-dec 13 - business manager

Leading to MakeDifference

www.businessmanager.in

14-34

leadership& HR

Thought

Dr. T. V. Rao Analytics- TheMissingLink inLeadership

Dr. G. Shermon

CuttingEDGE orjust aWEDGE

Aparna SharmaGoingbeyondyour ownstory

Dr. Tanvi Gautam Paradoxofthoughtleadership in HR

Prasad Kurian

De-constructing'ThoughtLeadership'

Suvro Raychaudhuri

Thoughtleadershipand beyond

Tina Roshini Mathew HRLeadershipfor aSustainableFuture

Nina E. Woodard

Buildhumancapitalpotential....not personalbrandsDr. Anil K.Khandelwal

Conductingdiversity audit

& survey

BY SIMRAN OBEROI

40

Diversity & Inclusion

Managing talent with the Human Touch

What remains same and common for all its employees is the "HumanTouch" rendered by different organizations through its well structuredphases of engagement and grooming which gives Talent Management awhole new meaning. An article by Ritu Mehrotra 07

ResilientLeadershipFor leaders, resilience isa core attribute whichhelps in their personalleadership journey. It isthe ability to seesituations as theyemerge and deal withthem with courage,positivity andcreativity. An article byAnnu Wakhlu 09 10

PeopleManagement andLeadership To be an effectivemanager, it is imperativeto be a good leader. Onecannot exist without theother.An article by Swati Wagh

BringingChange in theDriver's LifeTata Steel's uniqueprogramme in DrivingTraining has turnedtruck drivers intoresponsible andprofessional logisticpersonnel. An articleby Ashish KumarGupta35 37

Revisiting‘determination’in success &failureSuccess is a favorable resultin line with determination.If determination is to berewarded, then movingtoward an objective evenfailure after failure needsbigger reward than asuccess deserves in a samerow. An article by Kasi SP

'B-Players'- An Assetto the Organization

While it is precedent for organizations tofocus on their top performers as they

bring in the moolah and driveorganization results, however, it is all themore important to focus on B-players for

their skill enhancement and careerdevelopment. An article by

Arun Singh & Shweta Rawat12Ability toinfluenceothers...

- Dr. PVR Murthy

13

Questions by readers on variety ofproblems they face at work andanswered by Anil Kaushik ChiefEditor. Look at it. These may also be ofsome help to you.

Latest from theCourtsLatest verdicts from different High Courts and SupremeCourt effecting employer employee relations.4641

Government Notifications 43

Abusing Power & Authority

Business Manager December 201303

Chief Editor ANIL KAUSHIK

Associate Editor Anjana Anil

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

Hon’y Research LeadIndranil [email protected]

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

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December2013Vol. 16No. 6

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Employers should take unfairlabour practices seriously

Adarsh Gupta, owner of Liberty Enterprises, asubsidiary of footwear maker Liberty Shoes, has beensentenced to six months' imprisonment by the chief judicial magistrate, Karnal, for committing to unfairlabour practices under the Industrial Disputes Act.An article by H.L. Kumar55

58

60Case of commendable

relationship

Supreme Court onDishonour of Cheques &Negotiable InstrumentsAuthors : Surendra Malik & Sudeep Malik

Commentary onThe Arbitration And Conciliation ActAuthor : Justice S.B. Malik

Law Relating toDisciplinary Proceedings in IndustriesAuthor : H.L. Kumar

NIPM South RegionalConference

Skills crunch rise employee costs in Hotels

IT cos exempted from StandingOrders in Karnataka, Unionsoppose

Ashok Leyland offers VRS tosenior officials

Hero MotoCorp inducts RajatBhargava as Head-Strategy

Despite job cuts in others,FMCG plans for hiring

TCS targets to hire S K in 2014

Increased fake CVs roam in ITsector

Bangalore HR Summit 2013 onFuturistic HR Practices

Dr. Uday Kumar Haldar

By Mihir Gosalia

61


Leadership : It is State,not Status Most of us achievethe status of aleader, but not thestate. State is totallydifferent fromstatus. An articleby Dr. RajveerChoudhary 39

GenuineI must compliment BM for bringing out a genuinecover feature on Industrial Relations havingcontributions in the magazine par excellence. Ihave never come across of such a collector’s issueon Industrial Relations. Various shades ofIndustrial Relations with practical live wire casestudies of Anil Malik and Rakesh Srivastav can bean eye opner for all those who hesitate to accept thereality of employee relations. Be it Debi Saini,Vijay Deshpande, Vivek Patwardhan, D.V.Nandakumar, Surendranath, E.I. Ravindran, RajenMehrotra or Michael Dias, all have shared theirbest of experience sufficient to take out immeselearning for entire HR community.

-B.M. Shah

RemarkableRef. to editorial note. We cannot permit theinvestors to show disregard to the existing laws ofthe country as this only breeds discontent amongthe workers and was one of the main reasons forthe IR tragedies in the South India. I do not agreefor keeping workforce as casuals/ temporaries tothe extent as large as 70% as it exists as admitted byyou in the country. I also find that these IR problemsare prolonged beyond imagination by theemployers and as a result the IR managers are sopressed that they venture to take large scaleterminations/ dismissals. Large scale dismissals/terminations, therefore, have its own risks andought to be avoided to evade tragic ends. The fourmeasures which are suggested by you are very vitaland pivtol in building the good IR in the industry.Ifthese are followed meticulously I am sure they willdefinitely make their mark. Mr. Kaushik, youdeserves a word of praise for doing this service tothe up-coming IR aspirants in the Industrial sectorand I am sure you will continue to make yourremarkable contributions for the benefit ofbudding aspirants.

-Surrainder Bakshi

Wide gapIn view of present industrial climate everyindustry should have contractual work force as wellas regular workforce. Now a days the workforce isalso well qualified, having good family background, and well aware of surroundingatmosphere, so, if management adopts the old IRtactics; prevalent during 1990s it will not be good forboth management and workforce includingindustry as the main aim of promoters is to getregular maximum production . If we analyseprevious serious IR cases, we may find the rootcauses as lack of frequent two way communication,

not attending to grievances, treating workforce aspersonal enemy rather than adopting professionaltactics, not educating shop floor executives to treatworkforce as human being and maintain cordialrelations; no matter how much production pressurethey have from the management. Managementshould also look into wage parity between regularworkforce and contractual workforce.

-Ravindra Kumar Sharma

Well timedThe subject by Mr.Anil kaushik is well timed.Theindustry is experiencing some calm after fewstormy incidents in industrial environment duringthe past two years.In my view, the following factorswill play a key role in transforming the face ofindustrial relations in India. The managementshould build such a culture in the organisation thatinculcates sensitivity, responsible behavior in themanagers and supervisors who deal with shop floorworkmen. If the management keeps the channels ofcommunication open with workmen, it will enableit to know the pulse of them and to detect anydiscontent that can spell any danger to the peace inthe organisation so that the management can takea proactive action to douse burning cinders beforethey become a bonfire of a conflict. Employeeengagement initiatives generates a feeling ofownership in them.In many organisations, therewill be a grievance redressal mechanism for namesake.But with a right culture inculcatingsensitivity to others feelings, the mangers andsupervisors will strive to expedite redressal ofgrievances and the workmen,imbibing a sense ofownership, will also exercise restraint in raising demands. The management, helped by asupportive culture will frame HR policies that willensure fair treatment to workmen and honor andrecognition for their performance and caring oftheir families.

-Saikumar B.

FinestThanks for everything. Indeed, the issue has comeup very well. It is all due to your rare commitmentto content and quality that it reflects a great value-addition for all CEOs and HR VPs. I am sure in days'to come BM would be the finest HR magazine in thecountry.

-Debi Saini

Rich contentsI am delighted to go through the rich contents ofour BM latest issue on TRANSPFORMATIONPROCESS IN IR.Compliments.

-S. P. Garg

Business Manager December 201304Readers are invited to comment on articles published in BM through email at : [email protected], [email protected]

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Anil Kaushik



Thought leadership is not mere leadership. It is something more than that. It would

not be proper to signify thought leadership only in terms of business that drivesprofits and nothing else. It is not about becoming a subject expert. it will also be notabout only developing personal brand by propagating thoughts, but creatingcutting edge by making enough moves to warrant the difference.

It is about walking ahead innovatively. It is about power of idea and thought process thatcompels the people and community to get influenced, change the way of life,motivate them to lead the quality life and do good at large not only in limitedterms of organization, business and profits but beyond that. How the idea thatleads and empower the people through business or organization and bring innerhappiness in society at large should be the point to be seen and adjudged.Thoughtleadership and leaders should be able to inspire the people and build strongrelationship through trust and credibility. When thought leadership is reduced tomaximize profits in business alone without making inclusive growth of humancapital, it will be half way journey.

Toying with an idea and putting it forth will only be just the icing on the cake. When it isconverted in to an action successfully, then the person is accepted and respectedas thought leader. I am sure people would consider Dr. Kurien of Amul as thoughtleader in larger context. Dr. TV Rao and Dr. Udai Pareek have gained the status ofthought leaders in HR in the country, whose ideas converted in to practices haveimpacted the organizations and HR people in a big way. It is intellectual capitalwhen impacts human capital becomes the thought leadership in HR.

In today's uncertain ever changing environment, organizations continue to struggle toestablish their thought leadership.To evoke you to think, accept and implement theidea, new insight or additional perspective on any subject is the essence. It is torecognize the power of seminal ideas that create order out of chaotic issues.

This edition examines thought leadership and HR with a different perspective. We gatherthe perspectives of thought leaders across domestic and foreign industry andacademia.They offer their very best thinking on the critical issue of thoughtleadership distilling their knowledge in to clear and concise articles. This is thebunch of flowers having different fragrance.

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

Happy Reading!

Walking ahead innovatively


The issue of sexual harassment atwork place or during the course ofwork is again in lime light.Thecomplaint of a law graduate internagainst a former SC judge that shewas sexually harassed by him, andof a journalist of daughterly ageagainst his editor (employer) havetwo commonalities.The nature ofboth complaints testifies theexistence of this menace at workplace arising out of power andcontrol over women by skewedgender equations in theorganizational hierarchy. Fewmonths back also a case of sexualharassment by Indian CEO againsthis junior in an IT co. was reported.He was sacked from the company.Interestingly this CEO wasallegedly involvedin sexualharassmentcase andsettled thematter outside thecourtroomearlier too tenyears before.But he wassecond timeunlucky. All theseincidentsunderline aprofound and all –pervasive disrespectof both women andlaw in the country.We can’t downplaythese disturbingincidents by presuming that suchincidents do not happen in generalduring the course of work againstwomen and are negligible. Sexualharassment at work place exists,whether we accept it or not. It isother side of the story that eithermost of the cases are not reportedby women against their seniors orcolleagues or they are suppressed.In fact women are dissuaded fromraising their voice against the act ofattacking their personal integrityand filing complaints againstseniors of the organization wherethey work thus promoting a cultureof suppression of legitimatecomplaint in order to avoid the

concerned establishment or seniorofficer / employer falling intodisrepute. Most organizations prefersilence on this issue.Increasing incidents of allegationsof sexual harassment includingagainst high profile individualsindicate that the law enacted toprevent such harassment at workplace is not enough to stop suchabuse.The sexual harassment ofwomen at the workplace (PPR) Act2013 which came on statute bookon 23rd April 13 is a codification ofVishakha case guidelineswhich mandates allprivate

organizationsand Govt. at district level

to institutionalize mechanism toprovide redressal to female victimsof such abuse at workplace by malecounterparts by constitutinginternal committee.The localcommittee will be constituted bydistrict collector of the district toprovide a platform to those victimswho have a case against theemployer or where the internalcommittee is not constituted.Thiscommittee is at one up level wherethe management of theorganization will have norepresentation. But the reality is thatneither the organizations haveconstituted the internal committeein their organizations barring fewbig ones nor district collectors ofthe various districts in states haveinitiated any action in this direction.

The norms have not been followed.In such situation where the victimshould go?The law is teeth less. It is too soft todeliver justice to females atworkplace. It only provides that incase if it concludes that theallegations has been proved,Thecommittee shall recommend that itbe treated as misconduct withconsequences including salary

deduction fromoffender to be paidto the victim ascompensation.The law aims onlyto address theissues of sexualharassment atworkplaceinternally. Itdoes notempowerthecommitteeto advicepolice tolodge FIRagainsttheoffender

and takeaction on the basis of

their findings against theoffender.This law is not going toeradicate this scourge. Theobjective to make law is to providea better society and workplace inspecific. But it does not appear toachieve its objective so far.To create deterrence, womenemployees have to speak upfearlessly. All other like mindedemployees, be it male or femaleshould support the victim and giveher moral courage to fight it out.Pressure has to be built up onseniors and management who areeither silent spectators or simplybelieve in suppressing the incidentby maligning the image of victim oreven creating situations wherevictim leaves the job quietly.No. Enough is enough.Women haveto come forward and expose suchwolves in sheep’s clothing atworkplace without waiting for morestringent law.

Speak Up !Anil Kaushik

BM

Quick Comments

Create a performancedriven culture

Reward those who exhibitBristlecone values

To speed up in groomingtalent

Create Internal Leaders

To retain knowledgeand talent within thecompany Create a talented

work-force

To Hire ‘Best Minds’

Have Emotional, Cultural& Physical Connect

Anew hire, a seasoned and experienced professional, an intern or a contractualemployee; due to its nature of work; employee's roles and responsibilities differsignificantly. However, what remains same and common for all its employees isthe "Human Touch" rendered by different organizations through its wellstructured phases of engagement and grooming which gives Talent

Management a whole new meaning. The new mantra complied by the human resourcemanagers these days, is to lead the talent path of its employees from "Good to Great". Thetwo-fold focus of "addressing problems" and "creating growth" has been central to all theorganizational plans and their execution. This has led to a well defined Employee Life-Cycle

with expected outcomes formulated clearly at every stage.

The snapshot captures the essence:



Managing talent withthe Human Touch

RITU MEHROTRAVice President HR - Global TalentManagement, Bristlecone

What remains same and common for all its employees is the "Human Touch" renderedby different organizations through its well structured phases of engagement andgrooming which gives Talent Management a whole new meaning.

An essential pre-requisite to managing talent isacquiring talent and it is the "Recruitment" phasewhich takes care of that. Hiring after a rigorousprocess of screening and several interview roundsensures that only the best talents make it to the firm.Hence, this is achieved through various platformssuch as Connexions forum for referrals, Jobviteportal, College and Campus Connects and PartnerEco-Systems. The whole idea behind theseinitiatives is to create a talented workforce in anorganization which is ready to take on any challengeand go that extra mile to achieve the targets.

Once the employee has joined the company, itbecomes essential that the feeling of belongingnessruns through and deep. The reason being, for anyorganization to stay focused on its vision andachieve its mission, the employees should find notonly their goals but themselves too in sync with theobjectives of the company. This is where the crucialaspect of "Engagement" comes in. Establishing astrong cultural, emotional and physical connect liescore to every employee engagement initiative. Justto name a few, activities such as Kid's Day out, Teamoutings and lunches, Founder's Day celebrations,conducted under the employee engagement forum,Live Wire, have not only fostered a long lasting bondwith the employees in the various firms but havealso increased team camaraderie.

While that is the fun bit, employee engagementtasks to acknowledge exemplary work, effort,intellect and dedication should remain in the fore-front as well. For example, many competitions areconducted internally in the offices through pop-upson their computers or in other ways, wherein, the

awardees receive iPod or iPad as gifts. The outcomeof engaging employees is retention of talent andknowledge within the company.

As the life-cycle continues the maturity level ofemployees increase and so sets in the next phase of"Development". Mere retention of talent has lesservalue if opportunities are not provided to groom theskills learnt. Keeping this in mind, manycompanies' designs a range of programs that aim tocreate internal leaders. With competitions such asShadow Board and Hi-Pot War Rooms, participantsare put to a grueling test of intelligence andpractical thinking. The members, in teams as well asindividually, propose practical and easy toimplement solutions to the jury which comprisesthe Executive Leadership team. With the presence ofiRise and Rotation policies that initiate rotationwithin job roles and promotions through InternalJob Postings; employees experience a wholesomegrooming of talent and skill enhancement.

Giving the necessary chances to develop, gets theemployee ready and leads to the last segment whichis to "Manage" the groomed employee. By this stage,an employee is capable enough to handle thedifferent tasks assigned. As an incumbentorganization, it then becomes important toacknowledge and reward the hard work so that aperformance driven culture is fostered.

With such practices in the organizations, anemployee goes through key phases and throughout;and thus human touch is never lost. For thestrategically designed activities one should ensurethat the employee is well supported and hence notstruggles but strives to achieve success.


Managing talent with the Human Touch

Hiring after a rigorous process of screening andseveral interviewrounds ensures thatonly the best talentsmake it to the firm.

Once the employee has joined the company, it becomes essentialthat the feeling of belongingness

runs through and deep.

BM

Leadership demands many qualitiesfrom people who are in positions that require them to lead. One ofthe qualities is resilience. We don'toften hear this attribute being

discussed when we are discussing keyleadership skills. However, resilience is a keyattribute that is required to be built anddisplayed by leaders in today's dynamic andunpredictable environment that is prone tointense change.

Matson, Best and Garmezy have described'Resilience' as the capacity to maintaincompetent functioning in the face of life's majorstressors. As business leaders, we faceuncertainty at work due to uncertain externalenvironment, e.g., political instability, policychanges, shut-downs, climate changes, ethnicityintolerance, etc. While all these are not strictlyrelated to our business, they do impact theconditions under which we operate ourbusinesses. Similarly, the workforce today hasdifferent sets of needs .Stake-holderexpectations are changing. All this requiresleaders involve in driving change to be resilientand steady.

The first association we have with the word'Resilience' is perhaps flexibility andadaptability, i.e., the ability to handle situationsas they come. However how well we plan andpredict the future, the fact is that life oftenintrudes on our plans!

Building resilienceResilience is the ability to see situations as

they emerge and deal with them with courage,positivity and creativity. All of us are mostlycapable of handling situations that we know willcrop up and for which we are prepared. It is theunknown and uncertain challenges inleadership which we often cannot predict andare therefore, unprepared to handle. Futurechallenges are still in the realm of the unknown.So while I cannot predict a specific situation, Ican however build my capacity and capability tohandle these as they come. This is buildingleadership resilience.

Resilience is also the ability to "bounce back"from a frustrating situation and move ahead. Inbusiness, we often have bad runs. The sales havebeen low for a number of months; competitorsare catching up with what was earlier ourdifferentiator, key talent leaving to joincompetitors, etc. Resilience refers to the abilityto manage ones' emotions during these periodsof difficulty and frustration and consistentlymaintain a positive outlook and work toovercome present difficulties. This can happenif we reframe failure as feedback. As leaders, wecannot afford to "give up" when we experiencetough times. This is when our teams look at usfor inspiration and direction. How we manageourselves and drill down the messages we giveare critical. Resilience is therefore also the



Resilient Leadership

ANNU WAKHLUManaging Director, Pragati LeadershipInstitute, Pune

For leaders, resilience is a core attribute which helps in their personal leadershipjourney. It is the ability to see situations as they emerge and deal with them withcourage, positivity and creativity.

NHRDN Pune Chapter launched visioning expercise and created task force to run. One focus area was to drive thoughtleadership, for which a compaign was started to invite members to write on any HR/ leadership issue. Core committee under the leadership of Anjali Nair, Director-HR, SKF, Pune selected three best articles written by Annu Wakhu, Swati Wagh & Arun Singh/Shweta Rawat. All these three articles are published here. -Ed.

ability to tolerate and recover from frustration andfailure. There are several stories of millionaires goingbankrupt, however, it is resilience that gets them tobounce back.

Key tips to be resilientSo what are the key things that we need to work on

and develop to be a more resilient leader?

It all starts with the mind and the way we think.There is a strong need to have the ability to becomfortable with both success and failure. No onelikes failures and as leaders, we are also not hired tofail. However, there are times when no matter howhard we try, we don't get to where we want to. At thesetimes, developing the perspective of accepting thecurrent situation without having excuses for it helps alot. Seeing failure as an opportunity to improve, doingthings in a different way rather than seeing it as apersonal shortcoming is essential. During challengingtimes, positive thinking and staying optimistic areextremely important. It is so easy to get into a "victimstate" and find legitimate and illegitimate reasons for"why things are not going the right way". At thesetimes, we need to develop a "hero" attitude. An attitudeof can-do and move on. This helps to bounce back froma touch situation and invest our energy in looking atthe future. Staying in the past immobilizes us anddrains all our energy. That emotional energy can beused to learn from the past and plan for the futurekeeping the lessons learnt at the back of our mind.

Key attributes of resiliencePerseverance is an important attribute of

resilience. It's about not giving up when you hit thefirst bump on the road. It is about having the mentalstrength to pursue the path even when we encounterdifficulties. This is where positivity and convictioncome in. Gandhiji believed that India could be ademocracy even before he had figured out a game planfor the same. Resilience can be built through strongconvictions and belief in the flow of life and the graceof the universe. If you have chosen a path that is inaccordance with what's good for people and thebusiness, you are bound to succeed.

The ability to improvise is also an important aspectthat builds resilience. Improvisation is the skill ofdealing with "what is" in the best way you can. Sinceone hasn't planned for it, there is no ready formula forthe future. All that you have is your existing abilitiesand a mind ready to experiment and take on things.Developing the ability to "play" and "being ready"helps us to take on situations for which we may notalways have a game plan in place. This is where plansdon't help! We can only do this if we have confidence inour own abilities and have a belief that we can do it.Irrespective of the outcome, we face the situation andact in the situation. This builds our perspective andskills for the present and the future. To improvise, weneed to be flexible and be comfortable exerting avariety of choices. Rigidity or response andimprovisation don't go well together!

As leaders having resilience helps us with ourpersonal leadership journey and our role as buildinginspiration in our teams to continue to work for thegoals we have articulated.


Management education has taught all of us thebasic difference between a leader and manager.While a manager has employees assigned and aleader wins followers, the manager reacts tochange while the leader creates and leads the

change. The manager often tends to ask for credit, while theleader takes responsibility. Innumerable such differences can becited that highlight the difference between a manager and leader.However, can every manager become a good leader? The answeris "Maybe Yes, Maybe No".

Peter Drucker said, "Leadership is not magnetic personality -that can just as well be a glib tongue. It is not 'making friends andinfluencing people' -- that is flattery. Leadership is lifting a person'svision to high sights, the raising of a person's performance to ahigher standard, the building of a personality beyond its normallimitations." Leadership differs from people management orsupervision, however, some people and organizations tend to usethese terms interchangeably.

Leadership involves directing the organization towards thefuture, finding growth opportunities, exploring thoseopportunities and finally, leading the way to success. Leadershipis about having a vision, empowerment and bringing about achange. In today's business scenarios, organizations look forleadership qualities in most of their employees. This, however,has no connection with the organizational hierarchy.

PeopleManagementand Leadership

SWATI WAGHManager – HR, Sudarshan ChemicalIndustries Ltd., Pune

To be an effective manager, it isimperative to be a good leader. Onecannot exist without the other. Hence, fora manger, possessing people managementskills and leadership skills are mandatoryto prove as an effective people's person.

Resilient Leadership

BM

On the other hand, people management orhuman resource management in broad terms meanhiring, sacking, training people, evaluating andmaintaining discipline. As "Generation Y" occupiesthe principal part of the workforce, peoplemanagement has come to include leading,motivating, inspiring, encouraging and improvingthe overall engagement level of the employees.

