That which has intellect and emotion by Chinmoy Sarkar

Editorâ&#x20AC;&#x2122;s Note

Guru - Shishya equation n the present unprecedented volatility of business environment the need to develop future leaders possessing a variety of diverse capabilities to handle tomorrow issues has gained importance.To fulfill the need through various approaches, mentoring intervention is one. It is unfortunate that in many Indian organisations either there has been a lack of focus on it or it is misplaced with coaching at work place. The question comes; do organisations really understand this function and ready to take advantage out of it?

Though, there is silver line difference and much similarity between coaching and mentoring, the later is long term & more relational involving emotional bonding. It is something more than one learns in coaching. It is a journey from learning functional skills to develop a positive mental attitude, enhance personal aptitude and getting inspiration - thus achieving holistic development. It is also targeted to psychological function. It is hand holding. It is like keeping the mentee under wings. Mentoring is somewhere on a higher pedal than coaching. Placing a well structured mentoring program in the organisations where now flat structures are favoured, it is indeed a challenge for leaders to don the mentorship mantle in addition to their existing roles. Finding a mentor, making a match and ensuring that program goes well is another tough challenge, HR faces in the organization. It is not only knowledge and skills transferring program from senior to junior but the experience - the application of that knowledge is the most important component where mentor can illustrate how specific learning transfers to real life experiences at work place. Mentor should have tremendous power to mould the thought process of the mentee to develop personal as well as functional competencies. Every leader in the organization has to have mentorship qualities. It is basically a C.E.O. driven HR initiative. We need to ask if our organization is ready for mentorship because nothing best can be achieved in terms of career development plan of talented employees and leadership qualities except through mentoring intervention. What is required is to understand and accept this function in right perspective. This issue cover feature is about understanding the DNA of this initiative, importance, issues and next level of mentoring. Happy Reading!

Anil Kaushik

Readers Response

Contemporary Cover Story on ‘creating value through HR’ has been very lucidly focused on a burning issue. The earlier the better organisations understand the importance of Human power not in terms of words but spirit also. The problem is that we talk too much & too high about our people but when it comes to ground zero reality, it is the one only who is treated like commodity. All efforts should be made towards developing our employees in a culture and environment that motivates them to deliver true value to business and brand as a whole. It will happen only when employees view their work something more than merely selling their knowledge and functional skills for salary. HR has to step in here to change this mind set and bring transformation. It is not only HR but all employees should view the stake holders from an unique and powerful prespective. A.N. Mohanty, Mumbai

Diligent work March issue has come out very well and is evidence of much diligent work. I wish you a long and impactful future. Dr. Vinayshil Gautam, New Delhi

Cognitive Really a wonderful cover story. Read twice. It has covered all related aspects. Experts views are insightful and thought provoking. Especially Tanvi Gautam’s writing is cognitive. Her perception and thought clarity compels to cogitate . I felt like reading again and again. It has really come out as a collectors issue. What has been the speciality of not only this cover storybut the whole issue is the simple to understand language used by authors. I got connected with every article of the magazine. My all best wishes to your team. Hope every forthcoming issue will act as a guide and hand book for managers, students and professionals alike. V.M. Patil, Aurangabad

Comprehensive Compliments on placing such a rich contents magzine. It empowers managers like me with practical tips on managing the workforce which is a hard pressed need of

today. The various sections of the magazine comprehensively give me a glimpse of all that require to meet HR challenges. Book review is very interesting column which helps professionals to get to know about new books. Mridula Roy, Gurgaon

Supari Trainer D.N.B. Singh has very candidly sketched the skeleton of training business. I fully agree with his bold and true assesment. It is trainer who has to take the responsibility to clean up the mess. Unless HR is capable of putting in place a mechanism of measuring the transfer of learning through training, it will be a HR betrayal. V.L. Murthy, Ahemdabad

Mature Contents It just happened to visit your site. I could not restrain myself from requesting you to send a trial copy. Very promptly I got a response and got the copy too. It is credible. A magzine with such mature contents away from glittering colours confusion. The sheer range of isues covered by knowledgeable professionals is amazing. I am at fag end of the professional career but this magzine has inspired me to work with fresh thoughts. Keep up this good work. Our profession has never got such a good magzine. V.K. Gupta, Noida

Need to move in In March issue, the article 'Moving to corner cabin' is worth reading. I often view that it is the responsibility of a HR head to practice 5R concept, viz. resourcing, recruiting, retaining, retraining and restructuring. HR has full productivity anytime but its efficiency goes futile if retention is not addressed. Many employee issues are bosssubordinate related and appear latent in every company. Some issues only reach the HR desk while others dampen. Cabin or open cubicle, wherever he sits, it's time to restructure the role of HR in organisations because what is spoken high of HR is not experienced in reality. Dr. V.R.K. Prasad was formerly the head of ICFAI University press. It's nice to read his article after a long time. S.Chandrasekar, Chennai

Readers are invited to comment on articles published in BM through email at : bmalwar@yahoo.com, bmalwar@gmail.com 2

Business Manager

April 2012

Inside

pg.

April 2012

Vol. 14 No. 10 Chief Editor ANIL KAUSHIK Associate Editor Anjana Anil

With opening essay by Dr. C.N.Daftuar on the subject, Aparna Sharma, Dr. Tanvi Gautam, Poonam Sharma, Rohit Rajput & Dr. A.Jagan Mohan Reddy unfold hidden truths of this instrument by sharing their experience and explain the trends and dimensions...

Hon'y Editorial Board Dr. T.V. Rao, Dr. Rajen Mehrotra, Dr. V.P. Singh, H. L. Kumar DELHI : F- 482,Vikaspuri, New Delhi-18 GHAZIABAD : A - 39, Lohia Nagar, Naya Ghaziabad (UP) Hon'y Co-ordinators Dr. D.N. Singh- Ahmedabad dinanath.singh@cadilapharma.co.in

A.S. Sharma - Gurgaon assharma@jurishr.com

Pankaj Pradeep- Pune Pankaj.Pradeep@fiapl.com

Mihir Gosalia- Mumbai mihir@mihirgosalia.com

Indranil Banerjee- Kolkata indranil.hr@gmail.com

Owned, Published and Printed by Anil Kaushik at Sun Prints, Ganpati Tower, Nangli Circle, Alwar - 301001 and Published From B138, Ambedkar Nagar, Alwar - 301001 ( Raj.) India Editor : Anil Kaushik

Dr. C.N Daftuar

Dr. A.Jagan Mohan Reddy

What makes you a Mentor? Mentor- Protégés in Hindu Mythology

The views expressed in the articles published in Business Manager are those of the authors only and not of the Publisher/Editor necessarily. ã Business Manager

Experts’ View

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. Aparna Sharma Annual Subscription 900/- through DD (by ordinary Book-Post) (by Courier 1140/-) favouring Business Manager ( Please add 40/- to outstation Cheques) may be sent to: B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) India, Ph : 91-144 - 2372022 www.businessmanager.co.in E-mail : bmalwar@yahoo.com, bmalwar@gmail.com Published on 1st of Every Month

Dr.Tanvi Gautam

Poonam Sharma

Rohit Rajput

Making Mentoring Memorable Mentoring 2.0: Taking mentoring to the next level Being patient & building trust... A Process of choice & act of volition.. Business Manager

April 2012

Inside

Workforce Planning For Perfect Tomorrow

pg.

Workforce Planning is a tool which provides management with an opportunity to anticipate the future events before hand and plan accordingly, rather than getting surprised by it at the time when these events actually crops up.Therefore, it should certainly be given the necessary attention well on time.

An article by Deepti Pande.

HRâ&#x20AC;&#x2122;s Next : Talent, Operation & Event Management

pg.

That which has intellect and emotion Surrogate HR creates a 'minuscule' space in the timespace dimension where mind receives diverse experiences, feelings and emotions beyond intellectâ&#x20AC;Ś By Chinmoy Sarkar

An article by P.B.S. KUMAR.

Now a days there is an immense pressure on employers for more climate-friendly products & services. A relevant focus should be placed on jobs and organizational design. HR can work collaboratively with the employees.

An article by Dr. Jaya Bhalla.

Trade Unions : Guardians of labour aristocracy

pg.

The present scenario of Entrepreneurs are looking HR world always be on T.O.E. that is Talent, Operation and Event Management these are the key aspects to develop the productivity in the organizational culture .

Corporates towards Green Era pg.

Surrogate HR

Govt. Notifications

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Helpline Labour Problems & Solutions Questions by readers on variety of problems they face at work and answers by Anil Kaushik Chief Editor. Look at it. These may also be of some help to you.

An article by H.L. Kumar.

Of Trust Deficit

pg.

In service jurisprudence if the event of loss of confidence has occurred, no measures can build it again or be regained it. Although in other fields of relationship, we talk of "confidence building measures".

An article by P.C. Chaturvedi.

Event Report 7th International Conference on

pg.

IT Applications and Management

Case Study Sustainability in Competitive Times pg. 4

Business Manager

The case traces the success story of PIP and highlights its growth from a small domestic player to an international player. Changing micro environment, Government policies, and competition and growth opportunities led the company to go into new sectors of turnkey manufacturing projects in a planned manner.The case gives an overview of change management, strategic decision making, market adaptation, project management and innovation. April 2012

pg.

Judgments Latest from the Courts

Latest verdicts from different High Courts and Supreme Court effecting employer employee relations.

HR News

pg.

Deepti Pande

Workforce Planning is a tool which provides management with an opportunity to anticipate the future events before hand and plan accordingly, rather than getting surprised by it at the time when these events actually crops up. Therefore, it should certainly be given the necessary attention well on time.

Workforce Planning For Perfect Tomorrow

orkforce planning (WFP) proves to be a valuable assistance while deploying the right employee at the right place. It advocates building long term strategies for acquiring, developing and retaining skilled, committed and well motivated talent to achieve programmed organizational goals. There are some sets of questions which need answers while moving forward with WFP. A few of them are: What are our future business needs (goal)? Given the work plan, how will we attain that? Do we have enough skill sets? What other skill sets do we require? The answers to the above mentioned questions provide a base for building the long term strategies for workforce planning. An organization cannot effectuate Workforce Planning in a day. Rather it is a group effort which requires several days of extensive planning. It requires managers to gather variety of relevant information from different intrinsic and extrinsic sources. In fact, effectiveness of this exercise highly depends upon the reliability of the information sources and accuracy of the information. It also requires ongoing review and readjustments, if required. Therefore, while developing a workforce plan there is an extensive involvement of managers, employees and stakeholders to let them get educated and prepared about the plans and its future impacts. Involving people proves to be an important highlight of WFP as it promotes: Stakeholders' awareness and attention Reinforced participation Stimulating stakeholders' thought process in the direction of the plan Provoking maximum idea generation Feeling of synergy, ownership and accountability Stakeholders' approvals, disagreement and proposals

In today's employee oriented corporate culture, it is very much apparent that employees' agility, skills flexibility, moral and attitudes are directly proportional to organizational productivity and profitability.

Employee engagement should be the backbone of any effective planning process for evading the disastrous consequences of planning failure. In the words of Dr. William Cohen (Lessons from Peter Drucker): "An Engaged worker is one who is committed to contribute to the organization and is willing to exert extraordinary effort in accomplishing tasks important to the achievement of organizational goals." Business Manager

April 2012

Workforce Planning For Perfect Tomorrow

PROCESS 1. ANALYZING THE STRATEGIC DIRECTION 2. HUMAN CAPITAL OR WORKFORCE ANALYSIS 3. STRATEGIZING AND IMPLEMENTING 4. EVALUATING AND MONITORING Workforce planning does not have a "universally accepted" model. All organizations have their own WFP models which is more or less alike except their changed terminologies. All models end up comprehensively in identifying the competency gaps or surplus by comparing the present workforce competence (expertise) and forecasting the competencies needed in future. Thereafter the management plans accordingly to build up the workforce required for the future project, making sure that the objective of their respective workforce planning model is met. WFP not only ensures that the organization at all times has right number of people but also that: a. Valuable skills and talent resides within the organization for a long time. b. The organization continues to focus on recruiting, developing and retaining such talent in future.

Why is Workforce planning pivotal? Productive employees are the key assets owned by any organization and therefore it is a major requirement to align their productivity to the organization's strategic goals for achieving maximum returns. Planning for the workforce acts in the same way as lubrication works for a machine. Like a machine gets jammed when it is not properly oiled, similarly an organization and its success can get wedged and stuck with the lack of proper planning. Workforce planning works as a lubricator for the smooth functioning of the organization. It is a systematic process that links the human resources with the goals and strategies of the organization. It demands the analysis of the current workforce, apprehending the external and internal business environment and aligning the former with the later keeping in mind the employees' skills and talent. It also helps in ensuring that the organization possesses agile and capable workforce even in future, hence avoiding business risks due to insufficient and unskilled talent. WFP is a methodological and integrated longterm process that is developed keeping in mind the business goals. Senior executives emphasize WFP just to pre-plan for increasing the firm's viability in the market and reducing overheads so that it can sustain in the present or future economic certainties as well as breakdowns. By making a workforce plan, they also try to make sure that the vacancies are not left ignored for a longer period of time. In addition, planning also helps in framing a clear picture of the future organizational expenditure as a result of 6

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restructuring, recruiting, training and development, therefore making it easier for the management to make decisions pertaining to workforce that are based on organization mission, vision, budgets and strategies.

Pre-requisites for WFP Any organizational planning is only effective if it gets a favorable environment for its development and execution. Similarly, there are certain nuts and bolts for the successful development of workforce plan and its effective implementation. Some of them are: 1. Top Management commitment 2. Management support 3. Continuous motivation 4. Professional approach 5. Effective documentation 6. Effective communication and co-ordination 7. Role clarity of the people involved 8. Availability of required resources 9. Expert's Feedback and control 10. Shared Accountability at all levels of management

Workforce Planning- It's Process The overall idea behind the development and implementation of a workforce plan is to take the strategic thinking to a higher level where it can be transformed into tangible action plans. These plans can then be materialized for improved organizational growth, training processes and strengthened workforce for timely accomplishment of the set targets and goals. Although WFP (Workforce Planning) models of different organizations vary as per the respective organizational needs, but still the process is more or less alike. In general, all models of WFP include the following steps: 1. Analyzing the strategic direction: The first step of WFP is very much similar to a strategic planning process. It works like a roadmap for reaching the desired destination. It requires engaging the organizational leaders to brainstorm the strategies, goals, mission and vision of the organization and the skill sets required for the achieving the same. It demands for identifying those business operations that requires extensive human capital involvement. Figuring this out is necessary in order to understand the amount of workforce needed in future and the ways to develop their required skills. Along with the internal environment, managers are also required to understand the political, legislative and economic environment in

Workforce Planning For Perfect Tomorrow

It is an underlying fact that the salaries and benefits given to the employees contribute a significant portion of the budgetary allocation of the organization.Therefore, for achieving maximum returns, effective recruitment, proper induction, training and retention of the real talent is a must. Also, it is important to judiciously place the employee(s) at the right place as per need. which the organization has to function. Also, it expects the managers to be aware of the time limits that the management has to adhere for accomplishing the targets. For this, they are required to schedule a time frame and identify up to what extent it is flexible or inflexible. Precisely, this step gives answers to the strategic questions like: a. Where is the organization heading towards? b. How do the organizational leaders plan to reach there? c. Do the leaders have right resources for attaining the desired targets? d. If not, then how are they planning to acquire those needed resources? One of the main ideas of going through this particular episode is to make sure that the organization owns substantial resources to accomplish its mission and goals to the highest possible level. There are majorly two prerequisites in undergoing this phase: a. All the processes involved should be welldocumented, systematic and properly evaluated. b. The senior leaders should be engaged for providing enlightenment on the strategies and goals to the core planning team. 2. Human Capital or Workforce analysis: Workforce analysis incorporates analyzing the workforce inventory that currently exist and to forecast those which are needed in future. This analysis should be based upon the business functions and roles that have been identified in the first step. A very practical approach towards figuring it out is to do a Demand analysis, Supply analysis and subsequently, a Gap Analysis. Demand analysis identifies the anticipated workloads, future opportunities and environmental factors. It helps in: a. Identifying the customers' future expectations. b. Figuring out the basic characteristics of the existing and upcoming jobs. c. Identifying the amount of workforce that these jobs demand. d. Listing the current vacancies and the KSA's (Knowledge, Skills and Abilities) required for filling them up. e. Making proper Job Description and Job Specification. Supply analysis is the identification of the existing human capital to satisfy the demand. This analysis is done to evaluate the skills, abilities and talent that prevail in the existing workforce. It also incorporates determining the prospective employee turnover rate based upon the previous years' data and trends. It generally involves: a. Figuring out the current and future workforce pool.

b. Creating a profile of the employees at each organizational level. c. Employees' demographics. d. Identifying employee turnover rate and retirements. e. Identifying those resources that can be outsourced. Gap Analysis focuses on the discrepancy between the demand and the supply. It can be a Gap or a Surplus between the targeted and the real. It specifically does three kinds of analysis: a. Identifying the gap i.e. workforce and their skills which are required in comparison to the present supply. In other words, figuring out the number of employees, skills and abilities required over and above the present workforce. b. Identifying the surplus i.e. those excess skills which are not needed and requires needful action. In other words, identifying those skills which are extra and more than the required number. c. Identifying the areas where senior management interference is required for accomplishing the goals. It also attempts to furnish the answers to the following questions: a. Which new roles are required? b. What new skills are required for performing those roles? c. How many employees possessing those skills are required? d. How many leaders are required? In this stage of WFP, there is a great need for accumulating and documenting the relevant information from the various sources of the organization. The effectiveness of this analysis highly depends upon two major factors. First, that the information is true and the sources are reliable, and secondly, that the long term predictions made by the workforce analysts are fairly accurate. If these two conditions are fulfilled, only then this analytical phase of the WFP can be considered as successful. 3. Strategizing and Implementing: Once the gaps in the competencies are recognized, the next step is to make strategies towards filling those gaps. These gaps can be filled by the means of devising programs, policies and actions addressing the skill shortage or surplus. It works in two ways. First, it addresses those skills which are short and needs to be acquired by different ways like recruiting, succession planning, training, or outsourcing. Secondly, making policies to disengage the surplus skills or employees that are redundant and no longer required in the organization. This can be done by reducing the number of employees either by terminating, attrition, job sharing etc. It is important to take care of the gaps well on time Business Manager

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Workforce Planning For Perfect Tomorrow

before it becomes a major impediment for the smooth functioning of the organization. One more important point to be taken care of is that the policies and the programs made should be reviewed, validated and approved by the senior management. After recognizing the measures for dealing with the shortage or surplus, these policies and procedures needs to be implemented effectively. It should be well communicated and explained to the relevant staff. Effective communication is the key for an accurate interpretation of the plan by the staff members. Additionally, the time frame associated with the accomplishment of the targets should also be well elucidated to the employees. It is to be taken into consideration that any employee will automatically be interested in adopting new policies and procedure if he understands the benefits related to the improved policies. If the employee understands that how the organization will perform better if the advanced policies and plans are adopted, they definitely will accept that change enthusiastically. Therefore, it is really necessary for the management to motivate the employees by making them understand the underlying advantages of adopting new plans and procedures. 4. Evaluating and Monitoring: The final and imperative phase in the development and implementation of the Workforce Plan is the postimplementation evaluation and assessment of its positive and negative repercussions. A team of specialist should be assigned for monitoring the aftermath of the implementation. These experts also provide continuous feedback on any further improvements, if required, in the strategies or its execution. There should be a set time frame in which the plan should frequently be reviewed biannually or annually, whatever is suitable. Setting benchmarks is also a good idea for keeping a continuous check on the performance of the plan and to acknowledge the difference. Monitoring the plan after implementation is a crucial component of WFP to ensure the non-occurrence of any unanticipated event which can be detrimental to the productiveness of the overall plan and subsequently the welfare of the organization.

Workforce Planning- Examples from Corporate Oracle's Hyperion Workforce Planning We all know by now that planning and budgeting is one of the most time and resource taking process. It involves manual interventions and circulation of numerous spreadsheets across business. Moreover at the time of any unexpected change in the midway of the planning process, extensive rework gets on the nerves of the staff involved. To evade this muddle, Oracle introduced Oracle's Hyperion Workforce Planning, software that helps streamlining the enterprise wide planning and budgeting process and eliminating the dependency on spreadsheets. It is a Web and

Microsoft Office (Excel, PowerPoint, Word and Outlook) based planning and forecasting tool which integrates the strategic and financial planning process. It caters to all workforce planning requirements of the business and has pre-fabricated functions that are ready to use. This software aims at simplifying the planning process involved in enterprise budgeting like head count, salary, compensation, overtime etc. It makes the planning of workforce and related expenses much faster and easier, improves forecast accuracy, shortens the planning cycle thereby reducing the manual error and time consumed.

IBM-WEO (Workforce Evolution and Optimization) According to IBM, efficient workforce management is a fundamental towards streamlining the operations and diminishing the costs involved in it. IBM believes that in today's global competitive market there is a growing need of the tools to forecast workforce demand and supply, addressing the skill gaps/surplus, workforce evolution and strategic planning. For this purpose, IBM has developed a methodology IBM Workforce Evolution and Optimization (WEO). This methodology analyses the firm's historical as well as present workforce dynamics including activities like hiring, exits, promotions, transfers etc. thereby facilitating in forecasting the future workforce requirements based upon those trends, using the probability calculations. Moreover, it assists the firm in making decisions pertaining to staffing and integrates those with its business objectives. It provides answers to all the possible "what-ifs" and extends guidance in making strategic decisions.

IBM Optimatch IBM has also developed a tool IBM Optimatch which is specifically designed to match the requirements of a given job to the experience and skill sets of a prospective candidate. IBM also used this tool successfully in one of its internal unit. This tool can handle hundreds of jobs and candidates at a time and can match optimally even if the data in the resume or job description is highly unstructured. Workforce Planning (WFP) is unarguably one of the most important episodes that any organization undergoes and is thought upon will all seriousness even by the most successful organizations of the present times. Companies those who fail to develop and implement proper workforce plans openly projects themselves to a risk of organizational collapse due to a lackadaisical and confused workforce. Investing resources on employees and planning for them certainly proves to be a judicious decision on the part of the organization which delivers tremendous returns in the future. Although workforce planning is a little meticulous and a time taking process, but looking at the advantages that it rewards, it definitely deserves the required attention. BM

References: 1. Turner, Paul (2002) "HR Forecasting and Planning", London: CIPD Enterprise Ltd. 2. Rothwell, J. William and Kazanas, H.C. (2003) "Planning and Managing Human Resource- Strategic Planning for Personnel Management". 2nd Ed. Massachusetts: Human Resource Development Press, Inc. 3. Vance, M. Charles and Yongsun, Paik (2011) "Managing a Global Workforce-Challenges and Opportunities in International Human Resource Management". 2nd Ed. New York: M.E Sharp, Inc. 8

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P.B.S. KUMAR Manager- HR, Arani Agro Oil Industries Ltd., Kakinada

HRâ&#x20AC;&#x2122;s Next : Talent, Operation & Event Management The present scenario of Entrepreneurs are looking HR world always be on T.O.E. that is Talent, Operation and Event Management these are the key aspects to develop the productivity in the organizational culture .

TALENT Some people say Talent is god's gift for a person. A person is said to be talented if he possess awesome ability in a particular activity or field. Every one is talented in one or another way. Nourishing the talent and utilizing it to the best is a challenge. Talent levels will vary from person to person. There is a scarcity of talents in all areas. Competition is always there for getting the talents between organizations, that is why the talent management attains significance. Every organization needs talented persons in different levels to enhance the efficiency of the company. In this globalized era talented personals are having demand and are offered good remuneration. For discharging specific tasks talented and work ethic specialists are needed. In every field the case is same. It is not easy to find the right talent needed for the organization, it takes a wholesome effort involving lot of human resource to find the talents and recruit them. Talent management is simply a process of recruitment of talents, developing the skills of existing workforce, promoting and retaining the employees, attracting highly talented and rated employees from other companies etc. Talent management is practiced by human resources department of each and every company. Performance management is directly linked

with talent management. In every organization the challenges as well as strategies are entirely different. Hence the focus is mainly on getting and connecting the talent with the organizational set up as well as making sure that the person can cope up with the organizational challenges and deliver the might. For a successful organisation team of talented dynamic executioners, passionate leaders in right roles will make sure effective execution of strategies and correction if needed as per the situation. That means talent should be there in executive, middle and lower level of the organization. But setting up and maintaining this kind of persons for longer periods is not easy. Senior human resource executives are dealing with the talent management and it is very important for companies as there is practice of rival companies luring away the talents. So motivation and retention of talents in an organisation is a real challenge for HR officials. With companies becoming global with overseas acquisitions, keeping the upward growth will depend on cost effectiveness, internal execution of strategies precisely with existing workforce as well as integrating new talents. In good olden days the talent management was not a priority and hence it was taken care by personnel management departments in the organization. However in this new era talent Business Manager

April 2012

HRâ&#x20AC;&#x2122;s Next :Talent, Operation & Event Management

management has become one of the top priorities of the organizations. Impact of talent management is directly visible as many companies are spending a chunk of their revenues to disburse wages as well as benefits. Wages are increasing every year rapidly for maintaining the talents in the organization. Talent management best practices are competency based and some of the competencies are skills, personal traits, experience as well as knowledge. Talent management is for the optimisation of the resources in the organization, henceforth achieving good business results. Always there is chemistry between better talent in workforce and better business outcome. Leaders are developed through the talent management system. Keeping the workforce satisfied is an important aspect which can't be neglected by any organization. Success profiles should be the main criterion for promotion. There should be some planned strategy for talent management since human resource is an asset for the organization in this new age business world. Top level management including CEO and senior leadership should support the efforts of human resource department for developing talent pool. Line managers have a proactive role in talent management. They are the ones who can spot talents within organization for higher levels. Developing the talent within the organization is cost effective than really recruiting new ones in some cases and it can be termed as one the talent management best practices. The demographics of the workforce across the world are changing as many companies are turning global and cheaper workforce with talent. This process is one of the talent management best practices. Hyper competition is the main factor

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which drives companies to have talent management best practices to keep the competitive edge...

