Turbulent Times
anagement education provided by business schools in India is passing through turbulent weather. By a rough estimate there are about 4000 Mmanagement Institutes with approved seat capacity of about 3.5 lakh . Nearly 140 B-Schools have sought AICTE permission to put their shutter down. The reason-seats are not filled (Business model is not viable). Numbers of admissions are stayed at about 20% to 30% of the sanctioned strength. There is over capacity, shoddy products, business men in education and very little adaptability to this competitive situation. Academic research is rare in India. According to a study by UT Dallas, all business schools of the country together published just 36 papers in journals during the period 1999-2012 against 276 of Wharton and 182 of Harvard. In another study,during this period,there were only 108 articles published by Indian based authors in 40 journals tracked by Financial Times-means just five articles per year from this big country. The reason for this sad state of affairs is Poor HR practices of majority of B-Schools which have not encouraged the research culture.Such Institutions either do not have any formal PMS or even if it is there, does not incentivise research or penalize lack of it. Tier -2 and 3 schools heavily rely on part time and visiting faculty. The need to upgrade and retrain faculty in emerging business perspectives is practically absent in this category. Industry exposure is very little. The summer projects/ internship programs are suspect. It is another shoddy business. The downward spiral of management education is the heavy focus on placements during the time of admissions. Entire ecosystem works towards placement against converting students into Managers or entrepreneurs. Many institutes have cosy arrangement with companies through middle men for placements.Illegal and immoral practices for achieving placement numbers go way deeper. Much can not be expected from such business schools which are run by novices and commercially oriented people. It needs visionary leadership, excellent faculty and a strong performance culture which can only be developed through good people centric HR practices. Performance culture is a major contribution in gaining reputation. In this cover feature experts have looked at various facets of HR practices in B- schools. Eminent educationists and management thinkers of the country like Dr.T V Rao, Dr.VRK Prasad, R. Natrajan, M. Gopalakrishna, R.S.S. Mani, Dr. P.N. Singh and Dr. Upinder Dhar talk about their perspective and outline responsibilities of various stakeholders. If you like it let us know. If not, well, let us know that too. Happy Reading!
Anil Kaushik Challenging Meaningful Cover story of March regarding efforts being Feb. issue is of much value for HR managers. The made by a foundation is an eye-opener. Making amount of pain you have taken to prepare this people educated is one thing and making them issue is visible. Thanks for very open, transparent employable with dignity is another task which is and logical views on role of legislators. Thanks to really a challenge, seldom taken up people. My judiciary for protecting the interest of industries sincere thanks to Dr. Singh and his foundation and thereby economy of our state. Look forward who is quietly doing this herculean task. for more meaningful coverage. Nitin Shah Narendra Kumar Ojha Very Apt Sumptuous Dr. Ganesh Raja views on success of young Indian I have received February, 2013 issue of BM. Many professionals globally is very apt and relevant. He thanks. Nice in appearance and 'sumptuous' in has rightly underlined the challenges before the content. Saw the encouraging feedback on young managers. They have to fight with never- December Cover Story "People Challenges in say-die attitude to get success globally. Banks". A.K. Patil M.G. Warrier Naturally Blessed Thought Provoking Aparna sharma and Tanvi Gautam have Greetings from MTC Global. Thanks a lot for remarkably presented the status of women in the sending a copy of your special issue. All the present times with challenges being faced by them articles have come out very well and thought- and basic social issues involved in restraining provoking. their overall growth. Tanvi’s worry makes sense Prof. Bholanath Dutta when she says that gender diversity initiatives in the corporate world are designed in ad-hoc way Excellent which lacks a vision. Aparna’s prescription for women empowerment seems to be workable. At Thank you very much for sending me the March the end, it is the women who has to leverage her issue of Business Manager, which has come out strenghts and set her own standards to make her excellently well. You have presented the work of position at different social and professional levels. our Foundation in a nice manner which should After all women is blessed with natural ability of motivate other managers from the Corporate hanlding multitasking. Sector to take innovative steps in the social sector. Rita Menon Dr. P.N.Singh Stay Interview 100% Useful About Practice of stay interviews by renowned This subscribed journal is really an informative organisations is good to know. It helps one and compiled in such a way which is 100% understanding the benefits of this HR useful to get update self and make others update. intervention which contributes towards employer It always serves as a Hand Book not only for HR retention. It is the competence of HR person how professionals but also for Legal consultants. he makes use of this tool to create a balance and Special thanks to you for your valuable harmony.It also helps is gauging employee morale. contribution in getting this beautiful journal published. Himani Manchanda Biswajit Pani
Dr. Reddy honoured Dr. Jagan as Mohan Reddy was conferred “Best HR with Professor” “Best Professor in HR” award by ET Now at Mumbai
Readers are invited to comment on articles published in BM through email at : [email protected], [email protected] Business Manager 02 April 2013 15-30
April 2013 Vol. 15 No. 10
Chief Editor ANIL KAUSHIK
Associate Editor Anjana Anil
Hon'y Editorial Board Dr. T.V.Rao Dr. Rajen Mehrotra Dr. V.P.Singh H. L. Kumar
Hon’y Research Lead Indranil Banerjee [email protected] in Business DELHI : F- 482,Vikaspuri, New Delhi-18 GHAZIABAD : Schools A - 39, Lohia Nagar, Naya While India boasts of world class Business Schools such as IIMs, XLRI, FMS, XISS, to Ghaziabad (UP) name a few, on the other hand there are hoards of B-schools that are struggling to meet the benchmark, not just in the quality of education imparted but also in the way Hon'y Co-ordinators they are managing human capital.This only highlights the fact that lack of good faculty and adequately designed courses fail to match the industry's demands.This is A.S. Sharma - Gurgaon enough reasons for higher education to wake and take charge of their human capital. [email protected] Pankaj Pradeep- Pune [email protected] Mihir Gosalia- Mumbai [email protected] Deep Sikha Chakravorty-Kolkata [email protected] K.Soundarraj- Chennai [email protected] Owned, Published and Printed by Anil Dr.V.R.K. Prasad Dr.T.V. Rao Prof. R.Natarajan M. Gopalakrishna Kaushik at Sun Prints, Ganpati Tower, Nangli Circle, Alwar - 301001 and Published From B- 138, Ambedkar Nagar, Alwar - 301001 ( Raj.) India Editor : Anil Kaushik The views expressed in the articles published in Business Manager are those of the authors only and not necessarily of the Publisher/Editor. While every effort is made to have no mistake in the magazine, errors do occur. Publishers do not own any responsibility for the losses or damages caused to any one due to such ommissions or errors. Annual Subscription 900/- through DD Dr. Upinder Dhar Prof. R. S. S. Mani Dr. P.N. Singh (by ordinary Book-Post) (by Courier 1140/-) favouring Business Manager ( Please add More people centricity is the need of the hour -Dr.V.R.K.Prasad 40/- to outstation Cheques) may be sent to: HRM strategy should cover all constituents -Dr.T.V.Rao B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) Prof. R.Natarajan India, Ph : 91-144 - 2372022 Faculty should not be treated like factory worker - Mob.: 09785585134 Need to create integrated HRM equation -M. Gopalakrishna www.businessmanager.co.in Differentiator is the HR practices -Dr. Upinder Dhar E-mail : [email protected], [email protected] HR challenges in the higher education... - Prof. R. S. S. Mani Published on 1st of Every Month HRM interventions should aim at innovation - Dr. P.N. Singh LATEST FROM THE COURTS Questions by readers on variety of Latest verdicts from different High problems they face at work and answered Courts and Supreme Court effecting by ANIL KAUSHIK Chief Editor. Look at it. employer employee relations. 40 These may also be of some help to you. 42
Making PMS Forfeiture of effective gratuity Sec. 4(6) does not enumerate Why is it that PMS often fails to have an the acts of omission or acts impact despite all the systems in place? An involving moral turpitude. In article by Rohan Chopra & Anuradha this regard one needs to take Mishra 6 recourse to the certified standing orders and service 50 rules. An article by B. Saikumar The real integration When two companies come together for real integration to take place, it is important that the souls of both the companies are in sync and blossom into one, which helps in Handling unethical the overall growth of the company, its people, society and the environment. An article by Ajit Menon behaviour 9 BM’s fictionalized case study presents dilemma faced by leaders in real 53 organisations. Experts are invited to Enriching, engaging & enabling send solutions. Best will be published. - The new retention strategy In recent times, managing and retaining talent has captured the attention of organizations worldwide.While there can be significant impact to organization productivity due to employee attrition, it is now the key responsibility of HR to enrich, engage Lacking in customer and enable employees in order to retain key talent. An article by Dr. Abinash Panda engagement culture 12 55 Case Study Analysis for ‘Challenges in service delivery’by Mihir Gosalia Workplace negativity For any organization to succeed, it is critical that the workplace exudes positivity. When negativity seeps in to any work atmosphere, it is HR who has to ensure that it is cleansed out of the organization with support from the management. An article 31 by Dr. Ashu Singh 39
Career change and transferable skills Just sitting on the right track doesn't mean that you are safe.You 57 may be run over if you are not moving with pace. So plan your 34 career for a right reason. An article by S.Chandrasekar
Employee development- meritocracy Managing Business in Cross-Culture perspective60 One of the core ideas on employee development is meritocracy. The Study & Practice of OB An article by P.B.S. Kumar. 36 Law for all... Trade Unions Law Knowing Compensation Law Law of Transfer Bridging generation gap Understanding Gratuity Organizations can design simple and effective OD interventions to address the underlying issues. An article by Anagat Ashish 37 64 Rohan Chopra & Anuradha Mishra
Making PMS effective
Why is it that PMS often fails to have an impact despite all the systems in place?
Caselet1: Shivani heads the HR function of an Engineering firm. She had been hired with a specific mandate: bring in a culture of high-performance into the organization's functioning. At her insistence, the firm had invested in an online PMS based on goal-setting, time-bound project evaluations, mid-year reviews, year-end consensus meetings, and individualized career-customizations. The first year-end appraisals under the new system had ended some time back. Most employees, as well as reviewers, had kept to the stringent deadlines, and there were surprisingly few issues. However, what surprised her more was what emerged at a senior management meeting to assess the effectiveness of the new system: every line manager, without exception, reported no perceptible impact on employee performance or productivity.
Caselet2: Prashanth was worried. The Performance Management System at his company monitored, among other things, the time that an employee spent on trainings for self-development. Prashanth was required to put in a mandatory 40 hours in a year - any less, and it would directly impact his final rating. It was year-end already, and Prashanth had a little over 18 hours. With a busy schedule, there was no way he would be able to complete the remaining 22 hours. Listening to his dilemma, Anand suggested a solution, almost casually: Online Courses. These, he joked, carried learning credits of 2 to 4 hours, but, the learning assessment could be completed within 15 minutes - with just a little ingenuity and common-sense. "That's what I did", he added for good measure."Just pick up a course with 2 hours of learning credit", he joked, "and wrap up the course-end assessment in 15 minutes flat ."
These are some of the issues faced by organizations while implementing the PMS. Why is it that while most organizations have moved away from traditional trait based (hard work, sincerity and loyalty) Performance Management Systems to goal based system, they are still finding it difficult to show the business benefit of their PMS to top management? Why is it that many organizations are failing to establish the link between high performance & performance management? Why is it that PMS often fails to have an impact despite all the systems in place? The answer to these questions lies in the perspective with which organizations look at a PMS. Rohan Chopra Anuradha Mishra While some organizations look at it as an administrative process to capture employee contribution, others use it to penalize poor performance. Many also look at the whole process of PMS narrowly as a transaction. Most often one would find such organizations measuring PMS effectiveness from the perspective of timely completion of goal setting exercise, number of employees covered under the goal setting, timely completion of appraisal process, release
Business Manager 06 April 2013 Making PMS effective
Organizational results stem from high performance. This is achieved only when people operate in a culture which nurtures and supports them.
of increments and promotion letters, identification of TSMG Approach on using PMS as an training needs, etc. instrument to build a performance Mature organizations with a good understanding oriented culture of the role of PMS too, often struggle to find the right At a systemic level, organizations should strike equilibrium between the Process and Transaction the right balance between strategic and operational aspect of PMS on one hand, and Strategic and aspects of PMS. While they should continue to Organization building aspects on the other. monitor its effectiveness from the view of Many organizations, especially large diversified implementation of policy, process & training, they Indian conglomerates, in the recent past have made should drive its strategic goals by including: efforts in this direction. They have also been a) Organization culture building, successful to some extent, but have lost sight of the goal soon thereafter - only to shift back to a purely b) Employee development, and, transactional perspective. c) Driving individual and organization performance Reasons for such a backward shift are many, as the most vital objectives. including: Organizational results stem from high performance. Business leaders, many a times, lack an This is achieved only when people operate in a culture understanding and appreciation for intangible which nurtures and supports them. benefits Lack of availability of tools to measure PMS effectiveness from the perspective of culture building, enhancing individual and organizational performance Prevailing organizational culture of over simplifying every process Our experience of working with diverse clients has shown that the most widely accepted objective of PMS is to motivate & reward higher performance. However, most organizations take an individual oriented view while implementing such objectives and, by fostering competition amongst employees, end up destroying more value at an organizational level than they create at an individual level. Such narrow perspective is also responsible for creating silos within the company. Fig: Five Dimensions for an effective PMS
Business Manager 07 April 2013 Making PMS effective
Thus, Organizations should focus on the following the same time, viewing PMS as an ongoing process factors (as part of the PMS) to drive individual and and not as a yearly ritual greatly enhances its impact. organizational performance and build a culture of Role of Key Stakeholders openness, trust and development. Like strategies, which fail due to implementation Hygiene Factors - Factors which are must haves mistakes; creating and maintaining a high for success of any PMS however would not have any performance culture relies largely on understanding visible impact on employee performance the role of each stake holder. 1. PMS Policies & Processes PMS should not be considered as an HR-only 2. Training on PMS intervention. The ownership of PMS must be shared Motivators - Factors which lead to enhanced between Senior & Line Management to achieve best employee performance by motivating them & results. create a high performance culture 3. Goal Setting- Defining measurable performance goals linked to organizational outcomes & work levels. 4. Performance Feedback & Dialogue-An open, fair & accurate dialogue emphasizing on employees strengths and positively bringing out the development Fig:Ownership of PMS must be shared between Senior & Line Management to achieve best results areas. 5. Performance Coaching - A proactive engagement Effectiveness of a Performance Management guiding & motivating employee to achieve future System relies on the degree of commitment from the goals. It covers: top management. This adds credibility to the system a. Guiding employees in drawing clear action else people would view it as a mere process. Similarly, plans to achieve their goals Line management need to own the process. Objectives should be developed jointly between the supervisor b. Emphasizing on skills & behaviors and the employee and cascaded across all levels in the required in future organization. c. Clarifying performance expectations at All these strengthen the employees' belief that the each level is also very important. It gives organization, the managers, and the team are equally significantly greater performance returns committed towards the employees' career, rather than over-emphasizing the system development and financial interests. itself d. Connecting employees to high performing Conclusion colleagues & providing them with job related In times of continual change, uncertainties & information, experience & resources as these cut throat competitiveness, PMS plays a primordial will directly impact performance role in achieving organizational success. However, All these create an environment that fosters a high its impact & contribution would primarily performance culture by demonstrating that depend on how organizations deploy it. Measuring organization has credible commitment to employee PMS effectiveness from a perspective of policy, development. process and training will help in operationalizing A fair & transparent PMS with goal setting, and institutionalization, but a five dimensional performance coaching, and performance feedback approach is needed for PMS to continuously drive and dialog when linked to rewards is much more change and have a long term impact on culture effective & efficient in building a culture of high building and elevating individual & organizational performance & fostering employee development. At performance. BM
Business Manager 08 April 2013 Ajit Menon Executive Director- Group Head of HR, Dalmia Bharat Group
When two companies come together for real integration to take place, it is important that the souls of both the companies are in sync and blossom into one, which helps in the overall growth of the company, its people, society and the environment. The real integration
he definition of integration strong scrutiny from the existing varies depending on what employees and the new management we are integrating, why we with a simple mandate: Please don't are integrating. Generic upset the current operations. definitions define it as a Post-acquisition integrations are processT of attaining close and seamless the toughest and the most crucial. co-ordination between several Unless both companies become one in departments, groups, organizations, all aspects, the integration is systems, and the merger of two or incomplete and leads to future chaos more firms resulting in a new legal and losses. entity. The amalgamation of two or more agreements in to one contract Role of HR serves as a full expression of the intent Before we even talk of the of the contracting parties. acquisition, leave alone the integration However, when it comes to part, we need to first see what needs to integration post acquisition, it is a be done before the acquisition because different ball game all together. From due diligence before any acquisition is changing the name of the new the key to a good acquisition in the company to the alignment of first place. This is where HR plays a departments such as finance, human major role. resource, administration, sales, HR should get involved at the due- accounting, etc., it is all met with fierce diligence stage. This helps in positive reactions- some good and some bad. integration unlike a situation where The reactions begin from the first the HR is informed post the acquisition step when you start the audit and go all and then has to battle out the issues. the way down to the implementation When HR gets involved from the onset, stage. You can feel the eyes on you as it gives the employees a clear signal you take each step. And mind you, all that the company places their 'people this has to be done as per deadlines first', which is a positive signal. With that have been agreed upon, under
HR should get involved at the due-diligence stage.This helps in positive integration unlike a situation where the HR is informed post the acquisition and then has to battle out the issues. When HR gets involved from the onset, it gives the employees a clear signal that the company places their 'people first', which is a positive signal.
Business Manager 09 April 2013 The real integration
people cost being the largest in most companies, I for the acquisition. This includes: don't think its rocket science to realize that HR should Keeping a checklist ready where in every be playing the lead role in acquisitions. employee related query can be penned down Typically during due diligence, HR will audit the Getting answers for each and every employee new company's policies, procedures, practices, related query compensation structures and other employee related Arriving at agreed decisions on each and every documents. Based on their study, analysis and aspect of the acquisition, which includes people, findings, the HR Head will advise the MD on the product, performance, profit and prospect people health of the organization. It will advise the Taking sign-offs on each and every decision MD on what people liabilities are been taken on and what it would mean in the long run. This helps the related to the above by the concerned department acquisition team and the MD to take decisions, better heads, MD, promoter and any other decision negotiate with the new company and also help put maker from both sides some ground rules to the acquisition up front. Discussing the joined strategy map in detail, The areas HR needs to look at during due diligence agreed upon, timelines, accountability clarified are as follows: and signed-off Compensation structure Communication holds the key Perks and benefits Effective communication to its employees and Other salary related costs stakeholders is very essential. They should neither be HR policies and procedures taken by surprise nor be allowed to speculate and Performance management system and policies rumor monger because this can destabilize the Organization structures and their logic acquisition process completely. Commitments to long-term employees, unions, Every department, its people, product, society performance and related activities should be given Speed needed to acquire the company enough time to prepare themselves so that the final umbilical 'chord break' is clean. The transition period post acquisition is the most Senior leadership from both sides sensitive and needs delicate handling. Strategy agreed upon has to be deployed, promises made should be available during the should be kept, and culture promised should be transition period so that employees displayed. Most importantly, communication has to can clarify doubts and the transition be perfect, clear and regular. There should never be any doubt on this. Constant communication at every moves smoothly as per the deadlines. step is most crucial else there could be the fear of exposing the acquisition to scrutiny from all quarters. The communication to employees, the HR involvements at the early stages will help both owners of the acquired company, the society should companies who have decided to merge/integrate be regular so that there is no chance for unwanted develop a strong workable strategy up front. This is rumors by people who have personal interests and essential because the biggest force that is going to be hidden agendas. affected is the people force. This also has a financial A clear 100 day action plan based on a pre-defined impact during the acquisition, post-acquisition and strategy should be ready and deployed as per the during the integration stages. dates agreed upon. A slip on this will lead to The strategy for departmental mergers, people suspicions everywhere. Teams who will be working rationalization, layoffs (if any), culture deployment on the 100 day action plan should be pre-decided should be ready before hand. Knowing the existing based on the knowledge from the pre-acquisition due culture of the company being acquired, their people diligence and signed off statements during the rationale, their way of working, and their acquisition. It is always better to have teams which commitments internally and externally and the are a combination of members from the acquiring environment in general, etc., is very important pre- and acquired team. Never try to let suspicions cloud acquisition. you or you will end up with your own internal teams doing the transition, which in turn will be received Once the due diligence is over, the same is with stiff resistance. This is the period where the discussed with the acquisition team, decisions are acquired company employees should feel most secure taken and the go ahead is given for the acquisition, as and thus lead to 100 per cent co-operation. discussed earlier, the strategy map has to be in place
Effective communication to its employees and stakeholders is very essential.They should neither be taken by surprise nor be allowed to speculate and rumor monger because this can destabilize the acquisition process completely.
Business Manager 10 April 2013 The real integration
The areas HR needs to look at during due diligence are
Performance management Compensation structure system and policies
Perks and benefits Organization structures and their logic Other salary related costs Commitments to long-term HR policies and procedures employees, unions, society
Speed needed to acquire the company
Design and execution financial goals and lose focus on the long-term ambition. This leads to confusion, suspicion and The design and execution of the 100 day plan revolt. should be transparent (where necessary) and A clear, constant message that it is a flawless. The financial transactions during the performance driven organization and the culture transition should be made rationally and keeping in drives this through the organization is a must. The mind the organization. There is no room for new employees should feel that they are emotional decisions here. The culture of the respected as people; the organization rewards organization should be made clear from day one and and recognizes talent and at the same time act every action, activity that is being implemented strongly on complacency. There should be no should reflect the 'walk the talk' mantra. ambiguity here. What you sow first is what you will Senior leadership from both sides should be reap later. available during the transition period so that A proper analysis by a separate team on every employees can clarify doubts and the transition activity that is being conducted on the integration moves smoothly as per the deadlines. During the plan is a must. The errors/deviations should be transition, never be seen as the aggressor because it flagged and reported for timely corrections (if will be met with rebellion. Be seen as a team that is needed). This will ensure that no activity is left half working towards the betterment of the new company. done or without taking into account the macro Every decision should be linked to that so that picture. This is a very strong message to every employees can co relate to it. stakeholder in the organization. Having weekly meetings to review progress, Using new age technology to ensure speed and address on going issues, defining clear timelines to error free integration where ever necessary, solve the issues, communicating them to the affected automating process where ever there is scope for people etc. should be an integral part of the ambiguity and getting detailed reports help take transition. Communicating the progress, spreading a decisions quickly and also helps placing the facts on positive atmosphere, ensuring that people feel a part the table as and when the integration process is of the integration is the key to success. At every step, questioned at any step. the employees, the integration team and society should be communicated of the final goal and the The faster you are able to sync synergies, the progress we are making towards it. quicker you get the new culture set, the more transparent you are in your actions and Implementing change communications, the more you live up to your words, better is the transition. Just like marriages- a strong With every new acquisition come new changes. and mature acquisition is when you are able to sync Never implement changes without first explaining the souls of the two companies and blossom into one the benefit of the changes else it will be rebelled. that is good for the overall growth and future of the During the integration, care should be taken to company,its people, the society and the environment. ensure that focus is not lost from the long-term goal. The rest are all aggressive take overs. Whether they Many a times, being a running operation, the survive or not, only time will tell. tendency to take short cuts to meet short-term BM
Business Manager 11 April 2013 Dr. Abinash Panda Associate V.P.(L&D), Adani Group, Ahemdabad
In recent times, managing and retaining talent has captured the attention of organizations worldwide.While there can be significant impact to organization productivity due to employee attrition, it is now the key responsibility of HR to enrich, engage and enable employees in order to retain key talent.
