. Thus the Calcutta appeal before the Tribunal. After considering the rival High Court was not justified in its decision to decline to

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 42 PERSONNEL TODAY JULY -DECEMBER 2019 entertain the writ petition. The Order dt. 19.8.2008 is set aside Act, it is expected to ensure strict adherence to the provisions and appeal is allowed. The C.O. No.208 of 2006 is restored thereof and is under statutory duty to make timely deposits of to the file of the High Court of Calcutta. The contentions the provident fund dues in accordance with the timelines raised on merits are kept open to be considered by the High prescribed Court in accordance with law. under the Act.

(S.C.)…1047 (H.C.Del.)…1073

Ss. 14-B, 7-1 - Interest and damages - A challenge is by the S.16(1)(d) - Exemption under E.P.F. & M.P. Act, 1952 - petitioner, Management to the Order dated 21.12.2010, These three appellants - Limited Companies take exception confirming the Order passed by E.P.F. Commissioner No.II, to orders passed by respondent No.1 Authority, rejecting their Madurai, imposing the penalty u/s. 14-B of the EPF & MP prayer for grant of exemption from the provisions of this 1952 Act 1952. Considering the fact that pending the Writ Petition, Act, which orders were upheld by the single Judge and Division the petitioner has remitted the arrears of contributions and Bench of the High Court of Rajasthan. On consideration of taking note of the fact that the respondent levied penalty, on rival arguments , in the background of the law settled by the a wrong premises that the financial difficulties or such reasons Courts, their Lordships concluded that (i) Each one of the have no role in mitigating the liability for payment of penalty facts by itself in each of these three units, taken as a whole, u/s. 14-B of the Act as concluded by the Authority concerned, there can be no other conclusion than the one arrived at by his Lordship concluded that (i) the question of levy of damages the R.P.F. Commissioner, despite sum jumbling which has u/s. 14-B of the Act arises only when the employer fails to arisen in the Order of the R.P.F. Commissioner which has pay contributions intentionally or without sufficient cause. been affirmed. (ii) There is little doubt that BCCL Jaipur is (ii) Unless there is mens rea or actus reus on the part of the a unit of BCCL, Mumbai and the other two units have linkages employer, damages cannot be levied u/s. 14-B of the Act. (iii) and are controlled by BCCL Jaipur in a manner which would In view of pronouncement of Honourable Supreme Court, satisfy the functional integrality and the general unity of this Court is not inclined to accept the view of other High purpose test, and the same are met in the facts of this case. Courts. (iv) Impugned Order dated 21-12-2010 passed by the (iv) With this prolonged litigation the appellants are getting respondent No.1 Tribunal confirming the Order of the 2nd away lightly on the issue of such liability, the exact amount respondent is set aside. (v) The second respondent is directed of which , is to be determined. The liability of each of the to refund the deposited amount of Rs. 30,00,000/- to the establishments would be co-extensive with BCCL, Mumbai. petitioner within a period of six weeks from the date of receipt (v) In this background this Court is inclined to impose special a copy of this Order to the petitioner. costs on all three appellants (as detailed in para 44 of this Judgement). (H.C.Mad.)…1011

Ss. 14-B, 7-Q, 7-1 - Power to recover damages - Liability (S.C.)…1022 to pay interest - Element of means rea-Appeal - A Challenge Employees' State Insurance Act, 1948 - is from Petitioner-Company to the order dated 22.7.2019 passed by EPF Tribunal rejecting Petitioner's challenge Ss.75, 2(9), 2(12), 2(13), 2(17), 2(22) - Demand Notice, to assessment order passed by respondent - After considering asking respondent - Company to pay contributions - A the rival contentions of the parties, the Court held that (i) challenge by the E.S.I Corporation is to the Judgement and Very fact that petitioner had made deductions from incentives Order passed by ESI Court, Ahmedabad, concluding that ESI paid to employees in itself shows that petitioner was well corporation had no case to issue demand Notices, for aware that provident fund was payable , yet wilfully failed to contributions, in view of the nature of work executed by deposit it within prescribed time. (ii) Mens rea on part of respondent-Company and payments made by it to the petitioner is writ large and respondent was fully justified in contractors were not ''wages'' and they were not the employees claiming damages and interest from petitioner. (iii) Reliance of respondent-Company. His Lordship concluded that (i) In placed by petitioner on the case of National Co-operative the background of law settled by the Apex Court in Hyderabad Sugar Mills Ltd v. P.O., EPF Appellate Tribunal Delhi and Asbestos Cement Productions Ltd. V. The E.S.I Corporation others is wholly misplaced where the facts were entirely reported in 1978 (1) SCC 194, the term 'employee' would different. (iv) There is no merit in the contention of petitioner include not only include persons employed in factory, but also that respondent should have sent monthly reminders in case persons connected with the work of the factory, though they there was any delay in depositing provident fund dues. (v) may be working within the factory or outside the factory, or Once an establishment is allotted Code Number under the may be employed for the work of factory in any manner or