Operation on Outsource for Productivity and Cost-Effective Does outsourcing works for your advantage or disadvantage? For a layman (or an individual who grasps the concept of outsourcing at a sea-level understanding), outsourcing is a complete waste of time and financial resources, which can end up with unwanted complications. Why assign work to other individuals if you know what will be good for your business? Why delegate the work to outsourcing professionals abroad if you can do much better right at your own territory? You know what is best for your business, and you don't need other individuals to deal with things that you can handle by yourself, or with the help of in-house personnel. For a politician, outsourcing will just be a political subject that can be argued in debates within the walls of Congress and newspapers. The issue will serve as a "fortified objection" to take away jobs from your own countrymen, making your business "unpatriotic." Politicians' sympathies with regards to the outsourcing issue may win him a few votes in the upcoming election, nothing more than that. However, it is the businessman who will be using the outsourcing process; not the layman, and definitely, not the politician. Thus, outsourcing for businessman is a "modern day boon." Many businessmen are aware that outsourcing provides them the freedom of dumping all of their non-core yet important aspects of their business

HRâ&#x20AC;&#x2122;s Next :Talent, Operation & Event Management

Event management systems make this whole process easier. Many of them provide a way to integrate your own best practices as far as registration and scheduling.They also provide content management systems that you can use to add your own content. and delegating the work to an individual or group of individuals who can give justice to the process. Thus, it will leave businessmen free from additional responsibilities and focus instead on the core of their business. On the other hand, the outsourcing firm can also focus on the specific work delegated to them, thus it is a cost-efficient business operation. That is one of the primary advantages of outsourcing. Another enticing advantage of outsourcing is being one of the cost-effective measures that you can take for your business. Businessmen are aware that information technology (IT) services and human resource in United States or in Europe are expensive, which can affect the way they hire additional manpower in case of business expansion. Outsourcing provides an option in getting highly-productive manpower in a cheaper rate. For instance, offshore outsourcing (delegating the work to off-shore destinations such as India and Philippines) is popular to U.S.-based businesses because of the cheap working rate. An ordinary American who will earn an average of $300 to $500 per month is just a small sum, but for Indians and Filipinos, they would be quite happy with this salary range considering the currency conversion rate. Thus, this is a "winwin" solution for the company you are outsourcing to as well as for your business. Another convincing advantage of outsourcing is saving substantial amounts of money in terms of the development of some aspects of your business (such as IT development). Since outsourcing involves reduced expenditures on your part, you will be able to maximize the value of your money to have your IT services developed into the latest and most powerful modern information tool. In addition, you will avoid recruiting new personnel who will handle the development as well as training them, thus reducing the recruitment and training cost for your business. The purchase of necessary technology will now be handled by the outsourcing company, thus saving money in the long run which you can use on other important business aspect. There are other advantages of outsourcing, yet the aforementioned advantages are the most noted ones. Do not be misled by rumors and gossips about outsourcing. You are the business owner and you know what is good for your business.

Event Management For anyone who has had to deal with the

hassles of registration and scheduling for a variety of events, an investment in event management systems can easily streamline this process. There are many aspects to planning an event and making sure it goes smoothly. Event management systems make this whole process easier. Many of them provide a way to integrate your own best practices as far as registration and scheduling. They also provide content management systems that you can use to add your own content. Many of the processes involved in event management are automated by these systems, including scheduling at a glance, change notifications, and payment systems. Users can use this software for space planning for these events as well, and the reservation of the resources needed for each event. They can use the event management software to arrange for services for the event as well, such as catering. This software frequently includes web calendars that can be published for ease of scheduling. Event management software can also print online tickets for attendees. All of these benefits offered by this software can reduce the headaches involved in keeping track of these important details. Anyone who is responsible for event scheduling will appreciate the way this software helps them prevent double booking any facility and all of the time and inconvenience that such a situation can cause. Whenever an event is held, most event planning and administrative professionals know that reporting needs to be done on the event. Event management systems provide a way to provide reports in a variety of standard formats, including HTML, MS Excel, and CSV. They also provide for the approval of funds for these events. This software is also coded to provide tools for auditing to ensure compliance with established processes. If you are in the event planning business or you perform event planning as part of your job duties, event management systems can reduce the time and resources required to manage and plan your important events. The ease with which you will be able to manage your events with event management systems makes them a worthy investment... The tips of T.O.E is an effective innovation methods to leads the organization into good productive culture. The HR should put their effort to show their talent, Operational methods and Event Management in day to day on jobs. BM Business Manager

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entoring is soft and potent HR instrument to mould and bind the employees to organizational work, social culture and developing emotional bonds between employee and organisation leading to devoted allegiance. But is Corp Inc. focused enough to place this time tested HR tool to develop future leadership in organisations? Is mentoring benefits the organisation in creating a talent pipeline or only helps employees building their career?

What makes you a

DR. C.N DAFTUAR Chief Mentor and CMD, Salahkaar Consultants, Pune

Mentor? Mentoring is the presence of caring individuals who provide support, advice, friends hip, reinforcement, and constructive examples to help others succeed. Mentoring can mean the difference between success and failure. A mentor is a person of greater knowledge or wisdoms who shares this experience to help develop abilities of those junior to them, also called protĂŠgĂŠs.

n Greek mythology, Mentor was the son of Alcimus or Anchiailus. In his old age Mentor was a friend of Odysseus who placed Mentor and Odysseus' foster-brother Eumaeus in charge of his son Telemachus, and of Odysseus' palace, when Odysseus left for the Trojon Wars. When Athena visited Telemachus she took the disguise of Mentor to hide herself from the suitors of Telemachus' mother Penelop. As Mentor, the goddess encouraged Telemachus to stand up against the suitors and go abroad to find out what happened to his father. When Odysseus returned toIthaca, Athena appeared briefly in the form of Mentor again at Odysseus' palace. Because of Mentor's relationship with Telemachus, and the disguised Athena's encouragement and practical plans for dealing personal dilemmas, the personal name Mentor has been adopted in modern English as a term meaning someone who imparts wisdom to and shares knowledge with a less experienced colleague. Mentorship is a buzzword these days but the first recorded modern usage of the term can be traced to a 1699 book entitled Les Aventures de Telemaque, by the French writer Francois Fenelon. In the book the lead character is that of Mentor. This book was very popular during the 18th century and the modern application of the

term can be traced to this publication. This is the source of the modern use of the word mentor: a trusted friend, counselor or teacher, usually a more experienced person. Some professions have "Mentoring Programs" in which newcomers are paired with more experienced people, who advise them and serve as examples as they advance. Schools sometimes offer mentoring programs to new students, or students having difficulties. Today mentors provide expertise to less experienced individuals to help them advance their careers, enhance their education, and build their networks. In almost all arenas people have benefited from being part of a mentoring relationship, including: Actors, Athletes, Artists Authors, Business people, Comics, Directors, Education, Movies, Musicians, Philosophy, Poetry, Politicians, Television, etc. Today any organization to survive and thrive must learn to change with the market and times. If we are to have learning organizations, we must have learning and teaching / coaching executives. So, one of the most frequently felt need of the younger and the junior level professionals in all types of organizations in this country and abroad is for a mentor and coach to help them navigate their way through the organizational lives and work and to assist them with their career choices and development. Some people are lucky to stumble across a good mentor. Business Manager

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However, this is usually the result of individual efforts and often of a well thought out program within an organization.

and they are also supposed to mentor and coach (teach) their subordinates to achieve the desired result.

Learning refers to any change in behaviour. Organizational Behaviour (first seen as actions) is the sum of professional skills affected by personal skills and behavioural aspects such as; beliefs, values, attitudes, motivation, thoughts, and unconscious drives. Professional evidence based mentoring and coaching is now recognized as the critical platform for successful organizational change and learning initiatives.

In brief, Mentoring seems to have different meanings for different people. Some consider it a form of counseling, communicating, or learning by example from someone usually senior to you, while others call it leadership. But, whatever you want to call it, it is something that certainly can be beneficial to any organization. It is a proven approach and valuable tool for leaders.

Many recent business-coaching studies have all confirmed that changing behaviour with the right mentoring and coaching techniques and delivery mechanisms can have a dramatic, beneficial influence on human dynamics, the cultural and environmental context of an organization, and the output of the system - the organization's performance. If people are truly the primary resource of an organization, then they must be developed and managed not unlike any other asset portfolio. As every individual has a unique resource portfolio of strengths and liabilities -mentors (and for that matter coaches) need to be trained how to optimise and realize the potential of that individual's assets, minimize the weaknesses and add lasting "value" to their overall personal and professional skills resources portfolio. An important dimension of employee development program is to train managers and executives of all ranks how to mentor and coach empathically. Getting the work done is only part of the supervisor's job. Supervisors are responsible for making the workplace safe, legal and harassment-free, vibrant and create a learning climate. They have to know how to motivate their employees to learn the technicalities of their jobs

There seems to be some mystery surrounding mentorship. Maybe that is due to its different meanings; therefore people are unclear about this new tool. This article will try to take some of the mystique out of mentoring by reviewing the basics and relating them to the organization. It will address: 1) what mentoring is, 2) why should the companies have a mentoring program, 3) who should be responsible for mentoring, 4) when to mentor, 5) where mentoring can take place, and 6) how to mentor someone.

What is Mentoring? Mentoring is the presence of caring individuals who provide support, advice, friendship, reinforcement, and constructive examples to help others succeed. Mentoring can mean the difference between success and failure. A mentor is a person of greater knowledge or wisdoms who shares this experience to help develop abilities of those junior to them, also called protégés. Mentoring helps prepare officers, manager, army officers and civilians for increased responsibilities by encouraging job competency,

Roles of a mentor The mentor should encourage two-way communication. As a coach, the mentor helps to clarify developmental needs. In facilitating, the mentor should assist the protégé in establishing a network. As an advocate, the mentor could represent the protégé's concern to higher management. 14

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relevant education, professional development, higher education, and serving the needs of the organization and even the country. Mentoring encourages people by promoting communication, and personal and professional development. In his address to Virginia Military Institute Corp of Cadets, General Hornburg said, "A mentor is an individual who advises and challenges you to do your best on both a personal and professional level. Everyone needs a mentor, and leadership is where mentoring starts." Mentoring can occur in different settings: informally by a supervisor or superior, or formally where an associate is deliberately paired with a mentor and there is an established goal of developing specific skills and competencies of protégés. There are concerns by some that cronyism (Doing faqvour to friends. Special treatment and preference given to friends or colleagues, especially in politics) or sponsorship could develop, and that is always a possibility, but a good supervisor will use all available resources. They recognize the value of all members in their organization, and understand no one can accomplish their respective jobs alone. They have reached their level of leadership by learning from others, and usually desire to teach and provide these same opportunities to those who are willing to learn, their protégés. Most managers realize cronyism or sponsorship only limits their own resources, misplaces loyalties, and leads to the loss of future great leaders. General Hornburg said, "Mentoring isn't about a "good old boy" network. It's about helping people grow and think for themselves. It's an opportunity to connect with the past and contribute to the future.

Why Mentor? US Air Force Policy Directive 36-34 states: "Mentoring is a fundamental responsibility of all Air Force supervisors." To para phrase the above Directive we can say that Mentoring is a fundamental responsibility of all Managers and supervisors irrespective of their ranks. However, mentoring should take place because everyone gains when there is a healthy exchange of information. Not only does the mentor and protégé benefit from this exchange of ideas and information, but the as an organization both the individual employees as well the company will benefit greatly. An ancient Chinese proverb has very well depicted this idea: "If you want one year of prosperity, grow grain, If you want ten years of prosperity, grow trees, If you want one hundred years of prosperity, grow people." Leaders must realize that those junior to them are watching and learning from them even if it is

from a distance. There are lots of Eklavyas. However, with the amount of information and knowledge available to everyone, plus the everyday downsizing of our work forces, leaders need to accept the task of intentionally teaching and training those working under them/their juniors. If left to learn at a distance, protégés will apply their perceptions of what they see and hear to the issues of their respective units. They will have to decide for themselves the best way to handle different situations. The danger with this is "their perception" may not be reality, because they may not have all the facts. Therefore, open communication with senior managers will ensure that the right lessons are being learned, and correct information is being disseminated. Additionally, it is important that protégés learn the art of decision-making. A great by-product will be better unit/section/department cohesion. Once protégés understand the whole issue, they will be able to support the manager's decisions, and when feasible be able explain it to others. Whether people agree or not, once they understand the issues they are less likely to gossip or cause dissention within the organization. Accurate information and communication always improves morale and company's cohesion. The new generations now entering the workforce are different than earlier generations. The Baby Boomer generation thinks and perceives things differently than executives/officers from Generations X and Y. Newer generations are more confident in their abilities (albeit sometimes erroneously), perceive loyalty differently, want more balance between work and family, and are not intimidated by rank. They have little or no respect for seniority. In the past, communication between ranks was much less frequent due to the hierarchical nature, but with today's e-mail and internet capabilities, junior executives are well informed of issues, and are now able to interact more frequently with seniors. This interaction will serve to meet one of the main needs of the new generations. When Generations X and Y grew up, they were latchkey children and many from families where they had both parents working. Thus, the traditional nurturing environment enjoyed by the Boomers has not been a part of life for many in the new generations. Mentoring appeals to the new generations desire for relationships. Generations X and Y could be loyal, but their loyalty is based on a bond of trust. Also, loyalty in them is not unconditional (a great obstacle in learning). It is, now, based on reciprocity and trust and a kind of give and take relationship. On the other hand, the expectations and loyalty (read commitment) of the seniors- the likely mentors-is more of out-fashioned, conventional of guru-shishya parampara. Even in this given situation trust can best be achieved through a mentorship program. Building trust will not only benefit both the senior Business Manager

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and junior officers, but more than likely the company's would benefit and retention would probably improve.

Who should Mentor? The answer is a big YOU. It is important to remember, the senior leader of an organization such as a a head of a function, a Wing Commander or a group leader is not the only leader. Commanders, Managers, Supervisors, and other leaders are responsible for the development of those junior to them. There are many officers in a unit, and all have varied experiences. Therefore, it should not be just the senior officer of a unit who is responsible for mentoring, but each person on the base line should have a role in mentoring. A model of this can be created by senior managers occasionally meeting with junior executives from different functions in a café or the company's canteen and discuss issues of interest. This provides "ownership" for the higher-ranking managers/officers while also developing a network of contacts and information sources for everyone. No one should feel like they are "going it alone" and by developing this atmosphere of interaction between all ranks, a sense of belonging to something special should develop and this can only result in a stronger and better workforce. Whereas mentoring tends to be directed at teaching the junior executives/officer, it actually can and should extend to everyone within an organization. All supervisors, civilians, high ranking managers and officers should be mentors. Because everyone that enters the workforce regardless of rank, level or grade needs helpful guidance and assistance in order to perform their duties to the best of their abilities, and all ranks and grades have valuable

experiences that should be passed on to the younger generations. A good mentoring relationship provides new employees as well as interns with someone that will share their professional knowledge and expertise in the field. A good mentor is available to answer any questions relevant to the job. Having suggested that YOU are the possible mentor we need to remember that there are certain identified good qualities of a MENTOR. It may be useful to have a look on them and make an effort to inculcate some of them (if not most of them) in you to derive more perfection in your actions as an effective mentor.

Qualities of effective mentor: 1. His willingness to share skills, knowledge, and expertise. A good mentor is willing to teach, guide and counsel (of) what he/she knows and accept the protégé almost unconditionally wherever they currently are in their professional development. There could be only one condition and that is that there is a great willingness to learn in the mentees. Good mentors remember what it was when s/he was new in the field. The mentor does not take the mentoring relationship lightly and understands that good mentoring requires time and commitment and is willing to continually share information and their ongoing support with the mentee. In the above sense we would not consider Arjuna-Dronacharya relationship as great mentor-protégé relation where as KrishnaArjuna relation would profoundly qualify. In case of Arjuna-Dronacharya relation there the unconditionality of relationship was missing where as in Arjuna-Krishna relationship we find the unconditonality of Arjuna's devotion and Krishna's willingness to give.

Top 15 qualities of a mentor 1. 2.

3. 4.

His willingness to share skills, knowledge, and expertise He demonstrates a positive attitude and acts as a positive role modelwhat it takes to succeed in life and career Mentors need to take personal interest in the mentoring relationship Effective Mentors are enthusiastic about their field and they show it to everyone Business Manager

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5. 6. 7.

Good mentors should understand the importance of life-long learning and growth A true mentor provides guidance and constructive feedback A good mentor is generally respected by employees, his/her juniors and colleagues at all levels of the organization Effective mentors set and meet ongoing personal and professional goals

2. He demonstrates a positive attitude and acts as a positive role model-what it takes to succeed in life and career. A good mentor exhibits the personal attributes with positive attitudes that take to be successful in the field. By showing the mentee what it takes to be productive and successful, they are demonstrating the specific behaviors and actions required to succeed in the field. Positivity in attitude may mean that s/he should assure and be able to show the high probability of success and assures that success is there waiting for the protégé to reach there. He (mentor) needs to be optimistic and proactive. He will need to show that he used right model to succeed. And that the truth and righteousness pays. Such an attitude and belief of the mentor will encourage the protégés to take a bold and positive step towards successful learning. 3. Mentors need to take personal interest in the mentoring relationship. Good mentors take their responsibility as a mentor very seriously. They feel invested in the success of the protégé. They have a stake in the success of the protégé. Usually this requires someone who is knowledgeable, compassionate, and possesses the attributes of a good teacher or trainer with good communication skills. A good mentor is committed to helping their protégé find success and gratification in their chosen profession. Overall good mentoring requires empowering the mentee to develop their own strengths, beliefs, and personal attributes. On the other hand a good protégé should also realize how frustrating it could be for the mentor if the mentee fails or betrays. Example of Karna and

Parsuram come quickly in mind. As you might know that the very foundation of relationship between Karna and Parsuram was that of deceit and falsehood. The lie of Karna made Parsuram so frustrated and angry that he gave him a curse and withdrew all the knowledge that he had given him. Sometimes it is as difficult to find a committed mentee as it is generally difficult to find a good mentor. 4. Effective Mentors are enthusiastic about their field and they show it to everyone. Enthusiasm like smile is contagious. A mentor who does not exhibit enthusiasm about his/her job, knowledge and commitment will ultimately not make a good mentor. Enthusiasm is catching and new employees want to feel as if their job has meaning and the potential to create a good life. Showing your enthusiasm as a tool of inspiration for your juniors/protégé is a tool that makes a mentor effective and perfect. Mentor's enthusiasm has the potential of enthusing their protégé and their (protégé's) enthusiasm will make them learn faster and work smarter. What else do you need? 5. Good mentors should understand the importance of life-long learning and growth. Mentors are in position to illustrate how their field/subject is growing and changing and that even after many years of their being in the field there are still new and many things to learn. Anyone who feels stagnant in their current position will not make a good mentor. When starting out in a new career, people want to feel that the time and energy they spend learning will be rewarded and will ultimately provide them with

Good mentors value the opinions and initiatives of others

10. Mentors walk the talk-motivate others by setting examples 11. Self awareness 12. Empathy and sympathy 13. Compassion 14. Innovative and Risk-taker 15. Analytical mind Business Manager

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career satisfaction. Good mentors are committed and are open to experimenting and learning practices that are new to the field. They continually read professional literature (journals, books etc.) and are enthusiastic to share their knowledge with others especially with their mentees. They may even write articles on subjects where they have developed some expertise. They take their role of knowledge dispenser seriously in teaching their knowledge to others. A good mentor would like to choose to teach or attend classes to further develop their knowledge and skills. They enjoy taking workshops and attending professional conferences an interacting with other experts and mentors from other organizations. 6. A true mentor provides guidance and constructive feedback. One of the key responsibilities of a good mentor is to provide guidance and constructive feedback to their mentee. This is where a protégé will most likely grow identifying their current strengths and weaknesses and learning how to use these to make them successful in their field. A good mentor possesses excellent communication skills and is able to adjust their communication to the personality style of the mentee. A good mentor will also provide the mentee with challenges that will foster professional development and a feeling of accomplishment in learning the field. 7. A good mentor is generally respected by employees, his/her juniors and colleagues at all levels of the organization. Ideally mentees look up to their mentors and can see themselves filling the mentor's role in the future. Mentees want to follow someone who is well respected by colleagues and co-workers and whose contribution in the field is appreciated. There is a well-known concept in the field of Social Psychology which in known as "prestige suggestion". This simply tells that advice or opinion coming from a person having social prestige for whatever reason commands higher acceptance among people. For example you write an absurd view and attribute it to Mahatma Gandhi and will find that most people even if they had different opinion initially will meekly accept the view. Such acceptance comes from the prestige attaché to Gandhi. Same thing albeit at a smaller scale will apply to the advice given by a respected mentor. So Good Mentors, Please! Try to command prestige for your honesty, integrity, knowledge etc. and it will benefit you not only in doing your mentor's role but in many other ways personally. 8. Effective mentors set and meet ongoing personal and professional goals. A good mentor continually sets a good example by showing how his/her personal habits are reflected by personal and professional goals and overall personal success. They need to demonstrate their performance effectiveness by continuously achieving or, better still, surpassing their set targets. 18

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9. Good mentors value the opinions and initiatives of others. A mentor who values others is also someone who works well in a team environment and is willing to share his/her success. A good mentor appreciates the ongoing effort of the mentee and empowers him/her through positive feedback and reinforcement. High proficiency in giving and receiving feedbacks will be a great advantage in converting an ordinary teacher/supervisor/coach into an excellent mentor. 10. Mentors walk the talk-motivate others by setting examples. The ultimate success of being a good mentor is that he does what s/he preaches. Be a role model. Grow with the mentees to keep ahead and remain his/her role model so as to s/he keeps learning from you and you remain her/his goal post. Mentors who "walk the talk" provide inspiration through their very being. A mentor is someone who we aspire to become; the mentor has qualities/skills we want for ourselves. The mentor helps us to see the possibilities by bringing to life the qualities we aspire for ourselves to achieve. Apart from the above mentioned behavioural characteristics the mentors' personality profiles should also embody some personality traits. I have taken resource of SQ (Spiritual Intelligence) and EQ (Emotional Intelligence) fields for cataloguing the personality attributes of an effective mentor. Some important among them could be the following: 11. Self awareness In our view "self-awareness refers to being aware of what one wants."-Daftuar, (2003). The level of self-awareness among the mentors should be reasonably high. This will help them understand other's and their own motivations and emotions better. Talking in EQ terms they should have better awareness about their own motivations, emotions and the social and professional surroundings around them. 12. Empathy and sympathy An effective mentor needs to overshadow the quality of just being sympathetic. The present generation (the so called Generation-X or Y or Z) may not feel comfortable with a sympathetic mentor. Empathy is more subtle and need not display itself in crude manner but hugely enable the mentor to understand the needs of the protégé. There could be many more but we have tried to limit ourselves to the most essential of the mentors' qualities. 13. Compassion "The whole purpose of religion is to facilitate love and compassion, patience, tolerance, humility, forgiveness". H.H. the Dalai Lama. To paraphrase Arthur Jersild, compassion is the ultimate and most meaningful embodiment of emotional maturity. It is through compassion that a person achieves the highest peak and deepest reach in his or her search for self-fulfillment

through understanding and identifying with others. Compassion could be listed as an important ingredient of a mentor's personality. 14. Innovative and Risk-taker The word Innovative here means the person is creative and can think in new and different ways as well as he is capable of a Taking risk to help his/her protégé. A mentor needs to be innovative because he has to keep discovering new ways and sources to teach the protégé. And while you take responsibility of someone else life and career you naturally get into a huge risk of building or marring a career. 15. Analytical mind People with analytical mind have good analytical ability. They would not jump to conclusion rather they are able to get to the root of the problem and as a result do not jump to conclusions. They are able to identify and define problems as well as generate and implement potentially effective solutions. They are good at sensing problems and feel confident and motivated to deal with it effectively. We realize that the above list is demanding but then the responsibilities of a mentor are also demanding. There could be some more required qualities depending on the type of mentoring and the type of the job and organizations. Given your own circumstances you may prepare you own list of qualities of a mentor in your own situation.

When to Mentor? The Problem of Finding the Time One of the problems of instituting mentorship in organizations seems to be just one more thing to add to their already demanding schedule. How can one make time for "mentoring"? I had a damning task in convincing my participants in many of the 16 groups of my workshops (on Mentoring in one company) that to some extent mentoring is already taking place without "credit" being given to the mentor. And, mentoring could be instituted in the company with very little effort or additional time. And that mentoring is just another natural talent every one of us have. No need to panicky for extra work pressure. I would face this question in almost all groups of my participants, sometimes with a tone of aggressive challenges when they would ask "why the hell management is bent upon adding one more task to them when they are already too much hard pressed for their own job, to meet their target, etc. My experience was that almost in all groups I had to spend about two hours convincing them for the value of mentoring and that it benefits both the parties-the mentor and the mentees. In another case, for instance, there was a group of junior executives (GETs and senior supervisors) that were almost accidentally being mentored on a daily basis. Though juniors they all occupied vital positions, and due to the nature of their job, they had daily contact with executives/managers more senior to them. These

(junior) executives observed leadership in action. They learnt how decisions were made and what questions to ask. They saw first-hand how lives are impacted, how politics play into situations, and many more such issues. Each of these executives to some extent was being mentored, either formally or informally. I believe if you retrospect if you easily recognize such experiences in your lives. The senior executives/managers need to recognize this and take advantage of it by allowing the protégé to ask questions, and discuss issues when the opportunity avails itself. These experiences alone are very valuable to the junior executives and will eventually benefit the senior executives /managers as well. It does not have to be just at the top levels and that daily contact and one-onone discussions to occur. This can and should apply at the smallest unit level. Supervisors of all ranks and in all positions can and should mentor those junior to them. Modern technology has actually made it easier. With e-mail, a protégé can seek advice or guidance anytime, and if it is not an emergency, the mentor can answer the questions and provide thoughtful advice at their convenience. Thus, mentoring can take place just about any time, anywhere by anyone. Actually, mentoring occurs all the time. Each time you have a discussion with another member, at a minimum informal mentoring is taking place as you are providing insight based on your own experiences. Therefore, it is imperative that information provided is thoughtful and will be beneficial to the individual as well as the organization. Whether a mentor sets a regular time on their schedule daily, weekly, or monthly is not as important as being accessible, and prepared to listen and respond to their protégé when needed. Mentoring is not effortless and time will be required. Both parties must be active participants and work out a schedule that is best for both of them.

