Editor’s Note
Women Power inally Women in HR have made India Inc. to believe that this function is no more a male domain and it is done through their sensibilities, commitment and leadership acumen. The changing attitude of organizations also ratify the perspective that women in HR can very well climb to the top of the corporate ladder. No doubt that the journey of women from home manager (HM) to human resource manager (HRM) has not been very easy in the back drop of cultural context but social change coupled with determination and believing in self has opened the doors for women to attain senior roles in Corporate India. The visibility of HR women at higher levels has been slow but not disappointing as compared to last two decades. In fact whatever changes in the perception of India Inc. have occurred, it was only in these two decades when MNCs entered the country and encouraged gender diversity. Many research studies on women mangers in India have repeatedly revealed that the strengths making them successful at work are their ability to perceive situations, multitasking, empathy, crisis management skills, collaborative work style and sensitivity in relationship. But it has not been so easy for women to achieve respect and social /workplace acceptability. The journey towards corporate higher up is not devoid of any hurdles still there are many mental, social and behavioral challenges lie ahead of women in the career world. Few are due to social and cultural taboos, whereas others are due to self behavior. Social and cultural taboos include the mindset of families where daughter is still treated no.2 in comparison to son in the family. Many qualified women do not reach to the top primarily due to the work environment essentially developed over decades in favor of men. Long unpredictable work hours, discriminatory practices, macho culture and gender stereotyping are deeply embedded at many workplaces. Self behavior related challenges are about attempt to pleasing everyone at workplace taking more and more responsibilities and not fully leveraging their team. It also becomes challenge when women interpret leadership as quality that requires harsh / strong action against their values and beliefs trying to copy male counterparts' behavior. It is also seen that women do not speak out and hold back when they are confronted in many situations.Women HR leaders need to choose appropriate situations to speak up and make their presence meaningful. But our Women HR leaders of this anniversary issue have proved that glass ceiling stands shattered and is no longer a barrier as they stepped in with more knowledge strategic function across the globe as they believe in self with high confidence and "why not" attitude.They successfully strike a fine work life balance and handle social pressures with the support of their husbands, family members and excellent home environment. BM salutes to women power and recognizes their contribution towards the growth of organizations and nurturing human power. Now the time has come where providing opportunities to women in organisation is not a 'Nice to have' any more, it is 'must have'. If you like it let us know. If not, well, let us know that too. Happy Reading!
F
Anil Kaushik
Readers’ Response
Comprehensive View Your cover feature on Hiring practices, attrition and retention presents good insight and Compel the readers to analyse the practices they have which directly impact the attrition and retention. It is right that hiring practices are Considered less important than other HR interventions. I am of the opinion that all employee related problems are some how and some where related to the hiring practices of the organization. Other surveys also indicate and ratify your survey findings. Man Power survey also indicated that hiring in India will remain robust in coming three months. Employers across four regions and seven sectors reported positive hiring plans . Most opportunities are expected in service, finance, real estate and Insurance sectors whereas weakest hiring plans are reported in wholesale and retail trade sector. Sumitra, Noida
Hiring Impact
Mostly the top management is very much inclined to go in for the cream among fresh graduates and tradesmen. The same is the case with experienced candidates as companies tend to prefer candidates who have worked with good companies. Due to cultural mismatch between the previous and current company, the candidate feels uncomfortable and also demotivates his colleagues all the time. Such a person is very much unlikely to remain with the company for a long time. An employee who is not technically sound or is a poor team player but has somehow managed to enter the organization due to faulty screening process, is also likely to quit within the first 6 months. Jaspreet Singh Janeja, e-mail
State of Confusion I have read the cover feature with survey findings on hiring, pay hikes and attrition. After that many other surveys have also comeup with their findings. I can say that these findings have only added to confusion because some say that hiring is up where other say that employers may start trimming employees as slow down begins to bite. Don’t know what is the real picture. Main power survey including yours & others indicate positive hiring. Contrary to it, ETIG study of companies indicate that indian companies are focusing on trimming staff costs to wheather the impact of an
economic slowdown and to maintain their competitiveness in the face of a slide in investments. According to study the share of employee cost to sales ratio of BSE 500 companies has remained to 7.8% which is the lowest since 2008. Gunjan Mehta, Bangalore
Concern It is a matter of concern that IT companies have deferred campus hiring by three months. If it is a clue that industry has started facing slowdown, campus recruitment may effect badly. Number of companies have also delayed on-boarding process for 2010 recruits. It should have started by now. These signals are not good for campus recruitments. P.S. Gupta, Meerut
Violence and IR The article by Dr. G.P. Naik & Dr. K. Janardhanam has come up with good insights for employers and employees who are always confused to assess the resaons of violence in industrial relations.Authors have very clearly put the possible reasons of workers resorting to violence and also a piece of advice to employers not to create situations where workers are pushed to walls . The article is an eye-opener. If employers and managers show sensitivity and empathy in handling employee grievances, there become negligible chances of employees resorting to violence. B. Murari, Ahemdabad
Strategic IR Case study by anil malik is enough to learn tricks of handiling greedy union president. Sometimes you need to make such people understand in their language they understand.Greed has no limits and if union leader becomes greedy, and not handled strongly, it will be a perennial problem. Rabindra Singh, Hardwar
Indranil Banerjee- BM Hon’y Research Lead Indranil Banerjee has always been very instrumental and supportive for quality contents of Business Manager. BM acknowledges Mr. Banerjee’s contribution. Now Indranil would be Hon’y Research Lead to multiply contents diversity.
Readers are invited to comment on articles published in BM through email at : bmalwar@yahoo.com, bmalwar@gmail.com 2
Business Manager
July 2012
Inside
COVER Feature
July 2012 Vol. 15 No. 1 Chief Editor ANIL KAUSHIK
Smita Dash Sahoo
Associate Editor Anjana Anil Hon'y Editorial Board Dr. T.V. Rao Dr. Rajen Mehrotra Dr. V.P. Singh H. L. Kumar
Mandeep Maitra
Hon’y Research Lead Indranil Banerjee indranil.hr@gmail.com
DELHI : F- 482,Vikaspuri, New Delhi-18 GHAZIABAD : A - 39, Lohia Nagar, Naya Ghaziabad (UP)
Women
HR Leaders
Aparna Sharma
Dr. Tanvi Gautam
Dr. Tanaya Mishra
Dr. Shalini Sarin
Hon'y Co-ordinators A.S. Sharma - Gurgaon assharma@jurishr.com
Pankaj Pradeep- Pune Pankaj.Pradeep@fiapl.com
Mihir Gosalia- Mumbai mihir@mihirgosalia.com
Deep Sikha Chakravorty-Kolkata cheerpom@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 necessarily of the Publisher/Editor. While every effort is made to have no mistake in the magazine, errors do occur. Publishers do not own any responsibility for the losses or damages caused to any one due to such ommissions or errors. Annual Subscription 900/- through DD (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 Mob.: 09785585134 www.businessmanager.co.in E-mail : bmalwar@yahoo.com, bmalwar@gmail.com Published on 1st of Every Month
Dr. Sujaya Banerjee
Padma Singh
Sushmita Basu
The HR Women-Celebrating Success -Smita Dash Sahoo In the galaxy of stars through difficulties - Aparna Sharma Breaking the moulds all through - Mandeep Maitra Power of believing in self - Dr. Tanvi Gautam Winning Isn't Everything, but Wanting to Win is - Dr. Shalini Sarin Being Professional handling tough situations... - Dr. Tanaya Mishra Be Woman & Write your destiny - Dr. Sujaya Banerjee Transforming from Home Manager to HR Manager - Padma Singh Challenging journey of establishing business HR - Sushmita Basu Women- The Natural Leaders - A.S. Sharma
pg. 09-33
Inside
Surrogate HR
Great Place to Work ® & Edenred study on Rewards and Recognition
What make Organisations Best for R & R?
pg. 05
Developing A Compelling Employees Value Proposition pg. 34
What is an employee value proposition? Simply put E.V.P is an employee's perspective or what is in it for me to work here? and an employer's communicated promise to its employees. An article by Chinmay Kumar Podder.
Spirituality In Corporate Governance Spiritual leadership is moving leaders from managing employees to inspiring employees, a critical component of transformational leadership. It integrates transformational and servant leadership with spiritual, ethical, and values-based leadership models into a combination of core competencies. An article by Debaprasad Chattopadhyay.
pg. 37
pg. 39 Govt. Notifications
pg. 40
Helpline
pg. 41
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.
The Employee’ Pension Scheme, 1995
Know About It!
There is no provision in the EPS 1995 to file 'date of birth' in the office records.Therefore, any information about date of birth which is given under the EPF Scheme 1952, is taken as basic . data for EPS 1995. An article by Ram Niwas Bairwa.
pg. 52
Managing Discipline
Unenumerated Misconducts In majority of judicial verdicts, it is held and ruled that an employer is estopped from taking strict action in the event of a delinquent committing a misconduct which does not find place in the list of acts and omissions that constitute misconduct in the Standing Orders or Service Rules. An article by Shantimal Jain.
pg. 55
pg. 57
Latest verdicts from different High Courts and Supreme Court effecting employer employee relations.
EVENT REPORT
Valuing workforce & visionary leadership
NHRDN Silver Jubilee Conference at Kolkata pg. 61
The case analysis refers to case study ‘Strategic handling of Union President’s greed’ by Anil malik published in June 12 issue by Mihir Gosalia.
& HR News
The case highlights various challenges which came across the journey from being an employee to becoming an employer.The establishment of a brand in a competitive market is an unavoidable challenge.
Book Review Business Manager
July 2012
pg. 64
Air India plans to float VRS
Dream Big & Dare to Step In
4
Latest from the Courts
CASE ANALYSIS
CASE STUDY
pg. 59
Judgments pg. 43
pg. 63
Getting right persons still difficult for employers : survey Workers' Strike Hits Arvind Production Air India may exclude commanders from 'workmen' category Bajaj Auto Uttarakhand workers threaten stir over salary hike
Great Place to Work 速 & Edenred study on Rewards and Recognition
What make Organisations
Best for R & R? Top Ten Companies in Rewards & Recognition TPG Software Pvt. Ltd. (Information Technology) Intuit Technologies Services Pvt. Ltd. (Information Technology) American Express India Pvt. Ltd. (Financial Services) Aditi Technologies Pvt. Ltd. (Information Technology) Intel Technology India Pvt. Ltd. (Information Technology) JM Financial Services Pvt. Ltd. (Financial Services) Music Broadcast Private Limited (Media) Reliance Commercial Finance (Financial Services) SAP Labs India Pvt. Ltd. (Information Technology) Qualcomm India Pvt. Ltd. (Telecommunication)
W
orkforce today is more articulate about their needs. Employees desire the best of everything- competitive salaries, comfortable & aspirational lifestyles, job security, career enhancement options, work-life balance, and so on. Competition for talent is ever increasing and organisations need to have well-defined philosophies and strategies to help them develop innovative ways of tapping intrinsic motivation of employees by engaging their hearts and minds. While many organisations are struggling to make sufficient progress in this direction, there are organisations that have institutionalized robust practices and effective processes in different people practice areas that go a long way in positively impacting employee perception. India's Best Companies for Rewards and Recognition was conceptualised to recognize companies who are leading the way in the area of Rewards and Recognition for us learn from. Organizations for this study are assessed on three parameters: Trust, Pride & camaraderie, which are further broken into various dimensions and sub-dimensions. To ensure that above mentioned parameters are experienced by employees, an organisations needs to undertake ahost of activities and institutionalize a number of practices. They do so in 9 People Practice Areas, namely Hiring, Inspiring, Speaking, Listening, Thanking, Developing, Caring, Celebrating and Sharing, through which people managers in the best workplaces enable their employees to experience the organization. With the objective of recognizing organizations with outstanding rewards and recognition practices, Great Place To Work速 Institute, in collaboration with Edenred, has launched a first-of-its-kind study called " India's Best Companies for Rewards and Recognition".
Characteristics of the most positively perceived rewards and recognition programmes Research indicates that the most critical characteristics of effective rewards and recognition programmes are the fairness, equity and justice inherent in these programmes. This sense of equity is both
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What make Organisations Best for R & R?
internal within the organization and external with respect to comparable organizations operating in the marketplace. There are three aspects of equity and fairness which are relevant here. The absence of these three aspects hurts the effectiveness of rewards and recognition programmes significantly.
Mr. Prasenjit Bhattacharya, CEO Great Place to Work 速 Institute in India says: This Study is an attempt to study what the best workplaces in this area do differently and to encourage more organizations to improve their rewards and recognition practices. The study has brought focused insights in this important area for organizations who want to use the power of appropriate rewards and recognition to create high performing organizations."
a. Distributive justice: The proportion in which financial resources and gains/profits of the organization are distributed between various stakeholders such as promoters/ owners/ investors/ shareholders, managers and employees at different levels in the organization, belonging to different divisions/functions/ locations, etc., define distributive justice. If some stakeholders are "disproportionately" rewarded (in the eyes of the other stakeholders), then the effectiveness of the rewards programme can suffer. Another aspect of distributive, as well as procedural justice, is that differentiation in rewards and recognition reflects true and significant differentiation in performance and contribution. b. Procedural Justice: Answers to the following questions indicate whether requisite procedural justice exists, the absence of which hurt the effectiveness of the programmesFor what actions/behaviours/efforts and results/ contribution / performance are rewards and recognition provided? Are only results rewarded and recognized, or do they apply to sustained effort as well? How fairly, transparently and correctly are efforts and results measured? Does everyone get sufficient opportunities to perform and to be recognized and rewarded? How does the organization ensure that results achieved through wrong behaviours and non-performing people don't get rewarded or recognized due to favouritism, nepotism and organizational politics? c. Interactional Justice: This is about the human element of fairness and justice which forms the capstone of effective rewards and recognition programmes. Do the recipients of rewards and recognition (and even those who
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don't receive rewards at any point in time) feel the sense of being appreciated and thanked genuinely from the bottom of the heart by those who are in a position to reward and recognize? Some basic fundamentals that organisations seem to apply are: Set a clear benchmark for the average level of compensation within the organization across job families, job levels, functions and businesses and expected level of performance, which determines pay competitiveness in the industry. Determine "bottom-line goals" of the company and tie people's pay to the goals: This help an organisation to reward for performance that directly contributes to its business objectives. This is done by introducing the aspect of variable pay linked to achievement of business outcomes. Ensuring the line of sight of the goals/business outcomes is of key importance to make the programme effective. Line of sight here refers to the direct control/lability of (each) employee to influence the achievement of business goals through his/her abilities and efforts. To ensure that rewards and recognition systems at an organisation are effective, it needs to have programs that reinforce company values and goals and encourages employees to act in line with such goals whilst also emphasizing the importance of achieving these goals.
What to recognize and how to make recognition/appreciation heartfelt? Recognition has been found to have direct impact on the kind of behaviour reinforced in the organisation. Therefore, it is always necessary for organisation to think through the areas for which they want to reward/recognize their employees. It is also of utmost importance that the desirable outcomes are achieved and can be tracked and shared. Organizations should be wary of "unwittingly encouraging or tempting" employees to behave and act in an undesirable or unethical manner to win an award.
What make Organisations Best for R & R?
Some of the areas commonly recognized and rewarded in organisations are Outstanding sales performance, Delivery excellence: in time, within budget & Years of service.
Mr. Sandeep Banerjee, CEO Edeured, said, "this benchmark study is to honour those organizations which have set an example by creating programs, practices, elements and dimensions that define their intent to reward and recognize their employees. This study salutes the business and leadership that has championed programs in order to maximize the effectiveness of rewards and recognition, which is a space we closely associate with and have over 50 years of experience in, globally."
The categories in which companies reward employees depend on the nature of business of the organisation. The alignment of these systems with organisation strategy is what help the organisation to achieve the desired impact of their rewards and recognition programmes. For example, the R&D organisations have rewards associated with product innovations, and there are awards to incentivize sales, etc. Organisations also recognize areas like customer service excellence, team excellence, innovations and ideas that have lasting impact on the business. An important aspect of execution is recognizing and rewarding in such a way that every employee feels valuable and is proud of the achievement. The spirit behind it should come alive. Togetherness and timing are also critical for effective recognition. It is, therefore an important challenge to ensure a good balance between promptness in recognizing and doing it in such a way that it becomes a proud moment.
Creating a chance for all to be recognized Organisations now understand the power of recognition and appreciation. They understand that it requires a lot of effort on the part of employees to continuously contribute towards organization's success. It is the recognition or words of praise that give an employee the push to go on. Oragnisations now are creating platforms for all to recognize each other, which includes peer to peer and junior to senior recognition.
Transparency and communication in the effectiveness rewards and recognition system Rewards and Recognition motivate employees for results only if they are perceived to be fair. It is found that the perception of unfairness associated with Rewards and Recognition discourages employees. To be transparent, organisations need to ensure constant and comprehensive communication around rewards and recognition. Use of intranet and e-mail for communication related to rewards and recognition is a common practice.
Best workplace differentiate themselves by using additional methods like posters, teasers and newsletters for the same. Extensive information about Rewards and Recognition is provided during the induction process in these organisations. The best workplaces also conduct periodic training/ education sessions to equip managers and employees to use various rewards and recognition methods effectively. Intuit uses videos and online tutorials to educate employees about rewards and recognition. Measuring effectiveness of the initiatives and programs is the key to ensuring that an organisation gets right outcomes for the money and efforts that it invests on the absence of such measures there is possibility to lose focus of the objective with which an initiative/Program was started, and thus, it may not add the expected value. Informal feedback from employees and employees surveys are the most common methods used by organisations to measure the effectiveness of Rewards and Recognition Programs. The usage of different methods to recognize also provides an important input to organisations on how effective/useful the employees are finding these methods. In addition to measuring progress of employee performance towards corporate goals, well-defined performance measurement Systems help to gauge employee reception, understanding and buy-in for reward systems. This critical feedback can help managers make adjustments necessary to drive improvements and avoid unforeseen undesirable behaviours and actions that negatively impact corporate goals and the organization's culture. Feedback taken from employees through various other channels also helps understand the effectiveness of the rewards and recognition programs. Employees have the opportunity to share their feedback through forums like HR Open Houses, skip level meetings, etc. Fall in percentage of attrition is considered to be another significant input that speaks about the overall culture of the organisation of which appreciation and recognition are an essential part. Some organisations have seen a decrease in turnover of employees from identified high performance Business Manager
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What make Organisations Best for R & R?
category post the implementation of rewards in the category, which clearly exhibits the effectiveness of system. The way rewards and recognition are designed may sometimes boost individual performance and achievement of short term goals but may harm team work, collaboration and organisation growth and sustainability in the longer run. On the other hand, team and organisation level, and hence may affect individual productivity. Managers are at times not comfortable in discussing and sharing the 'not-so-good news' with employees. Therefore, the challenge of the organizations is to equip their managers to ensure that they maintain a balance and become 'good/effective' managers instead of aspiring to be 'nice/populist' managers. Managers need to exercise due diligence in implementing the programs that require their involvement. Diluting standards in the quest of popularity can do a lot of harm. Some managers complain that they don't get time to complete the necessary paper work and it is difficult for them to manage rewards and recognition formalities for a large team. In some cases rewards programs do more harm than good when people believe that they are being compared negatively to reward winners, similar is the case with Incentive Pay (Pay for Performance). If it is perceived by employees that many winners have won their rewards more on account of favouritism, nepotism and politics, then the programme is likely to have adverse impact on morale, motivation and performance. It is hard to balance between promptness and trying to make the recognition individualized, especially keeping in mind the hectic schedules. The organisations which have global presence find it difficult to balance between consistency/uniformity and local needs. Creating a consistency across different teams and Business Units is also a challenge. Many times different Business Units interpret guidelines differently. Teams sometimes find themselves getting constrained in applying creativity to the extent they would have liked to. The rewards and recognition ownership/implementation pattern in the best workplaces shows that to ensure effective and widespread reach, organisations should decentralize practices and rest the responsibility of recognition with team leaders, peers and juniors rather thank with a distant authority or essentially the HR function. They need to monitor implementation to ensure that there are no unjustifiable differences in teams. They need to define right metrics of effectiveness and measure and track them to ensure that recognition has positive impact on performance.
Major findings and key insights: 1. Effective rewards and recognition practices need to reflect a company's culture (basic values & beliefs ) and integrate well with the nature of its business, strategy and goals.
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2. Absence of fairness significantly hurts employee perception and efficacy of R&R practices. Absence of fairness is evident by factors like a. Insufficient external parity, b. Inadequate internal equity c. Lack of impartiality in assessment, d. Lack of clarity of desired actions & results which will be rewarded, and e. Inadequate transparency on how and why some employees get rewarded. 3. Recognition practices (which are essentially non-monetary represent great unutilized potential, as recognition: a. can be given both publicly and privately, b. does not require big budget, c. can be provided not only by the organization and its senior leaders, but also by peers and juniors, d. can be more proximate to the actions and results, and hence strongly reinforcing, e. can be done frequently Most companies are not utilizing the potential of recognition sufficiently. 4. Empowering and encouraging people managers and peers to provide recognition makes recognition practices more effective. 5. Involving employees while deciding on varied ways in which rewards and recognition can be provided, instead of taking unilateral decisions makes R&R programmes much more effective. 6. Using rewards and recognition, particularly recognition, to drive desirable behaviours and efforts, not just the results which go beyond sales performance or customer satisfaction, make R&R practices more impactful. 7. Making rewards and recognition more individualized or personalized, without violating the essence of fairness to match with the individual's preferences and personality make the rewards and recognition more meaningful and motivating. 8. Setting realistic, achievable and line of sight goals drive success. Rewards for goals that seem unachievable do not motivate. 9. It is necessary to strive to strike a balance between driving and rewarding individual results and team performance because only focusing on "individual achievements and rewards/recognition" can harm team work and collaboration, while only focusing on team achievements without encouraging and rewarding individual excellence can affect individual drive and productivity. To sum up, rewards and recognition programmers must connect to the emerging need and expectations of the workforce and link them with the company's overall goals and strategies to be successful. BM
COVER Feature
Smita Dash Sahoo
Mandeep Maitra
Women
HR Leaders
Dr. Tanvi Gautam
Dr. Tanaya Mishra
Dr. Shalini Sarin
Dr. Sujaya Banerjee
Aparna Sharma
Padma Singh
Sushmita Basu
COVER Feature Smita Dash Sahoo Chief Human Resources Officer, IFGL Refractories Ltd., Kolkata
Smita has about 20 years of experience in Human Resources function in manufacturing, Banking, Microfinance, Consumer Finance and Academics in Public sector, Private sector and MNC. Recently she has joined IFGL Refractories Limited, a listed company and present globally, as the Chief Human Resources Officer.