Enriching, engaging & enabling - The new retention strategy
ddly enough, employers are 3E approach to talent facing critical shortage of talent in the world's second retention most populous country, India. The big question is how to retain Shortage of professionally talent? A list of 10 things that Oqualified and competent employees has organizations need to look into and find consistently bothered corporate leaders out if they have the right ingredients to globally.India is no exception. Along with retain talent has been mentioned as the problems with unresponsive follows. I have termed it as the 3E regulatory infrastructure, arthritic approach to talent retention. The three bureaucracy, talent shortage has been a aspects are (a) Enriching; (b) Engaging; major problem for many HR leaders. and (c) Enabling Rapid growth of the Indian economy is The 'enriching' domain takes care of partly to be blamed for this. The demand 'professional enrichment' of the for talent has outnumbered the supply. It employees through (a) job clarity, (b) therefore, becomes critical for any providing growth opportunities; (c) organization to retain talent! It does not regular feedback and counselling; (d) make business sense to hire talent from recognizing achievements; and (e) the market, as it would be more expensive empowering employees. The that way. It would be prudent to retain organizations, which are good at well groomed talent within the retaining talent, tend to 'engage' organization rather than letting employees by (a) respecting them as competition poach the talent! individuals and (b) keeping them well- Business Manager 12 April 2013 Enriching, engaging & enabling -The new retention strategy
informed. Finally, the third domain 'enabling' takes Recognizing achievements care of (a) providing psychologically safe work Does the organization recognize the achievements environment; (b) helping employees balance work- of an employee? Is the employee recognized in private family responsibilities and commitments; and (c) or public forum? Each human being has a need to be taking care of employees' well-being (Refer to figure) recognized and appreciated by significant others. If Let me elaborate each of these 10 aspects, they are not appreciated, they may not continue to clustered in three domains a bit further. feel motivated and may stop contributing. Ultimately, they become disengaged from the mainstream. Recognition, whether formal or informal, goes a long way in retaining talent. Empowering employees Employees generally quit their organization when they feel disempowered consequent to limited decision making authority.Each employee should be given autonomy to the extent of one's experience and competency. Empowerment through an appropriate level of authority and responsibility would help to retain the employee. A competent employee, if disempowered, would leave the A. ENRICHING organization sooner than later. Employees generally desire to be treated as 'partners' rather than Ensuring job clarity employees. They desire free flow of information. One of the reasons why an employee leaves an Marshall Goldsmith suggests the following to organization is lack of job clarity. There is no clarity empower employees in an organization: on what is expected from the person or how his performance would be assessed. Well-crafted job 1. Give power to those who have demonstrated the description with neat Key Result Areas (KRA's) is a capacity to handle the responsibility. must to avoid confusion. The reporting manager 2. Create a favourable environment in which should do whatever it takes to communicate and people are encouraged to grow their skills. clarify what is expected from the employee in a given 3. Don't second-guess others' decisions and ideas role. unless it's absolutely necessary. This only Providing growth opportunity undermines their confidence and keeps them from Each employee joins an organization with certain sharing future ideas with you. career aspiration. The person looks for career 4. Give people discretion and autonomy over their growth. A talented employee seeks out challenging tasks and resources. assignments, which provides opportunities for professional growth. In the absence of challenging B. ENGAGING assignments, the person would look outside for Respecting individuals greener pastures. It is the responsibility of the business leaders and the HR team to assign Are employees respected in their organization? Do challenging assignments to fast trackers and hi-pots they feel respected? If an employee does not feel so that they feel challenged and in the process grow in respected both as an individual and employee, the the organization. The talent management group probability of the employee continuing in the needs to have one-on-one discussion with each of the organization is less. An employee should be involved employees in the talent pool to discuss their career in decision-making, by reaching out to the person for aspiration. suggestion and acting on the feasible ones. Employees should be consulted. Involving employees in decision- Giving regular feedback and counselling making and problem solving processes is a key to An employee needs constructive feedback that making them feel respected. Irrespective of helps him grow. It should be frequent, on-going and designation and position in the organizational regular. Once a year feedback ritual looks like an echelon, each employee should be respected as an attempt to 'justify' the performance rating rather than 'individual'. The organizations need to have emanating out of genuine concern for employee's appropriate mechanisms to address each employee's growth and development. Each employee looks for need to be respected. The leadership plays a critical genuine and regular feedback and counselling. One role in this. needs to be empathic while giving feedback. Keeping informed Genuineness and empathy are keys to how the feedback would be 'received' by an employee. If the Another reason why employees quit is the lack of feedback is received positively, the employee's authentic information primarily about the commitment would not waver; otherwise it may lead organization's financial health. Employees tend to to disengagement and disenchantment. become victims to rumour and grapevine in and
Business Manager 13 April 2013 Enriching, engaging & enabling -The new retention strategy
Marshall Goldsmith suggests the following to empower employees in an organization:
Give power to those who have demonstrated the capacity to handle the responsibility.
Create a favourable environment in which people are encouraged to grow their skills.
Don't second-guess others' decisions and ideas unless it's absolutely necessary. This only undermines their confidence and keeps them from sharing future ideas with you.
Give people discretion and autonomy over their tasks and resources.
outside the organization. This way employee tend to influenced by workplace interventions. This feel disconnected, which lead to disenchantment. It is understanding, unfortunately, limits the term to imperative to keep employees informed. Vital those aspects of work which are perceived to information about the organizational health and influence well-being and are modifiable by the future course of action needs to be communicated. employer. Employee well-being, ideally should Employees also need to be informed about the embrace a wide number of other dimensions such as rationale underlying key employee related decisions. advancement, organizational, managerial, social and Both formal and informal communication channels physical workplace considerations as well as need to be leveraged. Technology-enabled elements such as people's physical and psychological communication channels should also be used by the health. organization for information dissemination. The organization should show genuine interest in C. ENABLING the overall well-being of the employees. In fact, the people processes and policies should take care of the Creating psychologically safe environment overall well-being of the employees. Who would not like a psychologically safe What next? Each organization has some sort of environment, where you can express yourself talent retention strategy supported by a set of without inhibition or restraint. In a psychologically systems and processes. How to check, whether the safe environment, no one is scared to speak out. systems and processes are effective to retain talent? Rather, one is encouraged to speak their mind. It Is talent management process working? sounds like a utopian concept. But, a psychologically safe work environment contributes significantly to How to gauge if the talent management process is the retention of talent. The discussion would be working? There are three key indicators, of which honest, authentic. There is no need to be politically two are perceptual in nature. They are as follows: correct or to ingratiate. It becomes a work (a) Commitment level (affective commitment) environment marked with professionalism and (b) Intention to stay individual respect. (c) Attrition rate Ensuring work -life balance One needs to take the exit interview seriously and Employees need to be supported to deal with analyse the reasons why employees have quit the family and personal issues, if any. It is important for organization in the past. Employees may not be an organization to help employees balance work and truthful during the exit interview. Hence, it would be family responsibilities and commitments. Moreover, help if the employees are approached by a third party there should be enough opportunities for an employee six months after they have quit. In such a case, the to enjoy and have fun while working. It is desirable to employees might share the real reason of quitting the create a 'family' like work environment at the organization. workplace in Indian context. Employees tend to Summing up contribute more when they operate in a work environment that they perceive to be like a family. A To sum up, talent retention is more vital than workplace without the fun element tends to be talent sourcing, which provides any organization the stressful. It affects the employees' health and their competitive advantage. No organization with leaking productivity. Workplace should be more than 'just a talent pipeline would remain competitive. It is place to work'. therefore desirable that organizations should give necessary attention to talent retention with Caring for employee well-being necessary processes and systems to enrich, engage Organizations generally include only those and enable employees. BM aspects of the overall well-being that they believe to (views are personal) be determined primarily by work and can be Business Manager 14 April 2013 in Business Schools While India boasts of world class Business Schools such as IIMs, XLRI, FMS, XISS, to name a few, on the other hand there are hoards of B- schools that are struggling to meet the benchmark, not just in the quality of education imparted but also in the way they are managing human capital.This only highlights the fact that lack of good faculty and adequately designed courses fail to match the industry's demands.This is enough reasons for higher education to wake and take charge of their human capital.
Business Manager 15 April 2013 HRM in Business Schools More people centricity is the need of the hour Education has always been a major challenge for India, and as a step forward, it calls for reforms that are people centric.This article explores the higher education system in India, its flaws, offers solutions and looks forward to a better and educated India.
Dr.V.R.K.Prasad Vice Chancellor, ICFAI University, Nagaland
HRM Issues "Human resources is the single and most invaluable asset of any nation to propel itself in the paths of progress and prosperity," said S.Ramadorai, Advisor to the PM, NCSD on the importance of managing human resources. There is a great need to look at all our reforms to examine as to how people centric they are. Household budget share of education increased from 2 per cent in 1993-94 to 7 per cent in 2011-12 with urban Indians spending Rs 1035 per month while rural India spent Rs 293 per month. With 80 per cent of all schools in India being of the government, even many rural families choose to send their children to private schools at higher costs. Private Schools admissions share hovered around 37 per cent during 2010-11. Lack of qualified teachers (99 per cent B.Ed graduates failed to clear the Central Teacher Eligibility Test - CTET, Dec, 2012), and their rampant absenteeism (25- 40 per cent) poor infrastructure and high pupil-teacher ratio in government schools could be sited as the main reasons for the shift to private sector. This is despite the RTE and Sarv Shikhsha Abhiyan and such like interventions, etc. Implementation of various quality related measures and effective monitoring mechanisms are still not in place when good quality schooling is the fundamental need for all round personality development of a human being. The CTET results (9 per cent pass in 2011 and 7 per cent pass in Jan 2012) indicate that B.Ed training itself needs to be revamped thoroughly to start with a cause and effect relationship. In case of premier institutes such as IITs and IIMs absorb just a top miniscule of 12 crore strong college age population. Here again the quality in most of the state run institutions is a major issue. Fortunately,academic salaries have increased substantially in 2006 (VI Pay Commission) to be even better among other BIRC (Brazil, Russia, India & China) countries in terms of purchase power parity comparison to the extent of getting placed at 4th among 28 countries as per a recent study.However, that has not helped to improve the situation as the faculty on contract basis in the same state run institutions continue to be paid poorly even now (Rs 18000 PM for a Doctorate and Rs16000 PM for an Assistant Professor - TOI, Hyd ,Feb 20,2013) and situation is no better or even worse in most of the private institutions.
Business Manager 16 April 2013 HRM in Business Schools
College teachers have no accountability, generally do On the motivation front, compensation still not update themselves, also do not get adequately remains a big issue in the private sector. Incentives evaluated, and salary rise and promotions are based for exemplary work hardly exist except in some more on seniority than on merit. Age old affiliation handful of institutions. Performance management system curbs initiative due to rigid bureaucratic and appraisal is rarely undertaken as an essential hassles. Most of the well-meaning, talented and operational activity, limiting it mostly to student dedicated teachers cross the shores in search of feedback only. Setting well-designed 'performance greener pastures. The education system especially at standards' at the beginning of the academic year the higher level is a significant contributor to the motivates the faculty to achieve them. One hopes that economic rise or down turn and the underlying cause the Centre for Policy Research in Higher Education that emerges out of its low performance is the poor (CPRHE) becomes a reality soon. Finally, 'retention' attention paid to human resources management as a strategy must be given its due place as the aspects of educational institutions, at all levels. An talented faculty continues to remain in demand educational enterprise irrespective of its size also everywhere. Fortunately the agenda of the recent needs to extract quality performance from its teachers Central Universities Vice Chancellors' Conference and other staff as any other business enterprise does has set the pace for a number of reforms in research it from its employees. Only quality teacher produces and innovation. quality students. How many institutions in our Leadership at educational institutions/ country can boast of a regular professional HR enterprises is traditionally limited to people with functionary and formal HRM practices in place just as teaching and research backgrounds, laying not much they are in case of a corporate entity or for that matter emphasis on their managerial, operational or in all educational institutions around the world? In administrative acumen. This results in maintaining business schools, there is a huge credibility gap as a 'status quo' or in ' carefree or pastime attitude' HRM is taught and preached but rarely/not practiced. rather than showing sparks of being innovative. An Engineering colleges are the worst affected as evident institutional leader needs to be a visionary, growth from the large unemployable graduates getting oriented, a line and staff integrator, a change churned out. More number of institutions and huge manager and networker, an innovator, a right culture budgetary allocations is not the answer unless they builder and finally may be a bit of teacher and are supported by qualified faculty, sound researcher (J Philip) in that order. infrastructure, and effective pedagogy and of all by rigid monitoring and review mechanisms. National To conclude Council for Higher Education and Research as an While the reforms are encouraging, they need to umbrella body subsuming all the existing regulatory be more people centric, addressing teachers, students bodies is yet to become functional on the ground. and non-teaching staff with adequate monitoring, Reforms are being undertaken in some universities reviewing and controlling mechanisms in place as a without considering basic infrastructural or well-coordinated effort throughout the country. Then pedagogic issues. Problems start with the only the society will reap benefits as a whole. There is recruitment of faculty where even doctoral also a pressing need to lend credibility and candidates can be found rarely able to articulate on respectability to the teaching profession to restore the their research topic effectively. Eligibility in terms of noble status once enjoyed by it traditionally. quantitative requirements supersedes the suitability aspect, i.e., the capacity to actually deliver on the job. May be there is some merit in the suggestion of an The selection committees need to consider all these expert Ashwasu Windlass, Chairman, MGRM Tech, aspects critically. Self-improvement of teachers as a USA in introducing an 'All India Teachers Service' for concept must be encouraged though various teachers and an 'All India Education Service' for the government sponsored 'quality promotion schemes' leaders of educational institutions at par with IAS and faculty development schemes are being and Central Services. As the first step in this long implemented with an ambitious target to train 10,000 journey, a formal and professional attention to HRM faculty members of engineering colleges. needs of the sector shall set the pace. BM
References 1. HRM in B Schools - Dr VRK Prasad, MBA Review, Icfai University Press, August Issue, 2007. 2. Education Sector: HR Perspectives Vol I & II- Ed - VRK Prasad, Icfai University Press, 2007. 3. Doctoral Thesis on 'Study of HRM Practices in Management Education Institutes' -Dr VRK Prasad, 2009. 4. Education Sector Reforms: HR Perspectives - Dr VRK Prasad & Dr MA Ali, HRM Review, Jan 2010. 5. Educational Enterprise: Leadership Issues - Dr VRK Prasad, The Times of India, Hyderabad, Jan 10, 2011 6. Business of HR in Business Schools - Dr VRK Prasad, M/s. Viva Publications, New Delhi, 2011. 7. What Ails Higher Education - Manoj Pant, The Economic Times, Hyderabad, Oct 12, 2012. 8. The Times of India, Hyderabad, Oct 26, 2012. 9. Learning New Lessons- Sumanyu Satpathy, The Times of India, Hyderabad, Nov 15, 2012 10. Key Note Address by Dr VRK Prasad Seminar on 'Higher Education in Nagaland: Issues and Challenges at Icfai University, Nagaland on 28 Nov 2012. 11. Effective HRM Practices: Perspectives on Engineering Education in India - Dr VRK Prasad, M/s. Viva Publications, New Delhi, 2013. 12. Skills Development is a National Imperative - S Ramadorai, NHRD Network Journal, Jan 2013 13. Understanding Return to Education in India, R Shukla & M Bordoloi, The Economic Times, Hyderabad, Jan 03, 2013. 14. NCERT Survey News Report - Aarti Dhar,The Hindu, Hyderabad, Jan 23, 2013. 15. An Alternative to IITs and IIMs - William H Avery - The Economic Times, Hyderabad, Feb 03, 2013. 16. Agenda, PM's and President's address: Conference of Vice Chancellors of Central Universities, Feb 05, 2013. 17. The Education Deficit - Arvind Singhal, The Economic Times, Hyderabad, Feb 12, 2013. 18. Scoring Higher on Education - Philip G Altbach & Pawan Agarwal, The Hindu, Hyderabad, Feb 12, 2013. 19. The Deccan chronicle, Hyderabad, Feb 20, 2013 20. The Times of India, Hyderabad, Feb 20, 2013 Business Manager 17 April 2013 HRM in Business Schools HRM strategy should cover all constituents
Like any organization that needs to manage and develop its workforce for its success similarly, a B-school has to equally learn the tricks of HRM for the growth and development of not just the Institution but its faculty, management, stakeholders, staff……
Dr.T.V.Rao Chairman,TV Rao Learning Systems
anagement education in most places is in a bad shape. It needs to be rescued. Recently, I came across a candidate, an M B A in marketing, who is practically jobless for the past three years. In another case, the B-school I visited said that they have a reduced the class size last year by aboutM 60 per cent. They had only 40 students in place of their sanctioned number of 100 seats. They did not get the required applications to fill the remaining seats. In another case, when I was addressing the faculty of a B-school, I found that most of them were clueless about some of the popular books in Management and used only their notes which were a decade old. In another case, the faculty of another B-school proudly claimed that they are using IIMA cases and even publishing their own research journals. Most of their faculty members are sent year after year to attend the IIMA Faculty Development program. In the recent past, a few institutions closed down as they failed to get AICTE recognition and some that were AICTE recognized closed down due to lack of students. I attribute the reasons for the good and the bad largely to greed, lack of vision and poor investment on the people who can impart good quality management education. And, who are these people who can deliver high quality education to students? Below is a list of categories that I term as strategic individuals: 1. Faculty 2. Management (Owners, Promoters, Donors, Management Committee, etc.) 3. Head of Institution (Director, or Dean or Principal, etc. 4. Staff (Administrative and Support Staff) 5. Parents 6. Industry that offers experiential learning (summer placement, project work, etc.) 7. Alumni 8. Advisory Boards that are constituted to suggest and ratify the curricula and learning experiences Any Human Resources Management (HRM) strategy,policy or budget Business Manager 18 April 2013 HRM in Business Schools
The Institute should have a dedicated faculty and staff development budget, which should be at least 5- 10 per cent of the salary bill of the faculty and staff.
should cover all the above eight categories of people. than managed. Their appraisal systems should Each one of them has a significant role to play in ensure planning of their work, a review of their helping the B-school to reach excellence. Of the eight plans, classroom delivery, publications, and industry categories, the first four are very critical to reach consultancy or extension work they do. The need to be excellence. appraised and feedback given for development from Faculty: They need to be constantly developed and the initial years of their joining so that they start put in touch with the continuously developing being excellent from the very beginning. The senior management field. The best practicing institutions faculty could be left alone to be mentors for the have a faculty development fund that encourages the juniors. Industry stints on a sabbatical should be faculty to participate in seminars and conferences encouraged so that they can bring reality to the and also sponsors them to create a fund to buy books classroom. Every faculty should be encouraged to and subscribe to magazines and offer incentives for conduct seminars and workshops in their field of papers published in journals. They also have a fund specialization to keep in touch with the industry for case writing, book writing and teaching material needs and experiences. They could expose the development. Developing faculty is the best incentive students also this way. At IIMA, in a course on a school can offer to those who teach. This could get entrepreneurship conducted by an Alumni of IIMA extended also to visiting faculty on a select basis as an (Sunil Honda) who is also an entrepreneur, every year incentive to ensure that they teach well and keep he brings alumni and other entrepreneurs and themselves updated. Where ever it is possible, the conducts a workshop for intending entrepreneurs Institute can offer and support such visiting faculties among the students. This has a tremendous impact on to undertake their Doctoral programs. The the students. The Institute should have a dedicated performance appraisal can be best left to the students faculty and staff development budget, which should and the fellow professionals to judge their writings. be at least 5- 10 per cent of the salary bill of the Faculty should be continuously developed rather faculty and staff.
Business Manager 19 April 2013 HRM in Business Schools
Directors of these schools should be appraised periodically for their stakeholder management. It is a good practice to have a Personal Advisory Board appointed by the Directors consisting of two or three eminent educationists who may visit the Institution once a year and interview the faculty and staff and give feedback to them. They could also promote undertaking Institutional climate surveys and 360 degree feedback. In addition, the Management Committee should devote at least one meeting in a year to HRM of Director, Staff and Faculty and discuss their impact. Staff: It plays a significant role how so ever small or big they may be in number. The way they respond to students, to visitors, faculty and parents, etc., communicates a lot about the practice of management to the students. They learn more about management from the way the Institution is managed and it is mainly through the faculty and staff behaviour. If they are not helpful, communicative, honour their commitments, the students are less likely to have a positive view of the management field. In a B- school, students learn as much form the way things are managed as from their classrooms. Hence, the need Annual 360 degree feedback and institutional environment for good staff. They need to surveys go a long way in helping the Heads of Institutions be developed and managed in recognize how their styles and actions are impacting the the similar way as the faculty. They should be given entire Institution. clear roles and responsibilities, and given training and continuously developed to enhance their competencies. There should Management: The management also needs to be staff development budget and they should also be be managed. They should have annual reviews of sponsored to visit other institutions and have study the management education; their own institutions tours. They should be encouraged to participate in work done and keep conducting vision-mission the in-house seminars conducted on management values clarification and self renewal workshops. themes. Most owners and managers do not realize that it is their greed that kills the Institution. They should The remaining four categories are not on payrolls not become over ambitious in extracting money of the Institution but the Institution has the from the students and not spending it for developing responsibility to manage the parents, alumni, the faculty and staff. They need to expose themselves supervisors from the industry. This is the most to mechanisms of fund mobilization, institutional neglected aspect of most HRM books for educational management, vision and mission and their role, institutions. The Institute should recognize that HRM practices of educational institutions and the they have a HRM role to play in managing and like. particularly developing these four categories of stakeholders. An annual exercise on getting all of Heads of Institutions: I have included this one them together for a seminar and designing annual person in a separate category. This person provides review and development interventions is a good leadership for the school. With poor leadership, the practice. They should be involved in interventions school can sink. He/she is singularly responsible for like the Future Search, Institutional Development faculty recruitment, motivation and development. and annual get together. He should be networked well, understand and constantly work for the priorities of the Institution, I am not giving details here of the possibilities should have the right educational philosophy and but as the Institution thinks about these categories, style. Annual 360 degree feedback and institutional opportunities to make an impact becomes clearer. A environment surveys go a long way in helping the good HRM should deal with all the above categories Heads of Institutions recognize how their styles and and there should be a plan for managing each of the actions are impacting the entire Institution. The constituents. BM
Business Manager 20 April 2013 HRM in Business Schools Faculty should not be treated like factory worker
Though B-schools have grown in numbers, there is an innate need for effective HRM policies and practices in India and giving due importance to the faculty is a step towards realizing the dream of good higher education.
