ethics in hr(bev)

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ANUPAM CHAUHAN UMA BHARTI MANJU BAGHEL

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Page 1: Ethics in hr(bev)

ANUPAM CHAUHANUMA BHARTIMANJU BAGHEL

Page 2: Ethics in hr(bev)

HR Ethics

⌂ No well-established mandatory professional standards

⌂ Ethics and business knowledge as important as HR domain expertise

⌂ Each situation requires a judgment call

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Analyzing HR Dilemmas

⌂ Right v. Wrong

“No one will know if I do not pay taxes on this under-the-table income, so I can save myself quite a bit of money.”

⌂ Right v. Right

Selecting the best option

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Examples of Right v. Right Dilemmas

⌂ It’s right to tell the truth, but it is also right to be kind and considerate of peoples’ feelings and emotions.

⌂ It’s right to apply rules and procedures equally, without favoritism, but it is also right to give special treatment to hard-working, dependable, and productive employees.

Page 5: Ethics in hr(bev)

Examples of Right v. Right Dilemmas (cont’d)

⌂ It’s right to spend more time adding more quality to your work but it is also right to meet deadlines and avoid “diminishing returns” on your efforts.

⌂ It’s right to be concerned about short-term results, but it is also right to focus on long-term growth and stability.

Page 6: Ethics in hr(bev)

Guidelines for Fostering an Ethical Culture

⌂ Have a well developed policy and procedures manual

⌂ Enforce policies

⌂ Reward compliance

⌂ Recruit ethical employees

⌂ Create a division to oversee ethics

Page 7: Ethics in hr(bev)

Guidelines for Fostering an Ethical Culture

⌂ Have a well developed policy and procedures manual

⌂ Enforce policies

⌂ Reward compliance

⌂ Recruit ethical employees

⌂ Create a division to oversee ethics

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Ethical culture in worklife

⌂ Honest communication⌂ Fair treatment⌂ Special consideration⌂ Fair competition⌂ Responsibility to organisation⌂ Corporate social responsibility⌂ Respect for law

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In Past

⌂ In 50’s – Employees were recruited not to question ‘WHY’ but only ‘To do’.

⌂ In 60’s – Terms like manpower, staff and personnel came to used.

⌂ In Late 70’s – People realized that beyond a point, productivity depended on people.

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Evolution Of HR in India

Period Development status Emphasis Role

1920s-1930s Beginning Welfare clerical stroke disciplinary ,dismissal of workers]

1940s-1960s Struggling for Recognition Introduction to HR techniques and IR

Administrative[leave, bonus, retirement etc]

1970s-1980s Strong industrial relations and disputes,Regulatory

Managerial[housing, medical leave etc]

1990s Promising Human values, productivity through people

Executive[formulating policies, T&D programs, MDPs etc] and managerial role

Page 12: Ethics in hr(bev)

Starting of hrm in india

⌂ The world’s first management book, titled ‘Arlhashastra’, written three millennium before Christ, codified many aspects of human resource practices in Ancient India.

⌂ John Patterson, the president of the company, formed a personnel department to manage the griefs of workers after a bitter union strike in 1901.

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Continued…

⌂ The first Factories Act was adopted in 1881. The Factory Commission was appointed in 1885. The Factories Act, 1948 (Amended On 1987).

⌂ In 1929 – Royal commission of labour in India.

⌂ In 1931 – J.H. Whitely recommended the abolition of ‘JOBBER SYSTEM’ and the appointment of labour officers in industrial enterprises.

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Continued…

The scope of the function of labour officer was widened during the second world war such facilities as housing, medical etc.

Labour officer <=> Welfare Officer Under the Industrial Disputes Act, 1946.

Formulating policies on human resource planning, recruitment and selection , training and development etc..

Welfare Officer <=> Personnel officer Under section 49 of factories Act, 1948.

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Two professional bodies were found In 1948 - Indian Institute Of Personal Management (IIPM) at

Kolkata .

In 1950 - The National Institute Of Labour Management (NILM) at Mumbai.

In 1980 – These two professional bodies merged together and formed ‘National Institute Of Personnel Management’

(NIPM) headquartered at Kolkata.

In 1990 – Milestone was achieved by renaming of American ‘Society For Personnel Administration’ (ASPA)

as the ‘Society For Human Resource Management’ (SHRM).

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LIST OF AMENDING ACTS AND ADAPTATION ORDERS

⌂ The Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948.

⌂ The Adaptation of Laws Order, 1950.