The HR Women-
Celebrating Success 'P
ersonnel' was a field which was largely dominated by men in India. Women hardly could take up this profession as it was mostly an IR role in manufacturing sector and unionised environment. When the services sector came up in a big way and mildly unionised companies started looking beyond IR, IR & HR became two distinct branches of the Personnel function. With a new role of HR Manager and India opening up to MNCs, ladies brought in true elegance and unmatched finesse to such roles. With time, women also entered into Roles where IR environment was less militant, like the Banking & Insurance Sector. This gave them work exposure in interacting with the Unions and during this fascinating period, she discovered that her natural skills and inherent tact helped her in professional effectiveness. And, she started on the path of success; success initially not in the form of promotions, higher positions and power but in the form of effectiveness, efficiency and management skills. Successful women in HR! How can success be defined? Is it about the brands one has worked with, or the pay packet or the years of service, or a perception? If so, is it a perception of the individual about self or the people about the individual? People may call an individual successful, but that individual may still be chasing success. Is success then a state of mind, just like happiness is a state of being? Or is success a continuous process linked to each one's professional needs? I think it is a continuous state of celebration, and in my celebrations, I briefly present to you how the first 3 organisations, I got associated with, played a vital role in making the career of an HR woman:
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(1) National Aluminium Co. Ltd (NALCO), Orissa, gave me THE professional break, after my M.A & M. Phil in Personnel Management, as Trainee (HRD) through Campus Recruitment, during times when one year's experience was always 'desirable' but there was hardly any worthwhile place where this 'desirability' could be acquired. I learnt the practical HRD function in NALCO. Let me share my genuine thoughts here the way NALCO helped me in acquiring 'desirability' 20 years back, is desirable from many companies even today. (2) Fourteen years! Strikes a chord in my heart! It is the stint I had in a Nationalised Bank and I say this with great pride that whatever expertise I gained on HR, IR, Administration, Accounting, Organisational Discipline, Vigilance, Welfare, policies, processes, systems etc, is from here. When I appeared at the Western Regional office of Banking Service Recruitment Board (BSRB) at Mumbai for the interview, on qualifying in the All India written examination, I knew little that I would be taken by Bank of Maharashtra, while I was targeting Bank of India. The trust that it laid on me built confidence in me, and crafted me as a professional. And my genuine thoughts are - the way I was taken care at Bank of Maharashtra, I fear I may not be anywhere. (3) A big credit goes to a Janalakshmi Financial Services Limited (JFSL), a microfinance company at Bangalore for being able to pull me out of a secure Bank job and from the realms of loyalty. It was an offer that sent me looking within and asking - How can I? Why should I? What am I looking for? What am I missing? All these questions opened a new channel of communication with my own inner self and deeper
The HR Women-Celebrating Success -Smita Dash Sahoo
Having been an athlete, sportswoman and an NCC cadet in school/college, I had one basic rule - till you have reached the finishing line, game is on and you can win. Till the last second, don't give up.
COVER Feature
needs. The reason for change was to fix the learning curve and to explore the private sector. But the real reason was my need to contribute to the well-being of the poor. The job was to get HR going as a function. But the real job I saw was the associated challenges. Thus, I got introduced to my own self. My genuine thanks to this organisation - the way this company gave me an opportunity and supported me in adjusting from public to private sector, secure to insecure environment, and administrative to strategic position, may many other companies give such a career break to HR women professionals.
SHARING THE EMPLOYMENT SPACE RESERVATIONS & APPREHENSIONS This is how any career can be made, man or woman, HR or Sales. Trust is, as long as women have merit, space will be made for them. Those societies and institutions, who have shared spaces smartly, have undergone a wholesome growth and a sustained development. Problem arises when the demand is more than the supply. And in that case, is this a man's world or a women's? Does an HR woman get selected for a job when she equals a male candidate in every respect? There are reservations that women would like a back-end job, or may not sit late, or wouldn't attend parties with clients, or may not be able to handle the unions or may not be able to handle the recruitment vertical due to excessive travel etc. Additional arrangements like pick and drop service, separate cost on accommodation during travel, etc. may be warranted. All this extra care, isn't it an avoidable headache (and cost)? How organisations think about employment of women depends upon their maturity levels. When there really are safety issues, haven't legislations like Factories Act 1948 disallowed employment of women near dangerous machines?
ORIENTATION OF WOMEN PROFESSIONALS Because of these reservations and apprehensions, do woman in general and an HR woman in particular, have to compromise on her values or sacrifice on her career growth? Or has she been unconcerned about career growth, simply wanting to make the two ends meet? From my experience I find that there are broadly two types of women professionalsEngagement Oriented and Career Oriented, and the Career Oriented Women are of two kinds - Goal Oriented and Value Oriented. In brief they can be explained as below: 1) Engagement Oriented Such women are driven by the need for a balance between their personal and professional lives. They are happy to be gainfully engaged and do not look
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COVER Feature
The HR Women-Celebrating Success -Smita Dash Sahoo
beyond that. They close their minds to career growth as they are not prepared to shoulder higher responsibilities, for fear of imbalance in the main two fronts of their life. Such women however, may be driven by values which are anyways, demonstrated not for career growth. 2) Career Oriented - (A) 'Career Goal' Oriented - Such women have a clear career goal and are obsessed to reach there as soon as possible. What vehicle they take, what means they adopt everything depends on this obsession. They thus, keep aligning and realigning their values, principles, philosophies etc., to the environmental demands and develop high coping capabilities to avoid an identity crisis. Internally and externally they are driven only by their Career Goal. (B) Value Oriented - Such women professionals at the outset lay down certain core script consisting of the Dos and Don'ts based on their value system and principles of life, and would not compromise on them for anything. They project themselves through their value system. Internally they are Value oriented and externally Task oriented. They firmly believe that hard and smart work with high values build career. Due to these orientations, they acquire knowledge, skills and expertise which project them into the limelight. They get identified as talents and attain leadership qualities which automatically take care of their career growth. There could be women who initially were Engagement Oriented but became Career Oriented in later part of their lives and vice-versa. So there could be shift from one orientation to another. It is advisable to either be Engagement oriented with strong value system, or Value Oriented Career woman. Lot of credit for the success would go to the men in the form of father, brother, husband, friend, and son in personal lives and Boss, peer and team member or subordinate in professional lives. Those who get the support of men as well as women in both fronts of their lives thrive even better.
CHALLENGES FOR WOMEN IN CAREER For women employees in India, Work Life Balance is of utmost importance and several times I found women struggling to complete their work within office hours as they could not dedicate 2-3 hours of extra time that the men did. They also miss out on the bonding that generally happens after office hours among the peers and also with the boss. Women HR professionals might not be able to take up certain roles or may be facing challenges in roles that require odd or long working hours and which involve excessive travels. Security is a major issue. We have found so many incidences of criminal attacks on women of late. More than conducive working environment, safe social environment is the, greatest challenge and, need for women professional today. Yes, there have been challenges and they will continue to exist. There could be professional exploitation or abuse too. There could be demand for favours in exchange of some genuine needs. There could even be harassment of various types. But, doesn't she face it outside work place too; let us say in school, college, travel route or neighbourhood, 12
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thus being aware how to tackle such situations. Still then, providing a safe and secure work environment is an obligation of every organisation, as providing a safe and secure living environment an obligation of every society.
HR LEARNING - TIPS FOR THE (HR) WOMAN I have had difficult times too. There have been times when my self-confidence appeared to have been shattered. At times I would be nursing my injuries while getting advised to be more tactful. But all these are part of the game. Having been an athlete, sportswoman and an NCC cadet in school/college, I had one basic rule - till you have reached the finishing line, game is on and you can win. Till the last second, don't give up. But most important is, fight for the right cause in the right manner at the right time. I share below some of my learnings as an HR woman professional: (1) A pleasant personality with a strong character and positive attitude helps in being effective. (2) Be a Value Oriented career woman. Be flexible within rigid boundaries. (3) Learn to say 'NO', wherever required, but in a positive way. It should not hurt egos. (4) There is something to learn from every transaction in life. Be a continuous learner. (5) Designations are immaterial, the Role you get to play is important. (6) There will be good and bad bosses, peers, subordinates, situations, conditions, climate, environment and culture in every organisation. When you encounter the bad, face it and remain good with people. Don't quit, because things settle down with time and every organisation has its share of good and bad. Stick on, as what matters is the Role you play. (7) First satisfy the job and then look for job satisfaction.
HR TAILOR AND SCULPTOR Has the HR woman succeeded on both fronts? Yes, to an extent that could be possible, but the struggle is on. The most notable fact is that the skill sets which woman bring, including the emotional quotient, are unique and too well suited for certain jobs like the Human Resources. In the profession of HR, women are able to provide an environment of trust and fairness equally to both men and women. As a closing piece, let me share a secret with you - HR profession is most enjoyable when you have reached a stage in your career when you have transformed into an HR Craftsman with specialisation in Tailoring and Sculpting. 'HR Tailor' measures the needs of the organisation and stitches clothes in the name of HR policies, processes and systems to suit and fit the need. Since the organisation is in the growing stages, a periodic review is made, and necessary alterations are worked out, if possible, or then new policies, processes and systems are 'stitched' depending upon the growth of the organisation. BM
COVER Feature Aparna Sharma Director-HR, DBOI Global Services (Deutsche Bank Group)
Aparna is a Post Graduate in (PM & IR) from the Tata Institute of Social Sciences (TISS), Mumbai of the 1996 batch. She has worked with Nocil , Monsanto, Novartis & UCB before joining the Deutsche Bank group as Director-HR for 2 of their Service Centres in India. She was conferred the "WOMAN SUPER ACHIEVER" award in December 2011 by the 6th Employer Branding awards (Regional Round). Also, conferred the " HR SUPER ACHIEVER AWARD" by STAR NEWS at the 20th World HRD Congress 2012, Mumbai as part of the "HR & Leadership Awards" for Excellence in Human Resources Development at a glittering award ceremony on February 16,2012. Aparna is an active member of various professional associations like, Indian Society of Training & Development (ISTD), All India Management Association (AIMA), National Institute of Personnel Management (NIPM), National HRD Network, and Sumedhas. Currently, she has been appointed as the Honorary Treasurer of National HRD Network, Mumbai Chapter (2012-2014) and is a member of the Executive Committee. On the personal front, Aparna is a very avid reader, poetess, intrepid traveler, nature and wildlife enthusiast, amateur photographer, has a passion for gardening and a keen people collector.
In the galaxy of stars
through difficulties A
s I got to down to pen this piece went into flashback mode. What experiences have made me the professional that I am today? What were the challenges faced during a sixteen year career? I come from a conservative family where women worked but it was not actively encouraged. In the mid 1990's girls from towns like Ujjain, mostly, became homemakers after graduation. I too might have become one, were it not for the inner drive "Dare to be different"make a mark! Drawing inspiration from my doctor aunt - the World was my canvas. In hindsight, stepping into the corporate world was an accident‌. I originally wanted to join the Indian Administrative Services (IAS) but had to take on an alternate profession as I had to become financially independent early in life and owing to the stringent norms of the administrative services, time was not in my favor. This initial disappointment did not deter me and I took on the challenge head-on. After completing my graduation from TISS, I applied to a leading chemical company. During the interview told the panel that would consider joining them only if they allowed me to work on the shop floor. The panel was aghast! Why does 14
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this young girl want to commit professional harakari by working in a highly unionized environment? I was firm and am fortunate the panel reposed faith in me. It was baptism by fire. There was a new crisis every day. Workers went on a go slow on the smallest pretext for e.g. there is less sugar in tea today. I learnt to be cool under pressure, build good relations with workers and appeal to their fatherly instincts since many of them had daughters my age. It has been a roller coaster ride since then. I often reflect on experiences. What is it that drives me? 'Be a Contributor'. The intent is to add value to the organization and people that I work for/with. In short 'make a difference'. Some say you have to be born with such drive others say it can be acquired. I believe it is a combination of both. A few strands. Education is a passport to a job but your past track record is the basis for a new assignment meaning that you have to be a contributor continuously. You need an inquisitive mindset, constant hunger for knowledge and insights. Accept challenges head-on for in every solution lie rich experiences and long term rewards. It is this drive to contribute that has, mostly, enabled me to generate transformative insights which have impacted the organization in a positive and
IN THE GALAXY OF STARS THROUGH DIFFICULTIES -APARNA SHARMA
COVER Feature
Challenge is that of work life balance. Women, who work, continue to be homemakers, though not in the earlier sense, and are constantly struggling to excel in both the worlds. Support from the organization and spouse, smoothen the process although must admit that it gets very difficult at times.
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COVER Feature IN THE GALAXY OF STARS THROUGH DIFFICULTIES -APARNA SHARMA
lasting way. Sharing of knowledge has helped me evolve. By writing-speaking what you know knowledge becomes part of your DNA. Meeting students, aspiring professionals has kept me abreast with how Gen Y is thinking, tailor HR solutions to attract such talent and provoke thought within. Yet there have been many challenges along the journey. Some roles are traditionally performed by men. There are others which are more welcoming of women. Changing mindsets was a challenge. I was once told 'you cannot do this since this required me to work through the night'. I asked my senior for the brief and time frame. With the support of colleagues and better time management, completed the job before midnight. All I requested was a home drop for team which the senior readily agreed to. Similarly, I spent over twenty days with the sales team to make farmer/field visits. The farmers
I just finished reading the Geeta once, only very recently. However, as the immortal lines of Geeta quoted above speak, I have always valued Commitment, Ambition and Strive to achieve Excellence in all that I do since my childhood. I sincerely strive to make a positive difference in others lives and always continue to improve myself with truth and knowledge. Stumbling upon a profession almost by accident, three things that have worked for me in this serendipitous career choice have been; strategic perspective, involvement as a change agent and team orientation and people management. I demonstrated my strategic perspective even during my first job interview, as narrated above. As a change agent, I have played an integral part in setting up and revitalizing the human resources teams and defining the culture of the organization, in three out of my four previous
I maintain that even though I came into this profession by chance and had a second chance to get into to the administrative services, I chose not to stray from the path as I am extremely passionate about people as assets. were impressed to see a lady work shoulder to shoulder with her male colleagues that sales surged. If you have confidence in your abilities, are willing to learn, and honest to yourself about your limitations, no challenge is too big to accept. When men want to discuss a problem outside of work, they can meet for a drink after office. Found that difficult to do due to home commitments. I got around it by requesting colleagues to meet earlier over coffee/chai or closer home so that travel time is reduced. Another challenge is that of work life balance. Women, who work, continue to be homemakers, though not in the earlier sense, and are constantly struggling to excel in both the worlds. Support from the organization and spouse, smoothen the process although must admit that it gets very difficult at times. In such situations, I have sailed through with the belief that this too shall pass and given my best. I also believe that Indian women are blessed with special powers that allow them to multi-task with relative ease. Gender & now, Generational Diversity continue to be a challenge while organizations are trying various creative ways to create & retain a sustainable competent workforce.
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roles. One of the striking highlights as a change agent has been when I worked on the performance management process following the merger of one of my previous organizations. With a strategic perspective, I took the best of both organizations and created a new process for evaluating performance. In the capability development effort, there is an equally compelling story to tell. I came up with a revolutionary idea to decentralize training in collaboration with employees from the business. This not only increased my team's capacity but also created ownership and made training real for employees. The third aspect of my career that has worked for me has been my team orientation and people management skills. My colleagues vouch "Aparna is a people's person". Working with people comes naturally to me; a necessary trait, considering MY profession. I maintain that even though I came into this profession by chance and had a second chance to get into to the administrative services, I chose not to stray from the path as I am extremely passionate about people as assets. I have been able to successfully create successors in all organizations by giving autonomy, empowering staff and mentoring them. Being a woman has been a source of strength in my journey of contributing to organisations and the society at large. BM (Views are personal)
COVER Feature Mandeep Maitra Head Asia - Hot Spots Movement, Founder Karma Consulting Solutions, Singapore Former Country Head HR, Infrastructure, Admin and Corporate Social Responsibility at HDFC Bank
Mandeep currently spearheads strategy and development of Hot Spots Movement in Asia. Hot Spots Movement, founded by Professor Lynda Gratton of London Business School is a niche research and consulting team. Before starting work with Hot Spots in 2010, in a career spanning over two decades Mandeep worked in the banking and financial industry for over 18 years, consulting for two years and manufacturing for around a year. In her previous assignment where she spent close to twelve years, Mandeep had the privilege to work towards building one of the best and strongest Bank's in Asia Pacific. During her tenure the Bank grew in it's staff strength of around 1500 in 1999 to over 60,000 in 2010. At that time as a Country Head HR and Corporate Services, Mandeep was the youngest member to be part of the Management Committee and the only woman to have broken the glass ceiling in the Bank. She received various awards and accolades personally and for the institution in her career here. In the last one and half years besides working for Hot Spots Movement, Mandeep founded Karma Consulting Solutions in 2011.
Breaking the moulds all through Business Manager
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COVER Feature BREAKING THE MOULDS ALL THROUGH- MANDEEP MAITRA
The first wave of women leaders, because they were breaking new ground, adhered to many of the "rules of conduct" that spelled success for men. But the subsequent generation of women leaders who started making their way into top management, did not have to adopt the style and habits that had proved successful for men but drew on what they felt was unique to women those skills and attitudes even if seen as being "feminine" were developed from their shared experiences as women.
"I want to do HR because I think it is easy and I love meeting people" said this young lady who had come to take some career advice from me. It amused me what my last two decades has taught me that HR is anything but for the faint hearted. I thought about that night in May of 1988 prior to reporting for work the next morning at Eicher Tractors, Parwanoo when the guest house caretaker didn't let me in because he was expecting a gentleman (Mr Mandeep)as Senior Officer Personnel or working in a Tractor Gear manufacturing plant of six hundred employees that had precisely four women - a telephone operator and three secretaries, or the Union antics against the Management in the 80's era! I maintain that my baptism into HR happened at that plant in Parwanoo and that kind of experiential learning remains valuable to me till this day. I met some amazing people through the years. Icons like Prof Indira Parikh, Dr Pritam Singh, Arun Wakhlu and Anil Sachdev inspired me no end and influenced my thinking. I also had the privilege of meeting some incredible women who worked at the grass-root level. Most of these women had come from a social services background and were great athandling workers at the shopfloor. Their training helped them to strike quick rapport with the workmen and were avid at handling chronic absentees, alcoholics, poor performers and so on. They were well respected for their hard work and contribution by workmen, Union Leaders and Management alike. The girls coming from Management schools in those days mostly preferred and were given Corporate HR (Head office based) roles by most Companies (although the boys were picked for factory based / IR roles). Corporate HR roles gave a good exposure regarding policy making, campus hiring, design and implementation of staff and executive development programs and at times looking after compensation and benefits of executives (the award staff was covered by the Union Agreements). For a long time women HR professionals were thought as being good in only handling "softer issues". But then there were always exceptions in women who started breaking the mold and started being counted as being capable of handling the toughest of employee relation issues and tackling all kinds ofBusiness challenges. The first wave of women leaders, because they were breaking new ground, adhered to many of the "rules of conduct" that spelled success for men. But the subsequent generation of women leaders who started making their way into top management, did not have to adopt the style and habits that
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had proved successful for men but drew on what they felt was unique to women - those skills and attitudes even if seen as being "feminine" were developed from their shared experiences as women. At the age of twenty-seven I started reporting to the General Manager in a Bank and in another five years I was a Head of HR of another Bank reporting directly to the CEO. Being the young member of the Management Committee, getting opportunity to create a blueprint for HR and presenting the same to the Board of Directors was a high point at that age. I always maintained that it was a lot of hard work, some calculated risks to move jobs and a lot of good luck that helped me get where I got in life. Well my accomplishments were despite of me being a woman leader. Fortunately, by the turn of the century enough was being written about what were those qualities that made women leaders effective. We were being applauded for our assertiveness and persuasive skills, our ability to take risks and get things done, being more empathetic, flexible and stronger in interpersonal skills as compared to our male counterparts. Women were found to be gifted with an innate intuitive ability to read situations accurately and genuinely understand all those they were leading in an attempt to make their people feel more understood, supported and valued. From an HBR to a Cosmopolitan and now countless blogs there is much one can read about inspirational work of many unsung women personalities!One is encouraged to read that a lot of work has happened around the world towards gender equality. In America, more than 50% of the workforce are women, and globally, around 50% of graduates entering multinational companies are women. In the developed world, there are more female than male students, and on average, female students achieve greater educational qualifications than their male counterparts. Women are quickly becoming the more educated gender and are overtaking men in many fields. However, one continues to come across trends like in the graph belowwhich showsthe percentage of ambitious women in various countries as against the percentage of women who feel discriminated against. For India you will see that we have the largest percentage of ambitious women even more than US and China but at the same time we have the amongst the highest (only second to UAE) percentage of women who feel discriminated against. This is something that the Corporate World in India needs to address with utmost urgency.
COVER Feature BREAKING THE MOULDS ALL THROUGH- MANDEEP MAITRA of course had been triggered by the falling ratio of women employees in mid and senior levels. I often hear these debates at the echelons of Management about number of women at the top. In 2010, less than 5% of the world's CEOs and around 30% of managers were women. Closer home, Business Leaders and CEOs in India constantly talk about the lack of talented women leaders and also acknowledge that the Corporate World has failed women. But having said they also hold women responsible for "not displaying tenacity and an uncompromising determination to climb the professional ladder and force a corporate revolution that will give them power." Most top bosses feel exasperated that even the most talented women managers sometimes fail to fit the organizational molds and opt out of the workforce at most critical junctures.
I personally did not understand this trend like many other women leaders who make it to the top. For a long time I was busy in my career and dreaming of bigger things! But as I traveled extensively across the country and mostly in B, C, D category towns I heard some amazing sagas of personal triumph by women against all odds to stand on their own feet. Unfortunately, came across an equally large number of disturbing storiesof vexation from women employees in these centers and surprisingly also in metro cities. Little did I realize that a professionally run organization could also pose everyday challenges for women employees. But then there are all kinds of people who make up our organisations, right?Taking one step at a time over a decade I tried to champion many of the issues of these women and founded "Sisterhood of Strength". Like other diversity programs the attempt was to connect women across the organisation, build a stronger network, get role model women leaders from within and externally to mentor, coach and address existing challenges, and build a strong support system for our women employees. The need
This huge drop off at the top of the corporate ladder can be put down to a combination of personal attributes (women are viewed as lacking a strategic perspective, are not seen negotiating strongly or networking with powerful men); structural issues (women tend to join specialist roles which are not typically developmental escalators to the top); organisational culture (with 'masculine' traits overvalued in senior roles) and reasons of family structure (it is hard for women to return to a fast track career after having children, and most men are not prepared to take an equal role in bringing up children).Many of these factors look unlikely to change significantly. Perhaps the notable exception would be organisational culture and family structure, but even then it will be evolutionary, rather than revolutionary change. The focus of change in Corporates therefore has been on organizational policies, supporting systems, and infrastructure - that can provide increasing flexibilityto women at the workplace. Fortunately, there is general consensus on a macro level that we need to create a more supportive environment for women but the pace of change still seems slow. Women continue to face some challengesthat are
Suggested measures for aspiring women leaders... 1. Enlist mentors at your work place and solicit feedback on leadership techniques. 2. Establish credibility. 3. Report harassment of any kind. 4. Reflect on the feedback and work hard not to let it happen it again! Business Manager
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COVER Feature BREAKING THE MOULDS ALL THROUGH- MANDEEP MAITRA
Women find that if they assert themselves forcefully, pursue their own ambitions and promote their self-interests, people may perceive them as pushyand calculating triggering a backlash. But if they act in a stereotypically feminine way, they aren't seen as strong leaders.