Albeit, excessive focus on people managementcan prove to be detrimental to the organization asemployees may find it as an encroachment of theirrights. On the other hand, low-levels of peoplemanagement can lead to mess. So both peoplemanagement and leadership are essential for anorganization that aspires to be the best in classorganization. People managers get work done fromthe employees and visionary leaders prepareorganizations for the future. Even either of theseaspects is neglected then the organization will fail tomeet its objectives.

All of us come across employees who arrive at

work with a plethora of thoughts about theirpersonal and professional lives. If they aredissatisfied with either, then the consequences areeasily seen on the other front. It is extremelyimportant for a manager to understand the pulse ofhis or her subordinates and then ensure effectivedelegation of work. If a people manager fails tounderstand his team member then he or she cannotbuild a strong team.

Achyut Godbole who is a veteran in IT industryand a fabulous author as well mentioned in one of

his books about his management style"Management by Walking around". He used to meeteach of his subordinates and have casual talk abouttheir personal and professional life. Once he went tohis colleague and asked him whether " all is well".They spoke for some time and then Mr. Godbolewalked away. You will not believe but thatsubordinate who had decided to resign that daydecided not to and stayed back because he felt cared.This is what I mean being a great manager and agreat leader as well. Understanding technology,emerging trends in your area is one part butunderstanding the feeling of your junior mostcolleagues and learning from them makes a hugedifference for them and you also.

As generation Y takes over the major part of theworkforce, it becomes extremely essential for everymanager who belongs to Gen-X to learn the knack ofmanaging the ambitions of the Gen-Y. Gen -Y doesn'tneed managers but they need mentors who shouldbe way ahead in terms of knowledge and skills. Gen-Y needs mentors who are flexible in approach, theold school of thoughts doesn't really work withthem. Last but not least, Gen-Y needs clear careerpaths and challengingassignments otherwise theytend to burnout, which ultimately forces them tolook for new opportunities.

Hence, all managers need to develop their skillsand competencies to match up to the expectations ofthe rising workforce and lead their organizationstowards the vision and mission they have opted for.

Competencies that will make apeople manager a great leader:

1. Able to generating trust

2. Able to direct people

3. Being a source of hope

4. Have a defining vision

5. Can achieve results

6. Able to drive change

7. Can analyze the future

8. Can lead people development

9. Personal effectiveness

10. Being a source of inspiration Best managers who are great leaders will be able

to lead people effectively and strengthen theknowledge of each individual; however, managerswho lack these skills will struggle in their careerand fail to win the trust of their team members andbe a good leader.



People Management and Leadership

How an effective manager balances people management & leadership

Leadership differs from peoplemanagement or supervision, however,some people and organizations tend touse these terms interchangeably.

As generation Y takes over the major part of the workforce, it becomes extremelyessential for every manager who belongs to Gen-X to learn the knack of managing theambitions of the Gen-Y. Gen -Y doesn't need managers but they need mentors whoshould be way ahead in terms of knowledge and skills.

BM

'B-Players'- An Asset to the Organization

This is what the "learning and development"function does in an organization. They create anopportunity for employees to learn. As the little

boy said "they make a part of it'….the rest you growyourself and 'learning' is a lifetime job for everyone".

Organizations in most cases tend to focus andinvest in recognizing and developing employees whobring in the revenue and awards for theorganization - the A-players. They are given morevisibility and access, more responsibility andreceive more development opportunities - such asspecial assignments, job rotations, cross- functionalexposure and training as well as mentoring andcoaching from senior leaders - in comparison toother employees.

The A- players clearly are the key resources,successors for the critical positions and lead theorganizations into stronger business performanceover the years to come. While it becomes imperativeto have a formal process to identify, develop andretain the A- players, the organizations should alsobe cautious and ensure that their B- players are notoverlooked. As illustrated earlier, the Learning andDevelopment function offers opportunities forpeople to learn, i.e., 'they make a part of it'.Organizations must ensure that these learningprospects are not restricted to the star performersonly. There needs to be a focus on the B-players fortheir skill enhancement and career development.They may not impact the bottomline as much as thehigh or low performers, however, they account forapproximately 80 per cent of the workforce. Theyare often misconstrued as the average performers.They may not be exceeding expectation all the timebut they are the ones who are your capable and

steady performers and will execute and deliverresults consistently. This way of defining a B-playeris a relative method as it is always in comparison. B-players are called so in comparison to A-players asthey are just next in league. While looking at themas a standalone group, they add significant value tothe organization. Being the majority of the groupwithin any organization, they help theorganizations to function smoothly and there is noway they can be ignored. One example is the annualperformance appraisal process. The standard bellcurve says that only 15-20 per cent of people consistof the category known as the A-players andremaining 65-70 per cent form the B- players. And,we simply can't take the risk of ignoring 65 to 75 percent of our workforce.

The development plans for them can also bedesigned on 70-20-10 principle, i.e., 70 per cent of thedevelopment effort therefore should be focused 'onthe job' ; 20 per cent on one to one coaching, hand-holding, etc., and 10 per cent of the developmenteffort can be focused on training event and trainingprogrammes. You may find that some of these B-players are capable of great performance if offeredthe right developmental opportunities andencouragement. 'If you ignore [B- players] longenough, they begin to see themselves as lowperformers.' - says Thomas J. DeLong, a professor atHarvard Business School.Organizations shouldrealize that success of any organization dependsnot only on isolating and developing an elite cadre ofemployees but by setting up an effective process todevelop and nurture all the employees , encouragingteam work and creating a culture of continuouslearning across the organization.


ARUN SINGHGeneral Manager-HR,Tata BlueScope Steel

SHWETA RAWATSenior Manager -OrganisationalLearning &Development,TataBlueScope Steel

While it is precedent for organizations to focus on their top performers as they bring in themoolah and drive organization results, however, it is all the more important to focus on B-players for their skill enhancement and career development.

"Can you tell me who made you?" the pastor asked the small boy.

The youngster thought for a moment, looked up at the pastor and said, "God made a part of me."

"What do you mean by part of you?" asked the pastor.

"Well," answered the boy, "God made me little. I grew the rest myself."

"Growing the rest" is a lifetime job for everyone.(Source: God Made Part of Me , by: Brian Cavanaugh, T.O.R., The Sower's Seeds)

BM


In a knowledge economy, the most powerfulability to influence followers is throughexpertise or knowledge or ideas.

The ability to influence others known as poweroriginates from various sources like holdingposition, reflecting from those powerful,rewarding, coercing people, and possessingexpertise in the field.

Positional Power is derived from the position aperson holds in an organization's hierarchy.

Reflective power is the one like moon (with noshine of its own) reflects glow from that of thesun shine.It is like power of secretary to CEO orMD, power enjoyed by son or daughter ofministers.

Coercive power is derived from a person'sability to influence others via threats,punishments or sanctions. Dictators,authoritarian leaders fall in this category.

Reward Power arises from the ability of aperson to influence the allocation of resources,rewards in an organization. Such rewardsinclude salary increments, positive appraisals,promotions and even withdrawal ofpunishments. Expert power is derived frompossessing knowledge or expertise in theconcerned field. They are highly valued byorganizations for their problem solving skills,and they perform critical tasks. The opinions,ideas and decisions of expert poweredindividuals are held in high regard by the otheremployees and hence they influence others.

Thus "Thought Leaders" in any field areempowered by the expert power by virtue oftheir ideas and thoughts.

History of the word ThoughtLeadership :The term was coined by the editor-in-chief of themagazine strategy + business, Joel Kurtzmanwho in 1994 anointed interview subjectscovered in his magazine as "thought leaders."

What does it involve?Such "thought leaders" possess in-depthknowledge in the concerned area.They are on theabsolute cutting edge of their industry or field.

How to become a thought leader?Becoming known as a thought leadershouldn't be the final goal.

It's just the icing on the cake of creatingsomething truly innovative. When a person is

willing to take risks and do things that areunconventional, and others' find logic in thoseideas, they make the person earn the respectthat labels him as a "thought leader".

"Thought Leaders" stay ahead of trends,prevailing beliefs and steer direction. A realleader is not a searcher for thoughts but moldsthoughts of followers. Convinced by the ideasand thoughts of the leader, the rest follow him.

"Thought-leadership" creates credibility,visibility, and brand loyalty. "Thought leaders"are made because their ideas made themfamous. From times immemorial, thoughtleaders molded the thoughts of people inthose societies.Turning points in societies werebrought about by "Thought Leaders" at thatpoint. Like for example, in their own way,Mahatma Gandhi and Martin Luther King werethought leaders as at a time when it wasunimaginable, they spoke of liberation .

"Thought leaders" stimulate the thinking offollowers but persons who not only propoundideas but execute such ideas to their logicalend become great leaders like Gandhi andMartin Luther King.

"Thought leaders" could be pioneers in thefield by visualizing the non-existent at thattime and proposing it. Some of them may alsosuggest an incremental improvement to whatis existing. In other words while every one elseis occupied with day-to-day matters, thethought leaders foresee and predict futuretrends by connecting vaguely visible dots.Theyinfluence followers by their thoughts and moldthe follower's thinking and actions.

In case of both pioneering and incrementalthoughts, they need a deep rooted convictionin what they are saying and ability to stick onto it despite any amount of opposition to theidea. One such classic example is of Galileo. Hesaid that "the Sun lies motionless at the centreof the universe, and that the Earth is not at itscentre but moves " For saying it against thecommon belief at that time ,he was sentencedto formal imprisonment..

"Thought Leadership" in GeneralManagement:The theory and practice of managementwitnessed changes at different points of timewith contributions from "Thought Leaders".Ever since the first organized work namely,

construction of pyramids, management atwork has been analysed by the experts andtheories have been propounded from time totime. For example, Frederick Taylor (1856-1915), developed Scientific managementprinciples of management that analyzed andsynthesized workflows.

"Management gurus" in all branches ofmanagement have been making significantcontributions by their research andpredictions.

In the recent past, Peter F. Drucker isconsidered the most influential managementthinker ever.

Thought Leadership in HR :The field of HR was enriched by thoughts ofeminent behavioural Scientists from time totime. Various behavioural and social scientistsin each gamut of HR , contributed theirthoughts in the evolution of HR as a field.

In a book of readings entitled,The Future ofHuman Resource Management, 64 "ThoughtLeaders" explore the critical HR Issues of Todayand Tomorrow.A number of HR Magazines andresearch studies identify every year the mostinfluencing "HR Thought Leaders" across theglobe.

People like Udai Pareek , TV Rao in India andDave Ulrich globally to name a few made asignificant impact on HR science, thoughts andpractices. Global consultants through theirworks, research and writings influenced HRthinking. Researchers and academicians fromglobal HR centers of excellence proposedvarious HR theories.

Social Media and "ThoughtLeadership" :In the current day, social media is playing acritical role in spreading ideas. Any thoughtleader earns his or her title because thatperson's ideas have gone viral on the internet.When an idea multiplies and distributes itselfthroughout the Internet , with the person'sname attached - then leadership becomes"thought leadership". Also, big data HRAnalytics is helping in diagnosing trends andunderlying developments for "the thoughtleaders".

In any walk of life or field of study, thoughtleaders are essential as they mold the thinkingof society at that time.

Dr. PVR MurthyFounder Director,

Exclusive Search Recruitment Consultants, Chennai

Ability to influence others...

BM



leadership& HR

Thought

Accepting and recognizing an organisation or anindividual as thought leader requires consistent,diligent effort. Thought leadership is cumulative.

Although it can and should have tactical elementsthat unfold the evolution of idea from concepttowards implementation, thought leadershipshould be strategic at the onset. It should be

about a big idea that changes how peopleperceive the surroundings.

The cover feature articles are experience drivenpieces initiating and providing new thinking, withthe objective to develop deeper understanding of

the phenomenon with fresh insights.


The core role of a leader is to lead. To lead involves thinking ahead,talking ahead or acting ahead of others. All leadership forms imply to beahead. "To be ahead" is a relative term. Anyone who is doing any of thethree without knowing someone else has already thought or spoke oracted is still a leader. Leadership is a belief in the mind of the leader as

well the perceiver. If I think ahead and am not aware that someone else hasthought similarly somewhere not knowing the same, I am still a thought leader.For example, the conceptualisation of the "Integrated Human ResourcesDevelopment" as a cohesive system, a department that facilitates as the HRD, andthe function as Human Resources was thought ahead of many by Udai Pareek. Ihave had the good fortune of being a part of this thought in the mid-seventies. Itwas conceptualized while we were writing our consulting report at Hotel Taj,Mumbai, which was to be presented the next day at L&T. Till date; it stands as alead thought. Dave Ulrich came with his theory many years later, though he isconsidered to be the only thought leader in this. However, as we know it that wasnot completely true.

The Indian Journey People in the US, Canada and UK did not read and still don't read much of

Indian books. Unfortunately, India till recently wasn't equipped with a mechanismto acknowledge the top thinkers or leaders most leaders go unnoticed. This does


THOUGHT LEADERSHIP & HR

We all know what the role of leaders entail; however,there is a great need for leaders who practice whatthey preach.This is where 'thought leadership' comesto play in the organization context.

Leading to MakeDifference

Dr. T. V. Rao Chairman,TV Rao Learning Systems

India is filled withthought leaders;

however, most ofthem remain private

and go unnoticed.

not imply that all thought leadership comes from the West. A lot of it ishere in our country and is not always acknowledged unless it becomes acult and gets exported to the West. India is filled with thought leaders;however, most of them remain private and go unnoticed. Long ago Dr. P. P.Gupta professed, "Preach even if you don't Practice". I was intrigued bythis and once both Dr. Udai Pareek and I asked Dr. Gupta about thisstrange statement. He said, "Professor! Most people in India have nothingto preach. If you have to preach you should first learn about somethingyou want to preach. When you learn something to preach, half my battleis won. When you begin to preach others, even if you don't believe in whatyou are preaching, you will slowly begin to internalise and believe andbelief is the first step to practice. Even if for some reason you don't believeafter repeated preaching, someone in the audience who is listening to youwill ask "are you practicing what you preach". Years later this theory ofleadership came from Noel Tichy of Michigan University who guided JackWelch and team to success. Like Dr. P. P. Gupta and Udai Pareek, there aremany thought leaders in India. We just don't recognise them. In recenttimes, I admire Dr. Anil Khandelwal for his thought leadership. In HRD,there are a few thought leaders whom we should respect and acknowledge.

Managers to LeadersMy book "Managers who Make a Difference (IIMA Books) explore four

types of managers: doers, achievers, visionaries and missionaries. It is thethird and fourth type who gets qualified as leaders. It is possible to movefrom one type to another and also fall from one type to another. Normallyupward movement is possible through development and downwardmovement may occur only in phases. While the first type of individualserves the society in a particular way by ensuring excellence andproductivity, it is the third and fourth category that makes a difference toa large number of others.

The above leaders can also be classified as: "Thought" leaders, "Talk"leaders and "Act" leaders or "Walk" leaders. Good leaders take uponthemselves the task of building leadership competencies across theirorganizations. By doing so, they empower the juniors. They lead from thefront some times and other times they may push from behind. We rarelyacknowledge these leaders who lead from behind and it is important torecognise them.

India as a country has thrown up many leaders in various fields sinceindependence. An analysis of them indicates that they have always beenvisionaries and integrative thinkers.

Impediments to LeadershipDivisiveness is the biggest impediment to growth. The main role of a

leader is to continuously integrate the team and keep them together. Forthis, the leader needs to be several steps ahead of the team. Divisiveleaders cannot lead any organization to success. Our country is facing thedivisive tendencies enormously and any leader will have an uphill task tointegrate. We need to produce a lot of integrating personalities at alllevels.

Our leaders in some areas and particularly politics suffer from divisivemindset. In their short term orientation they promote divisiveness. Whenleaders substitute their vision with narrower goals or short-term benefits,they become self-centred and they resort to all tactics to win. India givestremendous opportunity for these leaders to play these tactics. India by itscomplexity is very susceptible to division by groups and this gives rise topeople to exploit by bringing differences in religion, caste, language, etc.Those who have narrower interests either in an organization or in thecountry can exploit these differences or kill development. It happens inorganizations and it happens at state and country levels. The solution is along-drawn battle of social change. The root of divisiveness is the castesystem and it helps many people to survive. It may take several decades toget out of this. The Gen-Y is a big hope for all of us. However, Gen X maynot give them a chance.



The main role of aleader is tocontinuouslyintegrate the teamand keep themtogether. For this,the leader needs tobe several stepsahead of the team.


BM

Meltdown! Looks like a buzzword, now, isn't it?However, ask the industrycaptains who experiencedit and they are anything

but amused. To them, it was not a bee or abuzz. It was a shocking experience thatshook their leadership foundation at itsvery core. And the prognosis at periodicintervals by the pundits of doom of whatwas yet to come panicked some of them toa degree of paranoia. And, it didn't takelong for thought leaders to attempt tointerpret the meltdown. The range ofanalysis included from wise to bizarre.Some, at the basic level, dismissed the


Analytics - The MissingLink in Leadership

The author gives an insighton how business leaders wholead from the front believe inmaking technology andsocial media work in theirfavour in driving organizationresults. It also focuses ondifferent kinds of leaders andtheir unique leadership stylesand demonstrates how eachone of them approach acertain situation.

Dr. G. ShermonPrincipal Business Consultant

Tata Consultancy Services, Canada


meltdown as a cost and consequence of fear andgreed and some, at another level, as a recession thathappened owing to a systemic breakdown inregulatory mechanisms, over heated markets,aggressive growth targets, overlooking simple signsand loss of focus on risk and cash.

As I look back and whether I agree or not withany or all of the above, I am convinced of one thing.All analysis continues to deal at the superficial, atthe surreal, or down right myths and stereotypes.And to me, we have missed a beat in not getting tothe core of the issue. From ancient history at thedawn of the civilization when survival was afunction of fighting it out, to a series of world warsimposed on us by greedy dictators that concludedwith an atom bomb or the era of industrialrevolution when scientific management

demonstrated the need for a Maslowtype of human relations era

or to the

modern worldof Lee Iacocca's Chrysler or

Jack Welch's' leadershipparadigms as a necessary condition for

organizational effectiveness, to me all of the abovehad been a pattern that dealt with thedisintermediation that followed one single theme -leaders who influenced a culture. Being a culturethat they influenced to make things happen usingtheir infrastructural capabilities, be it systemic,technology, eco system appreciation or employee -follower connects. They got things done by gettingpeople to follow technology, process, discipline andfundamentals of differentiating right from wrong.

And at the core of all of these was, analytics,what is perceived to be relatively fundamental now,but what was then perceived as being more complex,the ability to understand and appreciate the powerof how technology can analyze and give CEOs thepower to decide by predicting the future with areasonable degree of accuracy. They dealt theirissues with a passionate mind but supported by astrong set of data and analytics that enabled theirdecision making, cutting out the noise bites usingwhat today is extensively dealt with called Big Data.

As a pattern, one thing is evident in all of theabove. Leaders demonstrated a set of distinctivebehaviours that seemed to be all-pervasiveincharacteristic of the best and the not so desired.And interestingly while the not so desired are in oneend of the continuum the most admired leaders

follow a constructive set of leadership practices.And it is very much possible to play each of the endsto your advantage. And consistently it is nowbecoming evident that business leaders who ledfrom the front believed in making technology andsocial media work for them. At the top of the heap isthe oscillation between passion and emotion and onthe other side was raw unadulterated focus on usingrational principles of decision-making. This is bestdone using analytics, IT systems, technologyenablement, HCM platforms, social media,communication and connection.

Passionate leaders continued to demonstratetheir sense of identity in spite of challenging thingshappenings around them. They demonstrated anintense desire to explore, discover, and create andwould be most willing to dig into details. Therational leaders stamped their presence throughincisive thinking clean appreciation of processesand high dependence on analytics in every activityas some one who is actively engaged in steering theship through stormy waters.

In contrast, emotive leaders displayed a degree ofcommitment and hard work that could be rarely foundin a passionate leader. They tend to demonstratewillingness to rethink/redo all aspects of anorganization as long as it had been challenged to themat the basic level and addressed as something that isdoable. Unlike the passionate leaders who ownhis/her idea more than others, emotional leaderswould be most willing to alter their point of view aslong as the idea has been addressed at their emotiveinstinctive level. Andrational leaders make the best ofboth depending on intelligent systems that help themdetermine the best option amongst many seeminglytempting - viable alternatives. In all of this turmoil,the evidence of driving topline value clearly linkedorganizations with high performance outcomes drivenby a culture to make everyday life of an averageemployee hassle free and productive and focus onenhancing outcomes (units per employee), cash flow(Gross rate of return on assets per employee) andmarket value, are true stories to speak of.

When organizations invest in long-termtechnologies, they are also sending home a directmessage that the business case has many differentparts, but "at a minimum, it's going to have to have aclear link to eco-friendly corporate strategy, a marketor competitive analysis, a project plan with a firmtimeline, and most importantly, it's going to haveforecasting capabilities, predictive analytics,probabilistic projections, powerful financials and lotsof people engagement be it through social media, bigdata analytics or simple employee self service. Andwith fewer people, less money, and the increasinglyrapid rate of competition, and the devil of a hangingthreat of a meltdown or recession. CEOs citeorganizational innovation and the efficient andeffective management of the workforce throughtechnologies as key competitive advantages,enhancing the importance of human capitalmanagement. And that is best done when work life isenergized for a productive employee and significantlymore simplified for the CEO who has more thanhis/her share of issues, problems and challenges!



Leaders demonstrate a set of distinctive behaviours that seem to be all-pervasive in characteristic of the best andthe not so desired. And interestingly whilethe not so desired are in one end of thecontinuum the most admired leaders followa constructive set of leadership practices.


BM

Aparna SharmaCountry Head-HR

Lafarge India, Mumbai

Amiddle class middle agedwoman is looking into herhusband's eyes. He is coaxingher and saying, "Its fine. Noone will say anything." She

anxiously says, "What will my mother-in-law say? What will kids think?" Husbandassures, " No one will say anything" andoffers her a Cadbury Dairy Milk says, "MeriMaa keheti hai ki kuch bhi naya shurukarne se pehle mitha khana chaiye"(Mymother says that before we start anythingnew, we must have some sweet). Wife takes a


For those organizations who want to thrive in today's tough business world, it isimperative for them to realize that "Thought Leadership" is about a big idea that will

change how people perceive the world and the role of HR will be the key differentiator.

Cutting EDGE or justa WEDGE


bite and moves out of her home in her new jeans and shirt. While she walks,everyone who see her claps and she fondly looks into her husband's eyes.

You must be wondering why am I promoting Cadbury Dairy Milk. Believeme, that's the last thing I would want to. The next question would then ariseas to what has this to do with "Thought Leadership and HR". It's simple.

Just like the way this advertisement has stayed in my mind and am suremany of you would have recalled the same while reading this piece, whatmade it have a connect with the audience? Typically, chocolateadvertisements either show kids or are endorsed by a celebrity. Then whydid Cadbury want to position Dairy Milk differently? Why did it want to saythat anyone irrespective of age can make new beginnings through DairyMilk? That was the differentiating strategy!

"Thought Leadership" for me is nothing but differentiation. Given ourcomplex world, there are many things that need to be considered, soproviding true thought leadership can be as valuable to a brand as theproducts or services it sells.

The evolutionSuccessful thought leadership does not arrive with a published idea

linked to a hope that someone will recognize brilliance and sweep yourorganisation from anonymity into industry eminence. Establishing a firmor an individual as a thought leader requires consistent, diligent effort. It iscumulative. Although it can and should have tactical elements that revealthe evolution of an idea from concept toward implementation, all thoughtleadership should be strategic at the onset. Thought leadership should beabout a big idea that changes how people perceive the world.