⌂ The Part B States (Laws) Act, 1951 (3 of 1951).

⌂ The Industrial Disputes (Amendment and Miscellaneous Provisions) Act, 1956 (36 of 1956).

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ContinueD… The Industrial Employment (Standing Orders) Amendment

Act, 1961 (16 of 1961) .

The Industrial Employment (Standing Orders) Amendment Act, 1963 (39 of 1963).

The Central Labour Laws (Extension to Jammu and

Kashmir) Act, 1970 (51 of 1970).

The Industrial Employment (Standing Orders) Amendment Act, 1982 (18 of 1982).

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HR PAST AND PRESENT:0

4/0

9/2

3

18

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© 2005 Prentice Hall Inc. All rights reserved.

14–20

HR Ethics Activities⌂ Staffing and selection

⌂ Fostering the perception of fairness in the processes of recruitment and hiring of people.

⌂ Formal procedures⌂ Interpersonal treatment⌂ Providing explanation

⌂ Training⌂ How to recognize ethical dilemmas.

⌂ How to use ethical frameworks (such as codes of conduct) to resolve problems.

⌂ How to use HR functions (such as interviews and disciplinary practices) in ethical ways.

Page 21: Ethics in hr(bev)

Staffing and selection

⌂ Know your employment law

⌂ Follow the ethical recruitment guidelines

⌂ Use pre-employment information services

⌂ Use reference checking forms

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Training Practices⌂ Training (future orientation):

• Education is extremely valued, and training is an extension of it.

• Entry point training programs (3 to12 months of orientation).

• Ongoing training programs. • Development programs (promotions involve training).• In-house training centers are a common feature in Indian

organizations.• Deductive learning style in training: Known as “top-down

approach” where learning principles start with general concepts and move toward specific application.

©SHRM 2008 22

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Training

⌂ To recognize ethical issues

⌂ Use of ethical guidelines to resolve problems

⌂ Targets and methods of ethical training

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© 2005 Prentice Hall Inc. All rights reserved.

14–24

HR Ethics Activities (cont’d)

⌂ Performance appraisal⌂ Appraisals that make it clear the company adheres to high ethical

standards by measuring and rewarding employees who follow those standards.

⌂ Reward and disciplinary systems⌂ The organization swiftly and harshly punishes unethical conduct.

⌂ Workplace aggression and violence⌂ Taking care that HR actions do not foster perceptions of inequities

that translate into dysfunctional behaviors by employees.

Page 25: Ethics in hr(bev)

Performance Appraisal

⌂ Cultural dimensions of collectivism and power distance make objective appraisals a challenge.

Supervisors and subordinates develop close relationships. Organizational loyalty is as important as work performance. Employee promotions are frequently based on seniority.

⌂ Annual performance appraisals.⌂ Supervisors provide performance ratings that are frequently inflated due to

personal relationships. ⌂ Employment at will does not exist in India. Employment termination carries

a social stigma.

©SHRM 2008 25

Page 26: Ethics in hr(bev)

Compensation and Benefits⌂ In addition to a base salary, compensation includes:

⌂ House rent allowance (HRA*).⌂ Medical allowance.⌂ Dearness allowance (DA*).⌂ Leave travel allowance (LTA*).

⌂ Several categories of leave (vacation) exist:⌂ Sick leave: 7 days (medical certificate required).⌂ Casual leave: 7 days (for personal and family

emergencies, requires prior permission of boss). Employees can take maximum 2 days at a time

⌂ Annual leave: 3 weeks (after one year of employment).⌂ Federal holidays: About 20 days.

©SHRM 2008 26

Page 27: Ethics in hr(bev)

Compensation and Benefits

⌂ Retirement age:

⌂ 55-60 years (private sector);.

⌂ 60 years (public sector).

⌂ Retirement Benefits: Employees receive two lump-sum payments when they retire:

⌂ Provident Fund (similar to 401(k))• Typical contributions: 10-12 percent of base salary (employer and

employee).• Payable on retirement, voluntary separation, death.

⌂ Gratuity• Only employer contributes (15 days salary per year of service).• Tax-exempt for employees.• Payable on retirement, voluntary separation, death.

©SHRM 2008 27

Page 28: Ethics in hr(bev)

Compensation and Benefits⌂ Organizations are seen as an extension of the family.

Provide both short-term and long-term personal loans.

Personal loans for housing, car, home maintenance and family emergencies.

Loan amounts vary by position and level in organization.

All employees after their probation (confirmation) period are eligible.