"one-off" in their nature. There is a shortage of female role models. Leadership styles can be acquired by observing others; but there are often few female executives to observe. Women can watch male leaders too, of course, but men can't illustrate how to navigate female stereotypes. Women find that if they assert themselves forcefully, pursue their own ambitions and promote their self-interests, people may perceive them as pushyand calculating triggering a backlash. But if they act in a stereotypically feminine way, they aren't seen as strong leaders. Women complain that they lack prowess at workplace politics. "We need to work harder than men to prove ourselves". "We feel the constant pressure to never make a mistake and to continually prove our value to the organization". They feel they can never rest on their laurels and find themselves negotiating with men at every stage of their career. Many women have to face a constant state of unease when they hear everyday raunchy banter or humor by men at work that may not be appropriate. A woman may not feel comfortable with language such as "I'm going to whip your butt on our sales goals this month." Clearly chauvinism or discrimination is an enigma that organisations (and business cultures) need to work hard to prevent. Other women feel that they are judged harsher when they choose to remain single, or choose their careers over their children or for not being able to keep a household running and clean whilst bringing in a significant portion of revenue to keep dual income lifestyle. Some believe that it all boils down to (Asian) men not being able to see women in powerful, responsible or decision-making roles, and therefore try to downplay and manipulate their efforts and accomplishments. Even if all of the above is true - women have to have a CAN DO spirit and do something about each of the above challenges. Some suggested measures for aspiring young women leaders could be: Enlist mentors at your work place and solicit feedback on leadership techniques. After a meeting, ask a trusted superior what behaviors worked and what didn't. Remember some male mentors may not be aware of the unique challenges you may be facing in asserting leadership. Explore joining some women's forum or network externally if you are unable to find any mentors internally! (Believe me when I say
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women can be woman's best friends, it is true!) Establish credibility. Be sincere in actively engaging colleagues, superiors and direct reports, and talk to them frequently -exchange ideas and research. Don't hesitate to ask for their help and support at the right time. You will be surprised how many of these people back you up when needed. If the Organisation culture is constantly making you feel stressed and wearing you down re-assess what could be the real reasons behind these manifestationsby reaching out to a trust worthy mentor or Coach, internally or externally. This is better than being seen as whining, complaining or getting emotionalat work.Whilst having a dialogue with your Supervisor or Coach do remember to be rational in separating the anecdotal stuff from regular occurrences. Always report harassment of any kind. If you observe inequities at work - not being considered for an assignment or getting passed over for a promotion or a chance of a better increment approach your Supervisor or HR department (whoever you feel comfortable in discussing this matter with) and understand the merit behind the move. Reflect on the feedback and work hard not to let it happen it again!If you are not convinced record it as a disagreement rather than a dispute (if you feel the organization is open to such a thing and won't hold it against you). And if you repeatedly feel that you are not being treated fairly and remain disenchanted with your employers - it may be time to weigh your options. When it comes to women in leadership there exist somereal structural and cultural biases! Now what these biases are - that could be specific to companies, regions and countries but the fact remains that they all need to be addressed at the earliest. Otherwise all these discussions by Boards and Top Managements on creating stickiness for women leaders would remain only noble intentions. I am enthused by this new growing appreciation of those traits that women use to nurture and keep their families together! These are the same traits that help them organize volunteers to unite and make change in the shared life of communities. This feminine way of leading includes helping the world to understand and be principled about 'values' that really matter. BM
COVER Feature Dr. Tanvi Gautam Founder Global People Tree (People centric solutions for the new workplace)
She was looking for career advice after college. A senior VP of HR at an MNC asked:"What would you do, if you won a 100 million dollars right now and did not have to work a day in your life for money"?. "Travel the world, learn new things, help people grow" she responded. That question, he revealed, was the best way to find out the true aspiration of any individual. As long as you take up a career around your aspirations, you will do well, he advised. Looking back at her career Tanvi has managed to keep true to that aspiration. She has indeed travelled the world, studying and working in four different countries (USA, Australia, India and Singapore), worked in leading multinational HR departments,earned her Phd in OBHR, taught in world class Universities across the globe before going on to create her own HR consulting outfit (Global People Tree). Dr.Tanvi's thought leadership on topics related to creating engagement in the new workplace can be seen in Forbes, Straits Times, Economic Times and many international conferences across the globe. She is also on the board of the international Asian Region Training and development organization, an international body aimed at developing a strong cadre of HR professionals around the globe. All this while managing a family along side ! BM caught up with Tanvi to find out what she has learnt along the way that can help other women in the field of HR.
Power of believing
in self Business Manager
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COVER Feature POWER OF BELIEVING IN SELF -DR. TANVI GAUTAM
Emerging HR tools 1. The power of storytelling 2. Organizational networks analysis 3. Greater learning within and through teams
Can you share an early personal experience that defined you world view ? Upon finishing my bachelor's degree at Lady Shri Ram College, New Delhi I sat for the entrance test for Masters in Sociology at JNU and stood third all India. At the same time, I was accepted for a diploma program at the La Trobe universityin Australia. With a fully paid scholarship too! Everyone I consulted advised that a degree course at JNU was superior to a diploma in Australia. Others also pointed out that I had never been away from home. How would I manage by myself ? I decided that when the Australian university was willing to take a chance on me with a full scholarship, I was ready to take a chance on myself. And I worked hard, took extra courses, and in fact managed to complete a Masters degree in the same time period. The overseas experience not only enhanced my world view, but showed me the power of believing in myself. I strongly suggest to all women to step out of their comfort zone and take a chance on themselves. One may not always succeed but one will always be wiser than the one who stayed back in the shelter of comfort spots. Can you share a guiding principle that is core to your working philosophy? Some people look at a situation and say 'why', others look at the same situation and say, 'why not'? The ability to look for what could be, to take a chance, has always guided my research, writing and consulting. Just recently, I wrote a piece for Forbes magazine titled "Real men don't need work life balance". This piece came about as I realized that all the writing, research and HR practices see worklife balance as an issue for women. To me, success lies in recognizing the case for men too. They too play an important roles as fathers, as caregivers of parents or spouses. That approach is far more inclusionary and actually supports the cause of women too. Interestingly, many comments from the people who read and shared the article showed they
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agreed. When I was researching knowledge transfer in cross cultural teams in the IT industry, I asked why the socialization to the client was excluded when assessing team performance?This idea had never been explored in the HR research or practitioner circles. Given that most firms are executing work through collaborative work arrangements, this construct is a very important one. I created a tool for project leaders to use in helping their teams perform better when playing at a global scale. HR professionals must ask questions that push the boundaries of thought and practice
The overseas experience not only enhanced my world view, but showed me the power of believing in myself. further. Thought leadership is a core competency that all women HR professionals should aspire for if they want to be taken seriously in their organizations and beyond it. Given your exposure to HR issue at a global level, what do you think are some of the trends that Indian HR professionals should prepare for? Firstly, India is unique: it straddles the old world and the new world simultaneously. We are addressing the skill building of the nation through initiatives likes the National Skill Development foundation at the same time as positioning our existing talent at the higher end of the value chain. For this we have to adopt a global mindset while being careful to not abandon our own identity. India is well positioned to blend our values with the practices of the west, so that the emerging HR practices work for our own unique cultural realities. For instance in the West, diversity and inclusion is about celebrating the 'uniqueness' of each person but in the East it is about creating 'harmony and respect' in the
COVER Feature POWER OF BELIEVING IN SELF -DR. TANVI GAUTAM
When we stand back and look at storytelling, organizational network analysis as well as mentoring trees, it is clear that the future of HR practices lies in leveraging the power of communities for learning and action.
workplace by celebrating similarities. This premise of unity in diversity,has been part of the Indian ethos for decades. Secondly, as India grows, there is a shortage of talent. The increase of women in the workforce, the evolving nature of aging populations, the aspirations of our youth - all combine to demand greater work life integration policies.Organizations must respond to these changes. For instance,the stigma associated with women taking a break will have to be dropped. In the US organizations like PwC are using programs like 'Full circle' to enables women to off ramp and on ramp in their careers. The program allows high performing women to take a break for upto five years and still return to work.There is a need for framework to create more flexible careers for men and women. Thirdly, as shown by a recent study by Mercer, organizations in APAC are still paying lip service to diversity and inclusion. 68% of organizations claim to have a diversity strategy linked to the organization's vision and mission but only 41% say it is integrated into the business goals and corporate score card. Companies are adopting adhoc, piecemeal measures which are often not integrated with the larger HR practices and principles. Without a systems perspective D&I initiatives are set up to fail. Maternity leave, work from home and part time work are a necessary but not sufficient condition to create a more engaged and empowered female workforce. There have to be systemic changes to the mental models about women in the workplace. What are some of the emerging tools and techniques that HR professionals should be aware of ? There are many but I would like to point out three in particular. The first is the power of storytelling. This is a very powerful tool for leadership as well as organizational change. Through the use of effective and real stories HR professionals can gain greater momentum for their projects as well as connect with employees more effectively. Think of it this
way, given a choice between 50 slides about a project or one story, which one would you choose ?The power of 'once upon a time' is much higher than any a 100 page detailed policy manual. Storytelling is also being used to perpetuate firm culture to newcomers. The second is organizational networks analysis. This is a highly sophisticated tool that is being used widely to uncover informal networks within the companies. The organizational chart is a relic of the past. Real work, knowledge exchange and information flows happen through informal networks. These need to be mapped and managed for effective talent management. The third is the greater learning within and through teams. For instance mentoring trees allow organizations to tap into the wider expertise of the company. No one person has the best answer to your questions and hence it makes sense to leverage the knowledge and expertise of a larger group. When we stand back and look at storytelling, organizational network analysis as well as mentoring trees, it is clear that the future of HR practices lies in leveraging the power of communities for learning and action. What do you think are competencies young and upcoming women in HR should have? Apart from the ability to take calculated risks, and thought leadership mentioned earlier, women must actively find mentors and sponsors both from HR and the practice sides. By doing this you will enhance your knowledge and skills immensely and earn the respect of not just your HR peers but the practice managers. The latter in particular enables the creation of a strategic relationship between HR and practice. Creating bridges comes naturally to most women and this is where this innate ability can come in handy. Finally, make your presence felt on social networks. Leverage the power of technology to make your mark at a global level. If you are not on Twitter and Linkedin, you will miss out on key conversations and connections. BM
Business Manager
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COVER Feature Dr. Shalini Sarin VP Country HR Partner, Schneider Electric India
Shalini holds a Doctorate in organization behavior, and double masters in Sociology and Human Resource Management. She is a certified Psychometrician from British Psychology Society and a certified trainer and Executive Coach from Motorola University-Chicago. She is a Certified Six Sigma black belt and accredited in 'Personal Counseling' too. Also she has an Advanced Human Resource Certification from Ross School of Business, University of Michigan, Ann Arbor.
Winning Isn't Everything, but Wanting to Win is T
his famous saying by Vince Lombardi just about sums up my life. I have been scripted with hope at birth and I have been dealing in hope ever since. My life began very ordinarily in a middle class family with traditions and values of Punjabi environs. Now that I look back into the past, I realise that there were no gains without pains- early marriage, post-graduation after children and Doctoral degree when children were still in secondary school and - I was in the thick of my professional journey. Gain was- I never experienced a glass ceiling !! I started with teaching in Management Institutions. It became quite apparent early on that the traditional mould of learning, in pre-cast streams of education, is not going to satisfy my appetite for knowledge and the desire to apply it to the corporate world. To test the value of what I was learning and to ratify the importance of it in application, created a need to work on consulting assignments. It was a wonderful era where companies were at the cusp of accepting OD as the new means to organizational success. I pursued my studies while in the consulting space. That gave me time and a wider view of what the industry was looking for and continued my learning as I picked up new pieces of knowledge. This kept me growing and ever hungry for more. I realized that unless a view is made contextually relevant and its impact on business is assessed and success clearly measured; it is an inconsequential theoretical exercise.
MY LEARNINGS It became clearer through the times that running out of options is not an option for those who aspire to lead. There is always a possibility, one needs to find it, extricate it from the web of negativity and nurture 24
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it with progressive thinking. During implementation one needs to Go All the Way, no looking back ..taking your peers, seniors and associates along with you. No Eklaa Chalo worked for me ever. I have yearned for responsive surroundings and involved eco system. That gets my best out. Problem solving has been an integral part of my professional upliftment and continued learning. As with any new habit, making problem-solving an integral part of behaviour requires patience and practice. I must caution that initially the process might feel awkward and stilted, but within a few weeks' time, problem-solving could be ingrained and internalised; almost into the day-to-day communication. A leader, in my view, creates a road where none exists, pushes the envelope, leads by example and walks the talk. Effective leaders change the rules of engagement, watch without a conspicuous probe, look for the bigger picture, and find a path to go over the hurdles rather than look for a workaround.
ACHIEVEMENTS AND CAREER EVOLUTION In my view, an effective manager is able to retrieve the best out of a frugal team, extend their potential to deliver greater performance in shorter time-frame, and most importantly - empowers without a conspicuous probe at each step of the delivery. My greatest achievement is effectiveness i.e. making things happen. I have consistently maintained execution focus and often responded with flexibility to shifting priorities and rapid change. This has developed a strong bond with my peers- leading to mutual trust. I have the benefit of a high caliber wellknit team whose advice I consider very valuable. Professional success cannot be attributed to an
COVER Feature WINNING ISN'T EVERYTHING, BUT WANTING TO WIN IS -DR. SHALINI SARIN individual. I have enjoyed every interaction of coaching, mentoring & counseling, whether subordinates, peers or even my boss! Influencing change while seeking buy-in from those who resist, has been the most fascinating challenge- and incredibly satisfying too.
KEY HR ISSUES On a global scale, despite national and regional differences, there is remarkable unanimity on key HR issues and challenge being faced today which are: Change management representing a particular challenge for personnel management staff, as this expertise has generally not been a consistent area of focus for training and development of HR professionals. This may also be the reason why it is cited as the foremost issue as HR continues to attempt to help businesses move forward. Leadership development: HR professionals continue to wrestle with understanding the best ways to keep people in the pipeline and develop leaders for future succession planning. Increasingly recognized as becoming strategic business partners within their organizations, HR professionals are expected to provide the essential frameworks, processes, tools, and points of view needed for the selection and development of future leaders. Measuring HR effectiveness is an interesting new focus area as it highlights the profession's need to measure results in terms of driving the business. HR professionals have been questioned in the past regarding their business acumen. Utilizing metrics to determine effectiveness is the beginning of a shift from perceiving HR's role as purely an administrative function to viewing the HR team as a true strategic partner within the organization.
I realise that there were no gains without pains- early marriage, postgraduation after children and Doctoral degree when children were still in secondary school and - I was in the thick of my professional journey. Gain was- I never experienced a glass ceiling !!
EMERGING HR TRENDS I can clearly see a perceivable trend of HR being seen as a partner of line functions. Though hesitant and slow, this transition reflects an important milestone for HR. Going forward, HR will play an enabling role in formation, execution and measurement of business strategies. HR executives would need to understand numbers, appreciate business critical issues and find
solutions for fiscal health of the business. This would demand a firm hip- lock with business where every Line Manager mirrors an HR Manager. Being a part of Schneider Electric Leadership team, gives me an unprecedented opportunity to participate in and support the evolution of HR. Another area where HR has a major leadership role to play is in initiating CSR practices. At Schneider, HR is already involved in implementation and communicating policies and ideas across the organization. HR is also responsible for systems and processes that are related to effective delivery. With HR partnering with CSR, the future of a firm can be strengthened in terms of its product responsibility, sustainability, and quality. BM Business Manager
July 2012
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COVER Feature Dr. Tanaya Mishra Sr. Vice President, Group HR, JSW Steel, Mumbai
Dr. Tanaya Mishra is currently Sr. Vice President - Group HR, JSW Steel Limited based at Mumbai. Dr. Tanaya has a vast experience in the field of HR and has spent approximately two decades in the industry. She is one the rare lady HR Leaders who is conversant and at ease with both the service as well as the manufacturing sector. Dr. Tanaya has won a number of awards and accolades including Leadership at Work 2012 at the World HRD Congress and has been awarded the Young HR Leader Award by NHDRN 2008 and has won the HR leadership Award at the 3rd Employer Branding Awards 2009. She holds a PhD. in Manpower Planning, Post Graduate Diploma in Personnel Management, a Bachelors Degree in Law (LLB) and has been trained and certified by SHL, DDI, Thomas. She is a National and Regional committee member with CII, subject matter expert with SHRM, treasurer and executive council member of the National HRD Network (NHRDN) - Mumbai Chapter and is part of the core committee of Employers Federation of India.
Being Professional
handling tough situations... "C
ontributing to the human capital to make it more motivated and productive, engaged the prime objective of any passionate HR Head and that has been my mantra to reach where I currently am. I have worked across both service and manufacturing sectors. My last two assignments have been in the hard core manufacturing sectors of Steel, Cement, Infra, Ports, Concrete. A lone lady in a man's world of Sr. Mgmt, how does it feel ? Actually very good. Contrary to popular belief and numerous discussions on Gender Diversity and Women being discriminated at work place , it is not at all that difficult. It's the assignment and deliverables that one needs to concentrate on. At the end of the day it's about being a professional immaterial whether one is a man or a lady and handle tough situations and emerge successful. Yes, with a lady around may be the locker room conversations are limited. As a HR leader one key success factor is also ensuring that the organization is a learning one and there is constant development of people. Today is a world of whirlwind changes , unless employees are equipped to handle these difficult and changing situations it would mean disaster for the organization. I also think as HR leaders it is essential to understand the potential that the human capital of one's organization has and devise ways and means to constantly upgrade them either through stretch assignments , projects, external and or internal training inputs that are identified through development centers. Organizations need to have a future ready workforce to ensure that they are on the way to progress and development. One key element for a HR Leader is to ensure succession planning is done for key leaders and also to ensure that leaders are groomed for future positions to ensure sustainability and continuity in the vision and mission of the company. Last but not the least the home environment is key to ensure that effective contributions are being made at. I have none other to thank than my husband, parents and not always cooperative twins to be able to do and contribute the way that I currently am. Apart from being a professional I am fairly active in the national HR forums". BM 26
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COVER Feature Dr. Sujaya Banerjee Chief Learning Officer, ESSAR Group, Mumbai
Dr. Sujaya Banerjee has been a Human Resources professional for over 22 years and has transformed the HR functions in several leading organizations during her career. She is an OD professional par-excellence having set up world class PMS and Talent Management programs and help build Learning Organizations through her assignments at ADNOC, Lowe Lintas and Partners, British Gas and now the Essar Group. Sujaya has been listed among the Top 40 HR professionals in Asia and has won the Youth Icon Award for 2009 besides bringing several international accolades to India- the Learning Elite Award - CLO USA, Learning in Practice Award - CLO USA, Best Project Implementation in Asia- SuccessFactors and Best Business Adoption Award- SuccessFactors. She has presented White Papers at leading conferences at GE's John F. Welch Leadership Center (Crotonville), at the CLO Summit-Harvard Business School, ASTD, SkillSoft Perspectives and recently at SuccessConnect Sydney. She is a sought after speaker and thought leader and is a regular contributor to HR Magazines. Sujaya is a TEDx speaker and leads the Learning & OD Roundtable- a forum for practitioners which has a worldwide membership of over 1600 Learning & OD professionals. The L&OD Roundtable enables capability building of Learning professionals and helps member organizations become Learning Organizations.
Be Woman & Write your destiny Business Manager
July 2012
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COVER Feature BE WOMAN & WRITE YOUR DESTINY -DR. SUJAYA BANERJEE
In reality while the challenges for women aspiring to climb the corporate ladder are many, the glass ceiling is turning out o be a myth as more focused and competent women triumph over their filial roles, gender biases at the workplace and the networking edge of their male counterparts to thrive, survive, even win in male dominated workplaces.
D
espite years of progress by women in the workforce, the presence of women within the C-Suite remains a rarity. Of the most highly paid executives of Fortune 500 companies only 6% are women, of the CEOs only 2% are women and only 15% of the seats on the Board of Directors are held by women. This has always begged the question on opportunities available to women employees and the famed class ceiling that may restrict her climb to the top. In reality while the challenges for women aspiring to climb the corporate ladder are many, the glass ceiling is turning out o be a myth as more focused and competent women triumph over their filial roles, gender biases at the workplace and the networking edge of their male counterparts to thrive, survive, even win in male dominated workplaces. Here are some of my insights on what can make women make successful strides up the corporate ladder and live meaningful lives as women. 1) Get really, really good at your job- Nothing is more defining than your competence. In reality there are only 2 genders in a workplace - competence and incompetence. Be competent and deliver differentiated results- you will always be in the reckoning- male or female. 2) Think of your Career as a Jungle gym rather than a ladder- Don't think vertical only when it comes to your career and sweat to win the next Step on a ladder. Be open to move parallely, laterally and expand the bandwidth of your experience and knowledge. Swing to the opportunities as they come to you 3) Live a life of Passion and Purpose- People see passion and purpose in other people. Display it and spread it through your leadership 4) Don't underestimate the value of MentorsMentors introduce you to new ideas, new people and provide great advise. Most women who have succeeded in the complexities of the Corporate World will tell you of great people who mentored them to their success. 5) Your destiny is in your Hands- but of course you will have family responsibilitiesresponsibilities of having children raising them and all the rest that comes with being wife, mother and daughter. Don't see yourself as burdened or set benchmarks by emulating other women you gave up "If it is to be- it is up 28
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to me" should be your motto. Persisting with resilience and remaining focused to your Goals and aspirations will give you the energy to get past a bad day! 6) Live a '360 Degree Life'- Women are known to be good multi-taskers .Continue your focus on being house proud, raising a happy family, being there for your female friends, enjoying your music, playing an instrument. Watching theatre- whatever feeds the soul. The great thing about being a woman is that you have so many avenues for happiness that unlike men your professional success is not the only thing that defines you! Go on, be a woman, be happy, and be successful.
MY STORY Born in a business family of four sisters, my parents raised us to be honest, dignified, multifaceted young ladies committed to Excellence. These values persisted through my adult years as I completed my MBA (HR) from NMIMS and embarked on an exciting career as an HR professional. My forte was employee development and Talent Management and I am grateful to several Mentors including my Managers through various assignments for their astuteness in spotting talent, for their generosity in giving me the right opportunities to learn and perform and for giving me the visibility to shine in various leadership positions. I was Head of Department at the age of 29 and also mother to my daughter at the same age. I started my PHD Journey after the birth of my son at age 31 and completed it by the time I was 35 years of age. I have loved all the companies I have worked for , always given more than 100% to all that I have done, remained committed to all that made me happy- my family, my home, my books, my music, movies, theatre, travel and never compromised on any fun because I was pursuing a serious career. I have built strong networks both inside and outside the organizations and have always earned love and respect through the quality of my work, through my honest support to the betterment of others and through passion and energy which I believe is contagious and wins me friends. I enjoy being a woman, have never lamented or regretted a single day of my life and I know as long as my kids are well and smiling-life is fantastic. BM
COVER Feature Padma Singh Group Vice President-HR Mayar Group, Gurgaon
MBA from Patna Unviersity in 1993. Group Vice President-HR Mayar Group, Leading Business Conglomerate, Gurgaon having about two decades of hands on experience in HR in RPG, GE Capital, Hero ITeS, HSBC Global and Avon Beauty products etc.
Transforming from Home Manager to HR Manager
W
omen today have proved in more than one ways that their sense of responsibility, receptiveness and leadership acumen are here to stay and would pave the way for more women to make it to the top. Private Sector today, is displaying an inclination towards employing more and more women in their HR departments as compared to men. Because managing a large number of people, keeping them motivated, acknowledging as well as finding solution to their grievances etc are all a part of HR job. Since listening and empathizing comes more naturally to women than men, women have successfully transformed from merely being home managers to Human Resource Managers. My HR journey started as a Management Trainee with RPG Enterprises in a manufacturing set up. Yes, I was too excited about the opportunity, had the enthusiasm to do something big and prove myself, however a bit apprehensive as well about the new place, the new environment, working with such senior professionals and therefore a bit hesitant about putting across my points to my colleagues and seniors. But the encouragement and support I received from my colleagues, seniors and my family all across my career did help me in my career progression and developing more and more attachment towards my profession. There were challenges, but it also depends upon the person on how does one take the challenges, learns from it and convert those challenges into opportunities with all honesty and integrity. It’s my personal belief that if you have a positive outlook and you are honest and true to yourself, it does help you overcome all the hurdles and help you succeed. In today’s world, we are often misled by the term ‘success’. There is no doubt that a lot of hard work, sincerity and passion is required for success. However my perception of success is something much more than that; success should stimulate some emotion when achieved. Such achievement should make us jump off our seat, rush to tell somebody what we've achieved, make us feel elated; However this is individual perception so we must understand that what is a minor achievement for one may be a major
success to somebody else. Some of the key characteristics you will find in those who are successful are perseverance, planning, preparedness, eye for detail, ability to recover and learn from setbacks and most importantly patience even when things do not seem to be going well. A strong vision of future and setting achievable targets can all play an important role in our way to success. Like success, all these skills, attributes and characteristics cannot be achieved or developed overnight. However there is no harm in starting from the scratch if you are passionate to achieve. Those who do not start travel nowhere. For the rest, life can be a continuous journey of fulfillment. BM Business Manager
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COVER Feature Sushmita Basu HR Director, Egis India Consulting Engineers Pvt. Ltd., Faridabad
Having done Post Graduation in Physics, Sushmita Basu went on to do MBA from IMT Ghaziabad. Presently Sushmita heads EGIS India for last 9 years. Her contribution to the organisation has been establishing innovative business linked HR practices.