Which is the best place to Mentor? In Army and Air Force officers' Clubs are generally used for such activities and people there might even say that mentorship in the Forces will die when alcohol awareness becomes an issue, because, then, Officers' Call at the Officers' Clubs will drastically reduced. And so will the mentoring. Each army base and business unit is different, but these "get-togethers" whether weekly, monthly, or quarterly provided an avenue not only for the commander to brief important issues but also allowed very valuable interaction tool between all ranks in the officer corps. Alcohol is a big equalizer. This alone can provide a chance to observe leadership, and offered an informal setting which allowed open and honest discussions. This in-turn added additional benefits such as the feeling of being a part of something special, and having a sense of belonging. Encouraging such informal meetings is a good option. Business Manager

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If the fear of alcohol and driving under the influence is still uncomfortable (though I do not see it happening in the near future!), an alternative could be a luncheon, which could provide this same informal setting with an environment of interaction for all managers and executives, thus providing opportunities for casual conversation and a cross-flow of information. This networking alone could pay great dividends for the unit, be enjoyable, and everyone would benefit. One possibility for getting lunch conversation started, could be discussing a previously announced book. As professionals, we cannot know enough about our chosen profession. The mentor can recommend a book for everyone to read, and then during lunch allow protégés to discuss the book and its merits. Additionally, time should be provided to allow for discussions on current issues, as well as a question and answer session. Other options where mentoring could take place include bringing back "mandatory fun" activities. Events such as Dining Outs, social gatherings, ceremonies, etc., most of these could be scheduled during the workday when they would not interfere with family and personal time. On a serious note we can emphasize that if the mentoring has been made mandatory by the company and you have been officially assigned to mentor it would be a good idea to do everything

The Difference There were two GETs who didn't know what to do They came into the Force and were proud to wear the blue (Company's Uniform) Quickly they realized they didn't know it all And soon they must learn or they would fall But who was to teach them how to go? Where were they to go in order to grow? Around them they looked and what did they see? One found a mentor the other one was left himself to be The one with the mentor seized the day He learned quickly and found experience does pay The protégé' listened and the mentor taught him a lot And through his successes he never forgot The second who had to go it alone Did his best but felt forlorn He did what he could and learned as he went But in the end he was totally spent Now the protégé is a mentor, too His successes and lessons are not few He shares what he knows and learns from the young And praises for his mentor are sung So now the Company has only one wearing the blue But it should have been two With experiences and happiness in their heart Because someone cared about them from the start This poem has been taken from an unknown source but has been little modified by the author to suit our context.

officially, formally and timely. Go with your diary. Details can be discussed a little latter. But do it with FUN!

How to Mentor It is important to understand that the development of protégés is an ongoing process for everyone. Mentors should relate personal and professional experiences to protégés. They should practice positive communication skills and ensure protégés do the same. Company's core values should be discussed and exemplified, and most of all, spending time with those being mentored provides the greatest benefit for both the mentor and protégé.

Roles of a mentor Generally mentors fill four roles; they are advisor, coach, facilitator and advocate. As an advisor, the mentor should encourage two-way communication and feedback and assist protégé with career and performance goals. As a coach, the mentor helps to clarify developmental needs, recommends training opportunities, and teaches skills and behaviors. In facilitating, the mentor should assist the protégé in establishing a network of professional contacts and help them identify resources for problem solving and career progression. As an advocate, the mentor could represent the protégé's concern to higher management levels concerning specific issues, arrange for the protégé to participate in high visibility projects, and serve as a role model. Conclusion Mentors are not expected to have all the answers. Sometimes just listening attentively is all that is needed. But, mentoring can mean the difference between success and failure. Mentoring is a fundamental responsibility of all senior managers and executives. It helps protégés reach their full potential, thereby enhancing the overall professionalism of the workforce. Additionally, when an interest is shown in others, the organization is able to retain her most valuable asset-people By understanding the "what, why, who, when, where, and how" of mentoring there should be no mystery about providing assistance to junior personnel. If the company is to continue as a viable organization and strive to reach to the status of the best in the field, it not only needs superior systems (technical or otherwise), but personnel who are advanced in their knowledge and skills, because caring mentors took the time to listen, learn and advise to the best of their abilities. BM Reference Daftuar, C.N. (2003). Emotional Intelligence Test (EQi-t). Pune, Salahkaar Consultants.

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MentorProtégés in Hindu Mythology

DR. A.JAGAN MOHAN REDDY Associate Professor (HR) & Placement Coordinator, Institute of Public Enterprise, Hyderabad

This article lists out few prominent mentor - protégé (guru-shisya relationships) mentioned in the Indian mythology and through that tries to explain the importance of mentoring.

Origin Mentoring traces back its origin to very ancient time. In the Mahabharatha, Lord Krishna enlightens Arjuna about his duties, displaying the true virtues of a guru, which combines the qualities of friend, guide and a philosopher. The word "Mentor" has its origin in Greek Mythology when Odysseus the King of Ithaca, went off to fight the Trojan war entrusted his son's education to a counselor and good friend named Mentor, who made him a competent person. Though we say that the word 'Mentor' originated from Greek, French etc, mentoring has started before thousand years in Indian civilization in the form of Guru-shisya relationship. Gurukul, is an ancient concept of education wherein the student imbibed knowledge by residing with his/her teacher as part of his family. "Guru" refers to the teacher/master and "Kul" refers to his/her domain. So the mentoring relationship is not just a business myth of today but it has existed from time immemorial in the Indian mythology. Now let's look at some of the Guru-shisya relationships from our Hindu mythology including the lessons to be learnt from them. KRISHNA AND ARJUNA In the Indian context the most successful mentoring relationship is the one between Lord

Krishna and Arjuna. On looking at Kaurava army, which consists of many of his close relatives, Arjuna becomes deeply depressed and gets into a psychological trauma and at that stage (Vishada yoga) the Gita comes. Infact, it may not be an exaggeration to say that in today's world many of us are caught quite often in a similar situation. Here Lord Krishna comes to the rescue of Arjuna by reminding him of his rightful duties and obligations in this wordly life, without bothering much about the end results. The plight of Arjuna, which many of us too have faced at different times, could be well understood from the Arjuna's following query: "I am totally confused, I am your disciple tell me what should I do"? Now, Lord Krishna, his mentor, plays a critical role in reminding Arjuna of his role. He was an ideal mentor due to the fact that he performed multiple roles and had numerous mentoring styles. He was leader, manager, negotiator, manipulator, motivator influencer all rolled into one. Arjuna was symbolic of Pandavas valour and glory but he was also very sensitive to others opinion of him. But when he was caught in worldly relationships and sensitivities and was not able to move ahead, Lord Krishna's help enabled Arjuna to surmount obstacles and achieve success. Business Manager

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The main teaching that Lord Krishna gave to Arjuna is as follows: "Seek not the fruits of your action, but do your duty in this world and dedicate it to me" There are several occasions in our livesfor when we wonder about rat race and its relevance in the grand scheme of things. Bhagavad Gita helps us to perform our duties irrespective of the grand scheme of things. CHANAKYA AND CHANDRAGUPTA: Chandra Gupta Maurya, a common man's ordinary son, rose to become our county's finest emperor with the help and guidance of Acharya Chanakya, Chanakya, angered by the unjust role of Dhana Nand of Magadh and personal misbehaviour he experienced, took a vow to destroy the arrogant dynasty of Nandas and accordingly selects a promising kid of a commoner. Further, he brings up the child as his protégé, who in course of time rises to vanquish Nanda kings and became the Emperor Chandra Gupta Maurya. Chankya trained, taught and guided Chandra Gupta in various fields like warfare, political maneuvering, manipulation and may other strategies. Further, as a shrewd strategist, Chanakya also served as his Prime Minister for some time consolidating his rule. Thus, the Guru (teacher) and his shisya (disciple) established one of the biggest empires in India and ruled it well. VALMIKI AND LAV-KUSH: Lord Rama, son of King Dasharatha, was a great man to have taken birth on this earth to spread the unique message of abiding by truth always and serving the parents. After doing the Dustha shikshana (by killing Ravana) lend Lord Rama could not invite Sita with honours owing to the social stigma articulated by the commoners. And as such, had to send her to exile. So, when she was left in the forest by Lakshmana, under the instructions of Lord Rama, it was sage Valmiki, who gave refugee to Sita. In his hermitage Rama and Sita's twin sons, Lav and Kush were born and brought up. Sage Valmiki initiates the boys in studies and the two bright boys learnt the alphabets in no time. They also acquired the ability to read and write anything. Valmiki taught them the shastras, mythology, music, archery, and whatever else he knew. So the boys became the experts in all those branches of knowledge. The skillful training of sage Valmiki made the boys so powerful and valiant that even Rama, Lakshman or Bharata and Satrugna were defeated by them in archery. ADI SANKARA AND HIS GURU: Sri Jagadguru Adishankara one day went in the search of a guru to be formally initiated as a sanyasi. At the banks of the River Narmada, he found the river gushing forth into floods. By using his powers, he encapsulated the river in his kamandal (a drinking water vessel which sanyasis

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carry) and release it in the banks of the river. Sri Govinda Bagawath pathar, an ascetic who saw this marveled at Sri Shankara and took him on as a shisya. He, apart from teaching various Vedas, taught Sri Shankara Advaita, the principle that everyone in this world is the manifestation of God and that God and Atman are one and the same. Later he advises Sri Sankara to go out in the world and spread this truth throughout the country.

Lessons to be learnt From the above guru-shisya relationships we can find that a mentor needs to be very good at listening and quickly grasping the core of any problem. Because today's professionals, who need to keep pace and get ahead in a fast paced, competitive economy, need proper direction coupled with coaching and advising from their experienced peers. They face constant performance pressures coupled with difficult demands from their superiors. Yet times, this can lead to frustration and ultimately disillusionment with the organization and its work culture. A mentor with finest qualities of care and compassion can spend time and energy to understand the protégés and their capabilities. Then he can help them find their vision and individual path to personal development and can help in enhancing their skills and accelerate learning and career growth. An organization can use this art of mentoring as a tool to help bring out the best in their younger employees, leveraging the synergy for individual and organizational growth and success. Now let's briefly discuss the preferred mentorship process, for leveraging this institutional mechanism for synergizing individual and organizational growth and success.

The Mentorship Process Today's knowledge organizations are full of experienced individuals with varied interests and expertise. Further, in LPG era of today with competition ruling the roost not getting the right advice can land the young professionals in problems prompting them to either start doubting their own capabilities or making them want to move on to a "more encouraging" work culture. So the optimal mentor shall possess the expertise, commitment, understanding and time to provide assistance. The mentorship process shall be a open one and both the mentor and protégé should set realistic expectations from each other. Formal and informal sessions should be organized to enable the protégé to understand the organizations goals, skills, sets, plans and challenges. This will help guide the protégés towards areas paths that best fit their talent, abilities and inclinations. Further, definite, mutually agreed time frame should be set, with an open door policy at all hours of the

Krishna and Arjuna

Valmiki and Lav-Kush

Chanakya and Chandragupta

Adi Sankara and his Guru

day to make the protégé comfortable. The skills of the mentor ought to be assessed when formal mentors are allocated in an organization. Mentors can share life's lessons, giving protégé an honest perspective of themselves, the ways they can maximize their skills. They can help protégés in charting their career paths by helping them to determine their role and responsibilities and inspiring them to uncover their potential to the fullest extent possible within the framework of the organization. The success of the mentor - protégé relationship lays not so much in dedication as in realistic expectations from each other. This engagement is one of the most essential and at the same time one of the most difficult elements to manage in any organization. From time to time, the organization should recognize achievements and ask successful mentors to give talks, to keep up the interest of the mentors in the organization. Successful mentoring requires lot of care, planning and conscious efforts by both mentor and protégé. And finally, sensitivity and complete confidentiality regarding the information shared by protégés on professional and personal counts is very much essential.

Conclusion Among all the resources of organization it is the people that differentiate organization from one another. Because other resources such as money, material, machine themselves are inactive and can be made productive through human resource only. The recipe of success for any

knowledge economy organizations hinges on its ability to leverage human potential, so as to deliver business results. Employee development and retention plays a pivotal role in their growth. Mentoring contributes to social development by creating awareness, enhancing knowledge, promoting sociability (Gurukul) and making people conscious of their surroundings and environment. Counselling and mentoring are the vital tools of HRD and organizational effectiveness. Though a large number of organizations use their tools, much is needed to make their application wide based and popular. Encouraging the institution of mentorship will positively influence employees commitment, contribution and continuity. With a mentor as their best friend, guide and philosopher, at work and at times of need, bright young employee are able to raise their performance bar continuously. Further, they will find their organizations and work environment as one full of fun, excitement, achievement and reward. BM References 1. Singh Dr Karan., "The Upanishads and the Gita", Ratna Sagar P Ltd, Delhi 2. God World (2002), "Teachings of His Holiness Sri Ganapathi Sachinthanada Swamiji", Vol.III, Raga Ragini Trust, Mysore 3. Sathya Sai Shree Lakshmi (2000) "A Comprehensiuve life sketch of Sri Shiridi Sai Baba", Sathya Sai Vedanandalayam, Books and Publications Trust, Hyderabad 4.http://www.in.wikipedia.org/wiki/guru-shisyatraditions Business Manager

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Do’s & Don’ts For Mentors

Do’s

Don'ts

Share passion, enthusiasms, success stories, even failures and learning from failures.

Don't assume role of superior.

Involve / facilitate involvement of protégés in various work groups / meetings etc. Introduce protégés to as many people as possible. Guide protégés on interpretation of rules / policies / regulations etc.

Don't make Protégé wait for too long to meet you. Don't give any negative comment / feedback about Company / Policies / Persons.

Extend helping hand to protégés in crisis situations.

Don't Sacrifice your primary responsibilities.

Provide guidance with respect to career planning.

Don't give false hope / promises to Protégé.

Listen attentively to the protégés. If possible, invite them for a cup of tea / snacks / lunch / dinner once in a while. 24

Don't make Protégé completely dependent on you.

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Don't display any behavior, which contradicts Values. Don't intimidate Protégé.

Experts’ View What I have learnt from my two mentors, Mr. Mane and Mr. Ghosh, is something that no book could ever have taught me. Their selfless dedication towards guiding has imbibed me with a similar approach while dealing with colleagues or protégés I now mentor. have been fortunate to have quite a few memorable Mentors throughout my career so far. They helped me through many a crisis, guided me and helped make me the professional that I am today. I thought it might be useful to share some personal experiences interspersed with academic learning's on Mentoring and making a success of it. My first job was that of a Management Trainee in the IR (Industrial Relations) function, on the shop floor of what was then a leading petrochemical company. Straight out of campus, I was honestly, quite lost on day one.The HR Manager introduced me to the plant Technical Head, Mr. Sujit Mane and said he is your Mentor. During a three hour conversation, Mr. Sujit told me about the plant, technical process, key people, problems, personal experiences of how he survived many a crisis and suggested that I use the one week plant familiarization program to observe workers in the canteen closely and build bonds with them. I reported to the Plant IR Manager and not to Mr.Sujit. One learning straight off the bat was that the Mentor must be from another function (not your reporting boss) and someone in a position of influence who can help when needed. Mr. Sujit asked me to observe workers when they had the first morsel of food in the general shift. It was a sure shot way of knowing whether they liked the food or not. A lot of worker problems started with quality of food. A content worker is an asset.With time, I saw that some workers always smiled while others looked perpetually stressed. The time spent in the canteen helped me get a quick insight into a worker's mind. I introduced myself as a Trainee and asked them for their views on how to deal with various real time situations.This broke the ice and helped me build bonds. At our next meeting, Mr. Sujit laid out the broad contours of how the mentor-protégé relationship would work. Objectives mutually agreed were of understanding the organization's culture, meeting short term goals, my development, feedback and finding solutions. He started by telling me his own experiences as a trainee, the mistakes he made and how he learnt things the hard way. By sharing his vulnerability, he subconsciously built a bond. He repeatedly asked me for feedback and was ever willing to hear me out. Through the next few hours, Mr. Sujit made me feel that I could trust him implicitly. During the next one year,Mr.Sujit's guidance ensured that I got excellent exposure to both, the macro and micro aspects of the factory's operations. Every time I shared details of mistakes made, he would never reprimand me,but made me reflect on my actions, think of possible solutions and suggest the option he would have chosen and why.This way mistakes did not dent my confidence but learning from Mr.Sujit's solutions enhanced my self-esteem. With time, I began to anticipitate problems. We first discussed the issue threadbare,analyzed solutions and agreed on the best way forward. Mr.Sujit always ended by saying that by virtue of being the person on the spot, I was the best person to choose

Making Mentoring Memorable Aparna Sharma Director-HR, DBOI Global Services (Deutsche Bank Group)

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Experts’ View

Dr. Aparna was recently conferred the HR Super Achiever Award by Star News at 20th World HRD Congress 2012

from available solutions. \ Mr.Sujit had a great impact on me in my formative years as a professional and on overall growth. He was always "the go to" person whenever I had to discuss something official or personal, that I probably could not openly speak about with anyone else. He respected the process too and always made time to give me his ear and help. Now let us look at the concept of Mentoring from an academic perspective. WHAT IS MENTORING? It is most often defined as a professional relationship in which an expert (the mentor) who has huge experience and wisdom assists a growth oriented novice (the protégé/mentee) in developing specific skills and knowledge that will contribute to the mentee's professional and personal growth. Structured mentoring programs help in many ways Guide new employees find their bearings in the organization that eventually results in talent retention and lower turnover cost. Gives senior management an opportunity to nurture employees and showcase leadership skills. As one grows in age, sharing experiences can be a therapeutic experience. Given the pace of change in the external environment, it becomes a vehicle for senior management to know how the younger generation thinks and works. It is s a means to preserve institutional memory. Inculcates a culture of sharing knowledge and insights within the organization. A mentor can use the program to get knowledge about other parts of the organization. It can also be used as a tool to effect changes in organization culture. Elevating knowledge transfer from just getting information and to retaining the practical experience and wisdom gained from long-term employees. Enhancing professional & personal development of employees. WHO WILL BE THE MENTORS? Period of mentoring: 1 - 2 years.There is no hard rule about the duration as the mentor - mentee relationship will be one based on trust and confidentiality, which only fosters the process of mentoring. My first mentor, Mr.Sujit continues to be my mentor even though both of us do not work for the same organization anymore. He has become my guide for life. Mentor mentee ratio: Each mentor can have a minimum of 2 and maximum of 5 mentees depending on the time he/she can spare, more importantly quality time. Mentors should undergo some formal learning on the process of mentoring.This would supplement what mentors already know and make the 26

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program structured. It would help if a special training program is organized for mentors after the list of mentors and mentees is finalized. A formal mentoring program in an organization should always be measured and monitored. The measure of development of the mentee to be formally agreed upon by the pair and the Head of Department informed who would monitor progress on a quarterly basis. With time, I moved into a start-up that was one of the five business units in a large MNC. I faced many challenges, one of which was multiple reporting within and outside the country. Senior Management probably realized the job complexity and interpersonal dynamics, so appointed a very senior HR professional, Mr. Sam Ghosh, as my Mentor. The first meeting with Mr. Ghosh was tough yet memorable. For 4 hours, he quizzed me on just about every topic under the sun. My interviews for the same job were easier in comparison. As he jokingly told me later, I grilled you to understand the type of person you are and know the level of professional experience/knowledge as well. Mr. Ghosh was my anchor in the vast new organization where I headed HR for a big captive business in India. I was part of a matrix structure globally with three bosses in different continents. He took me under his wings and helped me understand the structure, people, processes and business demands since he had worked with the Group for over fifteen years. Mr. Ghosh made me realize the importance of forging partnerships in groups as large as ours. His efforts shortened the learning curve and made me add value to the job within months of joining. More importantly, he shared small snippets about interpersonal play between senior management (critical at senior levels) that went a long way in helping me meet the conflicting demands of three seniors. By virtue of being from a different business yet being part of the same group, he took a distant but organizational view to the various challenges that I faced from time to time. His unique perspective helped me come out with innovative solutions that fell within Group Policy, hence got wider and quicker acceptance. All along he asked me to closely observe how others responded, actually what was not being said, so that I could customize the HR solution. Mr. Ghosh paid me a compliment by saying, 'Aparna you have the knack of getting the best of your mentor i.e.me'.I humbly thanked him for his kind words and said that his ability to dispassionately listen encouraged me to raise issues with him. In a lighter moment, he told me that his daughter was nearly as old as me, how our interactions made him understand his daughter better. By inviting me for his annual Ganapthi puja (prayer), Mr Ghosh made me part of his family.I felt closer to him and his family, a feeling that I cherish even today although we do not work for the same group any more. A good mentor continues to guide a protege even when they no longer work for the same company or live in different continents.Mr.Ghosh's amiable nature allows me to consult him even now on professional challenges years after we worked together. What I have learnt from my two mentors,Mr.Mane and Mr.Ghosh,is something that no book could ever have taught me.Their selfless dedication towards guiding has imbibed me with a similar approach while dealing with colleagues or protégés I now mentor. BM

Expertsâ&#x20AC;&#x2122; View entoring has come a long way from the days of Odysseus. While no one disputes the importance and effectiveness of a strong mentoring relationship, the form and manner in which mentoring relationships unfold in organizations has undergone a change.With the advent of social media, coupled with a more diversified workforce and the emphasis on anywhere anytime learning, we are seeing new and interesting innovations in the field. Here are some interesting trends around mentoring in organizations and issues to consider while adopting the same. 1. Mentoring trees and cross organizational mentoring: Any individual has a varying set of developmental needs not all of which can be met by a single individual. These needs evolve as an individual and her career evolves. No single person has all the experiences and skills that a mentee can require. For instance, a technically competent person may be socially incompetent and would not work for the mentee's need to become better networked in a new organization. Organizations are also starting to realize the limitations of the single mentor model.Therefore a large number of companies are introducing: mentoring trees or group/circle mentoring. The mentoring tree involves more than one mentor paired with more than one mentee. The mentees may be at similar levels of development and in need of similar inputs. In many organizations, group mentoring is taking the form of 'affinity' networks where employees may be grouped based on gender, culture, disability or support needs. The aim is to provide specialized mentoring and support for a group of people with similar requirements. Having more than one mentor also provides access to more than one perspective and the lack of availability of one mentor at any time does not stop the group from meeting and progressing. The mentoring tree may also be populated with individuals who bring complimentary skills to the table and hence enhance the learning of the group as a whole. Organizations are also realizing that all learning desired by an employee may not always be contained within the boundaries of their own firm. Hence there is now a trend towards crossorganizational mentoring relationships. The Financial Times Stock Exchange (FTSE) 100 companies in UK now have chairman of their firms mentoring women from other FTSE companies to expand the range of experiences and learning for the Mentees. This initiative is directed at improving the diversity in the boardroom and indicates a new era of collaboration between organizations. As with any initiative there are down sides of mentoring trees. Lack of confidentiality, absence of one on one interaction, and the group setting may not always suit individual tastes. Coupled with the need for profile matching and logistics of arranging such meetings,the mentoring trees are by no means an easy task. Last but not least, the culture within the firm has to be conducive for such group learning and sharing of experiences. In the absence of a culture where groups provide safe spaces for learning and failure is not held against you, the mentoring circles will not thrive. 2. Reverse mentoring: Mentoring at its core is a form of knowledge and experience transfer. If knowledge and experience can reside at any level and place in the organization, then it is a fallacy to think that mentoring can only be top down. Reverse mentoring opens the door for those lower in the hierarchy or younger in age to provide mentoring to those more senior to them. Jack Welsh is often cited as a proponent of

Mentoring 2.0: Taking mentoring to the next level Dr. Tanvi Gautam Managing Partner, Global People Tree

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Expertsâ&#x20AC;&#x2122; View Trends

1. Organizations are

also starting to realize the limitations of the single mentor model.Therefore a large number of companies are introducing mentoring trees or group/circle mentoring.The mentoring tree involves more than one mentor paired with more than one mentee.

2. Organizations are also

realizing that all learning desired by an employee may not always be contained within the boundaries of their own firm. Hence there is now a trend towards crossorganizational mentoring relationships.This initiative is directed at improving the diversity in the boardroom and indicates a new era of collaboration between organizations.

It is a fallacy to think that mentoring can only be top down. Reverse mentoring opens the door for those lower in the hierarchy or younger in age to provide mentoring to those more senior to them.

5. Technology can come into the mentoring relationship either in the creation or administration, as well as the sustenance of a mentoring relationship.The administration of the mentoring program at a larger scale becomes possible through e-mentoring platforms.

reverse mentoring and the idea has been around for almost a decade. Started primarily as a means of helping older executives learn technology from the new ones, it has now expanded itself to the idea that each individual in the organization has unique insights and experiences that can be of value to others. Cisco systems,Ogilvy and HP are just some of the organizations that have formal or informal reverse mentoring relationships. While the older workers get great insights into what life looks like outside the corner office of their ivory towers, the younger ones gain visibility and status. In the fast changing business environment of today, restricting mentoring to a one way flow i.e. from top to bottom, limits the learning potential of an organization. Culturally, reverse mentoring is a challenging initiative. It requires a certain degree of openness, trust and self awareness before the program can be successful. It is important for organizations to create a culture where learning is more important than the status of the mentor. Training the younger mentors in communication styles that help in transfer of learning and experiences in a manner that makes it more acceptable to the older executives is also important. HR may be required to play a facilitator role in helping such initiatives succeed. 3. Role of technology: E-mentoring, telementoring, remote or online mentoring are all just ways of introducing technology to support the mentoring relationship. Technology can 28

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Each individual in the organization has unique insights and experiences that can be of value to others. Cisco systems, Ogilvy and HP are just some of the organizations that have formal or informal reverse mentoring relationships.

6. Given the high degree of comfort that Gen Y has with technology and online relationships, this format of mentoring is bound to grow in the coming years.

come into the mentoring relationship either in the creation or administration, as well as the sustenance of a mentoring relationship. Organizations,for instance,may create databases of available mentors for mentees to sign up under their preferred mentors.The administration of the mentoring program at a larger scale becomes possible through e-mentoring platforms. Other organizations use electronic communities created around topics to foster learning within organizations.Still others may pair up mentor and mentees and use technology primarily to facilitate communication. There are many advantages to the ementoring initiatives. One of them is its ondemand nature that allows employees to transcend space and time. A mentee can be connected to a mentor who might be at the other end of the globe. Additionally, the scale that is afforded by technology is unmatched by the face-to-face mentoring initiatives. Given the high degree of comfort that Gen Y has with technology and online relationships, this format of mentoring is bound to grow in the coming years. Infosys launched the 'infybubble' in June 2011 launched an internal Facebook like platform to create communities within the firm. All new joiners are batched together on this platform and this provides them with opportunities to learn more about the firm and its culture from other employees. Speed is another attractive aspect of e-mentoring. While people may not find time to meet face to face always, a quick response through a mentoring system can bridge the gap till the

time that such meeting is possible. By using e-mentoring platforms organizations also end up creating knowledge and competency maps of people within the organization. The tracking of mentoring interactions also becomes easier. It should be kept in mind though that technology enabled mentoring is no substitute for real mentoring relationships. It may be useful for organizations to have the mentor and mentee be in some level of stable relationship, or have initial face to face meetings if possible, before transitioning into the e-model of mentoring. Also it should be recognized that the level of comfort felt by younger generation around technology may not be shared by older employees and hence technology might even end up becoming a barrier to such relationships. There is also the cost element in terms of the company having the band-with to support such initiatives. Although with the advent of a number of free technology tools like Skype such initiative are becoming more and more easy to adopt and implement. To conclude, mentoring hold tremendous potential for helping an organization grown and learn. However the traditional format of mentoring, one on one, and in person has some limitations. It is in the interest of organizations to recognize the crossfunctional, networked based, and geographical spread of knowledge available to them and use some of the listed tools to make the most of the available opportunities. BM

Expertsâ&#x20AC;&#x2122; View To be a good Mentor... Are you genuinely interested in people and committed to help others develop and grow? Can you provide sufficient time with the mentee possesses? Do you communicate effectively and listen actively? Are you wired to listen to the unspoken and pay attention to the body language and other sensory cues of the mentee?