⌂ Many medium and large organizations have cafeterias with subsidized lunch facilities.

©SHRM 2008 28

Page 29: Ethics in hr(bev)

Compensation and Benefits⌂ Executives receive special benefits to reflect status such as:

• Club memberships.• Overseas training.• Company housing.• Company cars.

⌂ Provided with drivers.⌂ International cars.⌂ Operational and maintenance costs.

• Phone bill reimbursements.⌂ Organizations provide business and cell phones.

©SHRM 2008 29

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Equal opportunity laws

⌂ Age discrimination

⌂ Disability

⌂ Ethnic/National origin, colour, race, religion, gender

⌂ Fair labour standards

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Reward and disciplinary systems

⌂ Performance appraisal

⌂ Appeals and grievance procedure

⌂ Discipline system

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Ethical discipline

⌂ People not employees

⌂ Job description is clear

⌂ ”What to do ” attitude compared to ”Don’t do this” attitude

⌂ Top managers example

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Effective dismissal

⌂ Factors⌂Legal and valid reasons for dismissal⌂Explain the reasons⌂Be firm with your decision

⌂ Process⌂ Informal action⌂Disciplinary meeting⌂First written warning⌂Second written warning

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Termination interview

⌂ Be straightforward

⌂ Explain the purpose of the interview

⌂ Benefits after losing the job

⌂ Document the exit interview

⌂ Be prepared for questions

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 A salary and benefit audit identifies a grading error which advantages a high performing employee, but the manager instructs that the error be concealed

A senior manager's serious disciplinary offence is hushed up, while for the same misconduct, ER practitioners have instructions to institute an immediate disciplinary enquiry in the case of junior managers and line supervisors

A line manager dismisses an employee with a known terminal illness, or a disability, which causes the family to lose the death benefit, and leave with nothing, even though the employee could have been retained until demise;

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In a labour dispute in the High Court , the ER Manager or legal representative deliberately does not call the HR practitioner as a key witness, and crucial evidence is not given and an unfair outcome happens

In the recruitment process, a Safety Manager places pressure on an HR practitioner to disclose confidential health status information, which is then used to justify not hiring the person

The HR executive places insurance business with a specific insurer or broker in order to receive a kickback or commission for doing so

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The employer's Employment Equity Plan as submitted to the Department of Labour is deliberately not being followed;

An contracted-in medical practitioner decides to side with the IR Manager in a disciplinary enquiry into an allegation of misconduct for intoxication at work, to maintain good relations and keep their contract with the employer

A Safety Manager ignores a medical practitioner's Health Risk Report, or fails to respond within a reasonable time (or to respond at all) to the key safety and health compliance recommendations by the doctor in it

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An HR Manager pressurises the medical practitioner to declare an employee unsafe, to allow the employee to be removed from their post or to dismiss or retrench them;

A line manager or senior practitioner appoints his or her relative or business associate in contravention of the established recruitment procedure

An employed practitioner decides not to confront the Manager they report to, because the annual performance review cycle is coming up;

A line manager refuses to establish posts which can be used for return to work from benefits or sick leave, or to provide 'light duty';

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Human Costs

⌂ Unethical business environments can:⌂ Demotivate individuals⌂ Make good employees leave the company⌂ Attract unethical employees⌂ Lead to the lack of trust by the employees for

the company

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Page 42: Ethics in hr(bev)

What Is Trade Union?

⌂ A trade union or labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages, hours, and working conditions.

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Role of trade unions

⌂ To negotiate better wages with the employers⌂ Basic pay, Overtime payments, pensions

⌂ To negotiate the number of working hours⌂ To ask for suitable holidays

⌂ Maternity & Paternity rights

⌂ To demand for better working conditions⌂ Health rights, Safety rights

⌂ Unions also help with educating & training of workers to improve skills

Page 44: Ethics in hr(bev)

Role of trade unions

⌂ Unions sometimes participate in measures to improve product demand.

⌂ Unions sometimes provide workers benefits like pay during strikes, sickness & unemployment.

⌂ Some Unions are also known to run co-operative societies to offer benefits like loans at lower interest rates.

⌂ Unions work with the governments to introduce legislations to benefit workers – example fixing a national minimum wage.