Challenging journey of establishing business HR
A
rmed with a Master's Degree in Physics from Delhi University and MBA in Human Resource Management from IMT, Ghaziabad, Mrs. Sushmita Basu, the HR Director at Egis India Consulting Engineers Pvt. Ltd. (the largest subsidiary of the multi crore EGIS GROUP, France) is among the first few women to lead the HR function in Infrastructure consulting space, one of the fast growing business sectors in
humane outlook that is synonymous with the Egis brand worldwide. Her determination and grit to get recognition for HR as a business partner in an engineering company has won her recognition within EGIS group as a visionary & innovative HR leader. Her earlier trysts in business development in varied industries from selling computers to Light Motor Vehicles and to infrastructure consulting before moving to her passion of managing people helped
Expectations from women at home have not changed much whereas the expectations at the workplace become steeper with increased work responsibilities as one ascends in career. India. Always a step ahead in her thoughts, she played an instrumental role in the rapid growth of the company to its current workforce of more than 1000 employees Pan-India with turnover of 150 crore. With sharp intellect and a sound value-system, she has laid the foundation of an open, employee friendly, dynamic & empowering culture across the organization. She firmly believes and embodies business HR, is responsive to the dynamics of the market and a strategic partner to business in the true sense. At the same time she walks the tight rope to safeguard employee interests and expectations and represents the 30
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her to integrate HR with Business seamlessly. She maintains that in any successful business enterprise, there is a need to groom and nurture young Leadership and does not shy away from the risk of delegation & entrusting responsibilities. That true strength comes from pushing beyond the limits and from facing the daunting challenges, a belief that has never failed her in professional and personal life. Her futuristic thinking has helped create Egis India into a great place for the young and the talented who seek opportunity to prove their potential and an exemplary place where superior subordinate relationships thrive and grow beyond the office
COVER Feature CHALLENGING JOURNEY OF ESTABLISHING BUSINESS HR -SUSHMITA BASU
In the process Sushmita was able to convince everyone that women have a capability of blending emotions with critical thinking leading to much more holistic impact on business. boundaries. Yet, behind this successful professional there exists a passionate dancer, a prolific reader, a proud mother of two constantly balancing her life with great care and sensitivity. Most of her free time is occupied with looking after the smallest of needs of her two sons, Siddhant and Devanshu making up for the time she is away from them.
become more critical and demanding in senior positions. Besides work-life balance, as a HR Head of an Engineering company, it was furthermore difficult for her to establish the business HR in the organization.
Needless to say that like all other women, she has to face numerous challenges to reach her current position; journey to Senior Management of EGIS India and in Board of Directors for GSI (a 100% subsidiary of EGIS India providing services in Urban
Everything besides talent acquisition and payroll management was viewed as theory only. From that mindset to the current level of acceptance as Business HR had been a really challenging journey. And in the process Sushmita was able to convince everyone that women have a capability of blending emotions with critical thinking leading to much more holistic impact on business.
Planning and GIS was not a cake walk. Expectations from women at home have not changed much whereas the expectations at the workplace become steeper with increased work responsibilities as one ascends in career. As a woman one has to prove her mettle more as peers
Yet, she enjoys every bit of it and celebrates life; her energy is so infectious that it rubs onto others & the organization. While the young flock around her for her vivacity & honest guidance, her peers look upto her for her imbedded support in people & business management. BM Business Manager
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COVER Feature
WomenThe Natural Leaders A.S. SHARMA CEO, Juris HR Gurgaon
L
eaders are born or Leaders are made. There can be countless arguments "For" as well as "Against" both these statements. But the role of natural inheritance of certain traits cannot be altogether dismissed. Let's proceed to create a divine link between the present Female form and it's origin. We all worship Goddess Durga or Shakti as the Mother of the universe and the power behind Creation, Preservation and Destruction of the Universe. She is also referred to as Triyambkae having three eyes each representing "Desire", "Knowledge" and "Action". Her worship therefore, is supposed to remove all miseries, confer all material wealth, bestow knowledge and produce ever ignited fire of 32
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action. She protects her devotees from all the ten directions representing her ten hands. She rides a lion (Mind) meaning full control of all the Senses and Mind. She carries weapons in her hands to destroy the forces of evil and each weapon indicates an energy force, the shining sword indicating knowledge without any doubt. Now coming to the qualities a Leader should possess: Careful selection: Although a lot of psychometric assessment tools are available for enhancing the effectiveness of the selection process, yet it is also a fact that the availability of the trained and qualified manpower, time constraint to fill the vacancy, prohibitive cost of administration of the psychometric
Women-
The Natural Leaders
tools serve as a deterrent for SMEs which rely mostly on verbal interaction with the prospective candidates before making formal appointments. However in both these cases final step is the formal interview which leads to a decision to hire or reject. Because of their strong inherent desire for continuous learning and action, women HR leaders are psychologically better in getting deep into the mind or reading between the lines and as such more effective in identifying latent qualities and intentions. Nurturing : A leader has to take care of his subordinates not by managing but through leading by coaching, mentoring, understanding their personal issues affecting workplace efficiency - discuss and solve them while giving them protection from fear of victimization. Like the goddess protects the devotees from all directions, motivates them to continuously acquire knowledge, a mother too performs these functions while bringing up children. Coaching and mentoring is inbuilt into women genes. Good Listener : Good listeners focus on the communication and if get deflected , they quickly come back to focus. They put themselves into the shoes of the communicator and empathetically find out what are the needs of the person and get into their feelings and read their body language too. They never interrupt the speaker. Good and attentive listeners never react but always respond. The goddess listens to the prayers of her devotees, identifies genuinity of the prayers and showers appropriate blessings. These natural inherited traits of HR women make them responsive leaders. Employee Engagement: Imagine the Cost, Quality and Productivity figures in an Organisation where employees come for salary only. Going to the workplace next day is tormenting and most uncomfortable thought. Again there are Organisations thinking of creating fun at workplace, organizing occasional employees get together, CEO writing personal letters to the employees on festive occasions but all this only as a lip service. They take these activities as the only means for achieving employee engagement. Without corresponding intentions such actions are mere waste of time. There is no doubt that engaged workforce is highly productive and creative but it needs to be achieved through positive intentions. Does the Goddess need to engage it's devotees to worship? No. There is complete "trust" between a devotee and the Goddess. If this element is missing in any relationship even Employer and Employee, nothing worthwhile can be achieved. No HR policy shall bring fruits at
COVER Feature
such a workplace. Just imagine how does a mother induct her daughter to the Kitchen. The first time daughter cooks, mother shall convey to all in daughter's absence that everybody has to appreciate the food at dinner time. Cooking mistakes are ignored. Family celebrates and all appreciate the new cook. In how many Organisations mistakes are accepted as a learning source in actual practice and not merely by rule book? HR women generally use a positive approach of rewarding for cooperation and good contributions rather than a negative approach of reprimanding for what is done wrong. This type of leadership known as "Transformational Leadership" is more prominent in HR women as compared to their male counterparts. Breaking the comfort zone : Before delivering eggs, the Mother Eagle makes a nest by putting pointed thorns and covering them by a soft material. After the eggs are hatched,
"Transformational Leadership" is more prominent in HR women as compared to their male counterparts. the mother eagle mixes the material so that sharp edges come upwards and create a painful experience for the baby eagles. Then it stops feeding them. At this stage the baby eagles become very uncomfortable and hungry and feel that the nest is not giving them the same comfort. They decide to leave. Does this action of Mother eagle mean cruelty towards new born? No. This is how the baby eagles learn to survive in this world. In their journey from an infant to a child and further growth, all mothers put their kids in an uncomfortable zone to enable them to learn. This comes naturally to all women. They are excellent teachers whether in Schools or as Managers in an Organisation. With specific reference to our Country, a change in our mindset is required towards women in the corporate sector. Cases of exploitation and harassment at workplace do come up quite often. As women gain greater equality, a few male counterparts react against these changes, producing backlash. It is for Seniors to ensure that like any other asset in the Organisation, they too are required to be taken care of and nurtured. Senior Executives need to encourage female employees in their journey towards becoming "effective employees". Women are very high on emotional quotient and this gives them a superior edge against their male counterparts. BM Business Manager
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Chinmay Kumar Podder Executive Director, (Corp affairs and Business Development) Neelachal Ispat Nigam Limited, Bhubaneswar
Developing A Compelling
Employees Value Proposition
What is an employee value proposition? Simply put E.V.P is an employee's perspective or what is in it for me to work here? and an employer's communicated promise to its employees. IMPORTANCE OF E.V.P It is a well known fact that there is more to employee's satisfaction than just remuneration (salary and benefits) Employee value proposition has been proven to be crucial to attracting, hiring and retaining the best talent in the industry. This goes a long way in helping prioritise the HR policies, creates a strong brand in the eyes of people and helps in workforce engagement.
DIFFERENTIATING EVP AND EMPLOYER BRAND In many companies the focus of an EVP is often confused with the employer brand and as a result is solely communicated to attract job applicants An EVP certainly contributes to the employer brand and draws from it but they are not the same thing. Developing the right EVP requires an understanding of the company's current and future talent needs in the context of business strategy. An EVP is different from employer brand which is the wrapper. An EVP makes sure that what's on the inside is as good as what the wrapper promises.
KEY COMPONENTS OF E.V.P Key components of EVP might include; Compensation- Salary, incentive, cash recognition, pay process. Benefits-healthcare, retirement, insurance. Affiliation-work environment, trust, 34
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organisational commitment. Careeradvancement opportunities, personal growth and development ,training job security. Work content- challenge, autonomy, transparency, meaningfulness, varieties. Let me explain this with an example; At Sodexo they support and encourage their employees to shape their own future and growth within company.These themes can be summarised with following value proposition. We care about our employees in the same way that we care our clients and we strive to provide each and every employees with a wide range of professional and personal opportunities to improve the quality of life. Our employees are able to develop their career both locally and globally across all of our service area. By living the sodexo values and principles and actively fostering diversity and inclusion our people make sodexo a company of the future. Five commitments capture the sodexo employee value propositions- Recruiting, Welcoming, living, grooming, and rewarding. Is not just wonderful how the Sodexo statement includes guidance for employees to talk to their manager.
Developing A Compelling
Employees Value Proposition
HOW CAN THE EVP BE LEVERAGED?
Describe the value experienced by the employees in as much detail as possible. All experiences and component should be considered.
While the primary impact of the EVP will be seen in recruitment and retention of staff there are secondary benefits that can flow understanding and managing the EVP.
Define the range of components on offer to the employee segment. Just listing the options available is context free, and does not recognise potential cultural or personal differences.
Focusing the HRM agenda Two of the key drivers used to focus the HRM agenda are regulation and risk. Whilst important, these are primarily defensive in approach. Furthermore, they tend to focus on responses to external agendas and pressures adding the EVP to the agenda provide a third positive strategy that stabilises the agenda and ties it more clearly too strategic direction and values set by the organisation.
Only by working through step 1and step 2 will help producing more powerful EVPs. Look at alternatives in competitor organisation. Competitor organisation is the second dimension of context to be considered. The organisation exists in a matrix of potential competitor organisations. Develop the EVP from the components that meet the following criteria.
Attracting quality people The EVP on offer provides an immediate response to potential employee's first question, namely what is in it for me?
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Core elements- Developmental opportunities, career opportunities and respect.
Re connecting with a disengaged workforce
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Compensation and organisational stability for attraction.
When morale is low and staffs are disengaged, the organisation needs a starting point from which to rebuild the key relationships. Discussing and reconstructing the EVP can assist staff to reengage by clarifying for them why they choose to stay with the organisation.
HOW AN EVP DEVELOPED? Document the employment segment to be targeted. This may be by professional classification, by demography, by personality type, or any other relevant means of profiling.
- Managers quality and congenial work environment for retention. -
Relevant to attraction or retention depending which is the focus of the approach.
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Currently an organisational strength.
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Competing organisations do not provide it.
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Competing organisations simply fail to provide it well.
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Good fit with culture and goals. - Low human relation investment. Business Manager
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Developing A Compelling
Employees Value Proposition
- Strategically relevant. Test the EVP developed by reviewing it with both current staff for the internal view and some potential staff for an external view. Two key aspects of the EVP should be tested. (1) That it is effective and it is appealing to target audience. (2) That it is an accurate representation of the organisation, its working environment and its aspirations. Prepare for an initial implementation. - refine the EVP in the light of testing. - Rework with a style that suits the audience. - Develop supporting material to support HR staff and line manager. Monitor the deployment and efficiency of internal implementation. -Determine performance indicators and baseline before undertaking implementation and then monitor movements. -Monitor consistency of delivery of EVP across channels. -Adjust the deployment as indicated. Implement more widely throughout the organisational activities. Aim to deploy EVP throughout HRM activities, HR strategy, recruitment, advertising, job offers management training and so on. In particular build advocates amongst current staff as this is seen as one of the most credible source of information. Consider aspects of EVP where the organisation is weak, and develop there in preferred direction. Then re-develop the EVP, reiterating through these steps. This will enable the organisation both to grow and develop and also to respond dynamically to change in its environment.
ROLE OF CORPORATE MANAGER Stewart Black Programme Director Insead edu says there are measurable things corporate executives can do to attract and keep the best people. He lists four categories of value propositions which are as follows.
LEADERSHIP Studies show that strong leadership is the single most powerful feature in motivating and keeping employees He says workers understand
that the poor leadership will impact not only the success of the company but the quality of environment and their own ability to build a career. People do care about the quality of leadership and they also care about the company's ability to identify and develop leaders, including eventually themselves.
COMPANY This encompasses everything about firm, reputation, values, culture and its contribution to the world and the community Employees might be willing to work longer hours or for less compensation with stronger corporate values or better reputation. Not very long ago Enron was not a company that you would want to work for. So the reputation, the culture those sort of things matter.
JOB This involves many of the day to day aspects of a job. How interesting and compelling is the job? Can employees grow and be fulfilled in their job? Do they have resources and training to achieve their goals? In particular how much freedom, autonomy, growth and challenges do i have in the job that I have been asked to do? How interesting is the job?
REWARDS This what most employees think of when they think about the employee compensation (wages and benefits) but the rewards also include intangibles such as career prospects, development opportunities and social contact with co- workers. For any organisation the challenge is to find the quality people- people with knowledge, experience, competencies and values that provide a match for the roles with the organisation. The person faces a different challenge, they look around, think about their personal circumstances, compare options, and their chance to take up or stay in positions on the basis of the best value for them on offer. The employee's satisfaction in their working life will be directly related to their value experience. This satisfaction is based on the relationship between cost to the employee- the work to be performed- and the quality experienced-the total balance of reward and benefit received as defined by the employee. It is this balance between cost and quality that will lead to competitive advantage for the employer in attracting and retention of quality people. BM
References www.management study guide.com/employee-value- proposition.html http://en.wikipedia.org/wiki/employee value proposition-cached www.michaelpage.couk/content/18353/ Create a great employee value proposition.hotmail www.talentsmoothie.co/consultancy/employee value proposition www.hirebranding.net/2012/04/hitting-the-target-why-an-employee-value proposition-is- key ingredient-for your-employer-branding-strategy Employer branding marketing.worldpress.com/tag/evp Www-blackcircle.com.au 36
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Debaprasad Chattopadhyay Professor & HOD-HR Globsyn Technologies Limited
Spirituality In Corporate Governance Spiritual leadership is moving leaders from managing employees to inspiring employees, a critical component of transformational leadership. It integrates transformational and servant leadership with spiritual, ethical, and values-based leadership models into a combination of core competencies.
D
oes spiritualism help improving the workplace, or lessens rate of attrition in modern management? Organizations of today have been witnessing a high rate of attrition. People join companies with lots of hope and high aspirations. Unfortunately, as time progresses in the wake of their onboarding, employees get disillusioned. Their expectations are belied and their confidence in companies to provide them employee-satisfaction, let alone, employeedelight, start dwindling. Many start looking for alternate openings elsewhere while others continue to 'get into the rut' and suffer from boredom and frustration. Health issues develop and it is not unusual to come across employees who suffer from bouts of depression and other organic ailments. Psychologists and consultants are roped in to diagnose the problem. After much of probing and interviews with employees, such specialists infer that the organization climate does not provide an enabling or facilitating work-environment. Beset with such a finding, organizations feel intrigued and bewildered and start pondering as to what is meant by an enabling or facilitating organization climate. Initial observations
reveal that employees are of the opinion that the culture prevailing in the company is not positive. Culture, as we know, consists of a set of values and beliefs that help to bind and reinforce work groups and communities. Culture, in turn, creates climate. When this is applied to organization-settings, we find, there exists different types of organizationclimate. Accordingly, there can be sales climate, innovation climate, safety climate, quality climate and a host of other climates. The thinking revolves around the notion that the inappropriate organizationclimate is the root-cause of various perils at the work place and may act as the trigger for acrimony, conflict, politicking, and ineffective teamwork. So, not only employees are inconvenienced in terms of their quality of work-life in the organization, the organization also suffers because of less productivity and output. It starts losing its competitive advantage and 'bad-mouthing' of discontented employees bedevils the organization's reputation in the society in general and industry in particular. Today people are finding that there's more to life-and business-than profits alone. Money as the single bottom line is Business Manager
July 2012
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Spirituality In Corporate Governance
An organization's climate regarding spirituality forms the spiritual character of the organization, by providing the environmental cues that guides spiritual behavior. Decisions of founders and other top leaders in the early stages of the organization's lifecycle have a profound impact on the development of an organization.
