That which has intellect and emotion

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Surrogate HR creates a 'minuscule' space in the time-space dimension where mind receives diverse experiences, feelings and emotions beyond intellect…

Transcript of That which has intellect and emotion

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In the present unprecedented volatility of business environment theneed to develop future leaders possessing a variety of diversecapabilities to handle tomorrow issues has gained importance.To fulfill

the need through various approaches, mentoring intervention is one. It isunfortunate that in many Indian organisations either there has been a lackof focus on it or it is misplaced with coaching at work place. The questioncomes; do organisations really understand this function and ready to takeadvantage out of it?

Though, there is silver line difference and much similarity betweencoaching and mentoring, the later is long term & more relational involvingemotional bonding. It is something more than one learns in coaching. It isa journey from learning functional skills to develop a positive mentalattitude, enhance personal aptitude and getting inspiration - thusachieving holistic development. It is also targeted to psychologicalfunction. It is hand holding. It is like keeping the mentee under wings.Mentoring is somewhere on a higher pedal than coaching.

Placing a well structured mentoring program in the organisations wherenow flat structures are favoured, it is indeed a challenge for leaders to donthe mentorship mantle in addition to their existing roles.

Finding a mentor, making a match and ensuring that program goes well isanother tough challenge, HR faces in the organization. It is not onlyknowledge and skills transferring program from senior to junior but theexperience - the application of that knowledge is the most importantcomponent where mentor can illustrate how specific learning transfers toreal life experiences at work place. Mentor should have tremendous powerto mould the thought process of the mentee to develop personal as well asfunctional competencies.

Every leader in the organization has to have mentorship qualities. It isbasically a C.E.O. driven HR initiative. We need to ask if our organization isready for mentorship because nothing best can be achieved in terms ofcareer development plan of talented employees and leadership qualitiesexcept through mentoring intervention.What is required is to understandand accept this function in right perspective.

This issue cover feature is about understanding the DNA of this initiative,importance, issues and next level of mentoring.

Happy Reading!

Guru - Shishyaequation

Anil Kaushik

Editor’s Note

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Contemporary Cover Story on ‘creating value through HR’has been very lucidly focused on a burningissue. The earlier the better organisationsunderstand the importance of Humanpower not in terms of words but spirit also.The problem is that we talk too much & toohigh about our people but when it comes toground zero reality, it is the one only who istreated like commodity.

All efforts should be made towardsdeveloping our employees in a culture andenvironment that motivates them to delivertrue value to business and brand as a whole.It will happen only when employees viewtheir work something more than merelyselling their knowledge and functional skillsfor salary. HR has to step in here to changethis mind set and bring transformation. It isnot only HR but all employees should viewthe stake holders from an unique andpowerful prespective.

A.N. Mohanty, Mumbai

Diligent workMarch issue has come out very well and isevidence of much diligent work. I wish youa long and impactful future.

Dr. Vinayshil Gautam, New Delhi

CognitiveReally a wonderful cover story. Read twice. Ithas covered all related aspects. Expertsviews are insightful and thought provoking.Especially Tanvi Gautam’s writing iscognitive. Her perception and thoughtclarity compels to cogitate . I felt likereading again and again. It has really comeout as a collectors issue. What has been thespeciality of not only this cover storybut thewhole issue is the simple to understandlanguage used by authors. I got connectedwith every article of the magazine. My allbest wishes to your team. Hope everyforthcoming issue will act as a guide andhand book for managers, students andprofessionals alike.

V.M. Patil, Aurangabad

ComprehensiveCompliments on placing such a richcontents magzine. It empowers managerslike me with practical tips on managing theworkforce which is a hard pressed need of

today. The various sections of the magazinecomprehensively give me a glimpse of allthat require to meet HR challenges. Bookreview is very interesting column whichhelps professionals to get to know about newbooks.

Mridula Roy, Gurgaon

Supari TrainerD.N.B. Singh has very candidly sketched theskeleton of training business. I fully agreewith his bold and true assesment. It istrainer who has to take the responsibility toclean up the mess. Unless HR is capable ofputting in place a mechanism of measuringthe transfer of learning through training, itwill be a HR betrayal.

V.L. Murthy, Ahemdabad

Mature ContentsIt just happened to visit your site. I could notrestrain myself from requesting you to senda trial copy. Very promptly I got a responseand got the copy too. It is credible. Amagzine with such mature contents awayfrom glittering colours confusion. The sheerrange of isues covered by knowledgeableprofessionals is amazing. I am at fag end ofthe professional career but this magzine hasinspired me to work with fresh thoughts.Keep up this good work. Our profession hasnever got such a good magzine.

V.K. Gupta, Noida

Need to move in In March issue, the article 'Moving to cornercabin' is worth reading. I often view that it isthe responsibility of a HR head to practice5R concept, viz. resourcing, recruiting,retaining, retraining and restructuring.

HR has full productivity anytime but itsefficiency goes futile if retention is notaddressed. Many employee issues are boss-subordinate related and appear latent inevery company. Some issues only reach theHR desk while others dampen. Cabin oropen cubicle, wherever he sits, it's time torestructure the role of HR in organisationsbecause what is spoken high of HR is notexperienced in reality.

Dr. V.R.K. Prasad was formerly the head ofICFAI University press. It's nice to read hisarticle after a long time.

S.Chandrasekar, Chennai

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

Readers Response

2 Business Manager April 2012

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With opening essay by Dr. C.N.Daftuar onthe subject, Aparna Sharma, Dr. TanviGautam, Poonam Sharma, Rohit Rajput &Dr. A.Jagan Mohan Reddy unfold hiddentruths of this instrument by sharing theirexperience and explain the trends anddimensions...

Chief Editor ANIL KAUSHIK

Associate Editor Anjana Anil

Hon'y Editorial Board Dr. T.V. Rao,Dr. Rajen Mehrotra,Dr. V.P. Singh,H. L. Kumar

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

Hon'y Co-ordinators Dr. D.N. Singh- [email protected]

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Indranil Banerjee- [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 articlespublished in Business Manager are those of

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Publishers do not own any responsibility forthe losses or damages caused to any one dueto such ommissions or errors.

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Published on 1st of Every Month

April2012Vol. 14No. 10

Inside

Business Manager April 2012 3

What makes you a Mentor?

Mentor- Protégés in Hindu Mythology

Making Mentoring MemorableMentoring 2.0: Taking mentoring to the next levelBeing patient & building trust...A Process of choice & act of volition..

Experts’ View

Aparna Sharma Dr.Tanvi Gautam Poonam Sharma Rohit Rajput

Dr.C.N Daftuar Dr.A.Jagan Mohan Reddy

pg. 12

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pg. 40

pg. 42

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.

pg. 61HR News

pg. 35

pg. 34

Govt.Notifications

pg. 33

Corporates towards Green EraNow a days there is an immense pressure on employers formore climate-friendly products & services. A relevant focusshould be placed on jobs and organizational design. HR canwork collaboratively with the employees.

An article by Dr. Jaya Bhalla.

pg. 9

HR’s Next : Talent, Operation &Event ManagementThe present scenario of Entrepreneurs are looking HR worldalways be on T.O.E. that is Talent, Operation and EventManagement these are the key aspects to develop theproductivity in the organizational culture .

An article by P.B.S. KUMAR.

pg. 52

Trade Unions : Guardians oflabour aristocracyIn their effort to buy unions, most management fails tocomprehend the real reasons behind workers going on strikes.The primary reason for continuing strikes is the trust deficitbetween the management and workers. In its drive to matchsales targets, it forgets to factor in their interest.

An article by H.L. Kumar.

pg. 54

pg. 56

Event Report

Of Trust DeficitIn service jurisprudence if the event of loss of confidence hasoccurred, no measures can build it again or be regained it.Although in other fields of relationship, we talk of "confidencebuilding measures".

An article by P.C. Chaturvedi.

pg. 5

Workforce Planning For PerfectTomorrowWorkforce Planning is a tool which provides management withan opportunity to anticipate the future events before hand andplan accordingly, rather than getting surprised by it at the timewhen these events actually crops up.Therefore, it shouldcertainly be given the necessary attention well on time.

An article by Deepti Pande.

Inside

4 Business Manager April 2012

7th International Conference on

IT Applications andManagement

pg. 57

Case StudySustainability in Competitive TimesThe case traces the success story of PIP and highlights its growth from a smalldomestic player to an international player. Changing micro environment,Government policies, and competition and growth opportunities led thecompany to go into new sectors of turnkey manufacturing projects in a plannedmanner.The case gives an overview of change management, strategic decisionmaking, market adaptation, project management and innovation.

That which has intellectand emotionSurrogate HR creates a 'minuscule' space in the time-space dimension wheremind receives diverseexperiences, feelingsand emotions beyondintellect…

By Chinmoy Sarkar

Surrogate HR

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Deepti Pande

Workforce planning (WFP) proves to be a valuable assistancewhile deploying the right employee at the right place. Itadvocates building long term strategies for acquiring,developing and retaining skilled, committed and well

motivated talent to achieve programmed organizational goals. There aresome sets of questions which need answers while moving forward withWFP. A few of them are:

What are our future business needs (goal)?Given the work plan, how will we attain that?Do we have enough skill sets?What other skill sets do we require?

The answers to the above mentioned questions provide a base forbuilding the long term strategies for workforce planning. Anorganization cannot effectuate Workforce Planning in a day. Rather it isa group effort which requires several days of extensive planning. Itrequires managers to gather variety of relevant information fromdifferent intrinsic and extrinsic sources. In fact, effectiveness of thisexercise highly depends upon the reliability of the information sourcesand accuracy of the information. It also requires ongoing review and re-adjustments, if required. Therefore, while developing a workforce planthere is an extensive involvement of managers, employees andstakeholders to let them get educated and prepared about the plans and itsfuture impacts. Involving people proves to be an important highlight ofWFP as it promotes:

Stakeholders' awareness and attentionReinforced participationStimulating stakeholders' thought process in the direction of the planProvoking maximum idea generationFeeling of synergy, ownership and accountability Stakeholders' approvals, disagreement and proposals

Employee engagement should be the backbone of any effectiveplanning process for evading the disastrous consequences of planningfailure. In the words of Dr. William Cohen (Lessons from Peter Drucker):

"An Engaged worker is one who is committed to contribute to theorganization and is willing to exert extraordinary effort in accomplishingtasks important to the achievement of organizational goals."

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Workforce PlanningFor Perfect Tomorrow

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

In today's employee oriented corporateculture, it is very much apparent thatemployees' agility, skills flexibility,moral and attitudes are directlyproportional to organizationalproductivity and profitability.

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Workforce planning does not have a"universally accepted" model. All organizationshave their own WFP models which is more or lessalike except their changed terminologies. Allmodels end up comprehensively in identifying thecompetency gaps or surplus by comparing thepresent workforce competence (expertise) andforecasting the competencies needed in future.Thereafter the management plans accordingly tobuild up the workforce required for the futureproject, making sure that the objective of theirrespective workforce planning model is met. WFPnot only ensures that the organization at all timeshas right number of people but also that:

a. Valuable skills and talent resides within theorganization for a long time.

b. The organization continues to focus onrecruiting, developing and retaining such talentin future.

Why is Workforce planning pivotal?

Productive employees are the key assets ownedby any organization and therefore it is a majorrequirement to align their productivity to theorganization's strategic goals for achievingmaximum returns. Planning for the workforceacts in the same way as lubrication works for amachine. Like a machine gets jammed when it isnot properly oiled, similarly an organization andits success can get wedged and stuck with the lackof proper planning. Workforce planning works asa lubricator for the smooth functioning of theorganization. It is a systematic process that linksthe human resources with the goals and strategiesof the organization. It demands the analysis of thecurrent workforce, apprehending the external andinternal business environment and aligning theformer with the later keeping in mind theemployees' skills and talent. It also helps inensuring that the organization possesses agile andcapable workforce even in future, hence avoidingbusiness risks due to insufficient and unskilledtalent.

WFP is a methodological and integrated long-term process that is developed keeping in mindthe business goals. Senior executives emphasizeWFP just to pre-plan for increasing the firm'sviability in the market and reducing overheads sothat it can sustain in the present or futureeconomic certainties as well as breakdowns. Bymaking a workforce plan, they also try to makesure that the vacancies are not left ignored for alonger period of time. In addition, planning alsohelps in framing a clear picture of the futureorganizational expenditure as a result of

restructuring, recruiting, training anddevelopment, therefore making it easier for themanagement to make decisions pertaining toworkforce that are based on organization mission,vision, budgets and strategies.

Pre-requisites for WFPAny organizational planning is only effective if

it gets a favorable environment for itsdevelopment and execution. Similarly, there arecertain nuts and bolts for the successfuldevelopment of workforce plan and its effectiveimplementation. Some of them are:

1. Top Management commitment

2. Management support

3. Continuous motivation

4. Professional approach

5. Effective documentation

6. Effective communication and co-ordination

7. Role clarity of the people involved

8. Availability of required resources

9. Expert's Feedback and control

10. Shared Accountability at all levels ofmanagement

Workforce Planning- It's ProcessThe overall idea behind the development and

implementation of a workforce plan is to take thestrategic thinking to a higher level where it can betransformed into tangible action plans. Theseplans can then be materialized for improvedorganizational growth, training processes andstrengthened workforce for timelyaccomplishment of the set targets and goals.Although WFP (Workforce Planning) models ofdifferent organizations vary as per the respectiveorganizational needs, but still the process is moreor less alike. In general, all models of WFP includethe following steps:

1. Analyzing the strategic direction: The firststep of WFP is very much similar to a strategicplanning process. It works like a roadmap forreaching the desired destination. It requiresengaging the organizational leaders to brainstormthe strategies, goals, mission and vision of theorganization and the skill sets required for theachieving the same. It demands for identifying thosebusiness operations that requires extensive humancapital involvement. Figuring this out is necessary inorder to understand the amount of workforce neededin future and the ways to develop their requiredskills. Along with the internal environment,managers are also required to understand thepolitical, legislative and economic environment in

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Workforce Planning For Perfect Tomorrow

PROCESS1. ANALYZING THE STRATEGIC DIRECTION

2. HUMAN CAPITAL OR WORKFORCE ANALYSIS

3. STRATEGIZING AND IMPLEMENTING

4. EVALUATING AND MONITORING

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which the organization has to function. Also, itexpects the managers to be aware of the time limitsthat the management has to adhere foraccomplishing the targets. For this, they are requiredto schedule a time frame and identify up to whatextent it is flexible or inflexible. Precisely, this stepgives answers to the strategic questions like:

a. Where is the organization heading towards?

b. How do the organizational leaders plan to reachthere?

c. Do the leaders have right resources for attainingthe desired targets?

d. If not, then how are they planning to acquirethose needed resources?

One of the main ideas of going through thisparticular episode is to make sure that theorganization owns substantial resources toaccomplish its mission and goals to the highestpossible level. There are majorly two pre-requisites in undergoing this phase:

a. All the processes involved should be well-documented, systematic and properlyevaluated.

b. The senior leaders should be engaged forproviding enlightenment on the strategies andgoals to the core planning team.

2. Human Capital or Workforce analysis:Workforce analysis incorporates analyzing theworkforce inventory that currently exist and toforecast those which are needed in future. Thisanalysis should be based upon the businessfunctions and roles that have been identified inthe first step. A very practical approach towardsfiguring it out is to do a Demand analysis, Supplyanalysis and subsequently, a Gap Analysis.

Demand analysis identifies the anticipatedworkloads, future opportunities andenvironmental factors. It helps in:

a. Identifying the customers' future expectations.b. Figuring out the basic characteristics of the

existing and upcoming jobs.c. Identifying the amount of workforce that these

jobs demand.

d. Listing the current vacancies and the KSA's(Knowledge, Skills and Abilities) required forfilling them up.

e. Making proper Job Description and JobSpecification.

Supply analysis is the identification of theexisting human capital to satisfy the demand. Thisanalysis is done to evaluate the skills, abilities andtalent that prevail in the existing workforce. Italso incorporates determining the prospectiveemployee turnover rate based upon the previousyears' data and trends. It generally involves:

a. Figuring out the current and future workforcepool.

b. Creating a profile of the employees at eachorganizational level.

c. Employees' demographics.

d. Identifying employee turnover rate andretirements.

e. Identifying those resources that can beoutsourced.

Gap Analysis focuses on the discrepancybetween the demand and the supply. It can be aGap or a Surplus between the targeted and thereal. It specifically does three kinds of analysis:

a. Identifying the gap i.e. workforce and theirskills which are required in comparison to thepresent supply. In other words, figuring out thenumber of employees, skills and abilitiesrequired over and above the present workforce.

b. Identifying the surplus i.e. those excess skillswhich are not needed and requires needful action.In other words, identifying those skills which areextra and more than the required number.

c. Identifying the areas where seniormanagement interference is required foraccomplishing the goals.

It also attempts to furnish the answers to thefollowing questions:

a. Which new roles are required?

b. What new skills are required for performingthose roles?

c. How many employees possessing those skills arerequired?

d. How many leaders are required?

In this stage of WFP, there is a great need foraccumulating and documenting the relevantinformation from the various sources of theorganization. The effectiveness of this analysishighly depends upon two major factors. First, thatthe information is true and the sources arereliable, and secondly, that the long termpredictions made by the workforce analysts arefairly accurate. If these two conditions arefulfilled, only then this analytical phase of theWFP can be considered as successful.

3. Strategizing and Implementing: Once thegaps in the competencies are recognized, the nextstep is to make strategies towards filling those gaps.These gaps can be filled by the means of devisingprograms, policies and actions addressing the skillshortage or surplus. It works in two ways. First, itaddresses those skills which are short and needs tobe acquired by different ways like recruiting,succession planning, training, or outsourcing.Secondly, making policies to disengage the surplusskills or employees that are redundant and no longerrequired in the organization. This can be done byreducing the number of employees either byterminating, attrition, job sharing etc. It isimportant to take care of the gaps well on time

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Workforce Planning For Perfect Tomorrow

It is an underlying fact that the salaries and benefits given to the employees contribute a significantportion of the budgetary allocation of the organization.Therefore, for achieving maximum returns,effective recruitment, proper induction, training and retention of the real talent is a must. Also, it is

important to judiciously place the employee(s) at the right place as per need.

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before it becomes a major impediment for thesmooth functioning of the organization. One moreimportant point to be taken care of is that thepolicies and the programs made should be reviewed,validated and approved by the senior management.

After recognizing the measures for dealingwith the shortage or surplus, these policies andprocedures needs to be implemented effectively. Itshould be well communicated and explained to therelevant staff. Effective communication is the keyfor an accurate interpretation of the plan by thestaff members. Additionally, the time frameassociated with the accomplishment of the targetsshould also be well elucidated to the employees. Itis to be taken into consideration that anyemployee will automatically be interested inadopting new policies and procedure if heunderstands the benefits related to the improvedpolicies. If the employee understands that how theorganization will perform better if the advancedpolicies and plans are adopted, they definitely willaccept that change enthusiastically. Therefore, itis really necessary for the management tomotivate the employees by making themunderstand the underlying advantages ofadopting new plans and procedures.

4. Evaluating and Monitoring: The final andimperative phase in the development andimplementation of the Workforce Plan is the post-implementation evaluation and assessment of itspositive and negative repercussions. A team ofspecialist should be assigned for monitoring theaftermath of the implementation. These expertsalso provide continuous feedback on any furtherimprovements, if required, in the strategies or itsexecution. There should be a set time frame inwhich the plan should frequently be reviewedbiannually or annually, whatever is suitable.Setting benchmarks is also a good idea for keepinga continuous check on the performance of the planand to acknowledge the difference. Monitoring theplan after implementation is a crucial componentof WFP to ensure the non-occurrence of anyunanticipated event which can be detrimental tothe productiveness of the overall plan andsubsequently the welfare of the organization.

Workforce Planning- Examplesfrom CorporateOracle's Hyperion Workforce Planning

We all know by now that planning andbudgeting is one of the most time and resourcetaking process. It involves manual interventionsand circulation of numerous spreadsheets acrossbusiness. Moreover at the time of any unexpectedchange in the midway of the planning process,extensive rework gets on the nerves of the staffinvolved. To evade this muddle, Oracle introducedOracle's Hyperion Workforce Planning, softwarethat helps streamlining the enterprise wideplanning and budgeting process and eliminatingthe dependency on spreadsheets. It is a Web and

Microsoft Office (Excel, PowerPoint, Word andOutlook) based planning and forecasting toolwhich integrates the strategic and financialplanning process. It caters to all workforceplanning requirements of the business and haspre-fabricated functions that are ready to use. Thissoftware aims at simplifying the planning processinvolved in enterprise budgeting like head count,salary, compensation, overtime etc. It makes theplanning of workforce and related expenses muchfaster and easier, improves forecast accuracy,shortens the planning cycle thereby reducing themanual error and time consumed.

IBM-WEO(Workforce Evolution and Optimization)

According to IBM, efficient workforcemanagement is a fundamental towardsstreamlining the operations and diminishing thecosts involved in it. IBM believes that in today'sglobal competitive market there is a growing needof the tools to forecast workforce demand andsupply, addressing the skill gaps/surplus,workforce evolution and strategic planning. Forthis purpose, IBM has developed a methodologyIBM Workforce Evolution and Optimization(WEO). This methodology analyses the firm'shistorical as well as present workforce dynamicsincluding activities like hiring, exits, promotions,transfers etc. thereby facilitating in forecastingthe future workforce requirements based uponthose trends, using the probability calculations.Moreover, it assists the firm in making decisionspertaining to staffing and integrates those with itsbusiness objectives. It provides answers to all thepossible "what-ifs" and extends guidance inmaking strategic decisions.

IBM OptimatchIBM has also developed a tool IBM Optimatch

which is specifically designed to match therequirements of a given job to the experience andskill sets of a prospective candidate. IBM also usedthis tool successfully in one of its internal unit.This tool can handle hundreds of jobs andcandidates at a time and can match optimally even ifthe data in the resume or job description is highlyunstructured. Workforce Planning (WFP) isunarguably one of the most important episodes thatany organization undergoes and is thought uponwill all seriousness even by the most successfulorganizations of the present times. Companiesthose who fail to develop and implement properworkforce plans openly projects themselves to a riskof organizational collapse due to a lackadaisicaland confused workforce. Investing resources onemployees and planning for them certainly provesto be a judicious decision on the part of theorganization which delivers tremendous returns inthe future. Although workforce planning is a littlemeticulous and a time taking process, but looking atthe advantages that it rewards, it definitely deservesthe required attention.

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Workforce Planning For Perfect Tomorrow

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

BM

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P.B.S. KUMAR

Manager- HR, Arani Agro Oil IndustriesLtd., Kakinada

TALENT Some people say Talent is god's gift for a

person. A person is said to be talented if hepossess awesome ability in a particular activity orfield. Every one is talented in one or another way.Nourishing the talent and utilizing it to the best isa challenge. Talent levels will vary from person toperson. There is a scarcity of talents in all areas.Competition is always there for getting the talentsbetween organizations, that is why the talentmanagement attains significance.

Every organization needs talented persons indifferent levels to enhance the efficiency of thecompany. In this globalized era talented personalsare having demand and are offered goodremuneration. For discharging specific taskstalented and work ethic specialists are needed. Inevery field the case is same. It is not easy to findthe right talent needed for the organization, ittakes a wholesome effort involving lot of humanresource to find the talents and recruit them.

Talent management is simply a process ofrecruitment of talents, developing the skills ofexisting workforce, promoting and retaining theemployees, attracting highly talented and ratedemployees from other companies etc. Talentmanagement is practiced by human resourcesdepartment of each and every company.

Performance management is directly linked

with talent management. In every organizationthe challenges as well as strategies are entirelydifferent. Hence the focus is mainly on getting andconnecting the talent with the organizational setup as well as making sure that the person can copeup with the organizational challenges and deliverthe might.

For a successful organisation team of talenteddynamic executioners, passionate leaders in rightroles will make sure effective execution ofstrategies and correction if needed as per thesituation. That means talent should be there inexecutive, middle and lower level of theorganization. But setting up and maintaining thiskind of persons for longer periods is not easy.

Senior human resource executives are dealingwith the talent management and it is veryimportant for companies as there is practice ofrival companies luring away the talents. Somotivation and retention of talents in anorganisation is a real challenge for HR officials.With companies becoming global with overseasacquisitions, keeping the upward growth willdepend on cost effectiveness, internal execution ofstrategies precisely with existing workforce aswell as integrating new talents.

In good olden days the talent management wasnot a priority and hence it was taken care bypersonnel management departments in theorganization. However in this new era talent

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HR’s Next : Talent,Operation & Event

ManagementThe present scenario of Entrepreneurs

are looking HR world always be on T.O.E.that is Talent, Operation and Event

Management these are the key aspectsto develop the productivity in the

organizational culture .

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management has become one of the top prioritiesof the organizations. Impact of talentmanagement is directly visible as manycompanies are spending a chunk of their revenuesto disburse wages as well as benefits. Wages areincreasing every year rapidly for maintaining thetalents in the organization.

Talent management best practices arecompetency based and some of the competenciesare skills, personal traits, experience as well asknowledge. Talent management is for theoptimisation of the resources in the organization,henceforth achieving good business results.Always there is chemistry between better talent inworkforce and better business outcome. Leadersare developed through the talent managementsystem.

Keeping the workforce satisfied is animportant aspect which can't be neglected by anyorganization. Success profiles should be the maincriterion for promotion. There should be someplanned strategy for talent management sincehuman resource is an asset for the organization inthis new age business world.

Top level management including CEO andsenior leadership should support the efforts ofhuman resource department for developing talentpool. Line managers have a proactive role in talentmanagement. They are the ones who can spottalents within organization for higher levels.Developing the talent within the organization iscost effective than really recruiting new ones insome cases and it can be termed as one the talentmanagement best practices.

The demographics of the workforce across theworld are changing as many companies areturning global and cheaper workforce with talent.This process is one of the talent management bestpractices. Hyper competition is the main factor

which drives companies to have talentmanagement best practices to keep thecompetitive edge...

Operation on Outsource forProductivity and Cost-Effective

Does outsourcing works for your advantage ordisadvantage?

For a layman (or an individual who grasps theconcept of outsourcing at a sea-levelunderstanding), outsourcing is a complete wasteof time and financial resources, which can end upwith unwanted complications.

Why assign work to other individuals if youknow what will be good for your business? Whydelegate the work to outsourcing professionalsabroad if you can do much better right at yourown territory? You know what is best for yourbusiness, and you don't need other individuals todeal with things that you can handle by yourself,or with the help of in-house personnel.

For a politician, outsourcing will just be apolitical subject that can be argued in debateswithin the walls of Congress and newspapers. Theissue will serve as a "fortified objection" to takeaway jobs from your own countrymen, makingyour business "unpatriotic." Politicians'sympathies with regards to the outsourcing issuemay win him a few votes in the upcoming election,nothing more than that.

However, it is the businessman who will beusing the outsourcing process; not the layman,and definitely, not the politician. Thus,outsourcing for businessman is a "modern dayboon."

Many businessmen are aware that outsourcingprovides them the freedom of dumping all of theirnon-core yet important aspects of their business

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HR’s Next :Talent, Operation & Event Management

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and delegating the work to an individual or groupof individuals who can give justice to the process.

Thus, it will leave businessmen free fromadditional responsibilities and focus instead onthe core of their business. On the other hand, theoutsourcing firm can also focus on the specificwork delegated to them, thus it is a cost-efficientbusiness operation. That is one of the primaryadvantages of outsourcing.

Another enticing advantage of outsourcing isbeing one of the cost-effective measures that youcan take for your business. Businessmen areaware that information technology (IT) servicesand human resource in United States or in Europeare expensive, which can affect the way they hireadditional manpower in case of businessexpansion.

