Top Banner
FOR PRIVATE CIRCULATION FREE OF CHARGE Vol.1 Issue 2 October 2013 We received very good response from many HR professionals on our Inaugural issue inspiring us to make it more useful with contemporary content. With a view bringing practical aspects of HR we brought an interview between two eminent personalities - Mark Goulston and Xavier Amador. on ‘Overcoming Resistance’. Xavier Amador originated the LEAP Method to learn overcoming resistance. When e requested, Mark Goulston readily consented to use the interview he had with Xavier Amador. It is but very essential for HR professionals to vibe with the same wavelength of CEO’s mind. Today, CEOs are expecting a lot from HR to support them, particularly in tough times. You will find ‘Mind of CEO’ a column on their thoughts, experiences and initiatives on people management during downturn. We have also provided a simple tool to analyze training needs of an individual in behavioural improvement. Apart from having ‘legal Interpretation’, small stories useful in training and tips on listening and training are also given. Some close friends and readers felt the word e-zine is not relevant based on the content produced but it is a capsule. Considering the suggestions received, we call it now as an ‘e-capsule as we intend to have briefs on HR and not lengthy articles to make it easy reading to gain quick insights for practical use. EDITOR VERITAS VOS LIBERABIT IN THIS ISSUE In Box Ps.2 & 3 CEO’s Mind………………………………………P 4 Tool to Guide Training Needs Analysis Ps 5,6,7 & 8 Overcoming Resistance-Practical Tips Ps 10, 11 & 12 Tips for Good Listening P12 Franchisees are not Contractors P14 Small Stories, Tips and Much More… Do you know? Travelling allowance is part of wages for the calculation of gratuity according to a recent judgment of Gujarath High Court. During first year Rs.2100/- p.m During second year…Rs.2400/- p.m During third year……Rs. 2800/- p.m During fourth year…..Rs 3100/- p.m Effective from 27 th September 2013 Vide Govt Of India Gazette Notification No.GSR662(E) Dt. 27-09-2013 STIPEND OF TRADE APRENTICES ENHANCED Editorial…
14

Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

Jul 29, 2020

Download

Documents

dariahiddleston
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

FOR PRIVATE CIRCULATION FREE OF CHARGE

Vol.1 Issue 2 October 2013

We received very good response from many HR professionals on our Inaugural issue inspiring us to make it more useful with contemporary content. With a view bringing practical aspects of HR we brought an interview between two eminent personalities - Mark Goulston and Xavier Amador. on ‘Overcoming Resistance’. Xavier Amador originated the LEAP Method to learn overcoming resistance. When e requested, Mark Goulston readily consented to use the interview he had with Xavier Amador. It is but very essential for HR professionals to vibe with the same wavelength of CEO’s mind. Today, CEOs are expecting a lot from HR to support them, particularly in tough times. You will find ‘Mind of CEO’ a column on their thoughts, experiences and initiatives on people management during downturn. We have also provided a simple tool to analyze training needs of an individual in behavioural improvement. Apart from having ‘legal Interpretation’, small stories useful in training and tips on listening and training are also given. Some close friends and readers felt the word e-zine is not relevant based on the content produced but it is a capsule. Considering the suggestions received, we call it now as an ‘e-capsule as we intend to have briefs on HR and not lengthy articles to make it easy reading to gain quick insights for practical use.

EDITOR

VERITAS VOS LIBERABIT

IN THIS ISSUE In Box Ps.2 & 3 CEO’s Mind………………………………………P 4 Tool to Guide Training Needs Analysis Ps 5,6,7 & 8 Overcoming Resistance-Practical Tips Ps 10, 11 & 12 Tips for Good Listening P12 Franchisees are not Contractors P14

Small Stories, Tips and Much More…

Do you know? Travelling allowance is part of wages for the calculation of gratuity according to a recent judgment of Gujarath High Court.

During first year … Rs.2100/- p.m During second year…Rs.2400/- p.m During third year……Rs. 2800/- p.m During fourth year…..Rs 3100/- p.m

Effective from 27th September 2013 Vide Govt Of India

Gazette Notification No.GSR662(E) Dt. 27-09-2013

STIPEND OF TRADE APRENTICES ENHANCED

Editorial…

Page 2: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

FUTURISTIC HR OUTLOOK - OCTOBER 2013 2

Very good one and useful. Look forward to more and more useful topics for the day is covered. By this you have once again proved your PASSION towards Excellence for the benefit of HR Fraternity.