If an organization invests in the communication or "creation" of thoughtleadership, it should know what it wants from those who will consume thatthought leadership. Most of the time, the answer will be respect andrecognition. Thought leadership should also be an entry point to arelationship. It should intrigue, challenge, and inspire even people alreadyfamiliar with a company. It should help start a relationship where noneexists, and it should enhance existing relationships.

It has become the new competitive battleground not only in theconsulting and accounting business, but also among other B2B firms that



"Thought Leadership"for me is nothing butdifferentiation. Givenour complex world,there are many thingsthat need to beconsidered, so providingtrue thought leadershipcan be as valuable to abrand as the productsor services it sells.


compete on the basis of experience and advice. From the customer'sstandpoint, choosing a product today is difficult than ever with too many"me-too" products mushrooming around. Much is riding on choice - marketleadership, competitive advantage, sometimes even survival, not tomention promotions and personal rewards.

Similarly, with the stakes rising and the experience base growing,employees are becoming more and more sophisticated in choosing theorganizations with which they want to get associated with. They considermany factors including: the organization's insight into the current issues,their demonstrated experience in resolving issues, the organization'simage and reputation in the market place, current pricing strategy, theorganization approach towards innovation, and the chemistry between theorganization and the customers, i.e., brand recall.

Role of HRDone right, it can create a whole new paradigm. This strategic

approach brings in HR Differentiation. In this scenario, HR invests itsresources on a differential basis relative to a position's potential to delivervalue to the organization. Those roles or areas with higher potential tomake a difference to the organization's strategy receive more focus andutilize different practices or processes designed to optimize theircontribution.

This approach runs counter to the tradition of treating everyone thesame based on level or title. It requires looking at all HR investments andinitiatives through a different lens: one focused on maximizing the returnthrough targeted and effective use of time, talent and money.

For those organizations who want to thrive in today's tough businessworld, predominantly based on knowledge, differentiation in HR willbecome the new norm. Two undeniable factors back this up.The first factoris the growing body of research and data which quantifies and identifiesexactly how people contribute to organizational success. The cliché thatpeople are our most important asset now has a significant body ofevidence to support it.

However, research has also made it clear that some people and, moreimportantly, some 'roles' have more to contribute than others. As a result,business leaders and boards are beginning to understand and payattention to how the organization's "Human Capital" is being managed.Some are even starting to report on how effectively the talent in theorganization is being sourced, deployed and developed.

This leads to the second undeniable factor. The pressure is on for HR todeliver on the promise of human potential in the workplace. Expectationshave been raised and organizations can no longer solve their challenges bysimply hiring more people. Put simply, HR is being called upon to silence its"cannot deliver" critics and provide confidence to business leaders that itsvaluable 'human capital' is being engaged, deployed and refreshed tomaximum effect. In short, HR is being challenged to deliver more with lessand the squeeze is tight. The only way to ensure that people practices andinvestments are optimized for organizational success is to focus on theareas of highest gain whilst maintaining the other elements of the HRfunction at an appropriate level.

There is no one set of prescribed practices which means as AlfredChandler said, "You can't do today's job with yesterday's methods, and still bein business tomorrow". The advantage of this approach is that youdifferentiate relative to your organization, your market, your strategy andyour competitive position. It's entirely possible for two competitororganizations to have separate approaches to differentiation and besuccessful. This is because they are competing using a different strategyand most importantly they have aligned their HR approach and deployedtheir HR resources to optimize the achievement of that strategy. This takescareful planning, debate, design, analysis, and action.

The key to success with differentiation in HR is not to follow the herd, butto carve a distinct path and create uniquely impactful HR practices.


The pressure is on forHR to deliver on the

promise of humanpotential in the

workplace. Expectationshave been raised andorganizations can no

longer solve theirchallenges by simply

hiring more people.

BM


How do you define and perceive thought leadership?

AK: Thought leadership to me is about new frameworks, new creative ideas or anynew paradigm or simply about any innovative thinking that is capable of bringing anew perspective to a problem. It's also about raising the collective passion for alarger purpose.

Most importantly, it is not only about soft stuff but is an amalgamation of hard stuff(actual business outcomes) and soft stuff (Capacity to raise passion).

How it differs from mere leadership and creates competitive edge fororganization?

AK: Thought leadership thrives essentially on any creative and pioneering idea,which has the potential to challenge the conventional wisdom. Look at Gandhi's ideaof non-violence, which was a totally novel idea that demonstrated its power to



Business Manager in conversation with Dr. Anil K. Khandelwal, Ex-CMD of Bank ofBaroda on his perception of thought leadershipand how it can create the much neededcompetitive edge for organizations.

Dr. Anil K. KhandelwalEx-Chairman & Managing Director of Bank of Baroda

Build humancapitalpotential....notpersonalbrands


displace the most powerful. Such creative ideas initially look fragile andunsustainable; however, they have the potential to change the stereotypedmindsets. How the idea of non-violence received global acceptability inbringing about social change is further exemplified by Martin Luther King andNelson Mandela. Essentially, this can be defined as thought leadership.

Thought leadership in HR- Does it makes business sense and how?

AK: Thought leadership makes perfect business sense. Paradimic changes frompersonnel to the HRD have effectively enhanced the contribution of people tobusiness outcomes. I consider late Dr. Udai Pareek a thought leader who gave usa new paradigm of the HR framework in 70s after his L&T work, and since thenthe concept has become popular for use in the Indian business world. Postliberalization, transition to HRD and its potential has helped India manage itsworkforce to deliver in the evolved environment.Today, progressiveorganizations spend good deal of time and money to build its HR. DouglousMcgregor's Theory Y several decades back which was based on the prevailingindustrial environment was refreshing and compelled the industrialorganizations to think and reflect.This is precisely how thought leadership andHR can correlate.

What are those key things that one could do to be perceived as an HR thought leader?

AK: I don't think one can simply take a course on "Five Steps to becoming aThought Leader'. I am amused to see certain blogs suggesting quick-fixprogrammes to become a thought leader. Dorie Clark, CEO of Clark StrategicCommunications shares six steps to become a thought leader;

Robust online presenceFlaunting high quality affiliationsGive public speechesAppear on TVWin some awardsPublish a book

However, I am afraid thought leadership is not about personal brand building.

Thought leadership is a serious thing. It requires thoughtful engagement topursue an idea or a thought against craving for building a personal brandthrough social media or networking.Thought leaders generally avoid thelimelight.This is because serious work and implementation of such work speaksfor itself, and therefore where is the need for a crash course to develop thisability. I think what is required by HR professionals is to seriously engage inbuilding the potential of its human capital and avoid the temptations ofbuilding personal brands without making a difference in their respectiveorganizations.

What is usually expected from a thought leader?

AK: Thought leaders should pursue their work with tenacity anddemonstrate the utility of their ideas. It was a privilege for me to demonstratethe potency of intangibles in producing tangibles results while I was with theBank of Baroda (2005-2008) by following the ideas of thought leaders such asDave Ulrich.

What are the attributes/characteristics of a true thought leader?

AK: Thought leaders are not "Chest beating" types.They quietly work withconviction and pursue relentlessly the use of ideas in an actual business setting.They are collaborative, research driven and authentic.They don't do things toget awards yet awards come to them without striving for them.

Does failure / success contribute to making an effective thoughtleader?

AK: Failure and success is part of pursuing an idea. Failure also contributes tostrengthen the determination. Success of course enhances the confidence.


BM


Ihave been following the work of acertain person X for a while now. Ienjoy what X writes and theenthusiasm with which X promotes it.The other day I notice that they had

added the word thought leader to their bio.Not just the word thought leader but a'global' thought leader no less. And I realisedX had fallen prey to the new epidemic of self-proclaimed thought leaders. A quick runthrough Linkedin profiles and you will seethat the world is full of thought leaderssuddenly. Thought leadership is the newblack and you must self-proclaim to be one ifyou are to be taken seriously it seems.



It is ultimately the thought leaders who push our thinking, help us innovate and break new ground in how we frame issues.

Going beyond your own story

Dr. Tanvi GautamManaging Partner, Global People Tree

While thought leadershiprequires deep expertise, itrequires something else - aunique point of view.


Of course it is a matter of time before the word thought leader will go theway terms like employee engagement, knowledge management and bestpractices went. Terms that were much in vogue at one point but now out offavour. However, while the charm of the title will be gone due to the massavailability of self-proclaimed thought leaders, the need and importance of anactual thought leader never really goes away. It is ultimately the thoughtleaders who push our thinking, help us innovate and break new ground in howwe frame issues.

Proclaiming to be a thought leader is the easy part, actually being one is farmore challenging. It is equally easy to confuse deep expertise as thoughtleadership. While thought leadership requires deep expertise, it requiressomething else - a unique point of view. The unique point of view must also berelevant and meaningful to its audience for it to influence them to change,reframe or shift their current thinking and/or doing. Only when all theelements come together can we claim to have found a thought leader. It shouldalso be noted that thought leadership is not always about one person.Sometimes it can represent a collective. Meaning that it could arise from thecumulative and synergistic insights of a team of individuals. For instance, thesenior leadership team could together provide thought leadership in a givenarea.

Why should organizations care about finding thethought leaders in their midst or becoming one ?

While there are several reasons, here is one I find most compelling. HerbSimon, a noted academic from Carnegie Mellon University, first talked aboutattention as a scarce resources and it is certainly true of the times we live in.Leaders, companies and their products are all competing for the attention oftheir followers, employees and customers respectively. It is not enough to createsomething new, it has to be''differentiated'' from what else is out there. Yourdifferentiation could come from your thought leadership. An individual or acompany brand can be built around thought leadership provided by them. Atthe time at which Jamshedji Tata embraced corporate CSR as a philosophy forthe Tata group of companies, he provided a thought leadership basedadvantage that has stood the test of time and set the tone for many others whofollowed suit.

However, it is not enough to have a thought leader or thought leadershipwithin a company. The thought leadership must be conveyed and madeaccessible and sometimes even translated. For instance, in the absence ofaccessibility and translation many a thought leaders have been seen as aheadof their times with no recognition of their gift only to be celebrated many yearsafter their passing away.

How do we make thought leadership accessible ?I find storytelling to be a great tool for this. Once there is clarity on what the

unique point of view is, it must be made relatable and meaningful for those itwishes to impact. What stories can you create, curate or celebrate thatshowcase the impact of the thought leader's idea ?These could be stories aboutthe birth of the idea or its impact on a product or policy innovation. You onlyhave to watch Steve Jobs introduce the iphone for the first time to the world tonotice how he taps into the power of story. He does not talk about market shareor focus groups, nor does he throw statistics and data that means nothing to theaudience. Instead he takes the thought leadership, his and that of the company,and tells a story that is at once interesting and meaningful to the audience athand. For a thought leader his/her stories are a means to convey the vision andunique point of view that acts as a differentiating factor.

Only when followers see their own storyline in that of the thought leader'sstory, will they be willing to shift and embrace a new way of thinking andbeing. As it is said, we must connect before we can influence.

As HR professionals when we try to provide thought leadership on an issueand we want it to be embraced by all, it is useful to not just think about thestory of HR but the story of the employees and markets we wish to influence. Itis at the confluence of the two stories that shift and change happens.


Thought leadershipis not always aboutone person.Sometimes it canrepresent acollective. Meaningthat it could arisefrom the cumulativeand synergisticinsights of a team ofindividuals.

BM


Suvro RaychaudhuriController-HR, United Breweries Ltd., Bangalore

Ihad expected a search on patents related to 'Human Resources' on the USPatents official site to throw minimal results. A search from 1976 till date onthe site (http://patft.uspto.gov) show an abysmal 21 results, pretty muchconfined to 'systems' and 'technology' applications in human resources relatedto job assignments, scheduling, HR information systems, etc. Clearly, if one

of the parameters used for measuring 'Thought Leadership' is documented-innovation as through patents, it is difficult to find out 'leadership in thoughts' inthe area of Human Resources. We still use Johari model of 1955, PCMM was a crazesome 12 years back, and barring semantic changes heard in conferences (isn't'rational commitment' linked to Operant Conditioning?).

Behind the sceneIt is challenging to find and measure thought-leadership in an area such as

Human Resources.

The challenge of identifying something as 'thought leadership' lies in the fact thatthe concept itself in a strategic sense has undergone a significant change. Centuriesback, some strategic leader would have 'led a thought' on how to create a 'framework'



In an increasingly complex world, thoughts cannot be 'led' - at the most, it can only beinfluenced and provoked….. this is what the author believes.The article deconstructsthe concept of thought leadership to bring about a different perspective altogether.

De-constructing'Thought Leadership'The beauty of leading a thought in an area of Human Resources, is that it deals with complexbehaviours, an uncountable number of parameters arising out of the fact that organizations today are areflection of the microcosm of the society outside (so everything that impacts society, is bound to impactorganizations inside), yet have very localized 'best-practices' (non-replicable, in most cases).


of protection by creating a robust high-walled, well-garrisoned castle surrounded by an apparentlyimpenetrable moat, situated on high-ground forbetter visibility and battle-position. Subsequent'thought leaders' created under-water castles, motteand bailey castles, timber and stone castles, etc. A fewcenturies down, all these 'leading thoughts' seem tohave faded- out as an antediluvian script (the 'castle'in today's context will be the most identifiable,conspicuous, and therefore vulnerable structure).More and more strategists and tactical operations-experts have realized that formidable thought-leadership today is about enabling agility, situationalownership, surreptitious content-rich invasions andthe sheer ability to keep people in the team who havediverse perspectives (different from others).

Joel Kurtzman's 1994 phrase in the Booz AllenHamilton magazine 'Strategy and Business' is amisnomer today - "Thought Leadership", recognizedas some kind of authority in a specialized field fromwhich expertise is sought after, is a concept difficultto differentiate and acknowledge in an information-loaded and data-streamed world, as often the most'breakthrough' idea is possibly only a stream ofconsciousness put together in a different form, andnot really 'leading' (leave alone sustainablyleading)." In an area of Human Resources that hassubject areas starting from Psychology to Supply-chain, this moment's 'leading a thought' is nextinstant's lagging follower.

What it entailsThe beauty of leading a thought in an area of

Human Resources, is that it deals with complexbehaviours, an uncountable number of parametersarising out of the fact that organizations today are areflection of the microcosm of the society outside(so everything that impacts society, is bound toimpact organizations inside), yet have very localized'best-practices' (non-replicable, in most cases). Forexample, there will possibly be a distant correlationof immigrant population to HR indices in a citysuch as Bangalore which has significantly largenumber of immigrants moving into the city every-day, and a substantial population of that being fromacross-the-border, but resourced for daily house-work, deployed to take care of children, etc. Whereexactly is the 'de-coupling' point in training, forexample (how much optimal training can be given toan employee at cost-to-organization, before he/shemay be deployed to contribute, and bring back avalue that surpasses the cost, in minimal time)? A

stochastic approach, as another example, to find outprobability of employees switching from onecompany to another has its roots in Markovanalysis, but application of that even with largedata-grinding machines (the transition matrix willin general be larger than a 10x10 matrix, even if thestrongest factor-analysis is used to factor in the mostimportant causes of attrition - most HR teams incompanies do not even have SPSS installed on theirmachines!

A perspectiveA few years back, I had the opportunity to delve

into an area of called 'non-linearity' in the context ofworkforce-scheduling and planning - specific toworkforce-intensive organizations as a means tosustainable growth. This was an important topic formy study, considering the fact that whereasautomation can help address this to an extent in themanufacturing side of business, the service-side ofbusiness remains to be workforce-intensive (unlessone wants to be a subject of one of the mostdevastating customer-centric approach as in the'interactive voice response' systems, that claims tohave brought down 'agent deployment' in customerservice). Needless to say that I am still crunching onit - but the point here is that even the 'thought' wasnot leading enough. Why? Non-linearity forms thefoundation of many organizations trying tomaintain 'bloat' (a ratio of a particular hierarchallayer, to the ones below, e.g.,. ratio of managers totheir juniors, or ratio of apex senior management tomid-management, etc.) related to sustainability ofoperations, chain of command, span of control,effective work delegation, and definitely to cost incontext of 'per-employee contribution'. The thoughtis not leading enough because it has its roots in theGolden Ratio of many naturally sustainablestructures and forms (the part of my study was tosee exactly where the ratio is to be applied and howin organizational pyramid structures in order to 1)grow in organizational 'size', without 'shape' beingdistorted 2) maintain optimum employment topeople 3) maximize the number of people at eachlayer, based on defined roles in that layer, and stillnot have personnel budget numbers competing inlinearity with other business numbers like net salesrevenue, etc. The challenge was, and will always be,differences in perspectives and opinions on athought - because in an increasingly complex world,thoughts cannot be 'led' - at the most, it can only beinfluenced and provoked.


The challenge was, and will always be, differences in perspectives and opinions on athought - because in an increasingly complex world, thoughts cannot be 'led' - at the

most, it can only be influenced and provoked.

BM


Prasad KurianHead - Organization Development,

Hindustan Coca-Cola Beverages

How does a thinker make a difference in the world? It is by influencingthe way the doers perceive the world and their place in it! To me, this isthe core of thought leadership in any field - including Human Resources(HR). So, what is paradoxical about thought leadership in HR in India?A paradox occurs when there are multiple opinions (doxa) that exist

alongside (para)- each of which is true - but they appear to contradict one another.

Now, let us look at some of the opinions about thought leadership in HR inIndia.

HR is a field that is rapidly evolving and India is a country that has been growingits GDP at a fast rate over the last decade. Hence, the need for thought leadershipin HR in India seems to be obvious.HR in India has matured over the years. Many organizations have large HRfunctions with multiple specialist verticals within HR. The numbers of HR



Paradox ofthoughtleadership in HR

The article explores the critical need for thought leadership in the domain ofdeveloping an 'Indian approach to Human Resource Management'. It stresses on the importance of thought leadership and lays bare certain paradoxes thatcontinue to exist….


related courses offered at the business schools in India have increased. Thesize of the HR consulting industry in India has also been growing rapidly.There is hardly any original research happening in India on HR relateddomains. HR Consulting in India is mostly at lower end of the value chain.Similarly, while the size of HR departments has increased, they don't havetoo many people who will qualify as 'deep specialists' in HR related domains.There is no consensus on the names of thought leaders in HR in India. Isthere anyone in India who will be accepted as a thought leader in HR bymost of the HR professionals? If yes, would they 'follow' the thought leaderin any manner?

Why variance in opinions?It is this divergence in the opinions about thought leadership in HR in India

that makes it paradoxical. Now, let us look at the importance of thoughtleadership in HR. In our attempt to become 'business aligned' we haveneglected our mandate to provide expert opinion to the business leaders onmatters related to people management. This has led to a situation where HRprofessionals are liked (because they do what they are told to do) and notrespected (because they don't bring in thought leadership) by the businessleaders. I would even say that HR professionals should focus on being'Architects of meaning' in organizations as opposed to focusing only on'becoming Strategic Business Partners'. This is because in the current contextof disruptive change, finding meaning in workis becoming an increasinglyimportant issue in the workplace and assuming adequate expertise& thoughtleadership the HR professionals can intervene effectively in the sense-makingprocess in organizations.

An interesting observationIt is interesting to look at thought leadership in HR from the point of view

of the thought leaders, that is, to examine the primary purpose for which onetries to develop 'thought leadership'. It could make a significant contributionto enhance organization effectiveness and employee engagement by designing,

popularizing and implementinginnovative solutions to the

key people related issues inorganizations. It could beto bring in new dimensionsto the field of HR,enhancing and shaping thefield. Depending on theprimary job of the 'thought

leader' there could be other'less altruistic' possibilities.

For example, in the case of aconsultant, 'thought leadership' is very useful for obtaining new assignmentsand for justifying higher fees. For a senior HR manager within anorganization, a reputation for thought leadership could provide greateropportunities to try out new things and to take up initiatives that involve largeamount of change and resource investment. Of course, for some people,thought leadership could just be a spontaneous act of generosity - giving one'sideas, time, effort and wisdom to help fellow HR professionals!

To me, any sort of leadership, including thought leadership, can't existwithout followers. Hence, to be relevant the thought leadership should focus onthe biggest challenges and opportunities faced by the HR professionals. In thehyper-connected world we are living in the opportunities for and impact forthought leadership is immense.

Organization is a microcosm of the larger society in which it is operatingin. Hence, people management in organizations can benefit immensely if ittakes into account the unique characteristics of the society and nationalculture that it is operating in. India is a country that is blessed with a richphilosophical and cultural tradition. So, one critical need for thoughtleadership is in the domain of developing an 'Indian approach to HumanResource Management'!


It is interesting to look at thought leadership in HR. Itcould make a significant contribution to enhance

organization effectiveness and employee engagement bydesigning, popularizing and implementing innovative

solutions to the key people related issues in organizations.

BM


The term "Thought leadership" is very much in vogue. In fact, the termis not only overused, misused and sometimes abused. People use this asan introductory word in their Twitter or LinkedIn profile to accruefollowers. In Outliers, Malcolm Gladwell mentions "...If you work hardenough and assert yourself, and use your mind and imagination, you

can shape the world to your desires". Is it enough to be a thought leader especiallywhen you are an HR Thought Leader? My answer is "Not Enough".

A thought leader is recognized as an authority in a specialized field. Theirexpertise is sought by many in their fields. Most often they are rewarded for theexpertise they bring to the table. They are visionaries. They get their fanfollowing due to the eminence of their content.

Are all leaders "thought leaders"? Do we need to have thought leaders to runour organizations? Are they easily available? How can one become a thoughtleader? These are few questions that usually plague one's mind when such a topiccrop up.

Do leader versus thought leaderIt will be interesting to understand what differentiates a "do leader" to a

"thought leader". While a "do leader" is more action oriented, a "thought leader" isa visionary. While he gathers his learning from his life experiences, a do leadergathers his learning from his limited professional life. A thought leader isconsidered as a "go-to- individual" for his expertise. While a do leader comes out



Tina Roshini MathewDirector-HR, TP Vision India Pvt. Ltd., Bangalore

The need for "Thought Leaders" will remain irreplaceable and dispensable. However, allleaders are thought leaders and there is no need for that too.What is needed is goodbalance of thought leaders and action-oriented leaders to run our organization.

Thought leadership and beyond


with the plan of action for the identified strategy to getimplemented, a thought leader would communicate theconcepts, challenging others to think, bring novel ideasand provide unique assessments to the plan of actionsidentified. We need both thought leaders and do leadersto create an effective balance.

It is not easy to find thought leaders. Steve Jobs ofApple who redefined the concept of a mobile device, BillGates who gave personal computing a new meaning andMark Zuckerburg who facebooked all of us are some whofall in that category. The names of two HR thoughtleaders that come to my mind are Prof. T V Rao and DaveUlrich

Prof. T V Rao is considered as the Father of IndianHRD along with Dr. Udai Pareek was instrumental insetting up the HR Department for L&T and making it thefirst company in this part of the world to have a dedicatedHR Department. Prof. T V Rao coined the term "HRDScorecard" and gave a different perspective to thefunctioning of HR. It helps to measure how each activityof HR impacts the business. To the CEO or the FinanceHead who is looking at the ROI from HR, what answersuits him best?

Discovering similaritiesMany organizations are unaware of the necessary

roles that need to be played by the HR Department. In thebook, HRD Audit, Prof. T.V Rao presents an evaluation ofthe existing systems, processes, tools, structure, andculture and provides a balanced and comprehensiveexposition of the concept of HRD audit.

In his book, "HR Value Proposition", Dave Ulrichshares how HR can support business by adding value totheir customers, investors, managers and employees. Heclearly defined four key roles of HR: AdministrativeExpert, Employee Champion, Change Agent andStrategic Partner. Many organizations coined the term"Strategic Business Partner" after Dave Ulrich's HRValue Proposition.

