Editor’s Note
Creating value through HR In any business scenario stakeholders expect clear indications/ explanations of how its various business components are creating/ adding value for their organisation. Creating business value of the organisation is a consequence of energizing and focusing its people to develop required intangibles. It is commonly understood that at the end of day it is the financial performance of the business which counts. But, as far as creating value for the organisation is concerned, it is not only money. Money doesn't create value. Value creates money and it is people who create value. A person does not build a business. A person builds an organisation that builds a business.When HR becomes a creator of energy, drive, ambition, passion & commitment in others, organisation value is created. What are needed to manage are the above intangibles that produce value: energized employees could deliver outstanding quality and service. The real key for HR is the ability to get people sufficiently focused so that they eagerly and willingly strive for creating high value. Organisations have employment contracts with employees but they should also develop the psychological contracts with them. It creates emotions and attitudes that form and control behaviors at work. It is necessary for continuing harmonious relationship to share a common set of values. Trust is the basis of developing psychological contract and foundation of adding value to business too. HR can do it by understanding that trust cannot be fabricated. Trust is based on honesty, confidence and ongoing belief that organisations will follow through on their commitment to value creation. But HR alone cannot create and add value to business and organisation. Line management has at least as big a role to play as HR in assuring people that can deliver competitive success. A genuine partnership between two is the core of creating value to organisation. When HR professionals begin with the receiver in the mind, they can more quickly add value for key stake holders. This issue cover feature is all about unfolding the trends and dimensions that will help creating business value through people. HR veterans tell us. If you like it let us know. If not, well, let us know that too. Happy Reading!
Anil Kaushik
Readers Response
Simply superb! February issue of one liner important labour judgments is simply superb. This annual compilation has created a bench mark and thousands of HR managers like me keep waiting for this issue whole the year. Utility is too high. It helps in updating legal knowledge required to apply at workplace which no one can afford to ignore. Article on probation by H.L. Kumar is another striking combination of intellect and simplicity in contents. Probation has always been a subject of confusion for industry. This complex subject the is complete explanation about the status of the probationer. V.K. Mehra, Chandigarh
Useful At the outset, this is to inform you that the February issue has been compiled very nicely and Mr. HL Kumar's article on “Where Probationer Stands” was quite useful to have an insight thought of the subject. Further, art of Management Mantra and tantra was also a new idea of thinking in to the management functions and helps the readers to develop an idea towards the management role. Y. Nagendra Kumar, Kakinada
Thoughtful The article about managing young talent by Mr. Ganesh Vaidhyanathan carries deep
understanding and quite thoughtfulness. Ganesh has rightly pointed out few initiatives, HR needs to take up to meet ever ending aspirations of young talent. What I have experienced is young professionals cannot compromise with their self esteem, identity & recognition. They are full of logical and analytical skills. Free flow of information around them is keeping them ahead & sometimes they know much more than us in a better way. P.V. Rao, Hyderabad
Well Written Mansi Madan’s article on employee engagement & motivation is well written. With simple words and excellent examples she has made the topic interesting .The core of the issue is warm response, deep understanding and nurturing work culture in the organisation that keeps the employee driving and motivating. Priya, Noida
Great Learning In your recent workshop on industrial relations skills, I got a BM issue of December carrying four HR case studies with excellent analyses. Indeed it is a great learning. Gajender Rajput, Gwalior
Incomplete I am an avid reader and a keen admirer of Business Manager. Your issue of September 2011 covering "Training Ahead" was very well written but at the end of the day the contents on training were indeed incomplete. What your articles lack is the bane of suffering in the training needs. We all talk of the inputs, some of us talk about the evaluation, most of which is immediately after the training is over; this is the reason why Training and Development or (Learning and Development) invites the sharpest axe when budgets are low or recession threatened. I am a firm believer of the fact that the actual work of a trainer starts when the training is completed at 5.30 in the evening. Normally irrespective of the Trainer or the theme, there is a high volume of euphoria and "feel good" at 5.30 pm. Ask the participants about the program details, text and learning and one draws a fair blank. In all other functions effectiveness is measured by results except of course in HR and specifically in Training. How many Trainers sit down and look at transfer of learning to the work place after a period of 2 or 3 weeks on training completion. This study is never encouraged because in the absence of results, HR will be held responsible for the training being a cost and not its investment. Late Shri. Subir Raha, CMD ONGC always called the end of training " a headless chicken" lots of activity, lot of movement and then "Thud" No results. There should be a laid down mechanism and methodology for post training or post HR intervention follow up to ensure results. This needs to be covered in depth so that Training produces the desired results. D.N.B. Singh, Mumbai.
Readers are invited to comment on articles published in BM through email at : bmalwar@yahoo.com, bmalwar@gmail.com 2
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Inside
March 2012 Vol. 14 No. 9 Chief Editor ANIL KAUSHIK Associate Editor Anjana Anil Hon'y Editorial Board Dr. T.V. Rao, Dr. Rajen Mehrotra, Dr. V.P. Singh, H. L. Kumar 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
Creating value in organisation is not just all about creating a “feel good” factor all around, but infusing intangibles at all levels like passion, commiment and willing to do all that enhance business value. Helping deliver value to key stakeholders is possible only when psychological contracts are developed among employees apart from formal employment contracts. It creates emotions and attitudes that form and control behavours at work.This cover feature of “creating value through HR” uncovers various dimensions, trends, challenges and path, which ultimately will help HR function to set their own direction.
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 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 While every effort is made to have no mistake in the magazine, errors do occur. Publishers do not own any responsibility for the losses or damages caused to any one due to such ommissions or errors.
Annual Subscription 900/- through DD (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
Indranil Banerjee, Hon’y Regional Co-ordinator, BM spoke with HR veterans Dr. Harish Kumar, Ester Martinez, Kevin Tan, Dr. Tanvi Gautam, Nadeem Kazim, R.P. Yadav, Dr. Chinmoy Sarkar, Mehul Kuwadia, Imon Ghosh, Chinmoy Kumar Podder, Vinayshil Gautam, Ranjan Sarkar, & Soumitra Chatterjee and many more to explore trends and dimensions that will help creating business value.
Interplay between organisational values & employee retention Experts’ View Aligning ethics and values to make a great workplace 4C's of Talent Assessment Responsive talent management : Knocking the door Transforming HR to create business value HR need to articulate Co’s value proposition Excellence Through Reinvention HR beyond the Corporate… Leveraging Employee Value Proposition Transform self to add value pg.
E-mail : bmalwar@yahoo.com, bmalwar@gmail.com Published on 1st of Every Month
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Inside
The Supari Trainer
pg.
pg.
We have contract killers in the underworld. They eliminate one person at a time. We have contract trainers who adversely effect, may even destroy a class load of participants.The market today has a large number of people whose main job is to sell training programs to Organizations. An article by DNB Singh
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HR : Move to Corner Cabin
pg.
HR as a function is facing a continuously ever changing business environment and the managements' expectations are not getting limited to merely HR playing support or advisory roles only. An increased tendency is being noticed to nominate HR personnel to don the line roles and more so that of the coveted CEO too. An article by Dr. V.R.K. Prasad
07
Helpline
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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.
Handling bullying at workplace
pg.
Workplace bullying means any behaviour that is repeated, systematic and directed towards an employee or group of employees that a reasonable person, having regard to the circumstances, would expect to victimise, humiliate, undermine or threaten and which creates a risk to health and safety.' An article by Y. Nagendra Kumar
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"Malafides", "victimization" and resultant "retrenchment" could be the essential ingredients when allegation of unfair labour practice is made. If an employer intentionally adopts a route of promoting employees in a way intended to cause discard among his workmen or to undermine the strength of their union he could be guilty of committing unfair labour practice but these propositions need a positive evidence. An article by Shantimal Jain
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Latest from the Courts Latest verdicts from different High Courts and Supreme Court effecting employer employee relations.
Govt. Notifications
EVENT REPORT ISTD National Convention
Book review
HR News
pg.
56
pg.
58
Report of the National Seminar on
SME Entrepreneurship
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Judgments
Unfair Labour Practices
pg.
pg.
Regency Ceramics President Lynched by Workers
pg.
pg. pg.
53 60 62
DNB Singh CPT Former GM (HRD) Indian Oil, Consultant/Trainer
We have contract killers in the underworld. They eliminate one person at a time. We have contract trainers who adversely effect, may even destroy a class load of participants.The market today has a large number of people whose main job is to sell training programs to Organizations.
Supari Trainer
The
I
n the world of consultancy today, training is gaining more and more importance due to the corporate need of higher productivity from, and the higher utilization of, the human capital.
Before we get into the theme, let me share with you two of my experiences. Way back during my formative years, I read of an incidence where a member of the underworld gave SUPARI (payment for killing) to a sharp shooter hit man. He pointed out the person to be eliminated. However the sharp shooter mistook the person being pointed to and killed the wrong person. He was paid for killing and to him it did not matter whether he killed the right person or the wrong person. The next incident happened in the suburbs of Mumbai, where a training facility is available with training halls on either side of the lobby. This particular trainer entered one of the training halls, gave his biodata to one of the participants for the purpose of introducing him and delivered his talk on motivation for the full day. He was an interesting speaker and had the audience spellbound. In the evening there was a lot of commotion at the training convention centre. It was revealed that the trainer had entered the wrong hall and had delivered his talk to a wrong class. Since he was a captivating speaker people heard him with rapt attention
even though the subject was different; in fact the participants felt that there could have been a last minute change in the topic of training. The commotion was on the billing issue. The Organization who had invited him refused to pay him--- "You did not speak to my people". The Organization whose participants he had addressed refused to pay him - "We did not invite you nor did you speak on our designated subject". This is an actual happening and reflects the state of affairs in one of the important HR subsystems: Training. We have contract killers in the underworld. They eliminate one person at a time. We have contract trainers who adversely effect, may even destroy a class load of participants. The market today has a large number of people whose main job is to sell training programs to Organizations. They have almost no idea of the theme or of the inputs or of the participant's profile. They are interested only in getting "orders" from corporations after which they pick up a person from their trainer's panel (normally the one with the lowest professional charges so that the margin of the "order taker" is high.) and the training session is delivered. For these training marketers (or racketeers) there is no need to understand the organizational and individual profile or the training needs; nothing at all about the training objectives. With such practices it would be Business Manager
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The Supari Trainer
It is the responsibility of the HR people to ensure that every training intervention produces measurable returns on investment in terms of performance enhancement. Failing which it is an HR betrayal.
absurd to expect the training to be effective or useful and absolutely ridiculous to expect any change or transfer of learning. Recently I had the occasion of training a group on team building. Some of the participants had been exposed to a training program on a similar theme less than a month prior to my training. It saddened me that the contribution of these trained participants was practically nil in my program. Obviously the earlier trainer's job had ended with the program while in actual fact the trainer's job actually starts when the program ends. It is the responsibility of the trainer or the training "order taker" to ensure that post training follow-up is designed and put in place to ensure transfer of learning and return on investment. This must be done before payment is accepted. In the absence of a structured follow-up methodology the training will only be a numbers game. This is the reason why training is the first victim, the first item on the hit list in case of cost cutting or liquidity crunch. The Management would not like to invest in an area where there are little or no returns. It is the responsibility of the HR Head or the training head to ensure that the participants are not exposed to any training unless the trainer is familiar with the organizational ambience, understands the organizational and individual needs and is committed to providing return on training investment in the form of a change in the behavior and the performance of the participants. No training should be conducted unless measurable returns are assured. The HR Head or the Training Head should not look upon training as a place of posting or as a profession. They must have a palpable passion for training, a commitment to people and a healthy self image to deliver. The return on investment for training was initially designed by Donald Kirkpatrick. Jack Phillips added one more parameter. Recently in the HR literature one more important feature has been added: Transfer Climate Index. In other 6
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words, does the organizational ambience and climate encourage the participants to experiment in implementing the learning from the training program? If this is not available then no amount of training follow up methodology will work to the fullest extend. The International Society for Performance Improvement (ISPI) USA has a set of standards which make it mandatory for the consultant (internal or external) to have a partnership with a client so that there is a long term result orientation for every intervention - training or otherwise. In fact ISPI's first performance improvement standard reads as follows: Focus on results and help clients focus on results.
The first Ethics statement of ISPI is : Add Value Principle Strive to conduct yourself and manage your projects and their results, in ways that add value for your clients, their customers, and the global environment. The world is in a dynamic state in all respects the HR function today is beyond recognition when compared to 8 or 10 years ago. It is sad that some times it is seen that the training function the most vital one in the HR subsystems has not kept pace with this change and is still using OHP slides or LCD PowerPoint presentations to teach.We must remember that you can train animals. The trainer has to be a qualified facilitator who facilitates the learning of the participants. The facilitator must take special care to move away from the power mode: it is a documented fact that training is a very power and ego satisfying profession. It is the responsibility of the HR people to ensure that every training intervention produces measurable returns on investment in terms of performance enhancement. Failing which it is an HR betrayal. BM
Dr. V.R.K. Prasad Pro Vice Chancellor, The Icfai University, Nagaland
HR : Move to Corner Cabin HR as a function is facing a continuously ever changing business environment and the managements' expectations are not getting limited to merely HR playing support or advisory roles only. An increased tendency is being noticed to nominate HR personnel to don the line roles and more so that of the coveted CEO too.
"We have different ideas and different work, but when you come right down to it, there is just one thing to deal with, throughout the organisation that is the man" - Thomas Watson- Founder IBM
S
uccess of any organization largely depends upon its people so long as the right ones are hired, developed, motivated and retained. If this HR cycle is ensured, one would face less of problems in terms of legal, labour unrest and attrition etc. Now the question comes up, is it the job of the HR manager only to put these things in place? Or does it fall in the purview of every manager in general and on the shoulders of the CEO in particular? The needle certainly points towards the head of the organization, a fact which drives home the point that for every manager, human resource management skill is important, may be even vital. Hence all managers in a sense are HR managers as they go through the above mentioned HR cycle as an operational task on a daily basis. There is a never ending debate on 'line and staff' functions, the authority they exercise, the roles they play etc. Line managers are generally associated with authority and power to make decisions and they represent departments like sales and production while all other divisions including HR fall under the category of 'staff or
support' teams. Their job is mostly restricted to playing advisory role across the organization while within their own department they need to carry out line function as well. An HR manager also carries out a co-ordinative function also referred as 'functional authority' in terms of keeping the 'top brass' in picture about the proper implementation of HR policies and practices in the organization. To that extent there is a need for a perfect harmony and proper understanding between HR and all the other departments more particularly the line divisions. It's this particular function of both line and HR managers that is resulting in interchange of their roles often as being practiced by some companies. A survey by the Center for Effective Organizations at the University of Southern California revealed that close to one fourth of US companies appointed managers with no HR exposure as their top HR executives citing the reasons that they may give the company's HR a 'strategic boost' and may better integrate it with other business practices of the company. Mohandas Pai of Infosys was the CFO before moving to head HR function of the company. While this is true, some companies find it absolutely essential to make their top executives go through the HR mill before allotting the corner cabin, like Lawrence Jackson of Wal-Mart had to function as Head HR for over a year to occupy its global procurement division head's chair. Conversely back home in Dr. Reddy's Lab we had the HR head moving into CFO's chair once. The point to bring home is that HR as a function is facing a continuously ever changing Business Manager
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HR : Move to Corner Cabin
CEO's job is no longer the sole prerogative of people with line function background. Established norms and conventions are changing to pave way for the support functions like HR as they prove their worth and claim the coveted chair.
business environment and the managements' expectations are not getting limited to merely HR playing support or advisory roles only. An increased tendency is being noticed to nominate HR personnel to don the line roles and more so that of the coveted CEO too. Studies by Stanford Research Institute and Carnegie Mellon Foundation among Fortune 500 CEOs reported to have found that 75% long term job success depended upon people skills and only 25% on technical skills. Fortunately HR professionals are better disposed on this aspect and no doubt they are inching their way towards CEO's table. A practice which started with PSUs like SAIL, NTPC and Power Grid etc slowly crept into the corporate corridors of LG, Aditya Birla, Yahoo India etc. Days are not far off when we would see more and more HR professionals claiming seats at the strategy tables and occupying the corner offices and all that they need to do is to develop their over all business sense. This augurs well for the profession. The importance of HR needs no further emphasis as amply proved by the experience of Taj Mahal Hotel in Mumbai during 26/11 attack in 2008. Research by Prof Rohit Deshpande of HBS into the HR practices of the organization highlighted the uncommon valor of the young workers who helped the guests escape, by forming a human shield around them, and those who stayed on at their posts to continue helping the guests despite the option to flee and in the process eleven of who have laid down their lives in saving others. A typical case of 'giving their today for the tomorrow of their guests' or 'HR beyond HR'. The uniqueness of the HR practices followed consists of hiring people for their attitude and character and not for academic skills, training them for empowerment and taking decisions and reward people for their performance on real time basis. The researchers reportedly found similar display of gallantry at Taj properties in Maldives at the time of tsunami in Dec 2004. Performance 'beyond 8
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the call of duty' appears to have become a second nature with the staff in Taj hotels, where ordinary people do extra ordinary things and where leadership and rising to the occasion apparently is the way of life. In similar lines Virtusa a 2000 head count IT company based in US but mostly operating out of India has a unique concept called 'Every employee is a HR manager' which underscores the importance attached to HR function as such. That is to say, HR is no longer a support function and in the current corporate scenario, it has already assumed its strategic importance, adopting an operational or a line posture. To that extent HR has become a 'measurable' function like 'sales', and HR managers are getting business oriented while performing their normal HR functions. Yet another aspect is of 'HR outsourcing' whereby HR managers are freed from the routine and mundane functions of HR, and they are made available to attend to more important strategic functions in terms of organizational culture, customer orientation, competitors and technological advancements etc. No doubt the HR outsourcing value world over has climbed to reach a figure of $67 billion by 2011 while it was hovering around $ 42 billion three years ago. The fact that 'HR outsourcing' saves HR costs by 30-40% needs no debate. End of the day, in the present context, it is the HR head who would have made people happy resulting in high productivity, partnered in business success having played a key role in the strategy ultimately making a positive difference to the bottom line in the balance sheet. Does it take more to become a CEO? May not. BM Ref: 1. Do soft skills lead to Human Excellences: T Uma Devi, HRD Newsletter Apr 2011 2. The Deccan Chronicle, Hyderabad, 11 Nov 2010. 3. Human Resource Management 11th edition, Garry Dessler, Biju Varkkey (Pearson) (PP, 03-08). 4. The Economic Times, Hyd, Nov 24, 2011. 5. The Times of India, Hyd, Jan 11,2012
Creating Dr. Harish Kumar
Ester Martinez
Value
Through Nadeem Kazim
Kevin Tan
HR
Vinayshil Gautam
Soumitra Chatterjee
R.P.Yadav
Dr. Chinmoy Sarkar
C. K. Podder
Mehul Kuwadia
Ranjan Sarkar
Dr.Tanvi Gautam
Imon Ghosh
reating value in organisation is not just all about creating a “feel good” factor all around, but infusing intangibles at all levels like passion, commiment and willing to do all that enhance business value. Helping deliver value to key stakeholders is possible only when psychological contracts are developed among employees apart from formal employment contracts. It creates emotions and attitudes that form and control behavours at work.This cover feature of “creating value through HR” uncovers various dimensions, trends, challenges and path, which ultimately will help HR function to set their own direction. Indranil Banerjee, Hon’y Regional Co-ordinator, BM spoke with HR veterans Dr. Harish Kumar, Ester Martinez, Kevin Tan, Dr. Tanvi Gautam, Nadeem Kazim, R.P. Yadav, Dr. Chinmoy Sarkar, Mehul Kuwadia, Imon Ghosh, Chinmoy Kumar Podder, Vinayshil Gautam, Ranjan Sarkar, & Soumitra Chatterjee and many more to explore trends and dimensions that will help creating business value.
C
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Interplay between organisational values & employee retention Dr. Harish Kumar UGC Visiting Professor & IIM-A Alumnus
"Sometimes it is better to lose and do the right thing than to win and do the wrong thing." - Tony Blair, Former Prime Minister of the United Kingdom
Prologue We often hear the words, "Our employees are our factual assets". Giving due recognition to the people is an organizational value and values are mirrored through the actions people take in the organization. There is erosion of values in the society. An organization is a sub-system to the social system. The subsystem cannot remain untouched in case the system is affected. People carry values and biases with them to the organizations and behave accordingly. People laden with values make the organization and with biases mar it. A person with biases is an enemy within the organization and is always a threat to its image. Indifferent attitude towards the preservation of ethical values and moral standards can lead to the problems as poor work culture and climate, dirty organizational politics, tarnished organizational image, poor customer satisfaction, inefficient governance, poor employee retention and so on so forth. A conspicuous organizational personality attracts and retains people as they take pride in being associated with it.
