Business Manager Magazine

Anew young HR generation is ready to take lead. Writing on the wall isreadable. Transformation is taking place. Execution of practices andpolicies are in their hands.Bosses are relying on them and they too areproving themselves to be reliable. Young HR is optimistic andconfident.They are future leaders.

This is somewhat has emerged as profile of YOUNG HR when BM thought offinding about this breed of professionals on whose shoulders future oforganizations rests.They have strengths and weaknesses too.They are capable ofreading between the lines but have less patience.

These professionals are tech savvy, educated and informed, ambitious anddetermined to succeed, want to work with those bosses who provide themenough space for learning and development. They can't remain like sitting duckslistening to their bosses having no logic and rationale.They want to spread wingsand look at sky to fly.

Findings reveal that what ails most young HR is not finding respect andadmiration in the eyes of top management and other cross functional heads thatstill treat HR as a cost centre. They also like bosses less who try their hands onsensitive HR issues without having expertise of the subject and then using HR asfire fighting mechanism. Their intangible contribution in shaping employees lifeand career are not recognized. They tend to challenge straight jacket norms ofthinking. It is good to note that Young Generation of HR has now understood theimportance of managing employee relations beyond tech-wire methodology.They also feel that nothing much has changed for HR in terms of job profile andperception. Cosmetic surgery will not work alone.

By understanding what young HR think and how they want to be groomedand developed, responsibility of seniors in the profession increases. They alsoneed to mentor their HR buddies. Managing GEN-Y employees cannot be donebetter by anybody than their contemporaries in HR because a one size-fits-allapproach to attract and retain young generation will not be successful.

It is time for grey haired HR GURUS to understand the profile and thoughtprocess of their young army, empower them and provide opportunities tounderstand their real role and focus. They have to be developed as businesspartners and change agents. They should be trained in handling employeerelations crisis at ground zero. They also need to develop right attitude to dealwith challenges.

In this cover feature along with findings of BM on YOUNG HR, secured throughopinion poll and discussions, BM presents a lot of young HR professionals workingin different sectors pan India with what they think about this profession andchallenges they expect to face. Really exciting!

If you like it let us know. If not, well, let us know that too.

Happy Reading!

Sounds Good

Anil Kaushik

Editor’s Note

Challenging yet mustCover feature on workplace diversity is reallytouching and covers various aspects. Allexperts have presented the best on the subject.Congratulations to all authors.

Workplace dirversity is challenging yet it is amust for every organisation. Being diverse isparamount to create competitive organisation.Leveraging diversity determin whether or notan organisation can sustain a competitive edgein an evolving, complex business scenario.

If the HR with much focus on selection andretention lose site of spectrum of diversityavailable in their organisation, it can be afailure to translate that diversity into action.

Considering diverse perspectives can be thebest way to get at the best decisions.

M. Muthiar

ExcellentThe issue on Maruti was excellent. I talkedabout the issue in a lecture at the AhmedabadManagement Association. The analysis andcoverage were superb.

T.V.Rao

Matter of prideGreetings to the Editorial Team. Let me joinwith SM Jain, Bhawani Mandi in adding laurelsto your achievements in your quality ofpublication which to my considered opinionexcells even the Harward Business Review. It isno exageration nor eulogy but true impressionof a sincere and Senior Citizen with 45 yearsHR experience. I ponder over the articlewritten by Dr Janardhanam and Dr Naik "onwhy violence in Industrial relations". Certainlyevery one interested has to read , reread andponder over what went wrong where and whenand how to bring back the past glory created byTATAS and BIRLAS. I compliment them for

igniting this burning topic so that there iscalmness and Win Win situation withoutviolence is achieved if their action points arefollowed. My one sincere observation is that themushrooming of new unions is one of thereasons to this culture which the Governmentshould diagnose and take remedialaction,before the situation goes out of controleither by legislation or otherwise.

K.Soundarraj

InformativeWhile I appreciate the content of the article onOutplacement, how many employers can affordto do that? Inplacement could have happenedthrough many conservative sources whileoutplacement is costly. It is a good income tomanpower special consultants but any partialapproach would be devastating based on theperformance or other factors. Allocatingconsultancy charges for the flushout drill isbeyond the reach in addition to compensationfor layoff. The victims of lay off or down sizingmay or may not accept the alternativerecommended by the company or perhaps saythat it does not match their expected CTC.Though the concept is good, it would becurtailed to a selective few for the reasons ofoutplacement charges. It's similar to vacating ahouse where you pay charges for loading andunloading. I humourosuly used to referInPlacement and OutPlacement as InPatientand OutPatient where employees are patientsever since the on-boarding.

S.Chandrasekar

BeneficialArticle of Mr. Kumar on Contract Labour is fullof practical approach and beneficial.Understanding the complexities of contractlabour was not so easy as done by author in thearticle.

S.N. Pande

Readers’ Response

2 Business Manager November 2012

Readers are invited to comment on articles published in BM through email at : [email protected], [email protected]

Aparna Sharma conferred withAchiever Of Excellence Award

Aparna Sharma, Coutnry Head-Lafarge India has been conferred with“Achiever Of Excellence Award” by BMA in association with IBS and ISTDin Mumbai on 20th Oct.

P.G. from TISS, Aparna before Lafarge, Country Head-HR worked withMousanto, Novartis, UCB and Deutsche Bank. She is actively associatedwith National Professional bodies. She is also regular contributor to BM.

Apurv Kumar appointed country head of NUICC

National US India Chamber of Commerce ( NUICC) based in Denver on theadvisory panel of the US Commerce Ministry opened its India headquarters in Jaipur and Mr. Apurv Kumar, Managing Director, ClarksGroup of Hotels has been appointed by the board of directors to be thecountry head of NUICC in India. This will help to enhance the pace oftrade and investment between two countries.

NEW HEIGHTS

Chief Editor ANIL KAUSHIK

Associate Editor Anjana Anil

Hon'y Editorial Board Dr. T.V. RaoDr. Rajen MehrotraDr. V.P. SinghH. L. Kumar

Hon’y Research LeadIndranil [email protected]

DELHI :F- 482,Vikaspuri, New Delhi-18GHAZIABAD :A - 39, Lohia Nagar, NayaGhaziabad (UP)

Hon'y Co-ordinators A.S. Sharma - [email protected]

Pankaj Pradeep- [email protected]

Mihir Gosalia- [email protected]

Deep Sikha [email protected]

K.Soundarraj- [email protected]

Owned, Published and Printed by AnilKaushik at Sun Prints, Ganpati Tower, Nangli

Circle, Alwar - 301001 and Published From B-138, Ambedkar Nagar, Alwar - 301001 ( Raj.)India Editor : Anil Kaushik

The views expressed in the articles publishedin Business Manager are those of the authors

only and not necessarily of the Publisher/Editor.While every effort is made to have no mistakein the magazine, errors do occur. Publishers

do not own any responsibility for the losses ordamages caused to any one due to suchommissions or errors.

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E-mail : [email protected],[email protected]

Published on 1st of Every Month

November2012Vol. 15No. 5

Inside

A new young HRgeneration is ready to take lead.

Writing on the wall is readable.Transformation is taking place. Execution

of practices and policies are in theirhands. Bosses are relying on them

and they too are provingthemselves to be reliable. Young HR is optimistic andconfident. They are future leaders. This is somewhat

has emerged as profile of YOUNG HR when BM thoughtof finding about this breed of professionals on whose

shoulders future of organizations rests. In this cover featurealong with findings of BM on YOUNG HR, secured throughopinion poll and discussions, BM presents a lot of young HR

professionals working in different sectors pan India withwhat they think about this profession and challenges they

expect to face. Really exciting!

Young HR- Vision &Values

Cover feature

BM’s Exclusive Opinion Poll Plus

Anurag G. Kalyani- Senior Manager - HR & Admin. ŠKODA AUTO, BhaskarDhariwal- Manager – IR Reliance Industries Ltd. Vadodara, SuchitraChoudhary- Senior Executive - HR RJ Corp, Gurgaon, Sachin Avatimath- Dy.

Manager - Corporate HR Balkrishna Industries Ltd. Mumbai, Vivek Kumar Varma-HR Head and Lead - Performance Management AtoS India, Somya Mathur -Consultant,Kenexa, London, Abhishek Haldar- Manager - HR M.N. Dastur &

Company (P) Ltd., Kolkata, Praveen Khandelwal- Dy. Manager-HR, Balkrishna

Industries Ltd., Chopanki, Indranil Bhattacharya- HR Manager, Titan Industries

Limited, Kolkata, A. Antoine Baskar- HRM & C, Kirloskar Brothers Ltd., Coimbatore,

Anup Kumar Bansal- Dy. Manager-HRM Mindarika, Manesar, Merlyn Thomas-Corp. HR- Balkrishna Industries Limited,Mumbai, Meghna Singh- College Support,

Aircel Academy, Gurgaon, Kunal Mahajan, HR-Executive, Balkrishna Industries Ltd.,

Mumbai, Dushyant Kumar Zaargar- Associate Manager - HRM & C, Kirloskar

Brothers Limited, Dr. Rabindra Kumar Pradhan - Asst Professor, Dept of

Humanities and Social Sciences, IIT Kharagpur, Nupur Singh -Associate Manager - HR

Kirloskar Brothers Limited, Ashima Roona - Business Partner HR, Bombardier

Transportation, SWATI SINGH- SR.MANAGER - HR LAFARGE INDIA PVT. LTD.

KOLKATA, Anupama Nair- Woking on PHR, SHRM, USA, Pradeep Kumar- AM -

HR, Visteon, Bhiwadi, Amit Shetty- A.G.M -Talent Acquisition, Lafarge, Mumbai,

Ajay Tanwar- Head Plant-HR, Roop Polymers Limited, Mewat & Arun. S. Kaimal-Site HR Leader- GE, Energy, Mumbai SPEAKUP THEIR MINDS.

pg. 09-30

Surrogate HR

pg. 39

pg. 63

HelplineLabour Problems

& SolutionsQuestions by readers on variety of

problems they face at work andanswers by Anil Kaushik Chief

Editor. Look at it. These may alsobe of some help to you.

JudgmentsLatest from the Courts

Latest verdicts from different HighCourts and Supreme Court effecting

employer employee relations.

HR News

Managing Cliques atthe Work place

The dysfunctional cliques lead tofragmentation in the organization whichimproves the chances of failures due todysfunctional behavior. An article by Dr. Nandini and Dr. Nidhi Maheshwari.

pg. 53

Hefty Pay HikesNo Guarntee to harmoneous IRThis time, the Company, among other incentives, has alsooffered variable dearness allowance for the workers, whichwould be Rs. 700 to start with and be revised in sync withinflation.There are medical benefits and hike in travelallowance too, while the training period has been reducedfrom three years to two years. Going forward, Maruti also plans to provide housing facilities to its workers at both thefacilities as dwelling costs are higher in Delhi NCR areas. Anarticle by H.L. Kumar.

pg. 55

BOCW ACT- FAQs

The BOCW Act envisages a network of authorities at the centraland State levels to ensure that the benefit of the legislation ismade available to every building worker. An article by GirishPatwardhan.

pg. 57-62

pg. 06

pg. 31

Inside

Case Study & Analysis

pg. 33

pg. 41

pg. 34Govt. NotificationsMinimum Wages in Himachal PradeshMinimum Wages in PunjabAmendments in Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 Minimum Wages in Madhya PradeshWage Ceiling increased from Rs. 10,000 to 18,000Employees' Pension (Amendment) Scheme, 2012Employees' Provident Funds (Fourth Amendment) Scheme, 2012The Employees' Provident Fund OrganisationGujarat Minimum Wages for 01/10/12 to 31/03/2013

Show Florence a lamp to serve

Nursing job is a service related career that involves medicalKRAs like caring, medical administration, supervision, helpingthe doctors, customer satisfaction, nuances of dosage,counseling, motivation, patient database, ISO procedure,systems etc. An article by S.Chandrasekar

Maruti workers for new wage agreement

Female workers to run scooter assemblyline

Bangalore HR Summit 2012

Govt. mulls changes in labour laws

Hyundai follows suit, increase wages by45%

Retirements, attrition hammers SBIemployee base

Hyundai Spares Unit removed contractworkers for joining union

Slow on joining bonuses...

Family Business ChallengesAshutosh decided to set up his own venture after gaining an experience of seven years. He felt that it wasdifficult to make innovations in the traditionally run business - because elders did not wish to take major risks.

Case Analysis Team culture should be capitalised for competitive advantage. By Mihir Gosalia

Dr. Nandini and Dr. Nidhi Maheshwari

Assistant Professors, Asia pacific Institute of management

Dr. Raman Panda, who recently joined Instituteof Management (IM-- name disguised) a leadingManagement institute in Bangalore, was wellaware prior to joining that selling the concept ofinnovative and creating teaching methodology isnot an easy task. But the need of the hour was toplace the hundred students who were promised,the high profile placements at the time ofadmission. The feedback received from theplacement team is that the students have only theconceptual knowledge and their analytical skillswere very poor. It was a big challenge to placethese average students at the time when theeconomic recession is at one side and theupcoming admission cycle is demanding strongbrand image.

Reviewing the competencies of the existingfaculty members he took the decision to appointfaculty from Direct Institute of Management (DIM-- name disguised). Three senior Professors leftDIM and joined IM.

Raman started spending more time with theseProfessors and they got lots of importance in theorganization. The old Faculty members feltfrustrated and disappointed. Prof Satish Jha andProf Sita Mehta approached Dr Raman Panda andexpressed their grievances. Dr Panda was

surprised and asked them to resign if they weredissatisfied. Prof Jha and Prof Mehta readilycomplied. After the departure of Prof Jha andProf Mehta, Dr Panda appointed two more facultymembers, known to him from his previousemployers.

The five Professors, who were hired by Dr.Panda, kept to themselves not mixing with otherProfessors. They went to Canteen together, sharedlunch and supported each other in all activities.The Director consulted these Professors in mostissues and ignored other Faculty colleagues. Theinstitute had a policy of Peer Appraisal. Duringthis appraisal the five new Professors rated othermembers in the clique very highly. Very soonoffice politics became the order of the day. Theother Faculty members too formed cliques oftheir own and spent time with their cliquemembers. The overall employee morale in theinstitute became low and the immediate demandto turnaround the placement become chronic andremained unsolved. So, now it is the call for Dr.Panda to evaluate the consequences of theavailability of cliques, to recognize the early signsof dysfunctional behavior of cliques which iscritical to a team's success.

Doesn't this situation remind us the school


Managing Cliquesat the Work place

Thedysfunctionalcliques lead tofragmentation

in theorganization

whichimproves the

chances offailures due todysfunctional

behavior.

DR. NANDINI DR. NIDHI MAHESHWARI

Managing Cliques at the Work place

cafeteria life where informal hierarchies werethere who used to decide how the juniors shouldmove ahead? These so called groups are formedaround one or two influential individuals whodetermines norms and even to whom to accept orreject in their group. Similar kind of hostility,jealousies are prevalent at the workplace too.These structures at the workplace can be definedas cliques.

We can't deny the fact that clique at theworkplace is an inevitable group form. The majorfunctional time of the day we spend at theworkplace and due to our social and emotionalinstincts we try to seek opportunities foremotional support and career advancements.These requirements of an individual push them tobecome the part of the cliques at the workplace.But this behavior brings teams together but at thesame time it can also tear them apart. We shouldalways remember that all sorts of cliques'behavior are not the contributing factors for theorganizational growth. Keeping in view thefunctional and dysfunctional behavior of thecliques we can classify them as functional vsdysfunctional cliques.

Those cliques which at the workplace enableemployees to work effectively due to strongbondage amongst the clique members comesunder the functional category .The members ofthe functional cliques shares all sorts of agendaand speak the same language even habits andhobbies . This kind of sharing and values aresigns that inactive people would be excluded. Theexclusive nature of such cliques is only because ofthe nature of the project which demands theexclusiveness but it vanishes as soon as theproject accomplished. If the exclusive behavior ofthe clique continues and intensifies even after theproject accomplishment it can cause chaos amongthe team. This chaos could decrease theproductivity and finally the star performers willbe avoided by the peers. Such behavior of thecliques creates dysfunctional cliques which leadsto distrust and workplace aggression. Thedysfunctional cliques lead to fragmentation in theorganization which improves the chances offailures due to dysfunctional behavior likewithholding information, delaying projects andgossiping. This idea is also promoted by KitHerrod, director of external relations at FredHutchinson Cancer Research Center that thereare groups who are exclusive by the nature ofwork but if the behavior continues after thecompletion of the project then it is detrimental.We should always accept the fact that a benignsubgroup can easily become a dysfunctionalclique. The dysfunctional clique will never carefor tapping the skills and expertise of outsider andin this way the organization will not be able tocash the full value of the available skills andexpertise of the organization.

It is always tempting to eliminate thedysfunctional cliquishness for a manager to fullyutilize the available skills and expertise of theorganization but the management should also

ensure that unconsciously they must not build theplatform for dysfunctional cliques. Dr. Panda wasaware that a broad productive justifiablerepresentation is most often acceptable fororganizational productivity rather than narrowrepresentation of the cliques.

That is why he decided to deform the existingcliques through a planned intervention ratherthan threats and punishment theory which cantemporarily remove the dysfunctional cliquebehavior.

He identified that the major contributing factorfor dysfunctional cliquishness is the environmentof the organization where knowing the peopleoutside the immediate workgroup is difficult dueto physically isolated sitting arrangements. It isquite obvious that the human tendency inspiresus to involve with similar kind of people whichgives a platform for cliques.

Another factor he identified that facultymembers who had worked together in the pastworks for most of the existing projects. In thatsituation Dr. Panda took managerial risks andavoids stereotyping behavior while assigning theprojects and formulating the team. For theupcoming projects he formulate the teams of thefaculty members of different cliques and ofcomplementary skills. Even he put himself in selfdiscipline by avoiding the behavior of favoritismby giving verbal or non verbal cues, taking severeactions for missed deadlines and not promotingsomebody when a more competent contributorexists. He was quite satisfied from the idea thatwhen the sufficient workloads and occupiedworkforce is there we can control rumors andbullying, harassing behaviors. So he always triedto keep the faculty members busy with one oranother projects.

Finally he identified two more experiencedfaculty members from the different leadinginstitutes, Mr. Joy Anand and Sumeer Bhatia andlure them to join the organization. Both sharedmany common interests and hobbies like interestin reading latest collection of Management Booksparticularly in the area of Business Strategy, bothenjoys a game of Tennis etc. Both the new facultymembers soon became good friends.

Keeping their common interest in mind Dr.Panda utilized them as link pins between cliquesand he put them in different existingdysfunctional cliques while formulating teams.Now during the office hours they were not able toenjoy their friendship and this was the cause thatMr. Joy Anand developed friendship with MrGhosh who had interest in Finance and SumeerBhatia clubbed with Rohit who specialized inmarketing.

Now these four faculty members start meetingin the evenings and had intense discussions onBusiness situations, economic trends and othercommon interests. On Sundays they often went forpicnics with their family enjoying this outingtogether. A functional clique had formed out ofdysfunctional clique. The four faculty members

Business Manager November 2012 7

Managing Cliques at the Work place

enjoyed each other's company. Very soon theystarted sharing information and seeking eachother's advice on their consulting assignments.They enjoyed each other's success and wholeheartedly contributed to the growth of theirfriends and colleagues. Their cross functionalexpertise in different areas of Managementincluding Strategy, Marketing and Finance helpedthem to explore many innovative ideas andconcepts. Dr.Panda soon found that groupingthese four faculty members in a team createdextraordinary results and wonderful placements.They shared a great understanding which helpedthem to work in close teams. Even when these four

faculty members had differences and hotarguments the friendship stayed because of theclose understanding. The institution greatlybenefited because of the great rapport thesefaculty members had established.

The other faculty members saw the healthyrelationships among the four members and theaccompanying benefits. They were alsoencouraged to work in teams. The institution wasthus able to pool the expertise of its facultymembers with more effectively. The students werehappy and the placed student's number wasgrowing.


Before Intervention

Intervention

After intervention

BM

Cover feature

A new young HRgeneration is ready to take lead.Writing on the wall is readable.

Transformation is taking place. Executionof practices and policies are in their

hands. Bosses are relying on themand they too are proving

themselves to be reliable. Young HR is optimistic andconfident. They are future leaders. This is somewhat

has emerged as profile of YOUNG HR when BM thoughtof finding about this breed of professionals on whose

shoulders future of organizations rests. In this cover featurealong with findings of BM on YOUNG HR, secured throughopinion poll and discussions, BM presents a lot of young HR

professionals working in different sectors pan India withwhat they think about this profession and challenges they

expect to face. Really exciting!

Young HR- Vision &Values

Cover feature

Young HR :optimistic & confident

Opinion PollBM’s Exclusive Feel that to be at top, HR needs to understand

business intricacies with complete gamut of HRand legal frame work.78%

Say that HR has to go a long way. It has towork hard to achieve its position. In hasnot transformed fully.79%

Say that HR is not empoweredmuch to decide uponorganisational strategic issues.83%

Say that you can't imagine the success inprofession, unless you are tech-savvy.Theydevote about 8-10 hours on internet.They liketechnology driven organisation and don't seeanything wrong in it. Speed is the core.

Say that IR is back and they should focus onharmoneous employee relations. LearningLabour Laws and understanding employee’spulse is the need of time.

85%

62%

78%

Say that-finding rightpersons andretainingthem willcontinue tobe thebiggestchallenge

68%

Say, keepingemployeesengaged inreal sense isanotherchallenge.

Challenges for

An exclusive opinion poll ofyoung HR professionals

suggests that they are highlyoptimistic and confident

with passion for their career.

Internet obsessed, this breedwants to remove all blocks

and put HR in forefront.Want to see themselves in

board room and lead theorganisation.What ails most

this generation of HR thatstill organisations do not

understand and acceptthem in right perspective.

Taking HR as cost centre, notappreciating intangible

contribution, being lead bybosses who do not

understand HR are few, thatpain them.

Young HR needs to beguided. Desperate to lookfor learning opportunities

and carve a niche for them.BM talked to 550 young HR

professionals throughoutIndia and even beyond that,

who are in the field from 1-10 years. 67% say they

have joined this profession,because they want to touch

the people lives and haveinner urge to shape them.

They did not "fell" in thisline. 73% say that they want

this function to becomemore strategic and

contribute in businessdecisions.

Cover feature

For last so many years,from all platforms ofnational and regional HRbodies and employersassociations, it has beensaid repeatedly that HRhas to understandbusiness and shouldbecome strategicpartner. Still we hear thisin all HR “Conclaves”,“Summits”, and“Conferences”. It meansthat HR has not becomestrategic partner so far.

The questionremains :

Who will make HR, asstrategic Business HR?

Who will empower HRto think and actstrategicaly?

Who will encourageHR to come on centretable where businesspropositions andstrategies arediscussed andfinalised?

Who will change theprofile of HR?

Can HR himself do allthis?

52%

Makingorganisationsmorecompetitive. 58%

Say theydon’t getrecognition inorganisation

76%

Say that HRis expectedto deliver"Karishma"withoutanysufficient/back endsupport.

HR

Why HR still is not a strategic business partner?

Challengingwork profile.

Work-lifebalance.

TransparentCo. policies.

Boss asmentor.

Driving Forces

Few ResponsesWe spoil, you (HR) clean.

Other departments don't' share responsibilities.

HR has to re-read the unwritten rules.

Has to make his position credible.

Overcoming the usual perception.

We should update ourselves to get respect.

We should be understood correctly.

We don't want, people should like us, but respect only.

Expected to quantify the value of employees intangibles.

They want to riserapidly up thecareer ladder.

Want to respectseniors but not onlybecause they areseniors.

Want logicaldiscussions.

Can’t remain likesitting ducks.

Less patience-jobhoppers.

Traits

Cover featureYOUNG HR- VISION & VALUES

Time to makeunderstand true

value of HR...

Anurag G. KalyaniSenior Manager - HR &Admin. ŠKODA AUTO


Why you chose to be a HR professional?

My father was a Doctor and a director cadregovernment official. Since childhood, I grewup observing him about how he used tohandle any particular situation, Manageentire government administrativemachinery, resolve any group conflict, tacklehuman resources belonging to differentgroup, areas and motives. That used tofascinate and amaze me. This has helped toincline my interest towards HR &Administration field. As I grew up to do myMBA, I knew that HR is the field I haveinbound passion to be in.

What ails you most in the profession?

The importance of HR is less understood bythe managements and it is considered to be aCost Centre at large. This has created a viewof the HR profession amongst professionals

as a profession having "Thankless Jobs"which is not worthy for any profession. Insome corporations, In case of any labourdisputes or right sizing, HR is asked to takethe shoulder entire responsibility and towear the "villains mask" but the same HR isoffered secondary positions in case ofsharing of credits/accolades.

This mindset of Management and HRprofessionals should be changed and theyshould lay more emphasis to becomestrategic partners of business. To becomethat, HR professionals should be aware ofeach details of business and gain the trust ofmanagement that they can be relied upon totake strategic decisions. If so happens, thenonly true value of HR will be understood.

What do you think about this profession?Do you feel it was wrong to come thisprofession?

HR is an excellent field in which you canmake a different to each and everyemployee'slives and extend it to thesociety/stakeholders. We are the first one's ,any employee connects with, the true 'facevalue ' of an organization and hence shouldbe well equipped with all the necessaryknowledge and skills so as to make allemployees feel proud and welcome to joinorganization. It has got huge learning andchances of developing oneself as a noblehuman being by actively supporting anyonewho is in touch with you.

What you would like to change in thisprofession?

Normally, it is said by HR Professionals that"We cannot become CEOs". This mindset ofHR professionals is deterrent to the growthof self and of the fraternity. This mindsetcan be changed in following ways,

-From HR professionals side - a) By showinginterest in business of the company and theability to contribute to the bottom lineprofits of the company. B) By winning trustof management through active involvementand appropriate suggestions which createsan image in front of other functioncolleagues that "HR can be a strategicPartner" c) Having faith in oneself that wecan do it. Fortunately I work in a companywhere my supervisor,(Mr.MakarandDeshpande-Director-HR) is aboard member.

-From Management side - a) By allowingchance for the HR professionals torepresent in board meetings/topmanagement meetings b) Developingstrategic partners which are moreconnected to people.

What is your vision for HR?

We, as HR professionals, should becomemore of a strategic partner, than beingmere a support function, HR Professionalsshould be more proactive than respondingto the situations. Planned and organized HRfunction can save enough money likezeroman-days loss because of labor issues.By constantly taking initiatives to createHR as profit center, we should strive tocreate competitive and sustainableenvironment favorable to one and all.I would like to get myself involved in anyactivity which results in creating a goodimage of HR in the industry throughvarious program, activities anddiscussions.