Prof. R.Natarajan Former Chairman, AICTE
usiness and management schools have grown in number in the recent past, from 1888 in 2005-06 to 3858 in 2010-11 (more than the number of Engineering Colleges, which is about 3241). The investments and infrastructure requirements for business schools are considerably less than for engineering colleges, and Bhence this situation. Correspondingly, the admission capacity has increased from 122,663 in 2005-06 to 378,907 in 2010-11. With a Teacher to Student ratio prescribed by AICTE of 1:15, there is a need for 25,260 faculty members, with appropriate qualifications. The expectations from the students who join business schools have been rising through the years, and deep dissatisfaction sets in when their expectations are belied. In recent times, several business schools have closed for lack of students and consequent loss of financial viability. The most important contributors to academic quality and institutional performance are the quality and qualifications, and the performance and commitment of the faculty members. The HRM policies and practices in respect of the teachers are reflected in the systems and processes relating to their recruitment, induction and in-service training and development, retention strategies, including the provision of a motivating and intellectually stimulating work environment, performance management systems, and financial and non-financial incentive systems. Unfortunately, the faculty inputs to the higher education system, in general, and to the management schools, in particular, are those for whom Teaching and Research are not the first priorities. Many business schools make do with visiting or temporary faculty, whose commitment to the institution and the students is dubious. Several schools employ biometric ID systems for tracking the attendance of the faculty members! The availability of PhDs in Management and related disciplines is
Business Manager 21 April 2013 HRM in Business Schools
Recent trends in higher education include focus on outcomes-based teaching and learning, blended learning and flipped classrooms, innovation and entrepreneurship, quality assurance, etc., of which most faculty members are blissfully unaware.
woefully inadequate, both because of a paucity of administration, curriculum reviews, preparing PhD programs and the reluctance of students to project proposals for external funding, etc. Recent commit their time for pursuing PhD, especially in trends in higher education include focus on terms of the opportunity cost involved. Phanish outcomes-based teaching and learning, blended Puranam in his recent articles in the AIMA learning and flipped classrooms, innovation and publication Indian Management has provided an entrepreneurship, quality assurance, etc., of which insightful taxonomy of PhD-seekers: Researcher, most faculty members are blissfully unaware. Educator, Sophisticated Practitioner, Job-keeper, CV It must also be realized that the education sector is Builder and Stipend-seekers. unique in several respects in comparison to the Most of the management schools (and engineering industry and business sectors, and the HRM policies schools) in India are teaching-intensive institutions, and practices need to be different. Particularly in with very little research or industry interaction. The India, education is a non-profit activity, unlike main concerns of all institutions are: attracting good business whose survival depends on profitability. students into the institution and finding good Academic freedom, the freedom to choose a mix of activities to suit one's interests and competences, is a The most important contributors to treasured value for faculty members. Hierarchy is largely imperceptible among academics. There are academic quality and institutional many pro bono activities faculty members are performance are the quality and involved in, such as for example, setting and valuing qualifications, and the performance and exam papers, refereeing of journal papers, serving on peer review committees, to name a few. Some of the commitment of the faculty members. terms employed in business are unacceptable in the education sector, such as, profit, bonus and placements for the graduates, as result of which their commercial. efforts are focused toward marketing their The HRM policies and practices should recognize institutions. The HRM policies and practices do not, these differences, and suitably design the motivation as a rule, give importance to the career planning and and incentive schemes to maximize the faculty development of the faculty members, who are treated contributions. The assessment of faculty outputs like 9-5 factory workers, who are required to punch in requires careful design and analysis; many of them their entry and exit times, and treated as hirable are subjective and qualitative, such as, for example, commodities. Most faculty members learn the art and teaching effectiveness, student feedback, publication science of teaching, research and consultancy on the quality, etc. Recent academic governance initiatives job, and there is a great need for them to receive have borrowed from the corporate governance training and development inputs through workshops policies and practices, such as the roles and and colloquia. They do not perceive their multiple responsibilities of the governing boards, strategic roles, in addition to teaching and allied planning, transparency, register of interests, responsibilities of assessment, such as, mentoring succession planning, etc. BM and guiding the students, participating in Business Manager 22 April 2013 HRM in Business Schools Need to create integrated HRM equation
In India, there is no dearth of B-schools, however, the hard fact is that B-schools are ill- equipped with regard to physical, intellectual and social infrastructure and the quality of education is also not up to the mark.This article explores what B-schools can do to steer the course of higher education.
M. Gopalakrishna IAS (Retd.)
he majority of B-schools are ill-equipped with regard to physical, intellectual and social infrastructure and the quality of education is also not up to the mark. Only 15 to 20 per cent of the students passing out of B-schools are 'employable' with the necessary knowledge, soft-skills, attitude and aptitude for businessT management. The remaining students represent the avoidable wastage of potential human resources. The large number of Indian students going abroad for higher studies is ample proof of our inadequacies and the heavy drain of scarce foreign exchange. A large number of Faculty members come with sound academic background, however, they do not have the relevant professional grounding in teaching or research and very little exposure to the industry. Only if the faculty has some amount of practical experience can they bring the shop floor to the class floor and give the class the feel of real life situations and participatory decision-making. The faculty must be continually trained and updated about current and future trends of the industry and business in general. The faculty must also be encouraged to conduct training programmes, take up consultancy work and guide students as coaches and mentors. Funding for higher studies, industry recommendations and liberal scholarships for M.Phil, PhD, etc. must be provided. Therefore, we have to ensure that teaching is not treated as a profession rather as a mission for human development. Students usually seek admission to a B-school due to its track record for Placements and not the quality of education or, facilities such as library, scope for higher studies or availability of guides for doctoral studies. In B- schools, teaching is teacher-centric and not student-centric. The Guru's role is to guide the student and help him to learn in his own way.Students learn through reading and thinking and most importantly,by questioning, knowing, doing, understanding and being a self-motivated life-long learner. Soft skills training, personality development and attitudinal
Business Manager 23 April 2013 HRM in Business Schools
Research should be the 'brand' of the B-school. It is research; in-depth studies and faculty guidance that can help develop the student's imagination, creativity, innovation and entrepreneurship.
orientation is an essential component of HR make the Indian Business schools a byword for development. Monitoring and mentoring must Quality, Delivery and Service. The alumni of B- develop confidence, competence and commitment in schools the world over have played a key role in students. Management students should have multi- providing infrastructural facilities, such as libraries, disciplinary exposure with 'hands on' approach and professorial chairs and professional scholarships the ability to multi-skill. They should be motivated to through endowments. Most universities in the US are go for post-graduation or get involved in research and supported by the big industries in the vicinity, while join PhD and other post-doctoral courses. Research some are sponsored universities. Such support has to should be the 'brand' of the B-school. It is research; in- be encouraged. Business schools in the U.S. generally depth studies and faculty guidance that can help secure a third of their funds from endowments while develop the student's imagination, creativity, one third comes from scholar's fees and a third comes innovation and entrepreneurship. The faculty should from consultancy earnings of the faculty. We need to also help open the 'Inner eye' of the students for in tap these resources and develop real live-relationships order to develop sight, insight and foresight to enable between the business schools, industries and local them to both perceive and seize opportunities. communities. Mismatch between the needs of the The way forward is to transform and country and skills imparted can be reform management education by orienting reduced with a skill-demand analysis the curriculum to bring about a good and appropriate curriculum match between needs and skills. development. Emphasis should be Students should be made capable of more on practice and less on working under conditions of theory.The pedagogy is dated and uncertainty and disruptive changes. not in line with the current They should be encouraged to adopt requirements. Courses must be the positive attitude of 'I Can do'. focused on global skills, diversity Greater attention must be given to management, ethics and values, faculty development on a continuous inclusive growth, case studies, basis. Business schools must have a applications and solutions to sharp focus on research, problems. Application of consultancy and extension work. knowledge to solve problems Industry academic interaction must must be the forte of students. improve and secondment of faculty to Governance has to be improved by industry and industry managers to better involvement of the faculty, business schools must become a students, non-teaching staff and regular feature. The government must management in identifying ends and also provide funding on proper criteria to means of achieving goals. Industry- help business schools to raise their academic interaction has been standards. Appropriate rating, grading and suboptimal leading to a mismatch of needs affiliation mechanism must be in position. and skills. There is a need to involve industry The four major players that can transform associations, large industrial groups and particularly, human resources to excel, exceed expectations and local industry and entrepreneurs in the development expand their contribution to the country are the and upgrading of the curricula and short-term State, Market, Civil Society and Media. All the four assignments and projects for students, which meets players must co-operate in order to create an the business needs. environment for integrated human resource The affiliating universities have not been able to development. This will be possible, if 'proficiency' in effectively monitor academic standards and ensure functional and technical skills becomes 'efficiency' proper grading and upgrading of the B-schools. There through team effort and becomes successful through is a need to adopt latest technology which helps to 'effectiveness'. With such an environment, Indian enhance the scale, scope, speed, and skills of learning. business schools can grow to the level of world class Ethics and values must be made a compulsory subject business schools and so will the Indian human to build a culture of high standards, timely delivery, capital, which is the most sought after resource. Let low cost and service orientation. The objective is to us collaborate and make it a reality. BM
Business Manager 24 April 2013 HRM in Business Schools Differentiator is the HR practices
On one hand, full benefits of the prescribed compensation are passed on to the employees in premier institutions and reputed universities, but it does not happen in most of the other institutions, on the other hand. Here, premier institutions include good private institutions too.
Dr. Upinder Dhar Vice Chancellor, JK Lakshmipat University, Jaipur
n fact, the foundation of an educational institution is laid on the teacher-student interface. The teachers and enrolled students are the primary stakeholders in the case of an educational institution. There Iis a distinct line of differentiation between good and not-so-good institutions in terms of HR practices. Though the Regulating Authorities are required to ensure compliance to the norms prescribed for each group of institutions, the fact is that there are variations if implementation or execution is seen closely. For instance, the Regulating Authorities prescribe pay scales for the employees of educational institutions from time to time, but all institutions do not follow the same. On one hand, full benefits of the prescribed compensation are passed on to the employees in premier institutions and reputed universities, but it does not happen in most of the other institutions, on the other hand. Here, premier institutions include good private institutions too. All components of the prescribed compensation are not paid in many institutions, and even some components may be paid at reduced rates. In many institutions, there is discrimination between teaching and non- teaching employees in terms of compensation. The teachers may be paid most of the components of the prescribed compensation, but non-teaching staff may be paid only a few components of their package. Such discrimination in not-so-good institutions leads to low morale amongst the employees. Similarly,reputed institutions invest significantly in the development of employees - say faculty may be encouraged to write research papers and attend national and international conferences. Even many of them may be nominated to attend refresher and orientation programmes, and the programmes which can facilitate the development of people working in the institution. Good institutions give such opportunity not only to the
Business Manager 25 April 2013 HRM in Business Schools
teachers, but also to the non-teaching employees. At Assistants becoming Professors after attaining the the same time, there are institutions which do not necessary qualifications. Good institutions nominate their employees to conferences or facilitate and support the people with appropriate programmes of relevance. Even there are some which potential in such growth by translating the allow their employees, particularly the educational institution into a real learning teachers to attend the conferences, but organization. force them to pay for such programmes Career Planning and or conferences from their own Development is another HR pockets. The performance mechanism that can be seen in good Good institutions have the appraisal of teachers educational institutions. Young practice of documenting teachers advance in their career feedback about their employees, is done by various from lowest level to the highest particularly the teaching staff. stakeholders including level of hierarchy in the same The feedback is taken from the students - thus making institution if a congenial students and shared with the environment is created in the concerned teachers confidentially the job very institution. In fact, bright young to help those who are not rated challenging. teachers plan the line of action to very highly. Even six-monthly self- move forward with an agenda to appraisal forms are filled up by the excel with greater pace by achieving
employees to help them to make self-audit and in the the essentials for advancement with the support process improve their performance. In the case of provided by the name and fame of the institution. educational institutions, the performance appraisal Good institutions facilitate the career advancement of of teachers is done by various stakeholders including their employees and allow them to move on as students - thus making the job very challenging. Most ambassadors. of the not-so-good institutions do not have any The HR practices distinctly differentiate the good practice of recording feedback of the students about institutions from not-so-good institutions. The HR their teachers. They do not have even the system of practices are ethical in the case of good institutions, self-appraisals. whereas ethics is not the criterion in the case of not- Potential Appraisal is done in the case of good so-good institutions. Good institutions ensure institutions as there are numerous instances of transparency, whereas it is difficult to know the giving opportunity to grow when an employee is reality in the case of not-so-good institutions unless found to have potential for a particular type of someone discloses it. However, the paradox is work. For example, there are many examples of apparent when the number of good institutions is non-teaching staff members being appointed as found to be smaller in comparison to the not-so-good faculty provided that such candidates possess the institutions, inspite of the fact that former are requisite qualifications. There are instances of Lab acceptable to all. BM
Business Manager 26 April 2013 HRM in Business Schools HR challenges in the higher education...
IITs and IIMs have continued their long spell as top running B-schools over the years primarily because of their effective human resource management.This article explores the HR challenges in the higher education sector and offers tips to manage these challenges.
Prof. R. S. S. Mani V.P.Institutional Development with ITM group of Institutions
t would be most appropriate to say that the higher education sector is going through a turbulent phase. Perhaps the blessing is that I feel this is a churn for the better. In fact, I am tempted to compare this to the dotcom bubble, which burst after reaching an unprecedented peak and left behind few who could consolidate and add value. At the Icurrent time, we are going through a Renaissance in management education, in particular. It is heartening the see the stringent standards being set by the regulators WRT infrastructure, academic processes and assurance of customer satisfaction to the student. Many of the 'fly by night' B-schools are finding it tough to hang on in this competitive environment. This is because many of them focused more on infrastructure and resources and less on competent professionals to manage the institutions. This has led to many institutions seeking closure and applying for permission to the AICTE for the same. Further, many institutions are focusing on their core competencies and are withdrawing a bouquet of programmes initially offered by them in a flurry to survive. Whilst the IIT'S & IIM'S occupy the coveted position of eminence over the years, it is most appropriate here to emphasize that many newer B- schools have become names to reckon with. I strongly believe that it is their effective management of Human Resources that has helped them reach this The faculty has to realize that coveted position. In fact, if the greatest challenge of talent engagement is learning is a never ending tackled, B-schools can be better off and pose a stiff competition to the process. One may stop in the better established giants. Let us look at some of the HR challenges faced by pursuit of formal education, the B-schools and some of the solutions thereof: however, the process of learning Talent acquisition problems: has to go on forever . Attracting the right talent, i.e., the faculty continues to be the greatest challenge. In earlier days, many faculties of B-schools were either pure academicians or senior managers who saw a career in teaching as a Business Manager 27 April 2013 HRM in Business Schools
The greatest HR challenge faced by most B-schools today is the ability to convert a young clueless starry eyed graduate into a post graduate executive ready to deliver for the company that hires him.
comfortable activity post retirement or seminars in India and abroad too as perks .Matching superannuation. However, teaching as a full time the faculty's career aspirations to available growth career has its own rigors. There is the perennial opportunities is a pro-active step in the right conflict of emphasis on theory versus practical direction. knowledge. Besides, the challenges of maintaining the academic rigor via regular classes, tutorials, Talent enhancement problems: quizzes, case studies and continuous evaluation Very often, peer pressure and monotony leads to makes the role of faculty more challenging. Many the rusting of talent, i.e., the faculty tend to bask in faculties migrating from the industry do confess that their past glories and fail to enjoy their jobs over a they often need to unlearn and relearn in order to do period of time. This leads to poor delivery in the a meaningful job in their new roles. Further, many classroom, inadequate knowledge about current faculties from pure academic background are trends, use of outdated teaching, training tools and constrained by their limited knowledge of the techniques. An obvious consequence of this is poor practical side of concepts they often teach. performance, which unfortunately is reflected in fair Talent acquisition solutions: and square in the student feedback forms. This leads to demotivation and gradually leads to the An ongoing consistent industry academia deterioration of performance. interface is the solution. While the term seems cliché, the problem lies in the fact that the implementation Talent enhancement solutions: has been half hearted on both sides .We must initiate The faculty has to realize that learning is a never a regular process of industry managers must take ending process. One may stop in the pursuit of formal sabbatical stints at B-schools, similarly, B-school education, however, the process of learning has to go faculties should take sabbaticals to go to the on forever .We must encourage the faculty to attend corporate world for practical knowledge. Joint as many refresher courses to enhance their domain research papers, organizing collaborative seminars knowledge area. Further, they could be encouraged to are simple yet effective ways to build the bridges hone their skills in areas like listening skills, effectively. We need to remember that the B-school presentation skills, classroom management, stress teacher is no more a 'Sage on the stage', but is a management, etc. We must realize and accept that the facilitator to the learning process! average management student is better equipped Talent retention problems: today with the power of Google and is also well networked through the power of Facebook. Hence, It is expected that talent working anywhere will the faculty has to be always on their toes and ensure have their own aspirations about salaries & perks, that they are intellectually updated. In this wired and seek growth opportunities for themselves. world, the learning boundaries have expanded Although the VIth Pay Commission has made the beyond expectation and hence the whole universe of salary scales of academicians much better than ever, information is available at the touch of a mouse. This the perks obviously are not the same as in the makes the job of the faculty most challenging and corporate sector .Although faculties in the B-schools enriching as learning now has become a two- way do get vacations and research grants, they obviously process and not delimited by the boundaries of miss out on bonuses , product / service discounts and region, state or country. likes. Besides, every faculty is expected to carry the To conclude, the greatest HR challenge faced by burden of some administrative responsibilities, most B-schools today is the ability to convert a young which are often very onerous and monotonous. This clueless starry eyed graduate into a post graduate results in internal competition and peer pressure executive ready to deliver for the company that hires which often leads the faculty to look for greener him. This obviously is a tall order but can be achieved pastures elsewhere. through a series of planned interventions. It is here Talent retention solutions: that B-schools need to rise to the occasion and integrate personality development, soft skills, Many B-schools encourage the faculty to offer business communication and presentations skills, value added services to the industry via management career management and teamwork skills on a development programmes and consultancy services concurrent basis into the MBA curriculum. If these .This could add to the income generation for the are embedded into the fabric of the MBA curriculum institution and the faculty working on these projects. as an ongoing activity throughout their study period, This also helps build linkages with the industry, the probability of having corporate ready executives which could help the institution and the campus passing out from campuses is much higher. The acid recruitment activities to a great extent. Many test here lies in the fact that students look up to the institutions have introduced the concept of variable faculty as Role Models. Hence, their success depends pay, where sky is the limit, based on your ability to upon the faculty to inspire them consistently by actually show quantifiable results beyond the visible demonstration of their competence, optimum expected performance. Besides, many B- performance at work and unstinted commitment....A schools offer unlimited learning opportunities via huge HR challenge by any standards! BM Business Manager 28 April 2013 HRM in Business Schools HRM interventions should aim at innovation
This managerial walkabout when successfully completed, should mark the student's passage from a student of management to a manager or an entrepreneur.