increasingly a thing of the past. In a postEnron world, values and ethics are an urgent concern. The hottest buzz today is about a "triple bottom line," a commitment to "people, planet, and profit." Employees and the environment are seen as important as economics. Some people would say it's all about bringing one's spiritual values into one's workplace. A poll by KRC Research for Spirituality published November 17, 2003 in USA Today found that 6 out of 10 people say workplaces would benefit from having a great sense of spirit in their work environment. What is spirituality in business? There's a wide range of important perspectives. Some
spirituality of employees is reflected in work climate. Research has shown that organizations with spiritual climate that provide their employees with the opportunities for spiritual development are better in performance than others. would say that it's simply embodying their personal values of honesty, integrity, and good quality work. Others would say it's treating their co-workers and employees in a responsible, caring way. For others, it's participating in spiritual study groups or using prayer, meditation, or intuitive guidance at work. And for some, it's making their business socially responsible in how it impacts the environment, serves the community or helps create a better world. Be that as it may, there lays an enigma in what the word "spirituality" relates to, in the work environment. Spiritual leadership is moving leaders from managing employees to inspiring employees, a critical component of transformational leadership. It integrates transformational and servant leadership with spiritual, ethical, and values-based leadership models into a combination of core competencies, skills, and learned techniques to provide a model of 38
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behavior for the spiritual leader, and this approach asks fundamentally different questions about what it means to be human, what we really mean by growth and what values and power distributions are needed to enhance both organizations and society as a whole. Spiritual leadership asks the leader to be the one who can show what it means to be human, and what it means to be authentic, which is an important aspect for organizations for gaining deeper insights of spiritual self and of the spiritual lives of others with whom the leaders interact and also those who are affected by the results of their leadership. Similarly, spirituality of employees is reflected in work climate. Research has shown that organizations with spiritual climate that provide their employees with the opportunities for spiritual development are better in performance than others. In India many a company follow the new-age principles, such as Meditation to attain inner calmness, Purshartaa for the balance between personal and professional life, yoga for healthy and disease-free life, etc., which have their roots in Indian ethos for the spiritual upliftment of an organization. At an individual level, spirituality at work provides job satisfaction and reduces employee's burnout as found in the case of health care professionals. Fundamentally, organizational climate refers to perceptions of organizational practices and procedures that are shared among members and which provide an indication of the institutionalized normative systems that guides behavior. An organization's climate regarding spirituality forms the spiritual character of the organization, by providing the environmental cues that guides spiritual behavior. Decisions of founders and other top leaders in the early stages of the organization's lifecycle have a profound impact on the development of an organization, and lead to the creation of strategies, structures, climates, and culture. Spirituality in Corporate Governance is therefore increasingly gaining importance as a specialized area for further research. BM
Practicing the attitude of absorption
K
nowledge space is omnipotent. Like Nature, it possesses abundant wealth for everyone and one has to just feel aligned with it. A salesman in a jewellery showroom can also become very powerful in the entire industry if he is aware of his potential as a knowledge worker having the design preference information of the customers. His ignorance about its usage earns him small salary; if he reinvents himself inside first, the world can naturally be transformed before him. Conventional HR focuses on matching the job profile with the skill set of people but Surrogate HR believes that they can also facilitate the development of emotional capital of every employee within the organization. Passion is the foundation of life with which an individual can spread his wings ceaselessly to conquer time and space boundaries of knowledge world. He is vigorously shaking his head, 'give me that piece of chocolate Mom, I want to have it'. His Mom stands spellbound in the middle of a crowded street as passersby are staring at the little kid. 'Why are doing this my darling? Don't I give you chocolate every day?' she tries to pacify defying child. 'I want it now', the child has started throwing his favorite school bag and water bottle on the roadside. I am silently observing an episode happening in the full glare of grown-up humans who are all tired of seeking things without passion. Have we ever analyzed this behavior of the child? Why does he want to get all his demands fulfilled instantly? Nature has taught him to ask what he desires in life only in this manner. The kid has limitless aspiration expressed as a thought form. 'I have not waited for you MOM and I have already started eating my chocolate - give me my chocolate'. His voice is spreading beyond the road, building, society and the planet to reach Cosmos. NOW is the time for him to have a manifested version of Chocolate. The chocolate has been made for him and no one can take it from him now. It is already on its way. Knowledge world is a space mostly dominated by unknown. The planet is currently preparing young learners for the jobs that do not exist now. Researchers are aspiring to use technologies that have not been invented yet. Management scientists are gearing themselves up to solve the problems they do not even know as problems yet. Statisticians present the fact that top ten in-demand jobs of 2012 did not even exist in 2005. Under this turbulent emotional environment, dealing with human has become a very difficult proposition. An organization often faces limitations when it fails to sense knowledge challenges in right perspective. 'What it does with knowledge' gives it a purpose, 'how it does' shows the roadmap to expansion and growth; 'why it does' clarifies the attitude of the organization. Knowledge is capable of bringing changes at the core of every operation. The change starts affecting response pattern of organization to the various changes in the environment. What is the real problem of professionals handling knowledge inside the organization? They cannot confess that they are not able to keep pace with the dynamic nature of knowledge. It has become their identity and weakness as well. They have become a slave of their
attitude towards knowledge. 'I know' is a glorifying statement which attaches CHINMOY SARKAR them with the wrong image Author, AXELL of self. In this world where 3000 books are published every day, retaining the tag of a 'knowledgeable' person is a great challenge. Mind is initially very upset with this admission; it keeps on complaining, but truly everything else works out well afterwards. 'I know' may be a sought after word but 'I do not know' starts probing the answers to every challenge. What does a human look for inside a knowledge intensive organization? If job is an occupation for him, he may like to engage his time to earn money; for him any activity is suitable to him. But if he treats 'job' as a vocation, he may like to be specially drawn into 'job'; for him, activities provide him enough reason to die for the job. A professional participates in knowledge world with different understanding: 1) he thinks that he is there to use knowledge; 2) he believes that he can arrange knowledge; 3) he feels that he can multiply knowledge; finally, 4) he knows that he can provide knowledge. Based on the nature of participation, his attitudes are formed. Knowledge is very sticky in nature. To illustrate this, I am narrating a real interview scenario where the interviewer is a renowned academician. (Q) What is the title of your PhD. thesis? (A) I do not remember it any longer; I did it nine years back. (Q) What? I still hold my PhD. thesis I completed 35 years ago closer to my heart. (A) I understand, you are not asking me an emotional question; my topic has reinvented itself 10 times since I organized it during my doctoral days; my PhD. has lost its relevance in the context of modern time. (Q) How do you define knowledge then? (A) Knowledge is not about accumulating things we collect on the way of our journey but it helps us to evolve from one level to other. The previous level loses its meaning when the later emerges. One is inside the other. (Q) You are an arrogant person. (A) I am a product of post 2000 digital world which has made every single individual powerful. We are a networked generation unlike the previous ones where isolation used to be the opportunity for an individual to lead his life with the wrong image of self. More than learning, absorption of knowledge is essential; a tag of inflexibility uses it as information; when it is fully integrated as awareness, it becomes flexible. Agility, nimbleness are the essential qualities essential to experience the beauty of knowledge. An organization performs on the four pillars: 1) Stockpile how it plans to create knowledge? 2) Collection - how it likes to receive information? 3) Decision - how it intends to make? 4) Action - how it wishes to respond? Excellence is the outcome of a culture which continues to propagate absorption of knowledge in the system for value creation. BM Business Manager
July 2012
39
GOVERNMENT Notification Employees' State Insurance Corporation
Employees' Provident Fund Organisation
Sub Regional Office, C-22/12, Sector-57, Noida-201301
Bhavishya Nidhi Bhawan, 14, Bhikaji Cama Place, New Delhi-110066
No. 67/Dir/MISC/SPOC-REV
Date: 8/11/2011
To
D.O. No. R-I/ECR/2012/44
The AC-CUM-RDs/Regional Directors/Directors/ Joint Director I/cs All Regional Offices/Sub Regional Offices/Divisional Offices
To All Additional Central Commissioners All Regional PF Commissioners-I All Officer-in-Charge, Sub- Regional Office
Sub: Submission of Return of Contributions for the CPE September 2011 Sir, As per the procedure for system generated challans the Employers are requested to file the Monthly Contribution details in respect of all their employees for creation of challans every month. Thus all the employers who have created the challans though system for all the months in the contribution period April 2011 to September 2011 need not submit the Return of Contribution for the CPE September 2011 as all the information required to be submitted through Return of Contribution has already been captured by the system which will further work out the eligibility conditions/benefit rates/entitlement for benefits etc. for each insured person. Keeping in view the above it has been decided that we may not ask such employers to file Returns of Contributions for the CPE September 2011, who have generated the challans for payment of monthly contribution by filling the monthly contribution details for all the months of Contribution Period from April 2011 to Sept 2011. In fact, the system has auto generated Returns of Contribution in respect of all such employers, which can be viewed and printed through 'View RC' link available in both the employer login as well as staff login. However if in some ROs/SROs/Dos payment of monthly contribution was allowed through manual challans as per old system for some months then in such cases the Employers will be required to submit the Return of Contributions as per the manual system and they will have to be processed for the creation of Live Lists etc. Further, in some cases the employers might have submitted the contribution through miscellaneous challans without filing monthly contribution online. In such cases also the RCs may be accepted but the employers may be advised to file the monthly contributions online so that their employees are not deprived of the benefits. Here it may be seen that although the system will show the entitlement for Medical Benefits in the ESI Dispensaries which are working online yet this facility will not be available in the ESI Dispensaries which have not yet started online activities. For such dispensaries we will be required to send the Live Lists. For such Dispensaries, the ROs/SROs/Dos will be able to print the Live Lists through the link to be made available by M/s WIPRO. It is impressed upon the ROs/SROs/Dos that all the employers who have paid contributions through Miscellaneous Challans without filing the monthly contributions details should be persuaded to file the monthly contributions online so that their employees are not devoid of the advantages accruing to other employees in whose case the monthly contribution details have been filed by their employers. It is also impressed upon the ROs/SROs/Dos that the employers who have filed monthly contribution contributions online but insist on filing Return of Contributions may not be refused and their Return of Contributions may be accepted. Sanjay Sinha, Director, SPOC-Revenue 40
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July 2012
26th March, 2012
Dear Regional Commissioners, Re: Electronic Payment of PF Contribution I am happy to inform that with effect from April 2012, EPFO is introducing Electronic Challan-cum-Return (ECR) for depositing contributions by all the employers. This new system envisages that employer will be able to deposit money only after filling up return form downloadable from our website. After filling up the return, they can generate a challan for depositing the money in the bank. As soon as the bank confirms the receipt of the contribution, simultaneously the return will be pushed to individual ROs system which will automatically update and make entries in the individual accounts. In other words, the new system will bring the following advantages: Automatic updation of accounts on receipt of contribution by EPFO. Employers can download Annual Accounts slips for their employees for the year 2010-2011 onwards from our website. No need to file returns in Forms 5, 10, 3-A, 6-A, 12-A by unexempted establishments and Form 3PS,4PS, 5PS, 6PS, 7PS, 8PS by exempted establishments. No need for annual updation of Accounts. Annual Accounts slips starting from 2010-2011 will be available for download by the employers. Auto updation of member basic details for new members and exit details for exiting members. Members can get the detailed account statements with all credits and debits from our website with effect from 1st May, 2012. For utilizing the above new system, all the employers are required to obtain User ID and Password by logging into EPFO website www.epfindia.gov.in any time (24x7). The above information may be given wide publicity and brought to the notice of all employers under your jurisdiction for compliance. For further details, EDP cell of our offices may be advised to guide the employer. (R.C.Mishra), Central PF Commissioner
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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. We have employed one female employee about five months back. At that time she did not disclose about her pregnancy. Now she has applied for maternity leave. Management feels that the employee has obtained the employment on false grounds and want her to terminate the services. Would it be legal and appropriate to discharge her on this ground? Ans. If you discharge her at this moment, it would be illegal because sec.12 of the Maternity Benefit Act. 1961 puts a prohibition on this act of management. Act clearly debars management form taking the action of discharge or dismissal during absence due to pregnancy. More over, hiding the fact of pregnancy at the time of employment may not be construed as misconduct depriving her of maternity benefit. Q. Is there any ceiling provided under the maternity benefit Act on number of deliveries to earn the benefit by female employee? Ans. No! there is no such ceiling provided under the Act. Madras H.C. in the case of Mohammed mohindeen. N (2009 I LLJ 177) has also held that maternity benefit can not be refused to female employee on the ground of number of deliveries made by her. High Court dismissed the writ petition challenging medical relief to the given to the female employee in such case. Q. I understand that to effect any change in the conditions of service, employer has to give 21 days notice to the workman. Can you tell, what are the areas where we need to give notice? Ans. Sec 9-A of the I.D. Act provides that no employer, who propose to effect any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule shall effect such change: (a) Without giving to the workmen likely to be affected by such change a notice in the prescribed manner of the nature of the change proposed to be effected; or (b) Within twenty-one days of giving such notice. The areas for which notice would be required, has been given in fourth schedule of the act. These are 1. Wages, including the period and mode of payment; 2. Contribution paid, or payable, for the benefit of the workmen under any law for the time being in force; 3. Compensatory and other allowances; 4. Hours of work and rest intervals; 5. Leave with wages and holidays; 6. Starting, alteration or discontinuance of shift working otherwise than in accordance with standing orders;
7. Classification by grades; 8. Withdrawal of any customary concession or privilege or change in usage; 9. Introduction of new rules of discipline, or alteration of existing rules, except in so far as they are provided in standing orders; 10. Rationalisation, standardization or improvement of plant or technique which is likely to lead to retrenchment of workmen; 11. Any increases or reduction(other than casual) in the number of persons employed or to be employed in any occupation of processes or department or shift, not occasioned by circumstances over which the employer has no control. The requirement of a notice to workmen would arise only if they are likely to be affected prejudicially. A change in the conditions of service contemplated by the section should be understood in that sense. Q. One of our employee has attained the age of 58 years and we propose to retire him but there is no appointment letter in his file having such retirement condition. Can we do so? Ans. No. Such a condition has to be stipulated in the appointment letter, service rules or the standing orders otherwise such retirement will amount to illegal termination. Calcutta High Court in the case of Indian Aluminium Co. Ltd. case 2003(99)FLR 694 has held that retirement of a worker on attaining the age of 58 years will neither be legal nor proper on attaining the age of 58 years in the absence of any such condition. Q. How employer-employee relationship can be established in case of the dispute? Ans. First of all, the Appointment Letter or Identity Card or any other documentary proof should be filed on behalf of the concerned employee before the court. In case the concerned person is not possessing any of these or other documentary proof, then he should prove his contention that the relationship of employer and employee existed. It is relevant to refer to one case wherein it has been held that in the absence of supporting evidence by the coworker of an employee claiming to be in the employment of the employer and employee will not be established. Q. Can subordinate to disciplinary authority issue charge-sheet or initiate disciplinary proceedings? Ans. Yes! Normally, a charge-sheet is issued by the Disciplinary Authority but it cannot be said that under no circumstances any person or authority subordinate to the disciplinary / appointing authority Business Manager
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Labour Problems & Solutions
Anil Kaushik, Management Expert -HR & IR
cannot issue charge-sheet or initiate departmental proceedings. In one case, the Calcutta High Court has held that if it can be established that such Subordinate Authority has either express or implied approval to the same by the Disciplinary/Appointing Authority, then the departmental proceedings initiated at the instance of such subordinate authority cannot be vitiated.
said section provides that the leave admissible under sub-section (1) of the Act shall be exclusive of all the holidays whether occurring during or either at the end of the period of leave. Thus such holidays and off days of the factory will be excluded while calculation of leave. Since a worker cannot be required to work on Sunday which happens to be the off day, Sunday and festival holiday will be excluded.
Q. In accordance with the terms of appointment letter of an employee which stipulates three months notice or salary in lieu thereof for termination, can we discharges such employee by invoking this condition straightway?
Q. Whether an employee, engaged on probation, will be eligible for the bonus under the Payment of Bonus Act and whether the bonus, will be payable on the commission also?
Ans. NO. As long as an employee happens to be a workman under the Industrial Disputes Act, such a clause of termination by giving notice or salary in lieu thereof will not be valid and can be challenged by the employee. Reference is made to one case, where the petitioner’s service was terminated on the basis of conditions stipulated in the contract, i.e., by giving 3 months notice. Admittedly, the petitioner was a confirmed employee who worked for many years, when his services was terminated. The service could not be terminated by such kind of letter invoking contractual condition of giving 3 months notice. Such kind of clause of termination and the termination itself is bad and illegal. Q. Can employer lay down certain conditions of services on the identity card issued to the employees? Ans. NO. The service conditions are regulated either by the appointment letter, agreement, service rules or the standing orders and not otherwise. In one case, the Division Bench of Orissa High Court has held that additional terms of employment cannot be assumed as mentioned on the employment card which is used by the workman for his identity. Q. Can an employee raise industrial dispute of his reinstatement after opting for VRS and receiving the benefits under VRS? Ans. NO. Such a person, after receiving the benefits under VRS, will not come within the purview of the ‘workman’ as defined under section 2(s) of the Industrial Disputes Act. No doubt there is a deeming provision in the definition of the ‘workman’ that even an employee, who is dismissed or discharge or retrenched, can raise an industrial dispute but a termination of the contract of service by way of resignation or voluntary retirement is an act of the employee and not of the employer. The Kerala High Court has clarified that an employee, who has opted for VR from service and has accepted benefits of retirement, cannot be treated as a workman under the Industrial Disputes Act. In another case also, the Kerala High Court following the earlier judgment, has clarified that where an employee has opted for VR, he will be disentitled to raise a dispute claiming status of workman under the Industrial Disputes Act. Mad HC in EID Parry Case (2008 LLR 1087) also held in same direction. Q. Whether Sunday will be included or not, while calculating leave of an employee, where it falls in between the period of leave? Ans. NO. Section 79 of the Factories Act deals with annual leave with wages whereas Explanation 2 of the
Ans. A probationer will be eligible for bonus as there is no such exclusion in the definition of ‘employee’ under the Payment of Bonus Act. Section 2(21) of the Payment of Bonus Act clearly defines ‘salary’ or ‘wages’. Its opening provision includes within it all remunerations (other than the remuneration in case of overtime work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment and includes deamess allowance, yet in express terms the definition does not include any commission payable to the employee vide clause (vii) of section 2(21) of the Act. Q: We are engaged in the manufacturing of garments and hosiery. We get a lot of work done on sub contract through our regular suppliers, who have to maintain standards of workman by our requirement. Do we need to make any contribution on those workers for E.S.I. & P.F.? Ans. The matter regarding coverage of employee of outside agency undertaking job work relating to garment manufacturing for Principal Employer outside the premises of the factory has been reviewed and it is reiterated that the job work in garment industry relating to stitching, processing, dying, button making, embroidery etc., if entrusted to outside agencies, the workers engaged by outside agencies outside the premises of the factory will not be coverable and no contribution is payable on the amount paid to such outside agencies if there is no evidence to show that the principal employer of his/her agent is supervising the works while the same is in progress. It is advised that the employees employed though the immediate employer who are working outside the factory/establishment could be covered if it established by factual verification of records and evidence that there was actual supervision of the principal employer directly or through his agent as the Supreme Court has said in M/s Calcutta Electrical Supply Corporation Ltd. v/s Subhash Chandra Bose (civil appeal no. 3197-98 of 1988 : SC) that checking of the work after the same is completed and the supervision of the work while in progress are not the same. In your case after the completion of the work if it was found that the work was not completed according to your specifications and standards, you have the right to reject the supply given to you. It will not amount to supervision by you. So you will not be liable to make any contribution under E.S.I. or P.F. act for workers engaged by sub contractors. BM
Readers are invited to ask for Solutions of their Labour Problems through e-mail - bmalwar@yahoo.com
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July 2012
From The Court Room
Latest Judgments
Recent Important
Judgments Back Wages
Back wages are to be awarded from the date of dismissal. When back-wages, if any, are granted by the Industrial Tribunal/Labour Court, it should be from the date of dismissal and not form any intermediatory date without any logic as that would be unsustainable. M.K. Surendrababu, Makkathukattil, Thrissur vs. Industrial Tribunal, Palakkad and Ors. 2012 LLR 572 (Ker. H.C.) Granting only 10% back-wages to the workman on his reinstatement is not sufficient hence 50% instead of 10% backwages will be appropriate. Zulfikar vs. Presiding Officer, Industrial Tribunal-cum-Labour Court II, Faridabad and Anr. 2012 LLR 656 (P&H H.C.)
Bonus When the Tribunal was not familiar with the bonus calculation, assessor under section 11(5) of the I.D. Act should have been appointed. When the Industrial Tribunal has been unfamiliar with the calculation of bonus, it requires to be remitted back for fresh disposal. Industrial Tribunal is empowered to appoint assessor under the Industrial Disputes ActParticularly when he is not conversant with the calculation of bonus. Managing Director, Tamil Nadu Kudineer Vadigal Variyam, Chennai and Another vs. T.N. Kudineer Vadigal Variyam Oozhiyam Central Organisation and Others. 2012 LLR 627 (Mad. H.C.) A settlement pertaining to payment of bonus is an agreement falling under section 31A(ii) of payment of Bonus Act. Instrument Research Associates Pvt. Ltd. vs. General Secretary, Karnataka Workers' Union & Others. 2012 (133) FLR 257 (Kar. H.C.)
Compensation In case of illegal retrenchment, compensation of Rs. 50,000/- in lieu of reinstatement is proper. Specially when employee remained for a short period. When there is violation of section 25F of the Industrial Disputes Act, compensation of Rs. 50,000 in lieu of reinstatement has been properly granted since workman has been employed only for a short period. Nandu Devi (Smt.) vs. Judge, Labour Court No. 2, Jaipur & Ors. 2012 LLR 582 (Raj. H.C.) In view of long litigation and short period of service, compensation in lieu of reinstatement with full back-wages is appropriate. New Delhi Municipal Council vs. Parveen Chand Sharma. 2012 LLR 588 (Delhi H.C.)
Contract Labour Act Prosecution for violation of contract labour rules will not be tenable under Minium Wages Act. Prosecution of the employer for violation of Rule 81(1) of the contract Labour (Regulation & Abolition) Rules for not displaying the date of payment of unpaid wages in English and Hindi will not be tenable when the ACJM, instead of taking cognizance under CL (R&A) Act, took the cognizance under Minimum wages Act which amounted to abuse of process of the Court. Sridhar Nath Sinha @ S.N. Sinha and Another vs. State of Bihar and Another. 2012 LLR 640 (Jhar. H.C.)
Court Powers Being empowered to modify the punishment of dismissal, does not mean that labour court will interfere in every case of punishment. Business Manager
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From The Court Room Under section 11A of the Industrial Disputes Act, the Labour Court is empowered to modify the punishment of dismissal or discharge of a workman but it does mot mean that it will interfere in every case of punishment hence under the given circumstances, the Labour Court has rightly awarded compensation and, hence, the High Court will bot interfere. Termination of the workman, for frequently absenting himself, Labour Court when it has been ordered after holding of enquiry where the workman did not participate whereas the Labour Court held the enquiry as fair and proper. Persons with Disabilities (Equal opportunities, protection of Rights And Full Participation) Act, 1995 is not applicable in the private sector hence there is no obligation on the part of employer to provide light nature of work to a person who is not physically fit.
The Authority Concerned would not grant approval under section 33(2)(b) of the Act in case the enquiry held is not proper and the consequences would be reinstatement with full back-wages.
P. Venkatesan vs. Management, Samco Metals and Alloys Limited, Vellore & Anr. 2012 LLR 584 (Mad. H.C.)
Union Bank of India vs. Presiding Officer, C.G.I.T./Labour Court, Kanpur and Another. 2012 LLR 651 (All. H.C.)
Labour Court should not have interfered with the punishment of dismissal, as imposed by the Management upon a workman who remained absent unauthorisedly for a year and two months and during service period, he visited six occasions with minor punishment hence the Award of the Labour Court awarding reinstatement with stoppage of increment is liable to be rejected.
Writ only against the order of cooperative society is not maintainable.
Bangalore Metropolitan Transport Corporation vs. Gaffar Khan & Others. 2012 (133) FLR 257 (Kar. H.C.) Once it is found by the Labour Court that the enquiry as held against the workman was not defective, it should not have interfered with the penalty as imposed by the Management. Gujarat State Road Transport Corporation vs. Nandaben & Ors. 2012 (133) FLR 292 (Guj. H.C.) High Court will not interfere in the Award of the Labour Court rejecting the dispute raised after eight years by the workman on his acquittal. Jyothi Kondaraju vs. Additional General Manager (CS and HRD) Disciplinary Authority, ITI Ltd. 2012 (133) FLR 510 (Kar. H.C.)
Disciplinary Proceedings Principles of natural justice are not only confined to mere opportunity of hering but extend to effective hearing. Disciplinary proceeding is liable to be set aside in the absence of any presenting officer. Enquiry proceedings are liable to be set aside in case the presenting officer is not appointed, if checking staff had not checked the cash with conductor. Principles of natural justice are not confined to mere opportunity of hearing only but extend to effective hearing. 44
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Delhi Transport Corporation vs. Shyam Singh. 2012 LLR 645 (Delhi H.C.) Disciplinary authority can nominate an other person to act as disciplinary authority. Awarding reinstatement with back-wages to a bank employee, who was guilty of financial embezzlement, is liable to be set aside since the Labour Court has erroneously concluded that the disciplinary authority could not nominate another person to act as disciplinary authority whereas there has been proper authorisation by the bank in favour of the disciplinary authority.
the
When writ is filed not only against the order of cooperative society but also against the order (s) of statutory Authorities under the co-operative societies Act i.e. Assistant Registrar of cooperative societies, the same is maintainable. Bheira Agricultural Co-operative society, Bheira through its Vice-President Shri Kartar Chand son of Shri Parma Ram, Himachal Pradesh vs. Shiv Kumar S/o Shri Sukhdev Ram & Ors. 2012 LLR 653 (H.P. H.C.)
Dismissal Dismissal justified where employee was found concealing facts of misconduct and dismissal with the previous employer while taking job with the new employer. Concealment of material facts, particularly relating to misconducts committed and proved while in service with the previous employer, at the time of getting job with the new employer is a serious misconduct and dismissal from service is justified. Sympathy or generosity is impermissible in law where dismissal is on the basis of loss of confidence irrespective of quantum of money misappropriated. Ram Ratan vs. Canara Bank and Ors. 2012 LLR 598 (Raj. H.C.)
Employees’ Compensation Act Interest on compensation amount becomes payable after one month from accident date and not after adjudication by commissioner. Interest for default on the part of employer becomes payable after one month from the date of accident and not after one month of adjudication by the commissioner on the amount of
From The Court Room compensation as awarded by the commissioner under the Act. Oriental Insurance Co. Ltd. vs. Sh. Sukhvinder Singh & Anr. 2012 LLR 564 (Delhi H.C.) Employer is liable to pay compensation and penalty from the date of accident. It is settled law by the supreme Court that employer will be liable to pay penalty and interest from the date of accident and is liable to pay the compensation from the date of personal injury caused to the workman and the liability arose from the date when the accident has taken place. Smt. Shuklabai Vitthal Kamble and Others vs. Mrs. Asha Chintaman Pawar and Another. 2012 LLR 622 (Bom. H.C.) Vehicle insurer cannot escape the liability from paying compensation. Insurer of the vehicle cannot escape the liability from paying compensation to the dependents of the deceased driver who died while driving a goods vehicle whereas he has a driving licence to drive passenger vehicle. New India Assurance Company Ltd. vs. K. Venu and Others. 2012 LLR 623 (Ker. H.C.) In the absence of even casual link between the employment and accidental death, the Compensation commissioner was justified in rejecting the claim. Smt. Shobhagyavati and Others vs. Management, Jaipur Mineral Development Syndicate Pvt. Ltd. and Another. 2012 LLR 639 (Raj. H.C.) High Court, in appeal, has confirmed the order of compensation by the compensation commissioner to the dependents of the deceased having died in an accident being directly attributable to the employment.
Latest Judgments Authority has been served upon the establishment indicating specific date, before it can be considered as barred by limitation. R.K. Sahu vs. Regional Provident Fund Commissioner and Another. 2012 LLR 574 (M.P. H.C.) Establishments including cooperative Bank which are not set-up under the state Act are not to be excluded by any order of the EPF Authority from the applicability of the Employees' Provident Funds & Miscellaneous provisions Act irrespective of it being registered under any Act. Joseph Varghese & Ors. vs. State of Kerala & Ors. 2012 LLR 594 (Ker. H.C.) Neither RPF Commissioner nor State Government has any authority to grant exclusion to district co-operative banks under section 16 of the E.P.F. Act. Only Central Government is empowered do so. Section 16 of the Employees' Provident Funds & Mis. Provisions Act applies to the State Cooperative Banks and District Cooperative Banks when they are employing more than 50 persons and are neither under the control of state or central Government nor set up under central, Provincial or state Act. Only Central Government is empowered under section 16(2) of the Employees' provident Funds & Mis. Provisions Act, to exclude a class of establishments from operation of the Act and neither the Regional provident Fund commissioner nor the state Government. Subhaga Kumar, M.K., Ernakulam vs. State of Kerala, rep. by its Secretary, Cooperative Department, Thiruvananthapuram & Others. 2012 LLR 625 (Ker. H.C.)
United India Insurance Company Ltd. vs. Smt. Varija & Others. 2012 (133) FLR 196 (Kar. H.C.)
Writ not maintainable when law provides appeal before appellate tribunal.
While filing an appeal against the Award of the Compensation commissioner, it is only the amount of compensation and not the penalty and interest to be deposited.
When law provides appeal under the provisions of the Employees, provident Funds & Miscellaneous provisions Act, an order by EPF Authority shall not be challenged by way of writ petition, instead of challenging it before the Appellate Authority.
Ghanshyam vs. Workmen's Compensation Commissioner, Jaipur City and Others. 2012 (133) FLR 521 (Raj. H.C.)