How would you like to add value to theprofession and organization?

Having performed in generalist profile fromthe first day of my job itself, everyday is aknowledge filled one to me and I am open tonew learning's which keeps me eager tohandle any responsibility delegated to me.Iperform in order to reduce efforts ofsuperior and always try set up a systemwhich is smart process driven and plannedwith realistic timelines. This way,dependency doesn't remain on a specificperson.

As a person responsible for IndustrialRelations function and taking care of HRPolicies /Impat-Expat Management, the jobrequires me to communicate effectivelywith both the sides, Management and theLabour which I do it through plannedcommunication forums. We call them Su-Samwaad, Setu and Sameep. This 3 forumsdeals with addressing concerns ofemployees. In Su-Samwaad, we go on shopfloor and ask the concerns from operatorsand supervisors. We note them down,collate and then respond appropriately. Setumeeting is a forum to discuss issues withUnion and HODs of concerneddepartments. Sameep meet deals withconcerns of operators and employees atfirst level. These forums have helped us tochange the mindset of our operators andsupervisors and has hugely impacted onincreasing the positivity of all.

A few practices we have started in ourgroup is "Mentor - Mentee concept" inwhich one such activity which is helpingmy team mates to overcome weaknesses andplus the strength. The team mate who isstrong in any particular area is nominatedas mentor and the mentee is the one whogets the expertise from the mentor. Thislefts both with more knowledge. Anotheractivity we do is "share and learn" initiativewherein each team member shares thelearning's which one has acquired whichhelps all in learning the aspect.

What challenges do you foresee, need tobe handled by you in the profession?

The biggest challenge is the approach of HRprofessionals towards developing thefunction and to project themselves as aprofit center. This can be obtained byproactively finding out ways and means ofproving that HR can also have positivefinancial impact on management like noinculcating IR Cases/Settlement of cases,Six Sigma Techniques/Kaizenimplementation, conducting trainingkeeping in view Return of Investment andtangible benefits to organization,Innovation Projects etc.

Cover featureYOUNG HR- VISION & VALUES


As a personresponsible forIndustrialRelationsfunction andtaking care ofHR Policies/Impat-ExpatManagement,the job requiresme tocommunicateeffectively withboth the sides,Managementand the Labourwhich I do itthroughplannedcommunicationforums.

BM

Cover feature


Choosing IR as a Profession was a dreamfor me, since I was in graduation. As theexistence of effective HR or IR personnel inany industry makes the difference & youcan say it is my passion to be in IR andemphases from the beginning of the careeris to learn new things in IR and to add thevalue for maintaining HarmoniousIndustrial Relations.


With the change of time core HR isadopting the new ways of life & becomingbusiness partner but somewhere in IRthere is a great need of change by lookingat the things from different angle. Becausein present scenario, if we see, most of themanufacturing Industries are sufferingfrom one (So Called) DISEASE only i.e.Contract Labour Issue.

If we see the manpower structure of any ofthe industry you will find a good mix of allthree: Staff, Workmen & Contract Labour.We as a HR or IR Professional must have totake a call to redress the issues of Contractlabour as well, with the same seriousnessand efficiency as for the Unionized or nonUnionized Workmen.

What do you think about thisprofession? Do people like you? do youcommand respect among youremployees or Do you feel it was wrongto come this profession?

As a Human Engineer, way of dealing withthe human beings is one of most importantand to be taken care aspect for HR/IRprofessionals. People will like you, if youare firm against the indiscipline at theshopfloor & at the same time if you are fair & transparent for their rights too & tryto understand the problems and issues.

As far as commanding respect among theemployees is concerned, still after leaving areputed unit of Aditya Birla Group, on rollemployees as well as Contract Labourremember me by giving calls.


A traditional culture of dealing withHuman Resources


"Fair & Firm Human ResourceManagement: Transparency & Fairness inevery action and Dealing with Firmdecisions for the betterment oforganization, maintaining the disciplineand harmonious industrial Relations."

How would you like to add value to theprofession and organization?

Four Ways :

1. Change in the approach of dealing withHuman Resources (Traditional toTransformational)

2. Proactive IR with a ZERO hrs.Communication gap betweenmanagement & Employees.

3. Proactively knowing & making thesolutions of the areas of concern of aman working at Shopfloor level.

4. By implementing various EmployeeWelfare Policies.

What challenges do you foresee, need tobe handled by you in the profession?

Coming years for HR/IR profession is goingto be very critical in terms of the issuesbeing raised by the Contract Labour. As theContract Labour too like an on rollworkmen of any industry becoming awareabout their rights only.

YOUNG HR- VISION & VALUES

Bhaskar DhariwalManager – IR Reliance

Industries Ltd. Vadodara

Cannot afford to ignore off role people


"Fair & FirmHuman Resource

Management:Transparency &

Fairness in everyaction and

Dealing with Firmdecisions for the

betterment oforganization,

maintaining thediscipline and

harmoniousindustrial

Relations."

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HR departments are not designed to provide only corporatetherapy or as social or health-happiness retreats. HRprofessionals must create the practices that make employees

more competitive, not more comfortable. The impact of HRpractices on business results must be measured. HR professionalsmust learn how to translate and link their work into financialperformance. HR practices must create value by increasingintellectual capital within the firm. HR professionals must addvalue, not just reduce costs. At times, HR practices should forcerigorous debates. HR professionals should be confrontative andchallenging as well as supportive.

HR work is as important to line managers, as are finance,strategy and other business domains. HR professionals should joinwith managers in championing HR issues. HR has been perceivedby top line executives as 'advocates' and by shop floor workers as'management's stooge'. It is the responsibility of the HRprofessionals to remove these misconceptions by acting as a vitallink between the strategic and operational functions in anorganization.

An important step in the transformation of the HR function willinvolve the ability to see around corners. This skill encompasses thevision and foresight to anticipate future trends globally and thebusiness savvy, credibility, and leadership skills to influence andshape these trends on a global basis. HR professionals must focusincreasingly on turning human resource and organizationcapability into a strategic competitive advantage for the business.

Human Resource Strategy must be anchored to the businessstrategy. Human Resource Management is not about programs; it isabout relationships. The Human Resource Department must beknown as an organization that anticipates change and understandswhat is necessary to implement it. Human Resources professionalsshould be outspoken advocates of employee interests, yet they mustunderstand that business decisions have to balance a range offactors that often conflict with one another. Human ResourceExecutives must accept that constant learning and skillenhancement are essential to their being contributor to thebusiness. Corporations are moving away from treating theiremployees as commodities and are seeing them as customersinstead.

Successful HR departments will need to focus on these issues andevolve from just being an implementer of good policies andprocesses to the role of strategic leadership driving change andresults and not just monitoring them. This will be HR's greatestcontribution to any corporation.

Suchitra ChoudharySenior Executive - Human

Resources RJ Corp, Gurgaon

Learn totranslate HRwork intobusiness results


HR work is asimportant to linemanagers, as arefinance, strategyand otherbusinessdomains. HRprofessionalsshould join withmanagers inchampioning HRissues.


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HR profession was by default. It wasn't a consciousdecision; though I must admit I am glad with thedecision and the way my career has gone so far

and I am looking forward to my professional goals that Ihave set for myself. Intangibility - today's HR fraternity

faces biggest challenge in terms of proving itsvalue creation and the intangible nature of

HR's work (by and large) in an organizationmakes it difficult for HR professionals toprove its worth. The very nature of HR'swork makes it challenging. Most peopletag HR's work as 'thankless' (at least in

service industry), and it is also true to anextent. This very challenge keeps me

interested in my profession. Given myUSPs, I believe my profession suitsme the best. In terms of changes, Iwould like to make HR professionmore tangible and quantitativeas a support function. My visionfor HR as a profession is simple,to create value for theorganization with improved andefficient HR processes which aretangible, measurable andquantitative in nature. Value

creation in HR profession is possible by means ofconstant up-gradation and improvement of HRfunctions and processes and to be the 'enabler' ofbusiness than just a 'support' group. Maintaining abalance between 'transactional' and 'transformational'nature of work within HR is and has been a bigchallenge though. Social medium is now a powerful tool.However, its usage in HR profession is still not quite upto the potential it offers.

Following HR journals, newsletters, research papersand studies being conducted on HR as a profession keep meposted on latest trends. HR's services as a support function,a strategic partner and an enabler in business are ofutmost importance. However, HR professionals mustunderstand the needs of their customers and various otherstake holders in the support chain to the business, andhence treat HR profession more as a product where not justthe product quality matters, but pre and post sales servicealso does! Talk! Collaborate! Communicate! Befriend! Mostdifficult things can be resolved in simplest of ways! Weforget we deal with humans, the breed which we ourselvesbelong to. Asking the question to myself before I ask to mypeer helps me understand cross-functional dynamicsbetter. "If I can, so can you…and vice versa", is what Ipersonally believe in. Maintaining professionalism with apersonal touch can work wonders.

1-Why you chose to be a HR professional?

Human resource management helps us how to deal withpeople and also helps us to know what employees areexactly in need of. Knowing what exactly employees needwill help organization from all circumstances, to improvetheir productivity. This kind of job can be done by HRpeople. HR jobs need complete involvement andpatience. I know that I will be completelyinvolved in my work and also have lot ofpatience in order to serve an organizationfaithfully. So I chose HR as my career.2-What ails you most in the profession?

To keep both Management and Staffmembers happy at the same time.3- What do you think about this profession?Do people like you? do you commandrespect among your employees or Do you feelit was wrong to come in this profession?

People's perception keep on changing,there is no fix reaction, butmajority of time, staff membersrespect HR profession,because they know at theback of their mind, that HRpersonnels arecontinuously thinkingabout the welfare of theorganization & staff members.4- What you would like to change in this profession?

I would not like to change anything in this profession, but Ifeel the Management & Staff Members should realize howvaluable are HR professional in an organization. They shouldappreciate HR contribution towards organization's success.5- What is your vision for HR?

Human Resource Management as a professional will berespected across the globe. In current scenario we havepresence of HR in almost all the organizations, but it willnot be a back end job / profession instead will majorly be instrategic goal formation.6-How would you like to add value to the professionand organization?

For any profession if we want to add value, we can do it byreading more and more, also continue study of the subjectwill help a lot. In terms of value addition to organization, Ican do it by implementing new & effective policies.7-What challenges do you foresee, need to be handledby you in the profession?

Biggest challenge I see in the profession today is to be ITsavvy. There are much software coming up in market tomanage manpower and other parallel aspects of HR. So ifyou have knowledge to operate these HR softwares you maycompile your large and complex data in fraction of seconds.

Sachin AvatimathDy. Manager - Corporate HR

Balkrishna Industries Ltd.Mumbai

Vivek Kumar VarmaHR Head and Lead -Performance ManagementAtoS India


Challenge is toprove its valuecreation...

No more back end job


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Born to medical doctors, a spirit of enquiry has been a way of lifesince childhood. This curiosity was to understand the human mindin all its complexity. I chose to become an HR professional after beingschooled in Psychology for 6 years and being fascinated by therevelation that is the human mind at work. I experienced at the LSEthat in this day and age where our lives revolve around work, it iscrucial that a discipline is dedicated to the welfare of the humanmind at work.


Often stereotyped as warm-fuzzy, this profession would benefit frombeing seen in a different light. While we still have a desire to earnour chair in the board room, we have made great progress inemphasising the importance of human behaviour, productivity and

the importance of engagement at work. The concept is catching upand moving at a faster than glacial speed as we speak. It will not belong before people realise quite clearly that human resource is theonly resource that makes the world run.

What do you think about this profession? Do people like you?do you command respect among your employees or Do you feelit was wrong to come this profession?

I feel absolutely blessed to have taken the decision to commence acareer in HR 3 years back. This profession adds meaning to lifebecause you know you are making a difference and impacting humanlives. You could be employee-facing and dealing with their issues orworking behind the scenes, you are impacting lives on a daily basis.HR presence itself can sometimes put a person in a more comfortablespot and while on most days you feel that you are a support function,it is hardly an exaggeration to say that the organisational cart wouldbe missing a wheel if HR function were to disappear.

What you would like to change in this profession?

It is still taking shape from an amorphous blob of functions to a morecategorised profession. I think clarity in roles and having a say instrategy would be a great place to be at someday and from where I amstanding, I can see it getting there slowly but surely.


My vision for HR is to have a voice and a very loud one at that. HRprofessionals should look at ways to speak a language that thebusiness understands. If it is about giving numbers crunch it, if it isabout storytelling, get creative. There is no need to feel like thecharity case; we can look inwards and be in a position where we arevalued for the ideas and findings that we bring to the table. I work inSurveys for Fortune 500 in Europe and when you have 40,000 datapoints in a multinational organisation expressing their view, it takesan ignorant person to play deaf. If you want people to be convinced,

HR has to make itsown case strong...

Cover feature

Somya MathurConsultant,

Kenexa, London


you need to make a strong case. That's my vision forthe future - for HR professionals to become lawyersfor the population that they represent.

How would you like to add value to theprofession and organisation?

In being passionate about people but beingdispassionate when making a case about people; tounderstand the broad, over-arching themes thatoperate in human capital in different cultures. It isvital to understand that there is no one-size-fits-allin this profession and that Leadership, Trust andOpen Communication have become moreimportant now than ever, post-recession. People nolonger work for their managers, they work for anorganisation and leaders who foster trust andinstill pride in being associated with a certaincompany.

What challenges do you foresee, need to behandled by you in the profession?

The most major challenge that I see in this time ofeconomic uncertainty, unprecedentedunemployment rates and staggering shifts inparadigm of human capital management is one ofestablishing trust in people. People work, at theend of the day, for stability, income and self-sufficiency. When the world-order seems to beinadequate to support this paradigm, people arelikely to act out of insecurities. HR, with itsparticipation in Leadership, EmployeeEngagement and Retention, can play a veryinstrumental role.


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Why you chose to be a HRprofessional?

Primarily because of the close fitbetween the demand of this profession inevery industry and my passion in it(developed through a few short stints inHR during the early stage of my career).Acquiring the relevant skill sets was thenext logical move.


The perception among many peoplewithin our society that the role of HR isno more than a record keeper within anorganization. It is up to us to change thatperception gradually through visiblevalue additions.

Do you feel it was wrong to come intothis profession?

I am not yet married, and till date I thinkI have never made a better decision thanchoosing HR as my profession.


The journey has transformed from apurely transactional role to a businesspartner role. 20 years down the line, I seeHR in many organizations starting tooperate as an independent profit center.

How would you like to add value tothe profession and organization?

My present areas of value addition are tostreamline and strengthen the existingstaffing processes, make the compensationstructure of our organization morecompetitive and to purchase an HRMS toimprove the efficiency & effectiveness ofour HR department.

What challenges do you foresee, needto be handled by you in theprofession?

Identifying the right people for the rightrole is a challenge for example.Traditional sources of talent search oftendo not yield the desired results. This iswhere the professional networking sitescome into picture. I think these sites willcontinue to have bigger influence onrecruitment and eventually out-performthe other sources of recruitment.

How you integrate HR with customerservice.

We are all in the business of deliverables

no matter what line of service we are in.Our reputation depends on howconsistently we deliver on time and thequality of our deliverables. And to me HRis no different, be it recruitment ortraining or any other HR function. Thepre-requisite remains constant: a highfocus on the needs of our customers.

What are the challenges to handlecross functional peers and how bestthose issues could be handled.

Lack of functional understandingremains the biggest challenge. The morewe communicate with our crossfunctional peers and understand theirpresent deliverables, keyissues/concerns, the better will be thecoordination. Also, building rapportoutside work helps. At Dastur Co., ourmanagement encourages & sponsorsvarious team building activities keepingthe same in mind.

Abhishek HaldarManager - HR M.N. Dastur &

Company (P) Ltd., Kolkata


Reputation depends onhow we deliver...

Praveen KhandelwalDy. Manager-HR, BalkrishnaIndustries Ltd., Chopanki

To get respect,listen them...

Choose to be a HR Profession:

For choosing a career, a person shouldevaluate his abilities and capacities.Where my merits meet with the HRprofessional’s requirements and so Ienjoy my profession.

Ails in this Profession:

Due to some rogue elements, collectivebargaining has lost it's meaning andthese elements always raise wrongdemands to show their importancethat always lead for industrialdisputes.

Think about this Profession:

HR profession plays a key role in anyorganisation to achieve it's goal byutilizing workforce potential indesired way. Yes, people do, because Iam directly available for theemployees. In my opinion if we listento the people and handle grievancesimmediately employees respect you.

Changes in this profession:

HR professional usually adhere with

old policies for a long term that's not agood sign in today's scenario. Policiesshould be reviewed from time to timefor betterment.

Strong communication is required inthis profession.

The vision for HR includes:

To increase problem solving ability,

Ensuring greater return oninvestment through people andattracting talent from the poll of thecandidates.

Value addition:

Daily meeting with Shop flooremployees for strengtheningmanagement and workersrelationship.

Challenges:

The engagement and retention of highperforming and high potential is oneof the greatest challenges becausetoday's workers are smarter, moredemanding and less loyal fororganisation.


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For me coming to HR was like a arranged marriage, I fell in love for theprofession later and not when I opted for HR specialization. I did my PG inPersonnel management and IR as I never enjoyed the idea of being in sales…Iwas always good in humanities, literature so felt Personnel management maybe the option. While studying PM, I liked the subjects like OB, core HR etc andhence decided to further explore the subject by doing MBA HR and become aHR professional.


HR is still regarded as a soft profession and a strong perception persists that HRis mainly a recruitment function.

What do you think about this profession?

It has come a long way from a typical backend, non strategic function to a rolewhich has made its impact felt in the org. But it still has a fair distance totravel.

Do you feel it was wrong to come this profession?

No. I feel that I have come to this profession at a time when it was evolving intoan important function and started to command respect from business. Youngbright students are specializing in HR.


Clear linkage with business result….ways to ensure that balance sheet containsHR accounting. Though HR scorecard is alive and kicking as a concept,practical usage in organizations is few and far between.


People first, customer second.

How would you like to add value to the profession and organisation?

HR can add value if it focuses on 3C….capability building, commitmentbuilding and (organizational) culture building. It is the binding block of anorganization where employees can be happy, productive, innovative and therebyevolving into a great place to work.

What challenges do you foresee, need to be handled by you in theprofession?

Relevancy of HR in an organisation where the mantra is increasingly to evolveline managers as HR managers in their own way(what Peter Drucker hadadvocated). Can HR remain relevant only by playing a facilitator role?

Do you take support of social media to handle HR issues.

Yes. I strive to do. Social media is a great tool of HR branding and making anorg to be an employer of choice

How do you update your knowledge and skills for better service delivery.

Reading HR and business magazines/journals, attending training,seminars/workshops, making an effort to be part of organizations business

Cover featureIndranil Bhattacharya

HR Manager

Titan Industries Limited,Kolkata


People first...

review/planning meet and taking HRspecilisation classes of wannabe HRprofessionals(it helps me to get furtherreconnect with theories).

How you integrate HR with customerservice.

Happy engaged employees can offer greatcustomer service. We in Titan believe in“people first philosophy” with an aim toengage employee towards highercommitment level which in turn results ingreat customer service. Titan HR believes inbuilding strong internal customerrelationship management.

What are the challenges to handle crossfunctional peers and how best thoseissues could be handled.

Somehow I feel that in the mad rush to alignHR with business, we HR professionals areforgetting the human aspect of our role. So Ifeel understanding business & its humanangle is the key to gather respect of crossfunctional peers…it helps HR to evolve into arole of a mentor who not only talks businesslanguage but also knows the pulse of thepeople. We live in restless dynamic org life,where people are increasingly urged tostretch to make an org productive therebypeople remain on the edge in most of theorganisations. HR can avoid the industrialstrife’s like we have seen in Maruti or Hondaif we can blend our people managementknowledge with business skills. Employeesshould look upto HR for performance andprofessional counseling and consider HR asa “friend at work” while business leadershould depend upon HR to make employeesproductive and engaged.


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How does HR establish metrics to quantify the value added by thefunction? Doing so requires HR professionals not only tounderstand the business, but also to know how to develop strategy

and to execute. How many HR leaders could answer, with precision andcontent, the following questions about their company?

Where is the business going?What are the measures of success, i.e., business drivers?How is the business performing on these success measures?What are some of the key challenges faced in achieving success?

After answering these questions, HR professionals should then frametheir work as business partners.

HR can help the organization to be proactive when appropriate, ratherthan always being reactive. Being proactive means that the problems areanticipated and corrective action begins before the problem occurs, ascompared to being reactive, which means responding to an already-existing problem.

Do HR professionals have the personal competencies and collectivecapabilities to design and implement increasingly ambitious agendasaround advocating for employees, developing human capital, providingexceptional functional expertise, and strategic partners, and intellectualleaders? No one becomes a fully competent manager overnight. There are,of course, many ways of learning how to be a competent manager. There isno doubt that experience is the best` teacher - the time you have spent as amanager or team leader and your analysis of how good managers youcome across operate effectively. You can learn from your own boss andfrom other bosses.

Challenge in HR: "ARM"-Attract, Retain, Motivate. For the foreseeablefuture, there is a greater demand for talent than supply. Despite recentemployment market trends, which have put more talent into the availableworkforce, companies are still challenged with attracting the "right"employees. HR leaders are challenged with creating strategies to supportthe goal of retaining good people. It may sound easy, but it is difficult anddeliberate work.

Finally, the foundation of add value to a business is trust. So, how do HRProfessionals enhance the trust levels in their organizations? They do it byunderstanding that trust cannot be fabricated. In today's environment,employees and lower level managers see right through such efforts. Inreality, trust is based on honesty, confidence, and the ongoing belief thatHR Professionals and Management will follow through on theircommitment to value creation.

Importance of 2-I - First foremost "I" is Initiative.

Taking the initiative means being able to make the right decisions offour own backs by combining self-confidence and judgment. Most of us

have never been taught how to operateindependently because of this structure that wehave been brought up. Personal Initiative is abehaviour syndrome resulting in an individual'staking an active and self starting approach towork and going beyond what is formally requiredin a given job. It always focus on theOrganisation's mission, has a long term focus,goal directed and action oriented, persistent inthe face of barriers and setbacks and selfstarting and proactive. However, initiative is notnecessarily doing things in a new way; it couldalso mean getting ahead in the old path withoutanyone telling you to do so.

Second Successful "I" is Influence

"The key to successful HR Manager today isinfluence, not authority." It is essential to developa capability of influencing other people to workwith you to get there. Influence strategies forcreating a high commitment workforce. Think ofthe people around your office that you mostinfluence. The influence factor is one of thethemes in HR leadership. Leaders use theinfluence factor to draw people toward achievinggoals and to maximise the results in theorganisation.

HR, as an essential driver of businessstrategy and organizational success. Shaping anorganization's culture is also one of HR'sfundamental responsibilities. While I believe thatbuilding a great culture takes the hard work ofeverybody in the organization: the managers, theleaders and the general employee, HR has to takea leading role in making this happen.

A. Antoine BaskarHRM & C, Kirloskar Brothers

Ltd., Coimbatore


No one becomescompetentovernight...The key to successful HR Manager today is influence, not authority.


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HR professionals need to be able to spell out how they providea unique and powerful perspective of the linkages betweenemployee commitment, customer attitudes and investorreturns - they need to be able to describe the aspects of thebusiness environment that go beyond what other disciplinesbring to the business.

What challenges do you forceses, need to be handled by youin the profession?

Today hiring the right kind of associate is the biggest challengefor all HR Professionals since they are the edifice of any company.The challenge for organization is not only to make potentialemployees aware of their company as a good place to work andbring the best applicant successfully through the recruitmentand hiring process, but no retain them, ensure theirunderstanding of the company's goal and commitment to themand provide the environment and structure to motivate them togive of their best.

What will be the most important needs of talented employees(Young HR Professional) a decade from now? When I asked someof the best workplaces what talented employees wanted fromemployers, they top on their list are:

Autonomy & FreedomHigher flexibility and worklife balanceCustomized career pathsTransparencyOpportunity to make a difference globally

Why you chose to be a HR professional & What aims youmost?

Dealing with Human Being is a toughest job in the world. Hereis an opportunity to feel the pulse of the people and to helpthem to help themselves. So to take up challenging task in life,I have chosen this profession. Moreover ….We HRProfessionals is called as Human Doctors.


Young HR professional redefines its values and professionalidentity and holds itself accountable for building anemployment system that is judged to be fair and equitable byall the stakeholders involved.

We, Young generation of HR professionals will need to addressthe following challenges :

More externally focused and skilled in building andmaintaining alliances and productive relationships notonly with line managers and senior executives but alsowith each other, educational institutions, professionalassociations and networks, labor market intermediaries,unions, and government policy makers;More analytical and able to justify support for progressiveHR policies based on their demonstrated and documentedbottom line results, and:More skilled in using information and principles oftransparency to deliver and communicate HR polices andthe range of information that employees want.


My vision - "Out of the Boxes", which keep me, motivated andcharged every time as:

Re-read Unwritten HR RulesStart running my HR department as a profit CenterClearly define what makes me different

How would you like to add value to the profession andorganization?

It is a give and take relationship where "What's in it for me" isthe essence of any employee employer relationship. HR playsthe pivotal role for building this marriage. HR professionaladd value when their work helps someone reach their goals. Itis not the design of a program or policy that matter most, butwhat recipients gain from these actions. We HR Professionalsembody the soul of any company and adds value to the overalldevelopment and shaping up of a great career for one and all.I would like to add HR Value to my Company as

HR work does not begin with HR - it begins with thebusiness.HR must have a direct line of sight to the market place -that is, to the customers who buy products and servicesand to shareholders who provide capital.HR must be framed as a source of competitive advantage -it must be able to demonstrate that it creates humanabilities and organizational capabilities that aresubstantially better than its competitors.HR professionals must align practices with therequirements of internal and external stakeholders.HR professionals must acquire the personal knowledge andskills necessary to link HR activity to stakeholder value.

Cover featureAnup Kumar Bansal

Dy. Manager-HRM Mindarika, Manesar


Redefining HR Values...


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Cover featureMerlyn Thomas

Corp. HR- BalkrishnaIndustries Limited,Mumbai

Meghna SinghCollege Support, AircelAcademy, Gurgaon



HR function has moved center stage. It has evolved itselffrom being labeled as a backroom function to being StrategicBusiness Partner who gets the best out of the people in orderfor organizations to succeed. This positioning of HR as afunction has opened up varied and challenging career pathswhich is the very reason I choose HR as my profession. Itsuits my personality and temperament.


The most ailing part of this profession is that even thoughHR is responsible for hiring and protecting company's mostimportant asset - HR still is typically viewedas a crisis management function withpractically no empowerment. Itsintangible contribution to business doesnot attract Senior Management likemanufacturing, marketing or finance.