Being patient & building trust... Poonam Sharma Director-HR, Heidelberg Cement

ontemporary mentoring takes many forms and more structured approaches are emerging. Formal mentoring has a structure. It involves an agreement to mentor and be mentored, a clear framework for mentoring and perhaps a program of support. In a formal mentoring relationship, there is discussion of expectations, goals and the process to be used. The frequency and duration of contact is agreed and ground-rules are established. Individuals may establish their own mentoring arrangements or participate in a mentoring program. You may find two colleagues mentoring each other through peer mentoring process or through cascading mentoring process where in each level of the Organization mentor those below them. Here, mostly it is one on one process. As in most types of mentoring, there is a place for offering another perspective, expressing an opinion or providing information.However, the decision-making responsibility always resides with the person who will implement and experience the consequences of their own actions. Because the partners recognize each other as peers, it can be easier to offer and receive input as information rather than advice. Some Organizations also have a structured group mentoring process, where one mentor may meet several mentees together. Like quality circles, now mentoring circles also are taking shape, where each person mentors another and is in turn mentored by another. It is often debated as to what should be the purpose of mentoring.Does it involve skill transfer or should it be limited to problem solving? Should the mentor be like a coach with topdown approach or should he be a friend? In a world, where we are now talking of reverse mentoring, with non executives mentoring executives, the purpose of mentoring has attained a wider connotation.The purpose of mentoring is today seen as development through a process of learning not teaching. Both mentors and those mentored grow from the experience. People develop a synergistic relationship through a conversation that enables them to set and achieve goals, make decisions and solve problems. Mentoring is enriching and satisfying for both partners. Unlike coaching, which is often confused with mentoring, the role of the mentor is to build rapport, ask questions,

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The purpose of mentoring is today seen as development through a process of learning not teaching. Both mentors and those mentored grow from the experience. People develop a synergistic relationship through a conversation. listen and elicit the mentee's own wisdom. The mentor does not have to be older, wiser or have specialized knowledge in any field. They need to be skilled in leading a mentoring conversation. A mentor does not provide answers but acts as a catalyst in helping the mentee find his own right answers through his skills of asking the right questions, not the leading ones but more of the open ended variety. Organizations seeking external help for some of their key positions today are seen approaching professional mentors. These Mastermind mentors are available for areas like marketing, public speaking and ecommerce. Many business coaches are franchisees who have purchased the right to use intellectual property and systems developed by a particular expert. However, you may find that a few business mentors and some coaches rely on application of mentoring philosophy of listening and questioning to elicit the mentee's own wisdom. While Coaching is used when there is a well-defined goal that is based on improving skills and performance. Mentoring is valuable for career development, providing general guidance, setting and achieving goals, making decisions or facilitating problem solving. Coaching is about performance, mentoring is personal. So while it is appropriate and desirable for a person's immediate supervisor to coach them, a mentor is best not to be in the direct reporting line. Like all professional arenas you have good mentor and bad mentors. So what does it take to be a good mentor? If you are gearing to be one, ask yourself if you are genuinely interested in people and committed to help others develop and grow? Can you provide sufficient time with the mentee

A mentor does not provide answers but acts as a catalyst in helping the mentee find his own right answers through his skills of asking the right questions, not the leading ones but more of the open ended variety. 30

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possesses? Do you communicate effectively and listen actively? Are you wired to listen to the unspoken and pay attention to the body language and other sensory cues of the mentee? A mentor must also be able to resolve conflicts and give appropriate feedback. He/she needs to be secure in his/her position and should have been successful in his/her own field to mentor with conviction. A mentor is one who shows respect for another's well-being. Every person, including the mentor, has certain vulnerabilities and imperfections that must be accepted. A mentor should learn to accept a mentee's weaknesses and minor flaws, just as the mentee must learn to accept the weaknesses and flaws of the mentor. Mentors can, in fact, help a mentee explore his or her vulnerabilities and imperfections. Without passing judgment, a mentor must also recognize that differences in opinions, values, and interests will exist. By accepting such differences, a mentor projects openness to others. Also, it pays to remember that biases of any kind will simply wipe out any success achieved in the past or hoped to achieve in future. A successful mentoring relationship not only depends on the characteristics of the mentor, but also on the characteristics of the mentee. A mentee has a strong desire to learn new skills and abilities, or a desire to develop existing skills and abilities and seeks educational and/or training opportunities whenever possible to broaden his or her capabilities.He strives to elevate his or her level of technical skills and professional expertise to gain a greater mastery of the job. For the success of any mentorship program, following a few golden rules will go a long way, like respecting your mentee's time as much as your own, always asking if you can make a suggestion or offer feedback, telling your mentee that you don't expect them to follow all of your suggestions and expecting your mentee to move toward his/her goals; not yours. Expressing appreciation to any help your mentee gives you and keeping the relationship on a professional basis helps recognizing conflicts in a respectful way The key, however, like in all relationships is in being patient and building the initial trust and sustaining it through strong commitment and conviction. BM

Expertsâ&#x20AC;&#x2122; View entoring is well known in big business and many organizations run formal mentoring programs created in-house or borrowed from their overseas home office. However, a large number of medium to small Indian businesses pay only lip service to the concept and can rarely differentiate managing on the job from mentoring. As author John Hersey says,â&#x20AC;&#x153;The single most important job of a leader is to create leaders, not followers" and that is what differentiates mentoring from getting someone competent in doing just their job. Lets understand the difference between a boss, mentor and a coach as they are often confused. A boss has authority over his team, gives direction and the boss is always right in a hierarchal culture like India. Most bosses also tend to think of gaps and weakness in an employees skills and performance. A mentor is someone who is accessible and ready to give support and keen listener,who the Mentee follows out of respect.Importantly the mentor focuses on strengths,giving right directions and ensures mentee does not become defensive. A mentor usually knows more than mentee about subject & is someone inside the organization or in the same work space.A mentor can be an direct boss,a skip level boss or someone senior in another division.A Coach need not know the subject or organization at all,he asks questions. & can be someone internal or external to the organization.The next understanding we need to develop is what is critical steps to a mentoring process and how should we overcome some barriers to mentoring.A mentoring process is a positive feedback loop with each cycle strengthening the trust and performance of the mentor and mentee. The most important understanding to develop is that mentoring is a process of choice and act of volition. An effective mentoring process is always bottom up and not top down. The first actor in this process is the organization: it creates an environment where everyone is encouraged to have a mentor, It creates a events in an employees life in the company where they regularly ask and answer for themselves how they want to grow (and not driven by any appraisal cycle), the organization is ok and makes time and resources available for employees to step out from day to day transactions and goals to focus on growth.The second actor is the mentor, someone who accepts his role as a responsibility for the right reasons- to develop someone and not just to fulfill a leadership obligations. Someone who is willing to step out from the formal and professional boundaries to become personally invested in the mentee's future. A mentor must set agreements, time frames to follow up and consistently and objectively measure the results of the mentee to make sure this mentoring process doesn't just become a periodic conversation The final actor in this process is the mentee: who must learn to listen without prejudice and accept the wisdom of the mentee, who must set high goals and who must learn to ask for help leaving the ego behind.That's why mentors must be chosen and can never be enforced. After many years of developing leaders, one of the skills that requires the greatest investment of our time as facilitators is in developing mentoring skills. Some of the most common reasons we've heard over the years range from: I keep having a continuous dialog with my team on their development, do i need a structured process? Yes, there is nothing casual about the mentoring process. Both parties in a mentoring process should realize this is a development process with goals and accountability It seems odd to be in a formal process and ask for the mentee's permission after all i am senior to him/ her? While informal conversations are great, being selected for a formal mentoring process communicates a very important message to the employee " they are important". Get over your hesitation and ask them Will he/she be open to mentoring from me? You never know till you ask, make it safe for them to say no! I have tried helping him/ her in the past, but it hasn't worked? Then try it out with a different person, ask a peer to help you in this process and you can reciprocate by mentoring someone in their team.It is important to keep connecting with you co mentor to stay on the same page. BM

A Process of choice & act of volition.. Rohit Rajput Director, BULLET PROOF Manager (LCC)

Business Manager

April 2012

Dr. Jaya Bhalla National Institute of Financial Management, Faridabad

Corporates towards Green Era Now a days there is an immense pressure on employers for more climate-friendly products & services. A relevant focus should be placed on jobs and organizational design. HR can work collaboratively with the employees

limate change is a going concern for all of us. Burning oil, coal & gas, making electricity emitting too much carbon dioxide (Co2) is causing climate change. In our workplace we burn energy, consume resources and generate waste and it becomes an obvious place to tackle climate change. The IPCC concluded that the cause of climate change is due to increased amount of green house gas emission like carbon dioxide (Co2) in the atmosphere which traps the sun heat. The need of the hour is to stop rising Co2 emission by reducing the fossils fuels energy all over the world. It is important to adopt climate-friendly ways of living and working. Environmental protection benefits every one. Climate change and environmental destructions are the main issues which impact the life of everyone in the organization and world at large. There is an urgent need to adopt green go techniques which will improve the environment and reduce their further destruction. Now a days there is an immense pressure on employers for more climate-friendly products & services. A relevant focus should be placed on jobs and organizational design. HR can work collaboratively with the employees to encourage them to think more climate-friendly while developing products & services. Manufacturing companies need to have a look for their supply chain efficiencies and need to answer the following important issues like material used in the product, how it is manufactured or process of manufacturing, its distribution in the market and re-use of the packaging of the product. Green management initiatives has become

an important factor in forward thinking corporate around the world.HR is the department in the company to take the lead and start the green movement as they are directly involved in the creation and implementation of climate -friendly programmes.HR should initiate the steps so that employees must be inspired, empowered and environmentally aware of benefits of carrying out green management initiatives and programmes.HR professionals can encourage and bring the basic change in the attitude of the present employees and can oriented the new employees to adopt green go actions in their day to day working. Small or big, manufacturing or service sector, public or private any company around the world can go green and make a huge difference in their life. Corporate can motivate their employees to perform the environmental friendly activities such as: 1. Make your office paper less. 2. Encourage correspondence through mail. 3. Put computer on sleep mode at lunch breaks & tea breaks and at meeting times. 4. Turn off lights & air conditioners when not in use. 5. Use energy efficient lighting system like occupancy sensor. User energy star equipments. 6. Use energy efficient office machines to cut down the cost and carbon emission. Choose printers and photocopies which allow double sided printing and copying. 7. Recycle your office products like paper, plastic, cans, glass etc. 8. Keep reusable spoons, forks &

chopsticks in office to eliminate waste. 9. Keep small plant on desk it will act as a natural air filter, absorb pollution & Computer radiation, protect from germs, reduced fatigue, cough, sore-throat and reduces stress level. 10. Tele conferencing, webconferencing or video conferencing can be cost effective. The technology to enable virtual meeting is no longer expensive, infact it can be free. 11. Buy recycle content products like binders, paper products, printer cartridges, furniture etc. 12. Use organic products. 13. Buy refurbished goods like printer, photocopier, faxmachines etc. 14. Participating in events improving environment like plant a tree day, trash pick-up day etc. 15. Minimizing water consumption by using faucet aerators. 16. Flexible timings, Tele commuting. 17. Promoting walking, biking, taking public transit. 18. Encouraging/promoting/ providing carpooling for employees. Going green not only have economic benefits to the organization but it also have many intangible benefits like reduction in stress, reduced absenteeism and turnover, reduced emission, increase employee morale, strong public image, increase productivity, increase employee retention, improves work life balance and so on. BM Business Manager

April 2012

That which has intellect and emotion Surrogate HR creates a 'minuscule' space in the time-space dimension where mind receives diverse experiences, feelings and emotions beyond intellectâ&#x20AC;Ś

n organization is like a boat sailing in the business arena to acquire experiences and make a joyful journey. In order for it to float, it must use its intellectual innovation capabilities as its depth and collaborative spirit as its width. The depth explores the mental power while the width tries to meet passion. Innovation helps it to move from limited to unlimited resource base and collaboration assists to shift focus from known to unknown delivery arena. If it does not have sufficient depth or width, an organization is likely to sink in the voyage. To sail through, leader as a boatman has to have right kind of people as mainsail; without them the leader may drift the organization away from its destination. In the Industrial age, the factory Model of education has been very useful for an entry into an organizational space where services are managed through process standardization and reuse. Conventional management theories and practices have served them well for many years. Now, the world is passing through an expansion phase of the cycle. The old does not work as before because human being is learning to transform his emotions silently to focus more into his passion. Now the business organization is actively discussing about changing settings with the understanding of virtues and 'internal intelligence' of human. They bet on them as catalysts to really impact on the complex interaction patterns of individuals within their immediate environment. New questions are evolving. Can employees working inside organization make up as the workforce, like any other resources? Can an organization provide a structure to support, incorporate and assure his growth? The word 'capital' before human refers to this fact that the talents individuals possess can contribute to an organization in a much bigger sense. The realization is the prerequisite for the execution. An organization has to understand the basic fact that a bright young man with a flair for something he loves most is directed to an end that he cherishes most. Let us introspect it all. Human has four functional capabilities that can work for him in coordination with each other; a) intuitive, connected to continued existence of body like breathing, sensing, b) moving, connected to learning movement like writing, eating, c) intellectual, connected to thinking, d) emotional, connected to feelings and emotions. Intellect is the gift for analysis and interpretation that gives ruling, but emotions provide guidance. Decision-making is an outcome of intellectual progression leading to a specific course of action from multiple choices. Emotions help discovering partners in the value creation process. Value comes from the combination of both; one without the other loses attention of the whole. Correct understanding of the value always has a new tale to tell. Intellect is anchored at the bottom of the flow when the beautiful emotions merrily flow at the surface. Life evolves the way human feels the feelings and 34

Business Manager

April 2012

CHINMOY SARKAR the emotion is the basis Author, AXELL for human existence which in the form of guidance continuously asks to develop intellect. If intellect starts gaining depth, the emotions ceaselessly seek the width. One starts experiencing a beautiful form of self as width is expanded. Emotions start absorbing the pull of gravity with such strong feelings that intellect hands over the control to emotions. Management wants to create vision as an entity to drive human beings with objectives. Vision is external, path is known and inflexible; human likes freedom, his journey is unknown and flexible. The main job of HR function is to integrate an inflexible part with a flexible whole. Often the exercise fails to deliver results as the whole is blamed as 'disgruntled' when the part sticks to its own rigidity. Let us see popular HR related words: motivation, inspiration, partnership and empowerment. Organizations use the concepts of incentive to motivate employees to give their best. Does it really work for them? Motivation is a journey when the employees are pulled towards the destination. Motivation is about strengthening goal-oriented activities, it is a form of exploitation of precious human energy for a cause located outside the self. It manipulates weaknesses and tries to control human behavior. Motivation relates to 'boosting morale' and 'willingness to give best'. Inspiration awakens feelings; it is an appreciation when he sees his inner self naturally moving towards the desired goal. Inspiration can create turmoil within and force someone to venture in this unchartered path. Partnership unites all to feel abundant in the journey. Finally, an empowered human being carries out the spirit of unity to its logical goal. Who is a superior performer in the organization? Is he the person who exhibits, or who inspires? The hierarchical nature of organization undervalues love and inspiration that can influence and transform human. He lacks power give him the strength to choose. He is no good in doing things give him an opportunity to see its value. He feels violent from within give him the inspiration to observe self. He is feeling helpless give me an inner eye to recognize his own potential. If not addressed properly, the gaps can create stress in human which may assume a disproportionate shape to destroy the whole society. But, a human under stress can also find ways to make it an opportunity to reassure his exploited self and help him to include new circumstances to use his extraordinary talents. Surrogate HR is about valuing the essence of human behind all these feelings and emotions. BM

GOVERNMENT NOTIFICATIONS REVISED MINIMUM RATES OF WAGES IN MAHARASHTRA The Rates of Basic Pay & Special Allowances for the period 01.01.2012 to 30.06.2012 BASIC Sr.

Nature of Industries

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

38 39 40 41 42 43 44 45 46 47 48 49

Advocates & Attorneys Automobile Repairing Bakeries Cotton Ginning & Pressing Cloth Dyeing & Printing Cashew Processing Cardboard-Strawboard Chemical Fertiliser Canteens & Clubs Cement & Cement Base Construction of Road Cinema Exhibition Cycle Mechanic Workshop Dispensary Drug & Pharmaceuticals Dairy (Dugdhalaya) Exercise Book Eatable Tobacco Engineering Factories Residual (Factories not covered under Schedule) Fountain Pen Film Production (Cine Studio Lab) Glass Bulb Glass Industry Hotels & Restaurants Hair Cutting Saloon Hospital Ice & Cold Drinks Liquor Laundry Optical Frames Oil Mill Paper & Paper Board Plastic Paint & Varnishes Poha/Kurmura Powerloom (Above 184) Powerloom (Less than 184) Printing Press Public Motor Transport Readymade-Garments Rubber Rice Flour & Dal Mill Rubber Balloon Steel Furniture Seepz Stone Breaking & Crushing Soaps & Cosmetics Shop & Establishment Sweeper & Scavengers

Saw Mill

P.M.

4400.00

4900.00

5400.00

--------

1344.00

Tanneries & Leather manufactory

P.M.

3200.00

3300.00

3400.00

--------

2004.90

Utensils

P.M.

4300.00

4400.00

4500.00

--------

Wooden Photo Frames

P.M.

2940.00

3040.00

4040.00

Wooden Furniture

P.M.

3410.00

3510.00

3610.00

Watch Straps Mfg

P.M.

4800.00

5100.00

5500.00

Handloom

P.M.

3000.00

3500.00

4000.00

Soil Pot Maker

P.M.

3500.00

3700.00

3900.00

1214.40

Forest or Forestry

P.M.

5200.00

5600.00

6000.00

1023.00

Silver Industries

P.M.

4500.00

5000.00

5500.00

1408.00

Tobacco & Bidi Industries

P.D.

Gram Panchayat

P.M.

2070.00

2170.00

2270.00

1467.00

Colour & Chemical Inds (Dyes & Chemicals)

P.M.

4200.00

4500.00

4800.00

1821.61

Vita & Khil

P.M.

3300.00

3500.00

3700.00

1218.00

Stable

P.M.

3300.00

3600.00

3900.00

2151.60

21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

Mode Un-Skilled Semi-Skilled Skilled Highly Skilled P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.D. P.M. P.M. P.M. P.M. P.M. P.D. P.M.

3700.00 4800.00 4200.00 3105.00 4100.00 2600.00 2250.00 3310.00 3050.00 1204.00 4750.00 270.00 4500.00 4460.00 3110.00 1850.00 2880.00 3000.00 3530.00

3800.00 5100.00 4700.00 3220.00 4400.00 2800.00 2275.00 3410.00 3100.00 1282.00 4850.00 315.00 5000.00 4560.00 3210.00 1950.00 2980.00 3200.00 3630.00

3900.00 5500.00 5200.00 3400.00 4900.00 3000.00 2350.00 3510.00 3200.00 1360.00 4950.00 360.00 5500.00 4660.00 3310.00 2050.00 3080.00 3700.00 3730.00

P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M.

4500.00 4800.00 4700.00 3550.00 3380.00 3050.00 3430.00 3260.00 2830.00 3510.00 3730.00 3010.00 4300.00 5100.00 4300.00 3740.00 3800.00 230.00 230.80 4400.00 4200.00 3960.00 3200.00 4200.00 3800.00 3640.00 4500.00 3950.00 3540.00 5000.00 4600.00

5000.00 5050.00 5200.00 3600.00 3480.00 3100.00 3530.00 3360.00 2930.00 3810.00 3830.00 3110.00 4800.00 5600.00 4800.00 3840.00 4250.00 240.00 240.80 4500.00 4600.00 4060.00 3350.00 4600.00 4100.00 3740.00 5000.00 4250.00 3640.00 5400.00

5500.00 5300.00 5700.00 3700.00 3580.00 3200.00 3630.00 3460.00 3030.00 4110.00 3930.00 3210.00 5300.00 6100.00 5300.00 3940.00 4400.00 270 (B) 270.80 (B) 4600.00 5300.00 4160.00 3500.00 5300.00 4300.00 3840.00 5500.00 4750.00 3740.00 5800.00

P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M. P.M.

----------------------

---------------

450.00

------------------------------------

--------

----------------------

Special Allowance + + + + + + + + + + + + + + + + + + +

2004.90 1545.60 1737.75 1449.00 1737.75 1421.00 1267.20 1408.00 2004.90 2592.00 2004.90 1710.31 1344.00 2004.90 2004.90 1518.00 2004.90 1489.50 2004.90

+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +

1344.00 1828.50 1536.00 2004.90 2004.90 2004.90 2004.90 2004.90 2004.90 2004.90 1382.40 1737.75 1069.50 1344.00 2004.90 1737.75

2004.90 1737.75 2004.90 1576.75 1737.75 1737.75 2004.90 1780.00 1669.50 2004.90 1004.40 1449.00

2004.90

--------

2004.90

--------

1737.75

1173.00

65.70

Business Manager

April 2012

GOVERNMENT NOTIFICATIONS Employees' State Insurance Act, 1948 Labour and Employment Department, Sachivalaya, Gandhinagar Dated the 3rd January, 2012 No: GHR-2012-04-ESI-18-2011-688529-M(3):- Whereas by a notification of the Government of Gujrat No. : GHR-2011-117-ESI-18-2011-688529M(3) dated the 30th September, 2011 which was published as required by sub-section (5) of section 1 of the Employees' State Insurance Act, 1948 (34 of 1948) at pages 42/1 to 42/2 in the Gujrat Gazette Extra ordinary, Part-I-L, dated the 2nd November, 2011, the Government of Gujrat after consulting the Employees' State Insurance Corporation and obtaining the approval of the Central Government gave one month's notice of it's intention of extend the provisions of the Act to the class of establishments as specified in the Schedule of the said notification; AND WHEREAS, no objection and suggestion has been received from any person in respect of the said notification; NOW THEREFORE, in exercise of the powers conferred by sub-section (5) of section 1 of the Employees' State Insurance Act, 1948 (34 of 1948), the Government of Gujrat, in consultation with the Employees' State Insurance Corporation and with the approval of the Central Government, hereby extends the provisions of the said Act to the classes of establishments specified in column (1) and situated within the areas specified in column (2) of the Schedule annexted hereto in the Gujrat state, namely :SCHEDULE Description of establishments (1)

Areas in which the establishments are situated (2)

The following establishments whereon ten or more persons are employed, or were employed on any day of the preceding twelve months, namely :(1) Shops; (2) Hotels; (3) Restaurants; (4) Road Motor Transport establishments; (5) Cinemas inlcuding preview theatres; (6) Newspaper establishments as defined in clause (d) of section 2 of the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955 (45 of 1955).

All areas where the provisions of the Employeesâ&#x20AC;&#x2122; State Insurance Act, 1948, have already been brought into froce under sub section (3) of section 1 of the Act.

By order and in the name of the Governor of Gujarat.