Employees’ Provident Fund The period of limitation for filing appeal against the order of the EPF authority under section 7-A will commence from the date of receipt of the order. Period of limitation for filing appeal against the order of the EPF Authority before the EPF Appellate Tribunal would commence from the date when copy of the order is served upon the employer of the establishment. If the establishment discharges the initial burden regarding non-receipt of the order, the burden of proof shifts upon the EPF Authorities to prove that copy of the order of the EPF
Gudalur Taluk Muslim Orphanage Committee vs. Regional Provident Fund Commissioner & Ors. 2012 LLR 658 (Mad. H.C.) Employees' provident fund contributions are liable to be paid in time and cannot be deferred to the actual drawal of disbursement, as such in case of revision of salaries effective from retrospective effect, application to make contributions gets postponed to actual date of payment hence remission of damages for late payment by the Tribunal would not be interfered by the high court in writ petition. Regional Provident Fund Commissioner vs. E.P.F. Appellate Tribunal & Another. 2012 (133) FLR 477 (A.P. H.C.) An Enforcement officer under the EPF & MP Act has to give a reasonable opportunity of hearing to the concerned party by supplying a copy of the report. Business Manager
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Alphonsa English School, Pandharpur vs. Assistant Provident Fund Commissioner & Another. 2012 (133) FLR 487 (Bom. H.C.) It is mandatory on the part of the PF Establishment to issue a certificate of Recovery Officer after declaring the employer a defaulter. In the present case the authority under the EPF Act passed an order under sec.7-A of the act, calling upon the petitioner to pay a sum of Rs. 43,10,971/-. Thereafter the petitioner filed an application under sec. 76 of the Act for review but it was rejected by the Reviewing authority. Hence the petitioner challenged that order by filling a writ petition in the High Court contending that the authority issued the order dt. 14.2.2011 under Sec.8-F(iv) of the Act and recovered the above mentioned amount which is contrary to law as no certificate of recovery was issued to the Recovery Officer. The High Court observed that it was crystal clear in view of the provisions of section 8-B that the respondent without following the procedure of the Act and without issuing any recovery certificate and without declaring the petitioner as defaulter, Passed the impugned order dt. 14-2-2011 and recovered the said amount. There fore the impugned order was set aside with liberty to the respondent to follow due procedure for implementing their own order. Navnit Motors Pvt. Ltd. vs. Union of India & Anr. LLN (1) 2012 P. 711 (Bom. H.C.) Wages paid as interim relief under section 17B of I.D. Act pending proceedings, will not be treated as basic wages to attract PF contributions. Last drawn wages, during pendency of the proceedings challenging Award the Labour Court/Tribunal, will not be treated as basic wages to attract provident fund contributions since such payment under section 17B of the Industrial Disputes Act is in the nature of subsistence allowance. M/s. Orissa Air Products Pvt. Ltd. vs. Regional Provident Fund Commissioner (C&R), Khurda and Another. 2012 LLR 649 (Orissa H.C.)
E.S.I. The Employees' Insurance Court has rightly set aside order for levy of damages for late payment of ESI contributions when there was a stay for deposit. Employees' State Insurance Corporation, Regional Office, Karnataka vs. N.C. Panicker & Another. 2012 (133) FLR 508 (Kar. H.C.) Order of Government granting or denying exemption is open to judicial review. The petitioner is public limited Company which had earlier enjoyed exemption from the provisions of the Act. Such exemption was granted to the permanent employees of the factory under sec. 87 of the Act. The dispute in this case relates to the denial of exemption for the period from 1.1.1997 to 46
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31.10.1997 and 1.1.2001 to 31.12.2001. By an order dt. 3.6.2008 the petitioner company was denied the grant of exemption. Feeling aggrieved there by the petitioner challenged the impugned order by filling a writ petition in the High Court. The petition was opposed by the ESI Corporation on the ground that denial of exemption could be questioned only before the ESI Corporation. The High Court pointed out that section 75 (1) (g) of the Act essentially deals with the dispute between the employer and ESI Corporation. The dispute is also in respect of any contribution or benefit payable under the Act in respect of an establishment covered by it. It was further observed that the said section does not speak of a dispute with the government which only has got the plenary power to grant exemption. The order granting or denying exemption is certainly open to judicial review under Article 226 of the Constitution of India. Hence the writ petition was allowed with a direction to the 3rd respondent to reconsider the issue. Kancor Ingredients Limited vs. The Regional Director of Kerala & Ors. LLN (1) 2012 P. 772 (Ker. H.C.)
Ex-Parte Award In the absence of any proof of receipt of summons, ex-parte award is liable to be set aside. In the absence of any report that the Management has refused to accept the summons, the Labour Court should not have proceeded exparte whereas the reliance upon the postal AD Cards has also not been upon the record on the date of proceeding ex-parte hence such an exparte Award is liable to be set aside. Management of DDA vs. P.O., Labour Court & Anr. 2012 LLR 590 (Delhi H.C.) Ex-parte award was rightly not set aside, when the application for the purpose was neither filed by the management nor by any authorised the representative. Industrial Tribunal has rightly rejected the application for setting aside the ex-parte Award when it was neither filed by the Management nor the authorised representative of the Management at that time. Hence the High Court will not interfere with the Award of the Industrial Tribunal. The Management of M/s Janapath Hotel vs. All India Parayatan Jan Majdoor Sabha & Ors. 2012 LLR 612 (Delhi H.C.)
Factories Act Closing down the factory without approval under section 25-O of the I.D. Act is also clear violation of Rule 100A of the State Factories Rules. Chief Judicial Magistrate has rightly taken the cognizance of an offence committed by the employer under section 92 of the Factories Act
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when the petitioner failed to establish that it has taken permission under section 25-O of the Industrial Disputes Act for closing down the factory hence there was clear violation of Rule 100A of the Factories Rules of the State. B.L. Raina and Another vs. State of Bihar ( Now Jharkhand) and Another. 2012 LLR 641 (Jhar. H.C.) Where there is valid nomination of occupier and manager of factory, criminal proceedings against others under the Factories Act will not be valid. A complaint against the petitioners was filed by the Factory Inspector alleging that they had committed breach of the provisions of the Factories Act and Rules framed thereunder. On the basis of that complaint, process was issued against the petitioners requiring them to attend the court. Feeling aggrieved thereby, the petitioners filed a petition under the provisions of Cr. P. Code for quashing the said order. The grievance of the petitioner was that there was a valid nomination having been filed in Form-I by Havells (India) Ltd. as occupier and one Shri Rajesh Gulia as the Manager in the factory. But even then he Magistrate issued process against the petitioners. The High Court observed that there was a valid nomination of occupier and manager in Form-I and it had been accepted by the respondents. Therefore prosecution of persons other than those nominated could not be sustained. Hence the criminal proceeding against the petitioner was quashed. Qimat Rai Gupta & Ors vs. State of H.P & Anr. LLJ (I) 2012 P.440 (H.P. H.C.)
Fixed Term Employment If the contract of service with the workman is for a fixed term for completion of specific project or job, his termination would fall under the purview of section 2(oo) (bb) of the Industrial Disputes Act and it would not be an illegal termination in violation of section 25F of the Industrial Disputes Act. Balvikas Yojna Adhikari vs. Ahmedbhai Siddiqbhai Malek & 2 Ors. 2012 LLR 660 (Guj. H.C.)
Gratuity For gratuity forfeiture, order is required to be passed after notice to the employee. In the absence of any such order employer cannot forfeit the gratuity. As per provisions of section 4(6) (1) (a) of the Act, the gratuity of an employee, whose services have been terminated for any act i.e., wilful omission or negligence causing any damage or loss to, or destruction of property belonging to the employer, shall be forfeited to the extent of damage or loss so caused. The gratuity of an employee maybe wholly or partially forfeited:
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or (ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by the employee in the course of his employment. Forfeiture of gratuity without notice to the employee and without passing a specific order to this effect is not sustainable. Dhanlakshmi Bank Ltd. vs. Ramachandran. 2012 LLR 565 (Ker. H.C.) Gratuity paid can be filed only at a place where from he has retired. A claim for gratuity by an employee lie at a place where from he has retired and not at any other place hence the High Court upheld the order of the Appellate Authority confirming the order of the controlling Authority by rejecting the claim application for want of territorial jurisdiction. Prafulchandra Baldevprasad Dave vs. Gujarat Fisheries Co-op. Association Ltd. & 2 Ors. 2012 LLR 578 (Guj. H.C.) By an amendment of 2009, a teacher is not only an employee under the payment of Gratuity Act but is entitled to get gratuity with retrospective effect from 3.4.1997. President/Secretary, Vidarbha Youth Welfare Institution (Society), Amravati vs. Pradip kumar and Others. 2012 LLR 618 (Bom. H.C.) In the absence of a proper order by the employer, forfeiture of gratuity of an employee will not be sustainable. Dena Bank vs. Manjulaben M. Thakor (Smt.) & Anr. 2012 LLR 648 (Bom. H.C.) While considering the claim of an employee for gratuity for the period as rendered by him, the employer must not create heterogeneity in extending the benefit to some and denying to others, which is hit by Articles 14 and 16 of the Constitution of India. Sibaram Pradhan vs. State of Orissa & Others. 2012 (133) FLR 449 (Orissa H.C.)
Industrial Disputes Act Claim of bonus and gratuity is not maintainable under section 33 C(2) of the Industrial Disputes Act. Claim for unpaid wages can be decided by the Labour Court under section 33 C(2) of the Industrial Disputes Act. A claim not based on pre-existing rights arising out of any settlement, Industrial Disputes Award or decree of the court, is not maintainable under section 33 C (2) of the Act. Vishnu Kumar Mangla vs. Dhaneshwar Gupta & Sons. 2012 LLR 575 (Delhi H.C.) Compliance of Sec. 33(2)(b) of I.D. Act related to approval of the authority for Business Manager
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From The Court Room dismissal of a workman during pendency of an industrial dispute, cannot be streched beyond reasonable limits. Legal position is that the compliance of section 33(2)(b) of the Industrial Disputes Act cannot be stretched beyond reasonable limits. Order of dismissal or discharge cannot effectively terminate the relationship of employer and employee till approval is granted. If approval for dismissal is not accorded by the concerned Authority, the workman will be treated in employment of the employer and entitled to full back wages for the intervening period. The employer may subsequently proceed to terminate the services of the employee as per provisions of law. Colgate Palmolive (India) Ltd. vs. The Asstt. Commissioner of Labour and Conciliation Officer & Anr. 2012 LLR 615 (Bom. H.C.) Law does not permit to terminate a workman without approval when industrial dispute is already pending. Reinstatement with full back wages is jusitfied. Termination of a workman, without approval of the concerned Authority before whom an industrial dispute is pending for adjudication, would be illegal. Interference of the High Court in the Award passed by the Labour Court would not be appropriate only to reappreciate the evidence and merits of the case without substantial question of law involved, in its writ jurisdiction. Delhi Transport Corporation vs. Raj Pal. 2012 LLR 642 (Delhi H.C.) No dispute of parties between whom there is no employer-employee relation could be referred, much less adjudicated. The respondents who are represented by their union in Srinathji Bhandar, Calcutta, raised a dispute when their demand for enhanced salary was not acceded to by the management. The dispute was referred to the Industrial Tribunal for adjudication and it was allowed by an award holding that the respondents were justified in demanding increase in their salary. Feeling aggrieved by the said award the appellant filed a writ petition in the High Court contending that the reference made to the Industrial Tribunal could not be sustained as the respondents were never appointed by the appellants. The Single judge however dismissed the petition. Hence the appellants filed an appeal before the Division Bench.The Division Bench observed that the Tribunal did not appreciate that the demand for increase in salary of the workmen cannot be entertained by the appellants since such demand can be considered and fulfilled by the appointing authority. The Division Bench further held that the appellant was not the employer in respect of the respondent workmen represented by their union and therefore in the absence of employer employee relationship no industrial dispute could exist. Hence the appeal was allowed and the award passed by the industrial Tribunal was set aside. Nathji Bhandar & Anr vs. State of West Bengal & Ors. LLJ (I) 2012 P. 410 (Cal. H.C.) 48
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Interim Relief Application filed even belatedly for interim relief is maintainable and to be paid by the management from the date of award. Workman cannot be debarred from payment of wages under section 17B of the Industrial Disputes Act, 1947 form the date of impugned Award of the Industrial Adjudicator on the grounds of his moving an application belatedly or on other grounds relating to the merits of the challenge to the impugned Award pleaded by the Management/petitioner. GAIL India Ltd. vs. Tarkeshwar Prasad Kharawar. 2012 LLR 562 (Delhi H.C.) Small time patty business by family members of employee will not effect of right of employee to get interim relief under section 17-B of the I.D. Act. It cannot be said as gainful employment. Last drawn wages during pendency of the proceedings before the High Court will not be denied to a workman who, being a jobless, is only helping the other members of the family in a small business. As such, his engagement will not be treated as gainful employment. Lumax Automotive Systems Ltd. vs. Its Workmen, Hindustan Engineering & General Mazdoor Union and Others. 2012 LLR 614 (Delhi H.C.)
Maternity Benefit Act Even if the employee is on contractual appointment, having no such condition of maternity benefit, employee would be entitled for maternity benefit under the Act being a statutory provision. The provisions of Statutory Act and State Policy as per Constitution of India would prevail over the terms and conditions of contractual employment. Where the terms and conditions of appointment or Rules and Regulations the maternity benefits are absent, the provisions of Maternity Benefit Act, being a statutory provisions ,and that of public or state policy will automatically apply. C. Vidya Murthy (Smt.) vs. Bangalore Metro Rail Corporation Ltd. 2012 LLR 602 (Kar. H.C.)
Minimum Wages Act Ten times penalty for not paying minimum wages is liable to be set aside. In the absence of any supporting reasons for imposing ten times penalty for unpaid wages, the order pertaining to penalty is liable to be set aside. Mohandas vs. Authority, Minimum Wages Act/Dy. Commissioner Labour and Others. 2012 LLR 630 (Mad. H.C.) Teaching staff working in educational institutions cannot be brought within the ambit of Minimum Wages Act.
From The Court Room The Petitioner society is a religious charitable and educational society registered under the Society's Registration Act and it runs primary and secondary schools which are situated in remote areas covering the students of poor and downtrodden. All these schools are governed by the Tamil Nadu Private Schools (Regulation) Act 1973 and common Labour Laws cannot be applied to the educational institutions. Even then the respondent government issued an order dt. 5.5.2003 fixing minimum wages for the employees in the petitioner's institution. While exercising the power conferred under sec.27 of the Minimum Wages Act, the respondent government wrongly issued an order dt. 20.7.1988 and included several primary educational institutions under the Act running on commercial line. According to the petitioner the schools run by them are on charitable motive and there is no commercial purpose involved. Feeling aggrieved by the order of the respondent, the petitioner approached the High Court to challenge the same. The High Court relied upon the decision of a Division Bench of the Jharkhand High Court in the case of Chacha Nehru Vidyapeet V. Authority under M.W. Act 2001 I LLJ 1439 wherein it was observed that the non teaching employees like clerks, peons, malis etc. working in educational institutions come within the purview of the Minimum Wages Act and they are entitled to get minimum wages fixed from time to time. But the teachers are not covered under the Act. Reference was also made of the decision of the supreme Court in the case of Bhikusa Yamasa Kshatriya v. Sangamner, Akola Taluka, Bidi Kamgar Union 1963 I LLJ 270 in which it was observed that the object of the Minimum Wages Act is to prevent exploitation of the worker and for that purpose, it aims at fixation of minimum wages which the employers must pay. Imparting of education by the teachers cannot be construed as skilled or unskilled manual work or clerical work. It is in the nature of a mission or a noble vacation. In this view of the matter, the High Court partly allowed the writ petition by quashing the impugned order in so far as it related to the teaching staff of the petitioner's school. Society of the Franciscan Sisters of St. Joseph vs. State of Tamil Nadu. LLJ (II) 2012 P.15 (Mad. H.C.)
Persons With Disablities Act Employee disabled with epilepsy will be entitled to benefit under section 47 of Persons with Disabilities Act. The petitioner was appointed as driver in the respondent Corporation on 18-3-1994. He suffered ailment with effect from 1-6-2000 and therefore he applied for medical leave. Thereafter, since the petitioner was not fit to resume his duties, the respondent Corporation decided to constitute a medical board to ascertain. Whether the petitioner was fit to discharge his duties or was feigning illness. The medical board opined that the petitioner was suffering from epilepsy and was not fit for the job of driver. Therefore it was advised that the respondent could be offered some other job than that of the driver. However, the respondent Corporation, instead of proceeding with the matter under the Persons of Disability Act, issued a show cause notice to the petitioner why penalty of removal from service should not be imposed on him. The petitioner filed his reply but without
Latest Judgments considering the same, the corporation removed him from service. In appeal, the Managing Director of the respondent Corporation substituted the penalty of removal by compulsory retirement. Feeling aggrieved thereby the petitioner approached the High Court by filing a writ petition. The High Court observed that the respondent Corporation has committed following illegalities namely: (i) regular inquiry has not been held against the petitioner and no separate reasons were given that it was not practicable to hold such an inquiry, (ii) the petitioner was a regular employee of the Corporation and his services could not be terminated by invoking section 25-F of the I.D. Act, (iii) the petitioner was suffering from epilepsy and his case was squarely covered under the mandatory provisions of the Persons with Disability Act, 1995 In view of this position, the writ petition was allowed with a direction to the respondent Corporation to reinstate the petitioner in service and thereafter to consider his case under sec. 47 of the Persons with Disability Act. Shyam Singh vs. Himachal Road Transport Corporation & Ors. LLJ (I) 2012 P.361 (H.P. H.C.)
Probationer Order of termination of service of a probationer is not simpliciter, if it is based upon some misconducts on the part of the probationer and liable to be challenged and quashed. Order of termination of service even of a probationer, containing two reasons, one being stigmatic and the other not, should fail whereas order of dismissal on the basis of disciplinary proceedings, containing more than one reasons, some valid and some not valid, could sustain. Doctrine of severability is applicable to orders passed in pursuance of disciplinary proceedings and to the case where order is sought to be branded as termination simplicitor. Anand Lenin Vethanayagam vs. The Registrar, Pondicherry University, Pondicherry. 2012 LLR 633 (Mad. H.C.)
Punishment An employee cannot be imposed another punishment second time for the same misconducts when he has already been punished for the same. M.K. Surendrababu, Makkathukattil, Thrissur vs. Industrial Tribunal, Palakkad and Ors. 2012 LLR 572 (Ker. H.C.) Punishment of reduction in scale of pay, as imposed upon the workman guilty of disorderly and indecent behaviour, will not be violative of principles of natural justice hence the Tribunal has rightly declined to interfere. Prabhakar Sahoo vs. Presiding Officer, Industrial Tribunal, Rourkela & Another. 2012 (133) FLR 339 (Orissa H.C.)
Reference The appropriate government was clearly in error in rejecting to refer a dispute for adjudication since it should have been referred for Business Manager
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adjudication and also while rejecting to refer a dispute, the government is required to give supporting reasons. Ram Shiromani Yadav vs. Conciliation Officer/Dy. Labour Commissioner, Allahabad & Others. 2012 (133) FLR 390 (All. H.C.)
Reinstatement Reinstatement with 25% back wages proper when termination was effected without issuing chargsheet and conducting enquiry. Termination of service of workman without issuance of charge-sheet, conducting of domestic enquiry and service of show cause notice is bad in law being in violation of principles of natural justice which would result in reinstatement of the workman with back-wages. The Lohar Majra Kalan Cooperative Agriculture Service Society Limited vs. The Presiding Officer, Labour Court, Ludhiana and Another. 2012 LLR 592 (P&H H.C.)
Resignation Labour court has rightly held that the Security Coordinator, an Ex-serviceman drawing wages of Rs. 8,500 per month, is a workman but in view of his voluntary resignation, his dispute challenging alleged termination has been rightly rejected by the Labour Court. R. Ramanujam vs. Senior Manager, M/s. By Design (Private) Limited, Bangalore. 2012 (133) FLR 252 (Kar. H.C.)
Retrenchment Termination of a chowkidar, on closing down the site office without following the principle of last come, first go' will be violative of section 25F of the Industrial Disputes Act and hence he will be entitled to reinstatement with backwages. Chief Engineer, Rourkela Site Office vs. State Of Orissa & Others. 2012 (133) FLR 275 (Orissa H.C.) Termination sans retrenchment compensation and one month's pay will be illegal and the workman will be reinstated with 10% back-wages since there has been delay in raising the claim by the workman. State Of Gujarat and Another vs. Kalidas Bhikhabhai Dudhrejiya & Others. 2012 (133) FLR 297 (Guj. H.C.)
Retirement Law liad down in judgment, as it is, the question of retrospective or prospective does not arise hence the Laboratory Assistant, who has been retired at the age of 58 years, would be entitled to serve upto 60 years. 50
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Rambhau Shaymrao Bhusari vs. Dr. Punjabrao Deshmukh Krishi Vidyapeeth, Akola and Another. 2012 LLR 621 (Bom. H.C.)
Settlement Benefits of settlement cannot be extended to all workmen under sec. 33-C(2) if they are not in the employment on the day of settlement. The contesting respondents workmen were in the employment of the petitioner company. For various reasons they tendered their resignations in the year 2006 and the same were accepted by the management. Subsequently, there was a settlement between the management and other workmen of the company as per which the workmen who were in service were given incentive payment at the rate of 11.67% for the accounting year 2006-2008. The Contesting respondents did not get this benefit and therefore they filed claim statement before the Labour Court under sec. 33-C(2) of the I.D. Act. Their claim was based upon the fact that the settlement relates to the year 2006-2007 and during the said accounting year they were in service and therefore even though it is a settlement under sec. 18(1), they are also eligible for such claim. The Labour Court allowed their claim holding that even though they were not in service, they were entitled to get benefit of the settlement. Being dissatisfied with the said order, the management filed a writ petition in the High Court contending that once the workmen had resigned form their service, there being no legal entitlement for them to get the benefit claimed and therefore the court cannot extend the scope of the said settlement. The High Court agreed with submission made by the petitioner management and held that incentive payment itself is confined to a class of workmen. The Labour Court's finding that they can interpret the settlement will arise only if the settlement gives benefits to all the cases of the workmen. There is no scope for interpreting such clause in the settlement. When that concession is not there, the court in a proceeding under sec. 33-C(2) cannot extend the scope of the said settlement. The settlement only identifies number of workmen and therefore if at all the workmen have any right, they must raise a dispute with reference to their entitlement to get incentive payment as available to other workmen. Hence the petition was allowed. Management of A.R.C. Retrading Co. P. Ltd. vs. Presiding Officer, Lobour Court. FLR (132) 2012 P.1014 (Mad. H.C.)
Specific Relief Act Contract of personal service cannot be enforced since such suits are barred by the Specific Relief Act, particularly when an employee is not a Government employee. An employee of the private sector company, specially when he is not protected by the Industrial Disputes Act, cannot have parity of treatment in matter of compensation vis-a-vis government employee hence the high court set aside the decree allowing the compensation to the respondent who
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will be entitled to only one month salary in lieu of notice for termination of his service. At the time of termination of the respondent by the appellant employer, he was 34 years old and was to serve upto 60 years as per rules. Accordingly, he demanded 26 years' salary as compensation which, though allowed by the civil court but the High Court observed that the contract of personal service cannot be enforced since such suits are barred by the specific Relief Act- particularly when an employee is not a government employee. G.E. Capital Transportation Financial Services Ltd. vs. Shri Tarun Bhargava. 2012 LLR 608 (Delhi H.C.)
Standing Orders Modification in the Standing Orders related to retirement age from 58 to 60 held proper, when it was done after the expiry of the settlement between Union and Management. Enhancement of retirement age from 58 years to 60 in the Certified Standing orders, as sought by the employees' Union, has been rightly approved by the certifying officer and upheld by the Appellate Authority in view of the similarly situated industries. When a settlement is for a stipulated period, no demand even pertaining to increasing the age of retirement could be made since it will involve financial implication but even after expiry of the settlement, the benefits of the settlement though available to the employees but on expiry of the prescribed period, there will be no ban in seeking enhancement of retirement age by the modification of the certified standing orders. Since the High Court has upheld the order of Certifying officer and the Appellate Authority pertaining to increase in the age of retirement effective from 26.8.2011, the employees who have retired from service between the modification of the standing orders and the operation of the judgment of the High Court, the employees who have been retired, will be entitled to monetary benefit. M/s Kennametal India Ltd. vs. Kennametal india Employees' Association. 2012 LLR 600 (Kar. H.C.)