What do you think about thisprofession? Do people like you? Doyou command respect among youremployees or do you feel it was wrongto come this profession?

For me HR is a bridge between themanagement and the employees andI do believe that HR can commandrespect/ trust from employeesonly if it can walk the talk. It must maintain integrity,transparency, unbiased approach and should have the abilityto meet people expectation in some way or the other. In sucha situation respect comes unhindered. Being an HRprofessional it's essential to have a missionary of zeal.What you would like to change in this profession?HR should not wait for things to happen. It should anticipatechanges, minimize adversity and identify what is needed forthe organizations good and what would work here.What is your vision for HR?To have a Board room presence, larger role in decisionmaking process and equality of treatment.How would you like to add value to the profession andorganization? I would like to add value to my company by buildingorganizational capability by supporting overall developmentof people and meeting their professional and personalaspiration to a larger extent.What challenges do you foresee, need to be handled byyou in the profession?Challenges are the importance and status- The managementascends to HR. Is it free to express and present employeeissues, can career path be executed as planned? Can HRcarry good news at all times.


I consider myself a people person, I do enjoy beingaround & working with different kinds/backgrounds ofpeople. I also enjoy psychology, and therefore am alwayslooking to understand how people are, what makes themtick, and act & react. And hence, this was what initiallypulled me towards Human resource management.


Lack of accountability, ambiguity in a lot that we do.Also, since many of our dealings in not in core numbers,revenue and tangibles, sometimes it gets difficult todefend and showcase our work to the management.

what do you think about this profession? Do peoplelike you? do you command respect

among your employees or Do youfeel it was wrong to come thisprofession?

I like HR as a field, and have greatrespect for a lot of senior HRprofessionals. HR has come a long wayin the last 2 decades, and we haveredefined how businesses work. Thereis still a lot to do, a lot to achieve of HR,esp to become a 'business partner' in

the spirit of the word. Yes, I do feelmy employees respect me for thework I do.

What you would like tochange in this profession?

Attitudes of the HR people, the self-efficacy / self-demeaning humor. We as HR people need to takeourselves seriously, and be more aggressive.


I see HR as the "Point of Differentiation" fororganizations. I would also like to HR people made CEOs/COOs of organizations whose core function is other thanHR.

How would you like to add value to the professionand organisation?

I feel I am already adding value to my profession andorganization, and will continue to do the same.

What challenges do you foresee, need to be handledby you in the profession?

As a young professional, a challenge is to be takenseriously by the business. More responsibility can beattributed to us in terms of business contribution.Another challenge I feel, is a lot of kids are coming intoHR because of lack of options (Did not get thru college ofchoice, program of choice) or because they think its aneasier 9to5 kind of job. This leads to a lack of respect fromwithin the HR community.

HR’s Intangiblecontribution should

be appreciated

Take ourselvesseriously


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3. Prompt feedback- Actual and promptfeedback is important so that anemployee knows what steps he needs totake to perform better.

4. Talent Management- It is importantto recognize talent in the organizationand nuture it, so that people can be set ina job that highlights their respectivecaliber.

Future challenges in HR?

1. Aging Workforce- Aging workforcecreates a big problem when major chunkof your workforce fall within similar agelimit, its becomes hard to replace a majorpart of your workforce at one go.

2. Skill Deficiencies- With rapidincrease in technology it is veryimportant to upgrade the skills of youremployees on regular basis, or it may

decrease the growth rate of theorganization.

3. Global/Local Competition- With theincrease in number of competitors itbecomes imperative to not only retainyour employees but also increase thequality of your workforce.

4.Aligning company policy withstringent Govt laws- It is veryimportant to align your companiesobjectives with the stringent labour lawsof that particular or it may hamper theorganizations productivity.

5. Outsourcing of HR activities- Thesedays more and more companies areopting for outsourcing of HR activities toreduce cost so it becomes necessary forHR to prove its importance.

Cover featureKunal Mahajan

HR-Executive, BalkrishnaIndustries Ltd., Mumbai


Why HR as a career?

HR involves deep understanding of human behavior and attitude, which if not sortedout properly can lead to reduction in overall productivity of the organization. An HRrequires patience which I feel I have in abundance. And finally I feel HR plays animportant role in any organization which eventually helps in distinguishing itselffrom its competitors because it is unique and different in its own way.

What ails you about the profession?

HR department as they say is a thankless department, meaning your productivitycannot be measured in terms of statistics; hence it becomes difficult to assess yourdaily performance. Although HR's job is very dynamic, but after certain level itbecomes less challenging. Finally I feel there is a lack of definite career path for HRprofessionals.

Thoughts about the profession, do people like you, do you command respectof your employees?

Yes, I do feel that people like me as I am able to make instant connection with them bytaking genuine interest in their problems. I command respect of my employees as I amthere whenever they need me. After working as an HR for the last two years I feel thatI have chosen the right profession as it matches my style of working and temprament.

What change would you like in this profession?

Change is a part of life and HR being a progressive profession needs to evolve with thechanges in management style. Main role of an HR is to be a facilitator and act as aguide in bringing organization and people to work for a particular goal. With growingchanges in business, HR needs to be flexible and help its workforce in becomingadaptable and tolerant. Hence the only change that is required in this profession is tobe more and more innovative, and use a flexible approach towards managing theworkforce.

Vision for HR?

HR vision could be summed up like this:

a) Facilitator- HR needs to facilitate employer-employee relations by using adequateor latest technology for smooth and swift functioning.

b) Designer- HR needs to design and implement a strategy that not only helps theorganization to grow but also help its employees to feel grow with it.

c) Educator- Education means the following things:

1) Promote creative thinking, innovation and successful adoption of new ideas.

2) Mastery of organizational practices and new process improvement methodologies.

Value addition to profession and organization?

I would like to add value to this profession and organization in the following ways:

1. Employment Security- It is the first and foremost thing that a prospectiveemployee looks for in any organization. So enhancing employment security will leadto lower attrition rates and more faithful employees.

2. Bridging Gap- There often exists a gap between the top management and itsemployees. Many employees are not aware of what is expected out of them and henceit is very important that the employee knows what is expected out of him in order toperform better.

Need to be moreInnovative & flexible...


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Cover featureDushyant Kumar ZaargarAssociate Manager - HRM & C

Kirloskar Brothers Limited

Dr. Rabindra Kumar PradhanAsst Professor, Dept of Humanities

and Social Sciences, Indian Instituteof Technology Kharagpur


HR : To know notice the unnoticed

HR has to excel in applied domains...

HR is the bestplatform, todeal with

the mass, todevelop closeinteractions, toserve and pacifythe people. Whilepracticing as alawyer I came

across Labour Laws, strengthen my beliefto work for and with the industries, to workclose with the people, understand andserve them. MBA was a lucrative degree atthat period and my profession as lawyerchunked an added advantage to it. HRplays a pivotal role to run an industrysuccessfully. Among various coreactivities, the Industrial Relations is mostsensitive aspect of HR activities, whichneeds to be addressed diligently cautiouslyand by a person having bundle ofexperience. The collective relationshipbetween management and employees is thekey to achieve industrial growth.

Industries run in hand with employerand employees, wherein HR specialists actas mediator, a catalyst to bridge the gapbetween, to draw harmony, peace and pavethe way to productivity. HR acts as an

advocate to bring two pillars, together withmutual interest. Proactive approach torelations ripens the fruits for an industry.Industrial Relations irrespective oftechnology advancement, modernizationand globalization is most freak area inindustry, needs to tackle with properintervention and sensible projections toachieve the harmony. Maruti, Rico, HMSI,the major giants have recently faced theheat of Labor Unrest, Strikes, Go slow,violence and interference by the outsiders.Question is why? The question isunanswerable and will try to answer themlater. Notwithstanding anything containedit is the failure of our experts, specialists.We cannot wait for government to amendthe Labor laws within a fix time frame.Hence it is to be dealt with the presentresources whatever it may be.

In my industry we have various forums,which act as sensors to know the changesand to address them at right time. One toone meetings with the employees, Homevisits, know them by name, Sharing lunch,Tea time discussions, Joint DevelopmentCommittee, Apex Committee, MahaSamvad, Weekly meetings and to bringtheir personal issues with one self feeling,to act as buddy, to act as mentor for them

helps to command respect and love amongemployees. One must not leave a stoneunturned to maintain cordial relations.

Today one can feel the dearth of HRProfessionals having the experience inindustrial relations. Behind the backdropwithin a very short of span of time theyswitch off from one industry to anotherwith a lucrative CV and having superficialknowledge. First Learn and then earn isthe requirement of the time. HR must actas catalyst to establish the mechanism,develop the sensors to know notice theunnoticed, to hear the unheard andassociate closely with the associates tovisualize the unspoken.Every Changewithin or outside the premises of theindustry have always had an impact on therelation whatsoever it may be, must beaddressed effectively. Management mustalso understand the keys to relations androle of HR. Before implementing anychange, cost reduction, change in workingconditions one must take the HRdepartment into confidence and need notignore it, as a burden to business. Myprofession is my passion and will act as anactivist, catalyst to develop the conduciveand harmonious relations for myorganization!

Iam a man of psychology and studied human beahaviour morethan two decades. I am specialized in organizationalpsychology and organizational behaviour which helps me to

apply psychological principles to study the human behaviour atwork place. This directly links to human resources such as humanintelligence, aptitude, attitude and behaviour as a whole. That'swhy I chose HR profession. I feel being in this HR profession Icould contribute a lot to the field of training and development foremployee development and their career growth. I never felt that itwas wrong to come to this profession. Rather, the kind ofappreciation I receive from training community is enormous andencouraging to my profession. I often solve the HR problems of myorganization and my department through mutual understanding,effective negotiation, interpersonal relations, round table discussionand also through legal mechanisms.

My vision of HR is to train HR people on emotionalintelligence, competencies and values. To train them on theassessment of EQ at work place, I am developing a trainingmanual on Assessment and Application of EQ of HR Professional.This will benefit a large number of people who are interested inlearning about the theory and practice of emotional intelligence.Application of emotional intelligence at work place has movedfrom competency assessment to leadership development and alsoenhancing team effectiveness for better performance. Thus, I

think emotional intelligence is such asubject that could be utilized for selection,recruitment, training, employeedevelopment, performance appraisal,conflict management and negotiation,career counseling, coaching andmentoring.

The only challenge I foresee for HRpractitioners is that they need to becontinuously updated with new researchfinding in the field of human resourcedevelopment and management. Being in a reputed organizationlike IIT, I feel privileged to have all academic support in terms ofnew books, journal, magazines and intelligent mind to exchangeideas etc to keep my profession more vibrant and moreprofessional. My institute has a strong link with industrythrough which I practice my knowledge of HR at work place.Besides, I am hopeful that the coming years will witness aparadigm shift in the theory and practice of HR from the basicfunctions of HR to applied domains such as workforce diversity,flexy time schedule, work life balance, gender equity, HRbranding and practice of ethics at work place. The HRprofessionals will find it extremely difficult to handle theseabove mentioned issued unless they excel in human skills.


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Cover featureNupur Singh

Associate Manager - HRKirloskar Brothers Limited



The Passion to play a key a role of strategic business partner& to get the best from the people in order to achieve thebusiness goal of organization. Presently the position of HR isthe heart of any business and to grasp the opportunity to feelthe pulse of people & people relation attracted me to choose HRas profession and then since I had taken it up as a challengingtask in my life, I have chosen this field.


Over a past 20-25 years the HR profession have transformed to agreater extent, but as of today Maximum of the youth wants tobe in softer area of HR show their least interest in field job likeemployee welfare activities, Industrial relation , Legal etcwhere requires the least relationship building. Today it isneeded that all must understand the equal importance of allthe functions in HR and rather thinking HR as a comfortable

profession treat HR as achallenging position which

is more ahead thanfunctions of training &recruiting only.

So, persons who arelooking to get into byperception andmisconception that HRis a profession ofcommand & controlonly whereas theground reality isaltogether different itis profession ofservice and support tothe key businessfunctionaries.

what do you thinkabout thisprofession? Dopeople like you?do you commandrespect amongyour employeesor Do you feelit was wrong tocome thisprofession?

The professionis Core & Heartof Business andvery exciting as a

profession, every

day there is something new to do. People do like me & myprofession as HR as I am born to be motivated & to makemotivation level of other to the peak for delivering the bestresults for the business. Of course it happens that liking &disliking varies with the course of action at the momentrequired and people’s own convenience.

It is really happy to be in this profession, for all who have keeninterest to learn a single new thing every day & have zeal tochange the overall scenario by one step this is the bestprofession to choose, every new issue, problem comes is newand solutions are sometimes simple, many a times complex butare exciting to resolve them.


Unfortunately, in some organizations HR is still not seen as anoccupational group that delivers value to key stakeholders.

The value created by the HR function is frequently questionedby Senior and Line managers. This reflects how many humanresources functions are perceived to be out of step with theneeds of businesses.


A professional as business partners to get the best from peoplein order for organisations to succeed, and HR must be catalyst,conveyar & Motivator must have shed its label of a backroomfunction that reacts when prompted.

How would you like to add value to the profession andorganisation?

The foundation of adding value to the business is trust andone need to understand that trust cannot be fabricated.

In today's new business order, management is looking to HR tolead initiatives that improve workforce performance,productivity, and satisfaction. HR Professionals are mostvaluable when they can forge strong partnerships with topmanagement in order to affect the organization's businessstrategic direction.

HR can intervene and add value throughout the enterprise itserves by helping it achieve goals like Understand yourcustomers' 'business' ,Focus on helping yourcustomers(Internal external) achieve their goals ,Link HRplans/goals to customer needs, Be proactive ,Find solutions,not barriers.

What challenges do you foresee, need to be handled byyou in the profession?

Rarely it is found that that the HR - Head is Business head , theone challenge I see is foresee by this profession is to link theprofession with the business, the professionals mustunderstand broader environment (labor, politics, legislation,technology) & allow time for strategic thinking to createsustainable competitive advantage.

Why prefer only soft HR?


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I am calm and composed in my approach while dealing withinternal and external stakeholders. I am glad to have chosen thisindustry as my career path. It gives me an opportunity to shapeand touch lives of company's employees to make an organizationa better place to work effectively patronizing business needs forgrowth and development. It is my passion.


Today, HR professionals have spread their wings and supportingevery other function / business units of an organization. Ourefforts and involvement are misconstrued sometimes byemployees who consider it is not the responsibility of HumanResources professional to support. Processes and systemscreated by Human Resources team help employee engagementand achieve satisfaction. HR team's utmost responsibility is toensure all employees follow and comply with processes andsystems.

What do you think about this profession? Do people likeyou? Do you command respect among your employees orDo you feel it was wrong to come this profession?

Human Resources as a profession broadens your horizon to viewthings differently. Everything that touches an employee, HumanResources team gets involved and is responsible today. For anorganization, employees' effectiveness directly co-relates to thegrowth and profitability of an organization. HR professionalsare best friends of all employees as they provide a shoulder todiscuss anomalies to find an amicable solution. It is reallyfulfilling as a HR professional to solve problems and issues facedby any employee and been considered as a support system for allemployees.


Change in any profession / function is always for better forunified functioning. In such a case, where today's evolvingbusiness scenario and complexities of operating anorganization are increasing, change is necessary in thisprofession to support ever changing business needs.


Vision of any HR professional would be to make the companyone of the most respected, admired, preferred organizations towork for employees. I personally prefer to play an active andstrategic role in overall business process by designing HRsystems and procedures, which are aligned with company'spriorities and business objectives.

How would you like to add value to the profession andorganisation?

To act as a facilitating agent by adopting a multi-disciplinary,dynamic approach to the human resource function, with theultimate aim of implementing innovative changes in the worklife at Bombardier Transportation in the region, whiledeveloping cross-divisional harmony and synergy. Inmy current role of Human Resource BusinessPartner at Bombardier Transportation, Iunderstand the needs of the business and devisepeople strategy aligned with the needs of theorganization. Bombardier Transportation isthe global leader in the rail industry. We

cover the full spectrum of rail solutions, ranging from completetrains to sub-systems, maintenance services, system integrationand signalling. Our installed rolling stock product base exceeds100,000 rail cars and locomotives worldwide. Our broadinternational capability is based on our strong local roots. Wehave 59 production and engineering sites in 23 countries.Additionally, we operate more than 40 service centres at ourcustomers' premises around the world. With a diverse workforce- more than 100 nationalities speaking 25 languages - HRdepartment devises programmes for fresh ideas from ouremployees that align with our core values of integrity,commitment to excellence, customer orientation andshareholder focus. In India, we have created various programslike Young Leaders program, Internal Job Posting, EmployeeReferral program, Employee Diversity Program amongst othersto engage and retain our strong workforce of 1100 people acrossvarious manufacturing sites, project and marketing offices.

Cover featureAshima Roona

Human Resource BusinessPartner, Bombardier

Transportation


Givesopportunity to

shapeemployees’ life...


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Cover featureSwati Singh

Sr.Manager - HR Lafarge India Pvt. Ltd.

Kolkata



I have Knowledge, Intuition, Versatility, Flexibility, Focus andabove all human touch in everything I do

which are the basic qualities of a HRprofessional. A HR Manager helppeople meet their aspirations whilefollowing the company's policies ,structure and rules. I think with anexperience of 6.5 years I know wellhow to deal with humans.

What do you think about thisprofession? Do people like you?

do you command respectamong your employees or

Do you feel it was wrongto come this profession?

To work in any professionone should not only haveSME on that but alsopersonality, behavior,attitude, professionalapproach & workefficiently to sustain inthat given profession.This is also true forHR profession. Thereare some minimum

expectations from HR professionals, listing a few below:

1- Clarity of thought 2- Efficiency in time Management3- Knowledge about business & Industry4- Vision & goal for the department, team & Organization 5- Enthu to share/develop/Coach & mentor6- Self Discipline- In short HR professional must be proactive

with all strategies & action plans in order to meet thechanging needs of the organization. They must be thoroughwith the basic functions like planning,organizing,leading &controlling human resources.

About myself I can only say I cannot think of any otherprofession if not HR. It is very difficult to say whether peoplelike me or not as it's a personal affair but yes I am veryconfident in what I handle & I always command respect amongmy employees.


HR being a core function of an organization we should notoutsource our core activity as it causes employee to feeldisconnected with the company. Employees feel secure &comfortable talking face to face on their personal info &decisions. We try to save money & time by outsourcing but it canbe more costly affair sometimes as transition may not be so easy.


HR Strategists to focus on finding ways to leverage thecompany's human capital to improve business results.

How would you like to add value to the profession andorganization?

By being efficient & effective in all my effortsMake improved use of technology both internally &externallyPresent information in more meaningful ways, tailored tothe intended customerShould be in a state of continuous improvement

What challenges do you foresee, need to be handled by youin the profession?

Lafarge being an MNC, major challenges is to handleMulticultural/Diverse workforce. Retaining Talent. ManagingChange. Conflict Management.

Cannot think of any other if not HR...

Anupama NairWoking on PHR,

SHRM, USA

At an early age when most of my friends had dreams ofbecoming a doctor or engineer I wanted to do MBA inHuman Resources. I believe my fascination for HR stems

from meeting a couple of people who were dedicated to thefield. I was intrigued by the mere concept that it is people whoare the most important asset to an organization. I continue tobelieve that the organization's dynamics can be improved bybolstering the motivation and performance of employees.Mypassion for HR has not reduced over the number of years, ifanything, my interests have been piqued. I have had theopportunity to explore HR in three countries. My experienceshave enriched and broadened my perspectives.

Even though the concept of HR as a strategic partner waspioneered many years back, it still struggles to achieve thatstatus. In many organizations HR is known and appreciated forits operational role like recruitment, benefits, etc. I would liketo see HRas not only an integral part of strategic managementbut also an innovator.If HR can come up from the ranks ofbeing stuck in the cycle of operational tasks and raise to be a

catalyst for talent, organization and leadership then I believeHR can create a niche for itself. One of the challenges for HR isto market itsvalue to the top management, internal/ externalcustomers and stakeholders. In order to do this it is imperativefor HR professionals to align tasks completed in thedepartment to the strategic objectives of the organization. AnHR professional needs to be able to command the respect andtrust from all aspects of the organization. He/ she needs to beable to be the go to person and in order to be that he/ she musthave a sound foundation of not only the subject matter of HRbut of the organization as a whole. HR department can have avision and mission for itself and be able to quantify its successin numbers. A strong leadership along with a deep rootedknowledge base can be the biggest asset to the HR department.I believe that HR can achieve the role it rightfully deserves bycrossing over from putting out fires to be able to predict whenthe fire might happen and take actions in anticipation of it. Anarmor of policies and procedures accompanied by consistentand fair practices will go a long way in gaining employee trust.

HR Needs to command respect...


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Time to work ondignity of HR...

Cover featurePradeep Kumar

AM - HR,

Visteon, Bhiwadi


Dignity of the Profession:

The most pinching point for New HR Generation is to develop & create acceptance to"Dignity of HR Functions". Why we are still perceived as anti-employees. HR should bepro-people rather than pro-management or pro-employees. It is a fact that HR has grownin larger sense with the development of business but still treatment to this professionwith respectful eyes is somewhere missing among employers & other institutions.Weightage to HR only in presentations & declaring it as "Strategic Business Partner" isnot going to help in longer run as there has been recent case studies of HR Burnout allover country. Valuing HR by employer has to be very honest with sincere intentions &follow in better people handling practices. Till now, development of HR profession hasbeen associated as a secondary supporting function of business (Over Heads) & HR isasked to reduce & control the same. It has been result of only & only business volumesrather than taking it in its true spirit. Young HR generation doesn't want to be paid withhuge packages but to be recognized for their contribution & value additions toorganizations through HR Practices & systems.

Replacement of Traditional HR Practices:

What was relevant yesterday is nowhere applicable today. Current HR priorities have tobe reviewed & refined in today's fast changing business scenario. New HR professionalsare competent, aggressive & equipped with latest/modern business HR Strategies. It is achallenge before Young HR generation to create new wings to this profession. They reallywant to change the whole picture with their energy, dedication & competence.

Who has to take HR Decisions?

What ails sometimes that HR professionals keep looking at Non - HR people to take theirdecisions even which are routine in nature. Their proposals & recommendations are keptin the drawers of big boss for months without any feedback & when there areconsequences due to that delay, HR is asked to become a trouble shooter & to resolve theissue overnight. Young HR people want to take up that why they look at others to take HR

decisions from those who don't knowmuch of HR functions & their linkagewith operations. HR has to comeforward & make understand allconcerned that well HR has to beempowered enough to take decisionsindependently so that they can makedifference in actual sense. HR decisionsby non HR people who are never everexposed to HR practices, may backfire.

Competency Based HR Systems:

It can never ever be denied thatcompetence/exposure of HRProfessionals have been a questionmark in totality. They are away fromtheir specified techniques & principles.They have been found to say that theyare away from Operational competence.Now the time has come, we need toovercome HR linked technicalcompetencies so that we can lead HRfunctions in real operational issues. Wewant to give new shape to all HRfunctions through competency basedHR systems like attracting talent, on-boarding exercise, performance cumrespect based culture, capacity buildingexercise & performance leadership &such working culture.

Operational Excellence is key areafor HR:

HR role in operational excellence likequality of people involvement, howthey perceive their individual &business goals, their approach to work,current motivational exercises & wayof recognizing has become veryimportant. To provide atmosphere forlearning & execution of those learningin their current role has to be lookedafter by HR.

Walk the Talk - Approach for HR:

We should do what we say. There shouldbe no double standards in working sothat acceptance & connectivity withpeople can be sustained & further takenfor better employees relations in theorganization.

Do we know our "Subject Matter"

We have to see all issues/concernsthrough eyes of a worker, his approach,his tendencies & his issues in realsense. Every HR people has to become aworker first then only he can take HRdecisions (can recommend) in effectiveway. Better behavioural skills canavoid major IR incidents. HumanRelations at work place has becomechallenge before young HR.


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People from best and reputed management schools joined the organizationsto fulfill the need. But the outcome was a "heterogeneous mix" of existingbosses and new professionals. Improvement and swift growth was arequirement and industries tried to add a catalyst (New ManagementProfessionals) that accidently ignited unexpected efficiency retardation.There is "a worry "clash between professionalism, ethics and vision.

Now many of Indian companies led by people of 50+ age group whowere schooled in a relatively less efficient world; working in office from 9to 5 and few of them in 8 to 8 culture, hourly rate and sign-up times forconference rooms, but, on the contrary there are new managers who don'teven like to wear wrist watches. For them clock is just a decoration. Theyprefer to work whenever they are most productive. They prefer to bringtheir own device to work and use them wherever they go, rather switching

to the company's technology during the day.Instead using intercom, they preferinteracting online through instantmassaging or cell phone messenger. They

prefer conferences via Skype, vtolk etc. inplace of expensive infrastructure like videoconferencing etc. New age managers are more

transparent, assertive & are not willing tolearn workplace politics. They do not

believe in hypocrisy and prefer tostraight forward calls. They do not

maintain distance with subordinates,juniors but, treat them asfriends unlike the old ageleaders who are diplomatic andoften show off their powers.New age employees arecomfortable working withcolleagues in different

geographies and thrive on instantaneous communication. As it becomescompulsory for businesses to transfer the responsibilities to new ageleaders so that enterprises can run their business uninterrupted, nowbusinesses are confronted with two crucial questions:

1. How can we attract this new generation of technology-drivenworkers to our company? And

2. How can we adapt our culture to retain them?

The transition is not easy because many of 20-25 year-old companiesare operated by old age leaders and it is also felt that their speed is notmatching with the current pace of technological and informationchange in the industry therefore, they have to give some space to the newage leaders so that they can unleash their potential while remain inpower, they are not transferring their responsibilities with happiness.Here HR can play a vital role as of a diluter in smooth transition bytaking following things in consideration while designing people policies.

First, HR can make entrepreneurs to focus more time and energy onmeasuring the degree to which new generation employees are engaged inthe company, its offerings and values. Second, HR must let the existingGeneration-X bosses to understand that Gen-Y workers are motivateddifferently from generations of the past. For hiring and retention, it'simportant to advance the corporate culture in a way that allows foreffective communication and new types of motivations. That's not to saythat accountability must be discarded, but the way accountability ismeasured may need to change, a third consideration. Most important isthe necessity to realize that the world has changed!

Cover featureAmit Shetty

A.G.M -Talent Acquisition

Lafarge, Mumbai

Ajay TanwarHead Plant-HRRoop Polymers Limited, Mewat


Soft issues aredifficult tocapture...