Outsourcing provides an option in gettinghighly-productive manpower in a cheaper rate.For instance, offshore outsourcing (delegating thework to off-shore destinations such as India andPhilippines) is popular to U.S.-based businessesbecause of the cheap working rate.

An ordinary American who will earn anaverage of $300 to $500 per month is just a smallsum, but for Indians and Filipinos, they would bequite happy with this salary range considering thecurrency conversion rate. Thus, this is a "win-win" solution for the company you areoutsourcing to as well as for your business.

Another convincing advantage of outsourcingis saving substantial amounts of money in termsof the development of some aspects of yourbusiness (such as IT development). Sinceoutsourcing involves reduced expenditures onyour part, you will be able to maximize the valueof your money to have your IT services developedinto the latest and most powerful moderninformation tool.

In addition, you will avoid recruiting newpersonnel who will handle the development aswell as training them, thus reducing therecruitment and training cost for your business.The purchase of necessary technology will now behandled by the outsourcing company, thus savingmoney in the long run which you can use on otherimportant business aspect.

There are other advantages of outsourcing, yetthe aforementioned advantages are the most notedones. Do not be misled by rumors and gossipsabout outsourcing. You are the business ownerand you know what is good for your business.

Event ManagementFor anyone who has had to deal with the

hassles of registration and scheduling for avariety of events, an investment in eventmanagement systems can easily streamline thisprocess.

There are many aspects to planning an eventand making sure it goes smoothly.

Event management systems make this wholeprocess easier. Many of them provide a way tointegrate your own best practices as far asregistration and scheduling. They also providecontent management systems that you can use toadd your own content.

Many of the processes involved in eventmanagement are automated by these systems,including scheduling at a glance, changenotifications, and payment systems. Users can usethis software for space planning for these eventsas well, and the reservation of the resourcesneeded for each event. They can use the eventmanagement software to arrange for services forthe event as well, such as catering. This softwarefrequently includes web calendars that can bepublished for ease of scheduling. Eventmanagement software can also print onlinetickets for attendees.

All of these benefits offered by this softwarecan reduce the headaches involved in keepingtrack of these important details. Anyone who isresponsible for event scheduling will appreciatethe way this software helps them prevent doublebooking any facility and all of the time andinconvenience that such a situation can cause.

Whenever an event is held, most eventplanning and administrative professionals knowthat reporting needs to be done on the event. Eventmanagement systems provide a way to providereports in a variety of standard formats,including HTML, MS Excel, and CSV. They alsoprovide for the approval of funds for these events.This software is also coded to provide tools forauditing to ensure compliance with establishedprocesses.

If you are in the event planning business or youperform event planning as part of your job duties,event management systems can reduce the timeand resources required to manage and plan yourimportant events. The ease with which you will beable to manage your events with eventmanagement systems makes them a worthyinvestment...

The tips of T.O.E is an effective innovationmethods to leads the organization into goodproductive culture. The HR should put their effortto show their talent, Operational methods andEvent Management in day to day on jobs.

Business Manager April 2012 11

HR’s Next :Talent, Operation & Event Management

Event management systems make this whole process easier. Many of them provide a way to integrate your own best practices as far as registration

and scheduling.They also provide content management systems that you can use to add your own content.

BM

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Mentoring is soft and potent HRinstrument to mould and bindthe employees toorganizational work, socialculture and developing

emotional bonds between employee andorganisation leading to devoted allegiance.But is Corp Inc. focused enough to place thistime tested HR tool to develop futureleadership in organisations? Is mentoringbenefits the organisation in creating a talentpipeline or only helps employees buildingtheir career?

With opening essay by Dr. C.N.Daftuar onthe subject, Aparna Sharma, Dr. TanviGautam, Poonam Sharma, Rohit Rajput &Dr. A.Jagan Mohan Reddy unfold hiddentruths of this instrument by sharing theirexperience and explain the trends anddimensions...

Page 14: That which has intellect and emotion

What makesyou a

Mentor?

In Greek mythology, Mentor was the son ofAlcimus or Anchiailus. In his old ageMentor was a friend of Odysseus who placedMentor and Odysseus' foster-brotherEumaeus in charge of his son Telemachus,

and of Odysseus' palace, when Odysseus left forthe Trojon Wars.

When Athena visited Telemachus she took thedisguise of Mentor to hide herself from thesuitors of Telemachus' mother Penelop. AsMentor, the goddess encouraged Telemachus tostand up against the suitors and go abroad to findout what happened to his father. When Odysseusreturned toIthaca, Athena appeared briefly in theform of Mentor again at Odysseus' palace.

Because of Mentor's relationship withTelemachus, and the disguised Athena'sencouragement and practical plans for dealingpersonal dilemmas, the personal name Mentorhas been adopted in modern English as a termmeaning someone who imparts wisdom to andshares knowledge with a less experiencedcolleague.

Mentorship is a buzzword these days but thefirst recorded modern usage of the term can betraced to a 1699 book entitled Les Aventures deTelemaque, by the French writer FrancoisFenelon. In the book the lead character is that ofMentor. This book was very popular during the18th century and the modern application of the

term can be traced to this publication. This is thesource of the modern use of the word mentor: atrusted friend, counselor or teacher, usually amore experienced person. Some professions have"Mentoring Programs" in which newcomers arepaired with more experienced people, who advisethem and serve as examples as they advance.Schools sometimes offer mentoring programs tonew students, or students having difficulties.

Today mentors provide expertise to lessexperienced individuals to help them advancetheir careers, enhance their education, and buildtheir networks. In almost all arenas people havebenefited from being part of a mentoringrelationship, including: Actors, Athletes, ArtistsAuthors, Business people, Comics, Directors,Education, Movies, Musicians, Philosophy, Poetry,Politicians, Television, etc.

Today any organization to survive and thrivemust learn to change with the market and times. Ifwe are to have learning organizations, we musthave learning and teaching / coaching executives.

So, one of the most frequently felt need of theyounger and the junior level professionals in alltypes of organizations in this country and abroadis for a mentor and coach to help them navigatetheir way through the organizational lives andwork and to assist them with their career choicesand development. Some people are lucky tostumble across a good mentor.

Business Manager April 2012 13

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

DR. C.N DAFTUARChief Mentor and CMD,

Salahkaar Consultants, Pune

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However, this is usually the result of individualefforts and often of a well thought out programwithin an organization.

Learning refers to any change in behaviour.Organizational Behaviour (first seen as actions) isthe sum of professional skills affected by personalskills and behavioural aspects such as; beliefs,values, attitudes, motivation, thoughts, andunconscious drives. Professional evidence basedmentoring and coaching is now recognized as thecritical platform for successful organizationalchange and learning initiatives.

Many recent business-coaching studies have allconfirmed that changing behaviour with the rightmentoring and coaching techniques and deliverymechanisms can have a dramatic, beneficialinfluence on human dynamics, the cultural andenvironmental context of an organization, and theoutput of the system - the organization'sperformance.

If people are truly the primary resource of anorganization, then they must be developed andmanaged not unlike any other asset portfolio. Asevery individual has a unique resource portfolioof strengths and liabilities -mentors (and for thatmatter coaches) need to be trained how tooptimise and realize the potential of thatindividual's assets, minimize the weaknesses andadd lasting "value" to their overall personal andprofessional skills resources portfolio.

An important dimension of employeedevelopment program is to train managers andexecutives of all ranks how to mentor and coachempathically. Getting the work done is only part ofthe supervisor's job. Supervisors are responsiblefor making the workplace safe, legal andharassment-free, vibrant and create a learningclimate. They have to know how to motivate theiremployees to learn the technicalities of their jobs

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

In brief, Mentoring seems to have differentmeanings for different people. Some consider it aform of counseling, communicating, or learningby example from someone usually senior to you,while others call it leadership. But, whatever youwant to call it, it is something that certainly can bebeneficial to any organization. It is a provenapproach and valuable tool for leaders.

There seems to be some mystery surroundingmentorship. Maybe that is due to its differentmeanings; therefore people are unclear about thisnew tool. This article will try to take some of themystique out of mentoring by reviewing thebasics and relating them to the organization.

It will address:

1) what mentoring is,

2) why should the companies have a mentoringprogram,

3) who should be responsible for mentoring,

4) when to mentor,

5) where mentoring can take place, and

6) how to mentor someone.

What is Mentoring?Mentoring is the presence of caring

individuals who provide support, advice,friendship, reinforcement, and constructiveexamples to help others succeed. Mentoring canmean the difference between success and failure.A mentor is a person of greater knowledge orwisdoms who shares this experience to helpdevelop abilities of those junior to them, alsocalled protégés. Mentoring helps prepare officers,manager, army officers and civilians for increasedresponsibilities by encouraging job competency,

14 Business Manager April 2012

Roles of a mentorThe mentor should encourage two-waycommunication.

As a coach, the mentor helps to clarifydevelopmental needs.

In facilitating, the mentor should assistthe protégé in establishing a network.

As an advocate, the mentor couldrepresent the protégé's concern tohigher management.

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relevant education, professional development,higher education, and serving the needs of theorganization and even the country.

Mentoring encourages people by promotingcommunication, and personal and professionaldevelopment. In his address to Virginia MilitaryInstitute Corp of Cadets, General Hornburg said,

"A mentor is an individual who advises andchallenges you to do your best on both a personaland professional level. Everyone needs a mentor,and leadership is where mentoring starts."

Mentoring can occur in different settings:informally by a supervisor or superior, orformally where an associate is deliberately pairedwith a mentor and there is an established goal ofdeveloping specific skills and competencies ofprotégés.

There are concerns by some that cronyism(Doing faqvour to friends. Special treatment andpreference given to friends or colleagues, especiallyin politics) or sponsorship could develop, and thatis always a possibility, but a good supervisor willuse all available resources. They recognize thevalue of all members in their organization, andunderstand no one can accomplish theirrespective jobs alone. They have reached theirlevel of leadership by learning from others, andusually desire to teach and provide these sameopportunities to those who are willing to learn,their protégés. Most managers realize cronyism orsponsorship only limits their own resources,misplaces loyalties, and leads to the loss of futuregreat leaders.

General Hornburg said, "Mentoring isn't abouta "good old boy" network. It's about helping peoplegrow and think for themselves. It's an opportunityto connect with the past and contribute to thefuture.

Why Mentor?US Air Force Policy Directive 36-34 states:

"Mentoring is a fundamental responsibility of allAir Force supervisors." To para phrase the aboveDirective we can say that Mentoring is afundamental responsibility of all Managers andsupervisors irrespective of their ranks.

However, mentoring should take place becauseeveryone gains when there is a healthy exchangeof information. Not only does the mentor andprotégé benefit from this exchange of ideas andinformation, but the as an organization both theindividual employees as well the company willbenefit greatly.

An ancient Chinese proverb has very welldepicted this idea:

"If you want one year of prosperity, grow grain,

If you want ten years of prosperity, grow trees,

If you want one hundred years of prosperity,grow people."

Leaders must realize that those junior to themare watching and learning from them even if it is

from a distance. There are lots of Eklavyas.However, with the amount of information andknowledge available to everyone, plus theeveryday downsizing of our work forces, leadersneed to accept the task of intentionally teachingand training those working under them/theirjuniors.

If left to learn at a distance, protégés will applytheir perceptions of what they see and hear to theissues of their respective units. They will have todecide for themselves the best way to handledifferent situations. The danger with this is "theirperception" may not be reality, because they maynot have all the facts. Therefore, opencommunication with senior managers will ensurethat the right lessons are being learned, andcorrect information is being disseminated.

Additionally, it is important that protégés learnthe art of decision-making. A great by-productwill be better unit/section/department cohesion.Once protégés understand the whole issue, theywill be able to support the manager's decisions,and when feasible be able explain it to others.Whether people agree or not, once theyunderstand the issues they are less likely to gossipor cause dissention within the organization.Accurate information and communication alwaysimproves morale and company's cohesion.

The new generations now entering theworkforce are different than earlier generations.The Baby Boomer generation thinks and perceivesthings differently than executives/officers fromGenerations X and Y. Newer generations are moreconfident in their abilities (albeit sometimeserroneously), perceive loyalty differently, wantmore balance between work and family, and arenot intimidated by rank. They have little or norespect for seniority. In the past, communicationbetween ranks was much less frequent due to thehierarchical nature, but with today's e-mail andinternet capabilities, junior executives are wellinformed of issues, and are now able to interactmore frequently with seniors. This interactionwill serve to meet one of the main needs of thenew generations. When Generations X and Y grewup, they were latchkey children and many fromfamilies where they had both parents working.Thus, the traditional nurturing environmentenjoyed by the Boomers has not been a part of lifefor many in the new generations. Mentoringappeals to the new generations desire forrelationships. Generations X and Y could be loyal,but their loyalty is based on a bond of trust. Also,loyalty in them is not unconditional (a greatobstacle in learning). It is, now, based onreciprocity and trust and a kind of give and takerelationship. On the other hand, the expectationsand loyalty (read commitment) of the seniors- thelikely mentors-is more of out-fashioned,conventional of guru-shishya parampara.

Even in this given situation trust can best beachieved through a mentorship program.Building trust will not only benefit both the senior

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and junior officers, but more than likely thecompany's would benefit and retention wouldprobably improve.

Who should Mentor?The answer is a big YOU.

It is important to remember, the senior leaderof an organization such as a a head of a function,a Wing Commander or a group leader is not theonly leader. Commanders, Managers, Supervisors,and other leaders are responsible for thedevelopment of those junior to them. There aremany officers in a unit, and all have variedexperiences. Therefore, it should not be just thesenior officer of a unit who is responsible formentoring, but each person on the base lineshould have a role in mentoring. A model of thiscan be created by senior managers occasionallymeeting with junior executives from differentfunctions in a café or the company's canteen anddiscuss issues of interest. This provides"ownership" for the higher-rankingmanagers/officers while also developing anetwork of contacts and information sources foreveryone. No one should feel like they are "going italone" and by developing this atmosphere ofinteraction between all ranks, a sense ofbelonging to something special should developand this can only result in a stronger and betterworkforce. Whereas mentoring tends to bedirected at teaching the junior executives/officer,it actually can and should extend to everyonewithin an organization. All supervisors, civilians,high ranking managers and officers should bementors. Because everyone that enters theworkforce regardless of rank, level or grade needshelpful guidance and assistance in order toperform their duties to the best of their abilities,and all ranks and grades have valuable

experiences that should be passed on to theyounger generations. A good mentoringrelationship provides new employees as well asinterns with someone that will share theirprofessional knowledge and expertise in the field.A good mentor is available to answer anyquestions relevant to the job. Having suggestedthat YOU are the possible mentor we need toremember that there are certain identified goodqualities of a MENTOR. It may be useful to have alook on them and make an effort to inculcate someof them (if not most of them) in you to derive moreperfection in your actions as an effective mentor.

Qualities of effective mentor:1. His willingness to share skills, knowledge,and expertise.

A good mentor is willing to teach, guide andcounsel (of) what he/she knows and accept theprotégé almost unconditionally wherever theycurrently are in their professional development.There could be only one condition and that is thatthere is a great willingness to learn in thementees. Good mentors remember what it waswhen s/he was new in the field. The mentor doesnot take the mentoring relationship lightly andunderstands that good mentoring requires timeand commitment and is willing to continuallyshare information and their ongoing support withthe mentee. In the above sense we would notconsider Arjuna-Dronacharya relationship asgreat mentor-protégé relation where as Krishna-Arjuna relation would profoundly qualify. In caseof Arjuna-Dronacharya relation there theunconditionality of relationship was missingwhere as in Arjuna-Krishna relationship we findthe unconditonality of Arjuna's devotion andKrishna's willingness to give.

16 Business Manager April 2012

1. His willingness to share skills,knowledge, and expertise

2. He demonstrates a positive attitudeand acts as a positive role model-what it takes to succeed in life andcareer

3. Mentors need to take personalinterest in the mentoringrelationship

4. Effective Mentors are enthusiasticabout their field and they show it toeveryone

5. Good mentors should understandthe importance of life-long learningand growth

6. A true mentor provides guidanceand constructive feedback

7. A good mentor is generallyrespected by employees, his/herjuniors and colleagues at all levels ofthe organization

8. Effective mentors set and meetongoing personal and professionalgoals

Top 15 qualities of a mentor

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2. He demonstrates a positive attitude andacts as a positive role model-what it takes tosucceed in life and career.

A good mentor exhibits the personal attributeswith positive attitudes that take to be successful inthe field. By showing the mentee what it takes tobe productive and successful, they aredemonstrating the specific behaviors and actionsrequired to succeed in the field.

Positivity in attitude may mean that s/heshould assure and be able to show the highprobability of success and assures that success isthere waiting for the protégé to reach there. He(mentor) needs to be optimistic and proactive. Hewill need to show that he used right model tosucceed. And that the truth and righteousnesspays. Such an attitude and belief of the mentorwill encourage the protégés to take a bold andpositive step towards successful learning.

3. Mentors need to take personal interest inthe mentoring relationship.

Good mentors take their responsibility as amentor very seriously. They feel invested in thesuccess of the protégé. They have a stake in thesuccess of the protégé. Usually this requiressomeone who is knowledgeable, compassionate,and possesses the attributes of a good teacher ortrainer with good communication skills. A goodmentor is committed to helping their protégé findsuccess and gratification in their chosenprofession. Overall good mentoring requiresempowering the mentee to develop their ownstrengths, beliefs, and personal attributes. On theother hand a good protégé should also realize howfrustrating it could be for the mentor if thementee fails or betrays. Example of Karna and

Parsuram come quickly in mind. As you mightknow that the very foundation of relationshipbetween Karna and Parsuram was that of deceitand falsehood. The lie of Karna made Parsuramso frustrated and angry that he gave him a curseand withdrew all the knowledge that he had givenhim. Sometimes it is as difficult to find acommitted mentee as it is generally difficult tofind a good mentor.

4. Effective Mentors are enthusiastic abouttheir field and they show it to everyone.

Enthusiasm like smile is contagious. A mentorwho does not exhibit enthusiasm about his/herjob, knowledge and commitment will ultimatelynot make a good mentor. Enthusiasm is catchingand new employees want to feel as if their job hasmeaning and the potential to create a good life.

Showing your enthusiasm as a tool ofinspiration for your juniors/protégé is a tool thatmakes a mentor effective and perfect. Mentor'senthusiasm has the potential of enthusing theirprotégé and their (protégé's) enthusiasm willmake them learn faster and work smarter. Whatelse do you need?

5. Good mentors should understand theimportance of life-long learning and growth.

Mentors are in position to illustrate how theirfield/subject is growing and changing and thateven after many years of their being in the fieldthere are still new and many things to learn.Anyone who feels stagnant in their currentposition will not make a good mentor.

When starting out in a new career, people wantto feel that the time and energy they spendlearning will be rewarded and will ultimatelyprovide them with

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9. Good mentors value the opinionsand initiatives of others

10. Mentors walk the talk-motivateothers by setting examples

11. Self awareness

12. Empathy and sympathy

13. Compassion

14. Innovative and Risk-taker

15. Analytical mind

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career satisfaction. Good mentors are committedand are open to experimenting and learningpractices that are new to the field. Theycontinually read professional literature (journals,books etc.) and are enthusiastic to share theirknowledge with others especially with theirmentees. They may even write articles on subjectswhere they have developed some expertise. Theytake their role of knowledge dispenser seriouslyin teaching their knowledge to others. A goodmentor would like to choose to teach or attendclasses to further develop their knowledge andskills. They enjoy taking workshops and attendingprofessional conferences an interacting withother experts and mentors from otherorganizations.

6. A true mentor provides guidance andconstructive feedback.

One of the key responsibilities of a goodmentor is to provide guidance and constructivefeedback to their mentee. This is where a protégéwill most likely grow identifying their currentstrengths and weaknesses and learning how to usethese to make them successful in their field. Agood mentor possesses excellent communicationskills and is able to adjust their communication tothe personality style of the mentee. A good mentorwill also provide the mentee with challenges thatwill foster professional development and a feelingof accomplishment in learning the field.

7. A good mentor is generally respected byemployees, his/her juniors and colleagues atall levels of the organization.

Ideally mentees look up to their mentors andcan see themselves filling the mentor's role in thefuture. Mentees want to follow someone who iswell respected by colleagues and co-workers andwhose contribution in the field is appreciated.

There is a well-known concept in the field ofSocial Psychology which in known as "prestigesuggestion". This simply tells that advice oropinion coming from a person having socialprestige for whatever reason commands higheracceptance among people. For example you writean absurd view and attribute it to MahatmaGandhi and will find that most people even if theyhad different opinion initially will meekly acceptthe view. Such acceptance comes from the prestigeattaché to Gandhi. Same thing albeit at a smallerscale will apply to the advice given by a respectedmentor. So Good Mentors, Please! Try to commandprestige for your honesty, integrity, knowledge etc.and it will benefit you not only in doing yourmentor's role but in many other ways personally.

8. Effective mentors set and meet ongoingpersonal and professional goals.

A good mentor continually sets a good exampleby showing how his/her personal habits arereflected by personal and professional goals andoverall personal success.

They need to demonstrate their performanceeffectiveness by continuously achieving or, betterstill, surpassing their set targets.

9. Good mentors value the opinions andinitiatives of others.

A mentor who values others is also someonewho works well in a team environment and iswilling to share his/her success. A good mentorappreciates the ongoing effort of the mentee andempowers him/her through positive feedback andreinforcement. High proficiency in giving andreceiving feedbacks will be a great advantage inconverting an ordinary teacher/supervisor/coachinto an excellent mentor.

10. Mentors walk the talk-motivate others bysetting examples.

The ultimate success of being a good mentor isthat he does what s/he preaches. Be a role model.Grow with the mentees to keep ahead and remainhis/her role model so as to s/he keeps learningfrom you and you remain her/his goal post.

Mentors who "walk the talk" provideinspiration through their very being. A mentor issomeone who we aspire to become; the mentor hasqualities/skills we want for ourselves. The mentorhelps us to see the possibilities by bringing to lifethe qualities we aspire for ourselves to achieve.

Apart from the above mentioned behaviouralcharacteristics the mentors' personality profilesshould also embody some personality traits. I havetaken resource of SQ (Spiritual Intelligence) andEQ (Emotional Intelligence) fields for cataloguingthe personality attributes of an effective mentor.Some important among them could be thefollowing:

11. Self awareness

In our view "self-awareness refers to beingaware of what one wants."-Daftuar, (2003). Thelevel of self-awareness among the mentors shouldbe reasonably high. This will help themunderstand other's and their own motivations andemotions better. Talking in EQ terms they shouldhave better awareness about their ownmotivations, emotions and the social andprofessional surroundings around them.

12. Empathy and sympathy

An effective mentor needs to overshadow thequality of just being sympathetic. The presentgeneration (the so called Generation-X or Y or Z)may not feel comfortable with a sympatheticmentor. Empathy is more subtle and need notdisplay itself in crude manner but hugely enablethe mentor to understand the needs of the protégé.

There could be many more but we have tried tolimit ourselves to the most essential of thementors' qualities.

13. Compassion

"The whole purpose of religion is to facilitatelove and compassion, patience, tolerance,humility, forgiveness". H.H. the Dalai Lama.

To paraphrase Arthur Jersild, compassion isthe ultimate and most meaningful embodiment ofemotional maturity. It is through compassion thata person achieves the highest peak and deepestreach in his or her search for self-fulfillment

18 Business Manager April 2012

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through understanding and identifying withothers. Compassion could be listed as animportant ingredient of a mentor's personality.

14. Innovative and Risk-taker

The word Innovative here means the person iscreative and can think in new and different waysas well as he is capable of a Taking risk to helphis/her protégé.

A mentor needs to be innovative because he hasto keep discovering new ways and sources to teachthe protégé. And while you take responsibility ofsomeone else life and career you naturally get intoa huge risk of building or marring a career.

15. Analytical mind

People with analytical mind have good analyticalability. They would not jump to conclusion ratherthey are able to get to the root of the problem and asa result do not jump to conclusions. They are able toidentify and define problems as well as generate andimplement potentially effective solutions. They aregood at sensing problems and feel confident andmotivated to deal with it effectively. We realize thatthe above list is demanding but then theresponsibilities of a mentor are also demanding.There could be some more required qualitiesdepending on the type of mentoring and the type ofthe job and organizations. Given your owncircumstances you may prepare you own list ofqualities of a mentor in your own situation.

When to Mentor? The Problemof Finding the Time

One of the problems of instituting mentorshipin organizations seems to be just one more thingto add to their already demanding schedule. Howcan one make time for "mentoring"?

I had a damning task in convincing myparticipants in many of the 16 groups of myworkshops (on Mentoring in one company) that tosome extent mentoring is already taking placewithout "credit" being given to the mentor. And,mentoring could be instituted in the companywith very little effort or additional time. And thatmentoring is just another natural talent every oneof us have. No need to panicky for extra workpressure.

I would face this question in almost all groupsof my participants, sometimes with a tone ofaggressive challenges when they would ask "whythe hell management is bent upon adding one moretask to them when they are already too much hardpressed for their own job, to meet their target, etc.My experience was that almost in all groups I hadto spend about two hours convincing them for thevalue of mentoring and that it benefits both theparties-the mentor and the mentees.

In another case, for instance, there was a groupof junior executives (GETs and seniorsupervisors) that were almost accidentally beingmentored on a daily basis. Though juniors they alloccupied vital positions, and due to the nature oftheir job, they had daily contact withexecutives/managers more senior to them. These

(junior) executives observed leadership in action.They learnt how decisions were made and whatquestions to ask. They saw first-hand how livesare impacted, how politics play into situations,and many more such issues. Each of theseexecutives to some extent was being mentored,either formally or informally. I believe if youretrospect if you easily recognize suchexperiences in your lives. The seniorexecutives/managers need to recognize this andtake advantage of it by allowing the protégé to askquestions, and discuss issues when theopportunity avails itself. These experiences aloneare very valuable to the junior executives and willeventually benefit the senior executives/managers as well. It does not have to be just atthe top levels and that daily contact and one-on-one discussions to occur. This can and shouldapply at the smallest unit level. Supervisors of allranks and in all positions can and should mentorthose junior to them. Modern technology hasactually made it easier. With e-mail, a protégé canseek advice or guidance anytime, and if it is notan emergency, the mentor can answer thequestions and provide thoughtful advice at theirconvenience. Thus, mentoring can take place justabout any time, anywhere by anyone.

Actually, mentoring occurs all the time. Eachtime you have a discussion with another member,at a minimum informal mentoring is taking placeas you are providing insight based on your ownexperiences. Therefore, it is imperative thatinformation provided is thoughtful and will bebeneficial to the individual as well as theorganization. Whether a mentor sets a regulartime on their schedule daily, weekly, or monthly isnot as important as being accessible, and preparedto listen and respond to their protégé whenneeded. Mentoring is not effortless and time willbe required. Both parties must be activeparticipants and work out a schedule that is bestfor both of them.

Which is the best place toMentor?

In Army and Air Force officers' Clubs aregenerally used for such activities and people theremight even say that mentorship in the Forces willdie when alcohol awareness becomes an issue,because, then, Officers' Call at the Officers' Clubswill drastically reduced. And so will thementoring. Each army base and business unit isdifferent, but these "get-togethers" whetherweekly, monthly, or quarterly provided an avenuenot only for the commander to brief importantissues but also allowed very valuable interactiontool between all ranks in the officer corps. Alcoholis a big equalizer. This alone can provide a chanceto observe leadership, and offered an informalsetting which allowed open and honestdiscussions. This in-turn added additionalbenefits such as the feeling of being a part ofsomething special, and having a sense ofbelonging. Encouraging such informal meetingsis a good option.