Related Concepts Organizational values are the in-built checks to guide an organization's growth and development. Values rule the actions of the workplace. They are central to the existence of an organization and reflected in the vision and mission of the organization. Value based organizations only hire and retain those employees whose actions and attitude are congruent with the core organizational values. An ethically and morally sound organization holds a shining image in the eyes of the stakeholders and proves the cause of its existence. Organizations believing in values and ethics play long innings and keep their future secured. Organizational ethics examines the rules and principles of business in order to ensure that they are ethically and morally tested. An ethically concerned organization often asks itself whether its conduct is morally right or wrong. A sound ethical and moral behavior can only be ensured if all the persons having stake in the organization vouch for it. Work ethics can be termed as a set of values that relate to the behavior at work. Honesty, punctuality, regularity, integrity, accountability, hard work, commitment, devotion, loyalty, sense of belonging and so on are some of the examples of work related 10
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values. Values are the incarnation of organizational stands and the foundation for behaviors for the members of the organization. People look forward to go for the work with the people you like, admire and respect. By learning, the words and their connotation represented by the letters containing by the term organization one can know the nature of value based and value biased organizations. The ensuing text presents it more vividly:
Value Based Organization O
Open
R
Righteous
G
God-fearing
A
Altruistic
N
No hidden agenda
I
Integrity
S
Scrupulousness/Sincerity, Self-confessed
A
Achievement oriented
T
Transparent
I
Interactive
O
Obligated to Society
N
No compromise with ethical and moral values
Value Biased Organization O
Opaque/Oppressive
R
Resistant to Change
G
Goalless/Graceless
A
Abrupt Approach
N
Narrow thinking
I
Identity Crisis/Insincere/Incognito/
S
Self-conceited
A
Alleged
T
Tarnished Image
I
Inconsiderate/Incompetent/Insensitive to social obligations
O
Overweening
N
Nuisance
Professional Ethics and the Functional Areas Professional ethics covers the gamut of business activities carried out in various functional areas of an organization. The onus lies on the shoulders of the organization to make it ensured that the professional activities are carried out in an ethical manner. The forthcoming text touches upon some of the malpractices or unethical activities occurring in various functional areas of a business. In the area of financial and accounting, some of such activities can be camouflage accounting, misleading financial accounting analysis and other scandalous financial and accounting practices. In human resource area, such activities may include employee discrimination on the basis of gender, religion, region, race, age, disabilities and so on. Lack of functional autonomy and
freedom, lack of transparency at the work place, poor quality of work life, autocratic behavior of the supervisors, lack of open door policy, encroachment of human rights, lack of motivation on the part of whistleblowers, lack or inadequacy of safety and security measures at work and so on so forth. In the functional area of marketing unethical and unmoral activities can be as price fixing, price discriminating, fleecing the customers, hoarding, unfair competitive practices, unethical advertising, tempering with the quantity and quality etc., In the production area, the unethical practices may include manufacturing of defective products, harmful products, providing poor quality products and services, creating environmental pollution, encroachment of animal rights and so on.
Organizational Values and Employee Retention Interplay Researches have validated the fact that employees share organizational values. The phenomenon can be termed as value congruence. Work environment is a great source to fulfill social-psychological needs. Precisely mentioning, a study by Edwards and Cable (2009) exhibited that value congruence leads to job satisfaction, organizational identification and intention to continue with the organization.
Figure-1: Virtuous Cycle The value based organizations that believe in maintaining their ethical standards and moral values hold an enhanced image in the eyes of the public. They epitomize high employee and customer satisfaction, sound financial health, competitive edge, good reputation and strong employee retention.
Figure-2: Vicious Circle Business Manager
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Ways to shield the organizational value system Education and training programs for the promotion of the organizational values. Top management ought to advocate organizational values. People shielding the organizational value system must be recognized and rewarded. Whistleblowers should be promoted and protected. Should duly be communicated to the grass root level. Effective mechanism to ensure that the organizational values are unharmed. Contradictory behavior patterns must be met head-on. Values to be reexamined and enlivened.
Organizations that are value biased and possess a casual attitude towards ethical standards and moral values hold a tarnished organizational image. They feel difficulty in retaining their customers and suffer from unexpected employee turnover. Their image in the market is poor and their success is always doubtful.
Few Tips Education and training programs for the promotion of the organizational values must be regularly organized. Top management ought to advocate organizational values and standards. People shielding the organizational value system must be recognized and rewarded. Whistleblowers should be promoted and protected. Organizational value system should duly be communicated to the grass root level. An effective mechanism should be evolved in order to ensure that the organizational values are unharmed and are duly maintained. Contradictory behavior patterns must be met head-on. The values ought to be reexamined and enlivened so as to ensure that values no more representing the work culture are dropped.
Action Research Figure-3: Organizational Values and Employee Retention Interface Top management must guarantee that organizational values are duly advocated and promoted. It must also ensure that such values are reflected in the activities of the organization. This will help in creating a safe work place, which in turn will provide the employees with happy and successful professional career. Delighted employees will further be motivated to espouse organizational values and ethics and this will facilitate organization to propagate its values and ethics in an improved manner.
What can be done? In order to shield the organizational value system there is a need to take a few precautionary measures. Some of these measures are mentioned below: 12
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An organization can make a collaborative enquiry with the help of action research (AR) so as to address various performance related issues. AR is a process of collecting information, evaluating the collected information to define the problem, interpreting and explaining the problem, resolving it by finding appropriate solution and ensuring the effectiveness and appropriateness of the solution and upshots. AR aims at improving professional practices through ceaseless learning and progressive problem solving. The process can be abridged as Look, Think and Act (Stringer 1999). Look- Building the picture. An organization confronting with the problem of erosion of ethical values and moral standards can collect information about the erosion of such values and standards. It can further evaluate the collected information to ascertain and define the problem.
There is interplay between organizational values and employee retention.Top management concern and employee commitment can guarantee the maintenance of organizational values, which in turn results into strong employee retention. A few precautionary measures can keep your organizational value system intact.The article discusses significance of organizational values and ethics, the relationship between organizational values and employee retention and the ways to uphold ethical values and moral standards to ensure strong employee retention and organizational success.
Think- Interpreting and analyzing. The organization at the time of evaluating, analyzing and interpreting the situation can explore the exact reasons responsible, as how and why the ethical values and moral standards are wearing away and what can be done to tackle the situation. Act- Resolving issues and problems. The organization can plan the line of action and portray the things to be done at length. The organization can further put the decided action to practice and monitor it and evaluate as what has literally been accomplished. For example, if one of the reasons responsible for the erosion of the values and ethics is lack of training, the organization can make it a point to provide the employees with certain training programs focusing on significance of organizational values and ethics in ensuring the organizational success.
Suggestive Checklist for Organizational Values Compliance (I) Top Management and Organizational values 1. Does the ideology/strategy/vision of the company encompass ethical values and moral standards?
2. Does the company put explicit emphasis on moral and ethical values? 3. Does the top management possess a sense of pleasure and peace in maintaining organizational values? 4. Does the company report maintenance of organizational values and standards? 5. Does the company recognize and reward the employees exhibiting excellence in promoting organizational values and standards? 6. Are the whistle blowers shielding the core values of the company provided with a security cover by the top management? 7. Does the company promote the culture, which is conducive for the maintenance of ethical and moral values? 8. Dose the company have well meditated and clearly chalked out HR policy which promotes the creation of values and moral standards? 9. Does the company promote the participation of Business Manager
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stakeholders in the decision making related to upholding the ethical values and moral standards?
(II) Corporate Governance and Organizational Values 1. Does the company make efforts to ensure good governance? 2. Does the company maintain transparency in its operations? 3. Does the company comply with governmental rules and regulations? 4. Does the company follow legal norms? 5. Does the company meet the tax liabilities and other revenue obligations gracefully? 6. Does the company comply with the instructions and norms of SEBI and other regulatory bodies? 7. Does the company get its accounts audited through a competent and authorized authority? 8. Does the company keep all its stakeholders duly informed? 9. Does the company regard CSR as an ideology or philosophy? 10. Does the company put aside a specific percentage of its profits in name of community development/CSR? 11. Does the company encourage its employees to volunteer for being instrumental in carrying out community development activities?
(III) Employee Management and Organizational Values 1. Does the company HR policy warrant for a sound workplace in terms of the following: Health Hazards Child Labour Sexual Harassment Fair Labour Practices Ethical and Moral Values and Standards Employee Code of Conduct Environmental Checks and Balances TQM Gender Divide Employment to the physically challenged 2. Does the company communicate its employee related policies/privileges to the employees at a regular basis? 3. Does the company resort to feedback and follow up mechanism as employee satisfaction surveys to measure the employee happiness quotient? 4. Does the company put forth its efforts to make the workplace pollution free, environment friendly by tree plantation, soil and water conversation and so on? 5. Does the company conduct training programs on protecting and promoting organizational 14
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values and standards at regular basis? 6. Does the company possess a well-drafted HR Policy, which puts adequate emphasis on human development? 7. Does the top management get involved in putting HR Policy to practice? 8. Does the company have an effective Reward and Punishment System? 9. Does the company believe in Open Door Policy? 10. Does the company possess a sound Exit Policy? 11. Does the company extend post retirement support to the employees? 12. Does the company take deep interest in implementing employee welfare schemes and measuring their impact on the well-being of the employees? 13. Does the company take all kinds of pains in promoting industrial relations and establishing industrial peace? 14. Does the company report its labour welfare activities?
Epilogue Organizations that take the business ethics casually have trouble in doing business. A little lamp in a dark night spreads its light far off, likewise an organization sticking to moral values and ethical standards can establish its name and fame and prove the cause of its existence in this world full of foul plays. Good performers always look for joining those organizations that are concerned with ethics and values. Organizational core values can be one of the strongest motivators to employees to be glued to an organization. The gist of the whole text can be encapsulated in the following lines of Urdu poetry: "Ye aur baat hai ki andhere hamare bas main nahin, Magar charag jalana to ikhtiyar main hai." The poetry means that it can be difficult for us to persuade each and every one to be ethical and honest but we can ourselves be exemplary for others by being ethically and morally sound. BM References Blanchard, Ken and Michael O'Connor, Managing By Values, Berrett-Koehler Publishers, 1997. Brinkerhoff, Peter C., Social Entrepreneurship. John Wiley & Sons, Inc., 2002. Hall, Brian P., Values Shift: A guide to Personal and Organizational Transformation. Twin Lights Publishing, 1995. Robbins Stephen P., Organizational Behavior, Prentice Hall of India Pvt. Ltd., New Delhi, 1999. Seevers, B.S., Identifying and clarifying organizational values. Journal of Agricultural Education, 41 (3), 2000, pp.70-79. Sekran Uma, Organizational Behaviour, Tata McGraw Hill Publishers Company Ltd., New Delhi, 2004.
Experts’ View - Ester Martinez Founder and Managing Editor, People Matters
Aligning ethics and values to make a great workplace
Organizations optimize their productivity when employees view their work as much more than mere trading of knowledge or skills for money.To achieve this heightened commitment, organizations should integrate their values, translate them into an ethic and align it with their strategies.
n organization's people define its culture, drive its performance and embody its knowledge base. People are the ultimate drivers of success in any organization. Organizations optimize their productivity when employees view their work as much more than mere trading of knowledge or skills for money.To achieve this heightened commitment, organizations should integrate their values, translate them into an ethic and align it with their strategies. Thus the real paradigm of values as a foundation to culture leads to a great workplace, and inculcating those values depends on the way employees are treated and nurtured. Employees today look for a sense of purpose and pride in what they do at work; and they seek fairness, trust and warmth when choosing an employer. As a matter of fact, employees look for
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4 Phases of making a great workplace 2
1 Articulate people philosophy
4 3
Focus on the Line Managers
Build on the differentiators
Articulating the employee value proposition (EVP)
ethical and value-driven organizations. Given this backdrop, HR will need to move to the results plane and institutionalize the process of value creation so as to create a sustainable culture that helps build a workplace that attracts,engages and retains talent. Based on interactions with CEOs from the top 50 best workplaces in India (People Matters partners every year with Great Place to Work速 Institute and The Economic Times to release an annual collector's book on the same) and research from Great Place to Work速 Institute, values and ethics are clearly the foundation of any great workplace. The GPTW Institute defines the four phases that organizations need to go through in their journey of becoming great workplaces. At this juncture, it becomes equally important to define what a 'great workplace' is. According to the GPTW速 Institute, "An organization where employees trust the people they work for, have pride in what they do, and enjoy the people they work with" is a great workplace. This simple and holistic definition covers the relationship of trust with the management and the leadership team, while also emphasizing upon the quality of work and sense of purpose, and more importantly, the importance of team and belongingness. Keeping this definition in mind, the four phases that the GPTW Institute速 define for organizations in their journey to become great workplaces are: articulate people philosophy, build on the differentiators,focus on the line manager and articulating the EVP. Firstly, great workplaces have a very clear articulation on how people are linked to business. They understand that attracting and retaining talent is key to achieve their business goals. These
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great workplaces have an inherent knowledge that it is great people that lead to great organizational performance. Secondly, fairness, consistency, transparency and employee care are few such intangible elements which are not only difficult to replicate, but also unique to the culture of the organization. These call for, fair pay and creating unique and special benefits that are valued by employees; management abiding by 'walk the talk'; open communication and no nepotism and a workplace environment that invites diversity to succeed besides caring for its employees.These differentiators help in creating a workplace where there is emotional engagement. Thirdly, the success pillar for great workplaces is its outright focus on line managers. At a time when there is lack of incentive for being a great people manager, organizations focus on line managers who have the ability to convert people into great services, great products, great innovations, to take care of the inherent challenges. And finally, great workplaces have the innate ability to articulate their employee value proposition. While there are organizations that can make the mistake of communicating too early that they are a great workplace; but for true great workplaces there is no or little conflict between what the employees experience and what is communicated externally. In fact, they believe in communicating the reality of their organizational journey. The processes and practices at great workplaces make it amply clear that organizations need to understand and embrace the power of intangibles and psychological ownership. An organization's strategic framework needs to be aligned with the HR framework and put itself on a larger context of culture and leadership. Going forward, organizations wanting to be great workplaces need to build uniformity and community; values and ethics are the strong foundation in this journey. BM
Experts’ View - Kevin Tan International Business Director, Predict Success Inspire Performance HARRISON ASSESSMENTS INT'L LTD
4C's of Talent Assessment
f Diamond is a girl's best friend, then the Right Talent must be an organisation's best asset. Everyone knows that assessing and determining the quality and value of a diamond is commonly known as the 4C's - Carat,Clarity,Colour and Cut.In this paper, I will endeavour to relate the similarities of the 4C's to talent assessment.
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Diamond
Talent
Carat
Capability
Clarity
Clarity (Personal, Career Aspirations, Commitment and Expectations)
Colour
Character
Cut
Cut (compatibility to the job, company culture, supervisor, team)
Let me explain how we can use these simple 4C's as a guide for Talent Assessment. CAPABILITY AND COMPETENCY Carat refers to the weight of the diamond which determines its commercial value. Capability refers to the capacity and ability of a person as a result of their attainment in education, past experiences and training. In addition there could be other aptitude factors such as learning agility, adaptability, developmental potential and critical reasoning skills. One eternal challenge in determining capability is the 'how to assess and measure these factors in a Business Manager
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4C's Capability Capability and ability of a person including learning agility, adaptability, developmental potential & critical reasoning skills.
Clarity Involves having an unequivocal understanding of what the job is what the job isn’t.
Character Personality & attitudinal preferences
Cut Compatibility of the person to the job, to the company culture, to the supervisor’s style and to the t eam.
relevant manner consistently and accurately each time with different people in the most cost and time effective manner'. Competency refers to the knowledge, skill and behaviour or attitude (KSA) required to perform a specific role or job. Competency based assessment aims to identify the KSA that differentiates high performers from average performers. For instance, management competency might include systems thinking, emotional intelligence, ability to influence and negotiation skills. Here is a table of examples of differentiating competencies for various functions. While it is the objective to assess, screen and recruit candidates with high level of proficiencies in the above competencies,sometimes there could be a case of 'too much of a trait could be counter-productive' to performance. Let me give you an example of the Management Competency. An excess in Authoritative (willingness to take personal responsibility to make decisions) without the right amount of balance in collaborating and enlisting others' cooperation may result in
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having a dictatorial or authoritarian style of leadership. Similarly in Customer Service, an excess of being overly Diplomatic without the right amount of balance in being frank or tactfully direct will result in being overly evasive with customers. Next, there are competencies where moderate proficiency is sufficient. Take Sales for example, where a moderate amount of Helpfulness or Warmth/Empathy maybe sufficient. Hence, it is essential when developing a Competency-based assessment (dictionary), it is crucial to consider the three (3) categories that are Essential Differentiating Competencies (the more the better), Desirable Competencies (moderate is sufficient) and finally the CounterProductive Competencies (excess imbalances affects performance). CLARITY Imagine if you had to visit your doctor for an annual medical check up and you were not asked to do a full blood test. How would you feel? Do you think the doctor will know what to look for without a blood test report? How confident will you feel if your doctor had made recommendations purely based on physical observation? Clarity involves having an unequivocal understanding of what the job is and what the job isn't.Most of the time, poor hires are a result of mismatched understanding and expectations by both prospective candidate and employer. It is like going for a blind date for the first time and tying the knot right away. The results could be either a marriage made in heaven or
destined for eternal agony. To achieve clarity of purpose,both parties are equally responsible.The employer needs to ensure that the job expectations,key deliverables, competencies required and context for hiring (business lifecycle, company culture, organisational landscape) are agreed upon by relevant internal stakeholders before the screening, shortlisting and interviewing process takes place. As for the prospective candidate, they must be clear on their personal and career aspirations as well as their commitment (personal, family and financial) and expectations. The best opportunity to achieve clarity is definitely during the interview. However, the challenge in an interview is there could be too much to cover and too little time. This is where a personality or work preference profile assessment report will be very helpful as it can provide valuable insights into the candidates strongest work preferences, personality styles and personal values. Allowing the interviewer to zoom into specific characteristics and traits of the person thus, saving time and minimising guesswork. Using proven assessment reports that are work based and designed for organisational applications (not clinical) can accurately and reliably uncover hidden potential, concerns and behavioural aspects which may not be immediately apparent in an interview. Such invaluable insights will allow the interviewer to do a much better job and highlighting the necessary concerns to achieve better clarity in the given circumstances. CHARACTER AND CHEMISTRY "People are not your most important asset the right people are" - Jim Collins. Like the various colour tones of a diamond that determines it quality and value, people comes in all sizes, unique personalities and interesting characteristics. Character refers to a prospective candidate's personality and attitudinal preferences. Attitudinal preferences can be rather broad. It is worthwhile to put some perspective to help us better identify this concept of attitudinal preferences. From an organisational psychology point of view, attitudinal preferences can cover decision making styles, leadership preferences, interpersonal skills, motivation, task
"People are not your most important asset- the right people are" - Jim Collins preferences, work interest and environmental preferences. Chemistry refers to how appealing and attractive each party finds the other. Like in any courtship, there has to be some power of attraction. Attracting a candidate and positioning the company and job as an appealing choice is not very much different. That is if you want to attract the best candidate for the job. Companies today are constantly in a war for talent. Every business leader knows that their growth potential and pathway to organisational greatness is only limited by its ability to attract the right people. Hence, it is imperative for hiring managers and recruiters to fully understand what truly appeals to the candidates.Only by appreciating the person's personal values and life themes, hiring managers will understand how to 'sell' the job to the candidate. Many a times, the hiring manager or recruiter only talks about what the job requirements are, what the expectations are but neglects to show a genuine interest about what the candidate finds appealing. In other words, finding ways to pluck the candidate's heart strings to create that desired emotional resonance. CUT- Are you cut up for the job? Diamonds are cut in many ways, namely round, princess, single cut, old European, radiant, pear just to name a few types. Different cuts for different occasions. Drawing a parallel comparison to the organisational context, Cut refers to the compatibility of the person to the job,to the company culture,to the supervisor's style and to the team. Finding the right person with the right cut for the job is not any different. Depending on the context, circumstances and business lifecycle at the time of the hiring, the 'Cut' requirement will differ. To put it simply, the right person for the right job for the right reasons at the right time. One of the best proven examples to illustrate the importance of putting the right person in the right job for the right reasons at the right time,misfits when an entrepreneur-led company hires a talent from a MNC and vice versa. The context and experiences where a person has been accustomed to the operational and functional structures of a MNC may not necessarily give him the adaptability required to work within an entrepreneur-led organisation. At times, it is not about the capability and competency, it could be purely a personality style mismatch and incompatibility between supervisor styles and team with the person's past working styles.This is essentially a 'cut' and compatibility issue. Another example is when an organisation does not recognise which phase of the business lifecycle it is in when it attracts and hires the best talent money can buy but the context and readiness of the organisation does not match the expectations of the talent, this could also lead to many issues that may eventually lead to a wrong match. Hence, relevance of the context and timing must not be taken too lightly. To conclude, the 4C's which I have covered above, namely Capability, Clarity, Character and Compatibility has been further expanded into several sub-sections to better illustrate each component. In my next section, I will be writing on using the 4C's for talent development. BM Business Manager
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Experts’ View - Dr. Tanvi Gautam Managing Partner of Global People Tree
Responsive talent management : Knocking the door
he war for talent is the old story.The new story is the epic battle that lies ahead. As firms brace themselves for the shortage of talent in the coming years, managing the uncertainty and unpredictability of the times we live in, is going to be a primary theme in all that we do. There is uncertainty from the sociopolitical-economic changes that are taking place around the world. There are also huge changes taking place in the way work is done, where and how it is done and who does it. For instance, distributed teams, flex work arrangements, changing profile of workers (multi-generational and diverse) together represent just some of the changes that are here to stay. The new workplace is markedly different from the traditional workplace and the mindset and tools for managing the new workplace must therefore also be different.
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RTMS allows firms to respond effectively and efficiently to the demands of the environment as they appear. Such a system in itself has to be diverse and differentiated to match the complex environment that surrounds it. A responsive talent management system has to be dynamic in its nature as well as form. It is a system that acknowledges and responds to the variety and ever changing demands placed on it by the worker, the work and the environment. 20
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Predicting the type of talent needed and engaging the right talent at the right place in the right manner is very challenging when the environment evolves at a rapid pace. Traditional models of talent management were based on the assumptions of a stable and predictable environment and hence are of limited use when firms encounter uncertainty and unpredictability.What is needed then is a responsive talent management systems (RTMS). A RTMS allows firms to respond effectively and efficiently to the demands of the environment as they appear. Such a system in itself has to be diverse and differentiated to match the complex environment that surrounds it. A responsive talent management system has to be dynamic in its nature as well as form. It is a system that acknowledges and responds to the variety and ever changing demands placed on it by the worker, the work and the environment. Therefore a RTMS by definition cannot be a singular, monolithic, standardized whole. It consists of a series of subsystems and tools that together embody the principles of flexibility and adaptability. Being overly deterministic in defining the exact shape and form of the system we would defeat the very purpose of its design. Creating the responsive talent management system Before creating a RTMS there is a need to move from a mindset of the 'rail road' model of managing talent to a 'sail boat' model of managing talent. A rail road begins and ends at particular points. If there is a crack in the line, the train stops. In contrast the sail boat moves in any direction it wants, adjusting speed and plans based on the winds and weather condition.In creating a RTMS we must steer away from the idea of managing talent with fixed unchanging goals and systems that don't account for the predictable and unpredictable changes in the environment. Without a change in mental models and a certain level of comfort with the fluidity of this approach a firm cannot fully derive value from the RTMS. One way to create a RTMS for your
Points to Ponder How to have the right talent available at the right time: The portfolio approach to managing talent is one way to manage the scenario. Just as the way one invests in stock market by creating a varied portfolio of investments to spread out risk, so must one manage talent in the firm. Invest variably across competencies; choose different means of acquiring talent rather than just inhouse development or lateral hires.