Post my engineering, I started working as a backoffice engineer in Hutch (now Vodafone). While Iwas on my job, I got an opportunity to learn aboutdifferent facets of training which enticed me.Right from developing the design of a program toimplementing it - was an exciting experience. Thiscreated initial curiosity, which led further intoevaluating the various facades of HumanResources.


Some of the most indescribable work for HR has beenfinding a means to quantify itsvalue and contribution infinancial terms. In theabsence of such measures,cost-cutting becomes themetric most typically appliedto HR. Developing themeasurements to quantifyresults in terms of impact tothe bottom line is the only wayfor HR to shift the cost-cuttingparadigm.

What do you think aboutthis profession?

HR professionals who have the business acumen tocontribute to business strategy at the highestorganizational levels are leading the shift in the HRprofession from administrators to strategic advisors.


Costs are easily measured, but the "soft" issues aremuch more difficult to capture. How does HR establishmetrics to quantify the value added by the function?The change that I would like to see would be that HRprofessionals not only understand the business, butalso know how to develop strategy and execute them.


Create Agility through Integrated PeopleManagement Processes.

How would you like to add vale to theprofession and organisation?

There is no shortage of compelling work for HRprofessionals in today's business environment.Two primary factors shaping these opportunitieswould be technology and talent management.Leveraging these two opportunities throughtransactional and strategic response would addvalue to the profession and organisation.

HR - A Diluter!!


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Cover featureArun. S. KaimalSite HR Leader- GE

Energy, Mumbai



After completing my graudation in 2004 , when Ilooked back at the significant events which haddefined my life , a common theme that emerged wasthe close association with People in all activitiesthat I undertook. Believing in the concept ofSwadharma (every man to play to his naturalstrength and make it his/her duty), I chose HRthinking that I could contribute best in this area.Have not regretted even a single day since.


The recent economic pressures starting with SubPrime, moving to European crisis and now the acutecorruption levels in our country, the heartcomponent ( How part ) of the profession is slowlybeing pushed into oblivion and the Head component(What Part) is becoming more and more pronouncedin all actions revolving around HR. This is adisturbing trend and unless we as a group do not doa self check and maintain the balance, we couldsoon face many more challenges in maintaing aHealthy workplace. The recent spate of IR incidentscan also be revisited to understand the significanceof this balance.

what do you think about this profession? Dopeople like you? do you command respectamong your employees or Do you feel it waswrong to come this profession?

I feel lucky to be in this profession which alsohappens to be my passion.

I recollect the chinese saying :

If you are looking at 6 months, grow rice, If you arelooking at 2-3 years, grow managoes, But if you arelooking for a lifetime, nurture People. I am glad thatI get to be a part of a profession that makes adifference to the lives of People. I do feel that theworld is a Echo Chamber and hence if you giverespect it comes back to you in multitudes. I havenever had dual standards for my driver or mydirector and hence, I do tend to feel by the way that Iget treated that people do respect me in the sameway. As said before I never regret being in thisprofession even for one moment.


Change is the only constant in life. I would like tomake the profession and hence the professionalsmore agile and responsive to change as we ourselvesare the torch bearers of positive organisationalchange. We are in true sense the change agents andin the words of our Father of the nation-"We shouldbecome the Change that we want to see in the

world". Hence I would say that our propensity andcomfort to change rapidly as HR Professionalsshould become much higher and we should pick upthe art of managing change in the most sensitivemanner so that we can create true Win- Wins.


I see HR continuing to play the strategic businesspartner role in days to come as well. In my worldview I see HR being rebranded as Humility &Reality. Let me explain this a bit. Humility for me isthe ability to have all stakeholders alinged andexcited to the organisational goal in a nonthreatening manner and keep them charged up at altimes to achieve the same in a ethical and inclusiveway. Reality for me is the ability to anticipate andcreate change (keeping abreast with internal/external realities) and influecing the direction ofthe organisation at all times so that the businessremains on course.

How would you like to add vale to theprofession and organisation?

I would like to play the role of the Oracle ( like in themovie Matrix ) who is able to connect the dots andwho is connected to the changing world and makesthe employees (analogous to Neo in the movie)march towards the best and become the true"Chosen One" in all things that they do. This for mewould be the dream state as an HR Professional.

What challenges do you foresee, need to behandled by you in the profession?

In this VUCA world (Volatile, Uncertain, Complexand Ambigious ) the challenge that I foresee isdeveloping the ability to be "see & sense challenges "much before they come to us and become ' here andnow problems '. Would like to share what a seniorleader for whom I have a lot of respect , onceshared with me. "Dont let problems come to you, yougo to the problem and fix it proactively". I feel thatthe demographic scenario in our country, the globalpolitical changes, and the disruptive forces at workwill make this world change much faster. Case inpoint : Smartphones just passed the 1 billion barrier.That took 16 years. The next billion? Less than 3years- StrategyAnalytics.

Hence I would say that the need of the hour ishaving answers to 3 questions :

What to Change

What to Change to

How to make this possible ?

The one who has all the answers isthe " Chosen One".

Self check & maintain balance


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S.Chandrasekar

Chennai

In India, the compensation and benefits tonurse category remains below average whencompared to the present economy, medicaladvancement and magnitude of patientshandled. Every nurse is a Florence

Nightingale dubbed as 'lady with a lamp' and herpay scale fixation is alarmingly in dark. It is timethat C&B in medical domain totally needs arevamp.

Recently, we all had read about hundreds ofnurses who participated in strikes at majorhospitals in Chennai demanding better salary andnight duty allowance. When I visited a friend at aprivate hospital of repute, I had the chance to seewhat exactly is happening.

I saw the duty nurses in every ward workingwith utmost sincerity, dedication, preparednessand caring attitude. You may ask, 'Well, what'snew in this? A nurse has to naturally have theseattributes.' Yes, true. They have to possess these atany cost. Would any of you serve with fullness andinvolvement when you are deprived of properappraisal, allowances and revision of salary thatshould be a natural process? Definitely you won't.With soaring anger to drop the papers in a jinx,you will sometimes not wait for the properrelieving though aware of the separationformalities. But a nurse cannot leave a patientmidway or ignore his call or inject over dosage to

voice her anger of dissatisfaction.

Nursing job is a service related career thatinvolves medical KRAs like caring, medicaladministration, supervision, helping the doctors,customer satisfaction, nuances of dosage,counseling, motivation, patient database, ISOprocedure, systems etc. Right from the admissionto discharge, she is on toes to attend to the call ofpatients. Though tired and exhausted, she doesnot expose it for the sake of dignity of herdesignation. I saw a nurse having dinner aftermidnight without an interest to eat. It is tough forany common man with appetite to eat deliciousfood in an environment always engulfed withsmell of disinfectant, medicines and laundrylinens.

With a basic course in nursing, they are paid aminimum of Rs.6500/- per month and goes up toRs.12000. With a master's degree and experience,they can earn the maximum. The recent demandof the nurses across the city was to fix Rs.15,000/-as minimum salary and revise night shiftallowance with at least Rs.20 more. Existingallowance is at Rs.30/. Even then imagine whatyou can buy with Rs.50/- with the rolling tougheconomy. I read the recent newspaper columnsthat reported about the nurses who indulged instrike and abstained from work at MMM, Apollo,Vijaya and Malar Fortis hospitals.


Show Florence alamp to serve

Nursing job is a service related career that involvesmedical KRAs like caring, medical administration,supervision, helping the doctors, customer satisfaction,nuances of dosage, counseling, motivation, patientdatabase, ISO procedure, systems etc.

T heyhave knownat least fourlanguages viz. English,Tamil, Malayalam, and Hindi/Telugu. Ialso saw English-Tamil-Telugu-Hindi dictionaryat their station for ready reference besides Fajans& Conn journal. If they hadn't enjoyed their jobthey would have not shown the necessity to learninter-lingua words with patience. It shows theirmeticulous interest to understand the words ofsymptoms spoken by patients who should not bewrongly medicated. They come like flying angelsat the buzz of the bell of appropriate bed numberat their room dashboard display.

I understand that half the salary goes to nursequarter's rent. With the remaining portion theyhad to fight for the ends to meet. They cannot stopsending that meager money to parents, theycannot stop eating food and they cannot availextra leave for the fear of loss of pay. Those luckyare non-hostellers who can adjust with othersources of income in the family.

After gaining sufficient experience theymigrate to the Gulf, Canada, UK and Australia forbetter prospects that a senior government nursecannot imagine. Fairly speaking these countrieshave to pay commission to our country for sendingwell trained nurses and medicos for theirhospitals. Our nation has not earned recruitmentcharges directly from the foreign government. It istapped by the manpower agents who do bulkrecruitment. It can also be construed andperceived that our country willfully allows thesurplus human resource of good experiencednurses to other countries. Though there is adeficient manpower of nursing talents for ourmammoth population, we had to graciously lieand say the other way. It is time that the Ministriesof HRD and Medical health act fast on theseissues. For these facts, it is very reasonable thatnurses are declining to get transferred to remoterural areas where their requirement is enormous.

Since the days of British all laws have becomeold. On par with the Social Security laws, aseparate labour law has to be framed to guide theNurses Minimum wages Act. The regular

notificationsinserted in

newspapers byEPFO/ESIC shows that the social

security laws are simply taken for a ride despitethe statutory laws. Any threat or caution about thepenalty/imprisonment/both has no effect on theimmune employers. On the ordinary yardstick ofexisting labor law, hospital domain may bepurposely ignored. Many irrelevant and obsoletelaws shall have to be abolished; laws have to bemade simpler and more transparent. Hospitalindustry is thriving in business with good size ofinflow year after year.

There should be a definite annual hike insalary with at least 15% hike with reduction inhostel fees. Night shift allowance should be placedat Rs.100/- and if possible, performance incentivepay on profit sharing on the revenue earned canbe worked out. If everything is perfectly in place,not a single nurse would like to go abroad to earnmoney, they would ever remain committed toprofession and promote medical tourism throughcustomer (patient) satisfaction. This is the onlyplace where a customer is greeted as 'Get well andgo home'. Unlike other business entities they arenot greeted as 'Thank you and visit again'.

Every hospital and diagnostic lab is swellingwith crowd like a marriage hall and hardly spaceto sit. There is a continuous demand for qualityhealthcare and the market is ever increasing.Chennai acclaimed as the medical Mecca of theSouth, should rise up to the retention plans ofnurses. Statistics show that within 2015 thenational revenue from healthcare sector willreach $100bn. Many leading hospitals haveplanned to expand business this year withadditional investment of Rs.10,000 crores andsome prominent takeovers are likely on pipelinesays the stock exchange portal. When the bustlinghealthcare industry has been reported 'healthy' inits master checkup, then wait for whom to reviseannual pay scale and retain the nurses?

Hope the article would positively bring a changein the revision of C&B and nurse the medical HR.A beacon at the end of the tunnel!


Show Florence a lamp to serve

BM

imbalance, 3)guide others byinspiration (a guideinforms, a teacher explains,a manager exhibit but a leaderinspires), 4) take no credit foranything, 5) consider self as a part ofa team, 6) talk about newness of thepresent moment, 7) can think with a newstructure, 8) behave with complete trust andimpartiality, 9) say exactly what he wants to mean,10) can use humor intelligently.

A Leader knows the real difference between theemotion of having and that of not having. For him, havingis fulfillment and not having is emptiness. After nothaving, one requires many more clarifications, but afterhaving no more explanation is needed; he just steps intothe next stage of having. The moment an individual careswhat others are thinking about him, he feels the discordthat things are not working according to his desire. Hefails to feel the way into the frequency of delicious placelife always promises for him. He tries to please everyonearound him to move away from who he really is; and hebecomes a manager. For a leader, transformation of old toa better New is important over management functions. Aleader never offers negative judgments on a situation tolet it go out of his hand but he sees it as an opportunity tolearn and evolve its meaning only to bring change in thesituation. A manager is eager to see his positional value inthe hierarchy but the essence of a leader is only in givingwhat others want to have. The worth of his word is in thechange it brings to affect the intention of the word. Aleader never cares to change the opinion of people but hejust makes it possible for others to achieve what they dareto achieve.

Are you a leader? Feeling of leadership comes fromcontentment, satisfaction and freedom. There is nobenchmark, no comparison, and no requirement ofpublic display to express these emotions. It is deep-seeded within the Self that pronounces itself naturally.A manager solves the problem of today but nothingmatters really for a leader other than his ability tochange and incorporate new values in his thinking,saying and doing. Managers always try to reach a placewhere he has already been before but the journey of aleader aims at reaching a point where he has neverreached any time in his past. A leader creates a legacyand a leader is an icon of trust. A Leader inspirespassionate people to meet high ambitions; he providesplatform to kindle hidden capabilities. Rules are meantfor managers only to be broken by leaders to set newpaths for the journey. Paths lead to new choices andpossibilities create new waves. Ask yourself onequestion, who would you like to be, a Leader or aManager?

Managers fill,Leaders inspireto spill

Fight continues between the Man-of-Success and theMan-of-Value. You are conscious and you continue towatch your space with apprehension: who wins?

Statistics already highlight that managers are all over therewho look for success in life but not too many leaders whobelieve only in values. SURROGATE HR views a leader to bea Human being who leads to 1) educate people to bringchange and influence outcome, 2) make individual aware toreach for conclusions, 3) help people to expand and realizeworth, 4) interrelate values to bring transformation.

A manager is eager to see his positional value in thehierarchy but the essence of a leader is only in giving whatothers want to have. The worth of his word is in the changeit brings to affect the intention of the word. A leader nevercares to change the opinion of people but he just makes itpossible for others to achieve what they dare to achieve. Werecognize a manager by his belief, by his nature and by whathe does? He follows the belief of an organization, he doesnot cherish newness and he never belongs to present. Asituation is influenced by the combination of all factors thatcause it to happen. A manager works with objects but aleader loves to work with human beings. Managers spendtime in planning but leaders inspire and motivate. Life givesus opportunity to be different but our inability to see itmakes us a manager. The fallacy is elsewhere; we as ahuman always desire to be a leader even if we appreciatethe life style of a manager. We can observe our life veryclosely and critically; what do you really include when youcreate the vision of life? Who gets the priority: somethingthat others want you to be or be what you are passionateabout? Most of us live the unfulfilled lives of others failingto respond what our life asks us to be. Journey of life takesa separate path as soon as you deviate from your own self.

There are four essential elements in life: vision,resource, inspiration and efficiency. Answer these fourquestions regularly: Do I have an access to knowledge torenew my vision? Can I manage all my resources to makemy vision a reality? Where do I receive my inspirationfrom? How do I make my journey efficient? You introspectyourself in three different layers: first layer, have I comehere to fulfill my basic requirements of life? Second, how doI like to develop my relationships with others? Third, whatis my attitude towards my expansion of growth? But aleader never accepts old and he challenges it in the present,he models his way through and he always inspires andmotivates others to become a leader.

Who is a leader? Our normal exposure in daily life makesthe question very complicated though the answer is verysimple. A leader does not ever care to look back and see howmany people are following him. He never wants others to behis followers but he likes to create new leaders. Probabilityof meeting a manger is 99 times more than that of a leaderand thus we know very little of the traits of a leader. Theyare: 1) does not portray inner world differently to outside, 2)does not give unsurprising responses or emotional

CHINMOY SARKARAuthor, AXELL

BM



Minimum Wages in Himachal Pradeshw.e.f. 1.9.12

Sr. No. Total Daily Minimum WagesCategory (In Rupees)

UnSkilled Semi-Skilled Skilled Highly Skilled Clerical/Non- Technical

1. All Per Per Per Per Per Per Per Per Per PerScheduled Day Month Day Month Day Month Day Month Day Month

Employments 150 4500 165 4950 188.98 5699 244.22 7267 188.98 5669

2. Pubic Motor 130 3900 137.79 4134 158.37 4751 183.94 5518Transportw.e.f. 1.4.12

Minimum Wages in Madhya Pradeshw.e.f. 1.10.12


UnSkilled Semi-Skilled SkilledPer Day Per Day Per Day

1. All Scheduled 190.12 195.12 201.12Employments

Amendment to Payment of Wages Act, 1936

Wage Ceiling increased from Rs. 10,000 to 18,000Dated 11th September 2012

S.O. No. 2260(E)- In exercise of the powers conferred bysub-section (6) of Section 1 of Payment of Wages Act, 1936 (4of 1936), the Central Government, on the basis of figures ofthe Consumer Expenditure Survey, published by the NationalSample Survey Organization, hereby specifies Rupeeseighteen thousand per month as the wages under said sub-section (6).

[ F.No.S-31018/3/2007-WC]T.K. BASU, Dy. Director General

(Published in the Gazette of India (extraordinary) Part - II,Section 3, Sub section (ii) dated 20th September 2012.)

Minimum Wages in Punjabw.e.f. Sept. 12

Category w.e.f. 1.3.12 w.e.f. 1.9.12monthly/daily monthly/daily

Unskilled 4268.00 4568.00164.06 175.56

Semi-Skilled Upper 4613.00 4913.00177.34 188.84

Semi-skilled Lower 4454.00 4754.00171.18 182.68

Skilled Upper 4997.00 5297.00192.06 203.56

Skilled Lower 4710.00 5010.00181.02 192.52

Highly Skilled Upper 5443.00 5743.00209.18 220.68

Highly Skilled Lower 5253.00 5553.00201.90 213.40

Clerk, Time Keeper, 4772.00 5072.00Salesman, Conductor, 183.42 194.92Storekeeper etc.

Accountant/ Graduate 4966.00 5266.00Clerk, Asstt. Supervisor, 190.86 202.36Car driver, Cashier,Muneem, Stenotypist,Ugrahia.

Truck/Tempo/Bus Driver/ 5443.00 5743.00Supervisor/ Stenographer 209.18 220.68

Amendments in EmploymentExchanges (Compulsory Notification

of Vacancies) Act, 1959The Union Cabinet today approved the introduction of

Employment Exchanges (Compulsory Notification ofVacancies) Amendment Bill, 2012 in Parliament.

The Employment Exchanges (CompulsoryNotification of Vacancies) Act, 1959 was enacted in theyear 1959 and with the passage of time some of itsprovisions have become obsolete and requiremodifications. With this in mind, the Act is beingamended. Employment Exchanges will be renamed as"Employment Guidance and Promotion Centres" as thefocus is now on vocational guidance and careercounseling besides registration, submission andplacement etc. Establishments in the private sectoremploying between 10-24 persons are being broughtunder the purview of the Act for the purpose ofsubmission of returns. This is likely to result in a morerealistic estimate of employment in the organisedsector. The employer is being mandated to furnishinformation relating to the result of selection againstthe vacancies notified within thirty days from the dateof selection, to make the registration data morerational. The definitions of employee and employer arebeing broad based to include contract labour that hasworked for more than 240 days in a year.

Issued by Ministry of Labour andEmployment, dated 4th October, 2012

GOVERNMENTNotifications



Published in the Gazette of India (extraordinary) Part-II,section 3, sub-section (i), vide G.S.R.744(E) & G.S.R.745(E), dated5th October, 2012.

G.S.R. 745(E).- In exercise of the powers conferred bysection 6A, read with sub-section (1) of section 7 of theEmployees' Provident Funds and Miscellaneous Provisions Act,1952 (19 of 1952), the Central Government hereby makes thefollowing Scheme further to amend the Employees' PensionScheme, 1995, namely:-

1. (1) This Scheme may be called the Employees' Pension(Amendment) Scheme, 2012.

(2) It shall come into force on the date of its publication in theOfficial Gazette.

2. In the Employees' Pension Scheme, 1995 (hereinafterreferred to as the principal Scheme), under paragraph 43Arelating to special provisions in respect of InternationalWorkers,-

(a) in paragraph 2 of the principal Scheme, as modified bysub-para (2) of aforesaid paragraph 43A, clause (xv) shall beomitted;

(b) after sub-para(4) of aforesaid paragraph 43A, thefollowing sub-para shall be inserted, namely:-

'(4A) For paragraph 9 of the principal Scheme, the followingparagraph shall be substituted, namely:-

"9. Determination of eligible service in respect ofInternational Workers.- The eligible service shall be determinedas follows :

(i) in the case of the "existing member" or the "new entrant",the "actual service" shall be treated as eligible service.

(ii) in the case of the member covered by a social securityagreement, the period of coverage under relevant social securityprogramme in another country shall be added to actual serviceand the aggregate thereof shall be treated as eligible service asmay be provided in the social security agreement." ';

(c) in paragraph 10 of the principal Scheme, as modified bysub-para(5) of the aforesaid paragraph 43A, sub-paragraph(1)shall be omitted.

[F.No.S-35025/09/2011-SS-II]

RAVI MATHUR, Addl. Secy.

Employees' Provident Funds(Fourth Amendment) Scheme,

2012MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 5th October, 2012

Published in the Gazette of India (extraordinary) Part-II, section3, sub-section (i), vide G.S.R.744(E), dated 5th October, 2012.

G.S.R. 744(E).- In exercise of the powers conferred by section 5,read with sub-section (1) of section 7 of the Employees' ProvidentFunds and Miscellaneous Provisions Act, 1952 (19 of 1952), theCentral Government hereby makes the following Scheme further toamend the Employees' Provident Funds Scheme, 1952, namely:-

1. (1) This Scheme may be called the Employees' Provident Funds(Fourth Amendment) Scheme, 2012.

(2) It shall come into force on the date of its publication in theOfficial Gazette.

2. In the Employees' Provident Funds Scheme, 1952 (hereinafterreferred to as the principal Scheme), under paragraph 83 relating tospecial provisions in respect of International Workers.-

(a) in paragraph 69 of the principal Scheme, as modified by para6 of aforesaid paragraph 83, for sub-paragraph (4), the followingsub-paragraph shall be substituted, namely:-

"(4) In respect of a member covered under social securityagreement entered into between Government of India and anyother country, on ceasing to be an employee in an establishmentcovered under the Act.";

(b) in paragraph 72 of the principal Scheme, as modified by para7 of aforesaid paragraph 83, for sub-paragraph (2), the followingsub-paragraph shall be substituted, namely:-

"(2) The due amount in respect of the member shall be payable inthe payees bank account directly or through the employer".

[F.No.S-35025/09/2011-SS-II]

RAVI MATHUR, Addl. Secy.

The Employees' ProvidentFund Organisation

Bhavishya Nidhi Bhawan, 14-Bhikaji Cama Place,New Delhi-110 066

No WSU/17(2)/2000/7637 June 15, 2012

To

All Regional P.F. Commissioners

In-charge of the ROs/SROs.

Subject : Payment of Provident Fund accumulationthrough Account Payee Cheque- Instructions regarding.

Sir,

May kindly refer to the above subject. As preprevailing instructions, Provident Fundaccumulations/withdrawal benefits are being creditedonly in the single bank account of the member.

In order to rationalize and simplify the process ofsettlement and also to curb the return/rejection ratio ofthe received claims, it is decided that henceforth amountof Provident Fund accumulations/Withdrawal benefitmay also be credited in the joint bank account of themember, if member opts for the same. However, this is toclarify that the joint bank account shall be acceptable forthe purpose only in case when the bank account ismaintained with his/her spouse.

In view of above, it is directed that no claim should bereturned/rejected due to the reason that member haspreferred to claim his/her Provident Fundaccumulations/withdrawal benefit in his/her jointsaving bank account maintained with his/her spouse.

Yours faithfully,

(Rajesh Bansal)

Financial Advisor & Accounts Officer

Employees' Pension (Amendment) Scheme, 2012MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION

New Delhi, the 5th October, 2012



Gujarat Minimum Wages for 01/10/12 to 31/03/2013





Minimum Wages in Delhiw.e.f. October 1, 2012 to March 31, 2013


UnSkilled Semi-Skilled Skilled Non Matriculate Matriculate Graduate

1. All 27 Per Per Per Per Per Per Per Per Per Per Per PerScheduled Day Month Day Month Day Month Day Month Day Month Day Month

Employments 279 7254 308 8008 339 8814 308 8008 339 8814 369 9594

Q. In ESI Act, three words -Occupier, owner andprincipal employer have been used at many places.Factories Act also used the word "Occupier" andmanager". What is the concept of these words andhow the persons become responsible underdifferent conditions. Can you pl. explain that?

Ans. ESI Act has provided definitions of occupierand principal employer in sec.2 (15) and 2(17). Theexpression "occupier" used in 2(17) has to be read fromSec.2 (15) Of the ESI Act.

M.P. HC in the case of Employees State InsuranceCorp. vs. Kailash Chandra 1989 Lab. I C 760 hasdiscussed this point at length and held that Occupiershall have the meaning assigned to it under FactoriesAct, 1948. Sec.2 (n) of the Factories Act, define 'occupier'as a person who has got an ultimate control over theaffairs of the factory. The principal employer in S.2 (17)of the ESI Act, in a factory refers to owner or occupierof the factory and includes the Managing Director.Agent of such owner or occupier and where a personhas been named as Manager of the factory under theFactories Act, the person so named, though thedefinition is an inclusive definition, with an intentionto cover all types of contingencies but if we see thedefinition of occupier in S.2 (n) of the Factories Act,1948, and penal Sec. 100 of the said Act, whichabundantly makes it clear that a company can also bean occupier of the factory. The definition of theoccupier in S.2 (n) of the factories Act, is consideredalong with the provisions of S.100 of factories Act,. It isobvious that the legislature clearly contemplated thatperson referred to in the definition of 'occupier' cannotonly be a natural person; it can also be a company or alegal entity. So the occupier can be anyone; owner,individual, whether Firm or Company or an Agent orEmployee of the owner. It is clear from the above thatwhere the owner or occupier of a Factory is Company,the Directors of a Company cannot automatically becalled as 'occupiers' merely by virtue of their beingDirectors unless any one of them is notified so underthe provisions of the Factories Act."

For making a Director or Managing Directorpersonally responsible, and liable for statutorycontributions, we have to look to the scheme andProvisions of the ESI Act and Regulations also. Section39 is really a charging provision, which merely refers tothe two types of contributions (which) shall be paid toCorporation as specified in the First Schedule of theAct. It does not specify who shall pay thesecontributions. S.40 specifies this. At the first instance,the liability is fastened on the 'principal employer'under S.40 sub- clause (1) of the Act, that the principalemployer shall pay the contributions in respect of

every employee whether directly employed by him orthrough an immediate employer. Section 40 also doesnot contemplate three employers-the owner or occupier,and the immediate employer. It relates to the employerand to the immediate employer under S.40 of the Act.'Principal employer' under S.40(1) of the ESI Act, refersto owner or occupier of the Factory depending on thefacts of each case but the words owner or occupiercannot be read (as) owner and occupier and are to beread distinctively, otherwise it will create uncertaintyin fastening of the obligations to deduct and pay thecontributions. When the owner is a Limited Company,it is the Company, who as employer is liable to pay ordeposit the contributions and not the Directors. Theposition will be entirely different if an employer isnominated as an occupier.