Let us try and find if there are any similaritiesbetween the above two leaders. Prof. T V Rao and ProfDave Ulrich are visionaries. They came out with conceptsand processes that set HR in a different path altogether.They got their fan following because of the content theybrought in. They are thought leaders in the true sense.

Not all leaders are thought leaders and it is notrequired to be that way. We need a balance of thoughtleaders and action-oriented leaders to run ourorganization. Visionaries are not enough. We needleaders who can strategize as well as plan and run theshow. If we look deep inside each of our organization, wecan find some individuals who have brought thoughtleadership to the fore front. Some of our business hadbeen created or seeded by them. The opinions mentionedabove are my own and don't represent my employer.


A thought leader is recognized as an authority in a specialized field.Their expertise issought by many in their fields. Most often they are rewarded for the expertise they

bring to the table.They are visionaries.They get their fan following due to theeminence of their content.

BM


Strategy is the starting point for any professional. To be strategic in theway we look at the future, we want to be intimately entwined with ourindustry and the examination of the many things that will impactbusiness as usual in our industry over the next many years.

Being strategic commands, as professionals, we are curious about the future ofour chosen industry. We must be able to look at the present and future of ourindustry with an eye for detecting the impact. This will help us visualize our pathfor the future. We must be curious about what the future will be and all aspects ofour work place that will need to change or develop to achieve the promise of thefuture.

Research conducted by SHRM reveals that there will be significant elements ofchange that will impact all businesses. As we examine our organizations, ouremployees, and our own futures, there are some significant considerations thatare central to our decision making and our strategy development.

Businesses across industries will be looking at expanding into foreign marketsas an opportunity. Our workplaces will be more diverse in every way. We willhave multicultural and multigenerational considerations as a part of our dailyfocus as well as flexibility and a strong preference for excellence in soft skills thatmay have traditionally been sacrificed for results. The future will demand thatbusiness leaders understand how to effectively utilize contingent workers intoproductive supporters of our business activities. We will see more promotionsand leaders emerging locally in our business and we will all need to understand



Nina E. WoodardPresident & Chief "N" Sights Officer,Nina E.Woodard & Associates, U.S.A.

This article gives an altogether new perspective to the meaning of strategy and itsapplication in developing leadership competencies and behaviours. It further delves

on the different aspects of strategy development.

HR Leadershipfor a SustainableFuture


the strategic considerations of engaging andretaining these important business resources.

One of the most important elements of our ownpositioning will be our ability to be strategic in ourapproach is that we continually assess ourenvironment against our own biases and the thingswe believe to be true about the environment inwhich we are operating. If we do not take anaggressive stance on continually reassessing ourframes of reference, we can miss opportunities thatcould drastically impact our success. There aremany reference stories that support this, however,one is the way that baby elephants are trained to betethered to a peg; the lion who has grown up in acage and even when released continues to pace theperimeter of the cage, and the pike syndrome whichleaves the pike dying because he fails to understandthat some of the constraints to access to his foodhave been removed and he starves to death. It iscritical that we allow our curiosity to drive us toreview and reassess the environment to be sure thatwe can stay current.

What's in for HRIt is compelling for HR practitioners to have clear

line of sight to the mission, vision, values of thecompany and ensure that they can be translated intolanguage that is both meaningful and actionable.This vision and mission leads to the strategy and thedrivers of decisions that are made within theorganization. In my estimation there are 7 keycompetencies that a strong HR professional of thefuture will exhibit: Wisdom, Understanding, Aprofessionals ability to employ these competenciesin their day to day activity will support their abilityto not only contribute but to be sustainably valuableto their company.

It must become the HR quest and personalpurpose and lead practitioners to think like theCEO, understanding their perspective on strategy,asking questions of the leadership to be able to alignHR with the business strategy and define the CEO'sexpectation. The future dictates that practitionercuriosity lead to new research focused onunderstanding the future and future impacts on ourindustry and our work. These attributes and adedication to lifelong learning will support the HRprofessional in leading and supporting theirorganizations and themselves into a sustainablefuture.


It must become the HR quest and personal purpose and lead practitioners to think like theCEO, understanding their perspective on strategy, asking questions of the leadership to be able

to align HR with the business strategy and define the CEO's expectation.

BM


During independence theroad linkage for India stoodat a mere 4 lakh kilometresof roads. Out of that only 1lakh 57 thousand kilometres

of roads were developed as motor-able.Now the total roads of India haveincreased to near about to 12 lakhkilometers. Out of this, 5 lakhkilometers are developed and 37% of thetotal roads are motor-able. The countrypresent has approximately 55 NationalHighways which connects the capital,district and important cities of theState. The road network in the countryhas increased to a great extentincreasing the reach which has in turnincreased the demand for responsibledriving. The scenario perfectly demandsfor expertise in handling criticalconditions and situations on the roads.

In an ardent effort to ensureawareness among the drivers and topromulgate the sense of responsibledriving, Tata Steel conducts 'driver'straining programmes' at its steel plant

and its stockyard for the heavy vehiclesdrivers on a regular basis. The heavyvehicles drivers' are imparted trainingat the Transport Parkto ensureexpertise in their trade. The trainingprogrammes undertaken by Tata Steelensure that the drivers equipped withthe best practices operate in the steelplant and the stockyards with safetymeasures and the same practices arefollowed while they are driving out ofthe yard as well. The endeavour of thetraining programmes is to buildprofessional drivers on contract withTata Steel to deliver the best of theservices wherever they areventuringout. The training facilities atTata Steel surely help in deliveringprofessional drivers who would ensureseamless logistic transits.

The training facilities serve as anextension to impart the ethos of thecompany in terms of behaviouralapproach for the customers andproviding 'best-in-class' service. Thedrivers, though on contract, are trained



Tata Steel’s HR Initiative

Bringing Change inthe Driver's Life

ASHISH KUMAR GUPTAChief, Customer Service Division,Tata Steel

Tata Steel's unique programme in Driving Training has turned truck drivers intoresponsible and professional logistic personnel

More than 54,000 driver's trained under the 'Training Programme'

with the philosophy of Tata Steel in dealingwith the customers and developing a sustainingand healthy cordial relationship. Therelationship built-in by these drivers overallalso helps grow the business and the lineage ofthe company.

The training targets in developing a holisticapproach to driving. These trainings aims atbuilding professional drivers with the desiredset of skills like:

Behavioural Practices & stress management Defensive Driving Techniques Traffic Rules and Regulations Emergency handling techniques Maintenance & fuel conservation Pollution and environment Training Course on Safety Clinic forAccident Prone Drivers

The initiative has seen overwhelmingresponse as the numbers for drivers enrollingin the training programmes has increasedconsiderably on a yearly basis. Tata Steel hasimparted its training to more than54,000 driversfrom 2011till July 2013. The training is aimed atnot just imparting knowledge and training onsafe driving measures, but to imbibe the cultureof a professional approach in their daily workroutine. These learning and training processeshelp the huge number of trained drivers at thestockyards of Tata Steel to maintain aprofessional mind set on their overall approachto their gamut of work.

The training process engages various'training kits' which includes films, power-pointpresentations, documents including do's anddon'ts, safety driving tips, bad effect of alcohol,AIDS /HIV awareness, drowsiness and its effectetc. The basic purpose of this is to educatedrivers, enhance their knowledge and give themquality training. The motto is to createawareness so that the instances of roadaccidents should drop down and safety whiledriving the heavy vehicles is maintained. Apartfrom training, HIV/AIDS awareness campaignand free health check-up camps are alsoorganized for these drivers. The issue ofHIV/AIDS has spread like an epidemic amongthe heavy vehicles drivers.The driver's traininginitiative takes care of spreading awarenessamong the drivers and imparts knowledge onthe healthier way of life.

The training for the truckers is scheduled ata designated training hall. Every new driverentering Transport Park with his heavy vehiclehas to undergo through training. The trainingis valid for three months and after training anattended training slip is issued to driver. If thedriver again comes to transport park after threemonths then he has to undergo the trainingagain for safety assurance.

The training programme imparted fromTata Steel is not just restricted to the drivers.Tata Steel ensures the philosophy ofprofessional services is translated through theservices attached to the stockyard as well. Inthe process it also trains personnel in thestockyards. Tata Steel offers the trainingprogrammes to personnel like stock yard in-charge, safety in-charge, field supervisor andfield workers, data entry operator, weigh bridgestaff, crane operator and security personnel aswell.

The testimony of the drivers trained by thetraining centres underscores the efficacy of thetraining programmes. The voices clearlysuggest that the training centres have not onlybeen able to produce efficient heavy vehiclesdrivers but professionals who can deliverservices efficiently.

Gurbir Singh, 42 years old driver, whocompleted his training in January 2013 states,"The training initiative has developed myself asa professional truck driver equipped withexpertise in handling situations in tough roadconditions and to stay focussed on deliveringservices in the long run. The tool kits usedduring the training sessions were extremelyuser friendly which has helped us to learn in amuch simpler manner. Moreover, theorientation on HIV/ AIDS has helped meunderstand the better way to lead my life".

Mandeep Singh, 38 years old driver, istrained under the programme in June 2012. Inhis remarks he said, "Before I had undergonethe training from Tata Steel, I was not aware ofnumerous ways of making driving the heavyvehicles an enjoyable experience. Post thetraining tenure I really enjoy my job in drivingthese heavy trucks and delivering efficiently.Moreover, now I am far better equipped inspeaking to the customers and understands thevalue of a cordial relationship deeply."


The training programmes undertaken by Tata Steel ensure that the driversequipped with the best practices operate in the steel plant and the

stockyards with safety measures and the same practices are followed whilethey are driving out of the yard as well.

Bringing Change in the Driver's Life

BM

What would be yourpersonnel quotient (PQ)for your inclinationtoward continuouslearning attribute, if it

is taken into account? With fancyphrases it is stated that life is full oflearning and each failure andexperience it imparts is a lesson tolearn. 'Success and failure are two sidesof same coin and also 'success comesafter failure' are phrased well so thatyou affix it on wall in your home or atwork-desk in office to keep tellingyourself view failure in line withsuccess and not to give up even during ahard time after failure. But, when a coinwith sides of success/failure is tossed,given a preference, success is expectedto happen possibly all the time, thoughit is known fact that failure is alsolikely to happen by equal probability incontradiction to mere expectation. Inreal world it is not much appreciated toexpect a failure in place of success atfirst, whatsoever the determinationlevel or learning attitude may be foundin an individual. Even Thomas Alva

Edison, the well-known inventor, hadquoted "I have not failed, but I havefound the 10000 ways that won't work".Edison had been comfortable seeing10000 ways rather than failure. It is thefact that no one would want to work forfailure to happen. It is apparent thatneither Thomas Alva Edison did noryou and I would do. The instances ofvarious successful inventions resultedthrough experimentation that had nospecific objective to achieve at the startof experiment, but finally yieldedfruitful invention are not linked here.

We do accommodate 'failure' as anuninvited by-product; but not as an endproduct that we would like to have as aresult for any of our action. This isagain because success seems to be allabout moving from failure to failurewithout losing enthusiasm. In simplewords, we destine ourselves to successas a destination to reach or continualjourney to pursue rather than doing sowith failure. It is not often asked with alight heart what might happen if Iwould end with failure. It is rather



Life Skills

Revisiting ‘determination’in success & failure

KASI SPEngineer - Supply Chain Management, Coimbatore

Success is a favorable result in line with determination. If determination is to berewarded, then moving toward an objective even failure after failure needs biggerreward than a success deserves in a same row.

Whether it is ofaccidental orintentional nature,failure is seen as'fatal', a lack ofdiscipline or anincompetency tocope with forwhatever reasons itmay be.

heavily termed 'risk mitigation' and failing to do thesame is negligence or ignorance. We see 'failure' asfatal, though we console ourselves by saying failureis a stepping stone to success. It sounds, we arealways much bothered about end result in place oflearning or knowing something with the actions weget engaged in; except the cases like laboratoryexperimentation and field research done forobservation. With learning attitude of this extent,now, what would be your real PQ if you revisited theassessment mentioned earlier? Learning isunlearning and relearning too, either in same ordifferent way, over and over again. It is certainly not'Insanity'. Insanity is when doing mathematicalcalculation in note pad, adding numerical digit 1 to 1again for summation, and arithmetically expectingthe correct output to be any numerical numberother than 2.

It is no harm that we tend to have a goal andbetter results for any of our action in life time. But,the question comes here why it sounds unpleasantwhen failure is experienced by anyone whilepursuing different course of life. It is the evident

fact that success possibly can have many routes to bemore successful; failure whereas would havenumerous directions as well that might take one tonew horizon, something would not have come trueotherwise. Learning out of those numerous routes,might have something valuable to pursue, though itis not heard very often for the reason that it is not asuccessful chapter. Why we tend to stick around'Success' alone. We place appreciation, do honor onpeople those at success front; we try learn and followtheir secret to success. How many times we engagewith people those who has had failed and failed andfailed repeatedly, and still failing but yet continuingto try toward something. Do we engage with thosepeople of long failure history for acknowledgingthem or listening to their learning through failurethey experienced or determination demonstrated?We perceive, probably those failed individuals arenot fit enough to be in the marathon competition ofroutine world, or they do hardly have anything to beheard by people, until unless they identifythemselves with a success badge on them. We are

often interested in looking at the pages of failure,provided that it would lead us to success. But inreality of fast phased competitive world, we do notrender focus on analyzing such lengthy failurehistory, whereas we prefer to have proven solutionthat can be followed for success.

Whether it is of accidental or intentional nature,failure is seen as 'fatal', a lack of discipline or anincompetency to cope with for whatever reasons itmay be. Failure gets due attention only if it drew asuccess in succession. We have a predeterminedoutlook toward everything we pursue, not onlycorporate issues even personal affairs too to a broadextent. Indeed, in a performance appraisal drivenworld that is accountable to its shareholders /stakeholders, one may hardly have a scope for muchexperimentation without a success formula. In themidst of all such hurdles, those who do find a newpath and succeed upon are celebrated as 'changemaker', 'out-of-box thinker', 'success guru' and so on;others failed to catch up are left behind. 'Stay ahead','be on the competitive edge', 'grapple for successes'and 'stay away from failure as long as possible', arefew self-learning so as to be 'on the go' with rest ofthe competitive world that looks determined to be inconstant touch with 'SUCCESS' ever. Nevertheless,failure also carries determination as an inherentelement, and its presence is demonstrated to agreater magnitude than the success does, whensomeone would fail and fail and fail repeatedlywithout losing focus on endeavors. The other aspectof incompetency as a constraint for not achievingsuccess or continuing to fail is not brought into thisdiscussion here. So 'SUCCESS' that alone is not acompetitive price or recognition paid towardlearning acquired or determination demonstrated.Success is a favorable result in line withdetermination.

If determination is to be rewarded, then movingtoward an objective even failure after failure needsbigger reward than a success deserves in a samerow. Hence, it is not sheer determination indisconnect that does serve purpose of present world.In a business context, with due business objective atplace to achieve, determination among workforcealigned with business expectations and workforcemoving in the direction of organizational objectiveare insisted for. In personal context, for anyindividual that has interrelated dependence within asocietal frame, determination again aligned withharmony of the dependence group is mostly soughtafter. In short form any DETERMINATION towardsa SMART (Specific Measurable Attainable Realisticand Time bound) goal will be highly appreciated asto become realistic too. To conclude on this, bothbusiness context and personal context needs torevisit DETERMINATION what is meant by, when itis perceived as a key trait of an individual to beaccounted into key performance indicator.Determination as such is known to have zerodependence on factors yielding to surrender,regardless of constraints. In a broader sense ofbusiness context, if determination has to beassessed on a relative scale of definite measure orqualitative mode needs to be answered yet.

Business Manager December 201338BM

Revisiting ‘determination’ in success & failure

Leadership is not a quality. It is anexperience that an individual who hasundergone personal growth andtransformation radiates. This is thesimple truth. There are so many books

these days about leadership and how it is animportant part of making an organizationsuccessful. There are so many leadership Guruswho teach and train people in organizations todevelop leadership. Yet when we look at anorganization, be it business, government servicesor in the area of social services, true leaders arerare. A true leader is a person who is ready totake responsibilities consciously. He is ready tohandle life consciously and he is not constantlydependent on the past. A true leader is a personwho is ask to respond spontaneously tosituations. He is fresh in his ideas andcontinuously keeps himself alive.

A small story : There was once a great warbetween two countries. On a hot afternoon, a manin civilian clothes was riding past a small groupof tired soldiers digging a huge pit, doingseemingly impossible task. The group leader wasshouting orders and threatening punishment ifthe work was not completed within the hour. Theman riding the horse stopped and asked. Sir, why

can't you help them yourself ? The group leaderreplied I am the leader. The men do as I tell them.If you feel so strongly, go help them! The manworked with the soldiers till the job was finished!Before leaving, he congratulated the soldiers fortheir work, and approaching the group leadersaid, the next time your status prevents you fromsupporting your people, inform your higherauthorities and I will provide a more permanentsolution.

The group leader was completely surprised.Only now he realized that the man was in fact thearmy general. Most of us achieve the status of aleader, but not the state. State is totally differentfrom status. Status comes from society. When Iuse the word "State" I mean our inner space. Ourinner space should be mature enough to handlethe responsibility, which we assume. Each one ofus is a potential leader. The quality of leadershiparises from one's ability to take responsibility fora particular group with tremendous awarenessand maturity. Leadership is simply a consciouschoice made by an individual to act out of deepsensitivity and awareness to one's situation andsurrounding. Then automatically, the inner spacewill start transforming and send out the rightwords and actions.



DR. RAJVEER CHOUDHARY, C.O.O., Kajaria Ceramics

Most of us achieve the status of a leader, but not thestate. State is totally different from status.

Leadership : It is State, not Status

BM


Diversity & Inclusion

Conducting diversityaudit & survey

SIMRAN OBEROI, Sr. Knowledge Consultant, SHRM India

The focus should also be on ensuring that there is anelement of trust about the fact that this informationwill be assessed in seriousness and action steps takenaccordingly.

HR Audits are becoming the needof the hour. An audit is typicallyconducted to identify the

baseline or evaluate the currentsituation within the organization withrespect to a certain area or sub-process. Hence in case of Diversity, suchan audit is important to understandwhere the organization stands and thedistance it needs to coverwith respectto its goals in this area.If one is conducting a comparativesurvey, then this helps to assess one'ssituation against the market practice.Planning and implementing a diversityaudit is an essential process. Since it isin the nascent stages as yet in India,here are a few key pointers on what tobear in mind when conducting this.

The audit should cover all groupsof employees and as many HRprocesses of the organization as it can,since diversity impacts all people andbusiness related elements. Also,theaudit could focus on both qualitativeand quantitative data.

Defining the purpose is critical -Apart from assessing current situation,the audit may have multiple purposessuch as gauging employee feedback,assessing business impact of diversityinterventions ( ROI), future course ofaction, deviation from the overallstrategy if any and so on. At this stage,it is also important to define howfrequently you want to conduct theaudit.Typically once a year would besuitable.

Team - The team that willconduct and analyse the results of thesurvey should be created. In this teamnot only is it important to havemembers from all levels of theorganization it should also coverdemographic and locationaldifferences. Representation from as

many segments as is practicallypossible should be the aim.

Questionnaire - The questionnaire isof paramount importance, since thedesign of this will determine the qualityof responses that the team will receive,from the audit. It will also determinehow easy or hard it will be to analysethe data and connect it to businessimpact. Hence spending time and efforton this is important. Some aspects thatthis should capture for the diversityaudit to be successful, are as follows-

Alignment of manager behaviour toorganization's diversity goals

Benefits and Workplace flexibility (e.g. leave, flexi-timings etc)

Infrastructure ( e.g. for new mothers,differently abled employees etc)

Employer Brand and Website

Employee feedback on peopleprocesses that foster inclusion

Employee feedback ondiversity policy'sapplication and changesneeded

Coverage of diversityelements across HR processes( e.g. recruitment, training,performance management) toindicate a strong strategy.

Feedback on the grievanceredressal procedure in the event ofharassment on diversity grounds.

Communication plan - Thecommunication plan before, duringand after the audit will drive the auditresults. Before the survey's launchemphasising on open and frankparticipation is essential. It is also criticalto let the employees know that theirresponses will remain confidential.Thefocus should also be on ensuring that

there is an element of trust about thefact that this information will beassessed in seriousness and actionsteps taken accordingly.Organizations that realize the positiveand negative impact of diversity, willput insignificant effort to diversify theirworkforce and also ensure that aregular tracking mechanism is in placeto measure their success, in a tangibleand intangible manner.The reason forsame is that investments in diversityinterventions will need to be justifiedsince it is often difficult to link thefinancial results that diversity can have.Hence, an audit or survey, is not onlyintrospective but also a critical buy-intool to have the top managementaligned to the thought process.Diversity interventions and approacheswill need the support of the leadership,which will typically come when theysee the business connect.That is whatan audit provides in a succinct yetpertinent manner. BM


Anil Kaushik Management Expert -HR & IR

Q. Our problem is that employees all of a sudden withoutany notice to the management resorted to strike on a simpleissue of not allowing one person to leave the factory early bygiving short leave pass. The strike continued for 13 days.Management wants to deduct their 8 days wages apart fromno pay for strike period. Our consultant has advised todeduct 8 days wages on the basis of general notice given toworkers to report back for duty and call off the strike. Whatis your expert opinion?

Ans. There is a provision in the Payment of Wages Actwhich empowers the employer to deduct such amountnot exceeding workmen’s wages for 8 days where 10 ormore persons acting in concert absent themselveswithout due notice as may be required under the termsof employment and without reasonable cause. In yourmatter it appears that neither there is a reasonablecause nor a notice given by workmen. It appears to be aflash strike. In such case deduction of amount notexceeding 8 days wages can be done only in accordancewith the rules made by the Government in this respect.Where a statute is penal in character it must be strictlyconstrued and followed. The substantial compliance insuch case will not be sufficient before invoking thepenal provision. It is required that individual notice tothe workman should be sent asking for theirexplanation before deducting the wages. Moreoverprinciples of natural justice also demand the sameprocess to be followed. In your case a general noticeasking workers to call off the strike and report for dutywill not take the place of a show cause notice required tobe sent individually for the purpose. Mad. HC in thecase of General Manager India Cements Ltd. 1998 (1)LLJ 584 has also held such deduction of 8 days wages asillegal in the absence of giving individual notices toworkmen. Your consultant’s advice on the matter doesnot confirm the requirements of law and principles ofnatural justice.

Q. Ours is a small industry employing only 40 workmen.Workers are unionised and are in a habit of pressurizing themanagement as and when they need to get even theirunreasonable demands accepted. This time they havedemanded for salary increase of Rs. 5000 which is notpossible for us to accept. Workers resorted to go-slow, thensabotaged the machines and went on strike. We declared lockout. Now workers have filed a claim under Payment ofWages Act against us for payment of wages of lock outperiod. Is such a case maintainable?

Ans. As you have narrated the facts, it appears that

your lock out is legal and justified because of theirearlier actions of go-slow, sabotage and strike. It issettled law that payment of wages authority has alimited jurisdiction under the Act to decide claims ofwages under Sec. 15 arising out of illegal deductionsand delay. Authority can’t unduly expand itsjurisdiction. The matters which are beyond controversyor indisputable or reasonabally clear can only bedecided by him. It has so been held by Mysore HC in thecase of Manager Codialabil Press, AIR 1963 Mysore 128.Your matter relates to Industrial Dispute of lock out.This has to be adjudicated under ID Act only whetherthe lock out is legal or not. The legality of the lock out orstrike or lay off can’t be decided by the authority underPayment of Wages Act. The AP HC has also in the caseof Vishakhapattnam Port Trust case, AIR 1969 AP 200held in the same direction. So prima facie such claim ofworkers for wages of lock out period is notmaintainable under the Payment of Wages Act unlessthe legality of the lock out is decided by the LabourCourt under ID Act.