How to manage engagement and retention: It is incumbent on the firm to create career paths that enable exploration and acquisition of new skills. The lattice career model steps away from the ladder career model in that it allows individuals many paths to reach the top.
firm is to follow the modular approach. Under the modular approach you choose from a variety of sub-systems that already contain within them the principles of adaptability and flexibility and align them with the larger goals of the firm.The advantage of taking such a modular approach for creating the RTMS is that it enables a high degree of customization of the system for your own needs and also makes it relatively easy to adapt or change a subsystem that does not provide you with the desired results. The disadvantage of the modular approach is the deep expertise often required to harness the synergies between the chosen subsystems. Never the less the modular approach presents a far greater opportunity to manage talent effectively than the one size fits all model that most firms seem to adopt. We shall now examine two frameworks that represent flexible and adaptable styles of managing talent. Each of the approaches mentioned tackles a specific aspect of managing talent in an unpredictable and diverse environment.The first examines the availability of the right skills at the right time and the second looks at the issue of engagement and retention. The frameworks discussed are by no means the only ones available but they provide us with a good beginning to understand what RTMS look like. How to have the right talent available at the right time: Given the uncertainty in the environment it is difficult to forecast what talent you will need at a point in time in the future. How then then does one prepare for the future ? The portfolio approach to managing talent is one way to manage the scenario. Just as the way one invests in stock market by creating a varied portfolio of investments to spread out risk, so must one manage talent in the firm. Invest variably across competencies; choose different means of acquiring talent rather than just inhouse development or lateral hires. Alumni connections and transfer of skills between firms in the same industry are just some ways to create a robust portfolio of skills. Similarly, just as you buy some Business Manager
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Ideas in brief Need to move from a mindset of “Rail Road” model to “Sail Boat” model. Modular approach to create RTMS enables a high degree of customization of the system for your own needs. It all rests on an important competency of HR department, which is to have not just information but to have intelligence about their people.
stocks from the point of view of letting them mature over time, while others are going to be quick turn around stocks, you must also be prepared to have some talent for long term and realize that others will leave sooner. Create a talent portfolio that is balanced in both aspects. When it comes to talent the more important question is not 'if' the talent will leave but 'when' it will leave. Managing the 'timing' of an individual leaving can be one way to have the right skills available at the right time.Another key idea is to invest heavily in non-technical skills that enable employees to become fast learners and un-learners that will help negotiate the uncertainty of the environment. Non-technical skills such as cross cultural sensitivity or emotional quotient become key strengths for organizations when charting unknown territory. How to manage engagement and retention: The incoming generations of employees consists of individuals who are looking for new challenges and exciting opportunities to grow at work. For most of them the loyalties lie with the profession and not a firm. Therefore it is incumbent on 22
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the firm to create career paths that enable exploration and acquisition of new skills. The lattice career model steps away from the ladder career model in that it allows individuals many paths to reach the top. In the past there was only one way to get to the top and that was to move up the ladder or risk falling off. However in the lattice structure, people can move up, down and sideways into roles that expand their own portfolio of skills and abilities. Even within a particular role there is a high emphasis on creating flexible work options that enable individuals to create a greater fit between work and life. For many individuals in generation Y the ability to work with some flexibility, even if it is at the margins (for instance coming late or leaving early) counts towards enhanced sense of engagement with their work.Surveys have shown that employees are even willing to take a 10% paycut for higher job flexibility. Deloitte has taken the idea of flexible work arrangements a step further by creating Mass career customization (MCC) frameworks that enable all individuals to dial up or dial down in the pace, role, location and intensity of their employee's work load. The key reason behind such initiatives is that without such flexibility the employees would probably leave, creating a talent gap within the organization. The cost of replacing an employee can range anywhere between 25% to 500% of their salary. Not to mention that re-creating the network of relationships unique to an individual is almost near impossible. The MCC also allows for greater planning of the talent requirements of a firm by taking into account the number of people who have dialed up or dialed down on various dimensions. The approaches outlined above rest on an important competency of the HR department, which is to have not just information about their people but to have intelligence about their people. There is a need to take a more customized approach towards managing talent and this is possible only when HR has a strong reading of the existing skills, future potential, and needs of the employees in the firm. When it comes to managing talent in an uncertain world what we don't know can cost us more than what we do know. BM
Experts’ View - Nadeem Kazim Director, HR & Personnel Exide Industries Limited
Steps of HR Transformation 1. HR has to play a key role in diagnosing the business strategy. 2. Build and instill a culture of innovation across all levels and functions. 3. HR must be able to respond by anticipating and building the right competencies. 4. Challenge of managing diversity, managing and leveraging this diversity will prove to be a critical skill for HR. 5. HR needs to mentally step out of the parameters of HR, and really observe oneself as part of the business process, to prove its credibility. 6. Get their hands dirty by understanding as much of the nittygrittys' of operational issues as they can. 7. Bring a single HR perspective to the organisation, and to cast aside the confrontational mindset often inherent in the IR paradigm. 8. internalise the knowledge creation and dissemination mindset within themselves.
Transforming HR to create business value
Why make this Transformation? Knowing who the stakeholders of the company are is the first step in understanding how HR should transform.The purpose of transcending from transactional to transformational is to ensure these stakeholders receive value from the company through HR interventions.They are: Employees: Employee increasingly diverse backgrounds, including race, gender, cultural roots, cognitive style, age and orientation to work. HR must study and understand the organizations internal and external demographics, how to manage diversity, how one must source talent in future, exploring alternative sources of talent and successfully retaining this pool. Leaders and Leadership: Investment in talent now to meet future requirements of leadership is another important role of HR. Succession Planning and building capability ensures HR adds sustainable value to the organization. Line Managers: With line managers facing ever-increasing scrutiny and pressures, HR should be active contributors in business discussions.This requires thinking about the business through eyes of your line manager what is the manager accountable for? What's on the scorecard? What problems are the pain areas? Anticipating these problems and creating an action plan concerning the future strategy of the business helps HR to add value. Customers: Customers have become increasingly segmented and demanding. HR professionals who spend time learning about and working with customers have a clear line of sight between HR practices and customer share. While interacting, HR should focus on the value they can provide customers and on building relationships.Customers who know you are going to hire, train, pay and organize work to meet their needs will be more likely to form and enduring relationship with you. Investors: Investors have become increasingly attuned to and actively Business Manager
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HR is often short sighted in its lack of understanding business processes that prove detrimental in effective HR contribution. HR needs to take a comprehensive approach that aligns its actions with the entire organizational strategy. concerned about intangibles as well as financial results. They are increasingly looking beyond the balance sheet into the quality of leadership that gives them confidence in the future. HR professionals can more carefully craft HR practices that instill this necessary confidence in them. Regulators: Government agencies may define policies that favour or hinder a business. HR can be activists in anticipating and responding to legislation. Community: Reputation becomes important as the organisation's social standing becomes part of its success. Increasingly, companies are encouraged to invest in sustainability by giving back to the communities in which they operate, build employability of their workforce as they create jobs for the local population and work practices that treat employees well. HR can be leaders in shaping socially responsible practices that help the organization gain a strong reputation for attracting talent, customers and capital. Strategy-setting Roles are Key- To my mind, the HR function needs to prioritise its roles by the impact they create on business contribution and they opportunity they create. Compared to only strategy-support or workforce alignment roles, strategy setting function is the key to maximizing effectiveness through valueadding initiatives, such as building executive leadership and driving business strategy. Steps to HR Transformation : First and foremost, HR has to play a key role in diagnosing the business strategy. Once the big picture is envisioned, all HR activities and plans need to be aligned to overall organizational goals. In this exercise, it is important to differentiate between transactional work, and transformational interventions that will add value. Next, a dedicated project team consisting of representatives from Line, HR and Corporate needs to be created to spearhead the transformation in the right direction, towards building necessary transactional efficiencies. These efficiencies need to be further developed to ensure effective contribution, and regularly monitored. How can HR create business value today and in the future? The dizzying pace of change that continues to take the world by a storm as a result of globalization and competition will stipulate constant demand for 24
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innovation. This warrants more responsibility on the shoulders of the HR professionals in the organization to build and instill a culture of innovation across all levels and functions. Progressive HR leaders understand that they can begin to contribute by establishing business processes that attract, retain and develop talent. To combat the ever-changing business models and related skill gaps, HR must be able to respond by anticipating and building the right competencies. Global markets require global workforces, as well as leaders with global experience. Companies must be able to provide the "right resources" when and where they are needed - in an efficient, effective, and compliant manner, and adapt to new ways of working across national boundaries. A global workforce brings with it the challenge of managing diversity, managing and leveraging this diversity will prove to be a critical skill for HR. Workforce planning in view of changing demographics and talent shortage in a prime consideration, HR will need to leverage the advantage in the Indian sub-continent. Eventually, HR needs to mentally step out of the parameters of HR, and really observe oneself as part of the business process,to prove its credibility through operational excellence.Only then will the rest of the organisation believe in its worth. Enhancing HR Capability HR professionals must spend more time and effort understanding the business environment and the key strategic issues faced by the company, anticipating issues that will be of concern to the top management.In a highly competitive environment, few organisations want to make any compromise on performance, and HR professionals have no option but to get their hands dirty by understanding as much of the nitty-grittys' of operational issues as they can. Manufacturing organisations are relying more on state-of-the-art technology to ensure output and quality.The worker on the shopfloor is becoming more qualified, multiskilled and is operating more expensive equipment. In service organizations such as call centres, employees see themselves more as professionals than blue collar workers. This is therefore an imperative for HR to bring a single HR perspective to the organisation, and to cast aside the confrontational mindset often inherent in the IR paradigm. Organisations are increasingly dependent on leveraging knowledge from within the organisation to be competitive in the marketplace. Besides creating such knowledge systems within the organisation, HR professionals need to first internalise the knowledge creation and dissemination mindset within themselves. HR must be centrally involved in planning and implementing change processes. Their most critical contribution is ensuring change takes place quickly. HR must build their facilitation skills to move change forward. Last but not least, credible HR professionals have a track record for meeting their commitments, achieving results in a way that meets the highest standards of integrity. As a fraternity, we need to ensure this reputation is created and sustained at all costs. BM
Experts’ View - R.P. Yadav CMD, Genius Consultants Ltd
alent retention remains most challenging aspect for an organization in today's world. Obstacles faced by an organization that result in difficulties to retain potential talents can be attributed to 1. Shortage of skilled manpower in the market 2. Effective management & engagement of manpower 3. Highly competitive global market 4. Decreased loyalty quotient amongst the employees due to huge availability of job opportunities in the market In order to arrest the talent exodus innovative strategies are being developed and implemented by the companies to attract, shape & retain manpower. A company has to position itself as the "Employer of Choice" by means of improving its image in the industry through branding, maintaining tie ups with top business schools and institutions across the country from where they can grab fresh and young talents. Company needs to provide opportunities to the new hires by means of exposing them to challenging assignments and rendering them the necessary support and motivation at the back end. Lot of companies have the policies in place for attracting young talents namely: 1. Welcome them with a joining bonus 2. Committing the new hire at the time of issuing joining offer an early appraisal in case if the individual achieves the company's target benchmarks. 3. Introduce flexi-pay packages wherein the new joinees can be offered the choice to structure their pay packets. So while the cost to company (CTC) is fixed by the employer, the new joinees may be given a free hand to decide on which components they would like to have as part of the salary. 4. Some companies also have the policy to provide job opportunities to the spouse of the new joinees. However the profile of spouse should match the requisite skill sets as per the available vacancy.
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HR need to articulate Co’s value proposition
Points to Ponder
Understand-why do they stay in the organization? Understand- why did they accept the offer to join the company? Understand - why did they leave? Understand- why did say no?
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Few Strategies 1. Use Competency Models to Select Leaders 5. During the course of interview session the HR should elucidate on the career growth opportunities of the new hire within the organization. 6. HR should clearly articulate company's value proposition to the new hire. We may evaluate few salient reasons why the retention efforts fail in an organization 1. It is found that Top leadership's non-involvement in identifying and recognizing potential human resource can lead to loss of quality manpower 2. Employees are not educated and trained on company's mission & vision policies and also the core value propositions. 3. Good manpower quit due to poor job fitment, poor organizational culture fitment, non alignment of performance versus pay, communication gap within the team as well as cross functional members. 4. Poor career growth opportunities within the organization also are one of the major reasons for retention failure. The HR department must know the following information in order to evaluate what an employee perceives about his own organization based on which necessary steps can be initiated by the management accordingly to improve on the retention strategies Understand from the current employees through "HR Interaction Session" - why do they stay in the organization? Understand from new employees through "Induction & Orientation Programme" - why did they accept the offer to join the company? Understand from ex-employees through "Exit Interview Session" - why did they leave? Understand from the prospective candidates who have rejected the offer - why did say no? We may lay down five quintessential processes to shape and retain talent pool in an organization -
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2. Offer Attractive & Competitive Compensation. 3. Introduce Career Ladders for potential employees. 4. Performance & Professional Development Plans with HR. 5. Introduce Know Your People Scheme with HR.
Companies should exercise following strategies for Shaping and Retaining its Talent pool: 1. Recruit right person for the right job 2. Use Competency Models to Select Leaders 3. Offer Attractive & Competitive Compensation. 4. Introduce Retention & Deferred Bonus 5. Introduce effective Employee Reward, Recognition and Engagement schemes. 6. Carry on with Employee Training & Development continually. 7. Practice 360 degree Performance Management System and carry out Timely and Accurate Performance Review. 8. Introduce Career Ladders for potential employees. 9. Performance & Professional Development Plans with HR. 10. Implement Mission & Vision Statement - both Short & Long term. 11. Introduce Know Your People Scheme with HR. 12. Maintain congenial Workplace Ambiance. 13.Ensure to maintain Transparency in Communication. BM
Experts’ View - Dr. Chinmoy Sarkar Author, AXELL
10 Perspectives of Reinvention 1 Competition to Creation
2
Excellence Through Reinvention
Past to NOW
3
Others to Self
4
Tangible to Intangible
5
Bondage to Freedom
6
Doing to Thinking
7
Role to Actor
8
Experience to Experiencer
9
Altering Vs Transforming
10
Confusion to Enlightenment
footballer writes in his diary after his victory in a game: Now I know directly from those 10 seconds exposure in front of the goalpost that there can be drastically different way of experiencing who-I-am? That has the potential to remove the bondage and I can feel the transformation inside me. I may label it as reinvention but that has not been very important to me at that moment. When my conditioning of my wrong image of self is dying,I have felt the aliveness in my body parts that allows me to come in close contact with my freedom in a different plane all together. WHAT IS REINVENTION? Perspective 1 - Competition to Creation: Modern world does not encourage competition which usually means 'getting closer to'. Why should I compete when I can create? In competition, interactions between individuals happen in an environment of limitations. In reinvention, one goes beyond and realizes his own potential to make a difference. Perspective 2 - Past to NOW: It is not a place to compare with whatever has gone wrong in the past as there are always scopes in the NOW for expansion and growth. Newness for innovative, collaborative & excellent solutions in life is available only in the NOW. NOW is the time one can use the power & potential he is already bestowed with.
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Perspective 3 - Others to Self: The basic distaste of life starts with a journey that has the element of threat. Recognizing 'I am suffering' is the point of reinvention.The emotion of 'I can transform and reinvent myself' changes everything. It is always easier to fall in love with others but it requires tremendous agility to be a source of joy to own self. Perspective 4 - Tangible to Intangible: Journey in the struggle misleads people towards grief and frustration. Expedition with the intangible sense of possibilities is newness and its dimensions are amazingly harmonious for the survival of human. Reinvention of self promotes unity between the elements that always agree to a structure and format of living. Perspective 5 - Bondage to Freedom: 'I cannot do anything about it' is an emotion that can never bring the feeling of freedom. To experience freedom, security of bondage has to be observed. In the state of observation,the answer naturally arrives without effort.One cannot seek answer but wait for the answer to appear while he watches himself closely. Perspective 6 - Doing to Thinking: If we know how to nurture creative spirit, we can see lot of values in our life. Adversely, people like to think what they are trained to think, or what they have been thinking long enough. It gives them poise to close the gap between what they do and what they are born to do. It slowly throws them on the path of reinvention. Perspective 7 - Role to Actor: Reinvention is expansion and revelation of 'I'. It aligns Role to the Actor. After a thorough search in the security of living,love in relationships and self worth,one travels upward to reinvent. Reinvention helps in exploring the meaning of passion and dream. An individual learns to collaborate with others for shared fulfillment. Perspective 8 - Experience to Experiencer: Reinvention journey is set into motion when experiencer gives permission to experience. He gives approval to imagine big and offers consent to have faith in Self. Reinvention explores unknown.Experiencer asks with passion and nature provides all the expansive set of tools to move through the process. Perspective 9 - Altering Vs Transforming: Reinvention is about altering a thing but transforming it into a thing that it is not. It is about challenging deep-rooted belief, discussing non-discussable, creating a new context and condition to go beyond and achieve anything one aspires.The whole movement is a flow where effort is replaced by passion. Perspective 10 - Confusion to Enlightenment: Reinvention means discovering something that has already been there. The moment one asks for it, he wears a protecting shield. He may oppose saying 'why do you want me to bring things back into existence when everything is working perfectly in my life? I do not want to make over and create a new Me. PHASES OF REINVENTION Phase 1: Interrogation It starts with a search; it leads one to an instant questioning about existence.A feeling of surprise blended with approval initiates the journey into the world of unknown. A discovery on a special moment transforms everything; 'I have seen it before, why didn't I think?' is the query. The experience starts off a mental stimulation. Phase 2: Inspiration It sets off an improved mental life; it leads one to a journey for exploring extraordinary value. It arouses feeling of overflowing enjoyment marked by uncontrolled emotions. An idea which is restricted earlier for lack of internal approval travels faster to reach its destination without much physical effort. One enjoys the freedom to move beyond from where he is. 28
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Phase 3: Visualization It is about creating a mental picture of the desired result; it leads one to rehearse and run through the events before they happen in the material world.A change in mindset enhances life situations and attracts success and affluence. Imaginative ideas use the power of mind and mental vision is the foundation of human success story. Phase 4: Rearrangement It is about embracing change and organizing Self differently in the physical world. A new beginning can find new choices and rearrange in a new living format. One can build a structure to let go off the past and add new dimension to life through knowledge, insight, and experience. Richness of wisdom overflows the state of intelligence. TOOLS USED IN THE PROCESS The word 'difficult' has been steering an individual away from the main course of sailing. Now he has come to a state of understanding. Once he allows, things happen quickly. Knowledge as real gift offers a clear picture about what does he have as potential to bring necessary transformation in his space? He believes in: 1. I have the power to think whatever I desire; I can always practice innovate thoughts 2. I can connect with anyone I aspire to collaborate; I develop a network of people 3. I have the option to choose from two opposites; I pick one up based on feeling 4. I can go beyond the boundary of time & space; I can create a virtual Me 5. I can think money as a medium to transact energy; I bypass currency route 6. I can feel abundant anytime as I came complete at birth; I have complete faith in it 7. I can grow awareness to see my fear; I observe it when it threats 8. I can be guided by my emotion and decide what I want; I watch myself every moment 9. I have the power to decide my own experience; I create right environment 10. I can develop relationships with people in my journey; I practice thought of love BM
Experts’ View - Mehul Kuwadia C.E.O., Grey Cells, Mumbai
HR beyond the Corporate‌
Using Competency assessment based interview and psychometric assessment techniques for identifying the right candidates in municipal elections of Mumbai was the core Idea.
always wonder why we don't use well-established HR methods & tools in our personal & social life.Like why don't we train our employees to use Appraisal & Mentoring/Developing Skills in appraising their children & developing them to be better citizens? Apart from using HR in personal and social scenario I had a few questions: Can HR play an important role in the political scenario? Can HR make 'Value Creation' initiative for the betterment of society? Can these unique initiatives be taken up by HR? For Mumbai Municipal Election in Feb. 12, to support non corrupt,non criminal good candidates,10 social activists had created a platform called 'Mumbai 227'.There are 227 municipal wards in Mumbai, hence the name Mumbai 227.They had been toying with this idea that by cleaning up the system the corruption can be reduced and people at large will get better facilities from municipality. The system can be cleaned only if the number of honest independent candidates in the municipal council increase and the number of politically affiliated & remotely controlled, by some high command, candidates reduce. Apart from 500 volunteers, 50+ NGOs the Mumbai 227 team had also garnered support from 35 prominent and honorable Mumbai citizens like: Julio Reberio, Bhagvanji Rayani, Sucheta Dalal, Anandini Thakoor, etc. whom they made their advisors & panel members. I explained them, how competency assessment based interviewing+psychometric assessment could help in identifying right candidates.