B Sundararaman

"Futuristic Hr Out Look" has come out well - both from point of view of design/lay out and content. Not surprising as you always want to do things "nothing but Best".

M.H.Sanjeeva Murthy

You are really doing a great job.

N.Pany

Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from you!

Chitra Prasad

It’s a great initiative Very well done.

Sudhanva H N

It is a very good work and excellent presentation from the professional point of view.

Ravichandiran.B

Dear Surendranath, Please accept my heartiest congratulations on bringing out such a fascinating e-magazine on HR. I am sure all professionals will be immensely benefited by this.

Anil Kaushik Chief Editor,Business

Manager-HR magazine

All the best for your effort to educate and share knowledge of HR management.

K.Sivaram Bhat

Thanks Surendranath for the initiative. This is a value adding exercise and would definitely be in the circle.

G. R. Ramanath

The inaugural e- issue looks impressive keeping in mind the variety of tastes you have preserved. We hope your contribution in updating us with the latest knowledge in the field of Human relation, behaviour, engagement etc is of higher importance to all of us. Dhirendra Kumar Thakur

Thank you very much for your venture to share your knowledge with fellow HR Professionals under the name of "Futuristic HR Out Look". The articles are very informative, pragmatic and in tune with the current HR practises. Looking more interesting topics in the subsequent issues. Congratulations for your effort for the cause of HR FRATERNITY.

R.Sekar

Send your mails to

[email protected]

We could not cover the topic HR Competencies in this issue

and the same will be covered in November 2013 issue. - Editor

Page 3: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

FUTURISTIC HR OUTLOOK - OCTOBER 2013 3

Continued from page 2

Your concern and efforts for the benefit of young HR professionals & line managers is highly appreciated. I am sure your news letter will throw light on various issues of statutory compliances, more clarity and practical guidance in understanding & complying with the provisions. Today's young HR professionals are more HR oriented (recruitment, engagement, training & development, R&R, etc.) than core HR subjects like Plant HR related matters, statutory compliances, IR/ER ,union negotiation, conciliation proceedings, etc.

For that matter, we should blame the institutes imparting education in the field of HR barring curriculum on IR/ER, Statutory provisions, etc. Thanks to Maruti union matter which has made the HR fraternity and the institutes to rethink on crucial HR element, i.e. IR/ER and handling of unions. We look forward to your monthly news letter!

Raghavendra Rao B. Kulkarni

Congrats on the initiative.

Sanjay S

It gives me immense pleasure to see your enthusiasm to serve your fellow HR professionals. I think the entire magazine has been very informative and very innovative. The design altogether is fantastic. I am very happy for this rare initiative and would be my privilege to join you in your endeavours’ in the coming days.

Prashanth BK

This is really good one.

Velu Venkatesh

I have gone thru the News letter and it is informative and good.

R. Sudhakar

Sign In By Clicking The Below Link http://in.groups.yahoo.com/group/NulineHR/

OR Download Every Month By Clicking The Below Link

http://nulinehr.weebly.com/futuristic-hr-outlook---ezine.html

Edited and published by Surendranath. A. and circulated electronically. Phone: +91 8050103450 E-mail: [email protected]

“Turning Strengths Into Competencies”

NulineHR

“What a lot we lost when we stopped writing letters. You can't reread a phone call”.

~Liz Carpenter

Page 4: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

FUTURISTIC HR OUTLOOK - OCTOBER 2013 4

Courteousy Business Today. Excerpts from

What I Learnt from Downturn Issue dated January 10 2010

2

Reassess employees. -Kishore Biyani, MD, Pantaloon Retail(India)

Leave no leadership gaps; rework responsibilities to fill up any vaccum. - ‘Kris’-S. Gopla Krishnan

We linked hikes to performance. - Vikram Bakshi, MD, McDonals’s India (North&East)

Greater importance to HR. - Chanda Kocahr, MD & CEO, ICICI Bank Ltd

I met all, 100% of our employees. If you demonstrated your commitment of fair behaviour and employee-centricity at a time when people did not expect you to, I think you will have a competitive advantage in the years ahead. - Vineet Nayar, CEO, HCL Technologies

Cement relations with your employees. - Kiran Karnik, Ex President, NASSCOM

Transparency is a standard operating procedure for communications during a downturn. Your team needs to see you, hear from you and understand your thought process. - L.Brooks Entwistle, Country head & CEO, Goldman Sachs (India) Securities

Make your people feel appreciated and aligned with the organization. - Marten Pieters, MD &