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Social responsibilities of trade unions include:

⌂ promoting and maintaining national integration by reducing the number of industrial disputes

⌂ incorporating a sense of corporate social responsibility in workers

⌂ achieving industrial peace

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Trade Unions & Wage Claims

⌂ Trade Unions demand wage increase on account of ⌂Hard work & increased productivity

⌂Increased profits

⌂Comparing wages of similar workers – Comparability argument

⌂Increased cost of living

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INDUSTRIAL ACTION

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Some Images Of Trade Unions

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Strikes

⌂ A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. When workers collectively cease to work in a particular industry, they are said to be on strike.

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Causes of strikes

Strikes can occur because of the following reasons:⌂ Dissatisfaction with company policy⌂ Salary and incentive problems⌂ Increment not up to the mark ⌂ Wrongful discharge or dismissal of workmen⌂ Withdrawal of any concession or privilege⌂ Hours of work and rest intervals

⌂ Leaves with wages and holidays⌂ Bonus, profit sharing, Provident fund and gratuity ⌂ Retrenchment of workmen and closure of establishment ⌂ Dispute connected with minimum wages

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Legal Aspects Of HRM

⌂ Discrimination⌂ When someone is denied a job or position for non job related reasons

⌂ Equal Employment Opportunity⌂ The right to employment and advancement without regard to race,

religion, sex, color or national origin

⌂ Affirmative Action⌂ An effort to give preference in employment to women or other minorities

⌂ Comparable Worth⌂ Persons performing jobs of similar worth should receive comparable pay

⌂ Bona-fide Occupational Qualifications⌂ Employment criteria justified by capacity to perform a job

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Legal Aspects Of HRM

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© 2005 Prentice Hall Inc. All rights reserved.

14–53

UNETHICAL PRACTICES

⌂ Worker Adjustment and Retraining Notification Act (1989)

⌂ Employment losses covered by the law:

⌂ Terminations other than discharges for cause, voluntary departures, or retirement

⌂ Layoffs exceeding six months

⌂ Reductions of more than 50% in employee’s work hours during each month of any six-month period.

⌂ Penalty for failing to give notice

⌂ One day’s pay and benefits to each employee for each day’s notice that should have been given, up to 60 days.

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© 2005 Prentice Hall Inc. All rights reserved.

14–54

Layoffs

⌂ Layoff are not terminations.

⌂ Temporary layoffs occur when:

⌂ There is no work available for employees.

⌂ Management expects the no-work situation to be temporary and probably short term.

⌂ Management intends to recall the employees when work is again available.

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© 2005 Prentice Hall Inc. All rights reserved.

14–55

Bumping/Layoff Procedures

⌂ Seniority is usually the ultimate determinant of who will work.

⌂ Seniority can give way to merit or ability, but usually only when no senior employee is qualified for a particular job.

⌂ Seniority is usually based on the date the employee joined the organization, not the date he or she took a particular job.

⌂ Companywide seniority allows an employee in one job to bump or displace an employee in another job, provided the more senior person can do the job without further training.

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© 2005 Prentice Hall Inc. All rights reserved.

14–56

Alternatives to Layoffs

⌂ Voluntarily reducing employees’ pay to keep everyone working.

⌂ Concentrating employees’ vacations during slow periods.

⌂ Taking voluntary time off to reduce the employer’s payroll.

⌂ Taking a “rings of defense approach” by hiring temporary workers that can be let go early.

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FACTORIES ACT, 1948.

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INTRODUCTION

In India the first Factories Act was passed in 1881. This Act

was basically designed to protect children and to provide few

measures for health and safety of the workers. This law was

applicable to only those factories, which employed 100 or

more workers. In 1891 another factories Act was passed

which extended to the factories employing 50 or more

workers.

Page 59: Ethics in hr(bev)

Definition of a Factory:-

“Factory” is defined in Section 2(m) of the Act. It means any premises including the precincts thereof-

i. Whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on; or

ii. Whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on;

But does not include a mine subject to the operation of the Mines Act,1952 or a mobile unit belonging to the Armed forces of the Union, a railway running shed or a hotel, restaurant or eating place.

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© 2005 Prentice Hall Inc. All rights reserved.

14–60

Employee Privacy

⌂ Employee privacy violations upheld by courts:⌂ Intrusion (locker room and bathroom surveillance)⌂ Publication of private matters⌂ Disclosure of medical records⌂ Appropriation of an employee’s name or likeness

⌂ Actions triggering privacy violations:⌂ Background checks⌂ Monitoring off-duty conduct and lifestyle⌂ Workplace searches⌂ Monitoring of workplace

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© 2005 Prentice Hall Inc. All rights reserved.

14–61

Managing Dismissals

⌂ Dismissal⌂ Involuntary termination of an employee’s employment with the

firm.