Q. We have allotted cars to our managers. Inrespect of drivers we are little confused as to Howwe should engage them. Should such drivers beengaged through third party or company ormanagers themselves .What will be the best course?

Ans. It all depends on your company policy. You canopt for any option. In case such drivers are employed bythe company, you have to bear all consequences. In casesuch drivers are engaged through third party, you needto enter into an agreement with the third party for suchservices. Rights and obligations should be well definedin the agreement. In case such drivers are engaged bymanagers themselves, it should be a part of theiremployment conditions and the expenses incurred ondrivers by managers should be paid to them bymanagers directly and not by Co. S. C. in the case ofBank of Boroda vs. Ghemarbhai Harjibhai 2005(105)FLR383 has also held that where the bank did not havethe policy in specific to have drivers and cars wereallotted to managers, drivers signature were obtainedin a bank register and bank paid their salary throughvouchers, drivers were held employees of the bank andnot of car owners /managers.

Q. We have different categories of workers. MyQuestion is whether we can have different set ofleaves for different category of workers.Management thinks that trainees and probationersshould be given less earn leaves than permanentworkmen. What is your advice on this point?

Ans. Factories Act has the definition of worker inSec. 2(l). This definition does not make any differenceamong workers .Sec 79 relates to leave with wages. Italso covers every worker .Even the persons engagedthrough contractors are also eligible for the sameearned leaves as permanent workmen employed by thecompany get. S.C. also in the case of Rajbhadur DeewanBadri das vs. Industrial tribunal, Punjab 1962 II LLJ

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

Anil Kaushik, Management Expert -HR & IRLabour Problems & Solutions


366: 1962 (5)FLR 354 held that the existence of two set ofrules for earned leave for person having same conditionof service may lead to discrimination, dissatisfactionand frustration amongst the new employees hence thecompany was directed to provide the same uniformleaves rules for all their employees. There is anexception to the apprentices. The apprentices engagedunder Apprentice Act will get the leaves as definedunder Apprentices Act. It is different from FactoriesAct.

Q. Is welfare officer appointed under FactoriesAct a workmen under UP I.D Act?

Ans. NO! Welfare officer is only concerned withmanagerial and administrative work in a factory andconsidering duties assigned to him, he is not workmanas defined under section 2 of Uttar Pradesh I.D. Act,1947. Allahabad high Court in the case of HazrilalSrivastava V.s Tulsipur Sugar Co.. Ltd. 1967 II LLJ 355also held that a welfare officer is only concerned withthe managerial or administrative work in a factorythough he himself does not possess any powers whichhe can exercise as such in those matters. All he does isto assist the management and in exercise of their rightsvis-a-via each other, and thus he functions as one of theparticipants in the administrative and managerialmachinery of a factory.

Considering the duties assigned to a welfare officerand in view of the meaning assigned to the word"workman"in CI.(2) of S.2 of the Uttar PradeshIndustrial Disputes Act,1947, a welfare officer is not aworkman.

Q. We have two factories at different locations.Our corporate office is at third location. One factoryis in Noida whereas another one is in Haryana.Corporate office is also in Noida but at differentplace. Due to increased Labour unrest in Haryanawe want to close down the operations in Haryanafactory and multiply the activities in Noida. Ouremployees' strength in Haryana factory is less than100 excluding contract labour and staff. If weinclude the strength of these two categories, then itbecomes more than 100. Do we need to getpermission under sec. 25-O of the ID Act? Ourbusiness Activity is closely integrated andemployees are transferable from one place toanother. Whether our three locations will be deemedas one industrial establishment or threeindependent establishments?

Ans. There are Judgments where it has been heldthat contractor worker will not be included for thepurpose of counting the numbers of one hundred asrequired under sec. 25 K of the ID Act. Bombay HighCourt in the case of Dyes and Chemical workers unionVs. Bombay oil industries Ltd. 2001LLR 602 held thatonly person answering definition of workman will beincluded for computing the number of employeesunder Sec. 25 K of the ID Act. But as you have indicated,there are probabilities that all your threeestablishments may be declared as one depending uponthe nature of integration of activities . RecentlyMadhya Pradesh High Court in the case of NHK SpringIndia Ltd. vs. NHK Shramik Sangh Gwalior 2011 (130)

FLR 768 has held that when an entrepreneur , whetheran individual proprietor or a partnership firm or anincorporated Company is engaged in several activitieseach of which comes within the definition of industryin the Industrial Disputes Act, the question often ariseswhether these several activities together from oneindustrial establishment or are distinct separateindustrial units. There are several decisions of theSupreme Court which lay down the test to determinewhether one establishment is part of another. Thesetests are only guidelines and cannot be applied asuniversal thumb rule. Each case has to be tested in itsfactual back ground before arriving at a finding.

In this case Company closed down the MalanpurFactory without permission from the Govt. on theground that numbers were less than 100 excludingcontractor workers and staff. The company had threelocations -Two in Manesar and one in Malanpur. HighCourt held that Malanpur closure was illegal beingdone without permission under Sec. 25-O of the ID Act.Because, there was unity of ownership among all thethree establishments.Workmen were transferable fromone unit to another. Production, quality control,marketing and sales of the end product were controlledby the Head Office. Payments for supply of stabilizerbars were being received at Manesar. There was onebalance sheet showing the performance of both thefactories. Tribunal also found that before closure of theplant at Malanpur, a new plant for manufacturing wasset up at Manesar and thirty five Employees (workmen)from Malanpur were transferred to Manesar Plant. Thetribunal rightly held ownership, supervision, control,transferability of workmen from one unit to another,dependence of the factory at Malanpur for finishingand testing of stabilizer bars at Manesar before supplythe customers, Payments of bill at Manesar, Provisionof funds and units constituted all the three asone'industrial establishment' rather than thecircumstances finding favour with the company.

I advise you to be cautious while taking any decisionregarding closure without permission. Your facts offunctional integrality between noida factory, Haryanafactory and H.O. will decide the situation.

Q. In our organisation, Certified StandingOrders of the establishment refer thesuperannuation age as 58 years of all employees.But some of our employees claim that as perRajasthan Govt. rules retirement age is 60 years, sowhat is the correct legal position in this regard?

Ans. Since your establishment is covered underIndustrial Employment (Standing Orders) Act, 1946 andyou have got your Standing Orders certified under theAct for your employees of the establishment, whichcontain the retirement age as 58, it will apply to allemployees and not the rules of the RajasthanGovernment because those rules are applicable on theemployees of the Governtment and not on theemployees of the Private Organisation like yours. A.P.H.C. in the case of Hyderabad Allwyn Ltd. 1990 LLR 100has also held that certified Standing Orders have thebinding force and employees’ service conditions aregoverned by such Standing Orders.

Readers are invited to ask for Solutions of their Labour Problems through e-mail - [email protected]

Anil Kaushik, Management Expert -HR & IR

BM

Labour Problems & Solutions


AwardHigh Court will not interfere in an Award

granting reinstatement with 75% back-wagesto a peon whose termination was held to beillegal.

Indian Council of Social Welfare, Kutch vs.Rajdan Magdan Charan and Another. 2012 (134)

FLR 629 (Guj. H.C.)

CompensationReinstatement with back wages not proper

for daily wager. Compensation of Rs. 40,000/-would be appropriate.

Compensation of Rs. 40,000, in lieu ofreinstatement, would be appropriate relief to adaily wager who was removed from service andthe Labour Court while granting reinstatementmisdirected itself as if there was violation ofsections 25F, G & H of the Industrial Disputes Act.Hence the High Court converted the reinstatementinto monetary compensation.

Delhi Transport Corporation vs. Chander Mohan.2012 LLR 1010 (Delhi H.C.)

Compensation of Rs. 30,000/- would beproper instead of reinstatement where theworker even not worked for 240 days.

Reinstatement with back-wages-that too of aworkman who has not even worked for 240 daysbefore his termination not properly awardedhence the High Court converted the reinstatementwith back-wages with compensation of Rs. 30,000.

Management of Sri Guru Tegh Bahadur Hospitalvs. Narendra Kumar. 2012 (134) FLR 924 (Delhi

H.C.)

Contract Labour ActWorkers engaged through contractor to

run canteen in the factory, requiredstatutorily under Factories Act cannot bedeclared workmen of principal employerunless such engagement is prohibited orcontractor is proved to be sham.

In the absence of employer-employeerelationship on the basis of documentaryevidence, claim of the workmen for theirabsorption by the principal employer is notsustainable. Engagement of contract labour is notprohibited unless the contract is proved to be

sham and camouflage. An industrial dispute is notmaintainable in the absence of impleading thecontractor as a party.

Workmen, represented by the President, MadrasFertilizers General Workers' Union, Chennai vs.Management, Madras Fertilizers Ltd. and Anr.

2012 LLR 1077 (Mad. H.C.)

Court PowersLarger bench of the Supreme Court has to

decide about setting aside of award by theLabour Court after period of publication expires.

Whether the Labour Court becomes functusofficio after 30 days of publication of an awardunder section 17 of the Industrial Disputes Act ornot for setting order of ex-parte Award is to bedecided by the larger bench.

Ram Shiroman Mishra vs. Vishwanath Pandey.2012 LLR 1009 (S.C.)

Labour Courts/Industrial Tribunals havepowers to re-appreciate the evidence andmodify the punishment in case of dismissalonly and not other kinds of punishment.

Industrial Tribunals/ Labour Courts havepowers under section 11A of the IndustrialDisputes Act to reappreciate the evidencerecorded by the Enquiry Officer, correct thequantum of punishment in the cases where thepunishment of dismissal and removal has beenimposed by the Management but not in cases ofother punishments. Labour Court can quash theenquiry held if found deficient for want of goodfaith, victimisation or unfair labour practice bythe Management but cannot correct the decisionmaking process of the Enquiry Officer.

Allahabad Bank vs. Presiding Officer, CentralGovernment Industrial Tribunal-cum-LabourCourt, Kanpur & Ors. 2012 LLR 1066 (All. H.C.)

Labour Courts have ample powers toexamine and appreciate findings of enquiryofficer and evidence. It can alter thepunishment imposed by employer in contextof principle of proportionality.

Dismissal as a punishment for abusing thesuperior, as awarded by the employer and upheldby the Labour Court, needs to be modified sincethere was provocation by the officer to thedelinquent workman. Under section 11A of theIndustrial Disputes Act, the Labour Court haswide powers to modify the punishment ofdismissal and discharge and can be substituted by

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lesser punishment as imposed by the employer.

Joseph Solomon vs. Presiding Officer, LabourCourt, U.P., Dehradun, and Another. 2012 LLR 1073

(All. H.C.)

All the issues are to be decided togetherand not in piecemeal as per judgement ofSupreme court in D.P. Maheshwari v. DelhiAdministration & Others, (1983) 4 SCC 293.

R. Muthuswamy vs. The Management of M/s.Bhor Industries Ltd. 2012 LLR 1115 (Delhi H.C.)

The jurisdiction of the Labour suit undersec. 33-C(2) of the I.D. Act is that of executingcourt and it can grant relief only of claimsadmitted by way of agreement or settlementor under an award of the Industrial Tribunal.

The respondent filed an application under sec.33-C(2) of the 1.D. Act praying for computation ofthe amount towards leave encashment for a periodof 240 days and for direction to the management topay the amount of encashment together withinterest thereon. According to the respondent shewas serving as Attender in the petitioner collegeand after working continuously for a period of 12years she opted for voluntary retirement. At thetime of leaving the job, she was drawing salary ofRs. 4380/- per month inclusive of D.A. It wascontended by her that her accumulated leave forthe maximum period of 240 days was at her creditat the time of leaving the job and therefore shewas entitled to get encashment of Rs. 35,040/-. Thepetitioner management filed a statement ofobjection and denied her claim contending thatthe respondent was not entitled to leaveencashment as there was no earned leave to hercredit. The Labour Court however allowed therespondent's application and directed thepetitioner management to pay the abovementioned amount of encashment with 12%interest per annum. Feeling aggrieved thereby thepetitioner college filed a writ petition in the HighCourt contending that there are no leave Rulesframed pertaining to the petitioner college andthat the college has therefore adopted KarnatakaEducational Institution (Certain Terms andConditions of Service of Employees in Private,Unaided, Primary, Secondary and Pre-University)Rules 2004. It was further contended that the Rulesdo not provide for encashment of leave. Therespondent on the other hand submitted thatencashment is part of salary and it is nothing butsalary which relates to unavailed leave to thecredit of the employee. The High Court referred toRule 20 of the Rules 2005 and observed that it doesnot specify or provide for encashment of earnedleave. Therefore in the absence of any Ruleproviding for encashment of earned leave, theapplicant would not be entitled to suchencashment. Hence the writ petition was allowed.

Management of Sri Ramakrishna Pre-UniversityCollege vs. Pushpa Anchan (Mrs.). CLR II 2012 P.

130 (Kar. H.C.)

Domestic EnquiryStrict rules of Evidence Act are not

required to be adhered to. Even hearsayevidence can be looked into.

Statement of passengers recorded at therelevant time, duly singed by the workman,testified before the Industrial Tribunal by themember of the Enforcement Team and admissionof signature over the same by the workman, issufficient to establish the guilt of workman.

Strict rules of Indian Evidence Act are notrequired to be adhered in domestic enquiry andeven hearsay evidence can be looked into.

Principles of natural justice are not violated inthe absence of non-compliance of strict rules ofEvidence Act. Rejection of application filed by theManagement under section 33(2)(b) of theIndustrial Disputes Act, 1947 by the IndustrialTribunal/Labour Court would result intoreinstatement of the workman with back-wagesand all consequential benefits. Non-examinationof passengers in the domestic enquiry is noground to reject the application under section33(2)(b) of the Act by the Industrial Tribunal whenthe workman had admitted his signatures on thestatements of passengers.

D.T.C. vs. Jagdish Prasad. 2012 LLR 1016 (DelhiH.C.)

Recording the statement of employee firstand than of employer witnesses would makethe enquiry invalid as it constitutes a seriousillegality and violate principles of naturaljustice.

Punishment of dismissal of absence of fewdays who served for 10 years punctually andhonestly would be shockinglydisproportionate.

Union of India and others vs. Prakash. 2012 (135)FLR 106 (Bom. H.C.)

It is well settled that strict Rules ofevidence do not apply to domestic inquiries.

The appellant workman was served with acharge sheet wherein it was alleged that he wascarrying 42 passengers in the bus of therespondent Corporation and that he collected farefrom the passengers but did not issue ticket to anyof them. On surprise check, the bus was stoppedby a vigilance party of the respondentCorporation but the appellant alighted from thebus and fled into a jungle. In due course adepartmental inquiry was initiated against himfor his misconduct and thereafter he wasdismissed from service for his proved misconduct.

The respondent Corporation then filed anapplication under S.33(2)(b) of the I D. Act to theIndustrial Tribunal for approval of the dismissalorder. But the Industrial Tribunal refused to grantapproval and dismissed that application. Beingaggrieved by the order of the Industrial Tribunal,the respondent Corporation filed a writ petition inthe High Court and the Single Judge allowed thatpetition and set aside the order of the IndustrialTribunal. Feeling aggrieved thereby the appellanttherefore approached the Division Bench by filinga Special Appeal contending that the respondentCorporation had failed to produce any legalevidence to prove the alleged charge and that theSingle Judge did not appreciate the same whileexercising jurisdiction under sec. 227 of theConstitution of India. The Division Benchhowever pointed out that the Single Judge had



analyzed the matter at length and rightly observedthat it was a well settled law that strict Rules ofevidence do not apply in the case of domesticinquiry. The Division Bench further pointed outthat the present case pertains to an approvalapplication where tribunal's jurisdiction tointerfere in the finding of fact is very limited. It ispermissible only when no material exists so as toarrive at the conclusion about misconduct of theemployee. The High Court further observed thatin the instant case the Single Judge rightly heldthat the tribunal was not justified in disregardingthe legal evidence of one witness by name M.L.Khatri which unequivocally showed the allegedmisconduct of the respondent. Hence the appealwas dismissed.

Brij Behari Sharma vs. Chief Manager, RSRTC.CLR II 2012 P.721 (Raj. H.C.)

Employees’Compensation Act

When conductor got injured, havingexpired licence, not entitled to get anycompensation from insurance company.

Insurance Company cannot be fastened to paycompensation to the bus conductor as injured in abus merely on the plea that the conductor's licencehaving been expired was not renewed on the day ofoccurrence of accident but the matter is to beposted before appropriate Bench.

Divisional Manager, National Insurance Co. Ltd.vs. P. Krishna Reddy Bin Channa Reddy and

Another. 2012 LLR 1054 (Kar. H.C.)

Employee died due to heavy consumptionof alcohol not entitled to any compensation.

Deceased employee who voluntarily consumedheavy quantity of ethyl alcohol as a result ofwhich he died due to myocardial heart failure, hisdependents will not be entitled to compensationunder the Employes' Compensation Act since"Nemo ex proprio dolo consequitur actionem whichmeans that a person cannot be permitted to takeadvantage of his own wrongs.

Sankar Kal vs. Sunil Kumar Saha and Another.2012 LLR 1060 (Gauh. H.C.)

Compensation becomes due from the dateof accident.

Under Employees' Compensation Act, thecompensation becomes due from the date ofaccident and not from the order of the adjudicatoror the Commissioner.

In order to make the payment for compensationunder Employees' Compensation Act, an employerhas been given 30 days' cushion hence the interestwould start only after 30 days of the accident.

(Smt.) Bail Kumari and Others vs. Commissioner,Workmen's Compensation-Cum-Assistant Labour

Commissioner and Another. 2012 (134) FLR 654(P&H H.C.)

Unless cause of action accrues, theapplicability of ESI upon a petrol pump willnot be merely on apprehension whereas apetrol pump is already covered by ESI Act.

Shivraj Service Station and Others vs. Employees'State Insurance Corporation. 2012 (134) FLR 662

(Bom. H.C.)

Insurance Company cannot escape theliability of payment of compensation to thedependents of the deceased driver who, whiledriving the vehicle with a police party and asa result of blast died, hence the plea of theinsurer that owner has parted with the samewould not be tenable.

Branch Manager, New India Assurance Co. Ltd,Hazaribagh vs. Mosmat Tripta & Others. 2012

(134) FLR 906 (Jhar. H.C.)

When the claimant of the deceased driveralleged to be dieing in an accident has failedto prove his employment, the CompensationCommissioner has rightly rejected her claim.

Smt. Lata Ramchandra Ubale vs. RamchandraShankar Ubale and Another. 2012 (134) FLR 798

(Bom. H.C.)

Employees’ ProvidentFund

Levy of damages for delay in depositingcontributions by P.F. Authority withoutconsideration of employer’s contention ofloss of documents and declaration of sickunit would be illegal and liable to be quashed.

Levying huge damages in proceedings undersections 7A and 7-I of the Employees' ProvidentFund Act, without proper perspectiveconsideration to the contentions of the employerkeeping in view the loss of documents, mis-placement of documents and/or non-availabilityof documents/record and declaration of sick unitetc. without giving reasons thereto is notsustainable.

Wasp Pumps Pvt. Ltd. vs. Asstt. Provident FundCommissioner & Anr. 2012 LLR 1031 (Bom. H.C.)

Criminal proceedings against employer areliable to be quashed in the absence of serviceof show cause notice.

Criminal proceedings under the provisions ofEmployees' Provident Funds and MiscellaneousProvisions Act, 1952 are liable to be quashed incase the show-cause notice as required under thelaw, is not served upon the employer beforeinitiating the same.

State through Sri Anil Kumar Sinha, EnforcementOfficer, Employees' Provident Fund, Patna vs.

Maheshwar Prasad Singh, Proprietor of M/s. RupBani & Anr.

2012 LLR 1039 (Pat. H.C.)

EPF Authority’s order of levying damageswithout following proper procedure is liableto be set aside.

An order passed by the Provident FundAuthority under section 7A(2) of the Act andimposition of damages under section 14B of theAct, without following the prescribed procedureunder the Act, is not sustainable. Even in theabsence of any material on record to establishthat an enquiry has been conducted, as



contemplated under section 7A(2) of the Act, thereliance upon the same by the EPF Authority isbad in law.

Assistant Provident Fund Commissioner vs. M/s.Kanya Kubj Lime Works & Anr. 2012 LLR 1096

(M.P. H.C.)

Clubbing of two or more establishmentsfor coverage under Employees' ProvidentFund Act without establishing the financial,managerial and functional integrality is notsustainable.

In the absence of any material on record toestablish that an enquiry, as contemplated undersection 7A(2) of the Act, has been effected tosubstantiate the findings recorded by the EPFAuthority, interference with the order passed bythe EPF Appellate Tribunal, in writ jurisdiction,by the High Court, is not justified.

Regional Provident Fund Commissioner vs. M/s.Miraj Minerals. 2012 LLR 1097 (M.P. H.C.)

In the absence of notifying the addresschange of business by employer to the EPFAuthorities, notices sent at old address wouldbe valid.

An employer is duty-bound to notify the changeof address of premises of his factory to the EPFAuthorities, otherwise he would stand liable forthe consequences. As per Employees' ProvidentFunds and Miscellaneous Provisions Act, a periodof 60 days is provided for filing of appeal and theTribunal can extend it for further 60 days forsufficient reasons.

C.B. Sharma vs. The Employees' Provident FundAppellate Tribunals and Others. 2012 LLR 1098

(P&H H.C.)

EPF Authorities can waive off the damagesfor delayed deposit of PF contributionsprovided grounds presented by the employerare justified.

If the power to levy damages is discretionaryas provided under section 14B of he Act, then it isopen to the EPF Authority to waive the damagesby forming an opinion applying its mind on thebasis of grounds raised by the employer. When thegrounds raised by the employer in itsrepresentation for delayed deposit ofcontributions have not been considered by theAuthority, the assessment of damages, by way ofpenalty, is not sustainable. When a law authorisesan authority to act in a certain manner, he is to dothe same in that manner or not at all and othermode of compliance is forbidden. Paragraph 32Aof the Scheme of the Act is a subordinatelegislation and it cannot supplant the provisionsof legislation made by the legislature as it onlysupplements the same. When the interpretation ofprovision of section 14B or any other section ofthe Act is involved, the judicial review underArticle 226 of the Constitution is permissibledespite availability of another Forum providingremedy to the dispute. Treating the words ofjudgment as they are words in legislativeenactment and disposal of the cases placingreliance on them without indicating itsapplicability is improper.

Arambagh Hatcheries Ltd. & Anr. vs. Employees'Provident Fund Organistion & Ors. 2012 LLR 1086

(Cal. H.C.)

Challenging order of the RegionalProvident Fund Commissioner levyingdamages for the period not only when thepetitioner has taken over the establishmentbut for prior period and also asking for therefund of the money when the appropriateremedy for filing of an appeal before the EPFAppellate Tribunal was not availed. Hencepetition liable to be dismissed.

M/s. Bajaj Brick Kiln Industries vs. Reg. P.F.Commissioner & Ors. 2012 LLR 1105 (P&H H.C.)

APFC is not empowered to waive or reduceany part of levied damages and interestpayable under section 7-Q.

Vidula Chemicals & Manufacturing IndustriesLtd. and another vs. Employees' Provident Funds

Commissioner and others.2012 (135) FLR 31 (Cal. H.C.)

Equal Pay-Equal WorkThe principle of equal pay for equal work

is not applicable in abstract. When jobsperformed by permanent and muster rollemployees defer in respect of skill andresponsibility, principle does not apply.

When the nature of work to be performed bythe permanent employees and that of muster rollemployees is different both in respect of skill andresponsibilities, the demand of equal pay to thatof permanent employees applying the principle of'equal pay for equal work', is not sustainable, assuch, a principle is not applicable in abstract.

New Delhi Municipal Corporation vs. NDMCGeneral Majdoor Union & Anr. 2012 LLR 1020

(Delhi H.C.)

E.S.I.When employer fails to bifurcate the

expenses of loading and unloading paid tocontractors, whole amount will attract E.S.I.

Repair and maintenance expenses forfurniture and packing charges will attractE.S.I.

In the absence of bifurcation of payment madefor loading and unloading to the contractor, thewhole amount will be taken as wages for thepurpose of ESI contribution. In view of theCircular by the ESIC, the repair and maintenanceof factory including furniture and packingcharges, etc., will be within the ambit ofexpenditure to attract the ESI contribution.

Goa Bottling Co. Pvt. Ltd. vs. Dy. RegionalDirector, ESIC, Goa and Others. 2012 LLR 1024

(Bom. H.C.)

ESIC order of demand of contribution isliable to be quashed when determinedcompletly behind the back of employer.

High Court will not interfere with the order ofthe Employees' Insurance Court quashing the



demand of the ESIC by covering an establishmentas if there were 20 or more than 20 persons workingwhich has been dealt and clarified. The demand ofcontribution raised upon the respondent by theESIC being perverse and determined completelybehind the back of the employer without givingany opportunity, has been rightly quashed by theEmployees' Insurance Court. Plea of the ESIC thatthe employer has challenged the order of RegionalDirector beyond three years has been rightly dealtby the Employees' Insurance Court and the HighCourt will not interfere.

Regional Director, Employees' State InsuranceCorporation and Another vs. Kiran Cinema. 2012

LLR 1049 (Pat. H.C.)

Employer is under legal obligation todeposit 50% of the amount including penaltyand damages, so demanded by ESIC beforechallenging the order before High Court.

Before taking cognizance of the petition by theemployer challenging determination of ESI dues,it is imperative on the part of the employer todeposit 50% of the amount includingcontributions, penalty and/or damages asstipulated by section 85B of the ESI Act.

Employees' State Insurance Corporation vs. HotelPresident. 2012 LLR 1050 (M.P. H.C.)

Employees' Insurance Court is notempowered to direct the ESI Corporation torefund the money, already recovered by wayof attachment in a recovery proceeding.

Employees' State Insurance Corporation vs.Peerless General Finance & Investment Co. Ltd.

2012 (134) FLR 597 (Cal. H.C.)

Merely because the petitioner is thepurchaser of property of Jawahar Mills Ltd.even in auction, there is no escape from theliability of payment of dues towards ESI andprovident fund contributions.

V.S. Murugan vs. Indian Overseas Bank andOthers. 2012 (134) FLR 855 (Mad. H.C.)

When there is delay in deposit of ESIcontributions, the Authority under the ESI isnot empowered to waive the interest.

Regional Director, Employees' State InsuranceCorporation, Panaji, Goa vs. Shaikh Mustafa

Kadar. 2012 (134) FLR 922 (Bom. H.C.)

GratuityGratuity cannot be forfeited on account of

offence of kidnapping a girl committed byemployee since this act does not have anynexus with the employment.