Q. I have been told by some one that in all disciplinarymatters preliminary enquiry is a must and without holdingsuch enquiry, management can’t conduct regular enquiry. Iwant to know the difference between the two and is itmandatory to hold preliminary enquiry in all cases?

Ans. The difference between the disciplinary regularenquiry and preliminary enquiry is that disciplinaryenquiry is held to enquire whether the charges leveledagainst the employee are true and established. On suchfindings the employee may be punished as per rules /standing orders of the organisation. On the other handthe purpose of preliminary enquiry is to find outwhether there is sufficient justification for charging anemployee with certain misconducts. Preliminaryenquiry does not result into punishment but onlyprepares a ground for issuance of charge sheet andprossibility of holding regular enquiry. The objective ofpreliminary enquiry is to see whether a prima facie caseexists for issuing the charge sheet. Calcutta HC in thecase of Krishna Nagar City Co-operative Bank Ltd. 2007(114) FLR 731 has also held in the same direction.

Preliminary enquiry is not must in all cases and itdepends on your rules and regulations of theorganisation. If your rules state the necessity ofholding preliminary enquiry in all cases before issuinga charge sheet then you have to follow the rules but ifyour rules are silent on this point then you need not to

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


conduct preliminary enquiry in a formal way. You canalso issue charge sheet without formal preliminaryenquiry if you are satified that reasons exist against theemployee who has committed misconducts. But youcan’t straight away dismiss or punish an employee onthe basis of preliminary enquiry alone. Guj. HC in thecase of Bhagwanbhai M. Patel caes dt. 2008 LLR 139 hasalso held that after full regular enquiry the preliminaryenquiry looses its importance. The non supply of thereport of preliminary enquiry will also not vitiate theenquiry report as prepared by the EO after regularenquiry.

Q. Our one employee got injured while on duty andunfortunately expired even after we provided him the best ofthe class medical treatment. Management incurred lakhs ofrupees on this account. After his death we appointed his sonin his place. We want to know that are we still liable to paythe compensation to his family members?

Ans. Yes! The liability to pay compensation underEmployees Compensation Act is independent and hasnothing to do with medical expenses you incurred uponhis treatment and the appointment of his son in hisplace. The law does not provide any such exemptionfrom the liability of paying compensation to theemployer who gives employment to the kin of thedeceased. Even if you enter into an agreement orcontract with his son or family members agreeing to forgive the compensation and surrender their right, suchagreement will not be held valid. Any such agreementor contract is prohibited under sec. 17 and 28 of the ECAct. It can be easily inferred from the objectives andprovisions of the act that inspite of compassionateappointment of a dependent by the employer, thestatutory responsibility for payment of compensationunder the EC Act can’t be treated as discharged. TheJharkhand HC in the case GM M/s. B.C.C.L. Dhanbadvs Smt. Dukhani Manjhian 2008 (116) FLR 770 has alsoheld in the same direction.

Q. Can absence from duty without leave be treated as breakin service for the purpose of Payment of Gratuity?

Ans. No! Sec. 2-A (1) of Payment of Gratuity Actprovides that every service rendered by the employeeshall be deemed as continuous service for the periodeven if there is interruption on account of absencefrom the duty without leave except when there is abreak of service under orders passed by themanagement as per rules and regulations or certifiedstanding orders of the establishment. Merely becausean employee remained absent from duty without leavecan’t be treated as break in service automatically. TheAP HC in the case of Kothari Industrial Corporation1998 (1) CLR 235 has held that merely because anemployee is absent without obtaining leave, for whichthe punishment is inflicted by the employer would, byitself, not bring to an end the continuity of service ofthe employee. Mere absence cannot be said to result inbreak of continuity of service for the purpose of thePayment of Gratuity Act. When an employee is coveredby provisions of section 2-A(a), the question of counting

the actual working days in respect of him does notarise. Karnataka HC in the case of Karnataka StateRoad Transport Corporation Bangalore, Rural DivisionBangalore vs. Dy. Labour Commissioner and theappellate authority 2012 LLR 263 has also held thatcontinuous service under gratuity act will be presumedin absence of notice of break by employer.

Q. We are not much clear on the issue of domestic enquiry.We want to know that when the enquiry is conducted againstan employee, in which language enquiry should beconducted. Our standing orders are certified in english andour all appointment letters, employment procedure andother correspondence with employees are also all in english.

Ans. The language of standing orders or appointmentletters have no effect on the language to be used in thedomestic enquiry. It depends on the facts andcircumstances of each case. The purpose and objectiveof using language in any enquiry is to make theemployee comfortable in understanding as to what hasbeen written. An enquiry can’t be held to be conductedimproperly because it was held in english and noobjection was raised by the employee as held by BombayHC in the case of Shashikant M Sable, 2008 (119) FLR537. It also depends on the procedure laid down in thecertified standing orders or service rules of theorganisation. Where it was required to ask for choice ofthe language to be used in the enquiry and EO did notgive the choice from the workman, enquiry wasdeclared vitiated as held by the Bom. HC in the case ofNandini Mehta, 2004 LLR 111. So it is always advisableto ask the workman before start of the demosticenquiry as to in which language he would be able tounderstand the contents of the enquiry and EO shoulduse that language which is understood by workman.

Q. Workers have complained to the Labour Department that they have been threatened by the management oftermination of services if they join the union and sign thepapers for registration of the union. The authority hasissued us a notice to explain why management should not beprosecuted for committing unfair labour practice. What thelaw says?

Ans. Sec. 25T of ID Act prohibits the committance ofany unfair labour practice by employer and union. Sec.25U provides punishment for such offence. The acts ofunfair labour practice have been defined in Vth scheduleof ID Act. Point 1 (a) of part one of the schedulespecifies threatening workmen with discharge ordismissal if they join a trade union as an act of unfairlabour practice on the part of the employer. To get outof this prosecution process, you need to substantiatethat neither you have threatned the workmen norterminated the services of any one on this account. TheSC in the case of Hindustan Lever Ltd. vs Ashok Vishnu1995 LLR 953 has also held that even a threat ofdischarge or dismissal of a workman for joining theunion will amount to unfair labour practice. In case youfail to satisfy the authority, prosecution may belaunched against you on the complaint of the workersin this regard.

Business Manager December 201342Readers are invited to ask for Solutions of their Labour Problems through e-mail - [email protected]

BM

Government Notifications



A number of complaints are received by the organization onnon-extension of social security benefits in the form providentfund, pension and insurance as envisaged under the Employees’Provident Funds and Miscellaneous Provisions Act, 1952 andSchemes framed there under especially to the casual,contractual and outsourced employees working in differentestablishments, Government Departments, Undertakings andAutonomous bodies, both Central and State. Accordingly, thevery purpose of this social legislation is defeated.

2. The word employee has been defined to mean any personwho is employed for wages in any kind of work, manual orotherwise, in or in connection with the work of anestablishment and who gets his wages directly or indirectlyfrom the employer, and includes any person employed by orthrough a contractor in or in connection with the work of theestablishment. The Act does not differentiate between casual,contractual and regular employees.

3. Various Government Departments, Undertakings andAutonomous bodies, both Central and State, outsource theactivities like watch-ward, housekeeping, date-entry etc. todifferent agencies and contractors and the persons engaged bysuch agencies and contractors to execute the above activitiesare not extended due benefits of provident fund, pension andinsurance. This increases the number of grievances to theorganization.

4. Paragraph 30(3) of the Employees’ Provident FundsScheme, 1952 provides that it shall be the responsibility of theprincipal employer to pay both the contribution payable byhimself in respect of the employees directly employed by himand also in respect of the employees employed by or through acontractor and also administrative charges. This is notenforced in true spirit by various Government Departments,Undertakings and Autonomous bodies, both Central and State.Wherever enforced, there is no proper scrutiny at the time ofthe payment of their bills as to whether the agencies andcontractors are depositing contributions due from them underthe Act and the Schemes framed thereunder which iscommensurate with the wages paid to such out sourced staff.

5. Instances have come to notice that the placement agenciesand security agencies, which provide guards and otherpersonnel to Government Departments, Undertakings andAutonomous Bodies often take employer’s contribution on fullwages from these employers and then bifurcate the wages ofthe personnel provided by them in to basic wages and variousother allowances which do not form part of basic wages toevade the provident fund. This diversion of residual employer’scontribution tantamount to pilfering of provident fund money.Thus Governments Departments, Undertakings andAutonomous Bodies, which settle the periodic bill of agenciesand contractors, unwillingly become a party to this pilferage.

6. Time has come to work on such issues of concern and toconverse and inform these Government Departments,Undertakings and Autonomous Bodies about their role while

Employees’ Provident Fund Organisation(Ministry of Labour, Govt. Of India)

Bhavishya Nidhi Bhawan, 14- Bhikaji Cama Place,New Delhi – 110066

No.C-III/110001/4/3(71)Misc./2013/DL/12802 Date : 08.10.2013

To

All Regional P.F. CommissionersIn-Charge of Regional / Sub Regional Offices

Subject: Compliance under the EPF & MP Act, 1952 in respect of the employees engaged by or through contractors.

engaging the various agencies and contractors and while settlingtheir monthly bills with respect to deployment of such personnel.

7. In this background, all the Regional Provident FundCommissioners In-Charge of Regional/Sub Regional Officesare advised to start a dialogue with the GovernmentDepartments, Undertakings and Autonomous Bodiesfunctioning under your jurisdiction about their duties andresponsibilities while engaging personnel for watch-ward,housekeeping, data-entry etc. though various agencies andcontractors to check such pilferage of provident fund monies.The Officers-In-Charge are also advised to collect the details ofpersonnel engaged through the various agencies andcontractors from these Government Departments,Undertakings and Autonomous Bodies and check with therecords available in their own offices about such agencies andcontractors. Wherever pilfering of provident fund money isnoticed, immediate action shall be initiated against the erringagencies and contractors to check such unhealthy practicesharming the interest of the workers.

8. The Regional Provident Fund Commissioner In-Charge ofRegional /Sub Regional Offices are advised to issue notices tothe Government Departments, Undertakings and AutonomousBodies functioning under your jurisdiction for arresting suchunfair practices, which various agencies and contractorsadopt while supplying personnel. Enforcement Officers maybe detailed to educate these Government Departments,Undertakings and Autonomous Bodies about the duties andresponsibilities of the principal employer. They shall also beadvised to ensure that:

a) all the agencies and contractors to whom the work isoutsourced are covered under the act;

b) all the personnel supplied by the agencies andcontractors are extended benefits of provident fund etc.; and

c) all the personnel engaged get eligible benefitscommensurate to the wages they get.

9. The Government Departments, Undertakings andAutonomous Bodies may be advised to watch the compliancestatus of various agencies and contractors to the provisions ofthe Act and the Schemes framed thereunder on the‘establishment search option’ on the official website of EPFOwww.epfindia.com.

10. The specimens of draft letters to (a) variousGovernment Departments/ Undertakings/AutonomousBodies and (b) Big establishments already covered anddeploying more than 500 employees/workers are enclosedherewith for use at your end.

11. A presentation on the role of Principal Employers andContractors which has been attempted at this end is enclosedherewith for wide publicity for this purpose.

Yours faithfully,(P.K. Udgata)

Additional C.P.F.C. (Compliance)



Revised Minimum Wagesin Bihar

w.e.f. 1.10.2013 to 31.3.2014

Un- Semi- Skilled Highly ClericalAll skilled skilled skilledScheduledEmployments 176.00 184.00 225.00 273.00 195.00

Revised Minimum Wagesin Madhya Pradesh

w.e.f. 1.10.2013 to 31.3.2014

Category Basic VDA Total

Unskilled 118.07 94.23 212.30

Semi-Skilled 123.08 94.23 217.31

Skilled 128.25 94.23 223.08

AllScheduledEmployments

Revised Minimum Wagesin Jharkhand

w.e.f. 1.10.2013 to 31.3.2014


Unskilled 127.00 40.17 167.17

Semi-Skilled 134.00 40.17 174.17

Skilled 163.00 49.97 212.97

Highly Skilled 198.00 60.41 258.41

Clerical 140.00 40.17 180.17

All 77

Scheduled

Employments

Revised Minimum Wagesin Chattisgarh

w.e.f. 1.10.2013 to 31.3.2014


Unskilled 132.00 66.57 198.57

Semi-Skilled 139.00 66.57 205.57

Skilled 149.00 66.57 215.57

All

Scheduled

Employments

G.S.R. 667(E). - Whereas the draft of certain rules furtherto amend the Employees' State Insurance (Central) Rules, 1950,were published as required by sub-section (1) of Section 95 ofthe Employees' State Insurance Act, 1948 (34 of 1948), videnotification of the Government of India in the Ministry ofLabour and Employment, number G.S.R. 458(E), dated the 3rdJuly, 2013, in the Gazette of India, Extraordinary, Part II,Section 3, Sub-section (i), dated the 3rd July, 2013, invitingobjections and suggestions from all persons likely to beaffected thereby before the expiry of the period of thirty daysfrom the date on which the copies of thirty days from the dateon which the copies of the Gazette of India, in which the saidnotification was published, were made available to the public;

And whereas, the copies of the said Gazette were made aavailable to the public on 3rd July, 2013;

And whereas no objection or suggestion has been received

from any person in this regard;

Now, therefore, in exercise of the powers conferred bySection 95 of the Employees' State Insurance Act, 1948 (34 of1948), the Central Government, after consultation with theEmployees' State Insurance Corporation, hereby makes thefollowing rules further to amend the Employees' StateInsurance (Central) Rules, 1950, namely:-

1. (1) These rules may be called the Employees' StateInsurance (Central) Amendment Rules, 2013.

(2) They shall come into force on the date of theirpublication in the Official Gazette.

2. In the Employees' State Insurance (Central) Rules, 1950,in rule 56-A, for the words "rupees two thousand five hundred",the words "rupees five thousand" shall be substituted.

Arun Kumar Sinha, Addl. Secy.

The Industrial Employment(Standing Orders) Punjab

(Haryana Amendment) Rules,2013

6th August, 2013

NOTIFICATION

No. 11/4/2012-4 Lab.- In exercise of power conferred byclause (a) and (b) of sub-section (2) of section 15 of theIndustrial Employment (Standing Orders) Act, 1946(Central Act 20 of 1946) and with reference of HaryanaGovernment, Labour and Employment Department,Notification No. 11/4-2012-4 Lab. Dated the 10th July, 2012,the Governor of Haryana hereby makes the following rulesfurther to amend the Industrial Employment (StandingOrders) Punjab Rules, 1949, namely:-

1. These rules may be called The Industrial Employment(Standing Orders) Punjab (Haryana Amendment) Rules, 2013.

2. In the Industrial Employment (Standing Orders)Punjab Rules, 1949, as applicable to the State of Haryana(hereinafter called the said rules), after rule 2, the followingrule shall be inserted, namely:

"2-A. In Schedule to the Act, after item 10, the followingitem shall be inserted, namely:-

"10-A. Age of Superannuation of a workman".

3. In the said rules, in Schedule 1, in model standingorders, after clause 17, the following clause shall beinserted, namely:-

"17-A. Age of Superannuation.- The age of retirement orsuperannuation of a workman shall be as may be agreedupon between the employer and the workman under anagreement or as specified in a settlement or award which isbinding on both the workman and the employer. Where thereis no such agreed age, retirement or superannuation shall beon completion or fifty eight years of age by the workman."

P.K. Gupta, Additional Chief Secretaryto Government

Haryana Labour Department

Employees' State Insurance (Central) Amendment Rules, 2013NOTIFICATION

No. S-38012/01/2013-SS-I New Delhi, 1.10.2013

Rate Per day

Rate Per day

Rate Per day

Rate Per day

No. N-12/13/2/2010-P&D.- Whereas certain draft regulations further to amend the Employees' State Insurance (General)Regulations, 1950, were published as required under sub-section (1) of section 97 of the Employees' State Insurance Act, 1948 (34 of1948), in the Gazette of India, Part III, Section 4, dated 23rd February, 2013 for inviting objections and suggestions from all personslikely to be affected thereby till the expiry of the period of thirty days from the date on which the copies of the Gazette of India inwhich the said notification was published, were made available to the public;

And whereas, the copies of the said Gazette were made a available to the public on 23rd February, 2013;

And whereas no objection or suggestion has been received from any person in this regard;

Now, therefore, in exercise of the powers conferred by Section 97 of the Employees' State Insurance Act, 1948, the Employees' StateInsurance Corporation, hereby makes the following regulations further to amend the Employees' State Insurance (General)Regulations, 1950, namely:-

(1) These regulations may be called the Employees' State Insurance (General) (Amendment) Regulations, 2013.

(2) They shall come into force from 1st June, 2013.

(3) In the Employees' State Insurance (General) Regulations, 1950;

1. In regulation 76-B, the words, “Rs. 5.00 per day" Shall be substituted with the words, "Rs. 10.00 per day" and the words, "Rs. 30,000"shall be substituted with the words, "Rs. 60,000";

2. the following new regulation 110 shall be inserted, namely:-

"Regulation 110. Procedure on implementation of Information Technology (IT) Roll Out.-

Notwithstanding anything contained in these Regulations, wherever, "on-line system" of functioning has been introduced, theregistration of factory/establishment and employees, filing of contributions, generations of challans, payment of contributions,submission and processing of claims for benefits and all other related procedures under the Act and all Rules and Regulations madethereunder, shall be submitted/made on-line, with necessary digital signatures, wherever required, under these regulations, as maybe specified by the Director General from time to time."

Jose Cherian, Insurance Commissioner




Un Skilled Semi-Skilled Semi-Skilled Skilled Skilled Highly Skilled Staff Staff Staff(i) (ii) (I) (II) (i) (ii) (iii)

282.76 288.53 292.38 300.07 308.73 324.11 293.34 299.11 312.96All 43

Scheduled

Employments

Revised Minimum Wages in Chandigarh, w.e.f. 1.10.2013 to 31.3.2014

Employees' State Insurance (General) (Amendment) Regulations, 2013NOTIFICATION

New Delhi, the 29th April, 2013

No. 11/4/2012-4Lab.- In exercise of power conferred by clause (a) and (b) of sub-section (2) of section 15 of the IndustrialEmployment (Standing Orders) Act, 1946 (Central Act 20 of 1946) and with reference of Haryana Government, Labour andEmployment Department, notification No. 11/4/2012-4Lab. Dated the 10th July, 2012, the Governor of Haryana hereby makes thefollowing rules further to amend the Industrial Employment (Standing Orders) Punjab Rules, 1949, namely:-

1. These rules may be called the Industrial Employment (Standing Orders) Punjab (Haryana Amendment) Rules, 2013.

2. In the Industrial Employment (Standing Orders) Punjab Rules, 1949, as applicable to the State of Haryana (hereinafter called thesaid rules), after rule 2, the following rule shall be inserted, namely:-

"2A. In Schedule to the Act, after item 10, the following item shall be inserted, namely:-

"10A. Age of Superannuation of a workman.

3. In the said rules, in Schedule 1, in model standing orders, after clause 17, the following clause shall be inserted, namely:-

"17A. Age of Superannuation.- The age of retirement or superannuation of a workman shall be as may be agreed upon betweenthe employer and the workman under an agreement or as specified in a settlement or award which is binding on both the workmanand the employer. Where there is no such agreed age, retirement or superannuation shall be on completion of fifty eight years of ageby the workman."

P.K. GuptaAdditional Chief Secretary to Government

Haryana Labour Department

Industrial Employment (Standing Orders) Punjab(Haryana Amendment) Rules, 2013

Rate Per day


Recent Important JudgmentsLatest Judgments

AbandonmentAbsence from service in the beginning may

be a misconduct, but when absence is for a verylong period, it amounts to voluntaryabandonment of service, which eventuallyresults in the bonds of service coming to an end.

Abandonment or relinquishment of service isalways a question of intention, and normally, suchan intention cannot be attributed to an employeewithout adequate evidence in that behalf.

Vijay S. Sathaye vs. Indian Airlines Ltd. & Ors. 2013III CLR 612 (S.C.)

When the workman pleads that she wasterminated on 1.10.90 whereas managementproved that she worked till 31.12.90, her case ofillegal termination stands no where. It is amatter of abandonment of job due to transfer ofher husband to a different place.

Once the categorical case of the workman was thather services were terminated on 1.10.1990 whereas theManagement has proved on record that she hadworked till 31.12.1990, all other pleas raised by theworkman remain without any basis. When the facts ofthe case reveal that the workman voluntarily stoppedcoming to the place of work due to transfer of herhusband to a different place, it proves abandonment onthe part of the employee making him/her not entitledto any relief and issuing of any notice by the employerto the workman is not required.

Smt. Kankoo vs. The Judge, Industrial Tribunal-cum-Labour Court, Udaipur & Ors. 2013 LLR 1201;

2013 III CLR 808 (Raj.H.C.)

ApprenticeApprentice is not a workman under I.D. Act. The

Apprentices Act precludes application of any otherlabour laws. Labour Court has no jurisdiction toadjudicate on the dispute of apprentice.

State of Harayana and Another vs. Satish Kumarand Another. 2013 (139) FLR 228 (P&H H.C.)

AwardAward of reinstatement with continuity of

service means conferring the benefits ofseniority promotion etc. and post retirement

benefits but not bonus/ex-gratia or leave whichare linked with physical attendance andperformance.

When the workman is awarded reinstatementwith continuity in service without back-wages, thecontinuity in service means to confer the benefits ofcontinuous service, seniority, promotion and postretirement benefits etc. but not the bonus/ex-gratiaor earning of leave which are linked with physicalattendance and performance as the workman hadnot performed his active duty though on account oftermination of his services by the Management.

Bhubaneshwar Mallick vs. CMD, CCL and Others.2013 LLR 1187 (Jhar. H.C.)

CompensationCompensation of Rs. 50,000/- instead of

reinstatement and back wages to a daily wagerwho was illegally terminated after 5 years ofservice will be proper.

Compensation in lieu of reinstatement would beappropriate relief to a daily wager who was firsttime engaged in 1983 and worked till 1988 and theaward of reinstatement has been of 1991 hence thepurpose of reinstatement with back-wages would befrustrated in 2013.

Union of India vs. Presiding Officer, CentralGovernment Industrial Tribunal-cum-Labour Court,

Kanpur and Another. 2013 LLR 1138 (All. H.C.)

Contractual AppointmentContractual appointment of the petitioner

cannot be regularised by the management ofthe bank when the conditions for regularisationin the circulars as issued by the managementwere not fulfilled by the petitioner.

Ajay Kumar Dwivedi vs. State Bank of India andOthers. 2013 (138) FLR 1002 (All. H.C.)

Contract LabourWrit petition seeking regularisation of

35,000 contractual workers is liable to bequashed with cost when the union failed toshow as to how such contract labour were

appointed against vacant sanctioned posts asqualified persons. No relief given.

Writ Petition regarding regularisation of 35,000contractual workers filed by the DESU MazdoorSangh of Trade Union is liable to be dismissed withRs. 25,000 cost since the petitioner failed to show as tohow such contractual employees were appointed asduly qualified persons in non-vacant sanctionedposts. Para 53 of the judgment of Supreme Courtcannot even be relied upon since the petitioners areonly contractual employees and hence no reliefcould be given.

Sh. Balbir Singh vs. Govt. of NCT of Delhi & Ors.2013 LLR 1178 (Delhi H.C.)