⌂ Terminate-at-will rule⌂ Without a contract, the employee can resign for any reason, at

will, and the employer can similarly dismiss the employee for any reason (or no reason), at will.

⌂ Limitations on “terminate-at-will”⌂ Violation of public⌂ Implied contract⌂ Good faith

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Employer to ensure health of workers pertaining to

•  Cleanliness Disposal of wastes and effluents -Sec 12•  Ventilation and temperature dust and fume - Sec 13•  Overcrowding Artificial humidification Lighting – Sec. 14•  Drinking water Spittoons. - Sec. 18

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Safety Measures 

•   Fencing of machinery – Sec. 21•    Work on near machinery in motion. – Sec 22• Employment prohibition of young persons on dangerous machines. – Sec 23•    Striking gear and devices for cutting off power. – Sec 24

• Self-acting machines.- Sec 25·    Casing of new machinery.- Sec 26·    Prohibition of employment of women and children near cotton- openers.- Sec 27

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Welfare Measures

• Washing facilities – Sec 42

• Facilities for storing and drying clothing – Sec 43

• Facilities for sitting – Sec 44

• First-aid appliances – one first aid box not less than one for

every 150 workers– Sec 45

• Canteens when there are 250 or more workers. – Sec 46

• Shelters, rest rooms and lunch rooms when there are 150

or more workers. – Sec 47

• Crèches when there are 30 or more women workers. – Sec

48

• Welfare office when there are 500 or more workers. – Sec

49

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Working Hours, Spread Over & Overtime of Adults

• Weekly hours not more than 48 - Sec: 51

• Daily hours, not more than 9 hours. - Sec: 54

• Intervals for rest at least ½ hour on working for 5

hours. - Sec: 55

• Spread over not more than 10½ hours. - Sec: 56

• Overlapping shifts prohibited. - Sec: 58

• Extra wages for overtime double than normal rate of

wages - Sec:59

• Restrictions on employment of women before 6AM and

beyond 7 PM. - Sec: 60

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Annual Leave with Wages

• A worker having worked for 240 days @ one day for every

20 days and for a child one day for working of 15 days.

• Accumulation of leave for 30 days.

Sec. 79

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OFFENCE PENALTIES

   For contravention of the Provisions of the Act or Rules

   Imprisonment upto 2 years or fine upto Rs.1,00,000 or both

   On Continuation of contravention    Rs.1000 per day

   On contravention of Chapter IV pertaining to safety or dangerous operations.

   Not less than Rs.25000 in case of death.   Not less than Rs.5000 in case of serious injuries.

   Subsequent contravention of some provisions

   Imprisonment upto 3 years or fine not less than Rs.10, 000 which may extend to Rs.2, 00,000.

   Obstructing Inspectors    Imprisonment upto 6 months or fine upto Rs.10, 000 or both.

   Wrongful disclosing result pertaining to results of analysis.

   Imprisonment upto 6 months or fine upto Rs.10, 000 or both.

   For contravention of the provisions of Sec.41B, 41C and 41H pertaining to compulsory disclosure of information by occupier, specific responsibility of occupier or right of workers to work imminent danger.

   Imprisonment upto 7 years with fine upto Rs.2, 00,000 and on continuation fine @ Rs.5, 000 per day.  Imprisonment of 10 years when contravention continues for one year.

Sec.92 to 106

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Jet airways layoff- what kind of HRM?

Coping with Turbulent Times in the Indian Aviation Industry

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THE CASE

⌂ The case is about the retrenchment drama that unfolded in one of India’s leading aviation companies, Jet Airways (India) Limited in Oct 2008.

⌂ More than thousand employees were laid off.

⌂ It was a part of major Cost-cutting exercise to tackle Global slowdown and price hike of Aviation fuel.

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The retrenchment drama unfolds…..

⌂ Oct 16, 2008, Jet announced that it would lay off nearly 1,100 of its staffs to streamline operation.

⌂ A day after it had already laid off around 800 of its cabin crew members.

⌂ Simultaneously announced second phase of lay-off of 1100 employees, mainly from departments like flight attendant, cockpit crew etc.

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Retrenchment drama unfolds……

⌂ Amidst great furor and opposition by various organizations and political parties, Naresh Goyal , chairman of Jet, reinstated the employees a day later the great emotional drama.

⌂ November 2008, Jet decided on a 20% cut in the salaries of its pilots, engineers, and some other staffs.