The right to receive gratuity is a statutory rightand gratuity cannot be forfeited due to convictionby criminal court for offence i.e., kidnapping a girlsince such act does not have nexus with theemployment.The language employed in a statuteis the determinative factor of legislative intentsince a statute is an edit of the legislative. Anemployee is acting in the course of employmentonly, when he is doing something in discharge of aduty to his employer directly or indirectly,imposed upon him by his contract of service.

Vithal Rangnath Darekar vs. New IndiaInsurance Company Ltd. through its Gen.

Manager. 2012 LLR 1027 (Bom. H.C.)

Gratuity to a teacher will be payable for 28years and 10 months' service instead of 17years' service as paid since there has been aScheme whereby such teacher would beentitled to half month's salary towardsgratuity.

St. Edward's School, Milsington, Shimla andAnother vs. Indu Kaushal and Others. 2012 LLR

1047 (H.P. H.C.)

In the absence of any order of break inservice due to unauthorised absence,employee will be entitled for the gratuity ofthe whole period.

Absence of an employee even when notauthorised or approved or condoned by theemployer will not be construed as break in servicefor disentitlement of gratuity since such absenceis not expressly based on the relationship ofemployer and employee existed during suchabsence.

P.B.M. Polytex Ltd. vs. Union of India andAnother. 2012 LLR 1093 (Guj. H.C.)

Deduction of amount from gratuitypayable without giving opportunity ofhearing to affected person is invalid.

The petitioner's husband was serving as aConstable and he died on 27.12.2004. The petitionerthereafter submitted pension form claimingdeath-cum-retiral dues of her husband andinitially she was allowed 90% provisional pensionand gratuity. Later on final pension and gratuitywas authorized by the Accountant General.However, thereafter respondent no.5, theSuperintendent of Police asked the TreasuryOfficer to deduct Rs. 99,858/- from the gratuityamount and pay the balance amount to thepetitioner. In compliance of that order theTreasury Officer paid the gratuity to thepetitioner after deducting Rs. 99,858/- from thegratuity amount. The petitioner then made arepresentation to the Inspector General of Policepraying that the deducted amount of Rs. 99,858/-be paid to her. Later on she learnt that herhusband was shown absent from 11.3.2003 to27.12.2004 for which earned leave of 210 days, halfearned leave of 68 days and extra ordinary leave of79 days were sanctioned. The petitioner thereforeapproached the High Court for relief contendingthat during the above mentioned period herhusband was already functioning. It wascontended on behalf of the respondent State thatthe recovery order was passed after noticing thefact that despite the petitioner's husband wasabsent he had received salary.

The High Court observed that the recoveryorder was passed after two and half years from thedeath of the petitioner's husband and it was not indispute that before passing the said order, noopportunity of hearing was given to the petitioner.The High Court referred to section 13 of thePayment of Gratuity Act and pointed out thatgratuity payable under the Act is not liable toattachment in execution of any decree or order of



any civil, revenue or criminal court. It is evidentthat right to receive payment of gratuity amountis a protected right and it cannot be taken away bythe employer. Hence the writ petition was allowedwith a direction to the respondent State to refundthe gratuity amount deducted.

Ms. Prabha Shukla vs. State of Bihar & Ors. LLJ(II) 2012 P.87 (Pat. H.C.)

Industrial disputes ActPaying ex-gratia to all workers as incentive

unconditionaly since long becomes conditionof service. Non payment of ex-gratia (bonus)to workers went on strike while others werepaid would be illegal. Such benefit cannot bewithdrawn in case of strikers.

Extending benefit of ex-gratia towardspayment of bonus to certain workmen anddenying to others who indulged in strike, wasillegal as it was being paid since long and it hadbecome a condition of service. Condition ofservice cannot be changed without followingprocedure specified in section 9-A of theIndustrial Disputes Act, 1947. Non-payment ofbonus as ex-gratia only to those workmen whowent on strike is an act of victimisation anddiscrimination on the part of Management as thestrike is a weapon in the hands of workmen topress for their legitimate demands.

Bharat Fritz Werner Karmika Sangha vs.Management of Bharat Fritz Werner Ltd. 2012

LLR 1052 (Kar. H.C.)

Notional increments will not be taken formaking payment to a reinstated employeewhen there is no such mention in the Awardas given by the Labour Court.

Central Bank of India vs. Presiding Officer,Central Government Industrial Tribunal-cum-Labour Court, Lucknow and Another. 2012 LLR

1071 (All. H.C.)

Sub-sections 9 and 10 of section 11 cannotbe held to be in derogation or suppression ofany other provision of the I.D. Act.

Exhibition or implementation of Award by theCivil Court in view of the amended provision ofthe Industrial Disputes Act by inserting sub-sections 9 and 10 in section 11 will not beconstrued that only the civil court can implementthe Award since such provisions do not suggestthat there is derogation or suppression of theprovisions made under sections 15, 17, 17A, 29 and33-C of the Industrial Disputes Act.

Punjab General Mazdoor Federation vs. Union ofIndia and Another. 2012 LLR 1102 (P&H H.C.)

Interference of tribunal in finding factsunder section 33(2)(b) of I.D. Act is verylimited.

Learned Single Judge has rightly set aside theorder of Industrial Tribunal in declining to rantapproval for dismissal of a workman (busconductor) who was dismissed from service afterholding of enquiry pertaining to a seriousmisconduct i.e., disappearing from the sport when

a surprise checking was made by a team hence theDivision Bench will not interfere. Strict rules ofevidence are not applicable in the domesticenquiry and as such, while considering anapplication for approval of dismissal of aworkman under section 33(2)(b) of the IndustrialDisputes Act, the jurisdiction of interference bythe Industrial Tribunal is very limited.

Brij Behari Sharma vs. Chief Manager,Rajasthan S.R.T. Corporation, Kota and Another.

2012 (134) FLR 656 (Raj. H.C.)

The mere fact that a person is dischargingduties of a particular nature would notentitle him to claim a right to the post and itsbenefits unless he is appointed on the post inaccordance with the procedure prescribed bylaw.

The petitioner was appointed as a workman inrespondent Corporation. However it appears thathe was asked to discharge the duties of astenographer and accordingly the petitionerappears to have worked as a stenographer. Lateron the petitioner claimed designation, pay scaleand other benefits of the post of stenographerthough he was substantively appointed as a fitter.Since the respondent Corporation denied hisclaim, the petitioner raised an industrial disputewhich was referred to the Labour Court foradjudication. But the Labour Court also decidedthe reference against the worker. Feelingaggrieved thereby the petitioner challenged theaward by filing a writ petition in the High Courtcontending that the respondent Corporation hastaken work from the petitioner as stenographerfor sufficiently long time and thereby he wasentitled for appointment on the post ofstenographer. The High Court however rejectedthe petitioner's claim and pointed out that the veryfact that the petitioner claimed promotion to thepost of stenographer itself indicates that he wasnever appointed as such on that post. The HighCourt placed reliance upon the decision of theApex Court in U.P. State Sugar & Cane v. ChiniMilli Mazdoor Sangh 2009 LIC 905 wherein theworkmen were employed as seasonal workmenbut they claimed to have worked throughout theyear like permanent workmen and hence theyclaimed benefit of permanent workmen. TheSupreme Court however rejected the claim ofthose workmen. The High Court observed that it isnot the case of the petitioner that he wasappointed on the post of stenographer by thecompetent authority after following procedureprescribed by law. Therefore it was held that thepetitioner was not entitled to the relief claimed byhim. Hence the petition was dismissed.

Kharanan vs. Presiding Officer, Labour Court.CLR II 2012 P. 573 (All. H.C.)

Unless the claim entitlement to overtimewages is determined by some competentauthority, it cannot be directed to be paidunder the I.D. Act.

Respondent no.2 was in the employment of thepetitioner Municipality and he had claimedovertime wages against the petitioner for theperiod from 24.6.1982 to 2.12.1987. The Labour



Court accepted the case of respondent no.2 anddirected the petitioner Municipality to pay Rs.15,917.50Ps. as overtime wages to the respondent. Feelingaggrieved by this direction, the petitionerMunicipality challenged the said order by filing a writpetition in the High Court.

The High Court referred to the Supreme Courtdecision in D. Krishnan v. Special Officer 2008 (118)FLR 1196 (SC) wherein it was held that unless theclaim/entitlement of overtime wages is determined bysome competent authority(prior adjudication) itcannot be directed to be paid under Sec.33-C(2) of theI.D. Act. Hence the writ petition was allowed and theimpugned order was set aside.

Nagar Palika, Mawana vs. Labour Court. FLR (133)2012 P.825 (All. H.C.)

When an approval application is rejected, theemployee is deemed to be in continuous service ofthe establishment and the employer cannot givehim fresh appointment to the said post.

The appellant was in the service of the respondentCorporation. He was served with a charge sheet formisconduct. A departmental inquiry was conductedagainst him in which he was found guilty andsubsequently he was imposed with the penalty ofdismissal from service. Thereafter the respondentCorporation filed an application before the industrialtribunal seeking approval to its decision undersec.32(2)(b) of the I.D. Act. That application wasdecided by the tribunal holding that the chargeslevelled against the petitioner were not proved and theorder of dismissal was passed without any basis.However, instead of reinstating the appellant, therespondent Corporation gave a fresh appointment tohim.

Thereafter the appellant submitted a representationfor treating his services continuous but no order waspassed on his representation. Hence the appellant fileda writ petition in the High Court but the writ petitionwas dismissed. Feeling aggrieved, the appellant filed aspecial appeal before the Division Bench. The DivisionBench observed that once the order on the applicationunder sec.33(2)(b) attained finality and the order ofdismissal was not approved, it was required to becomplied with even at the instance of the employer.Once punishment of dismissal was not approved, itwould be unfair to deny continuity of service to theemployee and order fresh appointment by forfeiting theservice rendered by him earlier. The High Courttherefore allowed the writ appeal entitling theappellant to continuity in service from the date ofdismissal.

Bhagirath Sharma vs. Rajasthan State RoadTransport Corpn. & Ors. CLR II 2012 P. 717 (Raj. H.C.)

Lock-OutIn case of hooliganism and gherao by workers,

lock-out would be justified.

When the workers indulge in hooliganism andgherao, the Management has to declare lock-out hencethe workers, which includes the office staff also, willnot be entitled to the wages and allowances for theperiod of such lock-out.

Workmen of Halmira Tea Estate, Golaghat vs.Management of Halmira Tea Estate, Golaghat and

Another. 2012 LLR 1036 (Gauh. H.C.)

Minimum WagesRight to get minimum wages, is included in the

right to life hence its non-payment would amountto breach of Article 23 of the Constitution ofIndia.

Mohiuddin Khan vs. State of Jharkhand & Anr.2012 (134) FLR 908 (Jhar. H.C.)

Authority empowered under section 20(1) ofAct is competent to hear and decide any claimarising out of payment of less than minimumwages by an employer to his employee with in areaof operation of authority.

Arati Jaiswal vs. State of Jharkhand and others.2012 (135) FLR 45 (Jhar. H.C.)

Three times penalty for paying less thanminimum wages is justified and correct.

Principle laid down by the Supreme Court is aptlyapplicable to the fact situation of the present casehaving regard to the illegality, injustice andmiscarriage of justice done to the concerned workersby the petitioner in not paying the minimum wages tothem for the period in question as mentioned in theorder passed by the Minimum Wages Authority and wehave to exercise our discretionary power to condonethe delay in filing the application for computing theminimum wages and award compensation along withother monetary benefits as the Minimum AgesAuthority has done justice to the workmen afterplacing reliance upon the decisions of the Apex Court.We accordingly condone the delay and supplement tothe order passed by the Minimum Wages Authority torender justice to the workmen as their statutory rightshas been flagrantly violated.

The finding that minimum wages were not paid tothe concerned workmen for the period in question isbased on proper appreciation of legal evidence in theabsence of positive documentary evidence required tobe produced by the petitioner before the MinimumWages Authority. Therefore, the finding of factrecorded by the Authority on the contentious issuecannot be termed as erroneous. Having recording thefinding of fact that minimum wages were not paid bythe petitioner to the concerned workmen for the periodin question awarding the same with compensationthree times of the amount claimed is also justified inview of the fact that under the provision of section 20read with sub-section (3) of the Minimum Wages Act,the Authority has the power to award ten timescompensation. In the instant case, having regard to thefindings of non-payment of minimum wages to theworkmen it is in violation of fundamental rightsguaranteed under Article 21 of the Constitution ofIndia which is the ratio laid down by the SupremeCourt.

The payment of less wages than the minimumwages is a violation of fundamental rights underArticle 21 of the Constitution. In that view of thematter awarding compensation of three times of theminimum wages payable by the petitioner to theworkmen is perfectly legal and valid, and it cannot besaid that the same is on the higher side for the reasonthat the same could have been ten times more than theminimum wages payable to the workmen by thepetitioner-employer awarded by the authority. That hasnot been done in the instant case and only



compensation of three times of the amount claimedhas been awarded which cannot be termed asarbitrary, unreasonable or on the higher side.

General Security & Information Services (P) Ltd. vs.Chief Rolling Stock Engineer, East Coast Railway

Administration, B.B.S.R. and others. 2012 (135) FLR 63(Orissa H.C.)

MisconductAssaulting a superior at work place amounts to

serious misconduct warranting dismissal fromservice. Labour Court order set aside ofreinstatement.

Assaulting a superior officer at the work place is aserious misconduct and if proved in the enquiry,awarding reinstatement even without back-wages tothe workman by the Labour Court, is not justified andliable to be set aside. Discipline at the work-place isvery important and should not be overlooked byshowing sympathy towards the workman who hadassaulted his superior at the work-place which hasbeen proved.

Management of Metropolitan Transport Corporation(Now known as Metropolitan Transport Corporation,Chennai) Limited vs. Presiding Officer, I AdditionalLabour Court, Chennai & Anr. 2012 LLR 1074 (Mad.

H.C.)

M.P. IndustrialEmployment (S.O.) Act

Respondent-employee has been rightly retiredon attaining the age of 58 years as per IndustrialEmployment (Standing Orders) Act, hence theorder of Labour Court allowing him to continueupto the age of 60 years in untenable.

Executive Engineer and another vs. Balata andAnother. 2012 (134) FLR 642 (M.P. H.C.)

Payment of Wages ActAuthority under Payment of Wages Act cannot

decide the question of employer-employeerelationship under section 15(1) and (2) of the Act.

When in a claim petition under the Payment ofWages Act, the employer challenges the very existenceof employer and employee relationship, it is beyondjurisdiction of the prescribed Authority under the Actto decide since the appropriate forum fro decidingsuch important issues is under the Industrial DisputesAct and not by the said Authority under the Act.

M/s. Upper Doab Sugar Mills, Muzaffarnagar vs.Prescribed Authority Under Payment of Wages Act,

1936/ Assistant Labour Commissioner, Muzaffarnagarand Others. 2012 (134) FLR 766 (All. H.C.)

PromotionFitter who was never appointed as

stenographer cannot be allowed to havedesignations pay scale and other benefits of thepost of stenographer.

When the petitioner who at no time was appointedas a stenographer and continued to remain as a fitter,he will not be entitled to pay scale and other benefitsto the post of stenographer hence the Labour Courthas erred in allowing the claim of the petitioner whichis liable to be set aside.

Kharanan vs. Presiding Officer, Labour Court,Varanasi and Others. 2012 LLR 1069 (All. H.C.)

ReferenceConciliation officer is expected to make more

efforts to serve the notice on the employer.

The Conciliation Officer could have done littlemore effort to serve the petitioner, by other availablemodes, so that proper record was maintained inrespect of the service of notice on the petitioner hencerelying on outward register in the manner in which ithas been shown, is not a satisfying step.

Omr Bagla Automotie Systems (India) Ltd. vs. State ofMaharashtra and Others. 2012 (134) FLR 764 (Bom.

H.C.)

Reference of dispute regarding voluntaryretirement of the workman was held not properas the workman had not explained delay inraising it and there was no actual or apprehendeddispute.

The respondent workman was engaged in thepetitioner company of manufacturing automobileengine parts. He took voluntary retirement on12.3.2009 which was duly accepted by the petitionermanagement on 14.3.2009. Thereafter the respondentworkman received Rs. 3.96 lakhs as benefits of thevoluntary retirement. 9 months after the receipt of thesaid benefit, the respondent workman raised a disputeand demand notice, without explaining the delaybetween March 2009 and December 2009. The saiddispute was referred to the Labour Court foradjudication on the question whether the voluntaryretirement of the respondent workman was legal andjustified. The petitioner company challenged thereference by filing a writ petition in the High Courtcontending that respondent workman was stoppedfrom raising the demand and since he had ceased to bein the employment of the petitioner, there was noactual or apprehended dispute enforceable undersec.2(k) of the 1.D. Act. The High Court pointed outthat the respondent workman raised the dispute afteraccepting compensation and other retiral benefits andthis conduct on his part did not inspire confidence. Itwas also noted that the voluntary retirement schemewas due to a settlement between the petitionercompany and its workman and therefore therespondent workman was precluded from challengingthe same under sec. 18 of the 1.D. Act. Hence the writpetition was allowed and the reference of industrialdispute was quashed.

Federal Mogul Bearing India Ltd. vs. State of H.P. &Ors.

LLJ (II) 2012 P. 773 (H.P. H.C.)

REINSTATEMENT

When an employee is deprived of her legalright of employment by indulging in dubiousmethods by employer through employing her ascontract labour, sometimes paid by fictitious




names and sometimes directly, in suchsituation workman is entitled toreinstatement specially when she completed80 days before refusal for duty orally.

When a workman is deprived of hisfundamental and constitutional right oflivelihood, the courts must be compatible with thedirective principles of State Policy denying thespecious and untenable grounds raised by thepublic or private employer entitling the workmanfor due and reasonable relief.

C. Suryakumari vs. Presiding Officer, CentralGovernment Industrial Tribunal-cum-Labour

Court, Chennai & Ors.2012 LLR 1081 (Mad. H.C.)

Reinstatement not justified in case whereworkman did not work for 240 days in anyyear from his last working day and disputewas raised after 8 years.

Reinstatement, as awarded by the IndustrialTribunal, is liable to be set aside when theworkman has never worked for 240 days in any ofthe calendar years of the last day of working andalso the demand notice was sent upon thepetitioner-Management after eight year oftermination.

The Bathinda District Co-operation MilkProducers' Union vs. The Presiding Officer & Anr.

2012 LLR 1100 (P&H H.C.)

Reinstatement cannot be granted whenworkman failed to prove that he has workedfor 240 days in any of the calendar year.

Relief of claim has been rightly declined by theIndustrial Tribunal when the workman has notbeen able to prove that he has worked for 240 daysprior to his alleged termination.

Raj Kanwar vs. The Presiding Officer & Anr. 2012LLR 1106 (P&H H.C.)

A delayed claim filed after 11 years,without explanation thereto by the workman,is not maintainable.

Nirmal Singh vs. The Labour Court, Patiala andOthers. 2012 LLR 1108 (P&H H.C.)

Once the workman proves that he hascompleted 240 days service preceding the dateof his termination as also non-compliance ofsection 25-F of the Act by the employer, thenreinstatement is a logical consequence.

The respondent workman was in theemployment of the petitioner Municipal Counciland according to him he had completed more than240 days in the calendar year preceding the date ofhis termination from service. He therefore raisedan industrial dispute with regard to histermination from service and the industrialtribunal passed an award directing hisreinstatement in service but without back wages.Feeling aggrieved by the said award, thepetitioner Municipal Council carried the matterto the High Court by means of a writ petitioncontending that the respondent workman wasemployed for a specific period and his serviceswere no longer required upon extinguishment ofthe said period. The High Court observed that therespondent workman was able to establish before

the tribunal that he had completed more than 240days service in the calendar year preceding thedate of his termination from service. It was notedthat the petitioner Municipal Council had notcomplied with the provisions of section 25-F. Inthe light of this fact it was observed that therespondent workman brought his grievancesquarely within the ambit of the provisions of theIndustrial Disputes Act. Reliance was placed uponthe Supreme Court decision in Devinder Singh v.Municipal Council Sanuar 2011 (130) FLR 337 (SC)wherein it was held that once the workmansucceeds in establishing the essential ingredientsof having completed 240 days service precedingthe date of termination and also non-complianceof section 25-F of the Act, then reinstatement hasto ordinarily flow as a logical consequence. Hencethe petition was dismissed.

Municipal Council Raman, Bathinda vs.Presiding Officer, Labour Court. FLR (134) 2012

P.114 (P&H H.C.)

RetrenchmentTermination without compliance of

section 25F of the I.D. Act is un-sustainableattracting reinstatement with back-wages.

Granting of quantum of back-wages dependsupon the facts and circumstances of each caseconsidering length of service, financial position ofthe employer and applying the principle of "nowork, no pay" and such other factors.

Executive Engineer, Bhima Irrigation Division,Solapur vs. Vitthal Mahipati Kale. 2012 LLR 1034

(Bom. H.C.)

Without complying with the pre-requisitesof valid retrenchment, termination becomesvoid ab initio.

There is no material on record to vouch for thefact that the compensation has been actuallytendered or offered or dispatched prior to11.4.2005. It is hardly in doubt that, if the pre-requisites for a valid retrenchment as laid downin section 25-F have not been complied with, thenthe retrenchment bringing about termination ofemployment becomes ab initio void. We have nothesitation whatsoever to conclude that theretrenchment brought about by theappellant/Housing Board is ab initio void. Theunderlying object of section 25-F is two fold.Firstly, a retrenched employee must have onemonth's time available at his disposal to search foran alternate employment, and so, either he shouldbe given one month's notice of the proposedtermination or he should be paid wages for thenotice period. Secondly, the workman must bepaid retrenchment compensation at the time ofretrenchment, or before, So that once having beenretrenched there should be no need for him to gohis former employer demanding retrenchmentcompensation and the compensation so paid is notonly a reward earned for his previous servicesrendered to the employer but is also a source ofsustenance to the workman for the period whichmay be spend in searching and securing anotheremployment.



It is therefore imperative for every employer togive his workmen one month's notice in writing ,indicating the reasons for his retrenchment or inthe alternative, pay him wages equivalent to thenotice period in the lieu of such notice. It is alsoimperative that, such workmen has got to be paidcompensation at the rate of 15 days average payfor every completed year of continuous service orany part thereof in excess of six months. It is vitalto remember that ,section 25-F (b) clearlyindicated as to the time at which thecompensation is required to be paid by specifyingthe words 'at the time of retrenchment'.

A.P. Housing Board and others vs. A. NarsinghRao and others. 2012 (135) FLR 1 (A.P. H.C.)

Workers not entitled to wages forremaining absent from duty in protest oftermination of workers of other industry.

Workmen demand of wages for the periodremaining absent or keeping away from work forprotesting so called illegal termination ofworkmen of another industry not justified.Workmen failed to establish going on productionof factory and not giving work to them despitework available. No illegality committed inrejecting demand of wages. Non-maintenance ofseniority list of workmen by management wouldnot held workmen in any manner.

Gujarat Audhyogik Kamdar Sangathan vs.Alindhra Tex Pro Engineers and others. 2012 (135)

FLR 128 (Guj. H.C.)

Standing OrderAny clause in the certified standing orders

providing for automatic termination ofservice of a permanent employee would bebad if it does not purport to provide anopportunity of hearing to the employee.

The petitioner was in the employment of therespondents. He applied for leave of two days on4th and 5th May 2005 which was sanctioned.However, after the expiry of the leave, thepetitioner did not report for duty and remainedabsent unauthorizedly. According to thepetitioner, he had applied for extension of hisleave as he was admitted in a hospital for anailment of depression and thereafter he wasshifted to another hospital for treatment of hisdrug addiction. The petitioner was issued acertificate of fitness on 20-9-2005 and thereafter hemoved an application praying that he may beallowed to join the duties. However, no heed waspaid to his application. Therefore the petitionermade several representations but the respondentsissued an order indicating that the petitioner'sservices were terminated. Feeling aggrievedthereby the petitioner filed a writ petition andchallenged the order of termination of hisservice.

The respondents filed a counter affidavitcontending that the petitioner was a habitualdefaulter in absenting himself unauthorisedly

from his duties and he was advised to improve hisconduct. The authorities also discussed the matterpersonally with him with regard to his chronicalcoholic tendency but in spite of his writtenpromise the petitioner did not improve hisconduct. It was pointed out that during the periodfrom 1997-1998 to 2004-2005 the petitioner hadremained absent unauthorisedly for more than100 days in each year and sometimes more than200 days in a year. The respondent submitted thatthey terminated the petitioner's service afterissuing a notice under clause 8(i) of the StandingOrders.

The High Court observed that the petitioner isa permanent employee working continuouslyfrom 1982. The status of a permanent employee isdifferent and distinct from the status of a casualor temporary workman. The High Court referredto the provisions of clause 8(i) of the CertifiedStanding Orders which provide that in the eventan employee remains absent in excess of leaveoriginally granted, he would lose his lien on hisappointment unless he returns within eight daysof the expiry of the leave period. Where anemployee absents himself for more than eightconsecutive days without leave he would bedeemed to have left the service. The provisionfurther provides that if the concerned employeeproves to the satisfaction of the manager that hisabsence was on account of sickness or other validreasons, the manager may, at his discretion,convert his absence into leave without pay or withpay if due. It was further observed that thecardinal point which has to be borne in mind inevery case is whether the employee has been givena reasonable opportunity of presenting his caseand the authority should thereafter act fairly,justly, reasonably and impartially and that theprinciples of natural justice as provided underArticle 14 of the Constitution of India should beadhered to. The High Court also observed that theonly thing that was required to be done by theemployer in the instant case was to consider theexplanation of the petitioner but in the instantcase such explanation, though given by thepetitioner was not considered by the respondents.If the petitioner is a habitual absentee withoutleave, then it was open to the respondents tocharge him and hold a disciplinary inquiryagainst him. In the instant case, no such coursewas adopted by the respondents and therefore theorder of termination of the petitioner's servicewas illegal and invalid. Hence the writ petitionwas allowed with a direction to the respondent toreinstate the petitioner in service.

Sudhir Singh vs. Bharat Heavy Electricals Ltd. &Anr. CLR II 2012 P. 679 (Uttar. H.C.)

SuspensionTermination of service of bus driver for

rash driving was held not sustainable interalia for non payment of subsistenceallowance during his suspension period.



The appellant was working as a driver in therespondent transport corporation. On 5.10.1986the vehicle driven by the appellant met with anaccident killing a pedestrian, in respect of the saidaccident the appellant was issued a charge sheetand thereafter the departmental inquiry wasconducted against him on the charge ofmisconduct. The inquiry officer held the appellantguilty of the charge. Accepting the findingrecorded by the inquiry officer, the disciplinaryauthority terminated the appellant's service. Theappellant then raised an industrial dispute beforethe Labour Court in connection with thetermination of his service.