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Using HR methods & techniques to find good candidates for Mumbai Municipal Elections
Steps Develop Competency Model Create an On-line Application Form Conduct Back-ground & Reference Checks Conducting Psychometric Tests Test on Public Speaking Preliminary Interview Candidate Report Final Interview Training
I mapped the process & broke down the assignment into 9 steps: Step 01: Develop Competency Model Since HR was being used in Politics for the first time, I had to start from scratch. After a lot of brain-storming with 5 Heads of HR, I identified 47 competencies & classified them into 6 broad categories: 1. Skills - 16 competencies 2. Attitudes - 11 competencies 3. Knowledge - 4 competencies 4. Action - 5 competencies 5. Personality - 7 competencies 6. Social & Spiritual - 4 competencies This model was to be used during psychometric assessment & interview stage. Step 02: Create an On-line Application Form Since there could be a huge turn-out it was essential to rate & evaluate applicants in a standard manner. To achieve this I designed an on-line application form.The most unique feature of this on-line application form was that, a lot of data collected was rated on a 3 to 9 point scale e.g. if the candidate was below 35 years or above 60 years he would get 1 point & if in-between 35 & 60 years then 2 points, if s/he would be domicile then 1 point otherwise 0, if divorced then -1 & if married 1 point, etc. the application form was broadly divided into 8 sections: 1. Personal Details 2. Political affiliation of self & of immediate family members 3. Criminal Background 4. Social & Community activities 5. Education 6. Professional Back-ground & economic status 30
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7. Experience of previous election/s & outcome of it 8. Knowledge about Municipal Procedures Applicants who had political affiliations or whose immediate family members had political affiliation were to be rejected. Candidates who had criminal history were to be rejected & candidates having no experience of social or community work were to be kept on hold and considered only if there wasn't any suitable candidate in the ward. Step 03: Conduct Back-ground & Reference Checks It was estimated that there will be quite a few fake applications & applications of dummy candidates from political parties to check-out the process. Apart from these there could be applications from corrupt people or people having criminal background & also from candidates who would have not been given ticket by their respective political parties. It was extremely important to screen out such candidates before interviewing starts. This is where volunteers & NGOs did phenomenal field work.I designed a 2 hour training session for volunteers on how to do background check. A standard back-ground check form was also developed to record the on-field observations. Apart from physical check, on-line web search was also conducted. The on-field background check included: 1. House visit 2. Meeting neighbors 3. Checking the NGO, social forums, etc with whom the candidate is associated 4. Meeting people whose names were given as references 5. Checking police records All the above information was rated & points allotted. Only those candidates whose back-grounds were clean were sent forward for interviewing. Step 04: Conducting Psychometric Tests It was essential to test applicants on various aspects, through paper pencil tests & through psychometric tests. To achieve this I designed a 2-fold process: 1. A 100 mark Written tests to assess knowledge on various aspects of functioning of municipality, on roles & responsibilities of councilor & on
areas of operation. Question paper was designed to assess applicant's basis functional knowledge. 2. Psychometric assessments were done using tools like: Blockage Survey, FIRO-B,MBTI,TKCMI,Ego States,etc.to measure some of the competencies identified in step 01. Findings were shared with the interviewers, for further probing where ever required. Step 05: Test on Public Speaking Applicants aspiring to be Public Leaders should have good communication skills including ability to address public gatherings. To assess this quality, candidates were asked to make a 2-minute impromptu speech.They were assessed on: 1. Verbal Communication & Language Skills 2. Ability to Present ideas 3. Ability to appeal for action 4. Ability to convince 5. Ability to Persuade Step 06: Preliminary Interview To interview candidates a team of 15 HR heads from various national & MNC organizations was formed. They interviewed independently.The HR Heads were briefed on the competency model & objectives of interviewing.A sort of profile of ideal candidate was prepared & shared with them. To facilitate the process a detailed Competency based Interview Assessment Sheet was prepared, having a few standard questions. This was done with a view to standardize the interviewing & reduce individual/personal biases. Just before the interview the facts & documents were also verified. Step 07: Candidate Report A detailed report of each candidate was prepared which included: 1. Marks gained for on-line application 2. Marks of written test on knowledge of municipal council 3. Ratings of psychometric assessments & interpretation of the scores 4. Marks obtained in interview + interview assessment sheet 5. Over-all recommendation Candidates with very poor ratings & candidates rejected by the interviewers were eliminated.
In an era of abundant disillusionment and overwhelming opportunities, values serve the purpose of not only being the compass but also the rudder of the ship. As the time changes, the issues of leading high performing organisations to achieving business excellence are going to be increasingly critical for the sustenance and success of any organisation, almost anywhere.�
-Vinayshil Gautam A Al_Chair Emeritus Chair Professor, IITD & Chairman, DK International Foundation
Step 08: Final Interview The 35 prominent & honorable citizens from the Mumbai 227 Advisory Committee & Panelists interviewed the candidates for final selection. The final interviewers were provided with the Candidate's Report for reference.These interviews were conducted by a team of 23 persons.Their decision was considered as final & binding to all. On selection the candidates were made to sign declaration that they will remain accountable to Mumbai 227 team & also to the citizens of their constituencies during their tenure. They will remain un-corrupt & if they are found to be practicing corruption Mumbai 227 team will have power to ask them to resign from the elected position. Candidates were also made to sign a declaration that they will not join any political party on their being elected. Step 09: Training As per the guidelines laid down only those candidates were selected who did not have a political back-ground. All of them had a good track record of social work/social service, but none had any exposure to political scenario. It was essential to orient them to the field they were entering into. With these objectives I designed a 3 phase training program: Phase 1 - Functional Training: Understanding about how a Municipal Council works, the various departments, systems & procedures. Phase 2 - Soft Skills Training: Roles & Responsibilities of a Councilor. Shift of role: from Activist to Public Leader. How to connect to people, hold office, conduct affairs, etc? Various soft-skills required to be an effective Public Leader. Phase 3 - Elections: Election strategy. How to address public meetings? How to do door-to-door canvassing? How to coordinate with volunteers? Publicity material, etc. The best part of this whole effort is: Everyone (Mumbai 227, Advisors, panelists, NGOs,Volunteers, Grey Cells, HR Heads) worked on voluntary basis for the betterment of Mumbai City. In Conclusion: We are about 5 lakh HR Professionals in India. Can we not take up initiatives for socio-political betterment of society? Can we not merge HR & CSR for such initiatives? Can we initiate a forum to take HR beyond the corporate? As HR professionals are we responsible for 'quality of life' only in organization alone and not in society? BM
In today corporate world nothing more challenging could be there than retaining the good employees. This factor significantly create values to business. In India almost 82% of employees between 9-18 months start looking for another jobs due to dissatisfaction at jobs and only 18-24% employees are only retained. What is required for HR is to establish the process of analyzing the performance, talking about career growth and work culture.�
-Zeeshan Anwar & Sukriti Das Darwin school of Business, Guwahati, Assam
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Experts’ View - Imon Ghosh Director, Academy of HRD
Leveraging Employee Value Proposition Why leverage your Employee Value Proposition? Whether you are seeking to attract difficult to hire talent, or re-engage a disenchanted workforce, defining and leveraging your employee value proposition (EVP) can help you become an employer of choice. Studies have found that, as an employer of choice, you will enjoy better financial results, a bigger pool of job candidates, and higher levels of employee engagement as well as customer satisfaction. Why be an employer of choice? Being an employer of choice means you build a unique organization culture that attracts the right employees … who will go the extra mile to help your organization succeed … and who choose to stay with you even when your competitors try to recruit them. However, disconnects exist! Employer of Choice attributes rated more important by candidates than by employers: A fun, positive and vibrant work environment; Attractive salary and/or financial incentives; Performance rewards and recognition; Fair pay for a fair day's work; Good manager / boss they like.
5 Driver for EVP
1. Adequate Salary 2. Job Security 3. Opportunities for Promotion 4. Interesting Work 5. Responsibility and Independence 32
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Employees: The Ultimate Brand Builder
EOC attributes rated more important by employers than by candidates: Recognisable organisational brand; Challenging / engaging work; Definitive and strong organisational values. It's clear candidates and employers have very different perspectives on how an organization becomes an Employer of Choice. This disconnect probably exists because most organizations have not taken the time to define their Employee Value Proposition (EVP)… In order to create an EVP you need to understand what is important to your current and potential employees. Having this insight will help you address what you specificallyneed to do to attract, engage, retain and develop the people that you want, identify where improvements need to be made, and what will cause people to leave if they are not addressed. Employee Value Proposition research in an Indian Micro, Small and Medium Enterprise context: The top 5 drivers… Adequate Salary (by far the number one priority for most in India's MSME sector) Job Security Opportunities for Promotion Interesting Work Responsibility and Independence (Research by Sumeet Varghese,Associate Director at TV Rao Learning Systems, and visiting faculty at the Academy of HRD) During conferences, I conducted the following dip stick research.The percentage of my audiences who raised their hands to give an affirmative answer seldom exceeded 10%, and very often only 2 or 3 hands would be raised for most questions! A quick dip stick… Here are a few questions to help you enhance your organisation's Employee Value Proposition, and win the war for talent… (Adapted from the Chandler Macleod and AHRI Workplace Barometer Report) 1. Have you assessed if your organisation is in shape to compete in a tough market for the rare talent that you need to be competitive? 2. Have you developed an Employee Value Proposition that suits your organisation and its culture? 3. A quick dip stick - 3 Have you defined, and articulated, your Employee Value Proposition?
100% 80%
Figure 1: How Employees Can Promote Organization’s Reputation and, by Extension, the Employer Brand
74%
74%
60%
55%
54%
40%
31%
20%
2%
0% Embracing the company core values
Performing with excellence
Referring family and friends as candidates
Participating in community service events
Developing innovative products/ ideas
Other
Source: http://www.shrmindia.org/employer-brand-and-employee-trust-turbulent-economy
4. 5.
Have you done your research? A quick dip stick - 5 Have you maximized the marketing rupees that your organisation uses, and leveraged this into your employment brand? 6. Have you upgraded your website and ensured it truly reflects your Employee Value Proposition? 7. Have you started the alignment process to ensure that your business and HR strategies, policies and processes enable an alignment to occur? 8. Have you developed appropriate on-boarding processes? 9. Have you ensured that employee engagement can be sustained, and that the workplace is one that harnesses commitment and creates innovation and success? 10. Do you have the right leaders in place? 11. Do you measure and monitor performance? 12. Do you have appropriate career and performance discussions? 13. Do you provide career and development opportunities? 14. Do you measure and monitor investments and initiatives? 15. Do you deliver on your promises? Some innovative EVPs: Change 'traditional' working hours to be more flexible for employees - key for Gen Y. Options for employees to 'buy' additional annual leave. Developing nearby childcare centers. Superannuation / incentives to delay retirement. Keeping retired employees on retainer contract arrangements. Leveraging EVP at AHRD: AHRD supports the career growth of its Research Associates by enrolling them in its flagship doctoral level Fellow Program with a full scholarship. BM Business Manager
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Experts’ View hile it is the legitimte desire of all HR professionals to be strategic, it is ultimately decided by not HR but someone else whether the role is strategic or not. It is considered as strategic only when HR initiatives have a direct contribution towards meeting major long term objectives of the organisation.The essential feature of strategic HR can be briefly outlined as :HR increases employees productivity and profits. HR helps to build a performance culture. HR provides a competitive advantage HR has a global approach. HR has an external focus. HR is pro-active and future-focussed. HR processes as increasingly tech-savvy. While a large chunk of HR jobs will continue to be tactical and can’t have a strategic impact like pay roll management,benefit administration; HR can start thinking even tactical jobs strategically.This will definitely have a bearing in the mindset of HR professionals. Top 10 strtaegic HR challenges:managing talent creating and developing leadership managing worklife balance building a learning oganisation
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6 Implications 1 2 3 4 5 6 34
Human resource work doesn't begin with HR , it begins with the business. Ultimate receiver of the business resides in the market place. HR must create a line of sight to multiple and frequently conflicting demands of stake-holders. HR value is found in framing HR as a source of competitive advantage. Must align practices wih the requirements of internal and external stakeholders. Must acquire the professional knowledge to link HR activity to stake-holder value. Should view the company's key stake-holder from an unique and powerful perspective.
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- Chinmoy Kumar Podder Exucitive Director, NINL, Bhubsneswar
Transform self to add value
1. Employability must go hand in hand with entrepreneurship development
enhancing employees commitment effective performance and reward system transforming HR into a business partner managing change and cultural transformation managing CSR & sustainibility managing diversity HR can add value by successfully responding to these challenges.In order to create value HR must move from the role of a professional to a strategic partner.To play the role of a strategic partner HR must ask themselves:how do we engineer our HR functions? How does HR help to build up tangible and intangible value creations? what are evolving and emerging roles of HR profesionals? what knowledge skills and ability should HR professionals demonstrate that impact business performance? how do we develop more capable HR [rofessionals and department to do the above? For adding value there are 6 important implications for HR professionals. First,human resource work doesn't begin withHR , it begins with the business. Second,the ultimate receiver of the business resides in the market place that the company serves. HR must create a line of sight to multiple and frequently conflicting demands of stake-holders, ranging from internal to external clients. Third, HR value is found in framing HR as a source of competitive advantage. competitive advantage exists when a firm is able to do something unique that competitors can't easily copy. Fourth, HR professionals must align practices wih the requirements of internal and external stakeholders. When this is successful HR creates values as defined by those stake-holders. Fifth, HR professionals must acquire the professional knowledge and skills neceessary to link HR activity to stakeholder value. Sixth, HR should view the company's key stake-holder from an unique and powerful perspective. The changes that is taking place all around are phenomenal. The change that has happened in the last ten years is more
Unless entrepreneurship is encouraged, incubation centres for start-ups are nurtured, it will be difficult for the state to generate business excellence. Bengal also needs to ride on entrepreneurship to enhance its self-esteem, industrial and financial prosperity of its people and also generate more employment. 2. Development of attitude, leadership and communicative English Business excellence in general is difficult to achieve without these three attributes. This calls for serious curricular reforms in schools, colleges, engineering institutions and BSchools. More real life practical project work needs to be integrated in the curriculum, more adjunct faculty from business houses must come and share their experiences.
- Soumitra Chatterjee CEO, The Center for Personal Transformation
Human resource consulting has become more complex and specialized, widening the gap between HR and workforce capabilities. Being in this industry for a long I felt that changing the mindset of people toward professionalism and human resource welfare in this dynamic corporate world is the challenge ahead. Enhancing employability of young generation beyond conventional mainstream education is one core area through which HR can create business value.� InSkills is serving as a catalyst for vocational skills movement by building collaborative partnerships among education, business, community and government by: Creating a vast pool of skilled personnel with adequate competencies in line with the employment requirements across the entire economy. Creating better opportunities in employment. Ensuring the provision of high quality training and education, internationally recognized qualifications & 24/7 student support.
- Ranjan Sarkar Director-InSkills
than the changes taken place in the preceeding hundred years. It is lamented that HR has not kept pace with the changing times, in a way that has successfully met the demands of the organization. Lack of understanding of business processes, lack of quantitative measures that help HR establish its contributions to the organization are other weaknesses it is suffering from. HR needs to have a comprehensive approach that aligns its action with the entire organization strategy. We can't think of managing third generation technology and business with first generation HRpractices. Hence, the biggest challenge for HR is their own transformation. HR must drastically enhance their own capabilities before they think of transforming the organization. They must perform or perish. BM Business Manager
March 2012
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Y. Nagendra Kumar DGM (HR & Admn), Aker Solutions, Kakinada
Handling bullying at workplace
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orkplace bullying means any behaviour that is repeated, systematic and directed towards an employee or group of employees that a reasonable person, having regard to the circumstances, would expect to victimise, humiliate, undermine or threaten and which creates a risk to health and safety.' Repeated refers to the persistent or ongoing nature of the behaviour and can refer to a range of different types of behaviour over time. Systematic refers to having, showing or involving a method or plan. Whether behaviour is systematic or not will depend on an analysis of the circumstances of each individual case with this general guideline in mind. Risk to health and safety includes the risk to the emotional, mental or physical health of the person(s) in the workplace. Bullying is usually seen as acts or verbal comments that could 'mentally' hurt or isolate a person in the workplace. Sometimes, bullying can involve negative physical contact as well. Bullying usually involves repeated incidents or a pattern of behaviour that is intended to intimidate, offend, degrade or humiliate a particular person or group of people. It has also been described as the assertion of power through aggression. In general, there will be differences in opinion and sometimes conflicts at work. However, behaviour that is unreasonable and offends or harms any person should not be tolerated. It is sometimes hard to know if bullying is happening at the workplace. Many studies acknowledge that there is a "fine line" between strong management and bullying. Comments that are objective and are
intended to provide constructive feedback are not usually considered bullying, but rather are intended to assist the employee with their work.
Examples of bullying behaviour Bullying includes abuse, physical or verbal violence, humiliation and undermining someone's confidence. An employee or worker can be considered as bullied if he or she is Intimidated continuously picked on for reason undermining or deliberately impeding a his or her work physically abused or threatened Humiliated in front of colleagues Unfairly treated on regular basis Abused physically and verbally Pointe out for problems caused by others Always given too much work load which practically difficult to complete Threatened to sack constantly Denying growth opportunities , and decreasing the promotional chances. Purposefully not sending to training programs
Other Bullying behaviours are spreading malicious rumours, gossip, or innuendo that is not true excluding or isolating someone socially removing areas of responsibilities without cause Business Manager
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Handling bullying at workplace
Dos’ & Don’t
Do
ENCOURAGE everyone at the workplace to act towards others in a respectful and professional manner. HAVE a workplace policy in place that includes a reporting system. EDUCATE everyone that bullying is a serious matter. TRY TO WORK OUT solutions before the situation gets serious or "out of control".
constantly changing work guidelines establishing impossible deadlines that will set up the individual to fail withholding necessary information or purposefully giving the wrong information making jokes that are 'obviously offensive' by spoken word or e-mail intruding on a person's privacy by pestering, spying or stalking assigning unreasonable duties or workload which are unfavourable to one person (in a way that creates unnecessary pressure) underwork - creating a feeling of uselessness yelling or using profanity criticising a person persistently or constantly Degrading or Depreciating a person's opinions unwarranted (or undeserved) punishment blocking applications for training, leave or promotion tampering with a person's personal belongings or work equipment.
Impact of workplace bullying Workplace bullying may cause extensive health problems for employees exposed to this hazard, including physical and psychological illnesses and injuries. It can impact all groups of employees , clients, customers, business associates, family and friends. The reaction of individual employees will vary according to the nature of the bullying. It is possible that employees who are bullied may experience some of the following effects: Stress, anxiety or sleep disturbance; Panic attacks or impaired ability to make decisions; Incapacity to work, concentration problems, loss of self-confidence and self-esteem or reduced output and performance;
Pressure bullying or unwitting bullying is where the stress of the moment causes behaviour to deteriorate; the person becomes shorttempered, irritable and may shout or swear at others. Organisational bullying is a combination of pressure bullying and corporate bullying, and occurs when an organisation struggles to adapt to changing markets, reduced income, cuts in budgets, imposed expectations, and other external pressures. Corporate bullying is where the employer abuses employees with impunity knowing that the law is weak and jobs are scarce, Institutional bullying is similar to corporate bullying and arises when bullying becomes entrenched and accepted as part of the culture. People are moved, long-existing contracts are replaced with new short-term contracts on less favourable terms with the accompanying threat of "agree to this or else", workloads are increased, work schedules are changed, roles are changed, career progression paths are blocked or terminated, etc - and all of this is without consultation. Client bullying is where employees are bullied by those they serve, eg teachers are bullied (and often assaulted) by pupils and their parents, nurses are bullied by patients and their relatives, social workers are bullied by their clients, and shop/bank/building society staff are bullied by customers. Often the client is claiming their perceived right (eg to better service) in an abusive, derogatory and often physically violent manner. Client bullying can also be employees bullying their clients.
Physical injury;
Serial bullying is where the source of all dysfunction can be traced to one individual, who picks on one employee after another and destroys them. This is the most common type of bullying.
Reduced quality of home and family life; Suicide.
Secondary bullying is mostly unwitting bullying which people start exhibiting when
Depression or a sense of isolation;
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Types of Bullying
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Handling bullying at workplace
Dos’ & Don’t EDUCATE everyone about what is considered bullying, and whom they can go to for help. TREAT all complaints seriously, and deal with complaints promptly and confidentially. TRAIN supervisors and managers in how to deal with complaints. HAVE an impartial third party help.
there's a serial bully in the department. The pressure of trying to deal with a dysfunctional, divisive and aggressive serial bully causes everyone's behaviour to decline. Pair bullying is a serial bully with a colleague. Often one does the talking whilst the other watches and listens. Usually it's the quiet one you need to watch. Usually they are of opposite gender and frequently there's an affair going on. Gang bullying is a serial bully with colleagues. Gangs can occur anywhere, but flourish in corporate bullying climates. If the bully is an extrovert, they are likely to be leading from the front; they may also be a shouter and screamer, and thus easily identifiable (and recordable on tape and video-able). If the bully is an introvert, that person will be in the background initiating the mayhem but probably not taking an active part, and may thus be harder to identify. Vicarious bullying is where two parties are encouraged to engage in adversarial interaction or conflict. Similar to gang bullying, although the bully may or may not be directly connected with either of the two parties. One party becomes the bully's instrument of harassment and is deceived and manipulated into bullying the other party. Regulation bullying is where a serial bully forces their target to comply with rules, regulations, procedures or laws regardless of their appropriateness, applicability or necessity. Legal bullying - the bringing of a vexatious legal action to control and punish a person - is one of the nastiest forms of bullying. Residual bullying is the bullying of all kinds that continues after the serial bully has left. Like recruits like and like promotes like, therefore the serial bully bequeaths a dysfunctional environment to those who are left. This can last for years. Cyber bullying is the misuse of email systems or Internet forums etc for sending aggressive flame mails. Serial bullies have few communication skills (and often none), thus the impersonal nature of email makes it an ideal tool for causing conflict. Sometimes called cyberstalking.
Don’t DO NOT IGNORE any potential problems. DO NOT DELAY resolution. Act as soon as possible.
Factors contributing to workplace bullying There are a variety of reasons why a person may bully another person in the workplace. These reasons may include: POWER A person may use their position of power or their physical dominance over those who are perceived to be weaker. The bullying is often dependent upon the perceived power of the bully over their victim. PERCEIVED THREAT Some people bully others because the other person is perceived as a threat to them personally, or a threat to their position within the company. ORGANISATIONAL CULTURE The culture of a workplace is often shown by its values, beliefs and what is considered to be normal behaviour. When the culture is positive it encourages individuals to adopt appropriate behaviours that promote respect of others. Conversely, employees may find themselves in a negative culture where inappropriate behaviours and attitudes are encouraged or condoned by management and bullying is seen as normal behaviour for the majority of people in the workplace. DIFFERENCE An individual or group may become targets of workplace bullying because others perceive them as being new or different. SELF-ESTEEM Bullies may put down others to boost their own self-esteem and confidence to help deal with personal feelings of inadequacy BEHAVIOURAL : Some times by nature few employees behave differently continuously or repeatedly and habituated to peep through co employees, colleagues personal issues and start commenting repeatedly in their own style and this situations resul in BULLYING Business Manager
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Handling bullying at workplace
What can an employer do? The most important component of any workplace prevention program is management commitment. Management commitment is best communicated to all the levels and across the organization in a written policy. Since bullying is a form of violence in the workplace, employers may wish to write a comprehensive policy that covers a range of incidents (from bullying and harassment to physical violence). A workplace violence prevention program must be developed by management and employee representatives and the same to be adapted and accepted by all. apply to management, employee's, clients, independent contractors and anyone who has a relationship with the company. workplace bullying to be defined (or harassment or violence) in precise, concrete language. Like Standing Orders , If possible in the local language spoken by the employees. List out clear examples of unacceptable behaviour and working conditions. state in clear terms organization's view toward workplace bullying and its commitment to the prevention of workplace bullying. precisely state the consequences of making threats or committing acts. outline the process by which preventive measures will be developed and implemented. Educate and encourage employees to report all incidents of bullying or other forms of workplace violence. Make employees to know the confidential process by which employees can report incidents and to whom. Describe the procedures for investigating and resolving complaints. Support services to be provided for the bullied victims. make a commitment to fulfil the prevention training needs of different levels of personnel within the organization. make a commitment to monitor and regularly review the policy. state applicable regulatory requirements, where possible.