(Raman Maheria) Deputy Secretary of Government

Employeesâ&#x20AC;&#x2122; Provident Fund Organisation Bhavishya Nidhi Bhawan, Cama Place, New Delhi-110 066 No.Invest.I/3(2)/133/11-12/ROI/51350

Date : 14.3.2012

All Regional Provident Fund Commissioners Officers-in-Charge Regional Offices/Sub-Regional Offices Subject : Declaration of Rate of Interest for the Employees Provident Fund Members Account for the Year 2011-12. Sir, It is to inform that Ministry of Labour and Employment, Govt. of India, vide its letter no. R-11018/1/2010.SS-II dated 14.3.2012 has conveyed the approval of the Central Government under para 60(1) of Employees' Provident Fund Scheme, 1952 to credit interest @ 8.25% for the year 2011-12 to the account of each member of the Scheme. You are, accordingly, requested to issue necessary instructions to all concerned for crediting the interest to the members' accounts. Yours faithfully, (RAJESH BANSAL) Financial Advisor and Chief Accountant

Maternity Benefit Act, 1961 F.No. S-36025/01/2011-SS-1

Dated 19.12.11 Notification

S.O. 2831 (E) .- In exercise of the powers conferred by sub-section (2) of section 8 of the Maternity Benefit Act, 1961 (53 of 1961), the Central Government hereby makes the following amedments in the notification of the Government of India in the Ministry of Labour and Employment, published in the Gazette of India, Extraordinary, vice number S.O. 2016 (E) , dated 11th August, 2008, namelyIn the said notification, for the words "one thousand rupees to two thousand five hundred rupees", the words "two thousand five hundred rupees to three thousand five hundred rupees" shall be substituted. 2. This notification shall come into force on the date of its publication in the Official Gazette. Ravi Mathur, Addl Secy. 36

Business Manager

April 2012

GOVERNMENT NOTIFICATIONS Employees State Insurance Corporation Panchdeep Bhawan, C.I.G. Road, New Delhi-110 002 No. S- 11/12/2/2008-Rev.II

March 14, 2012

To All Regional Director/Director (I/C)/Joint Director (I/C) ESI Corporation Regional/Sub- Regional Office/DO

Subject : Amendment/modifications in New Inspection Policy- 2008. Sir/Madam, A number of new initiatives have been taken and also that the ESI Act has been amended w.e.f 1/6/2010, as such the New Inspection Policy 2008 promulgated vide Hqrs Office letter no. S-11/1212/2008-Rev-II dated 16/6/2008 requires certain modifications. The feedback/suggestions in this regard have been sought from RDs/Director (I/C)/JD(I/C). Considering all the suggestions received and deliberations held, the existing New Inspection Policy 2008 is being amended/modified. The object of this new amended Inspection Policy is to create a sense of cooperation and mutual trust amongst the stakeholders i.e. employers, beneficiaries and the Corporation. Our focus has to change and we have to ensure that coverable employees are covered and they get benefit of the EST Scheme and that willful defaulting employers are dealt with severely under law. However, before implementing this amended provisions of New Inspection Policy, the Director General has desired that cleansing the employers and employees/IPs data available with RO/SRO/DO for use in Project Panchdeep must be given top priority so that our available data base is realistic. The amended New Inspection Policy is being issued as under :A. Priority for inspections The priorities of the units to be inspected shall be in the following order:1. All New covered units 2. Defaulting units. 3. Closed units 4. Complying units with following conditions:(a) Units employing more than 250 employees may be inspected once in two years (b) Units employing less than 250 employees may be inspected once in three years. (c) Security agencies, manpower agencies, housekeeping agencies, labour supplying agencies etc should be subjected to annual inspection. (d) Inspection will be done only for one year which is the oldest of pending period, however, it is the prerogative of Regional Director/Director(I/C)/JD(I/C) if he/she has reasonable doubts, can order for the inspection of records for the remaining period but in no case beyond five years. (e) Units falling in any of the above priorities which are due for inspection and their period of inspection is likely to be over 5 years shall be given topmost priority B. Action in case of non production of recoril for inspection Wherever employer fails to produce the record, action for filing prosecution must be completed within one year from the date of first visit by Social Security Officer. In case of non-submission of records on the first occasion, the Social Security Officer will fix the next date of inspection in consultation with the employer and issue him a notice on the spot on which the signature of the employer shall be obtained. If it is found that the employer is deliberately avoiding production of records, then prosecution action be recommended to RO/SRO/DO. The Officer sanctioning prosecution shall also keep in mind that prosecution is not filed as a matter of routine but only against the chronic and willful defaulters. C. Survey and date of coverage I. Surveys of uncovered factories/establishments for coverage, if coverable, should be a continuous exercise. However, intensive surveys should be conducted at least three times in a year - in April-May, in September-October and then in December-January. Help of State Government, Trade Unions and EPFO should be taken in this exercise. 2. The SSO is required to recommend the date of coverage w.e.f the date the unit stands coverable, on the basis of records inspected, recommending the coverage at the time of survey of the Factory/Shop/Establishment as a topmost priority. The SSO is expected to undertake this exercise during the very first visit or in some cases during subsequent visit. It has been decided that the SSO shall not withhold the recommendation of coverage for want of production of Books of Accounts/Vouchers by the employer, as the Corporation always reserves the right to go for detailed verification of records including that of Books of Accounts and coverage may be decided from retrospective date in deserving cases. D. Complaint cases In case of complaints containing verifiable facts, surprise check shall be conducted. In case of other complaints, the same should be first examined in RO/SRO/DO and its authenticity confirmed. If the complaint is found genuine, then in the first instance, the employer should be called for ascertaining the facts of the complaint. Thereafter, employer should be asked to take corrective steps in a given time frame. If the employer has not taken corrective steps within the specified time frame, then detailed investigation/inspection should be carried out and appropriate action as per law should be taken. E. Duties and responsibilities of SSOs The duties and responsibilities of the Social Security Officers shall be as under :Business Manager

April 2012

GOVERNMENT NOTIFICATIONS 1) He/she shall ensure that all coverable employers and employees within his jurisdiction are registered with ESI Corporation and all the employees are issued with TIC/Pehchan cards. 2) He/she shall provide necessary assistance to all the beneficiaries in getting the benefits for which they are eligible. 3) He/She shall assist the employers in getting them and their employees registered, preparation of monthly contribution records/challan and payment of contribution. 4) He/she will also publicize the various benefits available under the ESI Act 1948 among the stakeholders. 5) He/she will conduct inspections in order of priorities laid down in the Inspection Policy in force from time to time. 6) While conducting the inspection, he/she shall ensure that all the employees working in the premises have been issued with the Pehchan cards. If he/she finds any employee who is not having Pehchan cards, he/she shall ascertain the reasons thereof and take necessary steps for capturing their biometric data, preparation of Pehchan cards and delivery of cards to IP through Branch Manager. 7) He/she shall also discuss with the employees working in the premises, at the time of inspection, about availability of benefits and shall make a report about their grievances, if any, on any type of deficiencies in Benefit Delivery System. 8) In addition to the above the SSO shall also carry out duties and responsibilities as assigned to them by the RD/Director(I/C)/JD(I/C) of RO/SRO/DO. F. Methodology of Survey/Inspection I. The Social Security Officers while visiting the Units for survey / Inspection will make it a point to meet the Occupier / Chief Executive of the factory / establishment and handover observation slip to him/her under proper acknowledgment. If Occupier / Chief Executive refuses to accept the observation slip, this fact should be mentioned in the Inspection Report and the said observation slip should be sent to him/her by Regd. post with AD. Even if there is no observation, this should be mentioned in the report before obtaining the signature of the Occupier / Chief Executive of the factory/establishment. 2. If it is found that any contribution is payable on particular amount which should have been included in wages then it should be decided on the spot during the Inspection after going through the documents. Tendency to record observation that "further observation if any, will follow from Regional Office after further examination of records" must be avoided. 3. Whenever an inspection is done it should be complete in all respect and final observation must be recorded properly. The Inspection Report of SSO will be treated as complete only where ledger verification is conducted. The SSO after checking the books of accounts as per the extant instructions on the subject will incorporate all the details in the Inspection Report. 4. The SSO shall be free to move within his jurisdiction and will give a date-wise list of units well in advance to Regional Office/Sub. Regional Office/Divisional Office that he/she is going to visit for Inspection purpose in a particular month. 5. While visiting employer premises they should take round of the premises and interact with the employees with regard to their coverage/issue of pehchan card/ satisfaction level etc. Where the SSO finds that the workers were not covered, he will get such employees registered online through employer and in case of non-cooperation by employer, he will immediately get Declaration Forms filled and handover it to the Branch Manager and TICs issued on the same day or on the next day. SSO shall also monitor the capturing of Biometric details of employees and their families so detected for preparation of Pehchan Card. After capturing of Biometric details, Pehchan Card shall be delivered to the employee within a week. 6. In case of new coverage, a date should be notified in advance when ESIC officers should visit the factory/establishment and get the employees registered online and â&#x20AC;˘ hand-over TIC/Pehchan Card personally to employees. It is being clarified that from now onwards the responsibility of handing over/delivery of TIC/Pehchan Card is that of ESIC and in no case TIC/Pehchan Card would be handed over to employer for distribution. G. Monitoring of inspection work : The Regional Directors/Director (I/C)/JD (1/C) would monitor the performance of the Social Security Officers on month to month basis and he/she would be accountable for non-performance/lower performance of the SSO towards coverage of new units/coverable employees. 1. The SSO have to submit tour diary along with Inspection Reports on weekly basis to RD/Director (I/C)/JD(I/C). A DO Letter will also be addressed to RD/Director (I/C)/JD(I/C) every month (by the 7th of the next month) by the SSO giving the details of the activities undertaken by the SSO. 2. The SSO will have to append a note in the monthly DO indicating the steps taken for covering coverable units/coverable employees, issue of TIC/Pehchan card. 3. At the end of the financial year SSO will give a certificate that "no coverable unit is left uncovered and no coverable employee is left uncovered in a covered unit in his/her inspection division and all covered employees have been issued with Pehchan Cards". 4. SSO should conduct at least one survey and one inspection each working day in such a way that a target of 20 inspections and 20 surveys in a month is achieved. 5. One year inspection with books of Accounts verification will be treated as one inspection in respect of units having employment strength upto 250. For the Units having employment strength more than 250 persons, RD/Director (I/C)/JD(I/C) will decide the weightage on the basis of quantum of work. The instruction no. S-11/12/2/2008-Rev-II dated June 16, 2008 issued earlier on this subject stands modified to the extent of this Instruction. The above instructions will be effective from 1st April, 2012. This issues with the approval of the DG/IC. Please acknowledge the receipt. Yours faithfully, (A.P. TRIPATHI) JT. DIRECTOR (REVENUE) 38

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GOVERNMENT NOTIFICATIONS The Bombay Shops and Establishments (Amendment) Act, 2011 L.A. Bill No. XLVII of 2011

Further to amend the Bombay Shops and Establishments Act, 1948. WHEREAS it is expedient further to amend the Bombay Shops and Establishment Act, 1948 (Bom. LXXIX of 1948), for the purpose hereinafter appearing; it is hereby enacted in the Sixty-second year of the Republic of India as follows :1. Short tittle - This Act may be called the Bombay Shops and Establishments (Amendment) Act, 2011 2. Amendment of section 7 of Bom. LXXIX of 1948 - in section 7 of the Bombay Shops and Establishment Act, 1948 (Bom.LXXIX of 1948) (hereinafter referred to as "the principal Act:),(a) In sub-section (2-A) for the words "upto the end of the year for which it is granted" the words "for a period of twelve months from the day on which it is granted or renewed" shall be substituted; (b) In sub-section (3-B) for the words " for a period of three years at a time, on payment of the fees for that period, so as to be valid upto the end of the third year from and including the year in which it is granted or renewed, as the case may be". the following shall be substituted, namely:"for a period of thirty-six months at a time, on paymet of the fees for that period, so as to be valid upto the end of thiry-six months from the date on which it is granted or renewed, as the case may be". 3. Amendment of Section 11 of Bom.LXXIX of 1948 - In sub-section (1), in clause (a), for the words, figures and letters"closed later than 8.30 pm." the letters "closed later than 10.00 pm." shall be substituted.

Employees' Provident Funds (Amendment) Scheme, 2012

F.No.S-35012/06/2011-SS-II

Dated: 24.01.12

Notification

S.O.154 (E).- In exercise of the powers conferred by section 5, read with sub-section (1) of section 7 of the employees' Provident Funds and miscellaneous Government hereby further makes the followingh amendment in the Employees' provident Funds Scheme, 1952, namely 1 (1) This Scheme may be called the Employees' Provident Funds (Amendment) Scheme, 2012 (2) It shall come into force on the date of its publication on the Official Gazette. 2. In the Employees' Provident Funds Scheme, 1952, in paragraph 22, for sub-paragraph (1), the following shall be substituted, namely :"(1) The Central Provident Funds Commissioner shall be Secretary of the Central Board and of the executive Committee. The additional Central Provident Fund Commissioner in charge of a state shall be secretary of the Regional Committee of the State or Union Territory where the State has more than one regional office, the Regional Provident Funds Commissioner-in-charge of the Region shall be the Secretary of the Regional Committee of the State or Union Territory within his jurisdiction". Ravi Mathur, Addl Secy.

The Contract Labour (Regulation and Abolition) Act, 1970 Vide the Gazette of India Extraordinary, Pt. II Sec, 3(ii), issue No. 1494, dated the 2nd August, 2011 at p. 1 Dated : 2nd August, 2011

S.O. 1787 (E).- In exercise of the powers conferred by sub-section 31 of the Contract Labour (Regulation and Abolition) Act, 1970 (37 of 1970), the Central Government, after consultation with the Central Board, hereby exempts the Kandla Port Trust, Ghandhidham, (Kutch), Gujarat from the applicability of the notification of the Government of India in the erstwhile Ministry of Labour No. 319 (E) dated the 8.5.1991 [in the Schedule against serial No.8(i) and (ii) thereof] for a period of one year with effect from date of publication of the notification in the Gazette of India, subject to the following conditions, namely:(i) the minimum wages of the contract workers shall be equivalent to the wages of the lowest category of the regular workers of the said Port and shall be paid through bank; and (ii) in the meantime, to fill up the vacant posts of regular sweeping cleaning staff.

The Contract Labour (Regulation and Abolition) Act, 1970 Vide the Gazette of India Extraordinary, Pt. II Sec, 3(ii), issue No. 971, dated the 25th May, 2011 at p. 1 Dated : 25th May, 2011 S.O. 1170 (E).- In exercise of the powers conferred by sub-section (1) of section 10 of the Contract Labour (Regulation and Abolition) Act, 1970 (37 of 1970), the Central Government, after consultation with the Central Advisory contract Labour Board and having regard to the conditions of work and benefits provided for the contract labour and other relevant factors enumerated in clauses (a) to (d) to sub-section (2) of the said section, hereby prohibits the employment of contract labour in the job of barrel filling and small can filling (upto one litre) in the establishment of Lube Oil Blending Plant of M/s. Indian Oil Corporation, Budge Budge, Kolkata, West Bengal.

The Sales Promotion Employees (Conditions of Service) Act, 1976 Vide the Gazette of India Extraordinary, Pt. II Sec, 3(ii), issue No. 404, dated the 3rd March, 2011 at p. 1 Dated : 24th February, 2011 S.O. 471 (E).- In the notification of the Government of India in the Ministry of Labour and Employment (Co-ordination Section) vide number S.O.217(E), dated the 31st January, 2011 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii), dated the 1st February, 2011, in line 12, for the word ‘cleaners’, read ‘cleaner’. Business Manager

April 2012

Labour Problems & Solutions

Anil Kaushik, Management Expert -HR & IR

Solutions provided here are in context to narrated facts & not in general.

Q. We have initiated disciplinary proceedings against an employee on the ground of serious misconducts committed by him. On each date employee creates nuisance and disorderly scene, abuses Management Representative, E.O. and even witness. Employee on each date requests for adjournment on one pretex or the other. if his request is not accepted, he bycotes the enquiry. The result is that enquiry is delayed and restrained. What should we do and how should E.O. proceed in such a case? Ans. : In such a case where employee is behaving disorderly and in filthy manner, E.O. should first warn him to mend his way and record in proceedings. If E.O. feels that adjournments are on false grounds, he may refuse to accept the request by recording sound reason in proceedings and if worker bycott the proceedings, E.O. even may go for recordings the evidence of Management witnesses by warning the worker that he may lose his right of Cross examination in case he does not participate in the enquiry. The main crux of the problem is that worker is trying to build up psychological pressure on Management and E.O. which should not be allowed to happen. In such a situation, E.O. should narrate the actual happenings and behavior of employee and also record that he has been given opportunity at each stage to defend himself. You should maintain during enquiry and delaying tactics of worker should be recorded on each proceedings. Bombay High Court in a similar case (2000 CLR Vol. 1 Page 1), has also held that where worker behaved disorderly, E.O. examined Management witnesses in the absence of worker, because he boycotted the proceedings, and turned down the request of re-calling the management witnesses for examination. High Court held the enquiry fair and denounced the worker behavior during enquiry. Q, I am a Trade Union Leader. We have about 15 unions affiliated to our union. Generally Management keep labour either on casual or temporary basis for months together and then give them artificial breaks, to deprive them of permanent status. Such workers complain us for redresal and to take up their cause. Is it not a unfair labour practice? Can we complain against such employers in court or Labour Deptt? What should be the proper course of action? Ans. The problem, which you have raised is very common. In my view, every employment need not necessarily be of permanent nature and it can be 40

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casual, badly or temporary. None of such employment by itself is an unfair labour practice, provided such employment does not continue for years together with the object of depriving them of privileges of permanent employees. The work being of perennial nature requiring a permanent employment of workmen where temporaray persons are employed for years would certainly be a situation of unfair labour practice. Mere temporary employment for some part of every year without sinister object the employer will not fall within this mischief. First, you should see and examine as trade union leader whether the so employed workers are getting less wages than minimum wages. Whether the work, which the temporary workmen do is of perennial nature? If the answer is positive, then you may first discuss with the employer to assess his intention and objectives and then may proceed for legal action. If the intention and object of the employer is not unfair, then you should not unnecessarily indulge in legal battle, which may in due course result in to unemployment of such workmen. Now a days, getting employment is very difficult. Being a trade union leader you should not only see better wages and status for worker but also security of Job and employment for workers. However, before entering into legal battle on this issue, you are advised to go through the judgment of Bombay High Court (Bajaj Auto Ltd., Akurdi, Pune vs. R.P. Sawant 2000 1 LLR 7), in which it was held that such practice of employer was not unfair labour practice. Q. One of our employees has been arrested and charge-sheeted on the ground of serious offences under I.P.C. In our standing order, there is a provision to terminate such employee who has been arrested. Are we under obligation to follow principles of Naturals justice? Ans. It all depends on the situation and facts and circumstances of each case. When the Authority concerned is of the opinion that it would be against the interest of security of the organization to continue the employment of the concerned employee, when serious acts are likely to affect the foundation of the institution, Doctrine of Principles of natural justice has no application. Kerala High Court in the case of Usha vs. Kerala State Handloom Development Corporation Ltd., 2000 I CLR 610 has held that when employee was arrested and convicted by the Court on the ground of certain serious offences, management as per corporationâ&#x20AC;&#x2122;s rules dismissed the employee after arrest. Employee challenged the Courtâ&#x20AC;&#x2122;s conviction and Higher Court

Labour Problems & Solutions stayed the execution of conviction. Employee challenged the dismissal order on the ground that since Court stayed the conviction and principles of natural justice were not followed, her dismissal order should be quashed. Kerala High Court rejected the contention of the employee and held that order of dismissal does not lose its sting merely because execution of sentence is suspended. Also Doctrine of Principles of natural justice has no application in such a case. Supreme Court in the case of Hari Pada Khan vs. Union of India 1996 SC 1065 has also held in the same direction. Q. We have a recognized Union in our company. We want to shift our activities to other unit & entered in to a bipartite settlement with union of the company regarding full & final settelment of workers in order to carry out the execution of operations peacefully and effectively. Is this settlement binding on all workmen? Ans. No. This bipartite settlement regarding full and final settlement of all workers through recognized union is not at all binding on affected workmen, since it is in contravention of provision of Sec.18 (1) of I.D. Act. 1947. You should not take risk in such a way. Such agreement should be with the individual workman regarding his full and final settlement. Bombay High Court in the case of Yashwant Jagan nath Ingwale vs. Snowcem India Ltd. [2000(84) FLR 467] has held that where recognized Union entered in to bipartite settlement with the Management regarding full and final settlement of past, present and future of workman in view of closure of the factory, was held to be invalid and not binding on workmen, In this case Court held that employment of such workmen will continue and operative. Q. We have suspended workers who were found guilty of misconduct by absenteeism upon annual assessment of attendance. They are facing enquiry. Our advisor has suggested that we should not make contribution of ESI on their subsistence allowance which we find not convincing. What is your expert opinion ? Ans. You have not received the best advice. Wages for the purpose of ESI Contributions u/s 2(22) of ESI Act do engulf “Subsistence Allowance”. It cannot be said that subsistence allowance paid is an amount paid for services rendered and so it is not remuneration. Subsistence allowance paid was included in wages by some High Courts (1985 LLJ 173 Kant), 1993 (1) LLJ 870 (Ker), 1994 LLJ 640 (Ker). But Supreme Court settled controversy in popular Automobiles case 1998 (1) LLJ621 (SC) holding that all employees are entitled to get the statutory coverage of the benefits. An employee will not cease to be an employee covered by Act if he is placed under interim suspension pending enquiry. It is axiomatic that during suspension period the employer-employee relation does not come to an end. Consequently on the subsistence allowance employee and employer both would be liable u/s 39 of the ESI Act to contribute their part.

Anil Kaushik, Management Expert -HR & IR

Q. I have received an application by our senior employee working with us over 20 years who is likely to be superannuated in July 2012 unless given extension. This employee wants a correction in his recorded date of Birth. What should we do? Pl. provide some guidelines for future also. Ans. In this instant case the employee’s application appears to be devoid of any merit. After remaining in service for 20 years if an employee seeks change in date of birth on the eve of superannuation, prime facie it appears malafide. However, if evidence of unimpeachable character is produced to substantiate the claim then only the application should be considered. Unless the service conditions or contract of employment specifically permit the employee to claim correction of date of Birth, the employee cannot claim correction of date of birth as of right and there is no obligation on the part of the employer to accept or act upon such altered date of birth. However this portion of law is subject to quality exceptions like, where a competent court gives declaration and direction to which the employer is a party or where rules and regulations or conditions of service or process for alteration and employee has complied with the procedure or where employer accept the request for change. Q. We have drafted some circulars and guidelines to be followed in case of transfer of employees. These guidelines were not comunicated to employees but were made to keep integrity and consistency in transfer orders. Can we override these guidelines? Ans. Guidelines/Instructions which have admittedly no statutory force do not confer any right on the employee to challenge the transfer order on the ground of violation of such guidelines that by itself will not be sufficient to quash the transfer order as being malafide. Administrative exigencies have to give way to the guidelines. As your guidelines were not comunicated to employees but were meant to assist present and future managers to keep consistency so they act in uniformity in nature, can be altered and amended at your desire. Had these guidelines been made under an agreement with employees or under any statute then they would have got statutory force and they can not be amended unilaterally. Q. Will the clerical staff working in the factory be treated as workers under the Factories Act? Ans. Yes. Since such employees will be doing the work incidental or connected with the manufacturing process, they will be treated as workers within the meaning of section 2(1) of the Factories Act. The Madras High Court in a case while relying upon the judgment, has held that the Supreme Court in its judgment has dispelled any doubts as to whether the staff engaged in the factory premises being indispensable for actual manufacturing process and being connected with the manufacturing process, will come within the ambit of workers, as defined by section 2(1) of the Factories Act. BM

Readers are invited to ask for Solutions of their Labour Problems through e-mail - bmalwar@yahoo.com Business Manager

April 2012

From The Court Room

Latest Judgments

Recent Important

Judgments Back Wages When workman denies the gainful employment, it is for the employer to prove otherwise. Once the employee pleads that he was not gainfully employed during the period of termination, the burden lies upon the employer to prove when, how and where the employee was gainfully employed during the period he stood terminated. The negatives are not proved because it is almost impossible to prove a negative fact as such it is only the positive assertions which can be proved. Chief Engineer vs. M.P. Dwivedi. 2012 LLR 250 (M.P. H.C.) In the circumstances when employer could not prove gainful employment and employee did not establish the efforts made by her to get the job but was unsuccessful, 20% Back Wages was held to be proper, because the educated employee will not remain totally unemployed during the period. Principles for grating back wages are well settled that the workman must state about his unemployment whereas in the present case, there is only a bald statement of the workman that she tried to get the job but failed whereas she should have established before the Labour Court the details of such attempts which she has failed to give hence the Labour Court has rightly awarded 20% instead of full back-wages. W.H. Brady and company Ltd. vs. A.R. Sulochana. 2012 LLR 297 (Guj. H.C.)

BOCW Act Substantive terms of the agreement between the company and the contractor regarding 1% labour cess will prevail over the additional provisions of the agreement. Company not entitled to deduct 1% cess from contractor bill without adding the same in the bills so raised by contractor. The averments that the additional provisions under Part-II of the agreement does 42

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not provide for payment of 1% labour cess to the contractor is not justified as the Clause (G) of Schedule C of the agreement being substantive term of the contract has such provision which would prevail over the Part-II. PMR Infrastructures Pvt. Ltd., Badwel, Kadapa District vs. Government of A.P., reptd. By its principal Secretary, irrigation and Command area Development, Hyderabad and three Others. 2012 LLR 273 (A.P. H.C.) Non-compliance of the directions of the Courts about the provisions of Building and construction workers (Regulation of Conditions of Service) Act and the BOCW Cess Act would amount to Contempt of Courts Act which provides imposition of fine and sentence upon the defaulter. National Campaign Committee for Central Legislation on Construction Labour vs. Union Of India & Ors. 2012 LLR 336 (S.C.)

Bonus In the absence of allocable surplus, maximum bonus can not be directed to be paid. Tribunal while granting bonus for the years 1996-1997 and 1997-1998, failed to note that there was no allocable surplus. Workers are not entitled to maximum bonus for those years. It is an erroneous award. Impugned Award does not show that Tribunal kept in mind the parameters under which bonus calculation has to be made. Procedure to calculate bonus as directed in S.11 r/w S.15 of the Bonus Act. In the matters, Tribunal erred in denying relief to workers, without going into the calculation in terms of schedule II to the Payments of Bonus Act. Calculation of bonus requires certain amount of technical skill and one must know the auditing procedure. Impugned Award dt. 17.03.2006 stands set aside. All the three disputes are remitted back to Industrial Tribunal for fresh disposal according to law. Managing Director, Tamil Nadu Kudineer Vadigal Variyam Chennai & Anr. vs. Tamil Nadu Kudineer Vadigal variyam Oozhiyar Central organisation rep. by its General Secretary & Ors. 2012 I CLR 782 (Mad. H.C.)

From The Court Room

Contract Labour Reinstatement justified when direct relationship between employer & the terminated workman established. Reinstatement to a workman has been rightly awarded by the Labour Court since there has been direct relationship of employer and the terminated workman. Hence no interference by the High Court is called for. When the workman has frankly admitted for part of the period of his employment, the backwages will be granted subsequent to that period. Contract Labour (Regulation & Abolition) Act is a social welfare legislation to further interest of community of the workman, as apposed to particular interest of an individual entrepreneur since it seeks to achieve public purpose i.e. regular conditions of contract labour and to abolish, it is found to be of a perennial nature. Usha Martin Industries Ltd., (Usha Ishmal Division), Ranchi vs. Presiding Officer, Labour Court, Ranchi and Another. 2012 LLR 248 (Jhar. H.C.) Regularisation of the contract worker has been rightly awarded by the Industrial Tribunal when the Samiti, claiming to have engaged the workers, has failed to submit any material despite opportunities. Employers in Relation to the Management of Balihari Colliery Under Putkee Balihari Area of M/S. B.C.C.L., Dhanbad vs. Their Workmen Being Represented By the Branch Secretary, Rashtriya Colliery Mazdoor Sangh, Dhanbad. 2012 (132) FLR 57 (Jhar. H.C.) If the contract is found to be non genuine but a mere camoulflage, the so called contract labour will have to be treated as employees of the principal employer, who shall be directed to regularise the services of the Contractor Labour. Oil and Natural Gas Corporation Ltd. vs. Petroleum Employees Union and others. 2012 (132) FLR 746 (Bom. H.C.)

Conciliation Proceedings A conciliation officer under the Industrial Disputes Act is under an obligation to conciliate the industrial dispute when raised by the Union for regularisation of contract labour. H.N.L. Casual & Contract Workers' Centre vs. Union of India. 2012 (132) FLR 163 (Ker. H.C.)

Court Powers When an ex-parte Award has been published, the Labour Court becomes functuous officio and cannot entertain an application for staying of the Award.