V.R.S. Once the employee receive all benefits under V.R.S. employer-employee relationship ceases. He cannot get benefits of modified V.R.S. thereafter. After receiving the payment in full and final under the Voluntary Retirement Scheme and getting relieved, there comes a complete cessation of the jural relationship between the employer and employee. Petitioners are not entitled to get benefit of the modified voluntary retirement scheme when they have already received their dues in full and final and relieved as per earlier voluntary retirement scheme. Dinesh Chandra Mishra and Another vs. Project and Development India Ltd., Dhanbad & Ors. 2012 LLR 596 (Jhar. H.C.)
Petitioner's request for VRS on medical ground was held rightly rejected by the employer. The petitioner joined the services of the respondent company in the year 1984 and she earned promotions from time to time. As of now she is working as Senior Office Superintendent in the pay & Accounts department. On 9-5-2009 she addressed a letter to the Senior Manager of the department stating that she is falling sick frequently on account of various ailments and that she has therefore decided to seek voluntary retirement on medical grounds. The petitioner sought permission to take VRS. The senior manager referred the case of the petitioner to the Medical Board. The petitioner appeared before the Medical Board who according to her, found her unfit to continue in the service. The petitioner therefore, again made a representation on 4-12-2009 to the chairman and Managing Director to permit her to retire on VRS on medical grounds. However, the petitioner's request was not acceded to and she was informed to attend her duty. Feeling aggrieved by the said communication, the petitioner approached the High Court by means of a writ petition contending that there is no basis for not acceding to her request for VRS. On the other hand, it was contended by the respondents that there is no scheme for VRS in vogue and that it is the prerogative of an employer to retire an employee on medical grounds, and not the other way. The High Court pointed out that the petitioner has not referred to any VRS which is in vogue at the relevant point of time. VRS on the one hand and retirement on medical grounds on the other hand cannot go together. The first one is a facility which an employee can avail of if the scheme is in vogue and the second is the prerogative of the employer to dispense with the services of an employee if he/she is found medically unfit. The High Court therefore held that the petitioner cannot compel the respondent to retire her on medical grounds. Hence the writ petition was disposed of with a direction not to treat the petitioner's application to terminate her services on medical grounds and it shall be open to the respondents to assess the ability and fitness of the petitioner to discharge the functions. B. Lakshmi Sampoornam vs. Bharat Dynamics Ltd. LLN (1) 2012 P.702 (A.P. H.C.)
Workman In the absence of any proof by the management otherwise, the person would be held workman. When the Management takes an objection that the claimant is not a workman, it has to prove through documentary evidence that the nature of duties of the claimant are supervisory, managerial or administrative, otherwise the objection of the Management would be held unsustainable. M.K. Surendrababu, Makkathukattil, Thrissur vs. Industrial Tribunal, Palakkad and Ors. 2012 LLR 572 (Ker. H.C.)
Courtsey - Labour Law Reporter,FLR, CLR & APS Labour Digest
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RAM NIWAS BAIRWA Regional P.F. Commissioner (II), INDORE
The Employee’ Pension Scheme, 1995
Know About It! There is no provision in the EPS 1995 to file 'date of birth' in the office records. Therefore, any information about date of birth which is given under the EPF Scheme 1952, is taken as basic data for EPS 1995.
and in form No.2 (Rev); but having different dates of birth. In such case, correct date of birth into be determined. Specific date of birth is given, but, a member wants to change it on the authority of a document either to remain in service or to get pension earlier without or with minimum reduction in retiring pension.
ADMISSION OF DATE OF BIRTH : 4. In cases where date of birth is to be admitted in the record, any information given by the employer is acceptable. Obviously the employer may be have certain basis, on which, he is going to regulate employees' service.
DOCUMENTATION Like other matters, the first step is not the introduction of the Scheme and the application etc., but, the most difficult issue of the Date of Birth, and the supporting documents which required to be submitted with the claim applications. From this April (2012), the EPFO has switched over to e-returns, that may resolve many problems, but, the relevance of the issues may continue. In the beginning, those matters have been listed which are generally required for settlement of pension claims. It is not exhaustive. The office may require more information depending of the merits of the case, which is to be supplied.
DATE OF BIRTH : 1. There is no provision in the EPS 1995 to file 'date of birth' in the office records. Therefore, any information about date of birth which is given under the EPF Scheme 1952, is taken as basic . data for EPS 1995. 2. Those source of information about date of birth are Form No. 9 (revised ) / Form No. 5 (revised). In case of an exempted establishment Form No. 3(P.S)/ Form No. 4(P.S.) Form No. 2 (revised) nomination form filed under para 61 of the EPF Scheme 1952. 3. There happen three types of situations No information about date of birth. In such case, admission of date of birth is required. There is information in Form No. 5 (Revised) or Form 9 (Rev.) 52
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As for date of birth is concerned, that is required to be kept as per the law governing the establishment. It can be as per requirements of the Factories Act (as per the Standing Orders of the Factory it may be duly certified by the Medical Officer of the Factory); in Mining Industry, it can be the information contained in the Form 'B' register required to be kept under Mining Act; in Beedi Industry, it is the card/registration with Beedi Workers Welfare Board; it can be Form 1 the declaration given by the employee under the ESIC Act, in transport industry it can be Driving License and it can be based on the cirtificates of the Education Board , similarly so many sources can help.
CONFLICTING DATES OF BIRTH : 5. In cases where date of birth is on record, but different dates are there in Form 9(revised)/5(revised) and in Form No. 2. In such cases, a careful and logical decision is always appreciated and the memberbeneficiary is treated in way in which he is not put in hardship and harassment. 6. Sometimes, form No. 9 (Revised) / 5 (revised) are filled in a casual manner, sometimes, the column, relating to Date of Birth is left blank. The information supplied in these forms happen to be a verbal saying of information given by the member to the form filling clerk/personnel or the
The Employee’ Pension Scheme, 1995
Know About It!
establishment. Hence, the reliability of date of birth being nearest to the correct becomes questionable. Generally, date of birth is not shown in form 9(R)/5(R), only the age is shown, which used to be as on the date of filing this form. As such, it is not proper to take that age as on the date of joining the membership for P.F. 7. Information in Form No. 2 happens to be a declaration by the member himself and attested by the employer. Hence, the ear-say information recorded by a clerk in Form No. 9(Revised)/5(Revised) can not be correct information in the documentation. Therefore, the information given in Form No. 2 is to prevail over any information that is recorded in Form No. 9(Revised )/5(Revised). This contention has been appreciated by the Judiciary in the case under the E.P.S. 1995 itself (Kerala State Consumer Protection Forum decision).
CHANGE IN DATE OF BIRTH : 8. Where the change in the date of birth at the time of claim or retirement/superannuation is involved; it is not permissible even as per decision of the Supreme Court in various cases. However, as the requirements of administration of a Social Security Scheme and knowing that the members / beneficiaries are largely illiterate, not much fond of documentation, frequently migrating from one Industry to another and from organized sector to un-organized sector or vice versa, some other type of consideration is expected. This is also necessary, looking to the circumstances, mentioned in Note above; the change in date of birth is considered. For this purpose, specific directions / clarifications have been issued and norms have been laid down. Those have to be followed.
AN IMPORTANT JUDGEMENT OF SUPREME COURT Date of Birth extended in Form 'B' Register of a colliery employee was 1932 employee acquired certificate of Gas Testing and Mining Sirdarship on passing exam conducted by Director General of Mines safely, where in date of birth mentioned as 9.2.1946. In terms of services rules Medical Board examined employee and fixed date of birth as 13.10.1936. Employee filed writ petition claiming his date of birth be corrected in service record as 9.2.1946 as per acquired certificate High Court directed the employer to correct as prayed for: From the provisions in the instructions providing for determination/modification of date of birth of an employee, as applicable in the instant case, it is clear that in case of dispute over date of birth of an existing employee, who has neither a matriculation certification/Secondary school certification or a statutory certificate in which a manager has certified the entry regarding date of birth to be authantic, The employer is to refer the matter to the Medical Board. Therefore, no fault can be found with the action of the employer. the Medical Board, as laid down in the instructions is to consider the matter on the evidence available will the colliery management and in accordance with the requirement of medical jurisprudence. In these circumstances, there was hardly any scope for the High Court to interfere with the date of birth as determind by the employer
(appellant herein) and issue a writ of Mondamus that the date as claimed by the employee(The respondent herein) should be accepted. No scope for Hight Court to interfere with the date of birth as determined by employer. The Judgement of High Court in set-aside. (G.M.Bharat Coking Coal Ltd. V/s Shib Kumar Dusad & Others-2001-LLR-74-SC)
CLAIMS : 9. In cases of MMP following points to be kept in mindType of pension and the date, from which the pension is required , be mentioned. Option for commutation be given either affirmative or negative. Option for ROC be marked as "Yes" or 'No'. If 'Yes', the category of option I, II or III be specifically mentioned. List of family members including all family members whether eligible for pension or not. This may ease payment in case of death of the member or widow. The bank account through which pension is required. Joint photograph. Descriptive Roll containing information of Personal identification marks and finger prints. 10. In cases of family members, following points to be kept in mind Type of pension-WP/OP/N.P or W.P. to father/mother. In certain cases, where member superannuates and dies without claim, the date of superannuation and date of death are to be mentioned specifically. List of family members including all family members whether he / she is or will be eligible for pension or not, with date of births of all members. The bank account No. of all member's so that at the time of switching over the pension to him or her may not delay. Photo graphs. Descriptive Roll including personal identification mark & finger prints. 11. The employer has to ensure completion of claim form in the light of above. However, certain collateral and additional informations as required to be supplied, may also be supplied for prompt settlement of claim. Those can be listed as under-not exhaustivemay be some additional information as may be required by the office depending on the merits & interests of the case. Ensure that the rightful claimant / claimants ar preferring the claim. All the columns are filled in correctly. Attestation on the claim form at proper places including attestation of list of family members, photograph and personal details/bio- metrics in Descriptive Roll is done with rubber stamp of designated authorized officer's official seal. Form No. 3A(revised) or 7(PS) as the case may be, for the current year is enclosed. Break in Service - as regards past service is concerned and details of NCP days with regard to Business Manager
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The Employee’ Pension Scheme, 1995
Know About It!
Actual Service is concerned, is enclosed; In the case of M.M.P. Copies of Certificates of date of birth of children/family members are attested and enclosed with. Wherever necessary, the Guardianship Certificate be advised to be obtained and an attested copy thereof be attached.
MEMBERSHIP Membership of EFPS, 1971: 1. The membership to the Employees' Pension Scheme, 1995 is based on certain provisions of the ceased Employees' Family Pension Scheme, 1971 which relates to "retention of membership" and are reproduced here-under :"Retention of EFPS (old) Membership" Para 6. Retention of membership.- A member of Family Pension Fund shall continue to be a member of the Family Pension Fund till he attains the age of 60 years or till he retires or quits the service and withdraws or becomes entitled to withdraw the benefits to which he is entitled under this Scheme or dies during the period of reckonable service, whichever I the earliest : Provided that, where there has been a break in the member-ship of the Family Pension Fund on account of closure of an establishment, strike, lock-out, leave without pay, retrenchment, resignation, termination, discharge or for any other such reason either under the same establishment or under defferent establishments covered under the Act such member, if he has not withdrawn the benefit to which he is entitled under this Scheme and his provident fund accumulations under Employees, Provident Fund Scheme, 1952, or the Provident Fund Scheme of an exempted establishment, as the case may be, shall continue to be a member of the Family Pension Fund: Provided further that such breaks during which no contributions to the Family Pension Fund are payable shall be excluded from the total reckonable service." 2. Membership of the EFPS 1971, was given simultaneously with the membership of the EPF Scheme. Hence, in any case, if the EFPS membership was given after the membership of the EPF i.e. in the case of belated coverage, the EFPS membership is required to be restored from the date the employee became member of the EPF Scheme, and contribution for that period is to be diverted from the PF account of the member. 3. Breaks of more than one year, even between two spells, which were not willfully i.e. beyond the control of the member, can be regularised by paying or diverting the contribution from P.F. account of the member. 4. As soon as, the P.F. and F.P.F. accounts were closed, the F.P.F. Membership was bound to end, such was the provision in the E.F.P.S. 1971. 5. The cases, where P.F. account is not finally settled but paid out partly either as an advance or otherwise, and the F.P.F. account is not settled; the membership is treated as retained, after introduction of the E.P.S 1995 and can be regularized as countable past service by paying contribution for the noncontributory period. 54
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MEMBERSHIP OF E.P.S., 1995 : 6. Every employee who becomes member of the E.P.F. on or after 16.11.95 has to become member of E.P.S. 1995 and also every member of the cased E.F.P.S. 1971 as on 16.11.95 has to become member of the E.P.S. 1995 from 16.11.95 compulsorily. ( All the objection/writs filed in different High Courts demanding options from EFPS members to join E.P.S. 1995 have been disallowed by the Supreme Court in November, 2003. The criterion of EPS membership is the membership of the E.F.P.S. 1971 and not the employment as on 16.11.95. 7. Such employee, who joined P.F. membership before introduction of EFPS,1971 and not opted the EFPS,1971, may also join the EPS,1995 by giving option. Such employee may become member of EPS,1995 w.e.f. 16.11.1995; but, he is required to pay contribution into the Pension Fund from 1.3.1971 along with interest @ 8.5% p.a. in cash or by diversion from his P.F. account. 8. As per the announcement in the Parliament in 1993 about introduction of E.P.S. w.e.f. 01.04.1993, window has been kept open for the EFPS 1971 members to get in, who ceased to be members of EFPS 1971, would have been entitled to receive pension under E.P.S.1995 if, it would have been introduced w.e.f. 1.4.1993, whether they have taken withdrawal cum retirement benefit or family pension by the family members in case of death or not. Thus, to clarify this in easy terms, we can say that every E.F.P.S. 1971 member who ceased to be member of it, by withdrawing benefits available under that scheme i.e withdrawl benefits is eligible to opt to become member of E.P.S. 1995. to get pension later-on.
TIME LIMIT FOR OPTION : 9. Initially, a six months' period was given in para 7 for exercising option to become member of the EPS1995, but, by an amendment in para 7 in February, 1996, this time-limit of six months has been deleted. Therefore, now, the option can be given at any time; but in cases mentioned in Note 2.7 above, the option can be given during the employment only and that too before attaining the age of superannuation i.e. 58 years.
REFUND OF BENEFITS TAKEN : 10. Such member, as mentioned in Note 2.8 above, who has taken withdrawal cum retirement benefit has to deposit the full amount with interest along with option for joining E.P.S. 1995 [Para 17(2)]. 11. Cases where member died between 01.04.1993 and 16.11.95 whether while in service and paid one month's contribution into Pension Fund or away from service, age below 60 years and ten years' or even less service as reckonable service, his family is entitled to get pension under EPS 1995. If, any benefit paid either as withdrawal benefit or Life Assurance benefits or family pension is required to be adjusted against the arrear of difference payable under EPS 1995. Refund of such benefits is not to be insisted for. [ para 17(1)]. 12. In short- not entitled for Pension whose date of birth is prior to 01.04.1933, put less than 10 years eligible service, not deposited Withdrawal Benefit + interest, not exercised option to join EPS 1995. BM
SHANTIMAL JAIN Advisor, Rajasthan Textile Mills Bhawanimandi (Raj.)
Managing Discipline
Unenumerated
Misconducts In majority of judicial verdicts, it is held and ruled that an employer is estopped from taking strict action in the event of a delinquent committing a misconduct which does not find place in the list of acts and omissions that constitute misconduct in the Standing Orders or Service Rules.
T
he industrial misconduct has developed into a concept with the passage of time but it is unfortunate that it has neither been defined in the Industrial Disputes Act 1947 or in the Industrial Employment (Standing Orders) Act 1946. We are therefore left with no other option except to seek its dictionary meaning and the dictionary meaning of the word misconduct is "improper behavior, intentional wrong doing or deliberate violation of a rule of standard behavior". So inspite of the fact that this expression is not capable of precise definition, it reflections receives its connotations from the context i.e. the delinquency in its performance and its effect on the discipline and nature of duty. Negatively it would not mean inefficiency, of slackness. It is something for more positive and certainly deliberate. In so far as the relationship of Industrial employment is concerned, a workman has certain express or implied obligations unto his employer. Any conduct on the part of an employee inconsistent with the faithful discharge of his duties towards his employer would be a misconduct. It, therefore, follows that any breach of the express or implied duties of an employee towards his employer, therefore, unless it be of trifling nature, would constitute an act of misconduct. What is misconduct would, therefore, naturally depend upon the circumstances of each case. However, this statement of law has undergone a change with the evolution and development of the law on misconduct. Inspite of certain such circumstances as would ordinarily
constitute a "misconduct" it may not be so if such a misconduct is not so prescribed or enumerated in the Standing Orders or Service Rules and that would rather be the crux of this article. Under the Industrial Employment (Standing Orders) Central Rules 1946 framed under the Industrial Employment (Standing Orders) Act 1946, the Central Government has prescribed the model Standing Orders Sch.1 clause 14 (3). It prescribes certain acts and omissions which would be deemed as misconduct. Strangely enough these model standing orders itself do not define misconduct or illustrate it exhaustively. The enumeration is only illustrative. The employers may therefore frame their own Standing Orders suited to the peculiar exigencies of their industries and establishments. Ordinarily the Standing Orders would limit the concept of misconduct but not invariably so as has been held in Mahendra Singh Dhantwal Vs. Hindustan Motors Ltd. (1976) 2 LLJ 259 (SC). In workmen of Deevan Group Tea Estate Vs. Presiding Officer Labour Court Assam 1981 Lab. IC 713 the Apex Court observed that Standing Orders of a company only describe certain cases of misconduct and the same can not be exhaustive of all the species of misconduct which a workman may commit. Even though a given conduct may not come within the specific term of misconduct described in the Standing Order, it may still be a misconduct in the special facts of a case, which it may not be possible to condone and for which the employer may take appropriate action. Later on getting aware of the far reaching implications of this proposition of law again, a three Judge Bench Business Manager
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Unenumerated
Misconducts of Supreme Court in the case of Glaxo Laboratories (I) Ltd. Vs. Presiding Officer Labour Court 1983 Lab. IC 1909, held that those observations could not be elevated to a proposition of law that some misconduct neither defined nor enumerated and which might be believed by the employer to be a misconduct ex-post-facto would expose the workman to a penalty. In this case the court further amplified and elucidated that it could not be left to the vagaries of the management to say ex-post facto that some acts of omission or commission, nowhere found to be enumerated in the relevant Standing Orders are none-the-less acts of misconduct not strictly falling within the enumerated misconduct in the relevant Standing Orders but yet misconduct for the purpose of imposing penalty. However, the ratio of this case was again echoed by the Supreme Court itself in Rasik Lal Waghaji Bhai Patel V/s. Ahmedabad Municipal Corporation 1985 Lab IC 729 and the court observed that everything which was required to be prescribed with precision and that no argument could be entertained that something not prescribed could yet be taken into account. This position was again reiterated in AL Kalra V/s. Project and Equipment Corporation of India Ltd. 1984 (2) LLJ 186. In this case it was held that where the misconduct when proved entailed penal consequences it was obligatory on the employer to specify and if necessary define it with precision and accuracy so that any ex-post facto interpretation of some incident might not be camouflaged as misconduct. This enunciation by the Apex Court on enumerated and un-enumerated misconduct is at variance with the celebrated observations of the case of Pearc V/s. Foster where it has been mentioned that if a servant conducted himself in a way inconsistent with the faithful discharge of his duty in service, it was misconduct which justified immediate dismissal. It was sufficient, if it was conduct which was prejudicial or was likely to be prejudicial to the interest or to the reputation of the master and the master would be justified not only if he discovers it at the time, but also if he discovered it afterwards, in dismissing that servant. In short the rule of law was, that where a person had entered into a position of servant, if he did anything in compatible with the due or faithful discharge of his duty to his master, the master had a right to dismiss him. These observations were approved by the Supreme Court in S. Govinda Menon V/s. Union of India 1967 (2) LLJ 249. It therefore seems that things were not crystal clear and some confusion just surfaced. In these fluid situations, lately the Supreme Court in the case of Vijay Singh V/s. State of UP (2012) 5 SCC 242 without completely reversing the Clock handed over us a little bit of conceptual clarity on the concept of misconduct, this case although relates to a Government servant none the less it has laid down certain cardinal principles which could be of wide amplitude and 56
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broader application with regard to disciplinary action on misconducts. The court in the instant case observed that holding departmental proceedings and recording finding of guilt/charge against any delinquent and imposing punishment for the same is a quasi-judicial function and not administrative function and therefore authorities have to strictly adhere to statutory rules while imposing punishment and that in civilized society governed by rule of law, punishment not prescribed under statutory rules can not be imposed and it further ruled that it could not be left to the vagaries of employer to say ex-post facto that some acts or omissions or commission not enumerated relevant rules, which none the less amount to misconduct. The only question involved in the appeal before their Lordships was as to whether disciplinary authority could impose punishment not prescribed under the statutory rules after holding the disciplinary proceedings. In this regard the court referred to a catena of cases more particularly the case of Mohd. Yunus Khan V/s. State of UP 2010 (10) SCC 539 and Coal India Ltd. V/s. Ananta Saha (2011) 5 SCC 142 on the issue involved. Their Lordships also felt that the case before them was an eye opener as it revealed as to what extent the superior statutory authorities took to, the fate of their subordinates in a casual and cavalier manner without the application of mind because in this case the appellant was punished for something which was not an enumerated and prescribed misconduct. I have tried to analyse and elucidate law on this enumerated and prescribed misconducts and vice versa but then for sustaining, preserving and maintaining discipline at work place, the misdeeds of the employee should be vulnerable to action. It is a sine quo non else it would be difficult to run the show. So if an employee is found involved in derelictions of duties and if such indulgencies are not enumerated a statutory misconduct then the employer could resort to second part of misconduct (H) "any act subversive of discipline" and charge sheet, the delinquent but this being a tight rope walking, the employer should tread all cautiously, the road being uneven. In absence of the Standing Orders, however, the question shall have to be dealt with reasonably and in accordance with the common sense as to what acts could be treated as acts of misconduct. The whole thing shall depend on facts and circumstances of each case. It is also to be remembered that if an employee has been erroneously charged under one of the heads of misconduct, even then the employer is not precluded from taking action under another head if the actual committed misconduct fell into that head. The courts have even legislated and catalogued some misdeeds which if committed would attract severe disciplinary action. The employer could definitely fall on such catalogued misconducts in absence of specific enumerations. BM
By Mihir Gosalia, Mumbai
CASE
Analysis
The case analysis refers to case study ‘Strategic handling of Union President’s greed’ by Anil malik published in June 12 issue.
Valuing workforce & visionary leadership T
he manner in which Mr.Kapil went about handling the issue related to the ExUnion President brings forth to light some of the values of the organization which is a large engineering company located at Dewas Madhya Pradesh. Number one is that the organization values its workforce members and partners and the other is Visionary Leadership. The organization is seen to valuing its workforce members & partners, firstly by the HR initiative of providing outhouse training to all of its employees (workmen and staff) for developing their knowledge and skill as well as inculcating a positive attitude mindset through one of the pioneer training institute in the country 'Moral Rearmament Center, Panchgani'. The organization is investing in its people in order to ensure that they have the skills for today and to do what is necessary to succeed in the future. By organising a five days residential training programme for the Union Representatives who are also the company's employees and with Mr.Kapil as group leader, the training programme objective was not just about employee participation and development but an opportunity for the organization's leadership to show that it values its workforce and members through formal & informal interaction during the five days.
The organizations leadership must "mandate" through many different techniques, importance of ethical behaviour in the workplace.