How to Handle or Control Bullying at Work Place USE A COUNSELLING SERVICE Some workplaces offer counselling services to employees. This may be provided free if the organisation provides an employee assistance program. Counselling may help to develop ways of dealing with a bully or the effects of bullying. Human Resources Custodians should have 40
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information on an employee assistance program if there is one. USE MORE FORMAL PROCEDURES A formal investigation may be required if the informal procedures are not successful or in situations where the allegations are more serious and there has been less favourable treatment or actual physical or psychological harm. This would usually be confirmed by preliminary enquiries undertaken by a Grievance Officer before a formal investigation is undertaken. Bullied employee may decide, or be required to lodge a written complaint to the employer. If a formal investigation does occur, an impartial person who is not involved in the particular situation should carry this out. The investigator should document Bullied employees report and keep a record of information gathered in the course of the investigation and finally complainant should be advised of the outcome. Further, in the event that an investigation goes ahead you should be advised of:
What are an employee's responsibilities? Employees must take all reasonably practicable steps to ensure that they do not increase or create a risk to their health and safety or to the health and safety of other people at work. Employees who engage in bullying behaviour at work are creating or increasing a risk to the health and safety of others. PROMOTING A POSITIVE WORKPLACE CULTURE Understanding and awareness of the issue and the far-reaching effects of bullying is an essential step to creating a positive work culture and minimising the risk to health and safety posed by bullying behaviour. The goal of our prevention initiatives should be to create a culture where bullying is not tolerated, and, if it does occur, is recognised and acted upon. Therefore, the first step to preventing bullying is to secure the commitment and involvement of the organisation. Health conditions in the workplace can lead to reduced performance on the job. Some cases of illness may be undiagnosed and, in other cases, people may try to hide or fail to acknowledge their conditions especially if they have mental health problems. This means that emerging mental health conditions may be demonstrated as reduced productivity at work and be seen as a performance issue by managers. Line managers need to be aware of this and feel equipped and confident about approaching sensitive or difficult areas of conversation to manage sickness, absence or performance issues. SENIOR MANAGEMENT COMMITMENT Promoting a positive work culture based on respect requires commitment from the top. Employers should make clear the expected
Handling bullying at workplace
standards of behaviour and demonstrate a strong and consistent commitment to them throughout the organisation. Integrating a values-based culture with broader people management strategies and aligning them with business planning and expected outcomes helps to reinforce that commitment.
training to assist them in carrying out these tasks. This also applies to those employees with a role in handling bullying reports. It may be needed to ensure that all staff in the organisation receive training in recognising what bullying is and is not. Information about workplace bullying should be provided to all
DEVELOPING A BULLYING POLICY AND RELATED PROCEDURES
Undertake ongoing risk management
Management / Employer must ensure that organisation has an up-to-date policy on bullying, which clearly addresses the issue and is developed and reviewed in consultation with employees. The contents of the policy must be made known to all staff, applied consistently and reviewed regularly. As part of the policy package, clear reporting, investigation and resolution procedures are essential to the good management of bullying incidents. Reports which are ignored or mishandled decrease the likelihood that reports will be made in the future. Ignoring or mishandling a report may also send a signal to the bully that their behaviour is condoned. Management team has higher responsibility to ensure that procedures are in place and available to all staff. Each organisation should have clear complaint handling procedures in place for reporting and handling bullying complaints or grievances. COMMUNICATION AND CONSULTATION It is important that management consult with employees and encourage staff participation at all levels to develop prevention initiatives. Consultation encourages an open, involved and committed approach to all Operational health and safety (OHS) issues. Consultation with employees will help you identify the extent of bullying in the workplace, including the local concerns of staff, and determine the most useful prevention measures. INFORM, INSTRUCT AND TRAIN Organisation need to use a mix of information, instruction and training to promote and develop a positive work culture and reduce the risk of bullying in workplace. As bullying has been linked to situations of role conflict and uncertainty it is important that employees understand their role and have the appropriate skills to do their job. Employees who supervise others should receive training in supervisory skills to ensure their ongoing understanding of their role and to maintain currency with best practice. Employees should receive training to develop these skills before commencing their role, particularly where their skills appear to be lacking. These skills should be reinforced through annual refresher training. Employees performing the role of harassment contact officers will need specific
To ensure employers meet their duty of care, they should apply a systematic risk management approach that is regular and ongoing. Existing risk management methodologies used in OHS can be adapted to fit the nature of psychological hazards. Risk management is important as it may identify particular problem areas in an organization, focus on potential effects of changes, ensure new issues are notices and can feed back into reviews of policy and procedures. Lastly we can discuss what are the DO's DO Not's for handling Bullying.
What are some general tips for the workplace? DO ENCOURAGE everyone at the workplace to act towards others in a respectful and professional manner. HAVE a workplace policy in place that includes a reporting system. EDUCATE everyone that bullying is a serious matter. TRY TO WORK OUT solutions before the situation gets serious or "out of control". EDUCATE everyone about what is considered bullying, and whom they can go to for help. TREAT all complaints seriously, and deal with complaints promptly and confidentially. TRAIN supervisors and managers in how to deal with complaints and potential situations. Encourage them to address situations promptly whether or not a formal complaint has been filed. HAVE an impartial third party help with the resolution, if necessary. DO NOT DO NOT IGNORE any potential problems. DO NOT DELAY resolution. Act as soon as possible. To Conclude it is important to discuss many measures to control BULLYING, But is very essential to have every one's commitment to control or eradicate Bullying at work place and this promotes a Healthy prosperous organsiation with good culture. BM Business Manager
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Labour Problems & Solutions
Anil Kaushik, Management Expert -HR & IR
Solutions provided here are in context to narrated facts & not in general.
Q. One of our employees got injured in an accident, while working on duty. Unfortunately he died in the hospital. His son filed a case for compensation. W.C. Commissioner awarded him 3 lakh compensation. After that, anyhow, we could make his son agree at 1.5 lakh amount of compensation and entered in to an agreement with him. We have also paid him amount. When we presented this agreement before commissioner for registration, he refused to register the agreement. I Seek your expert opinion, Whether what we did, is legally correct and can Commisssioner refuse to register the agreement? Ans. I am sorry to comment that you are not legally correct. W.C. Commissioner is perfectly right and legally empowered to refuse to register such settlement after passing his award, which is created to thrawt the legal right of the deceased. The agreement after adjudication of the award by the Commissioner at lesser amount than the awarded sum cannot be accepted and same does not fall within the ambit and scope of section 28 of the EC Act. This provison clearly envisages a settlement of compromise between the parties before any adjudication is made and after such settlement is arrived at before such adjudication, a memorandum can be sent to the Commissioner who upon being satisfied about its genuineness may record the same in the register in the prescribed manner. This is obiviously to cut short the adjudication proceedings and put an end to the dispute upon mutual settlement between the parties. The said provision cannot be invoked or used by the employer after adjudication has already been made by the Workmen’s compensation Commissioner. The compromise through agreement appears to be a camouflage and device to defeat the award in favour of deceased dependants and same cannot over-ride the award itself. You are under legal obligation to pay the amount of Compensation as awarded by the Commissioner and not less than that. The Rajasthan HC in the case of Jamat Singh vs. Commissioner, Workmen's compensation [2012(132)FLR 568] has also held in the same direction. Q. What is the concept of 'fair wage' payable to the employees ? Ans. The concept of fair wage comes somewhere in between and is a compromise between what should ideally be paid to the worker and what the industry can afford to pay him. The fair wage must have its lower limit set by the minimum wage, and upper limit by the capacity of the industry to pay. But between 42
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these two limits, the actual wages will depend on (a) productivity of labour, (b) the prevailing rates of wages, (c) the level of the national income and its distribution, and (d) the place of the industry in the economy of the country. Q. What type of protection are available to the 'protected workmen' under the Industrial Disputes Act? What is the procedure for claiming the status of “protected workman� by a workman? Ans. The Industrial Disputes Act provides certain protection to some officials of the trade union connected with the industry. The protection is granted against any action being taken by the employer against protected workmen which amounts to prejudicial alteration in the service conditions or any punishment. It is essential that the protected workmen be recognised as such by the employer before they can take advantage of specific provision which grants them protection.The numbers of workmen to be recognised as protected workmen is one per cent of the total number of workmen with a minimum of five and a maximum of 100. Every registered trade union connected with an industrial establishment is required to communicate to the employer, before the 30th April of every year, the names and addresses of such officers of the union as are employed in that establishment and who, in the opinion of the union, should be recognised as protected workmen. Any change should be communicated to employer by the union within 15 days of such change. The employer should recognise such workmen as protected and communicate in writing, within 15 days of receipt of names and addresses, a list of workmen recognised as protected workmen. Copies of the communication are also to be sent to the Labour Commissioner and to the Conciliation Officer concerned. Q. Will relationship of 'employer and employee' exist, between the piece-rated worker and the employer? Ans. Yes. It cannot be said that whenever payment is made by piece rate, there is no relationship between the master and the servant. If every piece-rated worker is an independent contractor, lakhs and lakhs of workers in various industries where payment is corated to production would be carved out of the expression, 'workman' as defined in the Industrial Disputes Act. Piece-rate payment is a well recognised mode of payment to the industrial workmen. In fact, wherever possible, that method of payment has to be encouraged so that there is utmost sincerity, efficiency and single minded devotion to increase
Labour Problems & Solutions production which would be beneficial both to the employer and workmen. Where the right of the employer to reject the end product if it does not confirm to his instructions coupled with the right to refuse to work in establishment, then certainly there is relationship of employer and employee. In a case the Supreme Court has held that the tailor to whom payment is made on piece rate basis are 'workmen' within the meaning of the Industrial Disputes Act, 1947. Q. Is it permissible under the law that an employee can work in more than one factory/ establishment ? Ans. Section 61 of the factories Act provides that no worker can work on the same day in two factories. If any worker work on in two places, he is guilty because it deprives the employer of the best service of the worker concerned. It is humanly impossible for a worker to give his best when he works continuously for 16 hours in a day. It is also anti-social in as much as it deprives another worker of particular employment and it exposes the employer to prosecution under section 61 of the Factories Act. It is, therefore, a very serious misconduct on the part of such a worker. Such restrictions are also imposed by Shops & Establishments Act of different states. Q. What are the criteria for determining loss of earning capacity of an employee who has met with an accident while on duty and has claimed compensation under the workmen's Compensation Act ? Ans. The loss of earning capacity has to be determined by taking into account the diminution or distruction of physical capacity as disclosed by the medical evidence and when it has to be seen to what extent such diminution or distruction should reasonably be taken to have disabled the affected workman of his class ordinarily. Physical capacity is an important factor in the assessment of loss of earning capacity. In the absence of medical evidence by the doctors examining the claimant on behalf of either side, it is difficult to measure the physical disability of the claimant and thus also the diminution or otherwise of the earning capacity. Q. At times, delinquent employees give a list of a large number of witnesses to be produced in an enquiry in order to delay it. Is an enquiry officer bound to examine all the witnesses as named by the delinquent employee? Ans. Not necessarily. In a case the Supreme Court has held that it is not necessary for an enquiry officer to call any evidence of the witness who the party concerned may desire to be called for evidence. It has also been held that the enquiry officer will be justified in declining to call any witness where evidence is bound to be repeated or is irrelevant. In this case, it was desired by the party to call as many as 49 witnesses but only a few were called to give evidence. Supreme Court in another case of Debotosh Pal Choudhary vs. Punjab National Bank 2002 LLR 1169 has also held that disallowing to adduce two witnesses will not be invalid if all the documents were provided to the employee.
Anil Kaushik, Management Expert -HR & IR Q. Will an employee who is daily wager be entitled for bonus ? Ans. A daily wager will be eligible for bonus provided he has worked for 30 days in an accounting year. There is no distinction between the monthly rated or a daily rated employee so far as payment of bonus under the Bonus Act is concerned. Q. Can an employee resort to hunger strike and claim constitutional protection? Ans.If "hunger-strike" is not simply refraining from taking food but is also accompanied by cessation of work by a body of persons employed in any industry, the same would obviously come within the definition of strike. (Katkona Colliery vs. Central Govt. I.T., 1978 LAB. I.C. 1531 (MP-HC) It is resorted to instill sympathy into the heart of the employer and to attract other workÂŹers and the public in general. Hunger-strike is not generally looked upon as such heinous offence as to justify dismissal from service. In fact, hunger strike is resorted to exert moral force. So, resorting to "hungerstrike" to redress any real or imaginary grievance cannot be described as an act of misconduct provided it is of a non-violent nature and is resorted to peacefully. The reason is that the industrial workers have a fundamental right to resort to "satyagrah" or "hunger-strike" as a means for enforcing their legitimate demands. It is open to the workmen to resort to "Satyagrah" or "hunger-strike" for inducing the employer to agree to those demands or at least open 'negotiations in that behalf. Such a "Satyagrah" or "hunger- strike" must, prima facie be considered to be justified provided again it remains peaceful and the provisions of the Industrial Disputes Act, 1947 are not contravened. (Commercial Colliery vs. Suraj Narain, 1959 LAC 720; Venkataswami Naidu vs. Jai Hind Motor Service, 1959 II LLJ 530; Ithad Motor Transport (P) Ltd. vs. Its Workmen, Delhi Government No. 30, Part V, dd. 26.7.1957 p.299 (LAT). Q. Is gratuity payable on all the allowances which are paid to an employee by an employer? Ans. Bonus, commission, house rent allowance, over-time wages and other allowances though are paid in cash have been deliberately excluded by the legislature to form part of emoluments. In a case where gratuity was claimed for free supply of food to his employees by the employer the employee claimed that an equivalent money for free supply of food should form part and be added to cash salary paid to him to form total wages for computing the amount of gratuity payable to him. His claim was rejected on the plea that merely an amenity could not form part of and be added to cash salary paid to him to form his total wages for computing the amount of gratuity payable to him. Bombay High Court in the case of State Bank of India, Goa vs. Laxmikant Vithal Palekar & Ors. 2011 LLR 133 : 2011 (128) FLR 317, has also held that personal allowance and special compensatory allowance would not form part of wages for the purpose of gratuity under the Payment of Gratuity Act. BM
Readers are invited to ask for Solutions of their Labour Problems through e-mail - bmalwar@yahoo.com Business Manager
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From The Court Room
Latest Judgments
Recent Important
Judgments Abandonment Abondonment of job by unauthorised absence is a misconduct which is actionable. In such case domestic enquiry is a must. cannot be said to be of absolute nature. Sukhdev Singh vs. Delhi Development Authority. 2012(132) FLR 234 ( Delhi. H.C.), 2012 LLR 178
Back Wages In the absence of any evidence about unemployment the workman is not etitiled to back wages. Back Wages on reinstatement for interregnum should not have been awarded by the Labour Court when the workman did not make any effort to find employment and the learned single Judge erred in allowing 50% back-wages for intervening period. Gujarat State Road Transport Corporation vs. Dawoodbhai I. Ghanchi C/o Ms. Mansuri, Advocate. 2012 LLR 200 (Guj. H.C.)
Building & Construction workers Act Cess charge under BOCW Act and rules is in the nature of fee and not tax hence legaly valid. When there does not exist a reasonable nexus between the payer of the case and the ultimate beneficiary of the services rendered, such levy is in effect a tax whereas the fee is a charge for special service rendered to individuals by the Governmental agency. Dewan Chand Builders & Contractors vs. Union of India & Ors. 2012 LLR 1 (S.C.) 44
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Compassionate Appointment Even if deceased worked for years, his dependent not entited to compssionate appointment, since he was not employed in regular vacancy. Cannot be called as Govt. servant under rules. Father of petitioner a daily wager on the post of Forest Guard died on 29.9.2007 getting minimum pay scale of the pay scale of regular employee. Not engaged against regular vacancy following proper procedure for recruitment. Never regularized. On date of death he was daily wager. Daily wager not employed in regular vacancy. Not a Government servant under Rule 2(a)(iii) of the rules. Dependants of a daily wager not entitled to compassionate appointment even if the deceased worked for more than three years before his death. Ajay Kumar vs. Sate of U.P. and Others. 2012 (132) FLR 122 (All. H.C.)
Contract Labour When the workers failed to prove that they were appointed by the management, contract between management and contractor will not be sham and camouflage. When the workmen failed to prove that they were initially directly appointed as temporary/casual workers by the Management, the contract between Management and contract or for providing services of labour/manpower is not sham and camouflage. Subhash & Others vs. Guru Teg Bahadur Hospital. 2012 LLR 16 (Delhi H.C.) Industrial dispute regarding contract labour regularisation will not be maintainable unless properly espoused by union.
From The Court Room
Latest Judgments
Contractor employing less than 20 workmen is not required to obtain licence under the contract Labour (Regulation & Abolition) Act, 1970. Employer-Employee relationship, being question of facts, has to be decided by the Industrial Adjudicator after recording of evidence of the parties and such a question is not maintainable under writ jurisdiction. Industrial dispute in respect of regularisation of the workmen without proper espousal by the majority of the workmen or their Union is not maintainable. Indian Oil Corporation Ltd. vs. The Presiding Officer, Central Government Industrial Tribunal-Cum-Labour Court, Asansol, West Bengal & Ors. 2012 LLR 148 (Cal. H.C.)
Continuous Service
reduction of punishment or that the past conduct of the workman is unblemished. Voltas Limited-Allwyn Unit, Hyderabad vs. Additional Industrial Tribunal-CumAdditional Labour Court, and Another. 2012 LLR 53 (AP H.C.) Court should not interfere with the punishment of dismissal in the case of misconduct of unauthorised/ habitual absence. Habitual absence of a workman amounts to grave misconduct and gross violation of discipline hence the Labour Court should not have exercised its powers under section 11A of the Industrial Disputes Act and hence the Award of the Labour Court setting aside dismissal and granting reinstatement with 40% back-wages is liable to be set aside for unauthorised absence of two years and five months. Divisional Controller, Karnataka State Road Transport\ Corporation, Chikmagalur vs. M. Devaraju. 2012 LLR 70 (Kar. H.C.) Interim order of industrial tribunal cannot be challenged.
For counting 240 days, “calender year� & block of Twelve months are interchangeable. For labour-related matters, the terms "calendar year" and "block of twelve months" are interchangeable hence while computing 240 days service in a calendar year by a bank employee, it should be in a particular branch. H.S. Rajashekara vs. State Bank of Mysore & Anr. 2012 LLR 113 (S.C)
Court Powers
Court under section 11A of ID Act can exercise discretion in interfering with punishment, but this discretion is not unlimited. Court can not exercise discretion by sympathy. Dismissal justified superior at workplace.
for
assaulting
An interim order, passed by the Industrial Tribunal, can not be challenged hence the High Court has rightly rejected the writ petition and the writ appeal since only final order can be challenged. Dena Bank vs. D.V. Kundadia. 2012 LLR 115 (S.C.) Labour Court cannot travel beyond the terms of reference. Court cannot grant regularisation to muster roll employee when it was not the dispute refered. Labour court was not justified in giving the relief of regularisation since it was niether the dispute reffered to it nor such a claim of the workman himself nor incidental to the real dispute. Labour court cannot travel beyond the term of reference. High Court modified the award of the labour court to be extend that he is entitiled only to the relief of reinstatement with 50% back wages as a muster roll employee and not regular employee. N.D.M.C. vs. Jai Ram. 2012 LLR 191 (Del. H.C.)
Daily Wager
Assaulting of superior at a workplace amounts to an act of gross indiscipline hence any lenient view would lead encouraging indiscipline in the industrial establishment and, as such, the Labour Court erred in interfering with the punishment of dismissal of the workman as imposed by the employer.
Even a daily wager would be entitled to reinstatement and 50% back wages if illegally terminated without compliance of Sec. 25 F of I.D. Act after completion of 240 days of service.
After introduction of section 11A to the Industrial Disputes Act, certain amount of discretion is vested with the Labour Court in interfering with the dismissal or discharge of a workman but such interference should be only when the punishment is disproportionate to the gravity of misconduct so as to disturb conscious of the court or existence of mitigating circumstances which requires
Termination of even a daily wager, who has completed 240 days' service, will be illegal for noncompliance of section 25-F of the Industrial Disputes Act providing for payment of retrenchment compensation and one month's notice or pay in lieu thereof at the time of termination, hence the workman will be entitled to reinstatement with 50% back wages. Business Manager
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From The Court Room Bhola Ram vs. Presiding Officer, Labour Court, Ambala and Others. 2012 LLR 136 (P & H H.C.)