Keep employees abreast of all happenings. - Onkar S. Kanwar, Chairman Apollo Tyres

The first deliberate call we took was not to lay off anybody. But decided to re-skill all surplus workers. - Arun Bharat Ram, Chairnan, SRF

We gave workers option of upgrading skills by participating in our training programs or quitting. - Sudhir Dhingra, C & MD, Orient Craft (Export Oriented Apparel Industry )

Communicate widely and deeply. Managing employee expectations is tough task, especially in a downturn. It helped that Marico employees always had a strong sense of ownership. Treat employees as generals in their own right rather than just hired soldiers. - Harsh Mariwala, C&MD, Matico

Excellence in execution matters more than brilliance in strategy. - G.V.Prasad, Vice Chairman & CEO, Dr. Reddy’s Laboratories

Page 5: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

FUTURISTIC HR OUTLOOK - OCTOBER 2013 5

Normally, training needs are culled out from performance appraisals. When the assessors makes training needs it depends on their perception of the person in general without focusing on the performance of the employee in real time. To facilitate the assessors who are required to make training needs of their direct reportees, a simple tool to be filled by them is given in the next page. This tool is designed to assess behavioural skills only since they are the indicators of competencies. By looking at the existing skill levels and competencies compared to the skills required to meet organizational needs, this tool assists to make an estimate of the training that has to be planned and delivered.

By this process, HR can ensure that Training Needs Analysis is made based

On the observation of behaviours on two aspects of job in a planned manner rather than mere stating on overall opinion of the assessor annually

Please take out prints of the tool (3 sheets make one tool) and distribute to the concerned with a request to use for each individual and return to HR. keeping the busy schedule of Mangers, the tool is simple with only ten questionnaire and plotting of scores in a matrix. This tool may even be attached to performance appraisal form. This is an attempt to bring in objectivity in making training needs analysis rather than allowing simply stating the training needs. This tool may be used only as a guide to analyze training needs but not an assessment of the individual for whom the training needs analysis is being made

Tool To Guide Training and Development Needs of Line Managers & Supervisors For Behavioral (Soft Skills)

Training

Perception – Positive Thinking v. Negative Thinking

You will perhaps have heard this very old story illustrating the difference between positive thinking and negative thinking:

Many years ago two salesmen were sent by a British shoe manufacturer to Africa to investigate and report back on market potential.

The first salesman reported back, "There is no potential here - nobody wears shoes."

The second salesman reported back, "There is massive potential here - nobody wears shoes."

This simple short story provides one of the best examples of how a single situation may be viewed in two quite different ways - negatively or positively

Training Tips for In-Company Training Training has to be either on need based or on management’s requirement across the organization Trainer should have not only domain knowledge of the subject of training but has to be a Certified

Trainer to ensure training delivery to meet standards and also for effectiveness. Work book or Activity book has to be provided during training synchronizing with the presentations as

a part of training delivery Trainer has to discuss with HR and Line Managers before designing the content Post training activities for practice have to be integral part of a training to facilitate transferring the

principles learnt during training. Trainer has to be ready to provide coaching to participants during post training in case Company

requires the same for at least during three months immediately after the training program either by meeting the participants or through e-mails.

Page 6: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

Tool To Guide Training and Development Needs of Line Managers & Supervisors

For Behavioral (Soft Skills) Training

To Be Filled By Immediate Superior

(Take print outs and use separate set of three sheets of this tool for each Line Manager.)

THIS IS NOT AN ASSESSMENT OF THE INDIVIDUAL TO EVALUATE HIS/HER PERFORMANCE AND SHOLUD NOT BE USED TO REWARD OR NOT TO REWARD IN ANY MANNER WHATSOEVER. ALSO THIS TOOL SHOLUD NOT BE USED TO CONDEMN AN INDIVIDUAL BUT TO GET INSIGHT INTO TRAINING NEEDS ONLY

Below is a list of statements. Read each one carefully, then, using the following scale, decide the extent to which it actually applies to the Line Manager in your mind.

For best results, answer as truthfully as possible.

never sometimes always

0 1 2 3 4 5

Name of the Line Manager Requiring Training

1______ Motivates employees to get the work done to achieve set targets.

2_______Admits mistakes.

3_______Understands emotions of employees.

4_______ Ready to learn new management concepts.

5_______ Independently handles employee grievances.

6_______ Quick to adapt to change. 7_______ Resolves - workplace conflicts of day-to-day work quickly without taking assistance from higher-ups or. HR. 8_______ Realizes own weaknesses. 9_______ Effectively seeks employees’ commitment to get expected performance from them.