Court PowersOrder of labour court setting aside the

punishment of dismissal and substitutingpenalty of stopage of three increments whereworkman was found guilty of serious charge ofindulging in indecent conduct with a femaleemployee is not proper and liable to be quashed.

Dismissal justified for such misconduct.

Modification of punishment by the Labour Courtwhile exercising its powers under section 11A of theIndustrial Disputes Act in reducing punishment ofremoval to stoppage of three annual increments isliable to be set aside since the workman has beenguilty of serious charges for indulging in indecentconduct with a female employee who was cleaningthe ladies bathroom.

Rajasthan Tourism Development Corporation Ltd.,Jaipur vs. Presiding Officer, Labour Court, Jaipur

and Another. 2013 (138) FLR 918 (Raj. H.C.)

Modification of the punishment of dismissalby the Labour Court in exercising powers undersection 11A of the Industrial Disputes Act,being contrary to be actual facts, is liable to bequashed.

Hindustan Chemicals Company vs. MansinghMangalram Verma. 2013 (138) FLR 879 (Guj. H.C.)

With the insertion of S. 11-A in theIndustrial Disputes Act, the IndustrialTribunals are invested with judicial power toexamine the gravity of misconduct committedby workman and in case it comes to theconclusion that extreme punishment ofdismissal or discharge is not commensuratewith the misconduct proved in the enquiry, itmay scale down the punishment or refer thematter back to the Tribunal/Labour Court tohear the parties and impose lesser punishmentto the delinquent workman.

Sanjai Kumar Mohan Nigam S/o. Late Shri B.N.Nigam vs. Labour Court, P.O. Labour Court,

Dehradun & Ors. 2013 III CLR 749 (Uttar. H.C.)

Date of BirthFor determination of date of birth opinion of

the medical officer alone would not besufficient.

Rectification of date of birth of an employee withjustifiable supporting reasons will be allowed,moreso when he has applied much before the date ofhis retirement and also the Management did notrebut the submission as made by the employee.

Determination of age of a person is highlyspecialised job and several methods are to befollowed, as such, opinion of the Medical Officerdetermining the age would not be sufficient.

Sukumar Dawn vs. Coal India Limited and Others.2013 (138) FLR 860 (Cal. H.C.)

Disciplinary ProceedingsCourts cannot assume and usurp the

function of disciplinary authority. If it is feltthat punishment is shockinglydisproportionate, penalty needs to be set asideand matter should be left to the disciplinaryauthority to take a decision afresh. It is not forthe court to substitute its decision byprescribing the quantum of punishment andmatter should be remitted back to disciplinaryauthority to pass appropriate order.

Disciplinary Authority or the appellate authorityin appeal has to decide the nature of punishment tobe given to the delinquent employee keeping in viewthe seriousness of the misconduct conducted by him.Courts cannot assume and usurp the function of theDisciplinary Authority. Where penalty imposedappears to be shockingly disproportionate to thenature of misconduct, such penalty order needs to beset aside and matter should be left to thedisciplinary/appellate authority to take a decisionafresh. It is not for the court to substitute it's decisionby prescribing the quantum of punishment.

Interference permissible only when punishmentimposed by the disciplinary authority is found to beshocking to conscience of the court. Wherepunishment is set aside, court should remit back thematter to disciplinary authority or the appellateauthority with direction to pass appropriate order.When the co-delinquent employee accepts thecharges indicating remorse with unqualifiedapology, lesser punishment to him would be justified.

Lucknow K. Gramin Bank (Now Allahabad U.P.Gramin Bank) and Another vs. Rajendra Singh.

2013 (139) FLR 290 (S.C.)

During enquiry, statements of witnesses notto be recorded in the presence of one another.Relying on such evidence will make the enquiryvitiated and order of removal from service onthe basis of such enquiry is set aside.

Non-supply of relevant documents despitedemand raised by the delinquent employee isviolative of principles of natural justice, resultinginto proceedings recorded to be declared erroneous,liable to be quashed. Reliance on the statements ofthe delinquent employee, recorded during policecustody is erroneous. Statement of one witness ifaccepted by other witness while recording hisevidence by the Enquiry officer cannot be treated asa deposition on oath by other witness, liable to be




quashed. Statement of witnesses recorded byEnquiry Officer in the presence of other witnessesis not acceptable in evidence. Statements ofwitnesses have to be recorded separately and not inthe presence of one another.

V. Nagaiah vs. The Industrial Tribunal, rep. by itsPresiding Officer and Another. 2013 LLR 1168 (A.P. H.C.)

When the employer received the enquiryreport wherein the employee was exonerated,he is bound to issue show cause to employee andif disagree with the findings of the E.O., shouldpass speaking order. In such matter De novoenquiry is not justified.

Respondent directed de novo enquiry despitereceiving the report of the earlier Enquiry Officerwhereby the petitioner was exonerated, the HighCourt, in a writ petition, directed that the petitioner beprovided with a copy of the enquiry report and givenshow-cause notice as well as personal hearing and thedisciplinary authority should pass a speaking order.

Chandra Roop vs. Airport Authority of India & Ors.2013 LLR 1182 (Delhi H.C.)

Allowing passengers without ticket in bus isa serious misconduct. Workman cannotcomplain of violation of principles of naturaljustice in the enquiry when he did notparticipate inspite of repeated notices.

Misappropriation of employer's revenue is aserious misconduct attracting dismissal/removalfrom service of the delinquent employee. If thepetitioner did not participate in the enquiry inspiteof repeated notices issued to him or opportunitiesgranted to him, he is not justified to complain laterthat he was not given proper opportunity to cross-examine the Management witnesses there was noviolation of principles of natural justice. Penalty ofremoval from service of a Bus Conductor is notdisproportionate when the serious charge ofcarrying passengers without issuing, tickets to hemthereby pocketing the money for himself, causingfinancial loss to the Government, stands provedagainst him.

Ram Sagar Chaudhary vs. State of U. P. and Others.2013 LLR 1197 (All. H.C.)

In the absence of any specific rule,disciplinary proceedings cannot be allowed tocontinue after superannuation and payment ofretiral benefits cannot be with-held.

There is absence of any provision in the StaffRegulation to continue a disciplinary proceedingafter the employee is superannuated whereas fromthe definition clause, it is clear that an employeeafter being superannuated, the relationship of anemployer and employee ceases and even if adisciplinary proceeding under the regulation,continuation of a disciplinary proceeding aftersuperannuation of an employee cannot be held to belegal and valid. Law is, therefore, well settled that inthe absence of any specific rule, it would not bepermissible to continue the disciplinaryproceedings even if initiated during the period ofservice of an employee, after his superannuation

and on that ground, payment of the retiral benefitsto the superannuated employee cannot be withheldon the ground that if found guilty, money is to berecovered from him.

Sarat Chandra Das vs. Orissa State WarehousingCorporation. 2013 (138) FLR 982 (Orissa H.C.)

In the exercise of its writ jurisdiction, theHigh Court does not act as an appellate Court.Its jurisdiction is circumscribed by limits ofjudicial review to correct errors leading tomanifest injustice or violation of principles ofnatural justice. The doing of any act prejudicialto the interest of the Bank or gross negligenceor negligence involving or likely to involve thebank in serious loss, is gross misconduct.

Pranab Kumar Bhuyan vs. United Bank or India &Ors. 2013 III CLR 661 (Cal. H.C.)

DismissalDismissal justified for indulging in violence

by killing the gate chowkidar.

Dismissal of the workmen for indulging inviolence by killing the gate chowkidar anddamaging the property has rightly not beeninterfered by the Labour Court and also denying toexercise its powers under section 11A of theIndustrial Disputes Act since the charges have beenof grave and serious nature. When there isinordinate delay i.e., more than month for seeking toset aside the ex-parte Award, the Labour Court andthe High Court would not allow the same.

Workmen of Naharhabi Tea Estate & Ors. vs.Management of Naharhabi Tea Estate & Anr. 2013

LLR 1146 (Gau. H.C.)

Employees’ CompensationAct

It is for the commissioner to examine andsatisfy himself that whether the death of thedeceased occured due to to ischemic heartproblem was the result of service/workingconditions, before accepting the death as accidentarising out of and in the course of employment.

While awarding compensation under theEmployees' Compensation Act, 1923, theCommissioner ought to have satisfied himself fullythat the disease (ischemic heart condition) due towhich the employee has expired, had discoveredwhile he was actually serving with the employer ordisease developed as a consequence of any stress orstrain of his employment with the employer.

Dredging Corporation of India Ltd. vs. P. K.Bhattacherjee. 2013 LLR 1121 (S.C.)

While patrolling in the forest, the dead body ofthe guard was traced, the CompensationCommissioner has rightly awarded compensationto the dependents since the incident has arisen inthe course of employment.

Conservator of Forests, Nagpur and Another vs.Kusumtal and Others. 2013 LLR 1221 (Bom. H.C.)



In this social welfare legislation, when thebread-earner of the family, dies of an accidentduring the course of his employment, his legalrepresentatives are entitled to compensation asper parameters laid down by the law, even iflesser amount is claimed.

Ravindera S/o Vinayak Navghare, Pimpri, Pune vs.Maroti S/o Bansi Chavan & Ors. 2013 III CLR 576

(Bom. H.C.)

Whether the parents of a young employeeare his "dependants" or not, can be decided onlywith the help of necessary oral anddocumentary evidence (if any).

Ramji S/o Jadhav Kahalkar & Anr. vs.Commissioner for Workmen's Compensation/LabourCourt, Bhandara & Ors. 2013 III CLR 579 (Bom. H.C.)

Employees’ Provident FundProvident fund dues will have the priority of

payment of contribution over other debtswhereas the dues will not only pertain to EPFcontributions but also the interest and damagesas recoverable from the establishment.

Maharashtra State Co-op Bank Ltd. vs. KannadSahakari Sakhar Karkhana Ltd. & Ors. 2013 LLR

1229 (S.C.)

In the absence of proof of employment ofless than 20 persons on the basis of attendanceand wages records, coverage of theestablishment by the authority under EPF Actis justified.

Coverage of an establishment under theEmployees' Provident Funds and MiscellaneousProvisions Act is justified when the Managementfails to produce the attendance or payment of wagesrecords to prove employment of less than 20persons. An establishment is liable to be coveredunder the Employees' Provident Funds andMiscellaneous Provisions Act, 1952 by virtue ofnotification issued by the Central Governmentunder section 1(3) (b) of the Act when the activitiescarried by it are manufacturing the finished goodsfrom the raw material purchased and selling thesame even only to wholesalers.

Ajmeri Gold Fingers through its Proprietor,Surendra Chotiram Keshwani vs. The Assistant

Provident Fund Commissioner & Another. 2013 LLR1127 (Bom. H.C.)

Under section 7A proceedings when neitherthe copy of the report of the enforcementofficer was furnished to employer nor he wasallowed to cross examine the officer in respectof his report, such proceedings are liable to bequashed.

Denial of proper opportunity to the employer forconducting cross-examination of the EnforcementOfficer or the Assistant Provident FundCommissioner or any other officer, in respect ofreport prepared by such an officer which is to bemade basis of the proceedings to be conducted bythe EPF Authority under section 7A of theEmployees' Provident Funds and Miscellaneous

Provisions Act, 1952, is violation of principles ofnatural justice, resulting into setting aside suchproceedings conducted by the EPF Authority.Proceedings conducted by the EPF Authority areliable to be quashed on the ground of non-furnishing of copy of the report, which is the basisof the proceedings, particularly containing findingadverse to the employer.

M/s Faze Three Limited vs. Employees' ProvidentFund Organisation. 2013 LLR 1171 (Guj. H.C.)

Order of the E.P.F. Authority under section7A of the Act is liable to be quashed when thereport of the officer on which the order wasbased, was not given to the employer or itsadvocate.

The order of the Assistant Commissioner,Employees' Provident Fund under section 7A isrightly quashed by the High Court because the copyof the report by the Enforcement Officer being basisof the impugned order has not been supplied to thepetitioner. Admittedly, the appropriate and alternateremedy for filing appeal against the order of theprovident fund authority is provided before the EPFAppellate Tribunal but it would not mean that theHigh Court cannot entertain the writ petition filedby the petitioner (employer) when there is glaringirregularity on the part of the concerned authorityunder the Employees' Provident Funds &Miscellaneous Provisions Act.

Samir Diamond Manufacturing Pvt. Ltd. vs.Assistant Commissioner, Employees' Provident Fund

& Anr. 2013 LLR 1190 (Guj. H.C.)

Waiver of the amount of pre-deposit undersection 7-O of E.P.F. Act for going into appeal iswith in the discretionary power of the appelatetribunal. High Court will not interfere in writpetition.

Waiver of the amount of pre-deposit, as providedin section 7-O of the Act, on filing an appeal beforethe Employees' Provident Fund Appellate Tribunalagainst the order of the EPF Authority, is purely amatter coming within the discretionary jurisdictionof the Statutory tribunal as it is only an exemptionconsidering the special circumstances prevailing ofthe individual case.

Interference under Article 226 of theConstitution of India, is not at all warranted in thematter of an interim order issued by the Statutorytribunal. The EPF Authority has to calculate theamount of contributions by excluding the personswho were drawing monthly emoluments above Rs.6,500 at the time of their joining in service for thepurpose of computing the amount towards pre-deposit for filing appeal.

Lakeshore Hospital and Reserach Centre Ltd. vs.Employees' Provident Fund Appellate Tribunal and

Another. 2013 LLR 1204 (Ker. H.C.)

While examining the 'functional integrality'between different units/establishments, onehas to consider the issues of finance,employment of common employees/staff and asto whether two units are kept distinct and/or




integrated and whether one unit can functionindependently, without any help or assistancefrom another unit/establishment.

Sumitra Nursing Home vs. Employees ProvidentFund Appellate Tribunal, New Delhi and Anr. 2013

III CLR 685 (All. H.C.)

Canteen allowance paid in cash to allemployees in terms of settlement will bedeemed as part of basic wage for the purpose ofP.F. contributions.

Whirpool of India Ltd. vs. Regional Provident FundCommissioner & Ors. 2013 III CLR 795 (Delhi H.C.)

E.S.I.Order passed by E.S.I. Authority is liable to

be set aside when the documents on which basiscontributions have been determined were notsupplied to the employer.

Non-supply of documents, on the basis of which,contributions have been determined by the ESIAuthority, before passing final order is violative ofprinciples of natural justice. An order passed by theESI Authority or employees' Insurance Courtwithout supply of relevant documents to the partyconcerned or providing proper opportunity forinspection of the documents or hearing the partiesby giving due opportunities, is liable to be set asidebeing a non-speaking and unreasoned order.

Supreme Industries Limited vs. E.S.I. Corporationetc. 2013 LLR 1183 (Bom. H.C.)

Order after 8 years of issuing show causenotice under section 45A of E.S.I. Act is liableto be set aside in the absence of explanation ofsuch inordinate delay.

An order passed under section 45A of theEmployees' State Insurance Act, 1948 by the ESIAuthority after 8 years of issuance of show causenotice for not depositing the ESI contributions asper provisions of the Act, without any explanationof such an inordinate delay, is liable to be set asideas it suffers from laches.

Hotel Guru Pvt. Ltd., Chennai-600 008 vs. The DeputyDirector, Regional Office, Employees' State Insurance

Corporation, Chennai & Another. 2013 LLR 1188(Mad. H.C.)

When two or more units are to be clubbedtogether as one single unit, all the factors suchas functional integrality, common ownership ofunits, common workforce withinterchangeability and the fact that one cannotsurvive without the other unit, are to beestablished with convincing evidence.

Regional Director, Madurai & Anr. vs. TowerReadymades, Nagercoil represented by its Managing

Partner, A.R. Sirajudeen. 2013 III CLR 740 (Mad. H.C.)

It is well-established principle that primaryresponsibility to pay contributions, interestand/or damages is on the immediate employer,and in case he fails, the principal employer isequally responsible for payment ofcontributions, interest and/or damages.

Sri Manimaran vs. ISRO Satellite Centre & Anr. 2013III CLR 774 (Kar. H.C.)

Factories ActIf the contents of a complaint for violation of

Factories Act are relevant but the documentsannexed to the complaint under section 2 (d) ofthe Cr. P. C. do not constitute the part of thecomplaint, the complaint as filed, being vagueas such, the revision petition filed by theaccused is accepted.

S.F. J. Vaz, Manager, Zuari Industries Ltd. andAnother vs. State of Goa. 2013 (138) FLR 847 (Bom.

H.C.)

Fixed Term EmploymentSection 2 (oo) (bb) of the Industrial Disputes

Act, 1947 is applicable only in the cases wherethe appointment of the employee is for fixedterm and for specific work only and nototherwise even in case of daily-wager/temporary/casual, etc.

Kiran Goswami vs. The Labour Court, Ambala andOthers. 2013 LLR 1143 (P&H H.C.)

GratuityGratuity cannot be a forfeited for providing

incorrect date of birth and working for twoadditional years.

Payment of gratuity on superannuation ofemployee cannot be forfeited merely that he hasgiven incorrect date of birth and worked for twoadditional years since such an alleged misconduct onthe part of an employee is not stipulated in section 4(6) of the Payment of Gratuity Act hence the HighCourt directed for release of the amount of gratuity.An employer is under obligation under section 7 (3)of the Payment of Gratuity Act of pay the gratuity toa superannuated employee within 30 days from datebecomes stable and as such withholding the samewould attract interest on delayed payment asstipulated by section 7 (3) of the Act.

Ashok vs. Vidarbha Youth Welfare Society & Anr.2013 LLR 1184; 2013(139) FLR 336 (Bom. H.C.)

Whenever, there is a serious charge ofmisappropriation of funds against an employee,a disciplinary enquiry must be held beforeinflicting any penalty/punishment against himand to pass an order for forfeiture of hisgratuity.

Madura Coats (P) Ltd., Bangalore vs. M. RameshBabu, Bangalore & Ors. 2013 III CLR 644 (Bom.

H.C.)

Industrial DisputeIndustrial dispute in respect of transfer of

undertaking cannot be adjudicated properly inthe absence of clear terms of reference.

The 'industrial dispute' as referred for adjudicationpertains to section 25FF of the Industrial Disputes Act



for transfer of undertaking but there cannot beproper adjudication in the absence of clear terms ofreference and, as such, the Apex Court directed theappropriate government to make the order referenceafresh for effective adjudication.

Tata Iron & Steel Co. Ltd. vs. State of Jharkhand &Ors. 2013 LLR 1157; 2013 III CLR 596 (S.C.)

When the workman straight awayapproached the labour court without moving toconciliation officer, such disputes are rightlydismissed by labour court having not compliedwith section 2-A(2) of I.D. Act.

Even assuming that the present industrialdisputes came to be filed for redressal based on thedismissal of the petitioners from service by themanagement under section 2-A (2) of the IndustrialDisputes Act, it should have been raised by followingthe procedure contemplated under the said sectionand complying the conditions imposed therein. Sub-clause (2) says that notwithstanding anythingcontained in section 10, any workman who wasdischarged, dismissed, retrenched or whose servicewas terminated may raise such an industrialdispute by making an application directly to theLabour Court or to the Tribunal for adjudication ofsuch dispute after expiry of 45 days from the date ofhis making an application to the conciliation officerof the appropriate Government for conciliation ofthe dispute.

The main provision provided in the Act was tothe effect that the dispute or difference between theworkmen and the employer in respect of such casesshall be deemed to be an industrial dispute,notwithstanding that no other workman nor unionof workman was a party to the dispute, theprocedure for raising such disputes before theLabour Court was to approach the ConciliationOfficer at the first instance, and on failure ofconciliation, to approach the Labour Court with theindustrial dispute for adjudication. In this case,there is nothing to show that the petitioners, at thefirst instance, approached the Conciliation Officerfor conciliation. They seem to have straight awayapproached the Labour Court with the industrialdisputes. The same, may at times, be construed to bea mere irregularity.

The fact that the petitioners after having beendenied employment in 1975 had waited for 29 yearsand thereafter, belatedly approached the LabourCourt with the industrial disputes will show that thepetitioners are guilty of laches in approaching theLabour Court for redressal. On that score also, theaward of the Labour Court dismissing theindustrial disputes has got to be confirmed and nointerference can be made by this Court.

The Labour Court is fully justified in holding thatthe Industrial Disputes raised in the I.Ds concernedin this writ petition cannot be raised under section 2-A (2) and hence, the industrial disputes are liable tobe dismissed.

Jaganathan and others vs. Presiding Officer, LabourCourt, Coimbatore and another. 2013 (139) FLR 195

(Mad. H.C.)

Industrial Disputes ActFor retrenchment of workman becoming

surplus due to computerisation of departmentwill be illegal in the absence of notice undersection 9A of the I.D. Act prior to retrenchment.

When an employer retrenches workman becauseof rationalisation (in this case for computerisationin department), it is imperative on the part of anemployer to give a 'notice of change' as stipulated bysection 9A of the Industrial Disputes Act and, assuch, in the absence of such notice, theretrenchment is held to be illegal hence the Award ofthe Labour Court is set aside.

Pradeep Kumar Gupta vs. P.O., Labour Court andAnother. 2013 LLR 1192; 2013 (139) FLR 375 (Delhi

H.C.)

Workman need not to prove continuousservice for claiming benefit under section 25Gof I.D. Act. Reinstatement justified to theworkman who was retrenched but not workedfor 240 days.

Reinstatement, as awarded by the IndustrialTribunal, would not be interfered by the High Courtin the absence of plea with regard to extent ofservice as rendered by the workman or notproducing any material to show that the workmanhas abandoned his job on his own accord.

State of Himachal Pradesh and Another vs. HardyalSingh. 2013 LLR 1206 (H.P. H.C.)

When the Service Rules applicable prior torevised rules have been more beneficial andadopted by the Management, the notice undersection 9A under Industrial Disputes Act willnot be imperative.

Assam Carbon Products Ltd. vs. State of WestBengal and Others. 2013 LLR 1218 (Cal. H.C.)

Provisions of section 33(2)(b) of I.D. Act aremandatory and employer cannot disobey it.

An employer-petitioner cannot plead that it didnot known about the law prevailing on the date ofdismissal of a workman as nobody can pleadignorance of law.The provisions of section 33 (2) (b)of the Industrial Disputes Act, 1947 are mandatoryand an employer cannot disobey it.

Dismissal of services of an employee duringpendency of an industrial dispute without applyingfor approval of the court in which the mainindustrial dispute is pending is liable to be quashedbeing illegal. Awarding reinstatement with fullback-wages by the Industrial Court to the workmanis justified when the dismissal of services of theworkman has been held to be illegal.

Mapusa Municipal Council vs. Smt. Krupa Hallikar,Goa and Others. 2013 (138) FLR 815 (Bom. H.C.)

Office bearer of the union is competent torepresent workman in case before court undersection 36 of I.D. Act.

Workman as well as other person office bearers ofunion are authorized to represent. Provision ofsection 36 of I.D. Act is not only exhaustive but only




supplemental to any other lawful mode ofrepresentation of parties. It should conform toconditions prescribed thereunder. No justificationto refuse representation of workman by said officebearer of union when both petitioner and workmanauthorised him. Impugned order refusing officebearer of union to represent workman in question isset aside.

Workman, Man Dutt Rajak vs. State of Jharakahndand Others. 2013 (139) FLR 352 (Jhar. H.C.)

In respect of transfer of undertakings, itneeds to be emphasized that the award isenforceable against the employer, or his heirs,successors or assignees in respect of theestablishment to which the dispute relates.

It should be the purchase of the whole ofbusiness, being carried on at the same place asbefore, without any substantial break in time incarrying on same business. It is not necessarythat the business purchased is a going concernat the time of sale transaction.