Disciplinary Proceedings
An order of acquittal in criminal case of theft cannot conclude and effect the departmental proceedings. Reinstatement in the case where charge of theft proved in the inquiry, reinstatement cannot be granted. When the enquiry in respect of serious misconduct of committing theft by an employee is held to be conducted fair and proper, the workman is not entitled to get any relief from the Labour Court/ Industrial Tribunal. Nature and scope of departmental enquiry vis-a-vis criminal proceedings are different as the standard of proof required in criminal trial is beyond reasonable doubt whereas departmental enquiry depends upon the preponderance of probabilities and an order of acquittal cannot conclude and effect the departmental proceedings and the delinquent employee is not automatically entitled to get any relief on the basis of his/her acquittal from the punishment imposed upon him/ her through departmental enquiry. When loss of confidence of the Management upon the delinquent employee is affirmed, punishment must be considered to be immune from challenge as discharging the office of trust and confidence requires absolute integrity and delinquent employee cannot be granted reinstatement. The Divisional Controller, KSRTC vs. M.G. Vittal Rao. 2012 LLR 8 (S.C.) When charges are proved partially, that too minimal, dismissal will not be justified. When charges not proved against the delinquent in a departmental enquiry except a small part of one of the four changes, dismissal of a Bank Branch Manager is not justified. If punishment of dismissal proved to be shocking and disproportionate to the conscious of court, reinstatement of the delinquent employee with consequential benefits and costs of litigation may result. Vijay Kumar Sharma vs. Punjab & Sind Bank & Ors. 2012 LLR 86 (Delhi H.C.) Enquiry not to be vitiated in case of non supply of documents with the chargesheet. There is no violation of principles of natural justice on the ground of non-supply of documents with the charge-sheet which were supplied before commencement of enquiry and no prejudice is suffered by the delinquent employee when the charge have been admitted 46
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Latest Judgments by him. Disciplinary proceedings are not liable to be vitiated for non-supply of documents if no prejudice has been suffered by the delinquent employee. K.S. Kardam vs. Union of India & Ors. 2012 LLR 89 (Delhi H.C.) The findings of the basis of enquiry proceedings can only be interfered only in case of perverse findings or without sufficient evidence. The findings on the basis of enquiry proceedings are to be interfered by the Court only when the same are perverse of without sufficient evidence. The penalty imposed by the disciplinary authority, on the basis of findings of the enquiry officer, does not call for any interference by the court, unless the same is disproportionate to the misconduct. Ajit Kumar Chowdhury S/o Late Shri T.C. Chowdhury, Manager, UCO Bank, Gauhati vs. Union of India, represented by the Secretary, Govt. of India & ors. 2012 LLR 201 (GAU. H.C.)
Dismissal
Dismissal justified for misconduct of dishonesty in sanctioning loans which amonuts to lack of probibity. Dismissal of a Bank Officer, as awarded by the Management of Bank, should not have been interfered by the learned Single Judge and upheld by the Division Bench of the High Court in wrongly sanctioning the loan which amounted to lack of probity and the dismissal was not disproportionate to the misconduct. Panchmahal Vadodra Gramin Bank and Others vs. D.M. Parmar. 2012 LLR 172 (S.C) High court not permitted in law to reappreciate the evidence and findings of the disciplinary authority. Interference with dismissal order not warranted. In exercise of its powers of judicial review pertaining to Branch Manager of a Bank, the High Court should not have sat as an Appellate Authority over findings of the Disciplinary Authority as long as such finding were supported by interference with the punishment of dismissal, as imposed by the Management upon a Branch Manager of the Bank respondent, is liable to be set aside. State Bank of India vs. Ram Lal Bhaskar and Another. 2012 LLR 176 (S.C.) Dismissal rightly set aside when finding were found perverse because charge was partly proved and employee objections were not dealt properly by disciplinary authority. Learned Single Judge has rightly set aside dismissal of the bank employee by imposing cost and damages on the bank but instead of full back-wages, on reinstatement, the officer
From The Court Room
Latest Judgments
will be entitled to 60% back-wages whereas the benefit of promotion and seniority as well as increments in promotional post are liable to be set aside. Punjab & Sind Bank vs. Vijay Kumar Sharma. 2012 LLR 193 (Delhi H.C.)
Employees’ Compensation Act
When sustained injury is to the extent of 80%, granting compensation at 30% earning capacity loss would be invalid. Rs. 4,06,636 instead of Rs. 1,52,498 would be appropriate compensation since the Compensation Commissioner erroneously held that the claimant, while working as a mason, sustained 30% injury and not 80%. Suresh vs. Abdus Salim Sheikh and Others. 2012 LLR 74 (MP H.C.)
Enquiry Writ petition findings of the entertainable.
against preliminary lower court is not
When the interim application seeking injunction from proceeding with the enquiry was not dismissed, proceeding the respondent/workman ex-parte is not justified. If the interim application seeking injunction from proceeding with the enquiry is dismissed, the petitioner/Management may be justified in advancing the enquiry and concluding the proceedings. Writ petition against preliminary findings of the lower court is not entertainable. The General Manager, State Bank of India, Region-II, Maduram Complex, Dr. Ambedkar Road, Madurai vs. J. Alageswaran and Another. 2012 LLR 34 (Mad. H.C.) Ex-parte enquiry held valid, when E.O. based his findings on the evidence of witnesses, where employee fully participated. Enquiry officer did not base his findings on such evidence. He took into account the evidence of witnesses in the inquiry in which appellant fully participated. Finding recorded by the Inquiry Officer does not suffer from legal infirmity. S. Loganathan vs. Union of India and Others. 2012 (132) FLR 194 (S.C.)
Mere indicating the name of independent enquiry officer in the charge sheet without waiting for reply to record satisfaction for holding enquiry will not make proceedings invalid, particularly when the employee never objected to it since begining and participated in the enquiry too. Union of India vs. Sh. Om Prakash Yadav. 2012 (132) FLR 226 (Cal. H.C.) Enquiry will be invalid if not conducted according to laid down procedure of the establisment. Dismissal arising out of such enquiry liable to be set aside. Domestic enquiry is liable to be vitiated in case the same is conducted in a biased manner i.e. without giving proper opportunity to the delinquent employee to submit his defect and material evidence is not taken on record and into consideration by the Enquiry Officer or admission of the delinquent employee is not substantiated by sufficient supporting evidence or the same is conducted without following the laid down procedures of the establishment of the employer. In case the Management of the Bank/employer takes a plea in the written statement to the effects, as a precautionary measure, that if the Labour Court comes to the conclusion that the enquiry proceedings are not held properly, the management will have, upon request to the Labour Court, an opportunity to prove the charges by leading evidence before the Labour Court. Bank of India, Zonal Office, Ludhiana vs. Presiding Officer, Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh & Anr. 2012 LLR 138 (P&H H.C.)
E.S.I.
When applicability of E.S.I. is disputed by the employer, workers concerned or trade union should be impleaded as party in the case. When an employer is challenging applicability of the ESI Act upon its establishment, it is imperative that some of the workers concerned or that the Trade Union representing such workers be pleaded as a party since in the absence of such party(ies), it will be violative of principles of natural justice. Employees' State Insurance Corporation, Indore vs. M/s. Vijay Textiles, Ujjain. 2012 LLR 73 (MP H.C.) Conveyance allowance is not wages for E.S.I. contribution. Conveyance allowance being paid to the employees has been rightly held, by the learned Single Judge, not to be a part of wages to attract ESI contributions. Business Manager
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From The Court Room The Deputy Director (Inspn), Regional Office (Tamil Nadu), Employees' State Insurance Corporation, & Anr. vs. Cosmopolitan Club, Chennai. 2012 LLR 172 (Mad. H.C.)
Factories Act
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for want of no objection certificate and non vacating of quarter as it is a valuable right and property in the hands of the employee and any culpable delay on the payment of gratuity must attract penalty of interest at the current markets rate. Gratuity could not be with held subject to conditions laid down in the statute. W.C.L. vs. Gyanwati and Ors. 2012 LLR 187 (M.P. H.C.)
Prosecution complaint for violation of Factories Act provisons liable to be quashed when it was filled mechanically by simply filling up the blank space. Taking cognizance by the Judicial Magistrate about complaint filed by the Deputy Chief Inspector for violation of various provisions of Factories Act not proper Judicial Magistrate in Jamshedpur has not applied its mind while taking cognizance because only the blank form was field and the word 'cognizance' was written in the blank space. A.P. Arya and Another vs. State of Jharkhand and Another. 2012 LLR 154 (Jhar. H.C.) Prosecution of all the directors of a company for violation of provisions of Factories Act is liable to be quashed since only the 'occupier' of factory, is responsible. Suresh Kumar Jalan and Others vs. State of Bihar. 2012 LLR 186 (Pat. H.C.)
Fixed Term Employment Employee on contract basis cannot claim protection, even if services were terminated during extended contractual period according to terms of contract. Respondent given appointment as Senior General Manager on contract basis in category above E-9. Had to be given only on contractual basis in view of Regulations governing the service conditions of employees of the Corporation. Employment offered to him by the Corporation limited in tenure and terminable by three months' notice on either side. Termination of service of respondent by appellant not vitiated by infirmities. Gridco Limited and another vs. Sadananda Doloi and Others. 2012 (132) FLR 338 (S.C.)
Gratuity Gratuity cannot be withheld for not vacating the quarter alloted to employee. The payment of gratuity cannot be with held 48
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The Controlling Authority has rightly allowed the claim for gratuity which has been upheld by the Appellate Authority under the Payment of Gratuity Act since the employer failed to issue form ‘M’ as described under Rule 8(1) (ii) of the Rules denying its obligation. R.K.V. Govindaraj S/o Venkatasamy, Manager, R.K.V. Lorry Transport, Sattur Virudhunagar District vs. V. Chellaiah C/o CITU (Load Man Association) & Ors. 2012 LLR 203 (Mad.H.C.)
Industrial Disputes Act A claim of the workman under section 33-C(2) of the Industrial Disputes Act to higher scale would be tenable since it was based on the pre-existing right hence the High Court will not interfere with the order of the Labour Court. M/s. Etawah Dugdh Utpadak Sahkari Sangh Limited vs. Labour Court, Kanpur Nagar, Kanpur and Another. 2012 LLR 68 (All. H.C.)
Interim Relief Payment of last drawn wages as interim relief cannot be recovered from employee by employer in case of setting aside the award of workman in favour of employer. Payment of wages directed to be paid by the order of the court during pendency of proceedings in higher courts under section 17B of the Industrial Disputes Act would not be appropriate to be recovered from the workmen in case the Award passed by the court below in favour of the workmen is set aside by the higher court. Subhash & Others vs. Guru Teg Bahadur Hospital. 2012 LLR 16 (Delhi H.C.)
Misconduct When the charges of rash driving are not disputed by the employee, the same stands proved, hence discharging him from entire charges not justified.
From The Court Room When the charges of driving the bus on wrong side, occurrence of accident and death of cyclist are not disputed by the delinquent employee, the charge of rash driving stands proved, discharging the delinquent from the entire charges is not justified. It is settled law that in departmental inquiry the requirement of proof not to the extent of "proof beyond doubt" but it is in the realm of preponderance of probability, which is considered sufficient for imposition of appropriate penalty. Divisional Controller, Gujarat State Road Transport Corporation vs. Mohamad Adambhai Mushabhai Bhodiya. 2012 LLR 43 (Guj. H.C.) Peaceful demonstration with wearing black ribbons is no misconduct. Termination illeagal. Reinstatement justified. Pofessors in college of Government aided Military Institution. Did not attend the seminar functions and they wore black ribbons. They were charged for charges of insubordination and neglect of duty & ultimately terminated from service. Peaceful demonstration cannot be labelled as misconduct. Merely wearing black ribbons may amount to disagreement with policy which may not warrant such serious punishment. As the professors tendered an apology, they will be reinstated with continuity of services with 75% back wages as agreed. Central Hindu Military Education Society through its Chairman, Nashik and Others vs. Dr. Vivek Vasantrao Raje and Another. 2012 (132) FLR 44 (Bom. H.C.) Assault and abuse by workman to superior is a serious misconduct sufficient for dismissal. Assaulting and abusing a superior will amount to serious misconduct and the major penalty of dismissal from service will be justified. High Court will not interfere in the dismissal of the workman who has been found guilty of assaulting and abusing the superior the punishment as imposed by the Management since exercise of jurisdiction of the High Court is restricted not to re-appraise the evidence. Parsu Ram Pandey vs. State of U.P. through Secy. Labour Department & Ors. 2012 LLR 116 (All. H.C.) Non disclosure of material information (about mis-appropiation of money with previous employer) in employment application is a serious misconduct justifying dismissal Non-disclosure of material information in the application for employment is a serious misconduct and dismissal from Banking service after getting proved the charges by conducting proper domestic enquiry is not disproportionate. Conversation of penalty, on the lower side, by the Labour Court while exercising power
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under section 11A punishment given by the Management to be disproportionate should be supported by sufficient reasons with application of judicial mind. There is no place for generosity or misplaced sympathy on the part of the judicial forums and to interfere with the quantum of punishment when charges are found proved in domestic enquiry. Canara Bank vs. Ram Ratan & Anr. 2012 LLR 143 (Raj. H.C.)
Payment of Wages Act A claim about penal deduction of wages of the workman lies before the Authority under the Payment of Wages Act only when the employee is drawing salary not more than the prescribed ceiling. Singareni Collieries works' Union, Khammam and Others vs. Singareni Collieries Company Limited and Another. 2012 LLR 48 (AP H.C.)
Provident Fund
PF authority is not expected to record stereo type finding but to consider the matter independently as per law. While passing any order, the Presiding Officer of the EPF Appellate Tribunal has to consider the matter independently as per provisions of law and avoid to record stereotype findings and conclusions resulting into an error apparent on the face of record. Vyankatesh Shetkari Vinkari Sahakari Soot Girani Ltd. vs. Regional Provident Fund Commissioner and Recovery Officer and Others, 2012 LLR 14 (Bom. H.C.) Where security guards supplied by the agency having full administrative control over them with independent PF code No, such agency would be liable to pay PF contribution and not the company where guards were deputed. Such relationship between the agency and the company would be of principal to principal and not that of employer-contractor. Where the contractor, being employer providing services of man-power, is having control over the personnel being supplied by him to the establishments by way of issuance of appointment letters, making payment of wages and other allowances, taking disciplinary actions, effecting their placement, transfer and termination of services, the relationship between such a contractor and the establishment where the man-power is Business Manager
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From The Court Room supplied by him would be of Principal to Principal and not that of employer-contractor.
employer as defaulter for recovery of the arrears of contributions.
As per section 2(b) read with section 6 of the Employees' Provident Funds and Miscellaneous Provisions Act, HRA, overtime allowance, bonus, commission or any other similar allowances like washing allowance are excluded and no Provident Fund contribution is to be made towards such allowances.
Navnit Motors Pvt. Ltd. vs. Union of India & Another. 2012 LLR 122 (Bom. H.C.)
Group 4 Securitas Guarding Ltd. & Another vs. Employees' Provident Fund Appellate Tribunal & Ors. 2012 LLR 22 (Delhi H.C.) Mens rea is mandatory for lavy and recovery of damages under EPF Act. Determination and recovery of money towards damages from the employer must be unequivocal and not on probability. Specific finding as to mens rea in the enquiry is mandatory for levy and recovery of damages. V.S. Murugan vs. The Regional Provident Fund Commissioner, Tamilnadu & Pondicherrty, Royapettah, Chennai-14 and Others. 2012 LLR 37 (Mad. H.C.) PF contribution shall be first charge on assets of establisment. Sec. 11 of EPF Act gives statutory priority to the amount payable to employees over other debts. Contribution payable under the EPF Act shall be treated as first charge on the assets of the establishment. Such debt shall be paid in priority to all other debts including debts due to bank falling in the category of secured creditor. By virtue of non-obstante clause contained in section 529-A (1) of the Companies Act statutory priority has been given to the workmen's dues and debts due to secured creditors over all other dues. EPF Organization vs. O.L. Of Esskay Pharmaceuticals Ltd. 2012 (132) FLR 98 (S.C) Consultant doctors visiting to many hospitals cannot be held as employees on wages of the hospital. PF contributions not attracted on such payments. Scope of consultant doctors are only visiting doctors. Not confined to a single hospital. Consultants reach for offering consultancy service to patients. Not subject to any control by the hospitals. These doctors are paid only for the service rendered by them. They are not employees of the hospital on wages. Only paid charges for piece rate services rendered by them in the case of patients demanding it. Employees' Provident Fund Organisation vs. Employees' Provident Fund Appellate Tribunal. 2012 (132) FLR 369 (Ker. H.C.), 2012 LLR 165 PF authority cannot attach the bank account of employer without issuing certificate to recovery officer and declaring the employer as defaulter. Order of the EPF Authority under sections 7A and 7B of the Act is liable to be set aside if the same was passed without following the prescribed procedure i.e. without issuing recovery certificate and declaring the 50
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Merely labelling workers as apprentices will not be sufficient to keep them out of purview of EPF Act. Authority rightly covered them. Coverage of over 250 apprentices as employee under the Employee's Provident Funds & Miscellaneous Provisions Act by concerned Authority under the Act as upheld by the EPF Appellate Tribunal will not be interfered by the High Court on the plea that such apprentices were excluded by virtue of the section 12A of Industrial Employment (Standing orders) Act providing for temporary application of Model Standing orders more so when the employees, to be affected, were not impleaded as parties. M.R.F. Ltd., Pondicherry vs. Presiding Officer, EPF Appellate Tribunal and Anr. 2012 LLR 126 (Mad. H.C.) When Special Allowance, D.A., Conveyance and Other Allowances are paid universally to all employees, they would be treated as part of basic wages. A plea which is not pressed or taken before the concerned authorities under an Act is not maintainable before the Review Court. Sections 2(b) and 6 of the Act define basic wages and HRA, overtime allowance, bonus, commission or any other similar allowance are not covered in the definition of basic wages but when special allowance, dearness allowance, conveyance allowance and other allowances are paid universally to all the employees, they would be treated as part and parcel of basic wages. Surya Roshni Limited vs. Employees' Provident Fund and Another. 2012 LLR 42 (MP H.C.) Order of arrest by recovery officer against director who has resgined, liable to be quashed when prescribed procedure not followed. Issuing warrants of arrest on the basis of recovery officer and committing the petitioner to civil prison for not remitting of employees' provident fund against the Director who has resigned from the post are liable to be quashed since the prescribed procedure for recording reasons is not adopted which is a condition precedent. R. Vijayendra Babu vs. K. Narayana and Another. 2012 LLR 158 (Kar. H.C.) Merely that the review petition under section 7-B of the Employees' Provident Funds & Miscellaneous Provisions Act has not been in the prescribed form, it will not justify its rejection by the concerned officer. American Express Bakery vs. Regional Provident Fund Commissioner. 2012 LLR 181 (Bom. H.C.) Even if the employer sought for voluntary coverage, it will not prohibit the PF authority to assess the liability prior to the period of voulantary coverage.
From The Court Room Determination of money against the petitioner-employer by the Regional Provident Fund Commissioner towards payment of contributions and delay deposited of payment will not be interfered by the High Court merely on the plea by the petitioner that it has sought voluntary coverage under the Employees' Provident Funds & Miscellaneous Provisions Act whereas the employer has tried to stall the liability for coverage under the Act and instead sought voluntary coverage, as such, there is no prohibition on the part of the P.F. Authority in assessing the liability prior to the application for voluntary coverage. Coverage under 'Chemical Industry' is enumerated in Schedule I attached to the EPF Act and while covering an establishment engaged in chemical an business these is no need for a separate notification. Crestchem Ltd. vs. Regional Provident Fund Commissioner, 2012 LLR 197 (Guj. H.C.)
Probationer Probationer is not entitled to demand reason from the employer for his termination. Probationers are not entitled to demand reason for their termination hence the Labour Court has rightly held that their services could be terminated at any time by the employer during their probationary period since a probationer has no lien on the job. Sarbjit Singh vs. Presiding Officer, Labour Court, Amritsar and Others. 2012 LLR 46 (P&H H.C.) Probationer termination simpliciter without stigma does not call for any disciplinary enquiry. Removal of petitioner from service, as per terms and conditions of his appointment letter, without inflicting any stigma upon him on the basis of any misconduct committed by him, would be termination simplicitor and conducting of regular departmental enquiry for proving misconduct is not called for. Malagar Singh vs. Himachal Road Transport Corporation and & Ors. 2012 LLR 151 (H.P. H.C.)
Protected Workman Mere submission of a list of "protected workmen" is not enough and a conscious act to be perused by the employeer by giving effect to the concerned workmen as 'protected workmen' as it is not an automatic process. Balakrishnan vs. Labour Court. 2012 LLR 166 (Ker. H.C.)
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Reference Even if the relationship of employeremployee is disputed, the matter is referable by the Government to the industrial Court. Such reference cannot be challenged. An order of reference is an administrative function but amenable to judicial review. Where the contention of the Management is that there is no relationship of employer and employee between the Management and the workman, the dispute is referable to the Industrial Adjudicator. Reference of an industrial dispute where the Management has denied the relationship of employer-employee before the Appropriate government, challenge of that reference is not tenable under the powers of judicial review by the High Court. Bharat Petroleum Corporation Ltd. vs. UOI & Ors. 2012 LLR 19 (Delhi H.C.)
Reinstatement Even if the workman termination is found illigal, compensation in lieu of reinstatement and full back wages would be proper. Merely that the workman have worked for more than 240 day before their termination in 1986 which is held to be illegal in 2005 does not mean that they should be awarded reinstatement with full back-wages since compensation in lieu thereof would be appropriate. Bharat Sanchar Nigam Ltd., vs. Man Singh, 2012 LLR 1 (S.C.)
Retrenchment Illegal termination alone not sufficient to ask the employer to reinstate with full back-wages. Even where the retrenchment procedure is not followed, only compensation would be proper. Reinstatement with full back-wages is not a rule when the termination of a workman has been held to be illegal hence lump sum compensation would be appropriate-moreso when the employer has not paid the retrenchment compensation on termination of the workman who has completed 240 days in employment in a year. Lump sum compensation instead of reinstatement with back-wages as awarded by the Labour Court is liable to be set aside when the concerned workman was a daily wager and has worked only for 280 days. Zila Panchayat, Mathura vs. Deputy Labour Commissioner, Agra Division and Others. 2012 LLR 59 (All. H.C.) Business Manager
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From The Court Room
Settlement Benefits of a settlement restricted to certian numbers of workmen who are in the employment on the date of settlement cannot be extended to those who were not on the rolls on the date of settlement. The scope of a settlement, effective for restricted number of workmen viz. those who are in the employment on the date of settlement hence it cannot be extended under section 33C(2) of the Industrial Disputes Act making it beneficial to other workmen in the absence of any pre-existing right. The Management of A.R.C. Retrading Company (P) Ltd. (Transports) etc. vs. The Presiding Officer, Labour Court, Coimbatore etc. 2012 LLR 28 (Mad. H.C.)