10______ Helps team members.

FUTURISTIC HR OUTLOOK - OCTOBER 2013 6

Page 7: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

Scoring Section

After completing the Questionnaire, transfer your answers to the spaces below:

Knowledge of Human Behavior

Question

1.______

3.______

5.______

7.______

9.______

TOTAL ________

X 0.2 = ________

(multiple the Total by 0.2 to get your final score)

Attitude

Question

2.______

4.______

6.______

8.______

10.______

TOTAL ________

X 0.2 ________

(multiple the Total by 0.2 to get your final score)

Note: Where the score is “2.5” it has to be taken as “3” for plotting the graph in the matrix on the next sheet. This applies to both factors above.

FUTURISTIC HR OUTLOOK - OCTOBER 2013 7

Page 8: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

MATRIX SECTION

Plot your final scores on the graph below by drawing a horizontal line from the approximate “Knowledge Of Human Behavior” score on the vertical axis to the right of the matrix, and drawing a vertical line from the approximate “Attitude” score on the horizontal axis to the top of the matrix. Then, draw two lines from each dot until they intersect. The area of intersection is the training need that you assessed.

Behavioral (Soft Skills) Training and Development Assessment Matrix

Training and Development Needs Identified for Mr/Ms

Note: The readers of “Futuristic HR Outlook” may use it freely in their organizations to analyze training needs of their Line Managers and Supervisors. Trainers may also use it freely in their training programs with due acknowledgement on the tool “Designed By Surendranath. A who can be reached through e-mail: [email protected]

Requires Advance Training In

New Management Concepts

Training To Develop Competencies

Also Provide Challenging

Environment Provide Opportunity

For Growth

Requires Training In Understanding Human

Behaviour, Leadership & People

Skills

Requires Training In Understanding

Human Behaviour Leadership & People

Skills Positive Attitude Adapting to Change

Requires Training In Self

Development Positive

Attitude Adapting to

Change

5

1

1 5

ATTITUDE

2 3 4

2

3

KNOWLEDGE OF

HUMAN BEHAVIOR.

4

FUTURISTIC HR OUTLOOK - OCTOBER 2013 8

Page 9: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

FUTURISTIC HR OUTLOOK - OCTOBER 2013 9

BENGALURU

Internationally certified behavioural analyst and Certified Management Trainer. Surendranath.A will design and deliver the programs customizing to the needs of the

organization.

www.nulinehr.weebly.com Call Us: +918050103450

Offers

People Skills For New Supervisors/Managers Influencing Employees Leadership Skills Change Management Skills for Line Managers Coaching Skills Giving Feedback Skills for Presenting Officer Role of Line Managers in Discipline & Industrial Relations

HR Skills for Line Managers

In Company Programs For Line Managers

Page 10: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

FUTURISTIC HR OUTLOOK - OCTOBER 2013 10

Although many managers and leaders are under pressure to get things done quickly, pressuring subordinates frequently leads to resistance. This is not due to stubbornness as much as it is due those subordinates simply feeling overwhelmed by the volume of work they have. Emotions also come into play; for instance, if you’re trying to get through to an irate customer or shareholder, it can be tough to break through the resistance their anger creates. To get some tips on how to overcome resistance I reached out to Xavier Amador, originator of the LEAP Method (LEAP stands for Listen-Empathize-Agree-Partner) and Founder of the LEAP Institute and author of I’m Right, You’re Wrong, Now What? Break the Impasse and Get What You Need. MG: Dr. Amador, or shall I call you, Xavier, how did you come up with the idea that we needed a more effective way of overcoming resistance than the usual pushy/persuasive approach? XA: Mark please call me Xavier. Okay if I call you Mark? MG: Of course! XA: Before answering your question, I want to point out something that just

happened. By asking me I prefer you call me by, you took a step toward connecting with me and not creating resistance — You did this before we were even out of the gate! I practice the same simple habit with almost everyone. Without asking, you didn’t know if I would find “Dr. Amador” too formal and distancing, or “Xavier” too presumptuous and disrespectful. Either reaction would have raised a little resistance. And the fact that you pronounced my name correctly — “Javier” instead of “Zavier” — helped too. You obviously took the trouble to find out, or saw me speaking, and remembered the pronunciation. So without hearing one word from me you were already listening. And that’s the cornerstone to lowering resistances. Now to your question: I would love to say the idea was mine, but it’s actually ancient wisdom and the result of paying attention to what actually works. The lesson learned is: You don’t win on the strength of your argument. You win on the strength of your relationship. And you can strengthen relationships in seconds and easily by putting down your rusty overused communication tools and picking up some new ones. Feedback from thousands of LEAP followers who are owners, CEO’s, managers and sales reps reinforced the