Latest Judgments Ravinder Kumar vs. Timken Services Pvt. Ltd. and another. 2012 LLR 252 (P&H H.C.) Jurisdiction of the industrial tribunal under section 33(2) (b) of the ID Act is limited and not equated to one under section 10. For granting approval for dismissal Court cannot go in to rationale behind the quantum of punishment. Cannot substitute its own judgment for that of enquiry officer. Declining to grant approval for dismissal of a workman, despite upholding the enquiry will not be proper on the part of Industrial Tribunal holding that the dismissal was disproportionate to the gravity of misconduct, will be quashed since the Tribunal cannot substitute its judgment for that of an enquiry officer. Elastrex Polymers Pvt. Ltd., Nelamengala Bangalore vs. Janardhana. 2012 LLR 261 (Kar. H.C.) Issue of validity of the enquiry has to be decided first as preliminary issue. An enquiry is to be decided as a preliminary issue during adjudication proceedings, hence, Labour Court was not justified in declining to frame preliminary issue about the validity of enquiry. Bharat Hotels Limited vs. GNCT of Delhi abnd Anr. 2012 LLR 268 (Del. H.C.) Interim relief of 50% not 75% of last drawn wages appropriate by Labour Court during pendency of adjudication proceedings when prima facie there was plea of the management that enquiry has to be held by Labour Court. Labour Court has rightly granted interim relief to the workman during pendency of the adjudication proceedings since there has been a prima facie case and the plea of the Management that enquiry has to be held by the Labour Court would not be tenable since it is not pleaded by the Management but in a writ petition, the High Court reduced the interim relief to 50% from as granted by the Labour Court. When the Labour Court has granted interim relief assuming that the respondent, though designated as executive but discharging the duties of clerical nature, hence the challenge of the Management cannot be gone into the factual aspects by the High Court under the writ jurisdiction. Batra Hospital & Medical Research Centre of Ch. Ashi Ram Batra Public Charitable Trust vs. Biswambar Nayak. 2012 LLR 269 (Del. H.C.) Setting aside of ex-parte order should not have been declined by the Labour Court without ensuring that the summons, as sent, have not been served upon the petitioner. Indcoat Shoe Components Ltd. vs. Jagan Kashyap and Another. 2012 LLR 311 (All. H.C.) Court should not interfere with the dismissal order of employee who obatained appointment by producing forged documents. Although under section 11A of the Industrial Disputes Act the Labour Court has Business Manager

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From The Court Room got vast powers to modify the punishment of dismissal and discharge of the workman, but such powers have to be exercised judiciously and only when it shocks to the conscious of the court hence modifying the dismissal of the workman for fraudulently obtaining job in granting reinstatement with stoppage of four increments is liable to be set aside. Prabhulingappa H.M. Munichendragowda vs. Divisional Controller, K.S.R.T.C., Kolar. 2012 LLR 278 (Kar. H.C.)

Disciplinary Proceedings Findings of domestic enquiry cannot be set aside on the plea of acquittal in criminal case. Court cannot interfere in the decision of domestic tribunal unless shown to be based on no evidence. Disciplinary proceedings cannot be stayed merely on the ground that criminal case is pending. The degree of proof required in a departmental proceedings is based on preponderance of probability and not strict proof of evidence. Court cannot interfere in the decision of the domestic tribunal unless the same is shown to be based on no evidence. Findings of domestic enquiry cannot be set aside on the plea of acquittal criminal trial. When the statute does not provide for period of limitation, the court must exercise its powers reasonably within reasonable period being a facet of reasonableness. Jyothi Kondaraju vs. Additional General Manager (CS & HRD) Disciplinary Authority, ITI Ltd., Bangalore. 2012 LLR 236 (Kar. H.C.) â&#x20AC;&#x153;Natural justiceâ&#x20AC;? cannot be imprisoned in a straight jacket formula. None of the facets of natural justice require that there should be right of appeal from any decision as the right of appeal is not an inherent right. The term 'natural justice' cannot be imprisoned in a straight-jacket of a rigid formula as its scope depends upon the circumstances of the case, nature of enquiry, rules, scheme, character of rights of persons affected and policy of the statutes under which the Tribunal has to deal with the matter etc. Even none of the facets of natural justice requires that there should be right of appeal from any decision as the right to appeal is not an inherent right. An order cannot be labelled as a non-speaking order when it does not suffer from the vice of non-application of mind. The Appellate Authority must record reasons in support of its order to indicate that it has applied its mind but it is not the requirement of law that such an order must be elaborate and extensive as the brief reasons indicating application of mind would suffice. Right of appeal is not defeated in absence of personal hearing when relevant regulation does not expressly provide for personal hearing. Oriental Bank of Commerce & Anr. vs. R.K. Uppal. 2011-II LLN 493 (SC) : 2012 LLR 324 44

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Latest Judgments Enquiry vitiated when employee was not allowed to cross examine the witnesses, to produce defense and evidence recorded on the back of employee. An enquity, as held, will be vitiated when (a) the Enquiry Officer only recorded the examination-in-chief without allowing crossexamination; (b) defence representation was denied to the delinquent; (c) statement of the witness was recorded on the back of employee; and (d) enquiry was abruptly closed by the Enquiry Officer. It is settled law that where the questions of facts are involved, writ petition in the High Court would be an appropriate remedy. Criminal trial and departmental proceedings can proceed simultaneously since there is no bar in proceeding with the enquiry during pendency of the criminal trial. Vikram Sharma vs. State Bank of Indore and others. 2012 (132) FLR 618: 2011-III CLR 943 : 2012 LLR 214 (M.P. H.C.) Non supply of inquiry report will not vitiate the disciplinary proceedings. Dismissal justified for committing financial irregularities. Burdwan Central Co-operative Bank Ltd. and another vs. Asim Chatterjee and others. 2012 (132) FLR 713 (S.C.) Non supply of inquiry report copy before passing punishment order will not vitiate the inquiry. Non-Supply of copy of inquiry report to the delinquent, before passing impugned order, would not be fatal vitiating the impugned order. Court finds no merit in this petition. In the excersise of discretionary and equitable jurisdiction the Court would be justified in refusing to invoke its writ jurisdiction to grant the relief to the workman. Jai Krishna Prasad, s/o Late Sheo Dayal Sah, Muzaffarpur vs. Bihar State Road Transport Corporation, Patna and Ors. 2012 I CLR 340 (Pat. H.C.) Dismissal merely on the basis of chargesheet without evidence, will be illegal. Enquiry vitiated. Dismissal of petitioner from service-On charge of corruption-Though both disciplinary and criminal proceedings initiated on charge of corruption, charges in both proceedings were practically same and he was acquitted in criminal case. No evidence recorded in disciplinary proceedings and order of dismissal passed merely on charge sheet. Even Regulations prescribe the decision to be taken on evidence available. It consists of proof by testimony of witness. Hence order of dismissal is vitiated and set aside. Ramesh vs. Maharashtra State Electricity Distribution Co. Ltd. and others. 2012(132) FLR 869 (Bom. H.C.) In the absence of procedural lapse in E.O. findings, No interference of court required. In the absence of any procedural lapse in the findings of Enquiry Officer, which are based on evidence and the charges have been established, there is no room for this Court to interfere with the impugned order of dismissal. This is not the Court of Appeal over

From The Court Room and above the Enquiry officer, Disciplinary Authority and the Appellate/Revisional Authority. This court cannot reappreciate the evidence to reach a conclusion different than the one recorded by the Enquiry Officer, merely because another view is possible. There is no violation of principles of natural justice or of any statutory rules, warranting a conclusion that appellant has not been treated fairly Baljit Singh vs. state of Haryana and others. 2012 I CLR 569 (P&H H.C.) When workman remained absent from enquiry, he can not challenge the findings. It is not open for the workman to remain absent from enquiry, once his request to stay the same in view of pending criminal proceeding case was declined. Acquittal in the criminal case is no ground to challenge impugned order of his removal from service. Workman was negligent at the time of the theft in question, it was a grave misconduct on his part. Having not participated in the domestic inquiry, no grievance can be made now that there is no direct evidence against him for the said misconduct. Impugned inquiry and order of removal call for no interference by this Court. Dhanjibhai Premabhai Rathva vs. Chief Security Commissioner, Western Rly., Mumbai and Ors. 2012 I CLR 614 (Guj. H.C.) When the deliquent officer is pitted against legally trained person, he should be allowed to defend himself through a legal practitioner. Denial of such a request would amount to denial of a reasonable opportunity to the employee to defend himself, which is an essence of the principles of natural justice. Inquiry authority was a legal practitioner in the High Court. Management did not appoint presenting officer for this inquiry. question were put to the delinquent by inquiry authority himself. The inquiry was conducted without permitting the petitioner to have assistance of legal practitioner and no opportunity was given to petitioner to defend himself properly. A total violation of principles of natural justice. The disciplinary authority proceeded mechanically in passing order of punishment, ignoring all documentary evidence presented before him by the employee in reply to show cause notice. Imputations in the form of suggestion and / or finding regarding quantum of punishment by the inquiry officer is contrary to statutory rule and hence liable to be quashed and set aside. Arun Kumar Hazra vs. State of West Bengal & Ors. 2012 I CLR 691 (Cal. H.C.)

Employees’ Compensation Act Principal employer and contractor will be jointly and severally liable to pay compensation to contract labour in case of accident.

Latest Judgments When an employee is engaged through a contractor and meets with an accident, both the contractor and the principal employer-will be jointly' and severally liable for payment of compensation under the Workmen's/ Employees' Compensation Act Parveen Kumar vs. Uttar Haryana Bijli Vitran Nigam Ltd. and Other. 2012 LLR 259 (P&H H.C.) In the absence of any pleadings and substantial evidence that employee was acting negligently with willfull disobedience of the express instructions given by employer or rules framed, claim petition cannot be dismissed. Only negligent driving is not enough. The claim under the provisions of the Employees' Compensation Act cannot be rejected unless it is the written statement and proved through substantial evidence that claimant himself was negligent by willful disobedience of the express instructions given by the employer or had violated the rules framed for the purposes of securing his safety. Kirpal Singh vs. Rajendra Singh. 2012 LLR 276 (M.P. H.C.) Settlement of less amount than awarded by the commissioner would be illegal and will not fall within the scope of Section 28 the EC Act. Settling amount of compensation for Rupees one lakh by the legal heirs of the deceased not proper when the Accident Compensation Commissioner has awarded Rs. 2,02,600 since such settlements are not permissible under the law. Jamat Singh vs. Commissioner, Workmen's Compensation and Others. 2012 LLR 309 (Raj. H.C.) : 2012 (132) FLR 568 Workman meeting with road accident due to dash giving by unknown vehicle while on the way to factory for duty, such accident cannot be said to have its origin or nexus in his employment in the factory. Employer not liable to pay compensation. Oriental Insurance co. Ltd., Solapur vs. Daivshala Shahu Jadhavar & Ors. 2012 Lab IC 387 (Bom. H.C.) Sudden death of a Bus Driver unexpectedly during the course of employment without any disease is an “accident”. The deceased was admittedly an employee and he was employed as a driver of a stage carriage. He was 39 years old and he died suddenly during the course of employment. There was absolutely no evidence on record to show that the deceased had a history of heart disease. The high court emphasized on the suddenness of the death and pointed out that it was unexpected from the point of view of the deceased and therefore it can be characterized as an accident. It was further held that only a casual connection or nexus between the employment and death is required. It would be unrealistic to think that the job a driver of a stage carriage does not involve stress and strain. Business Manager

April 2012

From The Court Room

Latest Judgments

National Insurance Co. Ltd vs. P.V. Sheeja & Ors. 2012 CLR (I) 142 (Ker. H.C.) Casual worker even employed for a single day would be â&#x20AC;&#x153;workmanâ&#x20AC;? under EC Act. In view of the admission of employer Baldeo Singh, deceased Ashok Shah was employed though as a casual worker, for purpose of employer's trade or business namely agriculture and even if employed a single day, the worker would fall within the definition of'workman' u/s.2(1)(n) of the Act, and hence is entitled to maintain claim for seeking compensation. Matter remanded to Employees Compensation Commissioner to be decided in accordance with law. Mahendra Shah vs. Baldev Singh 2012 I CLR 402 (Raj. H.C.) It is well-settled that the rights of the parties are governed by the law as it existed on the date of the accident. Compensation has to be calculated as per the provision of law as it exists on the date of accident-cause of action arises on the date when the accident takes place. Compensation was payable to claimant as per the provisions of the Act, as it existed on 1.06.1999-the date of accident and not at the rate of Rs. 4,000/- as per the amendment of the Act, which came into force on 08.12.2000 Executive Engineer, H.P. P.W.D., B & R Division, Nalagarh, H.P. and Anr. vs. Premu, S/o. shri Budh Ram, H.P. 2012 I CLR 636 (H.P. H.C.)

Enquiry Continuation of enquiry should not have been stayed by the learned Single Judge in interim order, when the courts below have declined to grant stay. Kunbi Sahakari Bank Ltd. and Others vs. Sanjiv Shriram Barbade and Others. 2012 LLR 283 (Bom. H.C.)

E.S.I. Three month's reimbursement with fine, being minimum punishment as awarded by the Magistrate to the principal employer for non-payment of ESI contributions, would not be interfered by the High Court. Sharp Eye Detective Services and Another vs. Employee's state Insurance Corporation, Margao, Goa and Another. 2012 LLR 284 (Bom. H.C.) ESI is liable to pay medical treatment expenditure to the deceased legal heir where such facility was not available in ESI Hospital. Reimbursement of Rupees seventy-five thousand, incurred towards expenditure for medical treatment of the member of ESI, has been rightly allowed by the Employees' Insurance Court when the ESI has invoked 46

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section 58 of the ESI act inter alia providing that the State government is duty-bound to reimburse the expenditure incurred by the employees working in establishments covered under the ESI Act when ever they spend money for the services which are not available in ESI Hospital and which are deemed to be special services for which the member has incurred the expenditure from his own pocket. Regional Director, ESI corporation, Bangalore vs. Lakshmi biradar (smt. ) and Ors. 2012 LLR 235 (Kar. H.C.) E.S.I. not Allowance.

payable

conveyance

The conveyance allowance shall not form part of wages for purpose of ESI Act - No merit found in appeal and it is dismissed. Dy. Director (INSPN), Regional Office (Tamil Nadu), Employees' State Insurance Corporation and Another vs. Cosmopolitan Club, Chennai. 2012 (132) FLR 911 (Mad. H.C.)

Gratuity No amount can be recovered from gratuity paid to legal heirs and also cannot be attached in execution of a Court decree. Gratuity of an employee can not be recovered from the legal heirs and also it cannot be attached in execution of a decree by the civil court hence deduction, as made, is liable to be set aside by an order for refund of gratuity. Mst. Prabha Shukla vs. State of Bihar and Other. 2012 LLR 251 (Pat. H.C.) Unless break in service is notified by an order of employer against the employee, it will be deemed as continuous service for payment of gratuity. Nature of payment of gratuity act is a social welfare measure rendering socio-economic justice by providing economic security in the fall of life Unless a break is notified by an order passed by the employer, it will be deemed as continuous service for payment of gratuity. Karnataka State Road Transport Corporation, Bangalore, Rural Division, Bangalore vs. Deputy Labour Commissioner and The Appelate Authority, Bangalore and Others 2012 LLR 263 (Kar. H.C.) Legislature can enact laws both prospectively and retrospectively. Section 2(e) and Section 13(a) making effective retrospectively are not violative of constitution. The legislative power conferred on the Legislature includes the subsidiary or ancillary power to validate laws which have been struck down by the court being invalid for one infirmity or another, thereby to cure the infirmity and pass the provision of the earlier law effective from the date when it was passed. Substituted in section 2(e) and newly inserted section 13-A of the Payment of Gratuity Act, 1972 by amendment Act 2009 are neither violative of Art. 19(1) (g) of the

From The Court Room constitution of India as no substantive right was earlier created in favour of school no any such substantive right has been taken away. Jain Citizens Education Society, Surendranager and Another vs. Union of India and Others. 2012 LLR 292 (Guj. H.C.) Gratuity of an employee, on his retirement cannot be denied by holding of an enquiry that too after retirement which is not permissible. Hence it will be immaterial if an employee has participated in the enquiry without any protest. Subodh Nath Gupta vs. Chairman, Administrative Committee, U.P. Cooperative Dairy Federation and Milk Union Centralised services, Lucknow and Another. 2012 (132) FLR 204 (All. H.C.) Payment of gratuity Act do not make any distinction between the casual, temporary or NMR workers. Appellate Authority has the power to correct error committed by Controlling Authority, in considering lenght of service put up by the workman. No error committed by Appellate Authority by passing impugned order. Madurantakkam Co-op. Sugar Mills Ltd., rep. by its Special Officer, Padalam vs. Joint Commissioner of Labour (Appellate Authority under the Payment of Gratuity Act, 1972 & Ors. 2012 I CLR 779 (Mad. H.C.)

Industrial Disputes Act In case of banking companies for resolution of industrial diputes, Central Govt. and not the State Govt. would be appropriate Govt. Labour Court should decide this issue as preliminary issue. The appropriate Government for deciding the industrial disputes, is the Central Government and not the State Government as provided under section 4 of the Industrial Disputes (Banking and Insurance Companies) Act, 1949 A few preliminary issues, framed by the Courts below, about maintainability of the claim/complaint, should be decided first instead of wasting valuable time. ICICI Bank Ltd. and Another vs. Surendra Chelawat and Others. 2012 LLR 290 (Bom. H.C.) Application for computation of wages on the principle of 'equal pay for equal work' filed under section 33C(2) of the Industrial Disputes Act before the Labour Court is maintainable. When a benefit has been allowed by the Management for the previous period, as claimed, it cannot deny the same benefit for the subsequent period of services of the workman. State of Haryana Through G.M. Haryana Roadways, Rohtak vs. Om Prakash, Safai karamchari & Anr. 2012-I CLR 118 (P&H H.C.)

Latest Judgments

Industry Water Technology Centre for eastern Region Bhubaneswar is "Industry" under ID Act. Whether Water Technology Centre for eastern Region, Bhubaneswar (WTCER in short), an Unit under the petitioner, is an "industry"? The Court answered this querry in the affirmative, in view of total activities of the petitioner and of said unit. Indian Council of Agriculture and Research vs. P.O., CGIT-cum-Labour Court, BBSR & Ors. 2012 I CLR 660 (Orrisa H.C.)

Minimum Wages Act Prosecution liable to be quashed against MD and other officers of the company when it was not described as to under what capacity they were made accused. Prosecution of the company and its Managing Director besides other officers under the Minimum Wages Act is liable to be quashed since the complaint has not described as to under what capacity they are being made accused under the Act and also whether the petitioners/accused are engaged in any scheduled employment. M/s Metrograph Company Private Limited and other vs. State of Jharkhand and Another. 2012 LLR 255 :2012 (132) FLR 722 (Jhar. H.C.) Even when the appropriate government for a private bank is Central Government, for minimum wages, it will be state Government. Tops Security Ltd., Mumbai vs. A.K. Agarwal, Authority under Minimum Wages Act, 1948 and Others. 2012 LLR 265 (Bom. H.C.)

Misconduct Mistake committed wthout any wrongful gain towards discharge of duty cannot be termed as misconduct. A mistake, committed in the discharge of official duty, cannot be construed as misconduct for imposing punishment when the concerned employee has not made any wrongful gain. Findings of the criminal court would prevail upon those of the disciplinary authority hence the acquittal of delinquent by the criminal court cannot be ignored Gopi Ballav Sarkar vs. Food Corporation of India and Other. 2012 (132) FLR 210 (Cal. H.C.)

Overtime For the purpose of calculating O.T., wages include all allowances such as HRA, CCA, Travelling allowances etc. except bonus and O.T. Wages. Business Manager

April 2012

From The Court Room Heavy Vehicles Factory Employees' Union Rep. by its General Secretary & Anr. vs. Union of India rep. by its Secretary to Government, Ministry of Defence & ors. 2012 I CLR 292 (Mad. H.C.)

Provident Fund Sleeping partner can also be clubbed in a criminal proceeding alongwith active partner. There is no legal binding under the Employees' Provident Funds & Miscellaneous provisions Act and criminal laws that sleeping partner cannot be clubbed and prosecuted in a criminal proceeding alongwith the active partner. Creation of a document i.e. a resignation of a partner, one month before the date of complaint is surrounded by suspicious circumstances and cannot have legal force. Usha Rani Rajharhia w/o Late Babulal Rajgarhia vs. Union of India, through the Secy., Ministry of Labour & Rehabilitation, New Delhi & Ors. 2012 LLR 232 (Pat. H.C.) Appeal before tribunal and not the writ petition is maintainable against the order of PF authority under Section 7-A of the EPF Act. Appeal before the EPF Appellate Tribunal and not the writ petition will be the appropriate remedy by an aggrieved employer of an order under section 7A of EPF & MP Act hence the writ petition, as filed, is liable to be dismissed but the stay will continue till hearing of the appeal by the Appellate Tribunal. Uranium Corporation of India Ltd. vs. Regional Provident Fund Commissioner, Jamshedpur. 2012 LLR 254 (Jhar. H.C.) When earlier demand was quashed by High Court, further fresh demand cannot be raised on the same earlier inspection report and material. When the earlier demand by EPF Authority has already been quashed by the High Court, fresh demand without any further material is liable to be quashed above the petitioneremployer employed only 13 employees and could not be covered under the Act. M/s Gulati Auto Engineers vs. Union of India and Others. 2012 LLR 258 (Pat. H.C.) Primary requirement which the appropriate Govt. has to consider for granting exemption is as to whether the condition specified in Section 17 of the EPF Act has been fulfilled. Conditions specified in Appendix A to the scheme have to be fulfilled once an exemption is granted. Paragraph 27AA of the Employees' Provident Fund Scheme provides that exemption sought under section 17 of the Act read with paragraph 27A of the scheme is subject to terms and conditions given in Appendix A to the Scheme which are required to be fulfilled by the applicant. Birla Sun Life Insurance Co. Ltd. & Anr. vs. Shri Subhash Kumar, Under Secretary to Govt. of India & Ors. 2012 LLR 266 (Bom. H.C.) 48

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Latest Judgments

The EPF Act will not be aplicable to the establishments under the control of Central Govt. or State Govt. whose employees are entitled to contributory provident fund benefits of the Govt. The Employees' Provident Funds and miscellaneous Provident Act, 1952 shall not be applicable to the establishments which are under the control of the Central Government or a State Government, whose employees are entitled to the benefit of contributory provident fund or old age pension in accordance with any scheme or rules framed by the Central Government or the State Government as per provisions of amended Section 16 (1) (b) of the Act since 1st of August, 1988. V.T.P. Higher Secondary School, Shivpuri vs. State of M.P. and Others. 2012 LLR 306 (M.P. H.C.) EPF Act will be applicable to Punjab Urban planning and development authority being not an establishment under the control of the Central or State Govt. Applicability of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is exempted only to the establishments which belong to or are under the control of the Central or State Government. Exemption from the applicability of the employees' Provident Funds and Miscellaneous Provisions Act, 1952 may be granted by the Authority under the Act under section 16(2) of the Act which provides benefits more favorable to the employees than that of the Scheme under the Central Act. Establishments like Punjab Urban Planning & Development Authority are not the ones which belong to or are under the control of the Central or State Government. Punjab Urban planning & Development Authority Through its Chief Administrator vs. Union of India through Secretary, Ministry of Labour, Government of India, New Delhi & Anr. 2012 LLR 313 (P&H H.C.) In the absence of any reply by the employer to the PF authorities show cause notice for levy of damages for delayed payment,order of damages cannot be interfered with High Court will not interfere with the order of the EPF Appellate Tribunal rejecting the appeal filed by the petitioner, alleging levy of damages for delayed payment of contribution since the petitioner has failed to file any reply to the show cause notice issued by the respondents. Steel Tubes of India Ltd., Dewas vs. Asstt. Provident Fund Commissioner (c), Indore. 2012 LLR 319 (M. P. H.C.) In case an order is passed by the EPF Authority in the absence of reasons in conformity with the provisions contained in section 7C of the Act, that order is not maintainable and liable to be quashed. Choithram Hospital & Research Centre, Indore vs. Assistnat Provident Fund Commissioner, Employees Provident Fund Organization, Indore & Anr. 2012 LLR 320 (M.P. H.C.)

From The Court Room Recovery of employees provident fund dues is to be made from the defaulting company and also arresting the chief managing director who cannot absolve him from the liability by making a contract with another company transferring assets and liabilities. Harish F. Shah vs. Employees' Provident Fund Organisation. 2012 Lab IC 146 (Guj. H.C.) For the purpose of applicability of the EPF Act, an â&#x20AC;&#x153;apprenticeâ&#x20AC;? under Apprentice Act, 1961 will be excluded. However, as the commissioner has not examined as to whether apprentices engaged by the petitioner are apprentices within meaning of Apprentice Act, hence, the impugned order is set aside. Matter remanded back to decide afresh. Sevayan Medical & Research Centre vs. Assistant Provident Fund Commissioner and another. 2012(132) FLR 663 (Del. H.C.) : 2012-I CLR 55

Protected Workman Non-acknowledging or non-replying the letter received from the Union regarding protected workman by the management would waive the right of the management to raise objection thereto, if any, at a later stage. The Statesman Limited vs. FIRST Industrial Tribunal, West Bengal and Other. 2012 - I LLN 156 (Cal. H.C.)

Punishment Punishment of dismissal to Bus driver justified for not allowing old lady to board bus and abusing the ATI. Civilized society cannot tolerate riotous, inhuman & atrocious conduct of people. Court can interfere with the quantum of punishment in exercise of its jurisdiction under Article 226 of the Constitution of India only where the punishment inflicted against a delinquent employee is grossly unjust and shocks the conscious of the Court and not otherwise. Physically or verbally abusing another employee is serious misconduct which does not deserve anything less than removal from service. Inder Sain vs.Delhi Transport Corporation. 2012 LLR 239 (Del. H.C.)

Reference Inclusion of the name of contractor is not necessary in the reference made by

Latest Judgments

Govt. to the labour Court against the principal employer on the dispute raised by workman, who was alleged to be employed by the contractor. Impleading the contractor in litigation, while getting adjudicated the reference of industrial dispute through Labour Court, is not necessary when only the payment to the workman was made through the contractor. ICICI Prudential Asset Management Co. Ltd., (M/s) vs. Union of India. 2012 LLR 245 (Del. H.C.)

Regularisation Regularisation of the workmen will not be interfered by the High Court in writ petition when they have worked for 240 days and served for 9 years and also they were selected by Selection Committee as constituted as per rules. Orissa Mining Corporation Ltd. vs. Presiding Officer, Central Government Industrial Tribunal-Cum-Labour Court, Bhubaneswar and Another. 2012 LLR 326 (Orissa H.C.)