Dr. P.N. Singh C.E.O., Grid Consultants Pvt. Ltd., Mumbai
t was a tough decision for me to leave my wife and three small children in a public sector company's colony to proceed to do my MBA at the Asian Institute of Management in Manila,Philippines.But,the sacrifice was worth it.One course there transformed my life. This innovative course was Walkabout. It Iwould be better to discuss this in greater detail. Professor Maurice Gibbons of Simon Fraser University,Burnaby British Columbia wrote a very interesting article, "Walkabout: searching for the right passage from childhood and school." The main idea of the article came from an Australian film "Walkabout." In the film two children escape into a desert, when their father driven mad by failure in business, attempts to kill them. Within hours,they are exhausted, alone and helpess. Dressed in private school uniform, unable to find food or protection from the blazing heat and with no hope of finding their way back,they seem certain to die. At the last movement,they are found and cared for by a young aborigine, a native Australian boy on his walkabout, a six-month long endurance test during which he must survive alone in the wilderness and return to his tribe an adult or die in the attempt. In contrast to the city children he moves through the forbidden wilderness as if it was part of his village. He survives not only with his skill, but with grace and pride as well. He not only endures, he merges with the land and he enjoys. When they arrive at the edge of civilization, the aborigine offers in a ritual dance to share his life with the white girl and boy he has befriended but they finally leave him and return home. The closing scenes show them dreaming of their adventure and their fragment of a walkabout. The story of this film is a running commentary on our educational system. Are our youth trained to face life as the aborigine was supposed to face in the six-month period of walkabout? Does the two-year training in the management give a young man enough strength in himself to face Business Manager 29 April 2013 HRM in Business Schools
the world on his own or does this training give him paper or magazine as my walkabout project.'' He only a few skills and some knowledge of the different reluctantly agreed. These two articles got me Pesos disciplines which he is not sure where to apply? This 1000, a princely sum in these days. The professor institute in S.E. Asia feels that business education is passed me in walkabout. not complete unless a period of walkabout is But, it changed my Life. I never stopped writing. introduced in the course. This managerial walkabout Immediately on my return to India I wrote an article when successfully completed, should mark the is the ISTD Journal, which won me Tarneja Award student's passage from a student of management to a for the best article is the journal during the year. A manager or an entrepreneur. The managerial few years later 3 more awards came to me for my walkabout must present the student with five basic articles including one where I got the opportunity of challenges. They are Adventure, Creativity, Service, being photographed with Smt. Indira Gandhi , the Practical Skills and Logical Enquiry. then PM and GianiZail Singh , the then President of The student of management chooses a subject on India. But,what was more important than these small his own for the managerial walkabout. There is very awards was I built a business out of my walkabout. little help from the faculty in choosing the subject With over 600 articles and 22 books I made a small selected by students. Once the subject of the fortune. This is the power of an innovative course. managerial walkabout is chosen by the student, he is HRM interventions in management institutes left on his own to successfully complete his walkabout. should aim at innovation in designing courses, in His performance is judged only on the basis of the delivering them, in evaluating them etc. Inculcating final results obtained. Unless the student passes the innovation in all areas should be an important test of walkabout, he does not graduate this institute. component of any HRM strategy. And that will A Malaysian classmate exported some cigar from require forums for regular interaction to generate Philippines to his home country and made some innovative ideas. I will end with what late money. The professor passed him in walkabout. A GastyOrtiganourthe then dean told me once, " I was Filipino classmate organized a dance show and made learning computer these days. It was new my faculty a profit from the show. He also passed. What should I members wanting to see me would come, and return do? In early 1970s you could neither import anything seeing me at the computer. I threw out the computer. into India nor export anything from here easily. I did My dialogue with my faculty members was much not know what to do. I had one skill: writing. I told my more important than learning computer." Professor,"Please allow me to write two articles on Let us intensely interact to innovate. BM management and get them published in a Philippine's
Business Manager 30 April 2013 Dr. Ashu Singh Assistant Professor (OB & HR) Asia-Pacific Institute of Management
For any organization to succeed, it is critical that the workplace exudes positivity. When negativity seeps in to any work atmosphere, it is HR who has to ensure that it is cleansed out of the organization with support from the management. Workplace negativity
hatia Informatics Ltd was a company, he shuffled the managerial levels name to reckon with in the IT and appointed few new talents as he could business for the last 10 years. In sense the looming competitive forces and spite of the growing competition the customer's fear resulting from the death from the new set-ups, it was of Bhatia senior. Bdoing fairly well and had won the Six months later, Ravi called a meeting customers' loyalty. It was placed among the with the HR department and enquired into top IT companies in western UP. the turnover rate of his employees. He had Shashi Bhatia started this company with been getting reports of frequent a lot of positivism and had always led his absenteeism, low productivity and poor job employees in the right direction. He was the satisfaction among the employees. man behind the success of Bhatia He was alarmed to know the facts, which Informatics Ltd. revealed that the turnover rate was very Ravi Bhatia took over as the CMD of the high. He was highly perturbed by the way company after his father's sad demise in his people were quitting. His organization early 2012. He was a computer engineer, had excellent HR policies and spent having graduated from the most reputed exorbitantly on recruitment and training, college of western UP, and was a but all efforts seemed to have gone in vain. meritorious student too. Before joining the The organization offers the best salary family business, he served at different IT packages and the performance appraisals companies in Delhi and was highly were also the best in the industry, with proclaimed for his knowledge and great work conditions. experience. Ravi appointed Neha Singh as the Head He joined the family business with great of HR to overcome the turnover issues. She zeal and determination to take his father's was an experienced HR manager and was legacy forward. Ravi was aggressive by well-known for her practical approach in nature and cautious of the employees' handling staffing issues. She was very performance. Soon after he joined the critical of Ravi's aggression. She strongly
Business Manager 31 April 2013 Workplace negativity
A study determined that the reasons for employee negativity includes - Excessive workload Concerns about management's ability to lead the company forward successfully Anxiety about the future, income and retirement security Lack of challenge in their work, with boredom intensifying existing frustration about workload Insufficient recognition for the level of contribution and effort provided, and concerns that pay isn't commensurate with performance
believed that manpower cannot be retained only unethical behavior and this encouraged him even through good HR policies. Employees are motivated more. Most of his time in office was wasted in by the positivity of the organization and negativity discussing unproductive issues. People wondered may override the motivation level, and performance why he was still continuing at Bhatia Informatics Ltd may fall apart. If nothing is done to restore positivity, if he was so dissatisfied. He was under the it threatens the survival of the employee first and impression that he was the only employee who then the organization. performed. He constantly complained about other's Ravi was curious to know what workplace failing performance and tried to give negative reports negativity meant and why it was happening in his to his seniors. He never sat back to think and evaluate company.Neha explained that negativity at work can his own performance. He only spread negativity all be harmful. Negativity often results in a loss of over. productivity and a high turnover rate. Negativity is Anu Khanna, an employee in the HR department, contagious. The expression 'misery loves company' was extremely competitive by nature and could not rings true when it comes to spreading negativity work in a team. If any assignment was given to her as around the office. Those who have negative feelings a team, she would bully other team members and take will first seek out others who feel the same way, and away the credit, not to mention that the discredit was then try to influence those who don't. never hers. She only believed in individualistic Some people exude negativity. Either they don't approach and according to her, teams were useless like their jobs or dislike their company. They often creations. consider their bosses to be good for nothing, and are Asha Makheja was a new recruit. She was under the impression that they are treated unfairly. engulfed by insecurity. Everyone tried to make her S. Chatterjee was a senior level manager. He had comfortable and clear her doubts. But she was not been in the company for the past two years. He lacked ready to understand the work culture or the past leadership qualities and could never delegate work history of the organization. She tried to prove her properly. He was always in a fire-fighting mode and worth by creating nuisances. the environment around him was always tensed. Alok was a grade IV category of employee. Chetan Pandey played an important role in the Whenever he got an opportunity, he would criticize company.He was Vice President- HR. He was a man of the company for not giving him enough, though he dubious character. When anyone approached him never pondered over what he gave the company in with a problem, he would put it back on the employee return. and never offered a solution. His projection about There was so much negativity at Bhatia himself was improper and the dynamism needed to Informatics Ltd which was flowing from the top-most justify his important position was missing. level to the lowest level. From the exterior, it was like Raman Sen was the only employee in Bhatia placid water but from inside it was a turbulent Informatics Ltd who had been there for the last 10 cyclone. This turbulence was affecting the work years. He was a mid-level manager. He was always culture and setting dissatisfaction among employees. discontent with other managers, employees, HR Understanding negativity policies, and the new recruits. He felt that the company had no future and it will soon collapse. He at the workplace was always raising issues with other employees and Negativity is an increasing problem in the was ready to pick up a fight. The constant fretting and workplace, according to Gary S. Topchik, the author cribbing at work had become a part of his daily life. of Managing Workplace Negativity. He states, in a No one could take any action against him due to his Management Review article, that negativity is often
Business Manager 32 April 2013 Workplace negativity the result of loss of confidence, control, or aversion to learn about the new work culture could be community. Recognizing negative people is the first attributed to people like Sen, however, her step in solving the problem. insecurities and nuisances were ruining the work A study determined that the reasons for employee environment. Alok never wanted to stay long at negativity includes - Bhatia Informatics Ltd but his constant criticism was Excessive workload contagious. Concerns about management's ability to lead the Singh identified that negativity was arising from company forward successfully all over. She was perplexed by the state of affairs and Anxiety about the future, income and retirement needed to find a solution immediately. security She observed that there was a boy named Sunil Lack of challenge in their work, with boredom who had been working as the pantry boy for the last six years. Though he was a grade IV employee, he was intensifying existing frustration about workload very dutiful and optimistic. He spread positivity all Insufficient recognition for the level of over. That reflected from his behavior, deeds and contribution and effort provided, and concerns communication style. He had a sense of ownership, that pay isn't commensurate with performance which was missing in others. A typical workplace has its ups and downs in If an employee at the lowest level could be terms of employee negativity. Many workplaces are positive, then why not at other levels? Singh wanted trying to be employee oriented. However, even the to develop the same attitude in others as well. She most employee-oriented workplace can shudder knew that a change in behavior could bring a massive under the weight of negative thinking. When improvement and reduce negativity. Thinking very employers understand the causes of employee hard, she came up with few observations and ideas to negativity and puts in place measures to prevent change the negative attitude in employees. employee negativity,negativity fails to gain a foothold It is useless to raise an argument with a negative in the work environment. person as they are most of the time convinced that Impact of workplace other's ideas and approaches never work. negativity They can never accept solutions given to them by others as according to them no right answer exists. Workplace negativity affects employee morale more insidiously than anything else. It drains out all the They have to be accepted as they are, however, energy from the organization and diverts critical effective communication strategies may bring a attention from work and performance. Negativity small change in their approach. occurs in the attitude, outlook, and talk and behavior When they raise objections over any proposed of people. The cause of workplace negativity could be approach or idea, ask them to give specific reasons any- the organization's decisions may adversely affect for their objections. staff, people may be threatened or ignored for asking legitimate questions, staff members may feel insecure, Empower the employees in every opportunity. underground rumors may be circulating about an Before raising problems and issues in a meeting, impending layoff. People may feel that they give the bring it to the notice of the negative people and organization more than they receive in return. Poor or ask them to give their opinions and suggestions in no recognition for the good work and mistreatment or writing. denial of a deserved promotion may trigger Make the work environment light and add fun to unwarranted negativity in an employee's mind. work. Intensifying any of these factors causes many to be like a dormant volcano which may erupt any time. Listen to the negative employee to make them feel like they have really been listened. Diagnosing workplace negativity If the coworker's negativity is not legitimate, show Identifying workplace negativity at the earliest is concern about them and their happiness at work. critical, and the HR manager has a vital role to play in Engage the employees in their work and give them this. Since he is in close contact with employees, he opportunities to attach them emotionally with the can sense workplace negativity faster than anyone organization through learning and initiatives, else. Talking with employees can help in understanding the exact problems, and the degree to some by practicing innovative HR initiatives and which these problems are impacting the work some others by passion. environment. It is important to identify the exact To conclude employee groups who are experiencing the negativity, and the nature of the issues that has sparked their The ideas can be implemented successfully only unhappiness. The problem of negativity at Bhatia with support from employees at all levels in the Informatics Ltd generated due to weak leadership at organization. The communication flows have to the senior levels. Chatterjee and Pandey are not transparent to avoid misinterpretations of competent. They are unable to handle employee information by negative employees. Also, soft skill grievances and communication issues in the training can help to develop the personality of the company. People like Sen are not pillars of strength employees and to encourage them to work in teams. for the company rather they are weakening its Use of emotional intelligence and negotiation skills foundation. Teamwork is the need of the hour. for conflict management can also be a remedy. The However, Khanna was still living in the past and for role of HR again remains vital in the turnaround of her teams were neck deep in insecurity. Makheja's the organization from negativity to positivity. BM
Business Manager 33 April 2013 S.Chandrasekar Chennai
Just sitting on the right track doesn't mean that you are safe.You may be run over if you are not moving with pace. So plan your career for a right reason. Career change and transferable skills
any of you would job. Some of them would be actually have stayed for long doing certain roles that are not in a job till you mentioned in print. The roles and moved out for responsibilities always have betterment in the limitation and may add on sameM or different domain. I have unspecified tasks entrusted there seen many HR personnel who have upon. So it becomes a tough task to ventured into entrepreneurship, highlight the essential skills marketing, portfolio management, expected for a particular job title. outsourcing etc. It could have been The official JD speaks little an aspired job or business that relevance while the incumbent remained unfulfilled since young. would have had exposure outside Hitherto, one would have been in job the fringes. for necessity and compulsion opted Self-assessment is the need of the by the degree earned and hour for a suitable job. These skills opportunity that knocked. Through could well be called as transferable these years you would have gathered skills. I saw a resume that gave the momentum, experience and also title in HR and besides the HR role other skills that you can put to use was delegated with tasks pertaining in different domains other than HR. to finance and customer care. Transferable skills, as they are Though it is very absurd, it is a fact called, are thought to be essential that an MBA guy is expected to do ingredients for those re-entering all these and not stick to functional into career after a break, changing specialization. Did you not study the field, facing layoff and looking CSM, finance and marketing in for the first job. MBA? A good question perhaps but When do you generally change the job seeker is stumped. When it your job? If your career is at a comes to leadership, what is the use standstill and deriving no job of him to run a company without satisfaction or the job market in knowing anything about the other your field has taken a nosedive, or areas of management? surprisingly a long stay with a Some employers may overlook at company. There can be many more the transferable skills as irrelevant reasons only known to you. and treat you as an experienced guy JD framed for every title may with no relevant experience. In formally speak something about the short you don't have the specific
Business Manager 34 April 2013 Career change and transferable skills
skills applicable to that title. At this point, resume writing would not be of help as the profile literature is functionally good than real time experience. If so, how to sell your transferable skills to a prospective employer? What to hide and what not in resume? Executives preferring a change should demonstrate their capabilities when leaping from one sector to another. As a recruiter we look out for the top five transferable qualities namely: i) Leadership ii) Proven track record in previous assignments Here are some Transferable Skills that you may iii) Multi-functional experience take inventory: iv) Knowledge about the new industry Planning, Delegate, Motivate, Attend to visual v) Team building culture detail, Assess and evaluate my own work, Assess and evaluate others' work, Crisis management, Multi- Of late, many employers have started recruiting task, Presentation, written & oral, Managing time, new hands from outside the industry for fresh leadership and different thinking. It is likely that all Equipment upkeep, Record maintenance, Grievance leadership skills will not find use in every assignment handling, Coordinating in other activities, Training unless a need arises. At least 40% of the profiles and mentoring, Research and audit, Managing demonstrate transferable skills that are deemed finances, Linguistic proficiency,Using sign language, unnecessary for the specialized domain. What to do Knowledge of computer software, Manage ethical and whom to blame? It was entrusted by the issues. management on you in the previous stint. Knowing too many and knowing very little are dangerous at Is transition a must? this juncture. Is a job change imminent? Think twice before you A general perception is that to be successful in act. It could be for a hike and title, for the sake of your transition be sure to have a business coach who nagging spouse, to escape the torture of boss, or to can support you in this career change. With the right show your friends that your status has changed. support, your transition will be successful. A resume There are good reasons as well for not making the shows some years of consistent experience in a field transition. Making a career change can be a great and a sudden change after a decade for no fault of his. task and can turn your life upside down or take you to It would have been attributed to change management a dead-end. Thinking you are moving in the right during recession, or volunteering for betterment or to direction forward, you should not step on landmine. come out of the field that appeared saturated for him. So think twice before taking a transition as things Anyways, the skills that come along are the may not go in life as expected. transferable skills besides generic and functional. Transition process could be contagiously good or As per a recent American survey, the top five bad. When those around you quit, you are also functional areas that show the greatest ability for tempted due to demotivation and for the fear that you transition into a new Industry are: are left to fight alone. If the career change is for a Human Resources, Finance, MIS/Information right move, you have to approach the new job with Technology,Business Development and Sales. enthusiasm and savvy. Just sitting on the right track doesn't mean that you are safe. You may be run over if The interview question 'Did you not study CSM, you are not moving with pace. So plan your career for finance and marketing in MBA?' now appears a right reason with decent expectation. Enroll for a reasonable. An MBA graduate is expected to be strong special course that your position may demand, be in all the above streams at least at the operation level. latest and stay ahead. This will ensure the career All management domains do have a link and inter- change to be easier and smoother. Have some reserve dependency. Without satisfying the condition there fund when you tend to make a transit because if the cannot be a transition from one functional area to next job does not prove to be your cup of tea, it will another and perfect transformation from functional take some days to land a better one. Making a to management level. The following diagram is self- transition is wise but sustaining a transition is not explanatory. easy. BM Business Manager 35 April 2013 P.B.S. Kumar Manager-HR Employee development- meritocracy
ne of the core ideas on employee to fostering a workforce full of skilled and development is meritocracy. talented people. This form of employee Elaborating on this employees are development also benefits the company as a given ownership driven whole -- better educated employees increase opportunities. Such a policy allows your firm's chances for success in a Ofor talented, motivated individuals to progress competitive marketplace. Adding tuition in their career quite fast without being bogged reimbursement to your benefits package also down by criteria like credentials, education of makes your company a much more desirable even how many hours spend in the office. Some place to work, and can help you attract top of these policies include: talent. A solid employee-development program can Hire and promote from within. mean the difference between a successful Employees appreciate job security,but in order company and one that struggles. Indeed, the to grow professionally, people want and need company's chances for growth are closely new responsibilities. Giving your employees aligned with its commitment toward fostering opportunities to grow within the company lets employee development. More and more them know that you value their past workers are looking for employers who can contributions and have faith in their abilities help them increase their knowledge and skills. to take on greater challenges. Let people know It's no longer enough to offer a conventional when new positions are available in the benefits package. Companies that want to company before opening up those jobs to attract -- and retain -- valuable people on staff outside applicants, and be sure to give first need to actively participate in their employees' consideration to in-house candidates. growth and development. It's rewarding for Reward star performers. Don't make the employees to expand their knowledge base and mistake of neglecting employees who do great take on new challenges, as it makes coming to work and don't need much managing. Some work about more than just a paycheck. managers make the mistake of believing that Here are some concrete ways to encourage star performers don't need occasional pats on and maintain a work environment that fosters the back, but disregarding their hard work can learning and a desire to constantly improve: be demoralizing. Call them out for their efforts or else they may come to think no one notices, Implement a mentoring program. and their performance may suffer as a result. One of the core Pairing newer, less experienced employees with more experienced employees is a great Foster creative learning processes. ideas on employee way for people to learn from one another. Often, employees want to make suggestions development is Mentors can serve as a sounding board for about the way things are done but don't have a meritocracy. younger employees, and can provide job way to voice their ideas. Develop a method that coaching, advice on career development, and makes it easier for staffers to share their introduction to other professionals in the creative ideas or suggestions with top industry. Mentors often help their charges to management. see the "bigger picture" when it comes to their Free Decision making process. The working life. And, at the same time, mentors company has a flat hierarchy where anyone can themselves can gain valuable insight from approach anyone through the open door policy. their protégés and become better managers. Employees are encouraged to ask questions Launch employee-training programs. and the emphasis is on the company and Investing in your employees' continuing employees being one instead of two separate education demonstrates that the company entities. When asked on the key strengths. values its people and wants them to grow.Even Encouraging employee to nurture and develop after an individual joins an organization and leadership qualities and the continuous the "honeymoon" period has passed, appreciation of employees are some of them companies should continue to provide training and such employees are given the freedom to on an ongoing basis for any skills that may be take decisions at their ownership to the pertinent to the employee's job. company. This helps them become an integral part of the decision making process. As such Reimburse tuition costs. Helping understand that employees are not employees finance their education is a tangible micromanaged and are expected to understand way to demonstrate a company's commitment and fulfill their responsibilities. BM Business Manager 36 April 2013 Anagat Ashish Manager-HR
Organizations can design simple and effective OD interventions to address the underlying issues. Bridging generation gap
his is a hypothetical Case Study which takes into consideration the two sets of employees in an Organization viz. Gen X and the Gen Y Employees by highlighting their issues at workplace. Their issues can Tbe addressed by implementing simple yet effective OD interventions. Organization Development as we understand is an organization transformation approach driven from top by applying principles of behavioural sciences to improve individual and organizational effectiveness. The OD approach relies on the following main steps: Proper Diagnosis of the Problem Selection of the OD methods Implementation of the Interventions Evaluation The case study highlights the problem in most of the Indian Organization owing to their two main sets of population i.e Gen X and Gen Y Employees. This often results into following focus areas for the organizations to work on : Employee Engagement Recognition and respect for people Care and Development Overall Satisfaction It often appears that Gen X employees are disconnected /disengaged with longer stay leading to feeling on alienation, disbelief about self esteem, uncared & so on. Their conscious or unconscious depletion of such feelings occasionally become demotion for subordinates. Notwithstanding with such behavior, Gen X people have great know how repository,acquired mastery on their jobs and some have become reference in their areas. The other side we have been inducting Gen Y in our organizations who are qualified professionals with strong desire to learn & grow in their competitive scenario. Occasionally they disagree with Gen X. Problems/Issues Apparently certain adjustment/work related issues between Gen X and Gen Y can be cropped as like :
Business Manager 37 April 2013 Bridging generation gap
Gen Y Gen X b. Inspiration for long stay Professionally Qualified Experienced & Knowledgeable c. Motivators at workplace Desire to learn/grow/ Credible legacy of achievements d. Advise for young engineers/new joinees compete/excel /challenge e. Career growth & future of business status quo Kal, Aaj aur Kal can provide effective platform for Lack of understanding Desire for recognition respect older employees to recognize their achievements for -Experience the for age/ experience through internal circulation in magazine, emails & biggest teacher display on notice board. Growing alienation This simple but very effective process can help us to - The above issues gets reflected in a. Understand & valuing employee contribution Superior subordinate relations b. Enhancing motivation & communication level Mutual recognition & respect Construction feedback 2. Shabash Card/Well Done Card - Options: Recognition Mechanism This is a time for instant recognition and After detailed analysis of this we can appreciate communicate "Shabash/ Well Done Card" to that there is an immediate need to effectively engage employees much more to youngsters so as to both Gen X and Gen Y by instill desire to further excel. This is simple Dissemination/Sharing of rich way to appreciate and recognize individuals experience/achievements of Gen X for recognition who have stretched/exceeded job/task expectation. & passing to Gen Y The policy of "Shabash/ Well Done Card" to Encourage Gen X to experiment with new ideas all managers for instant recognition can create and change initiatives for newer heights of healthy competitive spirit for exceeding expectation excellence in the organization by announcing on company's Recognize both Gen X and Gen Y for their credible intranet. achievements thereby bridging generation gap. 3. Experience Sharing Sessions The following interventions can be designed for above options: The Gen X who have rich repository of knowledge can be identified and can be provided with a 1. Kal,Aaj aur Kal (Yesterday,Today & platform for dissemination of their rich experience to Tomorrow) - Appreciative Inquiry the Gen Y Employees. This will give them an opportunity to communicate their experiences, The Gen X people with credible achievement can challenges and credible achievements to the Gen Y be identified to capture their stories who have spent employees and instill a feeling of recognition and considerable years in the organization. This can be pride in them. done by Change Agent Team (CAT) comprising of Conclusion: Organizations can design simple and younger engineers, managers & HR representative. effective OD interventions to address the underlying The discussions can be centered around: issues. The real challenge would be in the proper a. Motivation for joining the company & diagnosis of the problem before selecting the OD continuation for such long period Intervention. BM
Business Manager 38 April 2013 Business Manager 39 April 2013 Anil Kaushik Management Expert -HR & IR
Solutions provided here are in context to narrated facts & not in general.