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If the fear of alcohol and driving under theinfluence is still uncomfortable (though I do notsee it happening in the near future!), analternative could be a luncheon, which couldprovide this same informal setting with anenvironment of interaction for all managers andexecutives, thus providing opportunities forcasual conversation and a cross-flow ofinformation. This networking alone could paygreat dividends for the unit, be enjoyable, andeveryone would benefit. One possibility for gettinglunch conversation started, could be discussing apreviously announced book. As professionals, wecannot know enough about our chosen profession.The mentor can recommend a book for everyoneto read, and then during lunch allow protégés todiscuss the book and its merits. Additionally, timeshould be provided to allow for discussions oncurrent issues, as well as a question and answersession. Other options where mentoring couldtake place include bringing back "mandatory fun"activities. Events such as Dining Outs, socialgatherings, ceremonies, etc., most of these couldbe scheduled during the workday when theywould not interfere with family and personal time.

On a serious note we can emphasize that if thementoring has been made mandatory by thecompany and you have been officially assigned tomentor it would be a good idea to do everything

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

How to MentorIt is important to understand that the

development of protégés is an ongoing process foreveryone. Mentors should relate personal andprofessional experiences to protégés. They shouldpractice positive communication skills and ensureprotégés do the same. Company's core valuesshould be discussed and exemplified, and most ofall, spending time with those being mentoredprovides the greatest benefit for both the mentorand protégé.

Roles of a mentorGenerally mentors fill four roles; they are

advisor, coach, facilitator and advocate.As an advisor, the mentor should encouragetwo-way communication and feedback andassist protégé with career and performancegoals.As a coach, the mentor helps to clarifydevelopmental needs, recommends trainingopportunities, and teaches skills andbehaviors.In facilitating, the mentor should assist theprotégé in establishing a network ofprofessional contacts and help them identifyresources for problem solving and careerprogression.As an advocate, the mentor could represent theprotégé's concern to higher management levelsconcerning specific issues, arrange for theprotégé to participate in high visibilityprojects, and serve as a role model.

Conclusion

Mentors are not expected to have all theanswers. Sometimes just listening attentively isall that is needed. But, mentoring can mean thedifference between success and failure.

Mentoring is a fundamental responsibility ofall senior managers and executives. It helpsprotégés reach their full potential, therebyenhancing the overall professionalism of theworkforce. Additionally, when an interest isshown in others, the organization is able to retainher most valuable asset-people

By understanding the "what, why, who, when,where, and how" of mentoring there should be nomystery about providing assistance to juniorpersonnel. If the company is to continue as aviable organization and strive to reach to thestatus of the best in the field, it not only needssuperior systems (technical or otherwise), butpersonnel who are advanced in their knowledgeand skills, because caring mentors took the timeto listen, learn and advise to the best of theirabilities.Reference

Daftuar, C.N. (2003). Emotional Intelligence Test (EQi-t).Pune, Salahkaar Consultants.

20 Business Manager April 2012

The DifferenceThere were two GETs who didn't know what to doThey came into the Force and were proud to wear the blue(Company's Uniform)Quickly they realized they didn't know it allAnd soon they must learn or they would fallBut who was to teach them how to go?Where were they to go in order to grow?Around them they looked and what did they see?One found a mentor the other one was left himself to beThe one with the mentor seized the dayHe learned quickly and found experience does payThe protégé' listened and the mentor taught him a lotAnd through his successes he never forgotThe second who had to go it aloneDid his best but felt forlornHe did what he could and learned as he wentBut in the end he was totally spentNow the protégé is a mentor, tooHis successes and lessons are not fewHe shares what he knows and learns from the youngAnd praises for his mentor are sungSo now the Company has only one wearing the blueBut it should have been twoWith experiences and happiness in their heartBecause someone cared about them from the start

This poem has been taken from an unknown source but has been little modified by the author to suit our context.

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OriginMentoring traces back its origin to very

ancient time. In the Mahabharatha, Lord Krishnaenlightens Arjuna about his duties, displaying thetrue virtues of a guru, which combines thequalities of friend, guide and a philosopher. Theword "Mentor" has its origin in Greek Mythologywhen Odysseus the King of Ithaca, went off tofight the Trojan war entrusted his son's educationto a counselor and good friend named Mentor, whomade him a competent person.

Though we say that the word 'Mentor'originated from Greek, French etc, mentoring hasstarted before thousand years in Indiancivilization in the form of Guru-shisyarelationship. Gurukul, is an ancient concept ofeducation wherein the student imbibedknowledge by residing with his/her teacher aspart of his family. "Guru" refers to theteacher/master and "Kul" refers to his/herdomain. So the mentoring relationship is not justa business myth of today but it has existed fromtime immemorial in the Indian mythology.

Now let's look at some of the Guru-shisyarelationships from our Hindu mythologyincluding the lessons to be learnt from them.

KRISHNA AND ARJUNA

In the Indian context the most successfulmentoring relationship is the one between Lord

Krishna and Arjuna. On looking at Kaurava army,which consists of many of his close relatives,Arjuna becomes deeply depressed and gets into apsychological trauma and at that stage (Vishadayoga) the Gita comes. Infact, it may not be anexaggeration to say that in today's world many ofus are caught quite often in a similar situation.

Here Lord Krishna comes to the rescue ofArjuna by reminding him of his rightful dutiesand obligations in this wordly life, withoutbothering much about the end results. The plightof Arjuna, which many of us too have faced atdifferent times, could be well understood from theArjuna's following query:

"I am totally confused, I am your disciple tellme what should I do"?

Now, Lord Krishna, his mentor, plays a criticalrole in reminding Arjuna of his role. He was anideal mentor due to the fact that he performedmultiple roles and had numerous mentoringstyles. He was leader, manager, negotiator,manipulator, motivator influencer all rolled intoone.

Arjuna was symbolic of Pandavas valour andglory but he was also very sensitive to othersopinion of him. But when he was caught inworldly relationships and sensitivities and wasnot able to move ahead, Lord Krishna's helpenabled Arjuna to surmount obstacles andachieve success.

Business Manager April 2012 21

Mentor-Protégés in

HinduMythology

DR. A.JAGAN MOHAN REDDY Associate Professor (HR) & Placement

Coordinator, Institute of Public Enterprise, Hyderabad

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

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The main teaching that Lord Krishna gave toArjuna is as follows:

"Seek not the fruits of your action, but do yourduty in this world and dedicate it to me"

There are several occasions in our livesforwhen we wonder about rat race and its relevancein the grand scheme of things. Bhagavad Gitahelps us to perform our duties irrespective of thegrand scheme of things.

CHANAKYA AND CHANDRAGUPTA:

Chandra Gupta Maurya, a common man'sordinary son, rose to become our county's finestemperor with the help and guidance of AcharyaChanakya, Chanakya, angered by the unjust roleof Dhana Nand of Magadh and personalmisbehaviour he experienced, took a vow todestroy the arrogant dynasty of Nandas andaccordingly selects a promising kid of acommoner. Further, he brings up the child as hisprotégé, who in course of time rises to vanquishNanda kings and became the Emperor ChandraGupta Maurya.

Chankya trained, taught and guided ChandraGupta in various fields like warfare, politicalmaneuvering, manipulation and may otherstrategies. Further, as a shrewd strategist,Chanakya also served as his Prime Minister forsome time consolidating his rule. Thus, the Guru(teacher) and his shisya (disciple) established oneof the biggest empires in India and ruled it well.

VALMIKI AND LAV-KUSH:

Lord Rama, son of King Dasharatha, was agreat man to have taken birth on this earth tospread the unique message of abiding by truthalways and serving the parents. After doing theDustha shikshana (by killing Ravana) lend LordRama could not invite Sita with honours owing tothe social stigma articulated by the commoners.And as such, had to send her to exile. So, when shewas left in the forest by Lakshmana, under theinstructions of Lord Rama, it was sage Valmiki,who gave refugee to Sita. In his hermitage Ramaand Sita's twin sons, Lav and Kush were born andbrought up. Sage Valmiki initiates the boys instudies and the two bright boys learnt thealphabets in no time. They also acquired theability to read and write anything. Valmiki taughtthem the shastras, mythology, music, archery, andwhatever else he knew. So the boys became theexperts in all those branches of knowledge. Theskillful training of sage Valmiki made the boys sopowerful and valiant that even Rama, Lakshmanor Bharata and Satrugna were defeated by them inarchery.

ADI SANKARA AND HIS GURU:

Sri Jagadguru Adishankara one day went inthe search of a guru to be formally initiated as asanyasi. At the banks of the River Narmada, hefound the river gushing forth into floods. By usinghis powers, he encapsulated the river in hiskamandal (a drinking water vessel which sanyasis

carry) and release it in the banks of the river.

Sri Govinda Bagawath pathar, an ascetic whosaw this marveled at Sri Shankara and took himon as a shisya. He, apart from teaching variousVedas, taught Sri Shankara Advaita, the principlethat everyone in this world is the manifestation ofGod and that God and Atman are one and thesame. Later he advises Sri Sankara to go out in theworld and spread this truth throughout thecountry.

Lessons to be learntFrom the above guru-shisya relationships we

can find that a mentor needs to be very good atlistening and quickly grasping the core of anyproblem. Because today's professionals, who needto keep pace and get ahead in a fast paced,competitive economy, need proper directioncoupled with coaching and advising from theirexperienced peers. They face constantperformance pressures coupled with difficultdemands from their superiors. Yet times, this canlead to frustration and ultimately disillusionmentwith the organization and its work culture.

A mentor with finest qualities of care andcompassion can spend time and energy tounderstand the protégés and their capabilities.Then he can help them find their vision andindividual path to personal development and canhelp in enhancing their skills and acceleratelearning and career growth. An organization canuse this art of mentoring as a tool to help bringout the best in their younger employees,leveraging the synergy for individual andorganizational growth and success.

Now let's briefly discuss the preferredmentorship process, for leveraging thisinstitutional mechanism for synergizingindividual and organizational growth and success.

The Mentorship ProcessToday's knowledge organizations are full of

experienced individuals with varied interests andexpertise. Further, in LPG era of today withcompetition ruling the roost not getting the rightadvice can land the young professionals inproblems prompting them to either start doubtingtheir own capabilities or making them want tomove on to a "more encouraging" work culture. Sothe optimal mentor shall possess the expertise,commitment, understanding and time to provideassistance.

The mentorship process shall be a open oneand both the mentor and protégé should setrealistic expectations from each other. Formal andinformal sessions should be organized to enablethe protégé to understand the organizations goals,skills, sets, plans and challenges. This will helpguide the protégés towards areas paths that best fittheir talent, abilities and inclinations. Further,definite, mutually agreed time frame should beset, with an open door policy at all hours of the

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day to make the protégé comfortable. The skills ofthe mentor ought to be assessed when formalmentors are allocated in an organization. Mentorscan share life's lessons, giving protégé an honestperspective of themselves, the ways they canmaximize their skills. They can help protégés incharting their career paths by helping them todetermine their role and responsibilities andinspiring them to uncover their potential to thefullest extent possible within the framework ofthe organization.

The success of the mentor - protégérelationship lays not so much in dedication as inrealistic expectations from each other. Thisengagement is one of the most essential and at thesame time one of the most difficult elements tomanage in any organization. From time to time,the organization should recognize achievementsand ask successful mentors to give talks, to keepup the interest of the mentors in the organization.Successful mentoring requires lot of care,planning and conscious efforts by both mentorand protégé. And finally, sensitivity and completeconfidentiality regarding the information sharedby protégés on professional and personal counts isvery much essential.

ConclusionAmong all the resources of organization it is

the people that differentiate organization fromone another. Because other resources such asmoney, material, machine themselves are inactiveand can be made productive through humanresource only. The recipe of success for any

knowledge economy organizations hinges on itsability to leverage human potential, so as todeliver business results. Employee developmentand retention plays a pivotal role in their growth.

Mentoring contributes to social developmentby creating awareness, enhancing knowledge,promoting sociability (Gurukul) and makingpeople conscious of their surroundings andenvironment. Counselling and mentoring are thevital tools of HRD and organizationaleffectiveness. Though a large number oforganizations use their tools, much is needed tomake their application wide based and popular.

Encouraging the institution of mentorship willpositively influence employees commitment,contribution and continuity. With a mentor astheir best friend, guide and philosopher, at workand at times of need, bright young employee areable to raise their performance bar continuously.Further, they will find their organizations andwork environment as one full of fun, excitement,achievement and reward.

References

1. Singh Dr Karan., "The Upanishads and the Gita", RatnaSagar P Ltd, Delhi

2. God World (2002), "Teachings of His Holiness SriGanapathi Sachinthanada Swamiji", Vol.III, Raga RaginiTrust, Mysore

3. Sathya Sai Shree Lakshmi (2000) "A Comprehensiuvelife sketch of Sri Shiridi Sai Baba", Sathya SaiVedanandalayam, Books and Publications Trust,Hyderabad

4.http://www.in.wikipedia.org/wiki/guru-shisyatraditions

Business Manager April 2012 23

Krishna and Arjuna

Chanakya and Chandragupta

Valmiki and Lav-Kush

Adi Sankara and his Guru

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Do’s

Share passion, enthusiasms,success stories, even failures andlearning from failures.

Involve / facilitate involvement ofprotégés in various work groups /meetings etc.

Introduce protégés to as manypeople as possible.

Guide protégés on interpretationof rules / policies / regulations etc.

Extend helping hand to protégésin crisis situations.

Provide guidance with respect tocareer planning.

Listen attentively to the protégés.

If possible, invite them for a cup oftea / snacks / lunch / dinner oncein a while.

Don'ts

Don't assume role of superior.

Don't make Protégé completelydependent on you.

Don't make Protégé wait for toolong to meet you.

Don't give any negative comment /feedback about Company / Policies/ Persons.

Don't Sacrifice your primaryresponsibilities.

Don't give false hope / promises toProtégé.

Don't display any behavior, whichcontradicts Values.

Don't intimidate Protégé.

Do’s & Don’tsFor Mentors

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Ihave been fortunate to have quite a few memorable Mentors throughoutmy career so far. They helped me through many a crisis, guided me andhelped make me the professional that I am today. I thought it might be

useful to share some personal experiences interspersed with academiclearning's on Mentoring and making a success of it.

My first job was that of a Management Trainee in the IR (IndustrialRelations) function, on the shop floor of what was then a leadingpetrochemical company. Straight out of campus, I was honestly, quite lost onday one.The HR Manager introduced me to the plant Technical Head, Mr. SujitMane and said he is your Mentor. During a three hour conversation, Mr. Sujittold me about the plant, technical process, key people, problems, personalexperiences of how he survived many a crisis and suggested that I use the oneweek plant familiarization program to observe workers in the canteen closelyand build bonds with them. I reported to the Plant IR Manager and not toMr.Sujit. One learning straight off the bat was that the Mentor must be fromanother function (not your reporting boss) and someone in a position ofinfluence who can help when needed.

Mr. Sujit asked me to observe workers when they had the first morsel offood in the general shift. It was a sure shot way of knowing whether they likedthe food or not. A lot of worker problems started with quality of food. Acontent worker is an asset.With time, I saw that some workers always smiledwhile others looked perpetually stressed. The time spent in the canteenhelped me get a quick insight into a worker's mind. I introduced myself as aTrainee and asked them for their views on how to deal with various realtime situations.This broke the ice and helped me build bonds.

At our next meeting, Mr. Sujit laid out the broad contours of how thementor-protégé relationship would work. Objectives mutually agreedwere of understanding the organization's culture, meeting short termgoals, my development, feedback and finding solutions. He started bytelling me his own experiences as a trainee, the mistakes he madeand how he learnt things the hard way. By sharing hisvulnerability, he subconsciously built a bond. He repeatedlyasked me for feedback and was ever willing to hear me out.Through the next few hours, Mr. Sujit made me feel that Icould trust him implicitly.

During the next one year,Mr.Sujit's guidance ensuredthat I got excellent exposure to both, the macro andmicro aspects of the factory's operations. Every timeI shared details of mistakes made, he would neverreprimand me,but made me reflect on my actions,think of possible solutions and suggest theoption he would have chosen and why.This waymistakes did not dent my confidence butlearning from Mr.Sujit's solutions enhanced myself-esteem. With time, I began to anticipitateproblems. We first discussed the issuethreadbare,analyzed solutions and agreed onthe best way forward. Mr.Sujit always endedby saying that by virtue of being the personon the spot, I was the best person to choose

Business Manager April 2012 25

Experts’ View

MakingMentoringMemorable

Aparna SharmaDirector-HR, DBOI Global Services

(Deutsche Bank Group)

What I have learnt from my two mentors,Mr. Mane and Mr. Ghosh, is somethingthat no book could ever have taught me.Their selfless dedication towards guidinghas imbibed me with a similar approachwhile dealing with colleagues or protégésI now mentor.

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from available solutions. \ Mr.Sujit had a great impact on me in my formativeyears as a professional and on overall growth. He was always "the go to" personwhenever I had to discuss something official or personal, that I probably couldnot openly speak about with anyone else. He respected the process too andalways made time to give me his ear and help.

Now let us look at the concept of Mentoring from an academic perspective.WHAT IS MENTORING?

It is most often defined as a professional relationship in which an expert(the mentor) who has huge experience and wisdom assists a growth orientednovice (the protégé/mentee) in developing specific skills and knowledge thatwill contribute to the mentee's professional and personal growth.Structured mentoring programs help in many ways -

Guide new employees find their bearings in the organization thateventually results in talent retention and lower turnover cost.Gives senior management an opportunity to nurture employees andshowcase leadership skills.As one grows in age, sharing experiences can be a therapeutic experience.Given the pace of change in the external environment, it becomes a vehiclefor senior management to know how the younger generation thinks andworks.It is s a means to preserve institutional memory.Inculcates a culture of sharing knowledge and insights within theorganization.A mentor can use the program to get knowledge about other parts of theorganization.It can also be used as a tool to effect changes in organization culture.Elevating knowledge transfer from just getting information and to retaining thepractical experience and wisdom gained from long-term employees.Enhancing professional & personal development of employees.

WHO WILL BE THE MENTORS?Period of mentoring: 1 - 2 years.There is no hard rule about the duration as

the mentor - mentee relationship will be one based on trust andconfidentiality, which only fosters the process of mentoring. My first mentor,Mr.Sujit continues to be my mentor even though both of us do not work forthe same organization anymore. He has become my guide for life. Mentormentee ratio: Each mentor can have a minimum of 2 and maximum of 5mentees depending on the time he/she can spare, more importantly qualitytime.

Mentors should undergo some formal learning on the process ofmentoring.This would supplement what mentors already know and make the

program structured. It would help if a special trainingprogram is organized for mentors after the list of mentorsand mentees is finalized. A formal mentoring program inan organization should always be measured and monitored.The measure of development of the mentee to be formallyagreed upon by the pair and the Head of Departmentinformed who would monitor progress on a quarterly basis.With time, I moved into a start-up that was one of the fivebusiness units in a large MNC. I faced many challenges, oneof which was multiple reporting within and outside thecountry. Senior Management probably realized the jobcomplexity and interpersonal dynamics, so appointed avery senior HR professional, Mr. Sam Ghosh, as my Mentor.

The first meeting with Mr. Ghosh was tough yetmemorable. For 4 hours, he quizzed me on just about everytopic under the sun. My interviews for the same job wereeasier in comparison. As he jokingly told me later, I grilledyou to understand the type of person you are and know thelevel of professional experience/knowledge as well. Mr.Ghosh was my anchor in the vast new organization where Iheaded HR for a big captive business in India. I was part of amatrix structure globally with three bosses in differentcontinents. He took me under his wings and helped meunderstand the structure, people, processes and businessdemands since he had worked with the Group for overfifteen years. Mr. Ghosh made me realize the importance offorging partnerships in groups as large as ours. His effortsshortened the learning curve and made me add value tothe job within months of joining. More importantly, heshared small snippets about interpersonal play betweensenior management (critical at senior levels) that went along way in helping me meet the conflicting demands ofthree seniors. By virtue of being from a different businessyet being part of the same group, he took a distant butorganizational view to the various challenges that I facedfrom time to time. His unique perspective helped me comeout with innovative solutions that fell within Group Policy,hence got wider and quicker acceptance. All along he askedme to closely observe how others responded, actually whatwas not being said, so that I could customize the HRsolution. Mr. Ghosh paid me a compliment by saying,'Aparna you have the knack of getting the best of yourmentor i.e.me'. I humbly thanked him for his kind words andsaid that his ability to dispassionately listen encouraged meto raise issues with him. In a lighter moment, he told methat his daughter was nearly as old as me, how ourinteractions made him understand his daughter better. Byinviting me for his annual Ganapthi puja (prayer), Mr Ghoshmade me part of his family. I felt closer to him and his family,a feeling that I cherish even today although we do not workfor the same group any more.

A good mentor continues to guide a protege even whenthey no longer work for the same company or live indifferent continents.Mr.Ghosh's amiable nature allows me toconsult him even now on professional challenges years afterwe worked together. What I have learnt from my twomentors,Mr.Mane and Mr.Ghosh, is something that no bookcould ever have taught me.Their selfless dedication towardsguiding has imbibed me with a similar approach whiledealing with colleagues or protégés I now mentor.

Experts’ View

26 Business Manager April 2012

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

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Mentoring 2.0:Taking

mentoring tothe next level

Dr. Tanvi GautamManaging Partner, Global People Tree

Experts’ View

Mentoring has come a long way from the days of Odysseus.While no one disputes the importance and effectiveness ofa strong mentoring relationship, the form and manner in

which mentoring relationships unfold in organizations hasundergone a change.With the advent of social media, coupled witha more diversified workforce and the emphasis on anywhereanytime learning, we are seeing new and interesting innovations inthe field. Here are some interesting trends around mentoring inorganizations and issues to consider while adopting the same.1. Mentoring trees and cross organizational mentoring:

Any individual has a varying set of developmental needs not all ofwhich can be met by a single individual. These needs evolve as anindividual and her career evolves. No single person has all theexperiences and skills that a mentee can require. For instance, atechnically competent person may be socially incompetent andwould not work for the mentee's need to become better networkedin a new organization. Organizations are also starting to realize thelimitations of the single mentor model.Therefore a large number ofcompanies are introducing: mentoring trees or group/circlementoring.

The mentoring tree involves more than one mentor paired withmore than one mentee. The mentees may be at similar levels ofdevelopment and in need of similar inputs. In many organizations,group mentoring is taking the form of 'affinity' networks whereemployees may be grouped based on gender, culture, disability orsupport needs. The aim is to provide specialized mentoring andsupport for a group of people with similar requirements. Havingmore than one mentor also provides access to more than oneperspective and the lack of availability of one mentor at any timedoes not stop the group from meeting and progressing. Thementoring tree may also be populated with individuals who bringcomplimentary skills to the table and hence enhance the learningof the group as a whole.

Organizations are also realizing that all learning desired by anemployee may not always be contained within the boundaries oftheir own firm. Hence there is now a trend towards cross-organizational mentoring relationships. The Financial TimesStock Exchange (FTSE) 100 companies in UK now havechairman of their firms mentoring women from other FTSEcompanies to expand the range of experiences and learningfor the Mentees. This initiative is directed at improving thediversity in the boardroom and indicates a new era ofcollaboration between organizations.

As with any initiative there are down sides of mentoringtrees. Lack of confidentiality, absence of one on oneinteraction, and the group setting may not always suitindividual tastes. Coupled with the need for profile matchingand logistics of arranging such meetings,the mentoring treesare by no means an easy task. Last but not least, the culturewithin the firm has to be conducive for such group learningand sharing of experiences. In the absence of a culturewhere groups provide safe spaces for learning and failure isnot held against you, the mentoring circles will not thrive.

2. Reverse mentoring: Mentoring at its core is a formof knowledge and experience transfer. If knowledge andexperience can reside at any level and place in theorganization, then it is a fallacy to think that mentoringcan only be top down. Reverse mentoring opens thedoor for those lower in the hierarchy or younger inage to provide mentoring to those more senior tothem. Jack Welsh is often cited as a proponent of

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Experts’ View

reverse mentoring and the idea has beenaround for almost a decade. Started primarilyas a means of helping older executives learntechnology from the new ones, it has nowexpanded itself to the idea that eachindividual in the organization has uniqueinsights and experiences that can be of valueto others. Cisco systems,Ogilvy and HP are justsome of the organizations that have formal orinformal reverse mentoring relationships.While the older workers get great insights intowhat life looks like outside the corner office oftheir ivory towers, the younger ones gainvisibility and status. In the fast changingbusiness environment of today, restrictingmentoring to a one way flow i.e. from top tobottom, limits the learning potential of anorganization.

Culturally, reverse mentoring is achallenging initiative. It requires a certaindegree of openness, trust and self awarenessbefore the program can be successful. It isimportant for organizations to create aculture where learning is more importantthan the status of the mentor. Training theyounger mentors in communication stylesthat help in transfer of learning andexperiences in a manner that makes it moreacceptable to the older executives is alsoimportant. HR may be required to play afacilitator role in helping such initiativessucceed.

3. Role of technology: E-mentoring, tele-mentoring, remote or online mentoring are alljust ways of introducing technology to supportthe mentoring relationship. Technology can

come into the mentoring relationship either inthe creation or administration, as well as thesustenance of a mentoring relationship.Organizations,for instance,may create databasesof available mentors for mentees to sign up undertheir preferred mentors.The administration of thementoring program at a larger scale becomespossible through e-mentoring platforms. Otherorganizations use electronic communitiescreated around topics to foster learning withinorganizations.Still others may pair up mentor andmentees and use technology primarily tofacilitate communication.

There are many advantages to the e-mentoring initiatives. One of them is its on-demand nature that allows employees totranscend space and time. A mentee can beconnected to a mentor who might be at theother end of the globe. Additionally, the scalethat is afforded by technology is unmatchedby the face-to-face mentoring initiatives.Given the high degree of comfort that Gen Yhas with technology and online relationships,this format of mentoring is bound to grow inthe coming years. Infosys launched the'infybubble' in June 2011 launched aninternal Facebook like platform to createcommunities within the firm. All new joinersare batched together on this platform andthis provides them with opportunities tolearn more about the firm and its culturefrom other employees. Speed is anotherattractive aspect of e-mentoring. Whilepeople may not find time to meet face to facealways, a quick response through amentoring system can bridge the gap till the

time that such meeting is possible. By usinge-mentoring platforms organizations alsoend up creating knowledge and competencymaps of people within the organization. Thetracking of mentoring interactions alsobecomes easier.

It should be kept in mind though thattechnology enabled mentoring is no substitutefor real mentoring relationships. It may beuseful for organizations to have the mentorand mentee be in some level of stablerelationship, or have initial face to facemeetings if possible, before transitioning intothe e-model of mentoring. Also it should berecognized that the level of comfort felt byyounger generation around technology maynot be shared by older employees and hencetechnology might even end up becoming abarrier to such relationships. There is also thecost element in terms of the company havingthe band-with to support such initiatives.Although with the advent of a number of freetechnology tools like Skype such initiative arebecoming more and more easy to adopt andimplement.

To conclude, mentoring hold tremendouspotential for helping an organization grownand learn. However the traditional format ofmentoring, one on one, and in person hassome limitations. It is in the interest oforganizations to recognize the cross-functional, networked based, andgeographical spread of knowledge availableto them and use some of the listed tools to make the most of the availableopportunities.

28 Business Manager April 2012

Trends

1. Organizations arealso starting to realize thelimitations of the singlementor model.Therefore alarge number ofcompanies areintroducing mentoringtrees or group/circlementoring.The mentoringtree involves more thanone mentor paired withmore than one mentee.