Reinstatement When the management could not establish the charge of insubordination in the court after enquiry was held unfair, reinstatement with full back wages rightly awarded. When the management was abusing the process of law by filing repeated applications seeking adjournments hence in the circumstances, the rejection of the said application moved for adjourning the case by the management was justified. When the charge of insubordination, gain, the evidence adduced by the management did not support its case hence the reference was rightly answered in favor of the workman and he was directed to be reinstated with full backwages. High court is unable to find appreciation of the evidence led before it and the Court will stop the litigation which was prolonged for 43 years. SIEL Ltd., vs. Lt. Governor and Others. 2012 LLR 242 (Del. H.C.) Reinstatement proper when the employee was terminated for not passing the typing test as per terms of employment when employee completed the probation period and granted increments too. Invoking clause of typing test after 15 years of service has no relevance. Termination of services of the petitioner by invoking clause 17 of the appointment letter providing for qualifying test will not be tenable when the petitioner has completed the probation period and got the increments Business Manager

April 2012

From The Court Room whereas the said clause was invoked after 15 years. Mohar Singh vs. National Buildings Construction Corporation. 2012 LLR 271 (Del. H.C.) Compensation and not reinstatement would be proper in case of illegal retrenchment of casual workers. Compensation instead of reinstatement would be appropriate to the workmen who were engaged only as casual, hence Division Bench allowed compensation of Rs.30,000 each in addition to last drawn wages received by them as provided by Section 17-B of the Industrial Disputed Act. Employers in relation to the Management of Kuju Pundi Project of M/s Central Coalfield Lts., Ranchi vs. Their Workmen represented by the Secretary, Jharkhand Colliery Mazdoor Sangh, Hazaribagh. 2012 LLR 317 (Jhar. H.C.) Reinstatement cannot be allowed to a part-time tube-well operator since his services were terminated because of conviction in the criminal case. Puran Lal vs. Executive Engineer, Tubewell Division 1st, Bareilly and Others. 2012 (132) FLR 310 (All. H.C.) Reinstatement proper when there has been violation of principles of natural justice since the witness was examined without informing the delinquent and opportunity given to the workman. U.P. State Road Transport Corporation vs. Bachchu Lal Tiwari and Another. 2012 (132) FLR 2011 (All. H.C.) On account of delay in raising industrial dispute, the relief of reinstatement sought by the workman cannot be denied. Payment of lump sum amount as compensation to workman, in lieu of reinstatement to which he is legitimately entitled to, is not an effective substitute for non-employment. Findings of facts reached by Tribunal on appreciation of evidence, cannot be reopened while exercising writ juridiction. In the exercise of the writ juridiction the court cannot reappreciate the evidence and substitute its opinion for the one of the Tribunal.On account of delay in raising dispute, relief cannot be denied to the workman. In the instant case granting of lump sum compensation, cannot be an effective substitute, for his non-employment. Arrack Bottling Unit, rep by its Chairman, IML Depot, Wyra, Khammman District, and Anr vs. Hon'ble Labour Court-Cum-Industrial Tribunal, Warangal, Rep. by its Presiding Officer, and Anr. 2012 I CLR 596 (A.P. H.C.)

Retrenchment Termination on account of failure to pass the test as a condition before regularisation will amount to retrenchment. Non compliance of 50

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Latest Judgments

retrenchment procedure reinstatement.

will

lead

Termination of the workman on the ground of her failure to pass a test as a condition precedent for regularization of service, amounts to retrenchment within the meaning of section 2(oo) of the Industrial Disputes Act, 1947 hence non payment of retrenchment compensation at the time of termination will render it invalid as such the reinstatement has been rightly awarded. Punjab University vs. Praveen Bala and Anr. 2012 LLR 234 : 2012 CLR (I) 100 (P&H H.C.) Even a daily-wager, who has worked for more than 240 days, is to be paid retrenchment compensation and one month's notice pay if his services are sought to be terminated by the employee hence the Labour Court is to decide the matter afresh. Dy. Commissioner (Administration), Women And Child Development, Pune And Others. 2012 (132) FLR 28 (Bom. H.C.) Even if a person is engaged on daily wages and has completed the continuous service within the meaning of section 25-B, his services cannot be terminated without following statutory provisions of section 25-F of Act. Daily wagers if completed continuous service within section 25-B for more than 240 days, their services were terminated being surplus staff without issuing any notice, valid enquiry or payment of retrenchment compensation. Hence, termination of their services would legally amount to retrenchment. His services cannot be terminated without following the provision of section 25-F. â&#x20AC;&#x153;Striking off the name of the workman from the rolls by the management is termination of his service. Such termination of service is retrenchment within the meaning of section 2(oo) of the Act. The provisions of section 25-F (a), the proviso apart, and (b) are mandatory and any order of retrenchment, in violation of these two peremptory conditions precedent, is invalid.â&#x20AC;? Director, Food and Supplies, Punjab and others vs. Parkash Singh and another. 2012(132) FLR 688 (P&H H.C.) Oral termination of casual labour would amount to retrenchment. (i) Petitioner a casual labour, having completed more than 240 days of service in the preceding year, oral termination of his service without compliance of S.25 -F of the Act, is illegal retrenchment. No cogent reason assigned by labour Court for refusing relief of reinstatement. Debnath Chakraborty vs. Union of India & Ors. 2012 I CLR 670 (Cal. H.C.)

Standing Orders High Court will not interfere with an order of the Certifying Officer under the Industrial Employment (Standing orders) Act by increasing the age of retirement

From The Court Room

Latest Judgments

from 55 to 58 years of the workmen whereas the Management and the Trade Union representing the workmen have arrived at a settlement by increasing the age of superannuation from 55 to 57 years Management of M/s Steelsworth Pvt. Ltd. vs. State of Assam and Others. 2012 (132) FLR 246 (Gau.H.C.)

Termination Termination of the Bus driver illegal on the ground of medically unfit in view of protection given to such employee under Section 47 of the person with disabilities (equal opportunities, protection of rights and full participitaion) Act, 1995. Management is liable to shift such workman to some other place with same salary and benefits. In view of protection, as provided under section 47 of the Person with Disabilities (Equal Opportunities, Protection of Rights and full Participation) Act, 1955, the services of the workman, declaring medically unfit cannot be dispensed with and Management is liable to shift the workman to some other place with same pay scale or service benefits or to suitable post till the age of superannuation.

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An employee whose service was dispensed with due to medical disability and an industrial dispute raised by him was pending adjudication when the Act of 1995 came into force, the concerned employee would be entitled to the benefit under section 47 of the Act irrespective of the fact that the workman was found medically unfit much before this Act came into force as held in the case of Delhi Transport Corporation v. Rajbir Singh, 2003 VII AD (Del) 537. D.T.C. vs. Inder Singh. 2012 LLR 281 (Del. H.C.)

Transfer When employee defied the transfer order as well as orders to report for duty by applying sick leave continuously, not appearing before medical board, employer left with no other option but to remove him from service. S.P. Arya vs. Union of India and Others. 2012 (132) FLR 134 (Del. H.C.)

Unfair Labour Practice In the absence of producing original documents by the employer, practice of making payments to helper on daily wages through vouchers in the name of fictitious persons, would be unfair labour practice. Reinstatement justified of daily wager helper worked for three years and terminated illegally. Chief Regional Manager, Oriental Insurance Co. Ltd., Chandigarh vs. Presiding Officer, Central Government Industrial Tribunal, Chandigarh and Another. 2012 (132) FLR 59 (P&H H.C.)

Workman A part-time employee is covered by the definition of 'workman' under the Industrial Disputes Act hence the Labour Court erred in holding that he is not a 'workman' Kan Singh vs. Distt. Ayurved Officer & Ors. 2012-I CLR 123 (Raj. H.C.)

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Courtsey - Labour Law Reporter,FLR, CLR & APS Labour Digest

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April 2012

H.L. KUMAR Advocate, Supreme Court

Trade Unions : Guardians of labour aristocracy In their effort to buy unions, most management fails to comprehend the real reasons behind workers going on strikes.The primary reason for continuing strikes is the trust deficit between the management and workers. In its drive to match sales targets, it forgets to factor in their interest.

he present scenario of trade unions looks very dismal and disappointing and the blame lies squarely on their leaders. The treachery and mendacity of many trade union leaders towards workers and the society is not unknown. History of trade union movement across the globe is, although, replete with such instances, yet what has happened at Manesar plant of Maruti Suzuki is indeed shocking one. It may serve as an eye-opener for the working class if analysed and observed properly. The union leaders of Maruti Suziki namely; Sonu Gujjar and Shiv Kumar, who led the strike in the plant and caused loss to the production of 83,000 cars which when translated into terms of money, would come to Rs. 2,300/- crore. Maruti's sales suffered, as its rivals gained ground, prompting the company to explore all options to have permanent solution to the problem. In its quest to the solution the company paid significant amounts of money to many leaders of employees, who in turn agreed to bid good bye to it. Sources within Maruti have confirmed that the money paid to Gujjar, Kumar and 28 others was much well above what was due to them, though adding that the company has discretion to do so as part of a full and final settlement.Gujjar had become the face of the Maruti workforce following the three successive strikes at its Manesar plant, and had even been approached by the company's institutional investors, who wanted his take on the management-labour standoff. Gujjar claims that he and the others with him had no option but to resign to avert further disputes with the company. "We did not have the 52

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resources to even hire a lawyer to fight our case if we were terminated, which was most likely the scenario. Any such move would have only led to a renewed labour standoff at Maruti. Thus, we decided that we should take the settlement amount and move out." However, it is only the public face of the management and the union, the real story smacks of the whopping money-deal. D. L. Sachdeva, National Secretary, All India Trade Union Congress, all the same, holds different opinion. He says that pay off to union leaders pushes the problem away instead of solving it. Take the example of Maruti, within days of news appearing that the old guard of the leadership had parted ways, workers elected a new union body to take their fight forward. What is the guarantee, then, that the company will not witness any other strike? In fact, it will, if the company is not able to address the workers' issues. This could certainly be a good lesson for the managements but how the workers would come to the grips when the union leaders in whom they reposed faith decided to betray them. In terms of law, companies may be able to justify to themselves that there is nothing unlawful in paying off unions. Yes, the law does not stop companies from paying union leaders a handsome price for their loyalty. And in doing so these multinational companies may not be violating any law, they are certainly not doing something that is in concurrence with the spirit of the law. And their preposterous dirty actions will undoubtedly cause damage to such managements as are clean and honest because they can also be blackmailed by un-scrupulous elements.

Trade Unions : Guardians of labour aristocracy

The country suffers in three ways by the conduct of irresponsible trade unions and their leaders. First, assets, like land and machinery get frozen in poor uses. Second, money from banks and financial institutions is diverted to sick units instead of being used to establish healthy new enterprises.Third, the consistent mis-allocation of resources to low-productivity sectors means asphyxia of economic growth of employment and of incomes.

In their effort to buy unions, most management fails to comprehend the real reasons behind workers going on strikes. The primary reason for continuing strikes is the trust deficit between the management and workers. In its drive to match sales targets, it forgets to factor in their interest. Mr. Sachdeva further says that instead of paying workers off, managements should figure out the reasons for workers to resort to strikes and bridge the trust gap. In doing so, companies would have fewer instances of strikes.It is not difficult in today's climate to engineer violence during agitations. And unions can usually bank on the ham-handed police to over react as had happened at NOIDA, KAKINADA and many other places.

Big trade unions claim that they are guardians of the weak. In fact, they are guardians of the labour aristocracy and the enemies of the unemployed, the poor and the casual worker. In India, trade unions often pressurise politicians and politicians use them for their ulterior motives. The country suffers in three ways by the conduct of irresponsible trade unions and their leaders. First, assets, like land and machinery get frozen in poor uses. Second, money from banks and financial institutions is diverted to sick units instead of being used to establish healthy new enterprises. Third, the consistent mis-allocation of resources to low-productivity sectors means asphyxia of economic growth of employment and of incomes.

No Job Growth In the last decade, there has been hardly any job growth in the organised sector. The main reason for this is our labour laws, which make it difficult to sack, transfer or even discipline an errant or unwanted worker. The existent labour laws provide more protection to work shirkers and trade union leaders than helping and promoting the honest and sincere workers. Howsoever, indisciplined and undesirable a worker may be, an employer had to follow a cumbersome and meticulous procedure in getting rid of him. The result is that companies go out of their way to mechanise and avoid hiring workers. Jobs which

cannot be mechanised are often contracted out to small firms, which hire causal workers. In this manner, the labour aristocracy systematically helps to reduce employment and promote job casualisation. Big trade unions claim that they are guardians of the weak. In fact, they are guardians of the labour aristocracy and the enemies of the unemployed, the poor and the casual worker. In the past, no government was willing to talk on organised labour. 'All parties went along with the fiction that trade unions represented the poorest; that labour laws helped employment; that preventing the redeployment of assets from sick to healthy units somehow helped the overall cause of the working men; and that draining the banks, financial jobs was preferable to giving fresh employment on a much larger scale to the really poor. One reason for sticking to these myths was that every party has a labour wing. Therefore, the panacea for the ills that is inflicting to our industries is to drastically change the labour laws. The labour aristocracy must be finished and the concept of golden handshake be given fillip. In has also been observed that in many industries, the rival companies play very important role in playing the dubious role in fomenting the workers and thereby causing loss to the competitors. But many a time this tactics boomerangs on them. It is difficult to ask the workers and the managements to observe honesty in their conducts, therefore, the only way out is make it transparent without giving any space or scope to dishonest and unfair handling of the situation. BM Business Manager

April 2012

P.C. CHATURVEDI Manager (L&IR), Rajasthan Textile Mills, (Raj.)

Of Trust Deficit In service jurisprudence if the event of loss of confidence has occurred, no measures can build it again or be regained it. Although in other fields of relationship, we talk of "confidence building measures".

upreme Court has time and again lambasted the delinquencies involving loss of confidence in an employee more so of an employee in private sector. The court is in the habit of frowning at such indulgences. It has also jumped with the prescription that such a delinquent shall not be shown any leniency and that punishment of dismissal would be proportionate to the gravity of such misconduct. The Supreme Court has also laid down the guidelines as to what would be the situations and at what point of time as also the nature of charges that would bring about loss of confidence in an employee. The charges and proof of theft, embezzlement, fraud, breach of trust, disclosure of trade secrets and corruption would be such contingencies that would cause the events of loss of confidence. In service jurisprudence if the event of loss of confidence has occurred, no measures can build it again or be regained it. Although in other fields of relationship, we talk of "confidence building measures". The Supreme Court has also held that the question of considering reinstatement after decision of acquittal or discharge by a competent criminal court would hardly arise if in the case enquiry has been held independent of the criminal proceedings, acquittal in a criminal court would be of no help. The law is otherwise. Even if a person stood acquitted by a criminal court, action if based on the result of domestic enquiry which has been held adhering to the principles of natural justice, it shall be sustained. The reason is that standard of proof required in a domestic enquiry and that in a criminal case are altogether different. In a criminal case, standards of proof required is beyond reasonable doubt while in a domestic enquiry it is prepondrence of probabilities that constitutes the test to be applied. We are so concerned of such mis-demeanours that

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the Government of India is contemplating move to seize assets of corrupt babus even after their retirement. The main theme of this write up just commences as to what is the legal metaphysics of this exercise of holding the loss of confidence remedy. In catena of cases the Supreme Court has dealt with various phases, aspects and ingredients of this contingency of loss of confidence. The Supreme Court has categorically held that once the employer has lost confidence in the employee and the bonafides thereof are affirmed, the order of punishment must be considered to be immune from challenge. The reason is obvious that discharging the office of trust and confidence requires absolute integrity and in the event of loss of confidence reinstatement can not be directed vide Air India Corporation V.s V.A. Rebellow (1972) 1 SCC 814 and BHEL V/s. M. Chandra Shekhar Reddy (2005)4 SCC 481. Earlier the Supreme Court in the case of Kanhiya Lal Agarwal Vs. Gwalior Sugar Company Ltd. (2011) 9 SCC 609 laid down the test for determining the loss of confidence in the employee. It ruled that the employee must be holding the position of trust and confidence, he must have abused such position by committing an act which resulted in forfeiting the same and that to continue him in service would be embrassing and inconvenient to the employer as damaging discipline and security of the establishment. It has also been ruled that loss of confidence could not be subjective. It should be objective as to lead to the apprehension in the mind of the management regarding the trust-worthiness or reliability of the employee. Similarly the loss of confidence must be alleged and proved. An employer would not be compelled to keep an employee in service with whom relations have reached the point of no return. There is compete breakdown of loss of confidence/faith between

Of Trust Deficit

The Supreme Court has categorically held that once the employer has lost confidence in the employee and the bonafides thereof are affirmed, the order of punishment must be considered to be immune from challenge. the duo vide Binny Ltd. Vs. Workmen (1972) 3 SCC 806, Binny Ltd. V/s. Workmen (1974) 3 SCC 152, Anil Kumar Chakraborty V/s. Saraswatipur Tea Company Ltd. (1982) 2 SCC 328, Chandulal V/s. Pan American World Airways Inc. (1985)2 SCC 727, Kamal Kishore Lakshman Vs. Pan American World Airways (1987) 1 SCC 146 and Pealite Liner (P) Ltd. V/s. Manorama Sirsi (2004)3SCC 172. It has also been held that theft is a contingency of loss of confidence and the quantum of theft would not be important and relevant but what is important is the loss of confidence of employer in employee, when he has committed such a misconduct. It would not be safe and in the interest of the employer to continue the employee. The loss of confidence occupies the primary factor and not the amount of money. Sympathy and generocity have no place in dealing with such cases and the punishment of dismissal that could be awarded would not be disproportionate in the given circumstances. The punishment should always be proportionate to the gravity of the misconduct but punishment of dismissal for corruption, misappropriation and thefts are definitely proportionate and it should never be interfered. In service jurisprudence, the history attests that a cat and mouse game is always going on between the two. The plea of the employer of his "loss of confidence" more so where holding a position of trust and confidence, the concerned

ceased to have confidence in the dismissed employee but at that time a distinction was drawn that the plea of loss of confidence was addressed against the order of reinstatement and not in support of order of dismissal. It has also been held by the Supreme Court that this aspect of plea of no confidence required determination on facts could be properly placed before the Tribunal and the finding secured after appropriate trial. It therefore follows that this concept of plea of no confidence originated long back in 1960s and still continues to hold the ground with some modifications and alterations which situations warranted. In the aforesaid backdrop and the chronological account of the judicial evolution of the concept of "loss of confidence", I may now refer to a latest case of Supreme Court Divisional Controller, Karnataka Road State Transport Corporation V/s. M.G. Mittal Rao (2012) 1 SCC 442. This case is vastly important because it decides several facets in this regard. It so happened that the workman was charged of committing theft from the cash chest of the employer for which he was charge-sheeted and enquiry was held adhering to the principles of natural justice and that he was awarded the punishment of dismissal. The workman raised an industrial dispute and the case was referred to the Labour Court which answered the reference in negative, holding the workman guilty of the theft with his colluders.

The loss of confidence occupies the primary factor and not the amount of money. Sympathy and generocity have no place in dealing with such cases and the punishment of dismissal that could be awarded would not be disproportionate in the given circumstances. employee misused that position rendering it insecure and undesirable to retain him in service, despite his discharge or dismissal having been held to be invalid, will destroy the discipline. The first case in which the Supreme Court accepted the plea of loss of confidence advanced by the employer was Assam Oil Company Ltd. V/s. Its workmen 1960(1) LLJ 587 (SC). In this case the company lost confidence in the manager. Then again the court in the case of Rubi General Insurance Co. Ltd. V/s. P.P. Chopra 1970(1) LLJ 63 accepted the plea of the management of loss of confidence in a Stenographer although this plea was first pressed before the Supreme Court. Then again in Hindustan Steels Ltd. Vs. A.K. Roy 1970 (1) LLJ 228 the plea of the employer of loss of confidence in the workman prevailed. Then there are similar cases i.e. Workmen of Sudder Office Cinmmara V/s. Management of Sudder Office 1971 (2) LLJ 620 and Binny Ltd. V/s. their workmen 1972 (1) LLJ 478 (SC). So at that time also it had become almost a settled principle that reinstatement would not be awarded where the management justifiably alleged that they had

The High Court in the Writ Petition modified the order of dismissal into termination. However, the Division Bench of the High Court allowed the appeal and quashed the award of the Labour Court and reversed the order of the Single Judge and reinstated the workman with all consequential benefits. In between the workman who was initially convicted of the criminal offence touching the same misconduct got acquitted at the level of High Court. The Apex Court therefore in this case as brought by the workman decided that it was a case of established loss of confidence which was alleged and proved in the domestic enquiry which was adjudged fair and proper and on which the punishment of dismissal was properly and proportionately awarded and that ultimate acquittal by the criminal court was of no consequence to the workman because in the twin proceedings the standard of proof are distinct. In one stroke, the court decided so many aspects of the event of loss of confidence in service jurisprudence. It is now a law of the land on this question. BM Business Manager

April 2012

7th International Conference on

IT Applications and Management

he 7th International Conference on IT Applications and Management: Technological Innovation and the Future of Culture and Tourism was organized by JK Lakshmipat University, Jaipur in association with The Korea Database Society (KDBS), hosted by Hanyang University, Seoul, Korea from December 28-29, 2011. The Conference was inaugurated by Shri M. L. Mehta, Former Chief Secretary, Govt. of Rajasthan, Chief Guest. Shri Mehta emphasized upon the role of technology in improving the life of a common man. He highlighted the age-old Indian philosophy of "Vasudev-Kutumbkum" and said that technology has made it possible today and has transformed the world into a truly global village. Dr. Upinder Dhar, Conference General Co-Chair and Vice Chancellor, JKLU asserted that Information Technology (IT) represents the Driving Force for present day organizations. He added that culture is affected by technology, and tourism is one area that has been immensely benefitted by technological innovations. Dr. B.V. Babu, Co-Chairman - Organizing Committee and Director, IET, JKLU introduced JK Lakshmipat University to the audience and shared the vision, mission and philosophy of the University. Prof. Namjae Cho, Conference General Chair and President, Korea Database Society (KDBS), delivered the Opening Remarks and explained the objectives of the Society and ITAM Conference. The Keynote Address was delivered by Dr. D. K. Banwet, Professor and Group Chair, Operations and Supply Chain Management, Dept. of Management Studies, IIT Delhi, India, who discussed elaborately about how relation between functional groups can work wonders for any industry. He also highlighted the significance of competitiveness for service industries like travel and tourism. On the second day, the Speaker for the session was Prof. K. B. Kothari, Pratham Rajasthan and Former Professor, IIM Ahmedabad. Prof. Kothari highlighted the need for research in the areas of social, community and 56

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rural development by scholars of IT and Management. Prof. Cho in his concluding remarks integrated his expertise in the area of technology to social development. In all six technical sessions saw a presentation of 65 papers during the conference. The Valedictory Session Chief Guest was Dr. Raj Singh, Vice Chancellor, Amity University, Jaipur, Rajasthan. He emphasized upon the importance of information technology and highlighted its impact on various industries, including travel and tourism. BM

CASE

study

Sustainability in Competitive Times The case traces the success story of PIP and highlights its growth from a small domestic player to an international player. Changing micro environment, Government policies, and competition and growth opportunities led the company to go into new sectors of turnkey manufacturing projects in a planned manner.The case gives an overview of change management, strategic decision making, market adaptation, project management and innovation.

ison Industries Pvt., Ltd (PIP) located at Pune, was set up in 1957 as New India Engineering Works. Itdeat with the manufacturing and supply of components for the sugar mills.The companydesigned, manufactured, supplied and installed technologically advanced solutions to sugar plants, mining andbulk materials handling, cement plants and industrial boilers & power plants.Initially, the company was set up by a group of 5 friendsbelonging to the Bohra community. In 1960s growing sugar acreage, and Govt.,incentives led to a large number of sugar mills to become operational in Maharashtra and UP. Seeing an increasing market,in 1965 New India Engineering Works entered into a collaboration with Hilderberg (45%), a German manufacturing company which was into design and manufacture of sugar plants for full plant technology involving design, manufacture, installation, commission (upto commercial production) and providing after sales services. In 1992 the company was taken by Pison AG by acquiring 53% stake of the company while the remaining 47% remained with the 5 Indian private stake holders. The company was renamed as Pison Industries Pvt Ltd.PisonAG (a company formed through a merger of Pintel(1805) and Samson) had a presence in all 5 continents with an annual sales turnover of Euro 50 Billion. It had 1, 88, 000 employees. The group had pursued a strategy of globalisation beingfocused on coming closer to its customers and reducing costs, while catering to their precise needs.

Questions

Comment on strengths of the company.

Comment on the strategy the company adopted to remain focused in the business.

According to you which strategy other than diversification should the company adopt for sustainability?

In the absence of the incentives what according to you keeps the employees motivated?

How the company differentiated itself in achieving sustained growth. Business Manager

April 2012

CASE

study

The company had full confidence in the skill and the competencies of its employees.They had empowered their employees to go in for any innovation they would find suitable for the customer satisfaction. The Company Pison Industries Pvt Ltdwas part of the global Pison AG which had two major business areas namely Material and Technology. Material Business Area dealt with Steel Europe, Steel America, Steel Global and Material Services while its Technology Business Area dealt in Plant, Elevator, Component Technology and MarineSystems.Itsstrategic vision was to be a leading contractor executing full plant turnkey projects. Full plant turnkey project encompasses Proposal Engineering, Design and Engineering, Project Management, Materials Management, Manufacturing, Erection and Commissioning and Training and After Sales service. The company was into delivering total customer satisfaction that spanned everything from concept to commissioning to after sales service. The company focused on differentiating it from its competitors in terms of pricing, efficiency of manufacturing and after sales services. PIP came under the Plant Technology Business Area and was into Sugar Plant, Boiler Manufacturing, Cement Plant, Open Cast Mining& Bulk Material Handling systems and Elevators & Excavators. It had its manufacturing plants in Pune and Hyderabad where they manufactured components for all varied type of plants. It had 15,000 employees and had achieved a turn - over of Rs 1300 crores in 2010 and had set a target of Rs 1,500 crores for year 2011.The company was ISO 9001-2008 & ASME quality certified. PisonIndustriesPvt. Ltd. (PIP) in the last five decades had grown through diversified manufacturing activities. It had till 2010 supplied 131 Plants, 543 Mills and 4040 Centrifugal machines all over the world. The diversification was supported by German Technology with indigenous additions.

The Footprints The transition of PIP from a pure Sugar Plant turnkey project company to its present status had been gradual and in league with the growing market demands. Starting from 1957 when it was into manufacturing of small components for the sugar industry, it expanded and diversified from time to time in league with the micro environment. The company began by first investing in infra-structure and the purchase of requisite machinery. This was essential as till then raw material was imported and casting was outsourced. With these investments the company had the flexibility and capacity to diversify. All along in its growth and expansion the investments came in from internal accruals. It did not have to go to banks or investors for capital generation.