Q.In our company, one workman, who was terminated long have passed , Management is not interested in paying 75% back has been reinstated by the labour court. During this as the delay in completion of inquiry is directly caused by period, promoters of the company closed down the business workmen. Is it legally correct? operations and sold the land and building to a charitable Ans. This is a mischief which is legally permissible and trust. Since there is no workplace left, the workman was not workers have got benefit of that by getting a stay.. Legally reinstated. I want to know that what would be the fate of speaking , your sand of even not paying the 75% the this matter now. As the workman has now complained to the suspension allowance ( maintaining at same rate after 90 labour commissioner requesting for grant of prosecution days) will not be legally correct. Grant of stay against against promoters of the company, what other options he continuance of inquiry by the court can not be said to a has got to seek relief and how far promoters stand on a be reason in delaying inquiry directly attributable to the legally safe footing? workmen. Workers are entitled to suspension allowance Ans. The facts as you have put forth, I am of the view at the rate of 75% after 90 days as per sec.10A of that there is a clear cut case against the promoters of the Industrial Employment Standing Orders Act.S.C. in the company for breach of award by not reinstating him. case of B.D.Shetty vs. Ceat India ltd.2002 LLR 2 has also Sec. 29 of I.D.Act is attracted. Authority can grant held that a plain reading of Se. 10 A (1) (b) excludes the sanction of prosecution against promoters for non delay in completion of disciplinary proceedings caused compliance of the award. It is not clear that whether on account of order granted by competent court from the your promoters have challenged the labour court award mischief of the said provision. It is only the delay that is in high court or not. You have one option to challenge not directly attributable to the workmen is covered by the award in the high court. Second option is to put your the said provision. If a workman, in order to protect facts before the Labour Commissioner and contest the himself from the prejudice that may be caused by application. simultaneous proceedings approaches a competent S.C. In the case of Management of M/s. Mysore judicial authority and that authority , on being satisfied, Structurals Ltd. & ors.. 2002 LLR 1 case has also held taking in to consideration the facts and circumstances of that when the authority has granted the sanction for the case, stays further proceedings in a domestic prosecution of the management for not implementing enquiry pending criminal trial, delay caused on that the award of reinstatement after considering all factors, account in completion of that enquiry cannot be directly the defence of closure of factory and inability to attributable to the conduct of such workmen because implement the award will not be correct. Workman has granting of further proceedings in a domestic enquiry one more option to initiate proceedings against the does not depend on the pleasure of the workmen. So, You management under sec. 33 C of the ID Act for recovery of are legally responsible to pay 75% of suspension money arising out of the award of reinstatement. Guj. allowance after 90 days of suspension. HC in the case of Executive Engineer vs.Govt. Labour Q. We have our admn. office in the factory. Employees Officer (1998) 2 Cur LR 540 Guj. has also held that non working time in the office is from 9.30 to 5.30 PM including compliance with, or breach of an award is a continuing one hour rest interval. Management wants to increase the wrong hence does not attract bar of limitation too. working time by one more hour and for that we propose to Q. We have a factory in Pune. Two workers fought and give notice under Sec. 9A of I.D.Act. will it be sufficient injured each other. It happened during duty time and we compliance and are we correct in enhancing the work came to know that the fight was due to inter union rivalry. hours.? Both lodged FIRs against each other in police causing Ans. It appears that you have confusion in mind about injury. Management also issued charge sheet to both and Admn. office and factory. Since your admn. office is suspended. We also initiated the domestic inquiry in both situated in the factory premises, it is part of the factory the cases. Since criminal trial is also pending against them, and all provisions of Factories Act are applicable on this workers moved to industrial court against continuance of office also. As far as working hours are concerned, they enquiry and got the stay. Three months have passed. We will also be governed by the provisions of factories act. were paying 50% suspension allowance. Since three months You can not circumvent any law by taking shelter of any
Business Manager 40 April 2013 other provision. Notice under Sec. 9A does not gives you place of work on the ground of serious medical issues, a blanket right to increase working hours in you should constitute a medical board and ask him to contravention of Factories Act. Notice under Sec. 9-A is present himself before the board to assess the illness. If not like a other normal notice. That is an intimation that the Board is of the opinion that employee has certain the changes proposed in the notice will be enforced on continued medical ill health restraining him from completion of 21 days. There is nothing to counter it discharging his duties, then you should terminate his except to raise a dispute.. Therefore, the notice under services on this ground and in such situation there is no Sec.9A is an order to take effect on completion of 21 days. need to pay retrenchment compensation. If the medical Kerala HC in the case of Kerala Electricals and A.E. Board opines differently, then you can charge sheet him Company Ltd. Case 2012 LLR 68,has also held that by for not obeying the transfer order and unauthorized reason of introducing a change, management cannot absence. Initiate proper disciplinary proceedings against enhance working hours by reason of a contract of him and act accordingly. Madras HC in the case of service between management and the employees that Management, Eagle Flasks Industries Ltd. 2002 LLR 732 employees are liable to work only for 8 hours and not has held that The termination of the employee by more than that. management merely relying on the letter of employee Q.In our hotel, one foreign guest complained of theft of her that he was not medically fit, can not be sustained . Court foreign currency during stay in a room. On investigation, also said that management should have referred the one housekeeping employee was found involved in the matter employee to properly constituted medical board and he and he also accepted stealing the dollars but returned also. should have provided proper opportunity to explain his Management issued the charge sheet and want to conduct position. the inquiry to give message to all that such misconducts are Q. we have many trainees in the organization and they are not tolerable. Can we terminate the services of this employee paid stipend. They are engaged for two years period as even when he has admitted the misconduct and returned the provided in the certified standing orders. Few trainees are amount? now completing their training period,. Management wants Ans. Yes! You can do that. In Hotel business, trust and to terminate their services. Our advisor has cautioned us respect of guest is supreme. Misconduct of theft by against such action being trainees completed more than 240 employee, that too from the guest's room should be taken days and he is of the opinion that it might attract very seriously. Returning the dollar stolen from guest retrenchment. What is your expert opinion on the point? room does not mitigate the gravity of the charges. I Ans. It would have been good if you had clarified few suggest that you should issue charge sheet, give him fair other points like whether such trainees are engaged opportunity to defend, and conduct the inquiry. Put the under any training scheme and issued appointment documentary evidence of admission and fact of letters. However, presuming that you have engaged such returning the dollar by employee and complaint of trainees after executing proper agreement, you can very foreigner guest on inquiry record and if charges are well terminate the training of such persons who are proved, dismiss such employee. Delhi HC in the case of engaged for a fixed training period. Such termination Ram kumar vs. ITDC hotel 2012 LLR 527., while will not be deemed as retrenchment. Moreover, such justifying the dismissal of the employee for the trainees engaged under certified standing orders are not misconduct of stealing the guest's money from her considered as workmen under ID Act when paid stipend room,has also held that it is of critical importance and not wages.(Otis Elevator Company case 2003 LLR 701 especially in hospitality industry that the guests who Delhi HC). It makes no difference if they have completed frequently stay at hotels, have apart from comfort, a 240 days of working in training period. Madras HC in the sense of reassurance that their personal effects and case of Management of TI diamond chain ltd, Madras money while staying in the hotel, is safe and secure. The case 2002 LLR 1059 has also held that termination of the question is not merely of the amount that was stolen and apprenticeship is not punitive in nature. In as much as refunding the same to hotel. the person was only trainee and he was only a learner as Q.We have transferred an employee from our one office to per standing orders, and their inclusion in the category other. He did not obey the transfer order on the ground of of workers, does not enhance the status of the serious illness and medical grounds. Since he has admitted apprentice/trainee as that of permanent worker. Court his illness which is prohibiting him to join duties and work, also held that merely because the trainee was working can we terminate his services straightway on the ground of just like any other permanent employee, the status of continued ill health? Management is ready to pay him even apprentice does not become one of permanent employee. all dues including retrenchment compensation. What is your His working and producing products just like any other expert advice? How should we go about? permanent employee will not make him permanent employee. Allahabad High Court in the case of Director, Ans. You are mixing two issues. One side you are saying Indian Institute of Technology vs. Hiyat Khan 2000(4) that we want to terminate his services on the ground of LLN 49 has also held that the position of the training was continued ill health. Other side you have intention to akin to that of a student and not that of an employee. The pay him even retrenchment compensation. Both issues order of terminating the training of the trainee on the are self contradictory. Termination on the ground of ground of bad academic performance therefore, could continued ill health is excluded from retrenchment as not be faulted on any principal of natural justice. per Sec. 2(oo) of the I.D. Act. If you decide to terminate Supreme Court in Kalyani Sharp India case 2001 LLR 812 the services on continued ill health, then you need not to also held that the training can also be terminated even pay retrenchment compensation. I am of the opinion before the completion of period, if contract so permits. BM that even if he has expressed his inability to join the new
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Recent Important
Abandonment Apprentice / Trainee In the absence of oral and documentary Since apprentice is not a workman and during evidence of management witnessess, plea of the training neither he worked for any post nor belong management of abandonment of the service by the to any cadre, his training period cannot be counted workman will not stand. as experience for the purpose of promotion. Personal allegation against the Presiding officer of Apprenticeship Training means a course of training Labour Court cannot be considered when the Presiding in any industry or establishment undergone in Officer has not been impleaded as a party in person. pursuance of a contract of apprenticeship and under When any cutting or over-writing in recording of prescribed terms and conditions. proceedings is officer, the same cannot be taken as any Apprentice is a trainee and not a workman supposed interpolation by the Presiding Officer or court staff. to enter into contract by virtue where he has to serve for When the petitioner fails to record his oral and a fixed period on a fixed stipend. No corresponding documentary evidence by recording statement of his obligation on part of employer to employ the apprentice witness (s) before the Trial Court, documents submitted on expiry of the training period. Apprentice has no by the petitioner with his written statement would not statutory right to claim appointment. Employer to offer be read in evidence and his defence would fail. employment if terms of contract of apprenticeship lay Documents, if any, or pleading of the party, if not down condition that on completion of successful proved before the Trial Court, by the party concerned, training employer would offer him employment. cannot be examined, in writ jurisdiction by the High Since the workers were engaged as ITI trainees Court, as per settled law in this respect. under Assured Career Progression Scheme and there Termination of service of the workman without was no clause in the appointment letter that on complying section 6N of the Industrial Disputes Act successful completion of training apprentices would be would be illegal resulting into reinstatement with back- given employment. There was no obligation on the wages. employer to give appointment. Prior to giving regular pay scale, they were paid fixed pay and did not belong to Minerva Diesel Engines Pvt. Ltd. vs. P.O., Labour Court, any cadre. It was wrong to hold that period of training of Agra & Anr.2013 LLR 256 (All. H.C.) such apprentices shall be treated as duty for all intents and purpose and would be counted as experience in service for purpose of promotion. Adjudication Haryana Power Generation Corporation Ltd. and others vs. Harkesh Chand and others. 2013 (136) FLR 666 (S.C.) Granting relief of absorption to a bank While the apprentice under the Apprenticeship employee by the Industrial Tribunal is liable to be Act acquires knowledge of the trade, the trainee set aside since the dispute as referred for acquires professional skills of the trade. Both are adjudication was raised after six years and also the bound by the terms of their engagement and not Industrial Tribunal adjudicated beyond the terms entitled to regularisation. of reference. An apprentice under the Apprenticeship Act, Assistant General Manager (Admin.) vs. Presiding acquires knowledge of the trade concerned, hence not Officer and Another.2013 LLR 317 (P&H H.C.) Business Manager 42 April 2013 Latest Judgments
entitled for regularisation. A trainee acquires setting aside the termination of a workman would not professional skills of the trade and is bound by the be justified since only one out of five charges have been terms of his appointment letter. proved in the enquiry whereas the workman has Challenge to the termination of service by a unblemished record for 15 years hence the High Court trainee/apprentice after a long period of five years is has directed reinstatement with 50%. not justified. K. Kalirajan vs. Presiding Officer,Central Government The General Manager,E.I.D. Parry (I) Ltd. vs. The Industrial Tribunal-Cum-Labour Court and Another. Presiding Officer,Labour Court, Vellore. 2013 LLR 319 (Mad. H.C.) 2013 LLR 335 (Mad. H.C.) Compensation Contract Labour Act The right to be reinstated is reserved for When the canteen is run by a person projecting permanent workers. Even if the employer is guilty himself to be a contractor having neither licence of flouting the retrenchment provisions in respect nor agreement to run the canteen, workers of such of daily wager, such daily wager will be awarded contractor would be treated as employees of the only compensation and not reinstatement. principal employer. Reinstatement with back-wages is not must for a In the absence of pleading or any document brought sacked daily wager when the employer has not complied on record to indicate the workman to be employees of with the provisions of section 25F of the Industrial the contractor, whether having or not having licence Disputes Act providing for payment of retrenchment under the Contract Labour (Regulation and Abolition) compensation to a terminated workman hence Act, 1970, the workmen would be treated to be as compensation instead of reinstatement with back- employees of the principal employer, entitled for the wages would meet the ends of justice. benefits being provided to the regular employees. Rajkumar S/o Rohitlal Mishra vs. Jalagaon Municipal Petition, filed under Article 226 of the Constitution Corporation. 2013 LLR 305 (S.C.) of India, without making Industrial Tribunal / Labour When there is clear intention of abandonment of Court as a party,is to be treated under Article 227 of the service by the workman from her resignation, she Constitution of India. would not be entitled to withdraw the same after For invoking interference by the High Court under about two years as her such act is hit by the Article 227 of the Constitution of India, the essential principle of res-ipsa liquator. ingredient is to prove that impugned Award passed by Domestic enquiry is not required to prove the Industrial Tribunal / Labour Court has resulted abandonment of service on the part of the workman into miscarriage of justice of suffers from patent when the facts speak for them selves applying the perversity. principle of res-ipsa liquator. Oil & Natural Gas Commission vs. Baldev Babaji Lump sum compensation of a reasonable amount Thakore & 13 Ors. 2013 LLR 262 (Guj. H.C.) keeping in view length of service and facts and circumstances of the case is justified when the termination is held to be illegal instead of awarding reinstatement. Court Powers Personnel Manager,Central Warehousing Corpn. vs. After holding the enquiry as fair, interference P.O. G.C.I.T.& Ors. 2013 LLR 309 (Delhi H.C.) with the quantum of punishment in exercise of powers under section 11-A of the I.D. Act by the labour court is arbitrary and illegal. In this case misconduct was about un-authorised absence. Delhi School Education Act Treating unauthorised absence for a long period None of the Provisions of the Delhi School lightly is not justified. Education Act excludes the jurisdiction of labour Denial of mere back-wages is not an appropriate court under I.D. Act. Workman can avail this right punishment for the workman who remained also to seek relief about his termination. unauthorisedly absent for a long period. Termination of services of a workman, without Management, B.M.T.C.rep. by Chief Law Officer vs. E. conducting domestic enquiry through an independent Balakrishna. 2013 LLR 271 (Kar.H.C.) Enquiry Officer and holding him guilty of the alleged misconduct, would be liable to be set aside. When out of five charges only one was found to be proved against the employee, court should have If the Management neither cross-examined the exercised his powers under section 11-A of the I.D. workman not defence evidence is produced before the Act to grant relief to the employee. Industrial Tribunal / Labour Court, to prove its stand, the Tribunal/ Court is justified to grant relief to the Failure to exercise its powers under section 11-A of workman holding his termination as illegal. the Industrial Disputes Act of the Labour Court in
Business Manager 43 April 2013 Latest Judgments
None of the provisions of the Delhi School When the domestic enquiry is held proper, the court Education Act excludes the jurisdiction of the Labour should not set aside the punishment imposed upon the Courts/ Industrial Tribunals established under the delinquent employee. Industrial Disputes Act or puts any bar to the remedy If an employee does not participate in the provided under the Industrial Disputes Act. departmental enquiry despite opportunity given, Guru Nanak Public School vs. Arjun. 2013 LLR 280 principle of natural justice is deemed to have been (Delhi H.C.) waived off and employee is stopped to take plea of non- compliance of principles of natural justice. Cement Corporation of India Ltd. and Anr.vs. D.B. Disciplinary Proceedings Mathur and Anr.2013 LLR 273 (Delhi H.C.) Chargesheet need not contain details of the documents and names of witnessess. Employees’ Compensation Disciplinary authority is expected to prove the charge on preponderance of probability and not proof Act beyond reasonable doubt. Charged officer failed to inspect document in respect of allegations raised by the Dependants of deceased are not debarred from bank. Always open to the enquiring authority to accept making clam under Motor Vehicles Act even after the same. getting compensation under E.C. Act. However Charged Officer did not admit all or any of the such compensation will be adjusted in the articles of charge. Inquiry officer has to furnish to such compensation awarded under Motor Vehicles Act. officer a list of documents and list of witnesses by When an employee dies in an accident while pillion which and by whom the articles of charge are proposed riding on the motorcycle, his dependants who have been to be proved. paid compensation under Workman's /Employees' Charged Officer does not submit written statement Compensation Act after filing the claim petition will not of defence. Fails to comply with any provision of the be debarred to make claim under Motor Vehicles Act rules. Enquiry officer may hold the enquiry ex-parte. but the amount of compensation under workman's/Employees' Compensation Act will be Charge-sheet need not show details of the documents adjusted in the compensation as awarded under the and names of witnesses proposed to be examined by the Motor Vehicles Act so that there is no duplication. bank. It cannot be a record of evidence. Oriental Insurance Co. Ltd. vs. Dyamavva & Ors. State Bank of India and other vs. Narendra Kumar 2013 LLR 295 (S.C.) Pandey. 2013 (136) FLR 704 (S.C.) While parking the truck on road side nearby A domestic enquiry would be perverse if there is hotel, driver fainted and expired, such death would no material evidence recorded by the Enquiry be accident arising out of and in the course of Officer proving the charge (s) against the employment. Award rightly given by delinquent employee. In this case E.O. relied on the commissioner. signature on the challan under protest and no other material evidence. There was Causal Connection to the death of the deceased with that of his employment as a truck driver. If the Management does not seek leave of the court to lead additional evidence in written statement itself, There was every reason to assume that the vocation no further opportunity can be granted to it to prove the of driving was a material contributory factor if not the misconduct of the workman, in case the issue of sole cause that accelerated his unexpected death to enquiry is decided against it, which would result into occur which in all fairness should be held to be an reinstatement of the workman, in case the issue of untoward mishap in his life span. Such an ' untoward enquiry is decided against it, which would result into mishap' can therefore be reasonably described as an reinstatement of the workman with full back-wages. 'accident' as having been caused solely attributable to the nature of employment indulged in with his Finding of the trial court in an application under employer which was in the course of such employer's section 33 (2) (b) of the ID Act would not operate as a res trade or business. judicata in a petition under section 10 of the ID Act. Deceased was actually driving the truck and that in D.T.C.vs. Dhol Pal. 2013 LLR 307 (Delhi H.C.) the course of such driving activity as he felt uncomfortable he safely parked the vehicle on the side of the road near a hotel soon whereafter he breathed his Dismissal last. Mst. Parampal Singh Through Father vs. M/s. National When illness suffered by the employee has not Insurance Co. and another.2013 (136) FLR 848 (S.C.) been substantiated, unauthorised absence by the Two employees being professional drivers will employee stands proved attracting penalty of be entitled to accident compensation by treating dismissal. totally disabled since one of them has lost his eyes
Business Manager 44 April 2013 Latest Judgments
and his driving licence cannot be renewed Employer of the partnership firm would be resulted into shortening of his leg due to injury that person who is responsible for the conduct of and he would not be able to drive the vehicle for the business. Prosecution of the partner other long distance. than whose name is mentioned in form-5A of the An appeal will not be dismissed merely for E.P.F. Act is liable to be quashed. non-depositing of decreed amount with interest As per section 2(e) of the Employees' Provident since no order was passed for nearly 8 years. Funds and Miscellaneous Provisions Act, 1952, the United India Insurance Co. Ltd. vs. Y. Ananda Rao employer means the Manager, Occupier or the and Another.2013 LLR 333 (A.P.H.C.) partner, who is in-charge and responsible for the conduct of the business of the It is well-settled that employer becomes liable establishment/company/firm and not any other to pay compensation, as soon as personal injury partner or director or officer. is caused to the workman by accident , arising out of and in the course of his employment. It is Criminal complaint for breach of the provisions of the date of accident and not the date of Employees' Provident Funds and Miscellaneous adjudication, which is relevant to determine the Provisions Act, 1952 is maintainable only against the amount of compensation. person who is in-charge and responsible for the conduct of the business of the establishment and not Oriental Insurance Co. Ltd. vs. Manju (Smt.) and Ors. any other partner or Director or officer. 2013 I CLR 567 (All. H.C.) Devinder Singh vs. Provident Fund Inspector.2013 Under the provisions of Employees' LLR 241 (P&H H.C.) Compensation Act, 1923, the Commissioner is justified to impose liability to pay interest from Principal employer cannot deny the liability the date of accident and also to burden the for deposit of E.P.F. contributions till the code no. employer with reasonable amount of penalty, is allotted to the contractors. In such case of depending upon the attitude of the employer delay, levy of damages and interest is legal. /insurer. Principal employer cannot deny the liability for Oriental Insurance Company Ltd. Shimla, through its deposit of EPF dues till the code number is allotted to Senior Divisional Manager vs. Santosh Kumari wife the contractors and any delay would attract damages of Sh. Revinder & Ors. 2013 I CLR 661 (H.P.H.C.) and interest. Plea of absence of mens rea on the part of principal employer to justify the harshness of penalty Employees’ Provident Fund of damages and interest as per provisions of the When there was a clear report in favour of the Employees' Provident Funds & Miscellaneous Samiti, employer that those four persons are not Provisions Act, 1952 would be misconceived and being paid salary and there was no rebuttal to the untenable. employer’s case that they were not attending the Regional Provident Fund Commissioner vs. Ropar employer’s establishment on regular basis on Thermal Plant (GGSTP) PSEB, Ropar and Anr.2013 fixed day and timings, coverage of this LLR 243 (P&H H.C.) establishment taking into account of these four When the alternative/statutory efficacious persons is liable to be set aside. remedy of appeal under section 7-I and 14-B of Jan Shiksha Prasar Samiti, Barwari vs. Assistant E.P.F. Act is available, the writ petition will not be Provident Fund Commissioner,Madhya Pradesh, tenable. Indore. 2013 I CLR 597 (M.P.H.C.) An aggrieved party may file an appeal under When the canteen is run in a factory section 7-I of the Employees' Provident Funds and establishment, exclusively for the employees and Miscellaneous Provisions Act, 1952 before the staff working therein, and management has the Employees' Provident Fund Appellate Tribunal overall control in running the said canteen, the within 30 days from the date of receipt of order of the workers working in the canteen, may be through EPF Authority. the contractor or a society, canteen workers Executive Engineer (Electrical), Bolangir Electrical would be covered as 'employees' u/s.2 (f) of the Division vs. Regional Provident Fund Commissioner, E.P.F. & M.P. Act. Orissa. 2013 LLR 250 (Orissa H.C.) M.M.T.C. Ltd. vs. Employees' Provident Fund Liability cannot be saddled upon the Organisation. 2013 I CLR 693 (Delhi H.C.) establishment in the name of compliance of E.P.F. Before coming to a conclusion of different Act without identification of employees, entitled sister concerns, as a single unit, the primary for the same. assessing authority has to examine the matter The object of the Employees' Provident Funds and and probe inter se status, by applying the tests of Miscellaneous Provisions Act, 1952 is to collect the financial, managerial or functional integrality. fund for welfare of the workmen who are required to Regional Provident Fund Commissioner,Fridabad vs. be taken care of after their superannuation and not to Lakhani India Limited. 2013 I CLR 791 (P&H H.C.) gather money to meet any pre-conceived target. Business Manager 45 April 2013 Latest Judgments
EPF Authorities cannot make collection of EPF cannot be set off towards gratuity payable as per order contribution for faceless, nameless or non-identifiable of the Controlling Authority. workmen on mere head-count or herd count. In the absence of any fault on the part of the A finding without evidence is no finding in the eye of employee, awarding interest upon the principal amount law. of gratuity by the Controlling Authority is justified M/s. Roxy Cinema vs. State of Bihar and Anr. under the provisions of section 7 of the Payment of 2013 LLR 282 (Pat. H.C.) Gratuity Act, 1972. In a complaint for violation of the provisions of Kraft Palace vs. Appellate Authority under Payment of Employees' Provident Funds & MP Act, the Trial Gratuity Act & Ors. 2013 LLR 254 (All. H.C.) Court should not have issued non-bailable warrants before issuing of summons for appearance by the accused. Increment Sanjeev R. Khandelwal vs. Enforcement Officer, Employees' Provident Funds, Bellary. An increment given erroneously to the employee 2013 LLR 294 (Kar.H.C.) can be recovered from him. Auction purchaser of an establishment will not When advance increment is admissible to persons in be under legal obligation to pay the provident fund law department only, granting the same to a person dues of the establishment which were due upon the looking after functions of accounts and finance division establishment prior to the auction. is not justified being of no use to the employer. Textile Mazdoor Congress vs. State of Madhya Pradesh When the power of the Management Director to and Others. 2013 LLR 331 (M.P.H.C.) grant advance increments had already been withdrawn In the absence of evidence of closing down the on 27.1.1991, granting the same in the year 2005 was establishment and employed less than 20% by the without jurisdiction hence liable to be set aside. employer, P.F Authority’s order of P.F contribution The doctrine of 'equal pay for equal work' as per law damages and penalty will stand good. settled, cannot be applied in a vacuum. Challenging by the employer, the validity of Electronic Corporation of Tamil Nadu Ltd. vs. N. provident fund contributions along with interest as Kumar 2013 LLR 336 (Mad. H.C.) determined by the Employees' Provident Fund Organisation, would not be tenable since the employer has failed to produce any supporting documents that its establishment has been closed and that there were not Industrial Disputes Act more than 20 employees. Rejection of the management application An aggrieved party by the order of the EPF Officer seeking approval for dismissal of union president can either apply for review of the order or appeal can be and secretary during pendency of disputes will filed before the EPF Appellate Tribunal. result into non-existence of its dismissal order, Gurusharan Singh vs. Union of India and Others. 2013 entitling workmen to reinstatement with back LLR 332 (Jhar.H.C.) wages. In writ jurisdiction, disputed questions of facts cannot be adjudicated. Gratuity Seeking approval by the Management under section 33 (2) (b) of the Industrial Disputes Act, 1947, when When at the relevant time the number of rejected by the Industrial Tribunal / Labour Court, it employees was 21, the provisions of the Payment of would be deemed that the dismissal order is non-est and Gratuity Act will be applicable to the organisation the workmen would be entitled to reinstatement with making employees entitled for gratuity under the back-wages and other benefits. Act. Indian Rare Earths Ltd. vs. Presiding Officer,Industrial Wage limit of an employee was removed by Tribunal, Orissa & Ors. 2013 LLR 246 (Orissa H.C.) amendment Act 34 of 1994 with effect from 24.5.1994. Only identity card is not sufficient evidence in The employer is under an obligation under section 7 the absence of any proof of salary or wages having of the Payment of Gratuity Act, 1972 to determine the been paid to the workman to prove employer- amount of gratuity and give a notice in writing to the employee relationship. concerned employee with a copy to the Controlling In exercise of supervisory writ jurisdiction, it is not Authority and thereafter pay it within 30 days. possible for the High Court to reappreciate the evidence When the employer does not discharge his and reach a different conclusion other than what the obligation, his objection of belated application filed by Labour Court had concluded. the employer is not sustainable. Rampat vs. Presiding Office, Industrial Tribunal-cum- Any extra Payment already made to the employee Labour Court, Panipat and Another with his retiral dues but not under the head of gratuity .2013 LLR 323 (P&H H.C.)