2. Organizations are alsorealizing that all learning desiredby an employee may not always becontained within the boundaries oftheir own firm. Hence there is nowa trend towards cross-organizational mentoringrelationships.This initiative isdirected at improving the diversityin the boardroom and indicates anew era of collaboration betweenorganizations.

3. It is a fallacy tothink thatmentoring can onlybe top down.Reverse mentoringopens the door forthose lower in thehierarchy oryounger in age toprovide mentoringto those moresenior to them.

4. Each individual inthe organization hasunique insights andexperiences that canbe of value to others.Cisco systems, Ogilvyand HP are just someof the organizationsthat have formal orinformal reversementoringrelationships.

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

6. Given the high degree of comfortthat Gen Y has with technology andonline relationships, this format ofmentoring is bound to grow in thecoming years.

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Experts’ View

Beingpatient &buildingtrust...

Poonam SharmaDirector-HR, Heidelberg Cement

Contemporary mentoring takes many forms and more structuredapproaches are emerging. Formal mentoring has a structure. It involves anagreement to mentor and be mentored, a clear framework for mentoring

and perhaps a program of support. In a formal mentoring relationship, there isdiscussion of expectations, goals and the process to be used. The frequency andduration of contact is agreed and ground-rules are established. Individuals mayestablish their own mentoring arrangements or participate in a mentoringprogram.

You may find two colleagues mentoring each other through peer mentoringprocess or through cascading mentoring process where in each level of theOrganization mentor those below them. Here, mostly it is one on one process. Asin most types of mentoring, there is a place for offering another perspective,expressing an opinion or providing information.However, the decision-makingresponsibility always resides with the person who will implement andexperience the consequences of their own actions. Because the partnersrecognize each other as peers, it can be easier to offer and receive inputas information rather than advice.

Some Organizations also have a structured group mentoringprocess, where one mentor may meet several mentees together.Like quality circles, now mentoring circles also are taking shape,where each person mentors another and is in turn mentored byanother. It is often debated as to what should be the purpose ofmentoring.Does it involve skill transfer or should it be limited toproblem solving? Should the mentor be like a coach with top-down approach or should he be a friend? In a world, where weare now talking of reverse mentoring, with non executivesmentoring executives, the purpose of mentoring has attaineda wider connotation.The purpose of mentoring is today seenas development through a process of learning not teaching.Both mentors and those mentored grow from theexperience. People develop a synergistic relationshipthrough a conversation that enables them to set andachieve goals, make decisions and solve problems.Mentoring is enriching and satisfying for both partners.Unlike coaching, which is often confused with mentoring,the role of the mentor is to build rapport, ask questions,

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To be a good Mentor...

Are you genuinely interested inpeople and committed to helpothers develop and grow?

Are you wired to listen to the unspokenand pay attention to the body languageand other sensory cues of the mentee?

Can you provide sufficient timewith the mentee possesses?

Do you communicate effectivelyand listen actively?

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listen and elicit the mentee's own wisdom. Thementor does not have to be older, wiser or havespecialized knowledge in any field. They need to beskilled in leading a mentoring conversation. Amentor does not provide answers but acts as acatalyst in helping the mentee find his own rightanswers through his skills of asking the rightquestions, not the leading ones but more of theopen ended variety.

Organizations seeking external help for some oftheir key positions today are seen approachingprofessional mentors. These Mastermind mentorsare available for areas like marketing, publicspeaking and ecommerce. Many business coachesare franchisees who have purchased the right to useintellectual property and systems developed by aparticular expert. However, you may find that a fewbusiness mentors and some coaches rely onapplication of mentoring philosophy of listening andquestioning to elicit the mentee's own wisdom.While Coaching is used when there is a well-definedgoal that is based on improving skills andperformance. Mentoring is valuable for careerdevelopment, providing general guidance, settingand achieving goals, making decisions or facilitatingproblem solving. Coaching is about performance,mentoring is personal. So while it is appropriate anddesirable for a person's immediate supervisor tocoach them, a mentor is best not to be in the directreporting line.

Like all professional arenas you have goodmentor and bad mentors. So what does it take to bea good mentor? If you are gearing to be one, askyourself if you are genuinely interested in peopleand committed to help others develop and grow?Can you provide sufficient time with the mentee

possesses? Do you communicate effectively andlisten actively? Are you wired to listen to theunspoken and pay attention to the body languageand other sensory cues of the mentee? A mentormust also be able to resolve conflicts and giveappropriate feedback. He/she needs to be secure inhis/her position and should have been successful inhis/her own field to mentor with conviction.

A mentor is one who shows respect for another'swell-being. Every person, including the mentor, hascertain vulnerabilities and imperfections that mustbe accepted. A mentor should learn to accept amentee's weaknesses and minor flaws, just as thementee must learn to accept the weaknesses andflaws of the mentor. Mentors can, in fact, help amentee explore his or her vulnerabilities andimperfections. Without passing judgment, a mentormust also recognize that differences in opinions,values, and interests will exist. By accepting suchdifferences, a mentor projects openness to others.Also, it pays to remember that biases of any kind willsimply wipe out any success achieved in the past orhoped to achieve in future.

A successful mentoring relationship not onlydepends on the characteristics of the mentor, butalso on the characteristics of the mentee.

A mentee has a strong desire to learn new skillsand abilities, or a desire to develop existing skills andabilities and seeks educational and/or trainingopportunities whenever possible to broaden his orher capabilities.He strives to elevate his or her level oftechnical skills and professional expertise to gain agreater mastery of the job.

For the success of any mentorship program,following a few golden rules will go a long way, likerespecting your mentee's time as much as your own,always asking if you can make a suggestion or offerfeedback, telling your mentee that you don't expectthem to follow all of your suggestions and expectingyour mentee to move toward his/her goals; notyours.

Expressing appreciation to any help your menteegives you and keeping the relationship on aprofessional basis helps recognizing conflicts in arespectful way

The key, however, like in all relationships is inbeing patient and building the initial trust andsustaining it through strong commitment andconviction.

The purpose of mentoring is today seen asdevelopment through a process of learning notteaching. Both mentors and those mentoredgrow from the experience. People develop asynergistic relationship through a conversation.

A mentor does not provideanswers but acts as a catalyst inhelping the mentee find his ownright answers through his skills ofasking the right questions, notthe leading ones but more of theopen ended variety.

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Experts’ View

A Process ofchoice & actof volition..

Rohit Rajput Director, BULLET PROOF Manager (LCC)

Mentoring is well known in big business and many organizations runformal mentoring programs created in-house or borrowed from theiroverseas home office. However, a large number of medium to small

Indian businesses pay only lip service to the concept and can rarely differentiatemanaging on the job from mentoring. As author John Hersey says,“The singlemost important job of a leader is to create leaders, not followers" and that iswhat differentiates mentoring from getting someone competent in doing justtheir job. Lets understand the difference between a boss, mentor and a coach asthey are often confused. A boss has authority over his team, gives direction andthe boss is always right in a hierarchal culture like India. Most bosses also tendto think of gaps and weakness in an employees skills and performance.

A mentor is someone who is accessible and ready to give support and keenlistener,who the Mentee follows out of respect.Importantly the mentor focuses onstrengths,giving right directions and ensures mentee does not become defensive.A mentor usually knows more than mentee about subject & is someone inside theorganization or in the same work space.A mentor can be an direct boss,a skip levelboss or someone senior in another division.A Coach need not know the subject ororganization at all,he asks questions. & can be someone internal or external to theorganization.The next understanding we need to develop is what is critical steps toa mentoring process and how should we overcome some barriers to mentoring.Amentoring process is a positive feedback loop with each cycle strengthening thetrust and performance of the mentor and mentee. The most importantunderstanding to develop is that mentoring is a process of choice and act ofvolition. An effective mentoring process is always bottom up and not top down.

The first actor in this process is the organization: it creates an environmentwhere everyone is encouraged to have a mentor, It creates a events in anemployees life in the company where they regularly ask and answer forthemselves how they want to grow (and not driven by any appraisal cycle), theorganization is ok and makes time and resources available for employees to stepout from day to day transactions and goals to focus on growth.The second actoris the mentor, someone who accepts his role as a responsibility for the rightreasons- to develop someone and not just to fulfill a leadership obligations.Someone who is willing to step out from the formal and professionalboundaries to become personally invested in the mentee's future. A mentormust set agreements, time frames to follow up and consistently and objectivelymeasure the results of the mentee to make sure this mentoring process doesn'tjust become a periodic conversation The final actor in this process is the mentee:who must learn to listen without prejudice and accept the wisdom of thementee, who must set high goals and who must learn to ask for help leaving theego behind.That's why mentors must be chosen and can never be enforced.

After many years of developing leaders, one of the skills that requires thegreatest investment of our time as facilitators is in developing mentoring skills.Some of the most common reasons we've heard over the years range from:

I keep having a continuous dialog with my team on their development, do ineed a structured process? Yes, there is nothing casual about the

mentoring process. Both parties in a mentoring process should realizethis is a development process with goals and accountability

It seems odd to be in a formal process and ask for the mentee'spermission after all i am senior to him/ her? While informal

conversations are great, being selected for a formal mentoringprocess communicates a very important message to theemployee " they are important". Get over your hesitation andask them

Will he/she be open to mentoring from me? You neverknow till you ask, make it safe for them to say no!

I have tried helping him/ her in the past, but it hasn'tworked? Then try it out with a different person, ask a

peer to help you in this process and you canreciprocate by mentoring someone in their team. It is

important to keep connecting with you co mentorto stay on the same page.

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Dr. Jaya Bhalla

National Institute of FinancialManagement, Faridabad

Climate change is a goingconcern for all of us. Burningoil, coal & gas, making

electricity emitting too much carbondioxide (Co2) is causing climatechange. In our workplace we burnenergy, consume resources andgenerate waste and it becomes anobvious place to tackle climatechange. The IPCC concluded thatthe cause of climate change is due toincreased amount of green housegas emission like carbon dioxide(Co2) in the atmosphere which trapsthe sun heat.

The need of the hour is to stoprising Co2 emission by reducing thefossils fuels energy all over theworld. It is important to adoptclimate-friendly ways of living andworking. Environmental protectionbenefits every one. Climate changeand environmental destructions arethe main issues which impact thelife of everyone in the organizationand world at large. There is anurgent need to adopt green gotechniques which will improve theenvironment and reduce theirfurther destruction.

Now a days there is an immensepressure on employers for moreclimate-friendly products & services.A relevant focus should be placed onjobs and organizational design. HRcan work collaboratively with theemployees to encourage them tothink more climate-friendly whiledeveloping products & services.Manufacturing companies need tohave a look for their supply chainefficiencies and need to answer thefollowing important issues likematerial used in the product, how itis manufactured or process ofmanufacturing, its distribution inthe market and re-use of thepackaging of the product. Greenmanagement initiatives has become

an important factor in forwardthinking corporate around theworld.HR is the department in thecompany to take the lead and startthe green movement as they aredirectly involved in the creation andimplementation of climate -friendlyprogrammes.HR should initiate thesteps so that employees must beinspired, empowered andenvironmentally aware of benefitsof carrying out green managementinitiatives and programmes.HRprofessionals can encourage andbring the basic change in theattitude of the present employeesand can oriented the new employeesto adopt green go actions in their dayto day working. Small or big,manufacturing or service sector,public or private any companyaround the world can go green andmake a huge difference in their life.

Corporate can motivate theiremployees to perform theenvironmental friendly activitiessuch as:

1. Make your office paper less.

2. Encourage correspondencethrough mail.

3. Put computer on sleep mode atlunch breaks & tea breaks and atmeeting times.

4. Turn off lights & air conditionerswhen not in use.

5. Use energy efficient lightingsystem like occupancy sensor.User energy star equipments.

6. Use energy efficient officemachines to cut down the costand carbon emission. Chooseprinters and photocopies whichallow double sided printing andcopying.

7. Recycle your office products likepaper, plastic, cans, glass etc.

8. Keep reusable spoons, forks &

chopsticks in office to eliminatewaste.

9. Keep small plant on desk it willact as a natural air filter, absorbpollution & Computer radiation,protect from germs, reducedfatigue, cough, sore-throat andreduces stress level.

10. Tele conferencing, web-conferencing or videoconferencing can be costeffective. The technology toenable virtual meeting is nolonger expensive, infact it can befree.

11. Buy recycle content productslike binders, paper products,printer cartridges, furniture etc.

12. Use organic products.

13. Buy refurbished goods likeprinter, photocopier, fax-machines etc.

14. Participating in eventsimproving environment likeplant a tree day, trash pick-upday etc.

15. Minimizing water consumptionby using faucet aerators.

16. Flexible timings, Telecommuting.

17. Promoting walking, biking,taking public transit.

18. Encouraging/promoting/providing carpooling foremployees.

Going green not only haveeconomic benefits to theorganization but it also have manyintangible benefits like reduction instress, reduced absenteeism andturnover, reduced emission,increase employee morale, strongpublic image, increase productivity,increase employee retention,improves work life balance and soon.

Corporates towardsGreen EraNow a days there is an immense pressure on employers for more climate-friendlyproducts & services. A relevant focus should be placed on jobs and organizationaldesign. HR can work collaboratively with the employees

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Surrogate HR creates a 'minuscule' space inthe time-space dimension where mind receivesdiverse experiences, feelings and emotions beyondintellect…

the emotion is the basisfor human existence whichin the form of guidancecontinuously asks to developintellect. If intellect starts gainingdepth, the emotions ceaselessly seek thewidth. One starts experiencing a beautifulform of self as width is expanded. Emotionsstart absorbing the pull of gravity with suchstrong feelings that intellect hands over the control toemotions.

Management wants to create vision as an entity to drivehuman beings with objectives. Vision is external, path isknown and inflexible; human likes freedom, his journey isunknown and flexible. The main job of HR function is tointegrate an inflexible part with a flexible whole. Often theexercise fails to deliver results as the whole is blamed as'disgruntled' when the part sticks to its own rigidity. Let ussee popular HR related words: motivation, inspiration,partnership and empowerment. Organizations use theconcepts of incentive to motivate employees to give theirbest. Does it really work for them? Motivation is a journeywhen the employees are pulled towards the destination.Motivation is about strengthening goal-oriented activities, itis a form of exploitation of precious human energy for acause located outside the self. It manipulates weaknesses andtries to control human behavior. Motivation relates to'boosting morale' and 'willingness to give best'. Inspirationawakens feelings; it is an appreciation when he sees his innerself naturally moving towards the desired goal. Inspirationcan create turmoil within and force someone to venture inthis unchartered path. Partnership unites all to feel abundantin the journey. Finally, an empowered human being carriesout the spirit of unity to its logical goal. Who is a superiorperformer in the organization? Is he the person who exhibits,or who inspires? The hierarchical nature of organizationundervalues love and inspiration that can influence andtransform human. He lacks power give him the strength tochoose. He is no good in doing things give him an opportunityto see its value. He feels violent from within give him theinspiration to observe self. He is feeling helpless give me aninner eye to recognize his own potential. If not addressedproperly, the gaps can create stress in human which mayassume a disproportionate shape to destroy the whole society.But, a human under stress can also find ways to make it anopportunity to reassure his exploited self and help him toinclude new circumstances to use his extraordinary talents.Surrogate HR is about valuing the essence of human behindall these feelings and emotions.

Thatwhichhas intellectand emotion

An organization is like a boat sailing in the business arenato acquire experiences and make a joyful journey. Inorder for it to float, it must use its intellectual innovation

capabilities as its depth and collaborative spirit as its width. Thedepth explores the mental power while the width tries to meetpassion. Innovation helps it to move from limited to unlimitedresource base and collaboration assists to shift focus fromknown to unknown delivery arena. If it does not have sufficientdepth or width, an organization is likely to sink in the voyage. Tosail through, leader as a boatman has to have right kind ofpeople as mainsail; without them the leader may drift theorganization away from its destination.

In the Industrial age, the factory Model of education has beenvery useful for an entry into an organizational space whereservices are managed through process standardization and re-use. Conventional management theories and practices haveserved them well for many years. Now, the world is passingthrough an expansion phase of the cycle. The old does not work asbefore because human being is learning to transform hisemotions silently to focus more into his passion. Now thebusiness organization is actively discussing about changingsettings with the understanding of virtues and 'internalintelligence' of human. They bet on them as catalysts to reallyimpact on the complex interaction patterns of individuals withintheir immediate environment. New questions are evolving. Canemployees working inside organization make up as theworkforce, like any other resources? Can an organization providea structure to support, incorporate and assure his growth? Theword 'capital' before human refers to this fact that the talentsindividuals possess can contribute to an organization in a muchbigger sense. The realization is the prerequisite for theexecution. An organization has to understand the basic fact thata bright young man with a flair for something he loves most isdirected to an end that he cherishes most. Let us introspect it all.

Human has four functional capabilities that can work for himin coordination with each other; a) intuitive, connected tocontinued existence of body like breathing, sensing, b) moving,connected to learning movement like writing, eating, c)intellectual, connected to thinking, d) emotional, connected tofeelings and emotions. Intellect is the gift for analysis andinterpretation that gives ruling, but emotions provide guidance.Decision-making is an outcome of intellectual progressionleading to a specific course of action from multiple choices.Emotions help discovering partners in the value creationprocess. Value comes from the combination of both; one withoutthe other loses attention of the whole. Correct understanding ofthe value always has a new tale to tell. Intellect is anchored at thebottom of the flow when the beautiful emotions merrily flow atthe surface. Life evolves the way human feels the feelings and

CHINMOY SARKARAuthor, AXELL

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BASIC

Sr. Nature of Industries Mode Un-Skilled Semi-Skilled Skilled Highly Skilled Special Allowance

REVISED MINIMUM RATES OF WAGES IN MAHARASHTRAThe Rates of Basic Pay & Special Allowances for the period 01.01.2012 to 30.06.2012

1 Advocates & Attorneys P.M. 3700.00 3800.00 3900.00 -------- + 2004.902 Automobile Repairing P.M. 4800.00 5100.00 5500.00 -------- + 1545.603 Bakeries P.M. 4200.00 4700.00 5200.00 -------- + 1737.754 Cotton Ginning & Pressing P.M. 3105.00 3220.00 3400.00 + 1449.005 Cloth Dyeing & Printing P.M. 4100.00 4400.00 4900.00 + 1737.756 Cashew Processing P.M. 2600.00 2800.00 3000.00 + 1421.007 Cardboard-Strawboard P.M. 2250.00 2275.00 2350.00 -------- + 1267.208 Chemical Fertiliser P.M. 3310.00 3410.00 3510.00 + 1408.009 Canteens & Clubs P.M. 3050.00 3100.00 3200.00 -------- + 2004.9010 Cement & Cement Base P.M. 1204.00 1282.00 1360.00 + 2592.0011 Construction of Road P.M. 4750.00 4850.00 4950.00 + 2004.9012 Cinema Exhibition P.D. 270.00 315.00 360.00 450.00 + 1710.3113 Cycle Mechanic Workshop P.M. 4500.00 5000.00 5500.00 + 1344.0014 Dispensary P.M. 4460.00 4560.00 4660.00 + 2004.9015 Drug & Pharmaceuticals P.M. 3110.00 3210.00 3310.00 + 2004.9016 Dairy (Dugdhalaya) P.M. 1850.00 1950.00 2050.00 -------- + 1518.0017 Exercise Book P.M. 2880.00 2980.00 3080.00 -------- + 2004.9018 Eatable Tobacco P.D. 3000.00 3200.00 3700.00 + 1489.5019 Engineering P.M. 3530.00 3630.00 3730.00 -------- + 2004.9020 Factories Residual

(Factories not covered under Schedule) P.M. 4500.00 5000.00 5500.00 -------- + 1344.0021 Fountain Pen P.M. 4800.00 5050.00 5300.00 -------- + 1828.5022 Film Production (Cine Studio Lab) P.M. 4700.00 5200.00 5700.00 + 1536.0023 Glass Bulb P.M. 3550.00 3600.00 3700.00 + 2004.9024 Glass Industry P.M. 3380.00 3480.00 3580.00 + 2004.9025 Hotels & Restaurants P.M. 3050.00 3100.00 3200.00 -------- + 2004.9026 Hair Cutting Saloon P.M. 3430.00 3530.00 3630.00 -------- + 2004.9027 Hospital P.M. 3260.00 3360.00 3460.00 +28 Ice & Cold Drinks P.M. 2830.00 2930.00 3030.00 -------- + 2004.9029 Liquor P.M. 3510.00 3810.00 4110.00 + 2004.9030 Laundry P.M. 3730.00 3830.00 3930.00 -------- + 2004.9031 Optical Frames P.M. 3010.00 3110.00 3210.00 + 1382.4032 Oil Mill P.M. 4300.00 4800.00 5300.00 -------- + 1737.7533 Paper & Paper Board P.M. 5100.00 5600.00 6100.00 + 1069.5034 Plastic P.M. 4300.00 4800.00 5300.00 + 1344.0035 Paint & Varnishes P.M. 3740.00 3840.00 3940.00 + 2004.9036 Poha/Kurmura P.M. 3800.00 4250.00 4400.00 + 1737.7537 Powerloom (Above 184) P.M. 230.00 240.00 270 (B) +

Powerloom (Less than 184) 230.80 240.80 270.80 (B) +38 Printing Press P.M. 4400.00 4500.00 4600.00 + 2004.9039 Public Motor Transport P.M. 4200.00 4600.00 5300.00 + 1737.7540 Readymade-Garments P.M. 3960.00 4060.00 4160.00 + 2004.9041 Rubber P.M. 3200.00 3350.00 3500.00 -------- + 1576.7542 Rice Flour & Dal Mill P.M. 4200.00 4600.00 5300.00 + 1737.7543 Rubber Balloon P.M. 3800.00 4100.00 4300.00 + 1737.7544 Steel Furniture P.M. 3640.00 3740.00 3840.00 -------- + 2004.9045 Seepz P.M. 4500.00 5000.00 5500.00 + 1780.0046 Stone Breaking & Crushing P.M. 3950.00 4250.00 4750.00 -------- + 1669.5047 Soaps & Cosmetics P.M. 3540.00 3640.00 3740.00 + 2004.9048 Shop & Establishment P.M. 5000.00 5400.00 5800.00 -------- + 1004.4049 Sweeper & Scavengers P.M. 4600.00 + 1449.0050 Saw Mill P.M. 4400.00 4900.00 5400.00 -------- + 1344.0051 Tanneries & Leather manufactory P.M. 3200.00 3300.00 3400.00 -------- + 2004.9052 Utensils P.M. 4300.00 4400.00 4500.00 -------- + 2004.9053 Wooden Photo Frames P.M. 2940.00 3040.00 4040.00 + 2004.9054 Wooden Furniture P.M. 3410.00 3510.00 3610.00 -------- + 2004.9055 Watch Straps Mfg P.M. 4800.00 5100.00 5500.00 -------- + 1737.7556 Handloom P.M. 3000.00 3500.00 4000.00 + 1173.0057 Soil Pot Maker P.M. 3500.00 3700.00 3900.00 + 1214.4058 Forest or Forestry P.M. 5200.00 5600.00 6000.00 + 1023.0059 Silver Industries P.M. 4500.00 5000.00 5500.00 + 1408.0060 Tobacco & Bidi Industries P.D. 65.7061 Gram Panchayat P.M. 2070.00 2170.00 2270.00 + 1467.0062 Colour & Chemical Inds (Dyes & Chemicals) P.M. 4200.00 4500.00 4800.00 + 1821.6163 Vita & Khil P.M. 3300.00 3500.00 3700.00 + 1218.0064 Stable P.M. 3300.00 3600.00 3900.00 + 2151.60

GOVERNMENT NOTIFICATIONS

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Employees' State Insurance Act, 1948Labour and Employment Department, Sachivalaya, Gandhinagar

Dated the 3rd January, 2012

No: GHR-2012-04-ESI-18-2011-688529-M(3):- Whereas by a notification of the Government of Gujrat No. : GHR-2011-117-ESI-18-2011-688529-M(3) dated the 30th September, 2011 which was published as required by sub-section (5) of section 1 of the Employees' State Insurance Act,1948 (34 of 1948) at pages 42/1 to 42/2 in the Gujrat Gazette Extra ordinary, Part-I-L, dated the 2nd November, 2011, the Government ofGujrat after consulting the Employees' State Insurance Corporation and obtaining the approval of the Central Government gave onemonth's notice of it's intention of extend the provisions of the Act to the class of establishments as specified in the Schedule of the saidnotification;

AND WHEREAS, no objection and suggestion has been received from any person in respect of the said notification;

NOW THEREFORE, in exercise of the powers conferred by sub-section (5) of section 1 of the Employees' State Insurance Act, 1948 (34of 1948), the Government of Gujrat, in consultation with the Employees' State Insurance Corporation and with the approval of theCentral Government, hereby extends the provisions of the said Act to the classes of establishments specified in column (1) and situatedwithin the areas specified in column (2) of the Schedule annexted hereto in the Gujrat state, namely :-

SCHEDULE

Description of establishments Areas in which the establishments are situated(1) (2)

The following establishments whereon ten or more persons are employed, All areas where the provisions of theor were employed on any day of the preceding twelve months, namely :- Employees’ State Insurance Act, 1948, have(1) Shops; already been brought into froce under(2) Hotels; sub section (3) of section 1 of the Act.(3) Restaurants;(4) Road Motor Transport establishments;(5) Cinemas inlcuding preview theatres;(6) Newspaper establishments as defined in clause (d) of section 2 of theWorking Journalists (Conditions of Service) andMiscellaneous Provisions Act, 1955 (45 of 1955).

By order and in the name of the Governor of Gujarat.(Raman Maheria)

Deputy Secretary of Government

Employees’ Provident Fund OrganisationBhavishya Nidhi Bhawan, Cama Place, New Delhi-110 066

No.Invest.I/3(2)/133/11-12/ROI/51350 Date : 14.3.2012

All Regional Provident Fund Commissioners Officers-in-Charge Regional Offices/Sub-Regional Offices

Subject : Declaration of Rate of Interest for the Employees Provident Fund Members Account for the Year 2011-12.

Sir,It is to inform that Ministry of Labour and Employment, Govt. of India, vide its letter no. R-11018/1/2010.SS-II dated 14.3.2012 has

conveyed the approval of the Central Government under para 60(1) of Employees' Provident Fund Scheme, 1952 to credit interest @8.25% for the year 2011-12 to the account of each member of the Scheme.

You are, accordingly, requested to issue necessary instructions to all concerned for crediting the interest to the members' accounts.

Yours faithfully,(RAJESH BANSAL)

Financial Advisor and Chief Accountant

GOVERNMENT NOTIFICATIONS

Maternity Benefit Act, 1961F.No. S-36025/01/2011-SS-1 Dated 19.12.11

Notification

S.O. 2831 (E) .- In exercise of the powers conferred by sub-section (2) of section 8 of the Maternity Benefit Act, 1961 (53 of 1961), theCentral Government hereby makes the following amedments in the notification of the Government of India in the Ministry of Labourand Employment, published in the Gazette of India, Extraordinary, vice number S.O. 2016 (E) , dated 11th August, 2008, namely-

In the said notification, for the words "one thousand rupees to two thousand five hundred rupees", the words "two thousand fivehundred rupees to three thousand five hundred rupees" shall be substituted.

2. This notification shall come into force on the date of its publication in the Official Gazette.

Ravi Mathur, Addl Secy.