Valley Estate, Kodagu & Ors. vs. Rosamma Major(Smt.) & Ors. 2013 III CLR 637 (Kar. H.C.)

It is to be noted that only scope of enquirybefore the Tribunal exercising jurisdiction u/s.33 of the I.D. Act, is to decide whether the banimposed on the employer by this section, shouldbe lifted or maintained by granting or refusingthe approval sought for by the employer.

K. Kuberan vs. Management of Express Publications(Madurai) Ltd., Chennai & Anr. 2013 III CLR 732

(Mad. H.C.)

Interim ReliefWhen the employer is not in a position to

rebut about unemployment of a workmanduring the adjudication and proceedingspending before the High Court, the workmanwill be entitled to monthly wages as last drawnas long as proceedings before the High Courtwould continue.

M/s Canning Farms Pvt. Ltd. and Another vs. Stateof W.B. and Others. 2013 (138) FLR 867 (Cal. H.C.)

Minimum WagesHigh Court will not interfere merely with the

draft notification in regard to minimum wages.

Anamalai Ambedkar Thotta Makkal Sangam vs.State of Tamil Naddu and Another. 2013 (138) FLR

904 (Mad. H.C.)

MRTU & PULP ACtThe transfer order is only an incident of

service and passed in the interest ofadministrative exigencies and unless shown tobe an outcome of malafide exercise of power andviolative of statutory provisions, the transferorders are subject to judicial interference.

S. P. Iyer vs. Press Trust of India Limited & Anr.2013 III CLR 585 (Bom. H.C.)

MisconductEntering forcibly in principal’s office in

drunken condition in school is a seriousmisconduct. Confession with apology would notabsolve from punishment.

Act of entering forcibly in the office of Principalof the School in drunken condition by the Clerk of the school, though admitted by him with an unconditional apology, would not absolve himfrom punishment, as such as act is a seriousmisconduct.

When the charge has been admitted by thedelinquent employee with unconditional apology,imposition of penalty upon the delinquent employeewithout conducting regular enquiry is not illegal.

Removal from service of Clerk who had entered forcibly in the office of Principal of theSchool in drunken condition, is justified keeping inview place of work i. e. a school, a temple oflearning, not a commercial establishment, where asingular act of this nature would have seriousimplications.

Principle of proportionality of punishment,depends upon several factors like nature and gravityof charge, past conduct of the charged employee,previous penality, if any, nature of duties,responsibility of delinquent, place of work,surrounding circumstances, etc.

Principle of disproportionality of thepunishment to the nature of misconduct comes intoplay when punishment is found to be outrageouslydisproportionate, totally unreasonable, arbitrary,shocking the conscience of the Court etc. keeping inview the nature of charge.

Penalty of removal from service is notdisproportionate keeping in view the seriousness ofthe misconduct committed by the delinquentemployee who had entered forcibly in the office ofthe Principal of the School in a fully drunken state.

Deputy Commissioner, KVS & Ors. vs. J. Hussain.2013 LLR 1174 (S.C.)

OvertimeAn employee performing duty on paid

holiday (s)-Saturday being five day week isentitled to claim overtime.

Any kind of discrimination between the two setof homogenous employees is impermissible in law.

An order of the court is liable to be set asidewhen it has to cause discrimination between the twosets of homogenous employees.

Municipal Workers' Union, Ludhianan vs.Municipal Corporation, Ludhiana. 2013 LLR 1145

(P&H H.C.)

ProbationerEven if the probationer continues after his

expiry of probationary period, he cannot claimautomatic confirmation.



It is prerogative of the employer to decide ifservices of the probationer are satisfactory and notby the Court. No show cause notice is required to beserved upon a probationer before terminating hisservices.

A probationer cannot claim automaticconfirmation of his probationary services even ifhe continues to perform his duty after expiry ofprobationary period in the absence of any expresscondition of his services in this respect in hisemployment contract i.e. his appointment letter.

Until a probationer is issued a confirmationletter in respect of his services, he would be deemedto be on probation irrespective of expiry of hisprobationary period.

When adequacy of performance of allprobationers including petitioner was reviewed by aCommittee, plea of the petitioner that he has beendiscriminated is not justified.

Amarnath Menokodath Remanan vs. TheChairman, National Institute of Jewellery Design

and Ors. 2013 LLR 1125 (Delhi H.C.)

PunishmentThe Division Bench of High Court upheld the

judgment of learned Single Judge in settingaside award of the Industrial Tribunal byupholding the punishment as imposed upon thepetitioner for putting his increments downsince he had consumed intoxicating material,instigated the mob and damaged the bus.

Alkhabhai Manjibhai Gameti vs. DivisionalDirector.

2013 LLR 1166 (Guj. H.C.)

ReferenceNeither employer nor workman can

claim any right to be heard before making areference of dispute of adjudication by theGovernment.

The issue as to whether the employers arerequired to be given an opportunity of hearingbefore reference is issued is no longer res integra.This issue has been decided by the Division Benchof this Court in India Explosive Ltd. FertilizerDivision Panki, Kanpur vs. State of U. P. and Ors.wherein it has been held that neither the employernor the workman can claim any right to be heardbefore an order of reference is made either initiallyor on second thoughts.

The order passed by the State Governmentreferring a dispute is an administrative order. No lisis involved between the parties at this stage andsubsequently no notice was required to be issued tothe employer for hearing him before making or

refusing to make a reference.

No notice or opportunity of hearing wasrequired to be given to the petitioner by the StateGovernment before making a reference undersection 4K of the U.P. Industrial Disputes Act.

Hamdard (WAQF) Laboratories vs. State of UP. andOrs. 2013 LLR 1230 (All. H.C.)

RegularisationInspite of having vacancies, getting work

done through part time sweepers and notmaking appointments would be unfair labourpractice. Regularisation of part time sweepersagainst the vacancies justified.

The employer/petitioner being instrumentalityof the State is under an obligation to fill up the post,lying vacant since long, when the work was of a fulltime workman, instead of getting the work donethrough part time employees.

Getting the work done from a part-time employeeby an employer being to an instrumentality ofthe State, when the work is of a full time workman, is a clear case of unfair labour practice.Awarding regularization by the Labour Court to aworkman is justified when the workman was part-time employee as a Sweeper since long, workingagainst a regular vacant post. Regularisation of theservices of the workman should be made effectivefrom the date of award and not from the date ofreference i. e. prospectively and not be doneretrospectively.

U.P.S.R.T. Corporation, Kanpur and Another vs.Roadways Karamchari Sanyukt Parishad, U.P.,

Kanpur and Others. 2013 LLR 1140 (All. H.C.)

ResignationA resignation can be withdrawn by the

employee before its acceptance iscommunicated to him by the employer.

Conditional acceptance of a resignation hasno force till the conditions are confirmed oraccepted by the concerned employee.

Rakesh Rai vs. M/s. National Aviation Company ofIndia, New Delhi. 2013 LLR 1129 (Bom. H.C.)

RetrenchmentReinstatement proper when daily rated lab

assistant was terminated in violation of section25F of I.D. Act.

No interference is called for by the SupremeCourt in reinstatement of the workman withoutback-wages who has completed more than 240 days'service but no retrenchment compensation, as




stipulated by section 25F of the IndustrialDisputes Act, was paid to him at the time of histermination.

Director of Horticulture and Another vs. H. A.Kumar. 2013 LLR 1162 (S.C.)

Sexual HarassmentHigh Court will not interfere in the

decision of the Management in compulsoryretirement of the petitioner from servicehaving found guilty of sexual harassment ofa female employee.

S. Raju Aiyer vs. Jawaharlal Nehru University.2013 LLR 1213 (Delhi H.C.)

TerminationNon disclosure of information sought by

the employer at the time of employmentamounts to suppression of materialinformation. Job achieved through mis-representing facts or playing fraud cannot besustained. Termination held valid forsuppressing material information.

Devendra Kumar vs. State of Uttaranchal andOthers. 2013 (139) FLR 284 (S.C.)

TransferWhen transfer of tour executive was made

from Delhi to Bangalore due toadministrative exigencies to deal withtourists influx cannot be said to be mafa-fide.

On failure to comply with transfer order, theManagement dismissed the petitioner fromservice after holding of fair and proper enquiryand the Labour Court upheld the decision of theManagement since the transfer of petitioner wasneither mala-fide nor punitive.

Transfer of an employee from Delhi toBangalore, when stipulated in the contract ofemployment, cannot be vitiated by the LabourCourt or the High Court when it is in accordancewith the terms and conditions as stipulated in thecontract of employment.

The High Court, in its jurisdiction pertainingto an Award of the Labour Court will not readjudicate upon the questions of facts decided bythe industrial adjudicator unless thecircumstances indicate that the Labour Court hassnatched jurisdiction, not vested in it or that it isperverse and violative of principles of naturaljustice.

Rajni Manchanda vs. P.O., Labour Court-I andAnother. 2013 LLR 1122 (Delhi H.C.)

Unfair Labour PracticeWhen the dismissal of a charged person is

not in good faith but colourable exercise of

the right of the employer, it will amount tounfair labour practice.

Any employed person in industry, eithertemporary or probationer, will be a workmanunder section 2 (s) of the Industrial Disputes Actunless he is under excluded category.

In a reference for adjudication by the Labour Court, the matter pertaining to employer-employee relation should be decided as apreliminary issue.

K.N. Rajappan vs. The Presiding Officer andOthers.

2013 LLR 1208 (Ker. H.C.)

U.P. Industrial Disputes ActReinstatement proper when illegally

terminated in violation of section 6N of theAct.

The finding recorded by the IndustrialTribunal that the workmen had worked for morethan 240 days in a calendar year, is onappreciation of fact which has been affirmed bythe High Court hence this finding does not sufferfrom any error so as to call for interference bythis Court.

Once the finding recorded by the IndustrialTribunal, as affirmed by the High Court,is sustained, the natural consequence is that the orders of termination passed against theworkmen are illegal and are rightly held to be soby the Industrial Tribunal and affirmed by theHigh Court.

State of Uttaranchal and Another vs. Shiv Ram.2013 LLR 1161 (S.C.)

WorkmanWhen the main duties were to attend the

break-down and occasionally called to attend onadministrative work, such person cannot be outof the definition of workman under I.D. Act.

When the main duties of an employee were toattend the break-down in the factory, performingsome administrative functions by him,occasionally and sporadically, definition of the'workman' as defined under section 2 (s) of theIndustrial Disputes Act, 1947.

Termination of services of an employee on theground of unauthorised absence withoutconducting departmental enquiry or withoutcompliance of section 25F of the IndustrialDisputes Act is unsustainable.

When the workman has been awardedreinstatement with back-wages, grant of 100%back-wages is not automatic in each case as itdepends on various factors like length of service,mode of recruitment, subsequent facts andcircumstances, etc.

Chandrakant G. Khagram vs. Manager.2013 LLR 1149 (Guj. H.C.)



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

BM

Every dark cloud has the silver lining and,therefore, it should be accepted as thewake-up call. Industrialists would doimmense good to their ilk and society ifthey stand up against irrational laws of

Quota-permit Raj on the one hand and on the otherhand more importantly comply with the laws withdue care and diligence. They must also be aware ofthe fact that no tears are to be shed even by thoseofficials and politicians who have been thriving onthe ill-gotten money from those, who are actuallygenerating employment and wealth for the country.

First of all, here is a small piece of news whichwas published in the Economic Times. AdarshGupta, owner of Liberty Enterprises, a subsidiary offootwear maker Liberty Shoes, has been sentencedto six months' imprisonment by the chief judicialmagistrate, Karnal, for committing to unfair labourpractices under the Industrial Disputes Act.Obviously this has sent shock waves in thecorporate and industrial world. It is perhaps thefirst case wherein any entrepreneur has been metedout such a harsh punishment.

The company closed down a unit in Gharaunda,near Karnal, and retrenched 1,500 workers inNovember 2008, an act termed illegal. As perlabour laws, a company employing more than 100workers needs prior sanction for closure of anindustrial establishment. Liberty workers, 900regular and 600 contractual, have been fighting a

legal battle to recover wages, terminal dues andgratuity. Over 350 workers have taken legalrecourse for wage recovery.

The above news item will help recapitulate theprovision of unfair labour practice. It hardly needsto be underlined that under the Industrial DisputesAct, when an employer is employing 100 or moreworkers in an industrial establishment there is atedious provision for pruning the featherbedding i.e.'requiring of an employer usually under a unionrule or safety statute to employ more workers thanare needed or to limit production' without the priorpermission of the relevant government.

One may not have to unnecessarily jog thememory, therefore, it must be stated that the Fifthschedule was inserted in the Industrial DisputesAct, 1947 which has enumerated unfair labourpractices 'on the part of the employers and tradeunion of employees' as well as 'on the part ofworkmen and Trade Union of Workmen'. Section25T of the Industrial Disputes Act prohibitscommission of the unfair trade practices by theemployers as well as the workmen while section 25Uof the Act prescribes stringent penalties forcommission of unfair labour practices. ThisAmending Act was brought into force with effectfrom 21st August, 1984. Amongst 16 unfair labourpractices as enumerated in the Fifth Schedule on thepart of the employers it is pertinent to refer toclause 7 which provides :



Employers should take unfairlabour practices seriously

H.L. KUMARAdvocate, Supreme Court, New Delhi

Adarsh Gupta, owner of Liberty Enterprises, a subsidiary of footwear makerLiberty Shoes, has been sentenced to six months' imprisonment by the chief

judicial magistrate, Karnal, for committing to unfair labour practices under theIndustrial Disputes Act.

'To transfer a workman mala fide from one place toanother, under the guise of following managementpolicy'.

Here are the bare facts of the case as referred toabove.A complaint was filed by the StateGovernment, Haryana through the LabourInspector, Karnal (Haryana) against the accusedAdarsh Gupta saying that he happened to be the'occupier' and responsible person of M/s. LibertyEnterprises, unit No.3 and he was responsible forthe malafide transfer of workmen from

manufacturing unit to a location where no factory,within the meaning of the Factories Act, 1948,

was existing and the malafide transfer of theworkmen amounted to "Unfair Labour

Practice" within the meaning of entryNo.7 of Schedule V of the Industrial

Disputes Act, 1947 and thereby, theaccused allegedly committed

offence under section 25T ,punishable under section 25Uof the

Industrial Disputes Act, 1947.

As per section 32 of the IndustrialDisputes Act, 1947, when an offence is

committed by a company, every Director,Manager, Secretary, Agent or other officer or

person concerned with the management thereofshall, unless he proves that the offence wascommitted without his knowledge or consent, bedeemed guilty of such offence. As per section 34 ofthe Industrial Disputes Act, 1947, a complaint is to befiled by the appropriate authority/appropriateGovernment for taking cognizance of any offencepunishable under this Act.

Section 25T of Chapter V C of the IndustrialDisputes Act prohibits "Unfair Labour Practice" onthe part of the employer or workmen or a TradeUnion and the penalty for committing "Unfair

Labour Practice" is provided under section 25U ofthe Act and any person who commits any "UnfairLabour Practice" shall be punishable withimprisonment for a term which may extend to sixmonths or with fine which may extend to Rs.1000/-or with both.

There have been complaints with similarallegations of the malafide transfer of workmen andthereby committing "Unfair Labour Practice" and 38complaints have been pending before the ChiefJudicial Magistrate at Karnal. In June 2006, therewas labour unrest in the factory of M/s. LibertyEngerprises, Gharaunda, Karnal which resultedinto a strike by the workmen and that strikecontinued from June 2006 to 22.12.2006. A settlementwas arrived at between the employer i.e. M/s.Liberty Enterprises Limited and the WorkersUnion. During the period of strike, an applicationdated 10.11.2006 was made by M/s. Liberty Shoes

Limited, Gharaunda to the Chief Inspector ofFactories, Haryana for the amendment of license offactory and it was stated that M/s. Liberty ShoesLtd. is going to start a new manufacturing unit atGharaunda.

In the above background, the point to beadjudicated has been as to whether there was amalafide transfer of workmen from themanufacturing units of Gharaunda to 'Phusgarh'and 'Sonepat'. The present complaint regarding themalafide transfer has been of Prem Singh to HSIDC,Sonepat. On 16.10.2007, the representatives of theManagement of M/s. Liberty Enterprises has givenin writing that 'there is no business of any type andno work is being done by the firm', so, there was a'deemed closure' of the manufacturing unit on thepart of the M/s. Liberty Enterprises though theapplication of M/s. Liberty Enterprises filed undersection 25-O of the Industrial Disputes Actpertaining to grant of permission for closing down


Employers should take unfair labour practices seriously

Transfer wasmade to such aplace where therewas no machinery,no factory and therewas no work to beperformed by the workmen.The anti-managementelements i.e., workers who weretransferred to such places werevacant plots or a go-downs/cold storages butwithout any factory orindustrial setup atthose places.

an industrial establishment was rejected by theGovernment. In these circumstances, the accusedwas not entitled to take the plea that there was noclosure of the manufacturing unit and that theaccused was also stopped from taking the plea thatno workman was transferred from manufacturingunit Gharaunda to some other place. It has beenapparent that transfers of all those workmen, whowere creating nuisance or who had played negativerole during the period of strike, were made by themanagement of the M/s. Liberty Enterprises.

No doubt, the Management has a right to transfera workman from one section or the department tothe other as per clasue (iv) of the Standing Order butthat transfer must be bonafide. In the present case,the transfer was not bonafide rather malafidebecause the transfer was made to such a place wherethere was no machinery, no factory and there was nowork to be performed by the workmen. On thecontrary, there was only open land with a boundary

wall. From the statements of the witnesses, it isclear that the anti-management elements i.e.,workers who were transferred to such places werevacant plots or a go-downs/cold storages butwithout any factory or industrial setup at thoseplaces. No evidence to that effect had been led by theaccused in his defense to establish prima-facie thata factory was being set up at 'Phusgarh' or 'plot No.92HSIDC, Sonepat'. The accused himself has notstepped into the witness box.

Considering the background of the aforesaiddiscussion and keeping in view thecircumstances/situation during which theworkmen were transferred from the manufacturingunit of Gharaunda to 'Phusgarh' and 'Sonepat'where no manufacturing activity was being carriedout or was to be carried out, the transfer of theworkmen was malafide and that amounted to"Unfair Labour Practice" in terms of entry No.7 ofSchedule V of the Industrial Disputes Act, 1947 andthus the accused being the 'Occupier' and the'responsible person' for managing the affairs of M/s.Liberty Shoes Limited in terms of section 32 of theAct, committed "Unfiar Labour Practice" which isprohibited under section 25-T of the Act and ispunishable under section 25U of the Act.Accordingly, in view of the aforesaid discussion,accused Adarsh Gupta is held guilty under section25-U of the Industrial Disputes Act, 1947.

The Court further observed that the Labour Lawshave been enacted for improving the conditions ofthe workers and the employers cannot be allowed tobuy off immunity against violations of LabourLaws. Reference has been made to the judgment of

the Supreme Court of India in People Union forDemoractic Rights vs. Union of India and others,1982(3) SCC 235 (SC) holding that violations ofLabour Laws must be strictly followed andappropriate and adequate punishment must beimposed upon the accused and hence, keeping inview the aforesaid law laid down by the Hon'bleSupreme Court of India and keeping in view the factthat on account of "Unfair Labour Practice" adoptedby the accused, many workers had to suffer lot ofhardships and thus, no case is made out to take alenient view and thus the request for grant ofprohibition is declined and the accused is sentencedto undergo simple imprisonment for a period of sixmonths and to pay fine of Rs.1000/-.

The purpose of enacting these provisions is toprotect the legitimate trade union activities of theworkmen. The expression "Unfair Labour Practice"has acquired a peculiar significance in industrialparlance. It is often used to mean such open or

under-hand means which are adopted both by theemployers and workmen to cause annoyance,disturbance, damage or loss to each other.

In T. Rajaiah vs. Sourn Roadways Ltd., Madurai,1993 (III) LLJ (Supp) 719 the Madras High Court hasheld that the workman challenged his transfer onthe plea of mala fide and unfair labour practice onthe part of the employer. It was held that there is astatutory prohibition engrafted in the IndustrialDisputes Act prohibiting transfer of a workmanmala fide from one place to another under the guiseof following a management policy. Thus, a valuedright has been created by the statute in favour of theworkman from being subjected by his employer totransfer mala fide under the guise of following amanagement policy. This is a right which has beencreated by the Industrial Disputes Act in favour ofthe workman restricting the unfettered right of themanagement in the matter of effecting transfer ofhis employees. The obligation not to transfer aworkman mala fidely from one place to anotherunder the guise of a management policy was notrecognized under the common law. That right isnow created by the statute. The right flows fromsection 25T of the Industrial Disputes Act read withItem (7) of the Fifth Schedule.

The above case about conviction of AdarshGupta is an eye-opener for the employers and shouldnot be taken with gay abandon. There is no doubtthat laws in India are harsh and discriminatoryagainst the employers but it is equally true that theyhave been paying more attention in greasing thepalms of corrupt officials rather meticulouslycomplying with those laws.



Employers should take unfair labour practices seriously

The obligation not to transfer a workman mala fidely from one place to another under the guise of a management policy was not recognized under the

common law. That right is now created by the statute. The right flows from section25T of the Industrial Disputes Act.

BM


Magna Hospital is a nationallyacclaimed hospital, renderingits services to patients for

more than sixty years. The hospitalcelebrated its golden jubilee a decadeback. It has all the modern facilitiesand is now an 1800-bed hospital withmultiple departments, diagnosticcentres, and guest houses for theaccompanying relatives of patients.Patients from Nepal, Bangladesh, SriLanka, Bhutan, Myanmar and othernearby countries visit the hospital fortreatment.

The hospital is professionallymanaged. A dynamic medicalsuperintendent heads the hospital. Heexpects performance of a high order atevery level. It is more so at themanagerial and supervisory levels.Normally, people of high calibre areselected through open advertisementsto meet the human resourcerequirements at all levels, specificallyhigher levels. However, the hospitalfills junior-level vacancies byrecruiting local people and thenprovides them in-house training. Thehospital with its team of 10 specialistdoctors in each department in additionto senior doctors provides personalattention to patients. Gradually, thereputation of the hospital has beengrowing. It claims to be a world-classhospital. It has a public relations cell.About eleven years back, the hospitalreceived quality system certification(ISO 9001) from an internationalcertification agency. A senior doctor(Dr. Raman) who obtained his MBA(with specialization in HR) isresponsible for performing the duties

of an HRD manager, which alsoincludes designing trainingprogrammes for junior doctors andnurses.

The hospital has developed a systemof refresher courses, professionaldevelopment courses, and leadershipcourses for doctors at all levels. Magnainvites expert faculties from bothwithin the country and from outside.The hospital has its own trainingschemes; it offers two-year training forfresh science graduates/entrants.During the first year of training, thetrainee nurses are offered theoreticalknowledge, which is considered to bethe core of the training programme forthis category of trainees. In the second

year, the trainee nurses are posted invarious departments on a rotationalbasis. They receive on-the-job trainingduring this time. The hospital recordsthe attributes of the trainees andplaces them in a suitable department.

In the programme of nursing, theperformance of trainees is normallyappraised once annually at thebeginning of the year. Dr. Ramanpersonally talks to the trainees abouttheir progress, identifies strengths andweaknesses, and advises them on howto overcome the shortcoming anddevelop a professional career. Dr.Raman further encourages the doctorsin charge to periodically examine theperformance of the trainee nurses. The

Experts are invited to send solutions. Best will bepublished.

Abusing Power & Authority

DR. UDAY KUMAR HALDAR

Discussion Questions1. What do you think was the professional background of

the two friends of the chairman?