Sugar Plant Under each of its Five-Year Development Plans, the Government had provided for additional capacity to meet estimated increasing demand for sugar. Thus, the number of sugar factories rose from 138 in the early-fifties to l73 in l960/6l, and by the mid-nineties their number exceeded 440. Seeing the potential in this business PIP decided to move from small sugar factory component manufacturing into complete sugar plant making turnkey projects which was the reason for its collaboration with Hilderberg. Till 2010 the company had supplied150 mills of capacity - 800- 15000 TCB to various Cooperative Societies in the country as well as exported them to other countries. The Company had achieved the expertise of commissioning a 58

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The timely completion of the project, quality, and commitment was inbuilt in the culture of the organization. Theorganization had middle and higher level executives with an average continuous service span of 25 years in the company. PIP had a policy ofnot giving financial incentives or rewards to its employees who would meet the deadlines or who would come out with innovations.

CASE

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complete plant in a record average time of 15 months. Over the years the Indian sugar industry suffered from structural problems & over 40 percent of the factories were more than 40 years old. PIP then realized that the new as well as the replacement market was limited, therefore, it was imperative for the company to enter into some other product project and look for other possible project potentials.

Boiler& Power Plant From, the Fifth Plan onwards i.e. 1974-79, the Government of India got itself involved in a big way in the generation and bulk transmission of power to supplement the efforts at the State level. It took up the onus of setting up large power projects to develop the coal and hydroelectric resources in the country as a supplementary effort in meeting the country's power requirements.Looking at the said developments, PIP decided to leverage their engineering strength by venturing in to this product project. In 1976 the company started Boiler and Power Plant turn key projects of capacity of 150 TPH to 300 TPH and supplied them to the private sector, ensuring that the average commissioning time for the turn key project was only18 months. The policy of liberalization announced in 1991 by the Government of India and consequent amendments in Electricity (Supply) Act opened new vistas to involve private efforts and investments in electricity industry and PIP took advantage by exporting power plants to countries in Africa and Asia.

Government policies had affected the growth of cement plants in India in various stages. The control on cement for a long time and then partial decontrol and then total decontrol had contributed to the gradual opening up of the market for cement. The cement industry was going through its boom period with full capacity utilization.

Cement Government policies had affected the growth of cement plants in India in various stages. The control on cement for a long time and then partial decontrol and then total decontrol had contributed to the gradual opening up of the market for cement. The cement industry was going through its boom period with full capacity utilization. Powered by a GDP growth of 8-9%, the annual demand for cement in the country continued to grow at 8- 10%. To take the advantage of this, PIP decided to venture in to Cement Plant making. Thus, in 1980 it entered the Cement Plants and Machinery turn key projects. By 2010 it had supplied 30 full plants which included BanikGarh, Tltra Tech, Sirla Cement and had also exported to UAE, Kenya, Sudan, Sri Lanka, Nepal, South Africa, Uganda of capacity ranging from 650 to 7500 TPD ensuring a min time of 27 months from inception to commissioning.

Open Cast Mining and Bulk Material Handling Machinery In 1991,the liberalisation of the economy made the Government and private sectors to invest in the infrastructure. It was a boom in the infrastructure sector. The company immediately saw an opportunity and ventured into Open Cast Mining and Bulk Material Handling Plants. The company dealt with varied customer base. For Sugar Plants the customers were the State Cooperative Societies while for the Boiler and Power Plants the customers were from the Private sector. In case of Material Handling Equipment the customer was Central Government and for Cement Plants they were Private sector companies. Thus PIP was catering to diverse customer base.For the company the customer was the focal point around which they put every possible effort to satisfy him. Timely delivery, quality and meeting specific requirements had become the sole objective of the company. PIP in addition was able to win the confidence of Customers by putting its employees / people at the centre of all its efforts. It also ensured continuous up gradation of its employees skill-set through suitable training which empowered them to be creative and innovative and facilitated them to achieve higher efficiency at the work place. The company ensured that their clientele would not be affected. In 2007 a Business Manager

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CASE

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turnkey sugar plant was being set up for one of their existing clients. The project was running into time over- runs and the apprehension was that the project would be delayed by 6 months. The client was not ready to accept the delay and the management did not want to lose a loyal customer. The management geared up and set up a special task force from different functional areas to look into the matter. The task force identified 12 companies who had the requisite competence in manufacturing and outsourced the jobs to them. To ensure quality and timely delivery for in time project completion, PIP placed one engineer with each of these companies. Similarly in one of the projects for a large Public Sector it was found that the project was lagging behind schedule and no definite reason could be pinpointed. To overcome this difficulty, a cross functional task force was formed which was successful in ensuring timely completion of the project.

The Company did not hesitate in taking a risk of outsourcing to a developing country in order to meet the time deadlines and cost and quality considerations. In the infrastructure boom period, PIP had a large supply order of 50 mills in a year. As the company installed capacity was inadequate to meet the demand, the production was outsourced to some companies in a developing country while ensuring quality control through monitoring of its own engineers. The company had full confidence in the skill and the competencies of its employees. They had empowered their employees to go in for any innovation they would find suitable for the customer satisfaction. Thebucket wheel excavator used in Open Mining had a massive 8 m diameter. At the time of installation it invariably needed fine grinding on site. The process was laborious, time consuming and problematic in terms of availability of machinery at site.This invariably resulted in delays and customer dissatisfaction. This was observed by the Manufacturing head. To overcome this systemic problem, he decided on his own, to cut the wheel bucket into two along the diameter. This facilitated in hoisting it in the factory floor and fine grinding it. After grinding both the parts were then welded together and transported to site. In this manner no time was wasted at site and there were no fine fitment problems. Also the overall time was reduced and full customer satisfaction achieved. Similarly Mill shell with a 5m diameter of bearing was being manufactured for the first time in PIP. With the existing know how it was not possible to machine it. Innovation was done by the manufacturing team to apply rollers to rotate the bearing and complete the machining. These rollers were specially manufactured in house at their Hyderabad plant. This process resulted in cost and time reduction. In addition, the customer's operational cost was also reduced due to the better fitment of the product in the assembly. The timely completion of the project, quality, and commitment was inbuilt in the culture of the organization. Theorganization had middle and higher level executives with an average continuous service span of 25 years in the company. PIP had a policy ofnot giving financial incentives or rewards to its employees who would meet the deadlines or who would come out with innovations. The employees would never defer to give their utmost. Training was imparted to employees on continuous basis. Company would send its engineers to update their knowledge and skills to Germany 8 - 10 times in a year. All shop floor employees were trained to work on 4- 5 machines and job rotation was also practiced. The company was quite optimistic about its set targets.

This case was developed by Santosh Dhar (Institute of Management, JK Lakshmipat University, Jaipur, Rajasthan, India); Rajiv Divekar (Symbiosis Institute of Management Sciences, Pune); Kaustubh Medhekar (Symbiosis Institute of Business Management, Pune); Viraja Bhatt (Symbiosis Institute of International Business, Pune); Dinesh Khisti (Symbiosis Institute of Operations Managament, Nasik); Pradnya Chitrao (Symbiosis Institute of Management Sciences, Pune) in a case writing workshop organized by Symbiosis International University, Pune in collaboration with JK Lakshmipat University, Jaipur Rajasthan, India on April 25-27, 2011. 60

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Trends

Robots confront men in Car Factories An alliance between man and machine is an uneasy one even as automotive companies from Cheannai to Chakan, Gurgaon to Sanand, slowly deploy more robots. Honda Siel, in its journey from 30,000 cars a year to 120,000 has almost tripled automation levels-from 20% to 55% Maruti Suzuki's Manesar plant is highly automated compared with its older Gurgaon facility. Ford India deployed 90 robots to meet high demand for its small car Figo.

system that switches off power automatically during the breaks. The level of automation in Apollo Tyres brand new Chennai is the highest among all its plants. "Our Chennai unit was built with automation as an intrinsic part of its operations and therefore it is part of the plant culture," says Satish Sharma, Chief ( India operations).

There is no full-blown man machine confrontation yet, only a gnawing fear among 200,000 employees at auto factories across the country. "Automation is also one of the points of differences with the management," says A Soundarajan, General secretary of trade union Citu, who has fought many a battle with Hyundai India's management in recent year. "Automation will result in Job losses and retrenchment." Fifteen machines would have needed 15 operations a few years ago. Now, one man can run 10 machines. Car companies directly and indirectly employ over five workers for every car produced. All auto and component companies together employ over 1.3 crore workers directly and indirectly. Today, 40% of the value of the car comes to Hyundai by way of pre-arranged modules, de-skilling the job at the shop floor. Yet against the back droop of these robots, sourced from sister company Hyundai Heavy Industries, Hyundai employees aren't letting things to drift in favour of their inanimate factory mates. They have been working on improvements these days. These range from tools to detect the welding quality to an energy saver

CTC by Co, salary design by self Companies are now offering their employees the choice to structure their pay packets. So while the cost to company (CTC) is fixed by the employer, employees are given a free hand to decide on which components they would like to have as part of the salary. Termed 'My Pay, my Choice' by Procter & Gamble India (P&G), 'Flexi Menu' by Marico and Bouqet of benefits' by Tata consultancy services (TCS), the objective is one and the same. And though it's still limited to certain companies, the trend could grow. P&G launched 'My Pay My Choice' this year after it realized that youngsters prefer a working environment which offers them choice, even in the way their salary is structured,. "We realized that because you have different generation of people, choice. For instance, they may want to take a certain amount of cash or keep it in a company fund which will come with its own benefits. People see value in this," said Sonali Roychowdhury, head, HR, P&G India, which has 1,000-odd managers in the country. Similarly, to attract new recruits as well as retain the existing talent, TCS, Asia's largest IT services provider, has a scheme called 'Bouquet of Benefits', which allows employees to design their own pay packets. Launched some six years ago, employees are allowed to make changes to their salary structure twice in a year. The flexible-benefit plan aids employees in working out their tax payouts. TCS has over 2 lakh people on its rolls. At Asian Paints, the country's leading paint company, all 700 executive and managerial cadre employees are covered under a 'Flexi Grade Allowance' system, which gives them the option of designing certain allowances to suit their lifestyle. So while the CTC is fixed and benchmarked against the market, the components may vary from one manager to the other.

Apollo has already set in motion an automation deployment plan for all its four India facilities. Already, work done by a group of workers earlier is now managed easily by a robot. Also, to be in the game workers would need more advantage skills. The Indian auto shop floor isn't as automated as those in the more mature markets. So, while the German Carmaker Volkswagen's Chakan plant has an automation of 30% in its body shop, the comparative number back home would be 90%. In low wage countries like India the question is whether rising wages and rising production volumes will lead to the levels of automation as in the mature economies ? Labour does remain an alluring option, despite recent problems. That's why, Abdul Majeed, Auto practice leader, Price Water House cooper, reckson, "The growth of automation will be slow in India." This is despite robots enabling efficiency improvement between 25 and 30%, he says. The high rate of growth in the industry makes this possible. So, although there is no immediate threat to workers in the Indian shop floor, the demands on them aren't the same anymore. Their roles are changing.

HR Practice

Cos doing away with leaves system : employees to manage self Marico, which makes Parachute coconut oil, does not keep a muster to monitor employee walk-ins at work. If an employee takes a day off, he or she is not marked absent . Nor is the employee required to file a leave application. Like Marico, many other companies have struck out the system of casual leave (CL) and sick leave (SL) from their leave calendars. Hindustan Unilever, Asian Paints and Jyothy Laboratories are some of the other companies which do not follow a CL/SL system and believe in empowering employees to manager their work schedules to meet their targets. This trend can be observed in industries like FMCG and financial sector, where employers are concerned about the end result and perhaps it helps in employee retention as well. Such initiatives have a positive impact on the productivity of employees who can manage their work schedules better in addition to attending to family needs. Marico offers flexi-timings as it believes that every employee has the capability of managing his or her life better if he or she is her own boss. So, a casual leave is not an entitlement and that the organization's task is only to facilitate the same. Jyothy Laboratories offers its employees 21 days consolidated leave rather than complicating matters with CL and SL, said a senior official. A number of traditional companies, however, still follow a CL/SL/PL (privilege leave) calendar, especially in the sales departments, where work schedules are followed like a military regime. While, on the other hand, some companies offer flexi-time opt ions to middle and senior-level employees. At Mahindra Group, the attendance tracking is through access control cards. "At middle and senior levels, the attendance regularization is empowered to the employees. Up to managerial levels, the absences need to be regularized by applying through system which requires to be approved by superiors," said Neha Kharde, GM, corporate human resources, Mahindra & Mahindra. Business Manager

April 2012

HR News

Industry creating less jobs by preferring automation According to a recent report by the international labour organization (ILO), total employment increased only by 0.1% between 2004-05 and 2009-10 where as labour productivity grew by over 34% during this period. Companies are preferring to employ more capital instead of labour while producing goods. The country's worker-to-fixed-capital ratio in the registered manufacturing sector has declined from 10.9 in 1990-91 to 3.2 in 2009-10. Growth in employment, too, has slowed from 2.61% in 1993-94 to 1.02% in 2009-10, according to five yearly NSSO survey. Experts believe the shift towards capital-intensive production can be explained by restrictive labour laws, which result in an increase in contract labour, poor availability of skilled labour and greater competition from better quality foreign goods. "When viewed in conjunction with slowing employment, it is certainly a problem. And the main reason is that the labour-intensive industries are not growing fast enough," said Pronab Sen, Principal Advisor, planning commission. "More research is required to understand why the traditional labour-intensive industries are also preferring capital." An increasing bias towards capitalintensive production, or a higher degree of mechanization, has also skewed India's export basket. (It's) a matter of concern because it is this (labour-intensive manufacturing) sector that holds the potential to absorb the large pools of surplus labour from India's agriculture sector. A fall in labour intensity in manufacturing -- the extent of labour inputs used in per unit of output produced -- also raises concerns about India's ability to absorb its rapidly expanding work-force and reap the benefits of a favorable demography. "Since the labour supply is rising but demand is unable to keep up, it is not possible to reap the benefits of a large young population -instead it will increase the burden on the economy as there will be more mouths to feed," said Arup Mitra, labour economist at the Institute of Economic Growth. The ASI (annual survey of industries) data on workers employed is under estimated because it doesn't capture the huge rise in contract labour. Rigid labour laws have forced employers to seek out workers on contract.

Business Manager

April 2012

Contract labour unions knock court against Holcim Cement giant Several Indian and international unions for contract workers have filed complaints against the Indian arms of Swiss multinational firm Holcim, the countryâ&#x20AC;&#x2122;s largest cement manufacturer, for alleged gross violations and undermining of the rights of contract workers employed by the cement manufacturers in the country. The complaints have been filed against Holcim India and its subsidiaries for the violations of OECD guidelines. (OECD stands for organization for Economic Co-operation and Development). It is an international organization of 34 economically developed countries which has laid down guidelines for MNC enterprises regarding respect for international norms for labour standards and human rights. The complaints, Pragati sheel Cement Shramik Sangh (PCCS), an independent union of contract workers in Chattisgarh alleges gross violations of contractual workers in the Cement plants of Holcim India and Group firms in Chattisgarh. It alleges that the village land in Chattisgarh have been encroached by the cement gaint without giving much employment opportunities to the local communities. It alleges that Holcim refuses to regularize contract workers despite two court findings. Also, the profits for the cement firm has been soaring whereas the contract workers get paid only minimum wages or even less wages than what is set by the Cement Wage Board. PCCS claims to have found support from several international federations representing over 20 million workers worldwide and from Building and wood Workers International comprising of 328 trade unions.

Hiring drops, but not salary hikes : Study Despite the uncertain economic scenario, 72% of recruiters in India have said that new jobs will be created in the first half of 2012 while about 4% said that there will be layoffs. Further, employees in India are likely to get a salary increase of 11.9% this year, putting the country on top for the tenth year in a row in terms of pay hikes within the Asia Pacific region. The overall optimism, however, is lower than what it was nine month ago when in July 2011, 78% of recruiters had predicted addition of new jobs in the seconds half of 2011, according to Info Edge promoted Naukari.com, while as per the survey conducted by global human resources consulting and outsourcing firm Aon Hewitt, the salary hikes for India in 2012 would decline marginally from 12.6% in 2011 due to cautious approach by employers. Thus, although the overall sentiment shows that there will be positive job growth over the next six months, recruiters in auto, banking, pharma and construction were not as optimistic as those in the other sectors. Interestingly, the pharmaceutical sector is likely to witness a 13.3% salary hike for 2012, followed by engineering design/services projects at 13% The surveys noted that more than 56% recruiters said that attrition in their organization is less than 10% while 32% said that the range of increments would be between 10% and 15%.

HR News

IT companies pep up appraisal process Pune - based IT company Persistent Systems has injected an element of fun into its annual appraisal process. Their employees are building ‘virtual homes’, representing their career, and doing them up with rewards they get for a job well done. Persistent claim this is a first-of-itskind initiative in the IT industry. Nitin Kulkarni, executive director and chief operating officer, Persistent Systems, says, “Two months before and after the appraisals, the staff is engrossed in the process. They become dysfunctional and only worry about ratings and promotions, and what is achieved out of this year-end process is not clear, too.” “Nearly 70% of our people have 0-5 years of work experience and are up to 2728 years of age,” he says, adding, “For them, the yearly appraisal process is painful and lengthy. They are more used to communicating on social networking sites and are more communicative on the virtual world.” The company has, therefore, developed a platform eMee’ to cover 7,000 employees across the globe.

The platform combines elements of social networking, gaming, virtual communities and enterprise intranet to create a new way of employee engagement. Relating to the younger generation is a different ball game, Kulkarni adds. Each employee has a house in which their key result areas are displayed using rich graphics. They do up their house with rewards they get from their managers and icons of reprimands are added, too. Employees can see where the stand vis-a-vis peers, as if they were in a car race. There is a constant feed-back flowing between the employee and managers. Everything is visible to all employees barring the final ratings. Large IT companies still use the old model of filling appraisal forms and only few have switched over to an electronic mode. “I think the next generation doesn’t want anything to do with spread-sheets,” says Tarun Sharma, VP (R&D and GM), BMC India. IT companies in India have a young workforce, where average age is below 30, and this new generation thinks

Employees not paid for months in PSUs

At state-run Instrumentation Ltd. in Kota (Raj.) employees have got salary since December. He is among the 1,400-odd employees at the PSU who for years have been getting their pay cheques with a lag of several months. “Earlier employees used to take a loan against provident fund balance but for the last two years, we are facing difficulty with that too,” says Madan Lal. This when lakhs in arrears are owed to Company employees due to pay Instrumentation Ltd, Kota revisions between 1992 and Hindustan Cables 1997. The same story is playing HMT Ltd out in other loss-making firms HMT Bearings such as Hindustan Cables, HMT Chinar Watches HMT and Scooters India. HMT Watches There are over 12,000 such Hindustan Photo Films employees in at least a dozen Nagaland Pulp and Paper PSUs reporting to Praful Nepa Ltd Patel’s ministry of heavy Scooters India industry and public Triveni Structurals enterprises, who get their Tungabhadra Steel salaries with a six month lag. Unlike Air India, where the threat of a strike and the prospect of inconvenience to thousands of travelers prompt the government to make a special payment, in the other loss making PSU the government has decided to pay delayed salaries as a policy. “Usually there is a three month lag between the last date on which the salary was paid and when the government starts processing the proposal. It then goes to the cabinet for approval. So, the entire process takes nearly six months,” says an official in the industry ministry. “This (delay) is (deliberately) done to put some pressure on the management and the employees to work out a revival plan and perform better,” adds the official, pointing out that 16 of the 28 sick PSUs under the ministry’s charge have been revived over the past few years.

Ailing

differently, says Tarun Sharma. “But it is not possible to completely do away with the traditional system of appraisals which has focus on account ability, performance and bottom line,” says Pallavi Sharma, general manager –human resources, Fiserv India. Performance management is a continuous evaluation process that requires a 360-degree feedback that includes not only the manager, but peers, subordinates and customers also, says Pallavi Sharma. But there is a drastic change in the way appraisals happens in organization today, she acknowledges. Fiserv has tried some innovative business practices to engage with its employees career growth. It has a ‘My Career, My Responsibility’ programme where the motto is ‘managing my career is in my own hands’. Employees indicate their career interest and assess the competencies required for the current role themselves and work stowards achieving those competencies to progress in their careers.

Air India sacks 43 employees, move to save Rs 6 cr per annum In ITS desperate attempts to cut costs, the government-owned Air India has begun the cleaning up exercise. It recently terminated services of 43 employees who were continuing on the payrolls even after retirement. The move will help the cash-strapped company save Rs.6 crore annually. The move comes at the advice of aviation ministry, which has also asked Air ports Authority of India (AAI) and other departments to carry a similar exercise. According to a ministry official, even in AAI, a few people have been asked to leave. “For AI, which is under debt restructuring process, it is necessary that the company takes every step to reduce its cost. These are many more people whose employment contracts are being extended even after retirement for various reasons other than merit,” the official said. The carrier has indentified 95 more such people who may face similar consequences. “We are in the process of reviewing their performance and role in the company. Depending on that, we’ll take a call on whose services should continue,” an AI official said. Though the number of such people are too small for a company with around 30,000 employees and an annual bill of over Rs.3,000 crore, the cleaning up exercise is significant as lowering operational cost is one of the main criteria that the carrier needs to fulfill to avail financial support from the government. The carrier is also going through a wage restructuring process, for which the government has appointed a committee. In one of its recommendations to bring down the wage bill, the committee has suggested that the salaries of around 2,200 pilots in AI should be brought down at par with their counterparts in the private airlines in the country. This, if implemented would lead to a reduction of up to 30% savings from pilots’ salaries. “Bringing AI pilots’ salaries at par with private carriers would not really help much in saving as the overall wage restructuring is going to be cost neutral. But, it would certainly make a difference in long run,” said the aviation ministry official. The government recently approved the debt restructuring plan of the national carrier under which the airline would be allowed to raise Rs.7,400 crore via bonds, backed by a sovereign guarantee. The carrier, at present, has a total debt of Parul Rs.43,777 crore. Business Manager

April 2012

HR News

PF unreconciled A/Cs overshoot total subscribers The Employees' Provident Fund Organisation (EPFO) has found it has 48.5 million subscribers whose accounts do not square up. The numbers are more than the total number of subscribers47.2 million, according to its last annual account-to India's largest governmentfunded pension company. The cross-check was done by the Finance and Investment Committee of the EPFO, which reports to the Central Board of Trustees of the organisation, in a background paper. The check was at the prompting of the finance ministry. The ministry had noticed that accounts of the contributors to the EPFO have not been reconciled for quite a few years. As a result, it was discovered that the total number of accounts in the organisation made up of private sector employees' contribution had risen to 158.3 million as on April 1, including dormant accounts. Of these, the EPFO has been able to clear only 109.7 million accounts till November 22, leaving a backlog of 48.5 million accounts. Basically, the organisation does not know how much each of these subscribers have paid into their accounts over the years. The total sum parked in the accounts is Rs 10,128.51 crore. The EPFO classifies them as an "interest suspense account" and will use the funds to set an interest rate for the year. This is far more than a corporate governance issue, said Kaushik Datta, director of TARI, a Delhibased think tank on the sector. "This is a fundamental problem that affects the entire business of the organisation and needs to be looked into." Despite this gross violation of corporate governance standards, the board of EPFO is not planning any action against any officials. Based on the suspense account, the investment Committee has recommended an 8.25% interest rate for subscribers for 2011-12. In 2010-11, the EPFO had credited a 9.5% interest rate for its 47.2 million subscribers.

Business Manager

April 2012

Minimum Wages to be Linked to Prices of Essential Items The government will take up a 55 year-old proposal to link minimum wages to prices of food, clothing, fuel and housing. The Indian Labour Conference, a meeting of the government, employers and employee, had in 1957 suggested setting a wage floor based on a minimum food requirement of 2,700 calories per adult, clothing requirement of 72 yards per annum per family; rent corresponding to the government’s industrial housing scheme and expenditure on fuel, lighting and miscellaneous items. “It is good that the government is thinking of linking minimum wages with consumer expenditure as such remuneration is

hugely artificial and not based on empirical evidence available,” said Michael Dias, secretary of the Employers’ Association. D.L. Sachdev, secretary general, All India Trade Unions’ Congress, said: “These recommendations make a lot of sense and the government should certainly fix the minimum wage as per expenditure requirement of families.” The minimum wages Act of 1948, does not lay down any norms for fixing minimum wages of make the national floor rate statutory, which is why wages differ substantially between states. Minimum wages vary across states, from Rs. 62 in Andhra to Rs. 230 in Delhi.

Britannia has no place for poor performers: axed 42 Biscuit marker Britannia Industries sacked 42 executives in a single day signaling that FMCG companies, faced with soaring costs and hyper-competition, were cracking the whip on under performers. The development took place and came quite abruptly, said some of the employees who have been sacked. Britannia said it sharpened performance parameters for the staff this year differentiating them into "great, good and gone" and rewarded the top performers with bonuses as high as 150%, something not very common in the industry. Sources said Britannia decided to let go executives who had under performed in two out of the last three yeas. All 42 employees, including some managerial staff, who have been asked to leave will be given their salaries for the next two months, but have been asked to go on leave immediately. These employees were from the manufacturing, sales, packaging and quality control teams, said a person aware of the development. While the percentage of employees who have been asked to leave is about 3% of the company's total strength of around 1,400, the haste with which the move was executed shocked many staffers. But the company said the affected employees were put on notice for some months now. "This is pat of the ongoing performance management process, which differentiates the great, good and under-performers and has nothing to do

with any other factor. Each year, underperformers (usually 20 to 30) are put on a performance improvement plan and progress is consistently and carefully monitored. In those cases, where the level of performance continues to be below the acceptable benchmark and there is no noticeable improvement, employees are transitioned. There is no surprise for the employees as it is discussed in advance as part of the performance review and happens every year," said the company spokesperson. Some of the sacked employees said the development came as a surprise. "A senior management team accompanied by the Human Resource team had come down to Kolkata and asked us to put in our resignations. They simply said that this decision was taken in light of our performance,' said an employee from the company's Kolkata unit. This employee has been with the foods major for over two decades and was given a salary hike last year. "I didn't get a salary hike in 2009 and 2011. The HR asked me to resign saying that my performance was not up to the mark. The management has asked officers who haven't got two salary hikes in the last 3 years to resign for under performance," said a production officer, who did not want to be named. A retired Britannia employee, on conditions of anonymity, added: 'This is very unlike the way Britannia functions."