One of the contentions raised by the appellantwas that he was not paid subsistence allowanceduring his suspension period, which adverselyaffected him in defending his case in thedepartmental inquiry. The Labour Court rejectedthe appellant's contention that the inquiry was notconducted fairly and properly. However . theLabour Court came to the conclusion that therespondent management had not submitted eitherthe standing order or bye-laws so as to show underwhich clause the alleged negligence or rashdriving of the petitioner amounted to misconductfor which termination from service waswarranted. Hence the Labour Court answered thereference in favour of the petitioner.

Aggrieved by the said award the respondentCorporation filed a writ petition in the High Courtand the Single Judge allowed the writ petition bysetting aside the award of the Labour Court andremitted the matter back to the Labour Court todecide it afresh. Aggrieved by the said order, theappellant filed intra court appeal before theDivision Bench.

The Division Bench pointed out that after theappellant was put under suspension he was notpaid any subsistence allowance during the courseof suspension period though several demandswere made by him. It was observed that it is wellsettled that if an employee is put undersuspension and if he remains as such without anypayment of subsistence allowance then the entireinquiry becomes vitiated.

Non-payment of subsistence allowance is aninhuman act which has an unpropitious effect onthe life of an employee as he is demoralized. TheDivision Bench therefore allowed the appeal and set aside the order passed by the Single Judgeand restored the award passed by the LabourCourt.

Kalyanasundaram vs. Management of TNSTC.LLJ (II) 2012 P.698 (Mad. H.C.)

TerminationTermination cannot be disputed when

obtained by forged documents.

Employment obtained on the basis of forgeddocument by playing fraud upon the Managementis no employment and workman's terminationcannot be disputed.

Delhi Development Authority vs. Pratap Singh.2012 LLR 1012 (Delhi H.C.)

TransferManagement’s transfer order of union

office bearers cannot be stayed by Court if asper service condition & to meet businessexigencies.

Transfer cannot be stayed by the Court if thesame is as per service conditions to meet theexigencies of business and administrative needsand not mala fide. The Management is entitled toeffect transfer of an employee if the same is notmala fide and if the service conditions so provide.

Dharmarajya Kamgar Karmachari Mahasanghvs. S.P. Fabrications Pvt. Ltd. (A Shapoorji

Pallanji Group of Company). 2012 LLR 1032 (Bom.H.C.)

Employee cannot overturn the transferorder merely on the ground of personaldifficulties and distance.

Transfer of an employee from one place toanother cannot be stalled by the Court on thegrounds of personal difficulties including illnessas it is an incident of service.

Mere distance is no ground to stall the transfer.

Vijay Kumar Wadhwa vs. Life InsuranceCorporation & Others. 2012 LLR 1038 (P&H H.C.)

Transfer is management’s right which canbe effected only to an equivalent post whereasdeputation can be even outside cadre but canonly be done with consent of employee.Transfer can only be challenged if malafidebut deputation can be challenged if effectedwithout employee’s consent.

Transfer can be only to an equivalent post inthe same cadre whereas deputation can be inother than the parent department even at outsidecadre without considering equivalence. Transferis right of employer whereas deputation can onlybe with the consent of employee. Transfer is anincident of service and can only be challengedwhen it is mala fide or in violation of statutoryrules whereas deputation can be challenged ifeffected without consent of the employee. Neitherdesignation nor source of employment, method ofrecruitment, terms and conditions ofemployment/contract of service, quantum ofwages/pay, mode of payment are relevant fordeciding whether or not a person is a workmanwithin the meaning of section 2(s) of the Act butit is needed to be asked as to what are the primaryduties which the person has to perform indicatingexercise of authority, supervision and control.

Mere sending of Memos for non-compliance ofdeputation and even publishing the same innewspaper calling explanation from the workmanis not sufficient to prove that the workman did notobey the orders of his superiors unless the same isnot provided by conducting domestic enquiry.

There is no immunity to an office bearer(President of Union here) from avoiding transferunder the Industrial Disputes Act. When thedeputation order is illegal and the workman hadsuperannuated before the disposal of writpetition, the Award passed by the Industrial



Tribunal-cum-Labour Court entitling theworkman to full back-wages w.e.f. 24.8.2002 till hissuperannuation with all retiral benefits warrantsno interference.

Mohan Meakin Limited, Solan Brewery, Solan vs.President, Mohan Meakins Staff Union and Ors.

2012 LLR 1040 (H.P. H.C.)

TRADE UNIONS ACT

Settlement signed by Conciliation Officerbehind the back of union has no sanctityunder law.

The learned Single Judge, upon consideringthe constitution of the respondent Union, hasfound that the said union is carrying on itsactivity throughout India and held that therespondent union is entitled to participate in theconciliation proceedings and accordingly setaside the order passed by the Conciliation Officerdated April 22, 2008. The learned Single Judge hasrightly held that the said respondent union whoseobject is not confined to only one particular stateand who is having head office at Mumbai hasrightly been registered at Mumbai for the purposeof its activities. In any event since theamendment has already been carried out whichhas been done by way of abundant caution, asargued by Mr. Singhvi, It cannot be disputed thatthe said Union is not registered as a multi-stateunion. In view of the above, both the LettersPatent Appeals are required to be dismissed andthe order of the learned Single Judge as thelearned Single Judge has rightly held that therespondent union is entitled to participate in theconciliation proceedings undertaken by theConciliation Officer. A Settlement was signed byConciliation Officer behind the back ofrespondent union in absence of Union. Since theprocedure adopted by conciliation Officer is underchallenge and settlement is arrived at not inaccordance with law, it cannot be said to be asettlement in the eye of law.

Akhil Dadra and Nagar Haveli Kamgar Sangh vs.Krantikari Kamgar Union, Mumbai and others.

2012 (135) FLR 8 (Bom. H.C.)

Unfair Labour PracticeReinstatement with full back-wages would

be appropriate relief to a workman who hasworked seven days less than 240 days but hertermination amounted to unfair labourpractice hence she is entitled to reinstatementwith full wages.

Smt. Madhu vs. Presiding Officer, Labour Court,Amritsar & Anr. 2012 (134) FLR 829 (P&H H.C.)

U.P. ID ActGovt. cannot refuse to refer the dispute

merely by stating “it is not a fit case foradjudication”.

Declining to refer a dispute for adjudication bythe appropriate government stating that "it is nota fit case for adjudication" would not be proper

since it is for the Labour Court/IndustrialTribunal to decide and adjudicate the industrialdispute.

Balmer Lawrie Karamachari Sangh (INTUC) vs.Union of India and Others. 2012 (134) FLR 601

(All. H.C.)

Reinstatement of a workman after a long-time would not be proper.

While awarding back-wages on reinstatementto a workman, several factors, such as nature ofemployment, availability of post, the period forwhich the workman remained out of employment,financial position of the employer need to betaken into consideration.

Executive Engineer, Nalkoop Khand 1st,Saharanpur vs. Dy. Labour Commissioner and

Another. 2012 (134) FLR 607(All. H.C.)

If the services of a workman areterminated during pendency of the disputeand also the misconduct is not connected withthe proceedings, it is for the employer tojustify its action for termination whileseeking approval of dismissal from service bythe concerned Authority before whom thedispute is pending.

Modi Distillery, Modi Nagar, Ghaziabad vs.Presiding Officer, Industrial Tribunal (V), U.P.

Meerut and Another.2012 (134) FLR 771 (All. H.C.)

WorkmanCiculation executive of a newspaper

recommending leaves of subordinates will notbe workman under I.D. Act.

It is not the nomenclature but the nature ofduties, which an employee discharges, would bethe deciding factor, to arrive at a conclusion as towhether he is a workman or not.

If the nature of duties of an employee inter-aliaincludes the recommendation of leave tosubordinates for sanctioning the same by thehigher authority, it will establish that he wasperforming supervisory duties having controlover his subordinates.

K. Hanumantharayappa vs. Management ofIndian Express (P) Ltd., Chennai & Anr. 2012 LLR

1083 (Kar. H.C.)

Accountant having duties of realisation ofamount from other companies will be aworkman.

An accountant, assigned with the duty forrealisation of the amount from other companiesand also provided with a scooter and a receiptbook for this, will be a workman under theIndustrial Disputes Act. Hence the Division Benchwill not interfere with the findings of the learnedSingle Judge that there was no evidence that anymanagerial function was assigned to him.

Management, M/s. Gajraj Estates (P) Ltd. vs.Workman, A.K. Agarwal and Another. 2012 LLR

1092 (Jhar. H.C.)


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

Ahealthier Worker-Managementrelationship is very crucial to create abetter industrial environment. Well,this cannot be obtained only by steephike in wages of the employees. It is a

misconceived notion that exorbitant increase inwages is panacea for all the ills that plague thegood relationship between employees andemployers.Moreover, the industries are notexpected to take the cue the governments and thePSUs, which have virtually been converted intothe pastures of corruptions.

But first of all, let us know the background ofthis observation.After nearly two months of thelabour union and management clash at theManesar Plant, Maruti Suzuki announced, in thelate September, an increment package in a newwage offering increment of nearly 70%, apartfrom other benefits like interest-free personalloans etc. The new wage offers by the MarutiSuzuki appears to be with an object to avoid arepeat of the labour unrest that has gripped itsManesar plant.

According to the offer, all the 2032 permanentworkers at Gurgaon will get an increment of Rs.18,000 in their monthly salary, spread over a periodof three years. Currently, salaries at the plantrange from Rs. 35,000 to Rs. 39,500 a month. Of theRs. 18,000 increase, workers can avail up to 80% of

the increase, or around Rs. 14,400, in the very firstyear.

The new wage offer is more attractive than theprevious settlement at the Gurgaon plant in 2009.In 2009, the company hiked the wages by 6%, theaverage hike being around Rs. 7,000, spread overthree years, with workers allowed to avail only50% of the hike, or Rs. 3,500, in the first year.

This time, the Company, among otherincentives, has also offered variable dearnessallowance for the workers, which would be Rs. 700to start with and be revised in sync with inflation.There are medical benefits and hike in travelallowance too, while the training period has beenreduced from three years to two years. Goingforward, Maruti also plans to provide housingfacilities to its workers at both the facilities asdwelling costs are higher in Delhi NCR areas.

Though the wage hike has brought cheers forthe workers at Manesar plant also, but concernsare the wage hikes may affect the Company’smargins which are already under pressure due toforeign currency fluctuations, rising import costsincreased discounts and aggressive competition ofthe products. But, interestingly, various analystspoint out that will not have a major impact overallas it is not an overall wage hike. Labour costs forMaruti stand at 2.4% of total sales versus the


H.L. Kumar

Advocate, Supreme Court

Hefty Pay Hikes

No Guarntee toharmoneous IR

This time, the Company, among other incentives, has also offeredvariable dearness allowance for the workers, which would be Rs. 700to start with and be revised in sync with inflation. There are medicalbenefits and hike in travel allowance too, while the training period hasbeen reduced from three years to two years. Going forward, Marutialso plans to provide housing facilities to its workers at both thefacilities as dwelling costs are higher in Delhi NCR areas.

industry average of 4-5%. This figure , in fact, isfar from the reality. Maruti as everyone knows, ismore dependent on the ancillaries, which will alsoflow along the tide and thus the average is boundto shoot up.This is an altogether different matter,which is not our concern.

As a matter of fact, ‘Labour law Reporter’ willhave the least of the grudge with increase in thewages of the employees rather it will join them intheir celebration. However , being the mirror ofthe Industry and related affairs, it is duty bound toreflect truly and properly because skewedreflection is self- defeating as well deleterious tothe industry.

Even after receiving so many increments, thefrustration will start and the expectation for moremoney will be escalated amongst workers. Evenotherwise it has created imbalance in the regionand other industries which are mainly feeders forauto parts for Maruti. Higher wages to theemployees is no guarantee for peace and harmony.Had it been so, Air India would have been world’sbest airlines.

After or even before expiry of the prescribedperiod the expectation of the employees would be

much higher and if not given by the Management,the unrest will start. Already the smokes ofdiscontentment have started smoldering inautomobile industry and also in many otherindustries that are located in the region.Encouraged by the pay hikes announced byMaruti Suzuki for its Gurgaon plant workers lastmonth, the labour union at Hero Moto Corp’snearby plant is now believed to be pushing for asimilar wage increase.

The final three-year wage settlement isexpected to be ratified by both parties aroundDiwali (November 13), with meetings taking placebetween the management and Gurgaon plantunion almost every day, according to reportpublished in the Financial Express.

With the new wage offer at the Gurgaon plantcoming in effect retrospectively from August 1 thisyear, the workers are expected to get arrears forabout three and a half months. “There areinternal meetings being held in a very peacefulmanner. Given the fact that Hero is the industryleader, the workers are hoping that themanagement would match the trend set by theother major auto players,” another industrysource said. The original demand charter hadbeen submitted on July

Around 1,100 permanent workers would benefitfrom the fresh agreement, while the 4,500 contractworkers at Gurgaon may also see some newbenefits.

At present, the average monthly salary forHero’s Gurgaon plant employee is about Rs.32, 000,while the maximum is at around R40, 000.

There is no doubt that the wages play theimportant factor for the job satisfaction of theemployees but it cannot be sole guarantor of theindustrial peace and harmony. A major like theMaruti Suzuki cannot function in isolation it hasto ensure that its actions and decisions do not giverise to unrest and discord in the area and therebyspoil the very ambience.

Some time ago the Maruti management hadtaken the decision to enter into an unethicalagreement with a self-styled lumpen leader bypaying him and other office bearers of the union ahefty amount to buy the peace, which ultimatelyproved to be a mirage.

The victory of Management for obtaining goodconduct bond from the workers at Manesar Planthas proved to be illusive. It would have beenprudent on giants like Maruti to have given itsthoughtful considerations over this matter. Manycompanies have already gone on for outsourcingand imbalance will have cascading impact ontheir functioning.


No Guarntee to harmoneous IR

Higher wages to the employees is noguarantee for peace and harmony. Had itbeen so, Air India would have been world’sbest airlines.

BM

The scheme of the BOCW Act is that itempowers the Central Government andthe State Government respectively toconstitute the Building and OtherConstruction Workers' Advisory

Committees at the Central and State Level. Section7 requires every employer in relation to anestablishment to which the BOCW Act applies toget such establishment registered. Section 10makes this requirement mandatory; without suchregistration the employer of an establishment towhich the BOCW Act applies cannot employbuilding workers.

Chapter IV of the BOCW Act containsprovisions requiring the registration of buildingworkers as beneficiaries and requires certaincontributions to be made by such beneficiary atsuch rate per month as may be specified by theState Government. Where the worker is unable topay his contribution due to any financialhardship, the Board can waive the payment ofsuch contribution for a period not exceeding threemonths at a time.

Chapter V of the BOCW Act sets out theconstitution and functions of the Building andOther Construction Workers' Welfare Boards.Section 24 set outs the provision for theconstitution of the Welfare Fund and itsapplication.

There are detailed provisions in Part III of theBOCW Act concerning the safety, health andwelfare of the construction workers generally andin reference to specific kinds of activities.

The scheme of the BOCW Act indicates that thecentral focus of this statute is the building andconstruction worker and the welfare of suchworker. Clearly the BOCW Act belongs to thegenre of labour welfare legislation relatable toArticles 39(e), 42 and 43 of the Constitution ofIndia. The Hon'ble Supreme Court has in Bandhua

Mukti Morcha v. Union of India explained thatsuch legislation would be straightawayenforceable under Article 21 which enshrines theright to human dignity. It was explained that (SCCp.184): "where legislation is already enacted by theState providing these basic requirements to theworkmen and thus investing their right to livewith basic human dignity, with concrete realityand content, the State can certainly be obligated toensure observance of such legislation for inactionon the part of the State in securingimplementation of such legislation would amountto denial of the right to live with human dignityenshrined in Article 21."

The BOCW Act envisages a network ofauthorities at the central and State levels toensure that the benefit of the legislation is madeavailable to every building worker. The provisionsconcerning registration of workers, providingthem with identity cards, constitution of WelfareBoards and registration of beneficiaries under theFund, providing for augmentation of the Fundand specifying the purposes for which the Fundwill be used, providing for the safety and health ofthe worker, making the contravention of theprovisions of the statute punishable and entailingpenalties for the violator all go to emphasize theprimary purpose of the BOCW Act, which is thewelfare of the building and construction worker.These aspects of the BOCW Act are sought to besupplemented in considerable measure by themaking of the Central Rules in 1998. Detailedrules have been made with regards to particularaspects of safety in construction work and for thehealth and welfare of the workers. Theconstitutional validity of the aforesaid Act hasbeen upheld by the Supreme Court of India in thematter of CIVIL APPEAL NO. 1830 0F 2008 M/SDEWAN CHAND BUILDERS & --APPELLANT CONTRACTORS VERSUS UNIONOF INDIA


Girish Patwardhan

Advocate, Indore

BOCW ACT- FAQs

The BOCW Act envisages a network of authorities atthe central and State levels to ensure that the benefitof the legislation is made available to every buildingworker.

BOCW ACT- FAQs

FAQs & Answers

1. Which units are covered for payment ofLabour CESS.

A. In view of the definition of construction workdefined in Section 2(d) of the Act all types ofconstructions, erections, installations areincluded. The activities which have beenexcluded are any building or other constructionwork to which the provisions of the FactoriesAct, 1948 (63 of 1948) or the Mines Act, 1952, (35 of1952) apply. Thus virtually every constructionwork carried out for constructing a new factorywill attract CESS.

2. What is the liability of Contractor forpayment of Labour CESS?

A. Liability had been cast upon the contractor topay the CESS, if the work is of State Governmentor Central Government, but in other cases theliability to pay CESS is on owner as also oncontractor. Thus it will depend upon thelanguage employed in the contract enteredbetween employer and contractor as to who willpay the amount of CESS.

3. What is the definition of Cost ofconstruction on which the CESS is payable ?

A. Section 3 of CESS Act is the chargingsection which reads as under: There shall belevied and collected a CESS for the purposes ofthe Building and Other Construction Workers'(Regulation of Employment and Conditions ofService) Act, 1996, at such rate not exceedingtwo per cent but not less than one per cent ofthe cost of construction incurred by anemployer, as the Central Government may, benotification in the Official Gazette, from timeto time specify. Likewise rule 3 of the CESSrules provide that "For the purpose of levy ofCESS under section 3 (1) of the Act cost ofconstruction shall include all expenditureincurred by an employer in connection withthe building or other construction work butdoes not include cost of land or anycompensation paid or payable to a worker orhis kin under Employees Compensation Act1923.

In Madhya Pradesh , the Assessment Officers aretaking into consideration entire amount spent onthe construction . cost of machinaries , cost ofair conditioning systems and even expences onexpert advise . The Madhya Pradesh High Courtin the matter of Technical Associates Vs.Assessment Officer reported in 2012 LLR page 817had approved that in cost of construction allexpences will be included .

4. What is the modus operandi forcalculation and payment of CESS?

A. As per section 3 of CESS Act 1% of the cost ofconstruction is required to be deposited with theboard constituted under the Act. The CESS is tobe paid within 30 days of completion of theconstruction project or within 30 days of the dateon which assessment has been finalizedwhichever is earlier.

5. Whether the Labour CESS is assessedthrough assessment proceedings?

A. The provision is like this in the first instancethe employer has to calculate and deposit theCESS and information to that effect is to furnishin form I. the assessing officer on receipt ofinformation in Form I from an employer shallmake a scrutiny and if he is satisfied aboutcorrectness of the information he will pass anorder of assessment within 6 months. Ifassessing officer is of the opinion that theemployer has under calculated or miscalculatedthe cost of construction he shall issue a notice tothe employer for assessment of CESS and willpass an order after affording an opportunity ofhearing to the employer.

6. If assessed through assessmentproceedings than what is the frequency ofassessment?

A. This assessment is required to be done inevery year till the work of construction is notcompleted.

7. What all documents department can callfor the Assessment proceedings?

A. For the purpose of assessment as per rule 7 (6)the assessing officer can make or authorized anyofficer to make such enquiry at site or call fordocumentary evidence or any other manner forthe purpose of estimating the cost ofconstruction. He may take measurement,inventory of material, machinery or other articleand may required the production of any registeror document relevant for the purpose ofassessment.

8. Suggestions for rationalizing the taxliability in this head.

A. The completion certificate should be obtainedwithout installing the air-conditioning system,machinery and other equipments. The licenseshould be obtained on nominal machines andthereafter in phases the other activities may becarried out so that it can be claimed that it isexpansion of existing factory building, whichmay not attract CESS. Though in M.P. the LabourDepartment has issued a circular to claim CESSeven on expenses incurred for expansion.


BM

Tesca Technologies,Manufacturer& Exporter of Tests and Measuring EducationalEquipments,was established in 2009 in Jaipur, Rajasthan(India) byAshutoshAgrawal. Ashutosh, B.Tech in Electronics and Telecommunication from

Solapurand MBA with Marketing as Specialisation from Mumbai - the commercial capitalof India, was grandson of a Businessman, Ram Prasad. Ram Prasad had started thebusiness of manufacturing electronic equipments in 1962 under the name of OmegaElectronics. Ashutosh after completing MBA joined Pedilite and worked there for a yearbefore he joined his grandfather's business. It was a family run business managed by hisgrandfather, two uncles and father.Ashutoshremained with the family business for sevenyears from15thDecember, 2002 to 30thDecember, 2009 as Export/ Training Manager.

During this period, he initiated export activities, upgraded www.omegaelectronics.netwith new international interface in terms of translation in nine languages, and handledall export documents. He also visited andinitiated business in Mauritius, Taiwan, HongKong, China, Switzerland, Bangkok, Malaysia, Singapore, Ghana, Nigeria and Morocco. Inaddition, he started training business for Omega for providing technical training toengineering students and teachers. Ashutosh trained more than 1800 persons in these 7years.He even influenced product outlook and production techniques seeing the needs ofexport and domestic markets. In spite of his full involvement, he was not satisfied withthe pace with which business was going on. Ashutosh wanted to do something differentand had realized that there was no scope for innovation because of close mindedness ofthe elders in the business. They preferred to go the traditional way and did not want totake any major risk. It was smooth sailing for themandthey wanted to continue the sameway. Since it was a family run business,innovation in any form was out of questionalsobecause of the resistance from the family members.Ashutosh knew that it was neverenough to just tell people about some new insight. Rather one had to get them toexperience it in a way that evoked its power and possibility. Instead of pouring knowledgeinto people's heads one needed to help them grind a new set of eyeglasses so that theycould see the world in a new way. That involved challenging the implicit assumptions thathad shaped the way people in an organization had historically looked at things.

New VentureIn December 2009, Ashutoshdecided to separate himself from the family business and

started a small setup, christened as Tesca Technologies, of manufacturing andwarehousing in the basement of his home, just with an initial investment of Rs. 50,000only. It was trading of 700 products. Though he faced problems in the registration of thetrade mark, because of the objection from a company in Germany -Ashutosh decided tocarry on with the new venture. He started arranging all the things like digital whiteboards, furniture and equipments and then supply to the customers.In March 2010, theturnover was Rs. 35,00,000. It boosted his morale. He decided to get into the business moreaggressively.Ashutosh felt that no company was smart enough to know what to do withevery new opportunity it finds, and no company had enough resources to pursue all theopportunities. He saw that Indian market was Rs. 2,000 crores whereas Export market wasRs. 10,000 crores. There was a huge potential abroad.

He took it as an opportunity to expand his operations. So he decided to concentratemore on exports with a break up of just 5% domestic and 95 % exports. In foreignmarkets, Indianequipments were found to be cheaper but technologically better.Moreover, there was no concept of credit in business deals abroad, whereas in domesticmarket the credit was in vogue. Thus, the blocked finances would at times hamper the

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.

Ashutosh decided toset up his ownventure after gainingan experience ofseven years. He feltthat it was difficult tomake innovations inthe traditionally runbusiness - becauseelders did not wishto take major risks.

Family BusinessChallenges


CASE study

As Manufacturer &Exporter of Test andMeasuringInstruments, TechnicalEducation / Vocational /Didactic TrainingEquipments, Tescaoffered qualityproducts in variedfields providing thecomplete package tothe customers in userfriendly and IT savvymanner.

operations of the business. In 2010-11, the turnover rose to Rs. 1.8 crores. In October 2011,hestartedmanufacturing some of theequipments. The turnover in 2011-12 rose to Rs. 2.2crore. Ashutosh's idea was that a buyer wants all the deliverables under one roof. Itfacilitates the buyer as he has to be in contact with one person rather than with manywhich he would always prefer. But then trust was an important parameter todo thebusiness this way.

Ashutoshmade it a point that while making many things available at one place he hadto buy the best and then support. He would take products from original equipmentmanufacturers to ensure quality.The support was extended in the installation even whenthe equipmentswere not supplied by Tesca, because customer was more concerned aboutthe onsite services.Tesca sold the products under different trademark wherever theproducts were not available from the original equipment manufacturers and Ashutoshwas not sure about the quality of the product. This practice was followed to retain thetrust of customers in Tesca.By August 2012, under the umbrella of Tesca,2000 innovativeproducts were supplied and 250 stand-alone equipment items were manufactured.Equipmentswere both list based and lab based. In list based equipments, the customerswere aware and would ask for specific equipment,whereas in lab basedequipments, itwould be lab specific.

As Manufacturer & Exporter of Test and Measuring Instruments, Technical Education/ Vocational / Didactic Training Equipments, Tesca offered quality products in variedfields providing the complete package to the customers in user friendly and IT savvymanner. Tesca specialized in design, conceptualization, engineering, procurement,supply, installation of turnkey projects worldwide and tried to provide the best, reliableand quality products to the educational, training and R&D institutions. To actualize andmaintain quality, Tesca attempted to adhere to international quality management system.The products were tested by technical experts at various stages of production to ensure100% quality. A devoted team of quality experts was entrusted with this job and theyensured that the products were in line with the global standards. There was noautomation for assembling of components and testing. Testing of measurementInstruments and packaging of machineries was done manually. And that is where Tescawould face competition in terms of the finished products from suppliers of the developedcountries. But it gave Tescamarket indeveloping countries because of the costdifferentiation as the customers would go for cheaper goods.

The company exported the products to 42 countries (Appendix). In Europe/AmericatoBrazil, Bolivia, France, Germany, Iceland, Peru, Portugal and USA. In Asia toBangladesh, Bhutan, India, Malaysia, Nepal, Pakistan, Singapore and Sri Lanka. InMiddleEast to Bahrain, Iraq, Israel, Kuwait, Lebanon, Palestine, Syria and Yemen.InAfrica to Egypt, Ethiopia, Ghana, Kenya, Mali, Morocco, Nigeria and Tunisia. The orderswere mobilized through dealers.To keep their deliverables up to the mark, Tesca wouldtake sufficient time margins of 4-8 weeks to keep the buffer so that the penalties wereminimized and it retained the confidence and faith of its customers. It would also keepsufficient stock as at times it would not have much waiting time.