2. Why did the chairman not initially disclose the identityof the invited friends?

3. Which power specifically was active that compelled theHRD manager to recommend early completion of thetraining of Miss Rosni?

4. Identify the intelligences based on which the medicalsuperintendent ordered early completion of the trainingof Miss Rosni.

5. Do you feel that the chairman's actions were appropriateto the situation? Can you identify the power he used?


hospital has developed a system ofcontinuous evaluation of traineesagainst selected parameters thatcarries 50 percent weightage in thefinal assessment. The hospitalconducts a 'gradation test' after twoyears and absorbs excellent performersbased on continuous evaluation andgradation test results as senior nurses.

Miss Rosni Sharma joined thehospital as a trainee in the year 1997after graduating in science withzoology, physiology, and chemistry. Shealso did a one-year certificate course inhealth care and hospital managementin which she obtained a distinction.Her grasping capacity was high, carefor patients was noteworthy,accompanied by many other qualitiesthat nurses require in a hospital.Furthermore, Rosni never hesitated orobjected to working in night shiftswhenever the situation demanded. Atthe end of the second quarter of thesecond year, the HRD manager calledRosni to provide feedback about herperformance in the preceding quarter.He appreciated her exceptionally goodperformance. The HRD manager alsosaid that the hospital has got a 'gem'and concluded with 'keep it up'. Themedical superintendent also called andpraised her. A month later, MissSharma met the HRD manager andrequested him to curtail her trainingperiod and to absorb her as a seniornurse. Dr. Raman was so impressedwith her performance that he declaredearly completion of her training periodand put her on the rolls of the hospitalas a regular nurse.

Soon after this, other three traineenurses approached the HRD managerwith a similar request. When Dr.Raman turned down their requests,problems erupted. They argued in theirfavour stating that they had beenworking in the respective departmentsas regular nurses, assisting the matron,and detailed on night duties inemergency situations. The hospital hadno system of detailing trainee nursesin night duty. But the HRD managerwas not convinced.

A series of problems started. Thenurses collectively approached themedical superintendent. On getting anegative reply, they approached theonly registered union. All the nursesdeclared a one-day strike. Themanagement warned and cautionedthem. But ultimately the strike tookplace. The nurses who took a leading

role in the strike faced disciplinaryaction like stoppage of increment. Thisled to further problems. The majorityof the nurses received the sympathy ofthe doctors who requested the higherauthority to withdraw the punishment.But, based on the recommendation ofthe HRD manager, the medicalsuperintendent did not relent.

The employees union of MagnaHospital complained in writing anddeclared a strike for an indefiniteperiod of time. In the absence ofnurses, all the activities of the hospitalcame to a standstill. Each member ofthe collective bargaining forum wasreminded of the particular incidence ofpremature termination of the trainingperiod for Miss Rosni and herinduction as a regular staff. Butneither anyone hurt Rosni in thehospital personally nor disturbed herin the nurses' hostel. The strikecontinued for three days. The situationfurther worsened, and the managementconvened an emergency meeting todecide upon the future course ofaction.

Rosni was a silent observer of allthese incidents. She was gettingisolated from all other nurses andtrainees, and had started feeling guilty.One day, she approached the HRDmanager to narrate her psychologicalsuffering. But immediately afterentering his office, she received alambasting. Where before herpromotion she had received affectionand sympathy from all the matrons,doctors, and specialists, today shereceived only criticism.

Crisis Management The chairman of Magna Hospital

invited the medical superintendent,HRD manager, and a few senior doctors.He also invited some external personslike a legal expert, experienced medicalsuperintendents of two more hospitals,a Member of Parliament, and aMember of Legislative Assembly of theconstituency in which Magna Hospitalis situated. The persons present in themeeting saw two unknown faces. Thechairman introduced them as hispersonal friends.

In the beginning, the chairmannarrated the incidents along with thebackground though it was known to all,as news dailies had extensively,reported the incident. Even the name ofMiss Rosni Sharma had appeared inthe media.

The chairman sought the advice ofall present at the meeting. In fact, thediscussion was in the form of abrainstorming session. Each personcould express his/her opinion. At last,the invited friends of the chairman,after having a little mutualconsultation, expressed theirconsolidated views with confidenceand clarity. What they expressed isbriefly given below:

1. To refer to and review theperformance review reports of MissRosni

2. To review the performance reviewreports of all the trainee nurses

3. To separate the reports of thosehaving some sort of negative remarks

4. To organize an 'early gradation test'for all trainees

5. To assess further requirements andinitiate actions accordingly

At the end, they requested thechairman to offer his comments ontheir submission.

The chairman added:

1. We will definitely organize thegradation test before completion of thetraining period.

2. 'In view of increased patients andurgency of fresh nurses, earlygradation has emerged as a primerequirement.

3. To make the decision taken at themeeting known to all through theintranet, electronic display board at themain entrance, and other places.

4. To inform all union office bearersand nurses through hostel displayboard.

The chairman introduced theinvited friends stating their identitiesand thanked them and all otherspresent at the meeting.

The chairman advised the HRD manager to engage in self-development in addition to developingothers. The chairman further advised the medical superintendentand the HRD manager to strengthentheir skills of foreseeing andanticipating what is going to happen,and highlighted the utmost need toadhere to the rules of the organization.However, he temporarily stripped somepowers from the medicalsuperintendent. BM



MIHIR GOSALIA

Assistant Manager - ISO &OHSAS, Kesari Tours Pvt Ltd.,Mumbai

This Case Analysis refers to Case Study ‘Ideal Industrial Relationship’ published in Nov. 13 Issue

Case of commendable relationship1. Importance of the case study:

The case study is an example ofcommendable relationship between theunion members and management ofM/s. Sohan Industries situated in MPState of India. The objective is to create acooperative workplace that includes butis not limited to setting boundaryconditions and relevant goals, usingwork teams for planning and improvingthe existing working conditions thus inturn increasing the productivity andefficiency of the company.

The company faced the issue of latereporting to work by its employees andearly leaving. The total number of man-hours actually put in by the workers atworkplace was very less as compared tothe required eight hours due to thecasual attitude of the workers and theirimmediate reporting superiors. Evennew workers who joined would fall inline with their old colleagues due to theprevailing bad practice. All of thisaffected the company's marketcompetitive position. The Managementhad taken note of this late-coming issueand appointed a reputed consultant togive solution to this problem. This wasreceived positively by the UnionMembers during the Wage AgreementNegotiations and they in consultationwith the committee members decided tostop this bad practice once and for all.The rule with regards to late coming wasimplemented in right spirit cordially andthus the issue of employees late comingand loss of production hours for thecompany was a story of yesteryear.

The Management of the companyrather than trying to control thissensitive issue choose to engageparticipation from the workers with thegoal of achieving better decision qualityand better performance, thus makingbetter use of human resources. Theemployees also actively supportedchange because they were motivated bynew welfare measures. Thus it was a win-win situation for both the employees andthe company.

If the Management of the companyand the workers were not aligned tosupport the actions, then the companycould have wasted its resources by failing

to optimize the work that is done andmay thus fail to meet its business needs.

2. Reasons for low-productivity ofworkers: The actual reason for low-productivity of the workers was theirreporting shop floor supervisors whorefused to improve situation of theregular late coming workers. There wasslackness on part of the shop supervisorsto ask the workers to report on time atthe place of work. Slowly, otheremployees and particularly the newemployees learn't this bad habit fromtheir seniors and colleagues. Everyonefell in line thus with this bad habit whichin turn posed a big problem to theManagement of the Company.

Poor working culture distracts theemployees and reduces productivitywhich was noticed here. There was nooptimum employee participation andperformance. Suboptimum employeeperformance was hitting the company'sproductivity and market position.Probably the company lacked differentsupport services and benefits for itsworkers to keep them from beingdistracted in their work like the issue oflate reporting. Another underlyingreason could be the failure to promoteopen, two-way communication amongstthe workers and their supervisors. Thisinhibits trust and openness. This couldbe seen by way of the late coming rulenot being implemented from thebeginning and becoming a part of thecompany's culture.

3. Reasons for the union behavingin a responsible manner: There wasCorrelation of Business Results. TheManagement of the Company whendeciding what actions to take to improvethe productivity and efficiency of theworkers and thus the organizationoverall decided to bring it to notice of theUnion at the time of New WageAgreement Signing. Managementwanted the workers to understand thatthey will not risk resources this time forthe workers unless they understood thelikely impact on company's businessresults their casual attitude towardswork and where the improvementpriorities lay for the future.

The Managing Director of theCompany had a brainstorming sessionwith all executives in front of thecamera. The Consultant was also presentin the meeting who suggested positivesolutions to the problem. Thus time onecould see open, two-way communicationbeing promoted amongst the workers andmanagement paving way for creating anorganization culture of trust. Theworkers got an opportunity to raise theirproblems in an open, trustingenvironment. All of this was with theobjective of increasing productivity andthus the company's ability to meet itschallenges in a highly competitiveenvironment.

The Workers Union Membersreceived the message positively. TheUnion considered that this was the righttime to stop the bad practice of latecoming and thus agreed unanimously tostop this menace permanently. In areasonable span of time, all employeeswere slowly convinced by the Union tocooperate with the Managementwholeheartedly to stop the bad practice.

4. Main causes for an idealindustrial relationship:Communication is the key. Being able tocommunicate with employees is the keyto managing them well. Many situationsoften involve sensitive and difficult tohandle matters. The key to successfullymanaging the situation is to address thesometimes delicate behavior by staffwith honesty and openness ensuring thatthe employee understands how theparticular behavior is affecting theirperformance in the workplace.

A system of shared responsibility ofemployers and employees for workingpractices, conditions and other areas ofworking life should be created.

Successful employer/employeerelations involve striking a balance ofinterests. From the company point ofview, industrial relations is about havingthe right to manage - the ability to planfor the future so that a company cancontinue to be a success. From theemployee's point of view, it is all aboutsecuring the best possible conditions andliving standards for employees. BM

Commentary on

The Arbitration AndConciliation ActAuthor : Justice S.B. MalikRevised by : Justice J.D. KapoorPublisher : Universal Law PublishingCo. Pvt. Ltd., C-FF-1A, DilkhushIndustrial Estate, (Near Azadpur MetroStation) G.T. Karnal Road, Delhi-110 033 Price : Rs. 1995/- Website: www.unilawbooks.com

The Law of Arbitration and Conciliation has acquired agreat deal of complexity and has evolved greatly in the recentyears. As more and more institutions as well as people areopting for alternative methods to resolve disputes out ofcourts, arbitration emerges as a most vital and viableinstrument. The book in its sixth edition and now recognizedas an authoritative and definitive work, has an in-depthanalysis of the most recent cases in this field, both domesticas well as international.

It studies the evolution of alternative disputes resolution(ADR) methods in India as well as other countries and offersstep by step guidance through it's clarity and lucid exposition.In addition it explains the practical applicability of suchprinciples which makes it a must have for legal practitionersas well as law students. Justice Malik's Commentary onArbitration and Conciliation Act is a monumental classic parexcellence. It gives section-wise commentary on the Act withexhaustive synopsis covering corresponding Law, scope andnumerous topics and sub-topic based on case-laws of SupremeCourt and High Courts. Many legal luminaries, from time totime, endeavoured to bring improvements with a motive toenhance its legal splendour and utility and they weresuccessful in their venture. Following footsteps, JusticeKapoor has added many new topics under each section whichdeveloped in recent part.


Labour & Business Law

Supreme Court onDishonour ofCheques &NegotiableInstrumentsAuthors : Surendra Malik

& Sudeep MalikPublisher : EBC Publishing (P) Ltd.,34-A, Lalbagh, Lucknow-226 001Price : Rs. 795/-Website : www.ebc.co.in

This comprehensive compendium covers more than sixtythree years of the Supreme Court's rulings on the subjectalong with the bare text of the Negotiable Instruments Act,1881. The complete text of the recent landmark judgment inMSR Leathers v. S. Palaniappan, (2013) 1 SCC 177 has beenreproduced herein as published in SCC with the SCCpagination. This should lead to some reduction the number ofprosecutions filed for dishonour of cheques since it hasoverruled Sadanandan Bhardan v. Madhavan Sunil Kumar,(1998) 6 SCC 514 and categorically held that repeatedpresentations or dishonour of a cheque give rise to a freshcause of action each time. Hence, parties shall no longer bedriven to initiate a prosecution upon the very first dishonourof a cheque.

The arrangement and plan of the work will allow the readerto reach the relevant rulings conveniently. The Table of CasesDigested, Annotations, Notes and Editorial Comments givenbelow many notes facilitate expedient reference.

This work will be of great relevance to the judiciary, thelearned members of the bar, banking and financialinstitutions, and all those engaged in commerce, trade andindustry, as well as to those interested in the subject for an in-depth study. BM BM

Indian labour laws ensure job security to a confirmedemployee to such an extent that howsoever indisciplined or

Law Relating to

DisciplinaryProceedings inIndustriesAuthor : H.L. KumarPublisher : Universal LawPublishing Co. Pvt. Ltd., C-FF-1A,Dilkhush Industrial Estate, (NearAzadpur Metro Station) G.T.Karnal Road, Delhi-110 033 Price : Rs. 475/- Website: www.unilawbooks.com

unwanted an employee may be, a meticulous procedure is to beadopted in order to comply with the principles ofnatural justice.

There is no codification of the principles of natural justice which vary from one situation to another hence it becomes imperative that precautions be takenwhile dispensing with the services either by dismissal ordischarge. In this book, the entire law relating to disciplinaryaction is represented in one place with adequate commentsand analysis of the leading cases in the Law Reports.

Every effort has been made to present the book in a conciseand lucid form with up-to-date case law. That ratio of the morejudgments has been added in this enlarged edition. This willadd to the utility of the book. The table of cases, as referred,will reveal that many more have been added but efforts havebeen made that the book is not swallowed. Anyone, who isconfronted with any disciplinary problems, could find supportfrom the judicial ratio which would be possible to find in thisrevised edition. BM

Management/Labour Law Books Publishers & Authors are welcome to send their books for review publication.



Southern Regional conference of NIPMwas inaugurated by Mr B. SurenderMohan Chairman and Managing Directorof Neyveli Lignite Corporation Ltd andKey note address by Mr Mohan PyareIAS, Principal Secretary Labour Dept,Govt of Tamilnadu,The Theme of theconference was RESPOND,REALIGN ANDREPOSITION.

In the current economic scenario the need toimprove the skills of employees forharmonious working was the key theme byseveral speakers. The Deliberations wereinteractive and purposeful. The consensus wasrealigning the skills in the changed scenariofor better performance and productivity atworkplace.

Mr K.Manickam Chairman of MadrasChapter of NIPM welcomed the gathering ofabout 300 delegates from the southern states ofIndia participated. Mr GL MuralidharanSouthern Regional Vice President proposed

The hotel industry in India is facedwith a shortage of qualityprofessionals and a sharp rise inpayroll costs, and the crisis willdeepen with the number of hotelrooms set to more than double in fiveyears.

Hotel Cos. say their payroll costs havealmost doubled in the last three years.Dilip Puri, managing director atStarwood Hotels and Resorts, says thattoday, typically the industry payroll costsrange anywhere between 20%and 30% of a company's averagerevenue, up from 15-17% threeyears ago.

Companies blame this on highattrition rates across theindustry, over-hiring andgrowing sizes of food andbeverage outlets. Perhaps thebiggest reason for the manpowercrisis in hotel industry is that amajority of fresh hotelmanagement graduates preferto join allied industries. Onlyaround 30% of the students joinhotel industry, while the restmove to other industries or

pursue higher studies. The main reasonwhy students choose other sectors is dueto better pay packages, working hoursand conditions than hotels.

With hotel room supply in the countryestimated to increase 111% over the nextfive years, the manpower crisis may get alot worse for the industry. Payroll costscan go as high 35-40% of annual revenuefor a new hotel property. According toreports, hotels, average payroll costs were20.3% of annual revenues last year and

the average payroll cost per employee(including labour/job contract) was2,77,858. Oberoi encourages cross-exposure at its global properties toincentivise staff, while Accor isdeveloping a variable talent pool withpeople who can play multiple roles, savingon manpower.

The Lodhi in New Delhi, where payrollcosts go as high as 30% of revenues, hasincreased work cycle from five-day weekto six-day week.

Starwood properties haveoutsourced their entire room-booking operations to acentralised system. The Oberoiand The Taj have traditionallybeen saddled with an agingworkforce that puts up a lot ofresistance and has a large amountof trade union posturing. But mid-market hotel groups such as TheLemon Tree Hotel haveconsistently maintained optimumstaff-to-room ratio. The entireworkforce of 2,147 employeesacross the hotels and an employeecosts make up for much lowerthan luxury hotels.

NIPM SouthRegional

Conference

vote of thanks. Mr K.Soundarraj Advocate and Former National Vice President wasfelicitated for his contribution to NIPM by Mr K.Mohandoss National President,NIPM, Kolkatta.

Skills crunch rise employee costs in Hotels


IT cos exemptedfrom Standing

Orders in Karnataka,Unions oppose

Employee rights activists in the softwareservices industry have come out againstKarnataka government's recent decisionto exempt the information technologysector from Standing Orders Act foranother five years.

Labour union leaders said the move willincrease 'unfair practices' by IT sectoremployers and make them less accountablefor their actions. Industry representatives inIndia's technology capital had welcomed thedecision to extend the exemption from theIndustrial Employment (Standing Orders)Act, 1946, which they had said was archaic,and not relevant to a modern, servicesindustry such as theirs. "It is yet anotherdecision that will protect companies, whoseactions are not being monitored," saidKarthik Shekhar, general secretary ofUNITES Professionals, a union for softwareindustry professionals.

According to the union, softwarecompanies in Bangalore often pay lowerwages to female employees and women whoare allowed to work form home and made towork for longer hours. "The legislation wouldhave brought in some much neededmonitoring in the IT sector," Shekhar said. Inthe absence of exemption, IT firms wouldhave had to define wages, number of contractemployees, average work hours and othersconditions of employment and display itprominently near the main entrance. Forover a decade, software companies inBangalore enjoyed exemption from the law,but last year the government decided to bringthis sector under the legislation. Softwareindustry heads have been campaigningagainst it calling it a retrograde steps as thelaw was initially designed for themanufacturing sector. Industryrepresentatives also feared the legislationwould lead to unionisation in the softwareindustry which unlike the manufacturingsector, has so fare been largely free ofinfluential labour groupings.

Vasantkumar Hattangadi, a former jointlabour commissioner of Karnataka, said theIT sector exemption from labour law will givespace for harassment by employers. "If anemployee isn't performing or if he is notliked by superiors, he can be terminated onimmediate basis. This power is restricted inthe law," Hattangadi said. The IT andbusiness process outsourcing sector employsclose to a million professionals in Karnatakaand is expected to earn export revenues ofaround Rs. 1.5lakh crore in this fiscal year.

Hero MotoCorp inducts Rajat Bhargava as Head-StrategyRajat Bhargava, formerly a senior partner at McKinsey & Co, has beenappointed as the head of strategy and performance transformation byHero MotoCorp. Bhargava will be part of Hero MotoCorp's top leadershipgroup and will report directly to MD and CEO Pawan Munjal.

Hero's current HR head Anadi Pande has been appointed as the director of theSchool of Business & Management at the newly-established BML MunjalUniversity, close to Gurgaon in Haryana. Prior to Hero, Pande was part of thefaculty at IIM, Lucknow, for several years.

Despite job cuts in others,FMCG plans for hiringEven as Indian corporate resort to lay-off to cut costs, many fast-movingconsumer goods (FMCG) companies are actively hiring to handle theirexpanding operations in sales, infrastructure and productiondepartments.

While Bisleri International is adding manpower to manage its expandingmanufacturing operations, Dabur India is on a hiring spree to manage itsextended sales services and rural expansion programmes. Godrej ConsumerProducts (GCPL), is hiring in accordance with its expansion plans in sales,production, ITand humanresourcessections. Afterincreasing itssales anddistribution by40% to supportnew launches,Parle Agro hasbeen recruitingpeople tohandle itsgrowingoperations inthe last fewmonths. 'Home-grown FMCGcompanies arenowaggressivelyrecruiting tomanage their growing operations, especially family owned businesses. Also, thesecompanies can now hire efficient people at affordable costs - with the economicdownturn,' said an in industry analyst with a domestic brokerage. Emami, is alsohiring people to manage its expansion plans in rural as well as urban India.

Ashok Leyland offers VRS to senior officialsHit hard by a 21% decline in growth in the seven-month period from Aprilto October, Ashok Leyland announced a voluntary retirement scheme in amove aimed at cutting down costs.

The VRS scheme is open only for senior management executives. Conceived as aresponse to the continuing slowdown, the scheme aims to reduce manpower costsand align fixed costs to reduced activity levels. To offset the losses in the first twoquarters, the company is seriously considering increasing prices of productsduring the month and may go for one more hike in the new year. While the companymaintained market share in the last quarter, volume pressures continue and Co.need to take some definite steps to manage the slowdown. The VRS package wouldprovide adequate compensation to any employee who opts for it.



Institute of HRD, will be hosting the Bangalore HRSummit 2013, on December 13-14,2013 at Le Meridien,Bangalore, India. In this two days HR Summit over 200Human Resource Professionals from India, Asia Pacific,Africa and Middle East Countries are expected toparticipate and deliberate on the theme “Futuristic HR

Practices for Organizational Competitiveness.” HRDirectors of Leading companies such as Intel, CSS Corp,Flipkart, Infosys BPO, Mahindra Comviva, Wipro BPO,Sapient, UST Global, Ingersoll Rand etc will be addressingthe delegates on a wide range of issues regarding thetheme.

Tata Consultancy Services hasincreased its hiring target for the 2014fiscal by 5,000 employees taking thegross addition to 50,000. Grossemployee additions for the Septemberquarter stood at 17,362. In the first halfof the 2014 fiscal, TCS has witnessed agross employee addition of 27,973employees.

TCS currently has headcount of 285,250employees. 'If I look at the trainees for the2015 fiscal, we will be hiring 25,000 which issimilar to what we did last year. The joiningration is also higher now compared with70% earlier. WE have joining ration of 72-74% this year,' TCS executive vice-presidentand global head of human resource AjoyMukherjee said.

TCS' current utilization level stands at83.68% in previous quarter, and the firm islooking at increasing the level. 'If required,this utilization ratio can be pushed ahead,'Mukerjee said. The company's attrition ratefor the September quarter increased to10.9% from 10.5% in the previous quarter.

Resume fluffing is a growing problem in the IT industry. Now, aBangalore based agency that conducts background checks ofpotential employees has compiled a list of 1,500 fake companiesthat have been established for the sole purpose of providingemployment certificates for a fee.

According to a survey conducted by AuthBridge, a backgroundscreening company, 18% of candidates across professions fluffed theirresume to land a job in 2012-2013, in the industry wise breakup, the ITindustry stands at 24.11%. AuthBridge founder and CEO Ajay Trehansays the highest discrepancy of 37.31% was found inpharmaceutical/biotech/clinical research companies because unlike theIT industry, the weren't early adopters of background verification. MostIT companies today have a rigorous internal background verificationprocess and also hire external third parties to investigate potentialemployees' employment and educational credentials, addressconfirmations and any criminal records. While these measures havebrought the number of fake resumes down, industry sources say it's anuphill battle.

Companies like Wipro have an automated internal system that flagsresumes listing companies known to issue fake certificates in exchangefor money.

TCS targets to hire S K in 2014

Bangalore HR Summit 2013 on Futuristic HR Practices

Increased fake CVs roam in IT sector

-dec 13 - business manager

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