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Employees State Insurance Corporation Panchdeep Bhawan, C.I.G. Road, New Delhi-110 002

No. S- 11/12/2/2008-Rev.II March 14, 2012

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

Subject : Amendment/modifications in New Inspection Policy- 2008.Sir/Madam,

A number of new initiatives have been taken and also that the ESI Act has been amended w.e.f 1/6/2010, as such the NewInspection Policy 2008 promulgated vide Hqrs Office letter no. S-11/1212/2008-Rev-II dated 16/6/2008 requires certain modifications.The feedback/suggestions in this regard have been sought from RDs/Director (I/C)/JD(I/C). Considering all the suggestions receivedand deliberations held, the existing New Inspection Policy 2008 is being amended/modified. The object of this new amendedInspection Policy is to create a sense of cooperation and mutual trust amongst the stakeholders i.e. employers, beneficiaries and theCorporation. Our focus has to change and we have to ensure that coverable employees are covered and they get benefit of the ESTScheme and that willful defaulting employers are dealt with severely under law.

However, before implementing this amended provisions of New Inspection Policy, the Director General has desired that cleansingthe employers and employees/IPs data available with RO/SRO/DO for use in Project Panchdeep must be given top priority so that ouravailable data base is realistic. The amended New Inspection Policy is being issued as under :-

A. Priority for inspections

The priorities of the units to be inspected shall be in the following order:-

1. All New covered units

2. Defaulting units.

3. Closed units

4. Complying units with following conditions:-

(a) Units employing more than 250 employees may be inspected once in two years

(b) Units employing less than 250 employees may be inspected once in three years.

(c) Security agencies, manpower agencies, housekeeping agencies, labour supplying agencies etc should be subjected to annualinspection.

(d) Inspection will be done only for one year which is the oldest of pending period, however, it is the prerogative of RegionalDirector/Director(I/C)/JD(I/C) if he/she has reasonable doubts, can order for the inspection of records for the remaining periodbut in no case beyond five years.

(e) Units falling in any of the above priorities which are due for inspection and their period of inspection is likely to be over 5 yearsshall be given topmost priority

B. Action in case of non production of recoril for inspection

Wherever employer fails to produce the record, action for filing prosecution must be completed within one year from the date offirst visit by Social Security Officer. In case of non-submission of records on the first occasion, the Social Security Officer will fixthe next date of inspection in consultation with the employer and issue him a notice on the spot on which the signature of theemployer shall be obtained. If it is found that the employer is deliberately avoiding production of records, then prosecution actionbe recommended to RO/SRO/DO. The Officer sanctioning prosecution shall also keep in mind that prosecution is not filed as a matterof routine but only against the chronic and willful defaulters.

C. Survey and date of coverage

I. Surveys of uncovered factories/establishments for coverage, if coverable, should be a continuous exercise. However, intensivesurveys should be conducted at least three times in a year - in April-May, in September-October and then in December-January.Help of State Government, Trade Unions and EPFO should be taken in this exercise.

2. The SSO is required to recommend the date of coverage w.e.f the date the unit stands coverable, on the basis of records inspected,recommending the coverage at the time of survey of the Factory/Shop/Establishment as a topmost priority. The SSO is expectedto undertake this exercise during the very first visit or in some cases during subsequent visit. It has been decided that the SSOshall not withhold the recommendation of coverage for want of production of Books of Accounts/Vouchers by the employer, asthe Corporation always reserves the right to go for detailed verification of records including that of Books of Accounts andcoverage may be decided from retrospective date in deserving cases.

D. Complaint cases

In case of complaints containing verifiable facts, surprise check shall be conducted. In case of other complaints, the same shouldbe first examined in RO/SRO/DO and its authenticity confirmed. If the complaint is found genuine, then in the first instance, theemployer should be called for ascertaining the facts of the complaint. Thereafter, employer should be asked to take corrective stepsin a given time frame. If the employer has not taken corrective steps within the specified time frame, then detailedinvestigation/inspection should be carried out and appropriate action as per law should be taken.

E. Duties and responsibilities of SSOs

The duties and responsibilities of the Social Security Officers shall be as under :-

GOVERNMENT NOTIFICATIONS

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GOVERNMENT NOTIFICATIONS

1) He/she shall ensure that all coverable employers and employees within his jurisdiction are registered with ESI Corporation andall the employees are issued with TIC/Pehchan cards.

2) He/she shall provide necessary assistance to all the beneficiaries in getting the benefits for which they are eligible.

3) He/She shall assist the employers in getting them and their employees registered, preparation of monthly contributionrecords/challan and payment of contribution.

4) He/she will also publicize the various benefits available under the ESI Act 1948 among the stakeholders.

5) He/she will conduct inspections in order of priorities laid down in the Inspection Policy in force from time to time.

6) While conducting the inspection, he/she shall ensure that all the employees working in the premises have been issued with thePehchan cards. If he/she finds any employee who is not having Pehchan cards, he/she shall ascertain the reasons thereof andtake necessary steps for capturing their biometric data, preparation of Pehchan cards and delivery of cards to IP through BranchManager.

7) He/she shall also discuss with the employees working in the premises, at the time of inspection, about availability of benefits andshall make a report about their grievances, if any, on any type of deficiencies in Benefit Delivery System.

8) In addition to the above the SSO shall also carry out duties and responsibilities as assigned to them by theRD/Director(I/C)/JD(I/C) of RO/SRO/DO.

F. Methodology of Survey/Inspection

I. The Social Security Officers while visiting the Units for survey / Inspection will make it a point to meet the Occupier / ChiefExecutive of the factory / establishment and handover observation slip to him/her under proper acknowledgment. If Occupier /Chief Executive refuses to accept the observation slip, this fact should be mentioned in the Inspection Report and the saidobservation slip should be sent to him/her by Regd. post with AD. Even if there is no observation, this should be mentioned in thereport before obtaining the signature of the Occupier / Chief Executive of the factory/establishment.

2. If it is found that any contribution is payable on particular amount which should have been included in wages then it should bedecided on the spot during the Inspection after going through the documents. Tendency to record observation that "furtherobservation if any, will follow from Regional Office after further examination of records" must be avoided.

3. Whenever an inspection is done it should be complete in all respect and final observation must be recorded properly. TheInspection Report of SSO will be treated as complete only where ledger verification is conducted. The SSO after checking thebooks of accounts as per the extant instructions on the subject will incorporate all the details in the Inspection Report.

4. The SSO shall be free to move within his jurisdiction and will give a date-wise list of units well in advance to Regional Office/Sub.Regional Office/Divisional Office that he/she is going to visit for Inspection purpose in a particular month.

5. While visiting employer premises they should take round of the premises and interact with the employees with regard to theircoverage/issue of pehchan card/ satisfaction level etc. Where the SSO finds that the workers were not covered, he will get suchemployees registered online through employer and in case of non-cooperation by employer, he will immediately get DeclarationForms filled and handover it to the Branch Manager and TICs issued on the same day or on the next day. SSO shall also monitorthe capturing of Biometric details of employees and their families so detected for preparation of Pehchan Card. After capturingof Biometric details, Pehchan Card shall be delivered to the employee within a week.

6. In case of new coverage, a date should be notified in advance when ESIC officers should visit the factory/establishment and getthe employees registered online and • hand-over TIC/Pehchan Card personally to employees. It is being clarified that from nowonwards the responsibility of handing over/delivery of TIC/Pehchan Card is that of ESIC and in no case TIC/Pehchan Cardwould be handed over to employer for distribution.

G. Monitoring of inspection work :

The Regional Directors/Director (I/C)/JD (1/C) would monitor the performance of the Social Security Officers on month tomonth basis and he/she would be accountable for non-performance/lower performance of the SSO towards coverage of newunits/coverable employees.

1. The SSO have to submit tour diary along with Inspection Reports on weekly basis to RD/Director (I/C)/JD(I/C). A DO Letter willalso be addressed to RD/Director (I/C)/JD(I/C) every month (by the 7th of the next month) by the SSO giving the details of theactivities undertaken by the SSO.

2. The SSO will have to append a note in the monthly DO indicating the steps taken for covering coverable units/coverable employees,issue of TIC/Pehchan card.

3. At the end of the financial year SSO will give a certificate that "no coverable unit is left uncovered and no coverable employee isleft uncovered in a covered unit in his/her inspection division and all covered employees have been issued with Pehchan Cards".

4. SSO should conduct at least one survey and one inspection each working day in such a way that a target of 20 inspections and 20surveys in a month is achieved.

5. One year inspection with books of Accounts verification will be treated as one inspection in respect of units having employmentstrength upto 250. For the Units having employment strength more than 250 persons, RD/Director (I/C)/JD(I/C) will decide theweightage on the basis of quantum of work.

The instruction no. S-11/12/2/2008-Rev-II dated June 16, 2008 issued earlier on this subject stands modified to the extent of thisInstruction.

The above instructions will be effective from 1st April, 2012. This issues with the approval of the DG/IC. Please acknowledge thereceipt.

Yours faithfully,

(A.P. TRIPATHI)

JT. DIRECTOR (REVENUE)

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

Further to amend the Bombay Shops and Establishments Act, 1948.

WHEREAS it is expedient further to amend the Bombay Shops and Establishment Act, 1948 (Bom. LXXIX of 1948), for the purposehereinafter appearing; it is hereby enacted in the Sixty-second year of the Republic of India as follows :-

1. Short tittle - This Act may be called the Bombay Shops and Establishments (Amendment) Act, 2011

2. Amendment of section 7 of Bom. LXXIX of 1948 - in section 7 of the Bombay Shops and Establishment Act, 1948 (Bom.LXXIXof 1948) (hereinafter referred to as "the principal Act:),-

(a) In sub-section (2-A) for the words "upto the end of the year for which it is granted" the words "for a period of twelve monthsfrom the day on which it is granted or renewed" shall be substituted;

(b) In sub-section (3-B) for the words " for a period of three years at a time, on payment of the fees for that period, so as to be validupto the end of the third year from and including the year in which it is granted or renewed, as the case may be". the following shallbe substituted, namely:-

"for a period of thirty-six months at a time, on paymet of the fees for that period, so as to be valid upto the end of thiry-six monthsfrom the date on which it is granted or renewed, as the case may be".

3. Amendment of Section 11 of Bom.LXXIX of 1948 - In sub-section (1), in clause (a), for the words, figures and letters"closed laterthan 8.30 pm." the letters "closed later than 10.00 pm." shall be substituted.

Employees' Provident Funds (Amendment) Scheme, 2012F.No.S-35012/06/2011-SS-II Dated: 24.01.12

Notification

S.O.154 (E).- In exercise of the powers conferred by section 5, read with sub-section (1) of section 7 of the employees'Provident Funds and miscellaneous Government hereby further makes the followingh amendment in the Employees' providentFunds Scheme, 1952, namely -

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

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

2. In the Employees' Provident Funds Scheme, 1952, in paragraph 22, for sub-paragraph (1), the following shall be substituted,namely :-

"(1) The Central Provident Funds Commissioner shall be Secretary of the Central Board and of the executive Committee. Theadditional Central Provident Fund Commissioner in charge of a state shall be secretary of the Regional Committee of the Stateor Union Territory where the State has more than one regional office, the Regional Provident Funds Commissioner-in-charge ofthe Region shall be the Secretary of the Regional Committee of the State or Union Territory within his jurisdiction".

Ravi Mathur, Addl Secy.

GOVERNMENT NOTIFICATIONS

The Sales Promotion Employees(Conditions of Service) Act, 1976

Vide the Gazette of India Extraordinary, Pt. II Sec, 3(ii), issue No. 404, datedthe 3rd March, 2011 at p. 1

Dated : 24th February, 2011

S.O. 471 (E).- In the notification of the Government of India in theMinistry of Labour and Employment (Co-ordination Section) vide numberS.O.217(E), dated the 31st January, 2011 published in the Gazette of India,Extraordinary, Part II, section 3, sub-section (ii), dated the 1st February, 2011,in line 12, for the word ‘cleaners’, read ‘cleaner’.

The Contract Labour (Regulation andAbolition) Act, 1970

Vide the Gazette of India Extraordinary, Pt. II Sec, 3(ii), issue No. 971, datedthe 25th May, 2011 at p. 1

Dated : 25th May, 2011S.O. 1170 (E).- In exercise of the powers conferred by sub-section (1) of

section 10 of the Contract Labour (Regulation and Abolition) Act, 1970 (37 of1970), the Central Government, after consultation with the Central Advisorycontract Labour Board and having regard to the conditions of work andbenefits provided for the contract labour and other relevant factorsenumerated in clauses (a) to (d) to sub-section (2) of the said section, herebyprohibits the employment of contract labour in the job of barrel filling andsmall can filling (upto one litre) in the establishment of Lube Oil BlendingPlant of M/s. Indian Oil Corporation, Budge Budge, Kolkata, West Bengal.

The Contract Labour(Regulation and Abolition)

Act, 1970Vide the Gazette of India Extraordinary, Pt. II Sec,

3(ii), issue No. 1494, dated the 2nd August, 2011 at p. 1

Dated : 2nd August, 2011

S.O. 1787 (E).- In exercise of the powersconferred by sub-section 31 of the Contract Labour(Regulation and Abolition) Act, 1970 (37 of 1970), theCentral Government, after consultation with theCentral Board, hereby exempts the Kandla PortTrust, Ghandhidham, (Kutch), Gujarat from theapplicability of the notification of the Governmentof India in the erstwhile Ministry of Labour No. 319(E) dated the 8.5.1991 [in the Schedule against serialNo.8(i) and (ii) thereof] for a period of one year witheffect from date of publication of the notification inthe Gazette of India, subject to the followingconditions, namely:-

(i) the minimum wages of the contract workersshall be equivalent to the wages of the lowestcategory of the regular workers of the said Port andshall be paid through bank; and

(ii) in the meantime, to fill up the vacant posts ofregular sweeping cleaning staff.

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Q. We have initiated disciplinary proceedingsagainst an employee on the ground of seriousmisconducts committed by him. On each dateemployee creates nuisance and disorderly scene,abuses Management Representative, E.O. and evenwitness. Employee on each date requests foradjournment on one pretex or the other. if hisrequest is not accepted, he bycotes the enquiry. Theresult is that enquiry is delayed and restrained.What should we do and how should E.O. proceedin such a case?

Ans. : In such a case where employee is behavingdisorderly and in filthy manner, E.O. should firstwarn him to mend his way and record in proceedings.If E.O. feels that adjournments are on false grounds,he may refuse to accept the request by recordingsound reason in proceedings and if worker bycott theproceedings, E.O. even may go for recordings theevidence of Management witnesses by warning theworker that he may lose his right of Crossexamination in case he does not participate in theenquiry. The main crux of the problem is that workeris trying to build up psychological pressure onManagement and E.O. which should not be allowed tohappen. In such a situation, E.O. should narrate theactual happenings and behavior of employee and alsorecord that he has been given opportunity at eachstage to defend himself.

You should maintain during enquiry and delayingtactics of worker should be recorded on eachproceedings.

Bombay High Court in a similar case (2000 CLRVol. 1 Page 1), has also held that where workerbehaved disorderly, E.O. examined Managementwitnesses in the absence of worker, because heboycotted the proceedings, and turned down therequest of re-calling the management witnesses forexamination. High Court held the enquiry fair anddenounced the worker behavior during enquiry.

Q, I am a Trade Union Leader. We have about 15unions affiliated to our union. GenerallyManagement keep labour either on casual ortemporary basis for months together and then givethem artificial breaks, to deprive them ofpermanent status. Such workers complain us forredresal and to take up their cause. Is it not aunfair labour practice? Can we complain againstsuch employers in court or Labour Deptt? Whatshould be the proper course of action?

Ans. The problem, which you have raised is verycommon. In my view, every employment need notnecessarily be of permanent nature and it can be

casual, badly or temporary. None of such employmentby itself is an unfair labour practice, provided suchemployment does not continue for years together withthe object of depriving them of privileges ofpermanent employees. The work being of perennialnature requiring a permanent employment ofworkmen where temporaray persons are employedfor years would certainly be a situation of unfairlabour practice. Mere temporary employment forsome part of every year without sinister object theemployer will not fall within this mischief. First, youshould see and examine as trade union leaderwhether the so employed workers are getting lesswages than minimum wages. Whether the work,which the temporary workmen do is of perennialnature? If the answer is positive, then you may firstdiscuss with the employer to assess his intention andobjectives and then may proceed for legal action. Ifthe intention and object of the employer is not unfair,then you should not unnecessarily indulge in legalbattle, which may in due course result in tounemployment of such workmen. Now a days, gettingemployment is very difficult. Being a trade unionleader you should not only see better wages and statusfor worker but also security of Job and employmentfor workers.

However, before entering into legal battle on thisissue, you are advised to go through the judgment ofBombay High Court (Bajaj Auto Ltd., Akurdi, Pune vs.R.P. Sawant 2000 1 LLR 7), in which it was held thatsuch practice of employer was not unfair labourpractice.

Q. One of our employees has been arrested andcharge-sheeted on the ground of serious offencesunder I.P.C. In our standing order, there is aprovision to terminate such employee who has beenarrested. Are we under obligation to followprinciples of Naturals justice?

Ans. It all depends on the situation and facts andcircumstances of each case. When the Authorityconcerned is of the opinion that it would be againstthe interest of security of the organization tocontinue the employment of the concerned employee,when serious acts are likely to affect the foundation ofthe institution, Doctrine of Principles of naturaljustice has no application.

Kerala High Court in the case of Usha vs. KeralaState Handloom Development Corporation Ltd., 2000 ICLR 610 has held that when employee was arrestedand convicted by the Court on the ground of certainserious offences, management as per corporation’srules dismissed the employee after arrest. Employeechallenged the Court’s conviction and Higher Court

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

Labour Problems & Solutions Anil Kaushik, Management Expert -HR & IR

40 Business Manager April 2012

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stayed the execution of conviction. Employeechallenged the dismissal order on the ground thatsince Court stayed the conviction and principles ofnatural justice were not followed, her dismissal ordershould be quashed.

Kerala High Court rejected the contention of theemployee and held that order of dismissal does notlose its sting merely because execution of sentence issuspended. Also Doctrine of Principles of naturaljustice has no application in such a case. SupremeCourt in the case of Hari Pada Khan vs. Union ofIndia 1996 SC 1065 has also held in the same direction.

Q. We have a recognized Union in our company.We want to shift our activities to other unit &entered in to a bipartite settlement with union ofthe company regarding full & final settelment ofworkers in order to carry out the execution ofoperations peacefully and effectively. Is thissettlement binding on all workmen?

Ans. No. This bipartite settlement regarding fulland final settlement of all workers throughrecognized union is not at all binding on affectedworkmen, since it is in contravention of provision ofSec.18 (1) of I.D. Act. 1947. You should not take risk insuch a way. Such agreement should be with theindividual workman regarding his full and finalsettlement.

Bombay High Court in the case of Yashwant Jagannath Ingwale vs. Snowcem India Ltd. [2000(84) FLR467] has held that where recognized Union entered into bipartite settlement with the Managementregarding full and final settlement of past, presentand future of workman in view of closure of thefactory, was held to be invalid and not binding onworkmen, In this case Court held that employment ofsuch workmen will continue and operative.

Q. We have suspended workers who were foundguilty of misconduct by absenteeism upon annualassessment of attendance. They are facing enquiry.Our advisor has suggested that we should notmake contribution of ESI on their subsistenceallowance which we find not convincing. What isyour expert opinion ?

Ans. You have not received the best advice. Wagesfor the purpose of ESI Contributions u/s 2(22) of ESIAct do engulf “Subsistence Allowance”. It cannot besaid that subsistence allowance paid is an amountpaid for services rendered and so it is notremuneration.

Subsistence allowance paid was included in wagesby some High Courts (1985 LLJ 173 Kant), 1993 (1) LLJ870 (Ker), 1994 LLJ 640 (Ker). But Supreme Courtsettled controversy in popular Automobiles case 1998(1) LLJ621 (SC) holding that all employees are entitledto get the statutory coverage of the benefits. Anemployee will not cease to be an employee covered byAct if he is placed under interim suspension pendingenquiry.

It is axiomatic that during suspension period theemployer-employee relation does not come to an end.Consequently on the subsistence allowance employeeand employer both would be liable u/s 39 of the ESIAct to contribute their part.

Q. I have received an application by our senioremployee working with us over 20 years who islikely to be superannuated in July 2012 unlessgiven extension. This employee wants a correctionin his recorded date of Birth. What should we do?Pl. provide some guidelines for future also.

Ans. In this instant case the employee’s applicationappears to be devoid of any merit. After remaining inservice for 20 years if an employee seeks change indate of birth on the eve of superannuation, primefacie it appears malafide. However, if evidence ofunimpeachable character is produced to substantiatethe claim then only the application should beconsidered.

Unless the service conditions or contract ofemployment specifically permit the employee to claimcorrection of date of Birth, the employee cannotclaim correction of date of birth as of right and thereis no obligation on the part of the employer to acceptor act upon such altered date of birth.

However this portion of law is subject to qualityexceptions like, where a competent court givesdeclaration and direction to which the employer is aparty or where rules and regulations or conditions ofservice or process for alteration and employee hascomplied with the procedure or where employeraccept the request for change.

Q. We have drafted some circulars andguidelines to be followed in case of transfer ofemployees. These guidelines were not comunicatedto employees but were made to keep integrity andconsistency in transfer orders. Can we overridethese guidelines?

Ans. Guidelines/Instructions which haveadmittedly no statutory force do not confer any righton the employee to challenge the transfer order on theground of violation of such guidelines that by itselfwill not be sufficient to quash the transfer order asbeing malafide. Administrative exigencies have togive way to the guidelines. As your guidelines werenot comunicated to employees but were meant toassist present and future managers to keepconsistency so they act in uniformity in nature, can bealtered and amended at your desire. Had theseguidelines been made under an agreement withemployees or under any statute then they would havegot statutory force and they can not be amendedunilaterally.

Q. Will the clerical staff working in the factorybe treated as workers under the Factories Act?

Ans. Yes. Since such employees will be doing thework incidental or connected with the manufacturingprocess, they will be treated as workers within themeaning of section 2(1) of the Factories Act. TheMadras High Court in a case while relying upon thejudgment, has held that the Supreme Court in itsjudgment has dispelled any doubts as to whether thestaff engaged in the factory premises beingindispensable for actual manufacturing process andbeing connected with the manufacturing process, willcome within the ambit of workers, as defined bysection 2(1) of the Factories Act.

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

Labour Problems & Solutions Anil Kaushik, Management Expert -HR & IR

BM

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Back WagesWhen workman denies the gainful

employment, it is for the employer to proveotherwise.

Once the employee pleads that he was notgainfully employed during the period oftermination, the burden lies upon theemployer to prove when, how and where theemployee was gainfully employed during theperiod he stood terminated. The negatives arenot proved because it is almost impossible toprove a negative fact as such it is only thepositive assertions which can be proved.

Chief Engineer vs. M.P. Dwivedi. 2012 LLR 250(M.P. H.C.)

In the circumstances when employercould not prove gainful employment andemployee did not establish the effortsmade by her to get the job but wasunsuccessful, 20% Back Wages was held tobe proper, because the educated employeewill not remain totally unemployed duringthe period.

Principles for grating back wages are wellsettled that the workman must state about hisunemployment whereas in the present case,there is only a bald statement of the workmanthat she tried to get the job but failed whereasshe should have established before the LabourCourt the details of such attempts which shehas failed to give hence the Labour Court hasrightly awarded 20% instead of full back-wages.

W.H. Brady and company Ltd. vs. A.R.Sulochana. 2012 LLR 297 (Guj. H.C.)

BOCW ActSubstantive terms of the agreement

between the company and the contractorregarding 1% labour cess will prevail overthe additional provisions of theagreement. Company not entitled todeduct 1% cess from contractor billwithout adding the same in the bills soraised by contractor.

The averments that the additionalprovisions under Part-II of the agreement does

not provide for payment of 1% labour cess tothe contractor is not justified as the Clause (G)of Schedule C of the agreement beingsubstantive term of the contract has suchprovision which would prevail over the Part-II.

PMR Infrastructures Pvt. Ltd., Badwel,Kadapa District vs. Government of A.P., reptd.

By its principal Secretary, irrigation andCommand area Development, Hyderabad and

three Others. 2012 LLR 273 (A.P. H.C.)

Non-compliance of the directions of theCourts about the provisions of Buildingand construction workers (Regulation ofConditions of Service) Act and the BOCWCess Act would amount to Contempt ofCourts Act which provides imposition offine and sentence upon the defaulter.

National Campaign Committee for CentralLegislation on Construction Labour vs. Union

Of India & Ors. 2012 LLR 336 (S.C.)

BonusIn the absence of allocable surplus,

maximum bonus can not be directed to bepaid.

Tribunal while granting bonus for the years1996-1997 and 1997-1998, failed to note that therewas no allocable surplus. Workers are notentitled to maximum bonus for those years. Itis an erroneous award. Impugned Award doesnot show that Tribunal kept in mind theparameters under which bonus calculation hasto be made. Procedure to calculate bonus asdirected in S.11 r/w S.15 of the Bonus Act. Inthe matters, Tribunal erred in denying reliefto workers, without going into the calculationin terms of schedule II to the Payments ofBonus Act. Calculation of bonus requirescertain amount of technical skill and onemust know the auditing procedure. ImpugnedAward dt. 17.03.2006 stands set aside.All the three disputes are remitted back toIndustrial Tribunal for fresh disposalaccording to law.

Managing Director, Tamil Nadu KudineerVadigal Variyam Chennai & Anr. vs. TamilNadu Kudineer Vadigal variyam Oozhiyar

Central organisation rep. by its GeneralSecretary & Ors. 2012 I CLR 782 (Mad. H.C.)

From The Court Room Latest Judgments

Recent Important

Judgments

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Contract Labour Reinstatement justified when direct

relationship between employer & theterminated workman established.

Reinstatement to a workman has beenrightly awarded by the Labour Court sincethere has been direct relationship of employerand the terminated workman. Hence nointerference by the High Court is called for.

When the workman has frankly admitted forpart of the period of his employment, the back-wages will be granted subsequent to thatperiod.

Contract Labour (Regulation & Abolition)Act is a social welfare legislation to furtherinterest of community of the workman, asapposed to particular interest of an individualentrepreneur since it seeks to achieve publicpurpose i.e. regular conditions of contractlabour and to abolish, it is found to be of aperennial nature.

Usha Martin Industries Ltd., (Usha IshmalDivision), Ranchi vs. Presiding Officer, LabourCourt, Ranchi and Another. 2012 LLR 248 (Jhar.

H.C.)

Regularisation of the contract workerhas been rightly awarded by the IndustrialTribunal when the Samiti, claiming tohave engaged the workers, has failed tosubmit any material despite opportunities.

Employers in Relation to the Management ofBalihari Colliery Under Putkee Balihari Areaof M/S. B.C.C.L., Dhanbad vs. Their Workmen

Being Represented By the Branch Secretary,Rashtriya Colliery Mazdoor Sangh, Dhanbad.

2012 (132) FLR 57 (Jhar. H.C.)

If the contract is found to be non genuinebut a mere camoulflage, the so calledcontract labour will have to be treated asemployees of the principal employer, whoshall be directed to regularise the servicesof the Contractor Labour.

Oil and Natural Gas Corporation Ltd. vs.Petroleum Employees Union and others. 2012

(132) FLR 746 (Bom. H.C.)

ConciliationProceedings

A conciliation officer under theIndustrial Disputes Act is under anobligation to conciliate the industrialdispute when raised by the Union forregularisation of contract labour.

H.N.L. Casual & Contract Workers' Centre vs.Union of India.

2012 (132) FLR 163 (Ker. H.C.)

Court PowersWhen an ex-parte Award has been

published, the Labour Court becomesfunctuous officio and cannot entertain anapplication for staying of the Award.

Ravinder Kumar vs. Timken Services Pvt. Ltd.and another. 2012 LLR 252 (P&H H.C.)