Practical Tips for Overcoming Resistance by Mark Goulston

Mark Goulston, M.D., F.A.P.A. is a business psychiatrist, executive consultant, keynote speaker and co-founder of Heartfelt Leadership. He is the author of Just Listen and co-author of Real Influence: Persuade Without Pushing and Gain Without Giving In (Amacom, 2013).

ACKNOWLEDGEMENTS Mark Goulston originally

published his interview in HBR Blog.

When we contacted him for permission to use it in our e-capsule, he readily gave his consent and we thank him immensely for his gesture and permission to use it in this issue. He recollected his memories visiting Bangalore and we reproduce his words: “Thank you. I spoke in Bangalore in October 2011 and loved visiting India and your city. Namaste, Mark”

Page 11: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

FUTURISTIC HR OUTLOOK - OCTOBER 2013 11

universality of this vital lesson I learned years ago working with psychotic patients who were literally living in an alternate universe: it feels [like] “What planet is he on?” when someone gives us a reflexive no and resists what is obviously common sense. You never win on the strength of your argument — or your negatively perceived directive if you are the one holding power in the relationship. Even if your subordinate does what you wanted, the initial resistance will fester and spread as they implement the details. If it was pushed down their throats, instead of something they felt some ownership of, they will resist and] it will come back to bite you later. What we hear over and over again is this: When I stopped trying to convince her and instead focused on listening to his point of view and respecting it, the resistance just disappeared. It happened so fast it felt like magic!” MG: Why do so many people especially managers and leaders approach resistance in such an ineffective manner? XA: Because its natural to punch back. It’s a lifelong habit most people have. We repeat ourselves, often more loudly and over and over again, when someone hasn’t heard or doesn’t agree. When I have a good idea, a solution to a problem, or a

product/service I know will increase market penetration, I am eager to communicate it to the other person or group. And when I get resistance, it feels like I’ve been pushed back or hit. And so the reflex is to push or hit back — to counter punch in an effort to show the other side why they were wrong. The reflex is to stand my ground. This type of interaction looks just like a boxing match. Using LEAP we’ve learned you can stand your ground without verbally hitting back. Here’s the first and most important tool: When you get resistance, [say to yourself], “Shut up, listen and win!” That’s what I say to myself to remember to use the tools I know work. “Shut up” may sound rude and counter productive, but for me it’s a splash of cold water. It gets my attention so I can stop dismantling and start using my authority to build stronger relationships. That’s the prize, a strong relationship. Strong relationships are the key to meaningful and effective partners and work relationships. Nothing else comes close to being as important. No productive business can exist without strong relationships — think about it. And yet, too often, we ignore the “state of the union” while resistance, defensiveness and even tempers are on the rise.

Now that you’ve stopped talking, to show you listened, repeat back what you’ve heard “So you don’t think this will work and it’s a bad idea because…. Did I get that right?” Just listen and make sure you’ve heard it the way the other person meant it. Then explore just a little bit more. Go for the emotion behind the push back. Empathize. [Say something like,] “Now that I understand your position, I can see why you would be uneasy buying in.” Take the resistance that is negative energy and use it, by absorbing it, so the person feels respected and safe, lowers their defenses, and as a result opens up to you. In this exchange, instead of boxing, the verbal interaction looks more like Jujitsu. You meet the resistance, not with a push or punch but instead with open hands. As the person comes at you with their resistance, with open hands you step aside and embrace the negative movement, use its energy, to move the person where you want them. MG: What would you say to those who may feel that “lowering their guards” and leading with “open hands” will undermine their authority? XA: Well first I would listen to their resistance and

Page 12: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

FUTURISTIC HR OUTLOOK - OCTOBER 2013 12

lower it by communicating my genuine understanding and empathy for it. With authority comes strength. You can use that strength to strengthen the relationship or to strong-arm the other person and create a resistance movement in your own backyard. You have the luxury of being able to speak softly knowing that you are the one carrying a much bigger stick. Here’s a life and death example of this principle. LEAP-trained hostage negotiators have far superior firepower when they’ve cornered the person they’re trying to persuade, but they approach their subject with an open ear and open hands “Talk to me, tell me what you want?” is what works to engage someone who has taken hostages, and to convince them to release their hostages and come with you peacefully. “Come out with your hands up we have you surrounded and out-gunned,” leads to a fire fight. Don’t help others hold your ideas, proposals and directives hostage with their resistance by opening fire. MG: I don’t know if this is an example of Partnering with you, or just showing good manners, but Xavier I’d like to give you the final word. Do you have a quote or statement that will help remind our readers of the importance of LEAPing better communication rather than jumping down people’s throats when they are resistant?