Transfer Without consent workman cannot be forced to work under different/ new management. If workers do not agree, they are entitled to retirement/retrenchment benefits. A workman cannot be forced to work with a different employer without his consent. When ownership of a firm is taken over by another employer and the workmen do not accept the employment of that new employer even under the same terms and conditions, the workmen will be entitled to retrenchment compensation or retirement benefits from the transferor. Sunil K.R. Ghosh & Ors. vs. K. Ram Chandran & Ors. 2012 LLR 76 (S.C.) Transfer from one employer to another employer without employee consent is illegal. Transfer of an employee from one employer to another in the absence of consent of the employee concerned is illegal and Liable to be quashed. When the transfer is held to be illegal, it will amount to illegal termination and in that case, the workman may be awarded reinstatement with back-wages, continuity of service and other benefits. When there is necessity to transfer an employee to another employer, it should be resolved by a tripartite contract and not otherwise. P. Mani vs. Presiding Officer, Labour Court, Coimbatore and Anr. 2012 LLR 130 (Mad.H.C.) Court cannot interfere with transfer order unless it is malafide and arbitrary. The Court cannot interfere with the order of transfer unless the same is tainted with mala fide and arbitrary exercise of power by the employer and it is in violation of any mandatory statutory rules or provisions. Who (junior or senior) should be transferred and where, is a matter for the appropriate authority i.e. employer to decide in view of exigencies of administration as the transfer is 52
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ordinarily an incident of service. H. Rahothuman and Anr. vs. Tamil Nadu State Transport Corporation (Villupuram) Ltd. and Anr. 2012 LLR 183 (Mad. H.C.)
Unauthorised Absence Modification of dismissial order for unauthorised absence to reinstatement liable to be quashed. Dismissal justified. Interference by the Labour Court in dismissal of bus driver by reducing the punishment for withholding of two increments not proper when he has unauthorisedly absented for 11 month and 4 days in addition to 35 days' absence in the past.. Smt. Padma and Others vs. Chief Traffic Manager, BMTC Central Office, Bangalore. 2012 LLR 161(Kar. H.C.)
Unfair Labour Practice Denial of union office bearer’s representation in the enquiry would amount to unfair labour practice and violation of principles of natural justice. Denial of representation to a workman in the enquiry, by an office-bearer of the Union of which he is a member, will not only be violative of principles of natural justice but will also amount to unfair labour practice as per clause 5(s) of the Vth Schedule as appended to Industrial Disputes Act. When in an enquiry the Management is being represented by a Manager HRD & IR having acquired experience in dealing with the disciplinary matters, the denial of representation by a Union leader, practising in law to a workman, will be unjustified. While certifying the Standing Orders, the Certifying Officer under Industrial Employment (Standing Orders) Act should ensure that a workman, facing the enquiry, must receive the assistance of officebearer of the Union. Management of M/s. Chidambaram Shipcare Pvt. Ltd. vs. Presiding Officer, Chennai and Ors. 2012 LLR 95 (Mad. H.C.)
Voluntary Retirement In case of long unauthorised absence from duty, effecting voluntary retirement in accordance with the bipartite settlement of the bank will be proper & legal. Domestic enquiry not required in such case.
From The Court Room
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When bipartite settlement is binding upon the parties and there is no provision of conducting domestic enquiry in the case of unauthorized absenteeism, employee has neither reported for duty nor sent any explanation regarding his long unauthorised absence or reply to the notice served upon him, his voluntary retirement, effected by the employer is justified and does not require any interference under writ jurisdiction as the holding of domestic enquiry is not necessary. Ram Singh Meena vs. Bank of India & Ors. 2012 LLR 140 (Raj. H.C.)
Workman Advocate/legal advisor engaged for contesting cases and giving legal advice is not workman under ID Act. An advocate/legal advisor engaged by a cooperative bank on monthly retainership basis to advice and conduct the cases will not be a 'workman' under the Industrial Disputes Act hence the Award of the Labour Court holding him 'workman' and awarding relief of reinstatement etc. is liable to be set aside. Sonepat Central Co-operative Bank Ltd. vs. Presiding Officer, Industrial Tribunal-cumLabour Court, Rohtak and Anr. 2012 LLR 26 (P&H H.C.) Trainee supervisor found to be working as shift supervisor having power to take action, recommend confirmation, granting leave, prepairing daily & log reports will not be workman under ID Act. The nature of duties of the claimant/petitioner who was working as Shift Supervisor, having powers to take action against the workers who would be defaulting their work, used to recommend confirmation of workmen, granting leave to workmen, preparing log reports and daily reports, issued memos to the workers, being of supervisory nature, take him out of the purview of the definition of workman under section 2(s) of the Industrial Disputes Act.
The Labour Court, after perusal of the evidence on record, has rightly concluded that the petitioner is not a workman. High Courts have no jurisdiction to go into the factual findings regarding status of an employee by re-appreciating the evidence under Article 226 of the Constitution of India. P.B. Sivasankaran vs. The Presiding Officer, First Additional Labour Court, Chennai and Anr. 2012 LLR 30 (Mad. H.C.) Employee authorised to sign the cheques, cannot be termed as “Workman� under I.D. Act. Employee was getting total emoluments of Rs. 21000/-. His basic pay was Rs. Rs. 10065/-. He was one of the signatory on cheques of company. Hence the Labour Court rightly came of conclusion that appellant cannot be considered a workman. And learned Single Judge has confirmed it. This Court is in complete agreement with the same. S. Kalyankrishnan vs. Blue Star Limited. 2012 (132) FLR 314 (Guj. H.C.) Employee signing cash vouchers, sale tax forms and coordinating accounting activities will not be a workman under I.D. Act. The powers if signing cash vouchers, authorised signatory of sales tax forms, having responsibility for coordination and management of accounting activities and supervising the work of some other employees as indicated in the nature of employee's Job was issuing directions to his subordinates, exercising supervision and control upon their working and accordingly he would not come within the purview of definition of a 'workman' under section 2 (s) of the Industrial Disputes Act. S. Kalyankrishnan vs. Blue Star Limited. 2012 LLR 123 (Guj. H.C.) A Development Officer in an Insurance Company will be a workman under section 2 (s) of the Industrial Disputes Act. Ishwarlal Ramhariya and Another vs. New India Assurance Co. Ltd. and Others. 2012 LLR 182 (M.P. H.C.)
Courtsey - Labour Law Reporter,FLR, CLR & APS Labour Digest
Government Notifications
Minimum Rates of Wages in Bihar w.e.f. 1-10-2011 S.No. Categories of Workers
Rates of Min. Wages
1
Unskilled
144.00 per day
2
Semi Skilled
150.00 per day
3
Skilled
183.00 per day
4
Highly Skilled
223.00 per day
5
Supervisory/Clerical
4134.00 per month
Minimum Rates of Wages in Haryana w.e.f. 01-01-2012 (D.A. Increase of Rs, 203.82) S.No. Categories of Workers
Rates Per Month Per Day
1.
Unskilled
4847.17
2.
Semi Skilled-A
4977.17
191.42
3.
Semi Skilled-B
5107.17
196.42
4.
Skilled-A
5237.17
201.42
5.
Skilled-B
5367.17
206.42
6.
Highly Skilled
5497.17
211.42
Business Manager
186.42
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SHANTIMAL JAIN Advisor, Rajasthan Textile Mills Pachpahar Road, Bhawanimandi (Raj.)
Unfair Labour Practices "Malafides", "victimization" and resultant "retrenchment" could be the essential ingredients when allegation of unfair labour practice is made. If an employer intentionally adopts a route of promoting employees in a way intended to cause discard among his workmen or to undermine the strength of their union he could be guilty of committing unfair labour practice but these propositions need a positive evidence.
T
he Maharastra Recognition of Trade Union and Prevention of Unfair Labour Practices Act 1971 (1 of 1972) for the first time defined and codified unfair labour practice. But in so far as the Industrial Disputes Act 1971 is concerned unfair labour practice was codified and was brought into force by the Amending Act 1982 (46 of 1982) w.e.f. 21.8.1984. Broadly speaking while examining the concept of unfair labour practice as it has been dealt in Maharastra Act and ID Act, it is revealed that any unfair labour practice within its very concept must have some elements of arbitrariness and unreasonableness and that if unfair labour practice is established, it would bring about a violation of guarantee under Article 14 of the Constitution. Consequently it is axiomatic that anyone who alleges unfair labour practice must plead it specifically and such allegations must be established properly before any forum can pronounce on the same. Simultaneously it is also to be borne in mind that in the changed economic scenario the concept of unfair labour practice is also required to be understood. Presently every state puts up mantle of a welfare state and therefore it is essential that twin objectives of industrial peace and economic justice must be kept in mind. It is also required that the courts and statutory bodies while deciding what unfair labour practice is, must also be aware of these twin objectives. These preliminary observations become all the more relevant because at the moment we are weeping buckets on the ruinous and devastated economy consequent upon neck deep recession. We can not therefore countenance erosion of
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industrial peace and economic justice which if done the damage to the economy would be immense. Now before discussing the entire anatomy of unfair labour practice, I would refer to the two observations of our Apex Court in the case of Parry & Company Ltd. V.s., P.C. Pal AIR 1970 SC 1334,a three judge bench of the Supreme Court held that it was well established that it was within the managerial discretion of an employer to organize and arrange his business in the manner he considered best so long as that was done bonafide, it was not competent of a Tribunal to question its propriety. If a scheme for such reorganization resulted in surplusage of employees, no employer was expected to carry the burden of economic dead weight and retrenchment had to be accepted as inevitable, however unfortunate it was. Similarly in Hindustan Lever ltd. Vs. Ram Mohan Ray (1973) 4 SCC 141, a 3 judge bench of Supreme Court held that nationalization and standardization of work by the management by itself would not fall under item 10of schedule 4 of the Industrial Disputes Act unless it was likely to lead to retrenchment of workers. In the backdrop of the aforesaid observations of the Apex court vis-Ă -vis the allegations of unfair labour practice, I shall further elucidate as to what is the actual import of the concept of unfair labour practice and for this let us refer to clause (ra) of Section2 of the Industrial Disputes Act which defines unfair labour practice to mean the practices specified in Fifth Schedule and the Fifth Schedule was also inserted by the said
Unfair Labour Practices
In the case of Parry & Company Ltd.V.s., P.C. Pal AIR 1970 SC 1334,a three judge bench of the Supreme Court held that it was well established that it was within the managerial discretion of an employer to organize and arrange his business in the manner he considered best so long as that was done bonafide. amending Act. The fifth schedule consist of two parts. The first part refers to unfair labour practices on the part of the employers and unions of employers and the second part refers to unfair labour practices on the part of the workmen and trade union of workmen. Now there are some differences between the provisions of unfair labour practices as contained in the Maharastra Act and those in the Central Act i.e. Industrial Disputes Act. The Industrial Disputes Act prohibits an employer or a workman or a trade union from committing any unfair labour practice while the Maharastra Act prohibits an employer or union or an employee from engaging in any unfair labour practice. It, therefore, follows that prohibition under the Industrial Disputes Act is aimed at preventing the commission of an unfair labour practice while the Maharastra Act mandates that the parties concerned cannot be engaged in any unfair labour practice. The
Similarly in Hindustan Lever ltd. Vs. Ram Mohan Ray (1973) 4 SCC 141, a 3 judge bench of Supreme Court held that nationalization and standardization of work by the management by itself would not fall under item 10of schedule 4 of the Industrial Disputes Act unless it was likely to lead to retrenchment of workers. Supreme Court has held that the "engage" was more comprehensive in nature as compared to world "commit". Section 28ofthe Maharastra Act deals with the procedure for preferring complaint against an unfair labour practice. As has been said herein above the Maharastra Act was a comprehensive legislative device to weed out unfair labour practices not only on the part of the employers, but also on the part of the trade unions and the workmen. As we all know that our Supreme Court probably the strongest in the world has a rare reputation of giving verdicts that display a jurisprudential vision, when it is confronted to pronounce on a vexed question of law and fact. This is what has been recently done in the case of Seimans Ltd. Anrs.Vs. Seimans Employees Unions and another (2011) 9 SCC 775 where it has dissected threadbare the concept of unfair labour practice. The unions of workmen everywhere have a habit of sensationalising and seeing victimization and malafide lurking in every action
that the employers take in the direction of rationalizing the functioning of its industrial establishment. In the instant case there was an agreement entered into between the company and the union in 1982. The said agreement was captioned as "Rationalisation and Transport Settlement". The clause 7of the said agreement provided that the employees or the officers or staff category shall not be asked to do normal production work and clause 12 of the agreement provided that the settlement shall not be utilized for eliminating the further employment potential or promotional opportunities to the existing workmen. The company introduced a scheme inviting workmen to appear for selection process, to undergo two years as officer training and then to be designated as a Junior Executive Officer. The workmen responded to the scheme and voluntarily applied for the promotion scheme and that company did not create any discord amongst the workmen and further that the company was not withdrawing or tinkering with the recognition of the union in any way. The response of the workers was over-whelming. However the union conceived it to be a unfair labour practice although it did not allege any malafide or victimization while making complaints in this regard. The Industrial Tribunal where the complaint was originally made and the High Court held in favour of the worker's union. The Supreme Court held that the High Court failed to have a correct prospective of the question involved in this case and obvious came to an erroneous finding. It is also submitted that "malafides", "victimization" and resultant "retrenchment" could be the essential ingredients when allegation of unfair labour practice is made. If an employer intentionally adopts a route of promoting employees in a way intended to cause discard among his workmen or to undermine the strength of their union he could be guilty of committing unfair labour practice but these propositions need a positive evidence which is seldom available. In the instant case, our Supreme Court adopted operational flexibility in the construction of the statute with a view to moderating the letters of the law in tune with the spirit of times to be sufficiently relevant and responsive. It should be appreciated that our judiciary shows an aggressive stand in interpreting law when situations so warrant. It therefore follows that the Apex Court has done laudable work in exposing the concept of unfair labour practice. It has ridiculed the resort to alleging unfair labour practice when the employers undertake rationalization and standardization of jobs in order to be competitive and viable. BM Business Manager
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ISTD National Convention
Focus of the Business should be on sustainable inclusiveness
Mr. Partha Chatterjee, Honorable Minister, Commerce & Industries, Parliamentary Affairs, Public Enterprise and Industrial Reconstruction, Information Technology, Government of West Bengal who has been a key member of the Personnel Management fraternity over the years said "Sometimes I feel, I lost lot of friends" (moving into politics from his first passion). He opined that a motivated workforce is the most important intangible asset and the focus should be on sustainable inclusiveness. He underlined the need for growth and human development in areas of health, education and skills development. Though there is an yawning skills gap/mismatch India, he emphasized that the country has "demographic dividend" with 65% of the population in the workforce-among the highest in the world. Dr. Manash Bhuiyan, Honorable Minister, Irrigation and Waterways, Micro and Small scale Industries, Government of WB drew the attention of the august gathering to the problem of unemployment. He shared that there are 78 lac registered unemployeds in the state. He saluted the endeavor of ISTD. He too like his cabinet colleague shared the investment initiatives taken up by his Govt and highlighted the importance of MSME department toward overall industrial development. The conference Chairman Mr. Shakeel Ahmed, CMD, Hindustan Copper Ltd elaborating on the conference theme stated that everybody is in 56
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search of value. Human Resource Development hold the key. There is undue importance given on skills, competence and knowledge. Passion and a fire in the bell. Creating appropriate conditions is very important. Prof (Dr.) D K Banwet, National President, ISTD said creating value is one of the key challenges. Holistic and Systemic approach for capability development is required he opined. In a powerful address, Padamshree Dr. Pritam Singh, Director General, IMI, New Delhi stressed that understanding of context is very important. He quipped that to a child the father is the reservoir of knowledge but subsequently it comes to a point where he says "Dad knows nothing". He felt the need to appreciate the changing value and life systems/styles in order for us to achieve the cause of value creation through human development. Mr. Nataraj Roy, Chairman, ISTD Kolkata Chapter delivered the welcome address. He emphasized the need to revisit people strategies in an age where there is acute shortage of skills. In the first session, Mr. Kalyan Kar, MD, InSkill shared his thoughts on the need for bringing in greater innovation in employability. Mr. S. J. Amalan aptly spoke at length on the need for professional humility. He questioned the justifiability of calling hundreds of people for interview when only a handful are required. This, he quipped creates "social enemies" against the brand.
Mr. Dilip Chennoy, MD & CEO, National Skills Development Corporation elaborated the Government's initiatives on skills development. In the second session, Mr. Y S Reddy, Director (Personnel), Vizag Steel Plant and the Chairman of the session underlined the need for creating an appropriate infrastructure for developing skills. Mr. Kevin Tan, Director, Dan Harrison Assessment Centre, Australia in an emphatic and lucid delivery shared some studies and insights into success in jobs. Ms. Tanvi Gautam-Managing Partner (Asia Pacific) Global People Tree, Singapore discussed current trends and technologies. She mentioned that with increased use of technology the way we develop human resource need to be reworked as well. Mr. Mehul Kuwadia, Chief Executive, Grey Cells, Mumbai shared his experience on choosing candidates for Mumbai Municipal Elections. Dr. Chinmoy Sarkar, Dean, Lovely University discussed the challenges in an age which has come to celebrate innovation. In the third session, Mr. C K Podder, Executive Director, NINL, Orissa was the chairman of the session. Mr. S C Padhy, Director (Personnel), MCL, Sambalpur discussed challenges faced by modern organizations. Mr. Nadeem Kazim, Director, Exide Industries Ltd discussed how HR has changed rapidly over the years and how the pace of change has been much higher over the last some years. Prof Ranjan Das of IIM, Calcutta mentioned that competition could come from anywhere so preparedness is must. While change is a way of life, Prof Das stressed that people after all are constant and therefore robust people processes are required. Mr. P P Sahoo, Director (Personnel) of Balmer Lawrie Ltd emphasized the need to understand the value paradigm. He shared the Balmer Lawrie experience, a 145 yr old company. The day ended with a glittering cultural programme. Second Day, In a special address, Mr. Bob Morton, Chairman IFTDO Board remarked "benchmarking is the refuge of the intellectually challenged" . He emphasized the need for evidence based challenge. There is need for logic driven analytics he mentioned. Same things over and over again render a sense of insanity. HR is seen as policeman. This paradigm has to change. Conferences like these, Mr. Morton opined help in achieving wisdom, networking and fun.