There could be no greater example of valuing workforce members & participating partners than that of providing urgent medical assistance including financial help when needed to the Union President who suffered a severe heart attack after first day of the training programme. No stone was left unturned to save his life by immediately rushing him in an ambulance to Ruby Hospital, Pune which was renowned as one of the best super specialty hospital for heart patients. His treatment was started immediately when it was learn't that his condition was critical and arrangements were made by the company to bring his relatives to Pune so that they can be by his side. The patient survived after 15 days of rigorous treatment and angioplasty. The organization cared for the well-being of everyone associated with it.The organization &Mr.Kapil showed good citizenship in their efforts to save the life of the Union President.Mr.Kapil must have anticipated any adverse effects to the participating union employees if anything had gone wrong in the efforts to save his life and hence all efforts were made to save his life. This act by Mr.Kapil representing the organization shows its societal responsibility. Later the Union President was able to claim his medical treatment expense through ESIC. He wasgraciously assisted by Mr.Kapil to claim the amount from ESIC. However in a turn of events, the Union President did not reimburse back to the company the recovered medical expense amount and rather turned his back on them by filing false police complaints against the company. He started instigating fellow union workers against the company by raising petty issues.He also forged Business Manager
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CASE
Analysis
documents to show that payment for his treatment was made by his family members. The Management of the organization on sensing the danger brewing ahead was quick to take steps to counter it by taking the workers into confidence, explaining to them the entire facts and thus gaining their favourable opinion. The Management also started process of educating the workers against the self centered attitude & motives of the Union President, it formed an internal union with effective communication to counter the threat and then through the legal process recovered the medical amount spent. The organization at that critical juncture was undergoing a transformation phase of working from conventional to professional style. Wages were going to be linked to productivity and career progression schemes were formulated. The organization had to keep manpower 100% engaged to ensure that productivity would not suffer. It is here that the leadership of the organization took steps to guide the workers in best interests of sustaining the organization. A focus on action was created by Mr.Kapil taking the workers into confidence, explaining to them the entire facts, educating them via training sessions and sowing the seeds of internal democracy. The organization's leadership is trying to develop an environment that supports ethical behaviour and high performance. Through the customised training programmes, the organization is endeavouring to communicate clear values and performance expectations. Hence the union representatives must abide by ethical values, management mission and vision that the organizations senior leaders have demonstrated through their interactions and must take it seriously. The organizations leadership by making the vision, values, and performance expectations clear, thus have tried to do away with any uncertainty that may have been created amongst the workers otherwise. The union workers on their part when the organization is undergoing a transformation from conventional to professional management should work as a visible group that would benefit everybody, improve their working conditions and thus raise the overall standard of living of all by earning higher wages. The organizations leadership must "mandate" through many different techniques, importance of ethical behaviour in the workplace. An example could be of recognising & rewarding a worker who has showed outstanding behaviour in the workplace. The leadership could establish appropriate measures and/or indicators that they could track for their review. Standards of ethical behaviour should be defined and everyone in the organization should understand and follow the standards. The organization must systematically monitor ethical behaviour throughout and ensure that it is within the governance structure. Failure to follow the standards of ethical behaviour should lead to prompt and serious consequence for the concerned. Ensuring that ethical business practices are followed by all members of the workforce lessens the organizations risk which in this case was that there was not a single man hour loss reported due to the process of litigation between the organization & the Union President.It is also important for the leadership to anticipate potential problems that may arise in the future so as to avoid costly corrective action later or litigation. Risk indicators could be identified and monitored. The leadership style of Mr.Kapil is found to be participative or democratic. This is generally the most effective leadership style. As group leader, he has not only guided the workers, taken them into confidence but also participated along with them. He encouraged the workers, motivated them. He led the workers to the solution of the problem which was with the external union president by having an internal democratic union.As a learning from the incident of dealing with the External Union President, the organization could have a health & safety policy in place on what it should do in case such a medical emergency were to arise outside the organizations premises like in this case when they were away on a residential training programme. It could be taken in writing from the patient or relative that medical expense borne by the organization would be reimbursed after completion of treatment. BM 58
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The leadership style of Mr.Kapil is found to be participative or democratic. This is generally the most effective leadership style. As group leader, he has not only guided the workers, taken them into confidence but also participated along with them.
CASE
study
BM’s fictionalized case studies present dilemmas faced by leaders in real organisations. Experts are invited to send solutions. Best will be published.
The case highlights various challenges which came across the journey from being an employee to becoming an employer. The establishment of a brand in a competitive market is an unavoidable challenge.
Dream Big & Dare to Step In Bhaskar Prasad, a qualified mechanical engineer and a first generation entrepreneur, dreamt of setting up his own unit while working in Aries (India) for number of years. Before joining Aries (India), Prasad had the opportunity to work in a few small scale companies in the same industry manufacturing different types of flow control valves. He was well versed with the technology and problems normally encountered in manufacturing flow control valves. In 2005, he joined hands with few of his colleagues and established Sugandhaval Flow Controls Pvt Ltd., in collaboration with STech Controls (USA), a firm which had over thirty years of expertise in flow control in highly discerning American market. Prasad and STech Controls entered into a 50:50 partnership to establish Sugandhaval Flow Controls Pvt Ltd at Pune in India. All Sugandhaval products had to adhere to uncompromising standards set by pioneers in USA. With a range of flow control valves and valve automation products manufactured to exacting international standards, Sugandhaval steadfastly moved towards achieving the vision of having flow control products installed in all plants world over. The challenge before Prasad was to make Sugandhaval the most preferred brand in the industry. Starting with an investment of Rs. 20 million, Prasad focused on product development, market development and launching of the product. The land, building, machines and other infrastructure were completely outsourced. Even the human resources at shop floor were also fully outsourced. But Prasad maintained direct contact with the work force to minimise production related issues. Prasad went in for loan for the working capital and achieved break even by the end of second financial year (2006-07). Sugandhaval had the turnover of Rs. 100 millions in the first financial year (2005-06) and Rs. 170 millions in the second financial year (2006-07). Inventory Control and Quality Issues One of the challenges of Sugandhaval was that it had to compete with both organized and unorganized sectors. Establishment of brand image against competing established key players was a herculean task. Moreover, cost of the final product of Sugandhaval was not competitive against its competitors from China and Korea. Prasad tried to control the cost through budgeting and trading with new vendors for supplying the finished components which were in turn assembled by Sugandhaval. Another concern for Sugandhaval was inventory management. It was 90 days hold of the components. This could not be cut down because of laggardness on the part of vendors, as latter could not match the lead time of six to eight weeks given by the
One of the challenges of Sugandhaval was that it had to compete with both organized and unorganized sectors. Establishment of brand image against competing established key players was a herculean task. Business Manager
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customers to Sugandhaval for the delivery of the assembled products. Therefore, good management of stocks was the key area Prasad was careful about. Sugandhaval concern was quality maintenance. It had quality control procedures, quality plans, testing and inspection processes and tools. In the design section, no significant innovation could be made because the production as well as the market were in mature state; thus Sugandhaval had to strictly adhere to international standards. It spent meagre amount on advertising in trade journals, such as Industrial Product Finder and Chemical Process Magazine. The products of Sugandhaval being industrial products, the B2B promotion was made possible through personal contacts with the decision makers of the customers. The targets were achieved through one to one contact and personal briefings with the customers. During these visits, the existing and evolving needs of customers were identified. Thus, need were met, as they arose. Most of the budget for promotion was reserved for establishing customer contacts. As a small company, these visits for customer contacts were clubbed with other related sales and promotional efforts for cost. Sugandhaval had a wide range of products, with butterfly valve accounting for 80 percent and the remaining contributing close to 20 percent. Out of Rs. 15 billion market in India Sugandhaval held a share of 2 percent by 2011. Though turnover rose to Rs. 270 millions by the third financial year (2007-08), it remained at the same figure in the fourth financial year (2008-09) due to recession. However, Sugandhaval could achieve the turnover of Rs. 450 millions in the fifth financial year, i.e., 2009-2010. Having gained the confidence and financial strength, Sugandhaval was planning to move to its own premises before termination of the lease of the rented infrastructure in 2012.
Prasad believed that one should dream big and dare to step in the business of choice. According to him, one needs to believe in oneself and make a beginning.
Sugandhaval overcame the challenges from established valve manufacturers since this product got ready acceptance in the US market. The total exports for the financial year 2010-11 were 30 percent. Competition in the export market from China and Korea posed major threats to Sugandhaval. The policy of Government of India and the economic boom had made India a very attractive market for the MNCs from the US, UK and other European nations. These companies entered into partnership with companies in India and China, resulting in labelling of goods manufactured by companies in China as their own and selling Prasad planned to address newer geographical areas by entering into joint ventures and partnerships in Russia, South Africa and Malaysia. Sugandhaval planned to add higher level of niche products with the existing ones. Being conscious of the complexities of business, Prasad had an ERP designed locally to meet out the needs of Sugandhaval since beginning. In 2011, he decided to implement SAP which he thought was the ultimate ERP solution to cater to the evolving needs and strengthening its position in the organized sector. For making distinction in the organized sector, Sugandhaval had already obtained various international certifications of quality assurance, such as ISO 9001-2008. The products of Sugandhaval were certified for CE and ATEX compliance. Prasad believed that one should dream big and dare to step in the business of choice. According to him, one needs to believe in oneself and make a beginning. He had a strong urge to do things differently. He felt that every day is different and one should strive to grow bigger. Prasad had the dream to build Sugandhaval into a multi-hundred crore company in the times to come and for that he needed to deliver to customers of Sugandhaval with superior performance flow control products. Questions 1. Comment on the strategy of restricting the loans to working capital only. Was it right to outsource the infrastructure including land and machinery, besides human resources at the shop floor? 2. Comment on the strategy adopted by Prasad to combat competition from multinational companies. 3. Present the SWORT analysis of the business model adopted by Bhaskar Prasad. 4. In your opinion, what were the personal characteristics of Bhaskar Prasad which made him a successful entrepreneur? BM The case was developed by Surya Rashmi Rawat (Symbiosis Law School, Pune, India), Upinder Dhar (JK Lakshmipat University, Jaipur, India), Smita R. Nair (Symbiosis Centre for Management Studies - UG, Pune, India), Parvatham Naganathan (Symbiosis International University, Pune, India), Prasenjit Sen (Symbiosis Centre for Information Technology, Pune, India) and Roudra Chakraborty (Symbiosis School of Economics, Pune, India) during Case Writing Workshop organized by Symbiosis International University, Pune, in collaboration with JK Lakshmipath University India from April 25- 27, 2011. 60
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NHRDN Silver Jubilee Conference at Kolkata It was a grand celebration of Silver Jubilee of NHRDN conference, the network was founded by Late Dr. Udai Pareek (L&T/NHRD) along with Dr. T.V. Rao and professionals from renowned enterprises . 25 years reflects a long journey yet the Human Resource is in its infancy. Prominent personalities from the Human resource fraternity gathered to relish the dreams of the HRD. The conference focused on Building India Inc. the people agenda in the turbulent economic time. Several dignitaries inaugurated the occasion by enlightening the lamp. Mr. S.Y.Siddiqui, National PresidentNHRDN & COO - Admin (HR, Finance, IT & COSLI) Maruti Suzuki, India ltd. set the stage on fire by his welcome speech. Mr. Siddiqui elucidated on contribution and need of NHRD, he discussed the alteration in business environment in last 25 years. The span of 25 years viewed issues like; the investment retarded or was completely stagnant, the corporate houses were indecisive, such situations lead to a globally volatile India. He pointed the Big Challenge- How to manage the Gen Y? It is about the management of the new DNA of leadership. He alarmed; "Always be cautious, someone is working on new ideas (business)."He emphasized that Employee relation development need a catalyzer. Welcome speech was followed by a tributary narrations by collogues, relatives and friends of Late Dr. Udai Parekh captured over Video. He was the first person in the world to coin the term NHRD, 'National Human Resource Development'. Mr. Mohan Das , National PresidentNIPM & Director Personnel , Coal India Ltd. in his special address mentioned the role of HR down the line, the guidance required for the young generation and the methods to synergize the resources to the criticality of HR. Mr. Ravindran, MD SHRM India Ltd. expressed; understanding people is the most difficult rocket science, contradictorily he believes; Hum Mein Hai Dum !(We, the people have the power). He shared the thought that conflicts; the business is here for the society or the vice versa ? The talent is relative; it's all about fitting of right key into the right lock. It is time for HR
professionals to dig for the HR need, that HR is not being fulfilled. Mr. Sourav Daspatnaik, Regional President- East, NHRDN discussed regarding the convergence of thought leaders. Humans will evolve with more challenges in this despairing economic scenario, however HR needs to gear up and glorify the changes forecasted. Plenary Session 1 Chaired by Mr. Dileep Chenoy, CEO & MD, NSDC stated HR is about enabling contribution extra ordinarily, its about "Unlearn " and "Relearn". In the current economic situation the equipments are more sustainable over resources. Current demographic pattern of India reflects majority of working population and less dependents, however pattern of Indian education system will be responsible to fuel India globally. If the education system do not synchronize with the employment criteria it might lead to a disaster. Speaker Mr. N.S. Rajan , Partner & Global Leader- People and Organization , Ernst & Young figured the skill gap and the lack of connecting bridge to employability. He discussed about the Indian's talent paradox - there is a huge amount of unemployment in disguise. There is a probable debate in the brain between Deserve and Desire? The riot has to be streamlined and settled by the HR professionals. He concluded that irrespective of the competition, the common sectors should meet a common facet to escort India ahead globally. Panel Discussion 1 was about Journey and Evolution of Human
Resource in the growth of Indian Economy, the Chairperson for the discussion was Mr. Arvind A Agarwal President HT & Corporate Development, RPSG Group. Mr. P. Dwarkanath , Director HR, max Group distinguished the HR professional in 70's, 90's now and future. In 70's the HR managed the unions. The 80's were dominated by issues ; fixing the compensation, structuring a tax friendly reimbursement, getting foreign exchange was an issue. 2000 was marked by the triumph of the internet and a value added time blossomed. Aquil Busrai founder of Aquil Busrai Consulting illustrated the industrial relation of 70's and 80's is a womb of HRS. Training and learning was expensive in 80's , it was only in late 90's that HR moved to training. It's the call of the time when work will go to people and not the vice versa. HR is no more restricted to hiring rather it requires nourishment and nurture. Mr. Marcel Parker Chairman Ikya Human Capital Solutions Ltd. Owner at Marcel R Parker associates, highlighted the edge of HR has been diluted due to technology; reciprocally connectivity has become easier due to technology. Gen Y needs personalized attention departed by Gen X. 1980's were the age of social reforming, compensation agenda, employee satisfaction, later it transformed to networking, learning, ability to collect information and implementation. Special Session 1 was conducted by Session Chairperson, Mr. S.Y Siddiqui Business Manager
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Report Session 2 was Mr. Aquil Busrai who intervened on developing talent in an Indian MNC -Challenges & Opportunities.
and speaker was Mr. Hemant Kanoria, Chairman SREI Group, he remarked that agriculture is the driving the economy of India. Farmers should be trained of scientific methods for productivity. Agriculture has to be trained for developing India. HR should upgrade, they should act as advisor and not a complain department. The session came to an end by felicitation of guest of Honour, Mr. Partha Chaterjee, Minister in Charge, Commerce & Industries, Industrial Reconstruction, Public Enterprises, IT & Parliamentary Affairs, Govt. Of West Bengal imparted nostalgic days when he was a part of the HR fraternity and how the priorities of the work life has gone modification , he also updated the audiences regarding the tete-a -tete in context to industrial development of the state which he had with honourable Chief Minister of West Bengal . Special Session 2 was hosted by the session Chairperson Mr. Anand Nayak EVP- Corporate HR, ITC Ltd. Honourable speaker Mr. B. Muthuraman, Vice Chairman, Tata Steel, presented an overview of several aspects of India Inc. being only 100 years in comparison to other industries of the world with 500 years of experience. India is under the learning process, its evolving. HR is lagging behind the race of other business processes. Growth occurred in the 20th century due to availability of ample raw materials, 21st century has a different story for HR professionals, now the modern technology is a barrier in development of HR. HR managers are advised to act as the custodians of the HR processes like leadership development in workplace, creation of positive tension for aspiring mindset, reward system etc. The Chairperson for Plenary 62
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Mr. Rajeev Dubey, President HR & Aftermarkets, Mahindra & Mahindra enumerated that transformation in business can be brought by the transformation of culture. Shared values need to be co-created with qualities like; accepting no limits, alternative thinking, driving the positive change. Leadership quality has to be engraved among all level to incorporate a situation of thinking, saying, doing and being. Dr. Santrupt Mishra, Director HR & CEO Carbon Black Business, Aditya Birla Corporation guided the mass in the conference to take a glance at the talent beyond CAT, MAT. He stressed that there should be a factor which holds the MNC's. A person with genuine interest in other culture has to be identified and trained, the superficial training leads to spurious resource with limitations as the only excelling factor. Panel Discussion 2 was about the enthusiastic young India. Mr. Steve Correa, Executive coach & HR Consultant with Video and emerging young India speakers hosted a crystal clear session about the Gen Y of India. Sonali Roychoudhary Head- Human Resources, Procter & Gamble India believes on the survival of the relevant in the current economic doldrums. Vishal Talreja, Founder Dream a Dream visualizes the youth to be the assets of India, only the people need to trust them. Swami Sarvapriyananda, Ram Krishna Mission (Holder of Degree in Business Management) charmed the listeners by the thought; Take Home Spirituality !
battle for market place. Where you sell is important? Mr. Anoop Hoon- Marketing & OD Century Ply focused on quality of production, cost effectiveness, the right product at right place are the objectives for good marketing which has to be searched at the home. Viresh Oberoi Founder CEO & Managing Director at mjuntion services limited, mentioned that India has to think long term, research and development should not be encouraged rather an instant solutions should cover the problems. Prof Ranjan Das concluded the session in light note that although India is opaque but picture abhi baki hai, depicting India is learning and evolving! He requested to spice up the task with entertainment to make it a passion and the outcome will be colourful. Panel Discussion 4 covered the topic Developing the Global Indian ManagerLearning from personal experiences. The chairperson was Dr. Prem Saran, IAS (Retd.) Mr. Subhas Dhar, Founder MD, Enterprise Nube, flaunted the hindrances of developing Indian global managers. He discussed his experiences of working abroad, challenges related to travel in context to visa, time zone management, adaptability with the local business culture and attention required for the world of business and the changes ahead. Mr. Himanshu Tambe, Managing Partner, Global talent Innovation Network, Accenture stated that global business environment is VUCA (volatile, uncertain, complex, ambiguous). The emerging market companies are broadening their reach. The two day sharing, learning, interacting, networking session came to an end forwarded by Mr. S.Y. Siddiqui, concluded by Mr. Prince Augustine, National secretary, NHRD and a Vote of Thanks from Mr. Sujoy Banerjee, President secretary, NHRDN. -Deep Sikha Chakravorty (Banerjee)
Ms Ester Martinez, Founder Editor People Matters underlined the fact that present generation has a passion in their heart and it is brainstorming to select from the infinite choice. Prof. Ranjan Das, IIM Kolkata the Chairperson of Panel Discussion 3 observes that in present world there is a
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Air India plans to float VRS In order to reduce costs and attain efficiency among its workforce, national carrier Air India (AI) is set to come out with an attractive voluntary scheme (VRS) within the next three months. The proposed VRS may also include offering alternative contractual jobs to family members of those opting for the scheme. Sources said these jobs may be offered in the proposed subsidiaries of AI like the Air India Engineering Services (for maintenance, repair and overhaul) and Air India Transport Services (for ground handling). "The VRS package has to be lucrative to the staff. We are working on it," Rohit Nandan, AI chairman and managing director, said. The proposed VRS scheme is likely to cover 10% of the employees and will save up to Rs.200 crore for the cash strapped airline. AI has around 27,500 employees and an annual wage bill of Rs.2,800 crore. Experts said attracting employees to opt for the VRS would not be that difficult as over 7,000 employees are slated to retire in the next three years. An AI official said that the scheme would be offered to all sections of employees including pilots, engineers, ground staff, executives, etc. Though in the last couple of years the carrier has managed to bring down the number of employees from around 34,000 to under 28,000, the reduction has primarily been due to natural retirement or exit. The airline's VRS schemes have not been successful in the past. The VRS schemes in 2003 and 2008 attracted only around 1,000 people.
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Getting right persons still difficult for employers : survey A study on talent shortage shows that 48% of employers in India are finding it difficult to find skilled workers, especially in the fields of information technology, marketing, public relations and communications and engineering. Although fewer employers are facing staff crunch in India this year, the demand for suitable candidates is still high when
Workers' Strike Hits Arvind Production
compared to the global average of 34%, the annual study by staffing services giant Manpower Group showed. "Alarmingly, employers are less concerned about the impact talent shortage is having on clients and investors, with only 48% employers reporting talent shortages as opposed to 67% last year." said Sanjay Pandit, managing director at
Manpower India. According to the study, the shortage in skilled workers is across the spectrum from personal assistants and call centre operators, to researchers, engineers and accounting staff. The job categories of labourers and doctors, which were in demand last year, do not feature in this year's list.
Air India may exclude commanders from 'workmen' category
Textile maker Arvind Ltd said production at its plant in Ahmedabad has been partially hit due to agitation by about 200 workers, who are demanding increase in wages. "The main demand of the workers is to increase wages. Some of these workers gathered at the gate and did not allow other workers to come for work for the second shift. As a result, operations of the plant has been partially affected," Arvind Ltd said in a filing to the BSE. The plant located at Naroda Road, Ahmedabad, employs about 3,400 workers, the filing said, adding it primarily makes denim fabrics and has annual capacity of 84 million metres out of 108 million metres of total denim capacity of the company." With the efforts of some workers, who could come to the plant, contract workers and workers from other plants, the company has been able to re-start some of the operations and hopes to increase production further in coming days," it said. According to the company, Textile Labour Association (TLA), which is the representative union, has filed a case in the Industrial Court demanding higher wages against Ahmedabad Textile Mills' Association (ATMA), which represents several textile mills, including Arvind Ltd. "The matter is being heard by full bench of the Industrial Court. Unfortunately, disregarding the TLA and the sub-judice legal case, a small section of the work force wishes a separate settlement which is neither practically possible nor legally tenable," The filling said.
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As the Air India pilots' strike is continuing, civil aviation minister Ajit Singh has thrown his weight behind a proposal to exclude commanders from the 'workmen' category, as stipulated under the current labour laws. If cleared, this would prevent senior pilots from proceeding on strikes in the future. The minister is said to have held discussions and consultations with Attorney General GE Vahanavati on the matter. Under the provision of the Industrial Disputes Act, Highly-paid pilots are currently classified along with other blue collar workers as 'workmen'. "We have discussed exclusion of commanders from the workmen category with lawyers... The commanders are the seniormost pilots. They should be put in the officer category," a top government source said. Singh is learnt to have given instructions to the ministry officials to work on the proposal. As per the ministry's estimates, some of the airlines' seniormost pilots, who have struck work in the past, earn an annual compensation of over Rs. 1 crore. "The compensation of commanders varies form Rs. 75 lakh-Rs. 1 crore per annum'" said a ministry official.
Bajaj Auto Uttarakhand workers threaten stir over salary hike It is Bajaj Auto's turn to face the heat on labour trouble with around 1,200 workers at its Pantnagar plant in Uttarakhand agitating over salary hike. The workers who have been demanding a salary hike of Rs.8,000 per month have decided to go slow on production at the 99 acre plant until their discussions with the management and the owners come to a satisfactory conclusion. Sources said contrary to the demanded hike amount, the management, according to its earlier decision, has decided to raise salary between Rs. 1,000 and Rs 1,500 per month. A meeting between the workers and the management has been tentatively fixed a fortnight later, until which the workers are expected to suppress the production to about 1,700 units a day against the capacity of 4,000 units, sources told. The Pantnagar plant currently accounts for a little more than one-fourth of the company's total two-wheeler production. While negotiations between the two sides are on for a few days. However, a handful workers were denied entry into the facility early triggering a strike which compelled the district administration to call for paramilitary forces, a senior member of the union told.