Jurisdiction of the industrial tribunalunder section 33(2) (b) of the ID Act islimited and not equated to one undersection 10. For granting approval fordismissal Court cannot go in to rationalebehind the quantum of punishment.Cannot substitute its own judgment forthat of enquiry officer.

Declining to grant approval for dismissal ofa workman, despite upholding the enquiry willnot be proper on the part of IndustrialTribunal holding that the dismissal wasdisproportionate to the gravity of misconduct,will be quashed since the Tribunal cannotsubstitute its judgment for that of an enquiryofficer.

Elastrex Polymers Pvt. Ltd., NelamengalaBangalore vs. Janardhana. 2012 LLR 261

(Kar. H.C.)

Issue of validity of the enquiry has to bedecided first as preliminary issue.

An enquiry is to be decided as a preliminaryissue during adjudication proceedings, hence,Labour Court was not justified in declining toframe preliminary issue about the validity ofenquiry.

Bharat Hotels Limited vs. GNCT of Delhi abndAnr. 2012 LLR 268 (Del. H.C.)

Interim relief of 50% not 75% of lastdrawn wages appropriate by Labour Courtduring pendency of adjudicationproceedings when prima facie there wasplea of the management that enquiry hasto be held by Labour Court.

Labour Court has rightly granted interimrelief to the workman during pendency of theadjudication proceedings since there has beena prima facie case and the plea of theManagement that enquiry has to be held by theLabour Court would not be tenable since it isnot pleaded by the Management but in a writpetition, the High Court reduced the interimrelief to 50% from as granted by the LabourCourt. When the Labour Court has grantedinterim relief assuming that the respondent,though designated as executive butdischarging the duties of clerical nature,hence the challenge of the Managementcannot be gone into the factual aspects by theHigh Court under the writ jurisdiction.

Batra Hospital & Medical Research Centre ofCh. Ashi Ram Batra Public Charitable Trust

vs. Biswambar Nayak. 2012 LLR 269(Del. H.C.)

Setting aside of ex-parte order shouldnot have been declined by the LabourCourt without ensuring that the summons,as sent, have not been served upon thepetitioner.

Indcoat Shoe Components Ltd. vs. JaganKashyap and Another. 2012 LLR 311 (All. H.C.)

Court should not interfere with thedismissal order of employee whoobatained appointment by producingforged documents.

Although under section 11A of theIndustrial Disputes Act the Labour Court has

From The Court Room Latest Judgments

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got vast powers to modify the punishment ofdismissal and discharge of the workman, butsuch powers have to be exercised judiciouslyand only when it shocks to the conscious of thecourt hence modifying the dismissal of theworkman for fraudulently obtaining job ingranting reinstatement with stoppage of fourincrements is liable to be set aside.

Prabhulingappa H.M. Munichendragowda vs.Divisional Controller, K.S.R.T.C., Kolar. 2012

LLR 278 (Kar. H.C.)

DisciplinaryProceedings

Findings of domestic enquiry cannot beset aside on the plea of acquittal incriminal case. Court cannot interfere inthe decision of domestic tribunal unlessshown to be based on no evidence.

Disciplinary proceedings cannot be stayedmerely on the ground that criminal case ispending. The degree of proof required in adepartmental proceedings is based onpreponderance of probability and not strictproof of evidence.

Court cannot interfere in the decision of thedomestic tribunal unless the same is shown tobe based on no evidence. Findings of domesticenquiry cannot be set aside on the plea ofacquittal criminal trial. When the statute doesnot provide for period of limitation, the courtmust exercise its powers reasonably withinreasonable period being a facet ofreasonableness.

Jyothi Kondaraju vs. Additional GeneralManager (CS & HRD) Disciplinary Authority,

ITI Ltd., Bangalore. 2012 LLR 236 (Kar. H.C.)

“Natural justice” cannot be imprisonedin a straight jacket formula. None of thefacets of natural justice require that thereshould be right of appeal from anydecision as the right of appeal is not aninherent right.

The term 'natural justice' cannot beimprisoned in a straight-jacket of a rigidformula as its scope depends upon thecircumstances of the case, nature of enquiry,rules, scheme, character of rights of personsaffected and policy of the statutes under whichthe Tribunal has to deal with the matter etc.Even none of the facets of natural justicerequires that there should be right of appealfrom any decision as the right to appeal is notan inherent right. An order cannot be labelledas a non-speaking order when it does not sufferfrom the vice of non-application of mind. TheAppellate Authority must record reasons insupport of its order to indicate that it hasapplied its mind but it is not the requirement oflaw that such an order must be elaborate andextensive as the brief reasons indicatingapplication of mind would suffice. Right ofappeal is not defeated in absence of personalhearing when relevant regulation does notexpressly provide for personal hearing.

Oriental Bank of Commerce & Anr. vs. R.K.Uppal. 2011-II LLN 493 (SC) : 2012 LLR 324

Enquiry vitiated when employee was notallowed to cross examine the witnesses, toproduce defense and evidence recorded onthe back of employee.

An enquity, as held, will be vitiated when (a)the Enquiry Officer only recorded theexamination-in-chief without allowing cross-examination; (b) defence representation wasdenied to the delinquent; (c) statement of thewitness was recorded on the back of employee;and (d) enquiry was abruptly closed by theEnquiry Officer. It is settled law that where thequestions of facts are involved, writ petition inthe High Court would be an appropriateremedy. Criminal trial and departmentalproceedings can proceed simultaneously sincethere is no bar in proceeding with the enquiryduring pendency of the criminal trial.

Vikram Sharma vs. State Bank of Indore andothers. 2012 (132) FLR 618: 2011-III CLR 943 :

2012 LLR 214 (M.P. H.C.)

Non supply of inquiry report will notvitiate the disciplinary proceedings.Dismissal justified for committingfinancial irregularities.

Burdwan Central Co-operative Bank Ltd. andanother vs. Asim Chatterjee and others. 2012

(132) FLR 713 (S.C.)

Non supply of inquiry report copybefore passing punishment order will notvitiate the inquiry.

Non-Supply of copy of inquiry report to thedelinquent, before passing impugned order,would not be fatal vitiating the impugnedorder. Court finds no merit in this petition. Inthe excersise of discretionary and equitablejurisdiction the Court would be justified inrefusing to invoke its writ jurisdiction to grantthe relief to the workman.

Jai Krishna Prasad, s/o Late Sheo Dayal Sah,Muzaffarpur vs. Bihar State Road Transport

Corporation, Patna and Ors.2012 I CLR 340 (Pat. H.C.)

Dismissal merely on the basis ofchargesheet without evidence, will beillegal. Enquiry vitiated.

Dismissal of petitioner from service-Oncharge of corruption-Though bothdisciplinary and criminal proceedingsinitiated on charge of corruption, charges inboth proceedings were practically same and hewas acquitted in criminal case. No evidencerecorded in disciplinary proceedings and orderof dismissal passed merely on charge sheet.Even Regulations prescribe the decision to betaken on evidence available. It consists of proofby testimony of witness. Hence order ofdismissal is vitiated and set aside.

Ramesh vs. Maharashtra State ElectricityDistribution Co. Ltd. and others. 2012(132) FLR

869 (Bom. H.C.)

In the absence of procedural lapse inE.O. findings, No interference of courtrequired.

In the absence of any procedural lapse in thefindings of Enquiry Officer, which are basedon evidence and the charges have beenestablished, there is no room for this Court tointerfere with the impugned order ofdismissal. This is not the Court of Appeal over

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and above the Enquiry officer, DisciplinaryAuthority and the Appellate/RevisionalAuthority. This court cannot reappreciate theevidence to reach a conclusion different thanthe one recorded by the Enquiry Officer,merely because another view is possible. Thereis no violation of principles of natural justiceor of any statutory rules, warranting aconclusion that appellant has not been treatedfairly

Baljit Singh vs. state of Haryana and others.2012 I CLR 569 (P&H H.C.)

When workman remained absent fromenquiry, he can not challenge the findings.

It is not open for the workman to remainabsent from enquiry, once his request to stay thesame in view of pending criminal proceedingcase was declined. Acquittal in the criminalcase is no ground to challenge impugned orderof his removal from service. Workman wasnegligent at the time of the theft in question, itwas a grave misconduct on his part. Having notparticipated in the domestic inquiry, nogrievance can be made now that there is nodirect evidence against him for the saidmisconduct. Impugned inquiry and order ofremoval call for no interference by this Court.

Dhanjibhai Premabhai Rathva vs. ChiefSecurity Commissioner, Western Rly., Mumbai

and Ors. 2012 I CLR 614 (Guj. H.C.)

When the deliquent officer is pittedagainst legally trained person, he shouldbe allowed to defend himself through alegal practitioner. Denial of such a requestwould amount to denial of a reasonableopportunity to the employee to defendhimself, which is an essence of theprinciples of natural justice.

Inquiry authority was a legal practitionerin the High Court. Management did notappoint presenting officer for this inquiry.question were put to the delinquent by inquiryauthority himself. The inquiry was conductedwithout permitting the petitioner to haveassistance of legal practitioner and noopportunity was given to petitioner to defendhimself properly. A total violation ofprinciples of natural justice. The disciplinaryauthority proceeded mechanically in passingorder of punishment, ignoring alldocumentary evidence presented before himby the employee in reply to show cause notice.Imputations in the form of suggestion and / orfinding regarding quantum of punishment bythe inquiry officer is contrary to statutoryrule and hence liable to be quashed and setaside.

Arun Kumar Hazra vs. State of West Bengal &Ors. 2012 I CLR 691 (Cal. H.C.)

Employees’Compensation ActPrincipal employer and contractor will

be jointly and severally liable to paycompensation to contract labour in case ofaccident.

When an employee is engaged through acontractor and meets with an accident, boththe contractor and the principal employer-willbe jointly' and severally liable for payment ofcompensation under the Workmen's/Employees' Compensation Act

Parveen Kumar vs. Uttar Haryana Bijli VitranNigam Ltd. and Other. 2012 LLR 259 (P&H

H.C.)

In the absence of any pleadings andsubstantial evidence that employee wasacting negligently with willfulldisobedience of the express instructionsgiven by employer or rules framed, claimpetition cannot be dismissed. Onlynegligent driving is not enough.

The claim under the provisions of theEmployees' Compensation Act cannot berejected unless it is the written statement andproved through substantial evidence thatclaimant himself was negligent by willfuldisobedience of the express instructions givenby the employer or had violated the rulesframed for the purposes of securing his safety.

Kirpal Singh vs. Rajendra Singh. 2012 LLR 276(M.P. H.C.)

Settlement of less amount than awardedby the commissioner would be illegal andwill not fall within the scope of Section 28the EC Act.

Settling amount of compensation for Rupeesone lakh by the legal heirs of the deceased notproper when the Accident CompensationCommissioner has awarded Rs. 2,02,600 sincesuch settlements are not permissible under thelaw.

Jamat Singh vs. Commissioner, Workmen'sCompensation and Others. 2012 LLR 309 (Raj.

H.C.) : 2012 (132) FLR 568

Workman meeting with road accidentdue to dash giving by unknown vehiclewhile on the way to factory for duty, suchaccident cannot be said to have its origin ornexus in his employment in the factory.Employer not liable to pay compensation.

Oriental Insurance co. Ltd., Solapur vs.Daivshala Shahu Jadhavar & Ors. 2012 Lab IC

387 (Bom. H.C.)

Sudden death of a Bus Driverunexpectedly during the course ofemployment without any disease is an“accident”.

The deceased was admittedly an employeeand he was employed as a driver of a stagecarriage. He was 39 years old and he diedsuddenly during the course of employment.There was absolutely no evidence on record toshow that the deceased had a history of heartdisease. The high court emphasized on thesuddenness of the death and pointed out thatit was unexpected from the point of view of thedeceased and therefore it can be characterizedas an accident. It was further held that only acasual connection or nexus between theemployment and death is required. It would beunrealistic to think that the job a driver of astage carriage does not involve stress andstrain.

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National Insurance Co. Ltd vs. P.V. Sheeja &Ors. 2012 CLR (I) 142 (Ker. H.C.)

Casual worker even employed for asingle day would be “workman” under ECAct.

In view of the admission of employer BaldeoSingh, deceased Ashok Shah was employedthough as a casual worker, for purpose ofemployer's trade or business namelyagriculture and even if employed a single day,the worker would fall within the definitionof'workman' u/s.2(1)(n) of the Act, and hence isentitled to maintain claim for seekingcompensation. Matter remanded to EmployeesCompensation Commissioner to be decided inaccordance with law.

Mahendra Shah vs. Baldev Singh 2012 I CLR402 (Raj. H.C.)

It is well-settled that the rights of theparties are governed by the law as itexisted on the date of the accident.

Compensation has to be calculated as per theprovision of law as it exists on the date ofaccident-cause of action arises on the datewhen the accident takes place. Compensationwas payable to claimant as per the provisionsof the Act, as it existed on 1.06.1999-the date ofaccident and not at the rate of Rs. 4,000/- as perthe amendment of the Act, which came intoforce on 08.12.2000

Executive Engineer, H.P. P.W.D., B & R Division,Nalagarh, H.P. and Anr. vs. Premu, S/o. shri

Budh Ram, H.P. 2012 I CLR 636 (H.P. H.C.)

EnquiryContinuation of enquiry should not have

been stayed by the learned Single Judge ininterim order, when the courts below havedeclined to grant stay.

Kunbi Sahakari Bank Ltd. and Others vs.Sanjiv Shriram Barbade and Others. 2012 LLR

283 (Bom. H.C.)

E.S.I.Three month's reimbursement with

fine, being minimum punishment asawarded by the Magistrate to the principalemployer for non-payment of ESIcontributions, would not be interfered bythe High Court.

Sharp Eye Detective Services and Another vs.Employee's state Insurance Corporation,

Margao, Goa and Another. 2012 LLR 284 (Bom.H.C.)

ESI is liable to pay medical treatmentexpenditure to the deceased legal heirwhere such facility was not available inESI Hospital.

Reimbursement of Rupees seventy-fivethousand, incurred towards expenditure formedical treatment of the member of ESI, hasbeen rightly allowed by the Employees'Insurance Court when the ESI has invoked

section 58 of the ESI act inter alia providingthat the State government is duty-bound toreimburse the expenditure incurred by theemployees working in establishments coveredunder the ESI Act when ever they spend moneyfor the services which are not available in ESIHospital and which are deemed to be specialservices for which the member has incurredthe expenditure from his own pocket.

Regional Director, ESI corporation, Bangalorevs. Lakshmi biradar (smt. ) and Ors. 2012 LLR

235 (Kar. H.C.)

E.S.I. not payable on conveyanceAllowance.

The conveyance allowance shall not formpart of wages for purpose of ESI Act - No meritfound in appeal and it is dismissed.

Dy. Director (INSPN), Regional Office (TamilNadu), Employees' State Insurance

Corporation and Another vs. CosmopolitanClub, Chennai. 2012 (132) FLR 911 (Mad. H.C.)

GratuityNo amount can be recovered from

gratuity paid to legal heirs and also cannotbe attached in execution of a Court decree.

Gratuity of an employee can not berecovered from the legal heirs and also itcannot be attached in execution of a decree bythe civil court hence deduction, as made, isliable to be set aside by an order for refund ofgratuity.

Mst. Prabha Shukla vs. State of Bihar andOther. 2012 LLR 251 (Pat. H.C.)

Unless break in service is notified by anorder of employer against the employee, itwill be deemed as continuous service forpayment of gratuity.

Nature of payment of gratuity act is a socialwelfare measure rendering socio-economicjustice by providing economic security in thefall of life Unless a break is notified by anorder passed by the employer, it will be deemedas continuous service for payment of gratuity.

Karnataka State Road Transport Corporation,Bangalore, Rural Division, Bangalore vs.

Deputy Labour Commissioner and TheAppelate Authority, Bangalore and Others 2012

LLR 263 (Kar. H.C.)

Legislature can enact laws bothprospectively and retrospectively. Section2(e) and Section 13(a) making effectiveretrospectively are not violative ofconstitution.

The legislative power conferred on theLegislature includes the subsidiary orancillary power to validate laws which havebeen struck down by the court being invalid forone infirmity or another, thereby to cure theinfirmity and pass the provision of the earlierlaw effective from the date when it was passed.

Substituted in section 2(e) and newlyinserted section 13-A of the Payment ofGratuity Act, 1972 by amendment Act 2009 areneither violative of Art. 19(1) (g) of the

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constitution of India as no substantive rightwas earlier created in favour of school no anysuch substantive right has been taken away.

Jain Citizens Education Society,Surendranager and Another vs. Union of India

and Others. 2012 LLR 292 (Guj. H.C.)

Gratuity of an employee, on hisretirement cannot be denied by holding ofan enquiry that too after retirement whichis not permissible. Hence it will beimmaterial if an employee hasparticipated in the enquiry without anyprotest.

Subodh Nath Gupta vs. Chairman,Administrative Committee, U.P. Cooperative

Dairy Federation and Milk Union Centralisedservices, Lucknow and Another. 2012 (132) FLR

204 (All. H.C.)

Payment of gratuity Act do not makeany distinction between the casual,temporary or NMR workers.

Appellate Authority has the power to correcterror committed by Controlling Authority, inconsidering lenght of service put up by theworkman. No error committed by AppellateAuthority by passing impugned order.

Madurantakkam Co-op. Sugar Mills Ltd., rep.by its Special Officer, Padalam vs. Joint

Commissioner of Labour (Appellate Authorityunder the Payment of Gratuity Act, 1972 & Ors.

2012 I CLR 779 (Mad. H.C.)

IndustrialDisputes Act

In case of banking companies forresolution of industrial diputes, CentralGovt. and not the State Govt. would beappropriate Govt. Labour Court shoulddecide this issue as preliminary issue.

The appropriate Government for decidingthe industrial disputes, is the CentralGovernment and not the State Government asprovided under section 4 of the IndustrialDisputes (Banking and Insurance Companies)Act, 1949

A few preliminary issues, framed by theCourts below, about maintainability of theclaim/complaint, should be decided firstinstead of wasting valuable time.

ICICI Bank Ltd. and Another vs. SurendraChelawat and Others. 2012 LLR 290 (Bom.

H.C.)

Application for computation of wages onthe principle of 'equal pay for equal work'filed under section 33C(2) of the IndustrialDisputes Act before the Labour Court ismaintainable.

When a benefit has been allowed by theManagement for the previous period, asclaimed, it cannot deny the same benefit for thesubsequent period of services of the workman.

State of Haryana Through G.M. HaryanaRoadways, Rohtak vs. Om Prakash, Safai

karamchari & Anr. 2012-I CLR 118 (P&H H.C.)

Industry Water Technology Centre for eastern

Region Bhubaneswar is "Industry" underID Act.

Whether Water Technology Centre foreastern Region, Bhubaneswar (WTCER inshort), an Unit under the petitioner, is an"industry"? The Court answered this querry inthe affirmative, in view of total activities ofthe petitioner and of said unit.

Indian Council of Agriculture and Research vs.P.O., CGIT-cum-Labour Court, BBSR & Ors.

2012 I CLR 660 (Orrisa H.C.)

Minimum Wages ActProsecution liable to be quashed against

MD and other officers of the companywhen it was not described as to under whatcapacity they were made accused.

Prosecution of the company and itsManaging Director besides other officersunder the Minimum Wages Act is liable to bequashed since the complaint has not describedas to under what capacity they are being madeaccused under the Act and also whether thepetitioners/accused are engaged in anyscheduled employment.

M/s Metrograph Company Private Limitedand other vs. State of Jharkhand and Another.2012 LLR 255 :2012 (132) FLR 722 (Jhar. H.C.)

Even when the appropriate governmentfor a private bank is Central Government,for minimum wages, it will be stateGovernment.

Tops Security Ltd., Mumbai vs. A.K. Agarwal,Authority under Minimum Wages Act, 1948 and

Others. 2012 LLR 265 (Bom. H.C.)

Misconduct Mistake committed wthout any wrongful

gain towards discharge of duty cannot betermed as misconduct.

A mistake, committed in the discharge ofofficial duty, cannot be construed asmisconduct for imposing punishment whenthe concerned employee has not made anywrongful gain. Findings of the criminal courtwould prevail upon those of the disciplinaryauthority hence the acquittal of delinquent bythe criminal court cannot be ignored

Gopi Ballav Sarkar vs. Food Corporation ofIndia and Other. 2012 (132) FLR 210 (Cal. H.C.)

OvertimeFor the purpose of calculating O.T.,

wages include all allowances such as HRA,CCA, Travelling allowances etc. exceptbonus and O.T. Wages.

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Heavy Vehicles Factory Employees' Union Rep.by its General Secretary & Anr. vs. Union ofIndia rep. by its Secretary to Government,Ministry of Defence & ors. 2012 I CLR 292

(Mad. H.C.)

Provident Fund Sleeping partner can also be clubbed in a

criminal proceeding alongwith active partner.

There is no legal binding under theEmployees' Provident Funds & Miscellaneousprovisions Act and criminal laws that sleepingpartner cannot be clubbed and prosecuted in acriminal proceeding alongwith the activepartner. Creation of a document i.e. aresignation of a partner, one month before thedate of complaint is surrounded by suspiciouscircumstances and cannot have legal force.

Usha Rani Rajharhia w/o Late BabulalRajgarhia vs. Union of India, through the

Secy., Ministry of Labour & Rehabilitation,New Delhi & Ors. 2012 LLR 232 (Pat. H.C.)

Appeal before tribunal and not the writpetition is maintainable against the orderof PF authority under Section 7-A of theEPF Act.

Appeal before the EPF Appellate Tribunaland not the writ petition will be theappropriate remedy by an aggrieved employerof an order under section 7A of EPF & MP Acthence the writ petition, as filed, is liable to bedismissed but the stay will continue tillhearing of the appeal by the AppellateTribunal.

Uranium Corporation of India Ltd. vs.Regional Provident Fund Commissioner,Jamshedpur. 2012 LLR 254 (Jhar. H.C.)

When earlier demand was quashed byHigh Court, further fresh demand cannotbe raised on the same earlier inspectionreport and material.

When the earlier demand by EPF Authorityhas already been quashed by the High Court,fresh demand without any further material isliable to be quashed above the petitioner-employer employed only 13 employees andcould not be covered under the Act.

M/s Gulati Auto Engineers vs. Union of Indiaand Others. 2012 LLR 258 (Pat. H.C.)

Primary requirement which theappropriate Govt. has to consider forgranting exemption is as to whether thecondition specified in Section 17 of the EPFAct has been fulfilled. Conditions specifiedin Appendix A to the scheme have to befulfilled once an exemption is granted.

Paragraph 27AA of the Employees'Provident Fund Scheme provides thatexemption sought under section 17 of the Actread with paragraph 27A of the scheme issubject to terms and conditions given inAppendix A to the Scheme which are requiredto be fulfilled by the applicant.

Birla Sun Life Insurance Co. Ltd. & Anr. vs.Shri Subhash Kumar, Under Secretary to Govt.

of India & Ors. 2012 LLR 266 (Bom. H.C.)

The EPF Act will not be aplicable to theestablishments under the control ofCentral Govt. or State Govt. whoseemployees are entitled to contributoryprovident fund benefits of the Govt.

The Employees' Provident Funds andmiscellaneous Provident Act, 1952 shall not beapplicable to the establishments which areunder the control of the Central Government ora State Government, whose employees areentitled to the benefit of contributory providentfund or old age pension in accordance with anyscheme or rules framed by the CentralGovernment or the State Government as perprovisions of amended Section 16 (1) (b) of theAct since 1st of August, 1988.

V.T.P. Higher Secondary School, Shivpuri vs. Stateof M.P. and Others. 2012 LLR 306 (M.P. H.C.)

EPF Act will be applicable to PunjabUrban planning and developmentauthority being not an establishmentunder the control of the Central or StateGovt.

Applicability of the Employees' ProvidentFunds and Miscellaneous Provisions Act, 1952is exempted only to the establishments whichbelong to or are under the control of theCentral or State Government.

Exemption from the applicability of theemployees' Provident Funds andMiscellaneous Provisions Act, 1952 may begranted by the Authority under the Act undersection 16(2) of the Act which provides benefitsmore favorable to the employees than that ofthe Scheme under the Central Act.

Establishments like Punjab Urban Planning& Development Authority are not the oneswhich belong to or are under the control of theCentral or State Government.

Punjab Urban planning & DevelopmentAuthority Through its Chief Administrator vs.Union of India through Secretary, Ministry of

Labour, Government of India, New Delhi &Anr. 2012 LLR 313 (P&H H.C.)

In the absence of any reply by theemployer to the PF authorities show causenotice for levy of damages for delayedpayment,order of damages cannot beinterfered with

High Court will not interfere with the orderof the EPF Appellate Tribunal rejecting theappeal filed by the petitioner, alleging levy ofdamages for delayed payment of contributionsince the petitioner has failed to file any replyto the show cause notice issued by therespondents.

Steel Tubes of India Ltd., Dewas vs. Asstt.Provident Fund Commissioner (c), Indore. 2012

LLR 319 (M. P. H.C.)

In case an order is passed by the EPFAuthority in the absence of reasons inconformity with the provisions containedin section 7C of the Act, that order is notmaintainable and liable to be quashed.

Choithram Hospital & Research Centre, Indorevs. Assistnat Provident Fund Commissioner,

Employees Provident Fund Organization,Indore & Anr. 2012 LLR 320 (M.P. H.C.)

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Recovery of employees provident funddues is to be made from the defaultingcompany and also arresting the chiefmanaging director who cannot absolvehim from the liability by making acontract with another companytransferring assets and liabilities.

Harish F. Shah vs. Employees' Provident FundOrganisation. 2012 Lab IC 146 (Guj. H.C.)

For the purpose of applicability of theEPF Act, an “apprentice” underApprentice Act, 1961 will be excluded.However, as the commissioner has notexamined as to whether apprenticesengaged by the petitioner are apprenticeswithin meaning of Apprentice Act, hence,the impugned order is set aside. Matterremanded back to decide afresh.

Sevayan Medical & Research Centre vs.Assistant Provident Fund Commissioner andanother. 2012(132) FLR 663 (Del. H.C.) : 2012-I

CLR 55

ProtectedWorkman

Non-acknowledging or non-replying theletter received from the Union regardingprotected workman by the managementwould waive the right of the managementto raise objection thereto, if any, at a laterstage.

The Statesman Limited vs. FIRST IndustrialTribunal, West Bengal and Other. 2012 - I LLN

156 (Cal. H.C.)

Punishment Punishment of dismissal to Bus driver

justified for not allowing old lady to boardbus and abusing the ATI. Civilized societycannot tolerate riotous, inhuman &atrocious conduct of people.

Court can interfere with the quantum ofpunishment in exercise of its jurisdictionunder Article 226 of the Constitution of Indiaonly where the punishment inflicted against adelinquent employee is grossly unjust andshocks the conscious of the Court and nototherwise.

Physically or verbally abusing anotheremployee is serious misconduct which doesnot deserve anything less than removal fromservice.

Inder Sain vs.Delhi Transport Corporation.2012 LLR 239 (Del. H.C.)

Reference Inclusion of the name of contractor is

not necessary in the reference made by

Govt. to the labour Court against theprincipal employer on the dispute raisedby workman, who was alleged to beemployed by the contractor.

Impleading the contractor in litigation,while getting adjudicated the reference of industrial dispute through Labour Court,is not necessary when only the payment to the workman was made through thecontractor.

ICICI Prudential Asset Management Co. Ltd.,(M/s) vs. Union of India. 2012 LLR 245 (Del.

H.C.)

RegularisationRegularisation of the workmen will not

be interfered by the High Court in writpetition when they have worked for 240days and served for 9 years and also theywere selected by Selection Committee asconstituted as per rules.