Business Manager 46 April 2013 Latest Judgments
When termination of the workman is held to be illegal, but keeping in view that the industrial Protected Workman dispute was raised after dealy the back wages on reinstatement will be from filing of the statement When no objection is taken by the management of claim and not from the date of termination. within 15 days from the communication of the union under rule 61(4) of I.D. Rules about Aaram Saini vs. Presiding Officer,Central Government declaring the union general secretary as protected Industrial Tribunal And Labour Court, Jaipur and workman, order passed by the A.L.C. declaring him Others. 2013 LLR 330 (Raj. H.C.) as protected workman will be final. Dismissal of Merely because an employee has been directed such workman without permission under section to be reinstated without back-wages, he cannot 33(3) of the I.D. Act would be invalid. claim benefit of increments notionally earned If no objection is taken by the Management within 15 during the period when he was out of service. days from the communication of the Union as per Rule Continuity of service and a direction where 61(1) of the Industrial Disputes (Central) Rules, the reinstatement is accompanied by a specific direction workmen mentioned in that communication would that the employee shall be entitled to all the automatically become entitled to the status of consequential benefits, which necessarily flow from 'Protected workmen' i.e., why the Assistant Labour reinstatement or accompanied by a specific direction Commissioner declared the workman as 'protected that the benefits of the increments earned during the workman'. period of absence. The order passed by the Appropriate Government The Labour Court has rightly held that the petitioner declaring the protected workmen can be challenged by is gainfully employed and is not entitled for any the Management by invoking writ jurisdiction of the consequential benefits. High Court. R. Gangabyraiah vs. General Manager,M/s. Spinning For dismissal of the protected workman, it is and Manufacturing Mills, Minerva Mills Bangalore. mandatory to obtain prior permission under Section 33 2013 LLR 292 (Kar.H.C.) (3) of the Industrial Disputes Act, 1947 from the When the Industrial dispute was pending concerned Industrial Tribunal/ Labour Court failing regarding general demands, termination which would result that there is no dismissal and the simpliciter or automatic termination of service as workman would be entitled to reinstatement with full per terms of appointment or under Standing back-wages. Orders will be outside the scope of section 33 of Judicial review of the order passed by the Assistant I.D. Act. Labour Commissioner is not exercisable in order Termination simplicitor or automatic termination of absence of any error in the order having finding of fact, service under the conditions of service or under the without any perversity shown by the appellant. Standing Orders is outside the scope of section 33 of the Complaint filed by the workman under section 33A of Act. the Act was justified as he was dismissed without When the workmen had not raised the issue relating seeking permission of the Tribunal under section 33 (3) to infringement of section 33 of the Act as a specific of the Act. ground before the Labour Court, their such a plea Management of Batra Hospital & Medical Research before the High Court is not sustainable. Centre vs. Government of NCT of Delhi & Anr.2013 The Management of E.S. Haji & Co. vs. The Presiding LLR 235 (Delhi H.C.) Officer,Principal Labour Court, Chennai & Anr.2013 LLR 335 (Mad. H.C.) A workman will not be entitled to claim wages Probationer for the period during which he was not reinstated. G. Sammaiah vs. Mandal Revenue Officer,Nellikudur Object of the probation period is to assess the Mandal and Others. 2013 LLR 333 (A.P.H.C.) efficiency, regularity and sincerity of the employee. Termination of service during probationary period is not punitive. Probation period entitles the Management to assess Misconduct the efficiency, regularity and sincerety of the Theft is a heinous and grave misconduct probationer, gauge his propensity, involvement in justifying dismissal from service. criminal or disciplinary misconduct while deciding his suitability for continuation in service or Non-exercise of power under section 11A of the discontinuation from services. Industrial Disputes Act by the Labour Court is justified when the charge of theft is proved in the domestic Management for being not satisfied with the enquiry as such is a heinous act. performance of the probationer cannot be asked to provide its justification. Domestic enquiry is not C. Joseph vs. Divisional Controller,K.S.R.T.C.,Mysore. required when the termination of services of the 2013 LLR 269 (Kar.H.C.) probationer is not stigmatic. Termination of the
Business Manager 47 April 2013 Latest Judgments
services of the probationer, if actuated by established When the Management fails to prove its stand that mala fides, would be liable to be set aside, if proved by the workman was not in their service on the basis of the probationer. valid documents, service period as alleged by the When termination of services of the probationer is workman on the basis of proper document, would be simplicitor without any stigma, he is neither entitled to accepted. relief of reinstatement nor such a termination is When the writ petition was admitted for hearing and punitive. decided by learned Single Judge, after a long D.T.C.vs. Prem Nath & Ors. 2013 LLR 278 (Delhi H.C.) adjudication, it would be traversty of justice at this belated stage of hearing writ appeal, the workman is directed to invoke industrial adjudicatory process. State Bank of India & Ors. vs. Mitra Kumar Mondal & Punishment Anr.2013 LLR 251 (Cal. H.C.) Writing the sentence that employee has been When the workman failed to make compliance charge-sheeted with ulterior motive will be no to the offer made by the Management before the ground to punish the employee. Conciliation Officer to resume his duties but he failed to report for duty, the Labour Court’s award A disciplinary authority, when differs with the of reinstatement with back wages will not sustain. findings of the Enquiry Officer, has to issue show-cause notice to the delinquent for the proposed punishment. Magt. of M/s. Amazone Exports P.Ltd. vs. Secretary Labour & Anr.2013 LLR 312 (Delhi H.C.) Merely using the words that the senior officer has chargesheeted the employee with an ulterior motive would not amount to un-parliamentary language. Ratan Kumar Singh vs. Bihar State Agriculture Resignation Marketing Board, Patna and Other. 2013 LLR 333 (Jhar.H.C.) After resignation when workman complained to the management on the same day about obtaining his resignation under duress and contacted all authorities of the company, such resignation Reinstatement cannot be presumed to be submitted voluntarily. Reinstatement with 25% back wages rightly Grant of reinstatement should be considered awarded. keeping in view the factors like mode, manner, If the workman makes complaint to the Management nature of employment, lenght of service and the on the date of submission of his resignation itself that ground on which termination has been set aside. his resignation has been obtained by force by the Award of reinstatement cannot be same for daily official of the Management and runs from pillar to post wager and regular employee. Reinsatement with to the authorities, it is not believable that the workman back wages is no more a normal rule. submitted his resignation voluntarily. In case of daily wager who completed only 240 An Award passed by the Industrial Tribunal can be days, compensation of 50,000/- instead of quashed in writ jurisdiction, if it is shown that the reinstatement would be proper. finding recorded by the Industrial evidence available on Compensation, in lieu of reinstatement, should have record or the finding recorded by the Industrial been proper to a daily wager who has completed merely Tribunal is totally perverse. 240 days' service hence the Single Judge as well as the Denial of reinstatement by the Labour Court is not Division Bench of the High Court also erred in not justified if the Labour Court has made contradictory considering that the reinstatement with back-wages is finding of facts, not considered all facts submitted by no longer a rule without exceptions. the workman except mere tendering of his resignations While granting a relief of reinstatement to a under which the resignation of the workman came into workman whose termination is held to be illegal i.e. existence keeping in view his long service. violative of section 25F of the Industrial Disputes Act, Interference by the High Court under Articles 226 1947, the Labour Court has to keep in view all relevant and 227 of the Constitution of India, in the Award of factors, including the mode and manner of Labour Court is justified if the Tribunal/ Labour Court appointment, nature of employment, length of service, had erroneously refused to admit the admissible and the ground on which the termination has been set aside material evidence or had erroneously admitted any and the delay in raising the industrial dispute. inadmissible evidence which has influenced the Asstt. Engineer,Rajasthan Dev. Corp. & Anr.vs. Gitam impugned finding or if finding of fact is based on no Singh. 2013 LLR 225 ; 2013 (136) FLR 908 (S.C.) evidence or there is an error of law or if finding When a workman was appointed through the amounts to perversity despite the legal position that the process of an interview and had worked High Court is not to assume the role of the Appellate continuously for more than 240 days, his removal Court. from service without reasoned order will not be M/s. Atlas Cycle (Haryana) Ltd. vs. Kitab Singh. sustainable. 2013 LLR 231 (S.C.) Business Manager 48 April 2013 Latest Judgments
Resignation of the workman on the letter head of the company with his signatures having Transfer sufficient gap between writing and signature cannot be construed as genuine. In such case The transfer order issued by management reinstatement is justified. having no employee-employer relationship would be illegal. In this case the Hotel was managed by An Award, passed by the Industrial Tribunal, can be someone else and the transfer order was issued by quashed in writ jurisdiction, if it is shown that the other entity. finding recorded by the Industrial Tribunal is contrary to the material evidence recorded by the Industrial The order of transfer was issued by M/s. Sun and Tribunal is totally perverse. Beach, which was not Management and has no control over the employees as the hotel was being managed by When the Management fails to produce the relevant M/s. Hotel Hans. Transfer of an employee to a different record to prove its stand, the reinstatement of the entity would be illegal when the establishment where workman is justified. the employee was transferred could not be shown by the Resignation of the workman on letterhead of the petitioner hotel that it was even a sister concern of the Management, when denied, would not be treated to be a transferring entity. When the transfer of an employee genuine one. from Puri (Odisha) to New Delhi is prima facie illegal it God Gift Laboratories, Faridabad vs. Presiding Officer, can be challenged before the Labour Authorities in Industrial Tribunal-cum-Labour Court, Faridabad and odisha since the part of cause of action has arisen in Anr.2013 LLR 239 (P&H H.C.) the State of Odisha. M/s. Hotel Hans Coco Palms vs. Milan Das @ Milan Krishna Das. 2013 LLR 289 (Orissa H.C.) Termination If transfer is based upon other considerations than administrative exigencies and mala-fide Termination of a workman, as upheld by the appears, stay on such order by Industrial Court learned Single Judge is liable to be set aside when would be proper and just. the petitioner-workman has worked for more than Normally, the courts would not interfere in the 240 days in the preceding calendar year and his orders of transfers based upon some particular services have been terminated without payment of instance and the policy decision of the employers but if compensation i.e., without compliance of section such transfers are prima facie based upon various 25-F of the Industrial Disputes Act. considerations other than so-called administrative Ashok Kumar Singh vs. Jharkhand State Mineral contingencies; and it has foundation of allegations of Development Corporation. 2013 LLR 324 (Jhar.H.C.) mala fide, harassment, humiliation and degradation of No order of termination of employee, without the level of work also, the stay of such transfer orders, holding any enquiry or without giving an in the present facts and circumstances, cannot be stated opportunity of putting his side, can be held legal to be unjust, and/or illegal hence the same will be set and valid. aside. Apollo Tyres Ltd. vs. Dipak Bhagwatiprasad Upadhyay Larsen and Toubro Ltd., Mumbai vs. Antony Jokim & Anr.2013 I CLR 618 (Guj. H.C.) Patekar and Another.2013 LLR 314 (Delhi H.C.) BM
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Business Manager 49 April 2013 B.Saikumar Mumbai
Gratuity is a vested right, it cannot be taken away without hearing the employee. Forfeiture of gratuity
Sec. 4(6) does not enumerate the acts of omission or acts involving moral turpitude. In this regard one needs to take recourse to the certified standing orders and service rules.
he Supreme Court disorderly behavior or acts involving guidelines in Tournamulla moral turpitude, irrespective whether Estate v. Their Workmen 1973 or not there is financial loss or damage I LLJ 241 on forfeiture are to the employer. If so, can this reflective of the provisions provision grant carte blanche to the Tof sec.4(6). The hon'ble Court employer to summarily forfeit gratuity recommends forfeiture for acts that are merely because the employee subversive of discipline, causing loss committed above acts specified under or damage to the property of the clause (a) or (b) of Section 4(6). employer, to the extent of loss or In Dunlop India Ltd v. Union of damage and complete forfeiture for acts India & Ors 2003 III LLJ page 1125, the of serious misconduct like acts of hon'ble Delhi High Court held that violence, riotous and disorderly gratuity of the employee who resigned behavior or acts involving moral from service cannot be forfeited under turpitude whether or not they cause Sec.4(6) since his services were not loss or damage to employer's property. terminated which is the sine qua non Sec. 4(6) consists of two sub-sections for invoking Section 4(6).This was i.e Sub-Section(a) and Sub-Section(b). reiterated also In Chief Officer v. Sub-section (a) deals with forfeiture Champaklal Lallubhai Kewat & Ors against financial loss caused due to any 2006 III CLR 484 (Guj. H.C) act or an act of omission or negligence Assuming that in the same example, and allows forfeiture in such cases to Mr. Sudhir was issued a charge-sheet the extent of financial loss or damage. for his negligence and the Sub-Section(b) empowers employer to departmental enquiry is underway. forfeit gratuity either partially or However, pending departmental wholly for acts of violence, riotous or enquiry, Mr. Sudhir reached his age of Business Manager 50 April 2013 Forfeiture of gratuity
The provisions of Sec.(8) allow gratuity to be recovered from a defaulting employer as an arrear of land revenue and those of Sec.13 which protect gratuity even from attachment by a court decree, show as to how the Act religiously guards the right of the employee to his gratuity.
superannuation and he was allowed to retire. Even willful negligence. then the employer cannot forfeit his gratuity even on In B. Mohan Reddy v. A.P. State Co-op Marketing the pretext that disciplinary proceedings were Federation ltd.1993 III LLJ417(A.P.H.C), it was held initiated against him but could not be completed in that gratuity cannot be forfeited when the view of his superannuation because the employee termination of service was not for any of the reasons was allowed to retire from service but not terminated mentioned in clauses (a) or (b) of sub-section (6) of from service as held in the case of Valsad District Section (4). Central Coop. Bank Ltd. V. Krushnalal Manilal Vashi 2004 III CLR 235 (Guj. H.C). A host of other cases too In Jayantibhai Nathalal Darji V. Panchmahal negatived forfeiture of gratuity on resignation and District Co-operative Bank ltd. & Anr 2006 I LLJ retirement. 535(Guj.H.C), it was held that gratuity can be forfeited only if the services of an employee are terminated for Thus the above cases make it clear that the any act, willful omission or negligence or riotous and services of an employee shall be terminated for an act disorderly behavior or for any act involving moral of omission or negligence causing financial loss to turpitude but not when the employee is allowed to the employer and that retirement and resignation do retire on reaching superannuation. not amount to termination within the meaning of Sec.4(6). In Gujarat State Fertilizers & Chemicals Ltd v. Surendra .T. Amin 2004 III CLR 902 (Guj.H.C), an Therefore the parameters defining the scope and employee was discharged for committing ambit of sec.4(6) allowing forfeiture, need to be irregularities without a formal enquiry and his understood in the context of the social welfare nature gratuity was forfeited. In this case the court declined of this legislation. The Payment of Gratuity Act to equate discharge with termination as envisaged fulfilled the long felt need of providing a statutory under Sec.4(6) since the employee was discharged cover for economic security to employees post without a formal enquiry into the irregularities. retirement in return for their service and contribution to the growth of the organization. Thus In Sate Bank of Travancore Represented by it's gratuity, as emphasized in many cases is no longer a General Manager. V Asst. Labour bounty or charity to be distributed by the employer as Commissioner(central), Controlling authority under per his will but a right and property of the employee the Payment of Gratuity Act,2012 II CLR 739.(ker.H.C), to be held in trust for him by the employer till his it was held that when the employer imposed the retirement or cessation of service. penalty of discharge with superannuation benefits for a misconduct committed by him, thus making him Besides, the provisions of Sec.(8) which allow eligible to receive superannuation benefits, he cannot gratuity to be recovered from a defaulting employer turn around to invoke Sec.4(6) to forfeit his gratuity. as an arrear of land revenue and those of Sec.13 which protect gratuity even from attachment by a However in UCO Bank V. Regional Labour court decree, show as to how the Act religiously Commissioner(Central) & Ors 2008 III LLJ 54, the guards the right of the employee to his gratuity. employee was awarded the penalty of compulsory retirement by the Disciplinary Authority with no Thus in Jaswant Singh Gill V..Bharat Cooking adverse effects on his retiral benefits for Coal Ltd. & Ors 2007 I LLJ 795, the hon'ble Supreme misappropriation but latter the Bank has forfeited the Court held that since gratuity is a vested right, it gratuity for the financial loss suffered by it which was cannot be taken away without hearing the employee. set aside by the Controlling authority and allowed the Therefore keeping in view the sanctity granted by the employee's claim which was challenged in the High Act to the right of the employee to gratuity,the courts Court by the Bank. The hon'ble Allhabad High Court strictly interpreted the provisions of Sec.4(6) and did held a view contrary to that of the State Bank of not uphold any forfeiture by the employer that is not Travancore, mentioned above, by holding that the complying with the mandate contained in Sec.4(6). It disciplinary proceedings operate in a separate field serves us well to go through a gist of decisions in and once it is proved that the service of an employee some cases to understand the scope and purport of is terminated for an offence involving moral Sec.4 (6). turpitude, the bank is empowered to forfeit gratuity In Bombay Gas Public Ltd v. Papa Akbar 1990 II under Sec.4(6) (b)(ii), irrespective of the directions of LLJ 220(Bom. H.C), it was made clear that the the disciplinary authority entitling the employee to provisions of sec. 4(6)(a) do not come into operation retiral benefits. unless there is termination on the grounds set out in Besides, gratuity cannot be forfeited for every act the sub-section(a) namely the act of omission or of omission or negligence unless such acts cause
Business Manager 51 April 2013 Forfeiture of gratuity
After passing the order of forfeiture, the employer shall ensure that the order is communicated to the employee.