XA: I will repeat myself because the following two things are that important. First, if you are getting push-back, shut up, listen and win. And second, remember when you are faced with resistance you never win on the strength of your argument, you win on the strength of your relationship. One final word, I hope your readers will let me know if our conversation helped them by contacting me at [email protected]. Thanks Mark for the opportunity to have this conversation

Listening means – hearing, interpreting, evaluating

and responding. Be poised and emotionally controlled Never lose temper – Listen coolly – Let off the steam Listen attentively with out interrupting Make regular eye contact Show concern by acknowledging the other person’s

feelings Seek first to understand and then to be understood React non-verbally with a smile or nod or touch if

appropriate Ask objective questions for clarification See other person’s point of view Stick to the subject – do not divert or change the

subject with out telling Be patient Pay close attention and do not let your mind wander Express your point of view Explain why

Compiled By: Surendranath.A

Page 13: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

FUTURISTIC HR OUTLOOK - OCTOBER 2013 13 13

Page 14: Editorial…...M.H.Sanjeeva Murthy You are really doing a great job. N.Pany Congratulations on your Inaugural Issue. Article is fantastic and hope to see more article in future from

FUTURISTIC HR OUTLOOK - OCTOBER 2013

Often a question arises whether ‘franchisees’ are ‘contractors’ and the company offered franchisee becomes ‘principal employer’ and liable for compliance of labour laws for the failure on the part of franchisees. This question repeatedly arose because of EPFO asking franchisee companies to pay PF for its employees during infancy period since they are contractors for the company which asked them to manufacture their products. Division Bench of Delhi High Court in the case of in Poona Bottling Co. Ltd. and another vs. Union of India and the judgment is reported in 1981 ELT 389 held on consideration of the terms of Franchise Agreement that the imposition of various restrictions on the petitioner company under the Franchise Agreement on buying the essence for the beverages, like maintenance of records, chemical tests, sale and distribution of beverages, types of bottles or crowns to be used, control over retail franchise, company's right of inspection, were merely to safeguard the

trade interests and cannot lead to the conclusion that the bottling companies are manufacturing for or on behalf of the Parle (Exports) Pvt. Ltd where Parle (Exports) had given franchise to Poonam Bottling. Referring to the above judgment in Parle Beverages (P) Ltd. vs. Union of India and others (1982 ELT 142 (Bombay)), the Bombay High Court had an occasion to consider the very same issue, wherein M/s.Parle Beverages (P) Ltd. had entered into a franchise agreement and agreed with the view taken by the Division Bench of Delhi High. Further, Bombay High Court observed that it is to be seen from the franchise agreement that except supplying the raw material and for establishing the unit as per its specification, M/s.Parle (Exports) Pvt. Ltd. has no control over the management and employment of the franchisee company. Similar views have also been taken by the by the

Andhra Pradesh High Court in the judgment reported in 1991 (62) FLR 627 (Karachi Bakery vs. Regional Provident Fund..).and by the Rajasthan High Court in the judgment reported in 2007 (11) FLR 394 (Regional Provident Fund Commissioner (The) and Anr. vs. Moti Warping Factory. Even in the year 2011, Madras High Court in the case of regional Provident Fund Commissioner and M/S Prabaha Beverages Pvt Ltd took similar view and dismissed the appeal of Regional PF Commissioner, Tamil Nadu., Tirunalveli. From the above judgments we can easily conclude that the franchisee companies are separate entities having their control and supervision for the manufacturing activity in different geographical locations are not ‘contractors’ and as such no labour law applicable to contractors will apply to them and the company who leases their products to be manufactured under a franchisee agreement are not ‘principal employers’ to the franchisee company. These two companies are separate entities and they are responsible for compliance of labour laws as applicable to them independently

Legal Interpretation Franchisees Are Not

Contractors - SURENDRANATH.A

14

“To know the laws is not to memorize their letter but to grasp their full force and meaning”.

-Marcus Tullius Cicero