Initiatives TakenTesca spent 5-10% of the budget on promotional activities like group e-mailing, social

networking, social marketing through twitter, Facebook and LinkedIn. Ithad employedmanagement trainees to register itself on around 350 trade websites. It also registereditself in the Ministry of Exports, yellow pages and sent around 4000 letters to dealers withbrochures.It also participated in trade fairs like World Didac in collaboration with aFrench Company - EFI, which spent Rs. 2,00,000 for the exhibition.

As an unwritten policy, Tesca would come up with new designs of boxes within one ortwo years as it thought that constant change in the design of the Equipment was essential.For instance,it came up with Basket mouldedboxes for training kits. It regularly bought alot of Test and Measurement Equipments for testing purpose and did a lot of changes inproduct casing by converting it from metal boxes to ABS plastic boxes. Earlier, sourcingwas done from local vendors and now Tesca sourced what was best available in India andnot limiting itselfto Jaipur only. Tescaeven constantly changed the packing to delightthecustomers.It remained updated with the latest technology and its innovative productsincluded Test & Measuring Instruments, TechnicalEducation/ Vocational/ DidacticTraining Equipments, Soldering & Desoldering Stations, Analog/Digital Panel/PortableMeters, Multi-function Hand Tools & Power Tools and Variacs/ Dimmerstats.With everyequipment, there was a pre-sale and post- sale video-demo in addition to DVD along withthe kit. Tescahad also started offering complimentary Website Designing to the clientswho gave it business.


Challenges AheadTesca had a manpower of 20 people with 2engineers( 1 diploma holder and 1 B. Tech),

12 Technicians and 2 Accounts, 2 Marketing and 2 Designing personnel. Since Jaipur wasa small place, there was delayed exposure to latest technologies as compared to biggercities and metros. Moreover, there was dearth of skilled technical and professionalmanpower for R&D. This would at times defer the innovation Ashutosh had in mind whiledesigning the products. For the skill development of its employees, training was impartedby the in-house staff to sustain the business. Tesca had yet to reach the stage to hire theskilled human resources from bigger cities, or even send the existing people for trainingelsewhere. However, Ashutosh had plans to expand his business and he had alreadyprocured land in a prominent industrial area for setting up the factory to manufacture theequipments, as infrastructure development was his priority at this stage of theenterprise.

Appendix

Projects Completed Iraq - Communication Trainer Kits, D to A Module, Stepper motor ModuleBhutan - Test & Measurement InstrumentsYemen - Breadboard Trainers, IC TesterSingapore - Fiber Optics Trainer Malaysia - Microwave Test BenchesFrance - Riders, Digital Logic Lab Iceland - digital-Analog LabSyria - Communication Trainer, Antenna Microwave Trainer, Colour TV Trainer Malaysia - Decade Boxes (R,L,C)Bhutan - Chemicals, Biomedical ConsumablesPeru - Power Electronics Trainers (171 Trainers)Palestine - Power Project Board (100 Units)Singapore - Decade Boxes R,L,C (72 Units)Malaysia - CD/VCD TrainerLebanon - DVD Trainer, Robotic Arm TrainerBhutan - Drill Machine, Welding Machine, Coil Winding Machine, TMI, PortableDigital Meter Bhutan - DSP Kits, Component, Programmer EraserUSA - Dissectable TransformerEgypt - Dissectable TransformerEgypt - Breadboard Trainer & TMINigeria - Breadboard Trainer, Colour TV Trainer, Antenna TrainerTunisia - Tubelight Demo Board, Display BoardBrazil - Transmission Line, Lan, Fiber Optics Trainer

Robot Soccer: The Robot Football is an infrared remote control kit, its microprocessorprovides 4 different channels to have 4 robots to play together on the ground. Twoseparate motors make it move forward or backward, turn right or left and another motorto kick the ball. Learn how to control the ball, hold it and kick it out. Are you ready to winthe championship by the Robot built by you? Do it now.

Wired Control Robot ARM: Learning basic robotic technology, build your own wiredcontrol Robot Arm with five motors and five joints. With its five-switch wired controller,the Robot features base Rotation, Shoulder, elbow and wrist motion, and functionalgripper. The 5 motors operate the grab, lift lower, and release smoothly maximum liftingcapacity : 120 G

Robot ARM 7 AVR Based: It's a versatile Development Platform designed for studentsand enthusiasts to implement their ideas at speed. Incorporating various sensors andactuators is a simple task with this machine. Aluminum chasis gives it more load bearingcapacity, while circular shape gives sleek looks.

Soldering & De-Soldering Station: Tesca is a pioneer in developing for the first timein India a soldering station with imported ceramic heater element with micro controllerbased and de-soldering stations and digital rework stations which are a must for any R &D lab and production facility. After carefully studying for over a decade, and with dueconsultation with different operations with which operator can rework any sort printedcircuit efficiently. The units Tesca has developed have very unique features and also withhigh utility and very long life, these units are serviceable for the first time in indigenousindustry.

CASE study

Questions1. Comment on the

entrepreneurial skills ofAshutosh.

2. Was it right to sellproducts under differenttrademark whenAshutosh himself wasnot sure about thequality of the product?Was it really a practicetowards trust building inTesca?

3. Was Ashutosh right ingiving priority toInfrastructuredevelopment over Skilldevelopment of thepeople working withTesca??

THIS CASE WAS DEVELOPED BY DR.SANTOSH DHAR AND DR. UPINDER

DHAR OF JK LAKSHMIPAT UNIVERSITY,JAIPUR (INDIA) AS A PART OF THE UKIERI

PROJECT JOINTLY UNDERTAKEN WITHTHE UNIVERSITY OF WALES, UK ON SME

INITIATIVES.THE AUTHORS ARETHANKFUL TO DRASHU SHARMA FOR

COORDINATION.


CASE Analysis

The salient features of the HR Policy adopted by Span Outsourcing ServicesPvt. Ltd., that could help it build competency in its employees, its details are asfollows:

1. Encouraging ideas from employees: Span Outsourcing Services realised that thebusiness of marketing services could not be successful without the inflow of ideas fromits employees. It placed a lot of emphasis on it. The aim was to keep the employees feelingthat their work was more than just a job and by asking employees, opinions of an activityshowed that it respected their time and wishes. It is also a useful tool to keep theemployees engaged.

2. Use of Psychometric Tests: The organization made use of intensive psychometrictools to identify traits it felt necessary that prospective new recruits should possess. Onlythose candidates that passed the tests were recruited. The organization by usingpsychometric tests provided itself a powerful way of ensuring that only the bestcandidates are selected by assessing their ability and preferred behavioural styles. Thetests assisted in identifying the strengths and development needs of the employees for theorganization. They also helped to initiate employee development and training plans.

3. Investing in Employees: Span Outsourcing Services encouraged its employees toundertake external career development programmes. Example of one such initiativetaken by the organization was to sponsor the MBA education of its top executives. Anotable strength of this initiative is that the executives would be then able to apply the newknowledge gained immediately to work. It would also make the theory accessible andrelevant as the executives may have a real-time problem to which it can be applied. Gainingnew knowledge gives employees the confidence to take on new challenges and meet them.

4. Committing to Team Development: The top management at Span OutsourcingServices encouraged healthy competition among all the teams. Each team leader wasrequired to act as a coach who would be directly responsible for the performance of histeammates. The team leader was required to guide and motivate his or her team membersto achieve the goals that had been set.

5. Recruiting, Hiring, Placing & Retaining New Employees: At Span OutsourcingServices, the team leaders assume total responsibility for new recruits for the first sixmonths. During probation period, the new recruits are not pressurised to perform andallowed to learn the job at their own pace. The organization felt that this would give newrecruits sufficient time to be self-motivated to attain the organizational goals.

6. Valuing Existing Employees: The HR policy at Span Outsourcing Servicesencouraged rigorous training sessions to improve the performance of non-performingemployees. They were given new opportunities in support functions. The organization isguided by the philosophy that to make everyone successful, work must be in cooperationwith one another. Thus team spirit is promoted.

Other HR initiatives that the Top Management should take to retain employeesin the organization

1. Employee Change Management:Span Outsourcing Services should train its employees in multiple jobs, give themrotational assignments, and encourage job sharing thus providing more flexibility

This Case Analysis refers to Case Study ‘Innovative HRM’ published in Oct. 12 Issue


Team culture should be capitalisedfor competitiveadvantage

Mihir Gosalia

Asst. Manager - ISO & OHSAS,Kesari Tours, Mumbai

CASE Analysis

amongst the employees to meet organizational needs and maintain job security whencutbacks are unavoidable. Preparing the employees to meet the future needs of theorganization also enhances their engagement with the organisation.A formal system should be in place to develop future leaders. This includes providingtraining and practice in high-performance leadership techniques and work projectsthat require leadership ability to be demonstrated.

2. Employee Work Climate: The organization could make available special activitiesand services for its employees. These could vary depending on different needs. Examplesinclude flexible benefits plan (health care, dental care, maternity, paternity, and family-illness leave), facilities for employee meetings to discuss their concerns, grouppurchasing power programmes where the number of participating merchants isincreasing steadily, etc…

3. Assessment of Employee Engagement:Leader behaviour helps or hinders employee engagement. Hence the Top Managementmust be personally engaged, and demonstrate high energy in both their core job andsupportive roles. They must look at creating an environment where achieving morethan basic job requirements (tasks) is valued. Supervisors, Managers, and Leadersmust take consistent and prompt action to improve employee conditions identifiedthrough employee engagement and satisfaction surveys.Formal career plans should be in place for each employee. Progress against these plansis to be evaluated and adjustments made to ensure that they remain relevant. Themanagement could also look at giving incentives to the employees, such as bonuses orother rewards, for developing additional career - enhancing skills.

4. Employee Development: The organization could document or otherwise capture /store key knowledge held by the employees so that knowledge is not lost when the workerleaves the organisation. Proactive sharing of personal knowledge will help to preservecollective knowledge (organisational memory). Job sharing, mentoring, cross-training,job shadowing and formal transition programs could be used to transfer knowledge fromdeparting employees.

The elements in Span Outsourcing Services functioning that could make it amarket leader are as follows:

1. Outsourcing of Back Office Operations: In order to reduce its overhead costs andexpand its resources, the organization moved part of its operations in 2003 to Bangalore,India thus paving the way for economies of scale to exist. Outsourcing helps to share riskand accommodate peak loads by minimizing fluctuations in headcount that could resultfrom increased workload demand.

2. Customer Relationship Management: In order to meet the demands of itscustomers in the new era, Span Outsourcing had started exporting information andcreative solutions through excellent high technology based data management andmanagement information systems. The organisation reiterated that the successfulrendering of services had resulted in 67% of repeat client base responsible for profit andgrowth in a highly competitive field. Service is the key factor that differentiatescompanies and cultivates loyal customers. It is more costly to acquire a new customerthan to keep an existing customer. Loyal customers are far more likely to provide positivereferrals than a dissatisfied or even minimally satisfied customer.

3. Vision & Mission: The organisations vision and mission reflected its ambitiousgrowth plan. The vision of the organisation was to increase its employee strength to 10,000employees by 2015 worldwide with a corresponding increase in its global operations. Themission was to be a global player providing world class IT services that could maximizevalue to the customer's businesses and processes and hence be a great organisation to workwith. The Top Management has made vision, mission and performance expectations clearand let the employees know what is to be accomplished to be a market leader.

4. Employee Engagement & Correlation with Business Results: The HR policies& practices at Span Outsourcing Services had been instrumental in strengthening theretention strategy of the organization resulting in a reduced attrition rate of a mere 4%in 2009 vis a vis industry average of 18-20% and with a corresponding improvement insales turnover. Engaged, skilled, motivated workers are essential to Span OutsourcingServices in improving its core competencies, work systems, and key work processes toincrease customer value and organisation productivity.

Weaknesses in the operations of Span Outsourcing Services Pvt. Ltd. &measures to convert them into Strengths.


The organization coulddocument or otherwisecapture / store keyknowledge held by theemployees so thatknowledge is not lostwhen the worker leavesthe organisation.Proactive sharing ofpersonal knowledgewill help to preservecollective knowledge(organisationalmemory). Job sharing,mentoring, cross-training, jobshadowing and formaltransition programscould be used totransfer knowledgefrom departingemployees.

CASE Analysis


Weaknesses

1. Span Outsourcing is a multi-location organisation with employeeslocated in two different countries in different time zones & differentcultures and is growing further. Hence details of how does it ensure thatits organisational culture benefits from the diverse ideas, cultures and,thinking of its workforce are not evidently clear though there exists anHR practice of encouraging ideas from employees?

2. Although the Top Management at Span Outsourcing promotes aculture of co-operation & team spirit and gives many opportunities tonon-performing employees in other support functions, it is not clearhow does the employee performance management system at SpanOutsourcing Services reinforce a customer and business focus andachievement of action plans?

3. The top executives at Span Outsourcing regularly review the HRpolicy and incorporate new-employee friendly practices to attract,satisfy and retain the employees. However details of employeeparticipation & consultation in formulation of the policies are notevident.

4. Team spirit culture already exists in the organisation but it is notcapitalised further to turn into a source of competitive advantage.

Measures to convert Weaknesses into Strengths

By capitalizing on diverse ideas, cultures, and thinking, theorganisation may enhance its ability to create an innovative andempowered workforce. This in turn will help to increase theproductivity and thus the organisation's ability to meet the challenges ofthe current highly competitive environment. The organisation couldlook at considering the need for diverse ideas and cultures amongst itsemployees during the recruitment and skill-mapping process to ensurethat they are able to provide the perspective needed to drive innovationand creativity

One of the measures could be to provide prompt and regular feedback toteams and individuals regarding their performance. Feedback shouldcover both business results and work processes. The work of theindividual employees, when taken together, should enable the SpanOutsourcing Services to achieve its action plans and related strategicobjectives.

Another measure could be that recognition, rewards / incentives, andcompensation must be influenced by customer satisfaction ratings aswell as other performance measures such as implementing processimprovements. The failure to provide rewards, recognition, orcompensation that supports a customer focus may cause the employeesto behave as if customers are unimportant. Rewards (or absence ofthem) drive behaviour and motivate people to respond in certain ways.

The employees must also participate in creating the compensation,recognition, and rewards / incentives practices. Leaders as well asManagers must help monitor their implementation and systematicimprovement. This will also help in creating a culture of trust in theorganisation in long term.

Self-directed or self-managed teams could be deployed throughout theorganisation. They could be given authority over matters such asbudget, hiring and team membership and roles. Self-directed workteams represent an approach that goes beyond quality circles or ad hocproblem-solving teams. These teams are natural work groups that worktogether to perform a function or produce a product or service. They notonly do the work but also take on the management of that work --functions formerly performed by supervisors and managers. Thisallows managers to teach, coach, develop and facilitate rather thansimply direct and control. Self-directed work teams also result inreduced operating costs.

Threats in Span Outsourcing Services Pvt. Ltd. Operations & measures to convert them into Opportunities

Threats

1. Creating a sustainable organisation

2. Succession planning

3. Learning & Development Systems

Measures to convert it into Opportunities

Top Management at Span Outsourcing Services must now look atcreating a sustainable organisation; a culture for consistently positivecustomer experience, customer engagement, employee learning andleadership development. To help sustain these practices, rewards andrecognition systems must demand these behaviours from theemployees, reinforce their use, and discipline those who fail to usethem.

The organisation should perform effective succession planning forsenior leaders, managers, and other key personnel at all levels of theorganisation in order to overcome shortage of skilled employees. Thiscould help minimise the threat to organisational stability in the longterm and not create immediate performance problems in the shortterm.

If it is worth training an employee to acquire new skills and abilities asreinforced by the initiative of the organisation to sponsor MBAeducation of its top executives, then it is important to reinforce the useof those new skills when the employee returns to the job and applies thenew knowledge for long term. Failure to do so may cause those newskills and abilities to become obsolete and quickly forgotten.Accordingly, the cost of training and the cost of lost productivity whilethe employee is receiving the training represents wasted resources.Losses of this nature can materially impact an organisation's rate ofgrowth and its ability to achieve strategic objectives. The organisationshould systematically evaluate training effectiveness on the job.Performance data could be collected on individuals and groups at alllevels to assess the impact of training.

HRNews

Maruti Suzuki has doled out a bumperincrement package in a new wage settlement,offering salary increment of nearly 70%, apartfrom other benefits like interest free personalloans and housing. The agreement has beenaccepted by the company‘s Gurgaon LabourUnion and Manesar workers also independently.

S Y Siddiqui, Maruti’s chief operating officer(administration), said the company has signedthe new wage settlement with the workers andthis will be applicable for shop-floor workers atthe Gurgaon and Manesar manufacturingfacilities.

As per the settlement, which is happeningafter three years , the average increment insalary of workers will be about Rs.15,800 and thiswill be spread over a period of three years .Thiscomprises a Rs. 14,800 increment in gross salary, apart from an additional Rs 1000 in an ad hocpayment of Rs 2000 that the company gives toworkers every month .”While 75% of the grosssalary increment will be given in the First year,we will give 12.5% each in the second and thirdyears,” Siddiqui said. As many as 2800 workersin the Gurgaon plant and around 630 in Manesarwill benefit from the wage revision.

The gross salary of an entry level worker atMaruti is Rs. 23000 at present, and the cash inhand comes out at around Rs. 18000. As per thenew wage structure, the average entry levelsalary will increase to Rs 37,800 over the nextthree years.The revision is considered to be veryhealthy, considering that the company had givenan increment of Rs. 9300 in the last such exercisein 2009. “Inflation is a reality we kept in mindwhile working out the new wages,” Siddiquisaid.

The other benefit for the worker include a Rs20000 interest free personal loan. This is alsobeing seen very positively by the workers, whowill have access to ready cash.

Siddiqui said the company has also widenedthe health benefit scheme for the parents of theworkers. “Earlier the parents were coveredunder the medical scheme only when they werestaying with the workers .Under the revisedpolicy, they will be covered under the medicalpolicy even if they are staying elsewhere.Parents of many workers live in villages and thiswill benefit them. However, the annual earningsof the parents should be less than Rs 60000 to beentitled under this benefit.

It is also decided to reduce the training periodfor technicians from three to two years, whilestipulating specialized training courses forthem. Kuldeep Jhangu, general secretary ofMaruti Udyog Kamgar Union (MUKU), said theworkers have accepted it. “We are happy with theprovision and more so since it happened in apeaceful manner.” Manesar plant workers havealso agreed to the wage increase and signedindependent settlements.

Yamaha experiment

Female workers to run scooter assembly line

As a first of its kind initiative in India, Yamaha India has started a newassembly line for scooters which is run entirely by women employees. Companyhas developed scooters for women assembled by women. The company recentlyhired around 200 women to run its assembly line for scooters at the Surajpurplant in UP. This assembly line is run by women to make scooters for women.Through this initiative, Yamaha is not just creating employment for these youngrecruits but is also providing them classroom as well as on-the-job training.These girls will undergo an apprenticeship programme approved by the stategovernment which will last for 3 years wherein they will receive industrialtraining by being on the job.

They will also be appearing for an examination by the Industrial Training Institute (ITI) by the end of each year and after completion of theirterm these girls will be receiving an ITI certification approved by the UPgovernment.

Mr. Roy Kurian, National Business Head, said, "This is the first time inYamaha's history, not only in India but also worldwide, that the company hasstarted an assembly line which is run exclusively by women. Being the pioneersin this movement, Yamaha certainly hopes to see this initiative being replicatedacross the industry."

Govt. mulls changes in labour laws

The government is considering amendments in the minium wages Act,Employees' Provident fund Act, Factories Act and the Building and otherConstruction Workers Act to ensure better working condition for Labourers.After a spell of industrial unrest due to wide difference in wages of permanentand temporary workers, the labour ministry is preparing a cabinet note foramending the contract Labour (Regulation and Abolition) Act to ensure parityin wages, social benefits and improve enforcement.

The labour ministry has send its proposals on a Bill to amend the ContractLabour Act to the cabinet secretariat and views of other ministries are beingcollated. Once cabinet clears the proposal, the bill can be taken up in the wintersession. Though the contract labour Act mandates that temporary workersshould get wages and social security equal to the regular worker for the samekind of work performed, problems occur when the workers are not paid theirdues or exploited in terms of wages, hours of work , etc.

According to a survey conducted by the Indian Staffing Federation (ISF),almost half of contract workers engaged by reputed HR firms get an averagesalary of 5,000-10,000 per month, while 34% of them earn Rs 10,000-15,000 and12% earn over Rs15,000. While most contract workers earn much more than thegovernment -set minimum wage of Rs.115 per day, the salaries are still lowerthan that of regular staff in the formal sector and this goes against the spirit ofthe present law.

Bumper salary increase

Maruti workers fornew wage agreement

Bangalore HR Summit 2012Institute of HRD, will be hosting the Bangalore HR Summit 2012, onDecember 14-15,2012 at Le Meridien, Bangalore, India. In this two daysHR Summit over 250 Human Resource Professionals from India, AsiaPacific, Africa and Middle East Countries are expected to participate anddeliberate on the theme "Transformation of HRM for BusinessExcellence." CEO's and HR Directors of Global companies such asSymphony Teleca, Dr.Reddy's Laboratories, Wells Fargo Bank, WilliamsLea, Mphasis, Leveno, Benetton, Adani Group, KPIT Cummins, AonHewitt etc will be addressing the delegates on a wide range of issuesregarding the theme.


HRNews

Hyundai Motor India, the country'snumber two car maker on 18th Octobersigned its wage settlement agreement,hiking wages by a significant 45%,applicable for three years, over the lastsettlement in 2009 setting the trend forhigher wages to automotive plantworkers in the country even as theindustry is grappling with a slow down.

Hyundai's wage settlement withUnited Union of Hyundai Employeeswill be effective from April 1, 2012 andremain effective until March 31, 2015.

The average hike in Hyundai, is Rs14,283, a month, per worker includingvariable components. This will be splitfor 3 years in the proportion of 40 % inthe first year and 30% for the next twoyears, it is learnt.

Whereas, in case of Maruti Suzuki, itwas Rs 14,341 including conveyancesplit in the ratio of 80% in the first yearand remaining 10% each over thesubsequent two years. Both Maruti andHyundai have other sops for workersincluding housing finance subsidy.

Wage settlement indicates, Hyundai hasincreased fixed pay and reduced thevariable pay (incentive scheme amount)from Rs. 5000 to 3000, guaranteeing morecash to technicians. Taking care of the

welfare of its employees, for medicalinsurance, the employees of Hyundai neednot contribute towards the insurancescheme and the coverage has increased

from Rs 1 lakh to Rs 2.5lakh and for criticalillness up to Rs 6 lakh. The company hasalso increased housing loan interestsubsidy and has enhanced the heat andhazardous allowance and the night shift

allowance. Hyundai employees getcanteen and transportation fundsworth Rs 5000 per month and deductionof Rs 50 per month.

For a capacity of 6.8 lakh cars perannum, Hyundai has manpower of 2007technicians. A 50% hike in wages thisyear, after a 6% hike during the lastsettlement in 2009, with average hike inthe range of about Rs 7,000 spread overthree years. The new salaries may dentMaruti's profitability by 2-3% in short-term and its manpower cost has jumpedby a big margin in recent years.

The added impact of higher wagescould increase its overall costs by 5-8 %,said a Mumbai based analyst with a

brokerage firm. But could not ascertainthe impact of rising wages on Hyundai'smargins.

Hyundai follows suit,increase wages by 45%

Retirements,attrition hammers SBI

employee baseState Bank of India, which has hired over 25,000 in the lastthree years, has seen its overall staff strength fall by 7,500in March 2012 due to a surge in retirements and a 15%attrition among new hires. This has prompted the bank tohire another 10,000 employees by March2013.

According to data released by the Reserve Bank of India,the banking industry has added 42,000 jobs in FY12 takingthe total number of people employed directly in banks pastthe million marks to 10.13 lakh. The only two segments thathave seen a decline are foreign banks, which have seen amarginal drop of 300 jobs, and SBI group where overall staffstrength has fallen by over 3,000. SBI group includes its sixassociate banks which have added employees. On astandalone basis SBI's staff has seen a decline of over 7,000from 2.22 lakh to 2.15 lakh. The reduction in jobs hasresulted in the growth in SBI's wage costs easing to a singledigit. While this has improved ratios, the bank is feeling thecrunch in several branches which are short of staff. Alsothe bank continues to expand to new areas and is findingthe need to continuously hire.

Banks have been finding it difficult to find people insmaller centers because of the preference for cities assalaries and opportunities are higher there. Part of theemployees are lost to the new generation private bankswhich are expanding their operations at a much higherpace compared to public sector banks.

Hyundai Spares Unit removedcontract workers for joining union

The uneasy relationship between auto company and contractworkers has re-surfaced, this time in the industrial corridors ofsriperumbudur, near Chennai. At the receiving end are hundreds ofHyundai car owners whose vehicles are stuck at dealership , for wantof spare parts waiting to be shipped of factory.

Unlike other automobile companies where supply of spare parts ismanaged by the vehicle mgf. Co. itself, Hyundai's spare business isunder sister concern mobis. A few weeks ago, almost its entire staff,nearly all of them contract workers, were suspended from services bythe management after they joined an AIADMK- backed trade unionAnna Thozhir Sangam. With only Skeletal operations currently underway with temp staffers, spare parts shipment from Mobis to Hyundaidealers has come down drastically, hitting customers whose cars arestuck for repairs. Mobis management suspended its 300 plus contractworkers overnight, as they signed up for a trade union. They alsocancelled contracts with their contractor.

Slow on joining bonuses...Most companies are giving joining bonuses a miss or scaling themdown as they look to cut costs. A joining bonus, also known as a signingbonus, is money paid by a company to a prospective employee as anincentive. This can range from 15% to even 100% of the employee'ssalary. "There is a drastic reduction in joining bonus at the mid-level. Atthe lower level, they aren't giving anything even in growing sectors,"said kamal karanth, MD of Kelly Services, an executive hiring firm. Till2011, companies across sectors used joining bonuses as an incentive tolure talent. While the trend started with senior management employees,it gradually trickled down to the middle and lower management andeven freshers over the last decade when growth rates were high. Now,because of the tough economic environment, companies are being morecost prudent. "They usually led to negotiations and companies don'twant to get into complications during the hiring process," said E Balaji,MD of Randstad, a Chennai based staffing firm.


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