Orissa Mining Corporation Ltd. vs. PresidingOfficer, Central Government Industrial

Tribunal-Cum-Labour Court, Bhubaneswarand Another. 2012 LLR 326 (Orissa H.C.)

Reinstatement When the management could not

establish the charge of insubordination inthe court after enquiry was held unfair,reinstatement with full back wages rightlyawarded.

When the management was abusing theprocess of law by filing repeated applicationsseeking adjournments hence in thecircumstances, the rejection of the saidapplication moved for adjourning the case bythe management was justified. When the charge of insubordination, gain, theevidence adduced by the management did notsupport its case hence the reference wasrightly answered in favor of the workman andhe was directed to be reinstated with full back-wages. High court is unable to findappreciation of the evidence led before it andthe Court will stop the litigation which wasprolonged for 43 years.

SIEL Ltd., vs. Lt. Governor and Others. 2012LLR 242 (Del. H.C.)

Reinstatement proper when theemployee was terminated for not passingthe typing test as per terms ofemployment when employee completedthe probation period and grantedincrements too. Invoking clause of typingtest after 15 years of service has norelevance.

Termination of services of the petitioner byinvoking clause 17 of the appointment letterproviding for qualifying test will not be tenablewhen the petitioner has completed theprobation period and got the increments

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whereas the said clause was invoked after 15years.

Mohar Singh vs. National BuildingsConstruction Corporation. 2012 LLR 271 (Del.

H.C.)

Compensation and not reinstatementwould be proper in case of illegalretrenchment of casual workers.

Compensation instead of reinstatementwould be appropriate to the workmen whowere engaged only as casual, hence DivisionBench allowed compensation of Rs.30,000 eachin addition to last drawn wages received bythem as provided by Section 17-B of theIndustrial Disputed Act.

Employers in relation to the Management ofKuju Pundi Project of M/s Central Coalfield

Lts., Ranchi vs. Their Workmen represented bythe Secretary, Jharkhand Colliery Mazdoor

Sangh, Hazaribagh. 2012 LLR 317 (Jhar. H.C.)

Reinstatement cannot be allowed to apart-time tube-well operator since hisservices were terminated because ofconviction in the criminal case.

Puran Lal vs. Executive Engineer, TubewellDivision 1st, Bareilly and Others. 2012 (132)

FLR 310 (All. H.C.)

Reinstatement proper when there hasbeen violation of principles of naturaljustice since the witness was examinedwithout informing the delinquent andopportunity given to the workman.

U.P. State Road Transport Corporation vs.Bachchu Lal Tiwari and Another. 2012 (132)

FLR 2011 (All. H.C.)

On account of delay in raising industrialdispute, the relief of reinstatement soughtby the workman cannot be denied.

Payment of lump sum amount ascompensation to workman, in lieu ofreinstatement to which he is legitimatelyentitled to, is not an effective substitute fornon-employment.

Findings of facts reached by Tribunal onappreciation of evidence, cannot be reopenedwhile exercising writ juridiction. In theexercise of the writ juridiction the courtcannot reappreciate the evidence andsubstitute its opinion for the one of theTribunal.On account of delay in raisingdispute, relief cannot be denied to theworkman. In the instant case granting of lumpsum compensation, cannot be an effectivesubstitute, for his non-employment.

Arrack Bottling Unit, rep by its Chairman,IML Depot, Wyra, Khammman District, and

Anr vs. Hon'ble Labour Court-Cum-IndustrialTribunal, Warangal, Rep. by its PresidingOfficer, and Anr. 2012 I CLR 596 (A.P. H.C.)

Retrenchment Termination on account of failure to

pass the test as a condition beforeregularisation will amount toretrenchment. Non compliance of

retrenchment procedure will lead toreinstatement.

Termination of the workman on the groundof her failure to pass a test as a conditionprecedent for regularization of service,amounts to retrenchment within the meaningof section 2(oo) of the Industrial Disputes Act,1947 hence non payment of retrenchmentcompensation at the time of termination willrender it invalid as such the reinstatement hasbeen rightly awarded.

Punjab University vs. Praveen Bala and Anr.2012 LLR 234 : 2012 CLR (I) 100 (P&H H.C.)

Even a daily-wager, who has worked formore than 240 days, is to be paidretrenchment compensation and onemonth's notice pay if his services are soughtto be terminated by the employee hence theLabour Court is to decide the matter afresh.

Dy. Commissioner (Administration), WomenAnd Child Development, Pune And Others. 2012

(132) FLR 28 (Bom. H.C.)

Even if a person is engaged on dailywages and has completed the continuousservice within the meaning of section 25-B,his services cannot be terminated withoutfollowing statutory provisions of section25-F of Act.

Daily wagers if completed continuousservice within section 25-B for more than 240days, their services were terminated beingsurplus staff without issuing any notice, validenquiry or payment of retrenchmentcompensation. Hence, termination of theirservices would legally amount toretrenchment. His services cannot beterminated without following the provision ofsection 25-F. “Striking off the name of theworkman from the rolls by the management istermination of his service. Such terminationof service is retrenchment within the meaningof section 2(oo) of the Act. The provisions ofsection 25-F (a), the proviso apart, and (b) aremandatory and any order of retrenchment, inviolation of these two peremptory conditionsprecedent, is invalid.”

Director, Food and Supplies, Punjab and othersvs. Parkash Singh and another. 2012(132) FLR

688 (P&H H.C.)

Oral termination of casual labour wouldamount to retrenchment.

(i) Petitioner a casual labour, havingcompleted more than 240 days of service in thepreceding year, oral termination of his servicewithout compliance of S.25 -F of the Act, isillegal retrenchment. No cogent reasonassigned by labour Court for refusing relief ofreinstatement.

Debnath Chakraborty vs. Union of India &Ors. 2012 I CLR 670 (Cal. H.C.)

Standing Orders High Court will not interfere with an

order of the Certifying Officer under theIndustrial Employment (Standing orders)Act by increasing the age of retirement

From The Court Room Latest Judgments

50 Business Manager April 2012

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from 55 to 58 years of the workmen whereas theManagement and the Trade Union representing theworkmen have arrived at a settlement by increasing theage of superannuation from 55 to 57 years

Management of M/s Steelsworth Pvt. Ltd. vs. State of Assamand Others. 2012 (132) FLR 246 (Gau.H.C.)

Termination Termination of the Bus driver illegal on the ground of

medically unfit in view of protection given to suchemployee under Section 47 of the person with disabilities(equal opportunities, protection of rights and fullparticipitaion) Act, 1995. Management is liable to shiftsuch workman to some other place with same salary andbenefits.

In view of protection, as provided under section 47 of thePerson with Disabilities (Equal Opportunities, Protection ofRights and full Participation) Act, 1955, the services of theworkman, declaring medically unfit cannot be dispensed withand Management is liable to shift the workman to some otherplace with same pay scale or service benefits or to suitable posttill the age of superannuation.

An employee whose service was dispensed with due tomedical disability and an industrial dispute raised by him waspending adjudication when the Act of 1995 came into force, theconcerned employee would be entitled to the benefit undersection 47 of the Act irrespective of the fact that the workmanwas found medically unfit much before this Act came into forceas held in the case of Delhi Transport Corporation v. RajbirSingh, 2003 VII AD (Del) 537.

D.T.C. vs. Inder Singh. 2012 LLR 281 (Del. H.C.)

Transfer When employee defied the transfer order as well as

orders to report for duty by applying sick leavecontinuously, not appearing before medical board,employer left with no other option but to remove him fromservice.

S.P. Arya vs. Union of India and Others. 2012 (132) FLR 134(Del. H.C.)

Unfair Labour Practice In the absence of producing original documents by the

employer, practice of making payments to helper on dailywages through vouchers in the name of fictitious persons,would be unfair labour practice. Reinstatement justified ofdaily wager helper worked for three years and terminatedillegally.

Chief Regional Manager, Oriental Insurance Co. Ltd.,Chandigarh vs. Presiding Officer, Central Government

Industrial Tribunal, Chandigarh and Another. 2012 (132) FLR59 (P&H H.C.)

Workman A part-time employee is covered by the definition of

'workman' under the Industrial Disputes Act hence theLabour Court erred in holding that he is not a 'workman'

Kan Singh vs. Distt. Ayurved Officer & Ors. 2012-I CLR 123 (Raj. H.C.)

From The Court Room Latest Judgments

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

Business Manager April 2012 51

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Page 53: That which has intellect and emotion

H.L. KUMAR

Advocate, Supreme Court

The present scenario of trade unions looksvery dismal and disappointing and theblame lies squarely on their leaders. The

treachery and mendacity of many trade unionleaders towards workers and the society is notunknown. History of trade union movementacross the globe is, although, replete with suchinstances, yet what has happened at Manesarplant of Maruti Suzuki is indeed shocking one. Itmay serve as an eye-opener for the working class ifanalysed and observed properly. The unionleaders of Maruti Suziki namely; Sonu Gujjar andShiv Kumar, who led the strike in the plant andcaused loss to the production of 83,000 cars whichwhen translated into terms of money, would cometo Rs. 2,300/- crore. Maruti's sales suffered, as itsrivals gained ground, prompting the company toexplore all options to have permanent solution tothe problem. In its quest to the solution thecompany paid significant amounts of money tomany leaders of employees, who in turn agreed tobid good bye to it.

Sources within Maruti have confirmed that themoney paid to Gujjar, Kumar and 28 others wasmuch well above what was due to them, thoughadding that the company has discretion to do so aspart of a full and final settlement.Gujjar hadbecome the face of the Maruti workforce followingthe three successive strikes at its Manesar plant,and had even been approached by the company'sinstitutional investors, who wanted his take onthe management-labour standoff.

Gujjar claims that he and the others with himhad no option but to resign to avert furtherdisputes with the company. "We did not have the

resources to even hire a lawyer to fight our case ifwe were terminated, which was most likely thescenario. Any such move would have only led to arenewed labour standoff at Maruti. Thus, wedecided that we should take the settlementamount and move out." However, it is only thepublic face of the management and the union, thereal story smacks of the whopping money-deal.

D. L. Sachdeva, National Secretary, All IndiaTrade Union Congress, all the same, holdsdifferent opinion. He says that pay off to unionleaders pushes the problem away instead ofsolving it. Take the example of Maruti, withindays of news appearing that the old guard of theleadership had parted ways, workers elected a newunion body to take their fight forward. What is theguarantee, then, that the company will not witnessany other strike? In fact, it will, if the company isnot able to address the workers' issues. This couldcertainly be a good lesson for the managementsbut how the workers would come to the grips whenthe union leaders in whom they reposed faithdecided to betray them.

In terms of law, companies may be able tojustify to themselves that there is nothingunlawful in paying off unions. Yes, the law doesnot stop companies from paying union leaders ahandsome price for their loyalty. And in doing sothese multinational companies may not beviolating any law, they are certainly not doingsomething that is in concurrence with the spirit ofthe law. And their preposterous dirty actions willundoubtedly cause damage to such managementsas are clean and honest because they can also beblackmailed by un-scrupulous elements.

52 Business Manager April 2012

Trade Unions :Guardians of labour

aristocracyIn their effort to buy unions, most management fails to comprehendthe real reasons behind workers going on strikes.The primaryreason for continuing strikes is the trust deficit between themanagement and workers. In its drive to match sales targets, itforgets to factor in their interest.

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In their effort to buy unions, most managementfails to comprehend the real reasons behindworkers going on strikes. The primary reason forcontinuing strikes is the trust deficit between themanagement and workers. In its drive to matchsales targets, it forgets to factor in their interest.Mr. Sachdeva further says that instead of payingworkers off, managements should figure out thereasons for workers to resort to strikes and bridgethe trust gap. In doing so, companies would havefewer instances of strikes.It is not difficult intoday's climate to engineer violence duringagitations. And unions can usually bank on theham-handed police to over react as had happenedat NOIDA, KAKINADA and many other places.

In India, trade unions often pressurisepoliticians and politicians use them for theirulterior motives. The country suffers in threeways by the conduct of irresponsible trade unionsand their leaders. First, assets, like land andmachinery get frozen in poor uses. Second, moneyfrom banks and financial institutions is divertedto sick units instead of being used to establishhealthy new enterprises. Third, the consistentmis-allocation of resources to low-productivitysectors means asphyxia of economic growth ofemployment and of incomes.

No Job GrowthIn the last decade, there has been hardly any

job growth in the organised sector. The mainreason for this is our labour laws, which make itdifficult to sack, transfer or even discipline anerrant or unwanted worker. The existent labourlaws provide more protection to work shirkers andtrade union leaders than helping and promotingthe honest and sincere workers. Howsoever,indisciplined and undesirable a worker may be, anemployer had to follow a cumbersome andmeticulous procedure in getting rid of him. Theresult is that companies go out of their way tomechanise and avoid hiring workers. Jobs which

cannot be mechanised are often contracted out tosmall firms, which hire causal workers. In thismanner, the labour aristocracy systematicallyhelps to reduce employment and promote jobcasualisation. Big trade unions claim that they areguardians of the weak. In fact, they are guardiansof the labour aristocracy and the enemies of theunemployed, the poor and the casual worker. Inthe past, no government was willing to talk onorganised labour. 'All parties went along with thefiction that trade unions represented the poorest;that labour laws helped employment; thatpreventing the redeployment of assets from sickto healthy units somehow helped the overall causeof the working men; and that draining the banks,financial jobs was preferable to giving freshemployment on a much larger scale to the reallypoor. One reason for sticking to these myths wasthat every party has a labour wing. Therefore, thepanacea for the ills that is inflicting to ourindustries is to drastically change the labour laws.The labour aristocracy must be finished and theconcept of golden handshake be given fillip.

In has also been observed that in manyindustries, the rival companies play veryimportant role in playing the dubious role infomenting the workers and thereby causing loss tothe competitors. But many a time this tacticsboomerangs on them. It is difficult to ask theworkers and the managements to observe honestyin their conducts, therefore, the only way out ismake it transparent without giving any space orscope to dishonest and unfair handling of thesituation.

Business Manager April 2012 53

Trade Unions : Guardians of labour aristocracy

The country suffers in three ways by the conduct of irresponsible trade unions andtheir leaders. First, assets, like land and machinery get frozen in poor uses. Second,

money from banks and financial institutions is diverted to sick units instead of beingused to establish healthy new enterprises.Third, the consistent mis-allocation of

resources to low-productivity sectors means asphyxia of economic growth ofemployment and of incomes.

Big trade unions claim that they areguardians of the weak. In fact, they areguardians of the labour aristocracy andthe enemies of the unemployed, the poorand the casual worker.

BM

Page 55: That which has intellect and emotion

Supreme Court has time and again lambastedthe delinquencies involving loss ofconfidence in an employee more so of an

employee in private sector. The court is in thehabit of frowning at such indulgences. It has alsojumped with the prescription that such adelinquent shall not be shown any leniency andthat punishment of dismissal would beproportionate to the gravity of such misconduct.The Supreme Court has also laid down theguidelines as to what would be the situations andat what point of time as also the nature of chargesthat would bring about loss of confidence in anemployee. The charges and proof of theft,embezzlement, fraud, breach of trust, disclosureof trade secrets and corruption would be suchcontingencies that would cause the events of lossof confidence. In service jurisprudence if theevent of loss of confidence has occurred, nomeasures can build it again or be regained it.Although in other fields of relationship, we talk of"confidence building measures". The SupremeCourt has also held that the question ofconsidering reinstatement after decision ofacquittal or discharge by a competent criminalcourt would hardly arise if in the case enquiryhas been held independent of the criminalproceedings, acquittal in a criminal court wouldbe of no help. The law is otherwise. Even if aperson stood acquitted by a criminal court, actionif based on the result of domestic enquiry whichhas been held adhering to the principles ofnatural justice, it shall be sustained. The reasonis that standard of proof required in a domesticenquiry and that in a criminal case are altogetherdifferent. In a criminal case, standards of proofrequired is beyond reasonable doubt while in adomestic enquiry it is prepondrence ofprobabilities that constitutes the test to be applied.We are so concerned of such mis-demeanours that

the Government of India is contemplating move toseize assets of corrupt babus even after theirretirement. The main theme of this write up justcommences as to what is the legal metaphysics ofthis exercise of holding the loss of confidenceremedy.

In catena of cases the Supreme Court has dealtwith various phases, aspects and ingredients ofthis contingency of loss of confidence. TheSupreme Court has categorically held that oncethe employer has lost confidence in the employeeand the bonafides thereof are affirmed, the orderof punishment must be considered to be immunefrom challenge. The reason is obvious thatdischarging the office of trust and confidencerequires absolute integrity and in the event of lossof confidence reinstatement can not be directedvide Air India Corporation V.s V.A. Rebellow (1972)1 SCC 814 and BHEL V/s. M. Chandra ShekharReddy (2005)4 SCC 481. Earlier the Supreme Courtin the case of Kanhiya Lal Agarwal Vs. GwaliorSugar Company Ltd. (2011) 9 SCC 609 laid down thetest for determining the loss of confidence in theemployee. It ruled that the employee must beholding the position of trust and confidence, hemust have abused such position by committing anact which resulted in forfeiting the same and thatto continue him in service would be embrassingand inconvenient to the employer as damagingdiscipline and security of the establishment. Ithas also been ruled that loss of confidence couldnot be subjective. It should be objective as to leadto the apprehension in the mind of themanagement regarding the trust-worthiness orreliability of the employee. Similarly the loss ofconfidence must be alleged and proved. Anemployer would not be compelled to keep anemployee in service with whom relations havereached the point of no return. There is competebreakdown of loss of confidence/faith between

54 Business Manager April 2012

P.C. CHATURVEDI

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

Of Trust DeficitIn service jurisprudence if the event ofloss of confidence has occurred, nomeasures can build it again or beregained it. Although in other fields ofrelationship, we talk of "confidencebuilding measures".

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the duo vide Binny Ltd. Vs. Workmen (1972) 3 SCC806, Binny Ltd. V/s. Workmen (1974) 3 SCC 152,Anil Kumar Chakraborty V/s. Saraswatipur TeaCompany Ltd. (1982) 2 SCC 328, Chandulal V/s.Pan American World Airways Inc. (1985)2 SCC 727,Kamal Kishore Lakshman Vs. Pan AmericanWorld Airways (1987) 1 SCC 146 and Pealite Liner(P) Ltd. V/s. Manorama Sirsi (2004)3SCC 172. Ithas also been held that theft is a contingency ofloss of confidence and the quantum of theft wouldnot be important and relevant but what isimportant is the loss of confidence of employer inemployee, when he has committed such amisconduct. It would not be safe and in theinterest of the employer to continue the employee.The loss of confidence occupies the primaryfactor and not the amount of money. Sympathyand generocity have no place in dealing with suchcases and the punishment of dismissal that couldbe awarded would not be disproportionate in thegiven circumstances. The punishment shouldalways be proportionate to the gravity of themisconduct but punishment of dismissal forcorruption, misappropriation and thefts aredefinitely proportionate and it should never beinterfered.

In service jurisprudence, the history atteststhat a cat and mouse game is always going onbetween the two. The plea of the employer of his"loss of confidence" more so where holding aposition of trust and confidence, the concerned

employee misused that position rendering itinsecure and undesirable to retain him in service,despite his discharge or dismissal having beenheld to be invalid, will destroy the discipline. Thefirst case in which the Supreme Court acceptedthe plea of loss of confidence advanced by theemployer was Assam Oil Company Ltd. V/s. Itsworkmen 1960(1) LLJ 587 (SC). In this case thecompany lost confidence in the manager. Thenagain the court in the case of Rubi GeneralInsurance Co. Ltd. V/s. P.P. Chopra 1970(1) LLJ 63accepted the plea of the management of loss ofconfidence in a Stenographer although this pleawas first pressed before the Supreme Court. Thenagain in Hindustan Steels Ltd. Vs. A.K. Roy 1970(1) LLJ 228 the plea of the employer of loss ofconfidence in the workman prevailed. Then thereare similar cases i.e. Workmen of Sudder OfficeCinmmara V/s. Management of Sudder Office1971 (2) LLJ 620 and Binny Ltd. V/s. theirworkmen 1972 (1) LLJ 478 (SC). So at that time alsoit had become almost a settled principle thatreinstatement would not be awarded where themanagement justifiably alleged that they had

ceased to have confidence in the dismissedemployee but at that time a distinction was drawnthat the plea of loss of confidence was addressedagainst the order of reinstatement and not insupport of order of dismissal. It has also beenheld by the Supreme Court that this aspect of pleaof no confidence required determination on factscould be properly placed before the Tribunal andthe finding secured after appropriate trial. Ittherefore follows that this concept of plea of noconfidence originated long back in 1960s and stillcontinues to hold the ground with somemodifications and alterations which situationswarranted.

In the aforesaid backdrop and thechronological account of the judicial evolution ofthe concept of "loss of confidence", I may nowrefer to a latest case of Supreme Court DivisionalController, Karnataka Road State TransportCorporation V/s. M.G. Mittal Rao (2012) 1 SCC 442.This case is vastly important because it decidesseveral facets in this regard. It so happened thatthe workman was charged of committing theftfrom the cash chest of the employer for which hewas charge-sheeted and enquiry was heldadhering to the principles of natural justice andthat he was awarded the punishment of dismissal.The workman raised an industrial dispute and thecase was referred to the Labour Court whichanswered the reference in negative, holding theworkman guilty of the theft with his colluders.

The High Court in the Writ Petition modified theorder of dismissal into termination. However, theDivision Bench of the High Court allowed theappeal and quashed the award of the LabourCourt and reversed the order of the Single Judgeand reinstated the workman with allconsequential benefits.

In between the workman who was initiallyconvicted of the criminal offence touching thesame misconduct got acquitted at the level of HighCourt. The Apex Court therefore in this case asbrought by the workman decided that it was a caseof established loss of confidence which wasalleged and proved in the domestic enquiry whichwas adjudged fair and proper and on which thepunishment of dismissal was properly andproportionately awarded and that ultimateacquittal by the criminal court was of noconsequence to the workman because in the twinproceedings the standard of proof are distinct. Inone stroke, the court decided so many aspects ofthe event of loss of confidence in servicejurisprudence. It is now a law of the land on thisquestion.

Business Manager April 2012 55

Of Trust Deficit

The Supreme Court has categorically held that once the employer has lost confidence in the employee and the bonafides thereof are affirmed, the order of punishment must be

considered to be immune from challenge.

The loss of confidence occupies the primary factor and not the amount of money.Sympathy and generocity have no place in dealing with such cases and the punishment

of dismissal that could be awarded would not be disproportionate in the given circumstances.

BM

Page 57: That which has intellect and emotion

The 7th International Conference on IT Applications andManagement: Technological Innovation and the Future of Cultureand Tourism was organized by JK Lakshmipat University, Jaipur

in association with The Korea Database Society (KDBS), hosted byHanyang University, Seoul, Korea from December 28-29, 2011.

The Conference was inaugurated by Shri M. L. Mehta, Former ChiefSecretary, Govt. of Rajasthan, Chief Guest.

Shri Mehta emphasized upon the role of technology in improving thelife of a common man. He highlighted the age-old Indian philosophy of"Vasudev-Kutumbkum" and said that technology has made it possibletoday and has transformed the world into a truly global village.

Dr. Upinder Dhar, Conference General Co-Chair and Vice Chancellor,JKLU asserted that Information Technology (IT) represents the DrivingForce for present day organizations. He added that culture is affected bytechnology, and tourism is one area that has been immensely benefittedby technological innovations.

Dr. B.V. Babu, Co-Chairman - Organizing Committee and Director, IET,JKLU introduced JK Lakshmipat University to the audience and sharedthe vision, mission and philosophy of the University. Prof. Namjae Cho,Conference General Chair and President, Korea Database Society(KDBS), delivered the Opening Remarks and explained the objectives ofthe Society and ITAM Conference.

The Keynote Address was delivered by Dr. D. K. Banwet, Professor andGroup Chair, Operations and Supply Chain Management, Dept. ofManagement Studies, IIT Delhi, India, who discussed elaborately abouthow relation between functional groups can work wonders for anyindustry. He also highlighted the significance of competitiveness forservice industries like travel and tourism.

On the second day, the Speaker for the session was Prof. K. B. Kothari,Pratham Rajasthan and Former Professor, IIM Ahmedabad. Prof. Kotharihighlighted the need for research in the areas of social, community and

56 Business Manager April 2012

7th International Conference on

IT Applications and Management

rural development by scholars of IT andManagement. Prof. Cho in his concluding remarksintegrated his expertise in the area of technologyto social development.

In all six technical sessions saw a presentationof 65 papers during the conference.

The Valedictory Session Chief Guest was Dr. RajSingh, Vice Chancellor, Amity University, Jaipur,Rajasthan. He emphasized upon the importance ofinformation technology and highlighted its impacton various industries, including travel andtourism. BM

Page 58: That which has intellect and emotion

CASE study

Pison Industries Pvt., Ltd (PIP) located at Pune, was set up in 1957 as NewIndia Engineering Works. Itdeat with the manufacturing and supply ofcomponents for the sugar mills.The companydesigned, manufactured,

supplied and installed technologically advanced solutions to sugar plants,mining andbulk materials handling, cement plants and industrial boilers &power plants.Initially, the company was set up by a group of 5friendsbelonging to the Bohra community. In 1960s growing sugar acreage,and Govt.,incentives led to a large number of sugar mills to becomeoperational in Maharashtra and UP.

Seeing an increasing market,in 1965 New India Engineering Worksentered into a collaboration with Hilderberg (45%), a German manufacturingcompany which was into design and manufacture of sugar plants for fullplant technology involving design, manufacture, installation, commission(upto commercial production) and providing after sales services. In 1992 thecompany was taken by Pison AG by acquiring 53% stake of the companywhile the remaining 47% remained with the 5 Indian private stake holders.The company was renamed as Pison Industries Pvt Ltd.PisonAG (a companyformed through a merger of Pintel(1805) and Samson) had a presence in all 5continents with an annual sales turnover of Euro 50 Billion. It had 1, 88, 000employees. The group had pursued a strategy of globalisation beingfocusedon coming closer to its customers and reducing costs, while catering to theirprecise needs.

Sustainabilityin CompetitiveTimesThe case traces the success story of PIP and highlightsits growth from a small domestic player to aninternational player. Changing micro environment,Government policies, and competition and growthopportunities led the company to go into new sectorsof turnkey manufacturing projects in a plannedmanner.The case gives an overview of changemanagement, strategic decision making, marketadaptation, project management and innovation.

QuestionsComment on strengthsof the company.

Comment on thestrategy the companyadopted to remainfocused in the business.

According to you whichstrategy other thandiversification shouldthe company adopt forsustainability?

In the absence of theincentives whataccording to you keepsthe employeesmotivated?

How the companydifferentiated itself inachieving sustainedgrowth.

1

2

3

4

5

Business Manager April 2012 57

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CASE study

The CompanyPison Industries Pvt Ltdwas part of the global Pison AG which had two

major business areas namely Material and Technology. Material BusinessArea dealt with Steel Europe, Steel America, Steel Global and MaterialServices while its Technology Business Area dealt in Plant, Elevator,Component Technology and MarineSystems.Itsstrategic vision was to be aleading contractor executing full plant turnkey projects. Full plant turnkeyproject encompasses Proposal Engineering, Design and Engineering, ProjectManagement, Materials Management, Manufacturing, Erection andCommissioning and Training and After Sales service. The company was intodelivering total customer satisfaction that spanned everything from conceptto commissioning to after sales service. The company focused ondifferentiating it from its competitors in terms of pricing, efficiency ofmanufacturing and after sales services.