Session 4 : HR as the facilitator for Values and Ethics Mr. D Bhattacharya, Sr. Executive Director IFFCO shared the case study of IFFCO, a fertilizer company. He underlined the need to revive Indian values toward achieving Holistic Development. Indian values are different he stressed. Dr. R K Pradhan from IIT Kharagpur spoke on Emotional Quotient. Emotional Understanding and its management is the need of the hour. Geoff Abbot from the University from Cambridge expanded on the ethical dimension by stating that there are issues related to physical resources, human rights, animal rights, exploitative marketing, offshoring cheap labor, child labor amongst others. Ms. Ester Martinez, Editor-People Matters shared her experience on the "Great Places to Work" Project. She stressed the need to explore whether HR achieves the cause of consistency, transparency and flexibility. Commodore H K Verma, Director (Personnel) stressed the need for professional integrity and honesty. He aptly shared his experience with the army where the security of the nation is uppermost on mind. In the Fifth session, Mr. G S Ramesh, Chairman, Layam Group mentioned that the need of the hour is time management. HR according to him has an engineering and operating role. . Mr. Aquil Busrai, CEO, Aquil Busrai Consulting shared the view that expsoure to learning help in addressing attrition. Loyalty he mentioned is not to be judged by length of service but while one is there. Dr. Namdesh Nilay, Director TraNc said that assertive, not aggressive leadership is required. Dr. R P Sengupta, Director, EIILM University summed up using the example of a Mother who is the embodiment of provider as well as practicer of values. In the last session, HR Head's Panel Dr. Sharu Rangnekar, Management Consultant in a powerful discourse mentioned that we end up measuring success through money, status or power. The best way to know whether you are doing well is when you are enjoying what you are doing. Mr. R P Yadav, CMD, Genius Consultants underlined the need for addressing the skills shortage. Prof Imon Ghosh, Director, Academy of HRD, spoke about EVP -Employee Value Proposition. Ms. Sujata Nangaraj, ISTD Orissa Chapter President summed up the sessions. The conference was attended by aroud 450 professional. BM (By Rajib Kumar) Business Manager
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Report of the National Seminar on
SME Entrepreneurship
A
National Seminar on Small Business and Entrepreneurship: Going Beyond the Known Horizons organized by JK Lakshmipat University on 24th December 2011 had an objective to promote and advance the understanding of entrepreneurship and small business and to introduce participants to the crucial and complementary role small business and entrepreneurship play in supporting the economy. Experts from industry and academia were invited to share their knowledge and experiences and have meaningful deliberations on the theme. Dr. Upinder Dhar, Vice Chancellor, JKLU, highlighted the shift from capital based entrepreneurship of 20th century to the present day entrepreneurship, wherein capital is no longer the only deciding factor. He asserted that entrepreneurship is multi-dimensional in nature and focus should be on mastering all the dimensions. Dr. B.V. Babu, Director, IET, JKLU shared the vision and mission of the University. Dr. S. Bhargava, Director, IM, JKLU emphasized upon the significance of entrepreneurship in the present times. He further stated that risk taking, achievement motivation and innovative mind set are the precursors for developing an entrepreneurial society. The keynote address was delivered by Prof. Y.K. Bhushan, President, CSBE & VC, ICFAI University, Meghalaya. Prof. Bhushan 58
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asserted that small businesses are the solutions to many of the problems of our country and the rest of the world. He highlighted the problems of small businesses in terms of financial sickness, inefficiencies, obsolete technology, irregular power supply, nonaffordability of marketing, designing and R&D investments, nonpreferential treatment, and intentional diversion of funds. In his inaugural address, chief guest Rajendra Bhanawat, M.D. RIICO threw light upon the potential of human mind and emphasized that to develop entrepreneurial skills, we should have an extended motivation and should not expect immediate returns. Mr. Bhanawat concluded by saying that fear of failure hampers the spirit of innovation and thus, it should not be allowed to develop. In the plenary session, Mr Atul Kapur, President, TiE, Rajasthan, stated that we should find out better ways for whatever is existing and should never let the entrepreneur die within us. Mr Rajesh Moondra, Ex-President TiE and an entrepreneur in his deliberation, stated that entrepreneurship always starts small. It is an idea that has to come from within. He emphasized upon the quest for learning, and to do something new and if the idea is scalable then there is an eco- system to support it. Mr. Manuj Goyal, Vice President, TiE in his address, focused on the opportunities created by global crises for entrepreneurship. He said that global crises will affect those who are in international business but at the same time will offer opportunities for the countries having negative growth rates. Mr Amit Agnihotri, Chairman, MBAUniverse.com focused on the fantastic journey called entrepreneurship and said that success in life comes from knowing yourself. He advised the budding entrepreneurs to be passionate about what they have in mind. Passion would help them to pursue what they aspire to achieve and added further that an entrepreneur should be ready for the pleasant and unpleasant surprises which he would get along the journey. Guest of Honour, Major. O.P. Yadav, an Industrialist while delivering valedictory address shared his experiences and concerns over apathy shown by the government when it comes to supporting small business. He stressed that a gap lies between governmental policies for supporting small business and their implementation. The Seminar ended with the vote of thanks delivered by Dr. Santosh Dhar of the Institute of Management of JK Lakshmipat University. The National Seminar was coordinated by Dr. Upasana Singh. BM Business Manager
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BOOK LEARNING
Practical Guide to
Employee's Compensation Act & Rules By H.L. Kumar Publisher : Universal Law Publishing Co. Pvt. Ltd., C-FF-1A, Dilkhush Industrial Estate, (Near Azadpur Metro Station), G.T. Karnal Road, Delhi-110 033 Price : 395/www.unilawbooks.com
The Workmen's Compensation Act of 1923 was a turning point in the history of labour jurisprudence and trade union movement. This was the earliest national legislation to provide compensation to the workmen by their employers for injury which may be suffered by the workmen as a result of an accident during the course of employment. The general principle is that a workman, who suffers injury in the course of his employment, should be compensated. The Act provides security to the workmen who are partially incapacitated resulting in a loss in the earning capacity. As due for a long time, radical amendments have been made in the Act. The title of the Act has also been changed since the term 'workmen' created confirm as if
Practical Guide to
Payment of Gratuity Act & Rules By H.L. Kumar Publisher : Universal Law Publishing Co. Pvt. Ltd., C-FF-1A, Dilkhush Industrial Estate, (Near Azadpur Metro Station), G.T. Karnal Road, Delhi110 033 Price : 250/www.unilawbooks.com
only of those employees could claim compensation under the Act who were 'workmen' under the Industrial Disputes Act, 1947. Besides that, in scheduled II with the words "employed otherwise in a clerical capacity" the scope of coverage of employee under the Act has enhanced. The newly added sub-section 1A to section 4 of the Act, empowers the Central Government to specify the monthly wages in relation to an employee for calculation of compensation has been enhanced to Rs.8,000 from Rs.4,000 per month will effect from 31-5-2010. At one point of time, the scope of the Act remained restricted since only the employees, who were drawing wages upto a certain limit, were covered but the same has been done away by the legislature. Now, irrespective of the wage or salary, all the employees, as prescribed in the Act, have been covered except that the calculation of compensation would be @ Rs.8,000 per month. The provisions of the Act have not only been explained but ratios of the relevant case law are also given in this book. Besides that, emphasis has been laid on procedure for calculation of compensation with illustration which will be helpful for the readers to calculate the compensation. The sixth edition, under review updates the law based on recent cases and the book will, as usual, continue to enrich the knowledge and understanding of the students, the executives, the labour officers, the personnel managers, HRD executives, the entrepreneurs, the labour advisors, trade union leaders and the consultants of the Labour Laws.
A large number of employees have become entitled to gratuity and many of those who are were eligible, will get much higher gratuity. Relatively, the disputes are likely to arise more about interpretation of the provisions of the Payment of Gratuity Act, 1972. The last revision of wage ceiling for entitlement of gratuity with effect from 24th May, 2010, has enhanced the utility and importance for this book. Besides that the teachers, who were deprived of their right to gratuity, have also been made eligible-that too with retrospective effect i.e. 3rd April 1997. All these amendments have been incorporated in this book. The table of cases will also tell the readers that many more cases, which have risen during interregnum of the earlier edition, have been given in brief details which will enhance the utility of the book. This book will meet the requirement of all those who want to know more about Payment of Gratuity Act, Its interpretation and implementation.
BOOK LEARNING
looking to bring coaching into their organisation and for those seeking to move forward, re-energize or maximize the true potential of their existing coaching investment.
Managing Coaching at Work
This comprehensive guide covers all of the key issues many organisations face like, embedding coaching on a shoestring and surviving during times when budgets are under pressure, developing, sourcing and maximizing the use of coaching to meet your organisation's business needs, creating a compelling business case for sustaining coaching, making coaching a part of managers' everyday skill-sets and evaluating the results and benefits of coaching.
By Jackie Keddy & Clive Johnson Publisher : Kogan Page Viva Books Pvt. Ltd., 4737/23, Ansari Road, Daryaganj, New Delhi-110 002 Price : £ 24.99, US $ 39.95 www.vivagroupindia.com This book is about the task of sustaining, managing and growing an existing coaching initiative. It concerns using coaching as a tactical or strategic mean for achieving a beneficial purpose within an organisation. Managing Coaching at Work is packed with valuable tips, techniques and insights that will inspire very experienced coaching practitioners. Based on direct experience and a realistic understanding of the scope of influence that many coaching champions have within their organisations, Authors provide practical guidance on all aspects of making workplace coaching work. It serves as an essential reference for any manager or HR professional
Statement about ownership and other particulars about newspapers entitiled “Business Manager” Alwar as required to be published under section 19 D of the press & registration of Books Act. 1867. Place of Publication
: Business Manager, B-138, Ambedkar Nagar, Alwar - 301001 (Raj.)
Periodicity of the Publication
: Monthly
Printer’s Name
: Mr. Anil Kaushik
Whether Cititzen of India
: Yes
Address
: B-138, Ambedkar Nagar, Alwar - 301001 (Raj.)
Publisher’s Name
: Mr. Anil Kaushik
Whether Cititzen of India
: Yes
Address
: B-138, Ambedkar Nagar, Alwar - 301001 (Raj.)
Editor Name
: Mr. Anil Kaushik
Whether Cititzen of India
: Yes
Address
: B-138, Ambedkar Nagar, Alwar - 301001 (Raj.)
Name & Address of share : Nil holders of the company holding morethan 1% of the paidup capital I, Anil Kaushik hereby declare that the particulars given above are true to the best of my knowledge & belief. 1 March, 2012
Anil Kaushik Publisher
Putting the role of coaching firmly in context with business need and supported by comprehensive case studies from organisations of all sizes from around the world, this book emphasises the vital role that coaching can play in driving forward strategic objectives as well as illustrating the powerful benefits of using coaching at the grass-roots. Organised in three parts, book deals with organizational contexts for using coaching, exploring the concept of setting an agenda to align coaching applications with business needs and discussing the relevance of choosing between different levels of aspiration in deciding how to focus a coaching project. Next part provides guidance on implementing a coaching initiative and last one puts the spotlight on capitalizing on what is learnt through coaching, emphasizing especially the role of adult and evaluations.
Britannia goes in restructuring mode Rising input costs, squeezing margins and profits have forced India’s leading confectionary major Britannia Industries to restructure its sales team and middle management, a move aimed at bringing in greater synergies and profitability. The company has appointed global consultancy firm Bain and company for undertaking the management restructuring exercise. It is learnt that after the restructuring of various management positions, less employees would be responsible for more operations, thus curbing the wage bill of the company. The company is mulling hiring one individual to take up work of four individuals when it does the replacement hiring to fill vacancies. Recently, Britannia Industries merged the sales team of its dairy portfolio with that of the more established biscuits business in a bid to cut costs when margins are under pressure. The confectionery major is facing increasing distribution cost due to high petrol prices and also soaring raw materials cost as prices of ingredients like palm oil, sugar, milk and nuts are spiraling. The dairy division, which accounts for close to 5% of its total sales, has doubles sales in four years. The integration of dairy with biscuit distribution would expand the reach of Britannia’s dairy products manifold without the company actually making substantial investments.
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HR News
Regency Ceramics President Lynched by Workers a police station. Eight workers were injured in police firing that followed; the condition of two of them is critical. More than 100 protesters have been arrested. The factory workers, who have been on strike since January 1 demanding a raise and regularization of services of temporary staff, turned violent after their union leader, M S Murali Mohan, died on Friday after a police lathicharge at the factory. The management had reportedly decided to retrench five workers and had even obtained orders from the Madras high court that the striking workers should not come within 200 metres of the industrial unit.
100 arrests made after violence rocks Yanam. Prohibitory orders were imposed in Puducherry's enclave of Yanam in Andhra Pradesh and police forces called in from Kakinada after angry workers of Regency Ceramics, a private firm, lynched their company president, torched several vehicles and laid siege to a police station after sacked union president died on way to hospital in a police clash. Puducherry's serene enclave of Yanam turned into a battleground on Friday as enraged workers of a private firm, Regency Ceramics, lynched its president K C Chandrashekhar after their union leader died following a lathicharge by police. Chandrashekhar, who was president (operations) and son-in-law of the company chairman, was attacked with iron rods at his home. He was taken to a private hospital in Kakinada in Andhra, 30km from Yanam, where he died. Trouble began when police picked up union leader M S Murali Mohan, a Dalit, late on Thursday on a complaint by the factory management. The workers have been agitating for better wages and regularization of staff for the past three months. Murali was released a few hours later. At 6am on Friday, he went to the factory along with some workers and tried to obstruct the morning shift. The cops deployed there charged at them with lathis, injuring at least 20 workers. Murali collapsed and died on way to hospital. Hundreds of workers gathered outside the police station and demanded that the guilty be booked for murder. 100 arrests made after violence rocks Yanam. Prohibitory orders were imposed in Puducherry's enclave of Yanam in Andhra Pradesh and police forces called in from Kakinada after angry workers of Regency Ceramics, a private firm, lynched their company president, torched several vehicles and laid siege to 62
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As news of Murali's death spread, factory workers damaged nearly 50 company cars, buses and trucks and set them on fire. Some private vehicles were also targeted. Residents joined hands with the angry mob of around 600 workers and ransacked the factory. After setting it on fire, they torched an educational institution run by the company, besides burning down a shed. Two oil tankers were also gutted, while miscreants looted computers, ceramic tiles and other office material. Some of the workers went to company president K C Chandrashekhar's house and beat him up with iron rods. He died later in a hospital. Police said the tense situation in the neighbouring town of Kakinada, following the desecration of B R Ambedkar's statue, added fuel to the violence. The trade union formed by Murali has been demanding regularization of those who have put in 15 years of service. The workers have been on a relay hunger strike for the past 10 days, demanding reinstatement of sacked workers and revocation of transfer of workers who took part in earlier protests. Company management declared lockout from 2nd february. Inputs by P.B.S. Kumar
HR News Report on HR issues
Air India should link incentives with salary Points to Ponder The committee suggested to link incentives with profitability of carrier and not with operational parameters. Recommendations if implemented would raise take-home salary of all AI employees, including pilots. As per projections, the airline is not looking at any profit at least in five years due to high operating cost.
The three members Justice Dharmadhikari Committee looking into Air India's contentious HR issues, has suggested that performancelinked incentives (PLI) of the public sector carrier's 29,000 employees be merged with their basic salary. The committee which submitted the report to the aviation minister Ajit Singh, also recommended to link incentives with the profitability of the carrier and not with operational parameters as is currently in practice. The move would affect take home salary of all AI employees, including pilots, other members of the cabin crew and engineers. The new package, the committee says, will be cost neutral. In case the report is implemented, the incentive part which currently accounts for 50% of the gross salary would fall. As per the current PLI norms, incentives are linked to the numbers of passengers and punctuality of flight takes-off among others. The airline profitability is not a criterion at present. The committee suggested a pay structure which is in conformity with the DPE (Department of Public enterprises) guidelines. The suggestions if implemented would be cost neutral. With the basic salary to be high as a result of the proposal, the PF (provident fund) contribution and gratuity of employees (which are determined as percentage of the basic salary) would go up. Air India's current annual wage bill is about 3200 Crore, 12-15% higher compared with rival airlines like Jet Airways and IndiGo. The government had last year set up a committee under Dharmadhikari with other members being R Dholakia of IIM Ahmedabad and former director in DPE Rajeshwar Dayal to address the pay related issues of Air India and erstwhile India Airlines. Following the merger of Air India and India Airlines the issue of equal salaries and allowances came up triggering protest and agitation by employees for pay parity. If the suggestions of the Dharmadhikari Committee is implemented, 90% of the employees would get either same or a little more salaries. In case of 10%, primarily high paid pilots, would see a marginal cut.
“Best Cos for rewards & recognition” study on cards Edenred - The International leader and India's foremost organization in work-life benefits, rewards and loyalty solutions, has partnered with Great Place To Work®Institute to identify "India's Best Companies for Rewards and Recognition 2012". The study aims at honoring companies in India that take employee motivation to the next level with innovative, structured and measurable rewards and recognition programs. Edenred and Great Place To Work® Institute have embarked on this initiative to celebrate the achievements of such organizations with outstanding rewards and recognition practices. This platform will also encourage a number of organizations to create an effective program addressing the entire employment 'value proposition' of remuneration, benefits and careers. Speaking on the association and the study, Mr.Sandeep Banerjee, CEO and Managing Director, Edenred - India said, "For over 50 years, Edenred has been committed to its vision 'For an Easier Life' and developed innovative solutions that enhance individual well-being and performance of organizations. Taking it to the next level, Edenred along with the Great Place To Work® Institute has established this benchmark study to honour those conglomerates which have set an example by creating programs, practices, elements and dimensions that define their intent to reward and recognize their employees. This study will salute the business and leadership that has championed programs in order to maximize the effectiveness of rewards and recognition. Mr. Prasenjit Bhattachatrya, CEO Great Place to Work® Institute says "This Study is an attempt to encourage more organizations to improve their reward and recognition practices and study what the best workplaces in this area do differently. The Study will bring focused insights in this important area for use of Organizations who want to use the power of appropriate rewards and recognition to create high performing organizations." More than 100 companies belonging to a multitude of sectors like IT/ITES, BFSI, FMCG, Pharma, Manufacturing, etc. are expected to be a part of this study. The criterion for selecting the best companies is primarily based on employees' response to the Great Place to Work Trust Index© Employee Survey and the Management's/HR's response to a detailed questionnaire on rewards and recognition practices. Through these tools, organizations will be assessed on the practices followed by them in the area of rewards and recognition. Corporate organizations that feature on the list of 'India's Best Companies for Rewards and Recognition 2012' will be felicitated in a grand ceremony to be held in the month of April 2012 in Mumbai. To be considered for the study, an organization should be operational in India for 2 years with an employee strength of at least 100 employees. The organization should not have undergone any merger or acquisition which added 25% or more employees to its employee strength.
RIL workers strike work over cell ban Ban a cellphones at work-places is not new. But workers at Reliance Industries' Naroda unit in Ahmedabad did not like the idea. Protesting the management's decision to limit the use of cellphones on the factory premises citing "security apprehensions", over 5,000 workers of the unit went on a flash strike demanding revocation of the order apart from a revision of salaries. RIL spokesperson confirmed that the management had issued an official notification "restricting the entry of workers into the plant with cellphones on account of security concerns" some days back. And though "90% of the employees of the unit were in complete agreement", some trade union leaders objected. " These people have been attempting to prevent even those workers who had no objection to the notification from entering the factory premises." The spokesperson also claimed that the notification restricting the use of cellphones had subsequently been withdrawn. "Despite this, some people have been trying to use this a reason for creating trouble," he said. He, however, maintained that the agitation had not disrupted work at the plant. Business Manager
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HR News Cost cutting exercise at Jet
Employees to take one unpaid leave a month Jet Airway-saddled with huge debt is cutting corners to stay afloat. Apart from disallowing business class passengers from using lounges, it is selling off expensive cutlery and lines to staff to replace with cheaper ones and asking its personnel to take one unpaid leave every month. The Airline’s wage bill has been on the rise. For the second quarter, its staff cost rose 27% to Rs.407 crore on sales of Rs.3,293.54 crore with aviation impacted by rising fuel and airport charges, a depreciating rupees vis-à-vis the dollar and general economic slow down, Jet Airways is continually looking at lowering its unit costs and improving productivity. Experts say the current cost cutting measures are a double edged sword for Jet. “Measures like withdrawing airport lounge access, changing cutlery and lines will, at best give the airline cost saving of 1%. While they save on costs, they run the risk of losing passengers. A passenger who pays the full fare, especially business class, expects top quality service.
With wages increase, workers fell out of EPF The weakest sections of the workforce now earn more money with state governments hiking minimum wages, but they are no longer eligible for mandatory social security benefits like provident fund, pension. The only official social security system for the working class, under the aegis of the Employees’ Provident Fund Organization (EPFO), covers workers earning up to Rs.6500 per month. But lakhs of semi-skilled and skilled employee as well as non-matriculate clerical and supervisory staffers now earn over Rs.7000 per month in states like Delhi that have recently raised minimum wages. To abuse the provisions of EPF, in the national capital region, several firms in industries like buildings and construction are citing the higher minimum wages as an excuse to keep workers out of the EPF net, which goes against the spirit of the law which didn’t envisage such exclusions. The law did not specify any wage ceiling for workers to be eligible for PF benefits. However, the rules for scheme framed under the law – the EPF, the employees’ deposit-linked insurance scheme-spell out the maximum salary for statutory coverage by all firms hiring over 20 workers. The monthly wage ceiling for such cover under the three EPFO schemes was last revised in June 2001, when lit was raised from Rs.5,000 to 6,500. In December 2009, the labour ministry had sought to revise the ceiling upwards to Rs15000 to keep pace with market realities and other welfare scheme like the Employees’ state Insurance corporation. But the proposal is yet to move forward due to concerns over the impact such a ceiling revision will have on the pension scheme’s liabilities.
ITC Workforce Wedded for Life Half of ITC’s 7000-odd managers have been with the tobacco, hotels and consumer products enterprises for more than a quarter of century. Attrition at senior management levels - from CEO to business heads - has been zero for at least 15 years now. The last time ITC hired to fill up the top deck was 23 years ago when it roped in S Sivakumar from a farmers’ co-operative to conceptualise the path breaking eChoupal model. And perhaps fittingly, Anand Nayak, chief of human resources, has been with the Kolkata-Head quartered consumer good giant for almost four decades. Meet the lifers at perhaps the only corporation amongst the top tier of India Inc that has so many managers who dedicate their entire professional life to a single company. Hindustan Unilever (HUL) is the only other size able Indian operation that comes close to matching ITC’s ability to keep the brass together in such huge numbers for as long a time. Half of HUL’s 1,500 managers are lifers. At senior management levels, it goes up to 60% although if you combine mid and senior level managers, it comes down to a third. HUL’s overall attrition rate is 5% and of late it has lost senior managers to rivals. 64
Business Manager
March 2012
IT, ITeS industry likely to give singledigit pay hikes If employees of the $76-billion Indian IT/ITeS industry were expecting good hikes this year, they are in for a big disappointment. Uncertain global economic conditions and the possibility of lower-than-anticipated growth for the sector may take a hit on wage increments, say head honchos of IT firms and human resource experts. While hikes were in the range of 11-15% last year, this year’s increments are not likely to exceed the mid to high single-digit range. Appraisals are also likely to be tougher, with no hikes at all for average performers. Among the top-tier IT firms, Infosys has already confirmed that the possibility of hikes similar to last year are bleak. V Balakrishnan, chief financial officer, Infosys, had recently said, “We have to take a view on next year’s growth. In all likelihood, wage hikes will be in higher single digits nest year and not in double digits. This is likely to happen for the whole industry.” Mid-tier IT firms are also expecting hikes to be subdued. MphasiS, for one, says it expects hikes to be in the range of 5-8%. “Employees recognize market conditions and understand things will not be like last year. The industry average will be 5-8% and will be somewhere in that range,” says Gopinathan Padmanabhan, executive vice president and head, global delivery, MphasiS. Last year, MphasiS had doled out hikes in the 12-15% range. Infosys had given hikes at an average of 10-13% across levels, while for Wipro, hikes were between 12% and 15%. HCL Technologies gave 12-14% hikes. But even these single-digit hikes will be reserved only for top performers. Average performers may have to brace for the possibility of not getting a raise at all this year. “Hikes will be limited to 10% at best for top performers and those who are not amongst the top will not get hikes at all. Business leaders will give a much stronger consideration to return on investment of each employee,” says Sangeeta Lala, senior vice-president, sourcing, of staffing company Team Lease Services. According to experts, the variable pay component of salaries will be increased for employees across the board, with more performancelinked components coming in. Says Ronesh Puri, managing director of head hunting firm Executive Access, “Variable component of the salary is likely to go up by 10% this year. Hikes will be based more on the performance and variable side.” At present, 10-20% of an employee’s overall CTC falls under variable pay. Puri’ projects hikes to be in the range of 6-8%. “With margins under pressure, flexibility to dole out hikes is far lower across the tier-I and tier-II companies. Things don’t look bright going forward and the environment is also not stable enough to make good hikes affordable,” he adds. However, some are of the view that the gloomy appraisal scenario may be restricted to IT services only. Those working in niche functions, such as Products engineering, may see relatively bigger jumps. “People working in niche segment, such as IT Products Company and specialized jobs, can expect hikes between 12% and 15%. For services firms it will be much less,” says Aditya Naranyana Mishra, president, staffing, Ma Foi Randstad. During the previous recession in 2008, firms had postpones hikes till they has a clearer picture of where their businesses were heading. This year, too, there may be a possibility of such delays. “Timing of the appraisals is dependent on how the world turns out. For instance, in 2008, hikes were effected in October and not in April,” says Balakrishanan of Infosys.