financial loss/damage to the employer as held in K. In Vijaya Bank V. Shri Mohandas Ramana Shetty Jayachandran v. Canara Bank 1984(1) LLN 734 (ker 2009 II LLJ (Karn. DB) it was held that gratuity H.C). cannot be forfeited unless the loss was quantified and The case law cited above make it clear that the employee is heard as to why his gratuity shall not gratuity cannot be forfeited otherwise by way of be forfeited. The case underlines the fact that the termination for acts of omission, negligence, principles of natural justice shall be read into the violence, disorderly conduct or moral turpitude and relevant gratuity rules. This requirement was such termination shall be penal in nature. stressed also in Vinod S/O Vinayak Jintukar V. State of Maharashtra through Secretary &Ors.2011( I) CLR However Sec. 4(6) does not enumerate the acts of 104(Bom. H.C). omission or acts involving moral turpitude. In this regard one needs to take recourse to the Certified After hearing the employee, the employer has to Standing Orders and service rules of the pass an order of forfeiture since it is a quasi-judicial establishments invariably enumerate the acts of act as mentioned above. The need for passing a omissions, negligence and violence and acts specific order was underlined in the case of Hindalco involving moral turpitude which are subversive of Industries Ltd V. Appellate Authority under the discipline in the organization. All those acts fall payment of Gratuity Act 2004 III LJ 148(All.H.C) and within the ambit of clauses (a) & (b) of Section 4(6). in Laxman Popatbhai Solanki V. State of Gujarat 1976 II LLN 539, the hon'ble Division Bench Gujarat Since the acts enumerated under clauses (a) &(b) of High Court held that the order of forfeiture being a Sec.4(6) are stigmatic and the provisions of Sec.11-A quasi judicial order, shall be a reasoned order. of the Industrial Disputes Act 1947 require that there shall be a fair and just enquiry into a misconduct in After passing the order of forfeiture, the employer compliance of the principles of natural justice before shall ensure that the order is communicated to the imposing a punishment, the employer needs to prove employee. The necessity of communicating the order the misconduct against the delinquent employee by of forfeiture to the employee was emphasized in as conducting a domestic enquiry where in the recent a case as in State Bank of Travancore employee is heard. This requirement to precede Represented by it's General Manager. V Asst. Labour forfeiture has been emphasized in various cases as in Commissioner(central), Controlling authority under Balachandra krishnaji kale v. KSRTC, 1999 I LLJ 932 the Payment of Gratuity Act,2012 II CLR 739.(Ker.H.C) (Karn. H.C). where in it was held that if the order is not communicated to the employee it is as good as it does But in Bharat Gold Mines V. Labour not exist. Commissioner(central) 1994 IIILLJ 54( karn.DB) and Hindalco Industries Ltd v. Appellate Authority under Thus the language of Sec.4(6) embodies in itself a the payment of Gratuity Act 2004 III LJ 148 (All.H.C), procedure for forfeiture of gratuity without following it was held that mere proof of misconduct in a fair which the forfeiture runs the risk of becoming null and just enquiry and termination of service of the and void. The procedure in nutshell as culled from the delinquent employee by way of punishment will not conspectus of above decisions will be: by itself entitle the employer to forfeit gratuity. To 1) There shall be termination of service of an forfeit a statutory right like gratuity to the extent of employee. damage or loss or to forfeit it in full irrespective of 2) Such termination shall be for an act falling within any financial loss for acts mentioned under clause (b) the purview of clauses (a) or (b) of Sec .4(6). In of sub-section-6 of sec.(4), an order is required to be other words it shall be for a misconduct which passed after giving opportunity of hearing to the means that the termination shall be penal. employee. Forfeiture is in the nature of a quasi- judicial act since it is fraught with civil liabilities. 3) Such misconduct shall be proved in a domestic Thus the employer has to issue a show-cause notice of enquiry. forfeiture to the employee because, though Sec.4(6) 4) Thereafter the employee shall be issued a show- does not provide for issuing a show cause notice. cause notice quantifying loss or damage inviting The requirement of show-cause notice was also his submissions as to why his gratuity shall not be emphasized in a recent case of Manger Park Side forfeited. Estate Nonsuch Post Coonoor V. Appellate Authority 5) After hearing the employee as above and on his under the Payment of Gratuity Act 2011 I CLR 671. submissions not satisfactory,an order of forfeiture Another requirement flowing from the principles shall be passed. of natural justice is that the employer needs to 6) The order of forfeiture shall be a reasoned order. quantify the loss/damage in the show-cause notice 7) Such order shall be communicated to the since the employee shall be put on notice as to how delinquent employee. much of his gratuity is liable to be forfeited as held in It is safe to follow the said procedure. It is better to Hindalco Industries Ltd V. Appellate Authority under be safe than being sorry. BM the payment of Gratuity Act 2004 III LJ 148(All.H.C)
Business Manager 52 April 2013 BM’s fictionalized case study presents dilemma faced by leaders in real organisations. Experts are invited to send solutions. Best will be published. Handling unethical behaviour
hakuntala University was an upcoming academic institution in Jodhpur, Rajasthan. This private university was promoted by a well-known corporate house SK Industries Ltd. as Sa CSR initiative. The private university was established by the state legislature under the Private Universities Act. The university had a sprawling campus spread across 45 acres of land in a serene environment. The multi-disciplinary UGC recognised university was set to offer graduate, post-graduate and PhD programmes. SK Ltd. was a well-known, over six decades old diversified corporate house having its presence across India. The corporate house had involved itself continuously in various CSR activities and had recently entered into higher education through its educational foundation. The University had to start its first academic session from 2010-11. Before the commencement of the session, the university advertised for faculty positions in newspapers across the country.The university appointed a group of 10 well-qualified faculty members out of about 3000 applicants from different parts of the country. The group of recruited faculty members had wide range of experience and some of them had even worked in reputed institutions. An induction programme was organized by Hemant Kumar, Head of the Institution. The newly recruited faculty members were given a warm welcome and were detailed about the work culture at the institution. They were provided rooms on twin-sharing basis for their office work. Since the construction work was not completed, Hemant Kumar The case deals with decided to postpone the institutional activities by an academic year. But, the institute decided the issues and to retain the recruited faculty and non-teaching employees for research & development, curriculum design and other activities. challenges faced by Employee Misconduct the educational institution due to Arindam Mhatre was appointed as a faculty of finance and was also given the responsibility as Dean, Corporate Relations. Corporate Relations is generally handled by Human Resource negligence of people but Arindam was given this opportunity to encourage him looking at his enthusiasm and duties, professional his claim of having good corporate contract. He as expected to promote management development programmes for the university while encouraging his faculty colleagues to design misconduct and and conduct the programmes. After joining, Arindam was staying alone in the residential unethical behaviour facility provided by the university in the Shastri Nagar area of the city. His daughter was pursuing her PhD degree from Pune University and he as separated from his wife, who was of some faculty working as a school teacher in Mumbai. The only person accompanying Arindam was his members. The case domestic help, Darshan who was working with him for the last 10 years. Initially,Arindam was very enthusiastic of having joined an upcoming university as it was an opportunity to also discusses some contribute visibly in the institution and build a long-term career. Being the senior most faculty of the possible member in the institution, he wished to present himself as a role model for other faculty. He showed interest in the organization & management of various activities in the institution. solutions available Another faculty member Sayantini Jakhar had also joined the institution at the same time. to the organisations She was a faculty of Human Resource Management. She had claimed in her application that she to deal with such had earned her PhD degree, but on the verification of her documents after appointment, it was found that her viva-voce was still due. The doctorate degree was yet to be awarded to her. She situations. had even made a false claim about her emoluments in the previous organisation. However, on her apology for making false claims about the degree and emoluments, she was given opportunity to join the university.Sayantini was living with her mother-in-law & daughter in her own apartment in the city while her husband was working in a multi-national company in Surat. The university had offered her residential accommodation at the time of joining which she declined on the plea that she would prefer to live in her own apartment only as her daughter was studying in a kindergarten school near her home. Hemant Kumar told her that according to the policies if she refuses accommodation at time of joining, she will not be provided accommodation later which was accepted by her.
Business Manager 53 April 2013 Hemant Kumar did not want to take any action on "hearsay". He did not want to harm the interest of any of the employees. He wanted to observe the situation and refrain from taking any hurried action.
Sayantini did not have a very long request to maintain distance with action needs to be taken against these two academic experience and thus found a Arindam, who appeared to her slightly faculty members for professional great guide and philosopher in Arindam. unmindful of the language that he used misconduct and obscene behaviour in the Initially,it seemed to be a good gesture as while talking to Sayantini. She had found organisation. both involved themselves in academic him cracking nasty jokes with Sayantini Residents of the area where discussions & deliberations. With time, which she felt would make any lady accommodation was provided to the the bonding between the two grew uncomfortable. Sugandha tried to employees of the university had also stronger and they used to spend most of counsel her because she felt that it was started to comment between the their time together. The two found many her duty to help out a younger colleague relationship of Arindam & Sayantini characteristics and interest common and it was in her best interest. Sayantini who were generally seen together at each between them. After about 6 months, her replied that there was nothing wrong in other's residence. mother-in-law went to live with her either Arindam's language or his second son working in a private company behaviour. To her utter dismay, Arindam Hemant Kumar carefully listened to in Delhi. Sayantini thereafter shifted her and Sayantini stopped talking to her from the feedback given by various employees residence to the same housing complex the very next day. Sugandha requested from time to time, he asked them to where Arindam was provided Hemant Kumar to take some action in maintain patience and concentrate on accommodation by the university. this matter in the interest of the their work for achieving institutional reputation of the organisation. By this goals. He did not want to take any action One fine morning, another faculty on "hearsay". He did not want to harm the member Satish Kumar with time, Hemant Kumar had also developed a feeling that all is not well in the conduct interest of any of the employees. He specialization in Operations Research wanted to observe the situation and Questions refrain from taking any hurried action. Appraisal based Decisions-making 1. Analyse the similarities between the personality characteristics and It was also felt that Arindam was interests of Arindam & Sayantini ? unable to fulfil his duties as Dean, 2. Do you think disciplinary action should have been taken against Arindam & Corporate Relations sincerely in Sayantini immediately after receiving feedback from Satish Kumar. Justify promoting Management Development your answer with reasons. Programme even though he claimed that he had very good contacts at senior levels 3. Was the reaction of Arindam & Sayantini to Sugandha's suggestion justified of management in number of business ? Comment. organisations across the country.Hemant Kumar gave periodical feedback to 4. Why did Hemant Kumar refrain from taking any immediate action on Arindam about his non-performance and hearing from Satish Kumar & Sugandha. suggested to him, not to encourage clique formation among the faculty and 5. Recommend the course of action to be taken by Hemant Kumar in this case. concentrate on the goals of the organisation and lead younger faculty met Hemant Kumar and informed him colleagues professionally. Sayantini was that Arindam should be advised to of Arindam and Sayantini. Hemant also unable to arginase a workshop which maintain distance and decorum while Kumar also came to know that Arindam's was assigned to her as a professional interacting with Sayantini. Satish also claim of working with a prestigious activity. institute at the time of interview was informed Hemant Kumar that he had also At the end of the academic year, when incorrect. He had previously worked with offered to exchange room with Sayantini Hemant Kumar was evaluating the that institute but was unemployed at the who shared in with Arindam. The performance of all the employees in the time of interview. Bhanu Pratap, proposal was turned down by her as she organisation, he found to his delight that Administrative Officer of the institution told him that she was quite comfortable all other employees had contributed met Hemant Kumar after few days and in the room with Arindam. She also towards the development of the reported that Arindam & Sayantini were added that "I have chosen to be with him organisation in general. He was left with spotted together chit-chatting all the time by choice and not by chance because he the final evaluation of Arindam & and they have not been contributing to was a very senior professor and I can Sayantini before completing the number various administrative activities learn many things from him". Hemant of options before him. Some of the assigned to them. Their behaviour in the Kumar assured him that he will keep a possible options were: he could have organisation may also affect the morale watch and see to it that proper decorum is ignored the entire situation and allow the of other people if some action is not maintained in the institution. After few two to "Let Go"; He could have taken taken in this matter. He reported that weeks, another faculty member disciplinary action against the two faculty both of them remain absent from the Sugandha Acharya with specialization in members; and he could have counselled duty for at least 2 to 3 hours every day on Marketing informed Hemant Kumar that Arindam & Sayantini regarding their the pretext of lunch. He proposed that an she had approached Sayantini with a professional misconduct. BM This case was developed by Upinder Dhar (JK Lakshmipat University,Jaipur),Shivani Agarwal (IIT,Roorkee),Seema Singh Rathore (ICG,The IIS University,Jaipur),Hitesh Chalawat (Centre for Technology Management, MPUAT, Udaipur), Nidhi Gulati (Jamia Millia Islamia, New Delhi) during the Fourth National Case Writing Workshop organized by JK Lakshmipat University,Jaipur in association with AIMS from June 8-10,2012 Business Manager 54 April 2013 This Case Analysis refers to Case Study ‘Challenges in service delivery’ published in March 13 Issue
Mihir Gosalia Assistant Manager - ISO & OHSAS, Kesari Tours Pvt Ltd., Mumbai
Case Study Analysis for ‘Challenges in service delivery’ Lacking in customer engagement culture
Comments on the conflict between not considered by MIST when they were MIST is always free to choose someone MIST & AMGT-ALFA: The first on service calls given that the FSR's had else. AMGT-ALFA, since it was their conflicting situation between MIST & to operate in Retardant temperature customer's requirement agreed to it. But AMGT-ALFA that is evident here is the conditions (650 degree centigrade) which it should have first determined whether requirement by MIST that its service is a hazardous environment. AMGT- it has those internal processes in place calls should be honoured within 24 ALFA should have ensured in its service that would meet the agreed requirements hours. AMGT-ALFA should have first agreement with MIST that while it's of the customer. It is evident from the understood the key service requirements FSR's are on duty for them, minimum case study that even after the complaint of MIST, especially those that are most regulatory standards for safety must be is received from MIST, there is a long & important and then service the complied with for them. AMGT-ALFA tedious approval process at AMGT- requirements accordingly. There was should try to make MIST understand that ALFA's end to depute the FSR. Finally delay in arranging for approval to travel its FSR's might experience different when the approval is received, valuable by air, tickets, release of tour advance, environments while on duty due to the service delivery time is lost and the FSR etc…at AMGT-ALFA's end. This added to nature of work. The nature of complaint is under pressure to make up for it as the time constraint of the FSR who was raised by MIST was at times not accurate well as report for the service call within deputed to service MIST since he was which would delay the stay of the FSR's 24 hours. This adds to the stress level of under pressure to honor the service offshore than anticipated. the FSR's who have to also work under delivery time of 24 hours. AMGT-ALFA Given all of the above, it was but hazardous conditions given the nature of should have also taken into natural that the FSR's once having gone the work. The failure to provide a healthy consideration how much time it would through the support delivery experience and safe workplace may result in take internally to depute the FSR before would resist it the next time they were increase in accidents and illnesses of the committing to 24 hours to MIST. AMGT- asked to do it unless there was an FSR's, reducetheir effectiveness and ALFA had 12 employees who had improvement in the situation somewhat. negatively impact their morale and undergone training to service the motivation. Poor working conditions support requirements of MIST. Has Why are the FSR's of AMGT-ALFA were distracting the FSR's. resisting the deputation of service AMGT-ALFA enough Field Service The FSR's were treated as casualla- Representatives (FSR's) in place to calls to MIST? Various conflicting situations exist between AMGT-ALFA & borers by MIST. The return journey ensure that the average response time for travel arrangements had to be made by technical support to MIST was 24 hours MIST. Agreed that MIST can expect that its service calls to be responded to within the FSR's themselves once their work or less considering its internal process was completed. Also sometimes, the constraints? 24 hours from any service provider, it chooses. It is their defined standard. If nature of complaint logged in by MIST Another conflicting situation was that AMGT-ALFA cannot honour it, then was not accurate which would in turn the basic safety needs of the FSR's was delay the offshore stay of the FSR than Business Manager 55 April 2013 anticipated. Given these constraints, the provide compensation that supports a organizational agility. These problems FSR's perceived that they were customer focus is causing the are likely to add cost but not value inadequately compensated for their employees of AMGT-ALFA to behave making it difficult to be successful in a efforts vis a visthe troublesome nature of as if customers are unimportant. highly competitive industry. the task. Hence natural resistance was Rewards (or the absence of them) Service delivery blueprint for built up over a period of time by the FSR's drive behaviour and motivate people AMGT-ALFA: Customer support of AMGT-ALFA to provide service to respond in certain ways. requirements should be set in support to MIST which gradually turned Strategic and Operational measurable terms to permit effective into a half-hearted approach. AMGT- initiatives which AMGT-ALFA should monitoring and performance review. ALFA tried to counter the situation by undertake: Appropriate resources must be allocated offering better financial incentives to the Some of the Strategic initiatives that to meet the customers' requirement FSR's by increasing their travel consistently. The customer support allowance. But sometimes that is not AMGT-ALFA should undertake are as follows: standards must be deployed to all the enough. If the work environment or the employees who are in contact with working conditions do not improve, then 1. AMGT-ALFA should undertake customers. The deployment must take merely offering financial incentives will initiatives to promote greater into account all key people in the not work in the long term.The failure to employee-management cooperation. response chain i.e. Marketing Dept, understand and meet customer support 2. AMGT-ALFA should modify Method & Shop Dept, HR and Finance. requirement internally by AMGT-ALFA compensation & recognition systems These standards should be one source of will make it more difficult to build to reflect customer and business information to evaluate AMGT-ALFA's relationships and customer engagement requirements. performance in meeting customer in the long term.AMGT-ALFA must 3. AMGT-ALFA should identify and support requirements. evaluate & improve the processes for analyze critical incidents in service identifying and for providing customer Senior leaders at AMGT-ALFA must support performance or quality to support to MIST to keep them current create a workforce culture that ensures a understand key problems from the with business needs and directions. consistently positive customer point of view of customers and experience and fosters customer Challenges faced by AMGT-ALFA employees and address them. engagement which is currently lacking. in motivating FSR's: 4. AMGT-ALFA should identify A systematic, integrated effort by all is 1. Employee policies & benefits: Just measurable customer support required for it. As a start, top leaders as different employee groups may have requirements (service standards) from need to ensure that the organisation's different needs for safety, different customer expectations (for example, values include a commitment to groups of employees may need timeliness, courtesy, efficiency, customer engagement and service. When different support services and benefits thoroughness, and completeness) and setting performance expectations, the top to keep them from being distracted in implement them, regularly monitor it leaders of AMGT-ALFA need to ensure their work. AMGT-ALFA has failed to and do periodic evaluation. that there is a focus on creating and identify & tailor benefits and services balancing value for customers. These 5. AMGT-ALFA should identify to the needs of its employees priorities should be considered as requirements for building especially the FSR's. This has in turn strategic planning takes place and should relationships with its customers reduced their participation and be a part of the organisation's strategic which may include factors such as performance. Suboptimum employee objectives and action plans. Plans, technical knowledge, employee performance hurts productivity, however, are not enough. To ensure that responsiveness, and various customer customer satisfaction, and the workers and leaders possess the support methods. profitability. desired traits and skills to support 6. AMGT-ALFA should look at optimising 2. Employee change management: customers, AMGT-ALFA needs to hire, operational performance and AMGT-ALFA had failed to use develop, and train its leaders and workers improving customer focus using tools effectively the existing skills and with special focus on customer. such as Lean Enterprise, ISO 9000, and abilities of its FSR's due to various There should be customer complaints Six Sigma, which can help streamline conflicting reasons as detailed above.It aggregation, analysis, and root cause work processes and reduce cycle time tried to counter measure it by offering determination that will help focus action more financial incentives & even On the operational front, on the elimination of the causes of recruiting new FSR's. But it did not micromanagement in decision making & complaints and help set priorities for help much. It failed to manage and approvals should be done away with at process and service delivery organize its employee's to accomplish AMGT-ALFA if it has to improve its improvements. There should be prompt its work, and thus meet customer and service delivery standards. Currently due and courteous resolution of complaints business needs. to micromanagement, the FSR's do not that will lead to recovery of customer seem to be engaged and the leadership 3. Performance management: confidence. AMGT-ALFA must have a seems to be sending a message that its Alignment is lacking between the mechanism for learning from complaints employees do not have the skills or ability FSR's of AMGT-ALFA and AMGT- and ensuring that the service delivery to make decisions on their own and that ALFA in terms of what is expected and owners receive the information they need micromanagement is the preferred what is rewarded which would have to improve and eliminate the causes of approach within the organisation. This otherwise sent a strong message complaints. That information should be kind of environment tends to force throughout the organisation about used to set priorities for service decision making to higher and higher what is really important. This in turn improvement that will result in overall levels in the organisation, creating leads to a lack of focus. The failure to organizational improvement of AMGT- excessive delays and working against ALFA. BM Business Manager 56 April 2013 JKLU Management conference on Innovations JK Lakshmipat University, Jaipur Honor for the session identified 21st valuation model, while suggesting the organized First National Conference century as the century of innovation and need for a new model of valuation for on “Management Innovations: shared that an innovative idea is the most IPO. Challenges and Opportunities for powerful force in the world. He Optimally-sized General Hospital Sustainable Development” during emphasized that value based innovation Projects throughout the country have February 22-23, 2013. 27 paper is the need of the hour. That innovations been proposed. presentations were made in the must lead to transparency and learning conference. culture. Factors affecting decisions of gold as an investment option were identified. The Conference was inaugurated by In plenary session-I Dr. P.K. Jain Internet usage frequency does not Padma Bhushan Prof. V.S.Vyas, Member, (Session Chair) opened the session with Economic Advisory Council to the Prime his concerns over the impact of current affect the believability of Internet Minister & Deputy Chairman, Rajasthan developments on our ecosystem. He advertisements. State Planning Board. In his inaugural highlighted that consumerism and The second technical session of the address, Prof. Vyas highlighted the need energy consumption are exploiting the conference was organized on the for sustenance and lucidly presented the environment. theme:Managing Innovations in three different perspectives/dimensions Dr. Rajiv Thakur, emphasized that the Tourism & Strategies for Sustainable of sustainable development, namely, sustainable development is a complex Development. The Session Chair and Co- Sustainability in Market Place, and dynamic concept. He identified the Chair were Dr. Navin Mathur, Professor, Sustainability at Societal Level, and reasons of complexityin the ways Dept. of Business Administration, Univ. Environmentally Sustainable sustainable development is perceived, of Rajasthan, Jaipur and Dr. Santosh Development. practiced and addressed. Dhar, Professor, Institute of Management, JK Lakshmipat University, Dr. Upinder Dhar, Vice Chancellor, Dr. Rajesh Kothari, asserted that Jaipur, respectively. JKLU and while delivering the welcome introspection is very important while address, emphasized upon the dealing with the issue of sustainable During the session, 7 research papers significance of three forces, namely development. were presented. The salient findings of technology, innovation and people (TIP), the papers were: The first technical session of the for sustainable development. Dr. Dhar Business strategies towards further stated that India's population conference was organized on the theme: Managing Innovations in Finance & sustainability feature in the vision offers it a demographic advantage over statement but are not translated into other countries and there is a need to IT for Sustainable Development. The action at the lower levels. convert this advantage into human Session Chair and Co-Chair were Dr. S.S. FDI has stimulated the growth in capital. Bhakar, Professor & Director, Prestige Institute of Management, Gwalior and different sectors in India in the post Dr. B.V. Babu, Director, IET-JKLU in Dr. Vinayak Pandey, Head - Multiple liberalization era. his opening remarks, stated that human Business Verticals, PDCOR Ltd., Jaipur, Secondary motives/ psychological race is at the crossroads.Highlighting the respectively. need of judicious use of natural needs like need for achievement, need resources, he further suggested to learn During this session, 8 research papers for Affiliation, need for Power and the use of natural resources from the were presented. The salient findings of need for Security impact the decision mother nature itself. Dr. Santosh Dhar, the papers were: making styles differently across Professor, IM-JKLU signified that Advantages of Business Process Re- industries. engineering (BPR) are not realized by sustained competitive advantage can only The second day of conference started many companies owing to employees' be achieved through continual with the second plenary session in the innovation. resistance to change. morning. The debacle of Reliance Power IPO Dr. N.P. Jain, Former Ambassador to Dr. K.B. Kothari (Session Chair) brings to fore the fallacy of the UN & EEC, Mexico & Nepal, Guest of emphasized that management education