PIP came under the Plant Technology Business Area and was into SugarPlant, Boiler Manufacturing, Cement Plant, Open Cast Mining& BulkMaterial Handling systems and Elevators & Excavators. It had itsmanufacturing plants in Pune and Hyderabad where they manufacturedcomponents for all varied type of plants. It had 15,000 employees and hadachieved a turn - over of Rs 1300 crores in 2010 and had set a target of Rs 1,500crores for year 2011.The company was ISO 9001-2008 & ASME qualitycertified. PisonIndustriesPvt. Ltd. (PIP) in the last five decades had grownthrough diversified manufacturing activities. It had till 2010 supplied 131Plants, 543 Mills and 4040 Centrifugal machines all over the world. Thediversification was supported by German Technology with indigenousadditions.

The FootprintsThe transition of PIP from a pure Sugar Plant turnkey project company to

its present status had been gradual and in league with the growing marketdemands. Starting from 1957 when it was into manufacturing of smallcomponents for the sugar industry, it expanded and diversified from time totime in league with the micro environment. The company began by firstinvesting in infra-structure and the purchase of requisite machinery. Thiswas essential as till then raw material was imported and casting wasoutsourced. With these investments the company had the flexibility andcapacity to diversify. All along in its growth and expansion the investmentscame in from internal accruals. It did not have to go to banks or investors forcapital generation.

Sugar PlantUnder each of its Five-Year Development Plans, the Government had

provided for additional capacity to meet estimated increasing demand forsugar. Thus, the number of sugar factories rose from 138 in the early-fifties tol73 in l960/6l, and by the mid-nineties their number exceeded 440. Seeing thepotential in this business PIP decided to move from small sugar factorycomponent manufacturing into complete sugar plant making turnkeyprojects which was the reason for its collaboration with Hilderberg. Till 2010the company had supplied150 mills of capacity - 800- 15000 TCB to variousCooperative Societies in the country as well as exported them to othercountries. The Company had achieved the expertise of commissioning a

The company had full confidence in the skill and the competencies of its employees.Theyhad empowered their employees to go in for anyinnovation they would find suitable for thecustomer satisfaction.

The timely completionof the project, quality,and commitment wasinbuilt in the culture ofthe organization.Theorganization hadmiddle and higher levelexecutives with anaverage continuousservice span of 25 yearsin the company. PIPhad a policy ofnotgiving financialincentives or rewardsto its employees whowould meet thedeadlines or who wouldcome out withinnovations.

58 Business Manager April 2012

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CASE study

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

Boiler& Power Plant From, the Fifth Plan onwards i.e. 1974-79, the Government of India got

itself involved in a big way in the generation and bulk transmission of powerto supplement the efforts at the State level. It took up the onus of setting uplarge power projects to develop the coal and hydroelectric resources in thecountry as a supplementary effort in meeting the country's powerrequirements.Looking at the said developments, PIP decided to leverage theirengineering strength by venturing in to this product project. In 1976 thecompany started Boiler and Power Plant turn key projects of capacity of 150TPH to 300 TPH and supplied them to the private sector, ensuring that theaverage commissioning time for the turn key project was only18 months. Thepolicy of liberalization announced in 1991 by the Government of India andconsequent amendments in Electricity (Supply) Act opened new vistas toinvolve private efforts and investments in electricity industry and PIP tookadvantage by exporting power plants to countries in Africa and Asia.

CementGovernment policies had affected the growth of cement plants in India in

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

Open Cast Mining and Bulk Material Handling Machinery

In 1991,the liberalisation of the economy made the Government andprivate sectors to invest in the infrastructure. It was a boom in theinfrastructure sector. The company immediately saw an opportunity andventured into Open Cast Mining and Bulk Material Handling Plants.

The company dealt with varied customer base. For Sugar Plants thecustomers were the State Cooperative Societies while for the Boiler andPower Plants the customers were from the Private sector. In case of MaterialHandling Equipment the customer was Central Government and for CementPlants they were Private sector companies. Thus PIP was catering to diversecustomer base.For the company the customer was the focal point aroundwhich they put every possible effort to satisfy him. Timely delivery, qualityand meeting specific requirements had become the sole objective of thecompany. PIP in addition was able to win the confidence of Customers byputting its employees / people at the centre of all its efforts. It also ensuredcontinuous up gradation of its employees skill-set through suitable trainingwhich empowered them to be creative and innovative and facilitated them toachieve higher efficiency at the work place.

The company ensured that their clientele would not be affected. In 2007 a

Government policieshad affected the growthof cement plants inIndia in various stages.The control on cementfor a long time and thenpartial decontrol andthen total decontrol hadcontributed to thegradual opening up ofthe market for cement.The cement industrywas going through itsboom period with fullcapacity utilization.

Business Manager April 2012 59

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CASE study

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

The Company did not hesitate in taking a risk of outsourcing to adeveloping country in order to meet the time deadlines and cost and qualityconsiderations. In the infrastructure boom period, PIP had a large supplyorder of 50 mills in a year. As the company installed capacity was inadequateto meet the demand, the production was outsourced to some companies in adeveloping country while ensuring quality control through monitoring of itsown engineers.

The company had full confidence in the skill and the competencies of itsemployees. They had empowered their employees to go in for any innovationthey would find suitable for the customer satisfaction. Thebucket wheelexcavator used in Open Mining had a massive 8 m diameter. At the time ofinstallation it invariably needed fine grinding on site. The process waslaborious, time consuming and problematic in terms of availability ofmachinery at site.This invariably resulted in delays and customerdissatisfaction. This was observed by the Manufacturing head. To overcomethis systemic problem, he decided on his own, to cut the wheel bucket intotwo along the diameter. This facilitated in hoisting it in the factory floor andfine grinding it. After grinding both the parts were then welded together andtransported to site. In this manner no time was wasted at site and there wereno fine fitment problems. Also the overall time was reduced and full customersatisfaction achieved. Similarly Mill shell with a 5m diameter of bearing wasbeing manufactured for the first time in PIP. With the existing know how itwas not possible to machine it. Innovation was done by the manufacturingteam to apply rollers to rotate the bearing and complete the machining. Theserollers were specially manufactured in house at their Hyderabad plant. Thisprocess resulted in cost and time reduction. In addition, the customer'soperational cost was also reduced due to the better fitment of the product inthe assembly.

The timely completion of the project, quality, and commitment was inbuiltin the culture of the organization. Theorganization had middle and higherlevel executives with an average continuous service span of 25 years in thecompany. PIP had a policy ofnot giving financial incentives or rewards to itsemployees who would meet the deadlines or who would come out withinnovations. The employees would never defer to give their utmost. Trainingwas imparted to employees on continuous basis. Company would send itsengineers to update their knowledge and skills to Germany 8 - 10 times in ayear. All shop floor employees were trained to work on 4- 5 machines and jobrotation was also practiced. The company was quite optimistic about its settargets.

This case was developed by Santosh Dhar (Institute of Management, JK Lakshmipat University, Jaipur, Rajasthan, India); Rajiv Divekar(Symbiosis Institute of Management Sciences, Pune); Kaustubh Medhekar (Symbiosis Institute of Business Management, Pune); Viraja Bhatt

(Symbiosis Institute of International Business, Pune); Dinesh Khisti (Symbiosis Institute of Operations Managament, Nasik); Pradnya Chitrao(Symbiosis Institute of Management Sciences, Pune) in a case writing workshop organized by Symbiosis International University, Pune in

collaboration with JK Lakshmipat University, Jaipur Rajasthan, India on April 25-27, 2011.

The Company did nothesitate in taking a riskof outsourcing to adeveloping country inorder to meet the timedeadlines and cost andquality considerations.In the infrastructureboom period, PIP had alarge supply order of 50mills in a year.

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Trends

Business Manager April 2012 61

An alliance between man and machine is an uneasy one even asautomotive companies from Cheannai to Chakan, Gurgaon toSanand, slowly deploy more robots. Honda Siel, in its journeyfrom 30,000 cars a year to 120,000 has almost tripled automationlevels-from 20% to 55% Maruti Suzuki's Manesar plant is highlyautomated compared with its older Gurgaon facility. Ford Indiadeployed 90 robots to meet high demand for its small car Figo.

There is no full-blown man machine confrontation yet, only agnawing fear among 200,000 employees at auto factories across thecountry. "Automation is also one of the points of differences withthe management," says A Soundarajan, General secretary oftrade union Citu, who has fought many a battle with HyundaiIndia's management in recent year. "Automation will result in Joblosses and retrenchment." Fifteen machines would have needed 15operations a few years ago. Now, one man can run 10 machines.

Car companies directly and indirectly employ over five workersfor every car produced. All auto and component companiestogether employ over 1.3 crore workers directly and indirectly.Today, 40% of the value of the car comes to Hyundai by way ofpre-arranged modules, de-skilling the job at the shop floor. Yetagainst the back droop of these robots, sourced from sistercompany Hyundai Heavy Industries, Hyundai employees aren'tletting things to drift in favour of their inanimate factory mates.They have been working on improvements these days. Theserange from tools to detect the welding quality to an energy saver

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

Apollo has already set in motion an automation deploymentplan for all its four India facilities. Already, work done by a groupof workers earlier is now managed easily by a robot. Also, to be inthe game workers would need more advantage skills. The Indianauto shop floor isn't as automated as those in the more maturemarkets. So, while the German Carmaker Volkswagen's Chakanplant has an automation of 30% in its body shop, the comparativenumber back home would be 90%.

In low wage countries like India the question is whether risingwages and rising production volumes will lead to the levels ofautomation as in the mature economies ? Labour does remain analluring option, despite recent problems. That's why, AbdulMajeed, Auto practice leader, Price Water House cooper, reckson,"The growth of automation will be slow in India." This is despiterobots enabling efficiency improvement between 25 and 30%, hesays. The high rate of growth in the industry makes this possible.So, although there is no immediate threat to workers in the Indianshop floor, the demands on them aren't the same anymore. Theirroles are changing.

CTC by Co, salarydesign by selfCompanies are now offering their employees thechoice to structure their pay packets. So while the costto company (CTC) is fixed by the employer, employeesare given a free hand to decide on which componentsthey would like to have as part of the salary.

Termed 'My Pay, my Choice' by Procter & GambleIndia (P&G), 'Flexi Menu' by Marico and Bouqet ofbenefits' by Tata consultancy services (TCS), theobjective is one and the same. And though it's stilllimited to certain companies, the trend could grow.

P&G launched 'My Pay My Choice' this year after itrealized that youngsters prefer a workingenvironment which offers them choice, even in theway their salary is structured,. "We realized thatbecause you have different generation of people,choice. For instance, they may want to take a certainamount of cash or keep it in a company fund whichwill come with its own benefits. People see value inthis," said Sonali Roychowdhury, head, HR, P&GIndia, which has 1,000-odd managers in the country.

Similarly, to attract new recruits as well as retainthe existing talent, TCS, Asia's largest IT servicesprovider, has a scheme called 'Bouquet of Benefits',which allows employees to design their own paypackets. Launched some six years ago, employees areallowed to make changes to their salary structuretwice in a year. The flexible-benefit plan aidsemployees in working out their tax payouts. TCS hasover 2 lakh people on its rolls. At Asian Paints, thecountry's leading paint company, all 700 executive andmanagerial cadre employees are covered under a'Flexi Grade Allowance' system, which gives them theoption of designing certain allowances to suit theirlifestyle. So while the CTC is fixed and benchmarkedagainst the market, the components may vary fromone manager to the other.

Cos doing away with leaves system : employees

to manage selfMarico, which makes Parachute coconut oil, does not keep a musterto monitor employee walk-ins at work. If an employee takes a day off,he or she is not marked absent . Nor is the employee required to filea leave application. Like Marico, many other companies have struckout the system of casual leave (CL) and sick leave (SL) from theirleave calendars. Hindustan Unilever, Asian Paints and JyothyLaboratories are some of the other companies which do not follow aCL/SL system and believe in empowering employees to managertheir work schedules to meet their targets.

This trend can be observed in industries like FMCG and financialsector, where employers are concerned about the end result andperhaps it helps in employee retention as well. Such initiatives havea positive impact on the productivity of employees who can managetheir work schedules better in addition to attending to family needs.

Marico offers flexi-timings as it believes that every employee hasthe capability of managing his or her life better if he or she is herown boss.

So, a casual leave is not an entitlement and that the organization'stask is only to facilitate the same. Jyothy Laboratories offers itsemployees 21 days consolidated leave rather than complicatingmatters with CL and SL, said a senior official.

A number of traditional companies, however, still follow aCL/SL/PL (privilege leave) calendar, especially in the salesdepartments, where work schedules are followed like a militaryregime. While, on the other hand, some companies offer flexi-time options to middle and senior-level employees. At Mahindra Group, theattendance tracking is through access control cards. "At middle andsenior levels, the attendance regularization is empowered to theemployees. Up to managerial levels, the absences need to beregularized by applying through system which requires to beapproved by superiors," said Neha Kharde, GM, corporate humanresources, Mahindra & Mahindra.

HR Practice

Robots confront men in Car Factories

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HR News

Industrycreating less

jobs bypreferringautomation

According to a recent report by theinternational labour organization (ILO),total employment increased only by 0.1%between 2004-05 and 2009-10 where aslabour productivity grew by over 34%during this period. Companies arepreferring to employ more capitalinstead of labour while producing goods.The country's worker-to-fixed-capitalratio in the registered manufacturingsector has declined from 10.9 in 1990-91 to3.2 in 2009-10. Growth in employment,too, has slowed from 2.61% in 1993-94 to1.02% in 2009-10, according to five yearlyNSSO survey.

Experts believe the shift towardscapital-intensive production can beexplained by restrictive labour laws,which result in an increase in contractlabour, poor availability of skilled labourand greater competition from betterquality foreign goods.

"When viewed in conjunction withslowing employment, it is certainly aproblem. And the main reason is that thelabour-intensive industries are notgrowing fast enough," said Pronab Sen,Principal Advisor, planning commission."More research is required to understandwhy the traditional labour-intensiveindustries are also preferring capital."An increasing bias towards capital-intensive production, or a higher degreeof mechanization, has also skewedIndia's export basket.

(It's) a matter of concern because it isthis (labour-intensive manufacturing)sector that holds the potential to absorbthe large pools of surplus labour fromIndia's agriculture sector. A fall in labourintensity in manufacturing -- the extentof labour inputs used in per unit ofoutput produced -- also raises concernsabout India's ability to absorb its rapidlyexpanding work-force and reap thebenefits of a favorable demography."Since the labour supply is rising butdemand is unable to keep up, it is notpossible to reap the benefits of a largeyoung population -instead it will increasethe burden on the economy as there willbe more mouths to feed," said ArupMitra, labour economist at the Instituteof Economic Growth.

The ASI (annual survey of industries)data on workers employed is underestimated because it doesn't capture thehuge rise in contract labour. Rigid labourlaws have forced employers to seek outworkers on contract.

Contract labour unions knock court against Holcim

Cement giantSeveral Indian and international unions for contract workers have filedcomplaints against the Indian arms of Swiss multinational firm Holcim, thecountry’s largest cement manufacturer, for alleged gross violations andundermining of the rights of contract workers employed by the cementmanufacturers in the country.

The complaints have been filed against Holcim India and its subsidiaries forthe violations of OECD guidelines. (OECD stands for organization for EconomicCo-operation and Development). It is an international organization of 34economically developed countries which has laid down guidelines for MNCenterprises regarding respect for international norms for labour standards andhuman rights.

The complaints, Pragati sheel Cement Shramik Sangh (PCCS), anindependent union of contract workers in Chattisgarh alleges gross violationsof contractual workers in the Cement plants of Holcim India and Group firms inChattisgarh. It alleges that the village land in Chattisgarh have been encroachedby the cement gaint without giving much employment opportunities to the localcommunities. It alleges that Holcim refuses to regularize contract workersdespite two court findings. Also, the profits for the cement firm has been soaringwhereas the contract workers get paid only minimum wages or even less wagesthan what is set by the Cement Wage Board.

PCCS claims to have found support from several international federationsrepresenting over 20 million workers worldwide and from Building and woodWorkers International comprising of 328 trade unions.

Hiring drops, but not salary hikes : Study

Despite the uncertain economicscenario, 72% of recruiters in Indiahave said that new jobs will be createdin the first half of 2012 while about4% said that there will be layoffs.Further, employees in India are likelyto get a salary increase of 11.9% thisyear, putting the country on top for thetenth year in a row in terms of payhikes within the Asia Pacific region.

The overall optimism, however, islower than what it was nine monthago when in July 2011, 78% ofrecruiters had predicted addition ofnew jobs in the seconds half of 2011,according to Info Edge promotedNaukari.com, while as per the surveyconducted by global human resourcesconsulting and outsourcing firm AonHewitt, the salary hikes for India in2012 would decline marginally from12.6% in 2011 due to cautiousapproach by employers.

Thus, although the overall sentiment shows that there will be positive jobgrowth over the next six months, recruiters in auto, banking, pharma andconstruction were not as optimistic as those in the other sectors.

Interestingly, the pharmaceutical sector is likely to witness a 13.3% salaryhike for 2012, followed by engineering design/services projects at 13%

The surveys noted that more than 56% recruiters said that attrition intheir organization is less than 10% while 32% said that the range ofincrements would be between 10% and 15%.

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HR News

Pune - based IT company PersistentSystems has injected an element of funinto its annual appraisal process. Theiremployees are building ‘virtual homes’,representing their career, and doing themup with rewards they get for a job welldone. Persistent claim this is a first-of-its-kind initiative in the IT industry.

Nitin Kulkarni, executive director andchief operating officer, PersistentSystems, says, “Two months before andafter the appraisals, the staff is engrossedin the process. They become dysfunctionaland only worry about ratings andpromotions, and what is achieved out ofthis year-end process is not clear, too.”

“Nearly 70% of our people have 0-5years of work experience and are up to 27-28 years of age,” he says, adding, “Forthem, the yearly appraisal process ispainful and lengthy. They are more usedto communicating on social networkingsites and are more communicative on thevirtual world.” The company has,therefore, developed a platform eMee’ tocover 7,000 employees across the globe.

The platform combines elements of socialnetworking, gaming, virtual communitiesand enterprise intranet to create a newway of employee engagement. Relating tothe younger generation is a different ballgame, Kulkarni adds.

Each employee has a house in whichtheir key result areas are displayed usingrich graphics. They do up their housewith rewards they get from theirmanagers and icons of reprimands areadded, too. Employees can see where thestand vis-a-vis peers, as if they were in acar race. There is a constant feed-backflowing between the employee andmanagers. Everything is visible to allemployees barring the final ratings.

Large IT companies still use the oldmodel of filling appraisal forms and onlyfew have switched over to an electronicmode. “I think the next generation doesn’twant anything to do with spread-sheets,”says Tarun Sharma, VP (R&D and GM),BMC India. IT companies in India have ayoung workforce, where average age isbelow 30, and this new generation thinks

differently, says Tarun Sharma.

“But it is not possible to completely doaway with the traditional system ofappraisals which has focus on accountability, performance and bottom line,”says Pallavi Sharma, general manager–human resources, Fiserv India.

Performance management is acontinuous evaluation process thatrequires a 360-degree feedback thatincludes not only the manager, but peers,subordinates and customers also, saysPallavi Sharma. But there is a drasticchange in the way appraisals happens inorganization today, she acknowledges.

Fiserv has tried some innovativebusiness practices to engage with itsemployees career growth. It has a ‘MyCareer, My Responsibility’ programmewhere the motto is ‘managing my careeris in my own hands’. Employees indicatetheir career interest and assess thecompetencies required for the currentrole themselves and work stowardsachieving those competencies to progressin their careers.

Employees not paidfor months in PSUs

At state-run Instrumentation Ltd. in Kota (Raj.) employeeshave got salary since December. He is among the 1,400-oddemployees at the PSU who for years have been getting their paycheques with a lag of several months. “Earlier employees usedto take a loan against provident fund balance but for the lasttwo years, we are facingdifficulty with that too,” saysMadan Lal. This when lakhsin arrears are owed toemployees due to payrevisions between 1992 and1997. The same story is playingout in other loss-making firmssuch as Hindustan Cables,HMT and Scooters India.There are over 12,000 suchemployees in at least a dozenPSUs reporting to PrafulPatel’s ministry of heavyindustry and publicenterprises, who get theirsalaries with a six month lag.Unlike Air India, where thethreat of a strike and the prospect of inconvenience tothousands of travelers prompt the government to make aspecial payment, in the other loss making PSU the governmenthas decided to pay delayed salaries as a policy. “Usually there isa three month lag between the last date on which the salary waspaid and when the government starts processing the proposal.It then goes to the cabinet for approval. So, the entire processtakes nearly six months,” says an official in the industryministry. “This (delay) is (deliberately) done to put somepressure on the management and the employees to work out arevival plan and perform better,” adds the official, pointing outthat 16 of the 28 sick PSUs under the ministry’s charge havebeen revived over the past few years.

AilingCompanyInstrumentation Ltd, KotaHindustan CablesHMT LtdHMT BearingsHMT Chinar WatchesHMT WatchesHindustan Photo FilmsNagaland Pulp and PaperNepa LtdScooters IndiaTriveni StructuralsTungabhadra Steel

IT companies pep up appraisal process

Air India sacks 43 employees,move to save Rs 6 cr per annumIn ITS desperate attempts to cut costs, the government-owned AirIndia has begun the cleaning up exercise. It recently terminatedservices of 43 employees who were continuing on the payrolls evenafter retirement. The move will help the cash-strapped companysave Rs.6 crore annually. The move comes at the advice of aviationministry, which has also asked Air ports Authority of India (AAI)and other departments to carry a similar exercise. According to aministry official, even in AAI, a few people have been asked to leave.

“For AI, which is under debt restructuring process, it is necessarythat the company takes every step to reduce its cost. These are manymore people whose employment contracts are being extended evenafter retirement for various reasons other than merit,” the officialsaid. The carrier has indentified 95 more such people who may facesimilar consequences. “We are in the process of reviewing theirperformance and role in the company. Depending on that, we’ll takea call on whose services should continue,” an AI official said.Though the number of such people are too small for a company witharound 30,000 employees and an annual bill of over Rs.3,000 crore,the cleaning up exercise is significant as lowering operational costis one of the main criteria that the carrier needs to fulfill to availfinancial support from the government. The carrier is also goingthrough a wage restructuring process, for which the governmenthas appointed a committee. In one of its recommendations to bringdown the wage bill, the committee has suggested that the salaries ofaround 2,200 pilots in AI should be brought down at par with theircounterparts in the private airlines in the country. This, ifimplemented would lead to a reduction of up to 30% savings frompilots’ salaries.

“Bringing AI pilots’ salaries at par with private carriers wouldnot really help much in saving as the overall wage restructuring isgoing to be cost neutral. But, it would certainly make a difference inlong run,” said the aviation ministry official. The governmentrecently approved the debt restructuring plan of the nationalcarrier under which the airline would be allowed to raise Rs.7,400crore via bonds, backed by a sovereign guarantee. The carrier, atpresent, has a total debt of Parul Rs.43,777 crore.

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The Employees' Provident FundOrganisation (EPFO) has found it has48.5 million subscribers whose accountsdo not square up. The numbers are morethan the total number of subscribers-47.2 million, according to its last annualaccount-to India's largest government-funded pension company.

The cross-check was done by theFinance and Investment Committee ofthe EPFO, which reports to the CentralBoard of Trustees of the organisation,in a background paper.

The check was at the prompting of thefinance ministry. The ministry hadnoticed that accounts of the contributorsto the EPFO have not been reconciled forquite a few years. As a result, it wasdiscovered that the total number ofaccounts in the organisation made up ofprivate sector employees' contributionhad risen to 158.3 million as on April 1,including dormant accounts. Of these,the EPFO has been able to clear only109.7 million accounts till November 22,leaving a backlog of 48.5 millionaccounts. Basically, the organisationdoes not know how much each of thesesubscribers have paid into theiraccounts over the years.

The total sum parked in the accountsis Rs 10,128.51 crore. The EPFO classifiesthem as an "interest suspense account"and will use the funds to set an interestrate for the year. This is far more than acorporate governance issue, saidKaushik Datta, director of TARI, a Delhi-based think tank on the sector. "This is afundamental problem that affects theentire business of the organisation andneeds to be looked into."

Despite this gross violation ofcorporate governance standards, theboard of EPFO is not planning anyaction against any officials. Based on thesuspense account, the investmentCommittee has recommended an 8.25%interest rate for subscribers for 2011-12.In 2010-11, the EPFO had credited a 9.5%interest rate for its 47.2 millionsubscribers.

PF unreconciledA/Cs overshoot

total subscribers

Minimum Wages to be Linked to Pricesof Essential Items

The government will take up a 55 year-oldproposal to link minimum wages to pricesof food, clothing, fuel and housing. TheIndian Labour Conference, a meeting of thegovernment, employers and employee, hadin 1957 suggested setting a wage floor basedon a minimum food requirement of 2,700calories per adult, clothing requirement of72 yards per annum per family; rentcorresponding to the government’sindustrial housing scheme andexpenditure on fuel, lighting andmiscellaneous items. “It is good that thegovernment is thinking of linkingminimum wages with consumerexpenditure as such remuneration is

hugely artificial and not based on empiricalevidence available,” said Michael Dias,secretary of the Employers’ Association.D.L. Sachdev, secretary general, All IndiaTrade Unions’ Congress, said: “Theserecommendations make a lot of sense andthe government should certainly fix theminimum wage as per expenditurerequirement of families.” The minimumwages Act of 1948, does not lay down anynorms for fixing minimum wages of makethe national floor rate statutory, which iswhy wages differ substantially betweenstates. Minimum wages vary across states,from Rs. 62 in Andhra to Rs. 230 in Delhi.

Britannia has no place for poorperformers: axed 42

Biscuit marker Britannia Industriessacked 42 executives in a single daysignaling that FMCG companies, faced withsoaring costs and hyper-competition, werecracking the whip on under performers. Thedevelopment took place and came quiteabruptly, said some of the employees whohave been sacked. Britannia said itsharpened performance parameters for thestaff this year differentiating them into"great, good and gone" and rewarded the topperformers with bonuses as high as 150%,something not very common in the industry.Sources said Britannia decided to let goexecutives who had under performed in twoout of the last three yeas. All 42 employees,including some managerial staff, who havebeen asked to leave will be given theirsalaries for the next two months, but havebeen asked to go on leave immediately. Theseemployees were from the manufacturing,sales, packaging and quality control teams,said a person aware of the development.

While the percentage of employees whohave been asked to leave is about 3% of thecompany's total strength of around 1,400, thehaste with which the move was executedshocked many staffers. But the companysaid the affected employees were put onnotice for some months now. "This is pat ofthe ongoing performance managementprocess, which differentiates the great, goodand under-performers and has nothing to do

with any other factor. Each year, under-performers (usually 20 to 30) are put on aperformance improvement plan andprogress is consistently and carefullymonitored. In those cases, where the level ofperformance continues to be below theacceptable benchmark and there is nonoticeable improvement, employees aretransitioned. There is no surprise for theemployees as it is discussed in advance aspart of the performance review and happensevery year," said the company spokesperson.Some of the sacked employees said thedevelopment came as a surprise. "A seniormanagement team accompanied by theHuman Resource team had come down toKolkata and asked us to put in ourresignations. They simply said that thisdecision was taken in light of ourperformance,' said an employee from thecompany's Kolkata unit. This employee hasbeen with the foods major for over twodecades and was given a salary hike lastyear. "I didn't get a salary hike in 2009 and2011. The HR asked me to resign saying thatmy performance was not up to the mark. Themanagement has asked officers who haven'tgot two salary hikes in the last 3 years toresign for under performance," said aproduction officer, who did not want to benamed. A retired Britannia employee, onconditions of anonymity, added: 'This is veryunlike the way Britannia functions."