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 43 PERSONNEL TODAY JULY -DECEMBER 2019 such employees are included within the definition of Sexual Harassment of Women at Workplace (Prevention, ''employee''. (ii) Keeping in mind definition of ''employee'' Prohibition and Redressal) Act, 2013 - u/s. 2(9) of the Act, read with S.2(12) of the Act, and of the word ''factory'' u/s. 2(13) of the Act, the word ''immediate Section 4 - Internal Complaints Committee (ICC) - Whether employer'' under S.2(13) and of ''immediate employer'', S.2(17) validly constituted - A Challenge is from Petitioner - Complaint of the Act of the word ''principal employer'' and the word to the PU Senate proceedings dated 21.1.2017 and 29.1.2017, ''wages'' defined in S.2(22) of the Act was interpreted by the Syndicate proceedings dated 10.1.2018 and 17.2.2018 and Apex Court. (iii) The ESI Court committed an error by granting letters dated 20.3.2018 and 19.7.2018. Petitioner has sought permanent injunction of recovery of contribution towards directions by issuance or writ of mandamus or otherwise ESI. (iv) Therefore impugned judgement dated 27.10.1989 is directing respondent no.1 to constitute a Committee to inquire quashed and set aside. into complaint of petitioner as per provisions of the Act. After hearing parties, the court held that (i) Court is unable to (H.C.Guj.)…843 persuade itself that ICC has not been constituted by Payment of Gratuity Act, 1972 - respondent/employer. (ii) Respondent, after due application of mind, sought recommendation of Syndicate/ Senate and Ss. 4(6)(i)(a), 4(6)(i)(b) - Central Bank of India Employees after considering same, constituted/approved members of Gratuity Fund Rules, 1975 - Rule 12 - Misconduct - committee with liberty to petitioner to raise all grievances Termination - Forfeiture of gratuity - Grounds for - A there. (iii) There is no infirmity in impugned orders/letters challenge is from petitioner employee to the order of and same are legally tenable and are in consonance with respondents forfeiting his gratuity on termination of his service. applicable law. (iv) Contention of petitioner that ICC constituted After examining rival contentions, the court held that : (i) A without jurisdiction is rejected. (v) There is no material record perusal of the previous show that gratuity of employee is to support contention of petitioner that respondent no.1 has liable to be forfeited on account of loss or damage caused to not been apprised of complete proceedings and was given employer. In instant case neither any damage has been only some part of Senate's Proceedings withholding vital quantified nor it has been quantified in inquiry report. (ii) information about dissent recorded by other members of Argument of counsel for petitioner to grant opportunity and committee. (vi) Even assuming otherwise, once resolution is remand of matter is not acceptable in view of judgement in passed by majority of Senate, any dissent did not affect its the case of Mohinder Singh Gill and another v. Chief Election legality and validity and non-submission of notes of dissent Commissioner, AIR 1978 SC 851. (iii) In such circumstances of no consequence and is insignificant . (vii) Constitution of difference as such between the punishments is also apparent committee is as per mandate and in consonance of the Act and the words used are 'termination of service' which is also and contrary contention cannot be accepted. (viii) Reconstitution the language of section 4 of 1972 Act. In such circumstances, of Committee or grant of stay on proceedings would provide jurisdiction of respondent bank also to forfeit gratuity on both unfair handle to and place complainant in a commanding counts is lacking. (iv) In the case of Union Bank of India v. C.G. Ajay Babu and Anr. 2018 II CLR 325 (S.C.) : (2018) position to act on her whim and fancy to dictate her own terms 9 SCC 529, it was held by Apex Court that gratuity could be until constitution of committee of her own members. That forfeited only on account of financial loss caused to bank. would erode statutory authority of employer to constitute the Further no criminal proceedings were filed against the committee. (ix) No valid grounds of bias or malice have been employee as such there was no jurisdiction for forfeiture of made out by petitioner against constitution of committee. (x) gratuity as the misconduct of acts which involved moral While upholding constitution of ICC, petition disposed of turpitude had to be duly established in court of law. (v) with liberty to petitioner to raise her contentions and objections Impugned order not sustainable and is quashed. Bank directed for mitigation of her grievances before ICC which shall looking to pay gratuity within two months with interest @ 8% p.a. into the same before submitting its final report. (xi) Contentions (vi) Respondent Bank also directed to pay interest on amount raised by petitioner have been dealt with only in passing herein of leave encashment from date of dismissal to appeal within and any observation shall not be construed as opinion on two months failing which interest shall be payable @ 10%. merits.

(H.C.P. & H.)…1079 (H.C.P & H.)…977

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 44 PERSONNEL TODAY JULY -DECEMBER 2019 FORM IV (see Rule 8)

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