Page 72: Ethics in hr(bev)

Some salient issues……

⌂ Employees were FIRED with no PRIOR NOTICE

⌂ The entire force of unconfirmed staff was being laid off on a 30-day compensation package

⌂ Company took action only against lower staffs.

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Ethical issues……

Some most crucial questions unanswered….Where would those 1900 employees go? Why took action only against lower grade

staffs? Senior management was very less affected. What would be the future of those students

currently taking courses in cabin crew, captain etc?

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Ethical issues…….

Why did the Jet CEO enter the competitive market, instead of playing down after foreseeing risks?

Some quotes made by higher officials….. "A total of 1,900 people are being served separation notice. 800 have already

been served notice. In the next few days the others will also be served notice. It is an attempt to save the jobs of remaining 11,100 employees,“

Saroj Datta (Exe Director) “It is a difficult decision but we had to take it,” Wolfgang Schaeur (CEO)

It throws a serious question towards the accountability of an organization to its employees……….

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Some observations…..

The very existence of any company is because of its employees.

Company keeps on focusing on customer satisfaction when its own people are so highly dissatisfied.

Employees are more than just-a-resource.

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Protest against management……

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Points to ponder No company would know of a risk over night, its

built over a period and there should not be any drastic decision which may endanger its employees.

More accountability from top management. The role of HR executive is important to

ascertain that people’s interests are not left aside in the race for profits

The HR executive to ensure no discrimination in pay cut and lay off.

Before reaching to decision, make environment conducive to acceptance of decision.

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General aspects

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Questions for discussion

Q.Can there should be separate canteen for top level management and lower level management?

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Q.Should IIM charge high fee than other B-School?

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Before joining any MBA Course) 

What  - What type of institutes you can get admission? 

Why  - Why you want to do MBA – for  getting good job , starting your own company as an entrepreneur  or getting one more degree?

 

Where -  Where can you afford to do MBA – Foreign Country, any reputed institute  in India or any institute with low budget ?

 

When  -  When you want to do MBA – Just after graduation, after getting 4 -5 years experience, or  along with your job?

 

How  - How will you pay back your fees and ROI for the same? 

Which  -  Which  specialization attracts you or can get job for you?

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All reputed B Schools of North America, Europe and Oceania  are very costly – Fees & Stay costs varying from Rs 30 Lakhs to 60 Lakhs  (all inclusive)

The popular institutes like ISB (Hyderabad),  IIMs etc normally charge between Rs 7 Lakhs  to Rs 20 Lakhs  (New IIMs and management institutes of IITs charge less).

FMS Delhi  charges very less fees for their high quality education, but most of other institutes approved or run by Govt. Universities charging very low fees are other type  of FMS (Factory for Management Studies!) giving very low quality education, without proper faculty, facility and infrastructure.

Any private institute charging less than Rs 3 or 4 Lakhs fees may   not be in position to impart  high standard education.

But private B Schools charging high fees and comparing  them with IIMs, also may not be providing good quality  education . These could be other type of IIM – ‘Interested In Money!’ only.

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Categorization of MBA colleges in India and their fee structureThe business schools in India are categorized into three. They are Class-A, Class-B and Class-C.

The B-Schools coming under Class-A are the most reputed institutes in the country offering MBA courses. One of the examples for the Class-A institutions is the Indian Institute of Management. There are 10 IIM’s that are spread all over the country. The admission in these institutes is given only for the outstanding students. Thus the fee structure for the programmes in these institutes will also be higher. To pursue the MBA graduation from IIM, one has to pay about Rs. 12 lakhs. The present scenario states that IIM is going to raise the fee structure for the MBA programmes. In such situation students have to spend around Rs.15 lakhs in order to pursue degree from these institutes.

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The Class-B institutes are considered as the second top option chosen by the students who fail to land up in IIMs. This class includes the B-Schools like XLRI, Narsee Monjee, FMS Delhi and many more. For pursuing MBA in these institutions students have to spend around Rs.5 to 8 lakhs. It will vary according to the institute.

The Class-C institutions are the last choice favored by the students for pursuing MBA. These least choice institutes charges around Rs.2 to 6 lakhs for the two year programme.The admission to all these institutions is made based on the score obtained by the candidates in the concerned entrance examinations organized by the universities. Some of the entrance tests for MBA in India are MAT, CAT, XAT, etc.Besides all, the reputed business institutions in abroad charges around Rs.20 to 30 lakhs and this is considered as the standard fees for the MBA courses offered there.

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IIM is an option but not the only option 

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Thank You.