Business Manager 57 April 2013 and training can significantly contribute HR & Marketing for Sustainable Emotional Intelligence of doctors was to various issues in Indian and global Development. The Session Chair and Co- found to be an insignificant contributor context. Chair were Dr. P.K. Gupta, Professor, to patient's satisfaction scores. Dr. Harsh Dwivedi defined sustenance Institute of Management Studies, Devi Humorous advertisements were more Ahilya University, Indore and Mr. Reno as looking beyond one-self. He stated that effective than non-humorous Raj, Assistant General Manager, Bureau the organizations have realized that they advertisements. of Investment Promotion, Govt. of can sustain only if they satisfy their Children were found to be aware of TV internal customers. Rajasthan, Jaipur, respectively. advertisement. Salient findings of the papers were: Dr. Yogeshwari Phatak elaborated It was reported that low job anxiety Nine dimensions of Balanced upon the innovations in different areas positively affect productivity. like brand management, assembly line, Freedom were identified and the Perceived organizational support and and organization structure. relationship between moral supervisory support were found to be responsibility and sustainability Dr. Geetika Kapoor mentioned that positively correlated with job sustainability is the responsibility of all. through balanced freedom was satisfaction. We need to sow seeds of sustainable reported. consumption. Corporate should evolve the In valedictory address, Dr. S.M. Seth played upon the role of engineers in the The third and the last technical combinations of innovative CSR country's progress and emphasized upon session of the conference was organized strategies to build and sustain a the need for all round development with on the theme: Managing Innovations in competitive advantage. sustainability in view. BM ISF seeks regulatory frame work for staffing industry
Indian Staffing Federation (ISF), an apex body of Staffing Companies in India and CIETT, International Confederation of Employment Agencies, appealed to the Indian government to adopt a regulatory framework which is positive and conducive to the industry today. At an international colloquium held in New Delhi, ISF has supported establishing a regulatory framework for staffing industry and reforming the existing labor law system to align it with the unique 'tripartite' feature of the flexi staffing industry through International Labor Organization (ILO) Convention 181. The colloquium was well attended by key stakeholders, senior members of the government, ILO, members of the planning commission, trade union Survey report, it becomes more viable to and secure a decent job. The Indian Staffing groups, trade bodies among other make necessary provisions, set up Federation with support from best practices delegates. guidelines to encourage contract staffing in prevalent in other CIETT member countries Inaugurating the session, Union areas, roles, industries where it can add around the world, will leverage the same to Minister for Coal, Sriprakash Jaiswal utmost value. Ratification of ILO ensure that the pie of jobs in the formal said "With the youngest working population Convention 181 can be a positive step in that sector in India increases, including contractual in the world where labour sits at the heart of direction in order to fully reap the benefits. and private employment agency services." the nation, the time has come when we Fred van Haasteren, Ciett's President, The global staffing market projects India should seize the opportunity as a nation to said, " With all eyes on India, it is crucial to be among the largest staffing countries maximize our growth potential. We need to that steps are taken to update its labour along with China, Brazil and South ensure the jobs that we create are productive regulations in line with the changing Africa.The staffing industry in developing which is vital for our growth especially in demands of India's rapidly evolving countries is standing at a very crucial sectors like manufacturing and services economy. Labour sits at the heart of India's juncture where more than 90 % of the besides agriculture." He further appreciated future growth potential. It is therefore workforce is engaged in the unorganized the efforts of ISF and CIETT in promoting critical that the India refreshes its sector with low to almost no social security. good working conditions, bringing in regulations to unlock the full potential of Global experience shows that flexi staffing unorganized work into formal jobs and at the private employment services industry." is the need of the hour which can provide the same time providing flexibility to the Rituparna Chakraborty, Vice flexible solutions to workers as well as businesses to run effectively, grow and employers. The Indian job market has produce more decent jobs." President, ISF, said, "If the Indian government creates an inclusive and shown a modest growth rate in 2013 with Mr. K Pandia Rajan President, Indian conducive regulatory framework as the public sector large-scale hiring. Staffing Federation said, "It is pertinent to prescribed in the ILO Convention 181, Therefore Ratification of ILO Convention note that India is among the top five nations private staffing companies will assist India's 181 by the Indian Government can further in flexi staffing industry but, it stands out as humongous labor market transition from contribute towards this growth and the only one where the flexi staffing the informal to the formal sector, by development with better macroeconomic industry does not have a regulatory providing the youth of India a platform that policies and implementation of labor recognition as yet. Going by the Economic enables them to become more employable market reforms. BM
Business Manager 58 April 2013 "Empowering the Nation through Women Entrepreneurship"
Indus Business Academy (IBA), Greater Noida in association with Delhi Management Association (DMA), New Delhi organized the 3rdWomen Entrepreneurship Conference on "Empowering the Nation through Women Entrepreneurship" on 21st February 2013, at Gulmohar Hall, India Habitat Center, Lodhi Road, New Delhi. This one day conference focused the spotlight on the issues/impediments which act as a road block towards successful women entrepreneurship. It also created an ethos where women can connect with one another, share best through various activities. The Chief was chaired by Mr. Raj K Pathak, practices, build business opportunities Guest, Ms. Bharti Taneja, Director, Alps Director, NSIC-DPC Small Enterprise and recognize female influence in Beauty Clinic, finally blessed all the Incubation Center. The other panelist emerging business scenario in the participants and shared her journey and were Mr. A.K.Mittal, CGM& GM , NSIC; country. her success mantra's to be successful in Mr. K.S.Rawat, AGM, SIDBI; Mr. D.A. The inaugural session started off life. She attributed her success to being Sarma, Union Bank of India; Mr. with the welcome address by Dr. Ekta confident, creative and hard working Jagannadham Thunuguntla, Strategist & Saxena, Programme Convener, Women with ample blessing's by the Almighty. Head of Research, SMC Global Securities Conference. This was followed by the The second session was based on and Ms Shakun Rai, CEO, Periot Life conference overview presented by Prof. "Socio-Economic Transformation Sciences. These speakers shared their Manas Garai, Professor-Marketing & through Rural Women Empowerment: view on "various funding options" Convener, Incubation Centre, Indus Role of CSR" chaired by Dr. Anup Kalra, available to start the business and the Business Academy, Greater Noida. The CEO, Ayurvet Research Foundation. special schemes provided by SIDBI and keynote address was delivered by Mr. Other renowned speakers were Dr. Vibha other Banks to the women entrepreneurs Manoj Mittal, General Manager, SIDBI, Dhawan, Executive Director, TERI, Ms like Credit Guarantee Scheme, CLCSS where he focused on the E2E concept i.e. Shashi Singh, Chairperson, Consortium and TUFS. entrepreneurs creating entrepreneurs. of Women Entrepreneurs of India, Mr. The final session on "Success Mantras He also shared that organizations like Niranjan Khatri, General Manager, of Legendary Women Entrepreneurs" NSIS, MOMSEMS are doing appreciable Welcomenviron Initiatives, ITC Hotels highlighted how the women work in field of mentoring women to and Ms. Indrani Sharma, Country entrepreneurs not only compete on the become successful entrepreneurs. Guest Representatives, Women Changemakers 'Business arena' but also on the 'Social of Honor, Ms. Pankaj Bhadouria, Master India. This session enlightened on how arena'. The session was moderated by Ms Chef of India shared her life experiences one can contribute to the society. It is Dolly Bhasin, Managing Director, SPH and what it took to come out as successful Corporate Social Duty not responsibility Consultants and eminent speakers like Master chef in the TV show. It was her and now government has made a policy Ms Ester Martinez, Founder & Managing passion for cooking with good heart and that 2% of the profit should be invested in Editor, People Matters Media Pvt Ltd.; Ms good intent with blessing's of God and CSR. It is all about ISR i.e. Individual Arpita Bansal, MD, Creative Nest Media support of the family which helped her to Social Responsibility we should start by Pvt Ltd.; Ms Meenal Arora, Founder achieve her dream. She also shared her our own why to wait for government and Director, SHEMFORD Futuristic Schools; plans for future. Guest of Honor, Mr. corporate. One should move from concept Ms Ishita Swaroop,Founder, 99labels.com; Arun Kumar Jha, Director General, to actions. "Each one Teach one". The Ms Shalini Vig Wadhwa, Founder & CEO, NIESBUD shared the statistics on the successful ladies Ms Sona and Ms 100 Degree Events & Entertainment and loan provided to women entrepreneurs Pramila from rural areas also shared Ms Alka Lamba,Chairperson of Go India and the role of NIESBUD in creating their entrepreneurial journey and their Foundation. more avenues for women through success stories with the audience. providing loan and training for the The session finally concluded with the successful entrepreneurship venture. The next session on "Punji ki Kunji: vote of thanks proposed by Dr. Ekta NIESBUD basic objective was also shared Money Matters" discussed the financial Saxena, Program Convener, 3rd Women which is to promote and develop Micro, issues involved in women Entrepreneurship Conference and Head- Small and Medium Enterprises including entrepreneurship and what are the Corporate Relations, Indus Business enhancement of their competitiveness technical challenges to deal with which Academy. BM
Business Manager 59 April 2013 Managing Business in Cross-Culture perspective
The book will be a useful tool in developing the key competence that individual managers and organizations require to understand and manage cultural differences and similarities.
The book seeks to develop managers negotiation, organizational behaviour, and with a global mindset-a mindset that human resource management. is open to cultural diversity and is able to integrate this diversity into The book answers questions like: why attitudes and behaviour. The did the retail giant Wal-Mart beat a numerous up-to-date examples and retreat from Germany and South Korea? original vignettes help the reader Why did Disneyland struggle for years to understand concepts and theories make a profit in its theme park in easily. The influence of culture on France? How did LG and Samsung everyday management functions like emerge as market leaders in India? communication, negotiation, Cultural adaptation is the major factor motivation, leadership, and human that contributed to these successes or resource management is explored in failures. And this book will be a useful detail. tool in developing the key competence that individual managers and This is a unique book in terms of its organizations require to understand and CROSS- content and comprehensive coverage. It is manage cultural differences and one of the few books on cross-cultural similarities. It will also help students CULTURAL management that includes an Indian learn behavioural skills and enable them perspective. This becomes critical, given to function better in a multicultural MANAGEMENT the increasing number of Indians who environment. CONCEPTS AND CASES are either working in other countries or working with other country nationals in A blend of theory and practice, Author : Shobhana India. While this book contains the most Madhavan well-known theories and models in cross- this is an ideal textbook for Publisher : cultural management, it encourages management students and students to question the existing Oxford University Press paradigms in mainstream management young practising managers and YMCA Library Building, 1 Jai textbooks, which adopt only the provides them the Singh Road, dominant Western perspective. understanding to adept to New Delhi-110 001 A blend of theory and practice, this is cross-cultural contexts.Working Price : Rs. 335/- an ideal textbook for management with people who are not 'like Website : www.oup.com students and young practising managers and provides them the understanding to us' is always challenging. adept to cross-cultural contexts. Working with people who are not 'like us' is always Beginning with the dimensions of challenging. This book will help culture, the book describes the influence managers who have to work across of culture on different management cultures to minimize conflicts and enable functions. It moves on to highlight the them to work toward creating positive significance of cross-cultural cross-cultural exchanges. management in today's corporate India, with reference to Indian companies The book is especially designed for involved in international business and postgraduate degree/diploma students of MNCs operating in India. The book also business management and practising covers the nonverbal aspects of cross- managers to succeed in global markets cultural communication in detail and and multicultural workplaces. It explains presents a comprehensive discussion on how culture impacts international cross-cultural marketing. BM management in the areas of communication,
Business Manager 60 April 2013 The Study & Practice of OB
The book explores the core concepts of organizational behaviour (OB) and explains them with the help of numerous examples and case studies.
The latest revised editon of the book Readers will find it useful for the diverse continues to balance theory and areas covered. Human behaviour in the application well. The book preserves times of change has been its focus in all the aspects that have made it a relevant sections. popular text for students of management -specifically its lucid This edition includes new features style and a process-oriented approach. such as self-assessment tools and sidebars as well as new examples to appeal to While several good textbooks on OB students who may otherwise find this are available from the West, mainly from subject tedious due to its theoretical the USA, they do not address some foundation. The subject matter is now relevant problems of developing presented in an even better easy-to- countries, particularly India. comprehend form using sidebars to Furthermore, the examples cited in these recapitulate key concepts, and new books are from Western companies and figures and tables. Self-assessment tools organizations. Organizations in the have been introduced to familiarize Udai Pareek’s developing world are facing several students with analysis of various challenges today. The young managers theories that form the basis of OB. The Understanding who join organizations in India wonder concepts have been explained by applying how they can remain rooted in their own them to a large number of examples both Organizational culture, while helping their in the text and in the form of exhibits. organizations become global. The book explores the core concepts of Behaviour It is an attempt to respond to a long- organizational behaviour (OB) and Revised and Updated by : standing need for a textbook written explains them with the help of numerous Sushama Khanna primarily from the perspective of a third- examples and case studies. It provides in- world country, and particularly, in the depth coverage of the issues and Publisher : India context. Managers as well as would- challenges faced by Indian organizations Oxford University Press be managers of developing countries in the areas of traditional culture and YMCA Library Building, would also find this book useful as it modern management. The edition 1 Jai Singh Road, would help in preparing them to meet the continues the accepted process approach challenges faced by organizations. to understand OB. It emphasizes on the New Delhi-110 001 role of personality and leadership styles, Price : Rs. 485/- The third edition of Understanding emotional intelligence, and the roles and Organizational Behaviour is a Website : www.oup.com functions of the individual, the team, and comprehensive textbook specially the organization. Various essential designed to meet the needs of intelligence, and the culture and management students. The book has been organizations, managing work extensively revised to include new topics, motivation, preventing and managing examples, and real-life illustrations. conflicts in organizations, which form the The book continues to balance theory core of interventions at organizations and application well. The book preserves level, have been dealt with in detail. all the aspects that have made it a popular Besides students, practising managers text for students of management- will also find this book highly useful for specifically its lucid style and a process- its application of theoretical concepts oriented approach. The book has explained through numerous examples provided coverage to individual, group, and case studies. BM and organizational aspects of OB.
Business Manager 61 April 2013 Law for all...
Publisher : Universal Law Publishing Co. Pvt. Ltd., C-FF-1A, Dilkhush Industrial Estate, (Near Azadpur Metro Station) G.T. Karnal Road, Delhi-110 033 Price : Rs. 395/- Website: www.unilawbooks.com
The legal system of a country is a part proper reasoning of what is good and of the social system and reflects the useful to the society and what is not good social, political, economic and cultural or is harmful to any individual or to a characteristics of that society. A legal roup of people or to society and system of a nation consists of certain accordingly, certain rules are framed. basic principles and values (largely State, in order to maintain peace and outlined by the Constitution), a set of order in the society, formulates rules of operational norms including rights and conduct to be followed by the people. duties of citizens spelt out in the laws- These sets of rules and regulations of central, state and local, institutional human conduct are called "Law". structure for the enforcement of laws and Every citizen must know the laws of a cadre of legal personnel endowed with counry to understand rights and the responsibility of administering the obligations. system. The author in this book has Law for the The Indian legal system bears the successfully summareged various laws be Layman imprints of the dictats of the ancient it civil, criminal, domestic, labour which Hindu Law-givers, the Muslim rules and effects our lives every day. Author : Manish Arora the need based system developed by the British before independence. The book is far from legal jargons and written keeping in mind the layman. It Law is the comment of society and one goes through the book, he gets the essential medium of change in fair idea of our all important laws, that understanding social values. Law is the are useful to him. BM Trade Unions Law
Publisher : Law Publishing House, 39, Sheo Charan Lal Road, Allahabad-211 003 Price : Rs. 1250/- Website : www.lphindia.com
The Trade Unions Act, 1926 is one of country relating to Trade Unions on a the most important and relevant regular basis. That is why the book is legislations in the field of labour revised with the latest case laws to keep laws in this country. The provisions readers abreast of the fast evolving law in COMMENTARIES ON dealing with Trade Unions and the this field. Authors have therefore came Rules and Regulations governing out with the book containing cases till TRADE them are not only useful but June 2012, as well as State Amendments, absolutely necessary for anyone who Rules and Regulations. UNIONS ACT, deals with employer employee This book will be extremely useful not 1926 relations in this country. only to the Bar and the Bench but also to Due to the nature of their activities, Employer Organisations, Trade Unions, Author : V.K. Kharbanda there are a large number of cases being Labour Consultants and all those dealing & Vipul Kharbanda filed and decided by the Courts of this with labour issues. BM
Business Manager 62 April 2013 Knowing Compensation Law
Publisher : Universal Law Publishing Co. Pvt. Ltd., C-FF-1A, Dilkhush Industrial Estate, (Near Azadpur Metro Station) G.T. Karnal Road, Delhi-110 033 Price : Rs. 425/-, Website: www.unilawbooks.com The Workmen's Compensation Act of the calculation of compensation would be 1923 now Employees' Compensation @Rs. 8,000 per month. Act was a turning point in the The provisions of the Act in the book history of labour jurisprudence and have not only been explained but rations trade union movement. This was the of the relevant case law are also given. earliest national legislation to Besides that, emphasis has bee laid on provide compensation to workmen by procedure for calculation of their employers for injury which compensation with illustration which could be suffered by the workmen as will be helpful for the readers to calculate a result of an accident during the Practical Guide to the compensation. The full Act and the course of employment. Rules there to have also been given. Employee’s For a long, the scope of the Act Seventh edition of the book updates remained restricted since only the the law based on recent cases and the Compensation employees, who were drawing wages upto book will, as usual, continue to enrich the a certain limit, were covered but in 2009, knowledge and understanding, HRD Act & Rules the same has been done away by the executives, the entrepreneurs, the labour Author : H.L. Kumar legislature. Now, irrespective of the wage advisers, trade union leaders and the or salary,all the employees, as prescribed consultants of the Labour Laws. BM in the Act, have been covered except that Law of Transfer Understanding Publisher : Law Publishing House, 39, Sheo Charan Lal Road, Allahabad-211 003, Price : Rs. 1250/- Website : www.lphindia.com Gratuity The book having come from justice Rajesh Tandon who has rich experience in the Service Jurisprudence would undoubtedly be Publisher : Universal Law Publishing Co. Pvt. Ltd., C-FF-1A, Dilkhush a great help to the students of administrative law, legal Industrial Estate, (Near Azadpur Metro Station) G.T. Karnal Road, fraternity as also the Judges. The various aspects covering this Delhi-110 033, Price : Rs. 295/-‡ Website: www.unilawbooks.com complex subject have been, very systematically,handled making neat classification therein. The contents of the book have been Gratuity is a valuable right of an employee and, as such, for divided in Thirty one Chapters. To make the book more useful forfeiture/withholding of gratuity by an employer, has been cases relating to Transfer referred in All India Reporter, All given in minute details lest any eligible employee is deprived of India Cases and all Important Labour Journals relating to his legal right. It is, however, a different matter that in case the Supreme Court and various High Courts have been elaborately employee is guilty of certain misconduct, as specified, he will discussed. Various aspects relating to Transfer such as Transfer lose the gratuity. Accordingly, this book will also warn the in Public Interests, Rights and Allowances on Transfer, Power of employees that they should refrain from committing any such Court in Cases of Transfer, Tribunal's Power, Transfer as misconduct which would justify denial of gratuity to them. Punishment, Transfer on Promotion, Validity of Transfer, The table of cases will tell the readers that many more cases, Malafide and Arbitrary Transfer, which have risen during Transfer on Consent, Injunction in interregnum of the earlier edition, Case of Transfer, etc. have been have been given in brief details exhaustively dealt with. This book which will enhance the utility of has been enriched with latest Case this book. The ratio of the decided Laws. Every aspect concerning cases is given briefly instead of Transfer has been exhaustive swallowing the volume. BM explained. Efforts have been made to make the book exhaustive and self explanatory. BM Practical Guide to CASES AND MATERIALS ON Payment of Gratuity TRANSFER Act & Rules Author : Justice Rajesh Tandon Author : H.L. Kumar
Business Manager 63 April 2013 Labour, HR & Industrial Relations etc.
Higher salary hike for Workers' strike hits Bosch's talent only : study Bangalore plant The annual salary increment survey by global human resource consulting Aon Hewitt, The employees of auto component maker Bosch have gone on strike at its released recently quantifies this growing gap Bangalore plant. Which the company has termed as illegal. In a press release between high-flyers and the rest for the first Bosch India said, "The employee union of Bosch Limited - MEA (MICO time ever. Key talent will get an average 14.1% Employee's Association) has resorted to an illegal 'Tool Down' strike at the pay hike this year while average increments Bosch Bangalore Plant from March 7." This action was triggered following the across the board will be only 10.3%. These suspension of an employee by the company. According to Bosch, some average numbers, however, mask the sharp employees deployed in a new production line were unwilling to meet basic differentiation that is now creeping in between production requirements in accordance with the standards of industrial India Inc's very best executives and all the rest. engineering. At Ashok Leyland, for example, junior level top performers will get 25% increments while If further said that over the past three months, the workmen adopted a "go the rest will get only 10% in the 2013 increment slow" approach producing significantly lower than earlier attained levels. cycle. Compensation experts say that top talent After much deliberation, disciplinary action resulting in suspension of one can get increments as high as 15-18% or even of the identified workmen was taken. Opposing this move, the MEA has more this year while lesser performers will get decided to protest this suspension without any advance notice through an only a 0-4%. illegal " tool down " strike. The Bosch Management is in constant touch with This sharp divide is emerging in a year when average increments, according to Aon MEA and the Labour Commissioner's office to restore normalcy at the Hewitt data, will be among the lowest in recent earliest without any further loss of production. memory, a clear sign that employers are placing a premium on their best performing execs. "So far, most companies only spoke about pay for performance," says Muninder Anand, director- information solutions, at consulting Women to go long way to firm Mercer. "Now, it is actually coming into play." get top positions : study Adds K Sudarshan, managing partner, EMA Partners: "Differentiation is key. One needs to While women continue to make up a small percentage of the differentiate between those who are good and senior leadership in organizations globally, Indian companies are those who have potential to grow further." doing much worse in terms of advancing female professionals to Companies in sectors that are doing well and top leadership roles, says an unreleased report by a global HR in sectors that aren't are both leaning towards consulting firm. Women leaders hold only 5% or at times even less rewarding outliers more. of the top 100 senior roles in half of the Indian companies Says K Ramkumar, executive director surveyed by Mercer where only 11% organizations say they have human resources, customer service & more than 30% women in the top deck. The survey covered 55 operations from ICICI Bank . "The business companies operating in India and 663 in Asia-pacific. On a positive environment has been challenging and any note, the report also pointed out that 64% of Indian firms say they entity incurring a wage cost of over 10% could have no barriers preventing women from advancing to senior be termed as being adventurous," Within this roles. constraint, the bank will reward better performers more than the rest. Among those who acknowledged barriers to female "We have given out a much higher increment advancement, only 3% say bias on the part of the managers this year because you need to keep your flock (compared to 15% of organizations in the Asia-pacific region) was of best performers from being poached," says a reason for women's low representation at the top. On the other Umesh Dhal, VP, HR and MS, LG India. The hand, 19% of organizations in India see managers' unwillingness company is targeting a growth rate of 20% for to take a risk on a non-traditional candidate as a major barrier for 2013. Adds A Sudhakar, senior executive the development of women into senior leaders. Of late, Indian director- HR, Dabur India: "The company is organizations have seen a massive drive to push for gender doing well and so we will take care of our best diversity with a focus on inducting more women in critical roles performers." Videocon Industries CMD and on company boards. In fact, the stress is so much that CEOs Venugopal Dhoot says that the top 30% and top leaders are being held accountable for promoting and performers in the group will be paid a 20% mentoring female talent. hike this year compared to 15% last year. The Around 14% of companies blamed women's leadership styles average increments, on the other hand, will and their unwillingness to promote themselves as one of the remain the same as last year at 12%. causes for their stagnation in the company hierarchy. "India Aon Hewitt says that with salary budgets continues to be way behind even when compared to the rest of shrinking, organisations are creating sharp Asia and numbers dip further when we consider only the differentiation in salary increases between boardrooms. While the issue has been long established, what their key talent and the rest of the population. remains to be seen is a discernible impact of all the gender Over the years, this gap is widening. The inclusivity initiatives and policies on the ground," says Nishchae differentiation is likely to happen more at the Suri, MD Mercer India. Vodafone India has started an executive senior and top levels, compensation experts committee level mentorship programme for high potential women conclude. in the middle management to propel them to the top spot.
Business Manager 64 April 2013